• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.95-105
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• 2021

A prerequisite of a sound financial system is effective channeling of financial resources to efficient users; hence maximizing economic and societal welfare. To that end, the prevalence of bad loans in banks in emerging economies is a major policy concern. In an attempt to add to the growing body of literature explaining the interrelationship between macroeconomic and firm-specific factors, and non-performing loans (NPL), this paper examines data from 24 scheduled commercial banks in Bangladesh from 2008 to 2019. Macroeconomic factors as well as firm-specific factors related to profitability, capital strength, and efficiency are considered. Panel data regression analysis is performed to estimate pooled OLS, fixed effects, and random effects models. Following the necessary testing, it was found that the fixed effects model with robust standard error is appropriate. Results show that return on assets and inflation have a negative influence on NPL, but GDP growth has a favorable impact. The paper concludes by asserting that the evidence supports similar findings from studies both in Bangladesh and elsewhere and it is noted that a combination of these macroeconomic and firm-specific factors explains only a small portion of the total variation in NPL.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.11-17
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• 2021

This study aims to know the contribution of external debt to Indonesia's economic growth. The data used a source from the Central Bank of Indonesia from 2011 to 2020. This empirical study uses a quantitative approach with Error Correction Model as the regression method. Government expenditure, government revenue, export, import, inflation, and exchange rate are control variables. The result of the descriptive statistic shows economic growth in Indonesia increased gradually from 2011 to 2020. The increase in economic growth occurred regardless of the contribution of external debt. It does, however, inform the public that Indonesia's economic system has seen successful investments. The result of the study is classified into long-term and short-term. External debt contributes to growth in the long term and has a significant impact. The study's findings will give Indonesia optimism that it can manage external debt as a source of domestic investment. This research may also persuade Indonesia to maintain its economic potency in the future. In the future, this research can be perfected, by adding a threshold level on the amount of Indonesia's external debt.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.327-339
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• 2021

This study examines the impact of bank restructuring on the financial performance of commercial banks in Vietnam. The data for this study was obtained from the audited financial statements of 30 Vietnamese commercial banks from 2007 to 2019. Multiple regression analysis was used for investigation. Financial performance, as evaluated by ROAA, ROEA, and NIM, is the dependent variable. Financial restructuring, ownership restructuring, and operational restructuring are the independent variables. Pooled least squares (Pooled OLS), fixed effects model (FEM), random effects model (REM), and system generalized moment regression model (System GMM) are the estimate methods used to increase the accuracy of the regression coefficient. The research results show that the variables of financial restructuring activities such as government intervention and the ratio of equity to total assets; variables of ownership restructuring such as capital adequacy ratio, privatization of state-owned commercial banks, mergers, and acquisitions; variables of operational restructuring such as employees, branches, the cost to total assets; GDP variables and the second restructuring period have a positive impact on financial performance. Variables such as debt-to-capital ratio, bad debt ratio, state ownership ratio, expense-income ratio, and inflation have a negative effect on financial performance.

• International journal of advanced smart convergence
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• v.10 no.3
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• pp.1-9
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• 2021

In the Internet of Thing (IoT) framework, massive machine-type communications (MMTC) have required large spectral efficiency. For this, non-orthogonal multiple access (NOMA) has emerged as an efficient solution. Recently, a non-successive interference cancellation (SIC) NOMA scheme has been implemented without loss. This lossless NOMA without SIC is achieved via correlated superposition coding (SC), in contrast to conventional independent SC. However, conventional minimum high-correlated SC for only 2-user NOMA schemes was investigated in the lossless 2-user non-SIC NOMA implementation. Thus, this paper investigates a 3-user low-correlated SC scheme, especially for an inflated achievable sum rate, with a design of 3-user low-correlated SC. First, we design the 3-user low-correlated SC scheme by taking the minimum sum rate between 3-user SIC NOMA and 3-user non-SIC NOMA, both with correlated SC. Then, simulations demonstrate that the low correlation in the direction of the first user's power allocation inflates the sum rate in the same direction, compared to that of conventional minimum high-correlated SC NOMA, and such inflation due to low correlation is also observed similarly, in the direction of the second user's power allocation. Moreover, we also show that the two low correlations of the first and second users inflates doubly in the both directions of the first and second users' power allocations. As a result, the proposed 3-user low-correlated SC could be considered as a promising scheme, with the inflated sum rate in the future fifth-generation (5G) NOMA networks.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.1-9
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• 2021

The purpose of this study is to examine the effects of economic uncertainty on MNC investment in Malaysia from 2009 to 2019 by employing an ARDL method. The results revealed that Economic Policy Uncertainty (EPU) has a positive association with the capital expenditures of Nestle, British American Tobacco, and Public Bank in the long run. In a similar period, the Gross Domestic Product (GDP) is positively significant with the capital expenditures of British America Tobacco and Heineken. However, inflation is negatively related to the capital expenditures of British America Tobacco and Heineken. Additionally, the exchange rate has a significant and negative relationship with the capital expenditures of Nestle and Petronas, while the ECT value is negative and significant in the short run, hence confirming that co-integration exists. In view of this, it is imperative that the government plays a prerogative role to support MNC operations, as MNCs foster the developing countries' economic development through facilitating full employment. This study sets to enhance the personal knowledge of those with a strong interest in the Malaysian financial market. As long as MNCs believe that the Malaysian market has the potential to grow, they will continue to invest for the benefit of the country.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.573-581
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• 2021

