Search results

This study aims to investigate the impact of digital leadership (capabilities, experience, predictability and vision) and green organizational culture on firms' digital transformation and financial performance. Additionally, the research aims to evaluate the mediating role of digital transformation in the relationship between digital leadership and firms' financial performance.

A purposive sampling technique was employed to identify and select individuals with relevant expertise and experiences in the field of digital transformation. A total of 164 responses were collected, and the questionnaire was designed based on a five-point Likert-type scale. The data were analyzed using SmartPLS 4 (Statistical Software for Structural Equation Modeling).

The findings indicate that digital leadership capabilities, experience, predictability and vision do not directly impact firms' performance. However, there is an indirect influence on firms' performance through digital transformation. While both digital transformation and green organizational culture (GOC) positively influence firms' financial performance, GOC, leader predictability and leader vision positively influence digital transformation. The results confirm that digital transformation mediates the relationship between capabilities, experience, predictability and vision and firms' financial performance.

The study highlights that strategic capabilities can enhance value-added processes during digital transformation, contributing to sustainability in the digital era. Overall, this research significantly advances both theoretical understanding and practical applications in the context of digital leadership and its impact on firms. Limited digital transformation stages among Malaysian firms impact the research, with some entities cautious about data disclosure and having limited cooperation with researchers. Gathering data from diverse sources would have strengthened the findings and methodological rigor of this multilevel study. Despite these limitations, the research offers fresh insights into the role of GOC, different facets of digital leadership and their influence on digital transformation and financial performance. This enhances existing knowledge and challenges assumptions of the transformational leadership theory (TLT) framework.

The study opens the door to further research into distinct leadership components and their effects in a similar context. By highlighting the positive influence of capabilities, experience, predictability and vision on digital transformation, it expands the theoretical and empirical scope in the realm of digital leadership. These findings encourage critical examination, refinement and evolution of TLT, providing insights for leaders and managers as they navigate digitalization, financial performance and digital leadership within organizations. In an era of digital transformation, leaders play a central role in building a psychologically safe environment and nurturing digitally skilled teams capable of managing technological changes. Leaders should possess the digital capabilities, experience, vision and predictability necessary to drive digital transformation, mitigate potential threats and adapt to the dynamic digital landscape.

These findings support government initiatives to accelerate digitalization and Industry 4.0 implementation. Collaboration between the government and private organizations is essential to create policies and practices that facilitate broad participation in digital transformation programs. Policymakers must adopt a proactive approach to address issues related to Internet accessibility, trade barriers, financing access and resource reallocation. These policies aim to ensure a high-quality and affordable digital infrastructure, cultivate trust in digital technologies and equip organizational leaders with the necessary digital skills.

This research provides valuable insights for practitioners to enhance firms' digital transformation. As a practical contribution, this study’s findings can inform how firms can better manage their key digital leadership resources and GOC to foster digital transformation and improve their financial performance.

Investors are inattentive to continuous information as opposed to discrete information, resulting in underreaction to continuous information. This paper aims to examine if the well-documented return predictability of the strategies based on the ratio of short-term to long-term moving averages can be enhanced by conditioning on information discreteness. Anchoring bias has been the popular explanation for the source of underreaction in the context of moving averages-based strategies. This paper proposes and studies another possible source based on investor inattention that can potentially result in superior performance of these strategies.

The paper uses portfolio sorting as well as Fama-MacBeth cross-sectional regressions. For examining the role of information discreteness in the return predictability of the moving average ratio, the sample stocks are double-sorted based on the moving average ratio and information discreteness measure. The returns to these portfolios are computed using standard approaches in the literature. The regression approach controls for various well-known return predictors.

This study finds that the equally-weighted monthly returns to the long-short moving average ratio quintile portfolios increase monotonically from 0.54% for the discrete information portfolio to 1.37% for the continuous information portfolio over the 3-month holding period. This study observes a similar pattern in risk-adjusted returns, value-weighted portfolios, non-January returns, large and small stocks, for alternative holding periods and the ratio of 50-day to 200-day moving average. The results are robust to control for well-known return predictors in cross-sectional regressions.

To the best of the authors’ knowledge, this is the first paper to document the significant role of investor inattention to continuous information in the return predictability of strategies based on the moving average ratios. There are many underreaction anomalies that have been reported in the literature, and the paper's results can be extended to those anomalies in subsequent research.

