Search Results (467)

This study was conducted to examine the moderating effect of size on the impact of human capital on bank performance, using data from 26 commercial banks in Vietnam from 2008 to 2023 through panel data regression methods. The results indicate that bank size and human capital are important resources for commercial banks to increase their performance, which is consistent with the resource-based view and economies of scale theory. However, bank size fails to exhibit a significant moderating effect on the impact of human capital on the bank performance in Vietnam. This phenomenon can be explained by the relatively limited influence of size effects on human capital, coupled with the fact that the majority of Vietnamese commercial banks place significant strategic emphasis on human capital development within their operational frameworks. In addition, this study highlights the impact of some internal factors and the macroeconomic conditions on bank performance. From these empirical findings, this paper recommends several critical policies. Full article

This study evaluates the competitiveness and sustainable development prospects of French-speaking African countries by constructing a comprehensive framework integrating the TOPSIS method and adaptive LASSO algorithm. Using multivariate data from sources such as the World Bank, 30 indicators covering core, basic, and auxiliary competitiveness were selected to quantitatively analyze the competitiveness of 26 French-speaking African countries. Results show that their comprehensive competitiveness exhibits spatial patterns of “high in the north and south, low in the east and west” and “high in coastal areas, low in inland areas”. Algeria, Morocco, and six other countries demonstrate high competitiveness, while Central African countries generally show low competitiveness. The adaptive LASSO algorithm identifies three key influencing factors, including the proportion of R&D expenditure to GDP, high-tech exports, and total reserves, as well as five secondary key factors, including the number of patent applications and total number of domestic listed companies, revealing that scientific and technological investment, financial strength, and innovation transformation capabilities are core constraints. Based on these findings, sustainable development strategies are proposed, such as strengthening scientific and technological research and development and innovation transformation, optimizing financial reserves and capital markets, and promoting China–Africa collaborative cooperation, providing decision-making references for competitiveness improvement and regional cooperation of French-speaking African countries under the background of the “Belt and Road Initiative”. Full article

This study examines the impact of board characteristics on capital structure decisions in the context of a transition economy, focusing on Algeria, where governance institutions are underdeveloped and the financial market remains immature. Using the Generalized Method of Moments (GMM) on a panel dataset of 120 firms over the period 2015 to 2019, we identify a U-shaped relationship between board size and leverage, and an inverted U-shaped relationship between board size and debt maturity. Furthermore, increased nationality diversity on boards is found to significantly reduce debt maturity. These findings highlight the critical role of board composition in shaping corporate financing strategies in transition economies and provide novel insights into corporate governance dynamics in a relatively underexplored institutional context. The results are particularly relevant for national entities such as COSOB and Hawkama El Djazaïr and may guide banking sector practices by promoting the integration of board governance criteria into credit evaluation processes. Full article

From the perspective of credit ratings, this paper studies the impact of air pollution on corporate credit costs and the impact mechanism. Based on 2007–2022 data on A-share listed companies in the Chinese capital market, this paper uses a two-way fixed effects model to examine the impact of air pollution on corporate credit costs and the impact mechanism. The results show that air pollution increases the credit costs for enterprises because air pollution affects the sentiment of rating analysts, leading them to give more pessimistic credit ratings to enterprises located in areas with severe air pollution. The moderating effect analysis reveals that the effect of air pollution on the increase in corporate credit costs is more pronounced for high-polluting industries, manufacturing industries, and regions with weaker bank competition. Further analysis reveals that in the face of rising credit costs caused by air pollution, enterprises tend to adopt a combination strategy of increasing commercial credit financing and reducing the commercial credit supply to cope. Although this response behavior alleviates corporations’ own financial pressure, it may have a negative effect on supply chain stability. This paper provides new evidence that reveals that air pollution is an implicit cost in the capital market, enriching research in the fields of environmental governance and capital markets. Full article

