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Article
Publication date: 14 December 2021

Ghulame Rubbaniy, Ali Awais Khalid, Muhammad Faisal Rizwan and Shoaib Ali

The purpose of this study is to investigate safe-haven properties of environmental, social and governance (ESG) stocks in global and emerging ESG stock markets during the…

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Abstract

Purpose

The purpose of this study is to investigate safe-haven properties of environmental, social and governance (ESG) stocks in global and emerging ESG stock markets during the times of COVID-19 so that portfolio managers and equity market investors could decide to use ESG stocks in their portfolio hedging strategies during times of health and market crisis similar to COVID-19 pandemic.

Design/methodology/approach

The study uses a wavelet coherence framework on four major ESG stock indices from global and emerging stock markets, and two proxies of COVID-19 fear over the period from 5 February 2020 to 18 March 2021.

Findings

The results of the study show a positive co-movement of the global COVID-19 fear index (GFI) with ESG stock indices on the frequency band of 32 to 64 days, which confirms hedging and safe-haven properties of ESG stocks using the health fear proxy of COVID-19. However, the relationship between all indices and GFI is mixed and inconclusive on a frequency of 0–8 days. Further, the findings do not support the safe-haven characteristics of ESG indices using the market fear proxy (IDEMV index) of COVID-19. The robustness analysis using the CBOE VIX as a proxy of market fear supports that ESG indices do not possess safe-haven properties. The results of the study conclude that the safe-haven properties of ESG indices during the ongoing COVID-19 pandemic is contingent upon the proxy of COVID-19 fear.

Practical implications

The findings have important implications for the equity investors and assetty managers to improve their portfolio performance by including ESG stocks in their portfolio choice during the COVID-19 pandemic and similar health crisis. However, their investment decisions could be affected by the choice of COVID-19 proxy.

Originality/value

The authors believe in the originality of the paper due to following reasons. First, to the best of the knowledge, this is the first study investigating the safe-haven properties of ESG stocks. Second, the authors use both health fear (GFI) and market fear (IDEMV index) proxies of COVID-19 to compare whether safe-haven properties are characterized by health fear or market fear due to COVID-19. Finally, the authors use the wavelet coherency framework, which not only takes both time and frequency dimensions of the data into account but also remains unaffected by data stationarity and size issues.

Details

Studies in Economics and Finance, vol. 39 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 27 May 2022

Maqsood Ahmad, Qiang Wu, Muhammad Naveed and Shoaib Ali

This study aims to explore and clarify the mechanism by which cognitive heuristics influence strategic decision-making during the coronavirus disease 2019 (COVID-19…

Abstract

Purpose

This study aims to explore and clarify the mechanism by which cognitive heuristics influence strategic decision-making during the coronavirus disease 2019 (COVID-19) pandemic in an emerging economy.

Design/methodology/approach

Data collection was conducted through a survey completed by 213 top-level managers from firms located in the twin cities of Pakistan. A convenient, purposively sampling technique and snowball method were used for data collection. To examine the relationship between cognitive heuristics and strategic decision-making, hypotheses were tested by using correlation and regression analysis.

Findings

The article provides further insights into the relationship between cognitive heuristics and strategic decision-making during the COVID-19 pandemic. The results suggest that cognitive heuristics (under-confidence, self-attribution and disposition effect) have a markedly negative influence on the strategic decision-making during the COVID-19 pandemic in an emerging economy.

Practical implications

The article encourages strategic decision-makers to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of cognitive heuristics in strategic decision-making, which could be very useful for business actors such as managers and entire organizations. The findings of this study will help academicians, researchers and policymakers of emerging countries. Academicians can formulate new behavioural models that can depict the solutions to dealing with an uncertain situation like COVID-19. Policymakers and strategic decision-making teams can develop crisis management strategies based on concepts from behavioral strategy to better deal with similar circumstances in the future, such as COVID-19.

Originality/value

The paper’s novelty is that the authors have explored the mechanism by which cognitive heuristics influence strategic decision-making during the COVID-19 pandemic in an emerging economy. It adds to the literature in strategic management, explicitly probing the impact of cognitive heuristics on strategic decision-making; this field is in its initial stage, even in developed countries, while little work has been done in emerging countries.

Peer review

The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-10-2021-0636.

Details

International Journal of Social Economics, vol. 49 no. 10
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 17 February 2022

Shoaib Ali, Imran Yousaf and Zaghum Umar

This study aims to examine the hedge, diversifier and safe-haven properties of bonds against infectious disease-related equity market volatility (IDEMV), like COVID-19.

