Hasil untuk "Revenue. Taxation. Internal revenue"

Moussa Diop, Richard K. Green

The Tax Cuts and Jobs Act of 2017 (TCJA) had a major impact on the tax liability of highincome individuals in states with high state and local taxes. The impact arose from a newly instituted $10,000 cap on state and local tax deductions (SALT), meaning that itemizers with more than $10,000 of state and local taxes saw their effective tax liabilities rise by as much as 58 percent. If states were previously in a Tiebout equilibrium regarding local taxation and spatial allocation, this change in Federal tax policy would upset that equilibrium, inducing migration. Using a difference-indifferences framework and Internal Revenue Service data, we find that TCJA induced movement from high SALT states to low SALT states.

Keerthi Amistapuram

Tax policy aims to stabilize the economy and provide basic public services to meet the needs of the domestic economy. However, it is dynamically implemented by governments to regulate economic fluctuations. Tax revenue, affected by many internal and external factors, is difficult for governments to predict. Tax noncompliance and evasion also hinder the effectiveness of tax policy. Consequently, the formulation of tax policy is difficult and needs to be based on a predictive model that can provide reliable decision support. Reinforcement learning (RL) is a branch of machine learning that forms policy through reward-driven interaction with an environment. By setting the control problem of tax policy into an RL framework, reinforcement learning can realize the adaptive and autonomous optimization of tax policy. Tax policy needs to improve the return on taxation while pursuing other economic goals and maintaining the stability of taxation in order to stimulate compliance and avoid deformation of the tax base. Therefore, it is necessary to ensure that the improvement of taxation return does not affect investment incentives, both domestic and foreign. For public systems, such as social security and education, the rational planning of short-term expenditure and its cycle through a counter-cyclical stance of tax policy in line with economic needs within the overall revenue and expenditure plan.

Baghirzade Manaf, Deniss Djakons, Daria Bilokon

Drawing on institutional perspectives and theoretical models such as the OLI paradigm, internalization theory, and the investment development path, the article highlights that foreign direct investment (FDI) is driven by a mix of resource-, market-, efficiency-, and asset-seeking motives, often overlapping in practice. While FDI can boost industrialization, productivity, technology and innovation, and integration into trade, its gains remain contingent and mostly rely on host country absorptive capacity, governance quality, and policy setting. Overall, FDI emerges as a potentially transformative force whose developmental impact is shaped by both firm-level strategies and broader structural conditions, offering a nuanced foundation for analyzing its empirical relationship with U.S. industry performance. The article outlines a multi-stage empirical framework used to examine the relationship between Chinese FDI inflows and U.S. industrial performance from 2000 to 2024. It begins with the selection of twelve key industrial indicators – spanning labor, investment, innovation, and environmental impact – based on global FDI literature and sourced from reputable institutions. To ensure data comparability, missing values were imputed using ETS forecasting, and all variables were standardized through z-score normalization. Stationarity was verified through the Augmented augmented Dickey-Fuller test and differencing where appropriate. Preliminary linear correlations were identified through Pearson correlation analysis, and ordinary least squares regression models were employed to quantify the direction and extent to which FDI had an impact on selected indicators. Finally, Granger causality tests were conducted to assess whether Chinese FDI can statistically predict changes in industrial performance, thereby introducing a temporal dimension. Together, these steps establish a rigorous and statistically valid basis for evaluating the economic relevance and potential causal role of Chinese FDI in shaping U.S. industry outcomes. The empirical research determines Chinese FDI inward flows to be positively and significantly related to five important American industrial variables: employment, investment in capital, capacity utilization, energy consumption, and CO₂ emissions. Pearson correlation coefficients are between r ≈ 0.5756 (for employment) and r ≈ 0.7538 (for CO₂ emissions), and all five demonstrate strong and moderate correlations along with p-values < 0.05. Regression analysis also yields these relations, though through statistically significant coefficients (e.g., β ≈ 1.0577 for CO₂ emissions, β ≈ 0.6736 for investment in capital), and R² values between ≈ 0.33 and ≈ 0.57, which indicate a strong explanatory power for FDI. And for respective metrics, Granger causality tests yield p-values well above 0.05 (e.g., p ≈ 0.6992 for employment, p ≈ 0.3845 for investment in capital) and therefore no statistical short-run causal relationship. Thus, while FDI is closely associated with improved industrial outcomes, its influence appears to be contemporaneous rather than predictive, shaped more by structural alignment than by temporal causality.

