Search results

1 – 10 of over 4000
To view the access options for this content please click here
Article

Cheshta Kapuria and Neha Singh

The purpose of this paper is twofold: to explore the interrelationships between FDI with growth and sustainability dimension; and to empirically analyze the four…

Abstract

Purpose

The purpose of this paper is twofold: to explore the interrelationships between FDI with growth and sustainability dimension; and to empirically analyze the four dimensions, namely, environmental, economic, social and governance of sustainable FDI for South Asia and West Asia.

Design/methodology/approach

The data utilized in the paper is sourced from the World Development Indicators and the Worldwide Governance Indicators, covering South and West Asian region over the period 2011–2017. The paper employed both static and dynamic panel (two-step difference generalized methods of moments) estimation methods.

Findings

The results established a significant and robust relationship of past year FDI inflows with the current year’s value of FDI inflows for both the regions. Further, some variances in the relationships such as control of corruption, long-run carbon emissions, research and development, number of trademark applications as per the contextual factors have been detected.

Research limitations/implications

The conclusions related to gender and governance found in this paper will be of interest to both researchers and policy makers for substantially reorienting the sustainability attributes to the foreign investment.

Originality/value

The authors’ main contributions are: to encapsulate the conceptual framework into an empirical model by combining all the four dimensions, namely, environmental, economic, social and governance; to have analyzed the possible differences and similarities in the study based on South and West Asia; to have explored the relationship between gender and FDI.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Article

Neha Saini and Monica Singhania

The purpose of this paper is to investigate the potential determinants of FDI, in developed and developing countries.

Abstract

Purpose

The purpose of this paper is to investigate the potential determinants of FDI, in developed and developing countries.

Design/methodology/approach

This paper investigates FDI determinants based on panel data analysis using static and dynamic modeling for 20 countries (11 developed and 9 developing), over the period 2004-2013. For static model estimations, Hausman (1978) test indicates the applicability of fixed effect/random effect, while generalized moments of methods (GMM) (dynamic model) is used to capture endogeneity and unobserved heterogeneity.

Findings

The outcome across different countries depicts diverse results. In developed countries, FDI seeks policy-related determinants (GDP growth, trade openness, and freedom index), and in developing country FDI showed positive association for economic determinants (gross fixed capital formulation (GFCF), trade openness, and efficiency variables).

Research limitations/implications

The destination of FDI is limited to 20 countries in the present paper. The indicator of the institutional environment, namely economic freedom index, used in this paper has received some criticism in calculations.

Practical implications

The paper enlists recommendations for future FDI policies and may assist government in providing a tactical framework for skill development, thereby increasing manufacturing growth rate. The paper also throws light on vertical and horizontal capital inflows considering resource, strategy, and market-seeking FDI.

Social implications

FDI may bring significant benefits by creating high-quality jobs, introducing modern production and management practices. It highlights how multinational corporations and government contribute to better working conditions in host countries.

Originality/value

The paper uncovers important features like macroeconomic variables, especially country-wise efficiency scores, policy variables, GFCF, and freedom index, for determining FDI inflows in 20 countries using panel data methods and provides a roadmap for developed and developing countries. The study highlights endogeneity and unobserved heteroscedasticity by applying GMM one- and two-step procedure.

Details

Journal of Economic Studies, vol. 45 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Article

Shuyun Ren and Tsan-Ming Choi

Panel data-based demand forecasting models have been widely adopted in various industrial settings over the past few decades. Despite being a highly versatile and…

Abstract

Purpose

Panel data-based demand forecasting models have been widely adopted in various industrial settings over the past few decades. Despite being a highly versatile and intuitive method, in the literature, there is a lack of comprehensive review examining the strengths, the weaknesses, and the industrial applications of panel data-based demand forecasting models. The purpose of this paper is to fill this gap by reviewing and exploring the features of various main stream panel data-based demand forecasting models. A novel process, in the form of a flowchart, which helps practitioners to select the right panel data models for real world industrial applications, is developed. Future research directions are proposed and discussed.

Design/methodology/approach

It is a review paper. A systematically searched and carefully selected number of panel data-based forecasting models are examined analytically. Their features are also explored and revealed.

Findings

This paper is the first one which reviews the analytical panel data models specifically for demand forecasting applications. A novel model selection process is developed to assist decision makers to select the right panel data models for their specific demand forecasting tasks. The strengths, weaknesses, and industrial applications of different panel data-based demand forecasting models are found. Future research agenda is proposed.

