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1 – 10 of 16Khalil Nimer, Ahmed Bani-Mustafa, Anas AlQudah, Mamoon Alameen and Ahmed Hassanein
This paper aims to explore how the role of the perception of good public governance reduces tax evasion (TE). Besides, this study investigates whether the nexus of public…
Abstract
Purpose
This paper aims to explore how the role of the perception of good public governance reduces tax evasion (TE). Besides, this study investigates whether the nexus of public governance and TE differs between developed and developing economies.
Design/methodology/approach
Apart from the ordinary least squares (OLS) model, this study uses the linear mixed modeling technique. The World Governance Indicators and the multiple causes estimation (MIMIC) method are used to measure public governance. The shadow economy is used as a proxy for TE.
Findings
The results show that people's perceptions of public governance and the quality of government institutions are core elements that influence tax-evasion behavior. Besides, the rule of law (RoL) and political stability (PS) significantly impact tax-evasion behavior in developing countries. Nevertheless, the RoL, the control of corruption and PS are the most critical tax-evasion determinants among public governance indicators for developed countries. Regulatory quality shows a substantial positive relationship with TE in developed but not developing countries.
Practical implications
This paper provides a guide for policymakers on reducing tax-evasion behavior by paying more attention to maintaining the RoL and PS and fighting corruption. Additionally, this study highlights the importance of people's perceptions of the government's pursuit of the above policy-related improvements, which, in turn, affect their tax behavior.
Originality/value
To the best of the authors’ knowledge, this study is the first to explore the role of people's perceptions of improvements in public governance and how this can reduce TE behavior in developed and developing economies. Unlike prior studies, this study used the linear mixed model method, which is more advantageous than OLS and produces robust estimators.
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Mahmoud Alghemary, Basil Al-Najjar and Nereida Polovina
The authors empirically investigate the association between acquisition, ownership structure and accrual earnings management (AEM) on real earnings management (REM) using Gulf…
Abstract
Purpose
The authors empirically investigate the association between acquisition, ownership structure and accrual earnings management (AEM) on real earnings management (REM) using Gulf Cooperation Council (GCC)-listed firms' context.
Design/methodology/approach
The authors' sample consists of 1,892 firm-year observations for the period from 2007–2017, and the authors adopt a panel data approach in investigating the interrelationships in this study. The authors employ different econometrics approach to test the authors' hypotheses.
Findings
The findings reveal that acquiring companies engage more in AEM if compared to REM. In terms of ownership structure, institutional ownership and state ownership mitigate the engagement in REM, whereas foreign ownership is found to be an ineffective mechanism in reducing engagement in REM. The authors report similar findings on ownership structure for AEM. The authors also find that the GCC firms engage more in REM when the firms engage in AEM, suggesting a complementary relation between these two earnings management techniques. These findings are robust after controlling for different aspects including any endogeneity issue in the authors' models.
Originality/value
The authors' research highlights the importance of understanding REM and AEM dynamics in GCC context. Also, the authors' findings on ownership structure suggest that GCC-listed firms can gain from institutional and state ownership which restricts earnings management, improving firm transparency and subsequently impacting firm performance.
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Ahmed Mohamed Habib and Nahia Mourad
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Abstract
Purpose
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach
This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings
The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications
The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value
This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
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Susovon Jana and Tarak Nath Sahu
This study is designed to examine the dynamic interrelationships between four cryptocurrencies (Bitcoin, Ethereum, Dogecoin and Cardano) and the Indian equity market…
Abstract
Purpose
This study is designed to examine the dynamic interrelationships between four cryptocurrencies (Bitcoin, Ethereum, Dogecoin and Cardano) and the Indian equity market. Additionally, the study seeks to investigate the potential safe haven, hedge and diversification uses of these digital currencies within the Indian equity market.
Design/methodology/approach
This study employs the wavelet approach to examine the time-varying volatility of the studied assets and the lead-lag relationship between stocks and cryptocurrencies. The authors execute the entire analysis using daily data from 1st October 2017 to 30th September 2023.
Findings
The result of the study shows that financial distress due to the pandemic and the Russian invasion of Ukraine have a negative effect on the Indian equities and cryptocurrency markets, escalating their price volatility. Also, the connectedness between the returns of stock and digital currency exhibits a strong positive relationship during periods of financial distress. Additionally, cryptocurrencies serve as a tool of diversification or hedging in the Indian equities markets during normal financial circumstances, but they do not serve as a diversifier or safe haven during periods of financial turmoil.
