Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
    - ACCOUNTING (132 journals)
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    - BUSINESS AND ECONOMICS (1248 journals)
    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (212 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (235 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
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    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

BUSINESS AND ECONOMICS (1248 journals)            First | 1 2 3 4 5 6 7 | Last

Showing 401 - 600 of 1566 Journals sorted alphabetically
Hak İş Uluslararası Emek ve Toplum Dergisi     Open Access  
Handbook of Environmental Economics     Full-text available via subscription   (Followers: 2)
Harput Araştırmaları Dergisi     Open Access  
Harvard Business Review     Full-text available via subscription   (Followers: 825)
Harvard Deusto Business Research     Open Access   (Followers: 6)
Hatyai Academic Journal     Open Access  
Health Economics, Policy and Law     Hybrid Journal   (Followers: 26)
High Frequency     Hybrid Journal  
Historical Materialism     Hybrid Journal   (Followers: 14)
History of Retailing and Consumption     Hybrid Journal   (Followers: 1)
HMD Praxis der Wirtschaftsinformatik     Hybrid Journal  
HOLISTICA ? Journal of Business and Public Administration     Open Access  
Homo Oeconomicus     Hybrid Journal   (Followers: 1)
Horizontes Empresariales     Open Access  
Human Resource Development Review     Hybrid Journal   (Followers: 27)
Humanistic Management Journal     Hybrid Journal  
Humanities and Social Sciences Communications     Open Access   (Followers: 4)
IBT Journal of Business Studies     Open Access  
iBusiness     Open Access   (Followers: 2)
ICSES Transactions on Image Processing and Pattern Recognition     Full-text available via subscription  
IdeAs. Idées d'Amérique     Open Access  
Identity     Hybrid Journal   (Followers: 9)
Ids Research Reports     Hybrid Journal  
Ids Working Papers     Hybrid Journal  
IEEE Industrial Electronics Magazine     Full-text available via subscription   (Followers: 123)
IIM Kozhikode Society & Management Review     Hybrid Journal   (Followers: 1)
IISE Transactions on Healthcare Systems Engineering     Hybrid Journal   (Followers: 2)
IJIBE (International Journal of Islamic Business Ethics)     Open Access  
IMA Journal of Management Mathematics     Hybrid Journal   (Followers: 1)
Indian Journal of Human Development     Hybrid Journal  
Indikator : Jurnal Ilmiah Manajemen & Bisnis     Open Access  
Indonesian Journal of Sustainability Accounting and Management     Open Access  
Industrial and Commercial Training     Hybrid Journal   (Followers: 2)
Industrial and Corporate Change     Hybrid Journal   (Followers: 12)
Industrial Law Journal     Hybrid Journal   (Followers: 29)
Industrial Relations Journal     Hybrid Journal   (Followers: 25)
Industry and Higher Education     Full-text available via subscription   (Followers: 10)
Industry and Innovation     Hybrid Journal   (Followers: 10)
Information and Organization     Hybrid Journal   (Followers: 31)
Information Economics and Policy     Hybrid Journal   (Followers: 5)
Information Systems Management     Hybrid Journal   (Followers: 10)
Information Systems Management and Innovation     Open Access   (Followers: 2)
Information Technology for Development     Hybrid Journal   (Followers: 10)
Informs Journal on Applied Analytics:     Full-text available via subscription   (Followers: 15)
INMR - Innovation & Management Review     Open Access  
INNOTEC Gestión     Open Access   (Followers: 1)
Innovar     Open Access  
Innovation Policy and the Economy     Full-text available via subscription   (Followers: 7)
Inquietud Empresarial     Open Access  
Insights into Regional Development     Open Access   (Followers: 2)
Integrated Journal of Business and Economics     Open Access  
Intereconomics     Hybrid Journal   (Followers: 1)
Interfases     Open Access  
International Advances in Economic Research     Hybrid Journal   (Followers: 6)
International Area Studies Review     Hybrid Journal   (Followers: 3)
International Business & Economics Research Journal     Open Access   (Followers: 8)
International Business Research     Open Access   (Followers: 6)
International Entrepreneurship Review     Full-text available via subscription  
International Finance     Hybrid Journal   (Followers: 26)
International Humanities and Applied Science Journal     Open Access  
International Journal for Academic Development     Hybrid Journal   (Followers: 13)
International Journal of Academic Research in Business, Arts & Science     Open Access  
International Journal of Accounting & Finance Review     Open Access  
International Journal of Accounting and Finance     Hybrid Journal   (Followers: 16)
International Journal of Advanced Statistics and IT&C for Economics and Life Sciences     Open Access  
International Journal of Advertising     Full-text available via subscription   (Followers: 22)
International Journal of Applied Business     Open Access   (Followers: 1)
International Journal of Applied Business and Information Systems     Open Access  
International Journal of Applied Decision Sciences     Hybrid Journal   (Followers: 1)
International Journal of Auditing     Hybrid Journal   (Followers: 4)
International Journal of Bank Marketing     Hybrid Journal   (Followers: 4)
International Journal of Banking, Accounting and Finance     Hybrid Journal   (Followers: 14)
International Journal of Behavioral Development     Hybrid Journal   (Followers: 5)
International Journal of Behavioural Accounting and Finance     Hybrid Journal   (Followers: 9)
International Journal of Business Administration     Open Access   (Followers: 6)
International Journal of Business and Data Analytics     Hybrid Journal   (Followers: 2)
International Journal of Business and Globalisation     Hybrid Journal   (Followers: 3)
International Journal of Business and Management     Open Access   (Followers: 13)
International Journal of Business and Social Research     Open Access   (Followers: 4)
International Journal of Business Communication     Hybrid Journal   (Followers: 10)
International Journal of Business Competition and Growth     Hybrid Journal   (Followers: 3)
International Journal of Business Environment     Hybrid Journal   (Followers: 3)
International Journal of Business Excellence     Hybrid Journal   (Followers: 4)
International Journal of Business Information Systems     Hybrid Journal   (Followers: 14)
International Journal of Business Innovation and Research     Hybrid Journal   (Followers: 11)
International Journal of Business Performance and Supply Chain Modelling     Hybrid Journal   (Followers: 8)
International Journal of Business Reflections     Open Access   (Followers: 2)
International Journal of Business Science and Applied Management     Open Access   (Followers: 1)
International Journal of Business, Humanities, Education and Social Sciences     Open Access   (Followers: 1)
International Journal of Community Development and Management Studies (IJCDMS)     Open Access  
International Journal of Competitiveness     Hybrid Journal   (Followers: 1)
International Journal of Computational Economics and Econometrics     Hybrid Journal   (Followers: 6)
International Journal of Corporate Social Responsibility     Open Access   (Followers: 1)
International Journal of Corporate Strategy and Social Responsibility     Hybrid Journal   (Followers: 4)
International Journal of Critical Infrastructures     Hybrid Journal   (Followers: 2)
International Journal of Cross Cultural Management     Hybrid Journal   (Followers: 7)
International Journal of Culture Tourism and Hospitality Research     Hybrid Journal   (Followers: 19)
International Journal of Data Analysis Techniques and Strategies     Hybrid Journal   (Followers: 17)
International Journal of Decision Support System Technology     Full-text available via subscription   (Followers: 1)
International Journal of Diplomacy and Economy     Hybrid Journal   (Followers: 7)
International Journal of E-Entrepreneurship and Innovation     Full-text available via subscription   (Followers: 6)
International Journal of East Asian Studies     Open Access   (Followers: 2)
International Journal of Econometrics and Financial Management     Open Access   (Followers: 4)
International Journal of Economic Policy in Emerging Economies     Hybrid Journal   (Followers: 4)
International Journal of Economic Practices and Theories     Open Access   (Followers: 5)
International Journal of Economics and Business Research     Hybrid Journal   (Followers: 4)
International Journal of Economics, Management and Accounting     Open Access   (Followers: 1)
International Journal of Electronic Business     Hybrid Journal   (Followers: 2)
International Journal of Electronic Commerce     Full-text available via subscription   (Followers: 10)
International Journal of Electronic Democracy     Hybrid Journal   (Followers: 1)
International Journal of Electronic Finance     Hybrid Journal   (Followers: 5)
International Journal of Emerging Markets     Hybrid Journal   (Followers: 3)
International Journal of Employment Studies     Full-text available via subscription   (Followers: 8)
International Journal of Enterprise Information Systems     Full-text available via subscription  
International Journal of Entrepreneurial Behaviour & Research     Hybrid Journal   (Followers: 7)
International Journal of Entrepreneurial Knowledge     Open Access   (Followers: 2)
International Journal of Entrepreneurship and Innovation     Full-text available via subscription   (Followers: 13)
International Journal of Environment and Sustainable Development     Hybrid Journal   (Followers: 17)
International Journal of Environment, Workplace and Employment     Hybrid Journal   (Followers: 7)
International Journal of Exergy     Hybrid Journal   (Followers: 2)
International Journal of Finance & Economics     Hybrid Journal   (Followers: 33)
International Journal of Financial Studies     Open Access   (Followers: 4)
International Journal of Forecasting     Hybrid Journal   (Followers: 35)
International Journal of Foresight and Innovation Policy     Hybrid Journal   (Followers: 6)
International Journal of Gender and Entrepreneurship     Hybrid Journal   (Followers: 5)
International Journal of Global Business and Competitiveness     Hybrid Journal  
International Journal of Globalisation and Small Business     Hybrid Journal   (Followers: 13)
International Journal of Green Economics     Hybrid Journal   (Followers: 6)
International Journal of Happiness and Development     Hybrid Journal   (Followers: 6)
International Journal of Industrial Organization     Hybrid Journal   (Followers: 29)
International Journal of Information and Decision Sciences     Hybrid Journal   (Followers: 10)
International Journal of Information Quality     Hybrid Journal   (Followers: 3)
International Journal of Information Systems for Crisis Response and Management     Full-text available via subscription   (Followers: 3)
International Journal of Information Technologies and Systems Approach     Full-text available via subscription  
International Journal of Innovation     Open Access   (Followers: 4)
International Journal of Innovation and Regional Development     Hybrid Journal   (Followers: 8)
International Journal of Innovation and Sustainable Development     Hybrid Journal   (Followers: 8)
International Journal of Innovation in the Digital Economy     Full-text available via subscription   (Followers: 5)
International Journal of Innovation Science     Hybrid Journal   (Followers: 9)
International Journal of Innovation Studies     Open Access   (Followers: 1)
International Journal of Innovative Technologies in Economy     Open Access  
International Journal of Intelligent Enterprise     Hybrid Journal   (Followers: 1)
International Journal of Intelligent Information and Database Systems     Hybrid Journal   (Followers: 3)
International Journal of Intercultural Relations     Hybrid Journal   (Followers: 16)
International Journal of Islamic Business and Economics     Open Access   (Followers: 1)
International Journal of Islamic Economics and Finance Studies     Open Access   (Followers: 3)
International Journal of IT/Business Alignment and Governance     Full-text available via subscription  
International Journal of Logistics Research and Applications : A Leading Journal of Supply Chain Management     Hybrid Journal   (Followers: 16)
International Journal of Management and Economics     Open Access   (Followers: 2)
International Journal of Management and Social Sciences     Full-text available via subscription   (Followers: 5)
International Journal of Management Economics and Business     Open Access   (Followers: 1)
International Journal of Management Education     Hybrid Journal   (Followers: 11)
International Journal of Management Innovation Systems     Open Access  
International Journal of Management, Economics and Social Sciences     Open Access   (Followers: 7)
International Journal of Managerial Finance     Hybrid Journal   (Followers: 4)
International Journal of Manpower     Hybrid Journal   (Followers: 3)
International Journal of Markets and Business Systems     Hybrid Journal  
International Journal of Mass Customisation     Hybrid Journal  
International Journal of Monetary Economics and Finance     Hybrid Journal   (Followers: 9)
International Journal of Multicriteria Decision Making     Hybrid Journal   (Followers: 8)
International Journal of Multinational Corporation Strategy     Hybrid Journal  
International Journal of Operational Research     Hybrid Journal   (Followers: 3)
International Journal of Organisational Behaviour     Full-text available via subscription   (Followers: 3)
International Journal of Organisational Design and Engineering     Hybrid Journal   (Followers: 3)
International Journal of Organizational Analysis     Hybrid Journal   (Followers: 4)
International Journal of Organizational and Collective Intelligence     Hybrid Journal   (Followers: 1)
International Journal of Pluralism and Economics Education     Hybrid Journal  
International Journal of Process Systems Engineering     Hybrid Journal   (Followers: 1)
International Journal of Qualitative Research in Services     Hybrid Journal   (Followers: 3)
International Journal of Research in Business and Social Science     Open Access   (Followers: 3)
International Journal of Research, Innovation and Commercialisation     Hybrid Journal  
International Journal of Selection and Assessment     Hybrid Journal   (Followers: 9)
International Journal of Servant-Leadership     Full-text available via subscription   (Followers: 2)
International Journal of Six Sigma and Competitive Advantage     Hybrid Journal   (Followers: 4)
International Journal of Social and Organizational Dynamics in IT     Full-text available via subscription   (Followers: 1)
International Journal of Social Economics     Hybrid Journal   (Followers: 7)
International Journal of Statistics & Economics     Full-text available via subscription   (Followers: 6)
International Journal of Strategic Business Alliances     Hybrid Journal   (Followers: 1)
International Journal of Strategic Decision Sciences     Full-text available via subscription   (Followers: 2)
International Journal of Strategic Information Technology and Applications     Full-text available via subscription   (Followers: 1)
International Journal of Strategic Property Management     Open Access   (Followers: 3)
International Journal of Stress Management     Full-text available via subscription   (Followers: 6)
International Journal of Supply Chain and Operations Resilience     Hybrid Journal   (Followers: 3)
International Journal of Sustainable Economy     Hybrid Journal   (Followers: 1)
International Journal of Synergy and Research     Open Access  
International Journal of System Dynamics Applications     Full-text available via subscription  
International Journal of Systems Science : Operations & Logistics     Hybrid Journal  
International Journal of Technoentrepreneurship     Hybrid Journal   (Followers: 1)
International Journal of Technology and Globalisation     Hybrid Journal   (Followers: 3)
International Journal of Technology Diffusion     Full-text available via subscription   (Followers: 1)
International Journal of the Economics of Business     Hybrid Journal   (Followers: 1)
International Journal of Training and Development     Hybrid Journal   (Followers: 11)
International Journal of Transitions and Innovation Systems     Hybrid Journal   (Followers: 1)
International Journal of Work Organisation and Emotion     Hybrid Journal   (Followers: 5)
International Letters of Social and Humanistic Sciences     Open Access  
International Research Journal of Management Science     Open Access  
International Review of Economics & Finance     Hybrid Journal   (Followers: 28)
International Review of Finance     Hybrid Journal   (Followers: 9)
International Scientific and Vocational Studies Journal     Open Access  
InternexT - Revista Eletrônica de Negócios Internacionais da ESPM     Open Access  

