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Open Access
Article
Publication date: 3 August 2023

Ahmad Hakimi Tajuddin, Shabiha Akter, Rasidah Mohd-Rashid and Waqas Mehmood

The purpose of this study is to examine the associations between board size, board independence and triple bottom line (TBL) reporting. The TBL report consists of three…

1133

Abstract

Purpose

The purpose of this study is to examine the associations between board size, board independence and triple bottom line (TBL) reporting. The TBL report consists of three components, namely, environmental, social and economic indices.

Design/methodology/approach

This study’s sample consists of top 50 listed companies from the year 2017 to 2019 on Tadawul Stock Exchange. Ordinary least squares, quantile least squares and robust least squares are used to investigate the associations between board characteristics and TBL reporting, including its separate components.

Findings

The authors find a significant negative association between TBL reporting and board independence. Social bottom line is significantly and negatively related to board size and board independence. Results indicate that board independence negatively influences the TBL disclosure of companies. Therefore, companies are encouraged to embrace TBL reporting. This suggests that businesses should improve the quality of their reporting while ensuring that voluntary disclosures reflect an accurate and fair view in order to preserve a positive relationship with stakeholders.

Originality/value

The present study explains the evidence for the determinants of the TBL in Saudi Arabia.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Open Access
Article
Publication date: 7 June 2021

Tamoor Khan, Jiangtao Qiu, Ameen Banjar, Riad Alharbey, Ahmed Omar Alzahrani and Rashid Mehmood

The purpose of this paper is to assess the impacts on production of five fruit crops from 1961 to 2018 of energy use, CO2 emissions, farming areas and the labor force in China.

1909

Abstract

Purpose

The purpose of this paper is to assess the impacts on production of five fruit crops from 1961 to 2018 of energy use, CO2 emissions, farming areas and the labor force in China.

Design/methodology/approach

This analysis applied the autoregressive distributed lag-bound testing (ARDL) approach, Granger causality method and Johansen co-integration test to predict long-term co-integration and relation between variables. Four machine learning methods are used for prediction of the accuracy of climate effect on fruit production.

Findings

The Johansen test findings have shown that the fruit crop growth, energy use, CO2 emissions, harvested land and labor force have a long-term co-integration relation. The outcome of the long-term use of CO2 emission and rural population has a negative influence on fruit crops. The energy consumption, harvested area, total fruit yield and agriculture labor force have a positive influence on six fruit crops. The long-run relationships reveal that a 1% increase in rural population and CO2 will decrease fruit crop production by −0.59 and −1.97. The energy consumption, fruit harvested area, total fruit yield and agriculture labor force will increase fruit crop production by 0.17%, 1.52%, 1.80% and 4.33%, respectively. Furthermore, uni-directional causality is correlated with the growth of fruit crops and energy consumption. Also, the results indicate that the bi-directional causality impact varies from CO2 emissions to agricultural areas to fruit crops.

Originality/value

This study also fills the literature gap in implementing ARDL for agricultural fruits of China, used machine learning methods to examine the impact of climate change and to explore this important issue.

Details

International Journal of Climate Change Strategies and Management, vol. 13 no. 2
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 23 August 2021

Waqas Mehmood, Rasidah Mohd-Rashid, Chui Zi Ong and Yasir Abdullah Abbas

The objectives of this study are twofold. First, it intends to investigate the symmetric link between initial public offering (IPO) variability and the determinants of the stock…

2523

Abstract

Purpose

The objectives of this study are twofold. First, it intends to investigate the symmetric link between initial public offering (IPO) variability and the determinants of the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment. Second, this study intends to examine the asymmetric link between IPO variability and the aforementioned determinants, namely the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment.

Design/methodology/approach

Data from 1992 to 2018 were gathered from the country of Pakistan in order to achieve the above objectives. Augmented Dickey–Fuller (ADF) and Phillips Perron (PP) unit root tests were employed to determine the data's stationarity properties. The Auto Regressive Distributive Lags (ARDL) model was utilized to examine the symmetric links, and the Non-Linear Auto Regressive Distributive Lag Model (NARDL) was employed to determine the asymmetric links. While the long-run co-integration was examined using the ARDL bound test, the short-run dynamics were tested using the error correction method (ECM).

