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Article
Publication date: 15 May 2017

Basil Al-Najjar and Dana Al-Najjar

The purpose of this paper is to investigate the effect of external financing needs on both firm value and corporate governance mechanisms within the UK SME context. This framework…

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Abstract

Purpose

The purpose of this paper is to investigate the effect of external financing needs on both firm value and corporate governance mechanisms within the UK SME context. This framework is of importance because of the limited external financial resources SMEs might face.

Design/methodology/approach

The authors consider the endogeneity problem between corporate governance mechanisms and firm value, and hence, the three stages least squares and the instrumental variables based on two stages least squares estimation methods are employed.

Findings

The authors find a positive relationship between external financing needs and firm value. In addition, the authors detect that size and profitability are positively associated with firm value in the sample. Concerning the corporate governance index (CGI), the authors detect that big SMEs and those with low-debt levels have better corporate governance structures.

Originality/value

The authors employ a CGI for the sample which is constructed using ten corporate governance variables. The authors also examine different factors that affect SMEs 2019 governance by applying different models including logistic analysis.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 1 March 2021

Hazem Al-Najjar, Nadia Al-Rousan, Dania Al-Najjar, Hamzeh F. Assous and Dana Al-Najjar

The COVID-19 pandemic virus has affected the largest economies around the world, especially Group 8 and Group 20. The increasing numbers of confirmed and deceased cases of the…

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Abstract

Purpose

The COVID-19 pandemic virus has affected the largest economies around the world, especially Group 8 and Group 20. The increasing numbers of confirmed and deceased cases of the COVID-19 pandemic worldwide are causing instability in stock indices every day. These changes resulted in the G8 suffering major losses due to the spread of the pandemic. This paper aims to study the impact of COVID-19 events using country lockdown announcement on the most important stock indices in G8 by using seven lockdown variables. To find the impact of the COVID-19 virus on G8, a correlation analysis and an artificial neural network model are adopted.

Design/methodology/approach

In this study, a Pearson correlation is used to study the strength of lockdown variables on international indices, where neural network is used to build a prediction model that can estimate the movement of stock markets independently. The neural network used two performance metrics including R2 and mean square error (MSE).

Findings

The results of stock indices prediction showed that R2 values of all G8 are between 0.979 and 0.990, where MSE values are between 54 and 604. The results showed that the COVID-19 events had a strong negative impact on stock movement, with the lowest point on the March of all G8 indices. Besides, the US lockdown and interest rate changes are the most affected by the G8 stock trading, followed by Germany, France and the UK.

Originality/value

The study has used artificial intelligent neural network to study the impact of US lockdown, decrease the interest rate in the USA and the announce of lockdown in different G8 countries.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 14 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 8 July 2014

Dana Al-Najjar and Basil Al-Najjar

The purpose of this paper is to build a neural network system to predict corporate credit rating in Jordanian non-financial firms, using 19 different financial characteristics…

Abstract

Purpose

The purpose of this paper is to build a neural network system to predict corporate credit rating in Jordanian non-financial firms, using 19 different financial characteristics such as profitability, leverage ratios, liquidity, bankruptcy, and sales performance.

Design/methodology/approach

The study adopts two neural network techniques namely, Kohonen network and Back Propagation Neural Network (BPNN). Our sample includes the manufacturing firms that have provided the required financial information for the period from 2000 to 2007.

Findings

BPNN has successfully predicted firms with high performance gaining A rating and the bankrupted firms with D rating for the period from 2005 to 2007.

Originality/value

This study is the first study to investigate credit rating in Jordan using Neural Network technique.

Details

Journal of Enterprise Information Management, vol. 27 no. 4
Type: Research Article
ISSN: 1741-0398

Keywords

Content available
Article
Publication date: 8 July 2014

Zahir Irani and Muhammad Kamal

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Abstract

Details

Journal of Enterprise Information Management, vol. 27 no. 4
Type: Research Article
ISSN: 1741-0398

Article
Publication date: 3 August 2021

Ahmad Yuosef Alodat, Zalailah Salleh, Hafiza Aishah Hashim and Farizah Sulong

This study aims to assess the effect of director board and audit committee attributes and ownership structure on firm performance. In general, resource dependency and agency…

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Abstract

Purpose

This study aims to assess the effect of director board and audit committee attributes and ownership structure on firm performance. In general, resource dependency and agency theories have underlined the superior performance of firms equipped with stronger Corporate Governance (CG) versus those of deficient governance. Concurrently, the study delineated the provisions of ownership structure provision, specifically foreign ownership and institutional ownerships, thus describing the component denoting the structural significance in explicating firm performance.

