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The primary objective of this research is to provide evidence that there are two distinct layers of investor sentiments that can affect asset valuation models. The first is general market-wide sentiments, while the second is biased approaches toward specific assets.

To achieve the goal, the authors conducted a multi-step analysis of stock returns and constructed complex sentiment indices that reflect the optimism or pessimism of stock market participants. The authors used panel regression with fixed effects and a sample of the US stock market to improve the explanatory power of the three-factor models.

The analysis showed that both market-level and stock-level sentiments have significant contributions, although they are not equal. The impact of stock-level sentiments is more profound than market-level sentiments, suggesting that neglecting the stock-level sentiment proxies in asset valuation models may lead to severe deficiencies.

In contrast to previous studies, the authors propose that investor sentiments should be measured using a multi-level factor approach rather than a single-factor approach. The authors identified two distinct levels of investor sentiment: general market-wide sentiments and individual stock-specific sentiments.

This study investigates how the interrelated elements of organizational roles – activities, motives, resources and relationships – are mobilized to construct a code of conduct for the proxy advisory (PA) industry in Europe.

This qualitative study uses archival documents from three consecutive regulatory consultations and 16 interviews with key stakeholders. It analyzes how different stakeholder groups (i.e. PA firms, investors, issuers and the regulator) perceive and mobilize the elements of PA firms’ role to construct the accountability regime’s boundaries (accountability problem and action, and users and providers of accounts).

This study shows how PA firms, investors, issuers and the regulator refer to the perceived motives behind PA firms’ activities to construct an accountability problem. The regulator accepted the motives of an information intermediary for PA firms’ role and required PA firms to develop a corresponding accountability action: a code of conduct. PA firms involved in developing the code of conduct formalized who is accountable to whom by aligning this accepted motive with their activities, relationships, and resources into a common role.

The study highlights how aligning role elements to reflect PA firms’ common roles enables the construction of an accountability regime that stakeholders accept as a means of regulation. Analyzing the role elements offers insights into the development and functioning of accountability regimes that rely on self-regulation. We also highlight the role of smaller regional firms in helping shape transnational accountability regimes.

This study aims to examine the reaction of anchor investors (AIs) to pre-IPO earnings management (EM). The authors use the unique detailed bid data from the Indian anchor experiment. The authors also study the reputed AIs’ EM detection ability and pricing behavior in response to pre-IPO EM.

The authors use unique AI bid data for 169 Indian IPO firms. Utilizing the logistic regression and Tobit regression models with industry and year-fixed effects, the authors examine the relationship between various measures of AI participation and proxies of short-term and long-term discretionary accruals.

The authors document that pre-IPO EM is positively associated with the likelihood of anchor backing but negatively related to the likelihood of reputed anchor backing. The findings indicate that AIs are misled by pre-IPO EM, but reputed AIs are not. The authors also observe that reputed AIs, compared to the non-reputed, pay less than the upper band with increasing EM. The findings are robust to using various AI measures and EM proxies.

The findings have significant implications for regulators in the implementation of AI concept in non-anchor markets and better implementation of policies in existing anchor settings. Findings can also be relevant for non-institutional investors in the IPO domain.

This is one of the few studies on institutional investors' IPO bidding behavior in response to pre-IPO EM. However, this is the first study to analyze AIs' IPO bidding behavior in response to pre-IPO EM.

The purpose of this study is to examine the effects of financial development on the economic growth of jurisdictions with systemically important Islamic finance.

The authors use several estimation methods. The primary analysis is based on the LSDVC method using a sample of 23 countries covering the period of 2000–2019.

The findings suggest that the financial sector may not be a significant factor in determining economic growth, or that it may decrease it depending on the proxy used. These results are in line with recent studies and robust across different estimation specifications and methods used.

Finance practitioners may reconsider the way they conduct their daily activities as their impact on economic growth is fading away. Similarly, policymakers should consider the role that financial development plays in economic growth alongside other factors that may influence its impact. It may be necessary to examine the moderating effects of institutional development on the relationship between finance and growth and consider the channels through which financial development can contribute to economic growth. Additionally, it would be useful to study the impact of Islamic finance on economic growth using different data sources.

Although the topic has been explored using different data sets and focusing on different samples, it has not been explored considering the impact of Islamic finance development on economic growth. Given the global appeal of the Islamic finance industry, it is worth investigating its significance for economic growth.