  First | 1 2 3 4 5 6 7 | Last

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International Journal of Managerial Finance
Journal Prestige (SJR): 0.203
Citation Impact (citeScore): 1
Number of Followers: 4  
 
  Hybrid Journal Hybrid journal (It can contain Open Access articles)
ISSN (Print) 1743-9132 - ISSN (Online) 1758-6569
Published by Emerald Homepage  [360 journals]
  • Powerful political corporate appointments and firm bribery channels

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      Authors: Hamish D. Anderson , Jing Liao , Jingjing Yang , Martin Young
      Abstract: The authors examine the influence of powerful political corporate appointments on the usage of firm bribery channels. Party Secretaries within Chinese state-owned enterprises (SOEs) may simultaneously hold top management positions, thereby endowing powerful firm-level decision rights on those appointees, hereafter referred to as powerful dual role Party Secretaries. This study employs panel data analysis with industry and year fixed effects. The authors use a sample of 1,143 Chinese SOEs listed on the Shanghai and Shenzhen Stock Exchanges from 2004 to 2015. The authors find that powerful dual role Party Secretaries are associated with greater bribery channel usage. Following the ongoing anticorruption campaign, SOEs with the powerful appointments significantly reduce their usage of both transparent (entertainment and travel costs) and opaque bribery (abnormal management expenses) channels. However, in general, Chinese SOEs respond to the anticorruption shock by switching from the more transparent to the opaquer bribery channel. The authors contribute to the ongoing debate of politicians on corporate boards by examining the relatively unexplored area of government appointed top management and their influence on bribery at the firm level.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-05-06
      DOI: 10.1108/IJMF-05-2021-0237
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Firm-level political risk and corporate innovation: evidence from US
           listed firms

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      Authors: Huson Ali Ahmed , Mohammad Badrul Muttakin , Arifur Khan
      Abstract: The study examines the association between firm-level political risk and corporate innovation and also this study explores how financial constraint and growth level of a firm influence this association. A sample of 14,140 firm-year observations of the US firms from 2003 to 2020 is used. Unlike prior studies, this study uses a firm-level measure of political risk recently developed by Hassan et al. (2019) and measure innovation by patent and patent citation data and a text-based measure. A regression technique is used for empirical testing. This study finds that firm-level political risk is negatively associated with innovation and also document that firm-level political risk has a negative impact on innovation for financially constrained and high growth firms. The overall results are robust after addressing the issue of potential endogeneity using entropy balancing and two-stage least squares regression techniques. This study also documents qualitatively consistent results after using alternative measures of innovation as well as firm-level political uncertainty. The findings of this study could help the managers to make better investment decision and improve economic efficiency through understanding the effect of firm-level political risk on innovation activities. The study concentrates on firm-level political risk and innovation and presents new insights that political risk at the microlevel is an important determinant for investment in innovative activities.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-05-05
      DOI: 10.1108/IJMF-11-2021-0554
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Whether corporate green bonds act as armour during crises' Evidence
           from a natural experiment

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      Authors: Garima Sisodia , Anto Joseph , James Dominic
      Abstract: The present study examines the rationale behind the increased global presence of corporate green bonds as a green financing tool to facilitate sustainable practices and eco-friendly investing. The authors investigate the intriguing question of whether the companies that issue green bonds are valued more by investors or not, and further extend our analysis by exploring whether the green image of companies helps to minimize the value erosion during a crisis and enhance the resilience of the stocks' To examine the association between environmental commitments and firm value, the authors use the COVID-19 crisis as an exogenous shock and create a perfect natural setting to eliminate the endogeneity bias from our estimations. Moreover, the authors use propensity score matching to choose a one-to-one match of green bond firms with a larger pool of brown bond firms and eliminate the “size effect” arising out of the disproportionate sample size of green and brown bond firms. The results of the study indicate that green bond firms are valued more by investors compared to brown bonds firms. Hence, green bond issuance acts as a strong signal of a firm's environmental commitment and it is well recognized by the investors. One of the possible reasons for a higher value of green bond firms may be due to their ability to arrest value erosion during environmental shocks. The authors could not find any difference in the resilience of green and brown bond firms. The study contributes to the growing literature in the area of impact investing, specifically on exponentially growing innovative instrument green bond. Our study integrates two areas of research, i.e. corporate finance and impact investing by examining the impact of green bond issuance on firm value and stock market returns. The results would help environmentally sensitive investors to devise their investment portfolios more efficiently.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-05-02
      DOI: 10.1108/IJMF-10-2021-0501
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Board characteristics and environmental disclosures: evidence from
           sensitive and non-sensitive industries of India

