Adel Bogari

Corporate Governance Features and Efficiency: Evidence from the Saudi Arabian Banks

International journal of economics and finance, Dec 20, 2019

The aim of this article is to examine the effect of the Corporate Governance features as measured... more The aim of this article is to examine the effect of the Corporate Governance features as measured by the Independence of the board of directors, the board size and the ownership structure (private ownership/State ownership and foreign ownership) on the banking efficiency of Saudi Arabian banks. A data set of the twelve biggest banks for the period 2000 to 2017 is used. As for banking efficiency scores, the methodology is based on the Data Envelopment Analysis (DEA). It allows for Technical Efficiency, Pure Technical Efficiency and Scale Efficiency scores. The results of this study point to the significant role of The Independence (INDEP) variable supported by a positive and significant effect on efficiency in all regressions, indicating a positive relationship with the Technical Efficiency (TE) and the Pure Technical Efficiency (PTE). In the contrary, the independence of the board directors has a negative and significant effect on scale efficiency (SE). According to Board Size variable, results related to this later reveal a negative and a significant effect on technical efficiency (TE), Pure Technical Efficiency (PTE) and Scale Efficiency (SE) in all regressions. Finally, as for the ownership structure variables, results confirm that Private Ownership (OWEN-P) provides positive and significant effects on both the Technical and the Scale Efficiency. This effect seems to be turn to be negative and significant when it is correlated to the Pure Technical Efficiency. State Ownership (OWEN-S) impacts positively and significantly the Technical Efficiency, the Pure Technical Efficiency and Scale Efficiency separately. As for the Foreign Ownership (OWEN-F) variable, except for the Pure Technical Efficiency (PTE), we note a positive and significant effect on the Technical and Scale Efficiency. This study implies better Corporate Governance practices should be supported to improve the overall efficiency and its components. This includes in particular, the Board Size and the Ownership structure variables.

Download

Financial Development, Income Inequality and Poverty Alleviation: Some Empirical Evidence

Research in Applied Economics, Dec 24, 2021

This study examines the relationship between financial development, income inequality and poverty... more This study examines the relationship between financial development, income inequality and poverty reduction in a sample of 48 Sub-Saharan African (SSA) countries, observed during the 1980-2017 period. The results indicate that financial development, when proxied by private sector credit and liquid liabilities, reduces poverty. The results are mixed for the Claims on domestic real nonfinancial sector by the Central Bank. On the other hand, the results of the direct and cross-estimates showed a positive and significant effect of income inequality on poverty. We conclude that income inequality is such large that a larger proportion of the population is impoverished and the poverty gap is widening further. Moreover, income inequality seems to slow down the positive effects of financial development on poverty reduction. The findings allow us to recommend that monetary and public authorities in SSA countries support the development of the financial sector, particularly banks, encourage financial institutions to channel financial resources to the poor but with income-generating initiatives and enforce laws to control income inequality.

Download

Central Bank Independence, Economic Growth and Inflation: Theories and Empirical Validations

International journal of applied economics, finance and accounting, 2020

Economics theory's assumption is that a central bank's independence from political power entails ... more Economics theory's assumption is that a central bank's independence from political power entails a split between political and monetary power. Such a split is unavoidable in order to control price instability without harming other macroeconomic variables such as growth or unemployment. The theory calling for central bank autonomy, started as early as the 1970s and still gaining ground, assumes the role of central banks as an arrangement sin qua non for tying the hands of government and consequently reducing inflationary bias, or even eliminating this scourge. Moreover, such a debate is mostly relevant for monetary policy, because of its inherent incredibility. Then, our aim in this study is to test the relevance of an anti-inflationary policy, reflected in freeing the central bank from the grip of political power, to combat inflation. To this end, we examine samples of developed countries (20 countries) and developing countries (37 countries) observed over the two study periods 1997-2006 and 2007-2016. We found that high-inflation countries and atypical countries biased our results, for both inflation rates and variability. This finding remains valid even after the introduction of a set of political and economic variables likely to affect inflation.

