Academic literature on the topic 'Bank capital – Oman'

In the last decade, international organisations (World Bank, OECD and OEU) and many European countries have been apprised of the urgent need to develop and enhance what is generally termed “intellectual capital” and thus the “knowledge creating organization”. The importance of this is something that is increasingly being realised. The importance of Intellectual Capital and how to analyse its important components such as human capital, structural capital and customer capital are also being recognised. In fact, these components constitute the main factors whereby institutions produce and disseminate knowledge which in turn serve as the means through which the quantity of knowledge produced within a country can be added to the national pool of knowledge. This paper deals with the importance of measuring and analysing Intellectual Capital, and furthermore, performs an extensive review of national and international practices related to IC. The paper then proposes a model for measuring the Intellectual Capital of private HEIs in Oman. Indeed, such a model as of the kind we visualise, will improve the performance of organisations, develop better understanding of the nature of IC and go on to study the construction of IC and IC reporting in developing countries. The research was done in the Sultanate of Oman and the results show that the level of measuring the IC of HEIs is still in its early stages. The technique called “the point estimate of overall performance” and “overall performance index” are proposed and implemented to differentiate between the performance of ICs of different institutions. Finally, the paper discusses the difficulties that hinder the assessment of IC in institutions.

This paper attempts to demonstrate the relationship between macroeconomic factors and each of Private Investment in Energy (PIE) and Private Investment in Telecoms (PIT) from 1990 to 2016 in 21 MENA countries (Algeria, Bahrain, Djibouti, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Malta, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, Palestine and Yemen). Results reveal that both PIE and PIT are Granger caused by GDP, Real Interest Rate, Gross fixed capital formation, private sector, stocks traded are Granger causing PIE. Also, Inflation, Exports of goods and services and Commercial bank branches are Granger causing PIT. All of the ten macroeconomic variables taken up in study are cointegrated with Investment in energy and telecoms with private participation in the long run. Besides, shocks to all of GDP, gross fixed capital formation, private sector to GDP, general government final consumption expenditure, stocks traded and commercial bank branches (as a proxy of financial inclusion) have a positive and statistically significant effect on the private investment in energy and telecoms.

The objective of this research is to find impact of foreign direct investment on manufacturing industries in Oman. The study utilized a quantitative research method which applied primary and secondary data obtained from Oman's World Bank database (1984-2018). The primary data were collected from a research questionnaire administered to 410 respondents from nine industrial sectors, namely: Textile, Petroleum goods, Electronics, Automotive, Food & Beverages, Agriculture & Fishery, Publishing, Chemicals and Pharmaceutics. The results of this study also revealed that the spillover impacts on domestic companies, like novel technology, marketing strategies, organizational skills, money, jobs, export growth, diversifying of economy and greater competition, lead to enhanced domestic market efficiency and boosted productivity in skill-spreading host economies with the highest impact accompanied with Capital and Technology spillover.

