September 2018 (World Review of Business Research)

September

2018

June 2018
September 2018 (World Review of Business Research)

Total Articles - 9

Pages 1-11

Author: Rosnia Masruki, Khaled Hussainey and Doaa Aly

This study investigates in-depth the performance reporting practices in Malaysian State Islamic Religious Councils (SIRC).Semi-structured interviews are conducted with accountants of SIRC and contributors, representing the public. Such interviews are carried out to discuss the current reporting practices. This study addresses the current performance reporting practices of State Islamic Religious Councils in Malaysia. It begins with the definition of performance reporting in the context of SIRC, it’s relevance, current practices and also recommendations for a more comprehensive performance reporting. The performance reporting essentially, is as part of an annual report, which expected by a wide range of stakeholders. Indeed, this study views that public accountability is pertinent, which appreciates the public’s right to get information about SIRC’s performance. A comprehensive corporate annual report should include performance reporting, indicating the importance of performance report not just financial performance but also non-financial performance. Particularly, for those organisations with not for profit oriented organisations like faith-based organisations, SIRC, zakat institutions, NGOs and even government agencies. Performance reporting studies in the context of not-for-profit organisations are at the infancy level. Despite the relevance of such report, similar non-profit organisations also could benefit from this study. Having a best reporting practice, non-financial performance aspects cannot be neglected so as to be seen being accountable to various stakeholders.

Pages 12-23

Author: Benazir Rahman and Nusrat Jahan

The word banking is a buzz word in this modern era. Our financial system largely depends on this sector. The concept of Non-Performing Loans (NPLs) or classified loans is one of the major barriers in the way of sustainability and growth of banking industry. The study basically focuses on the recent scenario of Non-Performing Investments (NPIs) in Islamic commercial banks of our country. The paper has shown the impact of credit worthiness of customers, bureaucratic issues, ethical perspective of employees, credit analysis process and so on over the trend of NPLs or NPIs. For the study a field survey has done for primary data collection. All of the 8 Islamic banks are in the sample frame. Principal Component Analysis has been used to analyze primary data. The regression and trend between NPIs and profit after tax has shown to reveal the real picture. 5 years secondary data has been used (2011- 2015). Different statistical tools like as mean values, standard deviation, F-test, regression analysis and so on have been used. The paper reveals some variables have highest influence over the NPIs of Islamic banks while others have least impact. The paper will be useful material for the finance scholars and bankers.

Pages 24-36

Author: Saanjaana Rahman, Sakib B. Amin, and Farhan Khan

Today, oil is considered as a dynamic factor that helps to sustain modern economic activities as well as wellbeing of a nation. To the best of our knowledge, no study has been done in the context of Bangladesh regarding the causal relationship between oil consumption and economic growth. Hence, the aim of this paper is to empirically analyze the long-run causal relationship between oil consumption and economic growth in Bangladesh by using annual data ranging from 1980 to 2015. Johansen’s Cointegration test results reveal that all variables are cointegrated and Granger Causality test results show that a unidirectional causality is running from oil consumption to economic growth, which goes hand to hand with the growth hypothesis. Thus, Bangladesh should adopt appropriate energy policy to curb down the constraints regarding oil consumption and oil products distribution in order to continue the stable economic growth and reach Middle-Income status by 2021.

Pages 37-51

Author: Rajib Mahmood and Sakib Bin Amin

Energy can be considered as the backbone of the economy and financial progress is the legs upon which it is standing. Bangladesh being one of the most overpopulated country in the world has managed to maintain an approximate 6% growth rate over the past decade. This has been made possible through a combined effort of providing sufficient resources to the people. This paper analyses the relationship between two of the most important variable in sustaining growth and development, financial development and energy consumption in Bangladesh. Lack of study to show the relationship between these sectors in Bangladesh had caused some restriction in understand the sectors congruously. Domestic credit provided to the finance sector and energy use has been used as the indicators for financial development and energy consumption respectively in this paper. Augmented Dickey Fuller (ADF) for unit root test have been orchestrated in this analysis. Furthermore, ARDL cointegration test have been performed. Finally, the granger causality has been applied in order to accomplish the outcomes of this paper. The results showed a bi-directional causality between the two variables taken into account. Financial development leads to an increase in the energy use and increasing energy consumption also led to increasing financial growth. However, the causality ran only in the short run and no relationship in the long run. This was the case for both direction of causality. Policy implication for Bangladesh at the conclusion of this research paper would be for the government to provide flexible economic policies to encourage further investments in both financial sector and energy sector.

Pages 52-60

Author: Bushra Humaira Sadaf and Sakib B. Amin

The causal association between foreign direct investment and current account deficit has gained interest of researchers and policy makers all around the world due to it’s consequences. While this paper examines the co integration and causal relationship between current account deficit and foreign direct investment in Bangladesh economy. For this research we have taken into account annual data starting from 1980 to 2015.Our results reveal that there is a unidirectional causality running from foreign direct investment to current account deficit in context of Bangladesh. That is there is causality between foreign direct investment and current account deficit running from foreign direct investment to current account deficit.

