Template-Type: ReDIF-Article 1.0 Author-Name: Raheel Gohar Author-X-Name-First: Raheel Author-X-Name-Last: Gohar Author-Name: Ayesha Rashid Author-X-Name-First: Ayesha Author-X-Name-Last: Rashid Title: Managerial entrenchment hypothesis and dividend payout policy Abstract: The influence of managerial entrenchment on dividend payout policies is studied for the period 2006 to 2014. The results of the study indicate that the ratio of the sum of shares owned by the CEO, the Chairman and the directors (i.e., insider ownership) is negatively related to both the likelihood and the payment of dividends. Even when controlling for firm size and leverage, it is found that the ratio of shares owned by the block holder shows negative and significant results (for both the logit and the tobit regression). This study proves that either the block holders are part of the management or they have strong board representation, so they do not consider dividend payouts as a disciplining and monitoring mechanism. Investment opportunities and leverage have a negative and significant relationship with both the likelihood and the level of payouts. Journal: Afro-Asian J. of Finance and Accounting Pages: 222-236 Issue: 2 Volume: 11 Year: 2021 Keywords: managerial entrenchment; dividend payout policy; logit and tobit regression; Pakistan. File-URL: http://www.inderscience.com/link.php?id=113551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:222-236 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmad Abu-Alkheil Author-X-Name-First: Ahmad Author-X-Name-Last: Abu-Alkheil Author-Name: Mohammad Alomari Author-X-Name-First: Mohammad Author-X-Name-Last: Alomari Author-Name: Balkis Set-Abouha Author-X-Name-First: Balkis Author-X-Name-Last: Set-Abouha Title: The effect of financial leverage on banks' performance: empirical evidence from a frontier market - the Amman Stock Exchange Abstract: This paper examines the effect of financial leverage (FL) on a bank's performance by adopting the dynamic generalised method of moments (GMM) estimator over the period 2004-2016. Also, it examines the impact of the recent financial crisis of 2008 on the Jordanian banking industry. The study sample is based on a comprehensive list of listed banks in Amman Stock Exchange (ASE). Findings show that a bank's leverage is a significant determinant of its performance. FL has negative effects on banks' performance. Mainstream and pure Islamic banks were not immune to the crisis. Yet, Islamic banks seem to show positive signs of recovery from the crisis. Converted Islamic banks did not have better immunity to the global shocks than mainstream banks. Large banks had better financial performance than small banks, and new banks are better able to recover from the adverse effects of the crisis than old ones. Journal: Afro-Asian J. of Finance and Accounting Pages: 198-221 Issue: 2 Volume: 11 Year: 2021 Keywords: generalised method of moments; GMM; banks performance; financial leverage; financial crisis; frontier market. File-URL: http://www.inderscience.com/link.php?id=113553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:198-221 Template-Type: ReDIF-Article 1.0 Author-Name: Hussaini Bala Author-X-Name-First: Hussaini Author-X-Name-Last: Bala Author-Name: Noor Afza Amran Author-X-Name-First: Noor Afza Author-X-Name-Last: Amran Author-Name: Hasnah Shaari Author-X-Name-First: Hasnah Author-X-Name-Last: Shaari Title: Audit committee and financial reporting quality: the mediating effect of audit price in Nigeria Abstract: This study examines the mediating effect of audit price on the link between the audit committee and financial reporting quality. The model was developed based on a complementary hypothesis and employs a panel dataset comprising 440 firm-year observations. We found that a larger audit committee comprising directors and shareholders is more likely to reduce earnings manipulation in the form of artificial smoothing and managers' discretion on earnings. The study also establishes that larger audit committee size is linked to an increase in audit price. Interestingly, we found that an increase in the price of auditing services minimises the likelihood of earnings manipulation. Also the audit price partially and significantly mediates the link between the audit committee and financial reporting quality. This study also informs regulators and policy makers of the importance of audit price in limiting earnings manipulation and boosting audit quality, which, in turn, enhances financial reporting quality. Journal: Afro-Asian J. of Finance and Accounting Pages: 167-197 Issue: 2 Volume: 11 Year: 2021 Keywords: audit committee; audit price; income smoothing; financial reporting quality; Nigeria. File-URL: http://www.inderscience.com/link.php?id=113554 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:167-197 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Ngoc Lan Author-X-Name-First: Nguyen Ngoc Author-X-Name-Last: Lan Author-Name: Vu Thi Kim Anh Author-X-Name-First: Vu Thi Kim Author-X-Name-Last: Anh Author-Name: Nguyen Thi Thanh Phuong Author-X-Name-First: Nguyen Thi Thanh Author-X-Name-Last: Phuong Title: Factors influencing the application of fair value of Vietnamese enterprises: an extension study of the theory of planned behaviour Abstract: This study is based on theory of planned behaviour to understand how the factors of awareness of businesses influence support applying fair value (FV) in Vietnamese businesses. Based on the data collected from 558 managements and accountants, we performed the data analysis process. The methods of descriptive statistics, Cronbach's alpha, exploratory factor analysis to find the convergence of observed forming new factors and correlation analysis with binary logistic regression model were used in this study. The article result shows that: the factor of 'awareness of challenges in business environment and legal environment' has the greatest influence and negative effects on support applying FV in accounting at Vietnamese businesses whereas the factor of 'awareness of the benefits of improving financial statement quality' has the second influence and positive effects on this issue. On the basis of research results, we will propose some recommendations for promoting the application of FV in Vietnam. Journal: Afro-Asian J. of Finance and Accounting Pages: 237-265 Issue: 2 Volume: 11 Year: 2021 Keywords: behaviour awareness; fair value; support; Vietnam. File-URL: http://www.inderscience.com/link.php?id=113556 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:237-265 Template-Type: ReDIF-Article 1.0 Author-Name: Shekhar Mishra Author-X-Name-First: Shekhar Author-X-Name-Last: Mishra Author-Name: Naliniprava Tripathy Author-X-Name-First: Naliniprava Author-X-Name-Last: Tripathy Author-Name: Sathya Swaroop Debasish Author-X-Name-First: Sathya Swaroop Author-X-Name-Last: Debasish Title: Impact of crude oil price shocks on industrial output, inflation and exchange rate: evidence from five emerging Asian economies Abstract: The present study estimates the long-run relationship and impact of oil price shock on industrial production, inflation, and exchange rate of the selected fast-emerging Asian economies namely China, India, South Korea, Singapore and Japan. The study employs auto regressive distributed lag model, structural vector auto regression model, variance decomposition and impulse response function