Current Issue : January-March Volume : 2026 Issue Number : 1 Articles : 5 Articles
This study explores the ownership–risk relationship in the GCC emerging economies during the COVID-19 pandemic, examining 44 commercial banks classified as private and publicly owned banks. The two-stage least squares (2SLS) method is employed to identify endogeneity issues, with robustness checks using panel data techniques. We analyzed the ownership–risk relationship, including non-linear and interaction effects. The results reveal that public ownership exhibits an inverted U-shaped relationship with NPLs, where moderate public concentration increases credit risk, while high public control marginally reduces it. Private ownership is linked to higher risk once bank-specific characteristics are controlled, reflecting riskier lending driven by profitability motives. We show that public banks demonstrate resilience due to stable deposits and implicit backing, whereas private banks are more vulnerable to systemic shocks. The impact of ownership structure on credit risk is context-dependent, reflecting heterogeneous ownership objectives in the GCC....
The adoption of digital technologies has emerged as a transformative force in shaping corporate financial strategies, particularly in optimizing cash reserve management. This study examines the impact of digital technology adoption on corporate cash holdings, with a particular emphasis on the moderating role of financing constraints. Leveraging a novel digitalization index constructed from corporate annual reports using advanced natural language processing techniques and drawing on data from Chinese publicly listed firms between 2012 and 2021, the findings demonstrate that digital technology adoption significantly reduces cash holdings, with this effect being more pronounced in nonhigh- tech firms compared to their high-tech counterparts. Financing constraints are shown to moderate this relationship, underscoring their critical role in shaping corporate liquidity strategies. These results are consistent with agency theory, which advocates minimizing the costs of excess cash, and financial distress theory, which emphasizes the protective role of liquidity buffers in mitigating risks. Beyond its theoretical contributions, the research offers practical implications: managers can recalibrate liquidity strategies in line with digital transformation, while policymakers can design interventions that ease financing constraints to foster sustainable economic growth....
Financial institutions, researchers, and policymakers are taking steps to promote financial inclusion, a crucial aspect for social and economic development. This study explores the extent of financial inclusion (FI) in Zimbabwe’s commercial banks. This study employed a mixed-methods approach. A relationship mapping was conducted on the bank customers’ survey, and a thematic analysis was performed on bank executives to evaluate bank challenges and strategies. The findings confirmed positive strides towards achieving financial inclusion. Gaps in financial inclusion were identified in the high rate of people using informal channels and the limited policies in creating a conducive environment for financial inclusion. The study contributes to the ongoing debate by the World Bank in support of financial inclusion as an effective solution for countries like Zimbabwe, which is experiencing a severe macro crisis. The study adds to the emerging financial inclusion literature, proposing solutions to reduce financial exclusion in developing economies. Based on the study findings, policymakers should create a conducive environment for commercial banks and consumers of financial products and services in Zimbabwe....
Internal audit plays a vital role in the corporate governance process. The perceived poor internal audit practices, mainly caused by a lack of independence, have resulted in sound corporate governance practices evading the company; thereby leading to the abysmal performance of the majority of companies. The study, therefore, seeks to ascertain the practices of internal audit and corporate governance at Kenema Government Hospital with a specific focus on ascertaining the existence of internal financial control systems, assessing the level of compliance with financial management regulations and identifying the consequences for non-compliance with such regulations. The study adopted the purposive sampling technique, a sample size of twenty-five (25) respondents comprising accounting, auditing, and health and administration staff. Interview guides were used as the main instrument for the collection of data. The findings of the study revealed that effective internal audit practices and a sound corporate governance framework enhanced the hospital’s systematic, comprehensive approach to internal control, which was consistently documented, understood at the management level and communicated at all levels of the hospital. Nevertheless, there still existed some inconsistencies concerning how internal controls were implemented and enforced and all responsibilities were not clearly defined. Again, the independence of internal auditors in the hospital was greatly compromised since, most of the time, they are considered employees of management. Hence, the views of internal auditors reporting to the board are merely a formality to satisfy corporate governance requirements....
This study looks at how oversight committees affect CEO compensation governance and how this affects publicly traded banks’ financial performance. It specifically looks at how compensation committee mandates and structural traits affect how CEO compensation is matched to company performance results. The research employs a panel dataset of sample firms across the study period, combining financial performance metrics like return on equity (ROE) and return on assets (ROA). It draws on agency theory and corporate governance theories. In addition to firm-level controls, the research takes into account committeelevel factors such independence, experience, frequency of meetings, and ownership. The findings obtained through panel regression methods and testing show that improved pay-performance sensitivity and improved financial performance do not correlate with committee influence, independence, or financial expertise. The importance of empowered oversight committees in reducing interagency conflicts of interest and fostering efficient governance is demonstrated by these findings. By emphasizing how internal governance frameworks can be used to produce long-term organizational goals, the study adds to the discussion surrounding executive compensation....
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