Finance: Recent submissions
Now showing items 1-20 of 122
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Contemporaneous spillovers across foreign exchange marketsThe study of financial shock propagation across markets has motivated numerous researchers to investigate the mechanisms of return and volatility spillovers in order to prevent harmful shock transmission. This article studies the contemporaneous spillovers by employing a structural vector autoregressive (SVAR) model with Markov switching covariance matrix to solve the identification problem. The proposed method offers a smooth convergence that handles several drawbacks of existing procedures. Moreover, this article develops a new framework to analyze the contemporaneous asymmetric volatility spillovers, which adds a great deal of knowledge by separating the effects of good news and bad news on shock transmissions. Application on major exchange rate returns and volatilities shows that the contemporaneous effects have different intensities for all pairwise currencies. Furthermore, the asymmetric analysis reveals that good (bad) volatility has a contemporaneous positive effect on good (bad) volatility, while the risk due to good (bad) news negatively affects the risk due to an opposite shock.
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Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging marketThis study empirically investigates the linkage between boardroom independence and the financial performance of non-financial firms in an emerging market featured by family-controlled businesses and concentrated ownership. The relationship is tested in a sample of 152 non-financial firms listed on the Pakistan Stock Exchange over a period from 2003 to 2018. Firms’ financial performance is measured through return on assets (ROA), return on equity (ROE), market-to-book ratio (MBR), and Tobin’s Q (TQ), while boardroom independence is measured through the proportion of non-executive directors on the corporate board. Using the dynamic GMM approach to address the possibility of endogeneity, it was found that boardroom independence is significantly negatively related to the financial performance of the sample firms. This negative impact is due to the reason of close ties of outside independent directors (non-executive directors) with dominant shareholders and management in personal, financial, and social terms. A significant negative influence of the board size and CEO duality on firms’ financial performance was also observed. The present study will add to the existing literature on corporate governance and firm financial performance using firm-level manually collected data. Further, our findings will also help the policymakers by providing empirical insights for strengthening corporate governance mechanisms in emerging market economies, specifically in the context of Pakistan.
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Prevalence of Online Political Incivility: Mediation Effects of Cognitive and Affective InvolvementThe aim of this study is to explore the impact of political news posts, interactive discussion factors, and uncivil comments on participants’ online incivility. The moderating effects of cognitive and affective involvement have also been considered. The data have been gathered using self-administered questionnaires from 458 respondents. The results indicate that political news posts having interactive discussion factors positively impacts the online uncivil behaviour of the participants. The uncivil comments initiated by other users also significantly impact the participants’ incivility. The data have also been analysed for the mediation effects. The construct of affective involvement emerged as an effective mediator as compared to cognitive involvement. This study posits several theoretical implications for the literature. The combination of the variables used is also rare in the literature. The findings of this study are useful for behavioural scientists, as the outcomes have a potential to predict the online behaviour of Pakistani users.