to examine the same. The ARDL model revealed the presence of cointegrating relationship between the macroeconomic variables of Asian economies and the global crude oil price. The impulse response function and variance decomposition analysis indicates the oil price fluctuations not having a significant impact on the given macroeconomic variables of the Asian economies taken under study. The study suggests that the Asian economies should implement policies to attract more FDI and promote the foreign sector. The governments should be more watchful while regulating the price level that may arise with a surge in oil price. Journal: Afro-Asian J. of Finance and Accounting Pages: 290-308 Issue: 2 Volume: 11 Year: 2021 Keywords: crude oil price; ARDL; structural vector auto regression; SVAR; impulse response function; IRF; variance decomposition. File-URL: http://www.inderscience.com/link.php?id=113557 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:290-308 Template-Type: ReDIF-Article 1.0 Author-Name: Rana Albahsh Author-X-Name-First: Rana Author-X-Name-Last: Albahsh Title: The effect of tax and economic freedom on capital investment and foreign direct investment: empirical evidence from a panel of countries around the world Abstract: Investment in the home country or abroad has become an important strategy for companies to survive and grow. It exposes these companies to several financial and economic hazards. This paper employs cross-country tax rates and economic freedom regressions for a sample of 82 countries to examine the determinants of investment and foreign direct investment (FDI) between 2010 and 2016. Besides, it analysis the role of economic freedom factors (legal system, sound money system, regulations, and trade freedom) and economic factors [gross domestic product (GDP) growth, trade level, inflation, and GDP per capita]. While the results of the study agree these factors are important to investments, FDI reflects a higher sensitivity to these factors. A sound money system and trade freedom have a high influence on FDI. The results also show that companies are eager to expand their investments wherever they find welcoming markets, financially and economically. This can benefit policymakers in home or host countries to increase investments and FDI. Journal: Afro-Asian J. of Finance and Accounting Pages: 266-289 Issue: 2 Volume: 11 Year: 2021 Keywords: capital investment; foreign direct investment; FDI; corporate tax; indirect tax; economic freedom; trade-off-theory; investment theory; inflation; regulations; money system; legal system. File-URL: http://www.inderscience.com/link.php?id=113561 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:2:p:266-289 Template-Type: ReDIF-Article 1.0 Author-Name: Md. Mahmudul Haque Author-X-Name-First: Md. Mahmudul Author-X-Name-Last: Haque Author-Name: Mohammad Ashraful Ferdous Chowdhury Author-X-Name-First: Mohammad Ashraful Ferdous Author-X-Name-Last: Chowdhury Author-Name: Mohammad Hassan Shakil Author-X-Name-First: Mohammad Hassan Author-X-Name-Last: Shakil Author-Name: Mansur Masih Author-X-Name-First: Mansur Author-X-Name-Last: Masih Title: Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model Abstract: Infrastructural development of the host country is one of the major determinants of attracting FDI. However, the nonlinear threshold relationship between the infrastructural development and FDI inflow is yet to be explored. The objective of this research is to find the threshold effect of infrastructure on FDI in Nigeria. Using Hansen's (2000) threshold regression over the period 1972-2015, the study found that the relationship between infrastructure development and FDI is nonlinear. Furthermore, the relationship between infrastructure and FDI is positive in both regimes; however, the marginal positive impact of infrastructural development in attracting FDI is more evident after the threshold level. The findings provide support to the regulators and policy makers to improve infrastructural development for attracting more FDI in the economy which can foster economic growth. Journal: Afro-Asian J. of Finance and Accounting Pages: 20-34 Issue: 1 Volume: 11 Year: 2021 Keywords: infrastructural development; foreign direct investment; FDI; threshold regression; Nigeria. File-URL: http://www.inderscience.com/link.php?id=111795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:20-34 Template-Type: ReDIF-Article 1.0 Author-Name: Hanan Alhussayen Author-X-Name-First: Hanan Author-X-Name-Last: Alhussayen Author-Name: Ridha Shabou Author-X-Name-First: Ridha Author-X-Name-Last: Shabou Author-Name: Imed Medhioub Author-X-Name-First: Imed Author-X-Name-Last: Medhioub Title: How debt maturity reacts to the interactions of internal corporate governance mechanisms Abstract: As the two primary internal corporate governance mechanisms, boards of directors and ownership structures are important for disciplining managers through short-term and long-term debt and, thus, debt maturity. The interactions between these mechanisms tend to define which type of debt is the more effective discipline mechanism. Thus, this study aims to define the impacts of interactions between intensive board monitoring and ownership structures on debt maturity for all non-financial firms listed on the Saudi market from 2008 to 2013. The results reveal that board monitoring intensity encourages Saudi listed firms to apply more long-term debt. Both direct ownership by large shareholders and family-held firms as controlling shareholders strengthen the monitoring functions of the board and encourage Saudi listed firms to apply more long-term debt. In contrast, ultimate owners, who hold indirect ownership of firms, tend to distract the board from applying its monitoring functions effectively. Journal: Afro-Asian J. of Finance and Accounting Pages: 691-717 Issue: 5 Volume: 11 Year: 2021 Keywords: intensive board monitoring; IBM; direct ownership; indirect ownership; family ownership; debt maturity; long-term debt; short-term debt. File-URL: http://www.inderscience.com/link.php?id=119476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:691-717 Template-Type: ReDIF-Article 1.0 Author-Name: Dinh Bao Ngoc Author-X-Name-First: Dinh Bao Author-X-Name-Last: Ngoc Author-Name: Nguyen Chi Cuong Author-X-Name-First: Nguyen Chi Author-X-Name-Last: Cuong Title: Dividend policy and stock price: evidence from Vietnam Abstract: We investigate the impact of dividend policy on the stock price in Vietnam. Firstly, in order to quantify the immediate effects of dividend policy, 1,738 observations of dividend-related events from 403 listed companies during the period 2008 to 2015 are chosen and the event study methodology is used to estimate abnormal returns around the announcement date and the ex-dividend date. Secondly, in order to quantify the long-run impact of dividend policy, panel data derived from 108 listed companies (809 observations) is analysed by using fixed effect model (FEM) and random effect model (REM). Our results show that the effect of dividend announcement on the stock price is positive around the announcement date. For the long-term impact, the results indicate a significantly negative relationship between payout ratio (PAYOUT), dividend per share (DPS) and stock price volatility, and a positive relationship between dividend yield (DY) and stock price volatility of the companies. Journal: Afro-Asian J. of Finance and Accounting Pages: 672-690 Issue: 5 Volume: 11 Year: 2021 Keywords: dividend policy; announcement date; ex-dividend date; stock price; event study. File-URL: http://www.inderscience.com/link.php?id=119477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:672-690 Template-Type: ReDIF-Article 1.0 Author-Name: Tu D.Q. Le Author-X-Name-First: Tu D.Q. Author-X-Name-Last: Le Author-Name: Liem T. Nguyen Author-X-Name-First: Liem T. Author-X-Name-Last: Nguyen Author-Name: Son H. Tran Author-X-Name-First: Son H. Author-X-Name-Last: Tran Title: Loan loss provisions, earnings management, capital management, and signalling: the case of Vietnamese banks Abstract: This study examines loan loss provision (LLP) behaviours of Vietnamese banks between 2006 and 2015. The findings show that earnings management is positively related to LLP regardless of the restructuring period, suggesting that LLPs can be used by Vietnamese banks as a mechanism for aggressive earnings management. There appears to be no capital management before the restructuring period. However, the findings indicate that Vietnamese banks use capital management with LLP during the restructuring period. Furthermore, the positive relation between LLP and future earnings during the restructuring period suggests that investors may view an abnormal increase in LLP as a signal of loan quality. The findings further demonstrate that LLP is positively associated with bank inefficiency, credit growth, bank size, and lending specialisation. State-owned commercial banks are found to reserve a greater level of provisions compared to privately owned commercial banks. Based on the research findings, we offer several implications for relevant stakeholders. Journal: Afro-Asian J. of Finance and Accounting Pages: 755-771 Issue: 5 Volume: 11 Year: 2021 Keywords: loan loss provisions; LLPs; earnings management; capital management; signalling; Vietnam. File-URL: http://www.inderscience.com/link.php?id=119478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:755-771 Template-Type: ReDIF-Article 1.0 Author-Name: Samson Edo Author-X-Name-First: Samson Author-X-Name-Last: Edo Author-Name: Henry Okodua Author-X-Name-First: Henry Author-X-Name-Last: Okodua Title: Fiscal budget deficit and the emerging capital markets in West African countries Abstract: This study investigates development of capital markets in West African countries, with the main aim of determining the role of fiscal budget deficit. Investigation is done by building a panel model, showing the relationship between capital market and fiscal budget deficit. Estimation results reveal that the deficit significantly influenced the markets by exerting positive impact on market capitalisation and stocks traded, with the impact on stocks traded superseding that of market capitalisation. The impact of deficit is complemented by return on investment, exchange rate, financial openness, and money supply. The major implication of these findings is the high vulnerability of these markets to switch in fiscal policy from deficit budgeting to surplus budgeting, which may lead to decline in market activities. In view of this, attention needs to be focused on enhancing the role of financial openness and return on investment, which are also strong drivers of capital market development. Journal: Afro-Asian J. of Finance and Accounting Pages: 647-671 Issue: 5 Volume: 11 Year: 2021 Keywords: fiscal budget deficit; capital markets; developing countries. File-URL: http://www.inderscience.com/link.php?id=119479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:647-671 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammadriyaj Faniband Author-X-Name-First: Muhammadriyaj Author-X-Name-Last: Faniband Title: Indian government bonds sensitivity to macroeconomic and non-macroeconomic factors: a quantile regression approach Abstract: This paper introduces a new dataset of Clearing Corporation of India Limited's broad total return index (BTRI) and liquid total return index (LTRI). The paper examines the impact of macroeconomic and non-macroeconomic factors on BTRI and LTRI during monthly periods from January 2010 to December 2018 using quantile regression methodology. This paper finds that the GDP has positive and significant impact on BTRI and LTRI for the upper quantiles. Further, CPI shows positive impact on both BTRI and LTRI. Moreover, both the indices are influenced by IR and there is an inverse relationship between them. ER also significantly affects both the indices. The EPUI has negative and significant impact on BTRI and LTRI for the intermediate and upper quantiles. No clear relationship is found between BTRI and Nifty, whereas Nifty has significant impact on LTRI. BTRI is not affected by VIX but LTRI is affected for the intermediate quantiles. Journal: Afro-Asian J. of Finance and Accounting Pages: 772-786 Issue: 5 Volume: 11 Year: 2021 Keywords: government bonds; macroeconomic factors; non-macroeconomic factors; broad total return index; liquid total return index; quantile regression; India. File-URL: http://www.inderscience.com/link.php?id=119480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:772-786 Template-Type: ReDIF-Article 1.0 Author-Name: Sweta Agarwal Author-X-Name-First: Sweta Author-X-Name-Last: Agarwal Title: Certification role of transparency and anchor investors in Indian IPOs Abstract: The study examines the effect of bidding information of anchor and other institutional investors, on retail investors' subscription and short-term IPO performance in the Indian market. The study also tries to find out specific anchor investors' characteristics which influence investor decisions. The results show that anchor investors play a certification role for institutional investors only. Both institutional and retail investors follow bids of each other during the book-building period. High institutional and retail subscriptions have a positive effect on initial returns. In anchor-backed IPOs, unique business group participation and anchor over-subscription have a high positive impact on both subscription and IPO initial returns. Journal: Afro-Asian J. of Finance and Accounting Pages: 35-63 Issue: 1 Volume: 11 Year: 2021 Keywords: book building process; anchor investors; institutional investors; retail investors; subscription; underpricing. File-URL: http://www.inderscience.com/link.php?id=111801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:35-63 Template-Type: ReDIF-Article 1.0 Author-Name: Sedighe Alizadeh Author-X-Name-First: Sedighe Author-X-Name-Last: Alizadeh Author-Name: Mohammad Nabi Shahiki Tash Author-X-Name-First: Mohammad Nabi Shahiki Author-X-Name-Last: Tash Author-Name: Reza Roshan Author-X-Name-First: Reza Author-X-Name-Last: Roshan Title: Adjusting the consumption-based capital asset pricing model by the estimate bid-ask spreads based on daily highest and lowest prices in Iran Abstract: This study aims to investigate a capital asset pricing model (CAPM) based on consumption within the capital market in Iran, which is adjusted using transaction costs and liquidity risk. The study is carried out on twenty portfolios, formed on the basis of liquidity criteria using seasonal data from 2009 to 2018. In other words, this approach is applied to analyse the target pricing model through transaction costs proxy and evaluation of the portfolios. Exploiting the proposed