Banks In Kuwait Research Articles

MARKETING EXPENDITURE IMPACT ON BANK’S FINANCIAL PERFORMANCE: A CASE STUDY ON KUWAITI BANKS

Marketing personnel are always under pressure to justify their marketing strategies expenses to bank top management and shareholders. This study aims to provide some justification for their expenses by linking it to the financial performance of the firm. Using the data of ten Kuwaiti banks that are listed at Kuwait stock exchange (KSE) over the period spanning from 2008 to 2018, results show that there is a statistically significant direct relation between marketing expenditure and the financial performance of banks in Kuwait. In addition, results show that both bank size and assets per employee also have a direct relation with bank performance.
 
 JEL: G21; G24; G10
 
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Does Strategic Leadership Support Organizational Commitment: Evidence from Islamic Banks in Kuwait

The need for loyal strategic leadership has never been more important than it is today. The twenty-first century requires - as no other century has ever imposed - on the leaders of organizations to create strategic awareness and dynamic renewed processes, in order to ensure strategic consistency. From that point, current study aimed at examining the influence of strategic leadership on developing organizational commitment within Islamic banks in Kuwait. Quantitative approach was adopted depending on a questionnaire that was distributed on (273) employees within Islamic banks in Kuwait. With an R value of (.817) results of study indicated an influence of strategic leadership on organizational commitment through its impact from a managerial perspective which scored an R value of (.769) and ethical perspective with an R value of (.495). Study recommended promoting strategic leadership practices by investing in human capital and focusing on continuous learning and improvement

Trends in Childhood Cancer in Kuwait: Data From the 2004-2017 Registry.

Background and objectiveThere is a lack of updated data regarding pediatric cancer in Kuwait, with no separate childhood cancer registry available in the country prior to this study. We aimed to determine the trends in different cancer types with respect to international statistics, in order to understand their nature and identify gaps in their diagnosis and management.MethodsThis retrospective study was based on data obtained from the first national childhood cancer registry of the National Bank of Kuwait (NBK) Specialized Hospital for Children, the only hospital that manages pediatric cancer patients in Kuwait. The registry included the data of all children with cancer in Kuwait from 2004 to 2017 and had complete data files.FindingsThe total number of patients in the childhood cancer registry was 1,387. A total of 1,009 files met our eligibility criteria. In 2017, the incidence of childhood leukemia was determined to be six per 100,000 people, and for other cancers, it was 12.6 per 100,000 people. The most common cancer was leukemia (457 patients), followed by lymphoma (141 patients), and brain tumors (92 patients). The majority of children received chemotherapy (n=891, 88.3%). Post induction or treatment, the majority of patients achieved complete remission (n=790, 78.3%). The overall survival rate of children with cancer was around 80%. Major complications developed in 9% of patients.ConclusionThese findings highlight the importance of hospital‐based cancer registries. Active data management programs are essential to monitor outcomes, measure the effectiveness of current practice, and improve the quality of care.

Knowledge sharing as a give-and-take practice: the role of the knowledge receiver in the knowledge-sharing process

PurposeThe purpose of this study is to investigate whether openness to receive and openness to share knowledge drive employees to share knowledge with colleagues in the workplace. The authors also investigate what, if any, influence knowledge sharing has on performance at both individual and work unit levels.Design/methodology/approachData were collected from 237 employees from eight banks in Kuwait. Structural equation modeling techniques were used to test the hypotheses.FindingsThe knowledge receiver’s openness to receive and openness to share knowledge influence the provider’s knowledge-sharing behavior. The latter positively affects the provider’s job performance and the work unit’s innovation performance. Furthermore, knowledge utilization strengthens knowledge sharing’s positive effect on work unit innovation.Research limitations/implicationsThe findings of this study are industry and country specific and, therefore, would likely not be applicable to other settings. Thus, similar future research targeting different industries and/or countries is warranted. As a cross-sectional study, this research can also benefit from subsequent longitudinal studies.Practical implicationsOrganizations should create a culture conducive to sharing knowledge. For example, managers should assure employees that knowledge shared with coworkers will be well received and utilized, remove barriers to new knowledge utilization and create awareness among employees that sharing knowledge benefits knowledge providers as well as knowledge providers.Originality/valueThe authors provide evidence of how the knowledge receiver’s openness to receive and to share knowledge affect the provider’s knowledge sharing. The authors also provide insights into how knowledge sharing drives job performance and innovation.

