Current Issue : January-March Volume : 2025 Issue Number : 1 Articles : 5 Articles
This paper evaluates the effects of board financial expertise on the financial sustainability of Saudi non-financial listed companies. The research sampled data from 97 companies covering 2013 to 2022 and analysed the data using different econometric models. The research findings indicated a strong and positive impact of board financial expertise on sustainable performance. This outcome implies that financial sustainability may increase as the number of finance specialists on the board rises. The evidence supports agency framework, resource dependency, and upper echelons theories. These frameworks argue that stringent monitoring, technical advice, and intellectual competence of finance specialists may positively influence organisational outcomes. Practically, the results indicated that Saudi-listed firms should emphasise employing financial specialists on their boards to boost their value and attain sustainable growth. The study may also guide managers and regulators on the relevance of financial experts in promoting sustainable practices....
This study examines the determinants of profitability in the banking sector of Zambia between 2010 and 2020. Using prudential data obtained from the Bank of Zambia, the analysis focuses on the correlation between various financial variables and banks’ profitability, measured by Return on Assets (ROA). The study investigates the influence of Total Assets, Shareholders’ Equity, Liquid Assets, Deposits, Net Interest and Other Income, Investments in Securities, Gross Loans and Advances, and Non-Performing Loans on the profitability of Zambian banks. The findings reveal significant correlations between several key variables and banks’ profitability. Total Assets, Shareholders’ Equity, Liquid Assets, Deposits, Net Interest and Other Income, Investments in Securities, and Gross Loans and Advances exhibit positive correlations with profitability, suggesting that larger asset bases, stronger equity positions, adequate liquidity, stable deposit funding, higher income, prudent investments, and larger loan portfolios are associated with higher profitability. However, the relationship between Non-Performing Loans and profitability appears to be more nuanced, with variability observed among banks. These results underscore the importance of sound financial management practices in enhancing profitability and ensuring the stability of the banking sector in Zambia. The study contributes to the existing literature by providing insights into the determinants of profitability specific to the Zambian banking sector, thereby offering valuable information for policymakers, regulators, and industry stakeholders....
This research examines the effect of board attributes and earnings management of deposit money banks listed on Nigeria Exchange Group for ten years period (2012-2021). Eight out of Twenty-one deposit money banks listed on Nigerian Exchange Group as at 31st December, 2021 were selected as the samples using filtering method. Ordinary least square regression technique was employed as technique of data analysis. The results shows that board independence is negative but statistically significant there by increased and reduced earnings management respectively while board size is negative and statistically insignificant in reducing earnings management of deposit money banks in Nigeria. Thus, it is recommended that shareholders of DMBs in Nigeria should put in place ideal boards with adequate members so as to provide an oversight role that would minimize on earnings management....
Purpose Financial inclusion aims to provide affordable financial services, including banking, loans, equity, and insurance products, to underserved populations. This study aims to examine the moderating effect of a bank’s capital adequacy ratio (CAR) on the nexus between financial inclusion (FI) and a bank’s financial performance (FP) in the Egyptian setting. Design/methodology/approach The study uses two empirical linear mixed models (LMM) to test the moderation effect of a bank’s CAR on the association between FI and FP. The study sample comprises 360 bank quarter-observations of 10 listed banks in the Egyptian Stock Exchange (EGX) from 2013 to 2021. Findings The findings show that the bank’s CAR strengthens the association between FI dimensions, namely, deposit growth, loan growth, and the number of employees, and the bank’s FP with contradicted directions. Research limitations/implications This study provides policymakers insights into the crucial role of complying with banking regulation, namely, the capital adequacy ratio (CAR) and expanding financial inclusion practices to enhance and improve the bank’s FP. Thus, encouraging more strategies and facilities toward financial inclusion. Originality/value Due to the scarcity of financial inclusion literature in emerging economies, this paper extends FI literature by highlighting the moderation impact of a bank’s CAR on the relationship between FI dimensions and FP in the Egyptian banking sector. Consequently, this study clarifies this beneficial relationship, which may have significant implications for restoring the challenges faced by the Egyptian economy following the critical events it went through, which, in turn, impacted the country’s poor and vulnerable....
Lending to the agricultural sector by commercial banks in Ghana is characterized by high credit risk. Empirical evidence suggests that commercial banks in Ghana have credit risk management (CRM) challenges. This study explores the credit risk mitigation strategies adopted by commercial banks to minimize credit risk in agricultural finance in Ghana. The study adopted a mixed-method approach using a survey questionnaire and interview instruments. The findings indicate that some of the strategies used by commercial banks to mitigate credit risk in agricultural finance do not meet commercial banks’ CRM needs. In addition, Ghanaian commercial banks have not fully adopted some of the recommended strategies that are used to mitigate credit risk associated with agricultural lending. The study unveils some appropriate strategies used to mitigate credit risk exposure in agricultural finance among commercial banks. These strategies include agricultural value-chain financing, collaboration with off-takers, incentive-based and risk-sharing schemes, adoption of a holistic agricultural value chain financing, policy interventions, use of agricultural insurance pool, and the proper structuring of agricultural loans....
Loading....