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1 – 10 of 118Tough Chinoda and Forget Mingiri Kapingura
This study examines the role of institutions and governance on the digital financial inclusion and economic growth nexus in Sub-Saharan Africa (SSA) from 2014 to 2020.
Abstract
Purpose
This study examines the role of institutions and governance on the digital financial inclusion and economic growth nexus in Sub-Saharan Africa (SSA) from 2014 to 2020.
Design/methodology/approach
This study adopts the generalised method of moments technique which controls for endogeneity. The authors employed four main variables namely, index of digital financial inclusion, gross domestic product per capita growth, institutions and governance.
Findings
The results suggest a significant positive effect of institutional quality and governance on the digital financial inclusion-economic growth nexus in SSA. Furthermore, the authors find that effect of trade and population growth on economic growth was significantly positive while inflation reduces economic growth in the region.
Research limitations/implications
This study also ignored the effect of digital financial inclusion on environmental quality. Future researches should focus on addressing these drawbacks and replicating the study in Africa as a whole and other developing countries across the world that are experiencing digital financial inclusion and economic growth challenges. The results from the study imply that a positive relationship between digital financial inclusion and economic growth. It is important to note that the study was carried out on the premise that institutions play a pivotal role in enhancing economic growth in SSA.
Practical implications
The results confirm the significance of policies that enhances institutional quality and governance which are other avenues the authorities can pursue to enhance economic growth in SSA.
Social implications
The paper documents the importance of institutions in boosting economic growth which impacts on social life rather than digital financial inclusion only.
Originality/value
The paper makes a contribution through analysing the role of institutions and governance on the digital financial inclusion-economic growth nexus rather than the traditional financial inclusion–economic growth nexus which is common to the majority of the available empirical studies.
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The purpose of this study is to explore the causal relationship between smart transportation technology innovation and green transportation efficiency.
Abstract
Purpose
The purpose of this study is to explore the causal relationship between smart transportation technology innovation and green transportation efficiency.
Design/methodology/approach
A comprehensive framework is used in this paper to assess the level of green transportation efficiency in China based on the instrumental variable – generalized method of moments model, followed by an examination of the impact of innovation in smart transportation technology on green transportation efficiency. Additionally, their non-linear relationship is explored, as are their important moderating and mediating effects.
Findings
The findings indicate that, first, the efficiency of green transportation is significantly enhanced by innovation in smart transportation technology, which means that investing in such technologies contributes to improving green transportation efficiency. Second, in areas where green transportation efficiency is initially low, smart transportation technology innovation exerts a particularly potent influence in driving green transportation efficiency, which underscores the pivotal role of such innovation in bolstering efficiency when it is lacking. Third, the relationship between smart transportation technology innovation and green transportation efficiency is moderated by information and communication technology, and the influence of smart transportation technology innovation on green transportation efficiency is realized through an increase in energy efficiency and carbon emissions efficiency.
Originality/value
Advancing green transportation is essential in establishing a low-carbon trajectory within the transportation sector.
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Filippo Marchesani and Francesca Masciarelli
This study aims to investigate the synergies between the economic environment and the smart living dimension embedded in the current smart city initiatives, focusing on the…
Abstract
Purpose
This study aims to investigate the synergies between the economic environment and the smart living dimension embedded in the current smart city initiatives, focusing on the localization of female entrepreneurship in contemporary cities. This interaction is under-investigated and controversial as it includes cities' practices enabling users and citizens to develop their potential and build their own lives, affecting entrepreneurial and economic outcomes. Building upon the perspective of the innovation ecosystems, this study focuses on the impact of smart living dimensions and R&D investments on the localization of female entrepreneurial activities.
Design/methodology/approach
The study uses a Generalized Method of Moments (GMM) and a panel dataset that considers 30 Italian smart city projects for 12 years to demonstrate the relationship between smart living practices in cities and the localization of female entrepreneurship. The complementary effect of public R&D investment is also included as a driver in the “smart” city transition.
Findings
The study found that the advancement of smart living practices in cities drives the localization of female entrepreneurship. The study highlights the empirical results, the interaction over the years and a current overview through choropleth maps. The public R&D investment also affects this relationship.
Practical implications
This study advances the theoretical discussion on (1) female entrepreneurial intentions, (2) smart city advancement (as a context) and (3) smart living dimension (as a driver) and offers valuable insight for governance and policymakers.
Social implications
This study offers empirical contributions to the preliminary academic debate on enterprise development and smart city trajectories at the intersection between human-based practices and female entrepreneurship.
