Household Debt and Economic Growth: The Role of Institutional Quality

Samad, Khairunnisa Abd; Daud, Siti Nurazira Mohd; Rusmita, Sylva Alif

doi:10.47836/pjssh.30.3.03

Cited by 4 publications

(5 citation statements)

References 58 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Following the modernised framework of the life cycle theories and permanent income hypothesis, Rubaszek and Serwa (2014) analysed the factors of household debt in dynamic panel sample. Following the model, recent study Samad et al (2022) has concluded that the increasing of household debt was affected from higher financial development, house prices, and lending interest rate in emerging economies. Meanwhile, unemployment rate and inflation are negatively associated with household debt.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Regarding this matter, economists have long debated the real threats of susceptibilities in the banking crisis which are mainly caused by the expansion of household credit. Consequently, this leads to the decline of economic growth; for example, the financial turmoil that occurred in the United States in 2008 (Jappelliet al, 2013;Mianet al, 2015;Samad et al, 2022). Albeit all these concerns, household debt continues to increase year after year, particularly in developing economies.…”

Section: Introductionmentioning

confidence: 99%

“…To date, several studies have shown the determinants on the rising household debt but Samad et al (2022) conducted extensive studies on the matter. However, Samad et al (2020) does not covers the factors of income inequality.…”

Section: Introductionmentioning

confidence: 99%

“…by integrating financial development in a panel form into the model modernised bySamad et al (2022) as follows:…”

mentioning

confidence: 99%

See 3 more Smart Citations

Can Income Inequality Affects Household Debt?

Samad¹,

Rahman²,

Sani³

et al. 2022

IJARBSS

View full text Add to dashboard Cite

The present study aims to evaluate the influence of income inequality on household debt by applying the dynamic GMM estimator to a database covering advanced and emerging countries over the period 1994 to 2019. The result shows that income inequality promotes the growth of household debt. Furthermore, higher house prices and financial development increase the household debt. Meanwhile, the economic growth, interest rate and unemployment have negative and significant effect on household debt. The finding of the study suggests the involved authorities formulate suitable policies and initiatives in order to monitor the increase in household debt. Indirectly, this measure can be useful to consider as an early warning signal for crises.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…by integrating financial development in a panel form into the model modernised bySamad et al (2022) as follows:…”

mentioning

confidence: 99%

See 2 more Smart Citations

Can Income Inequality Affects Household Debt?

Samad¹,

Rahman²,

Sani³

et al. 2022

IJARBSS

View full text Add to dashboard Cite

show abstract

“…High household debt will reduce economic growth. Although household debt reduces growth, households still play an important role as a means of increasing consumption and aggregate output (Samad et al, 2022). However, other macroeconomic factors, such as inflation rate and policy rate, have no significant relationship or effect on a bank's lending growth (Deniz, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Short-Run and Long-Run Relationship of Islamic Home Financing in Malaysia: Analysis on Islamic Banks

Idris

Bahari

Ahmad

2022

JEBIS

View full text Add to dashboard Cite

Islamic home financing is a service offered by Islamic banks according to the Islamic principle. In Malaysia, it has been offered since the early 1980s. The demand for Islamic home financing in Malaysia has increased over time. Therefore, this study would like to delve into the short-run and long-run relationship between the factors involved in Islamic home financing. Past studies highlighted the microeconomic factors and macroeconomic factors in Islamic banks that contribute to the growth of Islamic home financing in Malaysia. Thus, this study would include four factors comprised of deposits, liabilities, GDP, and government expenditure. Deposits and liabilities are categorized into microeconomic factors, whereas GDP and government expenditure are macroeconomic factors. The first objective is to identify the short-run and long-run relationship between the factors mentioned above on Islamic home financing in Malaysia. The second objective is to analyze the causality effects of the factors on Islamic home financing in Malaysia. The methodology comprises of quantitative research design. Data collection is based on secondary data collection, which was retrieved through documentation review and statistical highlights from Bank Negara Malaysia. The data comprise the first quarter of 2010 until the second quarter of 2021. Analysis data is conducted through an econometric approach within time series data which is the ARDL test and Granger causality test. The findings of this study would emphasize the importance of microeconomic factors and macroeconomic factors on Islamic home financing. It would encourage the supply and growth of Islamic home financing by Islamic banks in Malaysia in the future.

show abstract

Factors affecting the integrity of financial statements

Meiryani,

Fahlevi,

Robbani

et al. 2023

CGOBR

View full text Add to dashboard Cite

Financial statements can be a powerful way to disseminate information about a company’s finances or operations. Alchian’s (1950) evolutionary theory of economic change posits that market forces will naturally regulate businesses. This compiles and analyzes the empirical evidence to empirically explore, from an Indonesian perspective, how corporate governance, internal audit quality, and external pressures interact to affect the integrity of financial statements. Quantitative methods were used for this investigation. This information comes from a secondary source. The researchers here used a systematic sampling strategy called purposive sampling. This study used data from 96 samples collected over the course of three years. In this study, the researchers employed the panel data analysis technique with the help of the EViews software. Corporate governance is examined through the lenses of institutional ownership, managerial ownership, audit committees, and the proportion of independent commissioners. Financial statement integrity was found to be significantly affected by independent commissioners but not by institutional ownership, managerial ownership, or audit committees. The consistency of the financial statements is unaffected by either the quality of the internal audit or any external pressures. Managers are careful not to artificially inflate company profits in order to keep institutional investors happy, as they own a disproportionately large share of the company’s stock. This means that the stability of financial statements improves as institutional and managerial ownership grows

show abstract

Household Debt and Economic Growth: The Role of Institutional Quality

Cited by 4 publications

References 58 publications

Can Income Inequality Affects Household Debt?

Can Income Inequality Affects Household Debt?

Short-Run and Long-Run Relationship of Islamic Home Financing in Malaysia: Analysis on Islamic Banks

Factors affecting the integrity of financial statements

Contact Info

Product

Resources

About