Transparency Standards Implementation in Light of Governance in the Islamic Banks in Kuwait

The study aims at identifying the transparency concept in general and its dimensions in the Islamic banks in particular, as well as the governance concept, importance, objectives, and principles in the financial institutions. The study examines the application level of transparency standards in light of governance in the Islamic Kuwaiti Banks. The analytical and descriptive approaches are adopted. The study population consists of four Islamic banks in Kuwait. The sample consists of 35 individuals working in senior administrative positions who are basically charged with institutional governance in Islamic banks in Kuwait. The study shows that the Islamic banks in Kuwait apply transparency standards with a high commitment level in light of governance. Of course, this gives us a positive indication of the application-level of both transparency and governance in the Islamic banks in Kuwait. Principles, standards of governance as well as transparency standards are very crucial for the Islamic financial institutions'bdevelopment. The study recommended issuing a separate governance code for Islamic banks, and an accredited measure of governance in the Islamic banks in Kuwait based on transparency standards.

The estimation of banking industry staffing level benchmark: A case study on Kuwaiti banks

This study aims to examine whether or not Kuwaiti banks are overstaffed based on the data of ten Kuwaiti banks listed at Kuwait stock exchange (KSE) over the period 2010-2018. Using panel regression analysis, the results show that six banks were overstaffed while the remaining four banks were understaffed. Kuwait Finance House (KFH) was the most overstaffed bank in Kuwait while Commercial bank was the most understaffed bank. Gulf bank was the closest to the estimated number of staff followed by AlAhli bank. The results also revealed that there was a statistically significant inverse relationship between staffing level and return on assets (ROA) while, on the other hand, there was a statistically significant direct relationship between total assets and the number of branches with staffing level.

Corporate Social Responsibility (CSR) Disclosure of Islamic and Conventional Banks in Kuwait

تهدف الدراسة إلى اختبار كمية ونوعية البيانات الخاصة في المسؤولية الاجتماعية والبيئية التي تمارسها البنوك الإسلامية والتقليدية. تحليل المحتوى هو المنهجية المستخدمة للوصول إلى هدف هذه الدراسة من خلال دراسة كمية ونوعية الإفصاح الاجتماعي والبيئي لقطاع البنوك في الكويت.استخدمت التقارير السنوية لجميع البنوك المدرجة في بورصة الكويت للأوراق المالية في نهاية عام 2015. وقد قسمت تلك البنوك إلى مجموعتين: الأولى تضم خمسة بنوك إسلامية، والثانية تضم خمسة بنوك تقليدية. قد يبدو في البداية أن البنوك التقليدية تفصح عن بيانات بكمية أكبر ونوعية أفضل من تلك البنوك الإسلامية، فيما يتعلق بالإفصاح عن معلومات خاصة في الموارد البشرية، وكذلك المنتجات والخدمات المقدمة. ولكن فيما يتعلق بكمية ونوعية المعلومات الخاصة بالمشاركة المجتمعية والقضايا البيئية، فإن البنوك الإسلامية هي الأفضل. وتبين إحصائياً أنه لا يوجد اختلاف جوهري في كمية ونوعية الإفصاح الاجتماعي والبيئي بين البنوك المحلية (الإسلامية والتقليدية) في دولة الكويت. أضافت النتائج إلى الأدبيات الخاصة بدراسة كمية وكيفية الإفصاح عن البيانات الخاصة بالمسؤولية الاجتماعية والبيئية من خلال المقارنة بين البنوك الإسلامية والتقليدية في إحدى الدول النامية. إضافة إلى ذلك، توصلت النتائج والتوصيات إلى أن البنوك بشكل عام - سواء كانت إسلامية أو تقليدية - لابد لها أن تكون محل المسؤولية حتى تلبي توقعات أصحاب المصلحة. وبذلك يكون انخراطها في الإفصاح الاجتماعي والبيئي بمثابة وسيلة لإثبات مدى تحملها لمثل هذه المسؤولية تجاه أصحاب المصلحة. على الرغم من أهمية النتائج فإنه من الصعب شمولية تلك النتائج؛ ويرجع السبب في ذلك إلى أن البحث العلمي قد تم في بلد معين، وكذلك تحت ظل قطاع محدد، وأن البيانات تخص عاماً واحداً فقط؛ وبذلك يصعب شمولية النتائج.

