AIUB Journal of Business and Economics

Effect of Business Ethics and Product Offering on Customer Loyalty in The Disruption Age: An Analysis of The Banking Sector in Bangladesh

DR B M SAJJAD HOSSAIN, A K M Kamrul Haque, Dr. M M Obaidul Islam — Tue, 31 Dec 2024 00:00:00 +0000

This study aims to analyze the effect of Business ethics and e-satisfaction toward customer loyalty in the context of the banking sector in Bangladesh. The competition is fierce in the current market environment and so every company is under pressure to survive and make more margin which is associated with and required a huge amount of investment too. Strategic tools are used by all organizations in their style to sustain in the local and/or global market. Among others, ethical practices, product offerings, and technological facilities that are provided (e.i. online transactions) are important strategies that need to be considered in the fiercely competitive market. Hence, the identified potential factors are business ethics, Product offering, and technology disruption are the priority to the significant benefits of the business environment. The research used an FGD technique to acquire information regarding end-users (bank’s client) experiences and feedback. This study investigates the effect of business ethics on customer loyalty due to customer satisfaction with online banking (e-satisfaction) and product offered by the bank.

THE IMPACT OF FOREIGN AID ON THE QUALITY OF GOVERNANCE: EVIDENCE FROM SUB-SAHARAN AFRICA

Zahin Syed — Tue, 31 Dec 2024 00:00:00 +0000

Purpose – This paper examines how foreign aid affects the quality of governance in Sub-Saharan Africa. Previous theories put forth in this area offer conflicting guidance and prior empirical findings are often contradictory and inconclusive. This paper attempts to reconcile these divergent theories by shedding fresh insight into the aid and governance relationship.

Design/methodology/approach – The empirical analysis is conducted using pooled OLS, two-stage least-squares, the random-effects model, and the fixed-effects model on a panel of 30 Sub-Saharan African countries for a period of 21 years starting from 1996-2016.

Findings – The results indicate that aid has a positive and statistically significant impact on the quality of governance. This positive association can be attributed to donors targeting aid towards countries with improving governance, and the small coefficient on aid suggests that external actors have little or no significant influence on the country's political system. Subsequently, this study also finds that aid affects the dimension used to measure control of corruption the most and that receiving aid decreases corruption.

Originality/value – In light of numerous recent research in the aid-governance literature, this study broadens the discussion on foreign aid and governance in Sub-Saharan Africa.

Pre-COVID19 Scenario of Aftermarket Price Performance of Initial Public Offerings: Evidence from Dhaka Stock Exchange

Mahedi Hassan, S M Shariful Islam — Tue, 31 Dec 2024 00:00:00 +0000

Purpose of the study: The purpose of the study is to test the short-run price performance of IPO stocks in the Dhaka Stock Exchange from 2011 to 2018.

Methodology: The Dhaka Stock Exchange General Index i.e. DSEX has been used as a proxy for market return. Secondary data are used to analyze the return anomalies within the primary market.

Findings: The study finds that Bangladesh’s market for IPOs was underpriced. The results denote that post-market offers provide positive short-run returns. High returns were to be found within the early days of listings. Hence, Investors are highly profitable in the short-run period.

Implications: This study highlights specifically the return behavior of the market in the short-term period. Investors are directly affected by this investment pattern which leads to abnormal returns in the short-term period. Less number of IPOs is the prime reason for these short-term abnormal returns.

Limitations and Future direction: The data is taken from 2011 to 2018 which represents a small sample size of merely eight years. A larger sample size directs to more accuracy and the COVID scenario can be dragged particularly to see the return anomalies between the different timeframes.