Search results

The authors provide a comparative analysis between emerging and developed financial markets in terms of the effects of political risks on stock market returns and volatility. The authors also examine whether this impact depends on the nature of political risks. Therefore, this study aims to detect which financial markets are the most profitable and the riskiest in terms of political risks.

The authors investigate the impact of political risks on the excess stock market return and its conditional volatility using the generalized ARCH model for a sample of 46 developed and emerging markets over a period ranging from 1995 to 2019. In order to test how the nature of political risks affects equity excess returns and volatility differently in different markets, the authors employ (1) a composite political risk score, (2) the four subgroups of political risks as defined by Bekaert et al. (2005, 2014) and (3) the individual dimensions of political risks.

The findings indicate that the composite political risk is priced into both stock markets. The effect of political risks is positive for excess returns and negative for volatility. The authors show that the political risk leads to more volatility in developed markets. Nevertheless, the effect of individual components varies according to the market category.

The authors provide a framework for predicting market returns and volatility using changes in the political risk of the country. The findings help investors make investment decisions based on the political decisions of governments. In other words, investors should consider political uncertainty when determining their expected earnings.

The authors engage monthly panel data methodology in terms of the political risk stock market relationship. In addition, the authors consider recent and very long data covering the period 1995–2019. Furthermore, this study combines three various political risk measures, and both equity returns and volatility.

This paper aims to examine the impact of political uncertainty and instability caused by the 2011 Egyptian revolution on the corporate social responsibility (CSR) practices of Egyptian firms. The study provides empirical evidence to support the link between political instability, financial performance, stock market uncertainty and CSR in the post-revolution context of Egypt.

Data on CSR practices in Egypt were collected through a survey of Egyptian firms and content analysis of annual reports from publicly traded firms. The final survey sample consisted of 99 listed Egyptian companies. Structural equation modeling was performed to examine the relationship between the variables of this study.

The results of the study show that political instability is perceived to have a significant positive effect on the CSR practices of Egyptian firms. The results also reveal that the financial performance of firms is perceived not to be affected by the political instability after the 2011 Revolution as opposed to stock market uncertainty, which is perceived to be significantly affected. However, financial performance and stock market uncertainty have a significant positive influence on the CSR practices of Egyptian firms.

This paper capitalizes institutional theory to capture the complex interactions between organizations and their external institutional environments. Previous studies tackling CSR in unstable political environments in the African context focused on countries with prolonged periods of violent conflict and on more localized forms of conflicts. Yet, little is known about CSR during the occurrence of different types of political instabilities in other African countries.

This study aims to examine investors’ herd behaviour for various calendar events and size-based stock portfolios in Pakistan. The authors consider three calendar effects, crisis (COVID-19 and financial crisis 2018–19), announcement of political news and popular calendar anomalies (month-of-the-year and day-of-the-week), and investigate the impact of stock size on calendar effect in terms of investors’ herd behaviour.

The study uses non-linear specification to capture herd behaviour using firm-level daily data for 496 stocks listed on Pakistan Stock Exchange over the period 2001–2020.

The results indicate herd formation during periods of COVID-19, financial crisis, political news announcements and January (month-of-the-year). The authors also observe significant herding for the biggest and smallest size stocks over complete period. However, the authors find more pronounced herding in big stocks during January as compared to the more noticeable herding in small stocks over complete period. The findings suggest that herding in small stocks is not the main cause of January herding and hint on the prevalence of significant institutional herding during January.

The stock prices destabilize because of the mimicking behaviour during crisis periods, days of political announcements and month of January. Implementation of insider trading laws and transparent information environment can help in reducing these effects and increasing market efficiency.

The authors consider the recent COVID period in our analysis. In addition, we provide new evidence on the possible impact of stock size on calendar effect in terms of herd behaviour, which, to the best of the authors’ knowledge, has not yet been documented in literature.

Currently, our understandings of the dynamics behind the effects of politicization on values and on administrative decision-making remain largely muddled and far from complete. The richness of theoretical accounts, amassed over the past eight decades, has yielded only a limited number of empirical examinations. This failure to develop a coherent collection of empirical works can be for the most part attributed to the complexity associated with studying values, particularly to the lack of clear and testable theories and models. This article attempts to address this deficit and to add to our understandings of the association between values and administrative decision-making at the individual level by explicitly testing the Broker-Purist (BP) model (within a sample of public procurement specialists). It is found that the BP model fits the data well, which suggest the framework as a valid and useful perspective for conceptualizing the effects of environmental politicization on administrative decision-making in public procurement specifically, and in public administration in general.

