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Article
Publication date: 14 December 2021

Ghulame Rubbaniy, Ali Awais Khalid, Muhammad Faisal Rizwan and Shoaib Ali

The purpose of this study is to investigate safe-haven properties of environmental, social and governance (ESG) stocks in global and emerging ESG stock markets during the…

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Abstract

Purpose

The purpose of this study is to investigate safe-haven properties of environmental, social and governance (ESG) stocks in global and emerging ESG stock markets during the times of COVID-19 so that portfolio managers and equity market investors could decide to use ESG stocks in their portfolio hedging strategies during times of health and market crisis similar to COVID-19 pandemic.

Design/methodology/approach

The study uses a wavelet coherence framework on four major ESG stock indices from global and emerging stock markets, and two proxies of COVID-19 fear over the period from 5 February 2020 to 18 March 2021.

Findings

The results of the study show a positive co-movement of the global COVID-19 fear index (GFI) with ESG stock indices on the frequency band of 32 to 64 days, which confirms hedging and safe-haven properties of ESG stocks using the health fear proxy of COVID-19. However, the relationship between all indices and GFI is mixed and inconclusive on a frequency of 0–8 days. Further, the findings do not support the safe-haven characteristics of ESG indices using the market fear proxy (IDEMV index) of COVID-19. The robustness analysis using the CBOE VIX as a proxy of market fear supports that ESG indices do not possess safe-haven properties. The results of the study conclude that the safe-haven properties of ESG indices during the ongoing COVID-19 pandemic is contingent upon the proxy of COVID-19 fear.

Practical implications

The findings have important implications for the equity investors and assetty managers to improve their portfolio performance by including ESG stocks in their portfolio choice during the COVID-19 pandemic and similar health crisis. However, their investment decisions could be affected by the choice of COVID-19 proxy.

Originality/value

The authors believe in the originality of the paper due to following reasons. First, to the best of the knowledge, this is the first study investigating the safe-haven properties of ESG stocks. Second, the authors use both health fear (GFI) and market fear (IDEMV index) proxies of COVID-19 to compare whether safe-haven properties are characterized by health fear or market fear due to COVID-19. Finally, the authors use the wavelet coherency framework, which not only takes both time and frequency dimensions of the data into account but also remains unaffected by data stationarity and size issues.

Details

Studies in Economics and Finance, vol. 39 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 4 November 2019

Yasin Mahmood, Abdul Rashid, Faisal Rizwan and Maqsood Ahmad

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus…

Abstract

Purpose

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies.

Design/methodology/approach

The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model.

Findings

The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across firms. Inflation, institutional quality and banking sector development negatively affect FF, while equity market development has a significant positive impact. Gross domestic product growth was found to be an insignificant predictor of FF.

Practical implications

This study has practical implications for corporate finance managers, regulators and investors, who must consider the significant factors of this study when making economic decisions. Finance managers can thus make appropriate decisions regarding capital structure and FF. Regulators of the banking sector can take appropriate measures to enhance competition and increase the development of the banking sector. Further, regulators of the equity market can enhance the development of the market to enhance the supply of capital.

Originality/value

This study adds to the literature showing that not only firm-specific factors affect corporate FF, but country-specific macroeconomic and institutional factors also have a significant effect. It also adds to the literature in the area of corporate FF; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Article
Publication date: 16 December 2019

Yasin Mahmood, Maqsood Ahmad, Faisal Rizwan and Abdul Rashid

The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial…

Abstract

Purpose

The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF).

Design/methodology/approach

The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development and corporate FF; hypotheses were tested using an unbalanced panel logistic regression model.

Findings

The paper provides empirical insights into the relationships between macroeconomic factors and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt financing.

Practical implications

The banking sector is an important provider of capital to business entities. A concentrated banking system discourages the provision of capital to firms; hence regulators have to take appropriate measures to resolve the problem of a reduced supply of capital. Banking sector development facilitates the provision of capital; further development may reduce bank lending rates to firms. Equity market development positively affects FF; hence, firm managers can use equity financing to resume FF. By following pecking order theory, managers use internal sources to finance value-maximizing investment projects, debt and issue shares as the last choice to get financing. When borrowing capacity is depleted, managers can obtain further funds by issuing stocks.

