Abureza Islam, Ph.D

Associate Professor

Abu Dhabi Campus

+971 2 6133240

abureza.islam@aau.ac.ae

Education

Ph.D. Economics, Simon Fraser University, Burnaby, BC, CANADA

M.Ec. University of New England, Armidale, NSW, AUSTRALIA

Diploma in Ag Econ University of New England, Armidale, NSW, AUSTRALIA

M.Sc. Ag. Econ, Bangladesh Agricultural University

B.Sc. Ag. Econ (Honors), Bangladesh Agricultural University

Research Interests

Finance & financial constraints, investment efficiency, financial sector development & economic growth, behavioral economics, Stock market performance and macroeconomic behavior, Efficient Portfolio Selection: An Application of Minimum Spanning Tree

Selected Publications

  • Financing Constraints and Investment Efficiency: A Panel of Canadian Forestry Firms [with Professor Dr. Robin Hang Luo], Applied Economics, October 2018, Volume 50, Issue 48, pp. 5142-5154 | DOI: 10.1080/00036846.2018.1478387. It is an “A” ranked journal by the ABDC and indexed in SCOPUS.Published by Routledge (Taylor and Francis Group).
  • Financing Constraints in some Selected Manufacturing Firms: An Application of Stochastic Frontier Approach, [with Professor Dr. Robin Hang Luo], Journal of Developing Areas, Special Issue on Dubai Conference held in April, 2016, Volume 50, No. 6, pp. 149-160.This is a “B” ranked Journal by the ABDC,  published by Western Illinois Publisher;
  • Naeem Mohammad, Abu Reza Mohammad Islam and Hazem Marashdeh (2016): Financial Development and Economic Growth:  An Empirical Evidence from the GCC Countries Using Static and Dynamic Panel Data, Journal of Economics and Finance, 2016, 40(4), pp. 773-791. ( SCOPUS, EconLit,, Google Scholar, ProQuest, Ebsco Discovery Services, RePEc, ECONIS, CSA Env So, OCLC, Expanded Academic)
  • Naeem Mohammad and Abu Reza Mohammad Islam (2015): A Re-examination of the Finance-Growth Nexus for the MENA region using Static and Dynamic Panel Data. International Research Journal of Finance and Economics, Issue 132 April,Implications of a Monetary Union between Russia & Kazakhstan: A Hypothetical Example: Some Analytical Issues & Thoughts. The Central Asian Journal of Management, Economics and Social Research, Issue 1 (4), September, 2004, Pp. 24-48
  • A. R.M Shariful Islam and J. B. Morison (1992): Sectoral Changes in Energy Use in Australia: An Input Output Analysis, Economic Analysis and Policy,  A Journal of the Australian Economic Society, 22:2, pp. 159-73. 1992, An Elsevier Publication: www.sciencedirect.com/science/article/pii/S0313592692500042 and  indexed in Journal of Economic Literature, Econ Lit & RePEc

Teaching Courses

Graduate Courses: Microeconomics, Macroeconomics, Monetary Economics, International Trade, Open Economy Macroeconomics, Resource Economics, Investment in Emerging Markets, Financial Economics, Futures, Options & Other Derivatives, Corporate Finance, Financial Risk & Management, International Financial Management; Managerial Economics and Quantitative Analysis in Business.
Undergraduate Courses: Both Principles & Intermediate level Micro & Macroeconomics, International Trade,, International Finance, Principles of Finance (financial Management) , International Financial Management, Corporate Finance, Financial Economics, Islamic Banking & Finance, Principles of Marketing Management, Principles of Management, and Organizational Change.

Other

Financing Constraints and Investment Efficiency of Canadian Real Estate and Construction Firms: A Stochastic Frontier Analysis

Published in: Working in progress based on Reviewers Comments

Dec 31, 2019

/ Abureza Islam

This article investigates the financing constraints and investment efficiency of Canadian real estate and construction firms (RECFs) using a stochastic frontier approach. Our results support the observation that Canadian RECFs have a strong dependence of using both equity financing and debt financing and debt financing is likely to reduce the uncertainty of future financing while equity financing might enlarge the uncertainty. Regional analysis shows that the investment efficiency level of RECFs located in British Columbia (BC) was significantly higher than those RECFs located in other provinces. Small size RECFs demonstrated a very robust ascending trend in the investment efficiency despite the impact of Global Financial Crisis.


Article

Financing constraints and investment efficiency: evidence from a panel of Canadian forest firms

Published in: APPLIED ECONOMICS,

Oct 10, 2018

/ Abureza Islam

This article examines the financial constraint of 18 listed Canadian forest firms between 2000 and 2014 following the stochastic frontier approach. Empirical results support the observation that Canadian forest firms have a strong dependence of using both equity financing and debt financing as the coefficients of both equity and debt financing mean functions are significant at 1% level. The distribution of investment efficiency index (IEI) of all 18 firms demonstrates a loss of around 40% of the rate of investment due to financing constraints. Regional analysis demonstrates that the time-varying patters of IEI of three provinces are significantly different.