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Can Saudi Arabia achieve sustainable economic growth (GDP) by simultaneously increasing energy efficiency, reducing CO? emissions, and promoting tourism, while considering the potential trade-offs between these factors?CamScanner Abstract This dissertation investigates the interplay between non-oil exports, tourism, and energy efficiency in driving sustainable economic growth in Saudi Arabia, particularly in the context of reducing CO? emissions and diversifying economic activities away from oil dependency. Saudi Arabia, historically reliant on oil revenues, faces significant challenges due to volatile oil prices and environmental concerns related to climate change. The fact that Saudis have traditionally depended on oil revenues leaves no ambiguity about times to come is rather problematic for the country due to unpredictable oil prices as well as environmental issues linked with GHG concentration. In this work, we look at energy savings measures, carbon emissions reduction, and tourism development as means to not only build economic sustainability and resilience but also to create favorable conditions for their operation. The economic strategy of Saudi Arabia, which is in the concept stage thanks to Vision 2030, is trying to get rid of the dependence on crude oil for the economy and suggests making a diverse economy based on renewable energy and tourism. This research focuses on the roles of these industries in facilitating an economy that will be more resilient and less dependent on oil. The research methodology includes a multiple linear regression model capturing hte networks of dependencies between energy efficiency, CO? emission, tourism, and GDP alongside other economic indicators. It ensures that economic growth is sustainable with nature and can be created with the analysis of the interactions and tradeoffs involved in it. The operational expenditures and carbon footprints, the performance of energy efficiency distractions is inevitable in addition to the economic growth it can bring about. Implementation of energy-efficient measures (such as energy- saving light bulbs, thermostats, and appliances) is often associated with reduced carbon emissions (one of the key objectives in the international climate negotiations). Hence, such measures also contribute to the improvement of air quality at the local level, thus enhancing environmental protection and public health. Tourism is posed as a vital factor in economic diversification, becoming a point of robustness for employment and foreign exchange as well. Tourism development, which is substantiated by infrastructure improvement and regulatory reform such as visa facilitation, may considerably boost the participation of the sector in the country's economic growth by way of its contribution to the GDP. The article underlines the fact that smart investments in tourism and eco-friendly guidelines can produce a maximum economic effect and at the same time save the environment. The study brings to light the requirement to integrate the environmental and economic aspects of policies in pursuit of sustainable development. It implies that dealing with strategically sound policies, technology clean-up investments, and taking global environmental action are the factors that may advance the diversification of the Saudi economy. Social organizations employing the government, industry, and academia should be developed to make the shift to a sustainable economic system more rapid. This research provides us with a useful example of what transition strategies Saudi Arabia uses as a contribution to the sustainability policies domain. It serves as a lens to these developing countries, of similar economic structures, to look into ways in which they can exploit this complicated trade-off between diversification of economies and environmental sustainability. A monitoring mechanism should be established to investigate the implementation and outcomes of these packages of measures, ensuring they will contribute to long-term economic stability and the environment. Keywords: Sustainable Economic Growth, Non-Oil Exports, Tourism Development, Energy Efficiency, CO? Emissions Reduction, Saudi Arabia, Economic Diversification, Vision 2030, Renewable Energy, Environmental Sustainability.
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The VaultThis academic thesis explores the design and development of a smart jewelry storage unit tailored for high-class homes, incorporating innovative features and user-centric design. The research encompasses a comprehensive analysis of historical product design, market research, user research, and smart technology integration to understand the needs and preferences of high-end consumers. The study emphasizes the significance of market research in understanding consumer behavior, preferences, and market trends, guiding the development of unique, user-centric solutions. User research is highlighted as a crucial stage in product design, involving qualitative and quantitative methods to understand the human tapestry and form better-informed design decisions. The study aims to create a jewelry storage unit that is both innovative and user-friendly, meeting the needs of high-end consumers. The research findings will be used to develop a storage unit that is both useful and desirable, incorporating smart technology to enhance the user experience. The study's contributions and usefulness lie in its potential to inspire future innovations in the field of jewelry storage design, redefining how users organize and display their precious jewelry collections, and creating solutions that meet the demands of high-end consumers. The research aims to result in a clear understanding of the needs and requirements for a jewelry storage unit for luxurious high-class homes, which will be used to develop a design that is both functional and visually appealing, incorporating smart technology to enhance the user experience.
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Assessing The Economical Feasibility of Vertical FarmingThis research delves into two fundamental questions: how vertical farming contributes to economic sustainability and how its costs and financial performance compare to traditional farming. The economic sustainability of vertical farming is a complex topic with both promising opportunities and uncertainties. The success of vertical farming relies on achieving high yields to counterbalance the high costs of starting and operating the farms. Although vertical farming projects are focused on attracting funds from various stakeholders due to their innovation, uncertainties persist. The market is driven by the growing demand for urbanization and arable lands. Yet, the lack of standardization in the vertical farms’ arrangements and compositions pose challenges in conducting precise comparisons and benchmarks. This research emphasizes the need for further exploration to identify the true potential and possible obstacles of vertical farming. The review includes the literature that focused on defining vertical farming, assessing its costs, risks, and profitability. This study integrates 40 references, primarily from journal articles, along with multiple referenced sources like videos and news articles, which were used to further support claims made by other authors in the literature review.