Iryna Pozovna, Wojciech Duranowski, Olga Pankiv et al.

The current state of economic and political relations between the United States and China plays a key role in shaping the future economic and geopolitical picture of the world. The trade war between these superpowers is already having a strong impact on many countries. The article uses ARIMA modelling and correlation-regression analysis to study structural changes in investment policy and development of production capacities in India and Vietnam in the context of the impact of changes caused by the US-China trade war and identifies the functional dependence of the stock market of India and Vietnam in 2014-2014 on the main US and Chinese stock indices. A specific case is chosen for the analysis – the trade war between the United States and China, which has been going on since 2018. A chronological analysis of the events is carried out, and the key stages of escalation and de-escalation of the conflict are described. The impact of sanctions, duties and restrictions on bilateral economic relations and the overall structure of global supply chains is determined. Particular attention is paid to the analysis of the reaction of third countries, in particular India and Vietnam, which were able to use the situation to increase production capacity and attract foreign capital and technology. These countries have demonstrated a high level of flexibility and adaptability and offered favourable conditions for business relocation, which has become a strategic advantage in the face of geo-economic instability. Stock indices of four countries were used for modelling: the US (S&P 500), China (Shanghai Composite), India (BSE Sensex) and Vietnam (VN-Index) as the most representative for analysing investment activity and business expectations. The study collected monthly data for several years, which allowed us to track the dynamics before, during and after the main stages of the conflict. According to the results, the S&P 500 index has had a strong impact on the stock market indicators of India and Vietnam. The values of the standardised coefficients (b*) ranged from 0.76 to 0.98, indicating a strong positive relationship. At the same time, the t-test and p-level confirmed the statistical significance of the impact. In contrast, the Shanghai Composite had a much weaker impact, sometimes even negative. This may indicate a decline in investor confidence in China due to geopolitical instability and attempts to diversify risks. The study proves that trade wars can significantly change the structure of global value chains. Countries that adapt to new conditions in a timely manner and offer attractive opportunities for capital flows are able to benefit from such conflicts. India and Vietnam are examples of countries that have been able to turn a threat into an opportunity.

Stacey L. Morin

This paper addresses the critical challenge of mitigating bank failures and enhancing regulatory oversight in the banking sector by leveraging concepts from systemic risk theory, financial regulation theory, and behavioral finance theory to propose a comprehensive framework. The study aims to identify systemic vulnerabilities, evaluate existing regulatory mechanisms, and propose actionable strategies to strengthen financial resilience. Through an interdisciplinary approach, the paper develops the Integrated Resilience Framework, which emphasizes dynamic risk assessment, adaptive regulatory policies, and the incorporation of behavioral insights into oversight practices. The author’s contribution to solving the scientific problem under study involves a conceptual framework application that offers a novel perspective by synthesizing theoretical concepts with practical solutions, addressing gaps in traditional regulatory approaches, and highlighting the importance of global coordination. The findings demonstrate the interconnected nature of financial systems, the limitations of static regulatory frameworks, and the role of behavioral factors in exacerbating systemic risks. The study’s practical significance lies in its ability to guide policymakers and financial institutions in implementing proactive measures to stabilize the banking sector. Recommendations include enhancing systemic risk monitoring, adopting forward-looking regulatory tools, and leveraging behavioral insights to mitigate market disruptions. Despite its contributions, the study acknowledges limitations such as resource constraints and the need for further empirical validation. Future research directions include integrating advanced technologies and exploring the impact of digital finance on systemic resilience. This research provides a robust foundation for developing a resilient and adaptive regulatory ecosystem capable of addressing emerging challenges in the global financial landscape.

