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1 – 10 of 372Hazera-Tun- Nessa and Katsushi S. Imai
Existence of working poverty reduces the effectiveness of the strategy of “increasing employment to reduce poverty”. Developed countries are already concerned about it but…
Abstract
Purpose
Existence of working poverty reduces the effectiveness of the strategy of “increasing employment to reduce poverty”. Developed countries are already concerned about it but insufficient attention has been made by developing countries. Focusing on developing countries this study identifies (1) the effects of trade openness (TO) on working poverty and (2) whether the working poverty trap exists or not in developing countries. Both objectives are also analyzed for three subsamples of low income, lower-middle income and upper-middle income developing countries.
Design/methodology/approach
Panel data for 98 developing countries over the period of 2000–2016 have been collected for the study. Fixed effect and GMM methods are applied for static and dynamic analysis, respectively.
Findings
The study finds that TO significantly reduces working poverty rate (WPR) (mainly driven up by upper-middle income developing countries). The positive association between WPR with its previous year's rate proves the existence of working poverty trap.
Research limitations/implications
The study's outcome is subject to selected time, countries and methods. Future research should use more improve methods and should identify the channels through which TO could affect working poverty.
Practical implications
Middle income and upper-middle income developing countries should increase TO to reduce the working poverty. Low income developing countries that have the highest working poverty should search the way to derive beneficial effects of trade on working poverty.
Social implications
Working poverty is not only a developed country issue rather it is a global phenomenon. Hence, it is expected that the study will raise the social consciousness about this phenomenon in developing countries too.
Originality/value
The study fulfills the gaps of identifying the effects of TO on working poverty and existence of in-work poverty trap in developing countries.
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Agwu Sunday Okoro, Augustine Ujunwa, Farida Umar and Angela Ukemenam
This paper examines the impact of regional and non-regional trade on economic growth using annual data from Economic Community of West African States (ECOWAS) member countries for…
Abstract
Purpose
This paper examines the impact of regional and non-regional trade on economic growth using annual data from Economic Community of West African States (ECOWAS) member countries for the period 2007 to 2017.
Design/methodology/approach
Trade data were decomposed into regional (trade among ECOWAS Member States) and non-regional (trade between ECOWAS Member States and the rest of the world). We used the dynamic system GMM to estimate the models and introduced exchange rate, unemployment rate, population growth and gross capital formation as controlled variables.
Findings
The results revealed that the estimated coefficient of ECOWAS regional trade is statistically significant and positive in predicting growth, while the non-regional trade coefficient is negative and not statistically significant in predicting growth. Other predictors of growth introduced into the model as controlled variables, such as exchange rate, unemployment rate, population growth and gross capital formation, displayed mixed results. More importantly, population growth, unemployment and exchange rate depreciation hurt economic growth, while gross capital formation promotes economic growth.
Practical implications
The findings provide strong support in favour of the Krugman (1991) hypothesis that regional trade agreements (RTAs) are a better alternative to global trade.
Originality/value
Our decision to disaggregate ECOWAS trade is unique and influenced largely by the objective of the study, which is to establish the type of ECOWAS trade that is a good predictor of growth. The evidence from our findings support the theory that RTAs are a better catalyst to economic growth.
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Paweł Mielcarz, Dmytro Osiichuk and Inna Tselinko
The article investigates the patterns of asset impairment recognition in search of signs of “big bath” earnings management practices across an internationally diversified sample…
Abstract
Purpose
The article investigates the patterns of asset impairment recognition in search of signs of “big bath” earnings management practices across an internationally diversified sample of public companies. It also elucidates the incentives that may underlie such practices and explores possible safeguards embedded in the existing corporate governance mechanisms.
Design/methodology/approach
The article applied static panel and binary logit models to an international firm-level panel dataset of 1045 public companies observed between 2003 and 2018.
Findings
Our empirical results suggest that recognition of asset impairment has no determinate impact on earnings volatility. Investigating the possibility of “big bath” earnings management practices, the authors found no impact of asset impairment recognition on total senior executive compensation in firms, which pay performance-based remuneration. The quality of corporate governance has appeared to impact the firms’ intertemporal proclivity to recognize asset impairment with those having the more entrenched and management-controlled boards being more likely to time impairment recognition by delaying it during exceptionally good and exceptionally bad years. While generally unlikely, recognition of asset impairment in a period with a recorded negative operating performance is found to be closely associated with key executive departures.