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Spillovers between oil and the GCC stock markets: Fresh evidence from a regime-switching approachThis study examines the connection between crude oil and the Gulf Cooperation Council (GCC) region stock markets by employing a regime-switching approach. The methodology provides new insights on how the linkage between oil and GCC stock markets may fluctuate in different economic or market regimes, which is crucial for understanding the transmission of oil shocks and tailoring policy responses. The findings indicate that the spillovers between the underlying assets are asymmetric. Specifically, during the turmoil periods, the connectedness is intense among these assets, whereas during tranquil periods, the linkage is moderate. The intense spillovers regime is short-lived, which corroborates the existing literature of a relatively stable oil market. Furthermore, an increase in oil prices can positively contribute to the profits of firms that are heavily dependent on oil, leading to an increase in the linkage between these countries and crude oil. Results have crucial suggestions for investors and decision-makers in the GCC region.
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Labor market consequence of exports diversification and terms of trade shocks in EMDEsThis research examines the labor market consequences of international trade for emerging markets and developing economies (EMDEs) while using the Bayesian panel multivariate regression approach for the period 2011–2023 for a panel of 18 countries. It employs labor market variables such as average monthly earnings, labor force participation rate, unemployment rate, and labor productivity, along with trade-related variables such as terms of trade index, export diversification, and trade volume. While GDP and population growth rates are employed as control variables. The estimates reveal that trade-related variables have a positive and statistically significant impact on labor earnings, labor productivity, and unemployment. Furthermore, estimates reveal a positive and statistically significant impact of GDP growth on domestic labor earnings and productivity whereas population growth negatively impacts both labor market outcomes. This research provides insights for policymakers to follow export-oriented policies to enhance the earnings and productivity of the domestic labor force in EMDEs.
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The demographical and economic factors affecting female labor force participation in Saudi ArabiaThe female labor force participation holds significant implications for various aspects of society, the economy, and individual lives. Understanding its significance involves recognizing the multifaceted impact of women’s participation in the workforce. In this context, the current study investigates the factors influencing the female labor force participation rate in Saudi Arabia while using a set of independent variables such as GDP growth, employment-to-population ratio, inflation, urban population growth, tertiary school enrollment, labor force with advanced education, fertility rate, and age dependency ratio, covering a period from 2000 to 2022. The results reveal that the employment-to-population ratio, inflation rate, urbanization, and age dependency ratio have positive and statistically significant impacts on the female labor force participation rate. This research offers valuable insights for formulating policies to foster female empowerment and overcome the obstacles that hinder their economic participation.
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Investigating the Determinants of Local Content Policy in G-20 CountriesThe local content policy encompasses measures governments or organizations implement to stimulate or mandate the utilization of domestically produced goods and services across various industries or sectors. This policy boosts economic growth, fosters job creation, and promotes development by prioritizing local resources and industries over imported alternatives. Within this framework, current research examines the factors influencing local content policies within G-20 countries over the period spanning from 2002 to 2021. This research employs panel data regression analysis, considering variables such as the number of listed companies as an indicator of local content, foreign direct investment, political stability, corruption, research and development expenditure, tariff rates, and exports and imports. The findings reveal an inverse relationship between corruption levels and economic growth with the number of domestically listed firms. Conversely, import volumes, political stability, research and development expenditure, and tariff rates exhibit a positive and statistically significant impact on the number of domestically listed companies. This research provides valuable insights for promoting local content and developing policies to effectively leverage domestic companies for innovation-driven, inclusive, and sustainable economic development.