Pages 61-69

Author: Sakib B. Amin, Farhan Khan, Farhana Shahnaz and Maayesha Tasneem Chowdhury

As per the common narrative, Foreign Direct Investment (FDI) is a crucial source of capital investment. Most of the developing countries try to attract FDI for improving their domestic investment scenario. However, FDI inflow may be hampered due to high tax revenue in developing countries. To the best of our knowledge, no studies have been conducted to investigate the underlying relationship between FDI and tax revenue in Bangladesh. Thus, the core objective of this paper is to analyze the impact of tax revenue on FDI with the help of time series data ranging from 2001-2015. According to Johansen’s cointegration test result, concerned variables are cointegrated in the long run. By employing the Granger causality test, we have found that there is a unidirectional causality running from tax revenue to FDI in the long run. For long run estimation, we have used Dynamic Ordinary Least Square (DOLS) approach. According to the estimation result, the coefficient of tax revenue is negative indicating an inverse relation with FDI. These results may help policymakers to come up with proper policies to boost the economy of Bangladesh.

Pages 70-85

Author: Farhan Khan, Sakib B. Amin, and Saanjaana Rahman

Increased amount of fossil energy consumption in developing or emerging countries has created major concerns about global warming where renewable energy could be a good option which can assist to continue stable economic growth as well as can prevent environmental degradation. To the best of our knowledge, no studies have been conducted to investigate the relationship between renewable energy consumption and economic growth in five South Asian neighboring countries and so the aim of this paper is to investigate the relationship between the two concerned variables with the help of panel data ranging from 1981-2015. Johansen-Fisher cointegration test results show that in the long run variables are cointegrated and Dumitrescu-Hurlin panel causality test results show a bidirectional causality between renewable energy consumption and economic growth in the long runsupporting feedback hypothesis. According to Vector Error Correction Model, no causality has been found in short run and long run estimation results show coefficient of renewable energy consumption is inelastic but positive. As all of the selected countries are walking on the path of development in terms of socially and economically, policies should be taken in favor of promoting renewable energy consumption as well as development of renewable energy sector.

Pages 86-103

Author: Bushra Rahman and Sakib Bin Amin

Remittances are known to make a positive contribution to the overall GDP of an economy. In recent years, it has become a major source of financial inflow for Bangladesh. On the other hand, for a substantial growth of an economy, the right amount of energy consumption is required. According to our knowledge, energy consumption has not been associated with remittance in any previous empirical studies, although significant studies are found to exist with other macroeconomic variables. This is the first multivariate model investigating the relationship between remittances and energy consumption of Bangladesh over the period 1980-2015. The main objective of this study is to examine the cointegration and causality of the variables in both short run and long run. In order to conduct the study, a number of econometric techniques have been performed. The Augmented Dickey Fuller (ADF) Unit Root test shows that all the concerned variables are stationary at their first difference. Afterwards, the Johansen Cointegration method was performed which indicates that long run cointegration exists in most of the concerned variables. Then, applying the Granger Causality test, there seems to be a causal relationship among remittance, energy use and some of the other indicators. Lastly, the Vector Error Correction Model (VECM) test has been employed to find the changes in the short run. The study therefore points out that there exists a long run causal relationship between remittance and energy consumption in Bangladeshi industrialization, financial development and thus economic growth supporting the multiplier effect of inward remittance. Policy makers of the country should encourage higher remittance inflow for higher standards of living and development.

Pages 104-125

Author: Samiyah Haque and Sakib B. Amin

In a developing country like Bangladesh, FDI is considered to hold a significant value in the overall development process and industrial growth. Most firms which are financed through FDI export a significant proportion of their output, which leads to increase in net exports. Inflation affects the yield or return on capital on investment which, in turn, effects foreign investment. Hence macroeconomic stability in the form of inflation levels has direct effects on FDI and growth. However, the influence of trade and FDI on economic growth varies according to the state of development of countries. The question arises here is whether FDI and trade causes the changes in economic growth or vice-versa. This paper, therefore, analyzes the interrelationship and direction of causality between FDI, trade and growth of Bangladesh, taking macroeconomic stability into account. The study is conducted based on time series data from 1980 to 2015 for trade openness, FDI, inflation and GDP of Bangladesh, to carry out Augmented Dickey Fuller (ADF), Phillips-Perron (PP) and Granger Causality tests. Findings reveal that there is a unidirectional causality running from trade openness to GDP, trade openness to inflation and a bidirectional causal relationship between FDI and GDP in Bangladesh. However, no causal relationships between trade openness and FDI or inflation have been found. Since FDI and trade are two crucial factors that promote economic growth in Bangladesh based on the results of this study, policies that are favorable towards investment and trade sector are recommended.

Total Articles- 9

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