Download

The Financial Development And Economic Growth Nexus: The Role Of Saudi Arabian Financial Institutions

European Journal of Business and Management Research, Dec 29, 2019

This 1 study examines the relationship between financial development, financial institution quali... more This 1 study examines the relationship between financial development, financial institution quality and economic growth in Saudi Arabia. Specifically, we try to determine the effect of the first two variables on economic growth. To this end, we use a dynamic panel approach along with the GMM method to examine data covering the 1990-2017 period. To measure financial development, we opted for a number of proxies; Liquid Liabilities (LIQ), Private Credit of banks, other financial institutions and the Central Bank (ASS). Financial institution quality is measured through socioeconomic conditions, investment profile, law and order, corruption, external conflict and democratic accountability. The results validate the relationship that economic growth is affected by financial development in Saudi Arabia. The results also point to a significant and a positive relationship between financial institution quality and economic growth. Therefore, we recommend that Saudi authorities should consider boosting more financial and banking development that started three decades ago. Equally important is to promote the task of financial institutions so as to be able to secure better savings/ investments and ensure long-term economic growth.

Download

The Economic and Social Impact of the Adoption of Value-Added Tax in Saudi Arabia

International Journal of Economics, Business and Accounting Research, Jun 23, 2020

The purpose of this study is to determine the economic and social effects of the adoption of valu... more The purpose of this study is to determine the economic and social effects of the adoption of value-added tax in the Kingdom of Saudi Arabia. To achieve this goal, a descriptive and an analytical approach was used. We examine a sample of (287) Saudi nationals working in the private and public sectors. Our methodology used the direct questionnaire delivery and receipt method. To process our data and test our research hypotheses, we used SPSS software. The results indicate that the implementation of the value-added tax increases the country's financial resources. However, such an initiative has a negative social impact and faces many challenges. Bearing on these results, we recommend the need to upgrade the quality of the implementation of the on value-added tax law through improving the efficiency and effectiveness of employees in the General Authority of Zakat & Tax, and simplifying tax procedures until the positive effects on the economic and social side rebound. The researcher recommends the need to overcome economic challenges through the commitment of wholesalers and retailers to release tax invoices for all their dealings, and to organize their businesses through electronic invoices. The researcher recommends the need to overcome the social challenges that face the implementation of the value-added tax law, by promoting trust between the community and the General Authority of Zakat & Tax and activating the role of the Zakat and Tax Authority in spreading awareness and tax culture to the community.

Download

Financial Development, Income Inequality and Poverty Alleviation: Some Empirical Evidence

Research in Applied Economics

This study examines the relationship between financial development, income inequality and poverty... more This study examines the relationship between financial development, income inequality and poverty reduction in a sample of 48 Sub-Saharan African (SSA) countries, observed during the 1980-2017 period. The results indicate that financial development, when proxied by private sector credit and liquid liabilities, reduces poverty. The results are mixed for the Claims on domestic real nonfinancial sector by the Central Bank. On the other hand, the results of the direct and cross-estimates showed a positive and significant effect of income inequality on poverty. We conclude that income inequality is such large that a larger proportion of the population is impoverished and the poverty gap is widening further. Moreover, income inequality seems to slow down the positive effects of financial development on poverty reduction. The findings allow us to recommend that monetary and public authorities in SSA countries support the development of the financial sector, particularly banks, encourage fi...

Download

Exploring the Determinants Attractiveness to Foreign Direct Investments: Do Public Governance, Infrastructure and Macroeconomic Policies Matter?

The aim of this paper is to determine the factors that attract Foreign Direct Investments (FDIs) ... more The aim of this paper is to determine the factors that attract Foreign Direct Investments (FDIs) to Central and Eastern European Countries (CEECs) and Southern and Eastern Mediterranean Countries (SEMCs). To this end, this paper tested three variables representing public governance, physical infrastructure and macroeconomic quality, over a ten-year period stretching from 2008 to 2017. The results of the regressions estimated on CEE countries show that entrepreneurs are attracted to this region mainly for governance and infrastructure quality. Macroeconomic policy variables seem to attract less FDIs to these countries. Using aggregated variables, the results of the regressions estimated on SEMCs show that the governance variable becomes statistically significant but retains a low value. The other variables of physical infrastructure and macroeconomic policies seem to be more robust and better explain FDI inflows to this region.

Download

The Economic and Social Impact of the Adoption of Value-Added Tax in Saudi Arabia

International Journal of Economics, Business and Accounting Research (IJEBAR)

The purpose of this study is to determine the economic and social effects of the adoption of valu... more The purpose of this study is to determine the economic and social effects of the adoption of value-added tax in the Kingdom of Saudi Arabia. To achieve this goal, a descriptive and an analytical approach was used. We examine a sample of (287) Saudi nationals working in the private and public sectors. Our methodology used the direct questionnaire delivery and receipt method. To process our data and test our research hypotheses, we used SPSS software. The results indicate that the implementation of the value-added tax increases the country’s financial resources. However, such an initiative has a negative social impact and faces many challenges. Bearing on these results, we recommend the need to upgrade the quality of the implementation of the on value-added tax law through improving the efficiency and effectiveness of employees in the General Authority of Zakat & Tax, and simplifying tax procedures until the positive effects on the economic and social side rebound. The researcher reco...