The findings of this paper have important practical implications. Strategies based on moving averages are an extremely popular component of a technical analyst's toolkit. Their profitability has been well-documented in the prior literature that attributes the performance to investors' anchoring bias. This paper offers a readily implementable approach to enhancing the performance of these strategies by conditioning on a straightforward measure of information discreteness. In doing so, this study extends the literature on the role of investor inattention to continuous information in anomaly profits.

While there is considerable literature on technical analysis, and especially on the performance of moving averages-based strategies, the novelty of this paper is the analysis of the role of information discreteness in strategy performance. Not only does the paper document robust evidence, but the findings suggest that the investor’s inattention to continuous information is a more dominant source of underreaction compared to anchoring. This is an important result, given that anchoring has so far been considered the source of return predictability in the literature.

Using the next-day and next-week returns of stocks in the Korean market, we examine the association of option volume ratios – i.e. the option-to-stock (O/S) ratio, which is the total volume of put options and call options scaled by total underlying equity volume, and the put-call (P/C) ratio, which is the put volume scaled by total put and call volume – with future returns. We find that O/S ratios are positively related to future returns, but P/C ratios have no significant association with returns. We calculate individual, institutional, and foreign investors’ option ratios to determine which ratios are significantly related to future returns and find that, for all investors, higher O/S ratios predict higher future returns. The predictability of P/C depends on the investors: institutional and individual investors’ P/C ratios are not related to returns, but foreign P/C predicts negative next-day returns. For net-buying O/S ratios, institutional net-buying put-to-stock ratios consistently predict negative future returns. Institutions’ buying and selling put ratios also predict returns. In short, institutional put-to-share ratios predict future returns when we use various option ratios, but individual option ratios do not.

This study examines the association between internal corporate governance mechanisms (i.e. board of directors and audit committee) and the information value of bank earnings. The authors comparatively assess this association across different bank types, Islamic versus conventional banks. The authors also investigate the mediating effect of Shariah governance.

The authors utilize a unique and an international sample of 723 bank-year observations representing 100 listed banks from 16 countries during the period 2007–2015. The authors investigate the characteristics of the board of directors and audit committee (i.e. size and independence) and employ three core analyses for earnings informativeness (i.e. earnings persistence, cash flow predictability and reliability of loan loss provisions). Additional analyses address Shariah supervisory boards’ (SSBs’) size, financial expertise and multiple outside directorships. The authors use the random-effect Generalised Least Squares (GLS) estimation technique and provide several robustness checks and sensitivities.

The authors find that, on average, having large and independent boards (and audit committees) increases the informativeness of reported earnings for banks. Conditional on bank type, our results report strong evidence for differential effects across the two alternative banking systems. In Islamic banks, large and independent board of directors (and audit committees) is positively associated with all measures of information value. There is insignificant evidence for conventional banks. However, SSBs show no significant effect on the reported earnings’ informativeness.

This is the first study, to the best of our knowledge, that empirically and comparatively assesses the information value of reported earnings in association with effective internal governance while recognizing the institutional characteristics of different bank types. The authors offer new insights to policymakers, investors and other stakeholders located within countries operating on a dual banking system. The results could help regulators to improve their rules/guidance related to double-layer governance and financial reporting quality.

This paper aims to investigate the conditional equicorrelation and cross-quantile dependence between the DeFi, European and GCC currency markets (Oman, Qatar, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates).

This study applies the GARCH-DECO model and cross-quantilogram framework.

The findings reveal evidence of weak and negative average equicorrelations between the examined markets through time, excluding the COVID-19 outbreak and Russia–Ukraine conflict, which is consistent with the literature examining relationships in different markets. From the cross-quantilogram model, the authors note that the dependence between DeFi, EURO and GCC foreign exchange rate markets is greatest in the short run and diminishes over the medium- and long-term horizons, indicating rapid information processing between the markets under consideration, as most innovations are transmitted in the short term.

For the pairs of DeFi and currency markets, the static and dynamic optimal weights and hedging ratios are also estimated, providing new empirical data for portfolio managers and investors.

To the best of the authors’ knowledge, this is one of the most important research looking into the conditional correlation and predictability between the DeFi, EURO and GCC foreign exchange markets. More importantly, this study provides the first empirical proof of the safe-haven, hedging and diversification qualities of DeFi, EURO and GCC currencies, and this work also covers the COVID-19 pandemic and the Russia–Ukraine war with the use of a single dynamic measure produced by the GARCH-DECO model. In addition, the directional predictability between variables under consideration using the cross-quantilogram model is examined, which can be capable of capturing the asymmetry in the quantile dependent structure. The findings are helpful for both policymakers and investors in improving their trading selections and strategies for risk management in different market conditions.

