This thesis focuses on bank lending to SMEs with consideration of both the demand side and supply side. To this end, three distinctive lines of research are pursued in this thesis. We start with analyzing results from a regional survey of 20 banks and 180 SMEs conducted in 2012 in North Vietnam for new insights into the determinants of successful access to bank loans by SMEs. Secondly, we examine factors of the business environment that affect SME growth using original datasets obtained from surveys conducted in both Vietnam and the UK in 2012. Finally, we extend our research to the supply side with an important question about how banks in East Asia performed throughout the 2007-2008 global financial crisis. Following this, we analyze the impact of liberalization on banking soundness based on a secondary dataset of 10 East Asian countries (1997-2012). Using different econometric approaches and different samples, we present robust evidence that factors from the business environment drive SMEs’ loan access and their growth. On the demand side, financing is still the foremost determinant for SME growth. Furthermore, the industrial sector where firms operate has an influence on access to finance as well as growth. From the supply side, various sizes and ownership forms differently impact SME lending. In addition, a rise in comparative size (systemic size) significantly reduces bank risk. However, a growth in absolute size (total assets) is associated with greater bank vulnerability due to increasing leverage ratios and costs. Banks tend to favour SMEs who have a close relationship or have collateral to pledge. Importantly, institutional setting has a significant impact on behaviours of SMEs and banks. While larger SMEs have better regulatory perceptions, banks of different sizes and ownership structures, have very different perceptions about legal uncertainties and therefore produce various lending requirements which directly affect the availability and affordability of SME lending. The empirical results give rise to policy implications for transition (and possibly other) countries. Firstly, the robustly positive nexuses between the numbers of relationships with banks and loan access suggest that stimulating competition in the banking sector can help firms mitigate stringent terms and conditions for credit approvals. However, greater absolute market power (market share) reduces soundness in the banking sector while greater comparative market power (HHI) fosters it. Secondly, the fact that legal uncertainties go hand in hand with a high ratio of collateralized loans with any bank size emphasises the need for improving regulations on collateral and creditor- rights. Thirdly, given that the adoption of Basel capital standards is viewed as creating advantages for larger banks over smaller banks, and my results show liberalisation to also favour larger banks, suggests a distortion in financial markets and may produce further instabilities. My results may provide insights for policy makers when considering which areas of banking and finance they should or should not deregulate with a motivation to stimulate competition and enhance stability. Finally, this thesis reveals insights into sectors facing barriers to finance and growth, and therefore provides valuable information for policymakers in setting incentives targeted at and tailored to specific groups of SMEs.

International Financial Reporting Standards (IFRSs) are moving away from being based on an historical cost model of accounting towards one based on fair values. Such changes have implications for the preparers, auditors and users of financial reports. While much attention has been focused on the technical aspects of the transition to fair value accounting, there has been almost no consideration of the impact of these changes on those who prepare, audit and use financial reports. International Accounting Standards and, subsequently, IFRSs have been incorporated into Maltese company law since 1995. More recently, as a Member State of the European Union, Malta has been required to incorporate IFRSs (as modified by the EU) into its national law. This thesis explores the impact of the transition towards fair value accounting on the preparers and auditors of the financial reports of Maltese listed companies. An exploratory, inductive approach is adopted which uses the grounded theory method (Glaser & Strauss 1967) to understand the effects on the patterns of behaviour of the preparers, auditors and users of financial reports arising from the transition to fair value accounting. Interviews were conducted with those responsible for the preparation of the financial reports of those companies listed on the Malta Stock Exchange that experienced such a transition as well as with the companies’ auditors. The main themes that emerge from the first analysis of the interview material relate to the perceived near absence of markets for assets in Malta, concerns about the understandability of fair value accounting for users of financial reports, and the perceived primacy of the income statement. These themes were identified after transcribing and analysing the interview data collected. However, themes as an output of analysis are insufficient, as grounded theory necessitates the conceptualisation of the data. Moreover, the research was driven by analysis that required further theoretical sampling and thus interviews were carried out with users; namely, stock-brokers and investors. Additionally the analysis required theoretical sampling from a country that has a similar set-up to Malta; thus, Trinidad & Tobago was selected for data comparison in this regard. This theory is developed through the iterative process of constant comparison and analysis of the interview material as well as online data and listed entities’ financial reports. The theory contended that there is a tension between the regulatory framework and the determination of the dividends being proposed by companies. Such a tension evolves from users’ lack of understandability of what fair value adjustments represent; for example, unrealised positive amounts being treated as available for distribution. The resolution of this tension is seen to be through a “meaning-making process”. This “meaning-making process” refers to the latent patterns of behaviour engaged into by preparers, auditors and stock-brokers throughout all six stages of the financial reporting process i.e. from the preparation and review of the financial statements right through to their approval by the shareholders gathered at the AGM. Thus, a process of funnelling, jargonising, pre-empting, briefing, elaborating, explaining and clarifying is engaged in. The research contributes to interpretive accounting research by developing explanations of the effect of fair value accounting on significant actors in an island economy.