The current study analyzed the impacts of fiscal decentralization (FD) on the economic stability of Pakistan. This study used time series data from 1981 to 2017. The collected data was first passed through the unit root analysis. ARDL estimation techniques were employed to scrutinize the data where long-run associations were tested through Wald F-statistics. The long-run estimates were extracted by applying Ordinary Least Square, and error correction mechanisms were employed to find the speed of adjustment for disequilibria between the long and the short run. Wald F-statistics confirmed the existence of long-run cointegration. Long-run elasticities suggested that fiscal decentralization because of limited institutional capabilities of provincial governments failed in bringing stability in the economy of Pakistan. Similarly, transparency issues and misspecification of projects hinder the outcome of investment to stabilize the economy. High service payments on debt cut the amount that can be used for skills improvements and destabilize the economy. High Population growth puts pressure on infrastructure and reduces production capacity, ultimately destabilizing the economy by increasing unemployment and inflation. Based on these findings, the government is suggested to improve the institutional capacity of lower governments for the desired outcome of power devolution.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.785-793
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• 2021

The purpose of the research is to assess the factors affecting the liquidity of the commercial banks that are conducting mergers and acquisitions activities in Vietnam during the 2008-2018 period. This study employs samples based on 2-component data sets with cross-section and time-series data collected from the annual report of the State Bank and the audited acquisitions financial statements of nine commercial banks engaged in mergers and acquisitions activities. To carry out the research objectives, the authors conducted quantitative analysis through the Pooled OLS, REM, FEM and GMM models. The results shown that: (i) bank liquidity is positively affected by liquidity lagged, the return on equity (ROE) and economic growth; negatively affected by bank size, non-performing loan, short-run loan to deposit ratio; (ii) there is not enough evidence to conclude about the relationship between net profit margin, equity-to-assets ratio and inflation rate to bank liquidity; (iii) notably, we found evidence that, after the mergers and acquisitions, the liquidity of Vietnamese commercial banks decreased. The findings of this study suggest that bank managers take a more comprehensive view of the results of mergers and acquisitions and implications for banks to improve liquidity in the post-merger and acquisitions conditions.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.543-549
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• 2021

The stock market plays a crucial role in the growth of industry and trade, which eventually affects the economy. This paper studies the determinants of stock market development in Jordan using yearly time-series data (1978-2019). The autoregressive distributed lag approach is applied to examine co-integration, while the vector error correction model is employed to estimate (long-run and short-run) causal relationships. The results show that macroeconomic determinants such as gross domestic product, gross domestic savings, investment rate, credit to the private sector, broadest money supply, stock market liquidity, and inflation rate are important determinants of stock market development. These findings provide vital implications for policymakers in developed and emerging stock markets. First, economic development plays an imperative role in stock market development. Second, developing the banking sector is mandatory because it can significantly promote stock market development. Third, domestic investment is a significant determinant of stock market development, especially in emerging countries. However, it is vital to launch policies that lead to encourage investment and promote stock market development, and this could be done through (1) encouraging competition, (2) improving the institutional framework, and (3) removing trade blocks by establishing a mutual connection between foreign private investment entities and government authorities.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.649-656
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• 2021

This paper aims to examine the moderating role of bank competition on the effect of liquidity creation on bank capital. We measure bank competition using the Lerner index approach, liquidity creation using the Catfat approach, and bank capital using the capital to total asset ratio approach. This test also considers control variables from bank-specific factors such as Return on Assets, Loan to Deposit Ratio, and Non-Performance Loans as well as macroeconomic factors such as Gross Domestic Product, inflation, and Bank Indonesia interest rates. The sampling technique used was purposive sampling. The data sample obtained was 96 banks from a population of 114 banks in Indonesia which consistently operated during the period 2008-2018. Hypothesis testing uses panel data regression analysis techniques through the first model of the Hayes method. The results show that the negative effect of liquidity creation on bank capital depends on competition. We found that bank competition at any level (low, medium, high) negatively moderates (weakens) the effect of liquidity creation on bank capital in all banks. This finding is consistent with the view that banks may strengthen their capital in response to bank competition which may decrease the level of bank liquidity creation.

• International Area Studies Review
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• v.12 no.3
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• pp.171-194
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• 2008

This paper analysis the long-run demand for monetary indicator M2 and Liquidity indicator L in Korea in the period from 1980:1 to 2006:3 by cointegration and error correction models. The empirical evidence that M2, L in Korea is meaningfully cointegrated with income, interest rate, exchange rate, inflation uncertainty, real effective exchange rate, exchange rate uncertainty and LIBOR, thus showing the existence of long-run demand function under open-economy framework.