Research limitations/implications

This review covers most commonly used and important panel data-based models for demand forecasting. However, some hybrid models, which combine the panel data-based models with other models, are not covered.

Practical implications

The reviewed panel data-based demand forecasting models are applicable in the real world. The proposed model selection flowchart is implementable in practice and it helps practitioners to select the right panel data-based models for the respective industrial applications.

Originality/value

This paper is the first one which reviews the analytical panel data models specifically for demand forecasting applications. It is original.

Details

Industrial Management & Data Systems, vol. 116 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

To view the access options for this content please click here
Article

Neha Saini and Monica Singhania

The purpose of this paper is to establish the relationship between environmental‒social disclosure scores and corporate financial performance. The authors tried to…

Abstract

Purpose

The purpose of this paper is to establish the relationship between environmental‒social disclosure scores and corporate financial performance. The authors tried to investigate the relevance of assurance practice (whether or not companies’ assessment policies are subject to individual assessment for the given period) and value relevance in foreign-owned firms.

Design/methodology/approach

This research is based on accounting-based valuation model proposed by Berthelot et al. (2003), considering the market value of equity as the function of book value and other financial indicators including Return of Assets and Return on Capital Employed. Environmental and social disclosure scores are extracted from Bloomberg database as the measure of company’s transparency in reporting value relevance information and sustainable development. The study considers the sample period of 8 years (2008‒15) and uses static (fixed effects and random effects) and dynamic (generalised methods of moments (GMM)) panel data estimations for analysing and concluding results.

Findings

The results support the evidence of environmental disclosure score as performance relevance indicator. Environmental disclosure score highlights the positive and significant relationship with different performance indicators. The interaction between foreign ownership and environmental disclosure represents a negative association, implying that foreign ownership is incubating more on profit making rather than environmental protection initiatives. However, in the context of the social disclosure score, a positive association with economic performance is found. But interaction term between foreign ownership and social disclosure represented a negative coefficient.

Originality/value

Value relevance disclosures are investigated with performance indicators that create an incentive for stakeholders. Also, the effect of foreign ownership and value relevance interaction term on firm’s financial performance is determined. To the best of authors’ understanding, previous literature is silent about this dimension. The authors also tried to incorporate the solution to the endogeneity issue by using GMM.

Details

Benchmarking: An International Journal, vol. 26 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

To view the access options for this content please click here
Article

Abdulazeez Y.H. Saif-Alyousfi

The purpose of this paper is to examine the impact of the Yemen War on banking services (deposits and loans) at the aggregate and at the level of conventional and Islamic…

Abstract

Purpose

The purpose of this paper is to examine the impact of the Yemen War on banking services (deposits and loans) at the aggregate and at the level of conventional and Islamic banks in GCC countries. The author also tests hypotheses of direct and indirect impacts of the Yemen War on bank services.

Design/methodology/approach

The sample comprises a total of 70 banks (45 conventional and 25 Islamic banks) over the period 2000–2018. The static and dynamic panel generalized methods of moments (GMM) estimation techniques are applied.

Findings

Empirical results indicate that the Yemen War has a significant negative direct impact on deposits and loans of GCC banks. The results lend support for the direct channel hypothesis, but not for the indirect channel hypothesis. The negative direct impact is most prominent on banks in GCC countries that are directly involved in the Yemen War, although the war has an asymmetric effect on conventional and Islamic banks, the former being more vulnerable. The overall conclusion is that the Yemen War exerts an asymmetric impact on the GCC region, across both banks and countries.

Practical implications

These results are a warning to policymakers to be cautious when formulating a strategy for macroeconomic stability.

Originality/value

It is widely recognized that the Yemen War has a significant impact on the economies of the GCC countries. However, the possible impact of the war on GCC bank services has not so far been subjected to robust empirical analysis. This paper therefore seeks to fill this gap by providing an in-depth quantitative analysis of this impact. It distinguishes between direct and indirect channels through which the Yemen War may affect bank services. It is also the first to examine the asymmetric impact of the Yemen War on the GCC region, across both banks (Islamic and conventional banks) and countries (whether or not involved in the war). The study uses both static panel and dynamic panel GMM estimation techniques to analyze the data.