The current thesis consists of three essays analysing recent corporate governance (CG) reforms in Middle Eastern and North African (MENA) countries. The three essays place emphasis on three closely related CG topics that quantitatively seek to investigate the extent to which MENA CG reforms have been effective in enhancing three main sets of corporate outcomes. The first essay investigates the level and determinants of voluntary CG compliance and disclosure in MENA countries during the period from 2009 to 2014. Specifically, this essay aims to empirically examine two main research questions: first, what is the level of voluntary compliance with, and disclosure of, CG provisions among listed firms in MENA countries?; and second, what factors can explain the variance in the level of voluntary compliance with, and disclosure of, CG provisions among listed firms in MENA countries? Relying on insights from neo-institutional theory, the findings of this study reveal that in general MENA listed firms have a relatively lower level of voluntary compliance with, and disclosure of, CG practices compared to developed countries. However, the level of CG disclosure improved over period 2009 to 2014, indicating that MENA countries have responded positively to their CG codes of best practice and recommendations. The findings also suggest that firm-level factors (i.e., Islamic values, board characteristics and ownership structure mechanisms) and country-level factors (i.e., religion and the quality of national governance) have a significant impact on firm-level voluntary CG compliance and disclosure. Specifically, the findings suggest that Islamic values disclosure, board diversity on the basis of gender and ethnicity, board independence and separation of the Chief Executive Officer (CEO)/chairperson roles have a positive association with the level of CG compliance and disclosure, while board size and director ownership impact negatively on the level of CG compliance and disclosure. The findings also suggest insignificant relationship between government ownership and block ownership with the level of CG compliance and disclosure. With regard to country-level factors, the results indicate that corporations listed in countries complying with Islamic economic principles and having high-quality national governance are more likely to voluntarily comply and disclose more CG practices than those that do not. The second essay investigates the influence of board diversity (based on gender, ethnic minorities and nationality) on corporate outcomes. Thus, this essay seeks to empirically examine the extent to which board diversity influences firm market value, accounting returns, executives pay (EP) and the pay-for-performance sensitivity (PPS). The findings attempt to expand current understanding of the role that board diversity can play in enhancing market value, accounting returns, EP and the PPS among MENA countries’ listed firms. Specifically, the MENA region has distinctive social norms, legal framework and structure of the economy, which suggest that the effect of board diversity on corporate outcomes may be different from those observed in developed countries. Informed by critical insights from agency, resource dependence, cognitive development, social identity and stakeholder theories, the empirical evidence reveals that boards of directors of MENA listed firms are dominated by national Arab male directors. The empirical evidence also shows that board diversity is a significant determinant of corporate outcomes in MENA listed firms. Specifically, firms with boards more diversified by gender, ethnic minorities and nationality are more likely to have higher accounting returns and market value. Additionally, a high percentage of female directors on the board improves firm market value and accounting returns, while foreign directors significantly and positively influence accounting returns. Further, the empirical results show that a firm’s CG quality has no moderating effect on the relationship between board diversity and firm market value. However, a high percentage of ethnic and foreign directors positively and significantly impacts the accounting returns in firms with weak CG. With regard to the impact of board diversity on EP, the findings reveal that different measures of board diversity have no significant impact on EP, whereas the inclusion of female and minority ethnic directors on corporate boards appears to enhance the PPS. The third and final essay examines the extent to which CG practices can explain auditor choice and observable changes in audit fees among listed firms in MENA countries. The key objective of this essay is to investigate how effective the CG practices, including CG Index, board characteristics and ownership structure mechanisms, are in influencing the auditor choice and fees. The results of this study have the potential to deepen current understanding of the ability of different CG practices to impact auditor choice and fees among firms listed in MENA countries. Specifically, the audit profession and its quality in the MENA region are relatively poorly established compared to developed countries. This suggests that the impact of CG measures on auditor choice and fees decisions may be different from that observed in developed countries. Employing insights from agency theory, the study finds that CG Index, board diversity based on gender and ethnicity, board independence, separation of the CEO/chairperson roles and concentrated ownership impact significantly and positively on firm choice of Big 4 auditors. Board size impacts positively, but insignificantly, on Big 4 auditor choice decision, whereas government ownership and director ownership are insignificant and negatively related to Big 4 auditor choice decision. The third essay also shows that CG Index, board diversity based on gender and ethnicity and government ownership are significantly and negatively related to audit fees, whereas board size, board independence and director ownership have a significant, but positive effect on audit fees. Non-dual board leadership structure, and concentrated ownership have no significant impact on audit fees. The documented empirical results of the three essays are fairly robust across a raft of econometric models and estimations that take into account potential endogeneity problems and alternative variables. To summarise, empirical evidence for the extent of CG practices’ influence on these three sets of corporate outcomes among MENA countries’ listed firms is relatively rare. Accordingly, this study aims to contribute to the literature by providing new insights with specific focus on recent CG reforms that have been pursued in MENA countries. Particularly, this thesis contributes to the limited, but steadily growing body of literature on the effectiveness of CG mechanisms in influencing a number of crucial firm outcome, including voluntary CG compliance and disclosure, firm performance, EP, the PPS, and auditor choice and fees, among listed firms in MENA countries.