The purpose of this paper is to investigate how bank-specific factors affect the riskiness of conventional and Islamic banks in response to shocks in major financial indices as market conditions change.

The authors use a multivariate quantile model using daily equity returns data to analyze financial risk spillovers in the values at risk that may occur between major financial indices and the equity prices of conventional and Islamic banks worldwide. Then, using both quantile and quantile-on-quantile models, the authors examine the effects of bank-specific variables such as leverage ratio, bank size, return on equity and capital adequacy ratio on the initial impact of shocks in major global financial indices on bank equity price returns at different quantiles of shocks and bank-specific variables.

The findings reveal that major financial indices can predict bank stock returns. Moreover, the authors find that the effect of bank-specific factors on the riskiness of banks is heterogeneous in that it depends on the bank type (Islamic vs conventional), the level of banking variable (high vs low) and, more importantly, market conditions.

To the best of the authors’ knowledge, this is the first study that compares the dual banking system with stock market performance while considering bank-specific variables as market conditions change. The results of this study reveal that the effect of bank-specific variables on bank performance varies according to different quantiles of shocks and bank-specific variables. Islamic banks may echo or differ from conventional banks depending on the specific factor under investigation.

This paper aims to contribute to the debate over the desirability of introducing an accrual-based accounting system in the public sector by examining whether accrual-based accounting information is superior to cash-based information in the context of public sector entities.

This paper applies a quantitative research method to assess the degree of smoothness and relevance of the accrual components of income recorded by 302 entities of the Italian National Health Service (INHS) over the period 2014–2020.

The analysis reveals that net income is smoother than cash flows as a summary measure of economic results and that accounting for accruals improves the predictability of future cash flows. However, the authors' novel disaggregation of accrual accounts reveals that those accounts that contribute the most to making income smoother than cash flows – noncurrent assets and liabilities – are also those that contribute the least to predicting future cash flows.

The disaggregation of accrual accounts allows to identify the sources of the informational benefits of accrual accounting, and to document the existence of an informational “trade-off” between smoothness and relevance in the context of public sector entities.

The purpose of this study is to analyse the internationalisation decision-making process using causation and effectuation.

The proposed hypotheses are tested with a survey data set of 148 Kenyan small and medium-sized enterprises (SMEs) to assess the pre-internationalisation decision-making of the firm. Multinomial logistic regression has been used to predict the categories from total effectuation to total causation.

The results of this study show that firm resources and capability provide a solid basis for firms' internationalisation. The entrepreneur becomes more effectual commence as they assess the firm's resource and capability. Entrepreneurs with a high entrepreneurial self-efficacy use both causation and effectuation with a bias towards effectuation. Increasing environmental predictability led the firms to use less effectuation, and increasing psychic distance entails high effectuation relative to high causation in the Kenyan context.

The sample choice of the category is Kenyan SMEs which may raise some questions. This study assumed that SMEs sampled had the same level of internationalisation experience regardless of the number of years in business.

This study theoretically advances the field of international business by combining the Uppsala internationalisation model with effectuation; this study defines four antecedents of decision-making to form its conceptual framework to study internationalisation decision-making approach for SMEs using the effectuation logic and adds to the stream of literature that has reviewed the factors that influence the internationalisation decision-making process for SMEs in developing countries.

This paper explores the similarities and differences in privacy attitudes, trust and risk beliefs between younger and older adults on social networking sites. The objective of the article is to ascertain whether any notable differences exist between younger (18–25 years old) and older (55+ years old) adults in how trust and risk are influenced by privacy concerns upon personal information disclosure on social media.

A Likert scale instrument validated in previous research was employed to gather the responses of 148 younger and 152 older adults. The scale was distributed through Amazon Mechanical Turk. Data were analyzed through partial least squares structural equation modeling.

No significant differences were found between younger and older adults in how social media privacy concerns related to trust and risk beliefs. Two privacy concern dimensions were found to have a significant influence on perceptions of risk for both populations: collection and control. Predictability and a sense of control are proposed as two conceptual approaches that can explain these findings.

This article is the first one to explore age differences in privacy concerns, trust and risk on social media employing conceptual developments and an instrument specifically tailored to the social media environment. Based on the findings, several strategies are suggested to keep privacy concerns on social media at a minimum, reduce risk perceptions and increase users' trust.