Arshed, Noman
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Inflationary Dynamics of Consumer and Producer Financing: A case of Islamic and Conventional Banking in Pakistan Manzoor, Arslan; Arshed, Noman
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (13.917 KB) | DOI: 10.18196/ijief.v4i2.11372

Abstract

One of the macroeconomics objectives is to stabilize purchasing power for the masses, which remains a leading economic problem in Pakistan for years. Economists are convinced about some degree of inflation in the economy to mobilize economic resources, with the condition to keep it to a minimum. Currently, Islamic finance is setting its firm footing in Pakistan and competing with the conventional financial system. Under this scenario, this study compares the Shari’ah compliant financing provided by Islamic financial institutes, and human made standards of conventional financial institutions. This study explores the effect of consumer financing and producer financing of Islamic and conventional banks on the inflation of Pakistan. Quarterly secondary data between 2009Q2 to 2019Q2 extracted from the State Bank of Pakistan reports and International Financial Statistic. ARCH model is used to estimate the model. Empirical results displayed that Islamic consumer financing, as expected in theory, helps to control inflation. The preaching of moderation in Islamic finance makes Islamic consumer financing less inflationary, and asset-based Islamic producer financing will perform better in reducing inflation. Islamic consumer financing is well participating in the management of inflation. However, Islamic producer financing lacks inflation curtailing ability. The small share in the financial market, and lack of long-term investment plans, are the few reasons why Islamic producer financing is not managing inflation.
Inflationary Dynamics of Consumer and Producer Financing: A case of Islamic and Conventional Banking in Pakistan Manzoor, Arslan; Arshed, Noman
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (13.917 KB) | DOI: 10.18196/ijief.v4i2.11372

Abstract

One of the macroeconomics objectives is to stabilize purchasing power for the masses, which remains a leading economic problem in Pakistan for years. Economists are convinced about some degree of inflation in the economy to mobilize economic resources, with the condition to keep it to a minimum. Currently, Islamic finance is setting its firm footing in Pakistan and competing with the conventional financial system. Under this scenario, this study compares the Shari’ah compliant financing provided by Islamic financial institutes, and human made standards of conventional financial institutions. This study explores the effect of consumer financing and producer financing of Islamic and conventional banks on the inflation of Pakistan. Quarterly secondary data between 2009Q2 to 2019Q2 extracted from the State Bank of Pakistan reports and International Financial Statistic. ARCH model is used to estimate the model. Empirical results displayed that Islamic consumer financing, as expected in theory, helps to control inflation. The preaching of moderation in Islamic finance makes Islamic consumer financing less inflationary, and asset-based Islamic producer financing will perform better in reducing inflation. Islamic consumer financing is well participating in the management of inflation. However, Islamic producer financing lacks inflation curtailing ability. The small share in the financial market, and lack of long-term investment plans, are the few reasons why Islamic producer financing is not managing inflation.
Role of Knowledge Creation and Absorptive Capacity: A Panel Data Study of Innovation Hameed, Kamran; Arshed, Noman; Munir, Mubbasher
SEISENSE Journal of Management Vol. 4 No. 2 (2021): SEISENSE Journal of Management
Publisher : SEISENSE (PRIVATE) LIMITED

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33215/sjom.v4i2.579

Abstract

Purpose- Knowledge creation refers to the ability of firms to create new knowledge that starts from individuals to integrating the firms and then the overall economy. This study suggests that knowledge acquisition in a country has a significant relationship with innovative performance. Design/Methodology- Data from 48 highly HDI countries is taken from World Bank and World Economic Forum. Based on 480 country-year observations in a panel mediator model, it is revealed that the national efforts of boosting knowledge acquisition influence the firms’ innovative performance. Findings- Further, it is found that absorptive capacity in the employability of knowledgeable workers works as a mediator between knowledge acquisition and innovation. Whereby higher knowledge acquisition leads to higher absorptive capacity and higher innovation. Practical Implications- This study builds a quantitative model for the macroeconomic context of knowledge-based view.
Prediction of Islamic Banking Bankruptcy in Indonesia: Comparative Study of Altman Z-Score and Springate Models Nata, Shafitra -; Chairunnisa, Rizka; Arshed, Noman
IKONOMIKA Vol 5, No 2 (2020)
Publisher : Universitas Islam Negeri Raden Intan Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24042/febi.v5i2.7747

Abstract

Aim of this research is to calculate, measure, analyze, and evaluate predictions of potential bankruptcy of Islamic banking using the modified Altman Z-Score and Springate models and identify differences in the predicted results.  This research uses descriptive quantitative analysis.  Model analysis used is the Modified Altman Z-Score and Springate models.  The research object used is 12 Islamic banks in Indonesia 2013-2019 and data collection includes literature study and observation.Modified Altman Z-Score model predicts that 1.19% of Islamic banking is in gray area and 98.81% is in a non-bankrupt position.  Meanwhile, the Springate model predicts 38.10% of Islamic banking is in a bankrupt position and 61.90% is in a non-bankrupt position.  This research only analyzes and compares the prediction results of the potential bankruptcy of Islamic banking with the modified Altman Z-Score and Springate models.This research can be used as an evaluation material for Islamic Banking in Indonesia in the face of potential bankruptcy so that companies can immediately improve their management and company performance.