bid-ask spread estimator as the transaction costs proxy shows that liquidity-adjusted CCAPM explains a bigger portion of cross-sectional return changes compared to the traditional CCAPM model. In addition, the results show that disregarding transaction costs and liquidity risk may lead to an inaccurate estimate of the expected return. Journal: Afro-Asian J. of Finance and Accounting Pages: 718-739 Issue: 5 Volume: 11 Year: 2021 Keywords: traditional CCAPM; liquidity-adjusted CCAPM; liquidity risk; bid-ask spread; Iran. File-URL: http://www.inderscience.com/link.php?id=119481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:718-739 Template-Type: ReDIF-Article 1.0 Author-Name: H.A.P.K. Perera Author-X-Name-First: H.A.P.K. Author-X-Name-Last: Perera Author-Name: Tharindu Chamara Ediriwickrama Author-X-Name-First: Tharindu Chamara Author-X-Name-Last: Ediriwickrama Title: Idiosyncratic volatility and average stock returns: evidence from Sri Lanka Abstract: Conventionally, it is believed that the idiosyncratic volatility should not be priced at market equilibrium as it can be eliminated through diversification. Despite the presence of inconsistent empirical evidence on idiosyncratic volatility, the current study aims to investigate the presence of idiosyncratic volatility from a frontier market such as Sri Lanka. Employing the Fama and French five-factor model together with the exponential generalised autoregressive conditional heteroskedasticity (EGARCH), the conditional idiosyncratic volatility of individual stocks of non-financial firms listed on the Colombo Stock Exchange (CSE) was estimated. This study reveals the presence of idiosyncratic volatility of stocks in Sri Lanka. The results further indicate though the idiosyncratic volatility of stocks is useful in explaining the average stock returns, it is still questionable as to why there is a demand in the market for small stocks with high idiosyncratic volatility since the critical weaknesses in asset pricing models are mostly coupled with the small stocks. Journal: Afro-Asian J. of Finance and Accounting Pages: 740-754 Issue: 5 Volume: 11 Year: 2021 Keywords: Colombo Stock Exchange; EGARCH; five-factor asset pricing model; frontier market; idiosyncratic volatility; Sri Lanka. File-URL: http://www.inderscience.com/link.php?id=119482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:740-754 Template-Type: ReDIF-Article 1.0 Author-Name: Madher E. Hamdallah Author-X-Name-First: Madher E. Author-X-Name-Last: Hamdallah Author-Name: Anan F. Srouji Author-X-Name-First: Anan F. Author-X-Name-Last: Srouji Author-Name: Suzan R. Abed Author-X-Name-First: Suzan R. Author-X-Name-Last: Abed Title: The nexus between reducing audit report lags and divining integrated financial report governance disclosures: should ASE directives be more conspicuous? Abstract: The purpose of the study is to explore any nexus between Amman Stock Exchange (ASE) governance required disclosures based on auditors' determinants on the audit reporting lag (ARL) to construct an integrated financial report (IFR). The study's audit determinants are revealed by terms of audit meetings, number of audit members, audit opinion, and type of audit company. Meanwhile total assets and bank performance indicated any non-audit determinants affecting the disclosure of IFR. The hypothesised paradigm is tested to pursue nexuses between the endogenous and exogenous variables for the years 2014, 2015 and 2016. Multivariate analysis revealed a positive nexus between the exogenous variables in the model as a whole and ARL. However, a negative influence of the audit committee number of meetings and type of audit opinion performed on ARL. Meanwhile, audit committee meetings and type of audit company had a positive effect on the ARL, all with significant nexuses. Journal: Afro-Asian J. of Finance and Accounting Pages: 81-103 Issue: 1 Volume: 11 Year: 2021 Keywords: integrated financial reports; IFRs; audit determinants; audit reporting lag. File-URL: http://www.inderscience.com/link.php?id=111807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:81-103 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Q.M. Momani Author-X-Name-First: Mohammad Q.M. Author-X-Name-Last: Momani Title: On the robustness of the Fama-French three-factor and the Carhart four-factor models on the Amman Stock Exchange Abstract: This study aims to explore the robustness of the applicability of the Fama-French and the Carhart asset pricing models on the Amman Stock Exchange (ASE) equity market. It uses data on all companies listed and traded in the ASE, over the period of 2002 to 2018. The study uses the time-series regression approach of Black et al. (1972). To estimate the models, the study applies the ordinary least squares (OLS) method. The study found that the models fail to capture the cross-section of average returns to portfolios sorted on size/book-to-market as well as size/momentum. The ability of the Carhart model in describing the returns to size/book-to-market portfolios is similar to that of the Fama-French model; however, the model better describes the returns to size/momentum portfolios. Unlike Al-Mwalla's (2012) conclusion, this study suggests using the Carhart model in practical applications that require the estimation of the ASE equity market returns. Journal: Afro-Asian J. of Finance and Accounting Pages: 64-80 Issue: 1 Volume: 11 Year: 2021 Keywords: asset pricing; Fama-French three-factor; Carhart four-factor; Amman Stock Exchange; ASE; Jordan. File-URL: http://www.inderscience.com/link.php?id=111808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:64-80 Template-Type: ReDIF-Article 1.0 Author-Name: Olayinka Erin Author-X-Name-First: Olayinka Author-X-Name-Last: Erin Author-Name: Foluso Aribaba Author-X-Name-First: Foluso Author-X-Name-Last: Aribaba Title: Risk governance and firm value: exploring the hierarchical regression method Abstract: This study examines the impact of risk governance on firm value of 50 listed firms in the Nigerian financial institutions for the period of five years (2013-2017). The study provides empirical evidence which shows that risk governance variables (enterprise risk management index, chief risk officer presence, board risk committee size, board risk committee activism, and board risk committee independence) have a positive and significant impact on firm value. Similarly, firm attribute variables (firm size and firm age) have a significant positive impact on firm value while on the contrary corporate governance variables (board size and board of directors independence) show a negative but a significant impact on firm value. The empirical evidence observed in this study reveals that the institutionalisation of risk culture, strong risk oversight functions and increase in risk accountability by the board have greater tendency to enhance the value of a firm. This study contributes to the growing literature in the area of corporate reporting, risk governance and risk management research in Africa. Journal: Afro-Asian J. of Finance and Accounting Pages: 104-130 Issue: 1 Volume: 11 Year: 2021 Keywords: board risk committee; chief risk officer; CRO; firm value; Nigerian financial institutions; risk governance; Tobin's Q. File-URL: http://www.inderscience.com/link.php?id=111809 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:104-130 Template-Type: ReDIF-Article 1.0 