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Open Access
Article
Publication date: 14 December 2021

Nassar S. Al-Nassar

The purpose of this study is to explore the role of gold as a hedge against inflation in the case of the United Arab Emirates.

Abstract

Purpose

The purpose of this study is to explore the role of gold as a hedge against inflation in the case of the United Arab Emirates.

Design/methodology/approach

The study utilizes monthly data on the local sharia-compliant spot gold contract traded on the Dubai Gold and Commodity Exchange (DGCX) and the corresponding consumer price index series over the period December 2015 to January 2021. The econometric approach employed by the study involves a unit root testing procedure that allows the timing of significant breaks to be estimated. A cointegration analysis is then conducted using a nonlinear autoregressive distributed lag (NARDL) model, taking into consideration the presence of structural breaks in addition to short- and long-run asymmetries.

Findings

The results reveal that consumer and gold prices are cointegrated, which implies that investing in gold can hedge against inflation in the long run. No sufficient evidence, nonetheless, is found in support of the ability of gold to serve as a hedge against inflation in the short run.

Originality/value

The findings have several important policy implications for policymakers and investors that are further discussed in the study.

Details

PSU Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 26 December 2023

Bahaudin Ghulam Mujtaba

This paper aims to provide a historical overview of AA, its purpose and benefits, the legal rationale for the SCOTUS ruling and what it means for colleges and the workplace…

Abstract

Purpose

This paper aims to provide a historical overview of AA, its purpose and benefits, the legal rationale for the SCOTUS ruling and what it means for colleges and the workplace regarding equitable opportunities for minority groups (which include women, Blacks, Hispanics, Asians and other low-income populations), as they aim for the “American dream”.

Design/methodology/approach

SCOTUS decision and rationale, along with literature.

Findings

The race-based affirmative action (AA) precedent was recently overturned by the Supreme Court of the United States (SCOTUS) in the case of Students for Fair Admission (SFFA), Inc. vs President and Fellows of Harvard College/University of North Carolina. SCOTUS ruled that race cannot be a specific basis for college admission. In other words, public and private colleges and universities will no longer be able to consider “race” as a factor in deciding which qualified applicants should be admitted to enhance the diversity of their student body.

Originality/value

This is an original analysis.

Details

Equality, Diversity and Inclusion: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 14 November 2023

Azza Temessek Behi, Norchene Ben Dahmane Mouelhi and Walid Chaouali

This study aims to explain customer reactions to a double deviation by examining the moderating role of prior trust in peer-to-peer (P2P) accommodation platforms on the…

Abstract

Purpose

This study aims to explain customer reactions to a double deviation by examining the moderating role of prior trust in peer-to-peer (P2P) accommodation platforms on the relationship between perceived betrayal and negative outcomes such as negative word-of-mouth (NWOM), vindictive complaining and patronage reduction.

Design/methodology/approach

An online survey was used to obtain a sample of 246 respondents familiar with P2P accommodation platforms. The model was tested using SmartPLS.

Findings

The results showed a positive correlation between perceived betrayal and NWOM, vindictive complaining and patronage reduction. Unexpectedly, prior trust had positive moderating effects. High levels of prior trust caused more negative customer reactions than low levels of prior trust.

Practical implications

The findings of this study caution firms about the potential risks to rely on the forgiveness and tolerance of highly trusted customers who may retaliate fiercely to double deviations.

Originality/value

This research unveils the prior trust paradox. Customers' prior trust magnified the negative impact of double-deviation experiences. This study contributes to the service-recovery literature by questioning the buffer effect of prior trust in the context of a double deviation.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Open Access
Article
Publication date: 18 August 2023

Lindokuhle Talent Zungu and Lorraine Greyling

This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.

577

Abstract

Purpose

This study aims to test the validity of the Rajan theory in South Africa and other selected emerging markets (Chile, Peru and Brazil) during the period 1975–2019.

Design/methodology/approach

In this study, the researchers used time-series data to estimate a Bayesian Vector Autoregression (BVAR) model with hierarchical priors. The BVAR technique has the advantage of being able to accommodate a wide cross-section of variables without running out of degrees of freedom. It is also able to deal with dense parameterization by imposing structure on model coefficients via prior information and optimal choice of the degree of formativeness.

Findings

The results for all countries except Peru confirmed the Rajan hypotheses, indicating that inequality contributes to high indebtedness, resulting in financial fragility. However, for Peru, this study finds it contradicts the theory. This study controlled for monetary policy shock and found the results differing country-specific.

Originality/value

The findings suggest that an escalating level of inequality leads to financial fragility, which implies that policymakers ought to be cautious of excessive inequality when endeavouring to contain the risk of financial fragility, by implementing sound structural reform policies that aim to attract investments consistent with job creation, development and growth in these countries. Policymakers should also be cautious when implementing policy tools (redistributive policies, a sound monetary policy), as they seem to increase the risk of excessive credit growth and financial fragility, and they need to treat income inequality as an important factor relevant to macroeconomic aggregates and financial fragility.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 16 November 2022

Chor Foon Tang and Salah Abosedra

The purpose of this study is to examine empirically the impacts of gender differences, telecommunication technology (ICT) and other determinants on private savings in 28 selected…

Abstract

Purpose

The purpose of this study is to examine empirically the impacts of gender differences, telecommunication technology (ICT) and other determinants on private savings in 28 selected Asia–Pacific countries.

