This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system on the relationship between public spending efficiency and the economic growth. Using Generalized Method of Moments estimation based on two-step estimate, we found (1) government spending efficiency promotes economic growth, (2) the VAT system is found to enhance the effect of an efficient government spending on the economic growth and (3) the moderating role of the VAT system is further enhanced by quality of democracy and legislative strength of the government.
This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theory and resource dependence theory. The results of panel regression indicate that the appointment of a CRO as an executive board member reduces credit risk, implying that the appointment of a CRO as a risk expert in IBs enhances the management of risk and monitoring of risk-taking activities. Further, larger board is likely to reduce insolvency risk when an SSB has higher percentage of members with supervisory Shariah experience. Next, this study observes that larger SSB size and a higher percentage of members with Shariah supervision experience moderate the relationship between the CRO and insolvency risk. Overall, this study highlights the important role of board size, CRO and SSB in the risk-taking of Islamic banks, which have received little attention in the extant literature. ABSTRAK Tujuan kajian ini adalah untuk mengkaji kesan saiz lembaga pengarah (LP) dan Ketua Pegawai Risiko (KPR) ke atas pengambilan risiko di 24 bank-bank Islam di Malaysia, Indonesia dan Brunei dari tahun 2010 hingga 2015 dan sama ada kesan tersebut disederhanakan oleh Lembaga Penyeliaan Syariah (LPS). Kaedah ini mengintegrasikan hujah-hujah teori agensi dengan teori pergantungan sumber. Hasil analisa regresi data berpanel menunjukkan pelantikan KPR sebagai ahli eksetutif mengurangkan risiko kredit. Hasil ini menyiratkan yang pelantikan KPR sebagai pakar risiko di bank-bank Islam telah meningkatkan pengurusan dan pemantauan risiko di dalam aktivit-aktivitii pengambilan risiko. Selanjutnya, saiz LP yang lebih besar boleh mengurangkan risiko insolvensi dengan syarat peratus keanggotaan LPS dari kalangan ahli-ahli yang berpengalaman di dalam penyeliaan Syariah adalah tinggi. Seterusnya, kajian ini mendapati saiz LPS yang besar dan peratusan yang tinggi ahli-ahli LPS mempunyai pengalaman di dalam penyeliaan Syariah menyederhanakan hubungan di antara KPR dan risiko insolvensi. Keseluruhannya, kajian ini menyorotkan peranan penting saiz LP, KPR dan LPS di dalam aktiviti-aktiviti pengambilan risiko di bank-bank Islam. Selama ini kajian-kajian sedia ada hanya memberikan sedikit perhatian terhadap perkara ini.
The shift from financial repression to financial liberalization causes cross-border capital flows and brought dramatic changes to the financial sector. In this regard, the financial sectors, acts as financial intermediary which plays a significant role in mobilizing funds between surplus and deficit units. Furthermore, financial liberalization creates higher competition and could have negative impact towards financial stability due to excessive risk taking. This study’s research model focuses on examining the impact of competition on the relationship between financial liberalization and financial stability. This model was analyzed by using the PLS-SEM and it was found that the measurement model explains 19% of the substantial amount of variance in financial stability. Based on this finding, this study will theoretically contribute in extending the competition stability view and competition fragility view as determiners of financial stability. Based on the empirical results, it can be concluded that in the presence of competition, financial liberalization has a significant effect on financial stability
This paper examines the impact of VAT on economic efficiency, which while regarded as distortionary remains inevitable for economic development. Using data from 115 countries from 1984 to 2014, this research further investigates the moderating role of country governance on the link between VAT and economic efficiency. The results suggest that the extent to which country governance mitigates the effect of VAT on economic efficiency is contingent upon the way the country groups prioritize the development of each institutional factor. We find that high corporate tax countries benefit more from higher quality country governance. These findings confirm the role of country governance in better enforcement of tax policy to create less detrimental effects for economic growth. Therefore, better country governance makes taxation more affordable in high corporate tax countries.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.