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Conclusion: Beyond the HorizonThis chapter delves into the complex yet fascinating arena of Islamic finance, looking at its historical foundations and dealing with today’s complexities. There is a huge struggle in Islamic economics in meeting the contemporary needs while practising moderate framework, observing the difference between strictly abiding by the rules and achieving the ethical goals beyond the profit. It urges for a value-driven approach within institutions and the implementation of the zakat, sadaqah and waqf systems to fill the Sustainable Development Goal (SDG) financing gap. Seizing the opportunities, the chapter promotes the necessity of Islamic fiqh experts with current Shari’ah body of knowledge in considering the ethical and legal aspects alongside fintech. This is essentially to ensure that the implementation of Islamic finance enables the sustainable economic development. Looking toward the Industry 5.0, it expects a combination of artificial intelligence (AI) with Islamic finance and identifies Islamic social finance as a powerful socially-driven tool. In the end, the chapter lays out Islamic finance as the powerful tool to work together to achieve an ethical, equitable, and sustainable financial system.
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The Future of Islamic FinanceIn this chapter, the integration of diverse discussions from preceding chapters converges into a comprehensive exploration of four pivotal challenges facing Islamic finance both presently and in the future. The chapter systematically addresses these challenges, commencing with a focused analysis on augmenting the role of Islamic finance in fostering financial inclusion. It scrutinizes innovative strategies to broaden access to financial services. Moving forward, the narrative navigates the intricate intersection of Islamic finance and sustainability, unraveling the potential synergy between these two domains and their collective contribution to Sustainable Development Goals (SDGs). The exploration extends to the realm of digitalization, probing how modern technologies such as artificial intelligence and blockchain can serve as catalysts for the progression of Islamic finance. Finally, the chapter delves into the imperative of harmonizing the Islamic financial industry (IFI), tackling challenges and proposing solutions to enhance uniformity and coherence in practices. These nuanced discussions not only address contemporary challenges but also underscore their critical role in achieving the SDGs and aligning with the targets of the Paris Agreement by 2030, providing valuable insights for scholars, practitioners, and policymakers in the field of Islamic finance.
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Future of Islamic FinanceDigital transformation has made enormous changes in the banking domain, where financial technology (fintech) is the salient driving force inside it. For Islamic banking, artificial intelligence (AI) is one of the most innovative technologies that has shifted banks into the entire virtual environment. In this context, the main objectives of this chapter are to discuss the current application of AI in the Islamic banking industry, to identify the challenges faced by the banks in adapting AI while ensuring Shari’ah compliant in their operations, and to shed light on the future of banking and how it will influence Islamic banks in this digital era. This chapter also provides several examples of the application of several Shari’ah robo-advisors used by Islamic banks. Robo advisors are mainly an advanced AI tool involved in investment and portfolio management. The unique value of AI for Islamic banks lies within its own-Shari’ah AI framework that is used to fulfill Shari’ah-related matters, which requires active collaboration between Shari’ah scholars, regulatory bodies, and Islamic banks. Despite all the challenges, AI holds immense potential for Islamic banking to improve efficiency, accessibility, and risk management. Finally, the chapter paves the way for further discussion on building a responsible and innovative Islamic financial system in the era of AI.
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Digital Currencies and Their Compatibility in the Islamic Finance IndustryThe chapter is devoted to the in-depth analysis of the compliance between the Shari’ah rules and digital currency within the context of Islamic finance. The emergent trend of digital currencies, especially virtual based as in the case of Bitcoin, has raised questions on the issue of their compatibility with ethical and legal moral rights. The paper covers core issues like Shari’ah implementation, the utilization of tangible assets, crypto as a medium of exchange and some obstacles in merging crypto into Islamic banking. Besides that, the paper outlines workable solutions for overcoming these difficulties, including the introduction of Shari’ah-compliant cryptocurrencies, the development of a regulatory framework and the need for enlightenment and collaboration. Furthermore, the manuscript will exhibit some Islamic-centric digital currencies, e.g. the Islamic Coin and OneGram, to illustrate that a successful integration into Islamic finance is possible. Furthermore, future estimations consider the implications of central bank digital currencies (CBDCs) in Islamic finance which brings up both opportunities and challenges. The conclusion calls for ongoing research and innovation spanning traditional as well as digital (cryptocurrencies) in order to achieve Shari’ah harmonization and eventual evolution of the Islamic finance sector.
