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1 – 10 of 16The purpose of this study is to investigate the gender and ethnic diversity–performance relationship in Malaysia from two angles: (1) the impact of political regimes; and (2) a…
Abstract
Purpose
The purpose of this study is to investigate the gender and ethnic diversity–performance relationship in Malaysia from two angles: (1) the impact of political regimes; and (2) a possible nonlinear relationship – at the boardroom and employee level.
Design/methodology/approach
This study uses a sample of firms listed in Bursa Malaysia during a sample period that spans two political regimes. Two-stage least squares controlling for firm-specific effects, corporate governance and lagged variables to account for endogeneity issues is used to test the relationship.
Findings
Findings show that the political alignment of the ruling government affects the significance of the gender/ethnic diversity–performance relationship. The relationship between board gender/ethnic diversity and firm performance is curvilinear while the relationship between employee gender/ethnic diversity is linear and positive.
Research limitations/implications
First, promoting gender/ethnic diversity not only requires strong policy but also political will to lead by example. Political regimes that provide lip-service without effective implementation threaten to derail any efforts in furthering the diversity agenda. Second, the presumption of a linear diversity–performance relationship is fallacious. Further studies, especially in pluralistic societies, must not discount the subtleties of intergroup conflicts. Third, in light of allegations of prejudicial hiring policies, Malaysian firms should embrace diversity, not only in the boardroom, but also among its workforce as employee diversity improves firm performance.
Originality/value
Prior studies on gender/ethnic diversity in Malaysia have returned mixed results but thus far, there has been no satisfactory explanation for this phenomenon. This study attributes it to lack of political will and cultural subgroup conflicts – two pertinent issues that were never considered in the literature. Prior studies have also exclusively focused on boardroom diversity. This study goes further by examining employee diversity – particularly important since most empowerment and diversity initiatives are targeted at lower level employees. This study is also the first to provide an objective benchmark for gender diversity (30–35% female directors) and ethnic diversity (less than 40% from one ethnicity) to achieve optimal performance.
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Calvin W.H. Cheong and Ling-Foon Chan
This study aims to investigate the impact of corporate diversification and growth opportunities on the performance of real estate investment trusts (REIT) in Malaysia and…
Abstract
Purpose
This study aims to investigate the impact of corporate diversification and growth opportunities on the performance of real estate investment trusts (REIT) in Malaysia and Singapore before and during the pandemic.
Design/methodology/approach
The sample consists of 33 public-listed REITs across Singapore and Malaysia. A dynamic panel system generalized method of moments (DPS-GMM) estimation is used to account for unobservable factors and a relatively short sample period (2009–2022).
Findings
Results indicate that the impact of diversification is contingent on the market where the REIT is based and other institutional factors. The estimates also show that diversified REITs are better able to weather period of economic uncertainty.
Practical implications
We provided a definitive answer as to why corporate diversification leads to conflicting outcomes – market and institutional factors, strategic intent and the overall economic environment. We also show that the impact of typical firm controls (i.e. free cash, size) can differ. Future firm-level work should thus study similar phenomenon more contextually and carefully consider these varying effects.
Originality/value
The literature is divided on the impact of diversification on firm performance. By using a two-country sample, we show conclusive evidence that this contradictory outcome is due to market and institutional factors. We also show evidence that strategic intent is an important factor that influences the outcomes of diversification, regardless of market. We also infer that excess cash aids the resilience of the firm, contrary to the negative perception of excess cash during normal times. Firm size, in contrast, does not contribute to firm performance during a crisis.
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This study aims to examine the properties of four major cryptocurrencies and how they can be used as a simpler alternative mode of hedging foreign exchange (FX) risks as compared…
Abstract
Purpose
This study aims to examine the properties of four major cryptocurrencies and how they can be used as a simpler alternative mode of hedging foreign exchange (FX) risks as compared to existing mainstream financial risk management techniques.
Design/methodology/approach
This study uses a combination of visual data representations and the classic Fama and Macbeth (1973) two-pass procedure regressions.
Findings
The findings show that cryptocurrencies can be a more effective hedge against FX risks as compared to other common hedging instruments and/or techniques such as gold or a diversified currency portfolio.
Research limitations/implications
The conclusions were arrived at based only on a small group of cryptocurrency, i.e. Bitcoin, Ethereum, Litecoin and Ripple. Other cryptocurrencies such as Dogecoin or ZCash might exhibit different properties.
Practical implications
Cryptocurrencies can be cost-effective and cost-efficient instruments that provide a solid hedge for investors and/or firms that are exposed to global FX volatility. Its ease of trade and virtually zero barriers to entry makes it an easily accessible alternative hedge instrument as compared to more complex items such as derivatives.
Originality/value
If cryptocurrencies are to be accepted into mainstream usage, a detailed examination of its various uses is necessary. In particular, as they are often touted to be the future of currency, its properties and price behavior relative to other mainstream financial instruments need to be well-understood, not only by finance professionals but also by laypersons.
