Search Results (176)

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

Morocco is facing a situation of alarming water stress, aggravated by climate change, overexploitation of resources, and unequal distribution of water, placing the country among the most vulnerable to water scarcity in the MENA region. This study aims to investigate the dynamic relationship between economic growth and water stress in Morocco while highlighting the importance of integrated water management and adaptive economic policies to enhance resilience to water scarcity. A mixed methodology, integrating both qualitative and quantitative methods, was adopted to overview the economic–environmental Moroccan context, and to empirically analyze the GDP (gross domestic product) and water stress in Morocco over the period 1975–2021 using an Autoregressive Distributed Lag (ARDL) approach. The empirical analysis is based on annual data sourced from the World Bank and FAO databases for GDP, agricultural value added, renewable internal freshwater resources, and water productivity. The results suggest that water productivity has a significant positive effect on economic growth, while the impacts of agricultural value added and renewable water resources are less significant and vary depending on the model specification. Diagnostic tests confirm the reliability of the ARDL model; however, the presence of outliers in certain years reflects the influence of exogenous shocks, such as severe droughts or policy changes, on the Moroccan economy. The key contribution of this study lies in the fact that it is the first to analyze the intrinsic link between economic growth and the environmental aspect of water in Morocco. According to our findings, it is imperative to continuously improve water productivity and adopt adaptive management, rooted in science and innovation, in order to ensure water security and support the sustainable economic development of Morocco. Full article

This paper considers the impact of Central Bank Digital Currencies (CBDCs) on the world’s financial systems with a special emphasis on G20 economies. Using quarterly macro-financial data for the period of 2000 to 2024, collected from the IMF, BIS, World Bank, and Atlantic Council, a Global Vector Autoregression (GVAR) model is applied to 20 G20 countries. The results reveal significant heterogeneity across economies: CBDC shocks intensify emerging market financial instability (e.g., India, Brazil), while more digitally advanced countries (e.g., UK, Japan) experience stabilization. Retail CBDCs increase disintermediation risks in more fragile banking systems, while wholesale CBDCs improve cross-border liquidity. This article contributes to the literature by providing the first GVAR-based estimation of CBDC spillovers globally. Full article

Purpose: This study aims to provide a comprehensive and objective view to investigate whether the motives of strong financial managers to adopt an accounting conservatism strategy have significant effects on improving financial growth opportunities in the context of banks listed on the Saudi Stock Exchange, while knowing how this relationship is affected by litigation risks. Design/Methodology/Approach: Using data from Saudi financial databases, this study examines how litigation risk moderates the relationship between accounting conservatism and financial growth in Saudi listed banks. Basu’s (1997) model and accrual-based metrics measure conservatism, whereas assets, liabilities, and business age are used to measure financial growth. Litigation risk factors included previous lawsuits. Validity was ensured using fixed-effects regression and robustness tests. Findings: The study found that accounting conservatism has a mixed impact on financial growth, litigation risk moderates the relationship between conservatism and financial growth, and litigation risk has a positive impact on accounting conservatism. Practical Implications: Use a balanced strategy to maintain accounting conservatism, lower litigation risk while maintaining the accuracy of financial statements, take legal risk into account when evaluating the quality of financial reporting, increase transparency without impeding growth, create guidelines tailored to a particular bank, and fortify governance to reduce lawsuits while permitting long-term financial growth. Originality/Value: In order to bridge the gap between conservatism strategies and long-term financial stability in emerging economies, this study examines how managerial decisions in accounting conservatism affect the financial growth of Saudi banks, incorporating litigation risk as a moderating factor. It also contributes to financial policies, risk management, and regulations. 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 explores the drivers and evolution of the shadow economy in Bosnia and Herzegovina—a transitional, post-conflict country facing persistent institutional fragility. Using the Multiple Indicators and Multiple Causes (MIMIC) model, an extension of Structural Equation Modeling, the paper estimates the size and dynamics of the shadow economy from 1996 to 2022. The model integrates macroeconomic indicators (employment rate, GDP per capita, tax revenues) and institutional variables (rule of law, control of corruption), with data primarily sourced from the World Bank. The results show that institutional quality, tax burden, and labor market conditions are significant determinants of the informal sector. The model demonstrates strong statistical validity (CFI = 0.986, RMSEA = 0.05), supported by robustness checks including unit root tests, structural break analysis, and the exclusion of controversial benchmarking methods. The shadow economy responds markedly to major shocks such as the 2008 global financial crisis and the 2014 floods. Findings provide valuable policy insights: strengthening institutions, simplifying tax systems, and encouraging formal labor market participation can significantly reduce informality. The study supports evidence-based reforms to enhance transparency, resilience, and sustainable development in Bosnia and Herzegovina. Full article

