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1 – 10 of over 2000Judith Vergara Garavito and Sergio J. Chión
This paper aims to examine the relationship between cash holdings (CH) and expected equity return in a sample of firms of Pacific alliance countries.
Abstract
Purpose
This paper aims to examine the relationship between cash holdings (CH) and expected equity return in a sample of firms of Pacific alliance countries.
Design/methodology/approach
This paper constructed a panel of Pacific alliance firms for the period ranging from 2010 to 2016. This paper estimated different specification models using multivariate regression, and the statistical technique used to validate the hypothesis was panel data.
Findings
Results showed that there is a positive relationship between CH and expected equity return (r). The relationship between CH and systematic risk (ß) was estimated and this paper found a positive and statistically significant association. Findings suggest that corporate liquidity contains underlying information that contributes to explain the expected equity return, which, if ignored, can produce quite misleading results.
Originality/value
The results of this study have both academic and practical implications. First, the findings of the research contribute to a better understanding of the asset pricing models in emerging countries. On the other hand, the results obtained in this study can serve shareholders to make better estimations of the expected equity return, so investors can improve the risk-return trade-off due to the model allow a better estimation of the risk-return relation.
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Armando Di Meglio, Nicola Massarotti, Samuel Rolland and Perumal Nithiarasu
This study aims to analyse the non-linear losses of a porous media (stack) composed by parallel plates and inserted in a resonator tube in oscillatory flows by proposing numerical…
Abstract
Purpose
This study aims to analyse the non-linear losses of a porous media (stack) composed by parallel plates and inserted in a resonator tube in oscillatory flows by proposing numerical correlations between pressure gradient and velocity.
Design/methodology/approach
The numerical correlations origin from computational fluid dynamics simulations, conducted at the microscopic scale, in which three fluid channels representing the porous media are taken into account. More specifically, for a specific frequency and stack porosity, the oscillating pressure input is varied, and the velocity and the pressure-drop are post-processed in the frequency domain (Fast Fourier Transform analysis).
Findings
It emerges that the viscous component of pressure drop follows a quadratic trend with respect to velocity inside the stack, while the inertial component is linear also at high-velocity regimes. Furthermore, the non-linear coefficient b of the correlation ax + bx2 (related to the Forchheimer coefficient) is discovered to be dependent on frequency. The largest value of the b is found at low frequencies as the fluid particle displacement is comparable to the stack length. Furthermore, the lower the porosity the higher the Forchheimer term because the velocity gradients at the stack geometrical discontinuities are more pronounced.
Originality/value
The main novelty of this work is that, for the first time, non-linear losses of a parallel plate stack are investigated from a macroscopic point of view and summarised into a non-linear correlation, similar to the steady-state and well-known Darcy–Forchheimer law. The main difference is that it considers the frequency dependence of both Darcy and Forchheimer terms. The results can be used to enhance the analysis and design of thermoacoustic devices, which use the kind of stacks studied in the present work.
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To date, there are no studies in the literature that provide a comprehensive understanding of the interrelationships between the slenderness ratio and the main design criteria in…
Abstract
Purpose
To date, there are no studies in the literature that provide a comprehensive understanding of the interrelationships between the slenderness ratio and the main design criteria in supertall towers (=300 m). In this paper, this important issue was explored using detailed data collected from 75 cases.
Design/methodology/approach
This paper was carried out with a comprehensive literature review including the database of the Council on Tall Buildings and Urban Habitat(CTBUH) (CTBUH, 2022), peer-reviewed journals, MSc theses and PhD dissertations, conference proceedings, fact sheets, architectural and structural magazines and other Internet sources. In this study, the case study method was also used to gather and consolidate information about supertall towers to analyze the interrelationships. Cases were 75 supertall buildings in various countries [44 from Asia (37 from China), 16 from the Middle East (6 from Dubai, the United Arab Emirates), 11 from the United States of America and 3 from Russia, 1 from the UK].
Findings
The paper's findings highlighted as follows: (1) for buildings in the height range of 300–399 m, the slenderness ratio was usually between 7 and 7.9 and megatall towers were frequently built at a slenderness ratio of 10–15; (2) the median slenderness ratio of buildings in the 400–599 m height ranges was around 8.6; (3) a trend towards supertall slender buildings (=8) was observed in Asia, the Middle East and North America; (4) residential, office and mixed-use towers had a median slenderness ratio of over 7.5; (5) all building forms were utilized in the construction of slender towers (>8); (6) the medium slenderness ratio was around 8 for supertall buildings constructed with outriggered frame and tube systems; (7) especially concrete towers reached values pushing the limits of slenderness (>10) and (8) since the number of some supertall building groups (e.g. steel towers) was not sufficient, establishing a scientific relationship between aspect ratio and related design criteria was not possible.
Originality/value
To date, there are no studies in the literature that provide a comprehensive understanding of the interrelationships between the slenderness ratio and the main design criteria in supertall towers (=300 m). This important issue was explored using detailed data collected from 75 cases.
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Syed Haroon Rashid, Mohsin Sadaqat, Khalil Jebran and Zulfiqar Ali Memon
This study aims to investigate the market timing strategy in different market conditions (i.e. up, down, normal and in-financial-crisis situation) in the emerging market of…
Abstract
Purpose
This study aims to investigate the market timing strategy in different market conditions (i.e. up, down, normal and in-financial-crisis situation) in the emerging market of Pakistan over the period 1995 to 2015. Furthermore, this study tests the validity of the capital asset pricing model (CAPM) and Fama and French model.