The mediating role of technology innovation in the relationship between customer relationship management and customer loyalty, a case of Kuwaiti Banking industry

The mediating role of technology innovation in the relationship between customer relationship management and customer loyalty, a case of Kuwaiti Banking industry

Factors influencing customer switching behavior in Islamic banks: evidence from Kuwait

PurposeWith increasing competition, Islamic banks in Kuwait are currently facing difficulties in retaining their customers as customers now have the option to switch from one bank to another. As the banking industry offers almost identical products and services, customers are more likely to change their bank when they get a better offer from another bank, especially if the customer is dissatisfied with the current bank. Thus, this study aims at identifying the most significant factors that make Islamic bank customers switch their bank.Design/methodology/approachThe data for this study was collected through a survey with a response rate of 25.5%. Logistic regression was used to analyze the collected data and examine the effect of each factor on the customer switching behavior.FindingsThe results of empirical analysis reveal that the service convenience, service reliability, level of technology and Sharia compliance are the most significant factors influencing the customer switching behavior in Kuwaiti Islamic banks. Thus, Islamic bank managers should focus on these factors when building their strategies to increase their customer’s satisfaction and loyalty. Loyal customers are more profitable than new customers as they are more likely to use more services, spread a positive word of mouth and, more importantly, they are more likely to resist competitors’ offers.Practical implicationsIdentifying and understanding these factors will enable Islamic bank managers to direct their efforts and resources to the most cost-effective ways that help them to retain their customers, and accordingly, increase bank profits.Originality/valueTo the best of the authors’ knowledge, this is the first study to examine the customer switching behavior in Kuwait, and one of the few to present a model that explains the stages through which customers pass until they reach the switching decision.

دور إدارة مخاطر التحول الرقمی فی تحسین جودة التقاریر المالیة بالبیئة الکویتیة : دراسة میدانیة

هدفت هذه الدراسة إلى التعرف على دور إدارة مخاطر التحول الرقمي في تحسين جودة التقارير المالية بالبيئة الکويتية، وذلک من خلال دراسة ميدانية في البنوک الکويتية، تم استخدام استبانة تم توزيعها على عينة شملت ( 89) مستجيبا من العاملين في إدارة المخاطر هذه البنوک. واستخدم الباحث تحليل الانحدار المتعددة. توصلت الدراسة إلى وجود دور لإدارة مخاطر التحول الرقمي المتمثلة بـ(إدارة مخاطر إدخال البيانات، إدارة مخاطر تشغيل البيانات، إدارة مخاطر مخرجات البيانات، إدارة مخاطر البيئة الداخلية والخارجية) في تحسين جودة التقارير المالية في البنوک الکويتية. وأوصت الدراسة بالتأکيد على البنوک الکويتية بالاهتمام بإدارة مخاطر التحول الرقمي المتعلقة بإدخال البيانات، وإدارة مخاطر تشغيل البيانات، وإدارة مخاطر مخرجات البيانات، وإدارة مخاطر البيئة الداخلية والخارجية لکون هذه المخاطر لها دور في تحسين جودة التقارير المالية. Abstract This study aimed to identify the role of digital transformation management risk in improving the financial reports quality in the Kuwaiti environment, through a field study in Kuwaiti banks, a questionnaire was used that was distributed to a sample that included (89) respondents working in the risk management of these banks. The researcher used multiple regression analysis. The study found that there is a role for managing digital transformation risks represented by (data entry risk management, data operation risk management, data output risk management, internal and external environment risk management) in improving the quality of financial reports in Kuwaiti banks. The study recommended that Kuwaiti banks should pay attention to managing digital transformation risks related to data entry, managing data operating risks, managing data output risks, and managing internal and external environmental risks, as these risks have a role in improving the quality of financial reports.