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Promoting Sustainable Development Through Islamic Social FinanceThis chapter is about the role Islamic finance has been able to stay on the track of facing social–economical predicaments and on the way to sustainable development with the involvement of social prosperity. When trying to investigate the convergence between social finance and Islamic standards, what is argued is that a need for observing financial operations in the same way as prodevelopment theories arise. It is considered that in a holistic approach, which assumed a social justice as the basic ethic of the Islamic financial system, the final result tends to be more appropriate. One of the main elements that makes Islamic banking stand up in a high grade is maqasid al-Shari'ah due to its responsibility to assess social performance and apply new updated technologies for sustainable growth based on Sustainable Development Goals (SDGs). In addition to that, the situation is critically observed and the gap between ambitions functions and the reality in Islamic banking and finance is also pointed out to find some reconciliation between aspirations and facts. While its ancient foundations did point to the prospect of Islamic banking to serve as a major contributor to the social and economic development, the industry players of today have now been preoccupied with the profit-making objectives and financial performance rather than social banking. This chapter focuses on the role of Islamic finance as a breakthrough force and shows the way that this influence could shape the discussions of financial systems, so that economics follow, and ethical principles and become factors for the national economy to grow more robustness.
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Integrating Islamic Finance Into the Sustainable Development Goals (SDGs)The announcement of the SDGs in 2015 marked a dramatic shift in global development, culminating in an age of international cooperation where the international community bands together to tackle the world’s most pressing challenges. This chapter discusses the peculiar connection between Islamic financing and the SDGs and focuses on the possible harmony between these two sectors. It emphasizes the need for significant financial resources to advance sustainable development. Researchers argue it is crucial to bring digital technologies together with Islamic finance to reach sustainable economic growth through innovations like artificial intelligence (AI), blockchain, and fintech. In addition, the chapter explains core principles of Islamic finance that conform to Shari’ah, which will eradicate poverty and promote conscientious consumption. Islamic finance opens the opportunity for financially and socially excluded groups, poverty reduction, and environmental sustainability through programs like renewable energy projects. However, SDG integration with Islamic finance still poses some challenges, namely, Shari’ah scholars’ understanding of the SDGs, regulatory and operational difficulties, the necessity for innovation, and measuring nonfinancial benefits. Through case studies, the authors provide pragmatic insights into successful integration processes as well as practical lessons for the concerned parties. The chapter ends by making policy recommendations grounded on active support by governments, compulsory educational initiatives, new interesting Islamic finance products, and shared efforts (or undertakings) among various stakeholders. In short, this chapter positions Islamic finance as a potent catalyst for SDGs, furnishing a sustainable economic and social development framework while acknowledging and addressing challenges on the integration journey.
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Islam and Free Trade: The Contributions of Muslim Scholars to Modern Economic TheoriesIslamic economic ideology has exerted a profound influence on the evolution of the open market, particularly in the domains of individual property rights, unobstructed commerce, and restrained governmental interference. The Islamic doctrine pertaining to individual property rights underscores the entitlement of individuals to possess and exercise dominion over their possessions, and this fundamental doctrine has played a pivotal role in shaping the unrestrained market. Islamic economic philosophy also champions free trade, affording individuals the freedom to exchange commodities and services devoid of governmental constraints. This doctrine has contributed to the creation of a more efficient and prosperous economic milieu. Ultimately, Islamic economic thought propagates the concept of delimited governmental involvement in economic affairs. This principle affords enterprises the latitude to undertake risks, while empowering entrepreneurs to establish novel companies, both of which are integral to economic expansion. The undeniable contributions of Islamic economic thought to the maturation of the open market are incontestable. These principles have been instrumental in the establishment of a more efficient, flourishing, and vibrant economic landscape. As our world becomes progressively intertwined, it remains imperative to retain the insights gleaned from Islamic economic thought and persist in the pursuit of an equitable and free market system.