Originality/value
The article corroborates the salient role of corporate governance mechanisms in shaping the intertemporal patterns of asset impairment recognition. The possible remedies to the phenomenon should be derived therefrom.
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Haotian Wu, Jiancheng Chen, Wanting Bai and Yiliang Fang
The aim of this article is to research on forestry green total factor productivity and explore the impact of financial support on forestry green total factor productivity.
Abstract
Purpose
The aim of this article is to research on forestry green total factor productivity and explore the impact of financial support on forestry green total factor productivity.
Design/methodology/approach
The methods used in this study are super efficiency SBM model of undesired output and empirical model. SBM model is a kind of Data Envelopment Analysis (DEA). The SBM model with non-expected outputs (slacks-based measure) can be used to deal with the problem of efficiency measurement with multiple input and output variables and can be used to analyze the efficiency of green development of forestry economy.
Findings
First, the overall green total factor productivity of the authors’ country's forestry has shown a trend of first decline and then an increase from 2008 to 2018, and there are significant spatiotemporal differences; second, financial support has a significant positive impact on forestry green total factor productivity; third, environmental regulation has a significant threshold effect in the process of financial support on forestry green total factor productivity, and the role of financial support shows a trend of first increasing and then decreasing.
Originality/value
Secondly, taking the data of 30 provinces and cities in the authors’ country from 2008 to 2018 as the research object, using the super-efficiency SBM-Malmquist index to measure the country's forestry green total factor productivity and analyze its temporal and spatial changes; finally, a dynamic panel model was established to explore the impact of financial support on forestry green total factors quantitative impact on productivity, and adding environmental regulation as a threshold variable to establish a dynamic threshold regression, and found that financial support has a nonlinear impact on forestry green total factor productivity.
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Sudhi Sharma, Indira Bhardwaj and Kamal Kishore
Analysts expect reduced bank earnings as a result of the impact of the increase in bad loans. Banks have strategically created high provision coverage ratios allocating large…
Abstract
Purpose
Analysts expect reduced bank earnings as a result of the impact of the increase in bad loans. Banks have strategically created high provision coverage ratios allocating large funds for possible deterioration in asset quality. Given the expected faster growth and recovery in the bank lending sector, investors have always been interested in banking stocks, despite the waves of non-performing assets (NPAs) and recessionary influences. Historical references reiterate that the banking stocks have been better performers in their returns compared to the capital markets.
Design/methodology/approach
The study aims to examine the impact of key accounting variables on the stock prices of Indian banks in the panel data framework.
Findings
The current study explores the impact of accounting variables on the market prices of shares. After the study, it may be concluded that earning per share (EPS), return on equity (ROE), capital adequacy ratio (CAR) and net interest margin (NIM) have an incremental impact on the prices of banking stocks, and the current ratio (CR) and NPAs have a detrimental impact on them.
Practical implications
Studying their impact on stock prices is the most convenient fundamental analysis that could be conducted on the stock prices of the banks.
Originality/value
To provide insights into the association of the accounting and regulatory variables there is a severe limitation in the quantity of the literature available. This study has attempted to build a relationship between the accounting and regulatory variables and the stock prices of banking stocks, to help investors with some reliable methods to estimate the stock prices in the future.
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Mourad Mroua and Lotfi Trabelsi
This paper aims to investigate simultaneously the causality and the dynamic links between exchange rates and stock market indices. It attempts to identify the short- and long-term…
Abstract
Purpose
This paper aims to investigate simultaneously the causality and the dynamic links between exchange rates and stock market indices. It attempts to identify the short- and long-term effect of the US dollar on major stock market indices of Brazil, Russia, India, China and South-Africa (BRICS) nations.
Design/methodology/approach
This paper applies a new methodology combining the panel generalized method of moments model and the panel auto-regressive distributed lag (ARDL) method to investigate the existence of a causal short-/long-run relationships and dynamic dependence among all stock market returns and exchanges rates changes of BRICS countries.
Findings
Results show that exchange rate changes have a significant effect on the past and the current volatility of the BRICS stock indices. Besides, ARDL estimations reveal that exchange rate movements have a significant effect on short- and long-term stocks market indices of all BRICS countries
Originality/value
The findings have implications for policymakers and market participants who try to manage the exchange rate will have a different dose of intervention if they know that the effects of currency depreciation are different than appreciation. These results have important implications that investors should take into account in frequency-varying exchange rates and stock returns and regulators should consider developing sound policy measures to prevent financial risk.
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Ritu Pareek, Tarak Nath Sahu and Arindam Gupta
This study aims to attempt to evaluate and establish the relationship between gender diversity (GD) on the board and corporate sustainability performance.
