Economic Sustainability Through Disclosure: Knowledge Management, Reporting Quality, and Corporate Performance in the Arab Gulf Region

This study examines the impact of electronic payment system on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are mobile banking, quick response code payment, automated teller machine, digital wallet, credit cards and point of sales. The study is based on primary and secondary data of 8 commercial banks with 130 respondents. To achieve the purpose of the study, structured questionnaire is prepared. Secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of electronic payment system on the profitability of Nepalese commercial banks. The study showed that mobile banking has a positive relationship with return on assets and return on equity. It indicates that better the mobile banking services provided by banks, higher would be the return on assets and return on equity. Similarly, QR payment has a positive relationship with return on assets and return on equity. It indicates that more the payment through QR payment services, higher would be the return on assets and return on equity. Likewise, ATM banking has a positive relationship with return on assets and return on equity. It indicates that better the ATM services provided by the banks, higher would be the return on assets and return on equity. Further, digital wallet has a positive relationship with return on assets and return on equity. It indicates that higher the practices of digital wallet banking, higher would be the return on assets and return on equity. In addition, credit card has a positive relationship with return on assets and return on equity. It indicates that higher the number of payments through credit card, higher would be the return on assets and return on equity. Moreover, POS banking has a positive relationship with return on assets and return on equity. It indicates that practice of point of sales banking leads to increase in return on assets and return on equity.

This study examines the impact of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non-performing loans, capital adequacy ratio, net interest margin, loan-to-deposit ratio, debt to equity ratio, and bank size. The study is based on secondary data of 15 commercial banks with 105 observations for the study period from 2015/16 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, capital adequacy ratio has a negative impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to decrease in return on assets and return on equity. Likewise, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In contrast, loan-to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan-to-deposit ratio, lower would be the return on assets and return on equity. In addition, debt-to-equity ratio has a negative impact on return on assets and return on equity. It indicates that increase in debt-to-equity ratio leads to decrease in return on assets and return on equity. Moreover, bank size has a positive impact on return on assets and return on equity. It indicates that larger the bank size, higher would be the return on assets and return on equity.

This study examines the effect of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are bank size, operating efficiency, net interest margin, non-performing loan, capital adequacy ratio, and loan-to-deposit ratio. The study is based on secondary data of 12 commercial banks with 108 observations for the study period from 2014/15 to 2022/23. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets. It indicates that higher the non-performing loans, lower would be the return on assets. In contrast, non-performing loan has a positive impact on return on equity. It indicates that increase in non-performing loan leads to increase in return on equity. Similarly, capital adequacy ratio has a positive impact on return on assets. It indicates that higher the capital adequacy ratio, higher would be the return on assets. However, capital adequacy ratio has a negative impact on return on equity. It indicates that higher the capital adequacy ratio, lower would be the return on equity. Further, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In addition, loan to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan to deposit ratio, lower would be the return on assets and return on equity. Similarly, operating efficiency has a negative impact on return on assets. It indicates that higher the operating efficiency, lower would be the return on assets. In contrast, operating efficiency has a positive impact on return on equity. It indicates that increase in operating efficiency leads to increase in return on equity. In addition, bank size has a negative impact on return on assets and return on equity. It indicates that larger the bank size, lower would be the return on assets and return on equity.

PurposeThis study aims to explore the extent of risk disclosure (RD) among conventional banks (CBs) and Islamic banks (IBs) listed on stock markets in the Gulf cooperation council (GCC). It also examines the influence of RD on the banks’ financial performance as measured by return on assets (ROA) and return on equity (ROE).Design/methodology/approachThis study uses content analysis to examine RD in the annual reports of 16 CBs and 14 IBs in the GCC for a sample of 240 firm-year observations over the period 2007 to 2014.FindingsThe study shows no significant differences between the RD reported in the annual reports of CBs and that of IBs. On average, a CB reported 234 sentences while an IB disclosed 244 sentences of RD in its annual report. The authors also find that both types of banks had an upward trend over the periods. While the means of RD reported by CBs have significantly improved over the period, the RD reported by IBs has not. Similar results are also found when the authors compared the RD pre- and post-financial crisis period. Finally, the authors find that there is a significant association between RD and both models of financial performance (ROA and ROE) for IBs, after controlling other variables. However, RD has a significant association with only ROE for CBs.Research limitations/implicationsThe bank selection was restricted to publicly traded banks in the GCC. Other financial institutions and different types of industries were not considered. Further research could determine whether the results obtained in this study could be generalized to different industries in the GCC and or in other countries.Practical implicationsThis study provides evidence on the significant association between RD and the financial performance of CBs and IBs in GCC countries. This study could be helpful to regulatory authorities in encouraging banks to adopt the best practice of RD and thus promote banks’ transparency.Originality/valueThis is the first known study to examine the RD practices of both types of banks and their association with banks’ financial performance in five-GCC countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Bahrain), based on a longitudinal analysis of year-end annual reports, covering eight years period from 2007 to 2014.