Lynda Ait Bachir, Oumelkheir Elbaroud, Fatma Bouderra

The accurate pricing of automobile insurance remains a critical challenge, particularly in markets where traditional models fail to capture risk heterogeneity. This study addresses the limitations of conventional Poisson models, which assume uniform accident probabilities among insured individuals, by incorporating advanced probabilistic models that account for overdispersion and individual risk variability. The primary objective is to develop a more precise and equitable pricing model for automobile insurance premiums, integrating statistical and Bayesian inference techniques. The research focuses on Algeria, a market characterized by distinct driving conditions, regulatory frameworks, and demographic patterns that influence accident frequency. Using a dataset of 680 insured individuals from the Société Algérienne d'Assurances, collected over the period 2021–2024, this study applies the Poisson-Gamma and Poisson-Inverse Gaussian models to refine accident risk assessment. The findings reveal that accident frequency is significantly influenced by factors such as gender, age, driving experience, vehicle power, and usage. The Poisson-Gamma model outperforms the standard Poisson model by better capturing individual differences, while the Poisson-Inverse Gaussian model further refines risk estimation by addressing heavy-tailed distributions. Additionally, a Bayesian posterior pricing framework within a Bonus-Malus system is introduced, enabling gains to dynamically adjust premiums based on an individual’s accident history. The study confirms the superiority of these models through statistical validation and goodness-of-fit tests, demonstrating their potential for improving risk assessment and pricing accuracy. The results offer practical applications for insurance companies, policymakers, and regulators seeking to enhance premium fairness and financial sustainability.

Dao Thi Dai Trang

This study focuses on the burden of tax compliance of Small and Medium Enterprises (SMEs) in Vietnam which is a vital component of Vietnam economy, accounted for 45% GDP and 31% of total State budget revenue, attract more than 5 million employees. Based on a quick survey on the compliance cost and their impact on the performance of Vietnamese SMEs, we try to make a contribution not only for researchers but also for legal and taxation system to improve the transparency of accounting information system, internal control of the firms. The result of our study suggests that among those tax compliance cost in the SMEs: external, internal tax cost, and miscellaneous tax cost, the internal tax cost accounted for the major expenses in tax compliance in Vietnam, after that the miscellaneous tax cost also a significant cost for complying with tax regulation. External costs were evaluated at low percentage compared to the left component of tax procedure cost. With this result, study have shown some tax compliance cost type making burden for SME as well as evaluating issue in tax system in Vietnam.

