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This paper aims to explore whether environmental, social and governance (ESG) performance is positively associated with firm investment efficiency (IE) in emerging economies. It also examines whether board cultural diversity can moderate the ESG–IE relationship.

This paper uses a cross-country sample of listed firms located in seven emerging countries over the 2011–2019 period. The authors use a fixed effect panel regression to empirically test the hypotheses. The authors also use a lagged model and a Heckman’s (1979) two-stage procedure to mitigate potential endogeneity issues. In addition, a two-stage least squares regression analysis was done as an additional robustness check.

This study finds that firms with stronger ESG performance have a higher investment efficiency. Interestingly, this study finds that board cultural diversity negatively moderates the impact of ESG performance on IE for firms operating in settings prone to overinvestment. This result suggests that ESG performance plays a less important role in mitigating managers' tendencies to overinvest when corporate boards have more foreign directors. However, the authors do not find such evidence in firms prone to underinvestment. These findings hold after using an alternative measure of IE and controlling for endogeneity concerns.

This paper adds to the existing body of knowledge in three dimensions. First, to the best of the authors’ knowledge, this is the first cross-country study that investigates the linkage between ESG performance and corporate IE in the context of emerging countries. Second, the authors have enriched the prior literature by examining the moderating effect of board cultural diversity on the positive association between ESG performance and corporate IE. Finally, this study has important implications for policymakers and capital suppliers in emerging countries, which strive to facilitate the efficient allocation of scarce resources.

Motivated by recent financial liberalization policies in emerging markets, this study investigates whether bank competition and regulatory capital affect bank risk taking in an international banking context.

Bank competition is regressed, using GLS regression, on various measures of bank risk, to reflect regulatory, accounting and market-based risk-taking. The authors use a sample of publicly traded banks operating in Africa during 2004–2019.

Results show that higher level of bank competition increases bank risk taking and results in greater financial fragility in the absence of banking capital regulations. Furthermore, larger capital adequacy ratios control the risk-taking incentives of managers and guard banks against the risk of default. Further tests confirm the significance of market-based risk measures over accounting and regulatory measures.

Findings are relevant to bank managers and regulators in their sustained effort of finding an optimal balance between bank competition and financial stability. Increased competition should be balanced with capital regulations to curtail bank excessive risky behavior and derive the social benefits of greater competition in the market while sustaining overall economic growth.

This study provides novel evidence in an international context. First, it uses regulatory, accounting and market-based measures of bank risk taking to reflect regulators', management and market participants' emphasis. Another original contribution is the investigation of bank competition across African economies characterized by financial liberalization, stringent banking system and interesting socio-economic challenges.

The purpose of this study is to empirically examine how the voluntary formation of a specialised investment committee (IC) and IC characteristics affect financial distress risk (FDR) and whether such impact is influenced by the level of investment inefficiency.

The authors use a large sample of Gulf Cooperation Council (GCC) non-financial companies during 2006–2016. A principal component analysis is done to aggregate and derive a factor score for IC characteristics (i.e. independence, size and meeting) as a proxy for the effectiveness of IC. This study also uses three measurements of FDR to corroborate the findings and partitions sample firms into overinvesting and underinvesting companies to examine the potential impact of investment inefficiency on the IC–FDR nexus.

Using feasible generalised least square estimation method, the authors document that the likelihood of financial distress occurrence decreases for firms with separate ICs. The authors also find that firms with effective ICs enjoy lower FDR. In other words, the probability of financial distress minimises if the IC is large, meets frequently and has a high number of independent directors. However, the authors find neither any moderation nor any mediation effect of investment inefficiency for the impact of IC and IC attributes on FDR. The additional analysis indicates the expected benefits of an actively performing IC are amplified for firms with risk of both over- and underinvestment. These findings are robust to alternative measures of FDR and investment inefficiency, sub-sample analysis and endogeneity concerns.