Findings

The macroeconomic variables of the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment are found to pose significant short-run and long-run symmetric and asymmetric effects on IPO variability. These results indicate the significance of the aforementioned variables in enhancing IPO variability. The findings also demonstrate the typical reactions of inflation, GDP and FDI towards negative and positive shocks in IPO variability and inflation. This evidence implies that Pakistan's poor capital market development is reflected in the country's weak macroeconomic factors. At the same time, the reduced IPO variability in the country also reflects the lack of confidence among prospective issuers and investors due to Pakistan's weak macroeconomic indicators.

Originality/value

This is the first study of its kind to properly investigate the symmetric and asymmetric effects of the macroeconomic variables on Pakistan's IPO variability.

Details

Journal of Economics, Finance and Administrative Science, vol. 26 no. 52
Type: Research Article
ISSN: 2218-0648

Keywords

Open Access
Article
Publication date: 12 June 2023

Chui Zi Ong, Rasidah Mohd-Rashid, Ayesha Anwar and Waqas Mehmood

The main purpose of this study is to examine the disclosure of earnings forecasts in firms' prospectuses to explain investor demands or, in other words, oversubscription rates of…

Abstract

Purpose

The main purpose of this study is to examine the disclosure of earnings forecasts in firms' prospectuses to explain investor demands or, in other words, oversubscription rates of Malaysian initial public offerings (IPOs).

Design/methodology/approach

Ordinary least squares and robust methods were used to examine cross-sectional data comprising 466 fixed-price IPOs reported for the period from January 2000 to February 2020 on Bursa Malaysia.

Findings

The results showed that IPOs with earnings forecasts obtained higher oversubscription rates than those without earnings forecasts. IPOs with earnings forecasts provide value-relevant signals to prospective investors about the good prospects of firms, resulting in an increase in the demand for IPO shares. For the IPO samples listed during the global financial crisis (GFC) period, IPOs with earnings forecasts had negative impacts on the oversubscription rates. These results were robust to quantile methods and the two-stage least squares method.

Research limitations/implications

The research findings provide fresh information for investors regarding the importance of earnings forecasts as a trustworthy signal of a firm’s quality when making share subscription decisions.

Practical implications

The regulator is advised to encourage issuers to include earnings forecasts in their prospectuses since such forecasts help to increase the demand for IPOs.

Originality/value

This study contributes to the literature by offering empirical evidence regarding the signalling impact of earnings forecast disclosures on investor demands for Malaysian IPOs. Moreover, this study provides evidence demonstrating the impact of earnings forecast disclosures on oversubscription rates of Malaysian IPOs during the GFC period.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 4
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 23 March 2022

Ali Albada, Soo-Wah Low and Moau Yong Toh

This study aims to investigate the moderating role of investor demand on the relationship between the investors' divergence of beliefs and the first-day initial public offering…

1062

Abstract

Purpose

This study aims to investigate the moderating role of investor demand on the relationship between the investors' divergence of beliefs and the first-day initial public offering (IPO) return.

Design/methodology/approach

The study sample covers the period from 2010 to 2019 and consists of 117 IPOs that are priced using the fixed price and listed on the Malaysian stock exchange (Bursa Malaysia). This study employed both the ordinary least square (OLS) and the quantile regression (QR) methods.

Findings

Investor demand, proxied by the over-subscription ratio (OSR), plays a moderating role in increasing the effect of investors' divergence of beliefs on initial return, and the moderation effects vary across the quantile of initial return. Pure moderation effects are observed at the bottom and top quantiles, suggesting that investor demand is necessary for divergence of beliefs to influence IPO initial return. However, at the middle quantile of initial return, investor demand is a quasi-moderator. That is, the OSR not only moderates the relationship between the divergence of beliefs and initial return but also has a positive effect on the initial return.

