Template-Type: ReDIF-Article 1.0 Author-Name: Liaqat Ali Author-X-Name-First: Liaqat Author-X-Name-Last: Ali Author-Name: Muhammad Kamran Naqi Khan Author-X-Name-First: Muhammad Kamran Naqi Author-X-Name-Last: Khan Author-Name: Habib Ahmad Author-X-Name-First: Habib Author-X-Name-Last: Ahmad Title: Stress testing of households using micro-data: evidence from a developing country Abstract: We assess the impact of income, consumption, and asset price shocks on the financial vulnerability of Pakistani households. We find 47.4% and 58.5% of households as financially vulnerable under basic living costs (BLC) and consumption-based criteria respectively. We note greater changes in the proportion of household financial vulnerability in the consumption-based approach as compared to BLC even for the same magnitude of the shock. We also note the severer impact of income rather than consumption shocks and add new dimensions to the financial vulnerability analysis by reporting results against various socio-economic characteristics of the households. Our stress testing results can be used for the development of targeted, community-specific social safety net programs and emergency cash support initiatives taken under a macroeconomic policy framework aiming at mitigating the effects of the COVID-19 external shocks. We recommend the use of household-level actual consumption expenditures in the analysis of household financial vulnerability instead of BLCs in developing countries like Pakistan. Journal: Afro-Asian J. of Finance and Accounting Pages: 77-97 Issue: 1 Volume: 15 Year: 2025 Keywords: credit risk indicators; household financial vulnerability; stress testing; Pakistan. File-URL: http://www.inderscience.com/link.php?id=143502 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:77-97 Template-Type: ReDIF-Article 1.0 Author-Name: Ebenezer Agyemang Badu Author-X-Name-First: Ebenezer Agyemang Author-X-Name-Last: Badu Title: When does board share ownership matter? Evidence from across firm life cycle in Sub-Saharan Africa Abstract: The purpose of this paper is to investigate the relationship between board share ownership and firm value, as well as to determine when in the firm's life cycle board share ownership is value relevant in Sub-Saharan Africa (SSA). The paper uses dividend pay-out and the ratio of retained earnings to total assets to distinguish between mature and immature firms and to estimate board share ownership and firm value for each set of firms, using system-generalised methods of moments. The findings suggest that board share ownership is value-relevant for non-financial firms in SSA. The paper further finds that board share ownership matters for immature firms, not mature firms. The findings imply that differences in requirements for financing and investment result in differences in board share ownership and firm value between mature and immature firms. The findings suggest that board share ownership is not valued at all stages of a firm's life cycle. Journal: Afro-Asian J. of Finance and Accounting Pages: 98-116 Issue: 1 Volume: 15 Year: 2025 Keywords: board ownership; value relevance; mature firms; immature firms; firm's life cycle; Sub-Saharan Africa; SSA; share value; generalised method of moment; non-financial firms. File-URL: http://www.inderscience.com/link.php?id=143503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:98-116 Template-Type: ReDIF-Article 1.0 Author-Name: Laila Gamal Author-X-Name-First: Laila Author-X-Name-Last: Gamal Author-Name: Hayam Wahba Author-X-Name-First: Hayam Author-X-Name-Last: Wahba Title: The impact of behavioural biases on the behaviours of informed and uninformed individual stock investors: case of the Egyptian Stock Exchange Abstract: Behavioural finance theories study human psychological and emotional biases. Behavioural finance explains the effect of psychological and emotional biases on the financial behaviour of both investors and financial markets. These biases often lead people to make irrational investment decisions. Understanding these biases can help investors to spend their money more rationally and make better-informed decisions. This paper examines the influence of a full array of behavioural biases on Egyptian stock investors' behaviour in the Egyptian stock market. Our research sample is composed of 407 stock investors in Egypt. The research sample was divided into two classes (informed and uninformed stock investors) based on their financial knowledge and skills. Based on the analysis done to the responses collected from an online questionnaire, the findings show that both classes of investors are affected by emotional, cognitive, and behavioural biases. These biases adversely affect their behaviour, leading to irrational stock investment decisions. However, the level of impact varies significantly by the level of financial knowledge. Journal: Afro-Asian J. of Finance and Accounting Pages: 117-141 Issue: 1 Volume: 15 Year: 2025 Keywords: behavioural finance; heuristics; prospect theory; regret aversion bias; loss aversion bias; mental accounting bias; biased; investor decision; behaviour; Egyptian Stock Exchange; ESE; Egypt. File-URL: http://www.inderscience.com/link.php?id=143504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:117-141 Template-Type: ReDIF-Article 1.0 Author-Name: Fahmi Ghallabi Author-X-Name-First: Fahmi Author-X-Name-Last: Ghallabi Author-Name: Ahmed Ghorbel Author-X-Name-First: Ahmed Author-X-Name-Last: Ghorbel Title: Commodity sectors and emerging stock markets: is there any risk transmission? Abstract: The present work aimed to examine the risk spillover between three commodity sectors, namely energy, precious metals, and agriculture, and emerging stock markets. Asymmetric dynamic conditional correlation (ADCC) and conditional value at risk (CoVaR) were used to measure downside and upside risk spillovers between the studied markets. Our empirical results reveal that the downside and upside risk spillovers are significant. We also found an asymmetric two-way risk spillover in most cases, but the degree of asymmetry differs according to the application of the entire cumulative distributions or distribution tails. Downside and upside risk spillover magnitudes between precious metals and emerging stock markets are not significantly larger following the global financial crisis (GFC) compared to the pre-crisis period, except for the downside risk spillover below the 25th quantile. However, for the other pairs, downside and upside risk spillovers are significantly higher after GFC than before it. Our empirical findings have important implications for risk management among investors and policymakers, as they emphasise the prevalence of tail behaviour and the persistent asymmetric nature of both downside and upside risk spillovers. Journal: Afro-Asian J. of Finance and Accounting Pages: 59-76 Issue: 1 Volume: 15 Year: 2025 Keywords: commodity sectors; emerging stock markets; risk spillover; ADCC-CoVaR approach. File-URL: http://www.inderscience.com/link.php?id=143507 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:59-76 Template-Type: ReDIF-Article 1.0 Author-Name: Pali Gaur Author-X-Name-First: Pali Author-X-Name-Last: Gaur Author-Name: Shikha Singh Author-X-Name-First: Shikha Author-X-Name-Last: Singh Title: Can issuers contribute to infrastructure development through municipal bonds in India? Evaluation of factors using AHP approach Abstract: This study aims to fill a gap in the literature by identifying, the most significant factors attributing