Bank Report Research Articles

Rhetorical strategies in the climate change disclosures of Bangladeshi banking companies

PurposeThe main objective of this article is to explore the rhetorical persuasive strategies in the climate change-related disclosures of the annual reports of Bangladeshi banking companies.Design/methodology/approachTo fulfil this objective, content and rhetorical analyses are conducted on the climate change-related disclosures in the annual reports of Bangladeshi banks. The analysis is interpreted with the help of Aristotle’s rhetorical appeals (ethos, logos and pathos).FindingsEvidence suggests that Bangladeshi banks disclose climate change-related issues in annual reports. These issues include demonstrating a genuine concern for climate change and exhibiting commitment to green finance and investment, paper and energy conservation, tree plantation, biodiversity and climate change risk funds. They also underscore challenges linked to carbon emissions, air pollution, and natural disasters. These disclosures are persuasive, and rhetorical strategies such as ethos, logos, and pathos are evident. However, the disclosures lacked consistency and comparability because of the absence of reporting regulations and a prescribed framework.Practical implicationsThis study informs managers and policymakers about climate change disclosures in Bangladesh, particularly within the banking industry. The research suggests the need for improved reporting consistency and comparability, potentially achieved through standardised climate change reporting guidelines and mandatory requirements.Originality/valueThis paper’s uniqueness lies in its application of Aristotle’s rhetorical triangle to enhance our understanding of how banking companies in a developing economy strategically employ climate change-related disclosures to influence readers. Rhetorical analysis is limitedly used by accounting scholars in analysing corporate climate-change disclosures.

Determinants of Corporate Social Responsibility in Nepalese Commercial Banks

The study attempts to examine the determinants of corporate social responsibility in Nepalese commercial banks. Corporate social responsibilities (CSR) is the dependent variable and the selected independent variables are return on assets (ROA), return on equity (ROE), bank age (BA), bank size (BS) and liquidity. The study is based on primary as well as secondary data. The primary data consists of questionnaires to 125 respondents from 18 commercial banks. The secondary data includes the observations from 18 commercial banks for the period of 2014/15 to 2020/21. The secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and the annual report of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of ROA, ROE, BA, BS and liquidity on determining CSR activities in Nepalese commercial banks. The result showed that ROA has a positive impact on CSR of Nepalese commercial banks. It indicates that increase in ROA of bank would leads to increase in CSR activites. Likewise, the results also showed that ROE has a positive impact on CSR. It means that higher the ROE, higher would be the CSR related activities. Similarly, the study also found that bank size is positively related to the bank CSR. This indicates that the larger the bank size, greater would be the CSR of such banks. Moreover, bank age also has a positive impact on CSR. It suggests that older banks are likely to perform greater CSR activities than newer banks. In addition, the study showed that liquidity has a negative impact on CSR. This means that higher the level of liquidity in the banks, lower would be the CSR activities of Nepalese commercial banks. The study revealed that the most dominant factor that determines the CSR is liquidity followed by ROE in the context of Nepalese commercial banks.

