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The study contributes to the existing literature on intellectual capital (IC) performance and profitability by extending evidence from Pakistan. The study examines the impact of IC performance on the profitability of Pakistani financial institutions. It further examines how corporate governance, bank specific, industry specific, and country specific indicators effect Pakistani banks&rsquo ; profitability. The result reports both the linear and non-linear impact of IC performance on profitability, which affirms an inverted U&ndash ; shaped relationship. Among the three value added intellectual coefficient (VAIC) components, capital employed efficiency (CEE), and human capital efficiency (HCE) are found to have a significantly positive and structural capital efficiency (SCE) is found to have a significantly negative impact on bank profitability. The study notes a positive impact on profitability of factors like board independence, directors&rsquo ; compensation, and higher capitalization. It reports a negative impact on profitability of factors like board size, board meetings, credit risk, industry concentration and economic growth. The results also indicate low profitability of banks during the period of government transition. The study provides insights into the important profitability drives and suggests that the impact of investment in IC on profitability is limited to an extent. The findings of this study are likely to be useful for policy makers, management, and academics.

The aim of this paper is to provide empirical evidence on the relationship between financial development and economic growth and to examine whether there are differences in the size of the impact of financial development on economic growth in countries with different income levels. Furthermore, the impact of additional determinants of economic growth is analyzed. Research problem is lack of empirical evidence on the relationship between financial development and economic growth when financial development is measured by proxy variables on banks and stock markets; low treatment of potential endogeneity problem as well as lack of empirical evidence on the differences in the size of the impact of financial development on economic growth in countries with different income levels. Balanced panel data for 94 countries during the period between 1992 and 2011 are used in this analysis. Five-year averaged data are used to reduce the impact of business cycles and measurement errors. Six models are estimated by using panel fixed and random effects models. However, the analysis indicates that distribution of error terms deviates from normal; the assumption of homoscedasticity is rejected and the presence of endogenous regressor is reported. Therefore, in order to overcome these issues, the dynamic onestep system GMM estimator is used to estimate models. The obtained results indicate that banking sector and stock market development have statistically significant positive impact on economic growth. It has been shown that the impact of banking sector development strongly contributes to economic growth compared to stock market development. Besides, the results show that education has no statistically significant impact on economic growth while inflation, government spending and trade openness have a negative impact. The sixth model indicates that on average financial development strongly impacts economic growth in high and middle-income countries compared to low-income countries, and that the strongest impact is obtained for highincome countries. The results of this paper may motivate policy makers to foster the financial development since it contributes to economic growth. Since financial development contributes to

[Abstract] Over the last years, the concept of social capital as a facilitator of economic activities has been a remarkable issue among economists. In this article, we study the impact of social capital on banking performance focusing on profitability in the European Union for period 2008-2016. Social capital indicators are applied in the model are "trust in others" and "fair behavior of others". We expect more profitable banks in societies with higher levels of social capital. According to the type of data, we apply GMM estimator to do more efficient estimations. We use auxiliary variables such as bank asset, capital adequacy, real interest rate, the cost to income ratio as micro variables, GDP and inflation are employed as macros. Our estimations point at a rejection of the main hypothesis. Opportunistic behavior and less social trust result in more profits for European countries. We justify the results in two ways. First, due to the 2008 financial crisis, trust in all institutions has decreased in European countries. The second reason concerns countries with low levels of social capital. The decrease of trust for the banking system is lower than for other institutions. Therefore, that sector may benefit is such circumstances.

Over the last years, the concept of social capital as a facilitator of economic activities has been a remarkable issue among economists. In this article, we study the impact of social capital on banking performance focusing on profitability in the European Union for period 2008-2016. Social capital indicators are applied in the model are "trust in others" and "fair behavior of others". We expect more profitable banks in societies with higher levels of social capital. According to the type of data, we apply GMM estimator to do more efficient estimations. We use auxiliary variables such as bank asset, capital adequacy, real interest rate, the cost to income ratio as micro variables, GDP and inflation are employed as macros. Our estimations point at a rejection of the main hypothesis. Opportunistic behavior and less social trust result in more profits for European countries. We justify the results in two ways. First, due to the 2008 financial crisis, trust in all institutions has decreased in European countries. The second reason concerns countries with low levels of social capital. The decrease of trust for the banking system is lower than for other institutions. Therefore, that sector may benefit is such circumstances.

