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Book part
Publication date: 10 April 2023

Ari Prasetyo and Taufik Faturohman

Starting in March 2020, Indonesia had the COVID-19 pandemic. Furthermore, this situation has decreased the utilization of highways due to complying with the government regulation…

Abstract

Starting in March 2020, Indonesia had the COVID-19 pandemic. Furthermore, this situation has decreased the utilization of highways due to complying with the government regulation, including work from home and large-scale social restrictions to reduce the spreading the corona virus. There are three highway companies listed on Indonesia Stock Exchange such as CMNP, META, and JSMR. On the other hand, the research about the financial performance and the financial distress prediction in Highways sector, especially in Indonesia is not available during the COVID-19 pandemic. This research is aimed to evaluate the financial distress by the Zmijewski model with two criterions: bankrupt and non-bankrupt zone and the financial performance by state-owned enterprise (SOE) rating with three criterions: healthy, less healthy, and unhealthy condition. The period of research is Q1 2019 – Q1 2020 as the period before the COVID-19 pandemic and Q2 2020 – Q2 2021 as the period during the COVID-19 pandemic. The study concludes that all highway companies was in non-bankrupt zone by the Zmijewski model for both before and during the COVID-19 pandemic. In addition, based on SOE rating on average for the period before the COVID-19 pandemic, CMNP, META, and JSMR achieved rating consecutively BBB, BBB, and BB. Meanwhile, on average, for the period during the COVID-19 pandemic, CMNP, META, and JSMR achieved ratings consecutively BB, BB, and B.

Details

Comparative Analysis of Trade and Finance in Emerging Economies
Type: Book
ISBN: 978-1-80455-758-7

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Article
Publication date: 17 November 2023

Yunping Hao and Wei Zhao

This study aims to empirically examine the impact of digital finance on spatial urbanization and elucidate its underlying mechanisms.

Abstract

Purpose

This study aims to empirically examine the impact of digital finance on spatial urbanization and elucidate its underlying mechanisms.

Design/methodology/approach

Using panel data of Chinese prefecture-level cities from 2011 to 2021, and using a spatial dynamic panel model, the authors analyzed the effects of digital finance on spatial urbanization and the mechanism of its action.

Findings

The findings of the study reveal that digital finance, along with its sub-dimensions, namely coverage breadth, usage depth and digitization degree, all contribute to the enhancement of spatial urbanization. The information channel effect generated by the development of postal and telecommunication businesses, the goods delivery effect generated by the development of retail businesses and the wealth accumulation effect generated by the accumulation of household wealth are all important channels through which digital finance promotes spatial urbanization. Digital finance exerts a significant promotional effect on spatial urbanization in second-tier cities, third-tier cities and their subsequent tiers. This observation alludes to the regionally inclusive nature of spatial urbanization promotion facilitated by digital finance.

Originality/value

The present study endeavors to fill this void by employing empirical analysis to investigate the ramifications of digital finance on spatial urbanization, thereby shedding light on the pivotal role played by digital finance in expediting the progression of spatial urbanization. This study undertakes an examination of the spatial spillover effects, thus providing a comprehensive exposition of the influence of digital finance on spatial urbanization. This study introduces this crucial dimension, and the empirical findings elucidate that digital finance fosters the evolution of spatial urbanization by broadening the coverage of information channels, augmenting the efficiency of goods distribution and enhancing wealth accumulation efficacy.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Book part
Publication date: 26 March 2024

Neha Verma

Purpose: This chapter is based on risk management of the insurance sector with reinsurance as its linchpin. Such is the importance of the insurance sector that its risk management…

Abstract

Purpose: This chapter is based on risk management of the insurance sector with reinsurance as its linchpin. Such is the importance of the insurance sector that its risk management must be considered.

Need for the study: Risk management of various sectors is gaining much attention. The insurance sector, known to manage the risk of multiple sectors, also requires its own chance to be controlled with the same or even more intensity. Considering the importance of reinsurance coupled with the dependency of primary insurers on reinsurers and the absence of research on reinsurers, the need to conduct a comprehensive study on the topic is felt.