Two papers (Ding and Jia, 2012; Al-Najjar and Ding, 2014) contribute to research on product market efficiency and the remaining three (Ding and Cheng, 2011; Ding and Hou, 2015; Chen, Ding, Hou and Johan, 2015) contribute to financial market efficiency. Taken together, the underlying theme of these papers has important implications for resources allocation and the aggregate welfare of an economy.

This research effort seeks to investigate the co-creation of customer value in distribution channels of financial services as perceived by customers. In financial services, an in-depth investigation of customer value is necessary because of its recognised strategic imperative for competitive advantage (Woodruff, 1997). The Service Dominant Logic further demonstrates the importance of customer value as the basis of customers’ evaluations of products or service offerings (Vargo and Lusch, 2004). Customer value assessments are typically based on core services. However, core services are rapidly copied, diminishing prior competitive advantages. Hence, other sources of customer value and competitive advantage have to be considered. In light of this, distribution channels are considered resilient sources of value for the customer (Ballantyne and Varey, 2006). Specifically, this research seeks to empirically determine the type of value co-created through interactions in various distribution channels of financial services and the degree to which the various types of value vary, in distribution channel use. The conceptual model developed for this study synthesises two perspectives of customer value. The first perspective is the unidimensional perspective, which posits that customer value is a trade off between perceived benefits and perceived sacrifices. The alternative perspective is the multidimensional perspective where customer value is multidimensional. Various types of value, functional or utilitarian as well as emotional and aesthetic value are offered in the extant literature. In financial services, dominant studies focus on adoption and non-adoption of financial services channels particularly innovative technological channels such as the internet channel and mobile channel. A study of the customer value of various channels in the multichannel context of financial services is relatively absent. Therefore, a two-step research design was utilised. First, an exploratory study was conducted to determine the different benefits and sacrifices perceived by customers when using the distribution channels. The first stage of the study incorporated an exploratory study of semi-structured interviews conducted on a sample of 22 respondents. The hypotheses developed for the study were based on the exploratory study and the extant literature of customer value and distribution channels. The second stage of the study was a survey of 300 respondents using a questionnaire, within the Klang Valley area. The data were collected and analysed using Exploratory Factor Analysis (EFA), Analysis of Variance (ANOVA) and regression analysis as appropriate. The findings of the study show that both co-created functional value and emotional value perceptions exist in the distribution channel of financial services. Co-created functional and emotional value furthermore contributes to overall customer value perceptions. The study also finds that different benefit and sacrifice perceptions give rise to co-created functional and emotional value perceptions respectively. A comparison of the customer value perceptions of channels revealed that customers perceived functional value and emotional value in all channels, except the ATM/CDM/Cheque deposit channel. The in-branch channel is perceived to co-create a greater magnitude of emotional value. Adding to the extant literature, the findings demonstrate that distribution channels are an important source of customer value assessments. Furthermore, the findings lend support to the conceptual model, which posits various benefits and sacrifice perceptions existing in distribution channels of financial services lead to co-created perceived functional and emotional value or both simultaneously. From a managerial point of view, the findings of this study enable accurate identification of specific benefits and sacrifice perceptions in the various distribution channels of financial services to inform the development of strategies and tactics to enhance customer value of individual channels. Furthermore, the importance of emotional value in the in-branch channel lends support to the role of face to face interactions, careful recruitment and training of personnel to enhance the in-branch experience. The study also raises the importance of the consideration of service failures in services customer value assessments.

