Thesis (Master of Science in Applied Economics)
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Item Capital adequacy, asset quality and profitability: a study on conventional banks in Bangladesh(BRAC University, 2026) Afroze, Chowdhury Tahrima; Khan, Wasiqur RahmanThis study examines the relationship between capital adequacy and asset quality with profitability. Capital is main factor of banks and adequate capital works as the insurance and confidence factor for the banks. If NPL of banks increases, the cost of funding cannot be recovered. This increased cost of funding decreases the ROA, ROE, and NIM in Bangladesh. Provision kept due to increased NPL creates an obstacle in the case of lending, which ultimately decreases the profit. Profitability is also affected by bank size. It is easier for banks to achieve economies of scale if they have large asset size but incapability of achieving economies of scale will lower the profit of banks. In this study a sample size of 20 conventional banks out of 34 have been selected covering the period 2009 to 2018. This study uses the capital adequacy ratio, equity to asset ratio, bank size, NPL to total loan, and loan loss provision to total assets as proxies for capital adequacy, and asset quality. Return on assets, return on equity and net interest margin are used as proxies for banks‘ profitability. Capital adequacy is considered as the main driver of many financial institutions. KMO and Bartlett‘s test, Descriptive Statistics, Analysis of Variance (ANOVA), Coefficient Analysis, Correlation analysis, Trend Analysis has been used in this study. For multiple regression analysis three regression models are developed. Equity to asset is positively related with ROA, ROE, and NIM. NPL to total loan, loan loss provision to asset have a negative impact on profitability. Though CAR and bank size are negatively related to ROA and ROE, they are positively related to NIM fulfilling the expected results and hypothesis.Item Price stickiness in Bangladesh macro and micro approach(BRAC University, 2026-04) Maeoka, Haruka; Khan, Wasiqur RahmanThis paper investigates the degree of price stickiness in Bangladesh using both macroeconomic and microeconomic approaches. While price rigidity has been extensively studied in developed economies, empirical evidence for developing countries remains limited, particularly in environments with relatively high inflation. This study addresses this gap by estimating price stickiness through a New Keynesian framework and disaggregated price data. The findings suggest that high inflation does not necessarily imply flexible pricing in developing economies. Instead, aggregate price rigidity may arise from the coexistence of highly sticky and relatively flexible prices within the consumption basket.nominal rigidityItem Strategic assets, corporate governance and firm performance: a study on an emerging economy(BRAC University, 2025-09) Jheel, Narvin Meherun; Mamun, Syed A.This study examines the impact of intellectual capital (IC) as a strategic asset and corporate governance on firm performance in Bangladesh's manufacturing sector from 2018 to 2024. Utilizing an unbalanced panel of 101 listed firms (678 firm-year observations), the analysis employs the Value Added Intellectual Coefficient (VAIC) model and a two-step system GMM estimator to address endogeneity. The findings reveal that intellectual capital efficiency has a significant positive effect on Return on Assets (ROA), underscoring its role as a key driver of operational performance. However, this relationship is not consistently observed for Return on Equity (ROE). Furthermore, institutional ownership strengthens firm performance, while board independence negatively moderates the IC-performance link. The study concludes that intellectual capital is a critical strategic resource, but its effectiveness is contingent on specific governance structures and the chosen performance metric.Item Impact of governance on economic growth: the case of an emerging economy namely Nepal(BRAC University, 2025-09) Gurung, Bijayata; Mamun, Syed A.This thesis examines the influence of governance indicators on Nepal’s economic growth from 1996 to 2023 along with assessment of the moderating role of macroeconomic variables such as Foreign Direct Investment (FDI), Gross Capital Formation (GCF) and Inflation, using the Auto Regressive Distribution Lag (ARDL) approach and qualitative semi-structured open-ended interview responses from five governance and economic expert participants. The econometric analysis reveals a long run cointegration relationship between the explanatory variables, Comp variable (aggregate of World Governance Indicators), Foreign Direct Investment (FDI), Gross Capital Formation (GCF), Inflation and dependent variable, GDP growth. It also highlights the short-term dynamics and volatility of economic growth of Nepal to political and external shocks. FDI is the only variable which shows a positive and significant relationship with GDP growth in the long run ARDL while, GCF shows negative and marginally significant at 10%. Further, Comp variable and Inflation show positive influence on GDP growth in the long run but is not statistically significant. Complementary qualitative expert insights underline governance challenges such as