Global Business and Economics Review (58 papers in press)

Regular Issues

• CROSS MARKET HERDING IN CHINESE, US AND CRUDE OIL MARKETS? QUANTILE REGRESSION ANALYSIS  
  by O.O.I. K.O.K. LOANG  
  Abstract: This study examines cross-market herding in Chinese and US markets from 2015 to 2020. It seeks to explore the impact of the crude oil market on Chinese and US. This study adopts cross-sectional absolute deviation to detect herding. This study employs quantile regression rather than OLS method to examine herding in different quantiles. The result shows that NYSE and NASDAQ are herded with each other. For Chinese markets, the bidirectional herding between Shanghai and Shenzhen tends to appear in median (Τ= 50%) and upper quantiles (Τ= 75% and 95%). The herding tendency of Shenzhen is higher than Shanghai and Nasdaq is higher than NYSE. The crude oil market can cause herding in US and Shanghai. The originality of this study contributes to academicians and practitioners in understanding the existence and tendency of cross-market herding. Investors shall aware that herding can be caused by the performance of other markets.
  Keywords: herding; stock market; Chinese market; US market; globalisation.
  DOI: 10.1504/GBER.2022.10044385
   
  
• Do women use annual reports differently than men? A Case of India  
  by Meena Bhatia 
  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.
  Keywords: announcements; emerging markets; financial statements; Ind AS; India.
  DOI: 10.1504/GBER.2023.10047978
   
  
• Efficiency and its determinants of systemically important Shadow Banks of India  
  by NANDITA BHATTACHARJEE, Ambika P. Pati 
  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. 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.
  Keywords: shadow banks; efficiency; determinants; India.
  DOI: 10.1504/GBER.2023.10048272
   
  
• Good Governance and Financial Crises: A Global Evidence  
  by Davoud Mahmoudinia, Behrouz Sadeghi Amroabadi 
  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 to 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.
  Keywords: good governance; financial crises; developing countries; developed countries; logit model.
  DOI: 10.1504/GBER.2023.10048351
   
  
• Are broker-sold funds flows sensitive to fund performance or not ? Evidence from Indian Mutual Funds Market  
  by Dipika, SHVETA SINGH 
  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 regulatory bodies and policymakers to develop effective regulations for increasing 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.
  Keywords: Indian mutual fund; equity fund; fund flows; fund performance; balanced funds; raw return; fund age.
  DOI: 10.1504/GBER.2023.10048353
   
  
• Financial Conservatism and Shareholders’ Value  
  by Ammara Yasmin, Abdul Rashid Abdul Rashid, Saba Kausar 
  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 to 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.
  Keywords: capital structure; net debt ratio; financial conservatism; zero leverage; shareholder’s value; business groups.
  DOI: 10.1504/GBER.2023.10048646
   
  
• Spillover Effect of Economic Risks, Globalization and Herding in GCC and Malaysian Islamic Markets during COVID-19  
  by O.O.I. K.O.K. LOANG  
  Abstract: This study examines the impact of economic risks and globalisation on herding in GCC and Malaysian markets before and during the pandemic. This study explores the spillover effect of the Saudi Arabia market over Islamic markets by using panel data and quantile regression. Panel-corrected standard error is adopted to rectify heteroscedasticity, and the data ranged from 2015 to 2021. The result shows that herding exists in Bahrain, Oman, Qatar, UAE and Malaysia during pre-pandemic, except in Kuwait and Saudi Arabia. The tendency of herding is more pronounced with the emergence of the pandemic. Trade freedom, investment freedom, financial freedom and economic freedom indices are significant to herding before and during the pandemic. The spillover effect of Saudi Arabia is shown in GCC markets except for the Malaysian market. This study assists the regulators and policymakers assess the determinants of herding as investors behave differently in a turbulent period. Analysts, individual investors and institutional investors can also benefit from this study to formulate a better investment strategy under the influence of economic risks and globalisation.
  Keywords: economic risks; globalisation; herding; GCC markets; COVID-19.
  DOI: 10.1504/GBER.2023.10048712
   
  
• Impact of Economic Transition on the Outreach of Microfinance Sector  
  by Samapti Guha, Chandralekha Ghosh 
  Abstract: Microfinance Institutions in different countries initiated the process of transformation from non-profit entity to not-for-profit entity after 2003 to 2004. Again in 2006 to 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 to 2007 and 2012 to 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 to 2007.
  Keywords: microfinance; outreach; self-sufficiency; confirmatory factor analysis; exploratory factor analysis; economic transition.
  DOI: 10.1504/GBER.2023.10048713
   
  
• Financial Reporting quality, audit quality and idiosyncratic volatility: Moderating role of family ownership concentration  
  by Afkar Majeed, Rohaida Basiruddin, Salman Khalid 
  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.
  Keywords: idiosyncratic volatility; financial reporting quality; audit quality; family ownership concentration; FOC; system generalised method of moment; Pakistan stock market.
  DOI: 10.1504/GBER.2023.10048761
   
  
• Non-performing Loans in Central-East European Countries: Investigation of Macroeconomic, Policy, and Global Risk Determinants  
  by Agim Kukeli, Robert Forrester, Fitim Deari, John Martinez 
  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 to 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.
  Keywords: macroeconomic variables; non-performing loans; NPLs; unbalanced panel data analysis; global risk variables.
  DOI: 10.1504/GBER.2023.10048807
   
  
• Using Product Space to Connect Local Products to Foreign Markets: Paths for Export Basket Diversification of the Brazilian state of Minas Gerais  
  by Otavio Rezende, Marcelo Andrade, Josiane Rafaella Faleiro, Leandro Collares, Ítalo Daldegan De Oliveira 
  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.
  Keywords: economic complexity; competitiveness; comparative advantage; product space; priority markets.
  DOI: 10.1504/GBER.2023.10049053
   
  
• Investor sentiment and firm characteristics  
  by Wafa Hadj Mohamed, Abdelfettah BOURI 
  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.
  Keywords: sentiment; returns; firm characteristics; VAR model; Tunisian market.
  DOI: 10.1504/GBER.2023.10049124
   