Purpose – This study aims to explore the extent of risk disclosure (RD) among conventional banks (CBs) and Islamic banks (IBs) listed on stock markets in the Gulf cooperation council (GCC). It also examines the influence of RD on the banks’ financial performance as measured by return on assets (ROA) and return on equity (ROE). Design/methodology/approach – This study uses content analysis to examine RD in the annual reports of 16 CBs and 14 IBs in the GCC for a sample of 240 firm-year observations over the period 2007 to 2014. Findings – The study shows no significant differences between the RD reported in the annual reports of CBs and that of IBs. On average, a CB reported 234 sentences while an IB disclosed 244 sentences of RD in its annual report. The authors also find that both types of banks had an upward trend over the periods. While the means of RD reported by CBs have significantly improved over the period, the RD reported by IBs has not. Similar results are also found when the authors compared the RD pre- and post-financial crisis period. Finally, the authors find that there is a significant association between RD and both models of financial performance (ROA and ROE) for IBs, after controlling other variables. However, RD has a significant association with only ROE for CBs. Research limitations/implications – The bank selection was restricted to publicly traded banks in the GCC. Other financial institutions and different types of industries were not considered. Further research could determine whether the results obtained in this study could be generalized to different industries in the GCC and or in other countries. Practical implications – This study provides evidence on the significant association between RD and the financial performance of CBs and IBs in GCC countries. This study could be helpful to regulatory authorities in encouraging banks to adopt the best practice of RD and thus promote banks’ transparency. Originality/value – This is the first known study to examine the RD practices of both types of banks and their association with banks’ financial performance in five-GCC countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Bahrain), based on a longitudinal analysis of year-end annual reports, covering eight years period from 2007 to 2014.

This study examines the effects of accounting information system on organization profitability in Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non performing loan (NPL), loan loss provision (LLP), capital adequacy ratio (CAR), credit to deposit rate (CRR) and bank size (BS). The study is based on secondary data of 15 commercial banks with 120 observations for the study period from 2014/15 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of effects of accounting information system on organizational profitability in Nepalese commercial banks. The study shows that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, credit to deposit ratio has a negative impact on return on assets and return on equity. It indicates that increase in credit to deposit ratio leads to decrease in return on assets and return on equity. Likewise, loan loss provision has a negative impact on return on assets and return on equity. It indicates that increase in loan loss provision leads to decrease in return on assets and return on equity. However, capital adequacy ratio has a positive impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to increase in return on assets and return on equity. Further, bank size has a negative impact on return on assets and return on equity. It indicates that increase in bank size leads to decrease in return on assets and return on equity.

This study examines the determinants of profitability in Nepalese insurance companies. Return on assets (ROA) and return on equity (ROE) are the dependent variables. The selected independent variables are firm size, liquidity, tangibility, firm age, premium growth and total capital. The study is based on secondary data of 27 insurance companies with 108 observations for the study period from 2018/19 to 2021/22. The data were collected from the annual reports of selected Nepalese insurance companies. The regression models are estimated to test the significance and effect of firm specific factors on the profitability of Nepalese insurance companies. The study showed that liquidity ratio has a negative impact on return on assets and return on equity. It means that increase in liquidity ratio leads to decrease in return on assets and return on equity. In contrast, assets tangibility has a positive impact on return on assets and return on equity. It shows that higher the assets tangibility, higher would be the return on assets and return on equity. Similarly, firm age has a positive impact on return on assets and return on equity. It means that increase in firm age leads to increase in return on assets and return on equity. Furthermore, premium growth has a positive impact on return on equity. It means that higher the premium growth, higher would be the return on equity. In addition, total capital has the positive impact on return on assets. It indicates that higher the total capital, higher would be the return on assets and return on equity.