Housing prices have recently risen sharply in many countries, primarily linked to the global credit cycle. Although various factors play a role, the ability of developing countries to navigate this cycle and maintain autonomous monetary policies is crucial. This paper introduces a dynamic macroeconomic model featuring a housing production sector within an imperfect banking framework. It captures key housing and economic dynamics in advanced and emerging economies. The analysis shows domestic liquidity policies, such as bank capital requirements, reserve ratios, and currency devaluation, can stabilize investment and production. However, their effectiveness depends on foreign interest rates and liquidity. Stabilizing housing prices and risk-free bonds is more effective in high-interest environments, while foreign liquidity shocks have asymmetric impacts. They can boost or lower the effectiveness of domestic policy, depending on the country’s level of financial development. These findings have several policy implications. For example, foreign capital controls would be adequate in the short term but not in the long term. Instead, governments would try to promote the development of local financial markets. Controlling debt should be a target for macroprudential policy as well as promoting saving instruments other than real estate, especially during low interest rates. Full article

This study examines the long-term financial sustainability of commercial banks, emphasizing the crucial role of credit risk management. Given that the core function of credit creation inherently exposes banks to credit risk, this analysis evaluates how five key bank-specific risk variables, namely expected credit losses (ECL_BS), impairment gains or losses (ECL_IS), non-performing loans (NPLs), common equity tier 1 capital (CET1), and leverage (LEV) affect long-term financial sustainability. Applying a panel error correction model on data from listed South African banks spanning 2006 to 2023, the study reveals a stable long-term relationship, with approximately 74% of short-term deviations corrected over time, indicating convergence towards equilibrium. By taking into account the significance of major exogeneous shocks such as the 2009–2010 global financial crisis and the COVID-19 pandemic, as well as regulatory framework changes, the results reveal persistent relationships between credit risk factors and banks’ long-term financial sustainability in both short and long horizons. Notably, expected credit losses, and impairment gains and losses exert significant negative influence on long-term financial sustainability, while higher CET1 and NPLs exhibit positive effects. The study findings are framed within four complementary theoretical perspectives—the resource-based view, institutional theory, industrial organisation, and the dynamic capabilities framework—highlighting the multidimensional drivers of financial resilience. Thus, the study’s originality lies in its integrated approach to assessing credit risk, offering a holistic model for evaluating its influence on long-term financial sustainability. This integrated framework provides valuable, actionable insights for financial regulators, bank executives, policymakers, and banking practitioners committed to strengthening credit risk frameworks and aligning banking sector stability with broader sustainable development goals. Full article

This study examines the role of supervisory frameworks in shaping the risk management behavior of Greece’s four systemic banks during the period of 2015–2024. It explores how regulatory reforms under Capital Requirements Regulation II, Basel III, and European Central Bank oversight influenced capital adequacy, asset quality, and liquidity metrics. Employing a quantitative methodology, this study analyzes secondary data from Pillar III disclosures, annual financial reports, and supervisory statements. Key risk indicators (capital adequacy ratio, non-performing exposure ratio, liquidity coverage ratio, and risk-weighted assets) are evaluated in conjunction with regulatory interventions, such as International Financial Reporting Standards 9 transitional relief, the Hercules Asset Protection Scheme, and European Central Bank liquidity measures. The findings reveal that enhanced supervision contributed to improved resilience and regulatory compliance. International Financial Reporting Standards 9 transitional arrangements were pivotal in maintaining capital thresholds during stress periods. Supervisory flexibility and extraordinary European Central Bank support measures helped banks absorb shocks and improve risk governance. Differences across banks highlight the impact of institutional strategy on regulatory performance. This study offers a rare longitudinal assessment of supervisory influence on bank risk behavior in a high-volatility Eurozone context. Covering an entire decade (2015–2024), it uniquely links institutional strategies with evolving regulatory frameworks, including crisis-specific interventions such as International Financial Reporting Standards 9 relief and asset protection schemes. The results provide insights for policymakers and regulators on how targeted supervisory interventions and transitional mechanisms can enhance banking sector resilience during protracted crises. Full article

