International Journal of Accounting and Financial Reporting, 2019
Purpose: The purpose of this research is to conduct a comparative analysis of CAR determinants be... more Purpose: The purpose of this research is to conduct a comparative analysis of CAR determinants between Islamic and conventional banks. Design/methodology/approach: The analysis is conducted using GMM on annual data for 38 Islamic banks (IBs) and 75 conventional banks (CBs) in 10 MENA countries during 2009-2013. CAR is used as a dependent variable and is measured by the Basel framework. The independent variables are: profitability; liquidity risk; credit risk; bank size; deposits to assets; operational efficiency; portfolio risk; and two macroeconomic variables (GDP growth rate and average world governance indicators for each country). Findings: The results show that both IBs and CBs have a significant association between CAR and (bank size, operational efficiency, and GDP growth rate) and CAR is affected retroactively on the long-run. In IBs the results show a significant association between CAR 288 and deposits to assets ratio. However, CBs results show an association between CAR and (profitability, credit risk, and portfolio risk). Practical implications: The empirical evidence accentuates the difference between both banking systems and the importance to enforce the application of the Islamic Financial Services Board (IFSB) proposal on IBs based in different jurisdictions. This will enhance the IBs stability and efficiency; and achieve standardization of CAR calculation between IBs. Originality/value: Filling the gap in the Islamic finance literature by trying to examine whether factors influencing CAR are similar between both banking systems or to confirm on the view that they are completely different and should not adhere to the same regulatory bodies.
Capital adequacy rules are safety valve for regulators and banks' clients/shareholders to reduce ... more Capital adequacy rules are safety valve for regulators and banks' clients/shareholders to reduce expected risks faced by commercial banks especially for cross border transactions as these rules are applied compulsory by all banks internationally. Applying these rules will achieve rational management and governance. This paper examines explanatory victors that influence capital adequacy ratio (CAR) in the Egyptian commercial banks. The study covers 36 banks during the period from 2004-2013. We examined the relationship between CAR as dependent variable and the following independent variables: earning assets ratio, profitability, and liquidity, Loan loss provision as measure of credit risk, net interest margin growth, size, loans assets ratio and deposits assets ratio. Furthermore, we investigate determinants of CAR before and after the 2007-2008 international financial crises. Results vary according to the period understudy. For the whole period 2003 to 2013 results show that liquidity, size and management quality are the most significant variables. Before the period 2008 results show that asset quality, size and profitability are the most significant variables. After the period 2009 results show that asset quality, size, liquidity, management quality and credit risk are the most significant variable that explain the variance of Egyptian banks' CAR.
One of the most important instruments of the financial system that reveals the future of the econ... more One of the most important instruments of the financial system that reveals the future of the economy in any country is the profitability of the banking sector. Starting from 2008, Egypt was banged by consecutive shocks, both globally and locally, started with global financial crisis in Sep., 2008. The essential objective of the current study is to investigate factors that affect Egyptian banks’ profitability before and after financial crisis using Generalized Method of Moments (GMM) through Eviews. The sample period covers from 2004 to 2013, return on assets and return on equity were used as proxy for banks’ profitability. The explanatory variables which effect profitability are deposits to total assets ratio, operating income to asset ratio, credit quality, capital adequacy, loans rate, equity growth minus loan growth rate, asset share ratio and Egyptian banks’ total assets to Egyptian gross domestic product (GDP).The empirical findings suggested that Egyptian banks with higher capital strength, asset share, and efficient management exhibit higher profitability level, whilst Egyptian banks with higher credit risk and loans intensity exhibit lower profitability level.
This study examines the relationship between trading volume and stock return to shed more light o... more This study examines the relationship between trading volume and stock return to shed more light on the structure of the Egyptian stock exchange and the information arrival pattern, aiming to reach recommendations which will achieve benefits to the stock exchange, investors and other stakeholders.
International Research Journal of Finance and Economics
According to life cycle theory of dividends, dividends tend to be paid by mature firms while youn... more According to life cycle theory of dividends, dividends tend to be paid by mature firms while young ones face relatively abundant investment opportunities with limited resources so that retention dominates distribution. We test this theory in the Egyptian market using a sample of the most active 100 companies during the period 2005-2010. We use a random-effects panel data model after controlling for the firm's characteristics. We find that returned earnings to total equity ratio has highly significant and positive effect on dividend and that total equity to total asset ratio has no effect. Accordingly, the only part of the shareholder equity that affects dividend is the retained earnings indicating that earned capital not contributed is the main determinant of dividend. This provides evidence for the existence of the life cycle theory of dividends in Egypt. In addition, profitability has a significant positive effect on dividend, the higher the profitability of the company the higher the dividend distributed. Ownership structure has no effect on dividend except public companies and private holding which have a positive and significant effect on dividend.