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      Authors: P.S. Raghu Kumari , Harnesh Makhija , Dipasha Sharma , Abhishek Behl
      Abstract: The study aims to identify the impact of board characteristics (BC) on a firm's environmental performance, and provides future research directions in the area of BC impact on environmental disclosures (ED) in case of India's environmentally sensitive and non-sensitive industries (SI and NSI). The authors collect firm-level data from Prowess and Bloomberg, which cover 1,158 firm-year observations from National Stock Exchange of India (NSE) 500 listed companies from 2015 to 2020, and use a dynamic panel regression analysis to get deeper insights on the relationship of ED and BC. The study found that lagged environment disclosure score is positively and significantly associated with current environmental disclosure scores. The presence of sustainability committee, board size and frequency of meetings has a positive and significant association with ED for sensitive as well as non-sensitive industry groups. Factors such as board Independence, board gender diversity and CEO duality have no significant impact on ED of both sensitive and non-sensitive industry groups. Based on agency theory and stakeholder theory authors study for the first time in the context of India the effect of BC on ED using a large sample and covering an extensive period of six years. This study contributes by offering deep insights about the impact in case of “environmentally sensitive, non-sensitive and also all industries case”. The findings of this study are valuable for corporate managers and regulators who are interested in improving ED practices through a better-governed corporate mechanism.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-04-26
      DOI: 10.1108/IJMF-10-2021-0547
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does organizational form really matter to investment firms'

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      Authors: XiaoXiao Han , Skander Lazrak , Samir Trabelsi
      Abstract: The purpose of this study is to investigate whether the organizational form of an investment management firm affects the performance of the mutual funds under its operation. More explicitly, this study aims to test whether funds managed by publicly listed firms achieve different risk-adjusted performance when compared with funds operated by privately held investment firms. This study uses Jensen's alpha to measure funds’ performance based on the Carhart’s (1997) benchmarks and market timing factors. The researchers test the relation between fund performance and organizational form using regressions. It alleviates the reverse causality and endogeneity using propensity score matching (PSM) methodology. The study investigates the difference in performance of funds managed by public firms on the post- vs pre- initial public offering (IPO) basis. Alternatively, this study tests the performance change post-public listing of the parent firm. It computes the difference for a matched sample of funds managed by private firms that were likely to go public but did not. The researchers match funds using PSM methodology. This paper provides robust evidence that publicly traded management companies administer relatively under-performing mutual funds in comparison to those managed by privately held firms. To the best of the authors’ knowledge, this is the first paper that confirms that organizational decision is endogenous to performance. The study finds that after a privately held company goes public, the performance of their mutual funds and the performance of the matched group funds, whose companies remained private at the same time, tends to decline, compared with companies prior to the public offering. However, the decline in mutual fund performance is larger for the companies who chose to pursue their IPO. The contribution of this study to the literature is twofold. First, while there is a wealth of literature on the impact of ownership structures on corporate performance, there are very few studies focused on mutual fund markets, despite the evidence that supports a generally mixed effect. This study confirms that the performance of mutual funds managed by publicly traded investments firms is lower than that of funds managed by privately held firms. Second, the organizational decision (private vs public) is not exogenous but depends on the actual funds’ performance.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-04-15
      DOI: 10.1108/IJMF-12-2021-0608
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Stock return synchronicity in a weak information environment: evidence
           from African markets

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      Authors: Anthony Kyiu , Edward Jones , Hao Li
      Abstract: This study investigates the level of stock return synchronicity in African markets with the aim of establishing whether, contrary to conventional wisdom, stock return synchronicity can be low in countries with relatively weak information environments. The authors use a sample of five African countries (Botswana, Ghana, Kenya, Nigeria and South Africa) and a total of 616 firms over the period 2005–2015. This study's main measure of synchronicity is the R2 from a regression of stock returns on index returns. The authors also carry out regression analysis to investigate the main firm-level drivers of synchronicity. On average, firms in African markets do not exhibit high levels of stock return synchronicity, providing support for the view that stock return synchronicity can be low in markets with relatively weak transparency. The authors, however, observe an increase in the level of synchronicity during the global financial crisis, notably for Ghana and Kenya. In the regression analysis, the main firm-level driver of synchronicity is firm size, while contrary to some previous studies, ownership structure has no impact. The authors also find evidence of the impact of changes in accounting regulation, notably the mandatory adoption of IFRS, on the level stock synchronicity. This study contributes to the understanding of stock return synchronicity and how price discovery can vary between different information environments. The authors argue that stock returns in African countries may not always fit the stereotypical view that they are synchronous. The level of synchronicity among firms suggests that corporate events may carry some stock price implications.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-04-12
      DOI: 10.1108/IJMF-08-2021-0378
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do stock markets value green operations' Evidence from India

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      Authors: Nemiraja Jadiyappa , Raveesh Krishnankutty
      Abstract: This study aims to examine the impact of green operation (measured using the energy intensity of its operations) on the value of corporate firms in stock markets. The authors also examine the channel of such an impact and its implication on a firm's financing choices. The authors conduct various univariate and multivariate regression analyses on a panel of all non-financial Indian firms listed on the National Stock Exchange from 2010 through 2018. The authors use the sensitivity of investments to the cash flows model to test the financial constraints hypothesis. The authors’ analysis shows a positive relationship between energy efficiency (firms that consume a lesser amount of energy per unit of sale) and the value of firms in the stock market. The authors empirically attribute this greater valuation to the lesser volatility of stock returns, measured by the standard deviation of daily stock returns. Finally, the authors observe that investments in energy-efficient firms are less sensitive to their internal cash flows. The results suggest that less green firms face greater constraints in accessing finance from external sources and, therefore, depend more on internal than external capital to finance their investments. Hence, managers of such firms can ease their financing pressures by making their operations greener. In this study, the authors examine the implications of green operations on the financing choices of firms. This aspect of going green is important because managers will have enough incentives to invest in green technologies as that would increase their access to external finance and, hence, decrease their financial constraints.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-04-05
      DOI: 10.1108/IJMF-06-2021-0305
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Responses in divergence of opinion to earnings announcements: evidence
           from American depository receipts

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      Authors: Fanglin Shen , Quantong Guo , Hongyan Liang , Zilong Liu
      Abstract: The purpose of this paper is to investigate the relationship between investors' divergence of opinions and the asset prices of foreign stocks and also examine the effect of home market country-level factors on the influence of divergency of opinions on stock price. The authors employ panel data estimation with fixed effects to examine the host market response in divergent opinions to the earnings announcements. The paper uses the American Depositary Receipts (ADRs) of 42 countries from 1985 to 2011. The authors find a negative relationship between differences of opinions and excess quarterly earnings announcement returns, and investors do process information asymmetrically based on good and bad earnings shocks. In addition, the authors find the negative relationship between divergent opinions and excess earnings announcement returns in ADRs is more pronounced in countries with short-sales restrictions, while other home-market country-level factors – the enforcement of insider trading law, legal origin, investor protection and rating on accounting standard – do not influence the relationship between investors' divergency of opinion and stock returns. This paper is among the first to bring asymmetric effects on convergence in Miller framework and enhance the understanding of price convergence documented in Miller (1977). In addition, this study incorporates home-market country-level factors in explaining the relationship between investors' divergency of opinions and stock returns.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-03-11
      DOI: 10.1108/IJMF-08-2021-0375
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Options trading prior to takeover rumors

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      Authors: Hamed Khadivar , Frederick Davis , Thomas Walker
      Abstract: In this paper, the authors examine options trading in firms that soon become rumored takeover targets. This study also examines whether measures of informed trading can predict target returns (upon rumor announcement and over the post-rumor period) and/or predict which rumors lead to bids. The authors further assess whether the informed trading they observe is more prevalent in the options market or the equity market. This study calculates abnormal options volume using a market-model approach that accounts for different attributes of options trading. The authors construct a control sample and compare equity options trading of firms in their sample with that of the control sample. In addition, the authors fit a series of regressions to examine whether pre-rumor abnormal options trading can predict rumor accuracy in a multivariate setting. The authors find that the volume of options traded is abnormally high over the pre-rumor period while the direction of option trades (abnormal call volume minus abnormal put volume) prior to takeover rumors predicts forthcoming takeover announcements, rumor date target firm returns and post-rumor target firm returns. The results are robust when controlling for publicly available information, when using a control sample, and when using alternative measures of informed trading. This study is the first to provide evidence of informed options trading prior to a broad sample of takeover rumors. In addition, this study contributes to the literature on takeover predictability and profitability by showing that various pre-rumor measures of informed options trading significantly predict bid announcements. The authors also contributes to the literature on price discovery by providing evidence that informed investors are more likely to trade in the options market than in the equity market during the pre-event period.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-03-09
      DOI: 10.1108/IJMF-04-2021-0209
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Bank stock valuation theories: do they explain prices based on
           theories'

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      Authors: Ken-Yien Leong , Mohamed Ariff , Zarei Alireza , M. Ishaq Bhatti
      Abstract: The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most commonly used theories which are then tested using 19-year banking-firm market data. The usefulness of these models demonstrates with promising results. This paper conducts a multi-country study using the multi-model testing approach to evaluate validity of theories and forecast accuracy of banking firms. It employs four methodology models used in finance literature; (1) P/E multiples model, (2) accounting-information-based clean surplus model, (3) theoretical model based on Gordon and Shapiro (1956) method and (4) the Damodaran-Kottler Free Cash Flow or FCF theory based on discounting model. The tests show that the four theories under tests have a significant fit with actual price formation. The explained variation ranges from 72 to 92%, so the explanatory power of the theories accounting for variations in bank prices over 19-year period is substantial. The models fit suggest that the P/E model has superior predictive power followed by the RIM, DDM and FCFE. These findings shed new lights on the relative performance of valuation models. The study is limited in terms of the sample period size for 1999–2019. The availability of essential financial data prior to 2000 is very limited, so one can understand interpretation of statistical results under certain assumptions. The paper suggests that one-factor model is better than the two-factor model. The work done in this paper is unpublished and original contribution to banking and finance literature and also not under consideration for publication in any other journal.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-03-01
      DOI: 10.1108/IJMF-06-2021-0278
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does gold–platinum price ratio predict stock returns'
           International evidence