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Abstract

Purpose

This study aims to examine the hedge, diversifier and safe-haven properties of bonds against infectious disease-related equity market volatility (IDEMV), like COVID-19.

Design/methodology/approach

The authors apply wavelet coherence methodology on the daily data of IDEMV and bond market (US, UK, Japan, Switzerland, Canada, Australia, Sweden, China and Europe) indices from 1 January 2000 to 14 February 2021.

Findings

The results show no significant co-movement between these bond indices and IDEMV, thus confirming that they serve as a hedge against IDEMV. However, during the turbulent period like COVID-19, the authors find that the US, UK, Japan, Switzerland, Canada, Australia, Sweden, China and European bond markets act as safe-haven against IDEMV, whereas the UK, US, Japan and Canadian bond markets demonstrate an in-phase and positive co-movement with IDEMV during COVID-19, suggesting their role as a diversifier.

Research limitations/implications

The study findings are important for investors and portfolio managers regarding risk management, portfolio diversification and investment strategies.

Originality/value

The authors contribute to the fast growing body of work on the financial impacts of COVID-19 as well as to ongoing consideration of whether a bond is a safe-haven investment.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Open Access
Article
Publication date: 20 August 2021

Imran Yousaf, Hasan Hanif, Shoaib Ali and Syed Moudud-Ul-Huq

The authors aim to examine the mean and volatility linkages between the gold market and the Latin American equity markets in the entire sample period and two crises…

Abstract

Purpose

The authors aim to examine the mean and volatility linkages between the gold market and the Latin American equity markets in the entire sample period and two crises periods, namely the US financial crisis and the Chinese crash.

Design/methodology/approach

To examine the return and volatility spillovers, the authors employ VAR-BEKK-GARCH model on the daily data of four emerging Latin American equity markets which include Peru, Chile, Brazil and Mexico, which ranges from January 2000 to June 2018.

Findings

The results show that the return transmissions vary across the stock markets and the crises periods. The volatility transmission is found to be bidirectional between the gold and stock markets of Brazil and Chile during the US financial crisis. Furthermore, the volatility spillover is unidirectional from Brazil to gold and from gold to Peru stock market during the Chinese crash. We also calculate the optimal weights hedge ratios for gold and stock portfolio. The result suggests that portfolio managers need to increase the weight of gold for the equity portfolios of Peru and Mexico during the US financial crisis. Furthermore, during the Chinese crisis, investors may raise the investment in gold for the equity portfolios of Brazil and Chile. Finally, the cheapest hedging strategy is CHIL/GOLD during the US financial crisis, whereas MEXI/GOLD during the Chinese crash.

Practical implications

These findings have useful insights for portfolio diversification, asset pricing and risk management.

Originality/value

The study's outcome provides policymakers and investors with in-depth insights regarding hedging, risk management and portfolio management.

Details

Journal of Economics, Finance and Administrative Science, vol. 26 no. 52
Type: Research Article
ISSN: 2218-0648

Keywords

Article
Publication date: 31 August 2021

Faisal Abbas and Shoaib Ali

This study aims to analyze the moderating role of capital on the relationship between loan growth and credit risk for Islamic banks in the post-crisis era.

Abstract

Purpose

This study aims to analyze the moderating role of capital on the relationship between loan growth and credit risk for Islamic banks in the post-crisis era.

Design/methodology/approach

The study used annual data of 217 Islamic banks from 38 countries and ranges from 2010–2019. The study applies a two-step system GMM method for hypotheses testing about the moderating role of bank capital on the relationship between loan growth and credit risk in Islamic banks.

Findings

The findings showed that an increase in loan growth increases the credit risk of Islamic banks, as evidenced by loan loss provisions, loan loss reserves and nonperforming loans. The results indicate that capital positively moderates the relationship between loan growth and credit risk in Islamic banking. The positive relationship between bank capital and risk-taking is in line with the “regulatory hypothesis” in banking. The findings predict lower impacts of capital on the relationship between loan growth and credit risk in the South Asian region than MENA, Africa, South, East and Central Asia regions. However, the impact of capital is higher for larger Islamic banks than medium and smaller ones.

Practical implications

The findings of the study add value to the current debate on the role of bank capital to reduce risk-taking in Islamic banks. The study's findings have implications for policymakers, managers, especially in Islamic banking, for improving the Islamic financial system by managing the role of capital, loan growth and credit risk.

Originality/value

This is the first study to explore the moderating role of bank capital on the relationship between loan growth and credit risk in the post-crisis era, especially in Islamic banking. This is the first study in the Islamic banking context, which is providing empirical evidence for the impact of loan growth on the back looking and forward-looking proxies of credit risk under the moderating role of bank capitalization in the post-crisis era. This is the first study, which providing findings based on regions and size to compare the differences in Islamic banks for the impact of loan growth on credit risk under the moderating role of capitalization.

