The moderating effect of information technology capability on the relationship between business continuity management factors and organizational performance

Despite the enormous acknowledgement of the importance of Business Continuity Management (BCM) in sustaining organization survival, very limited studies have focused on the effects of BCM on organizational performance. Hence, the purpose of this study is to provide the empirical evidences that support the relationships that exist between BCM Factors and Organizational Performance with the moderating effects of Information Technology Capability (IT Capability) in organizations from various sectors in Malaysia. Based on the existing literature, BCM Factors are operationalized by Management Support, External Requirement, Organization Preparedness, and Embeddedness of Continuity Practices. A combination of selfadministered and mail survey was deployed involving 147 ISO 27001 and ISO 22301 certified organizations representing both public and private sectors. These organizations were selected as they are deemed to possess a considerably higher sense of commitment towards embracing BCM best practices to enhance their business resilience. At the end of the data collection phase, the study managed to obtain 77 usable responses constituting an effective response rate of 55 percent. The findings indicate that BCM Factors namely External Requirement and Embeddedness of Continuity Practices are significantly related to Overall Organizational Performance and Non-Financial Performance. However, only External Requirement is found significantly related to Financial Performance. The results also reveal that fully supported relationships are found between IT Capability and all Organizational Performance dimensions. In addition, the findings show that IT Capability moderates the relationship between BCM Factors and Organizational Performance. These results provide valuable insights to both practitioners and academia for further understanding the effects of BCM Factors and IT Capability on Organizational Performance. Finally, the research limitations are discussed and suggestions on extended area of research are recommended for future researchers

What Factors are Affecting the Underdevelopment of the Debt Capital Market in the GCC Region

For decades, the GCC countries have been dependent on an oil rentier economic model that supported its growth plans. Moreover, the region has enjoyed budget surpluses during that time and considered a net exporter of capital with its petrodollars. However, as the importance of oil as a source of energy diminishes, so does its value. After oil prices dropped over 75% within 20 months in 2014, the GCC countries faced substantial deficits. Consequently, the majority of GCC regions had to learn how to import capital and tap into the debt capital markets both conventional and Islamic. The present research has focused on academic and practical issues relating to the underdevelopment of the GCC debt capital market to establish itself as a viable source of funding both for sovereign and corporates borrowers. The study has adopted action research design to locate a model through which GCC can develop their debt capital market by examining market ecology, the process of persuasion and legitimation exploring organisational ecology and Institutional theory for sharper understanding of the motives. The impact and benefit on various debt capital market stakeholders in the GCC region as regulators, banks, investment companies, rating agencies, investors and the public are also investigated. Finally, a change plan, methodology and approach are recommended for development of the GCC debt capital market

Domestic Financial Development in Emerging Economies: Evidence and Implications.

We construct, on the basis of an original methodology and database, composite indices to measure domestic financial development in 26 emerging economies, using mature economies as a benchmark. Twenty-two variables are used and grouped according to three broad dimensions: (i) institutions and regulations; (ii) size of and access to financial markets and (iii) market performance. This new evidence aims to fill a gap in the economic literature, which has not thus far developed comparable time series including both emerging and mature economies. In doing so, we provide a quantitative measure of the – usually considerable – scope for the selected emerging countries and regions to “catch up” in financial terms. Moreover, we find evidence that a process of financial convergence towards mature economies has already started in certain emerging economies. Finally, we conduct an econometric analysis showing that different levels of domestic financial development tend to be associated with the building up of external imbalances across countries. JEL Classification: F3, F4, G1, G2, E21, E22, C82.Financial development, index construction, commodity and oil-exporting countries, G20, major emerging economies, financial catching up, global imbalances.

Consumption of Family Takaful affected by Microeconomic Factors: A Case Study of Islamic insurance Takaful in Pakistan

This study empirically verifies the link between macroeconomic variables (i.e. income per capita, savings, inflation, stock and index) with the demand for Family Takaful in the context of Pakistan using time-series data from 2006 to 2016 of Pak-Qatar Family Takaful Company and Dawood Family Takaful Company. It was concluded from this study that per capita income is a strong forecaster of Family Takaful demand in Pakistan, while other macro-economic factors such as KSE composite index has significant and positive relationship with Takaful demand in Pakistan. The other three variables i.e. saving, interest rate and inflation are having insignificant relationship with Family Takaful demand in Pakistan