This study explores the impact of growth opportunities on the capital structure of South African banks, utilising panel data from registered banking institutions covering the period from 2014 to 2023. While a substantial body of literature examines the relationship between growth prospects and corporate leverage, limited attention has been paid to this interaction within the banking sector, particularly in emerging economies. By employing the dynamic panel Generalised Method of Moments (GMM) estimator to address endogeneity concerns, the analysis reveals a statistically significant positive relationship between growth opportunities and both the total debt ratio (TDR) and the long-term debt ratio (LTDR). In contrast, a significant negative association is found between growth opportunities and the short-term debt ratio (STDR). The findings suggest that banks with stronger growth prospects are more inclined to utilise long-term financing, possibly reflecting shareholder preferences for institutions with favourable future outlooks and lower refinancing risks. These results highlight the importance of aligning capital structure decisions with an institution’s growth trajectory, while indicating that this relationship shifts depending on the maturity of the debt considered. This study contributes to the existing literature by contextualising capital structure decisions within the framework of growth opportunities. Structure theory within the context of the banking sector in a developing market offers practical insights for strategic financial planning and regulatory policy. Full article

In the world of globalization and increasing business competition, innovation has become a significant component of the sustainability of an organization. One of the important components affecting an organization’s ability to innovate is human resource management (HRM). This study analyzes how HRM practices relate to banking sector sustainability, testing theoretical pathways through organizational innovation and human capital as potential mediators. SPSS v25 was used to analyze data collected from 207 banking sector employees. The results demonstrate that the human capital of an organization can be increased by the practices of human resource management, which stimulates organizational innovation in the same fashion. This study also shows that human capital is a partial mediator of the relationship between human resource management practices and organizational innovation, highlighting its importance for converting human resource management activities into innovative results. Considering these results, banks are advised to implement complete human resource management strategies that combine operational efficiency with workforce capacity development to create a dynamic banking environment allowing for continued innovation. The proposed mediation model based on empirical data contributes to the literature and provides insights for banking institutions, which can use human capital to drive innovation in difficult situations. Full article

The ability of the agriculture sector, which is exposed to climate hazards, to cope with climate challenges and to strive in spite of them, is conceptualized as the resilience of agriculture. In enhancing climate-resilient agriculture, the cash reserve ratio (CRR) is generally perceived to serve two crucial functions: first, encouraging banks to allocate credit to agriculturalists for climate-resilient agricultural practices; second, enhancing agriculturalists’ ability to sustain agricultural output growth in spite of climate crises. In light of this, we conducted an ex post evaluation of the effect of the currently in-use CRR on bank loans to climate-challenged Nigeria’s agriculture sector for climate-resilient agricultural practices. Additionally, this study investigates the CRR’s impact(s) on agricultural output growth amidst climate challenges. Other additional independent variables include monetary policy rate, government capital expenditures on agriculture, and government recurrent expenditures on agriculture, as well as temperature, precipitation, and the renewable energy supply. Using annual data from 1990 to 2022, the results from an autoregressive, distributed lag approach suggest that the standard CRR stipulated by the Central Bank of Nigeria in the present era of climate change cannot entirely sustain climate-resilient agriculture, evident in the present study’s discoveries on its inability to perform its two major functions (credit and growth) in enhancing agricultural resilience. These findings highlight the need for the green differentiation of the CRR to ensure its effective utilization in enhancing climate resilience. Full article