Practical implications

Investors' excessive demand for an IPO issue exacerbates the IPO under-pricing issue induced by a divergence of beliefs amongst investors, thus rendering greater equity market inefficiency.

Originality/value

To the authors' knowledge, this study is amongst the first to empirically investigate the moderating role of investor demand on the investors' divergence of beliefs and IPO initial return relationship.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 4
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 17 October 2022

Ismail Juma Ismail

Consumer psychology research has established the importance of customer satisfaction as a determinant of customer repurchasing intention…

4977

Abstract

Purpose

Consumer psychology research has established the importance of customer satisfaction as a determinant of customer repurchasing intention. Nonetheless, even satisfied customers switch brands. Also, even dissatisfied customers have repurchasing intentions. This means that customer repurchasing behaviour is extremely difficult to predict, necessitating additional research to identify additional factors that can help organizations better understand the methods to predict customer repurchasing intention. To fill this knowledge gap, this study examined the mediating effects of brand love (BL) and positive word of mouth (PWOM) on psychological contract fulfilment (PCF) and customer repurchasing intentions.

Design/methodology/approach

This is a cross-sectional study. The study used structural equation modelling (SEM) to analyse relationships from a sample size of 400 beauty salon customers. Also, a process macro mediation test was used to analyse the mediating effects of BL and PWOM on the relationship between PCF and customer repurchase intentions.

Findings

The findings indicate that transactional and relational psychological contracts have a positive and significant relationship with BL and PWOM. As well, BL and PWOM positively and significantly influence customer repurchase intentions. Finally, the findings indicate that BL and PWOM mediate the relationship between psychological contract fulfilment and customer repurchase intentions.

Research limitations/implications

This survey sampled beauty salons solely. Given that each type of organization may have a unique way of fulfilling psychological contracts, future studies may include more categories such as restaurants and craftsmanship to broaden the sample. Additionally, this study utilized female beauty salons. Therefore, future research could include salons that cater to women and men to boost the sample's generalizability. Finally, this study concluded that BL and positive recommendations are the most effective variables for resolving consumer satisfaction challenges. However, additional factors can probably amplify this fact by focusing on additional elements to broaden the arguments.

Originality/value

Past studies have extensively covered customer repurchasing intention in relation to customer satisfaction. However, it was noted that even some satisfied customers could switch to other brands, and those who were dissatisfied could repurchase the brand. Given that little is known about how other factors than customer satisfaction can affect repurchasing intentions, this study examines the mediating effects of BL and PWOM on PCF and customer repurchase intentions.

Open Access
Article
Publication date: 27 January 2023

Francesco Calza, Annarita Sorrentino and Ilaria Tutore

The aim of this work is to provide a theoretical model that can help companies to develop a unique approach to achieve both corporate environmental sustainability (CES) and…

7154

Abstract

Purpose

The aim of this work is to provide a theoretical model that can help companies to develop a unique approach to achieve both corporate environmental sustainability (CES) and successful customer experience management (CEM).

Design/methodology/approach

A two-phase study achieved the research aim. The first phase consisted of the analysis of contemporary theoretical contributions with a focus on CES and CEM. In the second phase, taking a qualitative approach, the key dimensions identified in the initial analysis were investigated to explore the dominant perceptions of practitioners and to hone the theoretical categories.

Findings

Five innovative pathways emerged from the study to inform decision-making while maintaining the dual objectives of CES and successful CEM. These pathways are combined to offer a strategic tool for managers and for research advances. This original integrated model also offers six novel theoretical propositions that describe how to shape corporate decisions to achieve environmental sustainability in CEM.

Research limitations/implications

Firms can benefit from an approach that integrates CES and CEM to develop a new mindset for an innovative and valuable decision-making process and to design more captivating experiences for customers. Nevertheless, the efficacy and generalizability of the theoretical framework and propositions require empirical testing.

Originality/value

This paper makes an original contribution to the environmental sustainability and marketing literature by bringing together all elements in these fields of research in a conceptual model. Moreover, this paper proposes theoretical propositions that advance knowledge of the subject and offer ideas for future research and managers.