Article

FINANCING CONSTRAINTS IN SOME SELECTED MANUFACTURING FIRMS: AN APPLICATION OF STOCHASTIC FRONTIER APPROACH

Published in: The Journal of Developing Areas Special Issue on Dubai Conference

Apr 24, 2016

/ Abureza Islam

Stochastic Frontier Approach (SFA) provides both cross-sectional and inter-temporal comparisons of the effects of financing constraints. SFA besides inferring the strength of financing constraints based on the sign and significance of cash flow variable, measures the constraints for each individual firm and at each point in time. It measures directly not only the marginal impact of firm characteristics, such as size & leverage on financial constraint but also at different levels of firm characteristics in a continuum, enabling the firm to decide to either a required minimum or maximum level of cash holding to significantly reduce the financing constraint. SFA used in this study asserts that financing constraints have a symmetric effect on a frictionless level of investment forcing the realized investment to be lower than the frictionless outcome. Therefore, SFA helps to estimate this unobserved investment frontier and any discrepancy of actual investment from the frontier due to financial factors. Closer the actual investment to the frontier, more investment efficiency gain a firm enjoys. So, the error term in regression model is a combination of two parts: (i) two sided noise terms and (ii) one sided (non-negative) technical inefficiency term. SFA estimates financially constrained investment by taking cognizance of modeling one sided deviation from the investment frontier as a function of firm characteristics (such as cash flow, leverage ratio, size and retention ratio of firms). Financing constraints are identified by imposing one-sided distributional assumption on the effect of financing constraints. We examine the financial constraint of some listed firms in Bangladesh following the SFA approach and find that they are under severe financial constraint. The estimated investment efficiency index (IEI) demonstrates a loss of almost 80% of the rate of investment due to financing constraints. The effects of internal financing and external financing on firms’ investment activities are different. It is found that increase in international financing (cash flow) can ease the financing constraints in addition to reduce the uncertainty of the company's follow-up financing. However, using external financing, firm is likely to increase the uncertainty of future financing. These results suggest that firms in Bangladesh should rely more on internal financing to secure investment opportunities and improve the investment efficiency.


Conference Paper

FINANCING CONSTRAINTS IN SOME SELECTED MANUFACTURING FIRMS: AN APPLICATION OF STOCHASTIC FRONTIER APPROACH

Published in: Proceedings of the Australia-Middle East Conference on Business and Social Sciences 2016, Dubai (in partnership with The Journal of Developing Areas, Tennessee State University, USA) ISBN 978-0-9925622-3-6 401

Mar 15, 2016

/ Abureza Islam

We examine the financial constraint of some listed firms in Bangladesh following the SFA approach and find that they are under severe financial constraint. The estimated investment efficiency index (IEI) demonstrates a loss of almost 80% of the rate of investment due to financing constraints. The effects of internal financing and external financing on firms’ investment activities are different. It is found that increase in international financing (cash flow) can ease the financing constraints in addition to reduce the uncertainty of the company's follow-up financing. However, using external financing, firmis likely to increase the uncertainty of future financing. These results suggest that firms in Bangladesh should rely more on internal financing to secure investment opportunities and improve the investment efficiency.


Article

A Re-examination of the Finance-Growth Nexus for the MENA region using Static and Dynamic Panel Data

Published in: International Research Journal of Finance and Economics

Dec 24, 2015

/ Abureza Islam

This paper contributes to the existing empirics of finance-growth nexus of MENA countries based on a longer time period (1975-2012). It incorporates additional control variables such as FDI and an interaction term of FDI and financial development variables. It employed four estimation techniques, Pooled OLS, Fixed effect estimation, Random effect estimation, and the system GMM estimation, and used static and dynamic panel data. It obtains a robust finding of consistently no impact of financial sector development (FSD) on economic growth of MENA countries to all estimation techniques. The paper exemplifies that FSD especially, the banking sector has not been strong and efficient enough to effectively influence the economic growth. It strongly recommends the strengthening of the ongoing efforts of financial sector reforms, its supervision, monitoring and evaluation. The FDI effect on economic growth is positive and significant in all four estimation methods. Fixed capital formation contributes positively while trade openness and government expenditures have not played any significant role in the growth of MENA countries during the study period.


Article

Financial development and economic growth: an empirical evidence from the GCC countries using static and dynamic panel data

Published in: The Journal of Economics and Finance

Aug 24, 2015

/ Abureza Islam

This paper contributes to the existing empirics of finance-growth nexus of all GCC countries with new results based on a larger dataset and longer time period 1975– 2012, incorporating additional control variables, FDI, interaction term of FDI & financial development variables, and oil production. We employed four estimation techniques, Pooled OLS, Fixed effect estimation, Random effect estimation, and the system GMM estimation and used static and dynamic panel data. We obtain a robust finding of consistently a positive effect of financial sector development (FSD) on economic growth of GCC region with implication that a substantial improvement in FSD was in place. The results indicate that FDI, Fixed capital formation and oil production contribute positively to the economic growth of this region. The study results signify for a continuity of the on-going financial reform process, supervision & monitoring exercises to bring hitherto more dividends to the GCC economies.