This study investigates the impact of corporate social responsibility (CSR) on corporate innovation. We selected the listed nonfinancial firms of South Asian Economies. The sample of the study comprised a total of 426 listed manufacturing firms of South Asian Countries for period spans 10 years from 2012 to 2021. In this study, descriptive statistics, multicollinearity diagnostic tests, correlation analysis and two-step dynamic panel system generalized method of moments (GMM) were applied to analyze the data. CSR measured with three proxies' social indicators, environmental indicators, and CSR composite index of social and environmental indicators. However, corporate innovation is captured with number of citations received in a year and number of patents filed in the year. Overall, findings of the study using all measures of CSR shows that CSR significantly and positively related with corporate innovation. Our results find support for CSR-innovation view with all measures of CSR. The findings suggest that the current study is helpful for managers, regulators, policymakers, and researchers. For managers, the study helps them to make the CSR and innovation decision. The policymakers should take appropriate innovative decision while considering factors such as CSR. This study can also be extended by considering this study for developed and emerging economies sample.

This study aims to examine the relationship between the environment and tourism flows, as well as the economic variables of the 32 states of Mexico for the period 1999–2019 based on data availability. The related literature studying tourism and environmental impacts is scarce at a national level, with most of them being local case studies. Some international studies find that if the relationship exists, it is weak or nonexistent, using CO₂ as a proxy in most cases.

The present study uses panel data and cointegration panel methodologies, while also using geographic information systems to observe the distribution of variables at a state level between tourism and environmental variables.

The findings of the study are as follows: state gross domestic product, the inertia of environmental variables (i.e. volume of water treatment and solid waste), occupied rooms (proxy variable for tourism activity) and average temperature have an impact on the contemporary evolution of environmental variables; national and international tourist variables have no impact on the environment; the panels are integrated in such a way that there is a long-term equilibrium between states and some environmental care variables; and no conclusive evidence is found regarding the impact of tourism activity on the considered environmental variables.

The main limitations and areas of opportunity of the work refer to the amount of data available over time and the precision of the measurement of the variables. The availability, temporality and frequency of the data are also limitations of the research. An example of this is the nonexistence of CO₂ emissions at the state level. Additionally, studying other countries and regions for which there are limitations of data and applied studies is also a challenge.

The results are important for economies (in growth) and societies whose economic growth depends on tourism flows and have done little to reverse the damage that tourism has on the environment.

The models can contribute to study the relation between tourism and environmental variables and could be extended to regions, states and provinces for decision-making on actions to be taken for the present and future.

The originality of the research is innovative for the region: Mexico, Central and Latin America. There are no works that have studied these problems with this methodology and these variables. In terms of originality, the classic models of panel data and cointegration of panel data are useful and easily replicable for others to use for different countries. The results are relevant because there is apparently no relationship between tourism and some environmental variables in the short run, but there exists a weak and strong long-run relation between some of them.

本研究采用面板数据和协整面板模型方法, 同时利用地理信息系统(gis)观察州一级层面旅游和环境方面的变量分布。

本研究根据数据可用性, 研究了墨西哥32个州1999–2019年期间环境与旅游流量及经济变量之间的关系。在国家层面上研究旅游与环境影响的相关文献很少, 而且大多是地方的个案研究。一些国际研究发现, 即使有这种关系, 大多数案例中使用二氧化碳作为替代变量, 这种关系也是很弱或不存在。

i)国家国内生产总值, 环境变量的惯性(即水处理量和固体废物量), 占用的房间(旅游活动的代理变量)和平均温度对环境变量的现有演化有影响。ii)国内和国际旅游变量对环境没有影响。iii)面板数据以这样一种方式集成, 即国家和一些环境变量之间存在一种长期平衡。iv)关于旅游活动对所考虑的环境变量的影响没有确凿的证据。

这项工作的主要局限和机会领域是指随着时间的推移可获得的数据量和变量测量的精度。数据的可用性、时效性和频率也是本研究的局限性。这方面的一个例子是在州一级不存在二氧化碳排放。此外, 由于数据和应用研究的局限, 研究其他国家和地区也是一个挑战。