By reviewing the overall concept of corporate political strategy (CPS), the purpose of this paper is to display a contemporary summary of issues of the diverse global CPSs. This study additionally aims to provide relevant corporate political behavioral concepts that surround a firm’s political actions when entering specific politico-economic markets as well as future work recommendations. This paper further provides a contemporary bibliographic analysis on CPS.

Through a systematic ISI Web of Knowledge^TM All Databases literature review on “CPS,” the research was refined in relation to articles from “all year time-span,” “social science,” and “business economic” areas. After relevant papers were retrieved, sorted, and analyzed, a final bibliographic analysis on CPS was performed using HistCite reference graph maker.

Results of this research provide a table with a conceptual summary of different CPS types, approaches to political strategy, participation levels, assessment of the political environments, research implications, as well as other related CPS factors.

There is still a lack of empirical research on how specific firm CPSs can help overcome the effect of foreignness within different host countries. This study provides an overview and list of CPSs that companies use when entering a particular politico-economic context as well as inner CPS research streams.

This contemporary conceptual taxonomy on CPS provides researchers as well as practitioners with insights into the global CPS evolution, in addition to a current picture of CPS within different contexts.

The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness.

Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM).

The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness.

Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously.

Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness.

The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

This study aims to examine the impact of transformational leadership on leadership effectiveness and the mediating effect of emotional skills in this relationship.

The study used quantitative methodology, collecting data from 350 respondents from the Lebanese context. The data were analysed using AMOS for structural equation modelling.

Results indicated that transformational leadership positively impacts leadership effectiveness, and this relationship is partially mediated by emotional skills. Specifically, adaptability, assertiveness and relationship management partially mediate the relationship of transformational leadership to leadership effectiveness. The findings suggest that leaders who possess emotional skills, especially those related to adaptability, assertiveness and relationship management, can be more effective in their roles by inspiring and motivating their followers through transformational leadership.

The study relies on self-reported data, which can introduce potential biases such as social desirability bias and subjectivity. The study uses a cross-sectional design, which hinders establishing causal relationships or examining changes over time.

This study highlights the significance of transformational leadership on leadership effectiveness and its potential benefits on emotional skills as a mediator in this relationship.

The research is unique and provides potential contribution to the Lebanese context.

This paper aims to investigate the effect of the political risk on Bitcoin return and volatility during the 2016 US pre-election and post-election periods.

A daily composite political risk index is calculated by using the principal component analysis and Google Trends. A quantile regression approach is adopted to assess the effect of the political risk index on Bitcoin return and volatility for both periods subject to market conditions.

Findings reveal that the political risk index tends to increase when moving from the pre-election period to the post-election one. This is mostly attributed to the new challenges faced by the new elected government. During the pre-election period, the quantiles regression shows that the political risk index negatively affects Bitcoin return when the market is bearish, whereas a positive impact on volatility is found in bearish and bullish markets. When the political situation becomes severer during the post-election period, the quantiles plots show that the increase of the political risk index leads to a significant increase of Bitcoin return, whereas Bitcoin volatility remains relatively stable. This means that Bitcoin can be adopted as a hedging tool when the political situation becomes severer.

Comparing to the existed studies in the field, this paper considers Google trends as a main source to assess the daily composite political risk index during the 2016 US presidential election.

The purpose of this paper is to determine the impact of political risk on the German solar energy industry. The authors analyze the period from 2006 to mid-2011, when the technological development of this sector was remarkable while the whole industry is depending on political support and subsidies.

The authors apply an EGARCH model assessing potential changes in conditional volatility response of solar industry stock returns following political risk events.

The results document major changes in political support of the solar industry drive capital market risk. Whereby favorable political news significantly decrease volatility response and unfavorable political news do not affect volatility response. Moreover, the authors find that the volatility response varies with the exposure to political risk. Companies with higher exposure to political risk show more significant volatility response.

Political risk affects the cost of capital of companies in this sector. Thus, managers are able to time equity measures in a way that they can determine periods when the investor's required return is low due to a reduced risk premium. The authors suggest risk reducing public policy facilitates investments in those industries and thus fosters the development and diffusion of immature technologies.

The paper helps policy makers, managers, and investors to assess the impact of political risk on the overall risk of the German solar energy sector and in a broader view of immature or high-tech industries that depend crucially on governmental support.