Emerging Trends in Banking and Finance (eBook)

Contents 5
The Determinants of Nonperforming Loans: The Case of Turkey 7
1 Introduction 7
2 Literature Review 9
3 Data, Model Specification and Methodology 11
3.1 Methodology 11
3.2 Unit Root Tests 12
3.3 Co-integration Test 12
3.4 Vector Error Correction Model (VECM) 13
3.5 Granger Causality Test 13
4 Empirical Results 14
4.1 Unit Root Test 14
4.2 Co-integration Test 14
4.3 Vector Error Correction Model Results 14
4.4 Granger Causality 17
5 Conclusion and Policy Implications 18
References 19
Determinants of External Debt: The Case of Malaysia 22
1 Introduction 22
2 Literature Review 25
3 Model and Data 26
4 Methodology and Empirical Findings 28
4.1 Descriptive Statistics 28
4.2 Unit Root and Stationary Test Results 28
4.3 Cointegration Results 30
4.4 Vector Error Correction Model Results 32
4.5 Granger Causality Test Results 33
5 Conclusion 34
References 34
Asset Allocation, Capital Structure, Theory of the Firm and Banking Performance: A Panel Analysis 40
1 Introduction 40
2 Literature Review 43
3 The Suggested Model 48
3.1 Variables Used 48
3.2 Objective Function 49
3.3 Constraints 49
3.3.1 Definitional Constraints 50
3.3.2 Legal Reserve Ratio Constraint 50
3.3.3 Legal Liquidity Ratio Constraint 50
3.3.4 Capital Adequacy Constraints 50
3.3.5 Maximum Lending Constraint 50
3.4 Algorithm 50
3.4.1 Determining W5* and W8* 50
3.4.2 Determining W11* 51
3.4.3 Determining W1*, W2*, W3*, W4*, W6* and W7* 51
3.5 Optimality Index of Bank Financial Structure 51
3.5.1 Calculating Optimality of Assets (OA) 51
3.5.2 Calculating Optimality of Liabilities (OL) 52
3.5.3 Calculating Optimality Index (OI) 52
4 Testing Hypotheses 52
5 Summary and Concluded Remarks 54
References 54
Does Research and Development Expenditure Impact High-Technology Export in Turkey: Evidence from ARDL Model 58
1 Introduction 58
2 Literature Review 60
3 Data and Methodology 61
3.1 Data 61
3.2 Methodology 62
4 Empirical Results 63
5 Conclusion 66
References 67
The Cyclicality of Allowance for Impairment Losses in Indonesia 68
1 Introduction 68
2 Literatures Review 69
2.1 Procyclicality of Loan Loss Provisioning 69
2.2 Accounting Standards that Support Expected Credit Loss Provisioning 70
2.3 Loan Loss Provisioning in Indonesia 71
3 Data and Methodology 73
3.1 Methodology 73
3.2 Data 74
4 Estimations Results 76
4.1 Estimation Result for Generalized Least Squares (GLS) Estimator 76
4.2 Estimation Result for Generalized Method of Moments (GMM) Estimator 77
5 Conclusion and Policy Recommendation 83
References 83
Evalution of FDI in CE, SEE and Kosovo in Relation to Growth Rates and Other Indicators 85
1 Introduction 85
2 The Role of FDI in Economic Growth Discussions and Empirical Debates 87
2.1 Relations with Economic Growth, FDI and Domestic Investment 88
3 Study Methodology 89
4 Theoretical and Empirical Model 90
5 Results of the Study 92
5.1 The Final Results at the Rate of GDP per capita—Dependent 95
5.2 Solution of the Second Hypothesis Dependent FDI 97
5.3 Unilateral Effect of FDI and Economic Growth 99
6 Conclusion and Recommendations 99
Appendix 101
References 118
Forecasting Economic Activity of East Asia Through the Yield Curve (Predicting East Asia’s Economic Growth and Recession) 121
1 Introduction 121
1.1 Background 122
2 Literature Review 123
2.1 Study Area 124
3 Methodology 124
3.1 Model Specifications 124
3.2 Further Specifications 125
3.3 Data Collection and Analysis 126
4 Forecasting Results 127
4.1 Descriptive Statistics 127
4.2 Time Series Properties of Data 128
4.3 Future GDP Growth Trend Predicted by the Term Spread 131
4.4 Ordinary Least Square Estimation Results Using Optimum Lag Length Selection 133
5 Conclusion Remarks and Future Research 133
Appendix 134
References 137
Risk Information of Stock Market Using Quantum Potential Constraints 138
1 Introduction 138
2 A Review on Quantum Potentials 139
3 Data Description and Analysis 139
