Template-Type: ReDIF-Article 1.0 Author-Name: Parul Munjal Author-X-Name-First: Parul Author-X-Name-Last: Munjal Author-Name: P. Malarvizhi Author-X-Name-First: P. Author-X-Name-Last: Malarvizhi Author-Name: Deergha Sharma Author-X-Name-First: Deergha Author-X-Name-Last: Sharma Title: Social performance reporting in the Indian banking sector - exploring linkage with financial performance Abstract: The research aims to analyse the social performance of the Indian banking sector and examine its relationship with the financial performance. Secondary data has been collected for a five year period (2013-2014 to 2017-2018) on a sample of 54 banks operating in India. Content analysis was applied to extract information about social performance disclosed by sample banks to help construct disclosure score index. Hierarchical multiple regression was applied to analyse the relationship between social and financial performance while controlling for the effects of size, financial leverage, and capital intensity. Our results indicate that there exists a significant positive relationship between social and financial performance of banks operating in India. These results lend support to the stakeholder theory, the good management theory, and the motivational theory. Our findings provide insights into the role of bank managers, policy makers and regulators to integrate social performance into core banking operations, and to frame more concrete social policies leading to enhanced financial performance. Journal: Afro-Asian J. of Finance and Accounting Pages: 192-209 Issue: 2 Volume: 13 Year: 2023 Keywords: social performance; financial performance; banking; content analysis; hierarchical multiple regression. File-URL: http://www.inderscience.com/link.php?id=129541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:192-209 Template-Type: ReDIF-Article 1.0 Author-Name: Dima Waleed Hanna Alrabadi Author-X-Name-First: Dima Waleed Hanna Author-X-Name-Last: Alrabadi Author-Name: Duha Ali Al-Barakat Author-X-Name-First: Duha Ali Author-X-Name-Last: Al-Barakat Title: Extreme value volatility estimators and realised volatility of stock prices in Amman Stock Exchange Abstract: The aim of this study is to compare between extreme value volatility estimators and other realised volatility estimators in Amman Stock Exchange (ASE) over the period (2012-2016). The dataset consists of daily opening, highest, lowest and closing stock prices for a sample of 100 companies listed in ASE, including 1,236 trading days. The methodology of the study is based on relative efficiency proxies between extreme value volatility estimators. The results of the study show that extreme value volatility estimators are more efficient than other realised volatility estimators. In addition, the Garman-Klass estimator is the most efficient volatility estimator among Parkinson and Rogers-Satchell volatility estimators. Journal: Afro-Asian J. of Finance and Accounting Pages: 210-224 Issue: 2 Volume: 13 Year: 2023 Keywords: extreme value volatility estimators; realised volatility; Parkinson volatility estimator; high-frequency data; Garman-Klass volatility estimator; Rogers-Satchell volatility estimator; Amman Stock Exchange; ASE. File-URL: http://www.inderscience.com/link.php?id=129542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:210-224 Template-Type: ReDIF-Article 1.0 Author-Name: Muneer Rajab Amrah Author-X-Name-First: Muneer Rajab Author-X-Name-Last: Amrah Author-Name: Hafiza Aishah Hashim Author-X-Name-First: Hafiza Aishah Author-X-Name-Last: Hashim Author-Name: Lutfi Hassen Ali Al-Ttaffi Author-X-Name-First: Lutfi Hassen Ali Author-X-Name-Last: Al-Ttaffi Title: The mediating effect of financial reporting quality on corporate governance effectiveness and cost of debt Abstract: The purpose of this study is to examine the mediating effect of financial reporting quality on corporate governance effectiveness and cost of debt. This study uses a panel dataset for 68 companies listed in Oman from 2012 to 2018. The empirical results that were obtained by applying a four-step approach show that companies with more effective corporate governance and higher quality of financial reporting obtain the optimum cost of debt. The study also reveals that financial reporting quality partially mediates the relationship between corporate governance effectiveness and cost of debt. This study among a limited number of studies provides a comprehensive analysis of the association between corporate governance effectiveness, financial reporting quality and cost of debt in the setting of Oman. The study findings have potential implications for all users of financial reports because they indicate that financial reporting quality has a central role in evaluating firm performance and in eliminating information asymmetry, and therefore can reduce the cost of financing. Journal: Afro-Asian J. of Finance and Accounting Pages: 225-252 Issue: 2 Volume: 13 Year: 2023 Keywords: cost of debt; corporate governance; financial reporting quality; mediation effect; Oman. File-URL: http://www.inderscience.com/link.php?id=129543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:225-252 Template-Type: ReDIF-Article 1.0 Author-Name: Prem Lal Joshi Author-X-Name-First: Prem Lal Author-X-Name-Last: Joshi Author-Name: Govindan Marthandan Author-X-Name-First: Govindan Author-X-Name-Last: Marthandan Title: Influencing factors for internal audit effectiveness in the Indian context Abstract: This research is to assess the empirical evidence on the critical determinants of internal audit (IA) effectiveness in Indian Nifty500 companies. IA effectiveness is arguably a result of the interplay among different factors that may have an immense effect but have not been thoroughly investigated in the Indian environment. Using the proportionate stratified sampling technique, 64 usable questionnaires were received and the response rate was 28.2%. Non-response bias and common method bias were tested. From the factor analysis and multiple regression models, the following critical determinants were established: 1) 'interaction between internal auditor and audit committee'; 2) 'risk-based planning and guidelines'; 3) 'moderating role of management support with Big Data Analytics' for IA effectiveness in Indian context. The implications are the critical determinants that potentially influence this effectiveness in the changing business and technological environment which are important for policy decision purposes. Journal: Afro-Asian J. of Finance and Accounting Pages: 253-276 Issue: 2 Volume: 13 Year: 2023 Keywords: internal audit effectiveness; audit committee; risk-based planning; big data and analytics; BDA; management support; critical determinants; moderating role. File-URL: http://www.inderscience.com/link.php?id=129544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:253-276 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammed M. Yassin Author-X-Name-First: Mohammed M. Author-X-Name-Last: Yassin Author-Name: Saja A. Al-Kasasbeh Author-X-Name-First: Saja A. Author-X-Name-Last: Al-Kasasbeh Title: Do earnings quality models affect different excess cash holdings models? Abstract: With the increasing cost of external financing in Jordan, excess cash holdings are a dominant feature of industrial companies listed on the Amman Stock Exchange (ASE). This study provides empirical evidence of an information asymmetry problem by examining the impact of earnings quality on excess cash holdings. The results aim to help investors and creditors to evaluate the transparency of and confidence in financial reporting to enhance decision making and minimise the risk of default. The study employed three different models for earnings quality and two different models for excess cash holdings. Through examination of panel data, the study found that firms with poor earnings quality tend to accumulate excess cash holdings in order to isolate themselves from an information asymmetry problem. Journal: Afro-Asian J. of Finance and Accounting Pages: 174-191 Issue: 2 Volume: 13 Year: 2023 Keywords: earnings quality; excess cash holdings; information