The objective of this research is to highlight and explore factors affecting consumers' intention... more The objective of this research is to highlight and explore factors affecting consumers' intentions for accepting online shopping. It is important to find out variables that impede Egyptian consumers' intentions for accepting online purchase. The research approached a convenient sample out of the internet consumers' population. An online survey was administered to collect data. The initial interviews with Egyptian online vendors and literature review showed that the important independent factors that affect Egyptian consumers' intentions for accepting internet shopping, as dependent variable, were: (1)the trust in website, (2)e-service quality, (3)consumers attitude toward online shopping and the consumers demographic characteristics as moderating variables. The research findings pointed out that all the demographic characteristics had significant impact on the consumers' intentions for online shopping, Men were more oriented for accepting online shopping compared to women, consumers aged between 36 to 45 years old were having the highest intentions to accept online shopping, Consumers experience with the internet was a very significant factor and was positively correlated with the intentions for accepting online shopping, graduates were having more intentions for online shopping compared with MBA/MSC and PhD holders, and Trust, e-service quality and Consumers attitude toward online shopping were positively and significantly correlated to consumers' intentions.
International Journal of Accounting and Financial Reporting, 2019
Purpose: The purpose of this research is to conduct a comparative analysis of CAR determinants be... more Purpose: The purpose of this research is to conduct a comparative analysis of CAR determinants between Islamic and conventional banks. Design/methodology/approach: The analysis is conducted using GMM on annual data for 38 Islamic banks (IBs) and 75 conventional banks (CBs) in 10 MENA countries during 2009-2013. CAR is used as a dependent variable and is measured by the Basel framework. The independent variables are: profitability; liquidity risk; credit risk; bank size; deposits to assets; operational efficiency; portfolio risk; and two macroeconomic variables (GDP growth rate and average world governance indicators for each country). Findings: The results show that both IBs and CBs have a significant association between CAR and (bank size, operational efficiency, and GDP growth rate) and CAR is affected retroactively on the long-run. In IBs the results show a significant association between CAR 288 and deposits to assets ratio. However, CBs results show an association between CAR and (profitability, credit risk, and portfolio risk). Practical implications: The empirical evidence accentuates the difference between both banking systems and the importance to enforce the application of the Islamic Financial Services Board (IFSB) proposal on IBs based in different jurisdictions. This will enhance the IBs stability and efficiency; and achieve standardization of CAR calculation between IBs. Originality/value: Filling the gap in the Islamic finance literature by trying to examine whether factors influencing CAR are similar between both banking systems or to confirm on the view that they are completely different and should not adhere to the same regulatory bodies.
Capital adequacy rules are safety valve for regulators and banks' clients/shareholders to reduce ... more Capital adequacy rules are safety valve for regulators and banks' clients/shareholders to reduce expected risks faced by commercial banks especially for cross border transactions as these rules are applied compulsory by all banks internationally. Applying these rules will achieve rational management and governance. This paper examines explanatory victors that influence capital adequacy ratio (CAR) in the Egyptian commercial banks. The study covers 36 banks during the period from 2004-2013. We examined the relationship between CAR as dependent variable and the following independent variables: earning assets ratio, profitability, and liquidity, Loan loss provision as measure of credit risk, net interest margin growth, size, loans assets ratio and deposits assets ratio. Furthermore, we investigate determinants of CAR before and after the 2007-2008 international financial crises. Results vary according to the period understudy. For the whole period 2003 to 2013 results show that liquidity, size and management quality are the most significant variables. Before the period 2008 results show that asset quality, size and profitability are the most significant variables. After the period 2009 results show that asset quality, size, liquidity, management quality and credit risk are the most significant variable that explain the variance of Egyptian banks' CAR.