Richmell Baaba Amanamah

Good corporate governance influences the capital structure adopted by a firm. Higher financial leverage increases a firm’s risk. This might result in a window-dressing of financial statements to maintain the value of the firm. The study examined the interaction between corporate governance, financial leverage, external audit quality, and their combined influence on the quality of financial reporting inside enterprises in Ghana. The extensive inquiry was conducted using a dataset consisting of 650 observations and encompassing the timeframe from 2009 to 2021 using SPSS Process version 4.2. The findings of this study revealed a significant inverse correlation between the size of the board and the level of compliance with International Financial Reporting Standards with a correlation coefficient of -0.056. With a correlation coefficient of 0.003, the analysis revealed that there is no linear association between Board Gender Diversity (BGD) and International Financial Reporting Standards. With regards to Independent Audit Committee with a correlation coefficient of around 0.068, the findings of the study indicated a statistically significant positive relationship between the presence of an Independent Audit Committee and the level of compliance with International Financial Reporting Standards. The study showed a negative correlation of -0.024 between Financial Leverage and International Financial Reporting Standards Compliance. The observed data suggests a notable and favourable correlation between Audit Fee and International Financial Reporting Standards Compliance with a significant positive correlation of around 0.157. The model employed in the study exhibited multiple R (R) of about 0.191, indicating a modest positive association between the predictor variables and International Financial Reporting Standards Compliance. The coefficient of determination (R Square) was 0.037, indicating that 3.7% of the variation in International Financial Reporting Standards Compliance can be attributed to the predictor variables in the model used for the study. Furthermore, the study revealed an unstandardized coefficient of -0.003 and a standardized coefficient of -0.078 for Board Size, 0.023 and 0.016 for Board Gender Diversity, 0.028 and 0.109 for the Independent Audit Committee, -2.152E-05 and -0.031 for Financial Leverage and 2.809E-08 and 0.156 for Audit Fee. The study again revealed a significant indirect effect through Financial Leverage (FL) on Board Size and International Financial Reporting Standards Compliance with bootstrapped results of 0.0001. On the contrary, the study revealed that Financial Leverage does not mediate Board Gender Diversity and International Financial Reporting Standards Compliance, Independent Audit Committee, and International Financial Reporting Standards Compliance with, an indirect effect of -0.0021 and -0.0009 respectively. With mediation through Audit Fee, the study showed significant indirect effects for all three independent variables. Board Size at 0.0000, Board Gender Diversity at -0.0016, and Independent Audit Committee at -0.0027. The findings from the direct effects study indicate that Board Size and Audit Fee have a notable influence on IFRS Compliance, hence affecting the quality of financial reporting. However, no concrete evidence was found to establish a link between Board Gender Diversity and Independent Audit Committee and IFRS Compliance. For the mediation effects, it was discovered that Financial Leverage played a role as a mediator in elucidating the connection between Board Size and IFRS Compliance. Furthermore, the Audit Fee variable served as an intermediary in clarifying the associations between Board Size, Board Gender Diversity, Independent Audit Committee, and IFRS Compliance. It is recommended for companies to give utmost importance to the principles of openness, accountability, and consistent monitoring of financial leverage. Moreover, the study recommends the allocation of resources towards high-caliber external audits as it plays a pivotal role in bolstering the precision and dependability of financial reporting.

Abdessalam Belbali, Samir Ouldbahammou, Abderrahim Belbali et al.

This study examines the impact of exchange rate fluctuations on the financial market. It provides an empirical analysis of how changes in the Saudi Riyal exchange rate against the US dollar affect the trading index in the Saudi financial market from 2022 to 2024. The study used a set of standard tests, including the Phillips-Perron test to assess the stationarity of time series, and the cointegration test employing the autoregressive distributed lag (ARDL) methodology, alongside the Granger causality test. The results indicated the existence of a long-term equilibrium relationship between the exchange rate and the trading index. In the short run, there is a negative (inverse) relationship between the exchange rate and the trading index, such that a one-unit increase in the exchange rate leads to a decrease of 316.677 points in the Saudi financial market index. The short-term model results reveal that the coefficient of the error correction term indicates the speed at which the trading index in the Saudi financial market returns to its long-term equilibrium value. In each period, the error from the previous period (t-1) is corrected by about 28%, which is considered a weak adjustment factor. However, no causal relationship between the exchange rate and the trading index in the Saudi financial market was identified.

Muhammet Durdu, Ümit Süleyman Üstün

Crypto assets are one of the important milestones of digitalization. They have created paramount problems related to tax systems. The United States, which was one of the first countries where these assets became widespread, gained experience with the regulations it introduced. Observing these experiences and making inferences for similar regulations to be made in Türkiye is the main objective of this article. Judicial decisions and doctrinal studies in US law on the subject are examined, and the activities of the US Internal Revenue Service are explained. It should be said that although the United States began regulations roughly ten years ago, there is no undisputed solution for the taxation of crypto assets in the country. Still, some inferences could be made from the United States experience. One of the main results reached is that tax regulations regarding crypto assets should not impose heavy burdens and financial duties on taxpayers. It has been concluded that laying a withholding responsibility on intermediary institutions such as crypto asset exchanges or a transaction tax with a small percentage is an important tool in ensuring tax compliance. Consulting experienced crypto asset users and intermediary institutions will be a crucial step while conducting a regulatory impact analysis.

