Corporate governance and accounting conservatism in Islamic banks

We examine whether Islamic banks are more likely to be conservative in their financial reporting than conventional banks, as well as how Islamic banks' unique corporate governance system affects accounting conservatism behaviors. Using a large sample of Islamic banks and their matched non‐Islamic banks; based on total assets and geographic location, in 15 countries, we find Islamic banks are more likely to deploy accounting conservatism as measured by loss avoidance, abnormal loan loss provisions, and C‐score, respectively. Islamic banks are about 95% more likely to be more conservative in accounting practices than their counterparts, depending on different model specifications. In addition, we report several board characteristics, such as size, independence, reputation, tenure, and diversity, are important determinants of accounting conservatism in Islamic banks. This relationship indicates certain board traits lead to greater monitoring roles, consequently reducing unethical behavior and increasing the degree of conservatism in accounting practices.     

Determinants of Mobile Banking Users’ Loyalty

Abstract

In recent years, the banking sector has undergone major changes in the way it serves its customers. Banks have found that customer loyalty is fundamental to strengthening their strategies. The objective of this paper is to identify the variables that have the greatest influence on the loyalty of mobile banking users. A structural equation model of the relationships between the studied variables was developed. The main results indicate that the variables with the greatest influence on mobile banking users’ loyalty are satisfaction, use, and trust. Several conclusions, managerial implications, and possibilities for future studies emerge from these results.     

Forms of enterprise in 20th century Italy. Boundaries,structures and strategies

Research in this article traces the origins of a not-for-profit financial institution called the Society for Worldwide Interbank Financial Telecommunication (SWIFT). SWIFT is a core part of the financial services infrastructure and is widely regarded as the most secure trusted third party network in the world, serving 200 countries with over 8000 users. The analysis focuses on how the design and current state of SWIFT was influenced by its historical origins. In order to ensure widespread compatibility in a sector experiencing asynchronous technological development, legacy Telex specifications had to be accommodated in SWIFT's design. Over time, what began as a closed ‘society’ founded to reduce errors and increase efficiency in interbank payments grew into an industry cooperative supporting an enthusiastic community of practice and transformed into an unexpected network phenomenon. SWIFT achieved such success that it has been accused of being an installed base stifling innovation. In recent years, SWIFT has had to institute new categories of membership in an effort to counter concerns about its bank-dominated governance and it continues to search for ways to meet the requirements of key constituents in the financial supply chain.     

Interlocking directorates and conflicts of interest: the Rotterdamsche Bankvereeniging,Müller & Co. and the Dutch financial crisis of the 1920s

How can interlocking directorates cause financial instability for universal banks? A detailed history of the Rotterdamsche Bankvereeninging in the 1920s answers this question in a case study. This large commercial bank adopted a new German-style universal banking business model from the early 1910s, sharing directors with the firms it financed as a means of controlling its interests. Then, in 1924, it required assistance from the Dutch state in order to survive a bank run brought on by public concerns over its close ties with Müller & Co., a trading conglomerate that suffered badly in the economic downturn of the early 1920s. Using a new narrative history combined with an interpretive model, this article shows how the interlocking directorates between the bank and this major client, and in particular the direction of influence of these interlocks, resulted in a conflict of interest that could not be easily overcome.     

On the post-financial crisis performance of Islamic mutual funds: the case of Riyad funds

Using Riyad Capital mutual funds as a proxy for Saudi Arabian mutual funds, this paper empirically compares the risk-adjusted performance and investment style of Islamic mutual funds with that of conventional funds in the wake of the recent global financial crisis of 2009–2014. Absolute and relative risk-adjusted measures with single factor (Jensen) and multifactor (Carhart) models are applied. Our findings suggest that Islamic funds outperformed conventional funds domestically, given similar risk exposure, and produced comparable results under lower market risk globally. The results show that Islamic funds are a relatively big cap from the strong statistical significance registered on the global side as evidenced by the difference portfolio outcomes. In addition, the difference portfolios provide statistical evidence that Islamic funds are more value-oriented compared to conventional funds on both fronts. Furthermore, Islamic funds tend to slightly favour a contrarian trading investment strategy as suggested by statistically significant local portfolio value and global difference portfolios results. The results of home bias test show stronger ties by local Islamic funds to local market relative to the global proxy suggesting that domestic investors and managers favour Islamic funds over conventional funds, thus confirming a local preference for Shari’ah-compliant investments.     