Details

Journal of Economic and Administrative Sciences, vol. 36 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

To view the access options for this content please click here
Article

Bassem Kahouli and Samir Maktouf

– This paper aims to use the approach based on the application of the law of gravity for the study of the flows of export and the effects of the RTAs.

Abstract

Purpose

This paper aims to use the approach based on the application of the law of gravity for the study of the flows of export and the effects of the RTAs.

Design/methodology/approach

In this paper, the authors evaluate the effects of RTAs on exports between members and non-members taking into account the Vinerian specification. The authors also try to estimate the impact of the recent economic crisis on the flows of export and the success of the RTAs. The authors use a model of static and dynamic gravity for 40 countries and six RTAs during the period 1980-2011.

Findings

Definitely the proliferation of RTAs will continue to be one of the driving forces that will constitute the political system and the global economy in the following years. It indicates a process that implies the merger of economies separated in bigger regions of free trade. Regional integration is seen as beneficial in many senses and is the major economic objectives in addition to presenting a stabilizing factor in international relations.

Originality/value

The gravity model is estimated using the last techniques of panel data which takes into account the endogeneity of the effects of integration and the existence of dynamic effect.

Details

International Journal of Development Issues, vol. 13 no. 1
Type: Research Article
ISSN: 1446-8956

Keywords

To view the access options for this content please click here
Article

Abdulazeez Y.H. Saif-Alyousfi, Rohani Md-Rus, Kamarun Nisham Taufil-Mohd, Hasniza Mohd Taib and Hanita Kadir Shahar

The purpose of this paper is to examine the determinants of capital structure using a dataset of firms in Malaysia.

Abstract

Purpose

The purpose of this paper is to examine the determinants of capital structure using a dataset of firms in Malaysia.

Design/methodology/approach

This paper carries out a panel data analysis of 8,270 observations from 827 listed non-financial firms on the Malaysia stock market over the period 2008–2017. To estimate the model and analyse the data collected from the DataStream and World Bank databases, the authors use static panel estimation techniques as well as two-step difference and system dynamic GMM estimator.

Findings

The results show that profitability, growth opportunity, tax-shield, liquidity and cash flow volatility have a negative and significant impact on debt measures. However, the effects of collateral, non-debt tax and earnings volatility on measures of debt are positive and significant. In addition, firm size, firm age, inflation rate and interest rate are important determinants of the present value of debt. The results also show a significant inverse U-shaped relationship between the firm's age and its capital structure. In general, the results support the proposition advocated by the pecking order and trade-off theories.

Practical implications

The results of this study necessitate formulation of various policy measures that can counter the effects of debt on firms.

Originality/value

The present study is among the earliest to use both the book and market value measures of capital structure. It also uses three proxies for each: total debt, long-term debt and short-term debt. It incorporates earning volatility and cash flow volatility as new independent variables in the model. These variables have not previously been used together with both book and market value measures of capital structure. The study also examines the non-monotonic relationship between firm's age and capital structure using a quadratic regression method. It applies both static panel techniques and dynamic GMM estimation techniques to analyse the data.

Details

Asia-Pacific Journal of Business Administration, vol. 12 no. 3/4
Type: Research Article
ISSN: 1757-4323

Keywords

To view the access options for this content please click here
Article

Mariano González Sánchez, Ana I. Mateos Ansótegui and Antonio Falcó Montesinos

The purpose of this paper is to locate the specific items from the financial statements that are responsible for the dirty surplus accounting flows and how important they…

Abstract

Purpose

The purpose of this paper is to locate the specific items from the financial statements that are responsible for the dirty surplus accounting flows and how important they are in its explanation.

Design/methodology/approach

It is generally accepted that some country accounting rules allow some operations that can generate dirty surplus in the annual statements. Working on this basis, it is necessary to consider information at the same time across firms and across time, using panel data econometric techniques. A static panel data estimated by generalized least squares can be used to correct correlations between firms and account numbers or a dynamic panel data estimated by GMM‐SYS with instrumental variables to avoid endogeneity.

Findings

Results show that in a static panel data model, the income statement items have a lower explicative power of balance sheet items variations, having higher explicative power a dynamic one (AR(1)). Results show that, specifically, financial assets, debts and book value capture the dirty accounting flows.

Research limitations/ implications

Working in differences reduces the explicative power of the income statement and working in levels could be inconsistent if it is impossible to contrast, first, stationary in data due to their shortage. It is suggested that future works increase the frequency of the observed data, and contrast the cointegration as a way to check the accounting relationships.