Corporate Governance and Liquidity Risk of Nepalese Commercial Banks

This study examines the relationship between corporate governance and liquidity risk in Nepalese commercial banks. Cash reserve ratio and credit to deposit ratio are selected as the dependent variables. Similarly, board size, independent directors, female directors, leverage ratio, audit committee and total assets are selected as the independent variables. This study is based on secondary data of 18 commercial banks with 108 observations for the study period from 2016/17 to 2021/22. The data were collected from Banking and Financial statistics published by Nepal Rastra bank and the annual reports of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of corporate governance on the level of liquidity risk in Nepalese commercial Banks. The study revealed that board size has a positive impact on cash reserve ratio and credit to deposit ratio. It means that increase in board size leads to increase in cash reserve ratio and credit to deposit ratio. Similarly, independent director has a positive impact on cash reserve ratio. It indicates that increase in independent director leads to increase in cash reserve ratio. Likewise, independent director has a negative impact on credit to deposit ratio. It indicates that increase in independent director leads to decrease in credit to deposit ratio. Further, female directors have a negative impact on cash reserve ratio. It shows that higher the female directors, lower would be the cash reserve ratio. In addition, female directors have a positive impact on credit to deposit ratio. It shows that higher the female directors, higher would be the credit to deposit ratio. Likewise, leverage ratio has a positive impact on cash reserve ratio. It shows that higher the leverage ratio, higher would be the cash reserve ratio. Similarly, leverage ratio has a negative impact on credit to deposit ratio. It shows that higher the leverage ratio, lower would be the credit to deposit ratio. Moreover, this study showed audit committee has a negative impact on cash reserve ratio and credit to deposit ratio. It means that increase in audit committee leads to decrease in cash reserve ratio and credit to deposit ratio. Likewise, total assets have a positive impact on cash reserve ratio. It shows that larger the total assets, higher would be the cash reserve ratio. On the other hand, total assets have a negative impact on credit to deposit ratio. It shows that larger the total assets, lower would be the credit to deposit ratio.

Corporate Governance Mechanisms and Financial Reporting Quality of Nepalese Commercial Banks

The study examines the effect of corporate governance mechanism on financial reporting quality of Nepalese commercial banks. Audit delay and accruals are selected as the dependent variables. Likewise, board size, audit committee, foreign ownership, board independence, number of board meeting and female board director are selected as the independent variables. The study is based on secondary data of 17 commercial banks with 101 observations for the study period from 2016/17 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual report of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of corporate governance mechanisms on financial reporting quality in the context of Nepalese commercial banks. The study showed that board size has a negative impact on audit delay and accruals. It means that increase in board size leads to decrease in audit delay and accruals. Similarly, female board member has a negative impact on audit delay and accruals. It means that increase in gender board diversity leads to decrease in audit delay and accruals. Moreover, number of independent directors has a negative impact on audit delay and accruals. It shows that increase in number of independent directors leads to decrease in audit delay and accruals. Furthermore, audit committee has a negative impact on audit delay and accruals. It indicates that increase in audit committee size leads to decrease in audit delay and accruals. Likewise, number of board meetings, lower would be the audit delay and accruals. In addition, foreign ownership has a positive impact on audit delay and accruals. It shows that higher the proportion of foreign ownership, higher would be the audit delay and accruals.

Impact of Earnings and Cash Flow on Stock Return: A Case of Nepalese Commercial Banks

This study examines the impact of earnings and cash flow on stock return in the context of Nepalese commercial banks. Stock return and market price per share are selected as the dependent variables. The selected independent variables are net income, total equity, earnings per share, return on equity, cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. The study is based on secondary data of 10 commercial banks with 100 observations for the period from 2012/13 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 earnings and cash flow on stock return in the context of Nepalese commercial banks. The study showed that return on equity has a positive effect on stock return and market price per share. It indicates that higher the return on equity, higher would be the stock return and market price per share. Similarly, total equity has a positive effect on stock return. It implies that increase in total equity, leads to increase in stock return. Moreover, net income has a positive effect on market price per share. It means that increase in net income leads to increase in market price per share. Similarly, the result also showed that there is a negative impact of cash flow from investing activities on stock return and market price per share. It indicates that increase in cash flow from investing activities leads to decrease in stock return and market price per share. Furthermore, there is a negative impact of cash flow from financing activities on stock return and market price per share. It indicates that increase in cash flow from financing activities leads to decrease in stock return and market price per share.