Design/methodology/approach
This study considers monthly stock returns of 167 firms and constructs six different portfolios on the basis of different size and book to market ratio. The Treynor and Mazuy model is used to capture the market timing strategy.
Findings
The results indicate evidence of the market timing in normal market conditions. However, there is less supportive evidence of market timing in up-market, down-market and in-financial-crisis situations. This study also confirms the validity of the capital asset pricing model and Fama and French three-factor model with strong support of value premium and size premium in the stock market.
Practical implications
The findings of this study are helpful to companies in estimating the cost of issuing equity more accurately. The investors can use market timing to make their investment in a more better and profitable manner.
Originality/value
Unlike other previous studies, this study considers an extended period to test the validity of the capital asset pricing model and Fama and French model. In addition, this study is novel in testing the marketing timing of the firms in the context of emerging economy of Pakistan.
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Islamic banks have significantly different balance sheets from their conventional counterparts, leading to different implications in relation to liquidity creation compared to…
Abstract
Purpose
Islamic banks have significantly different balance sheets from their conventional counterparts, leading to different implications in relation to liquidity creation compared to conventional banks. This work, first, investigates the liquidity creation of conventional and Islamic banks in Middle Eastern and North African (MENA) countries between 2011 and 2016. It then tests the relationship between liquidity creation and performance of these banks.
Design/methodology/approach
It uses the data of 491 commercial banks across 18 MENA countries between 2011 and 2016. The analysis is based on panel data techniques.
Findings
The banks created US$18.596 trillion of liquidity, about 28.4% of total assets. Conventional banks created more liquidity compared with Islamic banks. Nevertheless, Islamic banks created more liquidity per asset compared with conventional banks. The regression analysis revealed a significant and negative correlation between liquidity creation and performance of the banks using return on average equity (ROAE) measure. However, no significant relationship is observed between liquidity creation and return on average assets (ROAA) of MENA banks. Moreover, there is no difference between Islamic and conventional banks in the relation between liquidity creation and bank performance.
Research limitations/implications
The data are limited to the period 2011-2016; the period of this study was selected based on yearly data availability from the data source. Accounting measures were used to study the effect of liquidity creation on bank profitability, and the market-based measures were excluded, as there is no uniform sources in these countries that can be used to collect market-based data.
Practical implications
Bank managers must reach a trade-off between the advantages and disadvantages of liquidity creation, as well as consider the negative relationship between liquidity creation and bank performance when making their decisions.
Originality/value
First, to the best of the authors’ knowledge, this work is the first to analyse the relationship between the liquidity creation and performance of conventional and Islamic banks in MENA. Second, this study uses a sample of Islamic and conventional banks in MENA that have detailed information on the Orbis Bank Focus dataset, which is the most comprehensive database of commercial banks in the MENA region.
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Qunhui Huang and Yu Jing
In the 40 years of reform and opening-up toward a more rational micro-economic structure, the proportion of output of state-owned enterprises shows a declining trend. Over the…
Abstract
Purpose
In the 40 years of reform and opening-up toward a more rational micro-economic structure, the proportion of output of state-owned enterprises shows a declining trend. Over the past decade, on one hand, the operational efficiency of state-owned enterprises has tended to be low as compared to other ownership enterprises; on the other hand, the asset–liability ratio of state-owned enterprises has risen against the trend, and still remains high under the recent national policy of “deleveraging.” The paper aims to discuss this issue.
Design/methodology/approach
This indicates that the inefficiency of state-owned enterprises that once hindered China’s economic development has not yet been fundamentally solved, and the task of deepening state-owned enterprises reform is still arduous.
Findings
In the process of establishing China’s modern economic system, there will be some “new state-owned enterprises” growing into world-class ones. This requires more effort in enhancing the capacity for independent innovation, improving the level of organizational control, expanding international market opportunities and fulfilling enterprise social responsibilities with high standards.
Originality/value
It is more appropriate for China to have a micro-economic structure in which public ownership predominates and diverse forms of ownership enjoy common prosperity and development.
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The purpose of this study is to seek to re-examine the threshold effects of public debt on economic growth in Africa.
Abstract
Purpose
The purpose of this study is to seek to re-examine the threshold effects of public debt on economic growth in Africa.
Design/methodology/approach
This study applies panel smooth transition regression approach advanced by González et al. (2017). The method allows for both heterogeneity as well as a smooth change of regression coefficients from one regime to another.
Findings
A debt threshold in the range of 62–66% is estimated for the whole sample. Low debt is found to be growth neutral but higher public debt is growth detrimental. For middle-income and resource-intensive countries, a debt threshold in the range of 58–63% is estimated. As part of robustness checks, a dynamic panel threshold model was also applied to deal with the endogeneity of debt, and a much higher debt threshold was estimated, at 74.3%. While low public debt is found to be either growth neutral or growth enhancing, high public debt is consistently detrimental to growth.
Research limitations/implications
The findings of this study show that there is no single debt threshold applicable to all African countries, and confirm that the debt threshold level is sensitive to modeling choices. While further analysis is still needed to suggest a policy, the findings of this study show that high debt is detrimental to growth.
Originality/value
The novelty of this study is twofold. Contrary to previous studies on Africa, this study applies a different estimation technique which allows for heterogeneity and a smooth change of regression coefficients from one regime to another. Another novelty distinct from the previous studies is that, for robustness checks, this study divides the sample into low- and middle-income countries, and into resource- and nonresource intensive countries, as debt experience can differ among country groups. Further, as part of robustness checks, another estimation method is also applied in which the threshold variable (debt) is allowed to be endogenous.
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