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1 – 10 of 22Fekri Ali Shawtari, Bilal Ahmad Elsalem, Milad Abdelnabi Salem and Mohamed Eskandar Shah
The financial system plays an essential role in facilitating the intermediation process for economic growth. Policymakers stress on achieving a well-developed and regulated…
Abstract
Purpose
The financial system plays an essential role in facilitating the intermediation process for economic growth. Policymakers stress on achieving a well-developed and regulated financial system to achieve economic development and resiliency. Using data from the State of Qatar, this paper aims to examine the impact of financial development indicator on economic growth; the impact of financial development indicator on hydrocarbon and nonhydrocarbon sector; the impact of Islamic banking on hydrocarbon and nonhydrocarbon economic growth.
Design/methodology/approach
The research uses quarterly data from 2007 to 2019 and adopts autoregressive distributed lag cointegration techniques to test the long- and short-run dynamic relationship between various measures of financial development and economic growth.
Findings
The results present evidence of long-term cointegration between overall financial development indicator and economic growth. Furthermore, the authors document the existence of long-term relationship between financial development and nonhydrocarbon sector. However, there is a lack of evidence on the long-run relationship between financial development and the hydrocarbon sector. Notwithstanding, Islamic banking contributes to overall economic development, as well as to the nonhydrocarbon sector.
Practical implications
This paper offers policymakers with insights to evaluate measures to diversify the economy. It also assists decision-makers in promoting Islamic finance, particularly to the banking sector as a vital contributor to economic growth.
Originality/value
To the best of the author’s knowledge, this paper is the first to evaluate financial development and economic growth for the case of Qatar in light of recent developments in Islamic finance.
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Shoukat Ali, Ramiz ur Rehman, Shoaib Aslam, Ismail Khan and Ghulam Murtaza
This paper empirically investigates the impact of board diversity in terms of demographic and cognitive dimensions on financial distress likelihood in an emerging Chinese market…
Abstract
Purpose
This paper empirically investigates the impact of board diversity in terms of demographic and cognitive dimensions on financial distress likelihood in an emerging Chinese market to explore whether the Chief Executive Officers' (CEOs) power moderates the relationship between board diversity and the probability of financial distress.
Design/methodology/approach
To test the hypothesized relationships, demographic diversity through gender, age and nationality, and cognitive diversity through education, expertise and tenure, are taken as independent variables to investigate their impact on the probability of financial distress measured by the Altman China Z score. Data is collected for 13,740 firm-year observations from 2009 to 2018. This study employs panel data regression under fixed effect assumptions. Further, to control the possible endogeneity issue, this study uses a two-step System Generalized Methods of Moments (GMM) model as a robust check.
Findings
The results reveal that board diversity is positively associated with financial distress Z score, suggesting that diverse boards are helpful in reducing the likelihood of financial distress. Moreover, CEO power positively moderates this relationship. It means that board diversity, in the presence of powerful CEOs, is more effective in reducing financial distress likelihood by controlling the wrong financial decisions taken by top executives to reap personal benefits. Further, the robustness model confirms the relationship between board diversity and the probability of financial distress.
Originality/value
To the best of researchers' knowledge, this is one of the earliest studies to investigate board diversity by constructing demographic and cognitive board diversity indexes as a determinant of financial distress likelihood in China. Further, researchers found no study in the literature using CEO power as a contextual variable on the relationship between board diversity and financial distress.
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Fayaz Ali, Muhammd Zubair Tauni, Muhammad Ashfaq, Qingyu Zhang and Tanveer Ahsan
Given the limited literature on depression as a contributing factor to compulsive social media use, the present research examines the role of perceived depressive mood (PDM) in…
Abstract
Purpose
Given the limited literature on depression as a contributing factor to compulsive social media use, the present research examines the role of perceived depressive mood (PDM) in developing compulsive social media use behavior. The authors also identify and hypothesize channels such as contingent self-esteem (CSE), social interaction anxiety (SIA) and fear of negative evaluation (FNE), which may explain how PDM affects compulsive social media use.
Design/methodology/approach
The research model was empirically tested with a survey of 367 Chinese university students using structural equation modeling by drawing on the escape and self-presentation lenses.
Findings
The findings indicate that PDM contributes to compulsive social media use behavior both directly and indirectly through CSE. Furthermore, the impact of CSE on compulsive social media use is mediated by the FNE, whereas SIA fails to mediate this effect.
Practical implications
The results can advance the authors’ knowledge of the role and process by which depressive mood impacts compulsive social media use. These findings may add insights into psychological treatment and help in, for example, developing counseling programs or coping strategies for depressed people to protect them from using social media excessively.