Originality/value
This study offers empirical contributions to the preliminary academic debate on enterprise development and smart city trajectories at the intersection between human-based practices and female entrepreneurship. The findings provide valuable insights into the localization of female entrepreneurship in the context of smart cities.
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Christina Anderl and Guglielmo Maria Caporale
The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time.
Abstract
Purpose
The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time.
Design/methodology/approach
This paper assesses time variation in monetary policy rules by applying a time-varying parameter generalised methods of moments (TVP-GMM) framework.
Findings
Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada, Australia, New Zealand, Sweden) and five countries with alternative monetary regimes (the US, Japan, Denmark, the Euro Area, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more hawkish stance on inflation since the adoption of this regime and a greater response to both inflation and the output gap in most countries after the global financial crisis, which indicates a stronger reliance on monetary rules to stabilise the economy in recent years. It also appears that inflation targeting countries pay greater attention to the exchange rate pass-through channel when setting interest rates. Finally, monetary surprises do not seem to be an important determinant of the evolution over time of the Taylor rule parameters, which suggests a high degree of monetary policy transparency in the countries under examination.
Originality/value
It provides new evidence on changes over time in monetary policy rules.
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Haitian Wei, Rasidah Mohd-Rashid and Chai-Aun Ooi
As a consequence of the proposal of the Carbon Neutral and Carbon Peak policy in 2020, the Chinese Government is paying more attention to developing sustainability performance…
Abstract
Purpose
As a consequence of the proposal of the Carbon Neutral and Carbon Peak policy in 2020, the Chinese Government is paying more attention to developing sustainability performance. This study aims to assess the direct influence of country-level and corporate anti-corruption measures on environmental, social and governance (ESG) and its three dimensions, besides ascertaining the moderating role of firm size.
Design/methodology/approach
This study used the system generalized method of moments on a sample of 820 Chinese listed firms from 2012 to 2021.
Findings
The findings show that country-level and corporate corruption negatively affect ESG performance. Corporate anti-corruption measures have a more pronounced positive influence on the sustainability performance of small firms than large firms due to the limited resources, lower political position and weaker refusal power of small firms.
Research limitations/implications
The study has great implications for governments, corporate boards and ESG rating agencies. Government and corporate boards should mitigate the risks of country-level and corporate corruption to attain sustainable development goals. Rating agencies should add country-level and corporate corruption into the ESG evaluation system.
Originality/value
Some empirical results have proven that anti-corruption measures help reduce the emission of carbon dioxide, but few evidence shows how country-level and corporate corruption affect ESG and its three dimensions.
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Rejaul Karim, Md. Abdullah Al Mamun and Abu Sadeque Md. Kamruzzaman
The purpose of the present study is to determine how the cash conversion cycle (CCC) affects the financial performance of manufacturing companies in Bangladesh.
Abstract
Purpose
The purpose of the present study is to determine how the cash conversion cycle (CCC) affects the financial performance of manufacturing companies in Bangladesh.
Design/methodology/approach
The authors have collected data of 61 Dhaka Stock Exchange (DSE)-listed firms from the 10 distinct manufacturing industries of Bangladesh for 18 years, from 2003 to 2020. The data have been analyzed through the two-steps system generalized method of moment (GMM) regression model, using profitability indicators return on asset (ROA) and earnings per share (EPS) as dependent variables, while CCC has been used as the independent variable, whereas asset turnover (ATO) and financial leverage (LEV) were used as control variables to assess the relationship between the CCC and financial performance.
Findings
The findings indicated that CCC has a negative connection with profitability – ROA and EPS, with the connection between CCC and EPS being highly significant. This indicates that reducing the inventory conversion time, reducing the period of receivable collection and making payments to creditors with potential delays might help Bangladeshi manufacturing firms boost their profitability. In addition, the firm-specific characteristics, namely ATO and LEV significantly affect the firm's profitability.
Research limitations/implications
The research was based only on secondary sources and information was scarce. This research was conducted to determine the impact of the CCC on the corporate profitability of the manufacturing sector solely. There might be many other working capital variables that are still unexplored through this study.
Practical implications
The current study's findings are consistent with the traditional rule that minimizing the firm's days of the cash cycle may optimize financial performance. The results of this research have added to the existing body of knowledge on the topic of working capital management (WCM). Future research endeavors can be initiated for assessing the impact of the CCC on the firm's profitability in other industrial sectors or to identify other working capital variables that have much impact on corporate profitability.
Originality/value
This study is an original work of the researchers and adds value to the current literature in the domain of WCM and corporate profitability. The present study is the first one that covers firms in all the manufacturing industries in Bangladesh. The corporate managers, creditors, investors and other concerned stakeholders will be benefited from the findings of the present study.
