Template-Type: ReDIF-Article 1.0
Author-Name: Meena Bhatia
Author-X-Name-First: Meena
Author-X-Name-Last: Bhatia
Title: Do women use annual reports differently than men? A case of India
Abstract:
This study uses gender in financial research. The purpose is to examine women investors' perceptions of the importance and understanding of sections of annual reports and problems that restrict utility. It also explores the perception towards the other announcements made by the corporates. Data was collected using a questionnaire sent to 700 individual investors. Descriptive statistics and non-parametric tests were used to analyse the data received from 341 respondents (48.71% response rate). Results indicated a significant difference between the frequency of use of annual reports and other announcements amongst both genders. Understanding various sections of annual reports is better for male investors than female investors. Women investors' deficiencies in annual report utility had various implications for practitioners, standard setters, and regulatory bodies. Drastic improvements are needed in the awareness programmes for women investors.
Journal: Global Business and Economics Review
Pages: 212-228
Issue: 2
Volume: 29
Year: 2023
Keywords: announcements; emerging markets; financial statements; Ind AS; India.
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:212-228

Template-Type: ReDIF-Article 1.0
Author-Name: Nandita Bhattacharjee
Author-X-Name-First: Nandita
Author-X-Name-Last: Bhattacharjee
Author-Name: Ambika Prasad Pati
Author-X-Name-First: Ambika Prasad
Author-X-Name-Last: Pati
Title: Efficiency and its determinants of systemically important shadow banks of India
Abstract:
The growth of shadow banks (SBs) across the globe is ubiquitous, and they are playing a major role in the financial system of all the developed and emerging economies. During the last decade, India as an emerging economy has seen a phenomenal growth of their activities which has prompted the Reserve Bank of India to bring these financial companies under a robust regulatory structure. This necessitates an understanding of their functioning with respect to their efficiency. With ten years dataset of SBs, the efficiency score is ascertained. Data envelopment analysis approach has been employed to ascertain their efficiency. The Malmquist productivity index is applied to see the changes in efficiency over the period and followed by Tobit regression to determine the influence of efficiency on bank variables. The findings reveal that improvement in internal practices, cost control and monitoring the asset quality is imperative.
Journal: Global Business and Economics Review
Pages: 155-180
Issue: 2
Volume: 29
Year: 2023
Keywords: shadow banks; efficiency; determinants; India.
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:155-180

Template-Type: ReDIF-Article 1.0
Author-Name: Davoud Mahmoudinia
Author-X-Name-First: Davoud
Author-X-Name-Last: Mahmoudinia
Author-Name: Behrouz Sadeghi Amroabadi
Author-X-Name-First: Behrouz Sadeghi
Author-X-Name-Last: Amroabadi
Title: Good governance and financial crises: a global evidence
Abstract:
The purpose of this study is to provide empirical evidence on the links between financial crises and good governance indicators. We employ the data for a sample of 89 developing and 29 developed countries from 1996-2018 to investigate the links. In line with the literature, our dependent variables are banking, debt, currency, and twin and triple crises. Using a panel logit model, we find that good governance, low corruption, increased transparency, a modern legislation system, and high political stability could reduce the likelihood of financial crises in all three samples (developing countries, developed countries, and all countries). The study also shows a positive relationship between various types of financial crises and a large number of macroeconomic variables, including inflation, exchange rate, debt, real interest rate, and credit. Moreover, according to our results, GDP and foreign direct investment could reduce the likelihood of any financial crisis. Hence, this study contributes to the literature by considering good governance indicators as influential factors leading to different types of financial crises.
Journal: Global Business and Economics Review
Pages: 181-211
Issue: 2
Volume: 29
Year: 2023
Keywords: good governance; financial crises; developing countries; developed countries; logit model.
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:181-211

Template-Type: ReDIF-Article 1.0
Author-Name: Ammara Yasmin
Author-X-Name-First: Ammara
Author-X-Name-Last: Yasmin
Author-Name: Abdul Rashid
Author-X-Name-First: Abdul
Author-X-Name-Last: Rashid
Author-Name: Saba Kausar
Author-X-Name-First: Saba
Author-X-Name-Last: Kausar
Title: Financial conservatism and shareholders' value
Abstract:
Conservative use of leverage makes the firm less susceptible to financial risk. The use of debt is also proscribed as per the Islamic financing approach. On the contrary, dominant theories of finance appreciate the use of leverage to attain higher returns. To solve this puzzle we have empirically examined the long-run performance of firms that use financially conservative policy in Pakistan. This is the first study comparing the long-run performance of financially conservative firms classified into: a business-group affiliated with non-affiliated, dividend-paying with zero-dividend and financial surplus with financial deficit. We have analysed data from 146 non-financial publicly listed companies for a period of 21 years (1998-2018) using the Fama and French three-factor model and the CAPM. The results of this study have strong implications for investors, as we discover that the stocks of financially conservative firms generate positive abnormal returns regardless of any classification.
Journal: Global Business and Economics Review
Pages: 229-246
Issue: 2
Volume: 29
Year: 2023
Keywords: capital structure; net debt ratio; financial conservatism; zero leverage; shareholder’s value; business groups.
File-URL: http://www.inderscience.com/link.php?id=132668
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:229-246

Template-Type: ReDIF-Article 1.0
Author-Name: Samapti Guha
Author-X-Name-First: Samapti
Author-X-Name-Last: Guha
Author-Name: Chandralekha Ghosh
Author-X-Name-First: Chandralekha
Author-X-Name-Last: Ghosh
Title: Impact of economic transition on the outreach of microfinance sector
Abstract:
Microfinance institutions in different countries initiated the process of transformation from non-profit entity to not-for-profit entity after 2003-2004. Again in 2006-2007, there is a transition from not-for-profit entity to for-profit entity. First transition needed for scaling up operations and the second transition needed to achieve self-sufficiency to render the services to marginalized people. In this paper, MFIs in Bolivia, Mexico and India are studied to understand the nature of transition in microfinance sector. We have carried out exploratory factor analysis to understand social, financial and operational factors for the period 2006-2007 and 2012-2013. Further we have carried out confirmatory factor analysis to confirm the factors which influence outreach of women borrowers during these two different periods of transition. It is concluded that social and financial factors do not have any impact on outreach for the year 2012-2013 however it had influence in the 2006-2007.
Journal: Global Business and Economics Review
Pages: 247-264
Issue: 2
Volume: 29
Year: 2023
Keywords: microfinance; outreach; self-sufficiency; confirmatory factor analysis; exploratory factor analysis; economic transition.
File-URL: http://www.inderscience.com/link.php?id=132669
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:247-264

Template-Type: ReDIF-Article 1.0
Author-Name: Otávio Rezende
Author-X-Name-First: Otávio
Author-X-Name-Last: Rezende
Author-Name: Marcelo Borges
Author-X-Name-First: Marcelo
Author-X-Name-Last: Borges
Author-Name: Josiane Rafaella Faleiro
Author-X-Name-First: Josiane Rafaella
Author-X-Name-Last: Faleiro
Author-Name: Leandro Collares
Author-X-Name-First: Leandro
Author-X-Name-Last: Collares
Author-Name: Ítalo Daldegan de Oliveira
Author-X-Name-First: Ítalo Daldegan de
Author-X-Name-Last: Oliveira
Title: Using product space to connect local products to foreign markets: paths for export basket diversification of the Brazilian state of Minas Gerais
Abstract:
The export basket is a key indicator of the economic development of a country (Hausmann et al., 2014). Therefore, export-oriented policies must be adopted to diversify exports and increase their volume. This study aims to identify sectors and markets that deserve support and investments based on the complexity index. We apply the product space methodology to select products with a latent competitive advantage and a high degree of sophistication that could diversify the Minas Gerais export basket. This application is based on the economic complexity theory, the product space, and economic indicators provided by the Dataviva platform. Results yielded include 12 products that could be exported by the state and their competitiveness levels in different markets. Sectors with latent potential and their behaviour in foreign markets derive from empirical analysis. The two main contributions of this work are the identification of products made in Minas Gerais with latent comparative advantage and the target market classification for these products.
Journal: Global Business and Economics Review
Pages: 133-154
Issue: 2
Volume: 29
Year: 2023
Keywords: economic complexity; competitiveness; comparative advantage; product space; priority markets.
File-URL: http://www.inderscience.com/link.php?id=132670
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:2:p:133-154

Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Ikhlas Rosele
Author-X-Name-First: Muhammad Ikhlas
Author-X-Name-Last: Rosele
Author-Name: Abdul Muneem
Author-X-Name-First: Abdul
Author-X-Name-Last: Muneem
Author-Name: Azizi Bin Che Seman
Author-X-Name-First: Azizi Bin Che
Author-X-Name-Last: Seman
Author-Name: Luqman Haji Abdullah
Author-X-Name-First: Luqman Haji
Author-X-Name-Last: Abdullah
Author-Name: Noor Naemah Abdul Rahman
Author-X-Name-First: Noor Naemah Abdul
Author-X-Name-Last: Rahman
Author-Name: Mohd Edil Abd Sukor
Author-X-Name-First: Mohd Edil Abd
Author-X-Name-Last: Sukor
Author-Name: Abdul Karim Ali
Author-X-Name-First: Abdul Karim
Author-X-Name-Last: Ali
Title: Imposing zakat on cryptocurrency (Bitcoin): a Shariah appraisal
Abstract:
This research aims to study whether zakat is due on cryptocurrency (Bitcoin) and to address the issues related to imposing zakat upon it. This study is conducted based on the qualitative research method following the inductive method and explanatory research approach. The findings show that Bitcoin is recognised as a digital asset in many countries and the tax is imposed accordingly. As such, Bitcoin is among the zakatable assets since it meets the conditions of zakat on assets. Moreover, Bitcoin as a digital currency would also be zakatable if a country recognises it as currency, as would any regulated digital currency issued by a government. Imposing zakat on Bitcoin would boost the total amount of zakat collectible, which would be beneficial for needy people. Further research is recommended to provide the zakat model for Bitcoin and other cryptocurrencies.
Journal: Global Business and Economics Review
Pages: 91-111
Issue: 1
Volume: 28
Year: 2023
Keywords: cryptocurrency; Bitcoin; digital asset; zakat; Shariah.
File-URL: http://www.inderscience.com/link.php?id=127550
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:1:p:91-111

Template-Type: ReDIF-Article 1.0
Author-Name: Um-E-Roman Fayyaz
Author-X-Name-First: Um-E-Roman
Author-X-Name-Last: Fayyaz
Author-Name: Michelina Venditti
Author-X-Name-First: Michelina
Author-X-Name-Last: Venditti
Author-Name: Raja Nabeel-Ud-Din Jalal
Author-X-Name-First: Raja Nabeel-Ud-Din
Author-X-Name-Last: Jalal
Title: Dividend policy under the influence of corporate governance quality: an empirical analysis from Asian emerging markets
Abstract:
In the present study, we investigate the influence of corporate governance quality on the dividend policy of Asian emerging markets. First, we assess the level of corporate governance quality through a comprehensive index comprised of the combined board governance attributes (board of directors, ownership status, and progressive practices) and firm fundamentals through attributes of financial ratios. Then, using a sample of non-financial firms from the stock exchanges of the respective emerging markets (China, India, and Pakistan), our results depict firms' corporate governance quality as a relevant factor for dividend pay-out.
Journal: Global Business and Economics Review
Pages: 22-38
Issue: 1
Volume: 28
Year: 2023
Keywords: corporate governance quality; firm fundamentals; dividend policy; dividend pay-outs; emerging markets; Asia.
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:1:p:22-38

Template-Type: ReDIF-Article 1.0
Author-Name: Nadta Saengsith
Author-X-Name-First: Nadta
Author-X-Name-Last: Saengsith
Author-Name: Phassawan Suntraruk
Author-X-Name-First: Phassawan
Author-X-Name-Last: Suntraruk
Title: Assessing the internal auditors' readiness for digital transformation
Abstract:
The purpose of this study is to investigate the factors that affect the internal auditors' readiness for ongoing digital transformation. The questionnaire was designed and distributed to a total of 350 internal auditors who are the member of the Institute of Internal Auditors of Thailand (IIAT). Using multiple regression analysis, the findings indicate that factors relating to know-how including IT-based knowledge, cognition, and competency positively influence the internal auditors' readiness for digital transformation. A positive attitude and a willingness to accept change on the part of internal auditors are also essential factors affecting their readiness. Moreover, support from organisations, including professional organisations, are key factors creating a positive working environment to drive the competency of the internal auditors to adapt themselves to cope with the advancement of technology.
Journal: Global Business and Economics Review
Pages: 1-21
Issue: 1
Volume: 28
Year: 2023
Keywords: digital transformation; information technology; internal auditors; readiness; Thailand.
File-URL: http://www.inderscience.com/link.php?id=127552
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:1:p:1-21

Template-Type: ReDIF-Article 1.0
Author-Name: Ridhima Saggar
Author-X-Name-First: Ridhima
Author-X-Name-Last: Saggar
Author-Name: Nischay Arora
Author-X-Name-First: Nischay
Author-X-Name-Last: Arora
Author-Name: Balwinder Singh
Author-X-Name-First: Balwinder
Author-X-Name-Last: Singh
Title: Financial performance and corporate risk disclosure: the moderating impact of board structure
Abstract:
The study aims to unravel the moderating impact of board attributes, i.e., board size, board independence and gender diversity on the relationship between firms' financial performance and corporate risk disclosure in the annual reports of Indian listed non-financial firms. For achieving the objective, the study deploys hierarchical moderated regression on a sample of S%P BSE-100 index pertaining to financial year 2018-2019. In addition, automated content analysis has been employed to operationalise the dependent variable, i.e., risk disclosure. The main findings unveil that board size and board independence positively moderate the relationship between firm performance and risk disclosure; suggesting that larger the board size and higher the proportion of independent directors; higher the performance impacts risk disclosure. Contrarily, proportion of women directors negatively moderates the relationship between firm performance and risk disclosure emphasising on the importance of women directors in disclosing risk in low profitable firms. 
Journal: Global Business and Economics Review
Pages: 39-61
Issue: 1
Volume: 28
Year: 2023
Keywords: board size; gender diversity; board structure; profitability; risk disclosure.
File-URL: http://www.inderscience.com/link.php?id=127553
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:1:p:39-61

Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Yadav
Author-X-Name-First: Ajit
Author-X-Name-Last: Yadav
Author-Name: Anindita Chakraborty
Author-X-Name-First: Anindita
Author-X-Name-Last: Chakraborty
Title: Relationship between investor sentiment and stock returns: a bibliometric analysis using SCOPUS database
Abstract:
This paper provides a comprehensive bibliometric analysis of the literature on the relationship between investor sentiment and stock returns. It identifies the key authors, publications, journals, publication countries, and reoccurring keywords using VOSviewer. It analyses 983 publications (procured through the SCOPUS database) using four bibliometric techniques: co-citation analysis, citation analysis, co-occurrence analysis, and bibliographic coupling. The results of the co-citation analysis of references and author reveal that 'Investor sentiment and the cross-section of stock returns' by Baker and Wurgler (2006) is the most cited article, and M. Baker is the top-cited author. The bibliographic coupling of sources suggests that <i>Finance Research Letters</i> leads in publications, co-occurrence analysis of author keywords reveals that behavioural finance, asset pricing, and volatility are the most occurring keywords. Further, the citation analysis of countries shows that the USA leads in terms of the number of publications, substantially growing globally since 2000.
Journal: Global Business and Economics Review
Pages: 62-90
Issue: 1
Volume: 28
Year: 2023
Keywords: investor sentiment; stock returns; bibliometric analysis; VOSviewer; SCOPUS database.
File-URL: http://www.inderscience.com/link.php?id=127554
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:1:p:62-90