No description available.

This study presents the results of an investigation into the methods of auditing Expert Systems. Such systems have already proved to be, and are increasingly becoming, a very powerful tool in many areas such as medicine, geology, finance and banking. They embody unique risks which are not treated by conventional audit methods of operating or developing software. The lack of awareness and information about Expert Systems in general and their auditability in particular are somewhat surprising. The author, in tackling this new area, has developed and proposed two models of auditing Expert Systems: a) the Audit of an Operating Expert System (AOES), b) the Audit of an Expert System under development (AESD). The first model incorporates the" control band" which aims at eliminating the exceptional risks and to allow the internal auditor to treat it as conventional software. The second proposed model is based on "NESDEM'; a normative evaluation model for Expert Systems. The test of the proposed AOES model was conducted in two different organisations: ARJO-WIGGINS APPLETON which developed and still uses an Expert System for its paper mill and the CITY UNIVERSITY DEPARTMENT OF OPTOMETRY AND VISUAL SCIENCE which developed an Expert System for eye tests. Unfortunately the author was unable to test his proposed AESD model under a "live" development process due to lack of cooperation from organisations which the author contacted. Consequently he tested this model by mailing questionnaires to internal/external auditors within the U.K. Given the research performed in this study and subject to the limitations detailed, the proposed models appear reliable, flexible, practical and suitable to the internal auditor in assessing the effectiveness of the internal controls within Expert Systems.

In an attempt to understand the performance measurement systems, this study utilises the contingency theory theoretical framework to examine the contingent relationships between several contextual factors and the usage of financial and non-financial performance measures for performance measurements and evaluation purposes. The contextual factors consist of business strategy, organisational structure, perceived environmental uncertainty, intensity of competition, organisation size, total quality management and just in time manufacturing approaches. This study also investigates the implications of fit (internal consistency) between the above contextual factors and the extent of performance measurement diversity usage on organisational effectiveness (i.e. organisational performance and level of satisfaction). Nine performance measurement categories are investigated including: financial, customer, operational, innovation, employee, supplier, environment, quality and community categories. During the 1990s and until recently, considerable publicity and interest has been given to the balanced scorecard approach (BSC). This study also gathers empirical data to investigate various issues relating to BSC approach. The major aims of the study are to examine how the manufacturing companies are dealing with this approach and to determine the extent to which the above contextual factors influence the extent of balanced scorecard usage. The findings are based on a questionnaire mailed to a target sample of 900 UK manufacturing companies with an annual sales turnover in excess of £50 million. A total of 163 usable responses were received representing a response rate of 19.7%. For the purpose of data analysis, the study utilises descriptive statistics and multivariate statistics (i.e. structural equation modelling using EQS 5.7 and multiple regression). The results of the descriptive analysis show that financial, customer, operational and quality performance categories are extensively used for performance measurements and evaluation purposes. Other non-financial performance categories (i.e. innovation, supplier, employee, and environment) are also used but to a lesser extent. Despite the popularity of the balanced scorecard (BSC) approach, only a minority of companies (30%) reported using it in their performance measurement systems. The findings also emphasise the inconsistency between companies following the BSC approach, particularly the number and types of perspectives used. The results of structural equation modelling suggest a strong support for the cost strategy, formalisation, regulatory aspects of perceived environmental uncertainty, size, aspects relating to the intensity of competition and the extent of the use of both total quality management and just in time manufacturing approaches have a significant influence on the extent of performance measurement diversity usage (i.e. financial and non-financial performance measures). The results also indicate that the different approaches to fit utilised in this study (i.e. bivariate and systems approaches), based on structural equation modelling, result in insightful findings relating to the contingent relationships between the anticipated contextual factors, the extent of performance measurement diversity usage and organisational effectiveness. The results using multiple regression indicate that formalisation, raw material aspects of perceived environmental uncertainty, size and the extent of the use of total quality management significantly influence the extent of balanced scorecard usage. A distinguishing feature of this study is that it extends previous BSC studies in determining the extent of balanced scorecard usage. The results suggest that using financial and non-financial performance measures does not necessarily imply that the companies are really balanced scorecard users. This finding therefore raises implications for future balanced scorecard researchers, and by drawing off contingency theory literature, it overcomes some of the deficiencies of previous research relating to balanced scorecard approach. Finally, this study contributes to the literature by utilising the structural equation modelling method, which has several advantages over other multivariate data analysis.

