Usman Shettima and Nazam Dzolkarnaini
The purpose of this paper is to examine the effect of board characteristics on MFIs performance in Nigeria. A specific country study is warranted given the results from pooled…
Abstract
Purpose
The purpose of this paper is to examine the effect of board characteristics on MFIs performance in Nigeria. A specific country study is warranted given the results from pooled cross-country studies may be biased owing to a failure to control for country differences. It is also particularly challenging to generalize the outcome of these results into a specific country given that many factors about MFIs, ranging from the nature of governance, legal status, size and prudential regulations, are not similar across countries.
Design/methodology/approach
The relationship between board characteristics and microfinance banks performance in Nigeria is tested using a sample of 120 firm-year observations covering 30 MFIs in the periods from 2010 to 2013. The study extracted all microfinance-level data from the Microfinance Information Exchange database.
Findings
The authors document a positive and significant relationship between board size and MFIs performance. The authors also find negative relation between female directors and MFIs performance, but not significant. The results suggest that larger board size indicates good corporate governance practice, which leads to reduced agency cost.
Research limitations/implications
This study sheds new lights on the Nigerian MFIs’ board room dynamic. As the government is increasingly contemplating on the board structure and corporate governance policies, the study offers useful and timely empirical guidance to the Nigerian regulators.
Originality/value
Given the important role of microfinance industry in Nigeria, this is the first study of its kind analyzing the impact of board characteristics on microfinance performance among Nigerian MFIs.
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The purpose of this research is to compare the board quality's (BQ) impacts on the financial performance (FP) of conventional and Islamic banks (IBs) after the Subprime financial…
Abstract
Purpose
The purpose of this research is to compare the board quality's (BQ) impacts on the financial performance (FP) of conventional and Islamic banks (IBs) after the Subprime financial crisis. The main reason is to help financial stakeholders choose the best performing and most appropriate bank type with its engagement based on the BQ index.
Design/methodology/approach
Based on the existing gap in previous researches and by using the GLS method (Generalized Least Squares method), the author compared the BQ's impacts on the FP of conventional and IBs. Settings of the FP and BQ were collected from 30 countries located on 4 continents. Two equal samples were tested; each of them is composed of 112 banks. The author concentrated only on the banks that have published regularly the banks' annual reports over the period 2010–2018.
Findings
Cylindrical panel results revealed that in conventional banks (CBs), the BQ has negatively affected banks' FP, while in IBs the BQ's impacts on the banks’' FP is ambiguous. Nevertheless, the positive impacts are more significant on the IBs' FP than the negative impacts on the IBs' FP.
Practical implications
The main practical contribution is the identification and distinction between the impacts of board determinants' quality on the shareholders' profits in the case of conventional and IBs. Hence, conventional or IBs which have a bad BQ will generate less FP and will be classified as a lender of bankruptcy danger for the bank customer. Besides, whatever the bank type, in a financial stable period, good BQ positively influences FP and provides a good impression to stakeholders. Otherwise, FP indicates that the banks suffer from the weaknesses of the board quality determinants.
Originality/value
Returning to the finance and banking governance literature, the author's article provides the first conditional and demonstrative analysis that detailed a logical comparative process to analyze the correlation between the board determinants' quality and the financial performance of conventional and IBs. However, previous research has always discussed the main role of the board as an internal governance mechanism on the FP separately in each bank type.
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Franco Muleya, Bodwin Mulenga, Sambo Lyson Zulu, Sunday Nwaubani, Chipozya Kosta Tembo and Henry Mushota
This study aimed to investigate the suitability and cost-benefit of using copper tailings as partial replacement of sand in concrete production. The study was motivated by the…
Abstract
Purpose
This study aimed to investigate the suitability and cost-benefit of using copper tailings as partial replacement of sand in concrete production. The study was motivated by the accumulation and non-use of copper tailings in dams among them tailing dam 25 also known as TD 25 in Kitwe city of the Copperbelt province in Zambia that take up approximately 111 hectares of unused land.
Design/methodology/approach
Laboratory experimental approach of concrete production based on water/cement ratios of 0.3 and 0.5 was used because this was an exploratory study designed to establish the primary performance of concrete. In total, 30 concrete cubes were cast based on the two water-cement ratios. In total, 0% to 30% partial sand replacement with copper tailings was used in both mixes with the 0% copper tailings replacement being the control mix and reference point. Other concrete tests included workability, density, compressive strength and element composition analysis.
Findings
Results revealed that copper tailings from TD 25 were suitable for partial replacement of sand in concrete. Thirty per cent of sand replacement with copper tailings was established as the maximum replacement amount to produce optimum compressive strength values from both mixes. The drier mix of 0.3 water-cement ratios produced higher compressive strength results of 23 MPa at 28 days of concrete curing with 2.34% as optimum concrete cost reduction.
Practical implications
The research results provide the cost-benefit analysis and savings that can be attained from using cheaper copper tailings based concrete. The study further provided the quantity of land available for development arising from absorption of copper tailings as a sustainable construction material. The local authority now has statistics and numerical values that it can use to absorb copper tailings as a concrete raw material.
Originality/value
The study provides guidance on optimum concrete grade produced and cost reduction details of copper tailing-based concrete to support for local authorities in suitable land wand waste management using real data.
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Umar Habibu Umar, Muhammad Bilyaminu Ado and Habibu Ayuba
The purpose of this study is to establish whether religion (interest) is an impediment to Nigeria’s financial inclusion targets to be achieved by the year 2020.
Abstract
Purpose
The purpose of this study is to establish whether religion (interest) is an impediment to Nigeria’s financial inclusion targets to be achieved by the year 2020.
Design/methodology/approach
The data were collected through semi-structured interviews and documentary evidence. Thematic analysis was used to analyze the interview responses.
Findings
It was found that all the Central Bank of Nigeria (CBN) programs that contribute toward achieving financial inclusion are interest-based ones. Further, none of them provides a non-interest window except Commercial Agricultural Credit Schemes (CACS). Even the CACS is not fully Shari’a-compliant, as it requires further modification. Despite the fact that interest is condemned in Islam, a majority of Muslims have been found to be accessing interest-based funds. Hence, interest is not a factor that hinders the achievement of reducing Nigeria’s financial exclusion rate to 20 per cent by the year 2020.
Research limitations/implications
This study inquired into the programs under the Development Finance Department of the CBN by using semi-structured interviews and documentary evidence. Other programs of the federal government, state governments, NGOs and other private organizations and individuals are not considered. The findings have pointed out the areas to conduct future studies on religion and financial inclusion.
Practical implications
Although Muslims who complained about interest are a minority, there is the need to provide non-interest windows in the programs before they start shunning these programs, as a lot influential Muslim scholars are currently preaching against the interest.
Originality/value
The paper is one of the few studies that support the view that interest does not hinder the achievement of financial inclusion in a Muslim majority country.