From reviewing the literature, there was still a scarcity of research about direct and indirect relationships between fintech adoption (FA) and banks’ environmental performance (BEP), particularly in developing countries. Therefore, this is a pioneering study that empirically explored the impacts of FA on BEP in the Middle East (ME) region, considering the mediating role of green accounting practices (GAPs)—such as green banking practices (GBPs), green finance (GF), and circular economy practices (CEPs)—based on legitimacy and ecological modernization (EM) theories to address these research gaps. Based on a structured survey and convenience sampling technique, the primary data were obtained from a sample of 500 members of staff from banks in Saudi Arabia, Bahrain, Egypt, Oman, Iraq, and Jordan. The structural equation model (SEM) was utilized to investigate the relationships among this study’s variables. The findings indicated that FA positively and significantly impacts GBPs, GF, CEPs, and BEP, which answered the first research question. Furthermore, the linkage between FA and BEP is positively and significantly mediated by GBPs, GF, and CEPs; thus, the second research question was answered. The findings provide bank executives and policy makers with valuable understanding and suggestions to deploy more investments in eco-friendly practices to enhance the environmental performance (EP), societal legitimacy, and achieve competitive advantage. Additionally, collaboration among the banking institutions, governments, and international firms is essential to promote FA and GAPs and enhance the EP. Full article

Green banking has become a concept of interest, particularly with the focus on the role played by banks in pursuing Sustainable Development Goal 13 on climate action. This study is distinguished from previous ones in that it aimed at investigating the multi-regional view on green banking practices/activities around the world with a special emphasis on the opportunities and challenges that various banks encounter in different geographical areas. A systematic review approach was adopted based on the Web of Science and Scopus databases, in which 159 articles were retrieved and 62 articles synthesized through a thematic analysis. The research process was demonstrated through a Prisma 2020 flowchart. Key multiregional green banking activities identified include digital banking, green loan or sukuk products for Islam-dominated economies, green services and investments, and financing of green infrastructure. In essence, the implementation of green banking is either directly through active green lending and greening their operations or indirectly through enhancing conditions. The key challenges identified include regulatory handles, social economic and culture hinderances, transition risk and the high cost of compliance, greenwashing concerns, and weak investor confidence. The most prevalent opportunities included green banking as a strategic competitive advantage, emerging market niche, and as a strategy for long-term climate risk management. Full article

In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade growth. However, this extensive growth pattern has not only led to environmental pollution domestically but has also encountered hurdles from international green trade barriers. Finance, as a key driver of stable economic growth, plays a pivotal role in achieving high-quality trade development. Against this backdrop, the Chinese government has introduced the green credit interest subsidies policy. This policy aims to coordinate government financial resources and guide capital toward green production, alleviating financing constraints and fostering the upgrading of export product quality. Utilizing data from the World Bank, China Customs statistics, and provincial panels from 2011 to 2020, this study employs a multi-period difference-in-differences (DID) model to examine the causal impact of the green credit subsidies policy on efforts to upgrade the export quality of green products across China’s regions. The benchmark regression results indicate that the green credit interest subsidies policy has significantly improved the export quality of green products across China’s manufacturing industries. Heterogeneity analysis shows that this policy has had a more pronounced positive impact on green product quality in industries with quality-based competition strategies, in regions with well-coordinated local finance and financial policies, as well as in countries that have concluded environmental clauses with China. Mechanism analysis reveals that, on the export side, the policy enhances green product quality by easing financing constraints, increasing green credit, boosting productivity, and upgrading industrial structures. On the import side, the policy promotes green product quality by expanding the scale, variety, and quality of green intermediate goods. This research offers valuable insights for developing countries aiming to establish export-oriented green transformation and upgrading strategies. Full article