  
• The Announcements of Unconventional Monetary Policies and Sovereign Bond Liquidity Premia  
  by Tarek Chebbi, Waleed Hmedat 
  Abstract: This article makes an original assessment of the ECBs 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 to 2015. We provide evidence that monetary news emerge 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-years sovereign bonds.
  Keywords: monetary policy; asset purchases; ECB; bond markets; liquidity.
  DOI: 10.1504/GBER.2023.10049359
   
  
• Nexus between Credit Default Swap Spreads and Foreign Exchange Rates: Evidence from BRICST, E7, MINT, and Fragile Five Countries  
  by MUSTAFA TEVFIK KARTAL, Serpil Kilic Depren, Özer Depren 
  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.
  Keywords: CDS spreads; FX rates; emerging countries; nonlinear approaches.
  DOI: 10.1504/GBER.2023.10049730
   
  
• Does Microfinance Foster Development? A Critical Review of Literature  
  by Md. Atiqur Rahman, Salah Uddin Rajib 
  Abstract: We reviewed literature on impacts of microfinance on poverty, women 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. But 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. Impact of microfinance on women empowerment and social welfare remains ambiguous. Popularity of non-subsidised microfinance model raised concern about compromise of MFI social missions. In macro level, microfinance has trivial positive impact on GDP. It slightly reduces poverty headcount, and income inequality, and reduces production efficiency in short run. Significant regional differences in micro and macro level impacts have been observed. We also identified future research avenues.
  Keywords: microfinance; microcredit; poverty; women empowerment; mission drift; macroeconomic development; GDP; literature review.
  DOI: 10.1504/GBER.2023.10049901
   
  
• Analysing the impact of financial constraints and group affiliation on mode of payment and announcement returns of the Indian acquiring companies  
  by Harshika Jain, Reena Nayyar 
  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 part of acquiring companies’ increases with increase in the financial constraints and the market reacts positively to such stock funded acquisitions. Thus, the study is able to validate 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.
  Keywords: mergers; acquisitions; financial constraints; group affiliated; mode of payment; event study; announcement returns; India.
  DOI: 10.1504/GBER.2023.10049904
   
  
• Financial Innovation as a Response to Crisis - The case of Catastrophe Bonds  
  by Natália Teixeira, Alexandre Correia, Rui Vinhas Da Silva, Leandro Pereira, Sérgio Vinhas Da Silva 
  Abstract: Large fluctuations in stock markets, caused by financial problems that may originate in the sector itself, as was the case of the 2007 to 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 US, between 2001 and 2020. The results showed a strong or tending to strong positive correlation during a specific period of time.
  Keywords: insurance-linked securities; ILS; catastrophe bonds; financial innovation; financial crisis; Pearson correlation coefficient.
  DOI: 10.1504/GBER.2023.10050236
   
  
• Brand’s visual identity on social media platforms: a content analysis  
  by Harsandaldeep Kaur, Muhammad Tanveer, Haider Mahmood, Kanwal Roop Kaur 
  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.
  Keywords: content analysis; logo; social media; visual identity; brands.
  DOI: 10.1504/GBER.2023.10050406
   
  
• Efficiency Level of Zakat Funds for the Social Sector and Poverty alleviation in Indonesia  
  by Sri Herianingrum, Fatimatuzzahro Fatimatuzzahro, Tika Widiastuti, R. Moh. Qudsi Fauzi, Syed Alamdar Ali Shah 
  Abstract: This study aims to measure the efficiency of BAZNAS, LAZNAS and APBN funds. It uses input variables of total assets and operational costs and the output variables of funds received and disbursed using the data from 2002 to 2017 on data envelopment analysis (DEA) method. The average technical efficiency score of revenue and funds distributed by BAZNAS, LAZNAS is 80.30%. This means that there is a 19.7% chance that it can be optimised to achieve a perfect technical efficiency score. Meanwhile, the APBN received an efficiency score of 94.3%. Historically, the technical efficiency scores of BAZNAS and LAZNAS funds have fluctuated with a positive trend. Based on the results of multiple linear regressions, the effect of the efficiencies of BAZNAS, LAZNAS and APBN funds shows that their funds have a significantly negative effect on the poverty level.
  Keywords: National Amil Zakat Agency; BAZNAS; LAZNAS; APBN fund; data envelopment analysis; DEA; technical efficiency score; economy; Indonesia.
  DOI: 10.1504/GBER.2023.10050556
   
  
• A Bibliometric Analysis on Foreign Direct Investment  
  by Haitham Nobanee, Abeer Al Misleh, Lukas Christian Christnacht, Mohammed Bayzid, Salah Albeshr, Hiba Zaki Shanti 
  Abstract: Foreign direct investment is defined as expanding a business beyond one’s domestic country, is a continuously growing topic that has gained the attention of numerous scholars all around the world. This interest has developed as a result of the great economic and social impact FDI leaves in a society. The purpose of this paper is to present a bibliometric review on this topic including all papers published until 2020 as there is a need to have a comprehensive analysis on all literature that will help in identifying the literature gap and guide future researchers when conducting their research. The bibliometric analysis methodology was conducted on 4,525 articles between 1942 and 2020 on the subject of FDI. The data was extracted only from Scopus as we wanted to focus our attention on the leading worldwide used citation database that includes modern material. The top authors, countries, organisations, and documents were also identified.
  Keywords: foreign direct investment; FDI; economic growth; capital flow; globalisation; multinational enterprises.
  DOI: 10.1504/GBER.2023.10050902
   
  
• Impact of social progress on bank stability  
  by Abderazak Bakhouche, Teheni El Ghak 
  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 to 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.
  Keywords: bank stability; competition; diversification; efficiency; social progress.
  DOI: 10.1504/GBER.2023.10050903
   