Muhammad Arsalan Khan, S. Nuryanah

Abstract Taxation has a vital role as a domestic financial source to achieve Sustainable Development Goals (SDGs). To increase domestic revenue, combating tax avoidance is important, especially for Indonesia, one of the most populous countries with the fact that the 2020 country’s tax-to-GDP ratio decreased to 10.1% in 2020 which is below the Asia and Pacific average of 19.1%. This paper examines the effect of the tax policy of Indonesia, i.e., tax amnesty and other factors on tax aggressiveness. Indonesia is taken as the case study for the specific characteristics of its tax reforms. The sample of this study consists of 402 observations from manufacturing companies listed in the Indonesian Stock Exchange (IDX) for the periods of 2013–2018. This study collected secondary data and employed a purposive sampling method for the selection of samples. Multiple regression analysis was used to examine the factors affecting tax aggressiveness. The results show that internal governance mechanisms, namely independent commissioners and institutional ownership, as well as the company’s characteristics, namely leverage and profitability, have a significant effect on tax aggressiveness. This study, however, cannot find the effectiveness of tax amnesty in combatting tax aggressiveness. This study brings an implication for developing tax policies for companies in Indonesia, to reduce tax aggressiveness.

Mercy Kessy, Ni Made Sukartini

The debate over the effectiveness of taxes as a tool for promoting economic growth still needs to be solved, with several studies indicating mixed effects of taxes on economic growth. The purpose of this research is to assess the impact of taxation on economic growth in Africa. The study spans eleven years, from 2008 to 2018, and includes multiple variables for 21 African countries. GDP is a dependent variable used as a proxy for economic growth. Numerous GDP-determining predictors were utilized as independent variables; these variables were categorized into three groups: The supply side consists of human capital (population and literacy rate) and economic activities (trade and services). Demand side variables include consumption, government expenditures, net exports, and gross capital formation. Lastly, taxation variables consist of tax revenue, corporate tax rate, number of tax payments, personal income tax, and taxes on income, profits, and capital gains. The study conducted preliminary tests, including descriptive statistics, correlation matrix, and pooled least square estimations for panel data. Based on the results, all macroeconomic determinants have statistically significant effects on GDP except trade. Tax revenue and corporate tax rate positively affect GDP, while personal income tax rate and tax on income, profit, and capital gain negatively affect GDP. In general, taxation has a favorable effect on the economy of African countries because emerging countries use taxation as an internal key to generate revenue and improve economic growth.

Miloudi Kobiyh, Adil El Amri

The purpose of this work is to examine new avenues for developing financial theory, including the role of ethics and cognitive psychology. This paper explains the Inefficiency of the financial markets and the paths to the development of a modern financial theory. Compliance with Islamic ethics means embarking on a far-reaching reform to transform the dominant financial model and tackle socio-economic objectives; it means pursuing life's broader aspirations, such as cooperation and solidarity. Similarly, investor emotions, such as over-confidence and optimism, affect investor behaviour and are implicated in their investment choices. Exploring these new avenues of finance means deciphering the behaviour of financial market participants, and thus shedding light on the decision-making process of financial investors. The aim is to see how psychological appeals and ethical attitudes have come to occupy an undeniable place in finance. More specifically, the aim is to explain the factors contributing to the emergence of Islamic finance and behavioural finance and to analyse how the limited efficiency of financial markets marks the starting point for these approaches and thus the development of modern finance. By allowing the use of financial capital, this finance makes itself available to the real economy and serves it. Its growth and development will have favourable repercussions on the entire socio-economic system. The key is to focus on projects and investments that are in line with the prerogatives of behavioural finance and ethics. This is a solution to the inefficiency of the financial markets, as it will result in better performance.