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The purpose of this paper is to investigate the ability of the Islamic gold dinar to hedge against two well-established foreign exchange (FX) risk factors namely, the dollar risk…
Abstract
Purpose
The purpose of this paper is to investigate the ability of the Islamic gold dinar to hedge against two well-established foreign exchange (FX) risk factors namely, the dollar risk factor and global FX volatility innovations.
Design/methodology/approach
The paper uses a combination of the Markowitz (1952) portfolio optimization, visual data representations and the classic Fama-Macbeth (1973) two-pass procedure regressions.
Findings
The findings show that the Islamic gold dinar can serve as a hedge against market volatility, outperforms a diversified currency portfolio, and through its inclusions into the diversified currency portfolio, improve said portfolio’s ability to hedge against market volatility.
Research limitations/implications
Due to the spread of the sample, country-specific factors could not be taken into account.
Practical implications
The Islamic gold dinar is a cost-efficient, cost-effective, and Shariah-compliant instrument that provides a solid hedge for investors and/or firms that have financial positions denominated in foreign currencies. Should these investors or firms find it costly to maintain a dinar-only portfolio, including the dinar into their currency portfolios also provides the same benefit, albeit at a lower magnitude.
Originality/value
This study is timely as the Accounting and Auditing Organization for Islamic Financial Institutions has recently for the first time recognized gold as a Shariah-compliant investment. The findings of this study provide the first look as to how investors and firms can benefit through the use of the Islamic gold dinar in their risk management practices.
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Malik Shahzad Shabbir and Calvin W.H. Cheong
This study aims to explore the association among financial resources, renewable energy, environmental degradation and technological innovation in BRICS economies.
Abstract
Purpose
This study aims to explore the association among financial resources, renewable energy, environmental degradation and technological innovation in BRICS economies.
Design/methodology/approach
To estimate the long-run impacts between these variables, the AMG method of estimation, which incorporates cross-sectional reliance and slope homogeneity, is adopted in this research.
Findings
According to the empirical findings, the long-run coefficients of environmental degradation and technological innovation show a statistically significant and negative impact on renewable sources of energy. Furthermore, a 1% increase in environmental degradation reduces 0.32% of renewable sources of energy in BRICS economies. Whereas only the coefficient of GDP shows a positive and statistically significant impact on renewable sources of energy, which demonstrates that a 1% increase in economic growth causes a 0.02% incline in renewable sources of energy. Therefore, strong policy recommendations are provided to encourage green energy utilization in these economies.
Originality/value
The majority of the participating nations have inexpensive labor and an abundance of resources from nature, which strengthens their appeal. Given that population growth is still quite conservative, this presents a chance for GDP per capita to expand significantly.
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Shahida Suleman, Hassanudin Mohd Thas Thaker, Mohamed Ariff and Calvin W.H. Cheong
The purpose of this research is to systematically scrutinize the influence of macroeconomic determinants on trade openness, through the lens of various trade theories, with a…
Abstract
Purpose
The purpose of this research is to systematically scrutinize the influence of macroeconomic determinants on trade openness, through the lens of various trade theories, with a particular focus on the economies of the GIPSI countries – Greece, Ireland, Portugal, Spain and Italy.
Design/methodology/approach
This study investigates the macroeconomic factors influencing trade openness in the GIPSI economies from 1995 to 2020. Methods include stepwise regression (SR) for model selection, Pedroni panel cointegration test and panel regression results. The analysis uses advanced panel regressions, including FMOLS, Panel OLS and FEM. The long-term dynamics were tested using Pedroni cointegration, while Granger causality testing was used to examine the causal direction between the trade openness ratio and trade determinant.
Findings
The results show both long-term and short-term relationships between trade openness and (1) foreign direct investment, (2) labor force participation rate, (3) trade reserves and (4) trade balance. The researchers also detected unidirectional and bidirectional causality relationships between trade openness and these four factors. The study also revealed that trade reserves (TR) emerge as the most influential determinant of trade openness, and per capita income does not exhibit economic significance concerning the trade openness of GIPSI economies.
Research limitations/implications
This research is conducted within the context of the GIPSI nations (Greece, Ireland, Portugal, Spain and Italy). As such, the outcomes may not be universally applicable to other economic systems due to the distinct institutional settings and governance structures across different economic groups. Future investigations may explore the relationship between trade openness and its determinants by incorporating different variables.
Originality/value
To the best of the authors' knowledge, this is the first study investigating the theory that suggested trade drivers drive the trade openness of GIPSI countries context. By focusing on GIPSI countries, the study offers a unique perspective on the dynamics of trade openness in economies that have experienced financial crises and stringent austerity measures.
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Shahida Suleman, Safia Bibi, Muhammad Azam, Hassanudin Mohd Thas Thaker and Calvin W.H. Cheong
This research aims to systematically compare the impact of macro drivers on labor efficiency (LEFF) in high and low trade openness economies, employing the Solow model as the…
Abstract
Purpose
This research aims to systematically compare the impact of macro drivers on labor efficiency (LEFF) in high and low trade openness economies, employing the Solow model as the theoretical framework.