asymmetry; Amman Stock Exchange; ASE; Jordan. File-URL: http://www.inderscience.com/link.php?id=129546 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:174-191 Template-Type: ReDIF-Article 1.0 Author-Name: Pourakin Djarius Dieudonné Bama Author-X-Name-First: Pourakin Djarius Dieudonné Author-X-Name-Last: Bama Title: Investment approach, predictability and mediating effect of the market profitability index on investor sentiment on the West African Regional Stock Exchange Abstract: Emerging markets have diversification potential for international investors - provided they know the characteristics of these markets in order to make good allocation decisions. In this perspective, this paper studies the predictability of the West African Regional Stock Exchange's indicators with investors' investment approach and the mediating effects of the profitability index between their sentiment and market liquidity. The results indicate that the market profitability index plays a moderating role rather than mediating role between investor sentiment and market liquidity. In the context of predictability, the results are contradictory. Apparently, in a perceptible illusion and logic of savings on the market, investors are unable to correctly anticipate the development of the market, which is rather relatively stable. Journal: Afro-Asian J. of Finance and Accounting Pages: 147-173 Issue: 2 Volume: 13 Year: 2023 Keywords: behaviour; sentiment; liquidity; mediation effects; predictability. File-URL: http://www.inderscience.com/link.php?id=129552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:2:p:147-173 Template-Type: ReDIF-Article 1.0 Author-Name: Haruna Maama Author-X-Name-First: Haruna Author-X-Name-Last: Maama Author-Name: Emmanuel Okofo-Dartey Author-X-Name-First: Emmanuel Author-X-Name-Last: Okofo-Dartey Title: Branch banking variability and rural banks' performance: a GMM approach Abstract: The study employed the resource-based view (RBV) theory to investigate the impact of the number of branches and city branches on the financial performance of rural banks in Ghana. The study used 492 annual reports of 76 rural banks in Ghana for the analysis. Return on capital employed (ROCE), return on equity (ROE) and net interest margin (NIM) were used as proxies for financial performance. A generalised method of moment was employed for the regression analysis. The evidence showed that the number of rural bank branches positively impacted their ROCE and ROE but negatively impacted their NIM. Consistent with the RBV theory, the study further found that the establishment of rural banks in cities positively impacted their performance. The number and location of rural bank branches can impact their financial performance. This study might be the first to empirically test the relationship between branch variability and the performance of banks. Journal: Afro-Asian J. of Finance and Accounting Pages: 612-628 Issue: 5 Volume: 13 Year: 2023 Keywords: branch banking; rural banks; resource-based view theory; RBV; bank performance; profitability; Ghana; return on capital employed; ROCE; return on equity; ROE; net interest margin; NIM; generalised methods of moment; GMM. File-URL: http://www.inderscience.com/link.php?id=133405 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:612-628 Template-Type: ReDIF-Article 1.0 Author-Name: Ridha Ettbib Author-X-Name-First: Ridha Author-X-Name-Last: Ettbib Author-Name: Mansour Eddaly Author-X-Name-First: Mansour Author-X-Name-Last: Eddaly Title: Modelling the real exchange rate misalignment in the presence of outliers for developing countries Abstract: Persistent real exchange rate misalignment is sometimes explained by the presence of a nonlinear adjustment process towards the long-run equilibrium. However, although the nonlinearity may be a feature for some real exchange rates, outliers and nonlinearity may easily be confused. The main purpose of this paper is to make the distinction between nonlinearity and outliers using robust estimation methods of maximum likelihood. Also, the nature of the real exchange rate misalignment is specified, based on the value of fundamentals, for a sample of African countries during the period from 1960 to 2015. According to the robust estimation procedures, the results of linearity tests are particularly interesting. Indeed, the apparent nonlinearity is significantly reduced when considering outliers, especially for South Africa, Ghana, Madagascar and Morocco. We can conclude that the source of the nonlinearity of the real exchange misalignment rate for the countries already mentioned is the existence of outliers in the considered series. Journal: Afro-Asian J. of Finance and Accounting Pages: 629-650 Issue: 5 Volume: 13 Year: 2023 Keywords: real exchange rate; outliers; smooth transition autoregressive; robust estimation. File-URL: http://www.inderscience.com/link.php?id=133406 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:629-650 Template-Type: ReDIF-Article 1.0 Author-Name: Marwa Ben Salem Author-X-Name-First: Marwa Ben Author-X-Name-Last: Salem Author-Name: Mohamed Fakhfekh Author-X-Name-First: Mohamed Author-X-Name-Last: Fakhfekh Author-Name: Ahmed Jeribi Author-X-Name-First: Ahmed Author-X-Name-Last: Jeribi Title: Volatility dynamics of Tunisian stock market before and during COVID-19 outbreak and diversification benefits of Bitcoin Abstract: The objective of this paper is to select the appropriate GARCH model fit for analysing the volatility dynamics of the Tunisian sectoral stock market indices and Bitcoin during the COVID-19 outbreak period as well as to examine the Bitcoin diversification benefits. On using four models (EGARCH, FIGARCH, FIEGARCH, and TGARCH) and mean-variance spanning test, our findings prove that following the COVID-19 outbreak, the consumer service, financial and distribution, industrial, basic materials and banking sectors' return volatilities tend to have a relatively high positive and significant asymmetric effect, as compared to the pre-COVID period. Similarly, the results reveal that the Bitcoin proves to bring about significant diversification benefits once incorporated into a well-diversified benchmark portfolio, predominantly throughout the COVID-19 outbreak. Overall, our results could be of great benefit to investors seeking to account for any future volatility and implement special hedging strategies under COVID-19 crisis. Journal: Afro-Asian J. of Finance and Accounting Pages: 651-672 Issue: 5 Volume: 13 Year: 2023 Keywords: Tunisian sectoral stock market indices; GARCH models; COVID-19 outbreak; Bitcoin; mean-variance spanning test. File-URL: http://www.inderscience.com/link.php?id=133407 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:651-672 Template-Type: ReDIF-Article 1.0 Author-Name: Gehan A. Mousa Author-X-Name-First: Gehan A. Author-X-Name-Last: Mousa Title: Factors affecting CEO compensation: an empirical investigation from emerging markets Abstract: This study examines determinants of the CEO compensation using a sample of 1,044 firm-year observations from six emerging markets covering the period from 2015-2018. The study conducts a backword regression analysis to examine the effect of some governance structure variables and firm attributes on the total cash of CEO compensation. The findings of the study show that governance structure variables, such as blockholder ownership and CEO duality, have a significant effect on total cash of CEO compensation while, board size and board independence are insignificant factors. Companies with blockholder ownership pay more CEO compensation suggesting that blockholder ownership is not a good governance mechanism to monitor corporate boards' decisions. Companies with CEO duality tend to pay more compensation. This result suggests that the presence of the CEO in boards reduces the efficiency of the board in monitoring managerial decisions such as CEO compensation, which agrees with the agency view. Journal: Afro-Asian J. of Finance and Accounting Pages: 759-779 Issue: 6 Volume: 13 Year: 2023 Keywords: CEO compensation; board features; financial performance; governance