This study is a commentary on the financialperformance and quality capital of Islamic versus conventional banks currentlyoperating in the Gulf Cooperation Council (GCC) region. In addition toassessing the financial performance of the full set of banks across various GCCcountries, the study is the first toconsider the extent to which Islamic vs.conventional GCC banks comply with the new Basel III requirements of raising betterquality capital. The study uses bank-level data for 75 (55 conventionaland 20 Islamic) banks in Kuwait, United Arab Emirates, Kingdom of Saudi Arabia,Oman, Qatar, and Bahrain. Financial ratios are used tomeasure and compare Islamic vs. conventional banks performances, and weemploy a comprehensive and the most recent sample of data available in the region, consisting of cross-sections from 2003 to 2011.The results reveal that Islamic banks are, onaverage, less efficient but more profitable, more liquid, more solvent (lessrisky), and enjoyed higher internal growth rates than conventional banks during2003-2011. The results indicate that there are statistically significant differencesbetween the two types of banks, as far as profitability, solvency, and internalgrowth rate ratios are concerned; however, there are no statisticallysignificant differences in liquidity and efficiency. The results also indicatethat banks, as a whole, appear to be largely sufficiently capitalized for BaselIII. Gulf Cooperation Council banks are well positioned to absorb higherprovisions and impairment charges given the higher capital adequacy ratiosreported by most. The Common Equity Ratio, Tier 1 Capital Ratio, and Capital AdequacyRatios (CARs), for the majority of banks in 2011, comfortably satisfy theenhanced capital requirements of Basel III. The results show that Islamic bankshave, on average, noticeably higher (and significantly different) capitalratios compared to conventional institutions. With regard to theimpact of the global financial crisis on both types of the banks, the resultsindicate that Islamic banks performed better thanconventional banks during the period 2006-2009, as the former enjoys highercapitalization, higher liquidity reserves, and also maintained stronger growthcompared to conventional banks in almost countries.Findings of this study may be useful for capital-market participants, as the full set of banks across various Gulf Cooperation Councilcountries needs to be examined before any substantive conclusions can bereached about the relative performance of Islamic versus conventional banks.Further, as the full implementation of Basel III requirements will not takeplace until 2019, the results of this study will convey information that shouldencourage banks to consider the earlier implementation of Basel III capitalrequirements in order to provide themselves with a reputational boost, as wellas a competitive advantage.

Purpose The purpose of this paper is to find out the extent to which governments of the Gulf Cooperation Council (GCC) countries play a moderating role in the relationship between entrepreneurship and economic growth. Design/methodology/approach The study uses a 10-year time series (2006-2015) for six GCC countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. Secondary sources of data were collected from The World Bank database, general available statistics on the GCC, the Global Entrepreneurship Index from the Global Entrepreneurship and Development Institute (GEDI) and the Global Entrepreneurship Monitor (GEM) database. Findings Results indicate that governmental support has a significant moderating effect on the relationship between entrepreneurship and economic growth in the GCC. Furthermore, the strongest indicators of entrepreneurial investments in the Gulf have been found to be risk capital and high growth, which indicate a rapid growth in entrepreneurial investments. The lowest scoring indicators were found to be technology absorption and innovation process. Research limitations/implications Despite the necessary measures taken to assure standard results such as testing data validity, care should be taken when generalizing the research results mainly because the time series of the study (2006-2015) could have been affected by the International and Financial Crisis, though the study has taken this into consideration. Originality/value This study has clarified the significant role of GCC governments in moderating the relationship between entrepreneurship and economic growth. Thus, the findings of this study are important because they help the GCC governments recognize their significant role and hence to utilize this role by supporting new and existing entrepreneurs particularly through regulatory quality, risk capital, technology absorption and process innovation. Furthermore, this study proves the extent to which entrepreneurship can help enhance the GCC economic growth, hence elaborating the importance of the sustainable resource, such as the human capital, in achieving diversification of sources to move from an oil-based to a more diversified economy.

PurposeThe purpose of this study is to empirically investigate the relationship between intellectual capital and corporate governance of Oman's financial sector companies. Intellectual capital has been found to successfully contribute to the economic wealth creation of firms in germane literature. Unfortunately, financial statements do not necessarily capture and reflect the contributions of intellectual capital, thereby leading to an information asymmetry between companies and users of financial statements. The research also investigates the relationship between corporate governance and intellectual capital efficiency across various financial subsectors.Design/methodology/approachData are collected from annual reports available on Muscat Securities Market for 31 listed financial sector companies for the period 2012 to 2016 and analyzed using a multiple regression model. Intellectual capital is measured using Pulic's efficiency measure of value-added intellectual coefficient (VAIC). Corporate governance individual components such as board characteristics, audit committee characteristics and ownership structure are presented as independent variables.FindingsThe findings suggest that board size and frequency of audit committee meetings have a significant association with the intellectual capital efficiency of Oman's financial sector. VAIC and human capital efficiency of banks are also significantly influenced by most of the corporate governance mechanisms; however, other subsectors do not report such findings. Corporate governance of banks in comparison to other subsectors effectively engages in utilizing the potential of intellectual capital efficiency. Agency theory and resource dependency theory find limited support as a result of this study. The GMM results are not robust to the alternative instruments.Research limitations/implicationsThe sample size is small as the study is limited to the listed financial sector of Oman. Future studies can be extended to include all of Oman's or GCC’s listed companies. Additionally, the intellectual capital is measured using the construct of VAIC which suffers some limitations and can be overcome using other tools such as content analysis.Practical implicationsThe findings of this study suggest that Oman's regulators can create an awareness strategy on highlighting the importance of intellectual capital for companies (board of directors and managers), investors, debtors and creditors. Further, Oman's Capital Market Authority and Muscat Securities Market need to strengthen the regulations related to intellectual capital.Originality/valueThis study extends intellectual capital and corporate governance literature by presenting the research outcome for Oman's financial sector. It is useful for Oman's financial sector companies to direct corporate governance measures for driving value creation of firms through the management of intellectual capital efficiency.