This study addresses the issue of whether banking performance impacts financial stability in Southeastern European countries. To answer this question, the GMM approach has been applied in the analyses of the panel data over the period 2000-2015 for Southeastern Europe. The findings reveal the presence of significant positive long-run relationship between ROA, ROE, trade openness, and human capital, while government expenditures have negative impact on financial stability. Trade openness, human capital and government expenditures can keep the financial system stable as a whole. The Granger causality analysis discloses the main hypothesis where the banking system in this part of Europe accounts for more than 80% of the financial system. The study sheds light to the policymakers and research about the role of banking performance on financial stability for this region of Europe. © 2021 Sciendo. All rights reserved.

The objectives of the study are to examine the influence of Human Capital and Governance on Poverty. For this purpose, the study considers 44 developing countries and chooses time span from 2004 to 2017. The data on all variables are collected through World Development Indicators. The study utilized the index for human capital and three governance indicators i.e. Political Governance, Economic Governance and Institutional Governance developed by World Bank Organization. Generalized Method of Moment (GMM) is employed on the panel data for estimation of Econometric results. The results conclude that Human Capital and High Technology Exports are found to be significant causes of reduction in Poverty in Developing countries. Moreover, not only Political Governance, Institutional Governance, Economic Governance but also Overall Governance are reducing poverty in developing countries. Gross Fixed Capital formation and Trade Openness are found to be statistically insignificant. On the other side, Savings for Natural Resource Depletion is examined as increasing poverty in developing countries.

Corruption is often a source of contentious debate, covering different areas of knowledge, such as philosophy and sociology. In this paper we assess the effects of corruption on economic activity and highlight the relevance of the size of the government. We use dynamic models and the Generalized Method of Moments (GMM) approach for a panel of 48 countries, from 2012 to 2019. We find an adverse effect of corruption on the level and growth of GDP per capita, but that large governments benefit less from reducing corruption. Furthermore, developing economies, regardless of government size, benefit less from reducing corruption, while government size is not sufficient to explain the influence of corruption on economic activity, although the level of effectiveness of public services is crucial. Finally, our findings suggest that private investment is a potential transmission channel for corruption. ; info:eu-repo/semantics/publishedVersion

Tourism is becoming one of the essential pillars of any economy. Therefore, the best way to grow and upgrade this industry is to position the best tax rate that encourages tourism development. The Government should adjust the economies' tax system based on developing their tourism industry to improve this area's investment. Therefore, this study's main objective is to investigate the effect of the tax rate on the tourism industry in selected countries using the dynamic panel modeling (SGMM) method in the range of 2011 to 2016. The results indicate that the position of a robust tax system will harm the tourism industry. The high tax rate will hurt competition, and a major disaster will be toward competition and revenues. So, the hypothesis of this research indicates the negative impact of the tax rate on tourism revenues is accepted. Other variables such as per capita income and trade openness have a positive effect on tourism revenues.

This study examined the influence of government corporate tax policy on the performance of 54 randomly selected listed companies that cut across 17 categories of non-fi nancial fi rms in Nigeria over a period of 1990-2002. Using Generalised Method of Moment (GMM) and contrary to the expectation, the study found positive and significant relationship between corporate tax policy and the output performance of quoted manufacturing fi rms in Nigeria. This may be an indication that government revenue from corporate tax was judiciously expended on productive government expenditure such as road, security and power as nearly all fi rms selected are located in Lagos State. The study therefore, suggested that corporate tax if judiciously used in the provision of physical infrastructures and other public goods would reduce the cost of production of the private sector in Nigeria.