Impact of Operating Efficiency on Profitability of Nepalese Commercial Banks

The study examines the effect of operating efficiency on the profitability of Nepalese commercial banks. Return on assets and return on equity are selected as the dependent variables. The selected independent variables are capital adequacy ratio, operating expenses, net interest income, leverage, loan to deposit ratio and bank size. The study is based on secondary data of 16 commercial banks with 112 observations for the period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, publications and websites of 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 operating efficiency on the profitability of Nepalese commercial banks. The study showed that capital adequacy ratio has a positive impact on return on assets and return on equity. It means that increase in capital adequacy ratio leads to increase in return on assets and return on equity. Similarly, operating expenses has a negative impact on return on assets and return on equity. It means that increase in operating expenses leads to decrease in return on assets and return on equity. Further, the study showed that net interest income has a positive impact on return on assets and return on equity. It means that increase in net interest income leads to increase in return on assets and return on equity. Likewise, leverage has a negative impact on return on assets. It means that increase in leverage ratio leads to decrease in return on asset. Furthermore, loan to deposit ratio has a negative impact on return on asset and return on equity. It indicates that increase in loan to deposit ratio leads to decrease in return on asset and return on equity. In addition, bank size has a negative impact on return on assets and return on equity. It shows that larger the bank size, lower would be the return on assets and return on equity.

The Effect of Corporate Governance Attributes on Risk Management Practices of Nepalese Commercial Banks

The study examines the effect of corporate governance attributes on risk management practices of Nepalese commercial banks. Non-performing loan and operational risk are selected as the dependent variables. The selected independent variables are board size, board diversity, audit committee, risk management committee, board meetings, and leverage. The study is based on secondary data of 15 commercial banks with 105 observations for the period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, publications and websites of 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 corporate governance on the risk management practices of Nepalese commercial banks. The study showed that risk management committee has a negative impact on non-performing loan and operational risk. It implies that increase in number of directors in risk management committee leads to decrease in non-performing loan and operational risk. Similarly, audit committee size has a negative impact on non-performing loan and operational risk. It implies that increase in audit committee size leads to decrease in non-performing loan and operational risk. However, leverage ratio has a positive impact on operational risk. It means that increase in leverage ratio leads to increase in operational risk. Similarly, board meeting has a positive impact on non-performing loan and operational risk. It shows that increase in board meeting leads to increase in non-performing loan and operational risk. Similarly, board diversity has a positive impact on non-performing loan and operational risk. It implies that increase in female board directors leads to increase in non-performing loan and operational risk.

Impact of Firm Size and Capital Structure on the Profitability of Nepalese Commercial Banks

The study examines the impact of firm size and capital structure on the profitability of Nepalese commercial banks. Return on equity and return on assets are selected as the dependent variables. The selected independent variables are debt to equity ratio, debt to assets ratio, capital adequacy ratio, loan to deposits ratio, assets tangibility and firm size. The study is based on secondary data of 13 commercial banks with 104 observations for the period from 2014/15 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, publications and websites of 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 firm size and capital structure on the profitability of Nepalese commercial banks. The study showed that capital adequacy ratio has a positive impact on return on assets. It means that increase in capital adequacy ratio leads to increase in return on assets. Likewise, debt to equity ratio has a negative impact on return on assets and return on equity. It means that increase in debt-to-equity ratio leads to decrease in return on assets and return on equity. Further, this study showed that assets tangibility has a positive impact on return on assets and return on equity. It means that increase in assets tangibility leads to increase in return on assets and return on equity. Moreover, firm size has a positive impact on return on equity. It indicates that increase in firm size leads to increase in return on equity. Similarly, debt to assets ratio has a positive impact on return on equity. It means that increase in debt to assets ratio leads to increase in return on equity.