PT. Moradon Berlian Sakti is Die Casting manufacturer of Honda motorcycle spare parts and other types of products, such as chair. Along with the rapid advancement of technology, PT. Moradon Berlian Sakti always strive to maintain and improve its existence. One of important factor that need to be noticed is the productivity issue. Productivity assessment can be conducted based on the comparison of company input and output in terms of materials, capital, labor and energy. After learning the level or productivity index, company leader can identify which condition has productivity shrinkage and make decision to increase productivity company based on those condition. Based on the calculations, the levels of productivity index in 2012, was virtually uniform from January to December. But in October the productivity is high and reach the level 94.33%. That is because that performance indicators are in accordance with expectation of company leader. While in December productivity dramatically decreased to 4.67%, it is because less supervision and control from the company.Key Words: Performance indicators, productivity, system evaluationAbstrakPT. Moradon Berlian Sakti merupakan salah satu industri manufaktur yang bergerak di bidang Die Casting dalam membuat spare part sepeda motor Honda, dan beberapa jenis produk lainnya, seperti kursi. Seiring dengan perkembangan zaman dan majunya teknologi pada saat ini PT. Moradon Berlian Sakti selalu berusaha untuk mempertahankan dan meningkatkan keeksistensiannya dalam dunia industri. Salah satu faktor penting yang perlu diperhatikannya adalah masalah produktifitas. Penilaian produktifitas dapat dilihat dari perbandingan nilai input dan output perusahaan, baik dari segi material, modal, tenaga kerja dan energy yang digunakan. Setelah mengetahui tingkat atau indeks produktifitas dari perusahaan itu sendiri, maka pimpinan perusahaan akan mencoba mengevaluasi kondisi-kondisi yang dimana disana terjadi penyusutan produktifitas, sehingga hal tersebut akan mampu meningkatkan produktifitas perusahaan di masa yang akan datang. Berdasarkan perhitungan yang telah dilakukan, maka didapatkan bahwa tingkat indeks produktifitas pada tahun 2012, hampir bisa dikatakan merata mulai dari bulan Januari sampai Desember. Tetapi pada bulan Oktober produktifitas yang dihasilkan tinggi yaitu 94,33%. Hal tersebut dikarenakan bahwa indikator-indikator performansi yang ada pada bulan tersebut sesuai dengan apa yang diharapkan pimpinan perusahaan. Sedangkan pada bulan Desember mengalami penurunan drastis yaitu menjadi 4,67%, hal tersebut disebabkan karena tingkat pengawasan dan pengontrolan yang kurang dari pihak perusahaan.Kata Kunci: Indikator performansi, produktivitas, evaluasi sistem

