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1 – 10 of over 1000Ather Azim Khan, Muhammad Ramzan, Shafaqat Mehmood and Wing-Keung Wong
This paper assesses the environment of legitimacy by determining the role of institutional quality and policy uncertainty on the performance of five major South Asian stock…
Abstract
Purpose
This paper assesses the environment of legitimacy by determining the role of institutional quality and policy uncertainty on the performance of five major South Asian stock markets (India, Pakistan, Bangladesh, Sri Lanka, and Nepal) using 21 years data from 2000 to 2020. The focus of this study is to approach the issue of the environment of legitimacy that leads to sustained market returns.
Design/methodology/approach
Panel cointegration tests of Kao and Pedroni are applied, and the Dynamic Panel Vector Autoregressive (PVAR) model is used to determine the estimates.
Findings
ADF P-Values of both Kao and Pedroni tests show that the panels are cointegrated; the statistical significance of the results of the Kao and Pedroni panel cointegration test confirms cointegration among the variables. After determining the most appropriate lag, the analysis is done using PVAR. The results indicate that institutional quality, policy uncertainty, and GDP positively affect stock market return. Meanwhile, government actions and inflation negatively affect stock market returns. On the other hand, stock market return positively affects institutional quality, government action, policy uncertainty, and GDP. While stock market return negatively affects inflation.
Research limitations/implications
The sample is taken only from a limited number of South Asian countries, and the period is also limited to 21 years.
Practical implications
Based on our research findings, we have identified several policy implications recommended to enhance and sustain the performance of stock markets.
Originality/value
This paper uses a unique analytical tool, which gives a better insight into the problem. The value of this work lies in its findings, which also have practical implications and theoretical significance.
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Dimitrios Dimitriou, Eleftherios Goulas, Christos Kallandranis, Alexandros Tsioutsios and Thi Ngoc Bich Thi Ngoc Ta
This paper aims to examine potential diversification benefits between Eurozone (i.e. EURO STOXX 50) and key Asia markets: HSI (Hong Kong), KOSPI (South Korea), NIKKEI 225 (Japan…
Abstract
Purpose
This paper aims to examine potential diversification benefits between Eurozone (i.e. EURO STOXX 50) and key Asia markets: HSI (Hong Kong), KOSPI (South Korea), NIKKEI 225 (Japan) and TSEC (Taiwan). The sample covers the period from 04-01-2008 to 19-10-2023 in daily frequency.
Design/methodology/approach
The empirical investigation is based on the wavelet coherence analysis, which is a localized correlation coefficient in the time and frequency domain.
Findings
The results provide evidence that long-term diversification benefits exist between EURO STOXX and NIKKEI, EURO STOXX and KOSPI (after 2015) and there are signs for the pair and EURO STOXX-TSEC (after 2014). During the short term, there are signs of diversification benefits during the sample period. However, during the medium term, the diversification benefits seem to diminish.
Originality/value
These results have crucial implications for investors regarding the benefits of international portfolio diversification.
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Given the dearth of thorough summaries in the literature, this systematic review and bibliometric analysis attempt to take a meticulous approach meant to present knowledge on the…
Abstract
Purpose
Given the dearth of thorough summaries in the literature, this systematic review and bibliometric analysis attempt to take a meticulous approach meant to present knowledge on the constantly developing subject of stock market volatility during crises. In outline, this study aims to map the extant literature available on stock market volatility during crisis periods.
Design/methodology/approach
The present study reviews 1,283 journal articles from the Scopus database published between 1994 and 2022, using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 flow diagram. Bibliometric analysis through software like R studio and VOSviewer has been performed, that is, annual publication trend analysis, journal analysis, citation analysis, author influence analysis, analysis of affiliations, analysis of countries and regions, keyword analysis, thematic mapping, co-occurrence analysis, bibliographic coupling, co-citation analysis, Bradford’s law and Lotka’s law, to map the existing literature and identify the gaps.
Findings
The literature on the effects of crises on volatility in financial markets has grown in recent years. It was discovered that volatility intensified during crises. This increased volatility can be linked to COVID-19 and the global financial crisis of 2008, as both had massive effects on the world economy. Moreover, we identify specific patterns and factors contributing to increased volatility, providing valuable insights for further research and decision-making.
Research limitations/implications
The present study is confined to the areas of economics, econometrics and finance, business, management and accounting and social sciences. Future studies could be conducted considering a broader perspective.
