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1 – 10 of 20Allam Hamdan, Bahaaeddin Alareeni, Rim El Khoury and Reem Khamis
Rim El Khoury, Nohade Nasrallah and Amina Toumi
The seepage of companies' capital accommodated by weak country-level institutions is inconducive to building sustainable businesses. Companies' performance on environmental…
Abstract
Purpose
The seepage of companies' capital accommodated by weak country-level institutions is inconducive to building sustainable businesses. Companies' performance on environmental, social and governance (ESG) issues is still a challenging question. This study aims to test the predictability of ESG on the performance of the health-care industry from a global perspective, while accounting for the country disclosure and director liability indices and performing robustness tests.
Design/methodology/approach
This study relies on panel data of 912 companies operating in 38 different countries for 2012–2020. This study controls for firm-level variables (leverage, size and loss), macroeconomic variables (COVID, gross domestic product and inflation) and institutional variables.
Findings
Findings indicate that countries with different levels of disclosure exhibit different patterns. Distinctly, the environmental pillar has a concave impact on return on assets, and the role of the disclosure index greatly manifests with the environmental pillar.
Practical implications
This study ponders the impact of country disclosure on sustainability practices from a global health-care perspective.
Originality/value
This paper is original, as it addresses the relationship between ESG performance and financial performance while accounting for the impact of institutional factors such as the business disclosure and director liability indices.
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Rim El Khoury, Nohade Nasrallah, Osama F. Atayah, Mohamed Mahjoub Dhiaf and Guilherme F. Frederico
This study investigates the impact of green supply chain management (GSCM) practices on environmental performance in firms operating in the discretionary sector in the G20…
Abstract
Purpose
This study investigates the impact of green supply chain management (GSCM) practices on environmental performance in firms operating in the discretionary sector in the G20 countries. The sample covers 749 firms for the period 2010–2020.
Design/methodology/approach
This study combines qualitative and quantitative data to examine the impact of the implementation of GSCM on accounting performance measured by the operating margin (OM) and return on assets (ROA). The authors also moderate the effects of Six Sigma and quality management (QM) and ISO 9000 and control for firm variables and COVID 19.
Findings
Using a panel data regression and structural equation modeling (SEM), results indicate that discretionary firms with internal solid GSCM practices combined with external environmental monitoring of suppliers are likely to outperform their peers in environmental issues. Using hierarchical regression, results indicate that both ISO 9000 and S&QM have moderating effects at some level of performance. Furthermore, environmental performance is positively correlated with accounting performance. This study contributes to the literature by addressing the impact of GSCM and the importance of reinforcing green and social regulations to protect the planet.
Originality/value
The paper is one of the first to measure GSCM triple components and account for COVID-19 in the context of discretionary companies and G20 countries. It highlights the impact of green initiatives to cope with major disruptions and decrease pollution and environmental disasters.
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Rim El Khoury, Nohade Nasrallah and Bahaaeddin Alareeni
As reporting environmental, social and governance (ESG) information is not yet mandatory in all countries, it is intriguing to understand ESG’s underlying driving mechanisms. This…
Abstract
Purpose
As reporting environmental, social and governance (ESG) information is not yet mandatory in all countries, it is intriguing to understand ESG’s underlying driving mechanisms. This study aims to investigate ESG determinants in the banking sector of the Middle East and North Africa countries.
Design/methodology/approach
The authors gather data for 38 listed banks for the period 2011–2019. The data used is threefold as follows: data related to ESG; firm-level; and country-level data. While ESG and firm’s level data are taken from Refinitiv, country-level data are extracted from the World Bank. Using panel regression, the authors test the effect of firm- and country-specific variables on the overall ESG score and its pillars.
Findings
Results indicate that banks’ ESG scores are negatively affected by performance and positively affected by size. The level of economic development exerts a negative impact on the environmental pillar while the social development exerts a positive impact on ESG and governance pillar. Corruption is the only country-level that gathers a homogenous effect on ESG scores. Finally, the three pillars follow heterogeneous patterns.