Originality/value
This study contributes to understanding the relationship between the Indian equity market and four cryptocurrencies using wavelet techniques in the time and frequency domains, considering both normal and crisis times. This can offer valuable insights into the potential of cryptocurrencies inside the Indian equities markets, mainly with respect to varying financial conditions and investment horizons.
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Osama Atayah, Hazem Marashdeh and Allam Hamdan
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It…
Abstract
Purpose
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It also addresses the link between firm- and country-level determinants of accrual and real-based EM and explores economic conditions' influence on these determinants.
Design/methodology/approach
The study examines 1,608 firm-years, covers sixteen years (2004–2019), clustered into three periods according to the global financial crisis (GFC): four years prior (2004–2007), two years during (2008–2009), and ten years post the GFC (2010–2019). We employ the modified Jones model (performance-matched) developed by Kothari et al. (2005) to measure the accrual-based EM (positive and negative discretionary accrual EM) and the three levels model for Dechow et al. (1998) to measure the real-based EM (cash flow from operating, discretionary expenses and abnormal production cost).
Findings
The study finds a significant increase in EM practices in the listed corporations in tax-free countries during the economic downturn. These corporations are found to understate their earnings during the economic stress period. Simultaneously, the firm-level determinants of EM practices were at the same level of significance during different economic conditions in accrual-based EM. In contrast, the country-level EM determinants vary based on the economic conditions.
Originality/value
Financial reports' users gain a deep understanding of the quality of financial reports in the context of tax-free country. And, the study outcomes inspire policymakers to develop relevant legislation to mitigate financial reports' risk and adequately protect the financial reports' users.
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Amira Said and Chokri Ouerfelli
This paper aims to examine the dynamic conditional correlation (DCC) and hedging ratios between Dow Jones markets and oil, gold and bitcoin. Using daily data, including the…
Abstract
Purpose
This paper aims to examine the dynamic conditional correlation (DCC) and hedging ratios between Dow Jones markets and oil, gold and bitcoin. Using daily data, including the COVID-19 pandemic and the Russia–Ukraine war. We employ the DCC-generalized autoregressive conditional heteroskedasticity (GARCH) and asymmetric DCC (ADCC)-GARCH models.
Design/methodology/approach
DCC-GARCH and ADCC-GARCH models.
Findings
The most of DCCs among market pairs are positive during COVID-19 period, implying the existence of volatility spillovers (Contagion-effects). This implies the lack of additional economic gains of diversification. So, COVID-19 represents a systematic risk that resists diversification. However, during the Russia–Ukraine war the DCCs are negative for most pairs that include Oil and Gold, implying investors may benefit from portfolio-diversification. Our hedging analysis carries significant implications for investors seeking higher returns while hedging their Dow Jones portfolios: keeping their portfolios unhedged is better than hedging them. This is because Islamic stocks have the ability to mitigate risks.
Originality/value
Our paper may make a valuable contribution to the existing literature by examining the hedging of financial assets, including both conventional and Islamic assets, during periods of stability and crisis, such as the COVID-19 pandemic and the Russia–Ukraine war.
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Abdelhamid Ads, Santosh Murlidhar Pingale and Deepak Khare
This study’s fundamental objective is to assess climate change impact on reference evapotranspiration (ETo) patterns in Egypt under the latest shared socioeconomic pathways (SSPs…
Abstract
Purpose
This study’s fundamental objective is to assess climate change impact on reference evapotranspiration (ETo) patterns in Egypt under the latest shared socioeconomic pathways (SSPs) of climate change scenarios. Additionally, the study considered the change in the future solar radiation and actual vapor pressure and predicted them from historical data, as these factors significantly impact changes in the ETo.
Design/methodology/approach
The study utilizes data from the Coupled Model Intercomparison Project Phase 6 (CMIP6) models to analyze reference ETo. Six models are used, and an ArcGIS tool is created to calculate the monthly average ETo for historical and future periods. The tool considers changes in actual vapor pressure and solar radiation, which are the primary factors influencing ETo.
Findings
The research reveals that monthly reference ETo in Egypt follows a distinct pattern, with the highest values concentrated in the southern region during summer and the lowest values in the northern part during winter. This disparity is primarily driven by mean air temperature, which is significantly higher in the southern areas. Looking ahead to the near future (2020–2040), the data shows that Aswan, in the south, continues to have the highest annual ETo, while Kafr ash Shaykh, in the north, maintains the lowest. This pattern remains consistent in the subsequent period (2040–2060). Additionally, the study identifies variations in ETo , with the most significant variability occurring in Shamal Sina under the SSP585 scenario and the least variability in Aswan under the SSP370 scenario for the 2020–2040 time frame.
