Regulation, Supervision and Social and Financial Efficiency of Microfinance Institutions in ASEAN-5 Countries

Zainal, Nurazilah; Kamarudin, Fakarudin; Law, Siong Hook; Bakri, Mohammed Hariri; Sufian, Fadzlan; Nassir, Annuar

doi:10.22452/mjes.vol57no2.5

Cited by 2 publications

(2 citation statements)

References 46 publications

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“…The application of an ‘efficient frontier’ is a more rigorous measurement of efficiency than financial ratios because statistical techniques remove price effects and other exogenous market factors ( Emrouznejad and Yang, 2018 ). Exogeneity may violate conventional linear regression assumptions ( Zainal et al, 2020 ), and thus significant progress has been made in quantifying the maximum output for given a set of inputs 8 since Cobb and Douglas (1928) 's seminal work. As a result, best practice studies are generally divided between parametric and non-parametric approaches.…”

Section: Related Research and Hypotheses Developmentmentioning

confidence: 99%

The influence of earnings management on bank efficiency: the case of frontier markets

Martens

Yapa

Safari

et al. 2021

Heliyon

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Frontier market banks fill key funding gaps in the markets they serve, resulting in increased evaluation (a positive) and earnings management (EM) (a negative). Examination of a large sample of banks in 22 frontier market countries from 2001 to 2018 reveals a downward trend in efficiency, indicating that loan quality issues persist despite increasing economic growth in the respective countries. Using stochastic frontier analysis to quantify efficiency and random effects and truncated regression to investigate the EM-efficiency relation, this study demonstrates that efficiency is negatively associated with EM. Furthermore, there was no clear relationship between bank size and efficiency, which counters economic efficiency theory and implies that frontier market banks absorb higher non-performing loan costs. The findings herein support prospect theory by demonstrating that managers engage in risk-seeking behaviour while making risk-averse decisions. Overall, the study's implications suggest that banks employ alternative loan provision practices to optimise resource allocation and, by extension, performance.

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Section: Related Research and Hypotheses Developmentmentioning

confidence: 99%

The influence of earnings management on bank efficiency: the case of frontier markets

Martens

Yapa

Safari

et al. 2021

Heliyon

View full text Add to dashboard Cite

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“…The degree of freedom increases thereby, and the efficiency of the econometric estimators improves. Thirdly, unlike cross-sectional data and time-series data, panel data could provide good estimates of aggregate dynamic behavior without the need for a long time series (Lee et al,2019); (Zainal, et al, 2020).…”

Section: Empirical Modelmentioning

confidence: 99%

Is Governance Effective in Economic Growth? Evidence From Msci Countries

Almohammed¹,

Ekşi̇²

2021

Hitit Sosyal Bilimler Dergisi

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The main objective of the research is to study the relationship between governance and economic development in emerging economies. We used MSCI countries as a sample due to their increasing importance. Our research is based on the World Bank data for Worldwide Governance Indicators (WGI) of observed countries from 2002 to 2018. The Principal Component Analysis (PCA) and Generalized Method of Moments (GMM) were applied to identify the relationship between the GDP index as a dependent variable and the WGI as an independent variable and other control variables. The experimental results showed that there was no significant relationship between governance and economic development. On the basis of these findings, it is emphasized that the countries in the sample should give more importance to governance.

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Regulation, Supervision and Social and Financial Efficiency of Microfinance Institutions in ASEAN-5 Countries

Cited by 2 publications

References 46 publications

The influence of earnings management on bank efficiency: the case of frontier markets

The influence of earnings management on bank efficiency: the case of frontier markets

Is Governance Effective in Economic Growth? Evidence From Msci Countries

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