Template-Type: ReDIF-Article 1.0
Author-Name: Musa C. Dasauki
Author-X-Name-First: Musa C.
Author-X-Name-Last: Dasauki
Author-Name: Olusola B. Oluwalaiye
Author-X-Name-First: Olusola B.
Author-X-Name-Last: Oluwalaiye
Author-Name: Jerry D. Kwarbai
Author-X-Name-First: Jerry D.
Author-X-Name-Last: Kwarbai
Author-Name: Jesudara E. Oyesiji
Author-X-Name-First: Jesudara E.
Author-X-Name-Last: Oyesiji
Title: COVID-19 pandemic: revisiting the safe haven assets
Abstract:
Different assets behave differently during different economic situations and investors are constantly searching for safe assets to hold and avoid volatile assets to hedge against risk. The study considered 13 safe haven assets across the world's largest economies during the COVID-19 pandemic. The GARCH (1,1) and the threshold GARCH models were applied. The results obtained from the model estimation test showed that COVID-19 and oil price had a negative effect on some safe haven assets. International stock has less volatility. The result also revealed that crypto currencies (Bitcoin, Tether, Etherium), stocks (Shanghai stock exchange), currencies (US dollars, Swiss franc, and pounds), precious metal (silver) and government securities (T-bond and T-bill) were less volatile but COVID-19 pandemic triggered higher volatility on precious metal (gold) and stocks (S%P500, CAC40).
Journal: Global Business and Economics Review
Pages: 175-194
Issue: 2
Volume: 28
Year: 2023
Keywords: asymmetry; cryptocurrency; metals; stock; volatility.
File-URL: http://www.inderscience.com/link.php?id=128834
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:2:p:175-194

Template-Type: ReDIF-Article 1.0
Author-Name:  Tiffani
Author-X-Name-First: 
Author-X-Name-Last: Tiffani
Author-Name: Ingrid Claudia Calvilus
Author-X-Name-First: Ingrid Claudia
Author-X-Name-Last: Calvilus
Author-Name: Shinta Amalina Hazrati Havidz
Author-X-Name-First: Shinta Amalina Hazrati
Author-X-Name-Last: Havidz
Title: Investigation of cointegration and causal linkages on Bitcoin volatility during COVID-19 pandemic
Abstract:
In this study, we focus on a prominent feature in Bitcoin: its volatility. This paper aims to examine the volatility action of Bitcoin's price during the COVID-19 pandemic through various angles: COVID-19 fear sentiments, investor fear sentiments, macro-financial factors, and crypto market factors. The study utilises daily data from 11 March 2020 to 31 May 2021. We implemented an ARDL bound testing approach to find cointegration, and the Toda-Yamamoto approach to further examine any existing causal relationships between the variables. The empirical results show that COVID-19 fear increased Bitcoin volatility and a unidirectional causal relation was found between them. Investor fear sentiments revealed that US dollar volatility moved in the same direction as Bitcoin volatility, while VIX was found to be insignificant. Gold, crude oil, and the stock market did not influence the volatility of Bitcoin. Overall, only crypto market factors were cointegrated with Bitcoin volatility in the long run.
Journal: Global Business and Economics Review
Pages: 195-217
Issue: 2
Volume: 28
Year: 2023
Keywords: autoregressive distributed lag; ARDL; Bitcoin; causal linkages; cointegration; COVID-19; crypto market; fear sentiments; macro-financial; Toda-Yamamoto; volatility.
File-URL: http://www.inderscience.com/link.php?id=128844
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:2:p:195-217

Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Umar
Author-X-Name-First: Muhammad
Author-X-Name-Last: Umar
Author-Name: Joaquim António Martins Ferrão
Author-X-Name-First: Joaquim António Martins
Author-X-Name-Last: Ferrão
Author-Name: Mário Nuno Mata
Author-X-Name-First: Mário Nuno
Author-X-Name-Last: Mata
Title: COVID-19 and negative oil prices – an empirical analysis comparing importing and exporting countries
Abstract:
The coronavirus pandemic has forced lockdown in many countries, reducing the use of vehicles and planes, resulting in a negative oil demand shock. In the USA, West Texas Intermediate (WTI) crude oil FOB spot price was recorded to be negative $36.98 per barrel on April 20, 2020. This would seem to be good news for oil importers and bad news for oil exporters. However, the results of an event study analysis of indices data ranging from July 1, 2019 to May 29, 2020 present a different picture. The incidence of a negative oil price had a negative impact on the stock markets of both major oil importing and exporting countries, although the effects on exporting countries were much more negative. Cumulative average abnormal returns, measured using a historical mean model and in reference to the event day of April 20, were significantly negative for all groups in the first two days, vanishing quickly in the very short term.
Journal: Global Business and Economics Review
Pages: 218-232
Issue: 2
Volume: 28
Year: 2023
Keywords: negative oil price; COVID-19; demand shock; energy markets; oil importing; event study.
File-URL: http://www.inderscience.com/link.php?id=128847
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:2:p:218-232

Template-Type: ReDIF-Article 1.0
Author-Name: Richard Danquah
Author-X-Name-First: Richard
Author-X-Name-Last: Danquah
Author-Name: Samuel Kortu Nelson
Author-X-Name-First: Samuel Kortu
Author-X-Name-Last: Nelson
Author-Name: Chiamaka Nneoma Nweze
Author-X-Name-First: Chiamaka Nneoma
Author-X-Name-Last: Nweze
Author-Name: Peter Davis Sumo
Author-X-Name-First: Peter Davis
Author-X-Name-Last: Sumo
Author-Name: Lydia Osarfo Achaa
Author-X-Name-First: Lydia Osarfo
Author-X-Name-Last: Achaa
Author-Name: Ishmael Arhin
Author-X-Name-First: Ishmael
Author-X-Name-Last: Arhin
Title: Performance of the African stock market amid COVID-19 global health crisis: empirical analysis using four events
Abstract:
The study employs the market model and event study approach with four events to examine the performance of the African stock market amid COVID-19 global health crisis. We use daily stock market data from 14 African countries (as a proxy for the African market) spanning September 2019 to June 2021 and COVID-19 data to estimate average abnormal returns for Africa. The results show significant positive average abnormal returns in Africa when the WHO announced COVID-19 as a global health epidemic. The events of infections and deaths generated significant negative average abnormal returns while the event of vaccination did not generate any significant average abnormal returns in the market. In as much as pandemics are unpredictable, the African market quickly recovers as depicted by COVID-19; therefore, we recommend to investors, speculators, and portfolio managers not to quickly exit the continent during pandemics.
Journal: Global Business and Economics Review
Pages: 134-154
Issue: 2
Volume: 28
Year: 2023
Keywords: COVID-19; Africa; stock market; performance; event study; market model; abnormal returns.
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:2:p:134-154

Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad T. Al-Harbi
Author-X-Name-First: Ahmad T.
Author-X-Name-Last: Al-Harbi
Author-Name: Moid U. Ahmad
Author-X-Name-First: Moid U.
Author-X-Name-Last: Ahmad
Title: The COVID-19 impact on MSME earnings: evidences from Saudi Arabia
Abstract:
Small businesses are more prone to market a movement which gets aggravated in an uncontrollable scenario such as COVID-19. The objective of the study is to understand the impact of COVID-19 and the subsequent government's policy support, on the earnings of MSME firms in Saudi Arabia. Based on a selected study period (March-May 2021), a survey of MSME owners and managers was conducted (41% response rate) using a 33-item questionnaire. Linear regression analysis and moderation analysis was used for data interpretation. One of the key findings of the study is that firm's size and the government's economic support moderates the relationship of MSME operations with MSME earnings.
Journal: Global Business and Economics Review
Pages: 118-133
Issue: 2
Volume: 28
Year: 2023
Keywords: micro; small and medium enterprises; MSME; earnings; COVID-19; operations; government's support; Saudi Arabia.
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:2:p:118-133