Originality/value
This study extends the scope of previous studies by introducing new country-level independent variables to contribute to the understanding of ESG antecedents.
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Muneer M. Alshater, Rim El Khoury and Bashar Almansour
This study aims to investigate the dynamics of return connectedness of the Standard & Poor’s (S&P) Gulf Cooperation Council (GCC) composite index with five regional equity…
Abstract
Purpose
This study aims to investigate the dynamics of return connectedness of the Standard & Poor’s (S&P) Gulf Cooperation Council (GCC) composite index with five regional equity indices, three global equity indices and other different asset classes during the COVID-19 pandemic period.
Design/methodology/approach
This study uses daily data spanning from January 2, 2018, to December 23, 2021. A subsample analysis is conducted to determine the role of uncertainty in modifying the connectedness structure during the ongoing pandemic period.
Findings
The results of this study show that the nature of connectedness is time-frequent, with clear evidence for a higher level of connectedness during stress periods, especially after the onset of the pandemic. The GCC index is found to be a net receiver of shocks to other assets, with an increase in magnitude during the COVID period.
Research limitations/implications
This study is limited by the use of only daily data, and future research could consider using higher frequency data.
Practical implications
The results of this study confirm the disturbing effects of the pandemic on the GCC index and its connectedness with other assets, which matters for policymakers and investors.
Originality/value
This study provides new insights into the dynamics of return connectedness of the GCC index with other assets during the COVID-19 pandemic period, which has not been previously explored.
Amina Toumi, Rim El Khoury, Etienne Harb and Nohade Nasrallah
This study models the effects of the COVID-19 pandemic on the performance of the private health-care sector in the Middle East and North Africa (MENA) countries. This paper aims…
Abstract
Purpose
This study models the effects of the COVID-19 pandemic on the performance of the private health-care sector in the Middle East and North Africa (MENA) countries. This paper aims to address the economic, societal and sustainability of the health-care sector.
Design/methodology/approach
Data were collected from Bloomberg and the sample consists of 534 firm-year observations from 55 firms listed over 2010–2020. The authors apply panel data and control for the country and governance effects.
Findings
The authors found heterogeneous results regarding the three sub-sectors. The pandemic has a negative effect on the accounting and market performances of the “Pharmaceutical companies” and an insignificant impact on “Healthcare Management and Facilities Services.” Moreover, the impact of COVID-19 on health-care firms’ performance depends on the country’s economic classification and the degree of regulatory and governance frameworks.
Research limitations/implications
Further studies may consider a larger sample and other regions. It is recommended to address the health-care sector's challenges to invest in new technologies such as “digital twin” and predictive and personalized medicine. It is worth testing model development theory and its effects on speeding up and designing models to ensure the proper functioning and developing mathematics to determine uncertainties in patient data and model predictions.
Originality/value
To the best of the authors’ knowledge, this paper is novel as it is unique in modeling the impact of COVID-19 on the health-care public companies in the MENA region. The findings pinpoint firms’ and countries’ heterogeneous impacts on financial and market performances.
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Etienne G. Harb, Nohade Nasrallah, Rim El Khoury and Khaled Hussainey
Lebanon has faced one of the most severe financial and economic crises since the end of 2019. The practices of the Lebanese banks are blamed for dangerously exposing economic…
Abstract
Purpose
Lebanon has faced one of the most severe financial and economic crises since the end of 2019. The practices of the Lebanese banks are blamed for dangerously exposing economic agents and precipitating the current financial collapse. This paper examines the patterns of manipulation of the 10 biggest banks before and after implementing the financial engineering mechanism.
Design/methodology/approach
The authors apply Benford law for the first and second positions of the reports of condition and income and four out of the six aspects of the CAMELS rating system (Capital Adequacy, Assets Quality, Management expertise, Earnings Strength, Liquidity and Sensitivity to the market) by excluding Management and Sensitivity. The deviations from BL frequencies are tested using Z-statistic and Chi-square tests.