Methodology: It will be a conceptual chapter based on the rigorous literature on the topic integrated with the researcher’s insights to bring forth the framework of reinsurers for the readers.

Findings: It is found that insurers can themselves become the victims of the financial crisis in case they insure risks that surpass their economic boundaries. Not only this, the failure of insurance companies can have a ripple effect on the country’s economy. Therefore, insurers must possess financial resilience; to remain so, they need to have prudent management of the risk they are undertaking.

Practical implications: The study covers a relatively less researched area of reinsurance and hence has a vast scope of research in the future. The study would be helpful to stakeholders like regulators and primary insurers. It will unveil the paradigm of reinsurance and enlighten the stakeholders on how to use it effectively.

Details

The Framework for Resilient Industry: A Holistic Approach for Developing Economies
Type: Book
ISBN: 978-1-83753-735-8

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Book part
Publication date: 25 September 2020

Yeşim Şendur

Introduction:Shareholder activism comprises a range of activities by public companies’ shareholders who desire some change in the corporation and intervene in the management’s…

Abstract

Introduction:Shareholder activism comprises a range of activities by public companies’ shareholders who desire some change in the corporation and intervene in the management’s decisions. The goals of activists are various. They may seek to change the company’s strategy, financial structure, management, or board in general. More specifically they may seek to change the capital allocation strategy (stock buybacks, dividends, or company’s acquisitions policies), the board composition, the company’s executive compensation plans, or the company’s certain functions (risk management, audit).

Purpose:The purpose of this literature review research study is to explore the concept of shareholder activism. According to a point of view, these activist actions stimulate better corporate governance practice in the companies and ultimately lead to an increase in the company’s stock price in the short term. The others claim that activism increases the company’s share price volatility in the long term. In the near future, the impact of shareholder activism will continue to rise and the ways how the companies respond to it is gaining importance. This study sheds light on the types of shareholder activism, when they are likely to approach a company and which tactics they most likely use.

Methodology:Considering the rapid expansion of shareholder activism concept in the world the author makes a review of literature on shareholder activism. The structure of this chapter is as follows. First, the characteristics of shareholder activism are introduced. Second, the theoretical background of this concept is given in detail. Third, the types of shareholder activism are discussed. Finally, the conclusion comprises a summary of shareholder activism.

Findings:The study finds out that shareholder activism has started to have a significant influence on corporate governance policy that a firm adopts in recent years. Shareholder activism increases levels of shareholder engagement in firm decisions and fosters a long-term corporate governance culture. As institutional investors get a higher portion from global equity investments, their role in shareholder activism will increase. There are opinions suggesting that investor activism will lead to better corporate governance practices in firms, leading to an increase in firm share prices in the short term. The shareholder activism phenomenon seems to be on the agenda of all companies in the near future.

Article
Publication date: 1 April 2005

A.P. Chan, J. Fan and W.M. Yu

The paper discusses the prediction of shirt patterns for different body sizes using multiple linear regression (MLR).Design/methodology/approach – A total of 29 pattern parameters…

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Abstract

Purpose

The paper discusses the prediction of shirt patterns for different body sizes using multiple linear regression (MLR).Design/methodology/approach – A total of 29 pattern parameters from men's tailor‐made shirt and 34 body parameters obtained from a body scanner were designed for analysis. MLR has been applied to examine the underlying relationship between shirt pattern parameters and body measurements.Findings– Compared with formulae from the pattern expert, the prediction of shirt pattern from MLR has been improved.Originality/value – The findings could help to predict pattern size with different body sizes more accurately.

Details

International Journal of Clothing Science and Technology, vol. 17 no. 2
Type: Research Article
ISSN: 0955-6222

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Article
Publication date: 30 April 2019

Guanming He, Lu Bai and Helen Mengbing Ren

Whether financial analysts play an effective role as information intermediaries and monitors has triggered a wide spread of debate among academics and practitioners to date. The…

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Abstract

Purpose

Whether financial analysts play an effective role as information intermediaries and monitors has triggered a wide spread of debate among academics and practitioners to date. The purpose of this paper is to complement this debate by investigating the association between analyst coverage and firm-specific future stock price crash risk.

