https://archive.aessweb.com/index.php/5002 Asian Economic and Social Society en-US Asian Economic and Financial Review 2305-2147 https://archive.aessweb.com/index.php/5002/article/view/5385 <p>Recent studies indicate that financial reports have become increasingly lengthy and complex. This complexity may pose challenges for individual investors, who might struggle to interpret these intricate annual reports effectively. However, banks have a distinct advantage, as they can access private information about borrowing companies. In Bangladesh’s rapidly expanding corporate sector, where firms frequently seek financing through equity and debt, understanding the impact of financial statement complexity is crucial. This study aims to explore how the intricate nature of financial reports influences both bank loan dependency and share prices. The analysis focuses on fifty companies listed on the Dhaka Stock Exchange (DSE) over the period from 2013 to 2023. Data on financial statements and debt financing were collected from annual reports, with complexity assessed based on two parameters: the length and readability of the financial statements. The results suggest a correlation where increased complexity in financial statements is associated with a greater reliance on bank loans. However, the complexity of financial statements appears to have no significant impact on investors' behavior, as reflected in the return estimates. This study contributes to the existing literature by providing evidence of the financial report complexity of Bangladeshi listed companies and its impact on bank loan dependency and share prices.</p> Nafees Reza Maqbool Kader Quraishi Copyright (c) 2025 2025-05-28 2025-05-28 15 5 670 682 10.55493/5002.v15i5.5385 https://archive.aessweb.com/index.php/5002/article/view/5386 <p>This research aims to analyze the influence of institutional quality on the relationship between economic growth and public expenditure in a small open economy. This research uses the autoregressive distributed lag (ARDL)&nbsp;methodology. The results showed that (1) institutional variables have a significant and positive moderating effect on the relationship between public spending and economic growth; (2) lending rates that are too high hurt economic growth because they keep the private sector from borrowing money; and (3) inflation rates that are too high hurt economic growth rates. In optimizing the moderating impact of institutional quality on the relationship between public expenditure and economic growth, the government should adopt policies that build strong institutions through consistency in upholding the rule of law. Specific and concrete policy recommendations include a need to address the endemic problem of corruption, boost the economy’s industrial productivity, stimulate private sector investment participation in the economy, moderate excessive lending rates, and encourage the crowding-in of the private sector so that the private sector can readily access funding for business expansion.</p> Samuel O Fadare Olajide Oladipo Copyright (c) 2025 2025-05-28 2025-05-28 15 5 683 709 10.55493/5002.v15i5.5386