corruption, weak government effectiveness and political instability as major impediments and suggest governance reforms paired with strategies to mobilize domestical capital, attract and monitor foreign investments and channelize them into high return as vital if Nepal is to achieve inclusive and sustainable economic growth. The study contributes by integrating both empirical and qualitative evidences offering wide-ranging vision and policy direction to strengthen governance and sustain economic growth in Nepal.Item Unveiling corporate transparency: the determinants of ESG disclosure in emerging markets(BRAC University, 2025-07) Wye, Amitavo Chowdhury; Mamun, Syed A.This study investigates the determinants of Environmental, Social, and Governance (ESG) disclosure in firms across emerging counrtries, aiming to explore how financial performance, leverage, and institutional factors impact the level of ESG transparency. The research employs panel-autoregressive models (AR (1)) with fixed effects (FE) and robust-clustered standard errors to address heteroscedasticity and endogeneity. In addition, the system’s generalized method of moments (GMM) is applied to handle potential endogeneity issues in the dynamic panel data models. The study finds a significant positive relationship between lagged ESG disclosures and current disclosures, confirming the persistence of ESG practices. While debtto- asset ratio and profitability indicators (ROA, ROE) had weak or non-significant effects on ESG disclosure, the Corruption Perception Index (CPI) was positively correlated with ESG reporting, indicating that better governance and transparency at the country level drive corporate ESG disclosure. The findings suggest that policymakers should strengthen regulatory frameworks to mandate ESG reporting, particularly in emerging markets. Furthermore financial institutions can incentivise ESG practices by linking financing terms to sustainability performance. Companies should prioritise long-term value creation through enhanced transparency in their ESG activities. This research contributes to the growing literature on ESG disclosure by examining firm-level data across the LATAM and EMEA regions. It provides novel insights into the institutional and financial drivers of corporate transparency on ESG issues, highlighting the importance of regulatory pressure and economic health in promoting sustainable corporate behaviour.Item Information asymmetry, ESG disclosure practices and performance of Asian islamic banks: evolution, convergence, and governance moderators(BRAC University, 2025-08) Basri, Rabeya; Mamun, Syed A.Environmental, Social, and Governance (ESG) disclosure has become a strategic imperative for banks worldwide, yet little is known about how Islamic banks, rooted in Shariah principles of ethical governance and social justice, navigate this landscape. This study examines 30 independent fully fledged Islamic, publicly listed banks across Asian countries for the years 2018 and 2023 to (1) trace the evolution and convergence of ESG disclosure and (2) assess its impact on financial performance, market performance and risk, under varying governance structures. The study develops an Environmental, Social, and Governance disclosure index (ESGDI) of 44 items for each sample Islamic bank to assess its level of ESG practices from their annual reports and deployed paired t‑tests, ANOVA/Kruskal-Wallis, coefficient of variation analysis, and cross‑sectional OLS regressions with robust standard errors and interaction terms. Our findings reveal a marked increase in overall ESGDI from 0.46 in 2018 to 0.67 in 2023, with environmental scores rising most sharply (Δ=0.31) and governance scores remaining highest (0.57→0.73). Convergence metrics indicate a significant reduction in score dispersion post‑COVID. Regression results show that higher ESG disclosure is positively associated with profitability (ROA, ROE) and market valuation (Tobin’s Q), though its link to capital adequacy (CAR) is weaker. Crucially, board independence and institutional ownership strengthen the ESG-performance relationship, while gender diversity on boards amplifies the effect on return on equity. This study contributes to ESG and Islamic finance scholarship by disaggregating disclosure dimensions, documenting convergence trends, and elucidating governance contingencies. Practically, it offers regulators and bank executives actionable insights for developing Shariah‑aligned ESG frameworks and governance policies that maximize the value of sustainability reporting.Item Understanding the trend of household tourism spending: income and socio-demographical disparities(BRAC University, 2025-04) Zaman, Noshin Tasnim; Shafiullah, MuhammadThis study explores household tourism expenditure in Bangladesh, with a particular interest in how these differ according to household income and socio-demographic characteristics, using data from the Household Income and Expenditure Survey (HIES) for 2010, 2016, and 2022. Leveraging OLS, IV 2SLS, Lewbel GMM, and Blinder-Oaxaca decomposition approaches, the study uncovers the key changes in household behaviour and reveals the determinants of tourism expenditure over time. The outcomes demonstrate that the income elasticity of tourism expenditure significantly increased, suggesting