Author-Name: Ritika Jaiswal Author-X-Name-First: Ritika Author-X-Name-Last: Jaiswal Title: Active trading strategies based on momentum and term structure signals in commodity futures market: evidence from India Abstract: This research designs an active double-sort strategy which integrates both momentum and term structure signals present in the commodity futures market. By using a sample of highly traded commodity future contracts of the Indian commodity market from 2006 to 2016, this study confirms the exceptionally high abnormal profitability of the double-sort strategy. The abnormal returns of the double-sort portfolios are robust to transaction costs incurred for designing these active strategies. The application of a conditional multi-factor model and sub-sample analysis suggests that the return profile of these strategies is basically time-varying. Moreover, the low and insignificant correlation of double-sort portfolios with stocks and bonds confirms that relative strength portfolios of commodity futures can be effectively used to create a well-diversified portfolio. Journal: Afro-Asian J. of Finance and Accounting Pages: 131-150 Issue: 1 Volume: 11 Year: 2021 Keywords: commodity futures; momentum strategy; term structure strategies; time-varying; transaction costs; India. File-URL: http://www.inderscience.com/link.php?id=111810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:131-150 Template-Type: ReDIF-Article 1.0 Author-Name: Zaheer Ahmed Author-X-Name-First: Zaheer Author-X-Name-Last: Ahmed Author-Name: Umara Noreen Author-X-Name-First: Umara Author-X-Name-Last: Noreen Author-Name: Suresh A.L. Ramakrishnan Author-X-Name-First: Suresh A.L. Author-X-Name-Last: Ramakrishnan Author-Name: Dewi Fariha Binti Abdullah Author-X-Name-First: Dewi Fariha Binti Author-X-Name-Last: Abdullah Title: What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance Abstract: Investment decision-making behaviour has a significant role in the financial growth of individual investors. This study investigates the impact of financial literacy on investment decision-making behaviour by taking mediating role of financial risk tolerance. The study employed quantitative research design and multi-stage random and convenience sampling. A survey questionnaire was used to collect data from 384 registered individual investors of Pakistan Stock Exchange (PSX). Structural equation modelling (SEM) was used to test the relationships between the constructs. Results showed positive and significant impact of financial literacy on investment decision-making behaviour and financial risk tolerance among individual equity investors. Similarly, financial risk tolerance mediated the relationship between financial literacy and investment decision-making behaviour. The study suggests measures to policy makers for improving financial literacy among individual investors. It also proposes significant functional insights for stockbrokers, investment advisors, and financial managers through examining the investment decision-making behaviour of individual equity investors. This study serves as a guideline for academia to further develop/improve the financial literacy of future investors. Journal: Afro-Asian J. of Finance and Accounting Pages: 1-19 Issue: 1 Volume: 11 Year: 2021 Keywords: behavioural finance; financial literacy; financial risk tolerance; FRT; investment decision-making. File-URL: http://www.inderscience.com/link.php?id=111814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Folarin Alayande Author-X-Name-First: Folarin Author-X-Name-Last: Alayande Title: Tax incentives and industrial productivity: evidence from Nigeria Abstract: This study investigates the relationship between tax incentives and industrial productivity in a protected industry. Based on available empirical literature, the nexus between tax incentives and direct investment, on one hand, and tax incentives and production volumes, has been largely established. However, the nexus between tax and within-sector productivity in a pioneer industry may vary across countries. Using data from Nigeria, the study examines the relative importance of tax amongst other industrial incentives in driving productivity within the cement industry. The findings show that while tax incentives may have improved production growth, it is not a significant driver of short-run productivity growth. Conversely, other non-tax incentives such as financing subsidies appear to have more impact on productivity. These findings provide new insight into the nexus between industrial policy incentives and productivity, and suggest that tax incentives may not be sufficient to drive the country's industrial agenda. Journal: Afro-Asian J. of Finance and Accounting Pages: 151-165 Issue: 1 Volume: 11 Year: 2021 Keywords: tax; tax policy; industrial incentives; productivity; Nigeria. File-URL: http://www.inderscience.com/link.php?id=111816 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:1:p:151-165 Template-Type: ReDIF-Article 1.0 Author-Name: Kameshwar Rao V.S. Modekurti Author-X-Name-First: Kameshwar Rao V.S. Author-X-Name-Last: Modekurti Author-Name: K. Lubza Nihar Author-X-Name-First: K. Lubza Author-X-Name-Last: Nihar Title: The influence of foreign currency earnings and foreign capital on earnings management Abstract: Earnings management offers scope for research due to the variety of accentuating contexts. This paper examines it in the contexts of foreign currency earnings, and foreign capital. 'Does the presence of foreign capital influence earnings management?' and 'Does the presence of foreign currency earnings influence earnings management?' are the research questions answered in this paper, taking the sample of NSE 200 companies of India, for the period 2010-2016. Evidence in this paper supports positive (negative) influence of foreign currency earnings (foreign capital), on earnings management. Results remain robust even when different measures of managed earnings, foreign earnings, and foreign capital are adopted, and also when controlled for firm level factors such as size, level of operations, and industry affiliation. This paper contributes to the meagre international literature on the theme 'international orientation and earnings management' and is the first empirical evidence on this theme from a significant emerging economy, India. Journal: Afro-Asian J. of Finance and Accounting Pages: 353-375 Issue: 3 Volume: 11 Year: 2021 Keywords: earnings management; foreign capital; foreign earnings; earnings volatility; American depository receipts; ADR; FDI; foreign institutional investors; FIIs; foreign debt; discretionary accruals; international finance; information asymmetry. File-URL: http://www.inderscience.com/link.php?id=115666 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:353-375 Template-Type: ReDIF-Article 1.0 Author-Name: Shah Saeed Hassan Chowdhury Author-X-Name-First: Shah Saeed Hassan Author-X-Name-Last: Chowdhury Author-Name: Rashida Sharmin Author-X-Name-First: Rashida Author-X-Name-Last: Sharmin Author-Name: M. Arifur Rahman Author-X-Name-First: M. Arifur Author-X-Name-Last: Rahman Title: On the impact of sentiment on stock returns: the case of Dhaka Stock Exchange Abstract: Since frontier markets are dominated by less-informed individual investors, the stock price movements of these markets could be influenced by the sentiment of general investors. This paper