Differences in CSR Disclosure in the Annual Reports of Islamic and Conventional Banks: Evidence from Kuwait

This paper explores the differences in corporate social responsibility disclosure in the annual reports of Islamic and conventional banks operating in Kuwait. A content analysis of the six banks’ annual reports from 2007 through 2009 was conducted to examine their corporate social responsibility practices in relation to the marketplace, workplace, community, and environment. The results show that both types of banks made certain social disclosures in the years studied. Interestingly, despite Islamic Sharia calls for and emphasizes ethical business behavior, the Islamic banks studied disclosed less corporate social responsibility information as compared with conventional banks. Furthermore, the corporate social responsibility information disclosed by the Islamic banks declined noticeably over time. The conventional banks, however, increased their disclosures during the financial crisis of 2008. By measuring and comparing the volume of corporate social responsibility information disclosed by the three Islamic banks and the three conventional banks in Kuwait the results of this study contribute to the corporate social responsibility literature.

Analyse the Effect of Islamic Derivatives during Financial Crises of 2008 Using Data Envelopment Analysis

There is a very broad debate recently on the competence of Islamic financial derivatives in banks as a risk management tool better than traditional financial derivatives in conventional banks. The economic crisis that occurred in 2008 was a real measure to prove or deny this claim. In terms of bank performance, this research empirically compares Islamic and traditional banks, to evaluate the feasibility and efficiency of Islamic and traditional banks. The Data Envelopment Analysis (DEA) as statistical approach used in this research. The Kuwaiti banks were selected as a case study for the period 2006-2011 because it cover the period before and after the financial crisis of 2008. The data obtained from the Scope website, the annual accounts from banks, the IMF database, PhD studies and other tools. The research showed that Kuwait’s traditional banks were higher in efficiency and performance before the 2008 financial crisis, but the Islamic banks made a better performance afterwards. However, Islamic and traditional banks are subject to a comparable degree of risk, but different in nature; and the Islamic banks are less safe to financial shocks than conventional banks are. Since Islamic banks are unable to charge a fixed, standardized return and are unable to borrow from the financial market, Islamic banks may face more risk and unpredictable asset returns. The implication of these facts of the over-management modernisation of Islamic banks is important in order to reach a higher degree of efficiency. It will give Islamic banks an advantage over the traditional bank. For traditional banks, they need to invent specific strategies to reduce costs and retain their market position.

The Application Level of Institutional Governance in Islamic Institutions and Banks in Kuwait

This study aims to identify the governance principles and their level of applicability in the context of Islamic banks in Kuwait. The descriptive-analytical approach was used by designing a questionnaire composed of 29 questions. The study mainly addresses specific governance principles that differentiate Islamic banks from conventional ones. Findings indicate a medium application level of the governance principles in the Islamic banks of Kuwait, noting that there are deficiencies in some aspects, which is the absence of disclosure and transparency requirements of Islamic financial operations that distinguish Islamic banks from other traditional banks. Additionally, the findings show a lack of equity in the salaries and wages scale compared to competitive banks and institutions in Kuwait.