Income level is a key indicator of the standard of living and the economic efficiency of undertaken activities. This paper aims to evaluate the earnings of Polish dairy farmers compared to those in other economic sectors between 2005 and 2022. The analysis covered 1688 family-run farms that participated continuously in the FADN system throughout the study period, with particular emphasis on farms that expanded their dairy cow herds. The remuneration for the labour of farmers and their families was estimated ex post by subtracting the opportunity costs of owned land and capital from farm income. The alternative cost of engaging one’s own land was determined on the basis of actual rental prices for farmland occurring in the surveyed farm groups in the years analysed. This information is collected in the FADN system from which the studied group of farms was drawn. The basis for determining the alternative cost of involvement of own capital was the average interest rates on deposits for households, concluded for a period of 6 months to 1 year inclusive, reported by the National Bank of Poland. The analysed population was divided into seven groups based on the number of dairy cows maintained. The analysis focused on two three-year reference periods: 2005–2007 and 2020–2022. The results were compared with average salaries and wages in non-agricultural sectors of the economy. Structural changes in agriculture, increased productivity, and the expansion of production scale in dairy farms indicate a growing professionalisation of the sector. The rise in farm incomes during the analysed period contributed to a significant increase in the remuneration for farmers’ and their families’ labour. The highest growth in remuneration was observed among farms with the greatest production potential and scale. While in 2005–2007 the remuneration for labour in dairy farms was lower than in non-agricultural sectors, this situation changed in 2020–2022. During this latter period, the average remuneration for labour on dairy farms slightly exceeded the average salary and wages in other sectors of the economy. Full article

This study investigates the impact of physical and financial infrastructure on the dynamics of net total capital flows in BRICS economies over the period 2010–2024. Using panel data and a fixed-effects regression model with robust standard errors, it analyzes how infrastructure quality, both physical (transport, energy, and telecommunications) and financial (banking systems, capital markets, and regulation), affects private capital inflows. The results show a statistically significant positive relationship, with physical infrastructure reducing business costs and financial infrastructure improving capital allocation and investor confidence. This paper contributes novel empirical evidence linking infrastructure systems with capital flow dynamics, providing key insights for policymakers aiming to enhance resilience and attract sustainable private investment. Full article

Foreign remittances have become a crucial component of the Nepalese economy. This study investigates the impact of remittances on household consumption patterns in rural Nepal using data from the World Bank’s Nepal Household Risk and Vulnerability (NHRV) Survey Panel, covering the period from 2016 to 2018. Employing an instrumental variable regression approach, we estimate the elasticity of remittances to various consumption categories. Our findings indicate that foreign remittances significantly affect total consumption expenditure. Disaggregated results reveal that remittances positively influence spending on food items and non-food categories such as education and healthcare, highlighting their role in enhancing nutrition and human capital development. However, remittances do not contribute to unproductive expenditures like tobacco, alcohol, or rituals. Therefore, other things remaining the same, remittance is enhancing welfare in rural Nepali households. Full article

This study examines the performance and resilience of Islamic banks during the COVID-19 pandemic, a period marked by unprecedented global economic disruption. Drawing on empirical data and a comparative analysis with conventional banking institutions, the research evaluates key financial indicators—liquidity, profitability, asset quality, and capital adequacy—to assess how Islamic banks responded to the crisis. The unique principles of Islamic finance, including risk-sharing, asset-backed financing, and the prohibition of interest and speculative activities, provide a distinct framework for crisis response. By analyzing how these features influenced bank performance during the pandemic, the study offers valuable insights into the relative robustness of Islamic versus conventional banking models. The findings contribute to the academic discourse on financial stability and risk management, offering practical implications for policymakers, regulators, and stakeholders to strengthen financial systems against future global shocks. Full article

Climate policy uncertainty (CPU) poses formidable challenges to global sustainable development and corporate strategic planning, while intelligent transformation is emerging as a pivotal enabler of organizational sustainability. Using panel data from Chinese A-share listed companies between 2011 and 2022, this study investigates the impact of climate policy uncertainty on intelligent transformation. The results indicate that CPU significantly promotes corporate intelligent transformation, a conclusion that remains robust under various sensitivity tests. Government innovation subsidies, enterprise absorption capacity, and enterprise human capital positively moderate this facilitating effect. A heterogeneity analysis reveals that the effect of CPU on intelligent transformation is more pronounced among firms in sci–tech finance pilot zones, regions with high digital financial inclusion, and those led by CEOs with banking experience. This paper contributes to the literature on climate policy uncertainty by examining its role in corporate intelligent transformation, offering actionable strategies for firms to mitigate climate risks while providing policy insights for developing economies to leverage smart technologies in addressing CPU. Full article