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The impact of board composition on shareholder wealth creation: evidence from public companies in Sri Lanka Rooly, M. S. A. Riyad
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5350

Purpose — This research aims to examine the impact of board composition on shareholder wealth in line with the agency and resource dependency theory approach due to the poor corporate governance practices leading to investors' lack of confidence. Method — The study samples included companies listed on the Colombo Stock Exchange in Sri Lanka. The banks and financial institutions were excluded from this study. The study period consists of seven years, and a final sample of 175 companies was selected for the analysis. E-View 9 statistical software was used to test the association between Board composition-related variables and shareholder wealth. Result — The findings revealed that board size, separate leadership structure, and proportion of non-executive directors on the Board positively influence shareholder wealth. At the same time, a separate leadership structure also tends to enhance the shareholder wealth of companies. It is noted that a large board and a higher proportion of non-executive directors on the Board would benefit shareholders, which supports the theoretical prediction of agency and resource dependency theories and the code of best practices on corporate governance in Sri Lanka. The result related to women's representation on the Board does not significantly influence shareholder wealth since the gender balance was not prioritized in Sri Lankan listed companies. Recommendation — The findings provide valuable information to professionals and policymakers to develop a framework for corporate governance systems. It is also advisable to consider the gender balance on board affairs. Corporate governance mechanisms are considered important factors in protecting shareholder interests at large. Contribution — There were few studies in Sri Lanka that specifically examined corporate governance best practices and their impact on firm performance, but no single study directly addresses the shareholder wealth of listed companies in Sri Lanka. This study is intended to fill in this gap.

Modelling the nexus between income inequality and shadow economy in Nigeria Adegboyega, Soliu B.; Odusanya, Ibrahim A.; Ogede, Jimoh S.; Ajayi, Felix O.
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5486

Purpose — This paper aims to examine the relationship between the shadow economy and income inequality in Nigeria.Method — The paper employed Autoregressive Distributed Lag (ARDL), Fully Modified Ordinary Least Square (FMOLS), and Granger causality. This methodology is used to avoid endogeneity and heterogeneity in the model. This paper gauged income inequality using two diverse indicators of the Gini coefficient: the Gini index in proportion to household disposable income and the Gini index in proportion to household market income. In accordance with the literature, our empirical analysis draws on data from the Standardized World Income Inequality Database (SWIID), the World Bank, World Development Indicators, and the International Country Risk Guide (ICRG) for Nigeria from 1991 to 2018.Result — The findings of ARDL and FMOLS suggested a positive relationship between income inequality and the shadow economy, based on both measures of income inequality. In the short term, however, the shadow economy and income inequality are negatively correlated. Furthermore, we discovered a one-way causal relationship exists in Nigeria between the shadow economy, household disposable income, institutional democracy, household market income, and corruption control (CCI).Recommendation — Shadow economy has been regarded as an avenue to create job opportunities and raise poverty-income levels. It is critical that, for the shadow economy to reduce income inequality in Nigeria, policymakers should develop much better policies aimed at addressing income inequality.Contribution — In order to understand the relationship between income inequality and shadow economy activities in Nigeria, this study employed three methodologies, namely: Autoregressive Distributed Lags (ARDL), Fully Modified Ordinary Least Squares (FMOLS), and Granger Causality. The result offers reliable recommendations for pro-poor interventions that aim to limit the growth of informality via redistributing incomes.

Has economic growth reduced poverty in Nigeria? A critical analysis of the last two decades Olasode, Tikristini; Eke, Chukwuemeka; Olaleye, Olalekan Oluwabunmi
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5506