Staff Efficiency Effects on Financial Performance: A Case Study on Kuwaiti Banks

An efficient employee is considered as a valuable asset in any organization, but measuring employee efficiency is not an easy task. This study aims to measure and compare staff efficiency in Kuwaiti banks using the financial performance of the bank as an efficiency proxy. Return on assets (ROA) and return on equity (ROE) are set as dependent variables, and total assets per employee, cost per employee, revenue per employee, number of staff per branch, and total employees’ cost to total revenues are set as independent variables. Using panel OLS regression on the data of 10 Kuwaiti banks that are listed at Kuwait stock exchange (KSE) over the period 2010-2018, results showed that total assets per employee, cost per employee, revenue per employee all had a significant direct relationship with both ROA and ROE and only total employees’ cost to total revenues showed a significant inverse relationship with the financial performance of the banks. The number of staff per branch was the only variable that had no relation with both ROA and ROE. The model showed that the National bank of Kuwait had the most efficient employees’ when it comes to ROA, while Ahli United bank had the most efficient employees’ when ROE was used to measure staff efficiency. In both cases, ROA and ROE, Warba bank had the least efficient staff among all banks under study.

Government Ownership Effect on Staffing Level and Financial Performance

It has always been believed that government ownership would lead to bad financial performance and overstaffing in any organization. This study aims to examine the effect of government ownership on staffing level and the financial performance of Kuwaiti bank over the period 2010-2018. Using the financial data of ten banks listed at Kuwait stock exchange (KSE), results shows that there was s statistically significant direct relation between government ownership and overstaffing and statistically significant inverse relation between government ownership and the financial performance of banks measured by return on assets (ROA). On the other hand results show that there was no relation between overstaffing and the financial performance of Kuwaiti banks.

Are share prices of Gulf corporate council banks predictable? A time-series analysis

PurposeThis research aimed to evaluate the predictability of moving-average strategies and examined the validity of the weak form of the efficient market hypothesis (EMH) for securities of banks listed in the Gulf Cooperation Council (GCC) stock markets of Bahrain, Kuwait, Qatar and Saudi Arabia.Design/methodology/approachSeveral statistical analyses and eight moving-average rules were employed where buy and sell signals were produced by comparing a security price’s short- and long-term moving averages. The study covered the daily closing share prices of 40 GCC-listed banks over the 18-year period ending 31 December 2017.FindingsThe results suggest that securities of banks in the GCC were not weak-form efficient because share prices were predictable. Investors who traded using moving-average strategies could generate higher profits. Analysis of variance found that securities of Kuwaiti banks were the most efficiently priced.Practical implicationsThe findings supported the idea that profitability depended on the moving-average rules and country chosen. Transaction costs did not affect the returns obtained using different trading rules.Originality/valueThis work facilitates future evaluation of accounting disclosure environments as well as the market efficiency and the performance of securities in the GCC countries. The performance of moving average rules among representative countries that share similar characteristics was analyzed. Different market participants, including investors, analysts and regulators, can benefit from this study for decision-making. These results suggest that new regulations might be drafted that would improve the timeliness of accounting information and the banks’ level of efficiency.

AB007. National registry for children with cancer in Kuwait

: The scope of this talk would be about registries of cancer and hematological diseases around the world and the impact on the improving the health system of countries. Registries in a developing country could be very challenging; however very rewarding to assess the services provided. We will share our experience in developing a registry of childhood cancer in Kuwait and the steps taken as well as obstacles faced during this journey. This study was conducted at the children specialty hospital at the National Bank of Kuwait (NBK) hospital, Sabah health district, which is the only center for cancer management in children in Kuwait. Since the establishment of the unit back in the seventies the patient's' statistics was gathered by personal effort of the doctors of the unit and it was not official, and some of these data was gathered by Kuwait cancer control registry center which is basically adult service. There is an estimate of 120 new cases are received every year, and currently there are more than 800 children on regular follow up at NBK children hospital; receiving children with cancer from birth to 16 years. The objective of this study was to addresses the need to have a separate national registry for children with cancer, in order to follow the international statistics and improve the services provided at NBK children hospital. This study used a prospective/cross sectional/retrospective method. This project started in May 12th 2016. A data sheet form which contained patient biography, investigations, clinical course, complications, and outcome of cancer in children was designed. The inclusion criteria were all children with cancer were included in this registry, and the exclusion criteria were children presented with benign diseases. Data was collected from the files of the patients with leukemia who received treatment in the NBK hospital since the year 2004, and for patients with oncology diseases since 2005. Data was analyzed using SPSS form for data analysis. This study was approved by the ethical committee of the ministry of health of Kuwait, and was sponsored by the Kuwait Foundation for the advancement of sciences. The total number of all patients from 2004 to 2017 was 1,387: for children with oncology diseases were 850 retrieved 597, and children with leukemia were 537 retrieved 537. There were 593 Kuwaitis and 416 non-Kuwaitis who came from at least 28 other nationalities. There were 588 males and 421 females. It is noted that second most common cancer after leukemia in this registry is lymphoma (14%). Most children presented at diagnosis and have not received any treatment yet (76%), or received partial treatment (11%). In our study 76.3% of children are alive and are following at our centre, and we lost around 10%, and unfortunately 11% were lost to follow. The national registry for children with cancer project is a vital study for all researchers in the field. This study showed that our overall statistics are in keeping with the international statistics.