  
• Modelling long memory dependence structure using FIGARCH-copula approach evidence from major Asian stock markets  
  by Pankaj Kumar Gupta, Prabhat Mittal 
  Abstract: Increased volatility in the stock markets has led the market to originate a new variety of techniques to predict markets efficiently. The aim of the study is to scrutinise the potential dependence among different Asian stock markets, using the FIGARCH copula approach. In the first step, the marginal distribution for the copula has been estimated with the best-fit approach using minimum AIC on the underlying assumptions of normal, Student-t and generalised error distribution (GED). The results indicate that Student-t best fits for the return series SHANGHAI and NIKKEI, while GED for the HANG SENG, KOSPI and NIFTY. In the next step, we have used Gaussian, Student-t, and Clayton copula to estimate the parameters and the dependence measures. The performance of the three copula distributions has been compared based on AIC and BIC criteria. We find t-copula performs better than the other two copula functions.
  Keywords: long memory; volatility forecasting; stock market; fractionally integrated-GARCH; copula.
  DOI: 10.1504/GBER.2023.10050904
   
  
• Earnings management and bank funding  
  by Van Dan Dang, Hoang Chung Nguyen 
  Abstract: This paper investigates the impact of earnings management on bank funding. Using a sample of Vietnamese commercial banks between 2007 and 2019, we reveal that greater earnings opacity of banks causes a significant drop in total bank funding. When decomposing total funding into its components, we find that wholesale funds are the primary driver of the result, while no significant effect of earnings manipulation on retail deposits is documented. Further analyses on bank heterogeneity indicate that the unfavourable impact of earnings opacity on banks’ wholesale funds is less pronounced for banks that are better-capitalised, more liquid, larger in size, more profitable, and less risky. Through this consistent pattern, we can conclude that the financial strength of banks may alleviate the adverse effect of earnings opacity on bank funding. Our findings firmly survive after a series of robustness tests.
  Keywords: bank funding; discretionary loan loss provisions; earnings opacity; retail deposits; wholesale funds.
  DOI: 10.1504/GBER.2024.10050905
   
  
• Debt-Based Financing: A Case Study of Malaysian Islamic Banks  
  by Abdul Muneem, Nor Fahimah Binti Mohd Razif, Abdul Karim Ali, Muhammad Ikhlas Rosele 
  Abstract: The present study aims to address the concept of debt-based financing from the Shariah perspective and to analyse the current practice of debt-based financing by the Islamic banks in Malaysia. A qualitative research approach is adopted using an in-depth study of the literature through classical and contemporary books to address the concept of debt-based financing. The practice of debt-based financing in Islamic banking is studied through the Islamic banks’ official websites. The present study reveals that the current Islamic banking system offers debt-based financing to the customers where the customers are liable to pay the debt through monthly instalments. However, the concept of dayn and the rights and responsibilities of a debtor is not clear to many customers, and the failure of fulfilling the obligation by the customers hinders the smooth operation of the Islamic banks. Moreover, debt-based financing is drawing more attention and interest among most Islamic banks as compared to equity-based financing which is creating more debt.
  Keywords: dayn; debt; debt-based contract; creditor; debtor; Islamic bank; Shariah.
  DOI: 10.1504/GBER.2023.10050906
   
  
• A Conceptual Approach: Relationship between crisis, resilience, and entrepreneurial actions  
  by Shikha Bhardwaj 
  Abstract: The paper intends to capture deeper understanding and insights of how crisis influence entrepreneurial behaviour. It reviews the conceptual and developmental papers on crisis management. To formulate and build a distinctive conceptual framework, a review of existing literature focused on entrepreneurship, crisis management and COVID-19 was undertaken. The study identifies the impact of coronavirus (COVID-19) on entrepreneurs, factors that drive entrepreneurial intention during crisis and their entrepreneurial actions. As a result, most of the research studies identity entrepreneurial resilience as a force behind entrepreneurial behaviour during crisis. The factors determining entrepreneurial intention include self-efficacy, positive emotions, growth mind set and fear of failure. The findings act as valuable groundwork for future research on crisis management and entrepreneurship. From social, managerial, policy makers and economic perspective, entrepreneurial action act as catalyst to bounce back from crisis. Therefore, an integrated collaborative support mechanism may result in rise of entrepreneurial actions even during crisis.
  Keywords: entrepreneurial action; resilience; crisis; entrepreneurial action; COVID-19.
  DOI: 10.1504/GBER.2024.10051204
   
  
• EFFECTS OF EXTERNAL AND INTERNAL INFLUENCES ON INTENTIONS TO AVOID SINGLE-USE PLASTIC BAGS  
  by Geetha Rajendran, Chandrasekaran Padmavathy 
  Abstract: The purpose of this research is to investigate the effects of external and internal factors on intentions to avoid single-use plastic bags. Data were collected using online survey from 703 consumers in India using convenience sampling method. The results indicated that green advertisements, retailers’ incentives, government policies (external factors), and extrinsic motivations and subjective norms (internal factors) had significant positive effects on intentions to avoid single-use plastic bags. The results of this study provide important implications to governments, policy makers, retailers, and the consumers to develop a sustainable eco-system.
  Keywords: single-use plastic bags; green advertisements; incentives; government policies; extrinsic motivations; subjective norms; sustainable consumption; India.
  DOI: 10.1504/GBER.2024.10051361
   
  
• Dynamic Effects of Crude Oil Price Shocks on Stock Markets and Exchange Rates: Evidence from Major Oil Importing Countries amid Russia-Ukraine Conflict  
  by Bhaskar Bagchi, BISWAJIT PAUL, RAKTIM GHOSH 
  Abstract: The recent Russia-Ukraine conflict is having a serious impact on global economic condition. At this context, the present paper attempts to study specifically the effects of the steep surge in crude oil prices on stock market indices and real effective exchange rates (REER) of the major five crude oil importing (in terms of net imports) countries namely Peoples Republic of China, India, Japan, Republic of Korea, and Germany. The paper applies the DCC — MGARCH (1, 1) model based on daily data to capture the effect of the Brent crude oil price shock that uses a linear combination of the univariate GARCH model with time-varying cross equation weights to model the conditional covariance matrix of the error terms. The result of the study reveals that there is a noteworthy short-run (DCCα1) and long-run (DCCβ1) volatility spillover effects running from Brent crude oil price to all the stock market indices along with REERs.
  Keywords: crude oil price; real effective exchange rate; REER; stock return; DCC-MGARCH; Russia; Ukraine.
  DOI: 10.1504/GBER.2024.10051651
   