This study examines the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the dependable variables. The independent variables are succession planning, training and development, employee motivation, organizational culture and employee empathy. The study used primary and secondary sources of data. The primary source of data is used to assess the opinions of the respondents regarding the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study is based on primary data of 131 respondents. The secondary source of data is collected from 27 Nepalese commercial banks for the period from 2014/15 to 2020/21. The data are collected from Economic Survey published by Ministry of Finance, Quarterly Economic Bulletin published by Nepal Rastra Bank and annual report of NRB supervision and economic bulletin of World Bank. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study showed that succession planning has a positive impact on return on assets and return on equity. It indicates that increase in succession planning leads to increase on return on assets and return on equity. Likewise, training and development has a positive impact on return on assets and return on equity. It indicates that increase in training and development facilities leads to increase on return on assets and return on equity. Similarly, employee motivation has a positive impact in performance. It means that fair employee motivation in the organization leads to increase on return on assets and return on equity. Moreover, organizational culture has a positive impact on return on assets and return on equity. It indicates that better the organizational culture, higher would be return on assets and return on equity. In addition, employee empathy has a positive impact in performance. It reveals that higher the employee empathy, higher would be the return on assets and return on equity.

Abstract. The purpose of this research isto determine the effect ofReturn On Asset (ROA), Return In Equity (ROE) and firm size towards Corporate Social Responsibility Disclosure. This research use companies listed on the Indonesian Stock Exchange (IDX) and Stock Exchange of Thailand (SET) period 2011 – 2017. Sampling method used in this research was purposive sampling.Samples collected in this research are 21 companies consists of 13 Indonesian companies and 8 Thailand companies. The method of analysis in this research is multiple regression analysis with technique analysis descriptive statistics. The result of hypothesis as follows. First, Return On Asset (ROA), Return On Equity (ROE) and firm size in simultan has an effect on Corporate Social Responsibility Disclosure in BEI and in SET. Second, Return On Asset (ROA) has an effect an effect on Corporate Social Responsibility Disclosure in BEI. Third, Return On Asset (ROA) has an effect an effect on Corporate Social Responsibility Disclosure in SET. Fourth, Return On Equity (ROE) has an effect an effect on Corporate Social Responsibility Disclosure in BEI. Fifth, Return On Equity (ROE) has an effect an effect on Corporate Social Responsibility Disclosure in SET . Sixth, firm size has no an effect an effect on Corporate Social Responsibility Disclosure in BEI. Seventh, firm size has no an effect an effect on Corporate Social Responsibility Disclosure in SET. Keywords. Corporate Social Responsibility Disclosure; ROA; ROE and Firm Size.Abstrak. Tujuan Penelitian ini adalah untuk mengetahui pengaruh Return On Asset (ROA), Return On Equity (ROE) dan ukuran perusahaan terhadap Corporate Social Responsibility Disclosure.Penelitian ini menggunakan perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) dan Stock Exchange Of Thailand (SET) periode 2011 – 2017. Teknik sampling yang digunakan adalah purposive sampling. Sampel yang digunakan dalam penelitian ini berjumlah 21 perusahaan terdiri dari 13 perusahaan Indonesia dan 8 perusahaan Thailand. Teknik analisis data dalam penelitian ini adalah analisis regresi linear berganda. Hasil pengujian hipotesis sebagai berikut. Pertama, Return On Asset (ROA), Return On Equity (ROE) dan ukuran perusahaan secara simultan berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI dan SET. Kedua, Return On Asset (ROA) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Ketiga, Return On Asset (ROA) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET. Keempat, Return On Equity (ROE) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Kelima, Return On Equity (ROE) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET. Keenam, ukuran perusahaan tidak berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Ketujuh, ukuran perusahaan berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET.Kata kunci. Corporate Social Responsibility Disclosure; ROA; ROE dan Ukuran Perusahaan.

The current study examines the financial performance of 19 Islamic financial institutions (IFIs) in five GCC countries, namely the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, and Kuwait. Return on assets (ROA) and return on equity (ROE) were examined in the period ranging from 2006 to 2016. Micro and macro variables are used as independent variables. Some financial indicators such as size, assets management, and financial risk are used as independent variables to predict the dependent variables, namely, ROE and ROA. Multiple linear regression analysis was applied. The global financial crisis 2007/2008 has affected negatively these IFIs systems not only from 2007 until 2009 but also in 2010 and 2011 at a small scale. The predicted values were compared to the real values of ROE and ROA in the period 2007-2011. Results showed that the effect of the global financial crisis occurs in terms of lower ROE and ROA values than predicted by the model. The results of the current study are very beneficial for policy-makers and regulators who are interested in Islamic finance industry.