Impact of merger and acquisition on the performance of Nepalese commercial banks

This study examines the impact of merger and acquisition on the performance of Nepalese commercial banks. Gross profit margin and operating profit margin are selected as the dependent variables. The selected independent variables are return on assets, return on equity, non- performing loans, debt to equity ratio and return on operating expenses. The study is based on secondary data of 13 commercial banks with 106 observations for the period from 2010/11 to 2019/20. The data were collected from Banking and Financial Statistics, Quarterly Economic Bulletin 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 merger and acquisition on the performance of Nepalese commercial banks. The study showed that return on assets and return on equity have positive impact on gross profit margin and operating profit margin of Nepalese commercial banks after the merger. It indicates that increase in return on equity leads to increase in gross profit margin and operating profit margin. Likewise, it also implies that higher the return on assets, higher would be the gross profit margin and operating profit margin. Likewise, non-performing loans have a negative impact on gross profit margin and operating profit margin indicating that increase in the non-performing loans leads to decrease in gross profit margin and operating profit margin. Moreover, debt to equity ratio and return on operating expenses have positive impact on gross profit margin and operating profit margin. It means that increase in the debt to equity ratio leads to increase in gross profit margin and operating profit margin. In addition, increase in return on operating expenses leads to increase in gross profit margin and operating profit margin in the context of Nepalese commercial banks after the merger.

Impact of Corporate Governance on Social Responsibility: A Case of Nepalese Commercial Banks

This study examines the impact of corporate governance on social responsibility in the context of Nepalese commercial banks. Legal corporate social responsibility and philanthropic corporate social responsibility are selected as the dependent variables. The selected independent variables are board size, independent directors, audit committee size, female directors, foreign ownership, and government ownership. The study is based on secondary data of 15 commercial banks with 105 observations for the period from 2015/16 to 2021/22. The 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 corporate governance on social responsibility in the context of Nepalese commercial banks. The study showed that board size has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that larger the board size, higher would be the legal corporate social responsibility and philanthropic corporate social responsibility. Similarly, independent directors has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in independent directors on the board leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. Likewise, audit committee size has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in audit committee size leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. Further, female directors has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in female directors leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. In addition, foreign ownership has a negative impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that higher the foreign ownership, lower would be the legal corporate social responsibility and philanthropic corporate social responsibility. Likewise, government ownership has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that higher the government ownership, higher would be the legal corporate social responsibility and philanthropic corporate social responsibility.

Impact of Corporate Governance on Market Price of Share and Stock Return in Nepalese Commercial Banks

This study examines the effect of corporate governance attributes on market price of share and stock return in Nepalese commercial banks. The dependent variables are market price of share and stock return. Similarly, the independent variables are company size, board size, board diversity, audit committee, non-performing loans, profitability and leverage. The study is based on secondary data of 15 commercial banks with 105 observations for the period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, publications and websites of 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 corporate governance on the market price of share and stock return of Nepalese commercial banks. The study showed that audit committee size has a positive effect on stock return. It means that increase in audit committee size leads to increase in stock return. However, leverage ratio has a negative effect on stock return. It means that increase in leverage ratio leads to decrease in stock return. Similarly, profitability has a positive effect on market price of share and stock return. It means increase in bank profit leads to increase in market price of share and stock return. Similarly, board diversity has a positive effect on market price of share and stock return. It implies that increase in female board directors leads to increase in market price of share and stock return. However, nonperforming loans has a negative effect on market price of share. It implies that increase in nonperforming loans leads to decrease in market price of share. Similarly, board size has a positive effect on market price of share and stock return. It means increase in board size leads to increase in market price of share and stock return.

Corporate Governance and Organizational Growth: A Case of Nepalese Commercial Banks

This study examines the impact of corporate governance on the organizational growth in the context of Nepalese commercial banks. The selected dependent variables are return on equity and return on assets. Similarly, the selected independent variables are board meeting, board diversity, audit committee size, board interdependence, firm age and board size. The study is based on secondary data of 15 commercial banks with 105 observations for the period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, publications and websites of 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 corporate governance on the organizational growth in the context of Nepalese commercial banks. The study showed that board independence has a positive impact on return on equity. It means that higher the number of independent directors on the board, higher would be the return on equity. Similarly, board diversity has a positive effect on return on assets and return on equity. It means that increase in proportion female directors on board leads to increase in return on assets and return on equity. The results of the study also showed that audit committee has a positive impact on return on assets and return on equity. It implies that larger the size of audit committee, higher would be the return on assets and return on equity. However, firm age has a positive impact on return on assets. This shows that increase in firm age leads to increase in return on assets. Similarly, board size has a positive impact on return on assets and return on equity. It implies that larger the board size, higher would be the return on assets and return on equity.