THE PAYOUT POLICY IN THE GCC: THE CASE OF ISLAMIC BANKS

The purpose of this research is to define the payout policy of Islamic banks in the GCC and to identify the factors that influence payout distributions. For this purpose, a two stage research strategy was employed. In the first stage, investors’ and managers’ surveys were conducted to measure the perceptions towards payout policies. In the second stage, the survey results are utilized to formulate and test a payout model by multivariate regression analysis. In the investors’ survey, an electronic questionnaire was posted on internet investment forums in the GCC and sent via email to investors. 287 useable responses were collected. The data was analyzed and the results show that investors prefer to receive dividends due to transaction and agency costs, which supports the dividend relevance hypothesis. The findings suggest that the agency cost is explained by the uncertainty resolution, window dressing and free cash flow hypothesis. Investors were found to assess the payouts, which comprises of dividends and profit distributions for profit and loss saving and investment accounts (PSIA), by comparing it to market and historical rates. Investors were found to diversify their investments based on risk and return. If the characteristics of an asset (e.g. dividend policy) are changed, investors would switch to other assets that meet their investment objectives. In terms of stock repurchases, investors perceive it as a signal that the stock price is undervalued. On the other hand, stock dividends were interpreted by investors as a stock split or capital increase. As for Islamic banking, customers reported that the primary motivation to deal with these banks is the religious obligation. In the managers’ survey, semi-structured interviews were conducted with 10 managers to understand the payout process and the factors that influence distributions. The results show that PSIA distributions are mainly driven by competitors’ payouts, historical distributions, and signalling. As for dividends, managers reported that the payout decision is relevant to the firm’s value. Dividends were believed to comply with the increasing stream hypothesis and the Lintner model. Managers believe that stability of the payout policy is perceived by investors as a positive signal of the bank’s strength. They also believe in the maturity and growth effects arguing that new banks have relatively higher capital expenditures which flatten out over time. Consequently, mature banks tend to have higher and more stable dividend distributions. Finally, managers reported that banks’ liquidity and financial ability has a positive relationship with dividend distributions. Based on the feedback of stage one, a payout model that comprises of PSIA and dividend models was formulated and tested by employing multivariate regression analysis. The study uses the financial data of 13 Islamic banks in the GCC between 1993 and 2008. The results show that PSIA is influenced by competitors’ distribution and historical distribution rates. On the other hand, the results of the dividend model show that dividends are influenced by profitability, historical dividends and the level of maturity. The results of the PSIA model support the competitive payout hypothesis, increasing stream hypothesis, the Lintner model and information signaling hypothesis. The results of the dividend model support the increasing stream hypothesis, the Lintner model, information signaling hypothesis, and the growth and maturity effects. The findings for the competitive payout hypothesis reported by investors, managers, and the PSIA model support the existence of displaced commercial risk, which calls for additional research in this area by the banks and regulators to control it by focusing on research for cooperative insurance schemes, prudent reserve practices, and liquidity management

Islamic banks and service quality : an empirical study of the UAE

EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Information Technology Disaster Recovery Plan (ITDRP) Framework For Banks in Ethiopia

IT services and solutions in the banking sector should be protected to keep the business continuity in a disastrous scenario. This study aims to develop an Information Technology Disaster Recovery Plan (IT DRP) framework in the case of Ethiopian Banks. Qualitative case study method is employed to investigate current best practices and challenges in Ethiopian banks. The findings indicated that Banks do not have IT DRP in place. Lack of framework, lack of focused group, lack of experiences, and lack of standardization are some of the challenges identified. Accordingly, the IT DRP framework is proposed for Banks of Ethiopia. The framework is confirmed and validated by the subject experts. The framework can serve banks as a quality tool to evaluate existing IT DRP or develop new ones based on their business needs. Recommendations are also forwarded and related topics are suggested for future research to extend this work

