International Journal of Electronic Finance (5 papers in press)
Impact of Corporate Governance Practices on Financial Performance: Evidence from Non-Financial Sector of Pakistan
by Habib-ur Rahman, Mahwish Rafique, Zahid Ali Akbar, Emmanuel S. Aidoo
Abstract: This study aims to examine the impact of corporate governance practices on the financial performance of Pakistani firms. For this purpose, we use the panel data of 65 non-financial firms listed on the Pakistan Stock Exchange from 2010 to 2017. Electronic finance has significantly changed corporation activities. In this context, we relate the accounting and market measures of performance with corporate governance factors. Applying ordinary least squares and the fixed effects model, our results reveal that board size, institutional ownership, managerial ownership, ownership concentration, and size of the firm have a positive and significant impact on the return on assets (ROA). This empirical investigation further reveals that (1) the association between board independence, foreign ownership, and liquidity is positive but statistically insignificant, and (2) Chief Executive Officer (CEO) duality and leverage have a negative but statistically insignificantly impact on ROA. By taking Tobins Q as a dependent variable, we observe that board size, managerial ownership, and ownership concentration have a positive and statistically significant impact. Nonetheless, our results reveal that leverage and CEO duality have a negative but statistically insignificant impact on Tobins Q. Board independence, institutional ownership, foreign ownership, size, and liquidity have a positive but statistically insignificant impact on Tobins Q.
Keywords: Corporate governance; financial performance; managerial ownership; institutional ownership; board size; ownership concentration; ROA; Tobin’s Q.
Relevance of e-SERVQUAL for determining the quality of FinTech services
by Hasnan Baber
Abstract: Despite the rise of FinTech, the definition of this sector is still vague. The services offered by FinTech differ widely, but all share some commonalities. As FinTech is a growing service sector, there is a need to check the service quality offered by the different service providers. The study was conducted on Islamic banks of Malaysia and UAE which offer Fintech services to their customers. A 26-item questionnaire was used to gather data from 325 customers by strata sampling. Statistical data was analysed through various tests like reliability analysis, sample adequacy, factor analysis and regression analysis using SPSS 25.0. Shariah compliance variable was added to the e-SERVQUAL model to make it relevant for Islamic banks. This study found that Shariah compliance information, site aesthetic, efficient and reliable services, and fulfilment of promises and transaction has a significant impact on the customer satisfaction in Islamic banks for the FinTech services offered.
Keywords: e-SERVQUAL; FinTech; customer satisfaction; Islamic banks.
Examining the consumers' preference towards adopting the mobile payment system
by A. Senthil Kumar, Y. Arun Palanisamy
Abstract: The research examines the drivers and shared preferences of consumers towards adopting the mobile payment systems in the Indian context. A survey was conducted with 152 respondents in the Coimbatore City, State of Tamil Nadu, India. A structured questionnaire was developed using the technology acceptance model (TAM) framework constructs. The multivariate tools like factor analysis and cluster analysis were used for data analysis. The results reveal that perceived usefulness and ease of using mobile payments primarily drive the preferences of consumers. The common preferences among users and non-users of mobile payment services were classified and analysed. The insights from the classification have managerial implications, and the paper discusses them in detail.
Keywords: adoption preferences; technology acceptance model; TAM; factor analysis; cluster analysis; mobile payments.
Unearthing digital financial services and financial inclusion: an empirical evidence from India
by Aishwarya Nagpal, Megha Jain, Abhay Jain
Abstract: The present study aims at determining the role of information and communication technologies (ICTs), macroeconomic and demographic characteristics of individuals in advancing financial inclusion levels in India. Financial inclusion has been proxied by credit penetration, account ownership and digital financial services by key digital modes (i.e., mobile cellular subscriptions and internet penetration). The secondary data have empirically been analysed by using ordinary least squares estimation at the macro-level and employing logistic regression at the micro-level. The findings suggest that internet usage and mobile penetration rates have a positive association with financial inclusion in India. The study further discovers that individual characteristics and economic circumstances like education level, income level, age, gender, government transfers and saving behaviour are also likely to impact financial inclusion indicators in India. Unearthing a perfect balance between adopting an inclusive financial approach, pro-poor growth, and a technologically advanced infrastructure is indispensable for each facet that has an important role to contribute. Finally, the study recommends that such moves are not an end in themselves, rather expected to shoulder the responsibility of creating new economic order in India via financial inclusion toolbox through sustainable development goals (SDGs).
Keywords: technology; financial inclusion; digital financial services; DFS; financial development; account ownership; logistic regression; India.
The adoption of banking technology and electronic financial services: evidence from selected bank customers in Ethiopia
by Wondwossen Jerene, Dhiraj Sharma
Abstract: This study was aimed to investigate factors that determine bank customers' intention to adopt electronic banking technologies and electronic financial services in Ethiopia. The TAM model was used that constructed with perceived financial trust, perceived financial risk, subjective norm, and awareness as exogenous factors that predict bank customers' intention to adopt digital technologies. Self-administered questionnaire was used for data collected from 412 bank customers and the exploratory factor analysis (EFA) of data confirmed it was internally consistent enough to measure each factor. Similarly, the confirmatory factor analysis (CFA) of data was revealed that there was no concern of convergent and discriminant validity. According to SEM analysis using AMOS, the finding of the study shows perceived ease of use, perceived usefulness, perceived financial trust, subjective norm and awareness about new electronic banking technology positively predict bank customers' intention to adopt it. However, perceived financial risk negatively influences customers' intention to adopt banking technology and researchers' suggestions were forwarded in the paper.
Keywords: banking technology; electronic financial services; financial trust; perceived financial risk; adoption; customer awareness; perceived ease of use; e-banking; electronic banking; Ethiopia.