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Article
Publication date: 2 October 2017

Ali Salman Saleh, Enver Halili, Rami Zeitun and Ruhul Salim

This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010…

Abstract

Purpose

This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010) before and during the global financial crisis periods.

Design/methodology/approach

The generalized method of moments (GMM) has been used to examine the relationship between family ownership and a firm’s performance during the financial crisis period, reflecting on the higher risk exposure associated with capital markets.

Findings

Applying firm-based measures of financial performance (ROA and ROE), the empirical results show that family firms with ownership concentration performed better than nonfamily firms with dispersed ownership structures. The results also show that ownership concentration has a positive and significant impact on family- and nonfamily-owned firms during the crisis period. In addition, financial leverage had a positive and significant effect on the performance of Australian family-owned firms during both periods. However, if the impact of the crisis by sector is taking into account, the financial leverage only becomes significant for the nonmining family firms during the pre-crisis period. The results also reveal that family businesses are risk-averse business organizations. These findings are consistent with the underlying economic theories.

Originality/value

This paper contributes to the debate whether the ownership structure affects firms’ financial performance such as ROE and ROA during the global financial crisis by investigating family and nonfamily firms listed on the Australian capital market. It also identifies several influential drivers of financial performance in both normal and crisis periods. Given the paucity of studies in the area of family business, the empirical results of this research provide useful information for researchers, practitioners and investors, who are operating in capital markets for family and nonfamily businesses.

Details

Studies in Economics and Finance, vol. 34 no. 4
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 4 July 2011

Kamrul Hassan and Ruhul Salim

The aim of this paper is to examine the relationship between relative population growth and purchasing power parity (PPP) exchange rate for a panel of 80 countries.

Abstract

Purpose

The aim of this paper is to examine the relationship between relative population growth and purchasing power parity (PPP) exchange rate for a panel of 80 countries.

Design/methodology/approach

Panel unit root and panel cointegration tests have been used to investigate the above relationship over the period of 1951‐2000.

Findings

The empirical results show that there is stable relationship between PPP exchange rate and relative population growth in these selected countries in the long run. The results also show that this long‐run relationship remains valid when the sample is divided on the basis of their stage of development.

Practical implications

These empirical findings suggest that population growth has an important role in exchange rate determination through PPP.

Originality/value

Thus, relative population growth could invalidate the PPP hypothesis in the long run. PPP is the main edifice of most of the monetary exchange rate models. Hence, the role of relative population growth should be taken into account in dealing with issues in international macroeconomics and renewed attention should be given in the theory of exchange rate determination in terms of relative population growth instead of relative price level.

Details

International Journal of Development Issues, vol. 10 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

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Article
Publication date: 12 January 2015

Kamrul Hassan and Ruhul Salim

The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic…

Abstract

Purpose

The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic Cooperation and Development (OECD) countries in the framework of environmental Kuznets curve (EKC).

Design/methodology/approach

Following Zagheni (2011) and using a relatively new cointegration technique and fully modified ordinary least square in a panel data over 1980-2009 the empirical results find evidence of inverted-U shaped EKC in these OECD countries.

Findings

The empirical results demonstrate that per capita CO2 emission (PCCO2) increases initially with economic growth; however, after reaching a per capita income level of US$ 24,657 it starts falling. With regard to ageing, the cointegrating vector indicates that a one percent increase in the share of aged population will reduce PCCO2 by 1.55 percent in the long run.

Originality/value

This is one of the first studies that examine the effect of population ageing on CO2 emission in a panel setting. The paper consider the cross-sectional dependence and use unit root test suitable for cross-sectional-dependent variables. The paper also examine short-run and long-run dynamics of EKC with panel cointegration and panel error correction methods.

Details

Journal of Economic Studies, vol. 42 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

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Article
Publication date: 25 January 2011

Shuddhasattwa Rafiq and Ruhul Salim

The purpose of this paper is to examine the short‐ and long‐run causal relationship between energy consumption and gross domestic product (GDP) of six emerging economies…

Abstract

Purpose

The purpose of this paper is to examine the short‐ and long‐run causal relationship between energy consumption and gross domestic product (GDP) of six emerging economies of Asia. The importance of identifying the direction of causality emanates from its relevance in national policy‐making issues regarding energy conservation.

Design/methodology/approach

This paper employs co‐integration and vector error correction modeling along with generalized impulse response functions and varience decomposition tests to check the robustness of the findings.

Findings

The empirical results show that there exists unidirectional short‐ and long‐run causality running from energy consumption to GDP for China, uni‐directional short‐run causality from output to energy consumption for India, whilst bi‐directional short‐run causality for Thailand. Neutrality between energy consumption and income is found for Indonesia, Malaysia, and Philippines. Both the generalized variance decompositions and impulse response functions confirm the direction of causality.

Research limitations/implications

These findings have important policy implications for the countries concerned. The results suggest that while India may directly initiate energy conservation measures, China and Thailand may opt for a balanced combination of alternative polices.

Originality/value

Many economists and social scientists are claiming that the increased demand for energy from developing countries like China and India is one of the major reasons for the energy price hikes in recent times. In this backdrop, it is justified to search causal relationship between energy consumption and national output (GDP) of some developing countries from Asia. Since the traditional bivariate approach suffers from omitted variable problems, this paper employs a trivariate demand side approach consisting of energy consumption, income and prices.

Details

International Journal of Emerging Markets, vol. 6 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

Content available
Article
Publication date: 18 January 2013

Abstract

Details

International Journal of Emerging Markets, vol. 8 no. 1
Type: Research Article
ISSN: 1746-8809

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