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Ali Amin, Rizwan Ali, Ramiz Ur Rehman and Collins G. Ntim
This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this…
Abstract
Purpose
This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this relationship.
Design/methodology/approach
This study used 2,647 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2013–2021. To test the hypotheses, the authors used ordinary least squares regression and, to resolve the possible endogeneity problem, the authors used system generalized method of moments technique.
Findings
Drawing insights first from upper echelons theory, the authors report that CEOs with business, economics, finance and/or management educational background and female CEOs reduce firms’ risk-taking behaviour. Further, using insights from social and organizational identity theoretical perspectives, the results indicate that due to strong family affiliation and organizational identity, family owners exhibit risk aversion behaviour and moderate this relationship.
Originality/value
This study provides novel evidence of risk averse behaviour of CEOs with business, economics, finance and/or management educational background and female CEOs along with moderating impact of family ownership on this relationship in an emerging economy. Overall, the results extend empirical support for upper echelons and social identity theories in an emerging market context.
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Segun Thompson Bolarinwa and Munacinga Simatele
The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.
Abstract
Purpose
The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.
Design/methodology/approach
The study adopts dynamic panel threshold analysis, estimated within the framework of system Generalized Method of Moments (SGMM) to control for endogeneity and simultaneity. Data from 40 selected sub-Saharan African countries between 1991 and 2018 are used for the study.
Findings
Empirical results confirm the existence of an average threshold of 31% share of informality in GDP. Also, the paper finds that threshold of informality that addresses mild and severe poverty varies between 24.32 and 36.75%.
Research limitations/implications
The work is limited to African economies. Evidence from other emerging and developed economies is suggested for further research.
Practical implications
Overall, the empirical results indicate a threshold in the informality–poverty nexus. Therefore, an excessive informality level does not benefit the African growth process. Policymakers and governments are advised to operate within the bounds of the threshold of informality that reduces poverty and improve the African economic growth process.
Originality/value
The paper is the first study to provide empirical findings on the nonlinear and threshold argument in the informality–poverty nexus, as far as the authors know.
Oscar F. Briones, Segundo M. Camino-Mogro and Veronica J. Navas
The purpose of this research is to examine Micro-, small- and medium-sized enterprises (MSMEs). Which have limited access to financial resources from financial intermediaries…
Abstract
Purpose
The purpose of this research is to examine Micro-, small- and medium-sized enterprises (MSMEs). Which have limited access to financial resources from financial intermediaries. Thus, resource allocation is a primary concern for them.
Design/methodology/approach
This research studies the determinants of cash conversion cycle components and cash flow of MSMEs operating in Ecuador. This study examined a robust sample of 19,680 firms from 2000 to 2020, using the two-step generalized methods of moments to control for endogeneity and multicollinearity of independent variables issues.
Findings
The sample was divided into working capital intensive and fixed capital intensive firms. It was found that in every segment (micro-, small- and medium-sized), the majority of firms are working capital intensive and their average return is higher. This implies that small business owners assign the majority of their resources to current assets, which thus far have enabled them to achieve higher profitability.
Originality/value
Research investigated Ecuadorian MSMEs in a dollarized developing environment. Scrutinizing working capital intensive vs fixed capital intensive.
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Najul Laskar, Jagadish Prasad Sahu and Khalada Sultana Choudhury
The main purpose of the study is to investigate the impact of gender diversity both at the board and workforce level on firm performance (FP) in the Indian context.
Abstract
Purpose
The main purpose of the study is to investigate the impact of gender diversity both at the board and workforce level on firm performance (FP) in the Indian context.
Design/methodology/approach
This study is based on annual data of 200 companies listed on Bombay Stock Exchange (BSE) for the period 2012–2019. The authors have used the fixed-effects (FE) regression and system generalized method of moments to estimate the impact of board gender diversity and workforce gender diversity (WGD) on FP. The authors have used Blau's Index (BI) and Shannon's Index (SI) to measure gender diversity. Further, the authors have used return on assets and Tobin's Q (TBQ) to measure FP.
Findings
The authors' panel regression results suggest that board gender diversity and WGD have a positive and statistically significant impact on FP. The authors' findings are robust across different methods of estimation and alternative measures of FP.
Originality/value
This paper examines the impact of gender diversity both at the board and workforce level on FP of 200 companies listed on BSE. The authors' study contributes to the literature that is sparse in the Indian context and provides new insights on the impact of board and WGD on FP. The findings have useful policy implications. To achieve better performance, it is imperative to appreciate gender diversity at the governance and workforce level in a fast-growing economy like India.
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