Abstract
Purpose
This study aims to attempt to evaluate and establish the relationship between gender diversity (GD) on the board and corporate sustainability performance.
Design/methodology/approach
A sample of 212 non-financial companies listed on the National Stock Exchange has been considered for a period of 2013–2014 to 2018–2019. For the purpose of the analysis, this study has conducted the static panel data model analysis and also some diagnostics tests to arrive at robust results.
Findings
This study, from its analysis, interprets that GD or the proportion of women directors in the company plays a significant role in the decisions related to the sustainability performance of the company. Alongside GD, the profitability of the company, measured in terms of Tobin’s Q, and firm size are also seen to have a positive impact on the sustainability performance of the company.
Practical implications
This study from its findings contributes to the existing works of literature by highlighting the impact of GD on the sustainability performance of the firm. This study thus recommends the recruitment of an ample number of females in the top-notch positions of the board to create a gender-diverse management team to reap the benefits of leadership styles of both genders.
Originality/value
Very few studies have been conducted on the dynamics of women’s directorship, especially in an emerging economy like India. This study thus tries to fill this important gap in the literature by examining the relationship between board GD and sustainability performance of Indian firms.
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Mohammad Jashim Uddin, Md. Tofael Hossain Majumder, Aklima Akter and Rabaya Zaman
This paper aims to explore the effects of bank diversification (i.e. diversification of income and diversification of assets) on Bangladeshi banks’ profitability.
Abstract
Purpose
This paper aims to explore the effects of bank diversification (i.e. diversification of income and diversification of assets) on Bangladeshi banks’ profitability.
Design/methodology/approach
Using a dynamic panel data model with system generalized methods of moments, the authors examine an unbalanced panel data from 32 banks spanning 318 bank-year observations from 2007 to 2016.
Findings
The findings indicate a significant positive association of income diversification and asset diversification on bank profitability. Therefore, the results show that banks can generate profit from diversification of income and diversification of assets.
Originality/value
One of the rare attempts to investigate the relationship between diversification and profitability in Bangladesh’s banking sector is this report. The authors anticipate the results to have major consequences for Bangladeshi bank regulators and other related economies.
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Zélia Serrasqueiro, Beatriz Pinto and Filipe Sardo
This study aims to seek to analyse the relationships between profitability, productivity, external debt and growth in SMEs. The authors also analyse firm size and age as…
Abstract
Purpose
This study aims to seek to analyse the relationships between profitability, productivity, external debt and growth in SMEs. The authors also analyse firm size and age as explicative variables of small and medium-sized enterprise (SME) growth.
Design/methodology/approach
In this paper the data were collected for 3309 SMEs for the period 2010–2019. The authors estimate the model using the system generalised method of moments dynamic estimator.
Findings
The results show that after a certain level of profitability, this determinant positively impacts SME growth. Productivity influences positively the firm growth. There is a positive effect of external debt on SME growth, which can be explained by the insufficiency of internally generated funds. The authors obtained a negative signal between size and firm growth, contradicting Gibrat's Law (1931). Moreover, the results suggest that SMEs grow less after a certain age, suggesting that small firms grow less after reaching the minimum scale of efficiency.
Practical implications
For SME owner-managers, this study enhances the importance of profitability and labour productivity for firm growth. For policymakers, the results suggest the need for favourable conditions for SMEs in accessing external finance.
Originality/value
Profitability negatively impacts on SME growth. However, the authors found that above a certain level of profitability, probably, as firms accumulate retained earnings, profitability has a positive effect on SME growth. Moreover, this study shows that labour productivity and debt positively impact on SME growth, evidencing the importance of the availability of financial resources to sustain the growth of these firms.
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This study aims to analyze the impact of global climate change on food security in the East African Community (EAC) region, using panel data analysis for five countries, over…
Abstract
Purpose
This study aims to analyze the impact of global climate change on food security in the East African Community (EAC) region, using panel data analysis for five countries, over 2000-2014.
Design/methodology/approach
The determinants of food security are expressed as a function of rainfall, temperature, land area under cereal production, and population size. The paper used pooled fixed effects to estimate the relationship among these variables.
Findings
Findings show that food security in EAC is adversely affected by temperature. However, precipitation and increasing areas cultivated with cereal crops will be beneficial to ensure everyone's food security.
Originality/value
Actions for mitigating global warming are important for EAC to consolidate the region’s economic, political and social development/stability.
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