The factors influencing the decision to list on Abu Dhabi securities exchange

The Abu Dhabi Securities Exchange is established to fund corporates, investments and economic growth. However, many companies operating in Abu Dhabi do not take the opportunity and list in the market. In this paper we survey a sample 145 chief executive officers and deputies of the CEO’s in order to explain why firms refrain from going public and float their equity in the market. Our findings indicate that the poor quality of the Abu Dhabi equity market in terms of its inefficiency and inadequate liquidity plays a crucial role in discouraging firms to list in the market. Moreover, management do not list in order to avoid dilution of ownership as well as to retain control of the company. Finally, we find that knowledgeable managers in big companies are more likely to list in the market particularly when they operate in a competitive industry

Economy Program in Turkey

In Turkey, many important steps have been taken towards restructuring the banking sector within the framework of "Transition to the Strong Economy Program" which was put into practice after the economic crisis at the beginning of the 2000s. The positive effects of the program have begun to be seen from the mid-2000s however, there has been a decline in bank profitability. This study takes into consideration the heterogeneity in terms of bank profitability and separate the sector into two groups as low and high profitable banks. In this context, utilizing the panel GMM estimation methods the effects of bank-specific, sector-specific and macroeconomic variables on bank profitability in Turkey were analyzed during the period 2006-2016. The findings reveal significant policy implications for the banking sector.C1 [Ciftci, Cemil] Pamukkale Univ, Dept Econ, Denizli, Turkey.[Durusu-Ciftci, Dilek] Pamukkale Univ, Dept Int Trade & Finance, Denizli, Turkey

Economic freedom, foreign direct investment, and economic growth: The role of sub-components of freedom

This study investigates the causality relationships among the economic freedom, foreign direct investment (FDI), and economic growth for top FDI attracting countries during 1995-2019. Apart from the previous studies, we examine these three sets of causal links simultaneously and use the panel Granger causality test of Konya [2006. Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach. Economic Modelling 23: 978-992], which considers heterogeneity and cross-sectional dependency across panel members. The findings provide weak evidence for the causal links between economic freedom, FDI, and economic growth for the overall score of economic freedom index. We also conduct causality tests for freedom vs. FDI, freedom vs. growth, and FDI vs. growth by using sub-components of the freedom index and reveal too many causality linkages among these variables. Thereby, we conclude that the direction of causality seems to be country and economic freedom indicator specific. These results have important implications for policymakers

The role of institutional quality on FDI: a comparison for pre and post – global financial crises

In this study, the relative importance of institutional quality indicators on foreign direct investment (FDI) is investigated using a dynamic panel regression model for the countries that attracted the most FDI between 1996-2021. The World Bank (2023) data shows that FDI inflows gained a significant momentum at the beginning of the 2000s and reached its highest level in 2007. However, the Global Financial Crises (GFC) created a turning point in FDI inflows and it followed a very volatile course in the following years. For this reason, the analysis focused on the periods pre and post the global financial crisis. As a result of the study, it is revealed that all institutional quality indicators (except the rule of law) have positive effects on FDI inflows in the pre-crisis period, and regulatory effectiveness, government effectiveness and corruption control have a relatively higher impact on FDI inflows. On the other hand, it has been determined that no institutional quality indicator has a significant effect on foreign direct investments in the post-crisis period when FDI inflows are highly volatile

Identifying the nexus between financial stability and economic growth: the role of stability indicators

Purpose: This study aims to examine the interrelationship between financial stability and economic growth with a comprehensive analysis. Design/methodology/approach: The panel Granger causality testing approach is carried out to the panels of the Fragile Five (F5) and the Group of Seven (G7) countries for the period 1998–2020. To capture the different aspects of financial stability the authors use eight different indicators. Findings: The findings reveal some important implications: the relationship between financial stability and economic growth is sensitive to the financial stability indicators for both the F5 and G7 countries. The stability indicators related to the credit market contain much more causality relationship with economic growth than the indicators related to the stock market. Z-score and provisions to nonperforming loans (NPLs) are among the two variables with the highest causality relationship with economic growth. The least number of causality link is found for the Regulatory Capital Ratio and Stock Price Volatility in F5 countries and Credit Ratio, NPLs and Stock Price Volatility in G7 countries. Economic growth affects financial stability through credit market stability indicators and mostly for the F5 countries. No causal relationship is found for any of the financial stability indicators of Canada, the UK and the USA from economic growth to financial stability. Originality/value: Since the linkages between financial stability and economic growth may vary due to country/group specific differences, apart from the previous studies, the authors select two different groups of countries in terms of financial stability and economic size. © 2023, Emerald Publishing Limited

The Interrelationship Between Corruption, Economic Growth, and Trade: Do They Grease or Sand Each Other's Wheels?

The Commonwealth of the Independent States (CIS) is an intergovernmental organization of eleven sovereign states which was created from the ex-USSR in December 1991. Countries in this group are low- and middle-income economies and what is worse, there are many constraints on their economic growth and international trade. One of these constraints and common features of these countries is the high level of corruption. In the literature, it is mostly indicated that weak governance has detrimental effects or in other words, may sand the wheels economies. However, another approach which is called as grease the wheels hypothesis claims that corruption may affect economic activities positively in countries that have weak governance. The aim of this study is to investigate the grease or sand the wheels hypothesis for corruption in the CIS. In order to consider the interrelationship between international trade, growth, and corruption, we estimate tri-variate models by employing the panel bootstrap Granger causality tests. Also, owing to advanced used method, our causality results provide the sign of the causality coefficients. Our findings show that grease the wheels hypothesis is supported for Moldova and Turkmenistan for the economic growth and for Armenia, Kyrgyz Republic, Moldova, and Ukraine for international trade