Listed companies participate in shadow banking
159329003
The Impact of Enterprises' Shadow Banking Activities on Business Performance: A Test Based on Mediator Effect of Investment Scale and Investment Efficiency
ABSTRACT In recent years, China's financial sector has gradually been alienated from the real sector, allowing financial innovation and regulatory arbitrage add their own value to finance. High interest rates in the financial industry have led to changes in the real sector, revealing a trend toward "financialization" and "quasi financialization" a typical example of this includes nonfinancial enterprises' shadow banking activities. In this article, we use annual data from 2004 to 2015 of A share listed companies on the Shanghai and Shenzhen Stock Exchanges, to examine the influence of nonfinancial enterprises' shadow banking activities on business performance. The results show that, overall, enterprises' shadow banking activity improve operating performance. In addition, from the perspective of earning structure, nonfinancial enterprises' shadow banking business increases financial benefits, but has a significantly negative effect on operating income. Further tests show that enterprises engaged in shadow banking activities will impact operating income through the two intermediary variables of investment scale and investment efficiency. However, the negative effect of investment in crowding out operating income is greater than that of the efficiency improving effect on operating income. This article provides policy guidance in terms of recognizing diverse aspects of shadow banking system that divorce the real economy from the financial economy.
Xun Han Sara Hus Jianjun Li
182596700
INFLUENCE OF DIVIDEND POLICY ON STOCK PERFORMANCE AMONG BANKING SECTOR FIRMS LISTED IN NAIROBI SECURITIES EXCHANGE, KENYA
The Nairobi Securities Exchange, which is an emerging market, shows some features of an immature market, with weak regulations compare to developed markets in Europe and America. Investors in this type of market concentrate more on their dividend returns due to the substantial market risk and undiversified volatility, which in the long run, may have effect on the firm's stock performance. This implies that stock performance is important to both firms and investors. Therefore, the volatility of stock market share prices in Kenya motivated this study to investigate the influence of dividend policy on stock performance of banking sector firms listed in NSE. The study was informed by signaling theory and dividend irrelevance theory. The study adopted explanatory design and targeted 12 banking sector companies listed on Nairobi Security Exchange with a target population of 126 respondents; then Yamane's formula used to calculate a sample size of 96 respondents, who were sampled through stratified sampling technique and selected using simple random sampling to participate in the study. The study used structured questionnaires to collect primary data. The research instruments were pretested in a selected established firm registered in NSE using 10 respondents from the firm. Content validity was used to check instrument validity while Cronbach's alpha was used to check instrument reliability. Data collected from the field was coded, cleaned, tabulated and analyzed using both descriptive and inferential statistics with the aid of specialized Statistical Package for Social Sciences (SPSS) version 24 software. Descriptive statistics was used to compute means, percentages, frequencies, standard deviations while inferential statistics was used for variable relationships. From the values of unstandardized regression coefficients with standard errors in parenthesis, all the independent variables were significant predictors of stock performance (dependent variable) The study concluded dividend policy is a significant predictor of stock performance, thus trading firms that craft and implement viable dividend policies can boost their stock performance. The study recommended that trading companies should craft and implement viable dividend policies that will attract a positive yield on their stock performance. Key Words: Dividend Policy, Stock Performance, Banking Sector Firms, NSE CITATION: Mwanje, P. Otinga, H. (2019) Influence of dividend policy on stock performance among banking sector firms listed in Nairobi Securities Exchange, Kenya The Strategic Journal of Business Change Management, 6 (2) 1843 1854.
Pascal Mwanje Hesbon N Otinga
155096845
Credit Risk as an Intervening Variable in the Effect of Good Corporate Governance GCG Implementation on Banking Companies Performance Study on Banking Companies Listing on BEI 2012 2016 Period I Made Gilang
The phenomenon of economic crisis that occurred in 1997 1998 has led Indonesia to the worst financial crisis and banking performance. Several factors contributed to the Indonesia economic collapse such as extremely poor financial regulation, irregular banking practices were pervasive and high default loans ratio of the state banks. Inadequate enforcement of central bank regulations meant that rules were routinely violated with impunity. Some efforts have been made to improve banking sector performance and regain public trust, the implementation of corporate governance practices in banking industry being the main concerned of central bank. As for the purpose of this study was to determine whether GCG had an effect on banking performance through credit risk. The object was several banks which listed on IDX and participated in IICG survey during 2012 2016. By using purposive sampling, 7 bank samples were obtained and the statistic analysis was carried out using Path Analysis Method. The results of this study indicate: 1) GCG has negative effect on credit risk, 2) GCG has positive impact on company performance, 3) credit risk has negative impact on company performance and 4) credit risk was able being referred as an intervening variable in the effect of GCG on banking companies performance. The results of this study can be used as a tool for improving company management related to GCG implementation, credit risk and company performance.