This study, to the best of researchers’ knowledge, is the first to provide evidence in GCC firms’ perspective, suggesting that the existence of an effective IC is associated with a lower risk of financial distress, and to some extent, the economic benefits of IC are aggrandised for companies with a high probability of over- and underinvestment problems. These results are unique and contribute to a small but growing body of literature documenting the need for effective ICs and their economic consequences on investment efficiency in the FDR environment. The findings of this study carry valuable practical implications for regulatory bodies, policymakers, investors and other interested parties in the GCC region.

The credit crunch of 2008 and recent COVID-19 influences underscored the importance of liquidity and credit risk management in businesses and financial institutions. The purpose of this study is to investigate the impact of liquidity risk and credit risk management on accounting and market performances of banks operating in the Middle East and North Africa (MENA) region.

This study uses a panel data regression analysis on a sample of 51 listed commercial banks operating in 10 MENA countries during the period 2010–2018.

The results show that credit risk management does not affect the accounting performance of banks, while it has a non-linear, convex relationship with market performance. Surprisingly, liquidity risk management is not a significant driver for either performance measure in studied banks. However, when a bank combines credit risk management with liquidity risk management efforts, liquidity risk management actions return significant results on both performances, illustrated by an inverted U-shaped relationship. In addition, this study examines the joint impact of both risks on bank performance. This study reveals that accounting and market performances are differently affected by joint risk management efforts. Their impact depends on the combination of risk management ratios upon which banks choose to focus their efforts.

The findings help bankers and regulators further consider non-linearities and offer them new tools for managing the impact of credit and liquidity risk interactions towards achieving more financial stability.

These results contribute to traditional banking in offering bankers and regulators new tools for managing the impact of credit and liquidity risk interactions on bank performance.

This study aims to understand how quickly Japanese banks readjust their capital ratios (leverage, regulatory capital, tier-I capital and common equity) following an economic shock.

This study uses a two-step system GMM framework to test the study's hypotheses using the annual data of Japanese commercial and cooperative banks ranging from 2005 to 2020.

The findings show that banks adjust their leverage ratio faster than regulatory capital, tier-I capital and common equity ratios. In addition to that, the results reveal that the speed of capital adjustment is higher for commercial banks than for cooperative banks, suggesting higher economic costs and implications for commercial banks. Furthermore, it is worth noting that well-capitalised (under-capitalised) banks tend to prioritise the adjustments to common equity (leverage) before considering the adjustments to leverage (common equity). According to the results, high-liquid (low-liquid) banks alter their regulatory capital and tier-I capital ratios (leverage) more quickly (more slowly) than low-liquid (high-liquid) banks.

The findings suggest that when formulating and implementing new banking regulations, particularly in assessing and adjusting specific capital requirements under Pillar II of Basel III, management (including bankers, regulators and policymakers) should consider the heterogeneity observed in the rate of capital adjustment across various bank characteristics. Additionally, bank managers should also consider the speed of adjustment when determining optimal half-life and target capital structures.

To the author's knowledge, this study represents a pioneering investigation into the rate of adjustment of capital ratios (leverage, regulatory, tier-I and common equity) within Japan's banking sector. The study employs a comprehensive dataset encompassing both commercial and cooperative banks to facilitate this analysis. A notable contribution to the existing body of literature, this study offers a detailed analysis and emphasises the varying degrees of adjustment in capital ratios. The study also highlights the heterogeneous nature of the adjustment rate in these ratios by categorising the data into well-capitalised, under-capitalised, highly liquid and low-liquid banks.

Labour productivity in construction has fallen behind other industries in most of the world and has declined continuously for decades. Although several scholarly research projects have been conducted to salvage the prevalent low labour productivity in construction, contractors in the construction industry have continued to grapple with the devastating impact of low productivity. The purpose of this study is to determine key areas of focus necessary to promote productivity growth in construction.

Bibliometric and scientometric assessments were conducted to map the existing construction labour productivity (CLP) studies and establish key focus areas in the research domain. The keywords “Construction Productivity” OR “Construction Labour Productivity” OR “Construction Labor Productivity” OR “Construction Worker Productivity”.