Originality/value
This research identifies the pathway mechanism between PDM and compulsive use of social media. It also increases the understanding of how CSE and social interaction deficiencies contribute to compulsive social media usage (CSMU).
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Muhammad Ahad and Zulfiqar Ali Imran
Governance quality has been a dominant factor to formulate policies for the development of financial institutions in the world. Therefore, this study aims to explore the impact of…
Abstract
Purpose
Governance quality has been a dominant factor to formulate policies for the development of financial institutions in the world. Therefore, this study aims to explore the impact of governance quality on financial institutions along with globalization in the case of Pakistan.
Design/methodology/approach
Time series data from 1996 to 2018 are considered for analysis. The NG-Perron is applied to check the order of integration. In addition, Kim and Perron (2009) structural break unit root test is used to identify break years. The autoregressive distributive lags (ARDL) bound testing approach is used to detect the long-run association among governance quality, financial institutions and globalization.
Findings
The results of unit root analysis show that all series are stationary at a different level of integration, I(0)/I(1). However, the long-run association is detected in the presence of break years. The authors find a positive impact of governance quality to determine financial institutions in the long-short-run. Similarly, globalization also enhances financial institutions but only in long run.
Originality/value
This study fills the gap in the economic literature by exploring the linkages between the financial institution and disaggregated governance indicators in the case of Pakistan. Moreover, a role of structural break is also captured during analysis. This study also opens some new insights for policymaking.
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Muhammad Farooq, Imran Khan, Qadri Al Jabri and Muhammad Tahir Khan
The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR…
Abstract
Purpose
The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR) activities. Consequently, the purpose of this study is to examine the impact of CSR as a mediator in the board diversity–FD relationship.
Design/methodology/approach
The study examined six board diversity dimensions – age, gender, nationality, education and tenure in 81 nonfinancial Pakistan Stock Exchange (PSX)-listed firms from 2010 to 2021. The CSR engagement of the sample firms is evaluated using a multidimensional financial approach and the likelihood of FD is computed using Altman’s Z-score. The system-generalized method of moments estimator is used to meet the study objectives. In addition, several tests are run to determine the robustness of the study’s findings.
Findings
Based on the procedure for mediation analysis outlined by Baron and Kenny (1986), the authors found that CSR is significantly inversely associated with the likelihood of FD. Second, board diversity variables age, gender and national diversity were positively associated with CSR. Third, board age, gender and national diversity are significantly inversely related to FD. Finally, it was found that there is partial mediation between board age diversity and FD, whereas full mediation is shown between board age diversity and FD and between board nationality diversity and FD.
Practical implications
This study provides practical insights into PSX’s board diversity for companies, regulators and policymakers.
Originality/value
This research studies the connection between board diversity and FD. In addition, the current study extended the analysis by testing for the first time the mediating role of CSR in the diversity–distress relationship, particularly in the context of an emerging economy.
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Ali Meftah Gerged, Shaojie Yao and Khaldoon Albitar
This study aims to investigate the possible implications of compliance with corporate governance (CG) provisions, including board composition and ownership structures, on the…
Abstract
Purpose
This study aims to investigate the possible implications of compliance with corporate governance (CG) provisions, including board composition and ownership structures, on the firm’s likelihood of falling into financial distress.
Design/methodology/approach
The study applies a random-effects logistic regression model as a baseline analysis using a sample of 110 FTSE 350 manufacturing companies from 2014 to 2019. This technique is supported by conducting a two-stage Heckman regression model to overcome the potential existence of endogeneity problems.
Findings
The empirical evidence suggests that board composition and ownership structure are heterogeneously associated with financial distress probabilities in that they might have either reduced or increased the financial distress of the sampled firms. Specifically, board independence, board gender diversity, audit committee independence and institutional ownership negatively influence the likelihood of financial distress. In contrast, and consistent with the expectations, ownership concentration is positively attributed to financial distress, while the board size, audit committee size and managerial ownership have insignificant impacts on financial distress.
Originality/value
The study extends the existing body of knowledge by examining the collective effect of board characteristics and ownership structures on firms’ financial distress likelihood among a sample of manufacturing firms within the FTSE 350 index post the 2008 global financial crisis and following the recent CG reforms in the UK during the study period from 2014 to 2019.
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Social media marketing has become a powerful strategic tool for many brands, but scholarly research in this domain is still in its infancy. This study aims to examine the effects…
Abstract
Purpose
Social media marketing has become a powerful strategic tool for many brands, but scholarly research in this domain is still in its infancy. This study aims to examine the effects of social media marketing activities on consumer online impulse buying intentions via brand resonance and emotional responses by incorporating the direct and moderating effects of social network proneness toward fashion retail brands.