Originality/value

FF is an emergent area of research in advanced countries, while in developing economies, it is in the initial stages. Little work is available in this area to find the impact of banking sector concentration, banking sector development and equity market development, therefore, this study fills this gap in the existing literature.

Details

South Asian Journal of Business Studies, vol. 9 no. 1
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 22 March 2021

Yasin Mahmood, Abdul Rashid and Muhammad Faisal Rizwan

This study aims to examine how corporate financial flexibility, financial sector development and the regulatory environment influence corporate investment decisions in an…

Abstract

Purpose

This study aims to examine how corporate financial flexibility, financial sector development and the regulatory environment influence corporate investment decisions in an emerging economy after controlling for several macroeconomic factors.

Design/methodology/approach

The authors estimated random-effects models to empirically examine the impacts of corporate financial flexibility, banking sector development, equity market development, regulatory quality and corruption on corporate investment decisions. The empirical analysis is based on an unbalanced annual panel data set of a sample of 198 non-financial firms listed on the Pakistan Stock Exchange for the period 1992–2018.

Findings

The results show that financially flexible firms tend to invest more. The increased banking sector development, stock market development and better regulatory quality play a pivotal role for enabling firms to increase their investment ability. However, the results reveal that corruption acts as a barrier and reduces corporate investments during the examined period. The results suggest that unused borrowing capacity is a good source of financial flexibility. These results strongly support the pecking order theory, which explains why firms incline toward internal sources for financing their investments and why they prefer debt to equity when go for external financing.

Practical implications

The empirical findings of the study enable corporate managers to make better financing and investment decisions by understanding the significance of the attainment and maintenance of the corporate financial flexibility to enhance firm value. Furthermore, the findings enable corporate managers to examine and understand the role of banking sector development (BSD), equity market development (EMD), regulatory quality and the role of corruption in affecting corporate firms' investment ability, allowing them to make appropriate investment decisions, especially from an emerging economy perspective. The findings also help investors in making appropriate investment decisions while they are purchasing financial assets. Finally, the findings of the study have some implications for regulators as well. Specifically, the findings suggest that the authorities should implement economic and financial policies favoring banking sector as well as equity market development to enhance corporate investment.

Originality/value

The study significantly adds to the literature by examining the impact of financial flexibility, financial sector development and regulatory environment on corporate investment decisions. According to the authors' knowledge, the empirical evidence examining the impact of all of these factors on corporate investment is very scarce. Therefore, this study is an effort to fill the gap left in the literature.

Article
Publication date: 18 May 2021

Samik Shome, Deepak Danak, Parag Rijwani and Ashish Chandra

Abstract

Details

Management Decision, vol. 59 no. 4
Type: Research Article
ISSN: 0025-1747

Article
Publication date: 30 August 2019

Muhammad Ali, Long Lin, Saira Faisal, Syed Rizwan Ali and Syed Imran Ali

This paper aims to analyse the let-down stability of the binder-free dispersion of non-printing ink grades of carbon black and to assess the screen-printability of the…

Abstract

Purpose

This paper aims to analyse the let-down stability of the binder-free dispersion of non-printing ink grades of carbon black and to assess the screen-printability of the finished inks formulated thereof from these pigment dispersions.

Design/methodology/approach

Binder-free pigment dispersions that were prepared and optimised following a ladder series of experiments (reported in a separate study by the authors) were let-down with three different binders such that inks containing various amounts of a binder were prepared followed by a rheological characterisation immediately after formulation and after four weeks of storage. The screen printability of the inks that displayed considerable stability was assessed, so was the ink film integrity.

Findings

The pigment dispersions that were considered in the present study were generally found to be stable after let-down with different binders. This was indicated by the fact that the finished inks possessed a shear thinning viscosity profiles, after formulation and after storage, in most of the cases. Furthermore, the screen printability of the inks was also found to be good in terms of registration quality of a selected design. The structure of the ink film deposits on uncoated and binder-coated textile fabrics was also highly integrated and free from discontinuities.

