Search results
1 – 10 of 206Qi Zou, Yuan Wang and Sachin Modi
This study uncovers how government interventions, in terms of stringency and support, shape coronavirus disease 2019's (COVID-19) detrimental impact on organizations' performance…
Abstract
Purpose
This study uncovers how government interventions, in terms of stringency and support, shape coronavirus disease 2019's (COVID-19) detrimental impact on organizations' performance. Specifically, this paper studies whether stringency and support play complementary or substitutive roles in lowering COVID-19's impact on organizations' performance.
Design/methodology/approach
The authors gathered primary data from USA manufacturing companies and combined this with secondary data from the Oxford COVID-19 Government Response Tracker (OxCGRT) to test the proposed model with structural equation modeling (SEM).
Findings
The results show that the stringency approach increases the detrimental impact on both operational and financial performance, while economic support (to households) and fiscal spending (to organizations) work differently on lowering the impacts of COVID-19. Further, these combinative effects only influence the firm's operational performance, albeit in opposite directions.
Originality/value
This study advances the knowledge of government interventions by examining stringency and support's direct and interaction effects on firm performance as a result of the COVID-19 pandemic. The findings contribute to the literature by uncovering the unique roles of both supportive policies, thus differentiating economic support (to individuals/households) from fiscal spending (to organizations) and providing important academic, managerial and policy insights into how government should best initiate and blend stringency and support policies during the COVID-19 pandemic.
Details
Keywords
Alisha Mahajan and Kakali Majumdar
Trade of environmentally sensitive goods (ESGs) is often exposed to countries with less stringent regulations suggesting that those countries have comparative advantage in the…
Abstract
Purpose
Trade of environmentally sensitive goods (ESGs) is often exposed to countries with less stringent regulations suggesting that those countries have comparative advantage in the polluting sector. The Group of Twenty (G20) members are among the highest polluters, globally. Different stringency policies are enacted time to time in G20 to control environment pollution. However, the impact of policy stringency on export performance of ESGs is seldom examined. The paper aims to address some of the issues concerning this matter.
Design/methodology/approach
The present study aims to address the short run and long-run association between Revealed Comparative Advantage of ESGs and Environmental Policy Stringency Index for the period of 1990–2019 in G20. Periodic fluctuations and time adjustment mechanism are also studied. Second Generation Panel Cointegration, Vector Error Correction, Impulse Response Function and Variance Decomposition methods are employed to address the objectives.
Findings
Result is evident that more exposure to stringent environmental regulations reduces the comparative advantage of ESGs in the long run. But there is no evidence of the short-run relationship between the variables. The possible reason could be that new regulations enacted prove fruitful in the long run.
Originality/value
The novelty of the study is to focus on inter linkages between stringency and global export competitiveness in G20, almost nonexistent in the past studies. The study also provides a road map to policymakers to find out potential ways for sustainable development by balancing environmental stringency measures and international trade.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0560
Details
Keywords
Fahimeh R. Chomachaei and Davood Golmohammadi
The authors investigate the impact of the stringency of environmental policy on the financial performance of European automobile manufacturers. This paper contributes to the…
Abstract
Purpose
The authors investigate the impact of the stringency of environmental policy on the financial performance of European automobile manufacturers. This paper contributes to the debate about the impact of environmental policy on a firm's competitive performance.
Design/methodology/approach
The authors use cross-country sector-level panel data for 71 firms from 18 European countries from 2010 to 2019. The authors apply a fixed-effect model and then, to address the endogeneity issues, the authors use the generalized method of moments (GMM) model. To further examine the validity of the results, the authors use a data-mining modeling approach as a robustness test.
Findings
By considering the dynamic impact of environmental policy and overcoming the endogeneity issues, the results show that the impact of the stringency of environmental policy on a firm's financial performance depends on the time horizon: the stringency of environmental policy has a short-term negative impact but a long-term positive impact on a firm's financial performance.
Research limitations/implications
The authors limited the study to the auto industry in Europe. In addition, future research could consider the impact of environmental policy on other financial performance indicators such as Return on Sales or Return on Equity. Also, it would be interesting to conduct a similar study in the United States or China using a firm-level data set to examine the robustness of the results.
Practical implications
Stringency of environmental policy improves a firm's financial performance in the long term. It is essential for firms and managers to consider the dynamic impacts of environmental policy on their financial performance and adopt a long-term perspective when evaluating the costs and benefits of complying with environmental regulations. The findings help management develop a long-term vision for investment and budget allocation. The results support management's view for strategic decision-making against the common budget argument and challenges for stockholders when it comes to adopting new technologies and planning long-term investment.