研究结果对经济增长依赖旅游业流量的经济体和社会具有重要意义, 这些经济体和社会对扭转旅游业对环境的破坏方面做得还不够。

这些模型有助于研究旅游业与环境变量之间的关系, 并可推广到地区、州和省, 以制定当前和未来的行动决策。

这项研究的原创性对该地区(墨西哥、中美洲和拉丁美洲)来说是具有创新性的。没有人用这种方法和这些变量研究过这些问题。就原创性而言, 面板数据和面板数据协整的经典模型是有用的且易于复制, 可供其他国家使用。 研究结果具有一定的相关性, 因为旅游业与部分环境变量在短期内不存在明显的相关性, 但在它们中的一些变量在长期内存在着或强或弱的相关性。

Se examina la relación entre medio ambiente y flujos turísticos, así como variables económicas de los 32 estados de México para el período 1999-2019 basado en la disponibilidad de datos. La literatura relacionada que estudia el turismo y los impactos ambientales es escasa a nivel nacional, siendo la mayoría de ellos estudios de casos locales. Estudios internacionales encuentran que, si la relación existe, es débil o inexistente, utilizando el CO2 como un indicador en la mayoría de los casos.

Se utilizaron metodologías de datos de panel y cointegración de panel, además sistemas de información geográfica para observar la distribución de variables a nivel estatal.

i) El Producto Interno Bruto Estatal, la inercia de las variables ambientales (es decir, volumen de tratamiento de agua y residuos sólidos), habitaciones ocupadas (proxy de la actividad turística) y temperatura promedio tienen un impacto en la evolución contemporánea de las variables ambientales, ii) las variables turísticas nacionales e internacionales no tienen un impacto en el medio ambiente, iii) los paneles están integrados de tal manera que existe un equilibrio a largo plazo entre turismo, crecimiento económico y algunas variables ambientales, y iv) no se encuentra evidencia concluyente con respecto al impacto de la actividad turística en las variables ambientales consideradas.

Las principales limitaciones y áreas de oportunidad del trabajo se refieren a la cantidad de datos disponibles en el tiempo y a la precisión de la medición de las variables. La disponibilidad, temporalidad y frecuencia de los datos también son limitaciones de la investigación. Un ejemplo de ello es la inexistencia de emisiones de CO2 a nivel estatal. Además, el estudio de otros países y regiones para los que existen limitaciones de datos y estudios aplicados también es un reto.

Los resultados son importantes para las economías (en crecimiento) y las sociedades cuyo crecimiento económico depende de los flujos turísticos y que han hecho poco por invertir los daños que el turismo produce en el medio ambiente.

Los modelos pueden contribuir a estudiar la relación entre el turismo y las variables medioambientales y podrían extenderse a regiones, estados y provincias para la toma de decisiones sobre las acciones a emprender para el presente y el futuro.

El artículo proporciona un análisis innovador y exploratorio hacia una perspectiva futura que agrega valor al turismo y la planificación para la sostenibilidad. La relación entre turismo y medio ambiente se ha estudiado durante varios años. La UNTWO ha abordado las consecuencias del turismo en el medio ambiente, particularmente, más basura, mayor consumo de agua, emisiones de CO2 y otros aspectos. Pocos trabajos estudian la relación entre estas variables.

La originalidad de la investigación es innovadora para la región: México, América Central y América Latina. No existen trabajos que hayan estudiado estos problemas con esta metodología y estas variables.

En términos de originalidad, los modelos clásicos de datos de panel y cointegración de datos de panel son útiles y fácilmente replicables para que otros los utilicen en diferentes países.

Los resultados son relevantes porque aparentemente no hay una relación entre el turismo y algunas variables ambientales a corto plazo, existe una relación débil y fuerte a largo plazo entre algunas de ellas.

This paper aims to investigate the impact of the revised Code of Corporate Governance 2017 (CCG-2017) clauses pertaining to board independence, mandatory inclusion of female directors, audit committee (AC) chair independence and directors’ expertise on earnings manipulation.

Using an unbalanced panel of 323 listed companies from 2015 to 2019, this study uses panel data regression models with a robust methodology called difference-in-differences to tackle the potential endogeneity.

This study’s findings show that, as compared to the pre-CCG-2017 period, board- and AC-related variables increased significantly in the post-CCG-2017 period. Furthermore, financial experts on the board and board independence have a negative effect on discretionary accruals (DAs), whereas female directors and DAs are positively related, as is real activity manipulation. The AC-related variables, such as AC independence, expertise in AC, and AC chair independence, are significantly different from the preperiod to the postperiod, whereas their relationship is not according to the hypotheses of the study. Moreover, these results are robust to additional analysis of the alternative proxies for female directorship and the endogeneity problem.