Candra Pradipta Rata Ni Ketut Surasni AP INyomanNugraha
24152203
A study on shadow banking scale and risk in China
In this paper, the closing price of a total of 28 listed companies including 16 traditional banks and 12 shadow banks in China are selected as the study samples to construct the GARCH model and calculate the VaR values of these 28 banks of shadow banks on traditional banks. The empirical results show that risks faced by China's shadow banks are up to three times higher than those faced by traditional banks. On the other hand, as shadow banks and traditional banks are highly correlated and risks are contagious, the shadow banks will have risk spillover effects on other financial subjects. Accordingly, we should improve the shadow banking legal system and supervision framework to adapt to the financial system reform; the non traditional credit creation mechanism within the banking system is the focus of the supervision of the shadow banking system in the future; we should adjust the financial supervision model in a timely manner and gradually change from separate supervision to comprehensive supervision; we should improve the internal control mechanism of shadow banking based on supervision improvement.
2017 4th International Conference on Industrial Economics System and Industrial Security Engineering (IEIS)
Xiaowen Huang
67792573
Bankers on Board, Banks as Shareholders and Firms Performance:Case of the Tunisian Listed Companies
Unlike the Anglo Saxon countries, where business financing is made through the financial markets, Tunisian banks play a more important role than the financial markets in funding the firms. In addition to their function as lenders, they can participate in the capital of companies and/or serve on their boards. Our results on a sample of 14 listed companies on the Tunisian Stock Exchange (STE) during the 2003/2009 period show that banks play an important role in the governance of the Tunisian firms and affect their performance. Based on this sample, we performed regressions of these two governance variables (banking participation in the firms' equity and boards) on the firms' accounting and stock performance. The obtained results show that, firstly, the banking investment in the firms' share capital has a negative impact on the accounting performance measured by the ROA and the ROE and positively on the stock market performance (Tobin's Q and Marris) and, secondly, the banking presence in the board of directors has both a positive and negative impact on the accounting performance on the stock market performance.
Habib Affes Hakim Nh
202233639
EFFECT OF GOOD CORPORATE GOVERNANCE TO CORPORATE VALUES Studies in Banking Sector Listed in Indonesia Stock Exchange IDX year 2011 2015
Based on the results of a survey conducted by ACGA, Indonesia is one among the Asian countries that get the latest position in implementing GCG in the company. Which is where GCG can maximize performance and encourage professional management of the company, as well as participate mensuksekan company program, to improve company performance, minimize financing within the company and increase investor confidence to invest in the company. This study aims to examine the effect of Good Corporate Governance which is proxied through managerial ownership variables, institutional ownership, and independent commissioners of firm value measured through PBV (Price Book Value) either simultaneously or partially. The method used in the selection of samples is purposive sampling so that the resulting 8 companies are sampled in this study, as for the analysis technique used using panel data regression. The results of this study indicate that the partial and simultaneous test of managerial ownership, institutional ownership and independent commissioner does not affect the value of the company.
Belia Dinar Nurfaza T T Gustyana Aldila Iradianty
203687256
Corporate Social Responsibility Disclosure Practices A Study of Selected Banking Companies of Bangladesh
This study examines the current situation of Corporate Social Responsibility (CSR) disclosure practices in listed banks of Bangladesh. This paper examines annual report of 2016 of selected banks in consideration of preferred sector of CSR by Bangladesh Bank, National Board of Revenue (NBR) and areas examined by previous researchers. The study reveals 100% banks reported about CSR activities. The most participated sector is Education sector where 100% participation is observed. The least participated area is environment where participation is 41.66% Lack of diversity in CSR activities have been observed through this study.