Purpose — This paper aims to examine how Nigeria's economic growth over the past two decades has contributed to poverty reduction.Method — This study adopted the desktop research method of qualitative and quantitative data and used various sources, including academic journals, publications, books, articles, and reports. The National Bureau of Statistics (NBS) of Nigeria, the United Nations Development Programme (UNDP), the Human Development Report, the World Bank Indicators, and the Central Bank of Nigeria (CBN) Statistical Bulletin are all places where secondary statistical data comes from.Result — Nigerian economy has experienced significant growth over the last two decades, but poverty rates in the country remain high. We also discovered that the Nigerian economy's high level of inequality, corruption, jobless growth, and monocity are some issues that have hindered the translation of economic growth into significant poverty reduction.Recommendation — Based on the analysis of this research and the peculiarity of the Nigerian economy, this paper recommends that diversification of the economy, investment in public services, and policies that encourage pro-poor growth are effective strategies that would lead to more significant poverty reduction. In addition, there is a need to study the nature of inequality in Nigeria. An in-depth study needs to be done on income inequality and the multidimensional forms of inequality prevalent in the country.Contribution — Research on economic growth and poverty in Nigeria mostly concentrated on the relationship between these variables. Only a few studies have investigated why the poverty rate continues to rise amid economic growth. This study tries to fill this gap and contribute empirically to the current literature on economic growth and poverty in Nigeria by studying the economic situations and factors surrounding the country's rising poverty rate.

Commercial and social activities of Indonesian Islamic banks: do they relate? Sukardi, Budi; Nur, Muhammad Alan; Fachrurazi, Fachrurazi; Husaen, Fuad Dhiya Ul; Asmanto, Eko
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5584

Purpose — This study investigates the relationship between commercial and social activities in Indonesian Islamic banks.Method — This study employed a Panel Vector Error Correction Model (PVAR) model with Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality. Observations were conducted from 2010 to 2020 on eight Islamic banks in Indonesia, representing 72.72 percent of the total Islamic banking population in Indonesia. The collecting of data pertains to the yearly financial report. Social activities are based on the amount of zakat fund distribution (ZKT) and benevolence fund distribution (DKB). Commercial activities are based on Islamic banking financial ratios that are proxied by Return on Assets (ROA), Financing to Deposit Ratio (FDR), and Non-Performing Financing (NPF).Result — The results showed that social activities in Indonesian Islamic banks are influenced by their commercial activities, but it does not apply vice versa. In other words, there is a one-way relationship between commercial and social activities in Indonesian Islamic banks.Contribution — This study contributes by studying the relationship between commercial and social activities by using the PVAR model with the analysis of Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality which so far have not been explored.

Re-evaluating Small and Medium Enterprises financial accessibility post COVID-19 pandemic in Nigeria Okuwhere, Mirhiga Peter; Osifo, Osagie
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5857

Purpose — This paper re-examined financial accessibility for Small and Medium Enterprises (SMEs) in Nigeria by considering the times we live occasioned by the pandemic.Method — The study adopts the cross-sectional survey research design. The primary data in this study were obtained via a questionnaire administered to 270 SMEs in Abia State, Nigeria, who had applied for credit from a bank within the last two years. The data were collected using a self-administered survey.Result — The study showed that collateral is still a significant determinant of access to credit, as an increase in the ability of SMEs to provide collateral will significantly impact their access to credit. SME size (SSIZE) was found to have a positive and significant effect on credit access, implying that large SMEs are better able to access credit. Though SME age (SAGE) had an insignificant effect on access to credit and Cost of Credit (CCR) was found to impair access to credit which is significant at 5%. This is in line with expectation as a high-interest rate will discourage SMEs from seeking credit from banks. Contribution — This study contributes to the emerging discourse on financial accessibility in Nigeria post COVID-19. It presented a useful insight into how the government, through its fiscal, monetary policy and direct intervention, could play a more active role in helping SMEs bounce back from the challenges brought in by the pandemic.

Assessing performance of Mawar Emas as a mosque-based Islamic financing program Supiandi, Supiandi; Pramuja, Risky Angga; Yuli, Sri Budi Cantika; Yakub, Muhammad; El Badriati, Baiq
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.6500

Purpose — This research aims to assess the performance of the Mawar Emas program since its inception.Method — This descriptive qualitative research involves several types of respondents such as mosque administrators, Chairperson of the Masyarakat Ekonomi Syariah (MES), MES Secretary, and beneficiaries. Data obtained through in-depth interviews were processed using reduction, display, triangulation and conclusion techniques.Result — Using primary and secondary data and qualitative research techniques, the authors found that the Mawar Emas initiative supported 32 mosques in West Nusa Tenggara, totaling 1,194 prospective debtors. In terms of funding, the Mawar Emas program has a yearly budget of Rp. 1,275,000,000. However, these funds have not been used to their full potential since the program's inception. There was a decrease in funding and absorption of funds in the program's second year. Several aspects of this program must be evaluated, including increased funding, defaults, training delivery, outdated data, and the presence of profit-oriented institutions.Contribution — This study contributes by providing performance of a mosque-based Islamic financing program to reduce dependency on conventional moneylenders.