Social implications
It is crucial for firms to recognize the broader societal benefits that come with environmental policy. Firms must not only focus on their financial performance but also on their social responsibility to protect the environment and contribute to the greater good. Therefore, firms must take a long-term perspective and recognize the broader societal benefits of environmental policy in order to make informed decisions that support both their financial success and their social responsibility.
Originality/value
This paper contributes to the literature by helping to explain the inconsistent results of studies about the impact of environmental policy on a firm's competitiveness. Using a firm's financial performance as one of the main metrics for competitiveness, this study takes into account both endogeneity and contemporaneity in evaluating the impact of the stringency of environmental policy on a firm's financial performance.
Details
Keywords
Leila C. Kabigting, Maria Claret M. Ruane and Kristina C. Sayama
During the COVID-19 pandemic, lockdowns were implemented to achieve two goals: (1) to reduce the number of COVID-19 cases and (2) to reduce the number of COVID-19 deaths. In this…
Abstract
Purpose
During the COVID-19 pandemic, lockdowns were implemented to achieve two goals: (1) to reduce the number of COVID-19 cases and (2) to reduce the number of COVID-19 deaths. In this paper, the authors aim to look at empirical evidence on how effectively lockdowns achieved these goals among small island developing states (SIDS) and for one specific SIDS economy, Guam.
Design/methodology/approach
The authors reviewed existing studies to form two hypotheses: that lockdowns reduced cases, and that lockdowns reduced deaths. Defining a lockdown as a positive value for Oxford COVID-19 government response tracker, OxCGRT's stringency index, the authors tested the above hypotheses on 185 countries, 27 SIDS economies and Guam using correlation and regression analyses, and using different measures of the strictness, duration and timing of the lockdown.
Findings
The authors found no evidence to support the hypothesis that lockdowns reduced the number of cases based on data for all 185 countries and 27 SIDS economies. While the authors found evidence to support the hypothesis in the case of Guam, the result required an unrealistically and implausibly long time lag of 365 days. As to the second hypothesis that lockdowns reduced the number of deaths, the authors found no evidence to support it for 185 countries, 27 SIDS economies as well as Guam.
Originality/value
From the review of the existing literature, the authors are the first to conduct this type of study among SIDS economies as a group and on Guam.
Bisharat Hussain Chang, Raheel Gohar, Omer Faruk Derindag and Emmanuel Uche
This research examines the impact of lockdown stringency measures and COVID-19 cases on food and healthcare prices in six Brazil, Russia, India, China, South Africa and Turkey…
Abstract
Purpose
This research examines the impact of lockdown stringency measures and COVID-19 cases on food and healthcare prices in six Brazil, Russia, India, China, South Africa and Turkey (BRICST) countries. This research is conducted in these countries since previous studies failed to examine the effect of COVID-19 reported cases on food and healthcare prices.
Design/methodology/approach
To achieve the objectives of this study, food and healthcare services were regressed against CVC and lockdown stringency measures using the dynamic autoregressive distributed lag (DARDL) model. For this purpose, we used daily data for BRICST countries such as Brazil, Russia, India, China, South Africa and Turkey.
Findings
The empirical evidence indicates that, in the long run, COVID-19 cases significantly and positively affect both food and healthcare prices in India, South Africa and China. In contrast, in the short run, COVID-19 positively affects food and healthcare prices in all countries except Russia and Turkey. Similarly, in the long run, the government stringency index (GSI) and Containment and Health Index (CHI) significantly affect health prices in India and South Africa. In contrast, GSI and CHI significantly affect healthcare prices in South Africa only in the short run. Finally, GSI and CHI significantly affect the food prices in the long run in India, South Africa and China and in the short run in South Africa only.
Originality/value
The widespread impact of the new Coronavirus (COVID-19) has made the world panic. COVID-19 affected all spheres of life, including food supplies and healthcare services. However, most of the empirical research failed to examine the impact of COVID-19 cases on food and healthcare prices which is the main focus of this study. Moreover, in the given context, the authors use a recently developed model that the previous studies failed to use.