  
• Financial revenues from land in Vietnam: Factors affecting their collection  
  by Pham Nam, Phan Thi Thanh Huyen 
  Abstract: The study aims to determine the factors affecting the collection of financial revenues from land. The study carried out a three-step survey through 400 householders to identify groups of influencing factors. Structural equation modelling (SEM) was used to assess the impact. Data checking was performed using SPSS20 and AMOS24 software. There are five groups of influencing factors. The group of human resources has the strongest impact; the group of people having financial obligations has the weakest impact on the realisation of financial revenues from land. To better realise financial revenue from land, it is necessary to strengthen human resources; complete the land database; adjust the level of land financial revenue; complete administrative procedures; raise the sense of law observance of people having land financial obligations.
  Keywords: affecting factors; collection; financial revenue; land; Vietnam.
  DOI: 10.1504/GBER.2024.10051660
   
  
• THE ROLE OF MICROFINANCE INSTITUTIONS DURING THE COVID-19 PANDEMIC  
  by Hasan H.A. Ashari, Trinandari Prasetyo Nugrahanti, Budi Joyo B.J.S. Santoso 
  Abstract: This study found that BPR was selective in extending credit to entrepreneurs in the micro, small and medium enterprise (MSME) category. BPR has played a role in the 'Enough' category. The order of role values from the highest score is BPR BUKU 3, 2, and 1 based on assets, within and outside Java based on location. Moreover, the domicile of the BPR in the regency or city does not have a significant difference.
  Keywords: role of rural banks; COVID-19 pandemic; micro finance institution.
  DOI: 10.1504/GBER.2024.10051850
   
  
• Earthquakes and Market Capitalization: A Historical Perspective Using Panel Data  
  by Andres Ramirez, Nezih Altay 
  Abstract: We test if earthquakes could create market value as companies invest to recover. Using a large firm-level data set spanning 299 earthquakes, in 15 years, in over 50 countries, we find evidence consistent with the creative destruction hypothesis. However, a closer look shows that earthquakes create value for firms in less developed countries (non-G8) while destroying value in developed countries (G8). We interpret this as a sign that innovation can be easier in poorer countries where the economies of scale of adopting new technologies are bigger. We also report a magnitude effect: large earthquakes tend to increase firm value while smaller earthquakes are associated with value destruction. We posit that large earthquakes trigger large corporate responses that increase productivity while smaller earthquakes are dealt with temporary measures. Finally, we report new moderators of the positive impact: multinationality of the firm, a country’s disaster preparedness and a country’s non-life insurance consumption.
  Keywords: market capitalisation; earthquakes damage; cross-country.
  DOI: 10.1504/GBER.2024.10052048
   
  
• Alternative corporate entrepreneurship strategies for improving firm performance using the analytical hierarchy process  
  by Indra Wahyudi, Arif Imam Suroso, Bustanul Arifin, Meika Syahbana Rusli, Rizal Syarief 
  Abstract: This research was aimed at recommending alternative corporate entrepreneurship strategies for entrepreneurial orientation and leadership to improve company performance. Using a qualitative method, the factors of corporate entrepreneurship, entrepreneurial orientation, and entrepreneurial leadership strategies for lubricant distributors were determined through the analytical hierarchy process (AHP). This research was conducted in the lubricant business industry in Indonesia using focus group discussions (FGD) and in-depth interviews with several experts comprising distribution company owners, top management employees, and the principals. Subsequently, the results showed that the most dominant actor in improving performance is entrepreneurial leadership, and the leading actor is the owner. The findings obtained indicate that increasing sales growth is the main objective of improving company performance.
  Keywords: analytic hierarchy process; corporate entrepreneurship; entrepreneurial leadership; entrepreneurial orientation; firm performance; lubricant business.
  DOI: 10.1504/GBER.2024.10052452
   
  
• Technical trading strategies return predictability and relative efficiency: Evidence from selected African stock markets.  
  by Kwame Osei-Assibey, Mweisho Nene 
  Abstract: We investigate the performance of several technical trading strategies in the stock markets of selected African economies and utilised the empirical evidence to rank the markets in terms of their efficiencies. The rationale for this study is simple: an asset whose historical prices fluctuate more randomly (relative to other assets) should offer lower profitable opportunities. Our momentum trading strategies (that also controlled for data snooping bias) generated significant number of profits for the Nigerian stock market, relative to the Egyptian and South African stock markets. We attributed our observation to the relationship between financial markets development and efficiency. Using our results, we ranked the South African stock market as relatively the most efficient, followed by the Egyptian and then the least efficient being the Nigerian market. We propose regular relative efficiency assessments across markets and regimes and discuss the benefits of such assessments to investors’ and policymakers’ decision making processes.
  Keywords: efficient markets; relative efficiency; technical trading strategies; Africa.
  DOI: 10.1504/GBER.2024.10052521
   
  
• Green Finance: A Bibliometric Analysis of Current Research Status, Development and Future Directions  
  by Shikha Bhatia, Nidhi SIngh, Sushma Vishnani 
  Abstract: The present study identifies the current research trends, gaps in the field of green finance and suggests future research scope on the subject. We used bibliometric analysis on the sample of 846 documents collected from the Scopus database. The study used all the documents developed between the years 1997 and 2021 for the scientific analysis of literature on green finance. We identified the most influencing articles based on their citations, co-citations networks, the importance of their publications, locations, sources within the network. The present study also discusses the current research themes, existing research gaps and identifies future research themes by using factorial analysis in biblioshiny software. The review of existing literature suggests that although research activities on green finance happened worldwide, more collaborative research work is required on multi-cultural contexts, comparative studies between developed and developing economies, risk assessment criteria’, business performance indicators, etc. Other future research themes identified in the study include the need for the conceptual framework to assess various aspects of green finance, impact on stakeholders’ outcomes, and value enhancements. The current study provides future research directions based on in-depth literature review and themes derived from the cluster analysis.
  Keywords: green finance; bibliometric analysis; factorial analysis; thematic coupling; Scopus.
  DOI: 10.1504/GBER.2024.10052610
   