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      Authors: Dezhong Xu , Bin Li , Tarlok Singh
      Abstract: The purpose of this study is to investigate the relationship between gold–platinum price ratio (GP) and stock returns in international stock markets. The study addresses three empirical questions: (1) Does GP have robust predictive power in international stock markets' (2) Does GP outperform other macroeconomic variables in international stock markets' (3) What is the relationship between GP and stock market returns during economic recessions' The study mainly uses OLS regressions to perform empirical tests for a comprehensive set of 17 advanced international stock markets and overall world market. The monthly data is used for the period January 1978 to July 2019, 499 observations for each market. The study finds that the first-difference of GP (ΔGP), not the initial-level of GP, has strong predictive power for stock returns, both in short- and long-time horizons. The results remain robust after controlling for a number of macroeconomic predictors. The out-of-sample test results are significant, confirming the robustness of the predictive power of ΔGP. This study is the first to examine the ability of the ΔGP to predict stock returns, and provide novel evidence on the relationship between ΔGP and international stock markets. The study draws on behavioral finance theory, specifically the myopic loss aversion, the herd effect and the limited attention theory, to explain the predictability of stock returns in international stock markets.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-25
      DOI: 10.1108/IJMF-06-2020-0328
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of hiring local managers on foreign venture capital
           performance: evidence from China

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      Authors: Wanyi Chen , Qingchuan Hou , Gary Tian , Lanfang Wang
      Abstract: This study examines whether recruitment of local managers helps foreign venture capital (VC) firms mitigate the liability of foreignness measured by cultural differences and improves their performance in relationship-based emerging markets such as China. From a data set comprising 1,939 Chinese portfolio companies with first-round investments by 282 foreign lead VC firms during 2000–2015, the study tracks the outcome of each investment until the end of 2018 and collects the background information of partners of lead VC firms. A survival analysis using the Cox hazard model is conducted. Cultural differences of the foreign VC's home country, when compared to China, positively influence the success of VC firms. Recruitment of local managers reinforces this positive influence. The influence of local manager recruitment is more pronounced for VC firms with politically connected local managers, during politically uncertain periods, in industries supported by the government, in provinces with high government intervention and in VC firms with decentralized decision rights given to local managers. This research complements the international business literature on the advantages of hiring local managers and identifies the channels through which local managers help foreign VC firms obtain relationship-based resources. The findings also have practical implications for those foreign investors who intend to enter into relationship-based emerging markets.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-23
      DOI: 10.1108/IJMF-08-2021-0401
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do global factors drive the interconnectedness among green, Islamic and
           conventional financial markets'

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      Authors: Sitara Karim , Muhammad Abubakr Naeem
      Abstract: This study aims to examine the connectedness among green, Islamic and conventional financial markets from December 2008 to May 2021. Moreover, the impact of global factors on the connectedness of given financial markets is also observed. This study first employed the time-varying parameter vector autoregressions (TVP-VAR) technique to explore the connectedness of markets. Second, This study utilized the wavelet coherence analysis to test the time-frequency impact of global factors in terms of implied volatilities of stock, oil, gold, currency and bond on the connectedness across financial markets. This study finds Islamic stocks, sustainability index and S&P500 composite index are the net transmitters, whereas Sukuk, commodity index, bond market, clean energy and green bonds are the net recipient of spillovers. Time-varying features of green, Islamic and conventional financial markets are evident in system-wide connectedness. This study further evidenced that global factors drive the connectedness of financial markets, particularly during stressful times. The findings of this study furnish significant implications for policymakers, regulatory authorities, investors, financial market participants and portfolio managers in terms of carefully assessing the unique characteristics offered by each financial market in terms of risk mitigation and diversifying the portfolios. Using a portfolio of green, Islamic and conventional financial markets, the uniqueness of this study lies in the examination of the connectedness of these markets by deploying the TVP-VAR technique. In addition, wavelet analysis offers a significant contribution in terms of global factors driving the connectedness of green, Islamic and conventional markets.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-23
      DOI: 10.1108/IJMF-09-2021-0407
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Effect of debt structure concentration on the investment–cash flow
           sensitivity of Brazilian companies

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      Authors: João Paulo Augusto Eça , Wilson Tarantin Júnior , Maurício Ribeiro do Valle
      Abstract: This paper aims to analyze whether a relationship exists between the debt structure concentration and investment–cash flow sensitivity of Brazilian companies. The study is based on a sample of 500 Brazilian firms (337 unlisted and 163 listed) in the 10-year period from 2010 to 2019 analyzed according to the investment–cash flow sensitivity model. The results show evidence that companies with more concentrated debt structures tend to have lower investment sensitivity to internal cash flow. In other words, firms with a greater concentration of debts tend to have less investment–cash flow sensitivity. In general, the results are robust to (1) variation of the debt concentration proxy and the independent variable; (2) the control of fixed effects in different dimensions and (3) use of estimator for endogeneity treatment, i.e. two-stage least squares (2SLS) and generalized method of moments (GMM). Various studies have investigated whether specific financing sources reduce financial constraints, but few have addressed the relationship between debt concentration and these constraints. Besides this, to the best of the authors’ knowledge, no previous study has investigated the mentioned relationship in a sample of unlisted firms. This analysis is relevant since the effects of financial constraints tend to be stronger on companies that have restricted access to the capital market.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-22
      DOI: 10.1108/IJMF-03-2021-0139
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Multinational enterprises’ internationalization and adoption of
           sustainable development goals

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      Authors: Ranjan DasGupta , Satish Kumar , Rajesh Pathak
      Abstract: Using a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic role for their engagement with sustainable development goals (SDGs). Additionally, this study aims to investigate the country- and industry-specific moderation effects on the relationship. This study employs negative binomial regression model along with the fixed effects for industry and time in the empirical estimation. This study shows that MNEs’ internationalization is associated with their higher engagement in SDGs. This is owing to the pressures MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liability of foreignness. The country-level results of this study suggest that this positive relation is stronger in countries with weak legal environment, countries with weak investor protection and in countries with higher SDG index scores. However, the industry-level results of this study indicate that the positive relation between MNEs internationalization and their SDG engagement are weaker in industries facing more competition and industries exposed to negative externalities. The results survive to controls for factors specific to firm and industry. This study is one of the early studies which empirically examine the role of MNE internationalization and SDG engagement. Also, the findings of this study improve the understanding on country-specific and industry-specific challenges in implementing SDGs.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-22
      DOI: 10.1108/IJMF-09-2021-0416
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Executive compensation linked to corporate social responsibility and firm
           risk

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      Authors: Lucia Gao , Shahbaz Sheikh , Hong Zhou
      Abstract: The purpose of this study is to empirically examine the relationship between executive compensation linked to corporate social responsibility (CSR) and firm risk. It also explores the moderating role of CSR-linked compensation on the relationship between risk-taking incentives provided in executive compensation and firm risk. This study uses Ordinary Least Squares (OLS) and firm-fixed effects regressions to estimate the association between CSR-linked compensation and firm risk. Furthermore, it employs instrumental variable, propensity score matching and first-order difference approaches to address concerns about endogeneity and sample selection. Benchmark results show that CSR-linked compensation reduces both total and idiosyncratic measures of risk. Further results indicate that CSR-linked compensation reduces firm risk only when risk is above the optimal level and has no significant effect when risk is below the optimal level. Additionally, tests show that CSR-linked compensation also mitigates the positive effect of Vega of executive compensation on risk and this mitigation effect is significant only when risk is above the optimal level. The empirical results of this study show that boards can use CSR-linked compensation not only to induce higher social performance but also as a risk management tool to manage risk, especially when risk is above value increasing optimal levels. Furthermore, boards can use CSR-linked compensation to mitigate excessive risk-taking induced by option compensation. This study contributes to the emerging literature on CSR-linked compensation and firm risk. To our knowledge, this is the first study that documents the direct risk-reducing effect of CSR-linked compensation and its mitigating effect on the relation between Vega of executive compensation and firm risk.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-21
      DOI: 10.1108/IJMF-10-2021-0511
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do analysts cater to investor information demand'

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      Authors: Benjamin Jansen , Md Miran Hossain , Jon Taylor
      Abstract: The purpose of the study is to examine whether analyst coverage responds to changes in investor information demand for a firm and to test whether certain investor or firm characteristics moderate this association. The authors model analyst activeness (AA) as a function of institutional investors' information demand, proxied by news readership on Bloomberg terminals and retail investors' information demand, proxied by the Google Search Volume Index (GSVI). Additionally, the authors take several steps to mitigate concerns about reverse causality that may confound the findings. Results suggest that analysts respond to information demand shocks, but partially revert their coverage after the demand shock subsides. Furthermore, the results suggest that analysts cater their coverage more towards institutional investors than to retail investors. Evidence also suggests that analysts are more responsive to investors interested in firms with tech stock characteristics. Finally, the authors find evidence that specialist analysts respond more to institutional investors while generalist analysts respond more to retail investors. The authors are the first to empirically examine the extent to which analysts cater to investor information demand. This is a vital topic to study because analysts are one of the primary sources of information for market participants. Understanding an analyst's motivation for providing information will help to facilitate market efficiency.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-15
      DOI: 10.1108/IJMF-10-2021-0542
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Manager see manager do: the impact of geographic herding on corporate
           social responsibility