This study empirically analyzes bank-level and macroeconomic factors that have impact on the capital adequacy ratio (CAR) of the full-fledged Islamic banks in the Gulf Cooperation Council (GCC) and how they influence the banks’ capitalization decisions. This study covers a six years period ranging from 2013 to 2018. CAR ratio is a key stability indicator that measures the capability of banks to absorb unforeseen losses. To conduct the analysis, secondary data gathered from the annual financial reports of the banks as well from international economic database are used. Using multiple linear regression model, the effect of return on assets (ROA), return on equity (ROE), financing to deposit ratio (FDR), operating expense to operating income (OEOI), bank size (SIZE), non-performing financing (NPF) as bank-specific explanatory variables and economic growth (GDP) and inflation (INF) as a proxy for macroeconomic explanatory variables on the CAR of the banks are studied. Due to multicollinearity issues, ROA is dropped. As a result of the regression analysis, OEO and FDR are observed to positively and strongly impact CAR of the examined banks while SIZE is found to have negative and significant effect. ROE, NPF, GDP and INF demonstrated insignificant influences on the banks’ CAR. This study reveals varying and significant under and over regulatory capitalization decisions across the banks. Additionally, extreme expenditures and financial losses suffered by some banks are also discovered.

The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments. The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments.

This research is conducted to know the influence of Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), BOPO, Capital Adequacy Ratio (CAR) to Return on Asset (ROA) and Return on Equity (ROE ) listed on the Indonesia Stock Exchange (IDX) since 2012 until 2016. The data used in this study is obtained from the Financial Statements of Banking Companies Listed on the Stock Exchange for the period of 2012-2016 issued by Bank Indonesia (BI) and the Financial Services Authority (OJK). After passing through the purposive sample stage, then the data is worthy of use as many as 28 Banking Companies taken in the observation of 5 years with the number of 140 samples. To answer the hypothesis proposed in this research, data is analyzed using Path Analysis with AMOS program. The result of research indicate that Non Performing Loan have negative and significant effect to Return on Asset and Return on Equity, Loan to Deposit Ratio have positive and significant effect to Return on Asset and Return on Equity, Net Interest Margin have positive and significant effect to Return on Asset and Return on Equity, BOPO have a negative and significant effect on Return on Asset and Return on Equity, and Capital Adequacy Ratio have positive and significant effect on Return on Asset and Return on Equity. Banking is expected to reduce the level of Non Performing Loan (NPL), optimize the level of Loan to Deposit Ratio (LDR), calculate the cost of funds carefully so as to obtain Net Interest Margin (NIM) optimal, able to suppress the amount of BOPO and pay attention to the provisions given Bank Indonesia related capital adequacy ratio (CAR), so as to increase Return on Asset (ROA0 and Return on Equity (ROE).

The research objective of the study is to investigate the determinants of profitability of banks’ operating in GCC (Gulf Cooperation Council) countries. The existing studies highlight the banks’ internal attributes and external factors that significantly influence profitability. The unbalanced panel data of 59 banks from the Bank scope database operating in six countries of GCC is used. Profitability is measured as return on assets (ROA) and return on equity (ROE) that have been used as dependent variables. Pooled OLS, fixed and random effects estimations are employed to explore the effect of explanatory variables internal factors, i.e. bank size, capital adequacy, asset quality, deposits ratio, asset management, operating efficiency and financial risk, and external factors, namely macroeconomic variables, GDP growth rate and inflation rate on dependent variables. Bank size and GDP growth have a significant and positive association with ROA. While Bank size and asset management have significant and positive impact, capital adequacy, financial risk, operating efficiency, and asset quality have a negative and significant impact on ROE. Fixed effects results are used for interpretation based on the Hausman test.

Purpose Intellectual capital (IC) plays a pivotal role in the high-tech and knowledge-based economic sectors. With the emergence of FinTech, which, with respect to the banking sector, is merging high-tech with the k-economy, there is an emerging need to highlight the importance and understand the dynamics of bank IC. With respect to Gulf Cooperation Council (GCC) economies, where FinTech has become de rigueur, banking is bifurcated into Islamic and banking sectors. Through comparative empirical analysis, the purpose of this paper is to examine IC efficiency in Islamic and conventional banks with a view to elucidating the impact of IC, in aggregate and decomposed into its components, on an operational, financial and market performance of Islamic banks juxtaposed with conventional banks. Design/methodology/approach Using data collected from 59 banks for five years (2012-2016) involving 295 observations, an independent variable derived from the modified value added IC (MVAIC) components are regressed against dependent bank performance indicator variables [Return on Assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: bank-specific and macroeconomic. Findings The findings elicited from the empirical results demonstrate that there is positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. In conventional banks, however, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE). Originality/value The model in this paper presents a valuable analytical framework for exploring IC efficiency as a driver of performance in dual-sector banking economies characterized by co-existence of Islamic and conventional financial institutions. In addition, this paper highlights bank management lacunae manifesting in terms of the weak nexus between: IC and asset efficiency (ROA) in Islamic banks and IC and market value (TQ) in conventional banks.