Emerging trends in the CLP research field are reported. The study also determined the most productive authors and collaboration among authors, most productive journals, most active regions and publications with the highest impact in CLP research.

Documents published in the Scopus database were considered for analysis because of the wider coverage of the database. Journal and conference articles written in English language represent the inclusion criteria, while articles in press, review, book chapters, editorial, erratum, note, short survey and data paper were excluded from analysis. The study is also limited to documents published from 2012 to 2021.

The study brought to the awareness of the industry practitioners and other construction stakeholders, the key knowledge areas that are critical to promoting productivity growth in construction.

Except bibliometric analysis, previous research studies have used different approaches to investigate productivity in construction. The study presented future research directions through the emerging knowledge areas identified in the study.

Despite the significance of the construction industry to the nation's economic growth, there is empirical evidence that the sector is lagging behind other industries in terms of productivity growth. The need for improvements inspired the industry's stakeholders to consider using emerging technologies that support the enhancement. This research aims to report augmented reality applications essential for contractors' productivity improvement.

This study systematically reviewed academic journals. The selection of journal articles entailed searching Scopus and Web of Science databases. Relevant articles for reviews were identified and screened. Content analysis was used to classify key applications into six categories. The research results were limited to journal articles published between 2010 and 2021.

Augmented reality can improve construction productivity through its applications in assembly, training and education, monitoring and controlling, interdisciplinary function, health and safety and design information.

The research provides a direction for contractors on key augmented reality applications they can leverage to improve their organisations' productivity.

Islamic banks, despite being Shariah-compliant, have long been criticized for mimicking conventional banks in terms of their products and processes (Khan, 2010; Kuran, 1996). However, several Islamic banks do engage in philanthropy (zakat and charity) and risk-sharing financing (mudarabah and musharakah) instruments that better meet their raison d'etre, the fulfillment of Maqasid al-Shariah (Jatmiko et al., 2023). These contracts, however, are more susceptible to moral hazard and adverse selection problems than traditional debt-based finance (Azmat et al., 2015) and may impair Islamic bank stability. This paper explores the relationship between social finance and the stability of Islamic banks, and whether institutional quality moderates this relationship.

Using hand-collected annual data on social finance from 12 Islamic banks in four countries: Bangladesh, Bahrain, Indonesia and Malaysia, between 2006 and 2019, the authors employ the feasible generalized least squares and the panel-corrected standard errors methods for the analysis. The Stata version 16 software was used to analyze the data for the study.

The results indicate that mudarabah and musharakah financing raises the stability of Islamic banks. The authors also found that mudarabah and musharakah expose Islamic banks to more risk-taking behavior amidst the conditioning effect of institutional quality. On the other hand, charity induces the stability of Islamic banks, while zakat increases the risk-taking behavior of the banks. Further, when the quality of institutions was used as a moderator, both zakat and charity induced the stability of Islamic banks. The results were robust when liquidity risk was used and partially robust when portfolio risks were employed as measures of stability.

One concern regarding the application of Islamic social finance is that it might be a risky strategy for Islamic banks. In terms of research implications, the available evidence suggests that the use of Islamic social finance instruments is not detrimental to the stability of Islamic banks. Hence, regulators and policymakers should not penalize Islamic banks for using Islamic social finance instruments that help provide financial solutions to the underserved and unserved. In terms of research limitations, the study could not include other relevant Islamic social finance instruments such as waqf and qard al-hassan. Furthermore, data availability restricts the analysis to only 12 Islamic banks in fourcountries. As more Islamic banks in different countries venture into Islamic social finance, and the quantity and quality of information improve, future studies could explore the issue further.

