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The purpose of the paper is to explore the long-run impact of board governance and bank performance on executive remuneration. More specifically, the study addresses two objectives. First, the authors investigate the long-run relationship between pay and performance hold for the Indian banking industry. Second, the authors explore the moderating role of the board in explaining the relationship between executive pay and performance.

The study uses multivariate panel co-integration approaches, i.e. fully modified and dynamic ordinary least square, to explain the co-integrating relationship between executive pay, governance and performance of Indian banks. The analysis is conducted for the period from 2005 to 2018.

The results of co-integration tests reveal a long-run relationship between executive pay, board governance and bank performance. The long-run estimates produce evidence in favour of the dynamic agency theory, suggesting that the implications of asymmetric information can be mitigated by associating the current executive pay with the bank performance in the previous periods. The finding of this study reveals that improvements in the board quality serve as a monitoring tool to constrain excessive pay and moderate the executives’ pay. Furthermore, the interaction of performance and board governance negatively impacts pay, supporting a substitution approach. It implies that setting optimal pay packages for executives necessitates enhanced and efficient board governance practices.

The study recommends significant policy implications for regulators and the board of directors that executive pay significantly responds to the bank’s performance and good board governance practices in the long run.

This paper provides novel evidence of long-run pay-performance-governance relation using a panel co-integration approach.

The assessment of interdependence between stock markets is an important aspect of international portfolio management. The purpose of this paper is to examine and highlight the diversification potential of South Asian stock markets vis-à-vis developed and European stock markets.

The developed stocks markets include USA and UK, and South Asian stock markets include India, Pakistan and Sri Lanka while DJ STOXX 600 index is used to represent the European stock markets. Monthly data are used to examine long-run relationship through ARDL bound testing approach and estimates are obtained using DLOS. Short-term dynamics are captured through vector error correction-based Granger causality.

South Asian stock markets are closely linked with each other; similarly, developed/European markets are interlinked. US stock market not only impacts European stock markets, it also Granger cause South Asian stock markets. The findings suggest increase in comovement of South Asian stock markets with the global markets after financial crises of 2007-2008.

The diversification benefits of South Asian stock markets for international investors are still evident due to their low relationship (in both long and short run) with developed/European stock markets.

Given the emergence of South Asian stock markets, new insight on their relationship with developed stock markets can provide interesting findings for international portfolio diversification. The South Asian equity markets are an important source of investment because of their immense growth and weak correlation with international markets.

This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.

The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.

The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.

This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.

The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.

This paper aims to know the dimension and scope that research on the district effect has had in the literature about industrial districts, as well as to shed some light on the connection between industrial districts and business results; or expressed differently, on how being located in an industrial district or not affects or might influence the performance of the firms located therein.

The purpose of this paper has been achieved through an exhaustive review of the empirical literature dedicated to the so-called district effect. The papers selected in the analysis were selected on the basis of the following criteria: (1) publications in scientific journals; (2) studies carried out in Spain and Italy; and (3) works published between 1994 and 2017.

The outcome of the literature review suggests, on the one hand, that the debate on the extent to which the territory influences the competitiveness of firms located in industrial districts still remains a topic of great interest. It can additionally be observed that most of the works dedicated to measuring the district effect have done so using three dimensions: (1) productivity/efficiency; (2) international competitiveness; and (3) innovation.

From a theoretical perspective, the findings of this paper make it possible to carry out an integrating proposal for the measurement of the district effect which revolves around three dimensions (productivity/efficiency; international competitiveness; and innovation).

This paper makes a twofold contribution to the literature: (i) it brings together the most important empirical contributions that measure the competitive advantages obtained by firms located in industrial districts through the district effect; and (ii) it theoretically and empirically establishes the essential dimensions of that effect.

The link between foreign exchange and stock markets has numerous practical business implications. If international diversification strategies are to be successful, these markets should display low levels of correlation. In addition, understanding the determinants of asset volatilities, as well as their international correlations, are important parameters for the day to day risk management of financial institutions, the risk management of firms operating internationally, and the pricing of contingent claims. This paper examines whether there is a link between exchange rate stability and stock market volatility and correlations. I find that the connection between exchange rates and stock market correlations and volatilities extends beyond periods of extreme crisis.

The purpose of this paper is to use body shape analysis and develop a 3D virtual body formation and deformation model that can accurately express size and shape.

In this paper, 1,882 sets of direct measurement data of Korean women in their 20s (19–29 years) were analyzed. These data sets were sourced from the sixth and seventh “Size Korea” anthropometric survey data. Through body shape analysis, the authors classified them into seven body types and selected their representative bodies. A 2D image based on the height, breadth, depth and length was first formed, and the representative virtual body was modeled using the polygon technique. The authors calculated the grading ratios for each body type according to the clothing sizing system, and modified the virtual body size type by morphing technique.