structure. File-URL: http://www.inderscience.com/link.php?id=134692 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:759-779 Template-Type: ReDIF-Article 1.0 Author-Name: Satya Krishna Sharma Raavinuthala Author-X-Name-First: Satya Krishna Sharma Author-X-Name-Last: Raavinuthala Author-Name: Girish Jain Author-X-Name-First: Girish Author-X-Name-Last: Jain Author-Name: Pratap Chandra Biswal Author-X-Name-First: Pratap Chandra Author-X-Name-Last: Biswal Title: Internecine interrelations among liquidity risk, market risk and credit risk in Indian banking system Abstract: Events like the 2008 financial crisis have highlighted the need to consider the complicated interrelations between liquidity risk, credit risk, and market risk for better and integrated financial risk management of banks. This work uses auto regression with distributed lag, considering demonetisation as a dummy variable, to study these interrelationships in the context of the Indian banking system. It is found that liquidity deficit and credit risk have a tendency to exacerbate each other irrespective of demonetisation. The work finds that funding liquidity deficit faced by the banks increases interest rate volatility. Indications of debt rollover to alleviate proxies and indicators of credit risk are there too. All in all, the work shows that demonetisation had reduced liquidity problems but increased credit risk issues. Journal: Afro-Asian J. of Finance and Accounting Pages: 780-797 Issue: 6 Volume: 13 Year: 2023 Keywords: liquidity risk; credit risk; market risk; interest rate risk; interrelations; demonetisation; systemic risk; Indian banks. File-URL: http://www.inderscience.com/link.php?id=134693 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:780-797 Template-Type: ReDIF-Article 1.0 Author-Name: Shikha Bhatia Author-X-Name-First: Shikha Author-X-Name-Last: Bhatia Author-Name: Nidhi Singh Author-X-Name-First: Nidhi Author-X-Name-Last: Singh Title: Extending theory of planned behaviour for predicting investment intention of millennials by including risk-taking propensity Abstract: The study aims to review the theory of planned behaviour (TPB) and extend it with a risk-taking propensity to examine the influence on investors' behavioural intention to invest in the stock market in the context of a developing nation. The study uses a cross-sectional sampling process and a quantitative approach. PLS-SEM approach was applied to determine the suggested relationship between the constructs. The study's findings suggest that TPB variables are highly significant to measure the behavioural intention of an individual. The study helps to identify the factors which predict the intention to invest. The findings point towards the need for improving financial attitude, financial self-efficacy, subjective norms, and the risk-taking propensity of millennials to increase their investment intention in the long run. The financial institutions, policymakers, and other related agencies must take concrete steps to enhance individuals' awareness and risk ability towards financial products and investment options. Journal: Afro-Asian J. of Finance and Accounting Pages: 551-573 Issue: 5 Volume: 13 Year: 2023 Keywords: theory of planned behaviour; risk-taking propensity; investment intention; millennial's; attitude; subjective norms; financial self-efficacy; partial least squares structural equation modelling; PLS-SEM; India; empirical. File-URL: http://www.inderscience.com/link.php?id=133414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:551-573 Template-Type: ReDIF-Article 1.0 Author-Name: Mwila J. Mulenga Author-X-Name-First: Mwila J. Author-X-Name-Last: Mulenga Author-Name: Meena Bhatia Author-X-Name-First: Meena Author-X-Name-Last: Bhatia Title: Predictive ability of operating cash flow and earnings on future cash flow of NSE-listed firms Abstract: The study examines the predictive ability of current operating cash flow and earnings on the future operating cash flow of the National Stock Exchange-100 listed firms in India. It is a 15 years (2001 to 2015) study and has 1,120 firm-year observations. The ordinary least squares method is used to improve the accuracy fixed effect model and a Random effect model are used. Evidence suggests that the current operating cash flows explain future cash flow better than current earnings, which contrasts with the Financial Accounting Standards Board assertion (FASB, Statement of Financial Accounting Concepts No. 1, 1978) and International Accounting Standards Board (IASB, 1989). Current operating cash flow's predictive ability on future cash flow is more powerful in profit-making firms than the loss-making firms and for all industries. Further, the disaggregated earnings model significantly enhances predictive ability. These findings will enable the users of financial statements to understand the role of current operating cash flow and earnings in predicting future operating cash flows. Journal: Afro-Asian J. of Finance and Accounting Pages: 693-713 Issue: 6 Volume: 13 Year: 2023 Keywords: operating cash flow; earnings; predictive ability; accruals; loss-making firms; profit-making firms; disaggregated earnings; India. File-URL: http://www.inderscience.com/link.php?id=134695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:693-713 Template-Type: ReDIF-Article 1.0 Author-Name: Sweta Agarwal Author-X-Name-First: Sweta Author-X-Name-Last: Agarwal Author-Name: Anubhav Jain Author-X-Name-First: Anubhav Author-X-Name-Last: Jain Title: Cross-border merger impact on wealth of acquirers: evidence from emerging nation Abstract: The paper tries to assess the impact of cross-border mergers and acquisitions announcements on the Indian acquiring firm's shareholder wealth. A total of 110 CBMA deals announced by Indian acquirers between 2013-2018 comprises the dataset. Value effects were determined using event study methodology. The study reveals positive abnormal returns on the announcement day consistent with other similar Indian studies. It also reports higher positive wealth effects in post-announcement windows compared to pre-announcement windows. The results highlight increasing informational efficiency in Indian stock markets and shrinkage of wealth-creating windows in CBMA deals for acquiring firm's shareholders. Journal: Afro-Asian J. of Finance and Accounting Pages: 798-818 Issue: 6 Volume: 13 Year: 2023 Keywords: cross-border mergers and acquisitions; CBMA; abnormal returns; event study methodology; emerging economy. File-URL: http://www.inderscience.com/link.php?id=134696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:798-818 Template-Type: ReDIF-Article 1.0 Author-Name: Meena Bhatia Author-X-Name-First: Meena Author-X-Name-Last: Bhatia Title: Use of information sources, annual reports and other corporate announcements: the case of large and small investors of India Abstract: This study investigates the perceptions towards corporate annual reports, its sections, information sources, and other announcements used for equity investing by large and small individual investors; and studies differences in perceptions between the two groups. The data gathered from 276 completed surveys is analysed using descriptive statistics and Mann Whitney tests. The findings show that, in comparison to developed markets and other developing markets, Indian investors (both large and small) rely more on personal knowledge of the firm and analysis of the company in relation to annual reports. Investors find annual reports too long, and large investors reported that there is delay in publishing it. The financial statements are the most important and understandable section. Announcements on stock exchanges are deemed the most crucial since they are related to their choices. There is no prior research on this feature of Indian investors in the literature. Journal: Afro-Asian J. of Finance and Accounting Pages: 714-734 Issue: 6 Volume: 13 Year: 2023 Keywords: corporate reports; emerging markets; investment decisions; investors; financial statements; India; announcements. File-URL: http://www.inderscience.com/link.php?id=134697 