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

Impact of Corporate Social Responsibility and Profitability in Financial Performance Moderated by Amanah Concept

Purpose – This study aims to fill a gap in the literature by examining the impact of CSR, measured through Zakat, and the effect of profitability on the financial performance of companies in Saudi Arabia, as well as the role of the concept of Amanah as a moderating variable. Methodology/approach – This study employs a quantitative method using secondary data from financial reports of banks listed on Tadawul from 2019 to 2023. The sample was selected based on the consistency of reports and the absence of losses in the last three years. Data analysis was conducted through multiple linear regression with panel data using Eviews version 11. Findings – The research findings indicate that CSR and the concept of Amanah have a significant impact on the financial performance of Islamic banks, whereas profitability does not have a significant effect. The concept of Amanah also acts as a moderating variable that strengthens the influence of CSR and profitability on financial performance. Novelty/value – This study makes a significant contribution by demonstrating that the concept of Amanah plays a key role in enhancing the financial performance of Islamic banks, alongside CSR. The findings support the Sharia Enterprise theory and introduce a new approach to measuring the performance of Islamic banks by placing greater emphasis on the concept of Amanah.

Analyzing the Risk-Return Tradeoff in Commercial Banks' Common Stock: A Case Study of Nepalese Banks

This study investigates the risk-return tradeoff in the common stock of Nepalese commercial banks over a five-year period from 2018/19 to 2022/23. By analyzing financial data from four prominent banks listed on the Nepal Stock Exchange (NEPSE) i.e. Global IME Bank Limited (GBIME), Nepal Investment Mega Bank (NIMB), Nabil Bank Limited (NABIL), and Kumari Bank Limited (KBL). The study depends on the closing prices of these four commercial banks, which were generously provided through the NEPSE Index and annual general meeting (AGM) reports of each respective bank. The research aims to provide a comprehensive understanding of their risk profiles and expected returns using the Capital Asset Pricing Model (CAPM). The study employs descriptive statistics like mean, standard deviation, coefficient of variation, and maximum/minimum returns. The findings reveal significant variations in performance and risk levels: GBIME and KBL show positive average returns with high volatility, whereas NIMB and NABIL exhibit negative average returns, indicating losses. GBIME’s stock is slightly less volatile than the market, while NIMB’s low beta suggests it is suitable for conservative investors. NABIL’s and KBL’s higher betas indicate more volatility, appealing to high-risk tolerant investors. The study underscores the importance of portfolio diversification and continuous monitoring of market conditions for informed investment decisions. These insights are valuable for investors, financial regulators, and policymakers in developing effective risk management strategies and enhancing financial stability in Nepal's banking sector.

Foreign Reserve and Economic Growth: A Comparative Analysis of Nigeria and Ghana

This paper examined the comparative analysis of the effect of foreign exchange reserve on the economic growth of Nigeria and Ghana. The foreign reserve was proxy by country external reserve, while economic growth was equally proxy by Gross Domestic Product. Data extracted for the sampled period were analysed using descriptive and inferential statistics. An ex-post facto research design was adopted for the study. Data were obtained for sixty-four (64) years (1960-2023) from the reports of World Bank for Ghana and Nigeria. Regression test for the hypothesis was set at a significance level of 5%. The findings showed that external reserve was jointly positive and significant on the economic growth of Nigeria and Ghana (p-value = 0.0000; <0.05) and (p-value = 0.0000; <0.05) respectively. The findings also showed that Ghana had a stronger positive relationship between external reserve and economic development. The Adjusted R-Square of Ghana and Nigeria stood at 0.95 and 0.77 respectively. This implied that 5% and 23% are factors outside foreign reserve that are responsible for economic growth. This study recommends that the leaders of the two countries under consideration should pay more attention to developmental policy that will lead to accumulation of reserve, since it enhanced economic growth and currency stability of the two countries.