Originality/value
Most of the available literature has focused on the impact of some particular crises on the volatility of financial markets. The present study is not limited to some specific crises, and the suggested research directions will serve as a guide for future research.
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Bushra Zulfiqar, Muhammad Arshad Mehmood, Akmal Shahzad Butt and Anum Shafique
This study aims to study the impact of corporate governance (CG) versus ethical investment on the firm performance. It takes into account the firms of Bangladesh, India, and…
Abstract
This study aims to study the impact of corporate governance (CG) versus ethical investment on the firm performance. It takes into account the firms of Bangladesh, India, and Pakistan for the purpose of the study. A composite variable of CG index and environmental, social, and governance (ESG) index is used to test the impact on the firm performance. Separate country wise and overall analysis is obtained. Regression analysis is used to obtain the results. Two measures of performance are used, one is return on assets (ROA) and other is Tobin Q. The findings of the study reveal that there is an impact of corporate governance index (CGI) on firm performance (overall and country wise) whereas ethical investment (EI) has an impact on firm performance when tested overall and no impact when checked for country wise results. The results further show that on country level, increase in CG measures may lead to positive results, but at the macro level, it may lower the performance. On the other hand, at the micro level, ethical finance may not show its impact; however, at the macro level, it has an impact. The study has implications for the investors and policymakers.
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Muhammad Jawad Haider, Maqsood Ahmad and Qiang Wu
This study examines the impact of debt maturity structure on stock price crash risk (SPCR) in Asian economies and the moderating effect of firm age on this relationship.
Abstract
Purpose
This study examines the impact of debt maturity structure on stock price crash risk (SPCR) in Asian economies and the moderating effect of firm age on this relationship.
Design/methodology/approach
The study utilized annual data from 432 nonfinancial firms publicly listed in six Asian countries: China, Hong Kong, Japan, Singapore, Pakistan and India. The observation period covers 14 years, from 2007 to 2020. The sample was categorized into three groups: the entire sample and one group each for developing and developed Asian economies. A generalized least squares panel regression method was employed to test the research hypotheses.
Findings
The results suggest that long-term debt has a significant negative influence on SPCR in Asian economies, indicating that firms with high long-term debt experience lower future SPCR. Moreover, firm age negatively moderates this relationship, implying that older firms may experience a more pronounced reduction in SPCR due to high long-term debt. Finally, firms in developed Asian economies with high long-term debt are more effective in mitigating the risk of a significant drop in their stock prices than firms in developing Asian economies.
Originality/value
This study contributes to the literature in several ways. To the best of the researcher’s knowledge, this is the first of such efforts to investigate the relationship between debt maturity structure and crash risk in Asia. Additionally, it reveals that long-term debt influences SPCR directly and indirectly in Asia through the moderating role of firm age. Lastly, it is likely one of the first studies by a research team in Asia to compare the nonfinancial markets of developed and developing Asian countries.
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Emre Bulut and Başak Tanyeri-Günsür
The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to…
Abstract
The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to investigate whether investors priced the effect of significant events before the Lehman Brothers' bankruptcy in European and Asia-Pacific banks. Abnormal returns on the event days range from −4.32% to 5.03% in Europe and −5.13% to 6.57% in Asia-Pacific countries. When Lehman Brothers went bankrupt on September 15, 2008, abnormal returns averaged the lowest at −4.32% in Europe and −5.13% in Asia-Pacific countries. The significant abnormal returns show that Lehman Brothers' collapse was a turning point, and investors paid attention to the precrisis events as warning signs of the oncoming crisis.
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Kim Man Erica Lee, Yanto Chandra and Ho Lee
The social venture (SV) is an increasingly popular form of organization to pursue social goals using a commercial approach. Although marketing plays an important role in SV…
Abstract
Purpose
The social venture (SV) is an increasingly popular form of organization to pursue social goals using a commercial approach. Although marketing plays an important role in SV research and a key driver of the performance of SVs, how and the extent to which market conditions play a role remains understudied. This study examines if market turbulence can moderate marketing capabilities and performance relationships.
Design/methodology/approach
The authors developed several hypotheses rooted in the marketing literature and tested them using data collected from a sample of 109 SVs from East Asia (i.e. Hong Kong and Taiwan). Using multiple regression analysis and structural equation modeling, the authors analyzed the marketing capabilities and financial and social performance relationships and the positive moderating role of market turbulence.
