No abstract

No abstract

Purpose The purpose of this paper is to investigate whether ownership structure affects earnings management in the banking industry of emerging markets. Design/methodology/approach The empirical study is conducted using a sample of 134 banks from 12 Middle Eastern and North African countries. Econometrically speaking, the study used a panel data regression analysis. Findings The authors found convincing evidence that banks with more concentrated ownership use discretionary loan loss provisions to manage their earnings. The authors also found that state and institutional owners encourage earnings management, while family owners reduce this practice. Practical implications The findings would be valuable for investors since they should take into account ownership structure in order to reach a better investment decision. Moreover, regulatory reforms in emerging markets should push for more transparency about ownership structure, high levels of supervision, and external audit quality. Originality/value This study presents international evidence on the prominent role of owners in earnings management in emerging markets with weak shareholder rights protection.

No abstract

This paper suggests analyzing the relationship between the regulatory and institutional indicators and the technical efficiency of commercial banks in 5 MENA countries during the period of 2003-2011. Firstly, we calculate the scores of efficiency with non parametric approach (DEA: Data Envelopment Analysis). Secondly, we use the Tobit regression to study the impact of the specific characteristics of banks, the indicators of governance, regulation and economic freedom indexes. The empirical results indicate evidence that a strong restriction can result in higher bank inefficiency. However, banks operating in conditions of economic freedom and governance are more likely to benefit from higher operating efficiency levels.