Environmental risk and foreign direct investment: the role of financial deepening, access and efficiency

Yiadom, Eric Boachie; Mensah, Lord; Bokpin, Godfred A.

doi:10.1108/sampj-12-2021-0552

Cited by 18 publications

(15 citation statements)

References 39 publications

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“…The test assumes that the errors in the model are independently and identically distributed, and checks whether the variance of the errors is related to the values of the dependent variables. The test is crucial in determining the appropriate estimator to use when analyzing panel data (Yiadom et al. , 2023).…”

Section: Resultsmentioning

confidence: 99%

Political change, elections, and stock market indicators: a generalized method of moment analysis

Yiadom,

Tay,

Sefe

et al. 2023

JHASS

Self Cite

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PurposeThe performance of financial markets is significantly influenced by the political environment during general elections. This study investigates the effect of general elections on stock market performance in selected African markets.Design/methodology/approachPrior studies have been inconsistent in determining whether electioneering events negatively or positively influence stock market performance. The study utilized panel data set with annual observations from 1990 to 2020. The generalized method of moments (GMM) is employed to investigate the effect of electioneering and change in government on key stock market performance indicators, including stock market capitalization, stock market turnover ratio and the value of stock traded.FindingsThe study finds that electioneering activities generally have a positive impact on the performance of the stock market, whereas a change in government has a negative impact. As a result, the study recommends that stakeholders of the stock market remain vigilant and actively monitor electioneering events to devise and implement effective policies aimed at mitigating political risks during general elections. By adopting these measures, investor confidence can be significantly enhanced, fostering a more robust and secure investment environment.Originality/valueThe study investigates a neglected section of the literature by highlighting not only the effect of elections on stock market indicators but also possible change in government during elections.

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Section: Resultsmentioning

confidence: 99%

Political change, elections, and stock market indicators: a generalized method of moment analysis

Yiadom,

Tay,

Sefe

et al. 2023

JHASS

Self Cite

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show abstract

“…The indicators chosen for assessing the development of the bank market, debt market, stock market and the overall financial sector are grounded in the existing literature, particularly the works of Yiadom et al (2023a), Ozili (2023), Yiadom et al (2022) and Sahay et al (2015).…”

Section: Methodsmentioning

confidence: 99%

“…Yiadom et al (2023a) categorized essential financial development components into three dimensions: financial depth, access and efficiency. Building on this foundation, we used a set of indicators to measure these dimensions within each market.…”

Section: Methodsmentioning

confidence: 99%

“…The literature also considers the global perspective. Yiadom et al (2023a) explore the role of financial deepening, access and efficiency in influencing the relationship between environmental risk and FDI. Similarly, Ali et al (2022) and Mensah et al (2018) assert that institutional quality has favorable outcomes on macroeconomic developments, including financial inclusion and economic development.…”

Section: Theoretical Relevance Empirical Evidence and Hypotheses Form...mentioning

confidence: 99%

Section: Theoretical Relevance Empirical Evidence and Hypotheses Form...mentioning

confidence: 99%

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Financial inclusion: a catalyst for financial system development in emerging and frontier markets

Ofosu-Mensah Ababio,

Yiadom,

Sarpong-Kumankoma

et al. 2023

JFEP

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Purpose This study aims to examine the relationship between financial inclusion and financial system development in emerging and frontier markets. Design/methodology/approach Using data across 35 countries over 19 years (2004–2022), the improved GMM estimation technique reveals that financial inclusion significantly contributes to the development of financial systems. Findings The study uses a segmented approach, dividing financial development indices into subindices: financial depth, financial access and financial efficiency. Indicators of bank financial inclusion show a positive and highly significant relationship with bank depth and access but a negative relationship with bank efficiency. Similarly, indicators of the debt market and stock market financial inclusion demonstrate positive relationships with market depth and access but negative relationships with debt and stock market efficiency. The study further examines composite indexes of financial inclusion for bank, debt and stock market segments, finding strong and highly significant relationships with market development. These results underscore the importance of promoting financial inclusion across all segments of the financial sector to achieve an inclusive financial system. Practical implications The implications of this research highlight the need for policymakers and practitioners to implement policies and regulations that enhance financial inclusion and foster the development of robust financial systems. By extending access to mainstream financial instruments and services, financial institutions can stimulate financial intermediation and support, thereby accelerating the development of the banking, debt and stock markets. Originality/value The study is robust to the use of several indicators of financial inclusion and financial development, and it forms part of the early studies that examine the close relationship between the two variables.

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Financial development and sustainable development: A review of literature

Akhtar,

Rashid

2024

Sustainable Development

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In the contemporary world, the sustainability of the economic system and its related issues are of major concern for both policy makers and practitioners. The financial sector's role in this context has gained significant attention over the past decades. Although theoretical studies are on the rise, few scholars consolidate both theory and practice. This study addresses this gap through comprehensive bibliometric analysis, mapping the research landscape in the finance‐sustainability field, and encompassing both optimistic and skeptical perspectives. It reviews and synthesizes key theoretical and empirical literature focusing on most recent studies. Specifically, it emphasizes broader aspects of financial development—depth, access, efficiency, and stability—in critically analyzing the economic, environmental, and social pillars of sustainable development, which are distinct yet highly interconnected. It further provides a detailed analysis of sustainable development theories, highlighting their shortcomings and future prospects. Particularly, this study identifies different dimensions, significant factors, and important indicators of sustainability which are vital for achieving and understanding long‐term sustainable development. Some practical implications are also discussed.

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Environmental risk and foreign direct investment: the role of financial deepening, access and efficiency

Cited by 18 publications

References 39 publications

Political change, elections, and stock market indicators: a generalized method of moment analysis

Political change, elections, and stock market indicators: a generalized method of moment analysis

Financial inclusion: a catalyst for financial system development in emerging and frontier markets

Financial development and sustainable development: A review of literature

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