The impact of board composition on shareholder wealth creation: evidence from public companies in Sri Lanka Rooly, M. S. A. Riyad
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5350

Purpose — This research aims to examine the impact of board composition on shareholder wealth in line with the agency and resource dependency theory approach due to the poor corporate governance practices leading to investors' lack of confidence. Method — The study samples included companies listed on the Colombo Stock Exchange in Sri Lanka. The banks and financial institutions were excluded from this study. The study period consists of seven years, and a final sample of 175 companies was selected for the analysis. E-View 9 statistical software was used to test the association between Board composition-related variables and shareholder wealth. Result — The findings revealed that board size, separate leadership structure, and proportion of non-executive directors on the Board positively influence shareholder wealth. At the same time, a separate leadership structure also tends to enhance the shareholder wealth of companies. It is noted that a large board and a higher proportion of non-executive directors on the Board would benefit shareholders, which supports the theoretical prediction of agency and resource dependency theories and the code of best practices on corporate governance in Sri Lanka. The result related to women's representation on the Board does not significantly influence shareholder wealth since the gender balance was not prioritized in Sri Lankan listed companies. Recommendation — The findings provide valuable information to professionals and policymakers to develop a framework for corporate governance systems. It is also advisable to consider the gender balance on board affairs. Corporate governance mechanisms are considered important factors in protecting shareholder interests at large. Contribution — There were few studies in Sri Lanka that specifically examined corporate governance best practices and their impact on firm performance, but no single study directly addresses the shareholder wealth of listed companies in Sri Lanka. This study is intended to fill in this gap.

Modelling the nexus between income inequality and shadow economy in Nigeria Adegboyega, Soliu B.; Odusanya, Ibrahim A.; Ogede, Jimoh S.; Ajayi, Felix O.
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5486

Purpose — This paper aims to examine the relationship between the shadow economy and income inequality in Nigeria.Method — The paper employed Autoregressive Distributed Lag (ARDL), Fully Modified Ordinary Least Square (FMOLS), and Granger causality. This methodology is used to avoid endogeneity and heterogeneity in the model. This paper gauged income inequality using two diverse indicators of the Gini coefficient: the Gini index in proportion to household disposable income and the Gini index in proportion to household market income. In accordance with the literature, our empirical analysis draws on data from the Standardized World Income Inequality Database (SWIID), the World Bank, World Development Indicators, and the International Country Risk Guide (ICRG) for Nigeria from 1991 to 2018.Result — The findings of ARDL and FMOLS suggested a positive relationship between income inequality and the shadow economy, based on both measures of income inequality. In the short term, however, the shadow economy and income inequality are negatively correlated. Furthermore, we discovered a one-way causal relationship exists in Nigeria between the shadow economy, household disposable income, institutional democracy, household market income, and corruption control (CCI).Recommendation — Shadow economy has been regarded as an avenue to create job opportunities and raise poverty-income levels. It is critical that, for the shadow economy to reduce income inequality in Nigeria, policymakers should develop much better policies aimed at addressing income inequality.Contribution — In order to understand the relationship between income inequality and shadow economy activities in Nigeria, this study employed three methodologies, namely: Autoregressive Distributed Lags (ARDL), Fully Modified Ordinary Least Squares (FMOLS), and Granger Causality. The result offers reliable recommendations for pro-poor interventions that aim to limit the growth of informality via redistributing incomes.