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:714-734 Template-Type: ReDIF-Article 1.0 Author-Name: Sunitha Kumaran Author-X-Name-First: Sunitha Author-X-Name-Last: Kumaran Title: Forecasting volatility of Saudi stock market (TASI) and sectoral indices Abstract: Volatility can be regarded as a coercing factor and is a key input in investment decisions. In this study, the volatility clustering behaviour, volatility persistence and leverage effect of the daily returns in the Saudi Stock Market Composite Index (TASI) and 16 sectoral indices were analysed using the asymmetry GARCH models. The long-term volatility forecast was done for an out of sample period of one year. The results provide strong evidence of the existence of conditional heteroscedasticity in the returns, suggesting that past news about volatility and lagged conditional variance has a significant impact on the daily volatility. The high degree of persistence indicates explosive volatility. The leverage effect coefficient signals that the impact of bad news on the current period of volatility is heavier than that of good news. The forecast long-term daily volatility is expected to be high for media and entertainment industry and low for materials sector. Journal: Afro-Asian J. of Finance and Accounting Pages: 819-842 Issue: 6 Volume: 13 Year: 2023 Keywords: volatility clustering; persistence; leverage effect; asymmetry effect; GARCH; Saudi Stock Market Composite Index; TASI; volatility forecast; conditional volatility; asymmetry volatility tools; portfolio construction. File-URL: http://www.inderscience.com/link.php?id=134698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:819-842 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Van Tan Author-X-Name-First: Nguyen Van Author-X-Name-Last: Tan Author-Name: Ninh Thi Trang Author-X-Name-First: Ninh Thi Author-X-Name-Last: Trang Title: The long-run performance of initial public offerings: evidence from a transition economy Abstract: This study provides empirical evidence on the long-run performance of initial public offerings (IPOs), along with identifying factors affecting the long-run performance of IPOs in Vietnam. By selecting 183 IPOs in Vietnam from 2005 to 2019, the authors conclude that the long-run performance measures of IPOs (AR<SUB align="right"><SMALL>t</SMALL></SUB> and CAR<SUB align="right"><SMALL>1,t</SMALL></SUB>) change over time after listing. In particular, these IPOs tend to underperform from the 14th month considering AR<SUB align="right"><SMALL>t</SMALL></SUB>. IPOs' underperformance occurs when there are negative cumulative abnormal returns in the long run. This study adopts the Bayesian model averaging (BMA) method and the results show that factors affecting the long-run performance of the IPOs include initial returns and offer size. Journal: Afro-Asian J. of Finance and Accounting Pages: 574-591 Issue: 5 Volume: 13 Year: 2023 Keywords: equitisation; initial public offerings; Bayesian model averaging method; long-run performance; state-owned enterprises. File-URL: http://www.inderscience.com/link.php?id=133419 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:574-591 Template-Type: ReDIF-Article 1.0 Author-Name: Moses Elaigwu Author-X-Name-First: Moses Author-X-Name-Last: Elaigwu Author-Name: Ayoib Che-Ahmad Author-X-Name-First: Ayoib Author-X-Name-Last: Che-Ahmad Author-Name: Salau Olarinoye Abdulmalik Author-X-Name-First: Salau Olarinoye Author-X-Name-Last: Abdulmalik Title: Auditor choice, audit partner busyness, and sustainability reporting quality Abstract: This paper investigates the effect of auditor choice and audit partner busyness on sustainability reporting quality (SRQ). The study utilises a longitudinal sample of 594 firm-year observations of non-financial PLCs in Malaysia for the periods 2015 to 2017. The results of the panel regression reveal that the choice of BIG4 as an external auditor and audit partner busyness positively and significantly influences SRQ. The positive relationships indicate a slight improvement in the SRQ of firms, but do not amount to a high-quality disclosure. This has policy implications for regulators in terms of strengthening the compliance with the Malaysian sustainability reporting guide and other stakeholders as it has to do with increasing the pressure to improve SRQ. The study bridged literature gaps by offering new insights and empirical evidence on the role of external board governance mechanisms in SRQ. Journal: Afro-Asian J. of Finance and Accounting Pages: 735-758 Issue: 6 Volume: 13 Year: 2023 Keywords: sustainability reporting quality; SRQ; auditor choice; Big4; audit partner busyness; legitimacy theory; stakeholder theory. File-URL: http://www.inderscience.com/link.php?id=134699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:6:p:735-758 Template-Type: ReDIF-Article 1.0 Author-Name: Wafaa Salah Mohamed Author-X-Name-First: Wafaa Salah Author-X-Name-Last: Mohamed Author-Name: Lamiaa Fattouh Ibrahim Author-X-Name-First: Lamiaa Fattouh Author-X-Name-Last: Ibrahim Author-Name: Moid Uddin Ahmad Author-X-Name-First: Moid Uddin Author-X-Name-Last: Ahmad Title: Do data mining techniques assist auditors in predicting high-risk accounts in MENA Region countries? Abstract: This study aims to construct a model that increases the accuracy of forecasting qualified audit opinions using publicly available measures and artificial intelligence. Additionally, the study probes the financial variables affecting an auditor's propensity to issue a qualified audit report. This study investigated the predictive abilities of three models: binary logistic regression, random forest, and decision tree. The study examined 564 audit reports (282 qualified reports) from nine MENA region countries from 2012 to 2018. The random forest technique produces the most accurate audit prediction. The study found that the significant firm-level variables that affect auditor opinion are book value per share, client size, and leverage ratio. The study's findings will bolster auditors, policymakers, and managers in effective decision-making. Journal: Afro-Asian J. of Finance and Accounting Pages: 673-692 Issue: 5 Volume: 13 Year: 2023 Keywords: audit reports; decision tree; DT; random forest; logistic regression; qualified opinion. File-URL: http://www.inderscience.com/link.php?id=133421 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:673-692 Template-Type: ReDIF-Article 1.0 Author-Name: Sweta Tiwari Author-X-Name-First: Sweta Author-X-Name-Last: Tiwari Author-Name: Chanchal Chatterjee Author-X-Name-First: Chanchal Author-X-Name-Last: Chatterjee Title: Investigating accrual and real earnings management of financially troubled Indian firms Abstract: This paper examines whether financially troubled Indian firms manage earnings (both accrual and real activity-based) in the light of newly adopted financial reporting practices (IND-AS) by considering 208 financially distressed non-financial firms from 2017 to 2021. The study uses multiple regression for analysis. The study reveals a significant linkage between financial distress and earnings management and this association varies across accounting and market-based measures of financial distress. Also, the intensity of financial distress influences the direction (upward or downward) of earnings management. Interestingly, we find a stronger association of financial distress with accrual-based earnings management than real activity-based earnings management. Results also exhibit that the earnings management of financially troubled Indian firms is higher during the COVID-19 pandemic period. The findings can help regulators and policymakers to design suitable policies to improve the quality of earnings reporting and constrain the possibility of earnings management. Journal: Afro-Asian J. of Finance and Accounting Pages: 592-611 Issue: 5 Volume: 13 Year: 2023 Keywords: earnings management; financial distress; emerging economies; Z-score; India; discretionary accruals; accrual earnings management; real earnings management. File-URL: http://www.inderscience.com/link.php?id=133431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:5:p:592-611 