A FRAMEWORK FOR THE EVALUATION OF CYBERSECURITY EFFECTIVENESS OF ABU DHABI GOVERNMENT ENTITIES

Cyberspace has become one of the new frontiers for countries to demonstrate their power to survive in the digitized world. The UAE has become a major target for cyber conflicts due to the rapid increase in economic activity and technology. Further, the widespread use of the internet in the region to the tune of 88% by the end of 2014 has exposed the critical infrastructure to all forms of cyber threats. In this dissertation, the researcher presents a detailed study of the existing cybersecurity defences globally and an investigation into the factors that influence the effectiveness of cybersecurity defences in Abu Dhabi government entities. Further, the role of cybersecurity education, training, and awareness in enhancing the effectiveness of cybersecurity and the role of senior management in providing strategic direction to government entities on cybersecurity are evaluated in addition to determining the contribution of strategic planning and technology level in ensuring an effective cybersecurity system. The study has evaluated the level of Cybersecurity Effectiveness (CSE) in Abu Dhabi Government Entities and the results show that Science and Technology entity performed better than all other Entities with CSE Mean = 4.37 while Public Order showed the least performance with CSE Mean = 3.83 and the combined model of six factors with R-square value 0.317 after multiple regression implying that 32% change in CSE in the government entities is occurring due to the six (6) independent variables used in the study. Further, results show that management has the responsibility of putting in place strategies, frameworks and policies that respond appropriately to the prevention, detection and mitigation of cyberattacks. Results further indicate that culture-sensitive training and awareness programmes add to the quality and effectiveness of cybersecurity systems in government entities. Further, study findings reveal that qualified and experienced personnel in government entities show a greater understanding of cyber and information security issues. Finally, the researcher proposes a cybersecurity framework and a checklist, with checkpoints, for evaluating the effectiveness of cybersecurity systems within government entities and future research interventions

Risk management in banks: determination of practices and relationship with performance

A thesis submitted to the University of Bedfordshire in partial fulfilment of the requirements for the degree of Doctor of PhilosophyThe issue of risk management in banks has become the centre of debate after the recent financial crises. Several efforts have been made to improve the risk management and performance of banks including introducing the Basel Accords as well as risk management guidelines by central banks. Consequently, the State Bank of Pakistan has issued risk management guidelines to strengthen the risk management system and to improve the performance of the local banks. However, the available literature in Pakistani context fails to explain the impact of these efforts on the performance of banks. The purpose of this study is to empirically examine the effectiveness of risk management processes and their relationship with the performance of banks. This study reviews the relevant literature on banking risk management from diverse methodological strands and synthesises its conclusions to make an addition to the available knowledge; particularly to address certain research gaps regarding risk management and performance of banks in developing countries, specifically in Pakistan. Owing to its empirical nature, the current research adopts a deductive reasoning approach in terms of theory testing. This study applies a mixed method research strategy by taking the quantitative method as the major component, while the qualitative method plays a supplementary role. The sample is composed of twenty banks in Pakistan and the stratification is performed according to the bank category (public, private and foreign) in respect of different strata. The study collects and analyses primary as well as secondary data. This research is carried out in three phases. In the first phase a qualitative system dynamics model (Causal Loop Diagram) is developed based upon interview data analysis to understand and document the behaviour of risk management systems of Pakistani banks. In the second phase, this research conducts questionnaire data analysis by using ordinary least-squares regression to assess the different aspects risk management practices of banks in Pakistan. Finally, two-stage data envelopment analysis technique has been adopted to examine the relationship between the risk management and performance of the selected banks. This study results reflect that it is very important for Pakistani banks to formulate an active risk management process to identify, measure, monitor and control different risks. These results further reveal that formation of a comprehensive risk management system is not only a useful practice to meet the regulatory requirements but an effective exercise to improve the performance of Pakistani banks also. By employing a pragmatic, embedded, mixed method research strategy, this study has created a new insight into risk management in local banks and extends the existing theoretical literature in the field of banking in various ways

Integrating Islamic Fintech into Islamic Social Finance to Revive the Going Concern of MSMEs in the COVID-19 Era

This study seeks to propose a model that integrates Islamic social finance and Islamic fintech to revive MSMEs' going concerns during the COVID-19 pandemic in Nigeria. The study applies content analysis and a multidisciplinary literature review. This study proposes a model that integrates Islamic social finance instruments (such as zakat [Islamic compulsory tax], waqf [Islamic endowment], Islamic microfinance and sadaqat [voluntary charity]) and Islamic fintech platforms (P2P and crowdfunding) that could enable MSMEs to obtain funds to revitalize their going concerns by engaging in various Islamic-based contracts, such as musharakah (equity partnership), murabahah (the cost-plus sale contract), mudarabah (trust partnership), ijarah (lease contract), musharakah mutanaqisah (diminishing equity partnership), qard al-hasan (free interest loan), salam (forward financing transaction), etc. The provision of adequate finance using the proposed integrated model is expected to revitalize the MSMEs' going concerns, which can contribute to the country's economic growth and development. Despite the study's contribution by inventing an Islamic-based model for reviving the MSMEs' going concerns in Nigeria, it is conceptual without empirical validation. Hence, future studies should empirically explore the feasibility of the proposed integrated model. The implications of the findings indicate the need to provide motivational regulations for establishing Islamic fintech companies. There is also a need to provide effective technological applications that ensure the selection of only eligible beneficiaries