  
• COVID-19 effect on the herding behaviour in the Indian stock market.  
  by Vikas Pandey, Shaurya Singh 
  Abstract: Investor psychology has often argued that subconscious factors play a crucial role in our decisions. One such factor is the herding behaviour of investors in stock markets. This paper attempts to analyse the presence of herding in the Indian stock market during the COVID-19 pandemic. The paper uses the CNX Nifty 50 Index, which consists of the fifty largest Indian companies listed on the National Stock Exchange (NSE). The paper uses the cross-sectional absolute deviation (CSAD) to analyse the presence of herding. The results obtained from the study indicate the presence of herding during the period of COVID-19 in the Indian stock market, more so during the market downturn. Herding behaviour is more prominent during the first wave of COVID-19 than in the second one. During the pandemic, investors’ fear and market uncertainty can lead to herding behaviour. This study gives insight into the effect of COVID-19 on the Indian stock market.
  Keywords: herding behaviour; COVID-19; Indian stock market; cross-sectional absolute deviation; CSAD.
  DOI: 10.1504/GBER.2024.10052841
   
  
• Upgrading economic complexity in Africa: The role of remittances and financial development  
  by Folorunsho Ajide, Tolulope Temilola Osinubi 
  Abstract: Literature suggests that financial development and migrants’ remittances play a significant role in economic prosperity. However, nothing is known on the role of financial development and remittances in upgrading economic complexity for the case of African nations. This study contributes to the growing literature on economic complexity by providing insights on whether financial development serves as a policy tool in improving African economic sophistications. It also tests whether migrant remittances can be used to upgrade the economic complexity nature of African exports. The study employs Panel ARDL, the novel method of moment-quantile regression (MM-QR) and Dumitrescu-Hurlin Panel Causality to analyse the panel data of 21 African countries over a period of 1996-2017. The results reveal that financial development and migrant remittances can serve as veritable tools in upgrading the level of economic complexity in Africa. Further analysis suggests that remittance inflows and financial development perform substitutability role in upgrading African economic complexity.
  Keywords: Economic Sophistications; Broad-based Financial Development; Remittances; MM-QR.
  DOI: 10.1504/GBER.2024.10052893
   
  
• Relative Price Shocks and Core inflation in Nigeria: Implication of Second-Round Effects for Monetary Policy  
  by Jamilu Iliyasu, Aliyu Rafindadi Sanusi 
  Abstract: This study employs a structural vector autoregression (SVAR) model to examine the second-round effects of shocks in food and energy prices on core inflation in Nigeria. First, the findings support the existence of second-round effects, showing that increases in energy and food prices have a positive and significant impact on core inflation. Second, the study finds that the response of core inflation to shocks in energy and food prices has increased since 2016. This study concludes that the sustained inflationary pressures in food and energy prices may have been transmitted to core inflation items in Nigeria. Furthermore, the evidence suggests that monetary tightening can help offset these second-round effects of food and energy price inflation. Therefore, one policy implication of this finding is that mitigating the second-round effects will require the Central Bank of Nigeria to aggressively respond to energy and food price shocks, though this may slow output growth.
  Keywords: food and energy price; core inflation; second-round effects; structural vector autoregression; SVAR; monetary policy; Nigeria.
  DOI: 10.1504/GBER.2024.10053101
   
  
• Does Audit Quality affect Integrated Reporting Quality? Evidence from South Africa  
  by Abubakar Ahmed, Nuhu Abubakar, HAFIZAH A.B.D. MUTALIB, Nor Laili Hassan 
  Abstract: This article examines the effect of audit quality on integrated reporting quality (IRQ) through the lens of legitimacy theory. Specifically, we examine the effects of industry-specialised auditor and audit fees on IRQ in the context of South African companies. The sample consisted of non-financial companies listed on Johannesburg Stock Exchange (JSE), whose reports are available in provided by the International Integrated Reporting Council (IIRC). The data are analysed using the fixed-effect regression technique. The authors utilised a scoreboard approach and content analysis to measure the extent of disclosure (IRQ). We find that firms that employ industry-specialised auditors provide higher-quality integrated reports, and audit fees positively influence IRQ. These findings are relevant to firm stakeholders as they demonstrate the importance of external auditors in ensuring the credibility of corporate reports even as these reports expand to cover a broad spectrum of non-financial information.
  Keywords: integrated reporting; IRQ; audit quality; specialised auditor; audit fees; South Africa.
  DOI: 10.1504/GBER.2024.10053202
   
  
• Corporate governance impact on financial performance: Evidence from Asian listed companies  
  by Bechir Chenguel 
  Abstract: This study explores the relationship between specific governance mechanisms, namely shareholder activism, the independence of the audit committee, with the financial performance of Asian listed companies. The estimating methodology used panel data from a panel of 622 listed Asian companies observed from 2012 to 2019. We used three estimation methods to ensure the quality of the results. For our robustness estimation, we establish an endogeneity test for the shareholder activism variable and test its impact on financial performance. Our results revealed a positive and significant relationship between the financial performance variable gender diversity, activism and board independence variables. Other mechanisms had a negative impact such as the duality, independence of the audit committee. Finally, for the robustness check, the endogeneity test revealed that the shareholder activism variable is endogenous and directly the dependent variable of our model. Our contribution is to test the effect of shareholder activism as a governance mechanism, on the profitability of assets, especially in the Asian context with six countries.
  Keywords: corporate governance; financial performance; endogeneity test; shareholders activism.
  DOI: 10.1504/GBER.2024.10053702
   