Template-Type: ReDIF-Article 1.0
Author-Name: Bhaskar Bagchi
Author-X-Name-First: Bhaskar
Author-X-Name-Last: Bagchi
Author-Name: Raktim Ghosh
Author-X-Name-First: Raktim
Author-X-Name-Last: Ghosh
Author-Name: Avijit Kanrar
Author-X-Name-First: Avijit
Author-X-Name-Last: Kanrar
Title: Contagion or interdependence? Evidence from Asian emerging stock markets in times of COVID-19 pandemic
Abstract:
This study examines the presence of contagion effect along with interdependency between the stock markets of Asian emerging economies like China, India, South Korea, Indonesia, Hong Kong, and Thailand that are caused due to COVID-19 pandemic. The study employs an adjusted correlation coefficient along with the DCC-MGARCH model to capture the contagion effect or interdependency between Shanghai Composite and other select stock markets. Mild enhancement of short-run volatility (DCC<i>α</i><SUB align="right"><SMALL>1</SMALL></SUB>) is found to be significant under the DCC framework during COVID-19 period only, although long-run volatility is insignificant in both periods. Contagion effect can be slightly traced in BSE Sensex, KOSPI, and SET 100 while market co-movement remains same for Hang Seng and JKSE Composite and thus they are interdependent with Shanghai Composite. Interestingly, adjusted correlation coefficients between Shanghai Composite and other stock markets increased substantially during COVID-19 period indicating the presence of high contagion effect amongst the markets.
Journal: Global Business and Economics Review
Pages: 155-174
Issue: 2
Volume: 28
Year: 2023
Keywords: COVID-19; stock markets; Asian economies; DCC-MGARCH model; contagion.
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Template-Type: ReDIF-Article 1.0
Author-Name: Yahya Marei
Author-X-Name-First: Yahya
Author-X-Name-Last: Marei
Author-Name: Mohammad Al Bahloul
Author-X-Name-First: Mohammad Al
Author-X-Name-Last: Bahloul
Author-Name: Adel Almasarwah
Author-X-Name-First: Adel
Author-X-Name-Last: Almasarwah
Author-Name: Ashraful Alam
Author-X-Name-First: Ashraful
Author-X-Name-Last: Alam
Title: The relation between innovation and earnings management: evidence for the UK
Abstract:
This paper seeks to investigate the potential utilisation of research and development expenses by executives of innovative firms in the UK economy as a means of manipulating financial statement users. This study uses discretionary accruals and abnormal activities as proxies for earnings management and research and development as a proxy for innovation. This study finds dissimilar results for the discretionary accrual and abnormal activity models, it conducts additional analysis that accounts for the innovation to beat the earnings group, and refers to this group as the 'downward' group; another analysis accounts for the innovation to reduce earnings, and refers to this group as the 'upward' group. The results suggest that there is a negative association between discretionary accruals and downward innovation and finds a similar relationship in abnormal activities and the downward group, which indicates the referential value of beating earnings over innovation. This study also documented that innovative firms engage more in manipulation than non-innovative firms.
Journal: Global Business and Economics Review
Pages: 16-40
Issue: 1
Volume: 29
Year: 2023
Keywords: innovation; real and accruals earnings management; incentives; manipulation; UK.
File-URL: http://www.inderscience.com/link.php?id=131939
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Template-Type: ReDIF-Article 1.0
Author-Name: Reem El Sherif
Author-X-Name-First: Reem El
Author-X-Name-Last: Sherif
Author-Name: Charles Komla Delali Adjasi
Author-X-Name-First: Charles Komla Delali
Author-X-Name-Last: Adjasi
Author-Name: Michael Graham
Author-X-Name-First: Michael
Author-X-Name-Last: Graham
Title: FDI, gender spillovers and firm productivity: the Namibian case
Abstract:
The benefits of FDI to domestic firms encompass technology and knowledge diffusion, known as spillovers. Knowledge transmission from MNCs can largely differ between total labour and female labour, yet this critical distinction remains a void in the literature. Using data from the World Bank Enterprises Survey and a new measure of spillovers to capture the gender dimension, this study provides empirical evidence on the impact of FDI spillovers on domestic firm productivity in both Namibia's manufacturing and services sectors. The study finds a general negative effect of gender spillovers on domestic services firms' productivity, and none in the manufacturing sector. However, the productivity effects of gender spillovers are positive when conditioned on managers' years of experience in both sectors as well as on technology in the manufacturing sector. These findings provide important policy implications on how technology and managerial expertise can be used to tap into the potential of female employees to absorb their productivity benefits.
Journal: Global Business and Economics Review
Pages: 66-106
Issue: 1
Volume: 29
Year: 2023
Keywords: MNC; productivity; gender; spillovers; services; Namibia.
File-URL: http://www.inderscience.com/link.php?id=131943
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:1:p:66-106