to the slow growth of municipal bonds in India. Nine factors were identified, and then divided into three categories: proper governance, issuer's strength, government support. We used the analytical hierarchy process, a quantitative method of decision-making, to evaluate the importance of the factors presented in the study using data collected from 13 experts. The results showed that government support, as a category, is the most important. The analysis also indicated that audited reports, incentives to issuers, revenue stability and updated accounting and financial management practices are the most important factors among all nine sub-factors. We confer the propositions of the analysis for policy makers and other regulatory bodies through this paper. Journal: Afro-Asian J. of Finance and Accounting Pages: 41-58 Issue: 1 Volume: 15 Year: 2025 Keywords: municipal bonds; issuers; municipal corporations; governance; AHP; infrastructure development; urban local body; ULB; bond market. File-URL: http://www.inderscience.com/link.php?id=143508 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:41-58 Template-Type: ReDIF-Article 1.0 Author-Name: Saroj S. Prasad Author-X-Name-First: Saroj S. Author-X-Name-Last: Prasad Author-Name: Ashutosh Verma Author-X-Name-First: Ashutosh Author-X-Name-Last: Verma Author-Name: Shantanu Prasad Author-X-Name-First: Shantanu Author-X-Name-Last: Prasad Title: Analysing asset pricing models in the Indian stock market: a comprehensive empirical study Abstract: This study aims to analyse the asset-pricing model in India by using a comprehensive database of companies listed in the BSE 500 Index. The study covers a 20-year period from July 2000 to June 2020 and focuses on the evaluating the Fama-French three-factor and Fama-French five-factor models. To examine these asset-pricing models, ordinary least-squares multivariate regression analysis is performed for both single-sorted and double-sorted portfolios. The market proxy is selected by assessing its robustness among three potential proxies. The results suggest that return patterns are influenced by firm characteristics, specifically size, as well as fundamentals such as profitability and investments. These factors play a significant role in shaping portfolio returns. The empirical results suggest that both the Fama-French three-factor model and the Fama-French five-factor model are statistically suitable for capturing portfolio returns. However, the Fama-French five-factor model shows better performance compared to the three-factor model. Notably, the factors of size, profitability, and investment have an impact on most portfolios. These results support the adoption of Fama-French multifactor models to determine the cost of capital in the Indian stock market and emphasise the factors that fund managers, asset managers and investors should consider when constructing portfolios. Journal: Afro-Asian J. of Finance and Accounting Pages: 1-18 Issue: 1 Volume: 15 Year: 2025 Keywords: five-factor model; three-factor model; efficient market hypothesis; market anomalies; investments; portfolio. File-URL: http://www.inderscience.com/link.php?id=143509 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 Author-Name: Rosy Chauhan Author-X-Name-First: Rosy Author-X-Name-Last: Chauhan Author-Name: Anil K. Sharma Author-X-Name-First: Anil K. Author-X-Name-Last: Sharma Title: The effect of liquidity creation on bank profitability and credit risk: evidence from BRICS countries Abstract: In this study, we empirically investigate whether liquidity creation after the implementation of liquidity regulations can help boost profitability and reduce credit risk for emerging economies. This study analyses a sample of 499 commercial banks from the BRICS countries between 2013 and 2021 and applies the two-step system generalised method of moments (GMM). Further, results are confirmed through robustness tests. The study's findings indicate a positive impact of liquidity creation on bank profitability, but this doesn't hold true for small banks. Also, findings indicate that more liquidity creation leads to an increase in credit risk. Thus, the results suggest that regulators should devise measures to restrict excessive liquidity creation and call for combined regulation of liquidity and credit risk. Journal: Afro-Asian J. of Finance and Accounting Pages: 19-40 Issue: 1 Volume: 15 Year: 2025 Keywords: liquidity creation; profitability; credit risk; BRICS; Basel III. File-URL: http://www.inderscience.com/link.php?id=143527 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:1:p:19-40 Template-Type: ReDIF-Article 1.0 Author-Name: Rana Hosni Author-X-Name-First: Rana Author-X-Name-Last: Hosni Title: On the nexus between exchange rate volatility and trade flows: panel data evidence from African economies Abstract: The current paper explores the relationship between real exchange rate volatility and international trade flows in a sample of 13 African countries over the period from 1993 to 2020. To achieve this purpose, a separate trade equation for both exports and imports flows is examined using dynamic heterogeneous and panel cointegration techniques. Specifically, using the pooled-mean group estimator, the paper finds empirical evidence of a negative and statistically significant impact on exports flows in the long-run. Furthermore, exchange rate volatility is found to have no statistically significant impact on imports flows. Based on these findings, the paper suggests that if African economies want to reap the benefits from further integration into the global market, a careful design of macroeconomic imbalances, pertaining in particular to the trade policies and exchange rate management, should be motivated. Journal: Afro-Asian J. of Finance and Accounting Pages: 175-202 Issue: 2 Volume: 15 Year: 2025 Keywords: exchange rate volatility; trade flows; panel data cointegration models; African countries; GARCH models. File-URL: http://www.inderscience.com/link.php?id=144752 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:175-202 Template-Type: ReDIF-Article 1.0 Author-Name: Shilpa Jain Author-X-Name-First: Shilpa Author-X-Name-Last: Jain Author-Name: Vijay Kumar Gupta Author-X-Name-First: Vijay Kumar Author-X-Name-Last: Gupta Title: Impact of liquidity and leverage on the profitability of Indian manufacturing firms Abstract: The purpose of this study is to provide fresh evidence on the impact of liquidity and leverage on profitability, as well as the impact of liquidity on leverage, in Indian manufacturing enterprises. The research also investigates the role of leverage in mediating the relationship between liquidity and profitability. The researchers studied 124 Indian manufacturing businesses included on the S&P BSE Industrial Index from 2011 to 2019. The technique of analysis is structural equation modelling. The empirical findings indicate that the direct influence of liquidity on profitability is positive, implying that enterprises must practise careful working capital management in order to achieve a healthy liquidity profitability trade-off. The indirect impact of liquidity on profitability is also positive, meaning that liquidity allows enterprises to take advantage of favourable financing offers. The second result demonstrates that liquidity has a negative influence on leverage, leading to the conclusion that efficient management of current assets lowers the cost of debt for highly liquid enterprises. The final conclusion suggests that leverage has a detrimental