M Score Performance Measure for Islamic Banks in Malaysia and Indonesia

Performance measurement is vital to examine the performance of any institution. Due to the different nature of business operations, processes, and activities in Islamic banks, they have to be measured by a more focused instrument to reflect the Shariah compliance parts and their business nature compared to the conventional banks. Hence, M Score which has been developed by Abdul Rahim, Abdul Rahman and Syed AlHabshi (2016) has been adopted in this study. The findings from the computation will indicate which country gains the higher M Score in performance, and this can be used as a benchmarking exercise. This research aims to analyse and compare the M Score performance of Islamic banks in Malaysia and Indonesia. The content analysis via Annual Reports of Islamic banks has been used for this study. The sampling technique used is purposive sampling. The research was conducted on Islamic banks in Malaysia and Indonesia over a period of two years, from 2020-2021. This comparative research is expected to be an evaluation tool for Malaysian Islamic banks, helping them improve their performance to catch up with their counterparts in Indonesia. Thus, the purpose of this research proposal is to analyse and compare the effect of the soundness of Islamic banks based on the M Score performance of Islamic banks in Malaysia and Indonesia. The results of this study indicate that Islamic banks in Indonesia have a higher M Score ranking than those in Malaysia. There are significant differences in the performance of Islamic banks based on the Need Fulfilment and Equitable Distribution (NFED), Economic Growth (EG), and Economic Stability (ES) in Malaysia and Indonesia.

Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general.

CSR reporting practices of Islamic and conventional banks based on ownership differences

Purpose This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected. Design/methodology/approach This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score. Findings The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks. Social implications The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures. Originality/value The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.

Exploring the Impact of Remittance and Economic Growth on Inflation

This study investigates the influence of remittance income and economic growth on the inflation rate in South Asian Association for Regional Corporation (SAARC) countries. Remittance inflows have a double effect on the economy’s inflation rate: firstly, it increases consumer spending capacity, driving up demand for goods and services, which can lead to higher prices; secondly the influx of foreign currency can cause local currency appreciation, raising import costs and contributing to inflation. While previous studies have focused primarily on how inflation hinders economic growth, this study seeks to understand how economic growth causes inflation from the other side. Economic growth boosts consumer and business spending, increasing demand for goods and services, which can increase prices. Furthermore, higher demand for resources and labor can raise production costs, further contributing to inflation. The correlation between remittance income and inflation has been extensively documented, but the impact of economic growth on inflation remains to be determined. The study is based on descriptive and exploratory research design and driven by a positivist research philosophy. The present study is based on secondary data collected from World Bank reports and the countries’ economic surveys. This study uses an unbalanced panel dataset of 272 data points from eight member countries of SAARC. Basic econometric techniques such as covariance analysis, panel unit root testing, panel autoregressive distributed lag model, and scaled coefficient analysis are employed. The remittance income is only statistically significant at the 10 percent significance level. A one percent increase in remittance income leads to a 0.284 percent increase in inflation over the long run. The growth rate of gross domestic product plays a crucial role in setting inflation. One percent rise in gross domestic product growth leads to a 0.3405 percent increase in inflation in the long term. The error correction term exhibits a negative and statistically significant relationship. The coefficient size suggested that around 65.14 percent of the disequilibrium was rectified in each cycle. The current year’s lagged gross domestic product growth negatively and statistically significantly impacts economic growth. One percent rise in gross domestic product growth led to 0.3308 percent fall in inflation in the short term across SAARC countries. The results indicate that remittance income has a minimal long-term effect on inflation in SAARC nations, whereas gross domestic product growth substantially impacts inflation. Policymakers should prioritize promoting sustainable economic growth to mitigate inflationary pressures effectively.