  
• WOMEN ON BOARDS: QUOTA FILLERS OR CONTRIBUTING MEMBERS? EVIDENCE FROM INDIAN IPO FIRMS.  
  by Poonam Mulchandani, Rajan Pandey, Byomakesh Debata, Yashwant Kumar Rayapati, Abhrajit Sarkar 
  Abstract: Gender quotas on company boards have been a popular instrument for authorities looking to promote inclusion. India is one of the first emerging markets to implement gender quotas. India has accepted gender quotas by enacting the Corporations Act of 2013, which requires all publicly traded companies to have at least one female director. Using a hand-collected dataset on various board features, the current study intends to investigate the influence of board gender diversity on IPO listing gains. The study’s findings show that the rule enacted under the Companies Act boosted gender diversity among enterprises after 2015, but not to the extent that it should have. Firms which, at face value, seemed to be complying with gender quotas actually end up appointing members from their own family and these quotas does not serve the purpose.
  Keywords: initial public offerings; IPOs; female directors; underpricing; quantile regression; gender quotas; family ties.
  DOI: 10.1504/GBER.2024.10053840
   
  
• Measuring stocks returns and investor sentiment spillovers in developed markets  
  by Dosarf Ben Aissia, Nizar Neffati 
  Abstract: This study investigates the spillover of returns and investor sentiment in developed markets during the global financial crisis periods. Based on data from six developed stock market indexes ranging from January 1995 to December 2020, it uses the methodology introduced by Diebold and Yilmaz (2014) and its dynamic extensions. Findings show that local sentiment measures are interconnected. Moreover, our results suggest that sentiment connectedness across the analysed stock market indexes is more pronounced during the global financial crisis periods.
  Keywords: Spillovers ; Investor sentiment metrics ; Stocks market returns ; Connectedness ; global financial crisis.
  DOI: 10.1504/GBER.2024.10053961
   
  
• Factors driving Private investments in PPP infrastructure projects in Emerging Economies: An Empirical Evaluation  
  by Aparajita Gupta, Anil K. Sharma 
  Abstract: A public-private partnership(PPP) is a contract between the public and private sector in which the private entity provides infrastructure assets and services that the government would normally supply The popularity of PPPs has gradually increased over the recent years The study empirically examines the developmental and governance factors that influence PPPsin 114 emerging economies The study uses the public-private partnerships in infrastructure(PPP) world bank database for 2001-2020 PPP arrangements are primarily utilized to bridge the infrastructure gap of the countries that cannot commit their internal financial resources to infrastructure development The current study focuses primarily on emerging economies where the infrastructure gap is significant and the requirements for PPP infrastructure arrangements more acute than in other countries The findings of the study imply that markets with large sizes and comparatively higher incomes attract more PPP initiatives Macroeconomic stability, regulatory quality, and governance appear to be crucial factors.
  Keywords: Public-private partnerships; infrastructure; emerging economies; governance factors; macroeconomic stability.
  DOI: 10.1504/GBER.2024.10053982
   
  
• Carbon Emission Intensity, Energy Management Practices and Financial Leverage: Evidence from Emerging Indian Economy  
  by Biswajit Ghose, Leo Themjung Makan, Kailash Chandra Kabra 
  Abstract: This study investigates the impact of carbon emission intensity (CEI) and energy management practices on firms’ financial leverage. Besides, the study also examines moderating role of energy management practices in the relationship between CEI and financial leverage. Using Panel fixed effect model on a dataset of 66 listed firms over the period of five years from 2015-2016 to 2019-2020 the study finds negative impact of carbon intensity on firms’ financial leverage indicating a direct association between carbon intensity and cost of debt. Further, the negative impact of carbon intensity on leverage is observed to be higher in case of firms undertaking energy management practices. The results suggest that firms should strive for decreasing the carbon footprints to take advantage of more debt in capital structure. Further, firms should strategically invest in energy management practices so that the same helps in attenuating the adverse impact of carbon intensity on leverage.
  Keywords: carbon emission intensity; CEI; energy management practices; energy audit; financial leverage; capital structure; debt; panel data.
  DOI: 10.1504/GBER.2024.10054420
   
  
• Entrepreneurial Intention of Return Emigrants: Role of Migration experiences and Access of Finance  
  by Ibrahim P. A.  
  Abstract: Despite the reintegration of migrants in their home country as an emerging socio-economic issue, this study explores the determinants of the entrepreneurial intention of return migrants and argues that entrepreneurship is an effective tool to reintegrate the returnees without harming the socio-economic balance of the economy. The study applied a modified version of the Theory of Planned Behaviour (TPB) with migration experience and access to finance to examine the entrepreneurial intention of returnees. Required data sourced from 217 returnees of India who have started their enterprises for the permanent settlement and analysed with a structural equation model (SEM). The study found that migration experience and access to finance are significant predictors of entrepreneurial behaviour of returnees along with the factors of TPB; however, the personal attitude to entrepreneurship was not a determinant in the proposed model. The study highlights the promotion of entrepreneurship among returnees has multifaceted effects on the socio-economic growth of the home country.
  Keywords: Entrepreneurial intention; Migration experiences; finance; TPB and SEM.
  DOI: 10.1504/GBER.2024.10054468
   
  
• The Role of National Culture in Stock Volatility: Evidence from International Stock Markets  
  by Wajeeha Baig, Zia Ur Rehman Rao, Mahnoor Fatima, Muhammad Usman 
  Abstract: This research aims to examine the impact of national culture on the stock market volatility of international stock markets. By using daily data from 50 international stock markets from 2011 to 2020, we have examined monthly stock market volatility through realised volatility (RV). We have checked the impact of Hofstede’s six cultural dimensions, namely individualism, masculinity, uncertainty avoidance, long-term orientation, power distance, and indulgence on the stock market volatility of major world indices. To check whether national culture has an impact on volatility or not, different regression models were run. Finally, the findings of our study show that six cultural dimensions have different significant influences on the stock market volatility of international stock markets. The findings of this study can assist investors in determining the strategy for limiting their risk in an international diversification portfolio and is also useful to identify which market conditions are appropriate for investment.
  Keywords: cultural dimensions; stock markets; realised volatility; major world indices.
  DOI: 10.1504/GBER.2024.10054840
   
