The quality of institutions and financial development in mena countries: An empirical investigation

Gazdar, Kaouthar; Cherif, Mondher

doi:10.22495/rgcv4i4c1art1

Cited by 21 publications

(18 citation statements)

References 44 publications

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“…Gazdar and Cherif's (2015) latest results supported that institutional quality played an important role in the MENA's financial system. However, this role is more relevant for the banking sector than for stock market development.…”

Section: Introductionmentioning

confidence: 70%

Institutions and the finance–growth nexus: Empirical evidence from MENA countries

Gazdar

Cherif

2015

Borsa Istanbul Review

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This paper investigates the effect of institutional quality on the financeegrowth nexus. To this end, an empirical model with linear interaction between financial development and institutional quality is estimated. Our main findings show that, while most indicators of financial development have a significantly negative effect on economic growth, the sign of the coefficients of interaction variables are significantly positive. This provides strong evidence that institutional quality mitigates the negative effect of financial development on economic growth. Looking to the subcomponents of our institutional index, our findings show a development of the banking sector in a country with an important score in Law and Order, Bureaucracy and Investment Profile facilitate growth. Also, countries, with an important score of investment profile, can benefit from stock market development in terms of economic growth. These results suggest that, in order to benefit from financial development, financial systems in MENA countries must be embedded within a sound institutional framework.

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Section: Introductionmentioning

confidence: 70%

Institutions and the finance–growth nexus: Empirical evidence from MENA countries

Gazdar

Cherif

2015

Borsa Istanbul Review

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“…80.3% of the auditors sampled have reported that they have encountered financial frauds during external auditing practices. The percentage of the sampled auditors that have reported financial statement frauds during external auditing is almost equal to the number of the auditors complying with ISA 240 legislatives (78.8%) hence an indication that the use of ISA 240 tool can help to identify the fraud cases (Gazdar, & Cherif, 2014). Moreover, the number of fraud cases identified and reported as a result of compliance with the ISA 240 legislation is an enough proof that the Jordan auditors are committed to apply ISA 240 in external auditing practices (Ghazangs, 2014).…”

Section: Discussionmentioning

confidence: 97%

The Extent of Jordanian External Auditor Commitment in Applying ISA ″240″ and its Effect in Reducing Fraud in Financial Statement

Ahmad¹

2019

IJBSS

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The purpose of this study is to determine the extent of Jordanian external auditors' commitment in the application of the ISA ″240″ and its effect in reducing fraud in financial statement. As such, the report focuses on application of ISA 240 provision in carrying out external auditing, the frequency of deployment of ISA 240 principles among the Jordanian external auditors and the number of financial fraud cases in Jordan that have been detected using ISA 240 tool for external auditing. The study has deployed cross-sectional survey to collect data among 21 sampled auditors in Jordan using a semi-structured questionnaire. The findings has indicated that 80.3% of the sampled auditors complies with ISA 240 regulation, 58.3% of the sampled auditors have faced various challenges with ISA 240provisions, 52.38% of the sampled auditors have been able to identify financial statement frauds using the ISA 240 provision, 80.3% cases of financial fraud cases identified have been reported as per ISA 240regulations and finally 70.4% of the sampled auditors have rated ISA 240 legislation as the best tool to guide auditors in identifying and reporting financial frauds .

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“…Finally, we select control of corruption, rule of law, regulatory quality, voice and accountability, political stability and government effectiveness from the World Governance Indicators database. We expect that the ratio of bank credit is higher in countries with better quality of institutions (see Huang, 2005;Baltagi et al, 2009;Law and Azman-Saini, 2012;Gazdar and Cherif, 2014). 4 While better information transparency and independence lead to a stronger banking sector, bank development might improve monetary independence and transparency of economic policies.…”

Section: Datamentioning

confidence: 99%

Threefold Policies for Bank Development: Do Independence and Transparency Matter?

Trabelsi¹

2018

SSRN Journal

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A well-developed banking sector is crucial to achieve a sustained economic growth. To attain this goal, both central banks and governments have embraced operational and institutional arrangements. In this paper, we offer an empirical lookup on how central bank independence and transparency of macroprudential and fiscal policies are linked to bank development. We also look at the mechanisms (channels) through which the respective effects are transmitted to bank development. Drawing upon a panel dataset of emerging and developing economies over the period 1998-2014, we find that both macroprudential transparency and fiscal transparency are positively related to the share of credit granted by banks to the private sector, implying that more transparent policies enhance bank development. A higher degree of central bank independence, however, does not affect the ratio of bank credit to GDP but its matters for the ratio of liquid assets.

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The quality of institutions and financial development in mena countries: An empirical investigation

Cited by 21 publications

References 44 publications

Institutions and the finance–growth nexus: Empirical evidence from MENA countries

Institutions and the finance–growth nexus: Empirical evidence from MENA countries

The Extent of Jordanian External Auditor Commitment in Applying ISA ″240″ and its Effect in Reducing Fraud in Financial Statement

Threefold Policies for Bank Development: Do Independence and Transparency Matter?

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