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Article
Publication date: 8 May 2017

Shah Saeed Hassan Chowdhury, M. Arifur Rahman and M. Shibley Sadique

The main purpose of this paper is to investigate autocorrelation structure of stock and portfolio returns in a unique market setting of Saudi Arabia, where nearly all…

Abstract

Purpose

The main purpose of this paper is to investigate autocorrelation structure of stock and portfolio returns in a unique market setting of Saudi Arabia, where nearly all active traders are the retail individuals and the market operates under severe limits to arbitrage. Specifically, the authors examine how return autocorrelation of Saudi Arabian stock market is related to factors such as the day of the week, stock trading, performance on the preceding day and volatility.

Design/methodology/approach

The sample consists of the daily stock price and index data of 159 firms listed in Tadawul (Saudi Arabian Stock Exchange) for the period from January 2004 through December 2015. The methodology of Safvenblad (2000) is primarily used to investigate the autocorrelation structure of individual stock and index returns. The authors also use the Sentana and Wadhwani (1992) methodology to test for the presence of feedback traders in the Saudi stock market.

Findings

Results show that there is significantly positive autocorrelation in individual stock, size portfolio and market returns and that the last two are almost always larger than the first. Return autocorrelation is negatively related to firm size. Interestingly, return autocorrelation is positively related to trading frequency. For portfolios, autocorrelation of returns following a high absolute return day is significantly higher than that following a low absolute return day. Similarly, return autocorrelation during volatile periods is generally larger than that during tranquil periods. Return correlation between weekdays is usually larger than that between the first and last days of the week. Overall, the results suggest that the possible reason for positive autocorrelation in stock returns could be the presence of negative feedback traders who are engaged in frequent profit-taking activities.

Originality/value

This is the first paper that thoroughly investigates the autocorrelation structure of the returns of the Saudi stock market using both index and individual stock returns. As this US$583bn (as of August 21, 2014) market opened to foreign institutional investors in June 2015, the results of this paper should be of significant value for the potential uninformed foreign investors in this relatively lesser known and previously closed yet highly prospective market.

Details

Review of Accounting and Finance, vol. 16 no. 2
Type: Research Article
ISSN: 1475-7702

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Book part
Publication date: 21 October 2020

Arifur Rahman, Naznin Sultana and Md. Mizanur Rahman

This paper intends to offer a comparison between the concepts of corporate social responsibility (CSR) and social business (SB) and rationalizes the application of both…

Abstract

This paper intends to offer a comparison between the concepts of corporate social responsibility (CSR) and social business (SB) and rationalizes the application of both the ideas as potential ways of accomplishingsustainable development. It follows an axiomatic and theoretical approach to frame the relationship of CSR and social business with the fastest growing concept of sustainable development. The objective of this research is to shed some light on i. the basic differences of the theories, ii. underlying assumptions of both theories regarding sustainable development, and iii. the effectiveness or contribution of each concept in attaining sustainable development. This is basically a conceptual paper based on extensive literature review and followed by some qualitative research techniques such as case studies, in-depth interviews with CSR and social business experts and CEOs of corporate houses and social business enterprises as well as focus group discussions with beneficiaries and community representatives of both fields.Narrative analysis method is adopted to analyze obtained data. Result indicates that both CSR and social business can be significant ways to achieve sustainable development by means of eliminating poverty, unemployment and inequality, preventing environmental degradation and the like as both concepts are intended tosolve social problems. This research proposes that a combination of these two concepts is more likely to offer sustainable solutions to social problems.

Details

Governance and Sustainability
Type: Book
ISBN: 978-1-80043-151-5

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Book part
Publication date: 21 October 2020

Abstract

Details

Governance and Sustainability
Type: Book
ISBN: 978-1-80043-151-5

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Article
Publication date: 7 May 2019

Md Shahid Ullah, Mohammad Badrul Muttakin and Arifur Khan

The purpose of this study is to empirically examine the association between corporate governance and the extent of corporate social responsibility (CSR) disclosures in…

Abstract

Purpose

The purpose of this study is to empirically examine the association between corporate governance and the extent of corporate social responsibility (CSR) disclosures in insurance companies, using archival data.

Design/methodology/approach

The data set comprises 277 listed insurance company-years in Bangladesh for the period of 2008 to 2014. The authors have used a checklist to measure the extent of CSR disclosures. The checklist was developed based on the previous CSR literature. The study uses a multiple regression analysis technique to investigate the association between different governance variables, particularly managerial ownership, institutional ownership, board independence and the proportion of female directors, and the extent of CSR disclosures in Bangladeshi insurance companies.

Findings

The authors find that board independence and the proportion of female directors have positive associations with the extent of CSR disclosures. However, the results indicate that managerial ownership is negatively associated with the extent of CSR disclosures.

Originality/value

Unlike most of the prior research that explored CSR disclosures in non-financial companies, the authors focus on financial companies, namely, insurance businesses. The authors provide empirical evidence using archival data that suggests that some governance mechanisms are important determinants of CSR disclosures in the insurance industry.

Details

International Journal of Accounting & Information Management, vol. 27 no. 2
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 3 August 2015

Mohammad Badrul Muttakin, Arifur Khan and Nava Subramaniam

This study aims to purport to investigate the relationship between firm size, profitability, board diversity (namely, director gender and nationality) and the extent of…

Abstract

Purpose

This study aims to purport to investigate the relationship between firm size, profitability, board diversity (namely, director gender and nationality) and the extent of corporate social responsibility (CSR) disclosures within a developing nation context.

Design/methodology/approach

The dataset comprises 116 listed Bangladeshi non-financial companies for the period of 2005-2009. A CSR disclosure checklist was used to measure the extent of CSR disclosures in the annual reports and a multiple regression analysis to examine its association with firm characteristics and two board diversity features – female and foreign directorship.

Findings

Results indicate that large and more profitable firms provide more CSR disclosures. It was also found that female directorship has a negative association with CSR disclosures, while foreign directorship has a positive impact on such disclosures. This paper documents that CSR disclosures decrease further when family ownership is higher and there are more female directors on the board.

Originality/value

This study extends empirical evidence on the association between firm characteristics, board diversity and CSR disclosure practices from a developing nation context. Furthermore, this study also reveals that female directors’ impact on firm disclosures may differ between developing and developed nations, and somewhat impeded in the latter. This paper also provides empirical evidence on the importance of appointment of foreign nationals on the boards of developing countries to influence CSR practices.

Details

Pacific Accounting Review, vol. 27 no. 3
Type: Research Article
ISSN: 0114-0582

Keywords

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