This research study aims to explore the current practices, policies and roles of training and development (T&D) within Jordanian banking organisations. It is an exploration of all the issues concerning T&D practices in terms of how the T&D process is conducted (how training needs are assessed, how T&D is delivered and how T&D programmes are evaluated); exploring top managers', T&D and HRM personnel's attitudes towards the importance of T&D in improving employees and organisational performance and the strategic position and roles of T&D in their organisations. This study aims to investigate all the problems and challenges that face T&D activities and searches for practical suggestions to improve the effectiveness of these activities. Finally, it aims to contribute to the understanding of HRD in differing cultural contexts. This research is mainly focused on top managers', T&D and HRM attitudes and viewpoints (perception) towards the research objectives. The research has adopted a multi-methods approach. The data were gathered through a combination of semi-structured interviews with 15 top managers and a survey questionnaire addressed to the persons responsible for T&D within the targeted organisations. All Jordanian banking organisations were targeted in this study rather than a representative sample of these organisations; however, a purposive sampling strategy was used in choosing the participants of this study. In total, 15 top managers and 38 T&D and HRM managers took part in the study. The study reveals that, in the majority of the organisations, there is an absence of systematic employee training needs assessment and of effective procedures for evaluation. The banks prefer to send their employees to external training providers rather than train them in the banks. The most commonly used delivery method is off-the-job training, namely lectures, seminars and case studies. T&D is not characterised by strategic human resource development criteria (SHRD) and it plays a reactive rather than a proactive role in these organisations. T&D improves employees' skills, knowledge, attitudes and behaviour, but it does not increase employees' commitment and satisfaction. Also, T&D does not impact on profit, innovation and change, sales, absenteeism, turnover rate, job satisfaction and cost saving in their organisations, but it increases customer satisfaction, quality service and productivity. T&D faces many problems: lack of motivation among employees to attend T&D programmes; inaccurate TNA processes; poor training planning in terms of contents and delivery methods; sending inappropriate persons to the training programmes and lack of on-the-job training. To improve T&D effectiveness the researcher recommends many actions and decisions which need to be undertaken, as shown in sections 6.10,7.6 and 8.2.4. Finally, this study contributes to knowledge on the academic and practical levels as one of the first attempts at empirically investigating the nature and the extent of strategic T&D activities in Jordanian banks, identifying the main concerns and problems which face T&D activities, in addition to recognizing the vital roles of T&D in improving the organisations' performances. Thus, it raises the general understanding of the current T&D practices and management in Jordanian banks. It has brought together a large body of knowledge in management T&D, T&D in Arab countries, strategic T&D and T&D and performance relevant literature and unifies diverse schools of thoughts into one integrative perspective. This research integrates, refines and extends the empirical work conducted in the field of T&D in developing countries, since there is a lack of such studies. It raises some of the implications for managers and consultants, such as considering employees' motivation, enthusiasm and willingness, T&D time, the importance of incentive reward when managing T&D. This study provides useful guidelines in the form of the critical elements and factors that can enhance success in T&D in terms of TNA, training implementation, methods and evaluation process. The study also proposes several directions for future research.

No description available.