The role of customer online brand experience in customers' intention to forward online company-generated content: The case of the Islamic online banking sector in Palestine

The purpose of this study is twofold: Firstly, to assess the impact of customer online brand experience (COBE) with online banking on customer's intention to forward online company-generated content (CGC). Secondly, to explore the role of online brand community engagement (OBCE) and the perceived trust of brand community page (BCP) as mediating variables between COBE and the intention to forward online CGC. This research conducted an online survey among various Islamic bank customers in Palestine who were members of online brand communities (fan pages) on Facebook. 375 valid responses were collected and results revealed that COBE exerts a dual influence on intention to forward CGC. This study is a pioneering empirical research on the role of OBCE in customers' intention to forward online CGC within the fast-growing Islamic banking industry. This study contributes to fill this research gap by assessing the effect of COBE on OBCE and intention to forward online CGC within the context of the Islamic online banking sector in Palestine. In this sense, this study is a first-of-its-kind research on the role of experience on customer engagement with regard to online brand communities of Islamic banks.     

British corporate networks, 1976–2010: Extending the study of finance–industry relationships

Abstract

Using an extensive and unique data set that has been created to record the composition of the boards of directors of the top 250 British firms between 1904 and 2010, this article builds upon a previous study by the authors on the corporate network to 1976 by extending the study to 2010. The analysis revolves around three key observations: the nature and depth of the corporate network; the distinct stages in corporate connectivity between 1976 and 2010; and the 1980s watershed in the relationship between financial and other sectors, following which financial institutions withdrew from the corporate network. The article concludes with an analysis of how the data set has changed our perceptions of British corporate networks, wider changes in British business, and a discussion of implications for future research.     

西北地区债务融资工具推广缓慢的原因分析

对于欠发达地区而言,利用债券市场特别是企业债券来融资以加快发展,已经成为一个刻不容缓的问题。本文在阐述我国债务融资业务以及西北地区债务融资工具推广现状的基础上,深入分析了当前西北地区非金融企业债务融资工具推广缓慢的原因,并提出了相应的对策建议。     

Banking in the Shadows: A Comparative Study of China and India

In recent years there has been increasing interest in the rise of shadow banking in China and India. In this paper, we aim to get a better understanding of the differences in trends and investigate the factors leading to the increase of shadow banking in these two major emerging economies. We find that financial exclusion is a common factor leading to the growth of shadow banking in both countries. While financial reform has taken place in India, financially repressive policies still prevail in China. Although several regulatory measures have been adopted in India and China, the size of the shadow banking sector in these two countries remains underestimated. Thus, streamlining and enhancing data collection is a key priority for both nations. We argue that regulation in both countries should be more activity focused (specific field in which a shadow bank is focused on) rather than sector or entity based, and it should be at par with banks. The shadow banks provide last mile connectivity to remote, distant, and ignored segments of the population not serviced by the formal financial sector. As this enhances financial inclusion, a balanced approach is required keeping in view both costs and benefits of the shadow banking system.     

银行竞争度对中小企业融资约束的影响研究 ——基于面板分位数模型

中小企业在我国经济发展中发挥着越来越重要的作用，但”融资难、融资贵、融资险” 问题一直制约其发展。2018 年的国务院会议以及2019 年的政府工作报告中多次强调了这个问题， 明确要求提高中小企业金融服务的可得性。针对这种现状，文章从银行竞争度视角出发，以2013- 2017 年新三板创新层中739 家企业为样本，通过构建面板分位数模型，研究银行竞争度对处在不 同分位（10、50、90）下中小企业融资约束的影响。结果表明：银行竞争度显著影响中小企业融 资约束，且对不同分位的中小企业影响不同，通过提高银行竞争度，融资约束越严重的中小企业 将受益越多。另外，上下游企业融资、短期融资比率以及宏观环境也是影响中小企业融资的重要 因素。文章在实证分析的基础上，从降低市场门槛、引入外资银行等几个方面提出建议，为化解 中小企业的融资困境提供依据。