Details

Management Decision, vol. 61 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 25 September 2023

Sutap Kumar Ghosh

This research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.

Abstract

Purpose

This research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.

Design/methodology/approach

Utilizing a sample of 477 individual investors who actively trade on the Bangladesh capital market, this empirical study was conducted. The objective of this examination is to ascertain the investment trading behavior of retail investors in the Bangladesh capital market using multiple regression, hypothesis testing and correlation analysis.

Findings

The coefficients of market categories, preferred share price ranges and investment source reveal negative predictor correlations; all predictors are statistically significant, with the exception of investment source. Positive predictive correlations exist between investor category, financial literacy degree, investment duration, emotional tolerance level, risk consideration, investment monitoring activities, internal sentiment and correct investment selection. Except for risk consideration and investment monitoring activities, all components have statistically significant predictions. The quantity of capital invested in the stock market is heavily influenced by the investment duration, preferred share price ranges, investor type, emotional toleration level and decision-making accuracy level.

Research limitations/implications

This investigation was conducted exclusively with Bangladeshi individual stockholders. Therefore, the existing study can be extended to institutional investors and conceivably to other divisions. It is possible to conduct this similar study internationally. And the query can enlarge with more sample size and use a more sophisticated econometric model. Despite that the outcomes of this study help the regulatory authorities to arrange more informative seminars and consciousness programs.

Practical implications

The conclusions have practical implications since they empower investors to modify their portfolios based on elements including share price ranges, investment horizons and emotional stability. To improve chances of success and reach financial objectives, they stress the significance of bettering financial understanding, active monitoring and risk analysis. Results can also be enhanced by distributing ownership over a number of market sectors and price points. The results highlight the value of patience and giving potential returns enough time.

Originality/value

This study on the trading behavior of investors in Bangladesh is unique and based on field study, and the findings of this study will deliver information to the stakeholders of the capital market regarding the investors’ trading behavior belonging to different categories, financial literacy level, investment duration, emotional tolerance level and internal feeling.

Details

LBS Journal of Management & Research, vol. 21 no. 2
Type: Research Article
ISSN: 0972-8031

Keywords

Open Access
Article
Publication date: 17 August 2021

Kashif Rashid, Yasir Bin Tariq and Mamoon Ur Rehman

This study examines the role of behavioural factors, such as confidence, optimism, pessimism and rational expectation, in affecting investment decisions in the Pakistani stock…

5884

Abstract

Purpose

This study examines the role of behavioural factors, such as confidence, optimism, pessimism and rational expectation, in affecting investment decisions in the Pakistani stock market.

Design/methodology/approach

Using daily trading data of Karachi Stock Exchange-100 index from January 2012 to December 2015, different regression models, including descriptive statistics and stationarity tests, are performed.

Findings

Results indicate that stock market trading has suffered from pessimistic behaviour of investors. In the first model, the authors find a positive sign of confidence and negative sign of optimism with the trading volume. The second model shows a positive role of confidence and rational expectations in affecting the trading volume in daily, Monday and Friday samples. The results of the third model show a negative sign of both optimism and rational expectation with the trading volume. Furthermore, the next model shows a negative sign of confidence combined with pessimism while testing their relationship with the trading volume. Finally, results of the final model suggest that optimism negatively affects the trading volume, and on the other hand, pessimism has a positive impact on the trading volume.

Research limitations/implications

The method and empirical testing of behavioural biases and their relationship with economic variable used in this study seem to be a promising way to better understand the role of psychology in deriving financial decisions for academics and policymakers.

Originality/value

This study uses secondary data for measuring behavioural biases and decomposes the effect between rational expectation and behavioural biases.

Details

Asian Journal of Accounting Research, vol. 7 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 2 June 2023

Jad EL Bizri, Elina Karttunen and Katrina Lintukangas

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related…

1451

Abstract

Purpose

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance.

Design/methodology/approach

A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance.

Findings

The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process.

Practical implications

Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement.

Social implications

Improving social dynamics and solutions in public procurement.

Originality/value

This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.

Details

Journal of Public Procurement, vol. 23 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

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