The available evidence suggests that the use of Islamic social finance instruments does not worsen the stability of Islamic banks. Given the dominance of sale- and lease-based contracts in Islamic financing (Aggarwal and Yousef, 2000; Šeho et al., 2020), these findings should encourage other Islamic banks to provide financial solutions using other Shariah-compliant contracts including those based on risk-sharing and philanthropy. This would be a better reflection of the Islamic banks’ value proposition as it helps boost social activities that have a high impact on the activities of small businesses, contributing to the real economy and promoting well-being in society.

Previous studies mainly relied on mudarabah, mushakarah and zakat separately as they relate to the performance of Islamic banks. This study explores the impact of social finance which includes charity and zakat to examine their impact on Islamic banks’ stability. Further, the authors use institutional quality as a moderating variable in the relationship between Islamic social finance instruments and the stability of Islamic banks.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2022-0441

Sources highlight that insufficient skills of site supervisors considerably influence the progress of many construction projects in numerous countries. This study intends to identify the crucial supervisory competencies that influence the effectiveness of building project operations in the context of developing countries.

The crucial construction site supervisory competencies were qualitatively identified through a comprehensive literature survey and a series of expert interviews with the use of thematic analysis approaches. A questionnaire survey was then carried out among 154 building project firms to quantify the impacts of the competencies on the effectiveness of project tasks with the use of the relative importance index approach. Additionally, industry-consultative meetings were held using problem-focused communication strategies to scrutinise the necessary actions.

Overall, 22 cognitive elements and 24 skills/abilities of supervisors were determined as being critical according to their impact values, where the site supervisors cognitive domains in construction planning and construction materials were determined as the top-ranking competencies in the list, with their manual skills/abilities in labour management and labour performance evaluation. Accordingly, a group of key competency outcomes were produced for the considerations in developing new site supervisory training components. Relevant statistical analysis results and the industry consultative outcomes substantiated the validity and dependability of the overall results.

Although the study's focus was to site supervision procedures used in Sri Lankan building construction projects, the overall findings/outcomes might be put to the test in related situations in other emerging industries in other countries.

The study has constructed a base that shows how the significant site supervisory competencies influence the effectiveness of building construction operations, contributing to making a big difference in the methods of reskilling/upskilling in the industry associated with construction labour, supervision, efficiency management and productivity enhancement.

Prodigious teamwork is the basis for augmenting the level of productivity on construction projects. Globalisation of the construction market has meant that many practitioners work outside of their geographical spectrum; however, the multicultural dissimilarities of construction workforces within the project management team (and how these may impact upon project productivity performance) have been given scant academic attention. To bridge this knowledge gap, this paper aims to analyse the effects of a multicultural workforce on construction productivity.

The epistemological positioning of the research adopted mixed philosophies (consisting of both interpretivism and postpositivism) to undertake a deductive and cross-sectional survey to collate primary quantitative data collected via a closed-ended structured questionnaire. Census sampling and convenience sampling techniques were adopted to target Ghana’s construction workforce and their opinions of the phenomenon under investigation. Out of 96 questionnaires administered, 61 were retrieved. The data obtained were analysed by using mean score ranking, relative important index, one sample t-test and multiple regression. The reliability of the scale was checked by using Cronbach’s alpha coefficient.

From the t-test analysis, 11 variables sourced from extant literature, and the null hypothesis for the study was not rejected and all factors (except high cost of training and improper gender diversity management) were affirmed as negative effects of the multicultural workforce on construction productivity. Using multiple regression analysis, six of the independent variables were shown to impact upon productivity. The goodness of fit was verified by collinearity and residual analysis. The model’s validation revealed a relatively high predictive accuracy (R² = 0. 589), implying that the results could be generalized. In culmination, these findings suggest that the predictors can be used to accurately predict the effects of multicultural workforce on construction productivity performance.

The findings indicate that multicultural workforce/teams have a substantial effect on overall construction productivity in the construction sector; consequently, stakeholders must address this issue to enhance productivity across the sector.

The current study significantly contributes to our understanding of how multicultural workers/teams affect construction productivity in the construction business perspective and how to respond to the negative menace.