The influence of servant leadership on an organization’s serving-driven capabilities in a Kuwaiti bank environment

PurposeThe purpose of this paper is threefold: first, to test the direct influence of servant leadership (SL) on an organization’s serving-driven capabilities (S-DC). Second, to test the indirect effect of SL on employee customer-service behaviors and identification with their branch. Third, to determine the direct effect of an organization’s S-DC on employee customer-service behaviors and identification with the branch. Thus, the authors provide evidence of how SL influence serving-driven interaction capabilities that are later deployed to execute customer-oriented behaviors.Design/methodology/approachSurvey data were obtained from a sample of 36 bank branches of one bank in the Middle East. Employees evaluated their manager’s SL behaviors, the six S-DC and their identification with the organization. In turn, managers assessed their employees on customer-service behaviors. Partial least squares path analysis was used to model the relationships.FindingsResults indicate servant leaders’ behaviors are example, motivator and determinant of an organization’s S-DC. Employees not only adopt the S-DC by imitation but also as a mean to reciprocate the leader: serve your customers like the leader serves you. Other results and implications for managers are presented.Research limitations/implicationsThe study is of a cross-sectional nature therefore a causal effect of SL on S-DC cannot be determined. Second, the study is limited to one bank although several branches were randomly sampled. Third, the evaluations of the S-DC have been done by the employees rather than customers.Practical implicationsThe S-DC concept provides ample opportunities for managers to enhance their interactions with employees and customers to improve their performance by identifying which capabilities to develop. Specifically, interactions that promote ethical, empowering, developmental relationships and that encourage genuine two-way communication and responds to individual needs.Originality/valueThe study is original in testing the mediating effect of a S-DC. The focus on individual and organizational capabilities is relevant because they have been touted as among the most important factors to explain the differences of company performances and competitive advantages

Discuss the Banking Regulatory and Market Framework in Kuwait Using SWOTAnalysis

This paper discusses the banking regulatory and market framework in Kuwait. SWOT Analysis of Kuwait Banking Sector addresses the strengths, weaknesses, opportunities and threats. As a major oil exporter, it has enabled Kuwait to erect strong exterior and financial balance sheet situations. The government is a large net creditor and has a high flexibility to respond to external shocks. Since the institutional framework works as an obstruction to effective decision-making in the country with regards to transparency and accountability, political risk is considered as a weakness. Kuwait faces geopolitical risk, similar to its peers in the Gulf Cooperation Council (GCC). Credit risk is high for the Kuwaiti banking sector, as the banks have historically operated with significant exposures to cyclical sectors such as real estate and construction. Finally, Kuwait's legal framework regarding bankruptcy law, creditor rights, and process remains less developed when compared to other parts of the world.

Perceptions Of Concerned Parties About Corporate Governance And Business Ethics In Kuwaiti Banks

Perceptions Of Concerned Parties About Corporate Governance And Business Ethics In Kuwaiti Banks