Design/methodology/approach

The current study implemented an empirical approach involving the construction of extensive CG measures thus, subjected to 81 non-financial firms listed on the Amman Stock Exchange spanning the period of 2014–2018.

Findings

The current study identified the positive and significant relationship between the board of directors and audit committee characteristics with the firm performance measures tested, namely, return on equity (ROE) and Tobin’s Q. In terms of ownership structure, both foreign and institutional ownerships yielded a significant and positive relationship with ROE. Meanwhile, Tobin’s Q led to an insignificant and negative relationship between both ownership types and firm performance measures.

Practical implications

The analytical outcomes substantiate the possibility of enhanced performance shown by growing global firms because of the implementation of CG mechanisms, specifically because of the practices resulting in minimised agency costs.

Originality/value

The current study offers novel evidence detailing the impact of CG effectiveness towards performance and its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. It is a timely contribution towards the current understanding of the relationship linking governance and performance for the purpose of ensuring the adoption and imposition of a strong corporate governance code by the government.

Details

Journal of Financial Reporting and Accounting, vol. 20 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 10 January 2023

Ascarya Ascarya and Atika Rukminastiti Masrifah

This study aims to develop the maqasid index (MI) for Islamic corporate social responsibility (CSR), namely, Dana Abadi Umat (DAU) (Ummah’s Endowment Fund) or MI-DAU in Indonesia.

Abstract

Purpose

This study aims to develop the maqasid index (MI) for Islamic corporate social responsibility (CSR), namely, Dana Abadi Umat (DAU) (Ummah’s Endowment Fund) or MI-DAU in Indonesia.

Design/methodology/approach

Modeling and weighting are based on Delphi and analytic network process (ANP) methods, called Delphi–ANP additive weighting. The Delphi method was applied to design and validate the factors of the MI-DAU model, and the ANP method was applied to generate and validate weights for these factors. Finally, the MI-DAU is calculated, based on the planned budget and actual allocation of DAU returns, called the maslahah fund, using additive weighting.

Findings

Delphi and ANP show significant and robust results. The priority order and weights of maqasid Shariah are safeguard the faith (0.32), safeguard the intellect (0.219), safeguard the life (0.204), safeguard the wealth (0.171) and safeguard the lineage (0.104). Meanwhile, the priority order and weights of the main activities are education (0.190), Ummah’s economy (0.167), Hajj service (0.155), Da’wah (0.124), health care (0.118), social-religious (0.097), worship facilities (0.085) and disaster emergency response (0.065). Finally, the results of MI-DAU show a high index in 2019 and 2020 of 71.89 and 69.51, respectively, generated from allocation ratio of 90.63% and 85.98%, respectively.

Research limitations/implications

Maqasid Shariah used in this study follows Al-Ghazali, where it could also follow maqasid Shariah of Abu Zahrah or Al-Najjar. Moreover, the MI-DAU score uses additive calculations, where it can also use Pentagon calculation.

Practical implications

The improved framework and method used to design MI-DAU in this study could be applied to design more scientific MI for other Islamic financial institutions.

Originality/value

The novelty of this study is in the improved method used to design the MI model, including its factors, using Delphi, and to assign weights of all factors using ANP, where both provide validation for more robust MI model.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 9 November 2022

Abdellatif Hussein Abogazia, Hafiza Aishah Hashim, Zalailah Salleh and Abdou Ahmed Ettish

This study aims to investigate the moderating effect of external financing needs on the relationship between the disclosure level of integrated reporting (IR) and firm value using…

Abstract

Purpose

This study aims to investigate the moderating effect of external financing needs on the relationship between the disclosure level of integrated reporting (IR) and firm value using evidence from Egypt.

Design/methodology/approach

This study uses a panel regression analysis for a matched sample of 50 companies listed on the Egyptian Stock Exchange (EGX), specifically from EGX100. The sample covers four years (2017–2020). The current study uses content analysis to measure IR and Tobin’s Q as a proxy for firm value.

Findings

The findings reveal a significant positive relationship between the disclosure level of IR and firm value. In addition, the authors find that external financing needs moderate the relationship between IR and firm value. It is concluded that the higher the disclosure level of IR content, the higher the firm’s value, and that this relationship strengthens in firms with high needs for external financing.

Practical implications

Several practical implications can be derived from the results of the current study. Policymakers and regulators can impose mandatory requirements for IR in Egypt. It also opens new insights for board members, managers, analysts and auditors in forming financing decisions based on annual reports.

Originality/value

The present study has a novel insight from a developing country and significant contributions to the extant literature. The study provides empirical evidence from an emerging economy and an insight into how external financing can be used for firms with different levels of IR. It also provides a comprehensive disclosure index to estimate the level of IR.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 4 September 2007

Dana M. Johnson, Jichao Sun and Mark A. Johnson

The primary purpose of the research was to determine whether automotive manufacturers integrate multiple manufacturing initiatives and whether performance measures were impacted

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Abstract

Purpose

The primary purpose of the research was to determine whether automotive manufacturers integrate multiple manufacturing initiatives and whether performance measures were impacted directly by these initiatives.