Design/methodology/approach

This study employs the panel data from 2010 to 2017 across 28 selected Asia–Pacific countries. To enhance robustness and address the possibility of endogeneity issue, the present study utilises the fixed effect instrumental variable (IV) estimator to estimate the private savings model for Asia–Pacific region.

Findings

The present study finds that private savings is positively related to disposable income and ICT, but it is negatively associated with the degree of dependency. However, the association between interest rates and private savings are inconclusive as both positive substitution and negative income effects on private savings were observed. Moreover, the results also indicate that working females tend to save less than working males and that of the educated female, despite their impacts are varied across educational attainment levels.

Originality/value

This study provides a novel insight into private savings patterns by focussing upon the gender differences and ICT aspects. In stark contrast to previous literature on the issue, the authors find that working and educated females negatively impact private savings in Asia–Pacific economies due to income inequality and consumption habits. However, the results show that ICT accelerates private savings as it provides easy access to financial services and the requisite frameworks, such as e-business platforms, for generating passive income as well as provide the modalities for more cost-efficient shopping such as price and product comparison frames that yield costs savings which can then be potentially channelled into private savings.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 16 January 2024

Afees Adebare Salisu, Aliyu Akorede Rufai and Modestus Chidi Nsonwu

This study aims to construct alternative models to establish the dynamic relationship between exchange rates and housing affordability by estimating both the short- and long-run…

Abstract

Purpose

This study aims to construct alternative models to establish the dynamic relationship between exchange rates and housing affordability by estimating both the short- and long-run relationship between exchange rates and housing affordability for 18 OECD countries from 1975Q1 to 2022Q4. After that, this study demonstrates how this nexus behaves during high and low inflation regimes and turbulent times.

Design/methodology/approach

This study uses the panel autoregressive distributed lag technique to examine the nexus between housing affordability to capture the distinct characteristics of the sample countries and estimate various short- and long-run dynamics in the relationship between housing affordability and exchange rate.

Findings

Exchange rate appreciation improves housing affordability in the short run, whereas this connection tends to dissipate in the long run. Moreover, inflation can worsen housing affordability during turbulent times, such as the global financial crisis, in both the short and long run. Ignoring these changes in the relationship between exchange rates and housing affordability during turbulent times can lead to incorrect conclusions.

Originality/value

To the best of the authors’ knowledge, this study is the first to examine the association between exchange rates and housing affordability by demonstrating how these variables behave in high and low inflation regimes and turbulent times.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 15 March 2023

Imran Khan

BRICS (Brazil, Russia, India, China, and South Africa) a group of five emerging nations that are expected to lead the global economy by the year 2050. The growth potential of…

Abstract

Purpose

BRICS (Brazil, Russia, India, China, and South Africa) a group of five emerging nations that are expected to lead the global economy by the year 2050. The growth potential of these nations attracts investors from all over the world who are in search of maximizing the return on their investments and limiting the losses to the lowest possible level. The purpose of this research study is to determine whether or not Indian stock market investors can diversify their stock market portfolios into other BRICS economies.

Design/methodology/approach

A daily frequency of stock market closing data for the BRICS nations over a period of 2013–2021 has been considered and several econometric techniques have been applied. Starting with the Granger causality test for checking the direction of causality. The VAR technique is applied to find out whether the movement in the Indian stock market is influenced by its own past values or the past values of the other BRICS nations, and lastly, the DCC-MGARCH technique is applied to check the degree of integration or the volatility spillover from the Indian stock market to the stock markets of other BRICS nations.

Findings

The results of the study indicated that in both the short term and long term, stock market volatility is spilling over from the Indian stock market to the stock markets of other BRICS nations. Hence, the study suggests that BRICS nations cannot be a destination for portfolio diversification for Indian stock market investors.

Originality/value

The stock markets of emerging nations experience high volatility, which creates confusion for investors as to whether to invest or to abstain from portfolio diversification. At present, there is a gap in the existing literature to capture the stock market volatility of BRICS nations. This research study fills this research gap and confirms that BRICS nations cannot be a destination for portfolio diversification. Moreover, equity market experts, portfolio managers and researchers can all take advantage of this study.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 4 April 2023

Faisal Qamar and Shuaib Ahmed Soomro

Drawing on the symbolic interaction theory, this research examines leader–member exchange (LMX) and employee’s happiness at work (HAW) with mediation of self-esteem (SE) and…

Abstract

Purpose

Drawing on the symbolic interaction theory, this research examines leader–member exchange (LMX) and employee’s happiness at work (HAW) with mediation of self-esteem (SE) and moderation of organizational embeddedness (OE).