Template-Type: ReDIF-Article 1.0
Author-Name: Sarita Mishra
Author-X-Name-First: Sarita
Author-X-Name-Last: Mishra
Author-Name: Suresh Kumar Sahoo
Author-X-Name-First: Suresh Kumar
Author-X-Name-Last: Sahoo
Title: Determinants of security design in venture capital investment: a study on Indian start-ups
Abstract:
An imperfect competitive financial market has a few underlying problems such as an adverse selection and information asymmetry problem which is the same in the case of a venture capital (VC) investment deal. In these contexts, VC investors design their mode of financing to minimise the effect of the above issues. This study considers various contributing factors for selection decision of security design in different venture capital deal. In this regard, various venture capital method of investment in an entrepreneurial firm has been included in this study. Three categories of factors affect security choice by VC investors to invest in India: 1) firm characteristics including age of the firm, stage of the firm and type of industry; 2) VC characteristics include industry experience, total investment experience and past success experienced by the investors; 3) deal characteristics include size of investment, stage funding in various round, syndication and VC stake holding in entrepreneurial firm, revenue generated in previous investment. The statistical significance of these factors is accessed through multinomial logistic regression analysis across different categories of security choice undertaken by venture capitalist in Indian start-ups.
Journal: Global Business and Economics Review
Pages: 1-15
Issue: 1
Volume: 29
Year: 2023
Keywords: venture capital investment; security choice; multinomial logistic regression.
File-URL: http://www.inderscience.com/link.php?id=131944
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Template-Type: ReDIF-Article 1.0
Author-Name: Hadia Fakhreldin
Author-X-Name-First: Hadia
Author-X-Name-Last: Fakhreldin
Author-Name: Mahitab Shahin
Author-X-Name-First: Mahitab
Author-X-Name-Last: Shahin
Author-Name: Rania Miniesy
Author-X-Name-First: Rania
Author-X-Name-Last: Miniesy
Title: The impact of Facebook and Instagram on the growth of Egyptian MSMEs
Abstract:
This study examines the impact of using Facebook and Instagram on the growth of micro, small and medium enterprises (MSMEs) in Egypt. It uses both the social exchange theory and the task-technology fit theory to capture the different relationships and effects between the use of these two social media tools and the growth of MSMEs in Egypt. Growth is divided into financial growth (measured through the increase in sales) and non-financial growth (measured through customer engagement and brand performance). Linear regression and t-tests are conducted to identify and compare the effects of the use of social media platforms. Findings indicate that the use of social media has a positive effect on both financial and non-financial growth. Specifically, the use of Facebook has a greater impact on financial growth and brand performance, while the use of Facebook and Instagram combined has a higher effect on customer engagement.
Journal: Global Business and Economics Review
Pages: 41-65
Issue: 1
Volume: 29
Year: 2023
Keywords: brand performance; customer engagement; Egypt; Facebook; financial growth; Instagram; micro, small and medium enterprises; MSMEs; social media.
File-URL: http://www.inderscience.com/link.php?id=131945
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Template-Type: ReDIF-Article 1.0
Author-Name: Nurshamimi Sabli
Author-X-Name-First: Nurshamimi
Author-X-Name-Last: Sabli
Author-Name: Rosmini Mohd Aripin
Author-X-Name-First: Rosmini Mohd
Author-X-Name-Last: Aripin
Author-Name: Radziah Mahmud
Author-X-Name-First: Radziah
Author-X-Name-Last: Mahmud
Author-Name: Roszana Tapsir
Author-X-Name-First: Roszana
Author-X-Name-Last: Tapsir
Title: Fraudulent financial reporting analyses using Beneish model: evidence from Malaysian public companies
Abstract:
Increasing fraud cases are alarming, particularly during economic instability periods. In meeting the financial targets and secure financing to sustain business activities, companies may be involved in fraudulent activities. However, such unethical behaviour will adversely affect the sustainability of the business in the long run. Adopting agency theory, this study intends to explore the influence of firm characteristics and corporate governance attributes on the fraudulent financial reporting (FFR) proxied by Beneish model. Based on 754 firm-year observations from public listed companies in Bursa Malaysia from 2018 to 2020, it is found that only firm characteristics have influenced the inclination for fraudulent financial reporting activities. Apart from contributing additional knowledge to existing literature, this study is expected to provide valuable insights to the industry players in Malaysia to curb fraudulent activities through appropriate monitoring mechanisms, from both the firm characteristics and governance.
Journal: Global Business and Economics Review
Pages: 107-132
Issue: 1
Volume: 29
Year: 2023
Keywords: fraudulent financial reporting; FFR; firm characteristics; corporate governance; Beneish model.
File-URL: http://www.inderscience.com/link.php?id=131948
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Template-Type: ReDIF-Article 1.0
Author-Name: Adamu Yahaya
Author-X-Name-First: Adamu
Author-X-Name-Last: Yahaya
Author-Name: Fauziah Mahat
Author-X-Name-First: Fauziah
Author-X-Name-Last: Mahat
Author-Name: Mohammad Tukur Saidu
Author-X-Name-First: Mohammad Tukur
Author-X-Name-Last: Saidu
Author-Name: Umar Tijjani Babuga
Author-X-Name-First: Umar Tijjani
Author-X-Name-Last: Babuga
Title: Bank capital and liquidity creation: evidence from Sub-Saharan Africa
Abstract:
Liquidity creation is among the major function played by banks in advancing economic development within a country. This study seeks to examine the effect of bank capital on liquidity creation among Sub-Saharan African banks. Fifty listed banks are drawn across six SSA countries consisting of Nigeria, Ghana, South Africa, Zambia, Kenya, and Tanzania, based on their financial market strength within the region. The system-generalised method of moment (GMM) is the analysis technique used for inference in the study due to its ability to address endogeneity bias and provide consistent findings. The findings from the study revealed a significant positive correlation between bank capital and liquidity creation. The study suggests that banks should always comply with regulatory capital guidelines provided by regulatory authorities to maintain their critical role of liquidity creation in the economy.
Journal: Global Business and Economics Review
Pages: 367-387
Issue: 4
Volume: 28
Year: 2023
Keywords: tier 1 capital; cat_fat; cat_nonfat; deposit ratio; loan ratio; system GMM.
File-URL: http://www.inderscience.com/link.php?id=131183
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Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj Chaudhary
Author-X-Name-First: Pankaj
Author-X-Name-Last: Chaudhary
Title: Women directors, CEO duality and board structure: case of Indian firms' capital structure dynamism
Abstract:
We investigate the impact of women directors, CEO duality, and board structure on capital structure dynamism for Indian firms. We consider top non-financial BSE Group A firms for the time 2010-2019. We use dynamic panel data methodology to deal with endogeneity concerns that are prevalent in corporate finance variables. The board independence and women directors are positively related to the SOA. Their presence is associated with the faster adjustments of the firms towards the optimum capital structure. On the other hand, board size and CEO duality are negatively associated with the SOA. We further noticed that the speed of adjustment for the strong governance firms is much faster than the weak governance firms. We conclude that the prospective investors should study the governance system of the companies before investing and place a premium on the firms with a good governance system.
Journal: Global Business and Economics Review
Pages: 347-366
Issue: 4
Volume: 28
Year: 2023
Keywords: capital structure; speed of adjustment; SOA; women director; board of directors; CEO duality.
File-URL: http://www.inderscience.com/link.php?id=131184
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Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Yadav
Author-X-Name-First: Ajit
Author-X-Name-Last: Yadav
Author-Name: Anindita Chakraborty
Author-X-Name-First: Anindita
Author-X-Name-Last: Chakraborty
Title: Synthesis of the effect of investor sentiment on stock returns: a systematic review
Abstract:
The effect of investor sentiment on stock returns is a topic of long-standing interest amongst behavioural economists. This paper systematically reviews the literature on the effect of investor sentiment on stock returns. We have systematically reviewed 107 selected studies and analysed them based on the year, journal of publication, country of sample data, study type, techniques employed, and citations. The literature analysis reveals the dearth of literature on the sentiment-return relationship in developing economies. It also highlights that there exists no set consensus on the sentiment-return relationship along with a lack of clear-cut distinction between the effect of components (rational or irrational) of investor sentiment on the stock performance. It also questions whether the investors can hedge against future risk and whether distinct return patterns are based upon the lead-lag variation or is merely the effect of the optimistic exuberance of the investors.
Journal: Global Business and Economics Review
Pages: 425-446
Issue: 4
Volume: 28
Year: 2023
Keywords: investor sentiment; stock returns; stock markets; mispricing; trading behaviour; asset pricing; measuring sentiment.
File-URL: http://www.inderscience.com/link.php?id=131193
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:4:p:425-446

Template-Type: ReDIF-Article 1.0
Author-Name: Biswajit Prasad Chhatoi
Author-X-Name-First: Biswajit Prasad
Author-X-Name-Last: Chhatoi
Author-Name: Sharada Prasad Sahoo
Author-X-Name-First: Sharada Prasad
Author-X-Name-Last: Sahoo
Author-Name: Durga Prasad Nayak
Author-X-Name-First: Durga Prasad
Author-X-Name-Last: Nayak
Title: Academic footprint of 'financial literacy and financial inclusion': a review and future research agenda
Abstract:
Despite the substantial interest by research geographer, experts, policymakers and the World Bank, there are still atypical and disintegrated theories of financial literacy and financial inclusion (FLFI) as the research domain is still emerging. In response, the objective of this research is to review and synthesise FLFI research and to suggest directions for future research. We review certified knowledge (journal articles) published during the first two decades of the 21st century. The research on FLFI is fragmented and has emerged in the 21st century in diverse directions. The current research unearths key publication outlets and articles, theoretical and methodological approaches and major variables, and several themes of FLFI literature. The findings also suggest future research direction in FLFI and themes associated to them. The current research is an attempt to summarise the current state of the FLFI literature and unearths future research direction that requires immediate attestation.
Journal: Global Business and Economics Review
Pages: 447-468
Issue: 4
Volume: 28
Year: 2023
Keywords: financial literacy; financial inclusion; systematic literature review; financial awareness; financial services.
File-URL: http://www.inderscience.com/link.php?id=131195
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:4:p:447-468

Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson Owusu
Author-X-Name-Last: Junior
Author-Name: Anokye Mohamed Adam
Author-X-Name-First: Anokye Mohamed
Author-X-Name-Last: Adam
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Title: Asymmetric stock-bond interrelationships in Islamic markets: EEMD-based frequency-dependent and causality analyses
Abstract:
We examine the stock-bond interrelations using decomposed return series of stocks and bond yield in Islamic markets. We aim to establish the bi-directional relationships between the two assets classes amid the financial market turmoil consequentially presented to the world by the COVID-19 pandemic. We employ the ensemble empirical mode decomposition and quantile-in-quantile regression techniques to daily data between 23 November 2015 and 8 September 2021. We reveal that the stock-bond connection is bi-directional and varies across quantiles in Islamic markets. We submit that in the medium – long-term of market stress, Islamic stocks and bonds are negatively interrelated and offer diversification opportunities to international investors who seek to maximise returns on their portfolio whiles minimising risks. The Pakistani market has few exceptions in the medium-term. We additionally find that stocks and bonds in Indonesia, Malaysia and Qatar can be diversifiers across all market conditions. The study's implications are further discussed.
Journal: Global Business and Economics Review
Pages: 388-424
Issue: 4
Volume: 28
Year: 2023
Keywords: ensemble empirical mode decomposition; EEMD; QQR; Islamic markets; quantile-in-quantile regression.
File-URL: http://www.inderscience.com/link.php?id=131197
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Template-Type: ReDIF-Article 1.0
Author-Name: Agim Kukeli
Author-X-Name-First: Agim
Author-X-Name-Last: Kukeli
Author-Name: Robert C. Forrester
Author-X-Name-First: Robert C.
Author-X-Name-Last: Forrester
Author-Name: Fitim Deari
Author-X-Name-First: Fitim
Author-X-Name-Last: Deari
Author-Name: John E. Martinez
Author-X-Name-First: John E.
Author-X-Name-Last: Martinez
Title: Non-performing loans in Central-East European countries: investigation of macroeconomic, policy, and global risk determinants
Abstract:
This study investigates the impact of macroeconomic, policy, and global risk variables on non-performing loans (NPLs) for 18 Central-East European Countries (CEEC) over 26 years (1995-2020). The study uses the method of unbalanced panel data analysis. Results reveal that comprehensive triple-factor analyses explain NPLs variation for the period and countries included in this study. We find that an increase in GDP growth, inflation, and trade decrease NPLs while an increase in credit availability, lending rate, and exchange rate increase NPLs. We find that an increase in Euro-area GDP growth and unemployment rate will increase NPLs. These effects are sensitive to both pre-and post-US Great Recession and for middle-income/high-income countries. The novelty of this study rests on being the first to investigate economy-wide aggregate factors' impact on NPLs. and confirming that there is room for policymakers to mitigate bad loans before and when they become a problem.
Journal: Global Business and Economics Review
Pages: 265-286
Issue: 3
Volume: 29
Year: 2023
Keywords: macroeconomic variables; non-performing loans; NPLs; unbalanced panel data analysis; global risk variables.
File-URL: http://www.inderscience.com/link.php?id=133286
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:3:p:265-286