Originality/value

Carbon blacks with very low volatile matter content and/or high surface area are generally not considered suitable for use in the formulation of printing inks. This is because of their generally poor dispersability and inability to form dispersions that remain stable over extended periods. This work, which is a part of a larger study by the authors, concerns with the stability of inks formulated from binder-free dispersions of such non-printing ink grades of carbon black. The major advantage of using such pigments in inks is that the required functionality is achieved at considerably low pigment loadings.

Details

Pigment & Resin Technology, vol. 48 no. 6
Type: Research Article
ISSN: 0369-9420

Keywords

Article
Publication date: 27 May 2019

Muhammad Naeem Shahid, Abdul Sattar, Faisal Aftab, Ali Saeed and Aamir Abbas

This paper aims to enhance the existing literature on adaptive market hypothesis (AMH) as this study first time links the month of Ramadan with AMH that permits the…

Abstract

Purpose

This paper aims to enhance the existing literature on adaptive market hypothesis (AMH) as this study first time links the month of Ramadan with AMH that permits the performance of well-known Ramadan effect to fluctuate over time.

Design/methodology/approach

To fulfill the purpose, the authors inspect the daily returns of 107 individual firms listed at Pakistan Stock Exchange over the period of 20 years. To explore the varying degree of return predictability during Ramadan, the authors use four different subsamples comprising equal length of observations of five years each. The authors use a GARCH (1,1) regression model which facilitates for time varying nature of volatility in equity returns. To facilitate the non-normal nature of stock return data, the authors use Kruskal–Wallis test statistic.

Findings

The authors find that behavior of Ramadan effect evolves over time, as performance of this effect varies from time to time and consistent with AMH. Finally, the paper proposes that AMH is well elucidation of behavior of Ramadan effect than traditional efficient market hypothesis.

Research limitations/implications

First limitation is related to the choice of sub-sample as the study uses a sub-sample of five years. Second, the authors ignore transection cost (commissions, fee and taxes) as it is freely negotiated and varies between 4 and 10% (Khan, 2013). Due to such varying information we ignore the transaction cost. It is suggested that a sub-sample analysis of long period may be a more appropriate method to elucidate the idea of AMH in future research and suggest the current method could be adapted and helpful to examine other calendar and market anomalies in different equity markets.

Practical implications

The paper includes implications for investors to choose a better model for investment. Investors can exploit greater returns in future month of Ramadan periods. Furthermore, the researchers can easily extend the methodology used in the study to address multiple issues like adaptive behavior of returns from bonds, real estate investment trusts, cryptocurrencies and trading rules of strategies.

Social implications

Study confirms from sample t-test and GARCH (1,1) model that Ramadan effect is present in the full and in certain sub-samples; therefore, based on these discrepancies investors can earn abnormal returns by developing specific investment strategies as investors usually make investments in share according to the religious context of Islamic Calendar. The results provide good references for suitable time of investment in stock market. The findings of this study will be helpful to investors and brokers as well as portfolio managers to capture favorable returns across the Islamic calendar.

Originality/value

The paper identified need to study why behavior of Ramadan effect varies over time. The data set comprises daily returns of 107 individual companies over the period of 20 years to better investigate the varying nature of anomalous effect of month of Ramadan. The findings are valuable for international investors and portfolio managers.

Details

Journal of Islamic Marketing, vol. 11 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 18 March 2022

Francisca Omama Koranteng, Faisal Iddris, Gabriel Dwomoh and Courage Simon Kofi Dogbe

This study explored the moderating role of organizational culture in the relationship between organizational leadership and organizational culture in the banking sector.

Abstract

Purpose

This study explored the moderating role of organizational culture in the relationship between organizational leadership and organizational culture in the banking sector.

Design/methodology/approach

The sample comprised of 331 full-time bank employees in the Ashanti region of Ghana. The reliability and validity of the data was tested using confirmatory factor analysis, with structural equation modeling as the main means of analysis, run using Amos (V23) in the data analysis.