Originality/value
This study’s originality lies in its focused analysis of climate change effects on ETo, incorporating crucial factors like actual vapor pressure and solar radiation. Its significance becomes evident as it projects ETo patterns into the near and distant future, providing indispensable insights for long-term planning and tailored adaptation strategies. As a result, this research serves as a valuable resource for policymakers and researchers in need of in-depth, region-specific climate change impact assessments.
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Mahdi Salehi, Raha Rajaeei, Ehsan Khansalar and Samane Edalati Shakib
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between…
Abstract
Purpose
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses.
Design/methodology/approach
The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression.
Findings
The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years.
Originality/value
This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.
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Allah Karam Salehi and Elham Soleimanizadeh
The abnormality of the month-of-the-year and Ramadan effects has extensively existed in the stock and other markets. The commercial strategy pattern and the computation of such…
Abstract
Purpose
The abnormality of the month-of-the-year and Ramadan effects has extensively existed in the stock and other markets. The commercial strategy pattern and the computation of such predictable patterns in the market allow investors to make money. By using anomalies such as the month-of-the-year and the Ramadan effects on earnings management (EM), it is possible to achieve such a goal. This study aims to investigate the month-of-the-year effect and the Ramadan effect on the relationship between accrual earnings management and real earnings management (AEM and REM, respectively) and liquidity in the Iranian capital market.
Design/methodology/approach
This empirical analysis comprises a panel data set of 80 listed firms (400 observations) on the Tehran Stock Exchange from 2016 to 2020.
Findings
The findings exhibit that when AEM and REM increase, information asymmetry also increases. The simultaneous increase of these variables leads to a decrease in stock liquidity. Furthermore, the results indicate that the month-of-the-year and Ramadan effects intensify the negative relationship between AEM and REM with stock liquidity. Therefore, EM is affected by the investor’s behavior in specific months.
Practical implications
Anomalies caused by the Ramadan effect and the month-of-the-year effect on reducing liquidity in the Iranian stock market were confirmed. Investors can use these anomalies to identify predictable patterns, exchange securities according to those patterns and earn abnormal returns.
Originality/value
To the best of the authors’ knowledge, this is the first study that empirically examined the simultaneous effect of Gregorian and Islamic calendar anomalies on the relationship between EM and liquidity, and while helping managers and other readers, it can be the basis for future research.
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Likun Ni, Sayed Fayaz Ahmad, Ghadeer Alsanie, Na Lan, Muhammad Irshad, Rima H. Bin Saeed, Ahmad Bani Ahmad and Yasser Khan
This study aims to find out the role of green curriculum (GC) in making a green generation (GG) and ensuring sustainability. The study considers the green curriculum a key factor…
Abstract
Purpose
This study aims to find out the role of green curriculum (GC) in making a green generation (GG) and ensuring sustainability. The study considers the green curriculum a key factor for understanding environmental values orientation (EVO) and adopting pro-environmental behaviors (Pr-EnB) for social, economic, human and environmental sustainability.
Design/methodology/approach
The study is quantitative and cross-sectional. Partial least square-structural equation modeling was used to test the research model and data which was collected through a questionnaire survey from university faculty and students in Pakistan, Saudi Arabia and China.
Findings
The findings show that the GC has significant positive effects on EVO and pro-environmental behavior. However, it has no significant effect on social sustainability. There is a positive significant effect of pro-environmental behavior on economic, environmental, human and social sustainability. Whereas, environmental orientation has no significant effect on economic sustainability but significantly influences environmental, human and social sustainability. GC has no significant effect on economic, environmental and human sustainability. However, when considering the combined effects of GC and environmental values orientation or pro-environmental behavior, significant positive effects were found on economic, environmental, human and social sustainability.
Research limitations/implications
The result suggests that implementing a GC positively influences environmental orientation, pro-environmental behavior and various dimensions of sustainability.
Practical implications
These results have implications for educational institutions and policymakers aiming to promote sustainability through green curriculum and help in the attainment of sustainable development goals.
Originality/value
The study fulfills an essential need to obtain sustainability and sustainable development goals through education.
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