This research utilizes the fsQCA technique to investigate how a combination of corporate governance conditions or factors collectively influences the performance of banks. Examining key elements such ...as board size, busy directors, independent directors, CEO duality, and women on the board, the research employs data collected from the annual reports of 30 banks spanning from 2010 to 2020. The necessary condition analysis (NCA) underscores that no individual condition or factor is indispensable for the ultimate outcome. Nevertheless, the sufficiency analysis reveals distinct solutions, each representing a unique set of conditions or factors sufficient to generate the outcome. The study concludes that the relationship between corporate governance characteristics and bank performance is complex and multifaceted, with neither ROA nor ROE reliant on a singular input condition or factor. The theoretical contributions of the findings align with or partially support various theories and propositions within the realm of corporate governance. Notably, the application of fsQCA contributes to enhance the methodological understanding of corporate governance studies in existing literature.
Existing studies assume that all lenders have similar incentives to take on risks during different phases of the lending cycle. We show that foreign lenders and low market share lenders extend more ...credit in comparison with other lenders during lending booms leading to banking crises but not during other credit expansions. These less established lenders also shorten loan maturity and increase the amount of credit they extend to riskier borrowers without asking for collateral or imposing covenants and higher interest rates. Our results suggest that foreign lenders and low market share lenders contribute disproportionately to credit misallocation and risk accumulation in precrisis periods. This paper was accepted by Victoria Ivashina, finance. Funding: M. Giannetti acknowledges financial support from the Bank of Sweden Tercentenary Foundation P16-0328 and Jan Wallanders och Tom Hedelius stiftelse P20-0127. Supplemental Material: The internet appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03505 .
Purpose The importance of financial dependence of small and medium enterprises (SMEs) on their performance is a relatively unaddressed area of research. Relatedly, whether and to what extent foreign ...bank penetration exerts an impact in the presence of financial dependence also remains an open question. The purpose of the paper in this regard is to exploit unit-level data on Indian SMEs and assess the independent and interactive effects of financial dependence on SME behaviour, in the presence of foreign banks. Design/methodology/approach This study uses fixed effects specification to address the issue. In subsequent analysis, this study also uses an instrumental variable approach for robustness. Findings The results indicate that financial dependence improves investment and employment, although there is a decline in productivity. These findings differ across size classes of SMEs. Similar is the evidence in the presence of foreign banks. In particular, foreign bank penetration leads to a decline in investment for micro and medium SMEs, although for small SMEs, the impact is found to be the opposite. Originality/value To the best of the author’s knowledge, this is one of the early within-country studies to examine the interface between SMEs and financial dependence and the role played by foreign banks in this regard.
Gorgonians play a fundamental role in the deep sea (below 200 m depth), composing three-dimensional habitats that are characterized by a high associated biodiversity and playing an important part in ...biogeochemical cycles. Here we describe the use of a benthic lander to monitoring polyps activity, used as a proxy of gorgonian feeding activity of three colonies of Placogorgia sp. Images cover a period of 22 days with a temporal resolution of 30 min. In addition, this seafloor observatory is instrumented with oceanographic sensors that allows continuous monitoring of the hydrographic conditions in the site. Deep-learning is used for automatic detection of the state of the polyps registered in the images. More than 1000 images of 3 large specimens of gorgonians are analyzed, annotating polyps as extended or retracted, using the semantic segmentation algorithm ConvNeXt. The segmentation results are used to describe the feeding patterns of this species. Placogorgia sp. shows a daily pattern of feeding conduct, depending on the hours of day and night. Using a Singular Spectrum Analysis approach, feeding activity is related to currents dynamics and Acoustic Doppler Current Profile (ADCP) return signal intensity, as proxy of suspended matter, achieving a linear correlation of 0.35 and 0.11 respectively. This is the first time that the behavior of the Placogorgia polyps, directly related to their feeding process, is described.
This study assesses the non-performing loans of conventional and Islamic banks as well as the influence of ownership on the non-performing loans of conventional and Islamic
banks. Due to fundamental ...differences in Islamic and conventional bank such as funding, non-performing loans might have differing effects on Islamic and conventional banks. This study utilised data of 26 conventional banks and 16 Islamic banks from Malaysia from 2012 to 2020. A Random Effect model was used to investigate the difference between conventional and Islamic banks’ non-performing loans as well as the influence of ownership on non-performing loans of conventional and Islamic banks. Results showed no significant differences for non-performing loans of conventional and Islamic banks. This result implies that despite the fact that Islamic banks may benefit from lower agency costs, this does not considerably decrease the likelihood of non-performing loans. Foreign Islamic banks shows higher non-performing loans in comparison to domestic Islamic banks. However, there were no significant differences for non-performing loans between foreign conventional and domestic conventional banks. This study suggests that Islamic bankers, particularly those intending to expand into other countries, investigate nonperforming loans, which can impact the risk of a foreign Islamic bank.
As the monsoon clouds congregated over Pakistan, people barely batted an eyelid. A country born out of conflict has grown accustomed to being tested in various ways and often without warning. ...Pakistanis are enduring a plummeting economy, skyrocketing inflation and serious political upheaval with the popular Prime Minister Imran Khan having been ousted in a controversial move in April 2022. So when the skies turned grey and the clouds rained down mercilessly, the Pakistanis just took it in stride. But as the days went by and the rain failed to relent, the water levels rose and the battle-hardened Pakistanis knew what was coming. Neglected infrastructure eventually relented and people, homes and everything in between were washed away in another blow to an exhausted society. Visiting Pakistan in October 2022, I met and spoke with individuals representing various associations who are playing an active role in the flood relief and who spoke on condition of anonymity.
This paper aims to study the response of CO.sub.2 emissions in the African continent to asymmetric financial development shocks by incorporating this asymmetric component in the environmental Kuznets ...curve (EKC) hypothesis. Following the Shin et al. (2014 (See CR54)) nonlinear autoregressive distributed lag (ARDL) approach in panel form, we construct a nonlinear panel ARDL-PMG model to assess both short- and long-run impact of positive and negative financial development movements on CO.sub.2 emissions, for a panel of 22 African countries over the period 1980-2014. Asymmetric results prove first that the EKC hypothesis is found to be supported in the long term but not supported in the short term in Africa. Positive financial development shocks are found to be beneficial for fighting against pollution in the long run. However, the asymmetric findings prove that financial instability exerts a positive impact on CO.sub.2 emissions in the short run. In terms of policy implications, African governments should put in place durable policies favouring the development of their financial systems, make funding of green projects less vulnerable in the short term to negative shocks hitting financial systems and improve financial development in the long term, by reducing market imperfections.
The present study aims to measure the overall technical efficiency, pure technical efficiency, and scale efficiency of 18 Indian private banks and 12 public banks for 2011-2021. Using DEA, the study ...has found that private banks are more input efficient (78.98%) than public banks (77.13%). The decomposition of efficiency under the variable returns to scale (VRS) assumption has shown that private banks are technically more input efficient (88.33%) than public banks (80.95%) and that public banks are more scale efficient (95.55%) than their private counterparts (89.42%). Analysis of bank group-wise returns to scale has shown that 65.15% of the private banks need to increase their scale size, and 16.16% of the public banks need to reduce their scale size so as to operate at the efficient frontier. Also, it is evident that the prime cause of inefficiency in public banks is managerial inefficiency. However, in private banks, there is only a marginal difference between managerial inefficiency and scale inefficiency.
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