Findings
Banks seem to have manipulated their Capital Adequacy, Liquidity and Assets Quality in the pre-financial engineering and considerably in the post-financial engineering periods. Fraudulent manipulations in the banking sector can distort depositors, shareholders and regulating authorities.
Research limitations/implications
This study has many implications for governmental authorities, commercial banks, depositors, businesses, accounting and auditing firms, and policymakers. The Lebanese government needs to implement corrective fiscal and monetary policies and apply amendments to the bank secrecy and capital control law. The central bank should revamp its organizational structure, improve its disclosure practices and significantly reduce its ties to the government and the political elite.
Practical implications
The study findings suggest that the central bank should revamp its organizational structure, improve its disclosure practices and significantly reduce its ties to the government and the political elite.
Originality/value
The study is the first to examine the patterns of fraudulent manipulation in the Lebanese banking industry using Benford Law (BL).
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Rim El Khoury, Walid Mensi, Muneer M. Alshater and Sanghoon Kang
This study examines the risk spillovers between Indonesian sectorial stocks (Energy, Basic Materials, Industrials, Consumer Cyclicals, Consumer Non-cyclical and Financials), the…
Abstract
Purpose
This study examines the risk spillovers between Indonesian sectorial stocks (Energy, Basic Materials, Industrials, Consumer Cyclicals, Consumer Non-cyclical and Financials), the aggregate index (IDX) and two commodities (gold and West Texas Intermediate Crude Oil [WTI] futures).
Design/methodology/approach
The study uses two methodologies: the TVP-VAR model of Antonakakis and Gabauer (2017) and the quantile connectedness approach of Ando et al. (2022). The data cover the period from October 04, 2010, to April 5, 2022.
Findings
The results show that the IDX, industrials and materials are net transmitters, while the financials, consumer noncyclical and energy sectors are the dominant shock receivers. Using the quantile connectedness approach, the role of each sector is heterogeneous and asymmetric, and the return spillover is stronger at lower and higher quantiles. Furthermore, the portfolio hedging results show that oil offers more diversification gains than gold, and hedging oil is more effective during the pandemic.
Practical implications
This study provides valuable insights for investors to diversify their portfolios and for policymakers to develop policies, regulations and risk management tools to promote stability in the Indonesian stock market. The results can inform the design of market regulations and the development of risk management tools to ensure the stability and resilience of the market.
Originality/value
This study is the first to examine the spillovers between commodities and Indonesian sectors, recognizing the presence of heterogeneity in the relationship under different market conditions. It provides important portfolio diversification insights for equity investors interested in the Indonesian stock market and policymakers.
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Etienne Harb, Rim El Khoury, Nadia Mansour and Rima Daou
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Practical implications
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.
Originality/value
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.
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Rim El Khoury, Etienne Harb and Nohade Nasrallah
This paper provides a state-of-the-art review of the financial development in the Middle East and Central Asia (MECA) and examines its impact on its economic growth.
Abstract
Purpose
This paper provides a state-of-the-art review of the financial development in the Middle East and Central Asia (MECA) and examines its impact on its economic growth.
Design/methodology/approach
The authors use a Panel Data Regression Analysis on a sample of 21 countries in MECA for the period 2008–2018.
Findings
Using the financial development indices and subindices retrieved from IMF, the study finds that the whole region has a below average index compared to other developing regions. However, this hides a great deal of variation across MECA countries. Surprisingly, financial development does not necessarily contribute to economic growth. It seems that some developing countries are still not predisposed to benefit from financial development due to several obstacles.
Practical implications
The authors recommend policymakers and regulators in MECA to promote financial stability and keep inflation in check so that economic agents can reap the fruits of financial development and foster economic growth. Policymakers should also stimulate competition in the financial sector, build skillful human capital, attract foreign direct investments, strengthen supervision and forensic audit and more importantly reinforce the independence of central banks.
Originality/value
The authors mitigate the shortcomings of single indicators as proxies for financial development by using the IMF Financial Development index that captures the depth, access and efficiency of both financial institutions and financial markets. The authors employ lower-middle-, upper-middle and high-income country groups to test the magnitude of income level on the relationship between financial development and economic growth.
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