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      Authors: John Nofsinger , Fernando M. Patterson , Corey Shank
      Abstract: The authors examine how local firms, regardless of industry, influence each other's corporate policies. The authors argue that there are two motives for why local firms may have similar corporate social responsibility (CSR) policies. First, the peer effect argues that a firm's chief executive officer (CEO) will likely interact regularly with fellow CEOs of local firms, especially those of similar size, influencing each other's firm to make similar decisions. Second, firms may believe that CSR policies can be used to attract local talent. That is, if there are many firms in the area, employees may elect to work for the firm that treats their employees better or shares their values. Thus, to compete for labor resources, local firms will herd in similar CSR policies. Through regression analysis, the authors compare a firm's CSR policies to the policies of other firms in the geographic area (within 100 miles). The authors find support for the peer effect hypothesis, as local firms of the same size positively and significantly affect a firm's own CSR score. In contrast, local firms of different sizes have a negative relationship. The combination of CSR scores being related to the CSR scores of similar sized firms and not to other size firms suggest that the peer effect dominates the labor pool effect. Through regression analysis, the authors compare a firm's CSR policies to the policies of other firms in the geographic area.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-11
      DOI: 10.1108/IJMF-12-2020-0610
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Testing factor models in an emerging market: evidence from India

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      Authors: Kewal Singh , Anoop Singh , Puneet Prakash
      Abstract: This paper aims to investigate the explanatory power of the Fama-French five-factor model and compares it to the other asset pricing models. In addition, the paper examines the contributions of two additional factors: profitability and investment factor. The authors test the alternative four-factor models. The authors use stock returns data of BSE-500 listed firms for the Indian market, an emerging market, from 1999 to 2020, thus covering the post-Asian crisis and pre- and post-financial crisis (2007–2008) periods. The authors employ 75 and 96 portfolios based on different factors. To check the performance of asset pricing models, the authors also used the GRS F-statistics and factor spanning tests. The authors find that the five-factor model and alternative four-factor model outperform the three-factor model. Contrary to the findings for the US, but similar to the Chinese stock market, the value factor is significant for the Indian stock market. Simultaneously, the authors also find that the investment factor has no explanatory power in the presence of the profitability factor in their sample. To the best of the authors' knowledge, this is the most comprehensive study using data more than two decades. These results are based on 75 (25 × 3) portfolios based on size, value, profitability and investment. The authors also tested these results based on 96 (32 × 3) portfolios to check robustness, and these results still hold. Furthermore, the authors find that factors based on 2 × 3 sorting have higher explanatory power than those based on 2 × 2 and 2 × 2 × 2 × 2 sorting.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-02-01
      DOI: 10.1108/IJMF-05-2021-0245
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Investors' responses to macroeconomic news: the role of mandatory
           derivatives and hedging activities disclosure

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      Authors: Abiot Tessema , Ghulame Rubbaniy
      Abstract: The purpose of this study is to investigate how changes in the firm's information disclosure practices impact the way investors process macroeconomic news. Specifically, the authors examine the role of derivative instruments and hedging activities disclosure, as required by SFAS 133, in shaping invertors response to good and bad interest rate news. In addition, the authors examine whether the effect of SFAS 133 on investors' response to good and bad interest rate news varies between firms with higher and lower earnings volatility. This study uses data on all US public firms over the period from 1990 to 2019. The authors mainly apply multivariate regression and a difference-in-difference approach to test their hypotheses. The results show a significant decrease in the asymmetry of responses to good and bad interest rate news for users of interest rate derivatives following the adoption of SFAS 133. However, in contrast to this finding, the authors also find that the adoption of SFAS 133 has no impact on the asymmetry of responses to good and bad interest rate news for nonusers of interest rate derivatives. Consistent with the ambiguity theory, the finding suggests that SFAS 133 indeed decreases investors’ uncertainty (ambiguity) about the cash flow implications of changes in the interest rate. The authors also find that the decrease in the asymmetry of response to good and bad interest rate news after the adoption of SFAS 133 is greater for users of interest rate derivatives with higher than lower earnings volatility. This implies that derivatives and hedging activities disclosure, as required by SFAS 133, are more important for firms with higher than lower earnings volatility. The finding is consistent with the idea that investors demand more accounting information when underlying earnings volatility is higher. In a set of additional analyses, the authors find that the effect of SFAS 133 on investors' response to good and bad interest rate news varies depending on the level of analyst coverage and interest rate exposure. Specifically, the authors find that the decrease in the asymmetry of response to good and bad interest rate news after the adoption of SFAS 133 is greater for users of interest rate derivatives with higher interest rate exposure and lower analyst coverage. The findings of this study help market participants including regulators and standard setters to understand the impact of mandatory disclosure practices on investors' reaction to macroeconomic news. Moreover, the findings of the study help managers to understand the influence firm-specific characteristics (e.g. earnings volatility, analyst coverage and interest rates exposure) on the effectiveness of mandatory derivative instruments and hedging activities disclosure. To the best of the authors' knowledge, this is the first paper to explore how firm-specific information environment affects the way investors process macroeconomic news. This study contributes to the literature by providing the empirical evidence that derivatives instruments and hedging activities, as required by SFAS 133, affect investors' response to good and bad interest rate news. In doing so, the results provide insights about how firm-specific information environment affects the way investors process macroeconomic news. This study shows that the cross-sectional variation in earnings volatility, analysts’ coverage and interest rate exposure affects the impact of SFAS 133 on investors' response to good and bad interest rate news. The findings are not only the notable addition to the existing literature on the topic but also can aid to market participants including policy makers, regulators, standard setters and managers to understand the influence of firm-specific characteristics on the effectiveness of mandatory derivative instruments and hedging activities disclosure. Finally, the findings contribute to the general debate about the effectiveness of SFAS 133 by showing that the adoption of SFAS 133 indeed decreases information ambiguity.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-01-21
      DOI: 10.1108/IJMF-12-2020-0635
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Stock derivatives and seasoned equity offerings

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      Authors: Robert Martin Hull , Sungkyu Kwak , Rosemary Walker
      Abstract: The article aims to explore if stock derivative types (stock options and stock warrants) are associated with stock returns for firms undergoing seasoned equity offerings (SEOs). The authors regress stock returns against stock derivatives for periods around SEO announcements with standard errors clustered at the month level. The authors find that lower stock derivatives holdings for the fiscal year after the SEO are associated with superior pre-SEO returns. This can be explained by owners exercising their derivatives to capitalize on the pre-SEO price run-up. The authors find that greater stock option holdings by insiders for the fiscal year after the SEO are associated with superior post-SEO returns for up to ten years after the SEO announcement. This new finding does not hold for stock warrants. Stock derivatives are supplied by Capital IQ. Given their description, the authors infer that stock options are owned largely by insiders. Thus, the insider conclusions for stock options depend on this implication. Stock options and stock warrants can be used strategically to reward stock derivative owners of strong performing firms for past performance. Stock options can be used to motivate insiders (primarily key executives) to achieve superior future performance. This study is unique in comparing the influence of holdings for stock options and stock warrants on stock price performance around SEOs. The authors show that the sign of the association depends on whether the test includes pre-SEO periods.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-01-11
      DOI: 10.1108/IJMF-10-2021-0493
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of investor sentiment and the structure of shareholder
           ownership on corporate investment

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      Authors: Hui Li , Bruce Grundy
      Abstract: This paper aims to investigate the relations amongst investor sentiment, the structure of shareholder ownership and corporate investment. This paper develops a theoretical model, proposes hypotheses based on the predictions of the model and conducts empirical tests. The primary method is panel regression with fixed effects. The sample covers the US data for the period between 1980 and 2018. This paper finds that firms with a higher proportion of retail investors invest more than otherwise similar firms. In the low-sentiment periods, the financially constrained firms invest less than the non-financially constraint firms. The positive effect of residual retail ownership on the investment level is higher for firms with a higher idiosyncratic risk. The results suggest that larger share ownership of the relatively informed institutional investors may serve as a mechanism that could reduce the degree of overinvestment caused by higher investor sentiment and the over-optimistic of the relatively uninformed investors. This paper provides an incremental theoretical and empirical contribution to the relations amongst investor sentiment, corporate investment and the structure of shareholder ownership.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-01-07
      DOI: 10.1108/IJMF-11-2021-0558
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of institutional factors on corporate mechanism of cash
           adjustment – New evidence from emerging Asia

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      Authors: Santanu Das , Ashish Kumar , Asit Bhattacharyya
      Abstract: The purpose of this study is to understand how the business environment of a country has an impact on cash management policies of the firms and also to investigate if there is any asymmetry in cash adjustment dynamics when a firm deviates from its long-term target of cash holdings. Using a sample of seven emerging Asian countries in the period 2001–2019, the authors investigate the role of country specific variables in the corporate cash holdings and their cash adjustment mechanism. They use the panel data regression method to estimate the results. The authors find that the overall financial development of a country has a significant impact on corporate cash holdings and cash adjustment dynamics. When a firm has excess cash, the speed of adjustment towards the target is faster as compared to when it has deficit cash holdings. Further, when a firm holds excess cash, it adjusts towards the target using cash from investments; in case of deficit cash holdings, the adjustment happens via cash from financing activities. The results of the study are helpful to corporate managers as these are important references to them to understand and design cash management policies by considering factors that are measured at the country level. It also provides them a clearer understanding about the role of corporate board and information asymmetry in cash holdings. This is the first study which examines the role of country-specific variables on corporate cash holdings and their adjustment mechanism of firms in emerging Asia. Further, the study extends the literature by providing new evidence that there is asymmetry in cash adjustment dynamics of firms after controlling for the overall financial development of a country.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-01-05
      DOI: 10.1108/IJMF-01-2021-0032
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of natural disasters on the performance and solvency of US
           banks