changing priorities and an improved economic situation. Also, tourism spending gaps are compared and explained by geographic (coastal vs. non-coastal), locational (rural vs. urban), marital, and gender diversities, using explained and unexplained perspectives of spending inequality. The findings of this paper offer important policy considerations for promoting equitable tourism growth, regional development, and redressing socio-economic inequalities. Together, these insights will collectively enable a deeper understanding of tourism economics in a developing country and highlight the importance of inclusive policy frameworks in enhancing sustainable tourism development.Item Analyzing wage gap based on gender: insights from the Bangladesh Labor Force Survey 2016-17(BRAC University, 2025-01) Aishi, Shamima Khandakar; Kamal, K.M. ArefinBangladesh has one of the lowest gender salary discrepancies in the world, with a deficit of just 2.2% as of the most recent data, according to UN research. This thesis investigates the gender wage gap in Bangladesh using data from the Labor Force Survey (LFS) 2016-17, focusing on non-agricultural workers. The quantitative analysis based on secondary data reveals significant disparities in wages, working hours, education levels, and industry participation between male and female workers, reflecting deep-rooted structural inequalities in the labor market. On average, Men earn more than women. The study also found that female workers have lower levels of education and are more likely to be concentrated in low-paid industries, both of which contribute to the income gaps. To understand how human capital affects wages, mincer regression has been used to examine the causal connection between earnings, experience, and education. The results highlight the necessity of focused governmental initiatives to advance gender parity in schooling and labor market involvement, especially in industries with a preponderance of men.Item Does working from home boost productivity(BRAC University, 2024-11) Khondaker, Sanjana; Shafiullah, MuhammadThis study investigates the impact of remote work on employee productivity, exploring the roles of autonomy, training, and individual characteristics in dictating employee performance. Using cross-sectional data from the Chinese General Social Survey (CGSS), I employ various methodological approaches to address selectivity bias and endogeneity concerns inherent in the analysis. Initially, ordinary least squares (OLS) regression is utilized to estimate associations between remote work, autonomy, training, and productivity. Subsequently, a multinomial logit model is employed to identify which individuals are more likely to do remote work. To mitigate potential bias, propensity score matching estimator is used, considering observed heterogeneity between remote and non-remote workers. Furthermore, instrumental variable (IV)-free Gaussian Copula and Lewbel methods are also utilized to assess the causal effect of remote work on productivity. The findings reveal that remote work positively impacts employee performance, however, long hours or frequent remote work negatively affect productivity. Notably, a significant causal relationship is identified. Additionally, greater autonomy and training are associated with enhanced productivity. Moreover, demographic factors such as gender, marital status, and parental responsibilities influence remote work tendencies, with educated individuals exhibiting lower likelihoods of remote work, while those receiving training and receiving greater independence tend to opt for remote work arrangements.Item An experiment on trust behavior: the endowment and reputation effect on fear, temptation, and cooperation in continuous trust game(BRAC University, 2024-11) Bhuian, Shamsul Shahriar; Haider, A S M ShakilThis thesis explores the dynamics of trust and trust-based behaviors such as fear, greed, and cooperation in a continuous trust game experiment, comparing a model based on the Prisoner's Dilemma with a proposed theoretical model for the FTC (Fear, Temptation, and Cooperation) Index. The study hypothesizes that financial conditions, specifically initial endowments and social conditions, such as Reputation, would influence trust-related decisions by reducing fear and greed and promoting cooperation. The research explored various non-parametric analyses and regression to explore the latent effect of the Endowment and Reputation through their mediators on fear, greed, and cooperation. Surprisingly, initial endowment proved insignificant across both models and regression analyses, suggesting that financial factors may not play as vital a role as anticipated. Instead, social factors, particularly reputation, significantly influenced trust behavior. The findings indicate that a healthy, trust-promoting environment fosters cooperation more effectively than financial incentives alone. The proposed model better captures these social dynamics and outperforms the Prisoner's Dilemma-based model in predicting trust-related outcomes. This research underscores the complexity of human decision-making, where psychological and social elements, such as reputation, often outweigh financial considerations in fostering trust and cooperation, reducing societal and individual fear and greed.