Articles

Financial Dynamics of Listed Banks in Pakistan: Exploring the Interplay between Cost-Income Ratio, Capital Adequacy, and Performance Metrics

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This study delves into the relationship between the Cost-Income Ratio, Capital Adequacy, and the performance of listed banks in Pakistan. Drawing data from 2014 to 2022 annual reports, the Generalized Method of Moments (GMM) in STATA version 18 is employed for analysis. The findings disclose a negative connection between capital adequacy and performance, particularly return on assets (ROA) and return on equity (ROE). While the correlation lacks statistical significance for ROA, it becomes significant in the context of ROE. Additionally, a statistically significant negative correlation is identified between the cost-income ratio and both ROA and ROE. Total equity debt displays a negative relationship, achieving significance concerning ROA. Bank size demonstrates a significant negative correlation with both ROA and ROE. GDP exhibits a positive link, significant only with ROE. These findings contribute valuable insights into the dynamics of financial indicators influencing bank performance in the Pakistani context.

Human Development and Government Expenditure in Asian Countries: An Empirical Study

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This study examines the impact of public spending on human development in Asian countries, considering both investment and current spending. The empirical method is a system-GMM, using a dataset of 35 Asian countries collected from 2005 to 2014 by the Asian Development Bank (ADB) and the United Nations Development Programme (UNDP). The findings indicated that government spending, both investment and current spending, had effects on the human development index, but these effects are not linear. Depending on the type of expenditure, the detected threshold effect is U-shape or inverted U-shape. According to this study, government spending could adversely impact human growth if the optimal expenditure thresholds are broken. These findings have significant implications for enhancing the effectiveness of public expenditure to improve the human development index. This study also provides meaningful lessons that are especially pertinent for Asian countries, including Vietnam.