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      Authors: Thomas Walker , Yixin Xu , Dieter Gramlich , Yunfei Zhao
      Abstract: This paper explores the effect of natural disasters on the profitability and solvency of US banks. Employing a sample of 187 large-scale natural disasters that occurred in the United States between 2000 and 2014 and a sample of 2,891 banks, we examine whether and how disaster-related damages affect various measures of bank profitability and bank solvency. We differentiate between different types of banks (with local, regional and national operations) based on a breakdown of their state-level deposits and explore the reaction of these banks to damages weighted by the GDP of the states they operate in. We find that natural disasters have a pronounced effect on the net-income-to-assets and the net-income-to-equity ratio of banks, as well as the banks' impaired loans and return on average assets. We also observe significant effects on the equity ratio and the tier-1 capital ratio (two solvency measures). Interestingly, the latter are positive for regional banks which appear to benefit from increased customer deposits related to safekeeping, government payments for post-disaster recovery, insurance payouts and decreased withdrawals, while they are significantly negative for banks that operate locally or nationally. We contribute to the literature by offering various new insights regarding the effects natural disasters have on financial institutions. With climate change-driven natural disasters widely expected to increase both in terms of frequency and severity, their economic fallout is likely to impose an increasing burden on financial institutions. Large, nationally operating banks tend to be well diversified both geographically and in terms of their product offerings. Small, locally operating banks, however, are increasingly at risk – particularly if they operate in disaster-prone areas. Current banking regulations generally do not factor natural disaster risks into their capital requirements. To avoid the next big financial crisis, regulators may want to adjust their reserve requirements by taking this growing risk exposure into consideration.
      Citation: International Journal of Managerial Finance
      PubDate: 2022-01-04
      DOI: 10.1108/IJMF-08-2020-0406
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Debt structure: a solution to the puzzle of capital structure

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      Authors: Ehsan Poursoleyman , Gholamreza Mansourfar , Sazali Abidin
      Abstract: The purpose of this paper is to investigate the relation between debt structure and future external financing and investment. Furthermore, it aims to analyze the association between debt structure and future financial performance. Volume, maturity, possessing collateral and having priority at the settlement date are the dimensions of debt structure that have been employed in this paper. The sample consists of 1,060 firm-year observations from Tehran Stock Exchange corporations during the period 2009–2018. The findings reveal that greater reliance on financial leverage (debt volume) and short-term debt are associated with increases in future debt financing as well as future equity financing. Moreover, these two dimensions of debt structure are positively related to future investment. This paper also shows that the positive impact of financial leverage and short-term debt on future financing and investment can finally lead to a favorable financial performance. Regarding other dimensions of debt structure, the results suggest that although collateralized debt with the priority option at the settlement date enhances future external financing, this type of debt can ultimately lead to a reduction in future investment and financial performance. Finally, the findings indicate that uncollateralized debt exacerbates future financial performance. Financial performance can be affected by several factors, including available funds, investment amount, investment efficiency and managerial capability. However, this paper only considers the investment amount and external financing as the channels through which debt structure improves future financial performance. This study has the potential to contribute to one of the most important issues in finance and business fields, despite its probable trivial drawbacks. Financing strategies as one of the most controversial topics have been meticulously scrutinized in this paper and practical implications are made to facilitate the process of decision-making regarding the optimal type of debt financing. This study extends the literature by analyzing the direct link between debt structure and firm performance in firms domiciled in developing markets.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-12-31
      DOI: 10.1108/IJMF-03-2021-0155
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Corporate risk-taking after changes in credit rating

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      Authors: Hardjo Koerniadi
      Abstract: The paper aims to investigate corporate risk-taking following changes in firms' credit ratings (CR) and the mechanisms the firms use in implementing the risk-taking. The paper employs fixed-effect regression models to examine risk-taking behaviour after firms experience changes in CR after their ratings are downgraded to the lower edge of the investment grade rating (i.e. BBB-) and after their CRs are downgraded below the investment rating. The paper finds that, whilst in general, changes in CR are negatively associated with post-event risk-taking, firms downgraded to BBB- do not increase their risk-taking. Only when firms are rated below this grade, firms significantly increase their risk-taking, suggesting that the association between downgrades in CR and firm risk-taking following the event is not linear. Further analysis suggests that these downgraded firms do not increase research and development (R&D) expenses or capital expenditures but employ long-term debt as their risk-taking mechanism. The findings of the paper have practical implications for investors considering investing in downgraded-rating firms to shareholders of such firms and especially to those overseeing the firms' risk-taking policies. The study fills the gap in the literature by providing empirical evidence on corporate risk-taking after changes in CR and also contributes to the optimal debt-maturity choice literature.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-12-30
      DOI: 10.1108/IJMF-07-2021-0331
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does corporate social responsibility transparency mitigate corporate cash
           holdings'

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      Authors: Mohammad Hendijani Zadeh , Michel Magnan , Denis Cormier , Ahmad Hammami
      Abstract: This article aims to explore whether a firm's corporate social responsibility (CSR) transparency alleviates a firm's cash holdings. CSR transparency ratings encompass both the quantity and the quality of CSR practices, as validated by Bloomberg. While based upon firm-specific disclosure, transparency ratings impound additional information gathered independently by Bloomberg and thus bridge the gap between CSR disclosure and CSR performance. The authors use ordinary least squares estimators, and the authors concentrate on a panel of S&P 500 index companies over the period of 2012–2018 to examine the effect of CSR transparency on corporate cash holdings. The authors document that a higher level of CSR transparency induces a lower level of corporate cash holdings. Additional results imply that this negative relationship is more pronounced for firms suffering from high information asymmetry, with low financial reporting quality and for those with weak governance. Further analyses document that higher CSR transparency can help firms to enjoy lower cost of debt and to be less financially constrained, enabling high CSR transparent firms to obtain external financing more easily and at a lower cost, thus lowering the need to hoard cash. Ultimately, the study findings suggest that CSR transparency increases the market value relevance of an additional dollar in cash holdings. The authors contribute to both research streams of CSR and corporate cash holdings as they provide evidence about the influence of CSR transparency as a monitoring and insurance-like mechanism on corporate cash holdings.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-12-29
      DOI: 10.1108/IJMF-07-2021-0339
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Stock returns, oil prices and leverage: evidence from US firms

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      Authors: Md Ruhul Amin , Andre Varella Mollick
      Abstract: This paper aims to investigate how the relation between stock returns of US firms and West Texas Intermediate (WTI) oil prices is affected by leverage from 1990 to 2020. This paper examines how the relationship between stock returns of US firms and WTI oil prices is affected by leverage from 1990 to 2020 using a fixed-effect model estimation framework. Results from the fixed-effect regression models suggest that leverage effects on stock returns are pervasive both in aggregate and cross-industry levels, while the mining industry is more sensitive. In addition to the positive oil price effects attenuated by leverage at the aggregate level, the authors observe stronger marginal effects of leverage only for the mining sector. Being more exposed to commodity prices, the positive effects of oil prices on stock returns in the mining sector are offset by large debt ratios. Asymmetries, effects of debt maturity structure and implications are also discussed. This study is grounded on the contemporary cash flow claim of leverage NOT on the long-run effect of leverage considering cash flow constraints. The oil price increase is assumed to represent an advancement of the overall economy. This study does not capture the oil prices response to some other economic forces and vice-versa. Mining companies should therefore reduce the stock of debt with respect to their assets to make possible the “pass-through” from oil prices to the stock market. Previously undocumented and the authors show that leverage reduces the total effect of oil prices on stock returns, consistent with the hypothesis. Asymmetric and debt maturity structures effects are also discussed.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-12-14
      DOI: 10.1108/IJMF-06-2021-0257
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Corporate governance and innovation investment in publicly listed firms:
           the moderating effect of ownership type and legal jurisdiction

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      Authors: Ella Guangxin Xu , Chris Graves , Yuan George Shan , Joey W. Yang
      Abstract: The paper aims to examine the effect of corporate governance (CG) on innovation investment, with consideration of ownership types and legal jurisdictions. The authors' empirical analysis is based on a sample of publicly listed family businesses (FBs) from the top-500-list that matched worldwide with non-family counterparts from 2009 to 2018. The study uses a holistic measure of CG to mitigate the conflicting impact of individual CG components found in prior studies. This measure is applied to examine the moderating role of firm ownership type and legal jurisdiction. The authors' results demonstrate that CG positively influences innovation investment. This positive relationship is more pronounced in FBs than in non-family businesses (NFBs) and is more prevalent in civil law economies than in common law economies. The study holistically examines the effect of CG, capturing the combination of all individual governance mechanisms and their influence on innovation investment. The study further shows that comprehensive CG has diverse impacts on innovation investment when considering family control and legal jurisdiction.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-11-26
      DOI: 10.1108/IJMF-08-2021-0381
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Role of educational, regional and religious attributes of CEOs in
           performance of Indian family firms

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      Authors: Ranjan DasGupta , Rajesh Pathak
      Abstract: The authors investigate whether community-based CEO's attributes, particularly educational attainment, regional and religious affiliation, are direct antecedents of performance in family-controlled Indian firms. The authors further examine whether CEO's education moderates the linkage of firm performance with regional and religious affiliation. The authors employ pooled Ordinary Least Square with fixed effects and Fama-Macbeth regression techniques to test their hypotheses. The results reveal that firms with post-graduate CEOs in business and firms with doctorate CEOs, significantly outperform peer firms. The authors also find that CEOs from northern India outperform peer CEOs consistently which emanates from the risk-taking differentials of CEO's across regions. Hindu CEOs also deliver superior return on assets. However, CEO's educational attainment moderates the influence of regional and religious affiliations. This study is unique as it contributes on the role of regional affiliation of top executives in determining performance which almost remains unexplored in existing literature.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-11-16
      DOI: 10.1108/IJMF-06-2021-0268
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Did the STOCK Act impact the performance, risk and flow of hedge
           funds'

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      Authors: Laleh Samarbakhsh , Meet Shah
      Abstract: This research aims to examine hedge funds’ performance, risk and flow before and after the implementation of the Stop Trading on Congressional Knowledge (STOCK) Act. This paper includes the use of different factor models to highlight the performance and risk of hedge funds before and after the implementation of the STOCK Act. Hedge fund holdings are retrieved from Thomson Reuters Lipper Hedge Fund Database (TASS). This study finds significant differences before and after the implementation of the STOCK Act. The results for the entire sample period indicate that hedge funds suffered lower-alpha, standard deviation and idiosyncratic risk after the implementation of the STOCK Act. The paper’s originality and value lie in addressing the relationship gap between the STOCK Act and hedge fund performance.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-10-28
      DOI: 10.1108/IJMF-04-2021-0174
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Bank stability, credit information sharing and a shift toward households'
           lending: international evidence