Design/methodology/approach

A mail survey questionnaire was used to gather data about the attitudinal attributes associated with implementing multiple manufacturing initiatives (i.e. ISO 9001, ISO 14001, lean manufacturing) and changes in key performance measures, both financial and nonfinancial. Descriptive statistics were utilized to gain a better understanding of the level of implementation of specific initiatives. Different forms of regression analysis were used to try to locate a statistically significant predictive model.

Findings

Two surveys of automotive suppliers were conducted during early summer 2001 and 2002 to gather information about multiple initiatives, customer mandates, and performance measurement. The results indicate that suppliers are not integrating the initiatives or linking them to financial and/or nonfinancial performance measurements. It was intended to develop a predictive model linking the implementation of multiple manufacturing initiatives and the impact on changing in performance measures. No statistically significant model was discovered. However, and not surprisingly, the level of implementation of different initiatives varies from one organization to another.

Research limitations/implications

The size of the sample could pose a limitation in terms of generalizabiity. Also, this study was applied to specifically to the automotive supply parts industry and it could be applicable to other manufacturing supply chains.

Practical implications

Automotive industry suppliers have been faced with multiple, mandated requirements from the original equipment manufacturers. Continuing pressures to reduce price, improve quality, while producing an environmental friendly product using lean manufacturing practices has placed a financial strain on suppliers operating with thin profit margins. Are these initiatives being integrated into the overall business strategy and what impact are they having on performance measures? Based on the research, it did not appear to be well integrated. Additionally, a comparative analysis was conducted to note differences between senior management and middle management/professional staff. It was not surprising to find that senior management has higher expectations and opinions regarding implementation levels and performance.

Originality/value

The information in this study is particularly useful to manufacturers or others implementing standards or methodologies and to understand whether there is a direct impact on performance measurements.

Details

Measuring Business Excellence, vol. 11 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 28 November 2022

Randi Swandaru and Aishath Muneeza

This study aims to scrutinize the modus operandi of global financial frauds in Islamic financial institutions and assesses whether those frauds can be prevented using High…

Abstract

Purpose

This study aims to scrutinize the modus operandi of global financial frauds in Islamic financial institutions and assesses whether those frauds can be prevented using High Standards of Shariah Governance.

Design/methodology/approach

A qualitative research methodology is deployed to conduct this study by analyzing and scrutinizing academic journals, reports, regulatory guidelines and articles.

Findings

The findings in this study show that the modus operandi ranges from bribery, forged documents, unlawful profiteering, credit limit allowance ignorance, Ponzi scheme, culprit collaboration from inside and outside the banks. This paper also argues that the centralized and high-standard Shariah governance framework better prevents fraud by providing better Shariah supervision and risk management measures.

Research limitations/implications

The observations in this study are limited to financial fraud at Islamic financial institutions that happened in the 21st century with more than $100m in financial loss or penalty.

Originality/value

This study may contribute significantly by providing insight for regulators to strengthen the Shariah governance framework in their respective countries. It also benefits Islamic financial institutions by enhancing their capacity to anticipate future financial fraud.

Details

International Journal of Law and Management, vol. 64 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Open Access
Article
Publication date: 10 May 2019

Pooja Rani

This paper aims to analyze the customer-based brand equity index (CBBE-I) of Tourism Brand Kurukshetra.

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Abstract

Purpose

This paper aims to analyze the customer-based brand equity index (CBBE-I) of Tourism Brand Kurukshetra.

Design/methodology/approach

For the purpose of this study, the author uses primary and secondary data on destination attractiveness of Tourism Brand Kurukshetra for a sample of 150 tourists including domestic and international. The study used structural equation modeling and factor weighting methods.

Findings

The research presents an investigation into the destination attractiveness index of Tourism Brand Kurukshetra in an emerging market, i.e. Kurukshetra. Tourism Brand Kurukshetra from the brand equity perspective is an attractive destination.

Practical implications

It suggests that the CBBE index of Kurukshetra ought to analyze a longitudinal study to get the proper image of Kurukshetra from a touristic perspective. It provides long-term attractiveness to enhance tourism.

Originality/value

This is the first brand equity study contributed to branding literature of Tourism Brand Kurukshetra. The index is an accomplished way to present the tourism condition of any destination.

Details

Journal of Tourism Analysis: Revista de Análisis Turístico, vol. 26 no. 1
Type: Research Article
ISSN: 2254-0644

Keywords

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