Details

Kybernetes, vol. 51 no. 12
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 July 2021

Faisal Abbas, Shoaib Ali and Maqsood Ahmad

This research explores the role of economic growth to influence the inter-relationship between capital, liquidity and profitability of commercial banks in selected asian…

Abstract

Purpose

This research explores the role of economic growth to influence the inter-relationship between capital, liquidity and profitability of commercial banks in selected asian emerging economies.

Design/methodology/approach

To achieve the research purpose, an empirical model was constructed to examine the role of economic growth in the inter-relationship between banks' capital, liquidity and profitability. The empirical model was tested through two stage lease square (2SLS) regression analysis using annual data of Asian commercial banks ranges from 2011 to 2019.

Findings

The findings indicate that bank capital and liquidity are interdependent and determined simultaneously. The outcome demonstrates that the strength of the inter-relationship between banks' capital, liquidity, and profitability improves when economic growth is taken into account in the analysis. The results report that market funding, loan ratio, credit risk, bank size and bank efficiency are significant indicators to influence commercial banks' liquidity, profitability and capital in Asian emerging economies. The findings are heterogeneous across large, medium and small-sized banks in emerging economies of Asia.

Practical implications

The results highlight that the model provides robust results with respect to sign and significance. However, the coefficient remains underestimated without incorporating economic growth, which has important implications for decision-makers and bankers.

Originality/value

To the best of authors’ knowledge, this is the first study that examines the role of economic growth to influence the inter-relationship between capital, liquidity and bank profitability in the emerging economies of Asia.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 28 April 2020

Imran Yousaf and Shoaib Ali

This study aims to empirically examine the relationship between real estate and stock market of Pakistan.

Abstract

Purpose

This study aims to empirically examine the relationship between real estate and stock market of Pakistan.

Design/methodology/approach

The data of two real estate indices (house price index and plot price index) are taken for the Pakistan and its four big cities, i.e. Lahore, Karachi, Rawalpindi and Islamabad. It estimates the integration between series by applying the Johansen cointegration test. Moreover, the vector error correction model is applied to examine the short and long-run causal relationships between series.

Findings

The findings show that the real estate markets are cointegrated with the stock market. They imply that the real estate and stock markets are good substitutes in investment allocation, but investors cannot get the benefit of diversification by making a portfolio of real estate and stock markets in Pakistan. Moreover, the long-run causality is observed from majority house markets to the stock market, whereas short-run causality is evident from majority plot markets to the stock market. Hence, the real estate market leads the stock market in the short run and long run, suggesting the credit-price effect in the majority of real estate markets in Pakistan. These causality results are helpful for investors in the forecasting of real estate and stock markets in Pakistan.

Research limitations/implications

The limitation of the study is the lower number of observations (107), because house and land prices are only available in monthly frequency from January 2011 in Pakistan.

Originality/value

To the best of the authors’ knowledge, no researcher has investigated the real estate and stock market nexus in Pakistan. Therefore, this study focuses on examining the relationship between the real estate and stock market of Pakistan. The link between real estate and stock markets will provide useful insights to the portfolio managers, real estate companies, property agents, stockbrokers and investors.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 7 May 2020

Muhammad Naveed, Shoaib Ali, Kamran Iqbal and Muhammad Khalid Sohail

The purpose of this study is to examine the role of financial and nonfinancial information in determining individual investor's investment decisions by analyzing the…

1389

Abstract

Purpose

The purpose of this study is to examine the role of financial and nonfinancial information in determining individual investor's investment decisions by analyzing the mediating effect of corporate reputation.

Design/methodology/approach

The approach of this study is deductive; therefore, the quantitative strategy is used for data collection. Primary data are collected from individual investors actively involved in stock trading at Pakistan Stock Exchange (PSX). Structural equation modeling is used to assess structural relationships.

Findings

The key findings of this study posit that financial and nonfinancial information positively influence an individual investor's investment decision. This study also provides empirical evidence confirming the mediating role of corporate reputation. Categorically, the findings indicate that financial and nonfinancial information remain significant to build perceived corporate reputation and influence investor's investment decisions.

Practical implications

he proposed model presents novel insight into the individual investor's investment decision in the context of Pakistan. The findings of this study remain robust for firms listed on the stock exchange and individual investors involved in stock trading. The results of this study are substantial to individual investor's and broker for making informed financial choices. Moreover, the firms listed on the PSX can use the findings to establish improved corporate reputation through reporting detailed financial and nonfinancial information.