investigates the effect of sentiment on the returns of the Dhaka Stock Exchange (DSE), the main stock exchange in Bangladesh. The study uses indirect measures of stock market sentiment. Results show that sentiment impacts contemporaneous returns, followed by some corrections in the next month. Contrary to general belief, large firms are more vulnerable to market sentiment. There is a unidirectional (Granger) causality from market turnover to portfolio returns, and a strong bi-directional causal relationship between moving average changes and stock returns. When conditional volatility is considered, a significant impact of sentiment is observed, mainly on small-size portfolios. In the presence of other market-wide risk factors, sentiment factors reasonably explain individual stock returns. Overall, the study concludes that sentiment should be considered as a source of systematic risk for the firms listed in the DSE. Journal: Afro-Asian J. of Finance and Accounting Pages: 392-422 Issue: 3 Volume: 11 Year: 2021 Keywords: market sentiment; behavioural finance; emerging stock markets; Dhaka Stock Exchange; DSE; frontier stock markets; return predictability. File-URL: http://www.inderscience.com/link.php?id=115667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:392-422 Template-Type: ReDIF-Article 1.0 Author-Name: Armaya'u Alhaji Sani Author-X-Name-First: Armaya'u Alhaji Author-X-Name-Last: Sani Author-Name: Rohaida Abdul Latif Author-X-Name-First: Rohaida Abdul Author-X-Name-Last: Latif Author-Name: Redhwan Al-Dhamari Author-X-Name-First: Redhwan Author-X-Name-Last: Al-Dhamari Title: Corporate board monitoring, political connection and real earnings management practice in Nigeria Abstract: This study examines the influence of corporate board monitoring on real earnings management practice in Nigeria. It also explores whether the presence of politically connected directors weakens/strengthen the board by using 385 firm-year observations of listed companies on the Nigerian Stock Exchange for the period between 2012 and 2016. The study uses Driscoll-Kraay standard error regression to estimate the model parameters. The results show that politically connected directors have significant positive influence on real earnings manipulations. We also establish that the interaction of politically connected directors with the board weakened the board monitoring power, and thus led to breach of corporate governance. The results also indicate that foreign CEOs and CEOs with financial expertise decrease the propensity of real earnings manipulations in Nigeria. Hence, we draw the attention of regulators to improve the independence of the board in order to control politically connected directors from weakening the board monitoring power. Journal: Afro-Asian J. of Finance and Accounting Pages: 423-446 Issue: 3 Volume: 11 Year: 2021 Keywords: real earnings management; REM; board of directors; political connection; chief executive officer. File-URL: http://www.inderscience.com/link.php?id=115668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:423-446 Template-Type: ReDIF-Article 1.0 Author-Name: Sara Hussein Sabry Author-X-Name-First: Sara Hussein Author-X-Name-Last: Sabry Author-Name: Ismail Ibrahim Gomaa Author-X-Name-First: Ismail Ibrahim Author-X-Name-Last: Gomaa Title: Enhancing internal auditors' risk assessment through governance and cognition: an Egyptian perspective Abstract: The current study investigates the impact of internal auditors' behavioural skills (cognitive style) and technical skills [involvement in information technology governance (ITG)] in assessing risk, namely fraud risk and control risk. A 2 × 2 factorial experimental design was conducted on a sample of 104 internal auditors from Egyptian commercial banks. The results reveal that internal auditors with an analytic cognitive style assessed a significantly higher fraud risk compared to internal auditors with an intuitive cognitive style. On the other hand, internal auditors with an analytic cognitive style assessed an insignificantly higher control risk compared to internal auditors with an intuitive cognitive style. Additionally, internal auditors who were involved in ITG assessed significantly higher fraud and control risks than non-ITG-involved internal auditors. Finally, analytic internal auditors who were involved in ITG assessed significantly higher fraud and control risks compared to intuitive internal auditors who were not involved in ITG. The overall results support the notion that internal auditors need to possess certain behavioural skills and technical skills to be able to engage in more strategic roles and, in turn, add value to their organisations. Journal: Afro-Asian J. of Finance and Accounting Pages: 447-469 Issue: 3 Volume: 11 Year: 2021 Keywords: cognition; information technology governance; ITG; internal auditor. File-URL: http://www.inderscience.com/link.php?id=115669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:447-469 Template-Type: ReDIF-Article 1.0 Author-Name: Alexander Maune Author-X-Name-First: Alexander Author-X-Name-Last: Maune Title: Corporate governance and economic growth in Sub-Saharan Africa Abstract: For decades, the issue of corporate governance and its role in economic growth has attracted global attention from both policy-makers and researchers due to corporate scandals. This study took a deductive approach. Panel data from 13 selected Sub-Saharan African countries from 1996 to 2017 was used to help analyse the relationship through an econometric model in which gross domestic product per capita was the dependent variable while the six dimensions of governance were used as proxies for corporate governance. Foreign direct investment and trade were used as control variables. Accordingly, the results of the regression model show a significant good fit for the data with control of corruption, government effectiveness, regulatory quality and voice and accountability being positive and significant except government effectiveness and regulatory quality that were insignificant. Political stability and rule of law were negative. This article is, however, of great value to researchers, policy-makers, community and investors. Journal: Afro-Asian J. of Finance and Accounting Pages: 309-336 Issue: 3 Volume: 11 Year: 2021 Keywords: corporate governance; Sub-Saharan Africa; SSA; economic growth; economic development; developing economies; investor protection; Africa. File-URL: http://www.inderscience.com/link.php?id=115670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:309-336 Template-Type: ReDIF-Article 1.0 Author-Name: Pankaj Chaudhary Author-X-Name-First: Pankaj Author-X-Name-Last: Chaudhary Author-Name: Narain Chandra Author-X-Name-First: Narain Author-X-Name-Last: Chandra Title: Impact of corporate governance on dividend policy in India Abstract: The basic objective of this study is to analyse the impact of corporate governance system on the dividend payment for Indian firms. We have taken the data for non-financial group A companies of BSE for the time period pertaining to 2010-2017. The corporate finance data is ridden with the endogeneity problem and in order to deal with this issue, we have applied dynamic panel data system to study the relationship between governance system and dividend payments in India. We find that the firms with strong corporate governance pay higher dividends as compared to the