influence on profitability, lending credence to the pecking order idea. The study makes advantage of current data and contributes to the existing literature by presenting management implications. Journal: Afro-Asian J. of Finance and Accounting Pages: 203-220 Issue: 2 Volume: 15 Year: 2025 Keywords: leverage; liquidity; manufacturing firms; profitability; structural equation modelling; SEM. File-URL: http://www.inderscience.com/link.php?id=144753 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:203-220 Template-Type: ReDIF-Article 1.0 Author-Name: Rajeev Matha Author-X-Name-First: Rajeev Author-X-Name-Last: Matha Author-Name: Raghavendra Acharya Author-X-Name-First: Raghavendra Author-X-Name-Last: Acharya Author-Name: E. Geetha Author-X-Name-First: E. Author-X-Name-Last: Geetha Author-Name: S.P. Shivaprasad Author-X-Name-First: S.P. Author-X-Name-Last: Shivaprasad Title: A comparative analysis of determinants of foreign institutional flows to Indian equity and debt markets Abstract: The volatile foreign institutional investment (FII) flow has an implicit effect on the stability of forex rates, stock prices, fiscal and monetary policies. Understanding the drivers of the FII flow to the equity and debt market is essential to manage future capital flows and prevent imbalances. The study examines determinants of FII flows to Indian equity and debt markets for the period 2011 to 2021 using autoregressive distributed lag model (ARDL) approach. The results indicated that the estimated coefficient of domestic stock returns positively impacted FII debt outflow. Stock returns of other emerging markets negatively impacted FII debt outflow and positively influenced FII equity inflow. US stock returns negatively impacted FII debt outflow and equity inflow in the long run. The study findings have useful implications not only for investors but also for regulators and policymakers to regulate capital flows and prevent imbalances through credible investment policies. Journal: Afro-Asian J. of Finance and Accounting Pages: 221-242 Issue: 2 Volume: 15 Year: 2025 Keywords: FII flow; equity returns; forex rates; ARDL approach; cointegration; bond yields. File-URL: http://www.inderscience.com/link.php?id=144765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:221-242 Template-Type: ReDIF-Article 1.0 Author-Name: Dereje F. Asrat Author-X-Name-First: Dereje F. Author-X-Name-Last: Asrat Author-Name: Lukas B. Timbate Author-X-Name-First: Lukas B. Author-X-Name-Last: Timbate Title: Market timing and capital structure: a comparative study between the USA and China Abstract: The present study is a replication and expansion of the well-known paper by Baker and Wurgler (2002), which examined the effect of equity market timing on firm capital structure in the US stock market between 1968 and 1999. This paper begins by replicating Baker and Wurgler, extending the sample period to the last 30 years (1990-2019), and comparing the results with data from China for the same time-period. This study concludes that Baker and Wurgler's findings are still valid for the most recent sample period in the USA and that the results for the Chinese markets are comparable, despite the numerous differences between the two markets. Specifically, firms' historical equity market timing activities have substantial and lasting effects on the capital structure of the US and Chinese markets. Consistent results across the world's two largest economies, despite their institutional differences, will strengthen our faith in Baker and Wurgler's market timing theory of capital structure. Journal: Afro-Asian J. of Finance and Accounting Pages: 243-264 Issue: 2 Volume: 15 Year: 2025 Keywords: market timing; capital structure; USA; China. File-URL: http://www.inderscience.com/link.php?id=144766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:243-264 Template-Type: ReDIF-Article 1.0 Author-Name: Srinivas Nippani Author-X-Name-First: Srinivas Author-X-Name-Last: Nippani Author-Name: Júlio Lobão Author-X-Name-First: Júlio Author-X-Name-Last: Lobão Title: Santa Claus rally and American depository receipts: a note Abstract: Recent empirical evidence supports the presence of the Santa Claus rally, an intriguing market anomaly that produces above-average returns during the last five trading days of December and the first two trading days of January. This anomaly, one of the latest that goes against market efficiency, has been found to exist in several countries, including countries where Christmas holds less significance in the calendar year. This paper examines for the first time the existence of the anomaly in the American depository receipts (ADRs) market. By analysing data from four distinct periods spanning nearly 25 years, we demonstrate that the anomaly solely manifests in the long form, encompassing the first two trading days in January. Our findings are robust and carry significant implications for both practitioners and academics. Journal: Afro-Asian J. of Finance and Accounting Pages: 265-276 Issue: 2 Volume: 15 Year: 2025 Keywords: market efficiency; anomalies; Santa Claus rally; American depository receipts; ADRs. File-URL: http://www.inderscience.com/link.php?id=144777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:265-276 Template-Type: ReDIF-Article 1.0 Author-Name: Reem Shaker Author-X-Name-First: Reem Author-X-Name-Last: Shaker Author-Name: Ahmed Zamel Author-X-Name-First: Ahmed Author-X-Name-Last: Zamel Author-Name: Hosam Moubarak Author-X-Name-First: Hosam Author-X-Name-Last: Moubarak Author-Name: Noriaki Okamoto Author-X-Name-First: Noriaki Author-X-Name-Last: Okamoto Author-Name: Hebatallah Badawy Author-X-Name-First: Hebatallah Author-X-Name-Last: Badawy Title: The moderating effect of joint audit on the relationship between the readability of financial statements footnotes and audit effort: evidence from Egypt Abstract: This research examines the effect of the readability of financial statements footnotes on audit efforts. Furthermore, it examines the moderation role of voluntary joint auditing in this relationship. The results show that generally, auditors respond to complex footnotes by increasing audit efforts through longer audit report lag and higher audit fees. In addition, the findings reveal a significant negative moderation role of joint auditing on the relationship between the readability of footnotes and audit fees, whereas there are no incremental effects of joint auditing on the relationship between readability and audit report lag. This research contributes to the auditing literature by providing evidence on the informativeness of the qualitative characteristics of financial reports to audit engagements. It also represents interdisciplinary business research, using qualitative and quantitative research methods besides connecting linguistics to auditing research. Journal: Afro-Asian J. of Finance and Accounting Pages: 143-174 Issue: 2 Volume: 15 Year: 2025 Keywords: readability; audit report lag; ARL; audit fees; joint audit; Egypt. File-URL: http://www.inderscience.com/link.php?id=144815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:2:p:143-174 Template-Type: ReDIF-Article 1.0 Author-Name: Imen Khanchel Author-X-Name-First: Imen Author-X-Name-Last: Khanchel Author-Name: Dorsaf Bentaleb Author-X-Name-First: Dorsaf Author-X-Name-Last: Bentaleb Author-Name: Cyrine Khiari Author-X-Name-First: Cyrine Author-X-Name-Last: Khiari Title: Loan repayment and female borrowers in African microfinance institutions Abstract: The purpose of this study is to