The impact of idiosyncratic risk of banking sector on oil, stock market, and fiscal indicators of Sultanate of Oman

Abstract

Idiosyncratic risk (IDR) is defined in general as the uncertainties of return to investors from an investment portfolio leading to diversification or hedging to mitigate and avoid such risks. This article aims to analyze the IDR of banking sector on oil (OI), stock market indicator (SMI), and fiscal indicator (FI) of Sultanate of Oman. This article examines the IDR of six banking sectors listed in Muscat Security Market (MSM), from 2009 to 2015. Financial modeling is used to determine the IDR of banking sector treated as an independent variable. This study uses three main critical dependent variables, OI, SMI, and FI. The ordinary least squares regression results depicted that there is a statistically significant impact on all of SMIs in MSM 30 share price and its market capitalization with direction of oil exports as OI being significant, as well as total expenditure as percentage of gross domestic product is significant as FI at different significant levels 1%, 5%, and 10%. The findings of the research indicated a weak investor's protection mechanism and strongly recommend heightened government focus on stressing the importance of having a formal system based on stability, safety, transparency, and supervision of the implementation of contracts so as to protect small investors, eventually leading to increased investments in stocks. Facilitation and encouragement to foreign direct investment will also lead to increase in the performance of fiscal management indicators and improve the export prices of oil, giving a boost to the economic and financial system of the nation.

Customer acceptance of mobile marketing in Jordan: An extended UTAUT2 model with trust and risk factors

“…Our investigation uncovered a significant relationship between PE and BI, which is supported by the studies conducted by the researchers. [21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36] Hence, the hypothesis, which is deemed empirically supported, verifies that in the context of Jordan, PE plays an important role in the BI to use mobile marketing.…”

“…However, in order to attain a multidimensional view of the research framework, it is essential that these factors be considered. For the most part, researchers used message factors, 27,28 innovation factors 13 and environmental factors 29 to explain customer behaviour towards mobile marketing. Dynamics, such as content personalization, location, interactivity, message space, design and selection of words, have been discussed thoroughly in message factors.…”

Investor behavior under the Covid-19 pandemic: the case of Indonesia

“…Fama (1970Fama ( , 1998, and Malkiel (2003) confirm that any information by firms directly affects the trade-off of risk and return in the capital market. Shubiri and Jamil (2018) demonstrate that the other information in the market, which is considered as risk that sourced from the firms besides systematic risk, is unsystematic risk or idiosyncratic risk. OuYang et al (2017) suggest that the information about stock reaction during crisis by media with good reputation serves as a valid signal to investors while evaluating the firm quality.…”

“…Based on this result, the findings are consistent with the signaling theory of Ross (1977), Fama (1970Fama ( , 1998, and Malkiel (2003), both for financial and non-financial sectors with two assumptions. The first follows Shubiri and Jamil (2018), where most investors require firms to improve their performances, the second follows Liu and Di Iorio (2016) that investors do not diversify their portfolios well enough due to lack of information. The third period is interesting, where two important triggers, such as the Covid-19 issue and government regulations, play the main role in the capital market.…”

Nonparametric Estimation of a Conditional Quantile Function in a Fixed Effects Panel Data Model

“…Quantile regression therefore has many useful applications in economics and finance. For example, in risk and financial management, researchers are more concerned about the uncertainty or the risk of an asset, which can be characterized by its left tail behavior (corresponding to the lower quantiles) (see Al ; Al ; Nguyen and Bhatti (2015); Al Rahahleh et al (2016); Bartram et al (2018); Al Shubiri and Jamil (2018) for the literature on idiosyncratic risk), and quantile regression can play an important role in this line of research.…”