Template-Type: ReDIF-Article 1.0
Author-Name: Tarek Chebbi
Author-X-Name-First: Tarek
Author-X-Name-Last: Chebbi
Author-Name: Waleed Hmedat
Author-X-Name-First: Waleed
Author-X-Name-Last: Hmedat
Title: The announcements of unconventional monetary policies and sovereign bond liquidity premia
Abstract:
This article makes an original assessment of the ECB's asset purchase program effects on the sovereign bond liquidity premia in selected Euro area periphery countries by employing an event-study analysis during the period of 2009-2015. We provide evidence that monetary news emerged as a key determinant in bond market liquidity as measured by the CDS-bond basis. More specifically, the estimates show that all events were effective in countering upward pressure on Italian liquidity premia. Our findings show also robust and economically significant impact of events associated with securities markets program and outright monetary transactions on the Italian and Spanish liquidity premiums. Alternatively, some insights gained from our study include an imperative for a careful effect identification and the review of the legitimacy of the perfection of bid ask spreads. Surprisingly, the information contained in unconventional monetary announcements does not matter for assessing the liquidity dynamics of the 10-year sovereign bonds.
Journal: Global Business and Economics Review
Pages: 287-315
Issue: 3
Volume: 29
Year: 2023
Keywords: monetary policy; asset purchases; European Central Bank; ECB; bond markets; liquidity.
File-URL: http://www.inderscience.com/link.php?id=133287
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Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Tevfik Kartal
Author-X-Name-First: Mustafa Tevfik
Author-X-Name-Last: Kartal
Author-Name: Serpil Kılıç Depren
Author-X-Name-First: Serpil Kılıç
Author-X-Name-Last: Depren
Author-Name: Özer Depren
Author-X-Name-First: Özer
Author-X-Name-Last: Depren
Title: Nexus between credit default swap spreads and foreign exchange rates: evidence from BRICST, E7, MINT and Fragile Five countries
Abstract:
The study investigates the nexus between credit default swap (CDS) spreads and foreign exchange (FX) rates in leading emerging countries, most of which CDS spreads are high and volatile. In this context, six leading emerging countries are included, daily data between October 8, 2004 and July 23, 2021 is used, nonlinear econometric models such as wavelet coherence (WC), Granger causality in quantiles (GCQ), and quantile-on-quantile regression (QQR) approaches are applied, and quantile regression (QR) is performed for robustness checks. The WC results show that there is bidirectional nexus between the CDS spreads and the FX rates. While the CDS spreads drive the FX rates until 2012, the FX rates drive the CDS spreads after this date. Also, the GCQ and QQR outcomes present that the nexus exists in almost all quantiles excluding middle quantiles (0.35, 0.40, 0.45, 0.50) and the highest quantile (0.95) for some countries whereas country-based results change.
Journal: Global Business and Economics Review
Pages: 380-403
Issue: 3
Volume: 29
Year: 2023
Keywords: CDS spreads; FX rates; emerging countries; nonlinear approaches.
File-URL: http://www.inderscience.com/link.php?id=133288
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:3:p:380-403

Template-Type: ReDIF-Article 1.0
Author-Name: Natália Teixeira
Author-X-Name-First: Natália
Author-X-Name-Last: Teixeira
Author-Name: Alexandre Correia
Author-X-Name-First: Alexandre
Author-X-Name-Last: Correia
Author-Name: Rui Vinhas da Silva
Author-X-Name-First: Rui Vinhas da
Author-X-Name-Last: Silva
Author-Name: Leandro Pereira
Author-X-Name-First: Leandro
Author-X-Name-Last: Pereira
Author-Name: Sérgio Vinhas da Silva
Author-X-Name-First: Sérgio Vinhas da
Author-X-Name-Last: Silva
Title: Financial innovation as a response to crisis - the case of catastrophe bonds
Abstract:
Large fluctuations in stock markets, caused by financial problems that may originate in the sector itself, as was the case of the 2007-2009 crisis, or originate in other events, as was the case of the 2020 pandemic that led to a sharp drop in the stock market between the first and second quarter of that year, lead market players to look for instruments that can prevent large losses. This study aims to understand whether innovative instruments such as insurance-linked securities, more specifically catastrophe bonds, can be an alternative to other more traditional instruments. For this purpose, Pearson's coefficient was used to analyse the relationship between the Dow Jones average yearly rate of return variable, between 2001 and 2020, and bonds and securities issued in the USA, between 2001 and 2020. The results showed a strong or tending to strong positive correlation during a specific period of time.
Journal: Global Business and Economics Review
Pages: 316-331
Issue: 3
Volume: 29
Year: 2023
Keywords: insurance-linked securities; ILS; catastrophe bonds; financial innovation; financial crisis; Pearson correlation coefficient.
File-URL: http://www.inderscience.com/link.php?id=133289
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Template-Type: ReDIF-Article 1.0
Author-Name: Abderazak Bakhouche
Author-X-Name-First: Abderazak
Author-X-Name-Last: Bakhouche
Author-Name: Teheni El Ghak
Author-X-Name-First: Teheni El
Author-X-Name-Last: Ghak
Title: Impact of social progress on bank stability
Abstract:
This paper examines how social progress and its dimensions, i.e., basic human needs, foundations of well-being, and opportunity, play a significant role in shaping the financial stability of banking systems. It empirically assesses the viability of three bank-level transmission channels: efficiency, diversification and competition, through which social progress propagates its effects on bank stability. Using bank-level data for 815 commercial banks from 49 countries during the 2011-2019 period, the results show that heightened social progress positively affects bank stability. Furthermore, the impact of social progress on bank stability can be realised through efficiency and diversification as conduits, with little evidence being found for the competition conduit. Findings support that policy should consider social progress-based prescriptions beyond traditional GDP growth models to bolster bank stability.
Journal: Global Business and Economics Review
Pages: 332-379
Issue: 3
Volume: 29
Year: 2023
Keywords: bank stability; competition; diversification; efficiency; social progress.
File-URL: http://www.inderscience.com/link.php?id=133290
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:3:p:332-379

Template-Type: ReDIF-Article 1.0
Author-Name: Sylvia Gottschalk
Author-X-Name-First: Sylvia
Author-X-Name-Last: Gottschalk
Author-Name: Bertrand Ndang
Author-X-Name-First: Bertrand
Author-X-Name-Last: Ndang
Title: Institutional and geopolitical aspects of bond spreads impacts on corporate capital structure in emerging markets
Abstract:
This paper investigates the impacts of institutional, geographical, and political determinants of corporate capital structure in emerging economies, whilst controlling for macro-economic and firm-level factors, particularly corporate bond spreads. The development finance literature has established that a country's financial and legal systems have significant impacts on the capacity of its private sector to raise external investment funding. Our results show that, when macroeconomic and firm-level factors are controlled for, most institutional variables have no significant impact on capital structure, with the exception of regulatory quality. The type of financial system and the legal framework have hardly any impact on capital structure. Our results also address the endogeneity issue between corporate bond spreads and capital structure, and show that both variables interact significantly with each other. Firm-specific variables such as profitability, tangibility and macroeconomic performance were found to be the common determinants of both leverage and bond spread.
Journal: Global Business and Economics Review
Pages: 266-297
Issue: 3
Volume: 28
Year: 2023
Keywords: capital structure; corporate bond spread; emerging markets; bank-based vs. market-based economies; governance indicators; financial systems; economic and political institutions; simultaneous equations models.
File-URL: http://www.inderscience.com/link.php?id=129996
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:3:p:266-297