Practical implications

It is important to evaluate whether the income statement can (or cannot) explain the financial position of a firm. Also it is important to know where dirty surplus accounting flows are located can be useful for firms' valuation.

Originality/value

The econometric technique proposed in the paper deals with the main limitation in accounting research: information is bigger in cross‐section (number of firms) than in time series (economic periods).

Details

Review of Accounting and Finance, vol. 7 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

To view the access options for this content please click here
Article

Abdulazeez Y.H. Saif-Alyousfi

The purpose of this paper is to examine the effect of bank specific, financial structure and macroeconomic factors on the shareholder value of banks in GCC economies…

Abstract

Purpose

The purpose of this paper is to examine the effect of bank specific, financial structure and macroeconomic factors on the shareholder value of banks in GCC economies during 2000–2017.

Design/methodology/approach

To estimate the model and analyze the data collected from the BankScope and World Bank World Development Indicator database, the author uses static panel estimation techniques as well as two-step difference and system dynamic generalized method of moments estimator.

Findings

The results show that banks that are highly dependent on non-traditional activities have higher shareholder value. Higher opportunity cost, capitalization and demand deposits result in a better bank shareholder value. Furthermore, banks with higher loan exposure and growth have better shareholder value. Non-performing loans and market risk have insignificant effects on bank shareholder value. However, GCC banks suffer from diseconomies of scale and scope. The author also finds that banks located in countries with high inflation rates, high rates of interest or in financially developed economies offer better shareholder value. High credit to the private sector reduces the bank shareholder value. The paper also provides evidence that the impact of financial turmoil on the shareholder value of the GCC banking sector is negative and significant and has severely weakened the GCC banking system.

Practical implications

The results of this study necessitate formulation of various policy measures that can counter the effects of shareholder value of banks.

Originality/value

The present study is among the first to address the influence of financial turmoil on bank shareholder value. It also studies new variables, such as demand deposits, non-performing loans, loan growth, non-interest revenue and off-balance sheet activities, which have not been examined in relation to bank shareholder value. It also applies both static techniques and dynamic panel estimation techniques to analyze the data. The analysis is carried out at the aggregate level as well as at the national level and also provides several robustness analyses using various model specifications.

Details

International Journal of Managerial Finance, vol. 16 no. 2
Type: Research Article
ISSN: 1743-9132

Keywords

To view the access options for this content please click here
Article

Abdulazeez Y.H. Saif-Alyousfi

This paper investigates and compares the impact of foreign direct investment (FDI) inflows (flow and stock) on bank off-balance sheet (OBS) activities in aggregate as well…

Abstract

Purpose

This paper investigates and compares the impact of foreign direct investment (FDI) inflows (flow and stock) on bank off-balance sheet (OBS) activities in aggregate as well as at the level of conventional and Islamic banks in GCC countries. It also tests hypotheses of direct and indirect impacts of FDI flow and FDI stock on OBS activities.

Design/methodology/approach

This paper uses both static and dynamic panel generalized methods of moments (GMM) estimation techniques to analyze the data of 70 GCC banks (45 conventional and 25 Islamic banks) over the period 1995–2017.

Findings

Empirical results indicate that FDI flow and FDI stock have a significant negative direct impact on OBS activities of GCC banks. The results lend support for the direct channel hypothesis for the effect of FDI on OBS activities and find no evidence in support of the indirect channel hypothesis. OBS activities from conventional banks appear to be more affected than those from Islamic banks.

Practical implications

The results of this study are expected to trigger appropriate policy response from the central banks of the respective GCC countries as well as their governments.

Originality/value

It is widely recognized that FDI inflows are of great importance to the economic development of emerging and developing countries. However, their impact on bank OBS activities has so far not been subject to accurate empirical assessment. This paper aims to fill this gap by providing an in-depth quantitative analysis of the impact of FDI flow and FDI stock separately, on bank OBS activities for both conventional and Islamic banks in GCC countries. It distinguishes between direct and indirect channels through which FDI flow and FDI stock may affect OBS activities for banks as a whole and both conventional and Islamic banks separately. It also uses both static and dynamic panel GMM estimation techniques to analyze the data.

Details

China Finance Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-1398

Keywords

1 – 10 of over 4000