Download

The Financial Development And Economic Growth Nexus: The Role Of Saudi Arabian Financial Institutions

European Journal of Business and Management Research, Dec 29, 2019

This 1 study examines the relationship between financial development, financial institution quali... more This 1 study examines the relationship between financial development, financial institution quality and economic growth in Saudi Arabia. Specifically, we try to determine the effect of the first two variables on economic growth. To this end, we use a dynamic panel approach along with the GMM method to examine data covering the 1990-2017 period. To measure financial development, we opted for a number of proxies; Liquid Liabilities (LIQ), Private Credit of banks, other financial institutions and the Central Bank (ASS). Financial institution quality is measured through socioeconomic conditions, investment profile, law and order, corruption, external conflict and democratic accountability. The results validate the relationship that economic growth is affected by financial development in Saudi Arabia. The results also point to a significant and a positive relationship between financial institution quality and economic growth. Therefore, we recommend that Saudi authorities should consider boosting more financial and banking development that started three decades ago. Equally important is to promote the task of financial institutions so as to be able to secure better savings/ investments and ensure long-term economic growth.

Download

Central Bank Independence, Economic Growth and Inflation: Theories and Empirical Validations

International Journal of Applied Economics, Finance and Accounting

Economics theory's assumption is that a central bank's independence from political power entails ... more Economics theory's assumption is that a central bank's independence from political power entails a split between political and monetary power. Such a split is unavoidable in order to control price instability without harming other macroeconomic variables such as growth or unemployment. The theory calling for central bank autonomy, started as early as the 1970s and still gaining ground, assumes the role of central banks as an arrangement sin qua non for tying the hands of government and consequently reducing inflationary bias, or even eliminating this scourge. Moreover, such a debate is mostly relevant for monetary policy, because of its inherent incredibility. Then, our aim in this study is to test the relevance of an anti-inflationary policy, reflected in freeing the central bank from the grip of political power, to combat inflation. To this end, we examine samples of developed countries (20 countries) and developing countries (37 countries) observed over the two study periods 1997-2006 and 2007-2016. We found that high-inflation countries and atypical countries biased our results, for both inflation rates and variability. This finding remains valid even after the introduction of a set of political and economic variables likely to affect inflation.

Download

Corporate Governance Features and Efficiency: Evidence from the Saudi Arabian Banks

International Journal of Economics and Finance

The aim of this article is to examine the effect of the Corporate Governance features as measured... more The aim of this article is to examine the effect of the Corporate Governance features as measured by the Independence of the board of directors, the board size and the ownership structure (private ownership/State ownership and foreign ownership) on the banking efficiency of Saudi Arabian banks. A data set of the twelve biggest banks for the period 2000 to 2017 is used. As for banking efficiency scores, the methodology is based on the Data Envelopment Analysis (DEA). It allows for Technical Efficiency, Pure Technical Efficiency and Scale Efficiency scores. The results of this study point to the significant role of The Independence (INDEP) variable supported by a positive and significant effect on efficiency in all regressions, indicating a positive relationship with the Technical Efficiency (TE) and the Pure Technical Efficiency (PTE). In the contrary, the independence of the board directors has a negative and significant effect on scale efficiency (SE). According to Board Size varia...

Download

Revisiting the Nexus Between Inflation Targeting and the Build-Up of the Financial Imbalances

Applied Economics and Finance

The outbreak of the recent global financial crisis in 2007-2008 of the most developed economies, ... more The outbreak of the recent global financial crisis in 2007-2008 of the most developed economies, has spurred criticism that inflation targeting central banks may have neglected the build-up of financial imbalances. In other words the global financial and economic crisis highlights that central banks should be more effective in mastering financial instability, and should achieve an explicit goal of financial stability beyond their traditional emphasis on low inflation. In this paper, we aim to assess whether inflation targeting (IT) actually mattered as regards financial stability. Our empirical evidence has been conducted on a group of 41 emerging economies from which 20 economies adopt Inflation Targeting policy and 21 non Inflation Targeting economies as a group of control, over the period 2000-2017. To do this, we evaluate the time varying treatment effect of the IT's adoption on the banking system stability. Additionally using a variety of propensity score matching methods, ...

Download

Uploads

Papers by Adel Bogari

Log In