Has economic growth reduced poverty in Nigeria? A critical analysis of the last two decades Olasode, Tikristini; Eke, Chukwuemeka; Olaleye, Olalekan Oluwabunmi
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5506

Purpose — This paper aims to examine how Nigeria's economic growth over the past two decades has contributed to poverty reduction.Method — This study adopted the desktop research method of qualitative and quantitative data and used various sources, including academic journals, publications, books, articles, and reports. The National Bureau of Statistics (NBS) of Nigeria, the United Nations Development Programme (UNDP), the Human Development Report, the World Bank Indicators, and the Central Bank of Nigeria (CBN) Statistical Bulletin are all places where secondary statistical data comes from.Result — Nigerian economy has experienced significant growth over the last two decades, but poverty rates in the country remain high. We also discovered that the Nigerian economy's high level of inequality, corruption, jobless growth, and monocity are some issues that have hindered the translation of economic growth into significant poverty reduction.Recommendation — Based on the analysis of this research and the peculiarity of the Nigerian economy, this paper recommends that diversification of the economy, investment in public services, and policies that encourage pro-poor growth are effective strategies that would lead to more significant poverty reduction. In addition, there is a need to study the nature of inequality in Nigeria. An in-depth study needs to be done on income inequality and the multidimensional forms of inequality prevalent in the country.Contribution — Research on economic growth and poverty in Nigeria mostly concentrated on the relationship between these variables. Only a few studies have investigated why the poverty rate continues to rise amid economic growth. This study tries to fill this gap and contribute empirically to the current literature on economic growth and poverty in Nigeria by studying the economic situations and factors surrounding the country's rising poverty rate.

Commercial and social activities of Indonesian Islamic banks: do they relate? Sukardi, Budi; Nur, Muhammad Alan; Fachrurazi, Fachrurazi; Husaen, Fuad Dhiya Ul; Asmanto, Eko
Journal of Enterprise and Development (JED) Vol. 4 No. 2 (2022): Journal of Enterprise and Development (JED)
Publisher : Faculty of Islamic Economics and Business of Universitas Islam Negeri Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20414/jed.v4i2.5584

Purpose — This study investigates the relationship between commercial and social activities in Indonesian Islamic banks.Method — This study employed a Panel Vector Error Correction Model (PVAR) model with Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality. Observations were conducted from 2010 to 2020 on eight Islamic banks in Indonesia, representing 72.72 percent of the total Islamic banking population in Indonesia. The collecting of data pertains to the yearly financial report. Social activities are based on the amount of zakat fund distribution (ZKT) and benevolence fund distribution (DKB). Commercial activities are based on Islamic banking financial ratios that are proxied by Return on Assets (ROA), Financing to Deposit Ratio (FDR), and Non-Performing Financing (NPF).Result — The results showed that social activities in Indonesian Islamic banks are influenced by their commercial activities, but it does not apply vice versa. In other words, there is a one-way relationship between commercial and social activities in Indonesian Islamic banks.Contribution — This study contributes by studying the relationship between commercial and social activities by using the PVAR model with the analysis of Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality which so far have not been explored.

Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name
Dr. Muh. Salahuddin

Contact Email
muhsalahuddin@uinmataram.ac.id

Phone
+6287765688800

Journal Mail Official
jed@uinmataram.ac.id

Editorial Address
Jl. Pendidikan No. 35 Mataram Gedung Fakultas Ekonomi dan Bisnis Islam UIN Mataram

Location
Kota mataram,

Nusa tenggara barat

INDONESIA

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name Dr. Muh. Salahuddin

Contact Email muhsalahuddin@uinmataram.ac.id

Phone +6287765688800

Journal Mail Official jed@uinmataram.ac.id

Editorial Address Jl. Pendidikan No. 35 Mataram Gedung Fakultas Ekonomi dan Bisnis Islam UIN Mataram

Location Kota mataram, Nusa tenggara barat INDONESIA

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Contact Name
Dr. Muh. Salahuddin

Contact Email
muhsalahuddin@uinmataram.ac.id

Phone
+6287765688800

Journal Mail Official
jed@uinmataram.ac.id

Editorial Address
Jl. Pendidikan No. 35 Mataram Gedung Fakultas Ekonomi dan Bisnis Islam UIN Mataram

Location
Kota mataram,

Nusa tenggara barat

INDONESIA