Azzaoui Khaled, Talhaoui Fares, Derrardja Nazim

The “2008-09” global financial crisis has underlined that the interaction between liquidity risk and bank solvency forms an important factor that makes banks particularly vulnerable to a global crisis. At the same time, stress-testing models do not consider the dynamics between solvency and liquidity risk the possibility of reducing the impact of stress on bank solvency and financial stability. In this context, the aim of this paper is to examine this highly relevant issue in the financial literature, and answer to the main question: Is the interaction between solvency and liquidity risk empirically significant in the context of the Algerian banks? Based on an econometric model using a simultaneous equation approach on panel data of 19 banks over 6 years running from (2016 to 2021). Our results validate our hypothesis about the interaction and show that these two risks are determined simultaneously. Building on this finding, we suggest that the authorities should emphasise developing integrated liquidity and solvency stress tests. Our results also show the need of the Algerian banks to set up a regulatory framework for liquidity in line with the international prudential regulations to enhance the performance of this sector.

Aanuoluwapo Adebisi Olonila, Ditimi Amassoma, Bayode Olusanya Babatunde

In auspicious macroeconomic setting, monetary policy should increase credit availability, particularly in the real sector, to spur investment; however, this is not the case in the Nigerian economy. In this study, the impact of monetary policy on bank credit and investment in Nigeria from 1981 to 2020 was investigated. The central bank of Nigeria's statistics bulletin was the source of the data used in this study. Using the data gathered, the study used Auto-Regressive Distributed Lag (ARDL). The study’s findings indicate that bank loans and investment have a long-term association with monetary policy. In addition, it was observed that while bank loans to the private sector and the liquidity ratio had short-term negative effects on investment, the cash reserve ratio, monetary policy, money supply, and inflation rate had long-term positive effects on investment. According to the study's findings, monetary policy significantly and favorably affects bank credit and investment in Nigeria. The study suggested that the CBN adjust the monetary policy rate by reducing the cash reserve ratio, which will increase liquidity and allow the banks to discharge their credit capacity with the aim of improving investment in Nigeria. Monetary authorities should view credit as a major channel for implementing monetary policies, and this urgent adjustment should be made.

Abubakar Ibrahim Karaye, Nurwati A. Ahmad-Zaluki, Bazeet Olayemi Badru

This study aims to evaluate the effect of credit committee characteristics on bank asset quality in Nigeria. The paper examines the credit committee characteristics namely: credit committee independence, credit committee non-executive directors, credit committee size, credit committee meetings, credit committee gender, credit committee expertise, credit committee chair-gender, credit committee chair-independence and chief executive officer in credit committee, and their influence on non-performing loans. Descriptive research design is used on a sample consisting of 18 commercial banks in Nigeria. Secondary data is obtained from the published annual reports covering thirteen (13) years period (2006-2018). Data analysis involved Correlation Coefficient, Multiple Regression Analysis and Dynamic Panel Model estimations using Generalize Method of Moments. The study finds that credit committee independence and credit committee size have a significant negative relation while credit committee gender, credit committee meetings, credit committee chair-independence, and presence of chief executive officer in credit committee have a significant positive relation with non-performing loans. The study therefore recommends that, policymakers and bank executives in Nigeria should concentrate their efforts on the characteristics of credit committee as a whole, rather than on a few elements that have been scientifically demonstrated to have an impact on bank asset quality. This may likely enhance the quality of bank assets.

Mykola Melnyk, Mykyta Kuchkin, Andriy Blyznyukov

This research is dedicated to ambitions of commercial banks in a form of a comparison of existing traditional banking models Versus FinTech solutions. Examples presented in the study are based on global market and forecasts are based on McKinsey and CB Insights reports. The hypothesis of this research imposed and suggested there are neither traditional model of commercial banks will remain at the constant, instead due to the mutual gain of the symbiosis the symbiosis commercial banks and FinTechs will respond to incentives. Research questions were: i) what are the ambitions of commercial banks in generating profits and how do they change in line with growth of the market of FinTechs? ii) to which extent traditional banking models and FinTechs solutions can be compared by assessed form the perspective of operations?; iii) which scenario out of tradition banking models, FinTechs only and a symbiosis between both is most likely to progress in the closest decade? Findings demonstrate that commercial banks’ financial ambitions continue to transform in line with product diversification they propose, commercial banks transform in their products and pricing will keep in balance between remaining competitive and profitable. The most realistic scenario in the future of commercial banks and FinTech solutions is the in-depth symbiosis.