investigate whether female borrowers exhibit higher loan repayment in African microfinance institutions (MFIs). The empirical study uses unbalanced panel data of 120 MFIs from 2006 to 2019. The results reveal that female borrowers have a positive impact on repayment performance. The presence of women reduces the portfolio at risk and the probability of default payment. We conclude that targeting female clients, who are generally risk-averse, improves the repayment performance of MFIs. We conclude that microfinance can lead to the feminisation of debt, as women are reliable in repayment. Journal: Afro-Asian J. of Finance and Accounting Pages: 302-324 Issue: 3 Volume: 15 Year: 2025 Keywords: microfinance institutions; MFIs; repayment performance; women borrowers; Africa. File-URL: http://www.inderscience.com/link.php?id=145967 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:302-324 Template-Type: ReDIF-Article 1.0 Author-Name: Satyaban Sahoo Author-X-Name-First: Satyaban Author-X-Name-Last: Sahoo Author-Name: Sanjay Kumar Author-X-Name-First: Sanjay Author-X-Name-Last: Kumar Title: Existence of lead-lag relationship among sectoral indices: evidence from the Indian capital market Abstract: The study examines the lead-lag relationship among six sectoral indices of the Indian capital market. The Granger causality test reveals that unidirectional causality originates from oil and gas sector index to the auto, IT, financial service, and bank sector indices; similarly, the FMCG sector index causes variation in the auto, financial services and banking sector indices. The IRF and VDC analysis also confirm these findings of the Granger causality test. Among all six sectoral indices, oil and gas index is leading, and the financial services index is lagging in the Indian capital market. Investors should study the behaviour of the oil and gas index to maximise return and decrease risk, as it is dominating the other indices. The evident lead-lag relationship among the sectoral indices would assist the investors in portfolio diversification considering different sectors. Journal: Afro-Asian J. of Finance and Accounting Pages: 325-344 Issue: 3 Volume: 15 Year: 2025 Keywords: Granger causality test; impulse response function; IRF; lead-lag relationship; sectoral index; variance decomposition; VDC. File-URL: http://www.inderscience.com/link.php?id=145968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:325-344 Template-Type: ReDIF-Article 1.0 Author-Name: Elmarie Louw Author-X-Name-First: Elmarie Author-X-Name-Last: Louw Author-Name: John H. Hall Author-X-Name-First: John H. Author-X-Name-Last: Hall Author-Name: Leon M. Brümmer Author-X-Name-First: Leon M. Author-X-Name-Last: Brümmer Title: The value relevance of goodwill: evidence from South Africa Abstract: The value relevance of goodwill is a topic of ongoing debate in the financial literature, because of numerous changes in the accounting treatment of this asset class over the years. The aim of this paper is to determine the value relevance of goodwill after the introduction of <i>IFRS 3</i> in a specific setting, namely South Africa, using firms listed on the Johannesburg Stock Exchange as a sample for the period from 2006 to 2017. The modified Ohlson (1995) model, a well-known accounting-based valuation model, was applied to 1272 firm years to determine the value relevance of goodwill. The study contributes to the existing literature by presenting evidence that goodwill is indeed value relevant in the South African setting after the introduction of <i>IFRS 3</i>, and it confirms that the goodwill impairment model is associated with firm value. Journal: Afro-Asian J. of Finance and Accounting Pages: 345-363 Issue: 3 Volume: 15 Year: 2025 Keywords: goodwill; goodwill impairment; IFRS 3; South African firms; value relevance; South Africa. File-URL: http://www.inderscience.com/link.php?id=145969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:345-363 Template-Type: ReDIF-Article 1.0 Author-Name: Xuan Ngo Author-X-Name-First: Xuan Author-X-Name-Last: Ngo Author-Name: Huong Le Author-X-Name-First: Huong Author-X-Name-Last: Le Author-Name: Linh Bui Author-X-Name-First: Linh Author-X-Name-Last: Bui Title: Determinants of interest rate spreads in the banking industry: an empirical study in an emerging country Abstract: This study explores the factors affecting the interest rate spread (IRS) using a secondary data set collected from 27 Vietnamese commercial banks' audited financial statements. The findings indicate that the return on average assets (ROAA), operating expenses on total assets (OPERAT), and market concentration (HHI) variables all contribute significantly to the development of the IRS as assessed by IRS1 and IRS2. Specifically, ROAA and OPERAT positively correlate with both IRS1 and IRS2 at the 5% and 1% significance levels, respectively. However, an increased HHI is associated with a decreased IRS1 but an increased IRS2. Additionally, the capital on total assets (CAP) and bank size (SIZE) variables are essential only for IRS1. By contrast, the non-interest income ratio (NII) and the liquidity ratio (LIQ) have a considerably negative effect on IRS2. Regarding macroeconomic variables, GDP growth rate and inflation have a statistically significant positive effect on IRS1 but no significant effect on IRS2. Journal: Afro-Asian J. of Finance and Accounting Pages: 383-405 Issue: 3 Volume: 15 Year: 2025 Keywords: commercial bank; banking system; interest rate spread; IRS; emerging country. File-URL: http://www.inderscience.com/link.php?id=145971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:383-405 Template-Type: ReDIF-Article 1.0 Author-Name: Alireza Rahrovi Dastjerdi Author-X-Name-First: Alireza Rahrovi Author-X-Name-Last: Dastjerdi Author-Name: Eman Momeni Author-X-Name-First: Eman Author-X-Name-Last: Momeni Title: The impact of an emerging market's microstructure legislations on market efficiency: evidence from Iran Abstract: The role and significance of legislation in emerging capital markets have changed over time, considering the characteristics of such markets. The changing circumstances in these markets have prompted legislators to change or update several microstructures in the form of trading regulations. This study aims to investigate how these changes can affect the market efficiency. In this study, data from selected companies listed on the Tehran Stock Exchange (TSE) were generated for a period influenced by four different legislative microstructures: tick size, lot size, the minimum value per order, and base volume. The main market variables and market efficiency were compared between the two six-month regimes, before and after enactment. The data were statistically analysed using correlation analysis, parametric and non-parametric tests, trend analysis, and regression analysis. Results showed the positive effects of changes in microstructures on the efficiency of pricing process. Journal: Afro-Asian J. of Finance and Accounting Pages: 277-301 Issue: 3 Volume: 15 Year: 2025 Keywords: legislation; trading rules; market microstructure; market efficiency; emerging markets; Iran. File-URL: http://www.inderscience.com/link.php?id=145973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:277-301 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad O.J. Rashdan Author-X-Name-First: Mohammad O.J. Author-X-Name-Last: Rashdan Author-Name: Abed Allah Abu Wahdan Author-X-Name-First: Abed Allah Abu Author-X-Name-Last: Wahdan Author-Name: Foday Joof Author-X-Name-First: Foday Author-X-Name-Last: Joof Title: The symmetric and asymmetric effect of foreign currency reserves, and money supply on inflation in The Gambia, a linear and nonlinear ARDL perspective Abstract: This paper investigated the symmetric and asymmetric impact of international reserves (FCR) and money supply (M2) on inflation in The Gambia. The paper employed the Nonlinear-ARDL (NARDL) for the asymmetric and the ARDL for the symmetric effect, using monthly data (2005M1-2019M12). The NARDL revealed that a positive shock in foreign reserves is detrimental to inflation, while a negative shock promotes price stability. Similarly, an increase in money supply triggers price instability, while a decline in M2 was found to have a neutral effect. The ARDL results showed that FCR positively affects inflation in the long term but negatively in the short run. However, M2 has a positive relationship with inflation both in the short and long run. The findings indicate that policymakers in The Gambia are faced with a trade-off of either accumulating reserves to protect the economy against external shocks or maintaining price stability. Journal: Afro-Asian J. of Finance and Accounting Pages: 364-382 Issue: 3 Volume: 15 Year: 2025 Keywords: foreign currency reserve; money supply; inflation; the Gambia; linear; nonlinear ARDL. File-URL: http://www.inderscience.com/link.php?id=145974 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:3:p:364-382 Template-Type: ReDIF-Article 1.0 Author-Name: Lamia Kalai Author-X-Name-First: Lamia Author-X-Name-Last: Kalai Title: Do volatility spillover effects vary across stock market crashes? An empirical analysis Abstract: The aim of this paper is to compare the volatility of nine developed and emerging stock markets, with the US market during the 2005-2021 period. We use the ICSS algorithm to detect a change point of a stationary structure in a time series and we consider a dynamic conditional correlation specification to model the time-varying feature of volatility. Our findings make two interesting contributions to the relevant literature: first, we show significant bidirectional volatility spillover between the USA and equity markets during crises; second, the study of dynamic relationships between stock markets shows contagion effects only in periods of high volatility: the impact of shocks from the US market is more substantial during the post-crisis period. Finally, the empirical analysis shows evidence of transmission effects of volatility shocks. Market adjustment processes require regulatory and supervisory government measures that can prevent a systemic crisis. Journal: Afro-Asian J. of Finance and Accounting Pages: 459-490 Issue: 4 Volume: 15 Year: 2025 Keywords: market crashes; ICSS algorithm; breakpoints analysis; multivariate GARCH; conditional correlation; volatility spillover. File-URL: http://www.inderscience.com/link.php?id=147589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:459-490 Template-Type: ReDIF-Article 1.0 Author-Name: Quynh Trang Phan Author-X-Name-First: Quynh Trang Author-X-Name-Last: Phan Title: Investment and leverage: the moderating effect of financial constraints Abstract: This study investigates how financial constraints affect the linkage between investment and leverage. Using the panel dataset of Vietnamese listed firms from 2007 to 2021, we found that the increase in firm investment is associated with the increase in debt use. It implies that an abundant supply of external debt will encourage firms to boost their investments. In addition, financial constraints weaken the relationship between financial leverage and firm investment. In other words, financial constraints hinder firms from increasing investment by reducing their debt levels and being more careful in selecting investment projects. The different techniques and proxies of financial constraints are employed to challenge these results. Journal: Afro-Asian J. of Finance and Accounting Pages: 407-424 Issue: 4 Volume: 15 Year: 2025 Keywords: corporate investment; financial leverage; financial constraints; KZ index. File-URL: http://www.inderscience.com/link.php?id=147595 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:407-424 Template-Type: ReDIF-Article 1.0 Author-Name: Nizar Baklouti Author-X-Name-First: Nizar Author-X-Name-Last: Baklouti Title: An analysis of the effect of asset securitisation on the credit risk of Chinese commercial banks Abstract: As a tool of financial innovation, securitisation of credit assets affects the credit risk level of banks. In the context of the increasing scale of securitisation activities, this paper selects annual data from 27 listed Chinese commercial banks from 2012 to 2022 by applying the system generalised method of moments (SYS-GMM) by dynamic panel to analyse the impact of credit asset securitisation activities on the credit risk of Chinese commercial banks. The study shows that the leverage ratio of commercial banks is positively correlated with credit risk. Asset securitisation can reduce risk-weighted assets by moving high-risk assets off the balance sheet to improve the capital adequacy ratio, inhibit liquidity creation, and reduce unsecured interbank borrowing based on capital. Journal: Afro-Asian J. of Finance and Accounting Pages: 425-438 Issue: 4 Volume: 15 Year: 2025 Keywords: asset securitisation; banks; credit risk; dynamic panel; capital adequacy. File-URL: http://www.inderscience.com/link.php?id=147596 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:425-438 Template-Type: ReDIF-Article 1.0 Author-Name: Rekha Handa Author-X-Name-First: Rekha Author-X-Name-Last: Handa Author-Name: Priyanka Mahajan Author-X-Name-First: Priyanka Author-X-Name-Last: Mahajan Title: Do CEO characteristics influence Indian banks' performance and vice versa? Abstract: The purpose of this study is to analyse the impact of chief executive officer (CEO) traits on bank performance. The analysis is based on second-hand data collected from 36 banks during a 15-year period, from 2005 to 2019. On the final sample, which consists of 540 observations, panel regressions model technique is run to examine the association between CEO (demographic and professional) traits on market valuation and financial performance of banks. The results, in particular, demonstrate that CEO-chairperson duality and the CEO's remuneration have a beneficial impact on bank performance. Moreover, the study discovers that CEO age has a negative relationship with Tobin's Q of the firm. CEO ownership and CEO tenure seem to be positively correlated with firm performance. It's interesting to note that a CEO or chairperson having regular attendance at board meeting enhanced firm performance measured by Tobin's Q whereas CEO turnover has shown negative relationship with ROA and ROE of firm. In light of the impending regulatory changes, this study offers insights to the lawmakers and regulators who are involved with selecting the CEOs of the banks. Journal: Afro-Asian J. of Finance and Accounting Pages: 491-529 Issue: 4 Volume: 15 Year: 2025 Keywords: bank performance; public sector bank; private sector bank; CEO characteristics; CEO duality; CEO traits ; CEO tenure; Tobin's Q. File-URL: http://www.inderscience.com/link.php?id=147598 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:491-529 Template-Type: ReDIF-Article 1.0 Author-Name: Le Quy Duong Author-X-Name-First: Le Quy Author-X-Name-Last: Duong Title: Momentum explains the growth effect: the case of the Vietnamese stock market Abstract: While there is