The Impact of Financial Technology on Banking Performance: A study on Foreign Banks in UAE

Abstract

Purpose: Fintech includes electronic payment services such as virtual currencies, funding, financial advisors and bots. The bank has developed a system dedicated to supporting Fintech technologies and supporting small businesses to enable them to serve the community, develop the national economy, and create new jobs and investments. The project objective is to test the relationship between FinTech and Banking performance in UAE.Methodology/ Design/ Approach: This research used a quantitative method. The population of this research was banking who are currently in UAE with a sample size of 19 banks. The impact of Fintech on banking performance in UAE is investigated in this research. Findings:The project results show a significant and positive relationship between the Fintech was positively significant about ROA. On the other hand, the finding showed that Fintech was positively significant about ROE. This finding indicate that Fintech has positive and significant effect on bank performance (ROA, ROE).Practical Implications: As the information contents of annual reports improve the usage of Financial Technology services, the implications of this study result in better-informed judgments for investors. This presents an opportunity for inventors and innovators to emerge because banks will want to increase the performance of the bank, so they will use financial technology for their services. It will also give customers the opportunity which bank is better to open an account in it Banks will be encouraged to use financial technology, because the more it is used, the more customers will turn to the bank, and the bank's performance and profits will increase.Originality/value: This study is one of the first to be conducted in the UAE. It has brought to the body of knowledge a new conversation about Fintech and its relevance to banking performance. Furthermore, undertaking such accounting research provides new insight about Fintech between developed and emerging economies, such as UAE.

The growth potential of Palestinian family businesses: immigrant versus home-country entrepreneurship

“…We were surprised to discover that, at least within our population, succession planning did not statistically impact the growth potential of Palestinian family firms (H2 was rejected). This result contradicts a number of previous studies (Ismail and Mahfodz, 2009;Poza, 2010;Lussier and Sonfield, 2012;Rosenbusch et al, 2013;Basco, 2017;Almashhadani and Almashhadani, 2022;Tetteh et al, 2022).…”

“…Although we did find previous studies that considered the performance opportunities and challenges of Palestinian family-owned companies (Abuznaid, 2014; Sami Sultan, 2014; Sultan et al , 2017), we did not locate studies that considered how EO, SP, growth and innovation worked together nor how these factors might be affected by the geographic dispersal of the associated business population. As geographic location is and will continue to moderate firm performance, we use this study to address research gaps associated with the various ways EO, SP and firm growth performance may be mediated by product and service innovation (Lussier and Sonfield, 2012; Basco, 2017; Almashhadani and Almashhadani, 2022; Tetteh et al , 2022) among a business population that is almost evenly divided between the USA and Palestine.…”

Family involvement in ownership and governance and internal auditing quality

“…For example, prior studies show that accrual-based earnings management is negatively associated with the generational stage of family business (Stockmans et al , 2010; Borralho et al , 2020), while real earnings management is negatively linked to family involvement in governance and management (Duréndez and Madrid-Guijarro, 2018) but it is positively associated with the family name (Calabrò et al , 2022; Sundkvist and Stenheim, 2022). In spite of the relevance of internal auditing activities for companies’ strategy and operations (Prawitt et al , 2009; Abbott et al , 2016; Gros et al , 2017; Almashhadani and Almashhadani, 2022), prior research has mainly focused on the quality of internal control, and little is known about the relationship between family-related antecedents and IAQ. For example, Bardhan et al (2015) argue that the quality of internal control in family businesses is lower than that in non-family businesses, possibly because family owners invest less in internal control mechanisms because of their active involvement in managing the business.…”

The role of risk management committee on the relationship between corporate carbon emission disclosure and capital structure

“…This is likely because environmentally‐conscious companies actively strive to reduce their carbon emissions and are more inclined to seek funding from sources like green bonds or sustainable debt (eco‐oriented financial instruments) (Katmon et al, 2019; Konadu et al, 2022; Li et al, 2018). Conversely, companies that are less active in disclosing carbon emissions may have a more traditional or conventional financial structure (Bui et al, 2020; Chen et al, 2010; Cheng et al, 2019), with funding primarily sourced from banks or common stocks (Almashhadani & Almashhadani, 2022; Rimin et al, 2020; Lv et al, 2021). Certain companies may also implement robust risk monitoring practices to evaluate potential risks when choosing funding sources (Jia & Bradbury, 2020; Jorion, 2000; Ojo, 2010).…”

“…Furthermore, previous studies elucidate the association between director tenure (TENURE) and a company's capital structure (Hahn et al, 2015; Harjoto et al, 2015). Some studies indicate that companies with longer‐tenured boards of directors tend to maintain more conservative capital structures (Almashhadani & Almashhadani, 2022; Jung et al, 2018; Lee et al, 2017). This implies a greater reliance on equity capital and less on debt financing.…”