Details
Keywords
Sonia Schifano, Andrew E. Clark, Samuel Greiff, Claus Vögele and Conchita D'Ambrosio
The authors track the well-being of individuals across five European countries during the course of the coronavirus disease 2019 (COVID-19) pandemic and relate their well-being to…
Abstract
Purpose
The authors track the well-being of individuals across five European countries during the course of the coronavirus disease 2019 (COVID-19) pandemic and relate their well-being to working from home. The authors also consider the role of pandemic-policy stringency in affecting well-being in Europe.
Design/methodology/approach
The authors have four waves of novel harmonised longitudinal data in France, Italy, Germany, Spain and Sweden, covering the period May–November 2020. Well-being is measured in five dimensions: life satisfaction, a worthwhile life, loneliness, depression and anxiety. A retrospective diary indicates whether the individual was working in each month since February 2020 and if so whether at home or not at home. Policy stringency is matched in per country at the daily level. The authors consider both cross-section and panel regressions and the mediating and moderating effects of control variables, including household variables and income.
Findings
Well-being among workers is lower for those who work from home, and those who are not working have the lowest well-being of all. The panel results are more mitigated, with switching into working at home yielding a small drop in anxiety. The panel and cross-section difference could reflect adaptation or the selection of certain types of individuals into working at home. Policy stringency is always negatively correlated with well-being. The authors find no mediation effects. The well-being penalty from working at home is larger for the older, the better-educated, those with young children and those with more crowded housing.
Originality/value
The harmonised cross-country panel data on individuals' experiences during COVID-19 are novel. The authors relate working from home and policy stringency to multiple well-being measures. The authors emphasise the effect of working from home on not only the level of well-being but also its distribution.
Details
Keywords
Martina Battisti, Shuangfa Huang and David Pickernell
While previous research has identified that environmental innovation is shaped by a variety of drivers, researchers have devoted limited attention to the role of nature-based…
Abstract
Purpose
While previous research has identified that environmental innovation is shaped by a variety of drivers, researchers have devoted limited attention to the role of nature-based resources in the country. Building on environmental innovation theory and the natural resource-based view of the firm, this study introduces ecological resource deficits as a novel driver of environmental innovation. The authors explore how ecological resource deficits interact with institutional and regulatory drivers as well as firm-level technology drivers to explain the extent of environmental innovation across different countries.
Design/methodology/approach
The authors apply fuzzy-set qualitative comparative analysis to a multi-source dataset to identify different pathways for environmental innovation across 28 countries.
Findings
Findings show that higher environmental innovation is a function of ecological resource deficits complemented by the presence of at least two other conditions. Moreover, the results show that environmental policy stringency and societal expectations are substitute conditions of environmental innovation.
Originality/value
This study reveals the interdependences between different conditions for environmental innovation across countries contributing to a more nuanced understanding of the geography of environmental innovation.
Details
Keywords
Sherin Priscilla, Saarce Elsye Hatane and Josua Tarigan
This study examines the influence of various COVID-19 catastrophes variables on the stock market liquidity, considering the market depth and market tightness in the technology…
Abstract
Purpose
This study examines the influence of various COVID-19 catastrophes variables on the stock market liquidity, considering the market depth and market tightness in the technology industry of the four biggest ASEAN capital markets.
Design/methodology/approach
The study utilised the panel data regression analysis obtained from 177 listed technology companies across the four ASEAN countries from March 2, 2020 to June 30, 2021 using the random effect and weighted least squares. The study also supported the result with robustness test, implementing the quantile regression to further present companies' segmentation within the variables.
Findings
The regression results indicate that daily growth COVID-19 confirmed cases and stringency that adversely impacted the stock market liquidity. Confirmed deaths were also found to have a detrimental effect on the stock market liquidity. On the other hand, recoveries and vaccination of COVID-19 enhance the stock market liquidity to escalate.
Research limitations/implications
The study affirms that stock market liquidity is bound to be driven by the COVID-19 variables, but only to be limited to the technology industry observed in four major ASEAN capital markets. Awareness by investors and government could be shifted towards the rise of confirmed cases, recoveries, vaccination and stringency as it improves the liquidity of capital market in aggregate. However, rise of confirmed deaths negatively affect the liquidity. All in all, government and stock market regulator should promote transparency to boost investors' confidence in trading.
Originality/value
This study initiates the investigation in the four biggest ASEAN capital markets, particularly in the technology industry, regarding the COVID-19 catastrophes and stock market liquidity in terms of both market depth and market tightness. Further, this study enriches the impact of COVID-19 by taking the recovery cases and vaccination of COVID-19 as additional consideration.
