The effect of macroeconomic variables on corporate financial development: International evidence from the banking sector | ||
| المجلة العلمية للإقتصاد و التجارة | ||
| Article 6, Volume 51, Issue 4, December 2021, Pages 247-292 PDF (842.17 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jsec.2021.175877 | ||
| Authors | ||
| Hebatallah A. Soliman1; Sherif Elhalaby2; Reem M. Elbolok3 | ||
| 1Assistant Professor of Economic, Faculty of Business Administration, Sinai University, Egypt | ||
| 2Assistant professor of Accounting, Faculty of Business Administration, Arab Open University, Kuwait. | ||
| 3Assistant Professor of Management, Faculty of Business Administration, Sinai University, Egypt. | ||
| Abstract | ||
| Purpose– This study seeks to examine whether macro-economic factors influence on the corporate financial development that measured by banks’ Financial Performance (FP), Dividends and Financial Stability (FS) Design/methodology/approach- The balanced panel data regression model has been adopted. The research data includes 220 banks (150 Islamic banks and 70 conventional banks) across 25 countries for 8 years (2012-2019). The macro-economic factors include unemployment and domestic credit to private sector by banks (percentage of GDP). The Information and Communication Technologies (ICT) includes secure Internet servers and individuals using the Internet and finally Innovation Capability. Findings–The results for the impact of innovation support the negative consequence over FP with insignificant effect on dividends and FS. Similarly, the analysis support the negative impact for secure Internet servers on the FP and no significant for other two dependent variables. Related to the impact of Individuals using Internet, we also just find a positive effect on FS. For the influence of the unemployment, the analysis shows positive effect on the FS while shows negative effect on the dividends as well as shows insignificant consequence over the FP. Finally, the analysis supports the positive consequence for the domestic credits on the three corporate indicators (FP, FS, and dividends). After applying robustness tests, the regression analysis shows identical results. Originality/value–The paper supports to what extent the country factors have a good economic consequences over the banks, which may motivate the government and policymakers to ask for more considering of factors as internet and innovation to develop and enhance the level of performance, stability and dividends. | ||
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