Findings

The study concluded that all four leadership styles (transformational, transactional, servant and sustainable leadership styles) had a positive effect on banks' efficiency. Organizational culture also had a direct positive effect on banks' efficiency in Ghana. The study concludes that organizational culture positively moderated the relationship between organizational leadership and organizational efficiency in the banking industry. This implies organizational culture strengthens the relationship between organizational leadership and organizational efficiency in the banking industry.

Research limitations/implications

– A limitation of this study was to consider organizational culture as a composite variable, instead of considering the effects of the individual dimensions (clan culture, adhocracy culture, hierarchy culture and market culture). Although using the composite variable was not theoretically wrong, each of the four dimensions had unique characteristics and may influence organizational outcomes differently, and should have been considered.

Practical implications

To achieve strategic organizational outcomes, leaders are to comprehend the various leaderships styles and how they could be transformed to influence organizational outcomes.

Originality/value

Past studies have paid limited attention to the interaction between organizational leadership and organizational culture, and how this affects organizational efficiency.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 10 no. 3
Type: Research Article
ISSN: 2049-3983

Keywords

Open Access
Article
Publication date: 28 March 2019

Muhammad Imran Malik, Faisal Nawaz Mir, Saddam Hussain, Shabir Hyder, Asim Anwar, Zia Ullah Khan, Noman Nawab, Syed Farjad Ali Shah and Muhammad Waseem

This paper aims to examine the mediating role of environmental concern in the relationship of green purchase awareness and purchasing behavior of fast food consumers…

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Abstract

Purpose

This paper aims to examine the mediating role of environmental concern in the relationship of green purchase awareness and purchasing behavior of fast food consumers keeping in view the theory of planned behavior.

Design/methodology/approach

A quantitative, cross-sectional design is used by collecting primary responses through a validated questionnaire. In all, 1,008 male and female buyers of fast food were sampled. Structural equation modeling is applied.

Findings

The results revealed that green purchase awareness has a positive relationship with green purchase behavior, and environmental concern has no mediation in the relationship. Upon having awareness, the respondents adopted green or pro-environmental behavior, but at the same time, they were found having least concern for the protection of environment.

Research limitations/implications

This is a cross-sectional study with questionnaire. Multiple sources of data collection results in weakening self-reporting bias.

Practical implications

Implications count toward individuals, enterprises and society at general.

Originality/value

The study highlights the issue of not having concern for the protection of the environment even after having green purchase awareness. This is the first time the environmental concern is examined as a mediator in the selected relationship. The contradictory results of having no environmental concern differentiate this study from others.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 13 no. 1
Type: Research Article
ISSN: 2398-7812

Keywords

Open Access
Article
Publication date: 21 September 2020

Ejaz Aslam and Razali Haron

The purpose of this study is to examine the impact of corporate governance (CG) on intellectual capital efficiency (ICE) in Islamic banks (IBs) of Organisation of Islamic…

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Abstract

Purpose

The purpose of this study is to examine the impact of corporate governance (CG) on intellectual capital efficiency (ICE) in Islamic banks (IBs) of Organisation of Islamic Cooperation (OIC) countries.

Design/methodology/approach

A sample of 129 IBs is drawn from the 29 OIC countries from 2008 to 2017. A two-step system of the generalised method of moments has been employed to account for the unobserved endogeneity and heteroscedasticity issue that arose due to time-variant and time-invariant variables.

Findings

The results revealed that CG measures, namely board size, non-executive directors do explain the extent and quality of ICE in the expected direction. In contrast, CEO duality, Shariah board and audit committee are negatively associated with the ICE. Moreover, the authors observed that male CEO in IBs has negative, but foreign ownership has a positive association with ICE in determining the extent of ICE in IBs. This study contributes specifically to the stakeholder theory and the literature of ICE and CG.

Research limitations/implications

The findings of the study provide insight into how a larger board can overcome skill deficiency and how making more investment in ICE would help to enhance productivity. Hence, bank managers, regulators, policymakers and shareholders have strong interest in designing the appropriate CG structure to develop ICE in banks.

Originality/value

This is one of the few studies which provide empirical evidence of CG mechanism to boost the ICE in the perspective of IBs of the OIC countries.

Details

Asian Journal of Accounting Research, vol. 5 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

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