Design/methodology/approach

The study uses data collected from a sample of 246 employees working in fast moving consumer goods companies (FMCGs) and applied SmartPLS to analyze the proposed model.

Findings

Findings reveal that LMX predicts HAW. Whereas, the follower’s SE fully transmitted the effect of LMX on employee’s HAW. Moreover, OE moderated the relationship between LMX and HAW.

Practical implications

Leaders should consider quality LMX interactions with their employees in prevailing global crises. LMX can improve the relationship with team members and boost their SE resulting in HAW. Furthermore, organizations should promote such practices which may enhance their employees' OE for enhanced workplace happiness.

Originality/value

The study is among the very few works which apply symbolic interaction as an overarching framework to explain the employees' HAW.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 28 February 2023

Sami Ur Rahman, Faisal Faisal, Fariha Sami and Friedrich Schneider

The shadow economy (SE) has been a serious issue with varied dimensions in all countries that significantly affect economic growth. Therefore, all countries have made an effort to…

Abstract

Purpose

The shadow economy (SE) has been a serious issue with varied dimensions in all countries that significantly affect economic growth. Therefore, all countries have made an effort to tackle the SE by pursuing several measures. This study aims to investigate the impact of financial markets (stock and bond) in reducing the SE while considering the role of country risk (political, economic and financial) in N-11 countries.

Design/methodology/approach

The study employed first-generation methodological techniques, including a unit root test to identify stationarity in the series, a panel cointegration test and panel autoregressive distributive lag (ARDL) to estimate long-run and short-run relationships. Finally, the Granger causality is applied to determine the direction of the causal relationship.

Findings

The study explored that country risk factors are crucial in reducing the size of the SE. Moreover, the significant moderating role of country risk factors in the financial market development and SE nexus suggests that by controlling the country's risk, financial market development can negatively affect the SE.

Research limitations/implications

Due to the availability of data, the study used data, ranging from 1995 to 2015, because the tax burden data is available from 1995 while the maximum data for the SE is available till 2015, using Medina and Schneider's (2019) data estimates for the SE.

Originality/value

The previous studies have focused explicitly on the role of financial institutions' development in the SE. To the best of the author's knowledge, no previous study is attempted to investigate the role of financial markets (bonds and stock) in the size of the SE. Furthermore, previous studies have ignored the important role of country risk factors in the size of the SE. This study investigates the impact of country risk on the SE and the moderating role of country risk in the development of financial markets and the SE nexus.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 18 March 2024

Sean Gossel and Misheck Mutize

This study investigates (1) whether democratization drives sovereign credit ratings (SCR) changes (the “democratic advantage”) or whether SCR changes affect democratization, (2…

Abstract

Purpose

This study investigates (1) whether democratization drives sovereign credit ratings (SCR) changes (the “democratic advantage”) or whether SCR changes affect democratization, (2) whether the degree of democratization in sub-Saharan African (SSA) countries affects the associations and (3) whether the associations are significantly affected by resource dependence.

Design/methodology/approach

This study investigates the effects of SCR changes on democracy in 22 SSA countries over the period of 2000–2020 VEC Granger causality/block exogeneity Wald tests, and impulse responses and variance decomposition analyses with Cholesky ordering and Monte Carlo standard errors in a panel VECM framework.

Findings

The full sample impulse responses find that a SCR shock has a long-run detrimental effect on the democracy and political rights but only a short-run positive impact on civil liberties. Among the sub-samples, it is found that the extent of natural resource dependence does not affect the magnitude of SCR shocks on democratization mentioned above but it is found that a SCR shock affects long-run democracy in SSA countries that are relatively more democratic but is more likely to drive democratic deepening in less democratic SSA countries. The full sample variance decompositions further finds that the variance of SCR to a political rights shock outweighs the effects of all the macroeconomic factors, whereas in more diversified SSA countries, the variances of SCR are much greater for democracy and political rights shocks, which suggests that democratization and political rights in diversified SSA economies are severely affected by SCR changes. In the case of the high and low democracy sub-samples, it is found that the variance of SCR in the relatively higher democracy sub-sample is greater than in the low democracy sub-sample.

Social implications

These results have three implications for democratization in SSA. First, the effect of a SCR change is not a democratically agnostic and impacts political rights to a greater extent than civil liberties. Second, SCR changes have the potential to spark a negative cycle in SSA countries whereby a downgrade leads to a deterioration in socio-political stability coupled with increased financial economic constraints that in turn drive further downgrades and macroeconomic hardship. Finally, SCR changes are potentially detrimental for democracy in more democratic SSA countries but democratically supportive in less democratic SSA countries. Thus, SSA countries that are relatively politically sophisticated are more exposed to the effects of SCR changes, whereas less politically sophisticated SSA countries can proactively shape their SCRs by undertaking political reforms.

Originality/value

This study is the first to examine the associations between SCR and democracy in SSA. This is critical literature for the Africa’s scholarly work given that the debate on unfair rating actions and claims of subjective rating methods is ongoing.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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