Originality/value

Studies based on subjective measures in finance are lacking. This study contributes to the existing literature of behavioral finance by analyzing variations in investor's investment decisions explained by informational factors. The proposed model testifies the mediating role of corporate reputation in guiding investor's investment decisions, which has been overlooked by past studies. Therefore, this study seeks to fill this gap in the context of the PSX.

Details

South Asian Journal of Business Studies, vol. 9 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 30 June 2022

Jabir Ali and Waseem Khan

This paper aims at analyzing the determinants of access to relief under social assistance programs among rural households during COVID-19 outbreaks in India.

Abstract

Purpose

This paper aims at analyzing the determinants of access to relief under social assistance programs among rural households during COVID-19 outbreaks in India.

Design/methodology/approach

The study is based on the data of COVID-19-Related Shocks Survey, which covered 5,200 rural households across 6 states of India namely Andhra Pradesh, Bihar, Jharkhand, Madhya Pradesh Rajasthan, and Uttar Pradesh. The access to relief has been assessed as relief-in kind (RIK) as a free special package of wheat, rice, and pulses, supplied through the public distribution system; and direct benefit transfer (DBT) in cash under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana and the Pradhan Mantri Jan-Dhan Yojana (PMJDY). The association between demographic profiles of rural households and access to relief has been analyzed using the chi-square test. Further, marginal effects have been estimated to assess the determinants of rural households' access to relief.

Findings

The results show a significant association between types of relief vis-à-vis demographic profiles of the rural households. A significant difference in access to relief among rural households is also evident across the states. Further, the analysis of the marginal effects indicates that female-headed households belonging to lower social class, depending on non-agricultural occupation with lower income, belonging to below poverty line families and seeking wage employment, are more likely to access relief as food grains; whereas male respondents with lower age, belonging to lower-income quartile with memberships in Self Help Groups are more likely to access the cash benefit transfers.

Practical implications

The COVID-19 pandemic has affected the food security and livelihood of many across the globe, which necessitated provisioning a package of support to everyone, particularly rural poor households. The World Bank undertook the COVID-19-Related Shocks Survey to provide a quick policy response for managing the risk of COVID-19 outbreak effectively. The results of this study provide timely insights for developing an effective relief strategy for rural households during a crisis.

Originality/value

There is limited investigation on access to relief by rural households during the COVID-19 outbreaks and factors affecting the access to relief in terms of cash and kind. This study has utilized a reliable data source to analyze the access of relief packages by the rural communities during the coronavirus outbreak.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0632.

Details

International Journal of Social Economics, vol. 49 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Case study
Publication date: 13 December 2019

Shoaib M. Farooq Padela, Jawaid Ahmed Qureshi and Salman Bashir

Learning outcomes (objectives and outcomes) are as follows: to understand the brand positioning, brand building and category extension decisions of a pharmaceutical brand…

Abstract

Learning outcomes

Learning outcomes (objectives and outcomes) are as follows: to understand the brand positioning, brand building and category extension decisions of a pharmaceutical brand (operative in one of the most competitive and regulated industries in a developing country); to analyze the outcomes of decisions pertaining strategic sales, branding, marketing and strategic restructuring to overcome the challenges of growth; and to design strategic solutions for developing brand equity.

Case overview/synopsis

This case explores the strategy of launching and establishing a pharmaceutical brand in an industry that tends to be a highly technical and the most regulated industry. It depicts market research data, industry analysis, stiff competition and regulatory affairs, and elaborates various strategic decisions taken by the company. The primary data for the case is accumulated through in-depth interviews from six industry experts on pharma marketing who were well acquainted with Maple Pharma and secondary data is gleaned from substantive literature. Maple Pharmaceuticals launched Starpram, a high-growth, high-potential generic antidepressant brand (in the central nervous system category) containing Escitalopram molecule/chemical. It had expertise cum competitive advantage in cardiovascular and anti-diabetic streams, but such initiative appeared category extension, with the intention to diversify risk and expand the company to achieve greater economies of scale. The first year sales revenue for Starpram appeared too bleak to spur further product inaugurations. Consequently, strategic overhaul transpired to establish the brand in the highly fragmented pharmaceutical industry. The firm lacked experience in anti-depressants category, coupled with poor sales, marketing mix and overall marketing strategy. Eventually, the management exercised strategic restructuring to establish brand equity and observed growth.

Complexity academic level

Study levels/Applicability graduate (MBA), MS, PhD (management sciences).

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

Subject code

CSS 8: Marketing.

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