Kadiri Kayode I., Olorunmade Gbenga, Raji Lukmon Ayobami

This study examined the relationship between dividend policy and share price movements with evidence from firms listed on the Nigerian Stock Exchange. A systemization literary approach for data analysis was panel regression analysis and Generalized Methods of Moments (GMM). Panel data covering the year 2011-2020 were obtained from the financial statements of twenty firms listed on the Nigerian stock exchange. It was discovered that dividend yield has negative relationship with share price movement. It was discovered that Dividend yield has negative and significant relationship with Share price. It was revealed thatfirms’ size has positive and significant relationship with stock price volatility. The study therefore recommends that the stakeholders of quoted firms must make sure that percentage of earnings disbursed as dividends to shareholders have good influence on the value of the company’s common stock at the stock market on a continuous base. It was recommended that Stake holders should ensure that the ratio of a quoted company’s annual dividend compared to its share price have good influence on the value of the company’s common stock at the stock market on a frequent base. Also, the stake holders of quoted firms must map out strategies of increasing their sizes in terms of asset, branch creation etc., this will increase patronage and profit of quoted firms which can have good influence on the value of the company’s common stock at the stock market.

Samar Rizk

This study explores the impact of main idiosyncratic endogenous (Capital ratio, Diversification, Liquidity, Return on equity (ROE), Banks assets’ size) and macroeconomic exogenous (Inflation rate, GDP growth rate and HHI concentration index) determinants of the banking firm that influence banks’ cost efficiency. Using the SFA (Stochastic Frontier Approach) we estimate cost efficiency of the MENA banking sectors through a two-stage model: i) Including idiosyncratic and macroeconomic factors at a first stage under SFAW (SFA With) and ii) excluding these factors under SFAWO (SFA without) at a second stage. By using this method, SFAW versus SFAWO, we compare between the efficiency frontiers and scores obtained and understand the effect of the integration of main determinants on efficiency of banks in the MENA region. Using a sample of 240 observations for MENA banks collected from 18 banking sectors, we analyze whether these criteria had impact on cost efficiency throughout 1999-2017. We find that SFAW scores of efficiency are higher than SFAWO. Furthermore, our results show clearly the impact of determinants selected on cost efficiency frontier. Finally, notwithstanding ongoing fundamental changes in MENA’s banking industries, the empirical results, show that these inefficiencies can be explained by the idiosyncratic factors (Assets ‘size, liquidity, profitability, etc.) which are under the control of bank managers and the macroeconomic environment (economic growth, inflation) which largely depends on the economic, monetary and financial policies adopted in each country of the MENA region.

Ibrahim Tahat

This study investigates the link between the cost of capital, and both share book values and market prices on Qatari Stock Exchange. The rational of this test suggested that their relationship between the published financial data and decision making as result of complying with transparent disclosure, in capital markets which suggested that this data has lost its value relevance to shareholders. Ohlson (1995) basic equity valuation model applied in this research, which linked to the firm’s equity market value to book values adjusted for abnormal returns. Data used in this study represent all listed firms on Qatari Stock Exchange, to test this assumption for the period from 2010 to 2019. The result indicated a negative correlation among cost of capital and both firms book values and share market prices. Firms bearing higher risks are predicted to earn higher returns. According to the study's findings, statistical evidence supports the claim that raising the amount of leverage raises the risk for equity shareholders. Because of an increase in leverage results in a higher expected return on investment to compensate equity shareholders for the increased risk.