This article [written by Talla Aldeehani] – published in Business and Economic Horizons, Volume 15(1), 2019.
Title: Dividend policy as a multi-purpose mechanism; the case of conventional and Islamic banks before and after the 2008 crisis
Abstract: Dividend policy and its association to firm value is still a concern for researchers. Empirical research provided evidence that it is relevant in various forms including signaling, pecking order, and agency. The aim of this study is to investigate the dividend policy of Islamic banks versus conventional banks in response to a major financial crisis. By studying the mixed banking industry of the Gulf Cooperation Council countries, known for negligible taxation systems, we provide evidence that conventional and Islamic banks use dividend payouts as a multi-purpose mechanism. At times of economic prosperity, conventional banks use them as signaling and pecking-order instruments, while it is used as an agency problem protection instrument during downturns. For Islamic banks, however, dividend policy is a pecking order mechanism before and after the crisis. Discussions on theoretical and empirical implications are provided.
Keywords: Dividend policy, Islamic banks, financial crisis
Citation: Aldeehani, T. M. (2019). Dividend policy as a multi-purpose mechanism; the case of conventional and Islamic banks before and after the 2008 crisis. Business and Economic Horizons, 15(1), 37-59. http://dx.doi.org/10.15208/beh.2019.3
The article [written by Irma Setyawati] has been published in Business and Economic Horizons, Volume 14(4), 2018.
Title: Global financial crisis 2008 and its vulnerability in SAARC countries
Abstract: The key objective of the study is to analyze the impact of global financial crisis on export in countries of SAARC region. For current empirical analysis, this study used a gravity model to investigate export of final goods from SAARC countries to high-income countries during the period 2003 to 2014. The independent and dependent variables were used in the natural logarithm form of dummy variables. The geographical distance between capitals of trading partners and importer’s and exporter’s GDPs are used as standard independent variables. Consequently, this study includes their dummy variables demonstrating common official language, membership in regional trading agreements and financial crisis. Therefore, to examine the impact of the last crisis, the model comprises dummy variable (y2007, y2008, y2009 and y2010) representing critical years of study. Moreover, this study also used random effect approach which required that at least one assumption should be fulfilled which is zero correlation of independent variables. The current study concluded that financial markets of SAARC countries remained less vulnerable to the financial crisis or bad-loan crisis because of having less exposure to subprime assets and high capital to risk assets ratio. However, trade of goods and services of the SAARC countries with the developed economy resulted in negative effects on most of the SAARC countries. Moreover, the study also revealed that financial crisis had serious repercussion for the other countries of the SAARC region due to lack of appropriate response and that a timely response by countries could save the prolonged negative influence of financial crisis.
Keywords: Financial crisis, GDP, gravity model, SAARC countries
Citation: Setyawati, Irma, 2018. Global financial crisis 2008 and its vulnerability in SAARC countries. Business and Economic Horizons, Vol.14, Issue4, pp.766-776. DOI: http://dx.doi.org/10.15208/beh.2018.53