In order to accurately evaluate the fit in a virtual fitting system, it is necessary to study the body size and shape of the target age; this makes it possible to form virtual body reflecting the size and shape.

In this paper, the authors propose a new 3D virtual body formation method that is more accurate in shape and size compared to the present system. Through this, it will be possible to grasp the accurate simulation state in the virtual fitting system, and thereby evaluate the accurate fit.

We evaluate potential determinants of enrollment in an early retirement incentive program for non-tenure-track employees at a large university. Using administrative records on the eligible population of employees not covered by collective bargaining agreements, historical employee count and layoff data by budget units, and public information on unit budgets, we find dips in per-employee finances in a budget unit during the application year, and higher recent per employee layoffs were associated with increased probabilities of eligible employee program enrollment. Our results also suggest that, on average, employees whose salaries are lower than we would predict given their personal characteristics and job titles were more likely to enroll in the early retirement program. To the extent that employees’ compensation reflect their productivity, as it should under a pay system in which annual salary increases are based on merit, this finding suggests that adverse selection was not a problem with the program. That is, we find no evidence that on average the “most productive” employees took the incentive.

The purpose of this study is to explore whether a connection exists between business operational efficiency and environmental responsibility.

This research adopts the DEA method through a four‐step analysis to examine inter‐industry differences in terms of operational efficiency with environmental consideration. The sample comprises 32 Japanese firms from three different industries listed in the Tokyo Stock Exchange between 2001 and 2006.

The results indicate a positive correlation with statistical significance in terms of a firm's environmental conservation cost, net income and economic benefit of environmental conservation for the three Japanese industries. In addition, the relationship among a firm's environmental conservation cost, CO₂ emission reduction and total CO₂ emission are positively correlated but without significance. In particular, business operational efficiency integrating social responsibility for anti‐global warming initiatives ( = total CO₂ emission level) could be applied to distinguish differences in terms of operational efficiency among industries.

Japanese firms adopt a voluntary environmental disclosure; therefore this study is constrained by the availability of long‐term data.

This study enables environmentally conscious investors and fund managers to distinguish the operationally efficient industries when taking environmental performance into account.

The study is a novel attempt to analyze inter‐industry differences in terms of operational efficiency when considering environmental conservation through the DEA method using a four‐step analysis.

We examine the role of structural breaks in forecasting stock return volatility. We begin by testing for structural breaks in the unconditional variance of daily returns for the S&P 500 market index and ten sectoral stock indices for 9/12/1989–1/19/2006 using an iterative cumulative sum of squares procedure. We find evidence of multiple variance breaks in almost all of the return series, indicating that structural breaks are an empirically relevant feature of return volatility. We then undertake an out-of-sample forecasting exercise to analyze how instabilities in unconditional variance affect the forecasting performance of asymmetric volatility models, focusing on procedures that employ a variety of estimation window sizes designed to accommodate potential structural breaks. The exercise demonstrates that structural breaks present important challenges to forecasting stock return volatility. We find that averaging across volatility forecasts generated by individual forecasting models estimated using different window sizes performs well in many cases and appears to offer a useful approach to forecasting stock return volatility in the presence of structural breaks.

The purpose of this research is to make evident the inadequateness of concepts and language based on industrial knowledge still used in current practices by managers to cope with problems of the post‐industrial societies characterised by non‐linear process of emergence and acquisition of properties. The purpose is to allow management to use language and concepts more appropriate to deal with complexity, i.e. to represent, induce and orient processes of chance, and second, to outline a theory of practice guiding their efforts. The purpose is also to underline the urgency of a new general management education.

The methodology is based on contrasting concepts and their linguistic representations of the industrial age to the related post‐industrial ones. The approach is based on representing processes by using a more appropriate language, cultural aspect of science of complexity, able to deal with processes of emergence.

Suitable, appropriate and open linguistic representations allow effective management of complex social systems where processes of emergence, i.e. acquisition of properties, occur. Current educational process for managers should be rethought. Learning relates to design new suitable models.

One limit of this approach is given by the fact that it is not easy to implement, it cannot be considered a tool and imbalances are inevitable due to differences and inhomogeneous assumption of this new thinking.

It is a potential guide in helping practitioners in recognizing, inducing and managing complexity of processes and change.

The paper presents a new way to recognise and see reciprocal‐relational forces within a cultural‐social‐political context by using suitable translations of concepts and approaches introduced in science of complexity, such as in physics, mathematics, biology, and chemistry.