4 Application of the Quantum Potential Method to the Financial Markets 140
5 Conclusions 143
References 144
Migration Influence on Human Capital Under Globalization 145
1 Introduction 145
1.1 The Degree of Scientific Development of the Issue 145
1.2 The Aim of the Article 145
1.3 Statement of Basic Materials 146
2 Relevant Studies 146
References 160
Destination Marketing and Tourism Entrepreneurship in Ghana 161
1 Introduction 161
2 Visitors’ Attraction 162
3 Future Direction of Tourism 163
3.1 Entrepreneurship 164
3.2 Digital Word of Mouth 164
4 Literature Review 165
5 Methodology 167
6 Measurement 168
7 Main Results 169
8 Hypothesis Testing 169
9 Discussion 175
10 Managerial Implications 176
11 Limitation and Futuristic Study 177
References 177
Assessing the Factors Militating Against Microfinance in Alleviating Chronic Poverty and Food Insecurity in Rural Northern Ghana 187
1 Introduction 187
1.1 Statement of the Problem 188
1.2 Research Objectives 189
2 Literature Review 189
2.1 Overview of the Microfinance Sector in Ghana and Government Policies 190
2.2 The Indigenes of Northern Ghana and Their Livelihood Roles 192
3 Methodology 194
3.1 Sample Procedure 194
3.2 Research Design 195
4 Findings 195
5 Conclusions 200
References 201
Improving the Mobile Payment Experience and Removing the Barriers 205
1 Introduction 205
2 Mobile Payments 206
2.1 Mobile Payments: A Short Introduction and Definition of Terms 206
2.2 Mobile Wallets: State of the Art 207
2.3 Alternative Mobile Payment Solutions 207
3 Barriers and Frictions in Mobile Wallet Experience 208
4 Improving Mobile Payment Experience 211
4.1 Pay by Your Bank: A New Mobile Payment Approach 211
4.2 Pay by Your Bank: User Experience and Payment Flow 212
4.3 Pay by Your Bank: Advantages for Customers, Merchants and Banks 212
5 Conclusion and Future Work 214
References 214
Financial Sector-Based Analysis of the G20 Economies Using the Integrated Decision-Making Approach with DEMATEL and TOPSIS 216
1 Introduction 216
2 Literature Review 217
3 Methodology 217
3.1 DEMATEL 217
3.2 TOPSIS 219
4 An Application on the G20 Economies 220
5 Discussion and Conclusions 222
References 227
Due Diligence for Bank M& A’s: Case from Turkey
1 Introduction 230
2 Literature Review 231
2.1 Hypothesis in Bank M& A’s
2.2 Success of M& As
3 The M& A’s in Turkey Banking Sector
3.1 Bank M& A’s 2001–2011 Period in Turkey
3.2 2017 Figures for M& A’s in Turkey
3.3 Problems in M& A for 2017
4 Due Diligence 236
4.1 M& A Value with Due Diligence
4.2 Bank Due Diligence Check List 237
4.3 Analysis of the Departments in a Bank 238
4.4 Due Diligence Example from Turkey 239
4.4.1 Valuation of the Investments 239
4.4.2 Commercial Banking 239
4.4.3 Retail Banking 240
4.4.4 Accounting in General 241
4.4.5 Non-current Assets 241
4.4.6 Subsidiaries 242
4.4.7 Law Department 242
4.4.8 MIS 242
4.4.9 Human Resources 242
4.4.10 Operations 243
5 Conclusion and Future Dimensions 244
References 245
International Insurance Industry and Systemic Risk 247
1 Introduction 247
2 Literature Review 247
3 Econometric Analysis and the Findings 249
3.1 Methodology 249
3.2 Data Set 250
3.3 Findings 250
4 Conclusion 254
References 254
Bounds of Macrofinance and the Quality of Credit Portfolio in Emerging Economies 256
1 Introduction 256
2 Literature Review 257
3 3 Econometric Analysis 258
3.1 Methodology: Panel VAR Models 258
3.2 Data Set 259
3.3 Empirical Findings 260
4 Results 264
Annex 264
References 265
Profitability Determinants of Islamic and Conventional Banks During the Global Financial Crises: The Case of Emerging Markets 267
1 Introduction 267
2 Literature Review 268
2.1 Islamic Banks 268
3 Methodology 270
4 Empirical Analysis and Results 272
4.1 Correlation Analysis 272
4.2 Regression Analysis 275
4.3 General Model Regression Analysis of All Banks 275
4.4 Specific Model Regression Analysis of Islamic and Conventional Banks 277
5 Conclusion 278
References 279