Template-Type: ReDIF-Article 1.0
Author-Name: Pei Yin Wong
Author-X-Name-First: Pei Yin
Author-X-Name-Last: Wong
Author-Name: Yee Peng Chow
Author-X-Name-First: Yee Peng
Author-X-Name-Last: Chow
Title: Macroeconomic uncertainty and stock price crash risk: the moderating roles of operating performance and investor sentiment
Abstract:
This paper investigates the association between macroeconomic uncertainty and stock price crash risk and the two potential mechanisms through which the former may affect the latter, namely firms' operating performance and firm-specific investor sentiment, based on a sample of listed firms from six Asia-Pacific countries (Japan, Singapore, South Korea, Malaysia, China and Indonesia) for the period 2009 to 2019. Sub-sample analyses are also conducted, where the sample firms are segregated into developed and developing countries. The empirical results show that macroeconomic uncertainty has a significant positive relationship with stock price crash risk for the full sample and firms in both the developed and developing countries. Subsequent analyses reveal that good operating performance strengthens the positive relationship between these variables for the full sample but the opposite holds true for firms in the developing countries. Furthermore, we find that higher firm-specific investor sentiment strengthens the positive association between these variables for the full sample and firms in the developing countries.
Journal: Global Business and Economics Review
Pages: 233-265
Issue: 3
Volume: 28
Year: 2023
Keywords: Asia-Pacific; investor sentiment; macroeconomic uncertainty; operating performance; stock price crash risk.
File-URL: http://www.inderscience.com/link.php?id=129999
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Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Author-Name: Yongseung Han
Author-X-Name-First: Yongseung
Author-X-Name-Last: Han
Title: Is there a relation between stock markets and climate change?
Abstract:
While economic growth has resulted in a secular upward trend in the performance of the stock market, the associated rise in economic activity has been responsible for the increase in carbon dioxide (CO<SUB align="right"><SMALL>2</SMALL></SUB>) emissions. The rise in emission levels has contributed to the phenomenon of global warming or climate change. Conversely, climate change may affect equity markets by the uncertainty which it produces. What is hypothesised in this study is that there should be an observable long-term secular trend in the US equity markets, and there should also be the seasonal variations described by other researchers. Taking this one step further, the increased CO<SUB align="right"><SMALL>2</SMALL></SUB> emissions, if correlated with increased private productivity, should result in higher values for the underlying equities, than would be captured by a time linear time trend. Thus, this paper empirically examines the two-way relationship of variations in temperatures with the variations in equity market indices. The results provide evidence that there is a strong causal relationship from the changes in equity market indices to the changes in temperature levels, but there is no causal relationship in the opposite direction.
Journal: Global Business and Economics Review
Pages: 318-332
Issue: 3
Volume: 28
Year: 2023
Keywords: stock market; CO<SUB align="right"><SMALL>2</SMALL></SUB>; global warming; cointegration; causality test.
File-URL: http://www.inderscience.com/link.php?id=130001
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:3:p:318-332

Template-Type: ReDIF-Article 1.0
Author-Name:  Dipika
Author-X-Name-First: 
Author-X-Name-Last: Dipika
Author-Name: Shveta Singh
Author-X-Name-First: Shveta
Author-X-Name-Last: Singh
Title: Are broker-sold funds flows sensitive to fund performance or not? Evidence from Indian mutual funds market
Abstract:
The primary purpose of the study is to investigate whether funds flows are sensitive to fund performance or not and to gain insight into how investors from different fund categories react to funds flow and performance relationships in the broker-sold segment. By using the panel dataset, the sample of 138 surviving open-ended regular mutual funds from April 2014 to March 2018 is considered. The study assesses the evidence that past performance has a significant positive influence on the fund flow and different categories have different level of investor sophistication through Sirri and Tufano (1998) fractional flow model, piecewise regression and Fama and MacBeth (1973) approach. The study's findings can be used by the regulatory bodies and policymakers to develop effective regulations in order to increase market penetration, investor awareness, and transparency. The findings of the study assist the various stakeholders in understanding the behaviour pattern of investors while making an investment decision.
Journal: Global Business and Economics Review
Pages: 470-491
Issue: 4
Volume: 29
Year: 2023
Keywords: Indian mutual fund; equity fund; fund flows; fund performance; balanced funds; raw return; fund age.
File-URL: http://www.inderscience.com/link.php?id=134357
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:470-491

Template-Type: ReDIF-Article 1.0
Author-Name: Afkar Majeed
Author-X-Name-First: Afkar
Author-X-Name-Last: Majeed
Author-Name: Rohaida Basiruddin
Author-X-Name-First: Rohaida
Author-X-Name-Last: Basiruddin
Author-Name: Salman Khalid
Author-X-Name-First: Salman
Author-X-Name-Last: Khalid
Title: Financial reporting quality, audit quality and idiosyncratic volatility: moderating role of family ownership concentration
Abstract:
This study explores the relationship between financial reporting quality and audit quality on idiosyncratic volatility. The study also analyses the moderating role of family ownership concentration (FOC) on financial reporting quality and idiosyncratic volatility. This study uses a sample of 726 firm-year observations of non-financial firms listed in the PSX 100 index of Pakistan's stock market from 2009 to 2019. The study uses the system-generalised method of moment analysis method. The main findings indicate that low financial reporting quality negatively and significantly affects idiosyncratic volatility. In contrast, audit quality positively and substantially impacts idiosyncratic volatility. Additionally, FOC moderates the relationship between financial reporting and idiosyncratic volatility. These findings will help regulators advance policies that can improve the informativeness of stock prices. Focusing on Pakistan, a developing market, this study adds value to the existing literature, as most previous evidence was derived from the developed markets. Moreover, the moderating role of FOC is not frequently investigated.
Journal: Global Business and Economics Review
Pages: 492-508
Issue: 4
Volume: 29
Year: 2023
Keywords: idiosyncratic volatility; financial reporting quality; audit quality; family ownership concentration; FOC; system generalised method of moment; Pakistan stock market.
File-URL: http://www.inderscience.com/link.php?id=134359
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:492-508

Template-Type: ReDIF-Article 1.0
Author-Name: Wafa Hadjmohamed
Author-X-Name-First: Wafa
Author-X-Name-Last: Hadjmohamed
Author-Name: Abdelfettah Bouri
Author-X-Name-First: Abdelfettah
Author-X-Name-Last: Bouri
Title: Investor sentiment and firm characteristics
Abstract:
Baker and Wurgler (2006) have shown that securities that are difficult to value and have high arbitrage costs are more affected by investor sentiment. Indeed, we study the hypothesis that the securities of young, small, less profitable, less tangible, low dividend and high sales growth firms are the most vulnerable to investor sentiment. Using a VAR model, we find that in the Tunisian market, high sentiment leads to low future returns for the securities of large firms, the youngest, the least profitable, the least tangible, paying lower dividends and with lower sales growth. Furthermore, past returns with inverse characteristics can predict investor sentiment. Our findings also have practical investment and policy implications for investors and corporate decision makers, but also for policy makers in their assessment of financial fundamentals, hence for efficient market theory.
Journal: Global Business and Economics Review
Pages: 509-524
Issue: 4
Volume: 29
Year: 2023
Keywords: sentiment; returns; firm characteristics; VAR model; Tunisian market.
File-URL: http://www.inderscience.com/link.php?id=134360
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:509-524