This study investigates the heterogeneous impact of bank automation on institutional performance, emphasizing the role of mechatronic systems like automated teller machines (ATMs) and artificial intelligence-based tools such as chatbots and robo-advisors. Using Method of Moments Quantile Regression (MMQR), the analysis examines how these technologies influence key performance indicators, including return on equity (ROE), in the European Union (EU) banking sector from 2017 to 2022. The MMQR method allows for the differentiation of the effects of automation technologies by distinguishing between hardware-based mechatronic systems and software-driven AI solutions, providing a nuanced perspective on the digital transformation within the banking sector. The results highlight the heterogeneous effects of economic, financial, and institutional factors on banking performance in the EU. They emphasize the need for differentiated policy interventions to reduce performance gaps between EU economies and ensure that banks across all member states can leverage financial and technological advancements to enhance profitability. The findings underline the importance of strategic interventions to address digitalization disparities, promote financial inclusion, and establish a regulatory framework that fosters transparency, cybersecurity, and equitable access to AI-driven financial services. Full article

In today’s digital economy, long-term business success increasingly depends on both financial resources and digital capabilities. However, limited research explores how these two factors jointly drive sustainable performance in SMEs. This study investigates how access to finance influences sustainability outcomes among SMEs, with digital agility as a mediator and Industry 5.0 as a moderator. Based on cross-sectional data collected from 383 Hungarian manufacturing SMEs in late 2024, we apply PLS-SEM and Machine Learning (ML) techniques to validate our model. The results show that access to finance significantly influences digital agility and SMEs’ sustainability. Digital agility significantly mediates between access to finance and SMEs’ sustainability. Industry 5.0 further strengthens the relationships between access to finance and both SMEs’ sustainability and digital agility. ML identified digital agility as the key factor of SMEs’ sustainability. This study contributes to the Resource-Based View and Triple Bottom Line views by synergizing digital agility and human-centered Industry 5.0. Theoretically, it also supports methodological innovation in showing that the combined usage of PLS-SEM and ML can produce stronger and more fine-grained conclusions on complex sustainability dynamics. The findings are practically relevant guidance for SMEs, policymakers, and banks intending to enable digitally facilitated sustainable growth. To the scientific community, this study bridges a critical void by linking finance, technology, and sustainability within an innovative framework. Socially, it highlights how SMEs’ financial and digital capabilities can be strengthened not only to drive economic performance but also to support environmental sustainability and social well-being—resulting in inclusive and sustainable growth for emerging economies. Full article

This study explores the determinants of CEO compensation in the banking sector, focusing on cross-listing and loan growth. Using 8800 observations from 45 countries spanning 2004 to 2018, the analysis reveals significant differences in compensation structures between developed and developing economies. The findings show that CEO stock options and restricted stock compensation are positively correlated with cross-listing in the U.S. market, with a stronger effect in developing countries. Loan growth is associated with higher incentive-based pay but lower fixed salaries, aligning CEO compensation with performance-driven growth and risk management. These results underscore the role of regulatory environments and institutional quality in shaping executive pay, offering valuable insights for policymakers, financial institutions, and investors navigating a globalized banking sector. Full article