Faria Akter
202985586
Ownership Structure and R&D: An Empirical Analysis of Italian listed companies
The paper explores whether a theory of banks doing 'finance through money creation' implies a reconsideration of demand side macro theory as well. To this aim, a simple methodological accounting model of the influence of financial markets over the real economy is presented. The model allows a tidy comparison of relationship and shadow banking, interpreted as alternative schemes of liquidity (not credit) risk management. The model emphasizes the interdependencies in entrepreneurs' animal spirits, liquidity risk management schemes adopted by financial institutions, and effective demand of households. The underlying idea is that fluctuations in the composition of property incomes trigger fluctuations in non financial investment that, in turn, drive fluctuations in spending. The article finds that both relationship and shadow banking must have a pro cyclical impact, and differences are essentially based on different liquidity risk management aggregate cost functions. The model developed here suggests that securitisation does not per se affect the financial sustainability of the growth process, but regulatory measures aimed at checking predatory lending and re securitisation activities are needed to avoid possible adverse impacts on animal spirits. JEL codes: E44, G20, O16
Antonio Dal Bianco
168809937
The Shadow Banking System. Can it be regulated
The subprime crisis that erupted in 2007 revealed the existence of a financial system parallel to the traditional banking system, known as the "shadow banking system" (SBS) The SBS can be defined as a system of financial intermediation encompassing those entities which lie outside the traditional banking sector but which perform partly similar functions.1 The SBS is comprised of organisations involved in highly leveraged operations which do not have direct access to deposit insurance or to central bank refinancing, and which are not subject to prudential supervision. Investment banks, hedge funds, investment funds (mutual funds, pension funds, insurance companies) private equity funds and structured investment vehicles all participate in the SBS.
Dominique Plihon
169951079
Does the Development of Fictitious Economy Inhibit the Real Economy? Microcosmic Evidence from Chinese Listed Companies
After China's economy enters the " new normal" era, the structural imbalance problems between fictitious economy and the real economy have become increasingly prominent. Under the driving force of fictitious economy's excess return rate, the entity sector enterprises hold much more financial assets than before and gradually affect the entity's main business, which has become one of the stylized facts of China's economy. Therefore, understanding the impact and mechanism of fictitious economic development on micro entity enterprises is an important prerequisite and basis for resolving structural imbalances, preventing financial risks, and cultivating new kinetic energy for economic growth. The existing research explores the interaction and deviation between fictitious economy and the real economy from multiple perspectives, but it is not sufficient to discuss the imbalance mechanism between Chinese entities and the fictitious economic structure under the current macroeconomic background. China's economy has entered a new normal, and new features and new phenomena are constantly emerging, requiring new explanations. With the rapid development of China's economy, only part of fictitious economy represented by banks has been unable to explain some new problems. For example, the rapidly developing shadow banking system which is outside the supervision is very worthy of attention. In addition, the maturity mismatch and credit mismatch caused by local government financing platforms also affect the real economy and cause structural imbalances. Therefore, it is necessary to further expand the relationship between the two issues, and summarize and extract new models and lessons. Therefore, this paper attempts to examine the impact of the " financialization" process of holding financial sector assets on the output and efficiency of the real economy sector driven by the development of fictitious economy under the micro enterprise level. The paper conducts empirical research through the data of Chinese listed companies. Considering the possibility of endogenous problem, it is found that the rapid development of fictitious economy after 2008 has a significant and long term inhibitory effect on the real economy. This suppression is mainly reflected in private enterprises and manufacturing industries, and it has a more negative impact on the real economy in the " new normal period" of the economic downturn. From the macro environment perspective, the rapid expansion of shadow banking and the impact of local government financing platforms on the real economy are the main transmission mechanisms for this inhibition. From the perspective of micro enterprises, arbitrage motives enable entities in the real sector to allocate financial assets, squeeze capital investment and ultimately reduce the efficiency of business operations. These conclusions have important policy implications for clarifying the relationship between the real economy sector and the fictitious economy sector, and the future direction of China's financial and real estate reform. The paper may have three possible innovations. First, according to the industry and the nature of enterprises, the dynamic relationship between fictitious economy and the real economy is deeply combed, and it is found that the impact of fictitious economy on the various components of the real economy is heterogeneous. Second, given China's economic development process, from the external and internal dimensions of micro enterprises, the paper analyzes the impact mechanism of fictitious economic development on micro entity enterprises. Third, as to the policy factors behind these relations and mechanisms, such as interest rate marketization reform, necessary financial industry policy coordination, and local government soft budget constraints on debt, a preliminary analysis is also conducted. The conclusions obtained by the article provide important inspirations for China to adjust the structural problems of both fictitious and the real economy in the future. The complementary relationship between fictitious economy and the real economy requires certain premise, such as hard constraints of the enterprise budget, and strictly regulated financial fictitious economy. Therefore, it is necessary to improve the overall financial supervision, and control speculative motives from the source; to encourage the transformation and upgrading of the real economy, vigorously implement supply side structural reforms, and realize industrial transformation and upgrading through innovation; to regulate local government financing platforms, strictly implement government debt balance management, and improve the local government debt budget management system.
Zhou Bin Xie Jia-song