Template-Type: ReDIF-Article 1.0
Author-Name: Mercy Orellana
Author-X-Name-First: Mercy
Author-X-Name-Last: Orellana
Author-Name: Rodrigo Mendieta
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Mendieta
Author-Name: Santiago Pozo Rodríguez
Author-X-Name-First: Santiago Pozo
Author-X-Name-Last: Rodríguez
Author-Name: Sofía Vanegas
Author-X-Name-First: Sofía
Author-X-Name-Last: Vanegas
Author-Name: Joselin Segovia
Author-X-Name-First: Joselin
Author-X-Name-Last: Segovia
Title: The business cycle in Ecuador: an analysis of stylised facts before and after dollarisation
Abstract:
This study examines stylised facts related to the business cycle in Ecuador for the period of 1990-2019. To reflect on the dollarisation process that the country went through by the end of 1999, the analysis is conducted for two sub-periods: 1990-1999 and 2000-2019. The paper investigates a wide range of macroeconomic variables for Ecuador, including variables regarding demand, the labour market, nominal variables, and variables related to an open economy. The sensitivity of correlations is studied through two detrending techniques: 1) the modified Hodrick-Prescott (MHP) filter; 2) a Hodrick-Prescott filter with a smoothing parameter of 1,600. The results reveal substantial changes in the cyclical behaviour of the Ecuadorian economy under dollarisation. In particular, the country shows greater dependence on the international market and high vulnerability to demand shocks.
Journal: Global Business and Economics Review
Pages: 298-317
Issue: 3
Volume: 28
Year: 2023
Keywords: economic cycle; Ecuador; dollarisation.
File-URL: http://www.inderscience.com/link.php?id=130009
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:3:p:298-317

Template-Type: ReDIF-Article 1.0
Author-Name: Md. Atiqur Rahman
Author-X-Name-First: Md. Atiqur
Author-X-Name-Last: Rahman
Author-Name: Salah Uddin Rajib
Author-X-Name-First: Salah Uddin
Author-X-Name-Last: Rajib
Title: Does microfinance foster development? A critical review of literature
Abstract:
We reviewed literature on impacts of microfinance on poverty, women's empowerment, social welfare of participants, and on macroeconomic impacts of microfinance. Forty articles and five books published between 1996 and 2021 were reviewed. Researchers generally agree that microfinance increases consumption and generates income for participants. However, several studies find improvement in consumption to be led by misappropriation of microcredit. Sufficiency of income generated is also questioned. Researchers agree that generating savings and developing entrepreneurship are prerequisites for sustainable escalation from poverty through microfinance. The impact of microfinance on women's empowerment and social welfare remains ambiguous. The popularity of the non-subsidised microfinance model raised concern about the compromise of MFI social missions. At a macro level, microfinance has trivial positive impact on GDP. It slightly reduces poverty headcount, and income inequality, and reduces production efficiency in the short run. Significant regional differences in micro and macro level impacts have been observed. We also identified future research avenues.
Journal: Global Business and Economics Review
Pages: 405-428
Issue: 4
Volume: 29
Year: 2023
Keywords: microfinance; microcredit; poverty; women empowerment; mission drift; macroeconomic development; GDP; literature review.
File-URL: http://www.inderscience.com/link.php?id=134362
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:405-428

Template-Type: ReDIF-Article 1.0
Author-Name: Harshika Jain
Author-X-Name-First: Harshika
Author-X-Name-Last: Jain
Author-Name: Reena Nayyar
Author-X-Name-First: Reena
Author-X-Name-Last: Nayyar
Title: Analysing the impact of financial constraints and group affiliation on mode of payment and announcement returns of the Indian acquiring companies
Abstract:
This study aims at assessing the impact of financial constraints on mode of payment employed and announcement returns of the acquiring companies in India. Further, the study also aims at analysing the combined impact of financial constraints and group affiliation on the mode of payment and announcement returns of the acquiring companies. It is found that the likelihood of stock financing on the part of acquiring companies increases with the increase in the financial constraints and the market reacts positively to such stock funded acquisitions. Thus, the study is able to validate the opportunity cost of capital theory. However, the financial advantage theory with respect to the mode of funding employed by group affiliated financially constrained acquiring companies cannot be substantiated by the results of the study.
Journal: Global Business and Economics Review
Pages: 429-451
Issue: 4
Volume: 29
Year: 2023
Keywords: mergers; acquisitions; financial constraints; group affiliated; mode of payment; event study; announcement returns; India.
File-URL: http://www.inderscience.com/link.php?id=134363
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:429-451

Template-Type: ReDIF-Article 1.0
Author-Name: A.N. Vijayakumar
Author-X-Name-First: A.N.
Author-X-Name-Last: Vijayakumar
Title: Declining trade interest in Indian commodity derivatives: a survey-based study on cardamom futures contract
Abstract:
Agri-plantation commodity futures contracts provide an opportunity for transparent price discovery and hedging to market participants in the commodity ecosystem. In this endeavour, the market regulator of derivatives and the government has been taking several measures for improving trade volumes, market efficiency and to protect the interest of trade participants. However, commodity futures contract volumes at the Indian Commodity Exchange has been experiencing a consistent fall in trade. This paper focusing on high-value cardamom futures contracts explored reasons for declining trade interest and falling trade volumes. This study with survey and impact of the event finds revised quality norms for fresh deposits of cardamom at accredited warehouses, higher cost of testing quality, raise in margin rate resulted in declining trading interest amongst market participants. The study also recommends appropriate policy to recognise exchange specific commodity trade norms considering Spices Board's e-auction to benefit market participants. This would facilitate transparent and competitive price discovery and an opportunity for managing price risk through the hedging process.
Journal: Global Business and Economics Review
Pages: 333-346
Issue: 3
Volume: 28
Year: 2023
Keywords: cardamom futures; quality norms; margin money; commodity exchange; trading interest.
File-URL: http://www.inderscience.com/link.php?id=130012
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Handle: RePEc:ids:gbusec:v:28:y:2023:i:3:p:333-346

Template-Type: ReDIF-Article 1.0
Author-Name: Harsandaldeep Kaur
Author-X-Name-First: Harsandaldeep
Author-X-Name-Last: Kaur
Author-Name: Muhammad Tanveer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Tanveer
Author-Name: Haider Mahmood
Author-X-Name-First: Haider
Author-X-Name-Last: Mahmood
Author-Name: Kanwal Roop Kaur
Author-X-Name-First: Kanwal Roop
Author-X-Name-Last: Kaur
Title: Brand's visual identity on social media platforms: a content analysis
Abstract:
This paper investigates how brands delineate their visual identity in avatar (profile photo) and header (cover photo) on social media platforms. The content analysis of the top 50 Indian brands was conducted from 116 screenshots taken from the brand's Facebook, Twitter, and YouTube page to determine the visual identity exhibited by brands on social media platforms. We found the actual use of visual elements, i.e., logotype, text type, typography, colour, and photographic elements employed by brands in avatar and header to demonstrate their visual identity. The findings also revealed that brands are inconsistent in wielding their overall visual identity across three social media platforms. Designers and marketers are suggested to position their brand across social media platforms strategically.
Journal: Global Business and Economics Review
Pages: 452-469
Issue: 4
Volume: 29
Year: 2023
Keywords: content analysis; logo; social media; visual identity; brands.
File-URL: http://www.inderscience.com/link.php?id=134368
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:452-469

Template-Type: ReDIF-Article 1.0
Author-Name: Faiza Liaqat
Author-X-Name-First: Faiza
Author-X-Name-Last: Liaqat
Author-Name: Sadia Farooq
Author-X-Name-First: Sadia
Author-X-Name-Last: Farooq
Author-Name: Muhammad Usman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Usman
Author-Name: Nasira Perveen
Author-X-Name-First: Nasira
Author-X-Name-Last: Perveen
Author-Name: Hafiza Muntaha Khalid
Author-X-Name-First: Hafiza Muntaha
Author-X-Name-Last: Khalid
Title: Economic freedom and financial performance of microfinance institutions: Asian perspective
Abstract:
This study aims at examining role of economic freedom in financial performance of Asian based MFIs. We have gathered data from 145 MFIs operating in 19 Asian countries during 2012-2018. Data on economic freedom and MFIs' financial performance have been collected from Heritage Foundation and MIX market respectively. System GMM is employed for data analysis due to endogeneity issues in dynamic panel data. Findings substantiate crucial role of various dimensions of economic freedom in MFIs' financial performance (i.e., business freedom, property rights, investment freedom, financial freedom, and trade freedom). Findings recommend MFIs to consider contextual factors before starting operations in any country, e.g., MFIs may prefer to operate in countries having higher investment freedom, business freedom, and financial freedom.
Journal: Global Business and Economics Review
Pages: 525-542
Issue: 4
Volume: 29
Year: 2023
Keywords: economic freedom; financial performance; microfinance institutions; MFIs; Asia.
File-URL: http://www.inderscience.com/link.php?id=134380
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Handle: RePEc:ids:gbusec:v:29:y:2023:i:4:p:525-542