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      Authors: Tu D.Q. Le , Dat T. Nguyen
      Abstract: The study aims to investigate the relationship between a shift in lending activities toward households, credit information sharing and bank stability. A system generalized method of moments (GMMs) as proposed by Arellano and Bover (1995) is employed to examine the relationship using a sample of 80 countries from 2005 to 2014. The findings demonstrate that, in general, a shift in lending strategy toward the household sector may increase bank instability while credit information sharing has a positive impact on bank stability. When credit information sharing is promoted widely, this shift may become beneficial for the banking system. The results are robust when using different measures of credit information sharing, including the depth of index and the coverage of credit information sharing mechanisms. The results demonstrate that a shift in lending activities toward households should be considered a key variable in conducting macro-prudential policies. When a shift toward household credit relative to firm credit is evolved, the findings suggest that the authorities around the world should enact laws that magnify the scope and coverage of credit information shared and thus promoting the effectiveness of information sharing. The current study is the first attempt that examines the impacts of a shift in lending activities toward households and credit information sharing on bank stability.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-10-26
      DOI: 10.1108/IJMF-07-2021-0311
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Valuation of short-lived firms following waves of new listings

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      Authors: Yoshie Saito
      Abstract: The survival rate of newly listed firms is low, and there is evidence of a surge of poorly performing new listed firms leading up to the crash of the dot.com bubble. The author investigates this phenomenon and analyzes investors' ability to understand the quality of accounting information and to adjust their expectations. The author employs the dividend discount model in conjunction with clean surplus accounting discussed by Ohlson (1995) to compare the value relevance of earnings and research and development (R&D) expenditures for short and longer listed National Association of Security Dealer Automated Quotations (NASDAQ) firms between 1980 and 2014. The author also uses univariate tests and logistic regression to analyze both recently listed and short-listed firms. In this analysis, the author compares the differences in investors' expectations for the first five years for both types of firms. The author provides convincing evidence that markets clearly placed lower valuation weights on accounting earnings and R&D expenditures for short-listed firms on NASDAQ. Market participants originally had high expectations for these ventures. But, they gradually understood the lower quality of accounting information and adjusted their expectations downward. The author’s results show that optimistic expectations along with easy equity financing created a surge of new listings. My analysis of the interplay between the quality of accounting information and investors' expectations indicates a negative spillover effect where investors are overoptimistic about firms that rode on waves of new listings backed by liberal financing. The author shows that analysis of Tobin's Q and negative earnings can separate ill-prepared from longer-listed firms.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-10-12
      DOI: 10.1108/IJMF-02-2021-0068
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Employee mistreatment and information asymmetry

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      Authors: Omer Unsal
      Abstract: In this paper, the author utilizes a unique hand-collected dataset of workplace lawsuits, violations and allegations to test the relation between employee mistreatment and information asymmetry. The author tests the impact of employee treatment on firms' information environment by utilizing the S&P 1500 firms of 17,663 firm-year observations, which include 2,992 unique firms and 5,987 unique CEOs between 2000 and 2016. These methods include panel fixed effects, as well as alternative measures of information asymmetry, event study and matched samples for further robustness tests. The author finds that employee disputes exacerbate the information flow between insiders and outsiders. Further, the author reports that case characteristics, such as case outcome and case duration, aggravate that problem. The author documents that the positive relationship between employee mistreatment and information asymmetry is stronger for small firms and firms with smaller market power, as well as firms with a high level of equity risk. This study is the first to investigate how employee relations influence a firm's information asymmetry. The author aims to contribute to the literature by studying (1) the relation between information asymmetry and employee mistreatment, (2) how firm characteristics affect the path from employee disputes to information asymmetry and (3) the influence of various other types of evidence of employee mistreatment beyond litigation on the information environment.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-10-11
      DOI: 10.1108/IJMF-05-2021-0239
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Mutual fund manager turnover: an empirical investigation of performance

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      Authors: Avinash Ghalke , Shripad Kulkarni
      Abstract: When a fund manager leaves, the investment strategy of the fund changes or remains the same. The departing fund manager's resignation is either forced or voluntary. The study investigates the relationship between the portfolio manager's transition and the fund's investment strategy and how the change affects the mutual fund returns in the subsequent period. The authors examine 148 fund manager changes in India between April 2005–March 2018 using three performance measures: abnormal return (fund return minus benchmark return), Jensen's alpha and Carhart four-factor alpha. The analysis includes an event study methodology, followed by a two-step Fama–MacBeth regression approach. Contrary to the previous studies conducted in the developed markets, the authors find that fund performance improves irrespective of whether the fund manager change is forced or voluntary. The outperformance after the fund manager's exit is significant for funds belonging to the larger fund families. In the context of investment management, the authors provide a conceptual framework to understand the effect of fund manager exit on mutual fund performance. The authors substantiate their arguments with empirical evidence. To the best of the authors' understanding, this is the first research to examine the effect of changing mutual fund managers in an emerging market setting.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-09-28
      DOI: 10.1108/IJMF-04-2021-0195
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • CEO pay slice and acquisitions in Australia: the role of tournament
           incentives

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      Authors: Hoa Luong , Abeyratna Gunasekarage , Syed Shams
      Abstract: This paper investigates the influence of tournament incentives, measured by Chief Executive Officer (CEO) pay slice (CPS), on the acquisition decisions of Australian firms. This study applies ordinary least squares regression analyses to a sample of 1,429 acquisition observations announced by 986 unique Australian firms spanning the 2001–2015 period. Event study methodology was employed to capture the market reaction to acquisition announcements. Multinomial logit models, a two-stage least squares instrumental variable (IV) approach and propensity score matching (PSM) technique were performed for robustness and endogeneity correction purposes. The results suggest that CPS has a positive and significant relationship with the announcement period abnormal return realised by acquirers, implying that executives are motivated to exert best efforts and support the CEO in making value-creating acquisitions. Further analyses reveal that management teams of high CPS firms demonstrate efficiencies in executing acquisitions. The positive relationship between the CPS and abnormal return is more pronounced in acquisitions of private targets, domestic targets and bidders with high-quality CEOs. These acquisitions make a significant contribution to the long-run performance of the firm, which provides support for the effort inducement hypothesis. The study's empirical evidence implies that the strong governance environment in Australia and a highly monitored acquisition market and compensation contracts motivates executives to exert their efforts to make value-enhancing acquisitions. This paper appears to be the first investigation that makes a link between CPS in different components (i.e. short-term, long-term and total pay) as proxy for tournament incentives and the outcomes of both public and non-public acquisitions in the Australian setting.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-09-07
      DOI: 10.1108/IJMF-06-2021-0292
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Are social connections of independent directors all the same' Evidence
           from corporate monitoring

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      Authors: Zhe Li , Emre Unlu , Julie Wu
      Abstract: Studies on corporate boards examine how social ties between the CEO and independent board members affect the effectiveness of board monitoring. Much evidence suggests that social connections between the CEO and independent directors are associated with inadequate monitoring and lower firm value (Hwang and Kim, 2009; Fracassi and Tate, 2012). In this study, the authors note that social connections of the independent directors are of different nature and thus should not be treated as a homogeneous group; that is, the nature of connections among directors can be quite different from that between the CEO and directors, which is the primary focus of previous studies. The authors classify independent directors into four mutually exclusive groups based on their social connections to the CEO and other independent board members and examine what role each type of connection plays in corporate monitoring using panel data and cross-sectional fixed effect regressions. The authors find that Only_CEO%, the proportion of independent directors who are connected only to the CEO, is negatively associated with monitoring intensity. Specifically, firms with higher Only_CEO% have larger CEO compensation, lower likelihood of dismissing the CEO, more co-opted board and worse firm performance. In contrast, No_CEO_Ind%, the proportion of independent directors who have no connection to either the CEO or other independent directors is associated with more effective monitoring. These findings suggest that independent directors with different degrees of social connections exhibit different monitoring qualities. When more independent directors, who are connected exclusively to the CEO, are on the board, they consistently deliver low monitoring quality. However, when more independent directors with no connections to either the CEO or any independent directors are on the board, they enhance monitoring quality. These findings can be used to construct board structures with more effective monitoring ability. This paper extends the literature on social networks in corporate finance. The authors show that independent directors with exclusive connections to other independent directors do not have a significant effect on board monitoring, but those truly independent directors are associated with better monitoring quality. These findings suggest that different types of social connections of independent directors play a different role in board monitoring and help extend our understanding of the function of social connections of independent directors in corporate governance.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-08-17
      DOI: 10.1108/IJMF-01-2021-0049
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Information search in times of market uncertainty: an examination of
           aggregate and disaggregate uncertainty

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      Authors: Marshall A. Geiger , Rajib Hasan , Abdullah Kumas , Joyce van der Laan Smith
      Abstract: This study explores the association between individual investor information demand and two measures of market uncertainty – aggregate market uncertainty and disaggregate industry-specific market uncertainty. It extends the literature by being the first to empirically examine investor information demand and disaggregate market uncertainty. This paper constructs a measure of information search by using the Google Search Volume Index and computes measures of aggregate and disaggregate market uncertainty using institutional investors' trading data from Ancerno Ltd. The relation between market uncertainty, as measured by trading disagreements among institutional investors, and information search is analyzed using an OLS (Ordinary Least Squares) regression model. This paper finds that individual investor information demand is significantly and positively correlated with aggregate market uncertainty but not associated with disaggregated industry uncertainty. The findings suggest that individual investors may not fully incorporate all relevant uncertainty information and that ambiguity-related market pricing anomalies may be more associated with disaggregate market uncertainty. This study presents an examination of aggregate and disaggregate measures of market uncertainty and individual investor demand for information, shedding light on the efficiency of the market in incorporating information. A limitation of our study is that our data for market uncertainty is based on investor trading disagreement from Ancerno, Ltd. which is only available till 2011. However, we believe the implications are generalizable to the current time period. This study provides the first concurrent empirical assessment of investor information search and aggregate and disaggregate market uncertainty. Prior research has separately examined information demand in these two types of market uncertainty. Thus, this study provides information to investors regarding the importance of assessing disaggregate component measures of the market. This paper is the first to empirically examine investor information search and disaggregate market uncertainty. It also employs a unique data set and method to determine disaggregate, and aggregate, market uncertainty.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-08-23
      DOI: 10.1108/IJMF-05-2020-0230
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Financial expert CEOs, political intervention, and corporate investment
           decisions: evidence from the anti-corruption campaign