empirical evidence of the value effect in various developed stock markets, the growth effect has been documented in Vietnam. The CAPM and Fama-French models cannot capture Vietnamese growth and value stock returns. Three of the four mimic factors do not contain incremental information on expected returns. However, a three-factor model with a momentum factor provides an appropriate explanation of the growth effect. Both robustness tests demonstrate the explanatory power of the three-factor model. Furthermore, delayed overreaction is likely to be a key source of momentum in Vietnam. Taken together, the superior return on the growth portfolio arises from the momentum effect, whereby investors tend to overreact to information about past returns. This is consistent with behavioural explanations. Journal: Afro-Asian J. of Finance and Accounting Pages: 439-458 Issue: 4 Volume: 15 Year: 2025 Keywords: value and growth stocks; momentum; overreaction; asset-pricing models. File-URL: http://www.inderscience.com/link.php?id=147599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:439-458 Template-Type: ReDIF-Article 1.0 Author-Name: Leela Joshi Author-X-Name-First: Leela Author-X-Name-Last: Joshi Author-Name: Soma Dey Author-X-Name-First: Soma Author-X-Name-Last: Dey Title: Impact of financial reporting quality on labour investment efficiency for Indian firms Abstract: This paper discusses the potential role of financial reporting quality (FRQ) in affecting investments in labour, an important factor of production that has been largely overlooked in the literature, especially for Indian firms. Using a dataset consisting of 366 non-financial Indian companies listed on the BSE500 Index, we find that higher FRQ is associated with higher labour investment efficiency (LIE). Further, we find that FRQ is strongly associated with overinvestment by firms, which suggests that FRQ mitigates moral hazard problems arising from information asymmetries. On the other hand, FRQ is found to have no significant effect on underinvestment for firms facing financing constraints. We also find that high-quality financial reporting mitigates abnormal net hiring by smaller firms while the effect is insignificant for larger firms. The results indicate that FRQ can play a significant role in mitigating investment inefficiencies arising out of informational asymmetry for emerging markets like India. Journal: Afro-Asian J. of Finance and Accounting Pages: 530-555 Issue: 4 Volume: 15 Year: 2025 Keywords: financial reporting quality; FRQ; labour investment efficiency; LIE; information asymmetry; overinvestment; underinvestment. File-URL: http://www.inderscience.com/link.php?id=147600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:4:p:530-555 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 Title: Default risk modelling for small-to-medium enterprises in the context of stressed conditions in an undeveloped economy Abstract: This paper designs stepwise logit models to predict the default probability for small-to-medium enterprises (SMEs) under downturn conditions in an undeveloped economy. The primary focus of this study is to recognise and interpret the determinants of default probability for SMEs. We apply an empirical data set of Zimbabwean defaulted and non-defaulted SMEs for applicability and effectiveness motives. Our experimental results indicate that the ratio of (current assets - current liabilities)/total assets, the earnings before interest and tax/total assets ratio, the book value of total assets, the real GDP growth rate, the inflation rate, the ratio of net sales/net sales last year, the age of the firm and the ratio of bank debt/total assets are all robust determinants of default probability for Zimbabwean SMEs. The implication here is that firm and loan features, accounting ratios and macroeconomic factors should be incorporated when forecasting default probability for SMEs in the context of stressed conditions. Journal: Afro-Asian J. of Finance and Accounting Pages: 590-621 Issue: 5 Volume: 15 Year: 2025 Keywords: default risk; downturn conditions; small-to-medium enterprises; SMEs; developing country; covariates; stepwise logit models. File-URL: http://www.inderscience.com/link.php?id=148664 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:590-621 Template-Type: ReDIF-Article 1.0 Author-Name: Ouael El Jebari Author-X-Name-First: Ouael El Author-X-Name-Last: Jebari Author-Name: Abdelati Hakmaoui Author-X-Name-First: Abdelati Author-X-Name-Last: Hakmaoui Title: Challenging the efficient markets hypothesis: an investigation of the overconfidence bias between developed and developing African markets Abstract: This article tests the presence of the overconfidence bias in the financial markets of the USA, Germany, France, Turkey, South Africa and Morocco. It broadens previous studies by implementing an ARMA(p, q)-FIEGARCH(1,d,k,1) parameterisation capable of simultaneously measuring the presence of overconfidence bias and accounting for long-memory processes in the volatility series. The data used in this article consists of daily closing prices along with daily trading volumes of S%P 500, DAX, CAC 40, BIST 100, FTSE_JSE, ATW, BCP, BMCE and IAM. The results of the study confirm the existence of an overconfidence bias in the data of DAX, CAC 40, FTSE JSE, ATW, and BCP. Similarly, the results also suggest that all of the series in the sample have their volatilities governed by long-memory processes, for which the intensity differs from one index to another. Journal: Afro-Asian J. of Finance and Accounting Pages: 622-644 Issue: 5 Volume: 15 Year: 2025 Keywords: overconfidence; anomalies; financial markets; FIEGARCH; long-memory. File-URL: http://www.inderscience.com/link.php?id=148665 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:622-644 Template-Type: ReDIF-Article 1.0 Author-Name: Hanen Moalla Author-X-Name-First: Hanen Author-X-Name-Last: Moalla Title: The effect of audit opinion on debt characteristics: the moderating effect of the type of auditor and the Tunisian Revolution Abstract: The aim of this research is to investigate the impact of the audit opinion on debt characteristics (i.e., debt amount, maturity structure, and cost of debt) and analyse the moderating effect of both the type of auditor and the Tunisian Revolution. We were interested in the going-concern opinion and the qualified opinion. We analysed 573 year-firms observations and pre- and post-revolution periods (respectively 2008-2010 and 2011-2017). The sample is composed of companies audited either by Big-4 or non-Big 4 auditors. The main results underline the importance of the effect of the going-concern opinion on debt characteristics. The influence of the qualified audit opinion and especially the going-concern opinion issued by a Big 4 auditor on the characteristics of the debt is important. These modified opinions expressed by a reputable auditor are associated with unfavourable debt conditions. A negative impact of the going-concern opinion after the Tunisian Revolution is highlighted. Journal: Afro-Asian J. of Finance and Accounting Pages: 665-688 Issue: 5 Volume: 15 Year: 2025 Keywords: going-concern opinion; qualified audit opinion; debt characteristics; debt amount; debt maturity structure; cost of debt; Big 4/non-Big 4; Tunisian Revolution. File-URL: http://www.inderscience.com/link.php?id=148666 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:665-688 Template-Type: ReDIF-Article 1.0 Author-Name: Edosa Joshua Aronmwan Author-X-Name-First: Edosa Joshua