  
• Psychological Biases and Contextual factors as the determinants of Financial Satisfaction: An Evidence-Based Study on Individual Investment Decisions  
  by Kritika Shukla, Vibhash Kumar 
  Abstract: This research study identifies, confirms, and integrates individual investors' psychographics within the contextual environment framework and the psychological biases. The study investigates the financial satisfaction level of investors and examines its relationship with investment decision-making. We empirically examined the conceptual framework by administering constructed instruments to the investors (n=405). For examining the structural relationships, we have used covariance-based structural equation modeling. We have found that contextual factors like brand perception of investment, economic fundamentals, and individual financial needs are positively associated with investor sentiments. Additionally, we established that psychological biases like overconfidence, hindsight, illusion of control, loss aversion, and status quo are positively associated with investors' financial satisfaction. The study's findings suggest that more financially satisfied investors will likely have higher investment volume, higher investment frequency, and lower investment duration. This study's contributions enrich the behavioral finance literature and hold practical relevance for practitioners and policy-makers.
  Keywords: Contextual Factors; Psychological Biases; Financial Satisfaction; Investment Decisions; Individual Investors.
  DOI: 10.1504/GBER.2024.10055094
   
  
• Analysing the impact of relief measures on MSME’s resilience and performance during COVID-19 pandemic  
  by Alpana Agarwal, Komal Kapoor 
  Abstract: The paper aims to analyse the effectiveness of the six relief measures declared by the Indian government for the micro small and medium enterprise (MSME) sector to lessen the impact of the COVID-19 pandemic and help them recover. The relief measures are analysed for their effective implementation, how far they are helping the sector to recover and rebuild their future strategic direction. Technique for order preference by similarity to ideal solution (TOPSIS) has been applied to examine the impact of all six relief measures and rank them in order of their positive impact on MSMEs on their recovery during COVID-19 crises and expected growth in future. The relief measure suggesting e-linkage of marketplace has highest performance score in long-term growth of MSMEs. Also, collateral free loans and subordinated debts have not been able to get disbursed in an effective manner and have thus not very successful in achieving the objectives.
  Keywords: COVID-19; MSME-relief measures; TOPSIS; MSME resilience.
  DOI: 10.1504/GBER.2024.10055532
   
  
• Fiscal Policy and Business Cycle Dynamics in Morocco: An Empirical Study  
  by Abdellah Abaida, Youssef Lakrari, Nour Eddine Aguenane, Nesrine Nouasse, Cheikh Naama Ma El Ainin 
  Abstract: A sustainable fiscal policy is expected to perform a countercyclical behaviour in order to stabilise economic growth during business cycles fluctuations. This requires increasing public spending during recessions and decreasing it during expansions, while public taxes move in the opposite direction. As a result, budget deficits increase during recessions and decrease during expansions. Although this pattern of fiscal policy is prevalent in most advanced economies, emerging and developing economies tend to adopt a procyclical policy due to economic and political factors such as debt level, inflation or institutions effectiveness. Through a benchmarking approach, our study explores the dynamic relationship between fiscal policy and the business cycle in Morocco. Our results suggest that Morocco pursues a procyclical fiscal policy that is largely influenced by the business cycle fluctuations, and this conclusion is supported by robustness checks. This could potentially lead to a crowding-out effect on economic growth and weaken the impact of fiscal policy multipliers. Our research contributes to the growing body of empirical evidence on fiscal policy cyclicality in developing countries and highlights the urgent need for a transition towards a sustainable fiscal policy framework.
  Keywords: fiscal policy; countercyclical; procyclical; business cycle; fiscal multipliers; Morocco.
  DOI: 10.1504/GBER.2024.10055792
   
  
• Taxes, Institutions, and Illicit Financial Flows in Africa  
  by Isaac Bentum-Ennin, Samuel Mensah, Evans Kulu 
  Abstract: This study investigates the effects of taxes and quality institutions on illicit financial flows (IFFs) in Africa. An annual panel data from 30 countries for the period, 2008 to 2017, was employed. The estimated general method of moments models revealed that increases in taxes on international trade provide an incentive for IFFs but this effect is ameliorated or rendered insignificant in the presence of quality institutions, especially, control of corruption, voice and accountability, rule of law, and regulatory quality. There is a need for governments in African countries to strengthen these institutions while minimising international trade taxes in the quest to reduce IFFs.
  Keywords: general method of moments; illicit financial flow; IFF; institutional quality; tax; Africa.
  DOI: 10.1504/GBER.2024.10055846
   
  
• Does CEO Power Affect Audit's Report Lag in the Gulf Cooperation Council (GCC) Economies? The Curtailing Role of Corporate Governance  
  by Faisal Khan, Mohamad Ali Bin Abdul Hamid, SAIDATUNUR FAUZI SAIDIN 
  Abstract: This study provides empirical evidence on how the chief executive officer (CEO) power influences audit report lag (ARL) for non-financial firms of GCC economies from 2009 to 2018. The ordinary least squares (OLS) regression is used in our analyses to test our hypotheses. Results show that CEO-tenure and duality increase ARL in GCC economies. Additional, we find that the effect of CEO-tenure on ARL is curtailed when board independence is stronger, whereas the effect of CEO duality is unchanged by board independence. Further, the impact of CEO power on ARL remains unchanged when there is a gender-diverse board. However, gender diversity curtails the positive impact of CEO power (CEO-tenure and CEO duality) on ARL only when female representation is two or more on the corporate board. In brief, our study identifies CEO power and corporate governance as previously unrecognised determinants of ARL in GCC economies.
  Keywords: audit report lag; ARL; CEO power; CEO-tenure; CEO duality; board gender diversity; board independence; GCC economies.
  DOI: 10.1504/GBER.2024.10056002
   