This study assesses the informational usefulness of several uncertainty metrics in predicting the monetary policy and actual economic activity of Tunisia. We use a Bayesian time-varying vector autoregressive (VAR) model to identify uncertainty shocks sequentially. We complement the analysis with the use of local projections (LPs), a recently flexible and simple method that accommodates the effect of an exogenous intervention on policy outcomes. The findings suggest that shocks to global and spillover uncertainty are important in elucidating the dynamics of industrial production and consumer prices. The impulse response functions (IRFs) show that the central bank does not follow a linear-rule-based monetary strategy. The irreversibility theory, or the “precautionary” behavior, is tested in a vector error correction model (VECM). The money market rate impacts industrial production and consumer prices differently during high versus low uncertainty, depending on the uncertainty variable and the horizon (short versus long run). The effects can be insignificant or significantly dampened during high uncertainty, indicating that conventional monetary policy may be ineffective or less influential. The “wait and see” strategy adopted by economic agents implies that they do not take timely actions until additional pieces of information arrive. While this could not be the sole explanation of our findings, it conveys the importance of dealing with uncertainty in decision-making and highlights the necessity of a clear and credible communication strategy. Importantly, the central bank should complement interest rates with the use of unconventional monetary policy instruments for better flexibility. Our work provides a comprehensive and clear picture of the Tunisian economy and a focal guide for the central bank’s future practices to achieve macroeconomic objectives. Full article

In the context of current global challenges, the integration of digitalization, financial performance, and renewable energy is pivotal in fostering sustainable and resilient economic development. The aim of this paper is to explore the interplay between banking performance, digitalization, and renewable energy consumption in the context of the European Union (EU), with a focus on sustainable economic development. This study examines the extent to which the digitalization and efficiency of the banking sector influence the uptake of renewable energy considering the EU’s environmental and economic priorities. The methodology used involves an econometric analysis based on statistical data from EU countries, using Fully Modified Ordinary Least Squares (FMOLS) to assess causal relationships between variables, complemented by Vector Autoregression (VAR) models and Granger causality tests to further investigate the dynamic interactions among the variables. The data were analyzed to examine the correlation between banking performance, digitalization, and renewable energy consumption levels. The results reveal a positive correlation between greater digitalization in the banking sector, stronger financial performance, and higher investments in renewable energy sources. These factors also support the transition to a green economy, but the effect varies between EU countries depending on national policies and existing digital infrastructure. Recommendations for policymakers include stimulating digitalization in the financial sector, creating a regulatory framework to encourage green energy investments, and strengthening collaboration between financial institutions and the energy sector to facilitate the transition to renewables. This paper also suggests a fiscal policy conducive to technological innovation and digitalization to accelerate the uptake of renewable energy. Full article

This paper investigates the firm-level determinants of debt policy in private family SMEs. It employs a comparative analysis of two sub-samples of family and non-family SMEs using panel data from 200 Moroccan SMEs over the period from 2018 to 2022. The findings reveal that family SMEs adopt a conservative financing strategy, maintaining lower debt levels compared to their non-family counterparts. This conservative approach appears to be driven by risk considerations related to bankruptcy costs associated with higher debt levels. Indeed, the results show that the financing behaviors of family SMEs align more closely with pecking order theory than trade-off theory. Furthermore, the study suggests that the financing behavior of family SMEs differs slightly from that of non-family SMEs, but this difference is not resistant to changes in debt measures. This study makes several contributions to the literature. First, it identifies the key determinants of debt policy among family SMEs, offering insights into the distinctive financing strategies employed by these firms. Second, it offers evidence supporting the relevance of capital structure theories in explaining the financing decisions of family firms within the context of developing economies. In addition, the study’s findings have practical implications insofar as they can guide policymakers and banking stakeholders, especially those in bank-based economies where debt is the primary financing option for SMEs, in conceiving adapted financing options that align with the characteristics of family firms, thereby fostering their growth and, consequently, the economy’s development. Full article