Author-X-Name-Last: Aronmwan Author-Name: Osariemen Asiriuwa Author-X-Name-First: Osariemen Author-X-Name-Last: Asiriuwa Author-Name: Alex Adegboye Author-X-Name-First: Alex Author-X-Name-Last: Adegboye Author-Name: Adeyemi Samuel Sopekan Author-X-Name-First: Adeyemi Samuel Author-X-Name-Last: Sopekan Title: Do corporate ownership attributes impact timely financial reporting? Empirical evidence from Nigeria Abstract: This study assesses the impact of ownership attributes on the timeliness of financial reporting by corporate entities in Nigeria. It uses a quantitative research methodology and data from 50 financial service companies listed on the Nigerian Stock Exchange (NGX) for the period 2012 to 2018. The findings of the study provide evidence in line with the convergence of interest hypothesis to support a nonlinear significant relationship between managerial ownership and timely financial reporting. Government ownership was also found to have a statistically significant positive association with the timely release of financial statements. Overall, the study has implications for policy formulation as it provides evidence that indicates the timely release of financial reports in Nigeria is driven by the type of ownership structure ceteris paribus. Our findings contribute to the literature on the nexus between ownership attributes and timely reporting within the context of an emerging African country with a less developed exchange market. The study recommends that those charged with governance should subscribe to well-designed equity-based compensation for executives of not more than 20% holdings as this would increase managerial ownership and align the interests of managers and owners as regards timely reporting. Journal: Afro-Asian J. of Finance and Accounting Pages: 645-664 Issue: 5 Volume: 15 Year: 2025 Keywords: timeliness; corporate reporting; government ownership; institutional ownership; managerial ownership; convergence of interest; Nigeria. File-URL: http://www.inderscience.com/link.php?id=148667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:645-664 Template-Type: ReDIF-Article 1.0 Author-Name: Hemant Bhanawat Author-X-Name-First: Hemant Author-X-Name-Last: Bhanawat Title: Inter-relationship between stock market and commodities returns: an empirical analysis Abstract: Although the commodities and stock markets are different, both these markets attract large pools of investors. This study implemented the Bai-Perron test to identify structural breaks and examine the impact of commodities returns on stock market returns. The results indicated strong positive impact of commodities returns on Nifty50 Index returns. The models developed were found to be stable using CUSUM test. The present study supports the argument of the existence of an interrelationship between the commodities and stock markets in India. The results of the present study will contribute to the existing literature relating to commodities and stock markets. The results will be useful for indices pertaining to stock and commodities markets to examine such interrelationship. Finally, the study will immensely help investors to understand the interrelationship between commodities and stock markets and there by frame necessary strategies to safeguard against price uncertainties and get rewards from investment. Journal: Afro-Asian J. of Finance and Accounting Pages: 574-589 Issue: 5 Volume: 15 Year: 2025 Keywords: stock market returns; commodities market returns; Bai-Perron test. File-URL: http://www.inderscience.com/link.php?id=148668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:574-589 Template-Type: ReDIF-Article 1.0 Author-Name: Maimoona Sadiq Author-X-Name-First: Maimoona Author-X-Name-Last: Sadiq Author-Name: Hamid Ullah Author-X-Name-First: Hamid Author-X-Name-Last: Ullah Author-Name: Fayaz Ali Shah Author-X-Name-First: Fayaz Ali Author-X-Name-Last: Shah Author-Name: Amjad Hameed Khattak Author-X-Name-First: Amjad Hameed Author-X-Name-Last: Khattak Title: Modelling the lead-lag relationship between leading cryptocurrencies using BEKK-MGARCH model Abstract: This study examines the lead-lag relationships among leading cryptocurrencies, i.e., Bitcoin, Ethereum, BNB, and Tether. The study analyses cryptocurrency daily prices from August 7, 2015, to July 31, 2022. The Granger causality test indicated a one-way causal relationship between BNB and Ethereum. Bitcoin is bi-directionally related with BNB and Ethereum. However, Tether did not correlate with Bitcoin, BNB or Ethereum. In addition, the GARCH and BEKK-MGARCH models showed two-way shock transmission effects and volatility linkages among these cryptocurrencies. This research deepens the understanding of financial markets and provides investors, regulators, and policymakers with valuable insights. Moreover, this research facilitates stakeholders in achieving optimal portfolio returns by analysing the price relationship and evaluating the capacity of cryptocurrencies to serve as price leaders to one another. Journal: Afro-Asian J. of Finance and Accounting Pages: 557-573 Issue: 5 Volume: 15 Year: 2025 Keywords: cryptocurrency; lead-lag; causality; GARCH; BEKK-MGARCH. File-URL: http://www.inderscience.com/link.php?id=148669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:5:p:557-573 Template-Type: ReDIF-Article 1.0 Author-Name: Hussain Tahir Author-X-Name-First: Hussain Author-X-Name-Last: Tahir Author-Name: Mahfuzur Rahman Author-X-Name-First: Mahfuzur Author-X-Name-Last: Rahman Author-Name: Md. Abdul Kaium Masud Author-X-Name-First: Md. Abdul Kaium Author-X-Name-Last: Masud Author-Name: Md. Harun Ur Rashid Author-X-Name-First: Md. Harun Ur Author-X-Name-Last: Rashid Title: Mediating role of research and development and financial leverage on the relationship between corporate board characteristics and dividend payout policy Abstract: The study investigates the mediating effect of research and development (R&D) and financial leverage on the relationship between corporate board characteristics (diversity, size, tenure) and dividend payout. The study uses structural equation modelling to analyse data collected from 203 non-financial firms listed on the Bursa Malaysia between 2005 and 2018. The findings revealed a serial partial arbitration effect of R&D and financial leverage on the relationship between board characteristics (board size and board diversity) and dividend payout. Though the outcomes show that financial leverage partially mediates the association between the board of directors' tenure and dividend, R&D fully mediates between board tenure, board diversity, and financial leverage. The findings imply that board characteristics influence the declaration of a sound payout policy which attracts more investment to the stock exchange. The study also offers the policymakers of developing countries valuable insights into how creditors' pressure and investment in R&D influence the board's approach toward dividend payout policy. Journal: Afro-Asian J. of Finance and Accounting Pages: 775-796 Issue: 6 Volume: 15 Year: 2025 Keywords: dividend payout; corporate board characteristics; Bursa Malaysia; research % development; R%D; financial leverage. File-URL: http://www.inderscience.com/link.php?id=149793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:775-796 Template-Type: ReDIF-Article 1.0 Author-Name: Pham Hai Nam Author-X-Name-First: Pham Hai Author-X-Name-Last: Nam Author-Name: Le Ha Diem Chi Author-X-Name-First: Le Ha Diem Author-X-Name-Last: Chi Title: Corporate governance and bank