weak governance system firms. The board size is positively related to the payment of dividends and promoters' shareholding is negatively related to the dividend payments. Journal: Afro-Asian J. of Finance and Accounting Pages: 337-352 Issue: 3 Volume: 11 Year: 2021 Keywords: corporate governance; agency problems; dividends; GMM; dynamic panel data; India. File-URL: http://www.inderscience.com/link.php?id=115671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:337-352 Template-Type: ReDIF-Article 1.0 Author-Name: Mahmoud Abdelaziz Touny Author-X-Name-First: Mahmoud Abdelaziz Author-X-Name-Last: Touny Author-Name: Mostafa Ahmed Radwan Author-X-Name-First: Mostafa Ahmed Author-X-Name-Last: Radwan Author-Name: Mahmoud M. Hussein Alayis Author-X-Name-First: Mahmoud M. Hussein Author-X-Name-Last: Alayis Title: Macro determinants of stock market volatility: evidence from Middle East region Abstract: Stock market volatility (SMV) and investor decisions are influenced greatly by macroeconomic and political variables at the global, regional and local levels. By using unbalanced panel data from some Middle East countries over the period from 1996 to 2016, this study aims to provide empirical evidence about the macro determinants of SMV. The results of the feasible generalised least squares (FGLS) model indicate that, on the one hand, inflation, corruption and the stock market capitalisation and turnover ratios have a positive and significant impact on SMV. On the other hand, economic growth, financial freedom and stock market returns seem to have a negative and significant effect on SMV. The outcomes of this study provide some policy implications for Middle East countries' policy makers in managing and relieving volatility in their countries' stock market prices. Journal: Afro-Asian J. of Finance and Accounting Pages: 376-391 Issue: 3 Volume: 11 Year: 2021 Keywords: stock market volatility; SMV; corruption; inflation; financial freedom; stock market return; SMR; Thailand. File-URL: http://www.inderscience.com/link.php?id=115672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:3:p:376-391 Template-Type: ReDIF-Article 1.0 Author-Name: Smita Mazumdar Author-X-Name-First: Smita Author-X-Name-Last: Mazumdar Author-Name: Anupam Rastogi Author-X-Name-First: Anupam Author-X-Name-Last: Rastogi Title: Financial restructuring of firms under weak bankruptcy laws - an Indian experience Abstract: This paper empirically investigates behaviour of firms with respect to capital utilisation under a weak insolvency and bankruptcy law using Indian corporate data over a period of 2000-2014. It suggests that firms resorted to higher borrowings after being subjected to restructuring under the corporate debt restructuring mechanism - an informal arrangement supported by the Reserve Bank of India. While firms managed to obtain more debt from lenders thereby signalling the possibility of recovery, we do not find any improvement in firm profitability post financial restructuring. This indicates that lenders in countries with weak insolvency regime postpone the day of reckoning. The empirical evidence corroborates the theory of agency cost of debt and the signalling hypothesis in the change in capital structure of firms. Journal: Afro-Asian J. of Finance and Accounting Pages: 518-536 Issue: 4 Volume: 11 Year: 2021 Keywords: financial restructuring; corporate debt restructuring; CDR; capital structure; leverage; Insolvency and Bankruptcy Code; India. File-URL: http://www.inderscience.com/link.php?id=117723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:518-536 Template-Type: ReDIF-Article 1.0 Author-Name: Benjamin Yeboah Author-X-Name-First: Benjamin Author-X-Name-Last: Yeboah Author-Name: Cláudio Pais Author-X-Name-First: Cláudio Author-X-Name-Last: Pais Title: International financial reporting standards adoption and accounting quality: evidence from Ghanaian listed firms Abstract: The adoption of International Financial Reporting Standards (IFRS) by Ghanaian listed firms form the basis of higher accounting quality and reliability of accounting information from IFRS application. Existing literature suggests that the adoption affects the level of accounting quality. The aim of this paper is to examine whether the shift to IFRS minimises weaknesses in Ghana National Accounting Standards (GNAS) in measuring accounting quality. The paper employs research design metrics of discretional accruals, accrual quality, earnings smoothness, small loss avoidance and price-earnings to compute accounting quality of Ghana Stock Exchange (GSE) firms. The results suggest that accounting quality has improved after the shift to IFRS. This research fills the gap in Ghana level, given that there was no such study. Also, this study gives evidence of improvement in the information environment of GSE capital market after the shift in terms of information quality and accounting comparability. Journal: Afro-Asian J. of Finance and Accounting Pages: 490-517 Issue: 4 Volume: 11 Year: 2021 Keywords: IFRS adoption; accounting quality; earnings management; Ghana. File-URL: http://www.inderscience.com/link.php?id=117724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:490-517 Template-Type: ReDIF-Article 1.0 Author-Name: Augustine C. Arize Author-X-Name-First: Augustine C. Author-X-Name-Last: Arize Author-Name: Ebere Ume Kalu Author-X-Name-First: Ebere Ume Author-X-Name-Last: Kalu Author-Name: John Malindretos Author-X-Name-First: John Author-X-Name-Last: Malindretos Author-Name: Asli Ogunc Author-X-Name-First: Asli Author-X-Name-Last: Ogunc Title: Asymmetric nonlinear analyses of banking sector behaviour, markets and interest rate risks in Africa's frontier economy Abstract: With the possibility of a change in the narrative from the long-held linearity assumption to a nonlinearity and asymmetric discovery in the bank, market and the interest rate risk relationship, this paper explores the banks, stock market development and interest rate risk connection in the context of the Nigerian financial system. Empirical evidence arising from the study indicates that bank development exhibits interest rate sensitivity and changes in inverse direction with the interest rate. Moreover, the results strongly support asymmetry and nonlinearity in the relationship between bank development and stock market development. It is therefore recommended that policy efforts directed towards the development of the financial system should strike a balance between the linear/symmetric assumption and the nonlinear/asymmetric assumption. Journal: Afro-Asian J. of Finance and Accounting Pages: 537-560 Issue: 4 Volume: 11 Year: 2021 Keywords: bank development; stock market development; asymmetries; linearity; nonlinearity; NARDL. File-URL: http://www.inderscience.com/link.php?id=117725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:537-560 Template-Type: ReDIF-Article 1.0 Author-Name: Sunil Kumar Author-X-Name-First: Sunil Author-X-Name-Last: Kumar Author-Name: Nikhil Kaushik Author-X-Name-First: Nikhil Author-X-Name-Last: Kaushik Author-Name: Ashutosh Verma Author-X-Name-First: Ashutosh Author-X-Name-Last: Verma Title: Does earnings management impact firm performance? Empirical evidence from India Abstract: The present study examines the association between firm performance and earnings management (EM) of Indian companies. The study used discretionary accruals (DA) as a proxy