Findings
The results suggested that market turbulence is a positive moderator which influences the effect of the marketing capabilities–financial performance relationship, but not the marketing capabilities and social performance relationship.
Originality/value
This paper attempts to interrogate the SV's marketing capabilities–performance relationship in the East Asian context and how market turbulence may enhance or weaken the relationship. This is one of the earliest papers in this research area. The key findings from this research offer valuable theoretical contribution to the study of SV performance.
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Taewoo Roh, Byung Il Park and Shufeng (Simon) Xiao
This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can…
Abstract
Purpose
This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can provide equifinal solutions through developing a comprehensive research framework that focuses on subsidiaries in China.
Design/methodology/approach
With a data set collected through a questionnaire from 172 Korean multinational enterprises (MNEs) in China, this study used a fuzzy-set qualitative comparative analysis to detect the capability conditions and configurations. These configurations represent combinations of various subsidiary capabilities linked to high performance.
Findings
This study identified several complex pathways with distinct configurations for high subsidiary performance. The findings demonstrate the importance of configurations over individual conditions. Thus, the results highlight that the effectiveness of diverse capabilities, which are widely believed to singularly contribute to the high performance of MNE subsidiaries, depends on how each combines with other capabilities. Overall, the findings provide a richer and fine-grained understanding of the role and relative importance of various forms of MNE subsidiary capabilities and how the joint effect of these subsidiaries contributes to high performance.
Practical implications
This study suggests that MNE managers should comprehensively understand how subsidiary capabilities are configured to produce subsidiary performance outcomes. This specifically illustrates the importance of understanding the mutually conflicting yet collectively exhaustive results of multi-selective solutions and aims to align with China’s industrial and regional heterogeneity.
Originality/value
By examining the role of MNE subsidiary capability configurations, which may collectively influence the subsidiary’s performance, this study contributes to the literature. It elucidates how MNE subsidiaries may achieve superior performance by developing and possessing various capabilities tailored to the local context.
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Christopher Richardson and Morris John Foster
The data for this case were obtained primarily through a series of in-person interviews in Penang between the authors and Pete Browning (a pseudonym) from 2017 to early 2019. The…
Abstract
Research methodology
The data for this case were obtained primarily through a series of in-person interviews in Penang between the authors and Pete Browning (a pseudonym) from 2017 to early 2019. The authors also consulted secondary data sources, including publicly available material on BMax and “Company B”.
Case overview/synopsis
This case examines a key decision, or set of decisions, in the life of a small- to medium-sized management consultancy group, namely, whether they might expand their operations in Southeast Asia, and if so, where. These key decisions came in the wake of their having already established a very modest scale presence there, with an operating base on the island of Penang just off the north western coast of Peninsular Malaysia. The initial establishment of a Southeast Asian branch had been somewhat spontaneous in nature – a former colleague of one of the two managing partners in the USA was on the ground in Malaysia and available: he became the local partner in the firm. But the firm had now been eyeing expansion within the region, with three markets under particular consideration (Singapore, Indonesia and Thailand) and a further two (Vietnam and China) also seen as possible targets, though at a more peripheral level. The questions facing the decision makers were “was it time they expand beyond Malaysia?” and “if so, where?”
Complexity academic level
This case could be used effectively in undergraduate courses in international business. The key concepts on which the case focuses are the factors affecting market entry, particularly the choice of market and the assessment of potential attractiveness such markets offer.
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Yong H. Kim, Bochen Li, Miyoun Paek and Tong Yu
We study the potential effects of pension underfunding on corporate investment, financial constraints and improved employee bonding using 10 Pacific-Basin countries (including the…
Abstract
We study the potential effects of pension underfunding on corporate investment, financial constraints and improved employee bonding using 10 Pacific-Basin countries (including the United States, Australia, and eight Asian countries) at heterogeneous economic development stages and different regulatory environments. We document that corporate pensions are significantly underfunded in most countries of our sample in the period of 2001–2017, when interest rates were ultralow in most countries. In addition, firms from countries with stronger employee protection and more generous retirement benefits tend to show higher levels of underfunding in their defined benefit (DB) pension plans. To the extent of pension underfunding imposing constraints on corporate investment, we find that firms in these countries can face more constraints on investment when their pension is underfunded.
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