Design/methodology/approach

Regression analysis is based on a large sample of US public firms and the crash risk measure of Hutton et al. (2009). Potential endogeneity concerns are alleviated by restricting the sample period to the post-Regulation-FD period and conducting an analysis of the impact threshold for a confounding variable method per Larcker and Rusticus (2010).

Findings

Evidence reveals that a high level of analyst coverage is associated with lower future stock price crash risk. Furthermore, the negative association between analyst coverage and stock price crash risk is stronger for firms that have high financial opacity. Additionally, analyst forecast pessimism is negatively associated with future crash risk.

Research limitations/implications

Our research provides evidence in support for the view that financial analysts play an active information intermediary role in a way that increases information transparency of a firm and reduces its crash risk. Also, our study offers support for the view that analysts perform an effective monitoring role in a way that constraints management’s bad news hoarding activities and reduces future crash risk.

Practical implications

This study is of interest to investors who seek analyst reports for their investment decision making and for information providers who demand external financing. The findings of this study also have some other important implications for practitioners, given the economic and welfare consequences of stock price crashes.

Originality/value

This study offers support for the view that analysts serve positive roles as information intermediaries and monitors in the US stock market.

Details

Journal of Applied Accounting Research, vol. 20 no. 1
Type: Research Article
ISSN: 0967-5426

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Article
Publication date: 19 December 2017

Moufida Ben Saada

This paper aims to explore the extent to which the control quality impacts non performing loans (NPLs) of Tunisian listed banks by integrating the guidelines of Circular No…

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Abstract

Purpose

This paper aims to explore the extent to which the control quality impacts non performing loans (NPLs) of Tunisian listed banks by integrating the guidelines of Circular No. 2011-06 issued on 20 May 2011 by Tunisian Central Bank.

Design/methodology/approach

Regressions using panel data are applied on a sample of 11 listed banks during the period from 2010 to 2015.

Findings

The results show that the presence of foreign directors on the Tunisian bank board affects credit risk. These administrators, with knowledge, independence and technology transfer, exercise more control than institutional administrators or state representatives. The risk committee is more effective than the other committees (audit committee and credit committee) in reducing non-performing loans. The role played by this body is the most important.

Practical implications

Testing empirically the impact of control quality on NPL by integrating the guidelines of the Central Bank leads to a better evaluation of reforms’ application and effective measures to strengthen the banking governance practices.

Originality value

By exploring the application of the Central Bank’s guidelines for strengthening post-revolutionary banking governance practices, it becomes easy to assess the extent of the Circular No. 2011-06 by accounting practitioners, auditors and authority bodies to give the necessary recommendations for further reforms.

Details

Managerial Auditing Journal, vol. 33 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 23 November 2020

Swati Gupta, Sanjay Gupta, Manoj Mathew and Hanumantha Rao Sama

The primary objective of this study is to prioritize the main intentions behind investment in cryptocurrency, in spite of its volatile nature and no regulatory framework.

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Abstract

Purpose

The primary objective of this study is to prioritize the main intentions behind investment in cryptocurrency, in spite of its volatile nature and no regulatory framework.

Design/methodology/approach

This research paper has worked on collective constructs of the unified theory of acceptance and use of technology (UTAUT), the technology acceptance model (TAM) and social support theory with an added construct of financial literacy. A fuzzy analytical framework has been applied to prioritize the intentions of investors.

Findings

The result indicates that “Social Influence (SI)” is the most influencing factor, while “Effort Expectancy (EE)” is the least influencing factor considered by investors. The subdimensions ranked in the top priority by investors are as follows: “I want to invest in cryptocurrencies because I have a good level of financial knowledge (FL1)”; “The people who are important to me will think that I should use cryptocurrencies (SI2)”; “I have the necessary resources to use cryptocurrencies (FC2).” The least importance is given to “It will be easy for me to become an expert in the use of cryptocurrencies (EE3).”