The findings of this study have implications for regulators and practitioners who are concerned with the functions of the board of directors (BOD). The findings of this research study show that earnings management (EM) may be reduced by independent and expert directors. However, board gender diversity is not reducing the EM. Therefore, the decision to appoint female directors to the board should be based on their business and professional attributes rather than simply filling quotas or blindly adhering to regulations. Moreover, the findings of this research may assist the regulator in encouraging listed firms to enhance board governance via independence, diversity and competency, which are useful for effective monitoring.

This study fills a gap in the literature by providing the first evidence of country-specific regulation (CCG-2017), concerning the BOD and AC-related clauses on EM in Pakistan, which is missing in the relevant literature general and in Pakistan in particular.

This study empirically examines the impact of climate change and agricultural research and development (R&D) as well as their interaction on agricultural productivity in 12 selected Asian and Pacific countries over the period of 1990–2018.

Various estimation methods for panel data, including Fixed Effects (FE), the Feasible Generalized Least Squares (FGLS) and two-step System Generalized Method of Moments (SGMM) were used.

Results show that both proxies of climate change – temperature and precipitation – have negative impacts on agricultural productivity. Notably, agricultural R&D investments not only increase agricultural productivity but also mitigate the detrimental impact of climate change proxied by temperature on agricultural productivity. Interestingly, climate change proxied by precipitation initially reduces agricultural productivity until a threshold of agricultural R&D beyond which precipitation increases agricultural productivity.

The findings imply useful policies to boost agricultural productivity by using R&D in the context of rising climate change in the vulnerable continent.

This study contributes to the literature in two ways. First, this study examines how climate change affects agricultural productivity in Asian and Pacific countries – those are most vulnerable to climate change. Second, this study assesses the role of R&D in improving agricultural productivity as well as its moderating effect in reducing the harmful impact of climate change on agricultural productivity.

The purpose of this paper is to investigate the relationship between CEOs' inside debt holdings (pension benefits and deferred compensation) and the operating leverage of the firms they manage, with the aim to examine whether CEO incentives play a role in corporate risk-taking.

The authors investigate the relation between CEO inside debt holdings (CIDH) (pension benefits and deferred compensation) and the operating leverage (DOL) of the firms they manage. Using a sample of 11,145 US firm-year observations over the period 2006–2017, the authors find a strong negative association between CIDH and DOL. Additional analyses reveal that the relationship between CIDH and DOL is more pronounced in firms with heightened agency issues, powerful CEOs and for CEOs with stronger professional networks. The results are robust to various sensitivity and endogeneity tests.

The authors find strong evidence confirming the expected negative association between CEO inside debt and DOL suggesting that firms with higher inside debt tend to maintain lower levels of operating leverage. These findings continue to hold with the alternative measure for the inside debt and operating leverage, and across a range of tests designed to rule out the possibility that the primary findings are in any way driven by potential endogeneity. In addition, the findings demonstrate that the presence of manager-shareholder agency conflicts can strengthen the inside debt–DOL relationship suggesting the strong role of inside debt in reducing firm risk.

Findings in this paper have implications for design of compensation structures so that corporate boards can establish incentives as a tool for risk management. A limitation of this study is that it is focused on one market, i.e. US listed companies, so the findings may not be applicable on a global scale.

To the best of the authors’ knowledge, this is the first study that links firm-level management of operating leverage through design of CEO inside debt incentives (two obvious choices for risk-reduction at the CEOs’ disposal include reducing financial risk through reduction of firm leverage and reducing operating risk through reduction of operating leverage). While use of firm leverage as an instrument of choice has been explored in the past, use of operating leverage to achieve risk reduction when CEO possess high inside holding, has received very little attention.

This study aims to explore the effects of intellectual capital (IC) on the occurrence of a modified audit opinion decision. The authors expect that high IC intensive firms are positively associated with the occurrence of a modified audit opinion since they are associated with an increased business risk and are more likely to exhibit issues concerning their financial health and stability.

Using a data sample of 423 listed firms from Greece, Italy, Spain and Portugal over a 10-year period, the authors estimated a logistic regression model to examine the effects of IC on the probability that a modified audit opinion is issued. The authors used organizational capital as a measure of a firm’s intensity on IC.

Empirical findings indicate a significant and positive relationship between the IC and the likelihood of a firm receiving a modified audit opinion decision.

This study expands prior literature by exploring the predictive ability of IC on the likelihood of a firm receiving a modified audit opinion decision.