Template-Type: ReDIF-Article 1.0 Author-Name: C.R. Sathyamoorthi Author-X-Name-First: C.R. Author-X-Name-Last: Sathyamoorthi Author-Name: Christian John Mbekomize Author-X-Name-First: Christian John Author-X-Name-Last: Mbekomize Author-Name: Lame Bakwenabatsile Author-X-Name-First: Lame Author-X-Name-Last: Bakwenabatsile Title: Impact of cash conversion cycle on financial performance: an empirical study of listed companies in Botswana Abstract: The study examines the impact of cash conversion cycle (CCC) on the financial performance of selected listed companies in Botswana Stock Exchange for the period 2012-2018. Financial statements are the main source of data. Return on assets (ROA) and return on equity (ROE) are the dependent variables measuring financial performance. The data is analysed using descriptive statistics, correlation analysis, and multiple regression analysis. Correlation analysis reveals a non-significant negative relationship between CCC and profitability, whereas the control variables of size and debt exhibit a significant negative relationship with firm profitability. The regression results show that CCC has an insignificant positive effect on ROA but has a significant impact on ROE. Both size and debt have a significant impact on ROA and ROE. The findings highlight the need for the firms to focus on policies and strategies that will reduce the length of CCC to enhance profitability and firm value. Journal: Afro-Asian J. of Finance and Accounting Pages: 415-433 Issue: 4 Volume: 13 Year: 2023 Keywords: cash conversion cycle; CCC; return on assets; ROA; return on equity; ROE; profitability; Botswana. File-URL: http://www.inderscience.com/link.php?id=132956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:415-433 Template-Type: ReDIF-Article 1.0 Author-Name: My-Linh Thi Nguyen Author-X-Name-First: My-Linh Thi Author-X-Name-Last: Nguyen Author-Name: Nga Phan Thi Hang Author-X-Name-First: Nga Phan Thi Author-X-Name-Last: Hang Author-Name: Toan Ngoc Bui Author-X-Name-First: Toan Ngoc Author-X-Name-Last: Bui Author-Name: Hoai Thu Ho Author-X-Name-First: Hoai Thu Author-X-Name-Last: Ho Author-Name: Tung Duy Thai Author-X-Name-First: Tung Duy Author-X-Name-Last: Thai Title: The relationship between tax revenue and economic growth: an empirical study in Vietnam Abstract: This paper focuses on examining the impact of tax revenue on economic growth in Vietnam. In particular, tax revenue is measured through tax revenue ratio or the government's total tax revenue to GDP. The research data were collected on a yearly basis in the period 1990-2019. Through the vector autoregressive (VAR) model, the paper has achieved great success when finding the positive impact of tax revenue (TAX) on economic growth in Vietnam; however, this impact is negative in the long term. Conversely, economic growth has a positive impact on tax revenue with one lag and three lags. In addition, economic growth in Vietnam is affected by domestic savings (SAV), trade openness (OP), government spending (GOV), and domestic investment (CAP); meanwhile, tax revenue is affected by domestic savings (SAV), trade openness (OP), and government spending (GOV). The paper is the first empirical evidence in Vietnam for the relationship between tax revenue and economic growth. Therefore, the research results have important implications for the Government of Vietnam to have a basis to administer tax policies in order to stimulate economic growth in a sustainable way. Journal: Afro-Asian J. of Finance and Accounting Pages: 434-451 Issue: 4 Volume: 13 Year: 2023 Keywords: economic growth; tax policy; tax revenue; Vietnam. File-URL: http://www.inderscience.com/link.php?id=132957 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:434-451 Template-Type: ReDIF-Article 1.0 Author-Name: Turki Alshammari Author-X-Name-First: Turki Author-X-Name-Last: Alshammari Title: Seasonality in Gulf Cooperation Council stock markets Abstract: This study strives to model the seasonality and the cyclicality of the Gulf Cooperation Council (GCC) stock markets returns. The study documents that the stock markets of Kuwait, Bahrain, Saudi Arabia, the Emirates, and Oman all show weekday seasonality, but the effect of that seasonality on stock returns is trifling, especially after considering the transaction cost. Besides, all GCC stock markets, except the Saudi market, show monthly seasonality. Furthermore, all GCC stock markets returns exhibit cyclicality. The results are robust to the employed econometric method. These results could be ascribed to country-specific investors' attitudes that might be employed to frame distinct investment strategies. Journal: Afro-Asian J. of Finance and Accounting Pages: 452-466 Issue: 4 Volume: 13 Year: 2023 Keywords: Gulf Cooperation Council; GCC; seasonality; cyclicality; trend; Box-Jenkins; stock returns; market efficiency. File-URL: http://www.inderscience.com/link.php?id=132958 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:452-466 Template-Type: ReDIF-Article 1.0 Author-Name: T.G. Saji Author-X-Name-First: T.G. Author-X-Name-Last: Saji Title: Mean reversals and stock market overreactions: further evidence from India Abstract: 'Overreaction hypothesis' of De Bondt and Thaler (1985, 1987) asserts that prior period losers outperform prior period winners in stock markets. In this paper, we test this price reversal behaviour of stock markets in Indian context. The data used comprises monthly prices of Nifty included stocks of National Stock Exchange between January 2008 and December 2016. Consistent with the previous evidence on market overreactions, the study finds losers outperform prior winners over a one to two-year period of portfolio formation. The research observes persistence in investor overreactions to price trends both in upside and downside price movements of Indian stock market during the post financial crisis period. Journal: Afro-Asian J. of Finance and Accounting Pages: 467-477 Issue: 4 Volume: 13 Year: 2023 Keywords: overreactions; winner-loser effects; CAPM beta; excess returns; India. File-URL: http://www.inderscience.com/link.php?id=132959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:467-477 Template-Type: ReDIF-Article 1.0 Author-Name: Abderazak Bakhouche Author-X-Name-First: Abderazak Author-X-Name-Last: Bakhouche Author-Name: Eman Zabalawi Author-X-Name-First: Eman Author-X-Name-Last: Zabalawi Author-Name: Mohamed Lotfi Boulkeroua Author-X-Name-First: Mohamed Lotfi Author-X-Name-Last: Boulkeroua Title: Evaluating the sources of productivity of insurance firms in Arab gulf countries and Jordan: Malmquist productivity index Abstract: In recent years, the adoption of technological advances in finance may have impacted the efficiency and productivity of financial institutions, through lower transaction costs and reduced information asymmetries. This paper employs the Malmquist productivity index to measure productivity and identify its main drivers for 98 conventional and Sharia-compliant insurance firms operating in the GCC and Jordan over the period from 2009 to 2017. The results show that insurance firms in the countries under study experienced productivity progress, primarily brought about by technological change. The study substantiates the existence of a scope to enhance productivity by exploring both pure and scale efficiencies, with the continuous integration of advanced technology. Journal: Afro-Asian J. of Finance and Accounting Pages: 478-501 Issue: 4 Volume: 13 Year: 2023 Keywords: insurance; productivity; Malmquist productivity index; efficiency change; technological change; TC; Takaful; GCC; Jordan. File-URL: http://www.inderscience.com/link.php?id=132960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:478-501 Template-Type: ReDIF-Article 1.0 Author-Name: Sana Tauseef Author-X-Name-First: Sana Author-X-Name-Last: Tauseef Author-Name: Hira Suman Author-X-Name-First: Hira Author-X-Name-Last: Suman Title: Sentiment and stock returns: aggregate and cross-sectional analysis from Pakistan Abstract: This study examines the impact of investor sentiment on aggregate