performance in Vietnam: the role of the board of directors Abstract: This study examines the impact of board characteristics on 30 Vietnamese commercial banks' performance from 2012 to 2020. Variables representing the characteristics of the board of directors include state shareholders, the board size, independent members, the duality of the CEO, and female members of the board of directors. The variables that represent the performance of commercial banks are ROA and ROE. By regression of balanced panel data according to the SGMM method, research results show that independent and female members of the board of directors positively impact the performance of Vietnamese commercial banks. In contrast, state shareholders, board size, and CEO duality have a negative impact on bank performance. Journal: Afro-Asian J. of Finance and Accounting Pages: 745-757 Issue: 6 Volume: 15 Year: 2025 Keywords: board characteristics; bank performance; commercial bank. File-URL: http://www.inderscience.com/link.php?id=149794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:745-757 Template-Type: ReDIF-Article 1.0 Author-Name: Haşmet Sarıgül Author-X-Name-First: Haşmet Author-X-Name-Last: Sarıgül Title: Bank-specific determinants of deposit banks profitability in a highly dollarised economy: evidence from Turkey Abstract: The purpose of this study is to explore banks' profitability determinants in highly dollarised Turkish economy. A panel autoregressive distributed lag model with quarterly data on Turkish deposit banks for the period 2005Q1–2021Q4 is used to analyse long- and short-run relationships between the variables. All the dollarisation-related variables in the estimation model – deposit dollarisation, foreign currency open position, and foreign currency financial derivatives – appear to be statistically significant factors that adversely impact the profitability of Turkish deposit banks in the long-run. The estimation model also includes a set of other bank-specific variables, among which the off-balance engagements, overhead rate, market share, and capital-to-asset ratio are significantly associated with the profitability of Turkish deposit banks. The changes in the net total loans/assets, loan loss provisions/loans, and loan loss provisions/assets variables have insignificant impacts on the profitability. Journal: Afro-Asian J. of Finance and Accounting Pages: 758-774 Issue: 6 Volume: 15 Year: 2025 Keywords: dollarisation; profitability; deposit banks; panel data; Turkey. File-URL: http://www.inderscience.com/link.php?id=149795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:758-774 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulrahman Aljabr Author-X-Name-First: Abdulrahman Author-X-Name-Last: Aljabr Title: Examining a moderated-mediation model of the impact of contextual factors on costing system design: new insights from the Saudi manufacturing sector Abstract: An optimal costing system design (CSD), which aligns with business and production environments, contributes towards achieving optimal performance levels and enhancing sustainability. Prior research adopted contingency theory to understand the impacts on optimal CSD, yet produced inconsistent findings, possibly due to the employment of simple models. Hence, this paper aims to examine a moderated-mediation model that combines mediation and moderation analysis to investigate the effect of key contingency factors on CSD. Using questionnaire data collected from 200 Saudi manufacturing business units and analysed using partial least squares structural equation modelling (PLS-SEM), this paper provides interesting direct, mediation, moderation, and moderated-mediation effects of contingency factors on CSD. It contributes towards lessening the inconsistencies found in the prior literature regarding the effect of the level of competition (COMP), production complexity (PC), and indirect costs (INDIRECT-COSTS) on CSD. Journal: Afro-Asian J. of Finance and Accounting Pages: 723-744 Issue: 6 Volume: 15 Year: 2025 Keywords: costing system design; costing system complexity; CSC; activity-based costing; ABC; contingency factors; moderated-mediation; partial least squares. File-URL: http://www.inderscience.com/link.php?id=149797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:723-744 Template-Type: ReDIF-Article 1.0 Author-Name: Zakaria Salhi Author-X-Name-First: Zakaria Author-X-Name-Last: Salhi Author-Name: Hicham Ouakil Author-X-Name-First: Hicham Author-X-Name-Last: Ouakil Title: External factors of going public in the Casablanca Stock Exchange Abstract: This study examines the effect of external factors on initial public offerings (IPOs) activity within the Moroccan stock market from 1994 to 2022. Applying a nonlinear autoregressive distributed lag model (NARDL) to the macroeconomic variables (GDP growth rate, stock market index return, Treasury bill rate, turnover ratio), our findings reveal asymmetric long and short-run models, indicating that all four variables affect the number of IPOs. Remarkably, the market liquidity, stock market index return and the Treasury bill rates exhibit a significant effect on both long and short-run models, while GDP positively influences the number of IPOs in the short run. To ensure the robustness of our results, we conducted a quantile ARDL model, confirming the asymmetry of these variables. The findings highlight the role of macroeconomic factors in shaping the Moroccan financial market's development and their impact on companies' decisions to go public. Therefore, policymakers, managers, and investors should pay greater attention to stock market performance and liquidity, given their significant influence on the timing of IPO activities. Journal: Afro-Asian J. of Finance and Accounting Pages: 689-706 Issue: 6 Volume: 15 Year: 2025 Keywords: initial public offerings; IPOs; macroeconomic determinants; Casablanca Stock Exchange; NARDL; quantile ARDL. File-URL: http://www.inderscience.com/link.php?id=149803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:689-706 Template-Type: ReDIF-Article 1.0 Author-Name: Haidar Haidar Author-X-Name-First: Haidar Author-X-Name-Last: Haidar Title: The effect of liquidity hoarding and credit risk on the performance of Syrian private banks Abstract: The aim of the study is to analyse the impact of liquidity hoarding and increased counterparty credit risk on the performance of Syrian private banks, which have significantly increased their liquidity hoarding and decreased their lending activities in response to the prevailing economic conditions. To fulfil the purpose of the study, data were collected from the published annual financial reports of listed Syrian private banks from 2010 to 2022. Pooled regression with White's corrected error terms was employed to model the effects of liquidity hoarding and credit risk on return on assets (ROA) and return on equity (ROE), after controlling for size, operating efficiency, and capital adequacy. The results demonstrate a negative and significant effect of credit risk on banks' performance, while no significant effect could be detected for liquidity hoarding or the interaction between liquidity hoarding and credit risk. Journal: Afro-Asian J. of Finance and Accounting Pages: 707-722 Issue: 6 Volume: 15 Year: 2025 Keywords: liquidity hoarding; credit risk; performance; return on assets; ROA; crisis period; Syrian banks. File-URL: http://www.inderscience.com/link.php?id=149805 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:afasfa:v:15:y:2025:i:6:p:707-722