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      Authors: Hamish D. Anderson , Jing Liao , Shuai Yue
      Abstract: Employing the anti-corruption campaign as an exogenous political shock, this paper examines how political intervention shapes the impact of financial expert CEOs on firm investment decisions. This paper uses a sample of 2,808 Chinese firms listed in the Shanghai and Shenzhen Stock Exchanges from 2003 to 2016. Panel data is used for conducting the analysis controlling for firm, industry, and year fixed effects. The authors found that CEOs with financial expertise are sensitive to political intervention when making investment decisions. First, financial expert CEOs spend more on R&D expenditure in private-owned companies and they are associated with less R&D expenditure in state-owned enterprises (SOEs). Second, financial expert CEOs are associated with higher investment expenditure in general, but they become less likely to invest more in the post-anti-corruption period. The reduction in investment expenditure due to the anti-corruption campaign is more pronounced in SOEs than in private-owned companies. Third, the anti-corruption campaign promotes R&D investment in general, but in SOEs, expert CEOs tend to be less likely to invest more on R&D after the anti-corruption shock. This paper enriches the growing literature on the impact of political intervention and the role of the anti-corruption campaign on corporate behaviour.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-08-16
      DOI: 10.1108/IJMF-12-2020-0622
      Issue No: Vol. 18 , No. 3 (2021)
       
  • How do founder-CEOs sell their remaining ownership shares' Theory and
           evidence

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      Authors: Xu Niu
      Abstract: In this paper, the author attempts to answer an important question upon founder-CEOs' exiting: How do they sell their remaining ownership shares' The literature has largely been silent on this question, and therefore is missing an important piece of the puzzle on the final stage of the founding entrepreneurs' involvement in their companies. The author uses both theoretical models and empirical methods to examine how founder-CEOs sell their remaining ownership shares. The author finds that founder-CEOs of high-growth firms and those with high managerial ability are more likely to sell remaining ownership shares gradually rather than suddenly. Moreover, if either the growth or the managerial ability is high, founder-CEOs managing firms with high volatility tend to sell gradually. This paper provides insights into the final stage of founding entrepreneurs' involvement in companies. The methodology of pattern recognition also helps investors and regulators in tracking and monitoring stock trading of founders and other company insiders.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-29
      DOI: 10.1108/IJMF-03-2021-0149
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Is the new issue puzzle real' Evidence from implied cost of capital

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      Authors: Snow Han
      Abstract: This study aims to provide new explanation of the new issue puzzle. This study uses market implied cost of capital (ICC), rather than ex post realized returns, as proxy for ex ante expected returns, and sheds new light on the question why initial public offering (IPO) firms underperform the market within a 3–5 years period after the offerings. Using ICC, the author finds that the market expects to earn higher risk premium for new listing firms than similar firms, which is contradictory to the documented new issue puzzle. The higher expected returns come from higher idiosyncratic volatility for newly listed firms, which are young and have more growth opportunities. The author also reports that investors are negatively surprised by lower-than-expected performances of newly listed firms. The author’s results provide new empirical evidence that the new issue puzzle does not exist. Previous results observed IPO firms' under-performance is attributable to that ex post realized returns are a noisy proxy for ex ante expected returns, especially for newly listed firms with limited information.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-27
      DOI: 10.1108/IJMF-09-2020-0494
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Individual investors' responses to mutual fund fire sales and sell-side
           analysts' price-correcting revisions

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      Authors: Jinglin Jiang , Weiwei Wang
      Abstract: This paper investigates individual investors' responses to stock underpricing and how their trading decisions are affected by analysts' forecasts and recommendations. This empirical study uses mutual fund fire sales as an exogenous source that causes stock underpricing and analysts' forecasts and recommendations as price-correcting information. The study further uses regression analysis to examine individual investors' responses to fire sales and how their responses vary with price-correcting information. The authors first show that individual investors respond to mutual fund fire sales by significantly decreasing net buys, and this effect appears to be prolonged. Next, the authors find that the decrease of net buys diminishes following analysts' price-correcting earnings forecast revisions and stock recommendation changes. Hence, the authors suggest that individual investors are not “wise” enough to recognize flow-driven underpricing; however, this response is weakened by analysts' price-correcting information. There is an ongoing debate in the literature about whether individual investors should be portrayed as unsophisticated traders or informed traders who can predict future returns. The authors study a unique information event and provide new evidence related to both perspectives. Overall, our evidence suggests that the “unsophisticated traders” perspective is predominant, whereas a better information environment significantly reduces individual investors' information disadvantage. This finding could be of interest to both academic researchers and regulators.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-26
      DOI: 10.1108/IJMF-01-2021-0054
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Board independence and private information-based trading: evidence from
           Malaysia

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      Authors: Jiunn-Shyan Khong , Chee-Wooi Hooy , Chun-Teck Lye
      Abstract: This study investigates the effect of board independence on private information-based trading (PIBT) events. This study also examines the interaction effects of firm's disclosure quality and the statutory and demographic roles of independent directors and board diversity attributes, respectively, on the relationship between board independence and PIBT. This study uses panel data of 811 non-financial public listed companies in Bursa Malaysia for the sample period 2009–2017. The dynamic general method of moments (DGMM) is used for the dynamic panel data estimation and to address the potential endogeneity problem. The results show that board independence has a negative effect on PIBT and the effect could be strengthened by firm's disclosure quality, women independent directors and board gender diversity, but attenuated by CEO duality. The overall result suggests that apart from independent audit committee, the statutory and demographic attributes of independent directors and board diversity, and firm's disclosure quality are complementary to board independence in preventing persistent PIBT. This study augments the existing corporate governance and information-based trading literature from the perspectives of firm's disclosure quality, and the statutory and demographic roles of independent directors and board diversity attributes, by examining their effects on the relationship between board independence and PIBT.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-23
      DOI: 10.1108/IJMF-09-2020-0469
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Informational content of options around analyst recommendations

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      Authors: Qingxia Wang , Robert Faff , Min Zhu
      Abstract: More studies have investigated the relation between option measures and stock returns during scheduled corporate events. This study adds to the literature and investigates the informational role of options concerning stock returns following unscheduled corporate news events. The authors focus on individual analysts' recommendation changes rather than consensus revisions, as the recommendation consensus might discard a large amount of potentially valuable information in the aggregation process. Based on the econometric model, the authors follow Bakshi et al. (2003) to construct the model-free option implied measures. The authors further decompose the implied option variance into upside and downside components. In such a way, the different informational roles of call and put options can be distinguished. A variety of regression analyses are conducted to examine the predictive power of option implied measures, and the ordered probit model is used to test the tipping hypothesis of analyst recommendations. This study’s results show that the option market impounds the “valuable” firm-specific news; thus, the pre-event option market is strongly related to stock returns around recommendations even though recommendation changes are largely “unscheduled”. At the same time, these results suggest that upside (good) and downside (bad) implied volatilities contain distinctive information on subsequent stock returns. This study provides new evidence that an increase in upside (downside) volatility around analyst recommendation changes would increase the probability that analysts upgrade (downgrade) the stock. The findings provide implications for investors and risk managers in making investment decisions.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-20
      DOI: 10.1108/IJMF-04-2021-0168
      Issue No: Vol. 18 , No. 3 (2021)
       
  • Nonlinear linkages between bank asset quality and profitability: evidence
           from dynamic and quantile approaches using a global sample

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      Authors: Faisal Alqahtani , Besma Hamdi , Michael Skully
      Abstract: The purpose of this study is to examine whether the relationship between asset quality and profitability is linear or nonlinear, using a global dataset containing 2,943 banks from advanced and emerging economies. The authors use the U-shape test to investigate the existence of a nonlinear relationship between asset quality and profitability. In addition, the dynamic panel generalised method of moments (GMM) and quantile regression are used to examine the nonlinear effect of profitability on nonperforming loans (NPLs). After controlling for macroeconomic and bank internal factors, the authors find empirical evidence supporting the existence of a nonlinear relationship in the form of a U-shape. This is also confirmed through the three-stage U test procedure. After distinguishing between advanced and emerging economies, the authors also find that, in advanced markets, the credit policy responds more rapidly to changes in credit market conditions than in emerging markets, providing insights into credit market dynamics. Further research can check the robustness of this study’s findings in different markets and investigate the existence of nonlinearity in other bank variables. In a nutshell, the results demonstrate potential implications for policymakers who need to carefully monitor banks' lending behaviour to ensure that banks do not lower lending standards. In addition, banking regulators and supervisors should consider the possible nonlinear relationship in their risk assessments and macrostress tests. Further, these results are important for bank managers, who should monitor the performance of their loan portfolios to ensure that their credit officers do not lower credit standards. Likewise, for banks located in an emerging economy, investing in human capital and advanced technologies can enable them to respond more effectively to changes in the credit market. To the best of the authors' knowledge, this study is considered the first to provide empirical evidence for the nonlinear relationship between asset quality and profitability.
      Citation: International Journal of Managerial Finance
      PubDate: 2021-07-08
      DOI: 10.1108/IJMF-06-2020-0301
      Issue No: Vol. 18 , No. 3 (2021)
       
  • International Journal of Managerial Finance

    • Free pre-print version: Loading...

       
 
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