Purpose: Promote a country comparative assessment of the Islamic banks economic and financial situation. Methodology: We used a descriptive and documentary analytical approach. We collected data on Islamic bank financial indicators in 21 countries and analyzed it in light of the standards recommended by the Islamic Financial Services Board (IFSB) and the Basel Committee on Banking Supervision (BCBS). The sample consisted of all countries with available data in the IFSB database (PSIFIs). Data refers to the second quarter of 2018 grouped by countries. We used a simple descriptive statistic, in figures form, to analyze the collected data. Results: This document points out that 90% of Islamic financial institutions (IFIs) in the sample calculate the capital adequacy ratio (CAR) according to BCBS recommendations. In addition, 95% have CARs above 8% (the minimum set by BCBS and IFSB). Therefore, 95% of countries have secure financial systems in terms of bank solvency. In terms of asset quality, the Islamic financial system in Oman showed the best quality in managing its resources. Sudan has shown the highest ratios of profitability in its Islamic banks. In the liquidity analysis, it was not possible to identify precisely which country has the best liquidity ratios in short and long term as more than 60% of the countries did not present sufficient data. In terms of net assets over total assets, and short-term compliance, the Islamic financial systems of Egypt and Afghanistan, respectively, led with better liquidity ratios, showing the ability and security to meet their obligations. Contributions of the Study: Identify countries with the highest / lowest risk considering IFSB and BCBS requirements and recommendations.

This article studies whether firm-level and country-level factors affect to the corporation's debt maturity in case of Vietnam or not. The paper adopts the balance panel data of 267 listed companies on two trading board HOSE and HNX in the period from 2008 to 2015, estimated by FEM, REM, 2SLS and GMM method. To intrinsic factors, research results show that financial leverage and default risk control have high positive statistical significance with the debt maturity, but tangible assets are lower than those factors. In addition, growth opportunities and company quality have negative impacts to the debt maturity. To external factors, the results point out that economic growth, stock market development and governmental regulation's efficiency demonstrate the positive relationship to the debt maturity with fairly low correlation levels. 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This dissertation examines four specific aspects of capital structure and dividend policy. The first issue concerns the determinants of capital structure dynamics. The primary objective is to examine whether stock returns are important factors in firm???s capital structure choice, and if so, whether this effect is persistent. In so doing, we use a data set which (1) avoids the complexity of tax rates faced by previous studies, (2) we introduce new variables that are unique to Oman, and (3) we distinguish empirically between bank debt and non-bank debt. We find stock returns are a first order determinant of capital structure. Firms do show some tendency to rebalance towards their target capital structure. However, the impact of stock returns dominates the effects of rebalancing. We also find new evidence that firms do take countermeasures to offset changes in their leverage that stem from equity value variations, but do so at a low speed. The next topic studied concerns the ex-dividend day behaviour. We investigate this issue using a unique data set where there are no taxes on dividends and capital gains and stock prices are decimalized. In this economy, any price decline that is smaller than the dividends can not be attributed to taxes and price discreteness. We find that the stock price drops by less than the amount of dividends and there is a significant positive ex-day return. We are able to account for our results using market microstructure models. The third issue investigated is the stock price reaction to dividend announcements. Tax-based signaling models argue that dividends would not have information and be informative if it is not for the higher taxes on dividends relative to capital gains that they apply to shareholders. The absence of personal taxes in Oman presents a valuable opportunity to test this prediction. Our results show that the announcements of dividend increases (decreases) are associated with a stock price increase (decrease) which contradicts the tax-based signaling models. The final chapter analyzes the determinants and stability of dividend policy of financial and non-financial firms. Investigating this issue is important for at least two reasons. First, Omani firms distribute almost 100% of their profits in dividends which led the Capital Market Authority (CMA) to issue a circular (number 12/2003) arguing that firms should retain some of their earnings for ???rainy days???. This allows us understand the characteristics of firms that pay dividends. Second, firms are highly levered mainly through bank loans which render the role of dividends in reducing the agency costs less important. Unlike most previous studies, we include both dividend paying and non-dividend paying firms to avoid a selection bias. We find that there are some common factors that determine dividend policy of both financial and non-financial firms and there are some factors that affect only non-financial firms. We also find that the factors that influence the probability to pay dividends are the same factors that drive the amount of dividends paid for both financial and non-financial firms. We document that non-financial firms adopt a policy of smoothing dividends while financial firms do not have a stable dividend policy.