  
• Entrepreneurship education effects on entrepreneurial intention. How do the changes in the antecedents affect Intention  
  by Panagiotis Tsaknis, Alexandros Sahinidis, Evangelos E. Vassiliou, Apostolos N. Giovanis, Dimitris Sravroulakis, Georgia J. Tsakni, Evagelia Paraskevadaki 
  Abstract: This study investigates the direct effects of entrepreneurship education on entrepreneurial intention, attitude, subjective norms, and perceived behavioural control, as well as its indirect effects on entrepreneurial intention through changes in elements of the theory of planned behaviour (TPB). An experimental design with a pre-test-post-test group was undertaken with 219 business students from a public Greek university who participated in the survey. The data were analysed using SPSS version 24 and MEMORE macro, which calculates mediation and moderation models for two-instance within repeated measure designs (Montoya, 2019). Results indicated that entrepreneurship education affected changes in perceived behavioural control and entrepreneurial intention in a positive manner. Also, it was found that entrepreneurship education affects entrepreneurial intention through the effects of education on perceived behavioural control. In this study, MEMORE macro was used to uncover new relationships between variables, which will contribute to the field of entrepreneurship and entrepreneurial education.
  Keywords: entrepreneurship education; entrepreneurial intention; perceived behavioural control; subjective norms; attitude; theory of planned behaviour; TPB.
  DOI: 10.1504/GBER.2024.10056203
   
  
• The effect of Entrepreneurial Education on Entrepreneurial Intention of Undergraduate Students  
  by Hesham Magd, Siraj Kunjumuhammed 
  Abstract: Recognizing the importance of entrepreneurial education in developing entrepreneurial intention, we review the contribution of entrepreneurial education to the entrepreneurial traits of undergraduate students. The entrepreneurial tendency is measured using entrepreneurial traits such as risk-taking propensity, motivation, locus of control, and creative tendency. The data collected from 216 undergraduate students using a questionnaire is the basis of the study. The entrepreneurial intention of students who completed the entrepreneurship course is compared with the entrepreneurial intention of students who havent completed the entrepreneurship course. The findings show that entrepreneurship education has not created a significant impact on the entrepreneurial tendency of students. Effective entrepreneurship education enables participants to have a clear understanding of entrepreneurship, build an entrepreneurial mindset, and learn how to start and operate business ventures. Although entrepreneurship education is offered to all enrolled students in HEIs, the instructional design, instructional materials, delivery plan, teaching, and assessment methods are not aligned and reviewed regularly to the outcome requirements. This study indicates the extent to which entrepreneurship education impacts entrepreneurial intention among students in Oman, and the necessary changes needed in the curriculum, instructional design, and assessment of entrepreneurial courses.
  Keywords: Entrepreneurship Education; Entrepreneurial intentions; traits; creative tendency; risk propensity.
  
  
• Cross-country growth-oriented entrepreneurship: when is a performance-based culture effective?  
  by Colin Reddy 
  Abstract: We pursue why performance-based cultural norms are rendered ineffective in stimulating a subset of growth-oriented entrepreneurship. We propose and test a midrange, contingency-based model receiving strong support in analysis of 267 country-year observations from 66 countries. Results show economic development complements performance-based cultural norms to increase the extent of a country’s growth-oriented entrepreneurship; and this complementary effect appears only among those countries with high levels of regulatory simplicity. For policymakers targeting economic growth, our research suggests that policies should create a fertile environment for growth-oriented entrepreneurship to thrive on the established norms within their society. We advise against benchmarking possible approaches against other countries with high levels of growth-oriented entrepreneurship but very different established norms. We hope that our study captures the complexity of the impact of cultural norms on the levels of growth-oriented entrepreneurship among countries.
  Keywords: growth-oriented entrepreneurship; cultural practice; institutions; economic development.
  DOI: 10.1504/GBER.2024.10056798
   
  
• The Impact of Mobility Restrictions, Sentiment, and Deaths on the Liquidity and Volatility of LQ 45 Index: A Comparative Study Between the First and the Second Wave of COVID-19 Pandemic  
  by Sendy Ilmi, Dewi Hanggraeni 
  Abstract: The COVID-19 pandemic has affected Indonesia more significantly than the last crisis. It hit and caused Indonesia to have the highest accumulation rate of confirmed cases in Southeast Asia. This study aims to analyse the impact of the COVID-19 pandemic on the Indonesian stock market during the first and second waves. We mainly used panel data regression on daily market returns and defined the liquidity and volatility dynamic to understand the various dimension of the pandemic. We found a relationship between pandemics and the Indonesian stock market during the first and second waves of the pandemic. Our results suggest that increasing mobility restriction implementation would increase market illiquidity and volatility. In parallel, the rise of negative sentiment and fatality rate caused by COVID-19 provides liquidity and stability failure. This study suggests that investors should closely follow the development of country policies to make decisions related to investing in financial markets.
  Keywords: COVID-19; pandemic; mobility restriction; sentiment; stock market.
  DOI: 10.1504/GBER.2024.10056815
   
  
• Determinants of security design in venture capital investment: a study on Indian start-ups  
  by Sarita Mishra, Suresh Kumar Sahoo 
  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.
  Keywords: venture capital investment; security choice; multinomial logistic regression.
  DOI: 10.1504/GBER.2023.10046436
   
  
• The relation between innovation and earnings management: evidence for the UK  
  by Yahya Marei, Mohammad Al Bahloul, Adel Almasarwah, Ashraful Alam 
  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.
  Keywords: innovation; real and accruals earnings management; incentives; manipulation; UK.
  DOI: 10.1504/GBER.2023.10045679
   
  
• The impact of Facebook and Instagram on the growth of Egyptian MSMEs  
  by Hadia Fakhreldin, Mahitab Shahin, Rania Miniesy 
  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.
  Keywords: brand performance; customer engagement; Egypt; Facebook; financial growth; Instagram; micro, small and medium enterprises; MSMEs; social media.
  DOI: 10.1504/GBER.2023.10046440
   
  
• FDI, gender spillovers and firm productivity: the Namibian case  
  by Reem El Sherif, Charles Komla Delali Adjasi, Michael Graham 
  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.
  Keywords: MNC; productivity; gender; spillovers; services; Namibia.
  DOI: 10.1504/GBER.2023.10046434
   
  
• Fraudulent financial reporting analyses using Beneish model: evidence from Malaysian public companies  
  by Nurshamimi Sabli, Rosmini Mohd Aripin, Radziah Mahmud, Roszana Tapsir 
  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.
  Keywords: fraudulent financial reporting; FFR; firm characteristics; corporate governance; Beneish model.
  DOI: 10.1504/GBER.2023.10048178