Design/methodology/approach
By using snowball sampling, this study recruited 441 netizens (who were using fashion retail brands) and obtained their responses through an online survey. Structural equation modeling was applied to 394 responses for analysis.
Findings
The findings discovered that social media marketing activities significantly influenced brand resonance, consumer emotional responses and online impulse buying intentions. Likewise, brand resonance and emotional responses were positively associated with online impulse buying intentions and acted as decisive mediators. Social network proneness’s direct and moderating effects significantly increased consumer online impulse-buying intentions toward fashion retail brands.
Practical implications
This study provides recommendations to retail managers for creating and executing brand positioning, segmenting and targeting strategies to enhance consumers’ intentions for engaging in online impulsive purchases for fashion brands.
Originality/value
This original research contributes to the branding literature and stimulus–organism–response theory by focusing on social media marketing activities, brand resonance, emotional responses, social network proneness and consumer online impulse buying intentions toward fashion retail brands.
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Juan Gabriel Brida, Emiliano Alvarez, Gaston Cayssials and Matias Mednik
Our paper studies a central issue with a long history in economics: the relationship between population and economic growth. We analyze the joint dynamics of economic and…
Abstract
Purpose
Our paper studies a central issue with a long history in economics: the relationship between population and economic growth. We analyze the joint dynamics of economic and demographic growth in 111 countries during the period 1960–2019.
Design/methodology/approach
Using the concept of economic regime, the paper introduces the notion of distance between the dynamical paths of different countries. Then, a minimal spanning tree (MST) and a hierarchical tree (HT) are constructed to detect groups of countries sharing similar dynamic performance.
Findings
The methodology confirms the existence of three country clubs, each of which exhibits a different dynamic behavior pattern. The analysis also shows that the clusters clearly differ with respect to the evolution of other fundamental variables not previously considered [gross domestic product (GDP) per capita, human capital and life expectancy, among others].
Practical implications
Our results indirectly suggest the existence of dynamic interdependence in the trajectories of economic growth and population change between countries. It also provides evidence against single-model approaches to explain the interdependence between demographic change and economic growth.
Originality/value
We introduce a methodology that allows for a model-free topological and hierarchical description of the interplay between economic growth and population.
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Charilaos Mertzanis, Haitham Nobanee, Mohamed A.K. Basuony and Ehab K.A. Mohamed
This study aims to analyze the impact of corporate governance on firms’ external financing decisions in the Middle East and North Africa (MENA) region.
Abstract
Purpose
This study aims to analyze the impact of corporate governance on firms’ external financing decisions in the Middle East and North Africa (MENA) region.
Design/methodology/approach
The authors analyzed a unique set of panel data comprising 2,425 nonfinancial firms whose shares are traded on stock exchanges in countries in the MENA region. The authors fitted an ordinary least squares model to estimate the regression coefficients. The authors performed a sensitivity analysis using alternative measures of the critical variables and an endogeneity analysis using instrumental variable methods with plausible external instruments.
Findings
The results revealed that corporate governance characteristics of firms are strongly associated with their degree of leverage. They also showed that macrofinancial conditions, financial regulations, corporate governance enforcement and social conditions mitigate the impact of corporate governance on firms’ financing decisions.
Research limitations/implications
A larger sample size will further improve the results; however, this is difficult and depends on the extent to which increasing disclosure practices allow more corporate information to reach international databases.
Practical implications
This study provides new evidence on the role of corporate governance on firms’ financing decisions and documents the essential mitigating role of institutions, alerting managers to consider them.
Originality/value
This study is a novel attempt. Based on information from different data sources, this study explored the predictive power of corporate governance, ownership structures and other firm-specific characteristics in explaining corporate leverage in MENA countries. Overall, the analysis provides new evidence of the association between corporate governance and capital structure in the MENA region, highlighting the critical role of institutions.
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Zahra Ahmadi Alvar, Davood Feiz and Meysam Modarresi
This study aims to reach a perception of the advance of research on deviant organisational behaviours.
Abstract
Purpose
This study aims to reach a perception of the advance of research on deviant organisational behaviours.
Design/methodology/approach
This research has been done through the text mining method. By reviewing, the papers were selected 360 papers between 1984 and 2020. Based on the Davis–Boldin index, 11 optimal clusters were gained. Then the roots were ranked in any group, using the Simple Additive Weighting technique. Data were analysed by RapidMiner and MATLAB software.
Findings
According to the results obtained, clusters are included leadership styles, job attitudes, spirituality in the workplace, work psychology, personality characteristics, classification and management of deviant workplace behaviours, service and customer orientation, deviation in sales, psychological contracts, group dynamics and inappropriate supervision.
Originality/value
This study provides a landscape and roadmap for future investigation on deviant organisational behaviours.
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