One of the most important instruments of the financial system that reveals the future of the econ... more One of the most important instruments of the financial system that reveals the future of the economy in any country is the profitability of the banking sector. Starting from 2008, Egypt was banged by consecutive shocks, both globally and locally, started with global financial crisis in Sep., 2008. The essential objective of the current study is to investigate factors that affect Egyptian banks’ profitability before and after financial crisis using Generalized Method of Moments (GMM) through Eviews. The sample period covers from 2004 to 2013, return on assets and return on equity were used as proxy for banks’ profitability. The explanatory variables which effect profitability are deposits to total assets ratio, operating income to asset ratio, credit quality, capital adequacy, loans rate, equity growth minus loan growth rate, asset share ratio and Egyptian banks’ total assets to Egyptian gross domestic product (GDP).The empirical findings suggested that Egyptian banks with higher capital strength, asset share, and efficient management exhibit higher profitability level, whilst Egyptian banks with higher credit risk and loans intensity exhibit lower profitability level.
This study examines the relationship between trading volume and stock return to shed more light o... more This study examines the relationship between trading volume and stock return to shed more light on the structure of the Egyptian stock exchange and the information arrival pattern, aiming to reach recommendations which will achieve benefits to the stock exchange, investors and other stakeholders.
International Research Journal of Finance and Economics
According to life cycle theory of dividends, dividends tend to be paid by mature firms while youn... more According to life cycle theory of dividends, dividends tend to be paid by mature firms while young ones face relatively abundant investment opportunities with limited resources so that retention dominates distribution. We test this theory in the Egyptian market using a sample of the most active 100 companies during the period 2005-2010. We use a random-effects panel data model after controlling for the firm's characteristics. We find that returned earnings to total equity ratio has highly significant and positive effect on dividend and that total equity to total asset ratio has no effect. Accordingly, the only part of the shareholder equity that affects dividend is the retained earnings indicating that earned capital not contributed is the main determinant of dividend. This provides evidence for the existence of the life cycle theory of dividends in Egypt. In addition, profitability has a significant positive effect on dividend, the higher the profitability of the company the higher the dividend distributed. Ownership structure has no effect on dividend except public companies and private holding which have a positive and significant effect on dividend.
The objective of this research is to highlight and explore factors affecting consumers' intention... more The objective of this research is to highlight and explore factors affecting consumers' intentions for accepting online shopping. It is important to find out variables that impede Egyptian consumers' intentions for accepting online purchase. The research approached a convenient sample out of the internet consumers' population. An online survey was administered to collect data. The initial interviews with Egyptian online vendors and literature review showed that the important independent factors that affect Egyptian consumers' intentions for accepting internet shopping, as dependent variable, were: (1)the trust in website, (2)e-service quality, (3)consumers attitude toward online shopping and the consumers demographic characteristics as moderating variables. The research findings pointed out that all the demographic characteristics had significant impact on the consumers' intentions for online shopping, Men were more oriented for accepting online shopping compared to women, consumers aged between 36 to 45 years old were having the highest intentions to accept online shopping, Consumers experience with the internet was a very significant factor and was positively correlated with the intentions for accepting online shopping, graduates were having more intentions for online shopping compared with MBA/MSC and PhD holders, and Trust, e-service quality and Consumers attitude toward online shopping were positively and significantly correlated to consumers' intentions.
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Papers by osama ansary
Sep., 2008. The essential objective of the current study is to investigate factors that affect Egyptian banks’ profitability before and after financial crisis using Generalized Method of Moments (GMM) through Eviews. The sample period covers from 2004 to 2013, return on assets and return on equity were used as proxy for banks’ profitability. The explanatory variables which effect profitability are deposits to total assets ratio, operating income to asset ratio, credit quality, capital adequacy, loans rate, equity growth minus loan growth rate, asset share ratio and Egyptian banks’ total assets to Egyptian gross domestic product (GDP).The empirical findings suggested that Egyptian banks with higher capital strength, asset share, and efficient management exhibit higher profitability level, whilst Egyptian banks with higher credit risk and loans intensity exhibit lower profitability level.
Sep., 2008. The essential objective of the current study is to investigate factors that affect Egyptian banks’ profitability before and after financial crisis using Generalized Method of Moments (GMM) through Eviews. The sample period covers from 2004 to 2013, return on assets and return on equity were used as proxy for banks’ profitability. The explanatory variables which effect profitability are deposits to total assets ratio, operating income to asset ratio, credit quality, capital adequacy, loans rate, equity growth minus loan growth rate, asset share ratio and Egyptian banks’ total assets to Egyptian gross domestic product (GDP).The empirical findings suggested that Egyptian banks with higher capital strength, asset share, and efficient management exhibit higher profitability level, whilst Egyptian banks with higher credit risk and loans intensity exhibit lower profitability level.