for EM and measured DA using balance-sheet approach and cash flow approach. DA was estimated using four models namely, Healy model, DeAngelo model, Jones model and Modified Jones model. The sample consists of companies included in the S%P BSE 500 index after excluding banks and financial institutions. The sample period is from 2007 to 2017 and the data is analysed using panel regression. The findings indicate that the relationship is significant and positive in the current year under the balance sheet approach. However, the relationship is significant and negative for the next year's performance under the cash flow approach. It indicates that earnings through accruals positively influence the firm performance in the current year. However, when the accruals reverse in the next year and cash flows reduce, there is negative influence on the firm performance. Journal: Afro-Asian J. of Finance and Accounting Pages: 471-489 Issue: 4 Volume: 11 Year: 2021 Keywords: discretionary accruals; balance sheet approach; cash flow approach; firm performance; panel data regression. File-URL: http://www.inderscience.com/link.php?id=117726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:471-489 Template-Type: ReDIF-Article 1.0 Author-Name: Srikanth Parthasarathy Author-X-Name-First: Srikanth Author-X-Name-Last: Parthasarathy Title: Do demand curves for stocks slope down? - new evidence from a unique event in India Abstract: The objective of this study is to examine the price and non-price effects of the constituent stocks following the change of the computation methodology of S%P CNX Nifty index from full market capitalisation weighted methodology to the free float market capitalisation weighted methodology in June 2009 in order to resolve whether the demand curves for stocks slope down. This study has followed methodology similar to that of Kaul et al. (2000). The event methodology is used along with cross sectional regressions associating abnormal returns and demand shift. Overall, the empirical evidence in this study supports the downward sloping demand curves for the stocks. The results have implications for one of the basic assumptions in the finance theory, regulators, investors, index providers and managers. To the best of the author's knowledge, this is the first study to examine the slope of demand curves, in such a unique setting without information content. Journal: Afro-Asian J. of Finance and Accounting Pages: 561-582 Issue: 4 Volume: 11 Year: 2021 Keywords: India; financial markets; index redefinition; demand curves. File-URL: http://www.inderscience.com/link.php?id=117737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:561-582 Template-Type: ReDIF-Article 1.0 Author-Name: King Carl Tornam Duho Author-X-Name-First: King Carl Tornam Author-X-Name-Last: Duho Author-Name: Joseph Mensah Onumah Author-X-Name-First: Joseph Mensah Author-X-Name-Last: Onumah Title: Determinants of intellectual capital performance in banks: empirical insights from an emerging market Abstract: This study examines the determinants of intellectual capital performance (ICP) of banks in an emerging market. The value added intellectual coefficient (VAIC™) model is used to measure ICP and data envelopment analysis has been used to measure technical efficiency. We employ an unbalanced panel data of 32 banks over the period 2000-2017. The study found that income diversification, asset tangibility, human capital investment, cost efficiency, operational risk, leverage and bank stability are the main determinants of ICP. Diversification strategy interacts with other variables in informing ICP. Generally, to improve ICP, a focused strategy is favoured over a diversified strategy. However, to enhance value creation, some contextual peculiarities can be explored as guides to make strategic choices. The results and the implications are relevant for bank practitioners, financial analysts and management accountants in emerging economies. It is also relevant for the newly formed Financial Stability Council of Ghana, sector regulators, policymakers, educators and the research community. Journal: Afro-Asian J. of Finance and Accounting Pages: 583-606 Issue: 4 Volume: 11 Year: 2021 Keywords: intellectual capital; data envelopment analysis; banking; efficiency; risk; Basel accord; integrated reporting; VAIC™; Ghana; Africa. File-URL: http://www.inderscience.com/link.php?id=117740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:583-606 Template-Type: ReDIF-Article 1.0 Author-Name: Buvanesh Chandrasekaran Author-X-Name-First: Buvanesh Author-X-Name-Last: Chandrasekaran Author-Name: Rajesh H. Acharya Author-X-Name-First: Rajesh H. Author-X-Name-Last: Acharya Title: An analysis of pricing efficiency of exchange traded funds in India using ARDL bounds test approach Abstract: This paper analyses the pricing efficiency of exchange traded funds (ETFs) in India. In order to achieve the objective, the study employs the autoregressive distributed lag (ARDL) model - bounds test approach. The study includes 14 equity ETFs for the time period from the inception date of each ETF to December 2016. An attempt has been made to establish long-run relationship between the closing price of ETFs and closing index values using ARDL model. The study also analyses the research question in the presence of single and multiple structural breaks. Empirical results of the study show that the absolute pricing deviation is relatively small in the case of ETFs. Most of the ETFs have long-run relationship with the underlying index. The study confirms structural breaks in the ETF closing price time series. With the introduction of structural breaks, increase in the size of statistically significant long-run coefficients indicates an improvement in the speed of correction to the equilibrium level. Journal: Afro-Asian J. of Finance and Accounting Pages: 607-633 Issue: 4 Volume: 11 Year: 2021 Keywords: pricing efficiency; exchange traded funds; ETFs; autoregressive distributed lag; ARDL; structural breakpoint; India. File-URL: http://www.inderscience.com/link.php?id=117742 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:607-633 Template-Type: ReDIF-Article 1.0 Author-Name: Hale Yalcin Author-X-Name-First: Hale Author-X-Name-Last: Yalcin Author-Name: Sema Dube Author-X-Name-First: Sema Author-X-Name-Last: Dube Title: Does fund managers' timing ability depend on market conditions? Evidence from Turkish variable funds Abstract: We examine market timing by Turkish variable-fund managers during 2011-2016 within a panel data framework, using interaction variables to control for market conditions. We find strong evidence for market-timing ability, which increases with country openness, global emerging-market portfolio returns, economic growth and, to a smaller extent, derivative market size; and decreases with technological advancement. We also find no evidence for security selection ability. Our results suggest that market timing ability depends on market conditions and it may be important to control for such conditions in studies that seek to determine managerial performance. Journal: Afro-Asian J. of Finance and Accounting Pages: 634-646 Issue: 4 Volume: 11 Year: 2021 Keywords: market timing; emerging markets; technology; openness; panel data. File-URL: http://www.inderscience.com/link.php?id=117743 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:11:y:2021:i:4:p:634-646