Design/methodology/approach
This study examines the influence of macro drivers on LEFF from 1995 to 2020, employing advanced panel regression methods such as stepwise regression (SR), fully modified ordinary least squares (FMOLS) and panel OLS. It utilizes Pedroni and Johansen co-integration tests to assess long-term dynamics and Granger causality tests to explore causal relationships between macro drivers and LEFF.
Findings
The results reveal both long-term and short-term relationships between LEFF and the macro drivers: gross capital formation (GCF), per capita income (PCI), foreign direct investment (FDI), trade openness (TOP) and gross national savings (GNS). The findings show that these macro drivers positively and significantly influence LEFF in both high and low TOP economies. Specifically, FDI, PCI and GNS have a more substantial positive impact on LEFF in low TOP economies, while GCF and TOP have a greater influence in high TOP economies. Furthermore, in high TOP economies, FDI, TOP and PCI exhibit a unidirectional relationship with LEFF, while GNS and GCF show a bidirectional relationship. In low TOP economies, all five macrodrivers exhibit bidirectional relationships with LEFF.
Research limitations/implications
This research focuses on countries with high and low TOP, limiting the generalizability of its findings to other economic systems due to the unique trade, institutional and governance frameworks of these two distinct groups.
Originality/value
To the best of the authors’ knowledge, this study is the first to compare the impact of theoretical macro drivers on LEFF across groups of countries differentiated by their degrees of TOP (high and low).
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Calvin W.H. Cheong, Miin Huui Lee and Marc Arul Weissmann
This study investigates the effects of credit access and tax structures on the performance of Manufacturing SMEs in Malaysia.
Abstract
Purpose
This study investigates the effects of credit access and tax structures on the performance of Manufacturing SMEs in Malaysia.
Design/methodology/approach
This study uses the dynamic panel system generalized method of moments, controlling for firm-specific as well as macroeconomic effects
Findings
The paper finds that (1) debt funding is not conducive to SME performance; (2) access to non-bank credit sources and tax incentives support SME performance by lowering opportunity costs of riskier projects; (3) existing tax structures in Malaysia inhibit SME growth and encourage manipulation of accounts; and (4) investors in Malaysia prefer SMEs that are more conservative in their accounting and taxation practices.
Research limitations/implications
Access to Malaysian SME data is restricted. Although robust methods are used, there is a chance that different conclusions may arise with a much larger sample.
Practical implications
The findings provide clear direction in the discussion and enactment of new policies that support SME growth especially in support of non-bank credit sources instead of revising tax policies. The paper also contributes by providing guidance to future SME studies that are inhibited by limited access to data.
Originality/value
SME-related studies on credit access and tax structures have often relied on traditional metrics (e.g. total amount of bank loans; tax expenses) to measure its impact on entrepreneurial/SME performance. Although relevant to the past, financial policies have evolved to embrace Industrial Revolution 4.0. This paper is a shift from the traditional by investigating the impact of new and innovative sources of funding such as incubators and crowdfunding. Also, since one cannot exist without the other, examining the joint impact of credit access and tax structures provides a more holistic view on policy-making, something prior studies have not addressed.
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Examines the tenth published year of the ITCRR. Runs the whole gamut of textile innovation, research and testing, some of which investigates hitherto untouched aspects. Subjects…
Abstract
Examines the tenth published year of the ITCRR. Runs the whole gamut of textile innovation, research and testing, some of which investigates hitherto untouched aspects. Subjects discussed include cotton fabric processing, asbestos substitutes, textile adjuncts to cardiovascular surgery, wet textile processes, hand evaluation, nanotechnology, thermoplastic composites, robotic ironing, protective clothing (agricultural and industrial), ecological aspects of fibre properties – to name but a few! There would appear to be no limit to the future potential for textile applications.
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The purpose of this paper is to examine fashion clothing consumption in relation to status consumption and perceptions of fashion clothing brand status (BS) in transition…
Abstract
Purpose
The purpose of this paper is to examine fashion clothing consumption in relation to status consumption and perceptions of fashion clothing brand status (BS) in transition economies.
Design/methodology/approach
A survey was designed and administered in China to a sample of 460 young adults aged between 18 and 24.
Findings
The results indicate that individuals’ status consciousness (SC) has an impact on fashion clothing brand preference (BP) and perceptions of the brand's status. Also, individuals’ BP and perceived BS were found to mediate the relationship between individuals’ SC and their willingness to pay (WTP) a premium for a specific brand of fashion clothing.
Originality/value
The originality of this study rests on a detailed examination of SC and status perceptions in the context of branded fashion clothing (western vs Asian brands) in China, where individuals’ wealth, status-consciousness and brand-consciousness are growing. Equally, it provides knowledge for academics about the development of status consumption in an emerging economy. Importantly, from a theory perspective this study is the first to examine the intervening roles of perceived BS and BP in the relationship between SC and WTP a price premium for fashion clothing brands. Further, studying this evolving market provides insights for practitioners into the design of marketing strategies for their brands. The findings may assist practitioners to address drivers of perception of their brands, especially for Asian brands competing against western brands.
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