stock market returns and on cross-section of stock returns for the emerging market of Pakistan. We constructed an investor sentiment index using principal component analysis based on seven proxies: advances-to-decline ratio, share turnover rate, money flow index, relative strength index, price-to-earnings ratio, dividend premium and interest rate. Results of vector auto-regression suggest that one-month lagged sentiment index is a strong predictor of itself and aggregate stock market return with a positive sign, showing persistence and providing evidence of herd behaviour. Our two-dimensional sorts of stock returns indicate disproportionate effect of sentiment on the stock returns as suggested in literature on developed markets; however, the time series regressions of arbitrage portfolios fail to confirm the significance of these cross-sectional patterns. Journal: Afro-Asian J. of Finance and Accounting Pages: 502-527 Issue: 4 Volume: 13 Year: 2023 Keywords: investor sentiment; stock returns; arbitrage portfolios; emerging market; Pakistan. File-URL: http://www.inderscience.com/link.php?id=132961 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:502-527 Template-Type: ReDIF-Article 1.0 Author-Name: Naima Lassoued Author-X-Name-First: Naima Author-X-Name-Last: Lassoued Title: Earnings management and ownership type in microfinance institutions: an international evidence Abstract: The purpose of this paper is to examine whether earnings management in MFIs is motivated by opportunistic behaviour and whether ownership structure could explain this practice. This study is conducted on a sample of 581 MFIs observed over the 2007 to 2015 period. It tests the effect of discretionary provision for loan impairment on future profitability by distinguishing different types of MFIs ownership. The results show that earnings management in MFIs tends to be opportunistic rather than efficient. The type of earnings management differs depending on ownership structure. Indeed, while cooperatives tend more to choose opportunistic earnings management, privately-owned MFIs manage their earnings efficiently. Furthermore, we found inconsistent evidence about earnings management in NGOs. Journal: Afro-Asian J. of Finance and Accounting Pages: 528-549 Issue: 4 Volume: 13 Year: 2023 Keywords: microfinance institutions; MFIs; provision for loan impairment; emerging economies; earnings management; ownership type. File-URL: http://www.inderscience.com/link.php?id=132962 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:4:p:528-549 Template-Type: ReDIF-Article 1.0 Author-Name: Usama Adnan Fendi Author-X-Name-First: Usama Adnan Author-X-Name-Last: Fendi Author-Name: Bassam Mohammad Maali Author-X-Name-First: Bassam Mohammad Author-X-Name-Last: Maali Author-Name: Muhannad Ahamd Atmeh Author-X-Name-First: Muhannad Ahamd Author-X-Name-Last: Atmeh Title: Rational speculative bubbles in the stock market - the case of Amman Stock Exchange Abstract: This paper aims at inspecting the existence of rational speculative bubbles in the Amman Stock Exchange market (ASE) along two sample periods, the first from 2004 to 2009, and the second from 2010 to 2018. The paper uses three different quantitative approaches to analyse the returns for ASE index over the selected sample periods. The first approach is the descriptive statistics, the second one is the explosiveness test approach, and the third one is the duration dependence test approach. The paper found evidence for the existence of a rational speculative bubble in ASE returns for the first sample period inspected and based on the three different approaches. This paper represents a contribution toward establishing an effective early warning system for predicting and mitigating financial crises. The paper represents a good contribution to improve the investment environment in Jordan. Journal: Afro-Asian J. of Finance and Accounting Pages: 68-84 Issue: 1 Volume: 13 Year: 2023 Keywords: rational speculative bubble; duration dependence test; Amman Stock Exchange; ASE; explosiveness test. File-URL: http://www.inderscience.com/link.php?id=128616 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:68-84 Template-Type: ReDIF-Article 1.0 Author-Name: Frank Ranganai Matenda Author-X-Name-First: Frank Ranganai Author-X-Name-Last: Matenda Author-Name: Mabutho Sibanda Author-X-Name-First: Mabutho Author-X-Name-Last: Sibanda Author-Name: Eriyoti Chikodza Author-X-Name-First: Eriyoti Author-X-Name-Last: Chikodza Author-Name: Victor Gumbo Author-X-Name-First: Victor Author-X-Name-Last: Gumbo Title: Default prediction for audited and unaudited private firms under economic and financial stress: evidence from Zimbabwe Abstract: This study develops stepwise logit models to predict default probability for audited and unaudited Zimbabwean non-financial privately-owned firms under downturn conditions. The research paper's main intention is to identify and interpret the predictors of default probability for audited and unaudited Zimbabwean private corporations. For pertinence and effectiveness reasons, the study applies two unique real-world datasets of defaulted and non-defaulted audited and unaudited private corporates. The findings of this study indicate that under downturn conditions, accounting information is imperative in differentiating defaulted and non-defaulted Zimbabwean private firms, and the predictive capacity of the private firm default models is augmented by including macroeconomic factors. Moreover, the study reveals that the drivers of default risk for audited and unaudited Zimbabwean private firms are dissimilar. As a recommendation, firm and loan characteristics, accounting information and macroeconomic variables must be incorporated when predicting default probability for private firms under downturn conditions. Journal: Afro-Asian J. of Finance and Accounting Pages: 85-124 Issue: 1 Volume: 13 Year: 2023 Keywords: default probability; audited and unaudited private firms; economic and financial stress; developing economy; predictor variables; stepwise logit models. File-URL: http://www.inderscience.com/link.php?id=128617 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:85-124 Template-Type: ReDIF-Article 1.0 Author-Name: Sana Tauseef Author-X-Name-First: Sana Author-X-Name-Last: Tauseef Title: Market reaction to the annual cash dividend changes in Pakistan Abstract: This study examines the investors' response to announcement of cash dividend changes made by firms listed on Pakistan Stock Exchange. It also investigates the factors contributing to the investors' behaviour surrounding the annual dividend announcements over the years 2011 to 2017. Results of event study analysis show that investors respond negatively to the announcement of dividend decrease; however, there is no evidence of positive investor response following dividend increase. The regression results show that the stocks abnormal returns earned on and after the announcement of dividends are positively impacted by dividend change and dividend yield. Our findings contribute to literature on market inefficiency through providing a partial support for signalling hypothesis and have significant implications for investors and firm managers. Journal: Afro-Asian J. of Finance and Accounting Pages: 305-319 Issue: 3 Volume: 13 Year: 2023 Keywords: dividend change; abnormal return; panel data; event study; Pakistan. File-URL: http://www.inderscience.com/link.php?id=132202 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:305-319 Template-Type: ReDIF-Article 1.0 Author-Name: Ghassan H. Mardini Author-X-Name-First: Ghassan H. Author-X-Name-Last: Mardini Author-Name: Amneh Alkurdi Author-X-Name-First: Amneh Author-X-Name-Last: Alkurdi Author-Name: Ahmed Hassan Ahmed Author-X-Name-First: Ahmed Hassan Author-X-Name-Last: Ahmed Title: A longitudinal investigation of IFRS-8 implementation: evidence from Qatar Abstract: The main objective of the current study is to investigate the segmental information reporting (SIR) of Qatari listed firms covering the period from 2009 to 2018. The sample comprises all companies listed on the Qatar Stock Exchange (QSE) at the end of 2009. A disclosure index was developed to determine the extent of SIR amongst the sample companies. The study used a longitudinal empirical analysis approach; a year-by-year analysis. The findings revealed a gradual upsurge and awareness of the requirements of IFRS-8 from year to year. Moreover, the reported results suggest that the post-implementation review of IFRS-8 has had a large and positive impact on SIR disclosures since 2014. This research should provide substantive insights for regulators and standard-setters in identifying best practices and spreading awareness of SIR, which in turn should allow SIR practices to become more standardised, making them easier to monitor and govern. Our study provides a longitudinal examination of segmental reporting practices in a developing country, such as Qatar, which permits direct examination of the progress made regarding the implementation and extent of SIR. Journal: Afro-Asian J. of Finance and Accounting Pages: 125-145 Issue: 1 Volume: 13 Year: 2023 Keywords: IFRS-8; segmental reporting; post-implementation review; IASB; emerging markets. File-URL: http://www.inderscience.com/link.php?id=128618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:125-145 Template-Type: ReDIF-Article 1.0 Author-Name: Bolaji Tunde Matemilola Author-X-Name-First: Bolaji Tunde Author-X-Name-Last: Matemilola Author-Name: A.N. Bany-Ariffin Author-X-Name-First: A.N. Author-X-Name-Last: Bany-Ariffin Author-Name: Gbemisola Adeoye Author-X-Name-First: Gbemisola Author-X-Name-Last: Adeoye Title: Impact of institutional quality on firms' debt maturity in developing nations Abstract: This article investigates the impacts of institutional quality on debt maturity using 3,885 listed firms from 22 developing nations. This study specifies the dynamic panel models and applies the two-step system generalised method of moments' estimation that reduces the reverse-causality problem. The findings reveal that the average institutional quality index has positive impacts on debt maturity in developing nations. Furthermore, regulatory quality, rule of law, and control of corruption have positive impacts on debt maturity, separately. Moreover, institutional quality has positive impacts on debt maturity of listed firms in developing nations where legal enforcement quality is high, but it has negative impacts on the debt maturity of firms in developing nations where legal enforcement quality is low. The overall findings suggest that strong institutional quality and legal enforcement reduce bankruptcy costs; these encourage lenders to provide firms debt capital with long-term maturity. Journal: Afro-Asian J. of Finance and Accounting Pages: 320-339 Issue: 3 Volume: 13 Year: 2023 Keywords: debt maturity; institutional quality; legal enforcement; system-GMM; developing nations. File-URL: http://www.inderscience.com/link.php?id=132203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:320-339 Template-Type: ReDIF-Article 1.0 Author-Name: Silky Vigg Kushwah Author-X-Name-First: Silky Vigg Author-X-Name-Last: Kushwah Author-Name: C.A. Manav Vigg Author-X-Name-First: C.A. Manav Author-X-Name-Last: Vigg Title: The effect of credit rating announcements on stock returns of banks in India Abstract: This study investigates the impact of credit rating changes on the stock returns of the commercial banks of India. The study reports that the bank returns are significantly negative during the pre-downgrade announcement period. Interestingly, the returns are negative again on the downgrade announcement day. Conversely, the bank returns turn insignificantly positive during the post downgrade announcement period. The study concludes that downgrades do not have a negative wealth impact on banks' stock returns after the announcement by credit rating agencies. Eventually, it results in early awareness of investors regarding the financial position of the banks, and it does not come as a shock to them. The study has a direct implication on short-term investors who rely highly on the announcements by rating agencies to make buy/sell decisions. Moreover, the study will also help the regulators and banks better understand the impact of such rating changes on stock returns. Journal: Afro-Asian J. of Finance and Accounting Pages: 41-53 Issue: 1 Volume: 13 Year: 2023 Keywords: event study; market efficiency; average abnormal return; AAR; cumulative abnormal return; CAR; banks; credit rating; India. File-URL: http://www.inderscience.com/link.php?id=128619 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:41-53 Template-Type: ReDIF-Article 1.0 Author-Name: Chaker Aloui Author-X-Name-First: Chaker Author-X-Name-Last: Aloui Author-Name: Sharif Arshian Author-X-Name-First: Sharif Author-X-Name-Last: Arshian Author-Name: Noshaba Aziz Author-X-Name-First: Noshaba Author-X-Name-Last: Aziz Title: How COVID-19 pandemic and oil prices drive the Saudi sectors over investment horizons: a wavelet sector-based view Abstract: The Saudi economy has been severely shaken by the combined shocks inherent to the sharp fall of prices of oil as well as the tremendous propagation of the newly infectious disease (COVID-19). In this study, the focus is given to the assessment of COVID-19 impact on the leading Saudi industrial sectors over the investors' investment horizons. We used three variants of the wavelet methods to achieve the study objective. The main advantage of the wavelet is to isolate the effect of oil price shocks and to account for the Saudi investors' perceptions of the uncertainty inherent in response to the COVID-19 propagation in Saudi Arabia. Moreover, we check the toughness of our results using the nonlinear autoregressive distributed lag (NARDL) model which is restricted to time scales. Our findings reveal a varying pattern of oil and COVID-19 over time scales and frequency bands across sectors. When isolating the oil impact, the COVID-19 effect is relatively low as compared to oil. These results are also supported by the NARDL outcomes. The results of our study propose operational implications for portfolio managers and policy makers and also pave the way for new research avenues. Journal: Afro-Asian J. of Finance and Accounting Pages: 340-368 Issue: 3 Volume: 13 Year: 2023 Keywords: Saudi market; industrial sectors; COVID-19; wavelets; NARDL model. File-URL: http://www.inderscience.com/link.php?id=132204 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:340-368 Template-Type: ReDIF-Article 1.0 Author-Name: Pierre Axel Louembé Author-X-Name-First: Pierre Axel Author-X-Name-Last: Louembé Author-Name: Man Wang Author-X-Name-First: Man Author-X-Name-Last: Wang Author-Name: Dilesha Nawadali Rathnayake Author-X-Name-First: Dilesha Nawadali Author-X-Name-Last: Rathnayake Title: Banking sector intermediation and economic growth: new evidence from CEMAC countries Abstract: An abundant body of literature explores the impact of finance on economic growth. However, only a few studies examine this link for developing economies. This paper investigates the banking intermediation-growth nexus with respect to the Central African Economic and Monetary Community (CEMAC). Making use of two panel estimation techniques, we exert the positive influence of banking sector intermediation on long-run growth over the studied period (1990-2016). Despite finding a negative association between financial development proxies and growth, our results suggest that the banking system in CEMAC still performs its main function of pooling and allocating financial resources. The latter is evidenced by the positive association between credit proxies (domestic credit to the private sector and bank credit to bank deposits) and growth/fixed capital formation. Journal: Afro-Asian J. of Finance and Accounting Pages: 22-40 Issue: 1 Volume: 13 Year: 2023 Keywords: financial intermediation; financial development; banking sector; CEMAC; economic growth; panel estimation. File-URL: http://www.inderscience.com/link.php?id=128620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:22-40 Template-Type: ReDIF-Article 1.0 Author-Name: Krayyem Al-Hajaya Author-X-Name-First: Krayyem Author-X-Name-Last: Al-Hajaya Title: Adherence level to materiality in stand-alone GRI sustainability reporting in Arab nations: does listing status matter? Abstract: This study is aiming at, firstly, showing the status quo of stand-alone sustainability reporting and the level of adherence to materiality according to the Global Reporting Initiative (GRI) classification in Arab nations between 2014 and 2018; and secondly, identifying the impact of firms' listing status on the level of adherence to materiality in stand-alone GRI sustainability reporting. The findings of the study support its initial proposition that listed firms in the Arab region have greater motives to perform better than unlisted companies in adhering to advanced levels of materiality in GRI sustainability reporting, and thereby enhance their international comparability, accountability and transparency on sustainability issues. As Arab nations, generally, are facing severe economic, environmental and social challenges, this study may shed light on sustainable development issues in this region and motivate policy-makers to encourage companies to voluntarily disclose their material contributions toward green economy and sustainable development activities. Journal: Afro-Asian J. of Finance and Accounting Pages: 369-398 Issue: 3 Volume: 13 Year: 2023 Keywords: CSR; Global Reporting Initiative; GRI; Arab nations; stand-alone sustainability reporting; GRI adherence level. File-URL: http://www.inderscience.com/link.php?id=132205 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:369-398 Template-Type: ReDIF-Article 1.0 Author-Name: Akshita Arora Author-X-Name-First: Akshita Author-X-Name-Last: Arora Author-Name: Tarun Kumar Soni Author-X-Name-First: Tarun Kumar Author-X-Name-Last: Soni Title: Women participation in corporate boards: quantile regression approach Abstract: Our study unfolds the stylised facts on women directorship in corporate boards for Indian listed companies. We analyse women directorships across different sectors, firm age groups, different categories of board sizes and year-wise and then investigate the impact of women directors on firm performance using panel fixed effects and pooled quantile regression approach. The panel data framework has been structured for a dataset of 442 companies for the time period 2013-2019. The women engagement in boardroom has advanced from meagre 5% in 2013 to 14% in 2019 after the introduction of gender-based quota in India. The empirical results substantiate that the impact of women directors on firm performance is weak. From the policy perspective, it is evident that amendments in the regulatory framework in board composition have led to more participation of women in leadership positions. However, it is suggested that further reforms are needed for encouraging women directors to act independently and foster more diversity in Indian boardrooms. Journal: Afro-Asian J. of Finance and Accounting Pages: 54-67 Issue: 1 Volume: 13 Year: 2023 Keywords: women directors; firm performance; independent directors; corporate boards; fixed effects method; quantile regression. File-URL: http://www.inderscience.com/link.php?id=128621 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:54-67 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Buertey Author-X-Name-First: Samuel Author-X-Name-Last: Buertey Title: Drivers of shareholder value: evidence from an emerging market Abstract: In the ever-competitive capital market, value creation is vital to a firm's ability to attract and maintain investment funds. To this end, it is important that the factors that drive shareholder value are identified and consistently emphasised. Drawing from the shareholder theory, this paper attempts to identify factors that strongly drive shareholder value of non-financial firms listed on the Ghana Stock Exchange during the period 2007 to 2017. Fixed-effect regression model is used in the study to estimate the relationship between various drivers identified in the extant literature and shareholder returns. The empirical result shows fixed capital investment, earnings per share, and return on equity are the main drivers of shareholder value among the sampled firms. They have a statistically significant and positive effect on shareholder value. Sales growth, operating margin, and free cash flow are not significantly associated with shareholder value. The study controls for interest expenses, firm size and age. This study is the first to examine the main drivers of shareholder returns on the GSE. In relevance, the study provides both managers and investors with useful signals about the factors that matter most in shareholder value creation, especially from the perspective of an emerging market. Journal: Afro-Asian J. of Finance and Accounting Pages: 399-414 Issue: 3 Volume: 13 Year: 2023 Keywords: shareholder value; value drivers; Ghana Stock Exchange; GSE; shareholder theory; market value added; MVA. File-URL: http://www.inderscience.com/link.php?id=132206 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:399-414 Template-Type: ReDIF-Article 1.0 Author-Name: Mahmoud Ahmed Author-X-Name-First: Mahmoud Author-X-Name-Last: Ahmed Title: Did the public company oversight board's restrictions on auditor-provided tax services reduce companies' tax avoidance? Abstract: In 2005, the Public Company Accounting Oversight Board (PCAOB) implemented restrictions on auditor-provided tax services (APTS), which resulted in a major decrease in the provision of these services in 2005 and 2006. The central research question in this study is whether these restrictions have affected tax avoidance after firms reduced their APTS. Using a difference-in-difference design, this paper investigates and finds that reducing APTS leads to a significant decrease in tax avoidance. These results are consistent with the notion that the PCAOB's restrictions, intended chiefly to enhance auditor independence, also led to this significant decrease in tax avoidance. Journal: Afro-Asian J. of Finance and Accounting Pages: 1-21 Issue: 1 Volume: 13 Year: 2023 Keywords: auditor-provided tax services; APTS; tax avoidance; Public Company Accounting Oversight Board; PCAOB. File-URL: http://www.inderscience.com/link.php?id=128622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Layla A. Ashoor Author-X-Name-First: Layla A. Author-X-Name-Last: Ashoor Author-Name: Linda Ismaiel Author-X-Name-First: Linda Author-X-Name-Last: Ismaiel Author-Name: Zeina Al-Ahmad Author-X-Name-First: Zeina Author-X-Name-Last: Al-Ahmad Title: Loan loss provision practices during economic crises: evidence from banks listed on the Damascus Securities Exchange Abstract: This study aims to examine loan loss provision (LLP) practices exercised by banks listed on the Damascus Securities Exchange during the Syrian crisis, the incentives behind such practices, and whether those practices differ between Islamic and conventional banks. A sample of eleven conventional and three Islamic banks was used during the period 2011-2018. Applying a random effect panel data model revealed that banks engaged in income smoothing activities to decrease their income when their earnings were high but not to increase their income when their earnings were low. In addition, banks that reported losses in the previous year engaged in fewer income decreasing activities than banks that reported a profit; however, no evidence was detected of their engagement in income increasing activities. As per the use of LLP to manage regulatory capital or to signal future value, the findings did not support such practices. Moreover, Islamic banks do not appear to exercise different LLP practices or to have different incentives to manipulate LLP compared to conventional banks. Journal: Afro-Asian J. of Finance and Accounting Pages: 277-304 Issue: 3 Volume: 13 Year: 2023 Keywords: discretionary loan loss provision; income smoothing; capital management; signalling; Islamic banks; conventional banks; crisis. File-URL: http://www.inderscience.com/link.php?id=132207 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:13:y:2023:i:3:p:277-304