Co-Movement between Macroeconomic Variables and Capital Flight

Hunjra, Ahmed Imran; Mehmood, Hasnain; Bakari, Haroon

doi:10.18488/journal.aefr.2018.89.1185.1195

Cited by 3 publications

(3 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Thus, disclosure quality can be used as one of the most important measure of good corporate governance of a firm (Mitton, 2002 andColes et. al, 2002;Imran & Bakari 2018).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 98%

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Kabir¹,

Sobhani²,

Omar³

et al. 2019

IJFR

View full text Add to dashboard Cite

Corporate governance provides a fundamental framework to oversee corporate conduct and ensures transparency of institutions like banks. In case of Islamic banks, it adds additional importance as the profit sharing (with the depositors) system enhances the chance of agency problem for such institutions. Again, risks are inherent in institutions like Islamic banks, which necessitate the investors to get proper information about the risk encountered by the banks in which they invest. Thus, corporate governance and risk disclosures bear utmost importance. Since Malaysian banking industry has already experienced a favorable growth of Islamic banking and Bangladesh is observing a rapid growth of popularity of Islamic banking, a comparative study has been undertaken between Malaysian and Bangladeshi Islamic banks regarding corporate governance and risk disclosures in annual reports. Content analysis technique has been applied to facilitate the comparison. Both quantity and quality of risk reporting of the sample companies have been evaluated. A corporate governance disclosure index has been developed by following the guidelines provided by Bangladesh Security and Exchange Commission (BSEC) and the principles laid down in the ‘Guidelines on Corporate Governance for Licensed Islamic Banks in Malaysia’ to explore and compare the degree of good corporate governance and relevant disclosures in the annual reports. It is hypothesized that corporate governance and risk disclosure will vary between Malaysian and Bangladeshi Islamic Banks. It is also argued that the corporate risk disclosures will be positively associated with the quality of the ﬁrm’s corporate governance mechanisms. Results are generally supportive of hypotheses. At the end, implications for theory and practices are discussed in the study.

show abstract

“…Thus, disclosure quality can be used as one of the most important measure of good corporate governance of a firm (Mitton, 2002 andColes et. al, 2002;Imran & Bakari 2018).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 98%

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Kabir¹,

Sobhani²,

Omar³

et al. 2019

IJFR

View full text Add to dashboard Cite

show abstract

“…According to Bayar and Gavriletea (2018) the expansion of the financial sector accelerates cross-country commerce, wealth creation, and accumulation of capital in an economy. Meanwhile, Hunjra et al (2018) suggest that financial-sector expansion lowers asymmetric information costs and improves resource mobilization, hence enhancing economic growth.…”

Section: Hypothesis 1 (H1) Institutional Quality Positively Affects F...mentioning

confidence: 99%

Impact of Financial Innovation and Institutional Quality on Financial Development in Emerging Markets

Alawi

Abbassi

Saqib

et al. 2022

JRFM

View full text Add to dashboard Cite

Financial innovation and institutional quality play a key role in financial development. This study investigates the impact of financial innovation and institutional quality on financial development in an emerging markets setting. We used the sample of 17 emerging markets based on the availability of data from the period 1990–2020. Data were extracted from the World Development Indicator database. In this study, panel unit root, fully modified ordinary least squares and Pedroni Integration tests were applied to analyze the data. We find that financial innovation and institutional quality are significantly and positively related to financial development. Better financial innovation increases financial development, whereas low institutional quality in an emerging market can deteriorate financial development.

show abstract

“…Macroeconomic variables proved to be important In the long run for the capital flight hence are the main players (Hunjra, Mehmood, & Bakari, 2018) and (Imran, Bakari, & Review, 2018). Economists have devoted much greater attention to capital flight than the financial analyst even though direct linkage has been found in the capital flight and financial performance of any country (Edwards, 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Campital Flight and its Impact on Economic Performance: A Study of Developming Economies

Nasreen

Raheman

Mirza

2021

NRJSS

View full text Add to dashboard Cite

Capital flight imposes a great danger to the developing economies by lowering their economic activity, devaluing the currency, and hindering economic growth. This paper contributes to the literature by investigating the determinants of capital flight of developing economies. Determinants are studied as indices, and these indices are calculated by using the Arithmetic Mean approach. There is a two-steps model; in the first part, determinants are discussed, and in the second part, capital flight is used as an independent variable, and its impact on economic performance is measured in 59 Developing Economies. GMM (Generalized Method of Moments) is used for the determinants of capital flight, and panel GLS (Generalized least square) is used to check the impact of capital flight on economic performance. Macroeconomic variables (external debt, inflation, exports, interest rate, and exchange rate) are also part of the study with four indices as determinants (Country Risk Index, Economic Freedom Index, financial inclusion index, and Governance institution and corruption index). Results suggest that all included indices were significant along with all macroeconomic variables. Country risk, external debt, and exports have a negative coefficient, while others have a positive coefficient value. Capital investment, foreign direct investment, and Gross domestic product were used as proxies of economic performance. Results of GLS have shown there is a significant and negative impact of capital flight on economic performance. Capital flight is measured by using the residual methodology.

show abstract

Co-Movement between Macroeconomic Variables and Capital Flight

Cited by 3 publications

References 29 publications

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Impact of Financial Innovation and Institutional Quality on Financial Development in Emerging Markets

Determinants of Campital Flight and its Impact on Economic Performance: A Study of Developming Economies

Contact Info

Product

Resources

About