Dynamic Linkages and Integration Among Five Emerging Brics Markets: Pre- And Post-Brics Period Analysis

Singh, Amit Kumar; Shrivastav, Rohit Kumar; MOHAPATRA, AMIYA KUMAR

doi:10.1142/s201049522250018x

Cited by 11 publications

(3 citation statements)

References 45 publications

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“…To the best of our knowledge, there is relatively little evidence on the empirical level of the relationship between country risk (e.g., political, economic, financial) and the banking sector’s credit risk in developed and developing markets in general and the BRICS region in particular. BRICS is a vital union of Brazil, Russia, India, China, and South Africa, and in 2003, Goldman Sachs described this bloc as one of the developing blocs of the world, contributing a substantially important part of world trade and economy in the future (Singh et al 2022 ). On the other hand, BRICS countries are also impacted by issues such as increased in inflation, the decline in the oil markets, weakening regimes in some countries, corruption charges, and the influence of the global financial turmoil (Syed and Tripathi 2020 ).…”

Section: Introductionmentioning

confidence: 99%

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

Saliba

Farmanesh²,

Athari

2023

Financ Innov

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This study aims to fill the gap in the literature by specifically investigating the impact of country risk on the credit risk of the banking sectors operating in Brazil, Russia, India, China, and South Africa (BRICS), emerging countries. More specifically, we explore whether the country-specific risks, namely financial, economic, and political risks significantly impact the BRICS banking sectors’ non-performing loans and also probe which risk has the most outstanding effect on credit risk. To do so, we perform panel data analysis using the quantile estimation approach covering the period 2004–2020. The empirical results reveal that the country risk significantly leads to increasing the banking sector’s credit risk and this effect is prominent in the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.105, Q.50 = − 0.131, Q.75 = − 0.153, Q.95 = − 0.175). Furthermore, the results underscore that an emerging country’s political, economic, and financial instabilities are strongly associated with increasing the banking sector’s credit risk and a rise in political risk in particular has the most positive prominent impact on the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.122, Q.50 = − 0.141, Q.75 = − 0.163, Q.95 = − 0.172). Moreover, the results suggest that, in addition to the banking sector-specific determinants, credit risk is significantly impacted by the financial market development, lending interest rate, and global risk. The results are robust and have significant policy suggestions for many policymakers, bank executives, researchers, and analysts.

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Section: Introductionmentioning

confidence: 99%

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

Saliba

Farmanesh²,

Athari

2023

Financ Innov

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“…BRICS contains the Brazil, Russia, India, China, and South Africa economies, which are five enormous and prominent developing countries of the world. This bloc could contribute enormously to the global economy; however, rising inflation, corruption, and weakening judicial systems are inevitable concerns in some BRICS countries [30,31]. Based on the World Bank DataBank (2004-2021), the banking sector operating in BRICS countries have some specific characteristics.…”

Section: Introductionmentioning

confidence: 99%

The Role of Country Governance in Achieving the Banking Sector’s Sustainability in Vulnerable Environments: New Insight from Emerging Economies

et al. 2023

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Extant literature suggests that the banking sector’s sustainability is achievable by minimizing the risk factors, in particular, credit risk (CR). Despite prior studies, there are fewer attempts to considerably probe the role of country governance settings in managing CR and ultimately achieving sustainability. Therefore, this study aims to test this nexus for the banking sector operating in BRICS developing economies. Specifically, this research attempts to explore whether country governance has a moderator role between CR and the exposure of environments to risk factors. To achieve these objectives, we conduct panel data analysis using the quantile (QR) and fixed effects (FE) estimation methods. The results show that increasing liquidity, profitability, capital requirements, and income diversification lead to decreasing CR, whereas increasing inefficiency causes an increase in CR. In addition, the results reveal that a country’s increasing vulnerability to a specific financial risk index (FRI), economic risk index (ERI), and political risk index (PRI); developing capital markets; increasing lending interest rates; and weakening country governance quality is significantly linked to increasing CR. Remarkably, the results underscore that country governance has a significant moderator role, and by enhancing the quality of country governance, the impact of country-specific FRI, ERI, and PRI on CR could be attenuated.

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“…Some of these expectations come from the company's owner; customers; the government; suppliers; social and environmental groups; media; creditors; as well as other stakeholders (Hoang, 2018). Organizations must also make long-term judgements in order to make key organisational choices in the face of chaotic market conditions (Camilleri, 2015;Singh et al, 2022). The uncertain economic environment and higher stakeholder expectations have necessitated proactive organisations to work on their business plans and performance reports to meet the requirements of their shareholders (Elgergeni et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Impact of CSR Committee on ESG Reporting Quality: Evidence from India

Matta¹,

Purohit²,

Mohanty³

2022

OJC

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A corporate social responsibility (CSR) committee plays a vital role in supervising, managing and controlling Environmental, Social, and Governance (ESG) disclosure practices of an organization.Therefore, this paper examines the link between the CSR attributes and ESG reporting quality. Using agency and stakeholders' theory and applying regression analysis on the sample of 225 Indian firms listed on stock exchanges in 2021, the results showed that the CSR committees' attributes such as independence, frequency of meetings, and size have positive and significant influence on the ESG reporting quality by companies. However, the financial expertise of the members of CSR committee does not influence the ESG reporting quality. This research contributes to the current literature and supports the relevance of management control systems in enhancing ESG reporting quality. This study is also valuable for regulators and policy makers to encourage the formation of CSR committees with larger memberships and greater proportions of independent members.

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Dynamic Linkages and Integration Among Five Emerging Brics Markets: Pre- And Post-Brics Period Analysis

Cited by 11 publications

References 45 publications

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

The Role of Country Governance in Achieving the Banking Sector’s Sustainability in Vulnerable Environments: New Insight from Emerging Economies

Impact of CSR Committee on ESG Reporting Quality: Evidence from India

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