Research limitations/implications

Few of the constructs of the UTAUT, the TAM and social support theory have been considered while prioritizing intentions. Different other intentions also prevail under different theories that need to be researched further.

Practical implications

Unlike previous studies, this research adds the archetype of social commerce, social support and utility theories to analyze and prioritize the behavioral perspective of using cryptocurrencies in digital transactions.

Originality/value

This paper fills the gap in the research study, along with assisting the regulators and cryptocurrency practitioners to widen their knowledge base and to recognize the prioritized intentions.

Details

Journal of Economic Studies, vol. 48 no. 8
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 9 October 2018

Walter Amedzro St-Hilaire and Patrick Boisselier

The purpose of this paper is to evaluate the need to incorporate the loan loss provisions (LLPs) and risk measures in order to examine the repercussions on advancing approach and…

Abstract

Purpose

The purpose of this paper is to evaluate the need to incorporate the loan loss provisions (LLPs) and risk measures in order to examine the repercussions on advancing approach and profitability.

Design/methodology/approach

The study investigates the effect of explanatory variables on profitability and advancing approach of the banks. The variables used in this study were determined, based on the review of relevant literature and established according to the availability of data for measurement purposes. Inspired by previous research, Hausman test is used in this study to determine whether a random or fixed effects generalized least squares model is best. The linear regression model is applied to strongly balanced panel data obtained from the ten commercial banks.

Findings

The findings demonstrate that Nigerian banking sector considers LLPs in terms of its decision making of advancing approach, while proper inclusion of credit, market and operational risk is more important for South Africa’s banks rather than the maintenance of provisions.

Originality/value

Moreover, the credit risk proves to be more needed factor of consideration for Nigerian rather for South African banks. This is an answer to the strong economy of South Africa as compared to Nigeria and more chances of default faced by Nigerian banks.

Article
Publication date: 3 March 2020

Shanshan Pan and Zhaohui Randall Xu

The purpose of this paper is to examine whether analysts’ cash flow forecasts improve the profitability of their stock recommendations and whether the positive effect of cash flow…

Abstract

Purpose

The purpose of this paper is to examine whether analysts’ cash flow forecasts improve the profitability of their stock recommendations and whether the positive effect of cash flow forecasts on analysts’ stock recommendation performance varies with firms’ earnings quality.

Design/methodology/approach

To test the authors’ predictions, they identify a sample of 161,673 stock recommendations with contemporaneous earnings forecasts and/or cash flow forecasts and regress market-adjusted stock returns on a binary variable that proxies for the issuance of cash flow forecasts while controlling for contemporaneous earnings forecast accuracy, earnings quality, analysts’ forecast experience and capability and certain firm characteristics. The authors’ test results are robust to alternative measures of recommendation profitability, earnings quality and the use of recommendation revisions instead of recommendation levels.

Findings

The authors find that when analysts issue cash flow forecasts concurrently with earnings forecasts, their stock recommendations lead to higher profitability than when they only issue earnings forecasts, after controlling for analysts’ forecast capability. Moreover, the authors document that the contemporaneous positive relationship between cash flow forecasts and recommendations profitability is stronger for firms with low earnings quality than for firms with high earnings quality. The findings suggest that cash flow forecasts issued by analysts in response to market demand likely play a more important role in firm valuation than cash flow forecasts issued by analysts mainly because of supply-side considerations.

Research limitations/implications

Future research could build on these findings to conduct further investigation on the alternative incentives for analysts’ forecasts of sales growth and long-term growth rates.

Practical implications

These findings may also help investors to better assess the quality of analysts’ research outputs and to identify superior stock recommendations.

Originality/value

This study provides insight into the role of cash flow forecasts in firm valuation and adds fresh evidence to the debate on the usefulness of cash flow forecasts. It extends the stream of research on the characteristics of analyst forecasts and increases our knowledge about the role of analysts in the financial market.

Details

International Journal of Accounting & Information Management, vol. 28 no. 2
Type: Research Article
ISSN: 1834-7649

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