Details
Keywords
Mudaser Ahad Bhat, Farhana Wani, Aadil Amin, G.M. Bhat and Farhat Bano Beg
This paper aims to investigate the effects of the COVID-19 crisis on trade flows in Asia Pacific countries and explores the causality between COVID-19-related shocks and trade.
Abstract
Purpose
This paper aims to investigate the effects of the COVID-19 crisis on trade flows in Asia Pacific countries and explores the causality between COVID-19-related shocks and trade.
Design/methodology/approach
The authors used two novel techniques, namely, two-stage instrumental-variables (2SIV) approach and Juodis, Karavias and Sarafids (JKS) causality test, to examine trade dynamics in the Asia Pacific region during the pandemic.
Findings
Using the monthly trade data of 17 Asia Pacific countries between January 2020 and December 2021, the results were threefold. Firstly, the empirical analysis showed that during the COVID-19 crisis, the flow of exports tended to persist idiosyncratically in comparison to the flow of imports. In particular, a specific finding was that the persistence level in exports was about 20%–25% higher than that in imports. Secondly, the authors found that the past values of COVID-19 cases and COVID-19 deaths contain information that helps to predict exports/imports over and above the information contained in the past values of exports/imports alone. Finally, the study established that the government response and stringency indexes have a Granger-causal relationship with exports and imports.
Research limitations/implications
For the foreseeable future, these findings have significant policy ramifications. Firstly, if a COVID-19 crisis-like situation emerges in the future, it will be critical for countries to maintain their competitiveness throughout the crisis, like the COVID-19 pandemic, while also rebuilding trade relationships wherever possible. Secondly, because information about government responses and measures can also be used to predict future trade flows, prudent management of government responses and stringent measures will be necessary in a crisis like COVID-19 to achieve the optimum level of exports and imports. At the same time, the trading partners should give up the idea of trade protection and focus on finding a way to balance the conflicting needs of imports and exports.
Originality/value
To the best of the authors’ knowledge, the authors, for the first time, used a 2SIV approach and JKS causality test to examine trade dynamics in the Asia Pacific region during the pandemic. In addition, the authors present the first comprehensive analysis of the evolving relationships between export and import flows and governmental policy responses under COVID-19. As a result, it contributes uniquely to both public and international economics.
Details
Keywords
Financial crime presents a serious threat to the stability and integrity of the global financial system. To combat illicit financial activities, regulatory bodies worldwide have…
Abstract
Purpose
Financial crime presents a serious threat to the stability and integrity of the global financial system. To combat illicit financial activities, regulatory bodies worldwide have implemented various measures, including the requirement for financial institutions to assess the financial crime risks they are exposed to in the jurisdictions they operate in. These risks include inadequate anti-money laundering and countering the financing of terrorism frameworks and other financial crime risks that have significant strategic implications for firms’ geographical footprints and customer risk classifications. This paper aims to make a contribution to the literature by undertaking a cross-country analysis of 158 countries to shed light on what drives perceived jurisdiction risk of the UK financial services firms.
Design/methodology/approach
Capturing firms’ perceptions of financial crime risk requires significant data collection efforts, including surveys and interviews with key personnel. This can be highly resource-intensive and may require access to sensitive information that firms may be reluctant to share. Furthermore, the dynamic nature of financial crime risks means that perceptions can change rapidly in response to changes in the regulatory and geopolitical landscape. As a result, capturing and monitoring firms’ perceptions of financial crime risks requires ongoing monitoring and analysis. Capturing firms’ perceptions of financial crime risks at a cross-jurisdictional level is a particularly complex and challenging task that requires careful consideration of a range of factors. As a result of data limitations, empirical investigation of the factors underlying the firms’ perceptions of jurisdiction risk is in its infancy. This paper uses regulatory financial crime data from the UK in a multivariate regression analysis, following a general-to-specific approach where any redundant variables were removed from the general model sequentially.
Findings
Results suggest that perceived jurisdiction risk is significantly and positively associated with evasion of tax and regulations, while it is significantly and negatively associated with political stability and regulatory stringency. These have important implications for home and host supervisors with respect to the factors that drive perceived jurisdiction risks and the evaluation of the nature of inherent financial crime risks within regulated firms. The findings confirm the critical role of the shadow economy, political stability and regulatory rigor in shaping jurisdiction risk perceptions. From a policy standpoint, the findings support the case for taking prompt policy action to identify, prioritize and implement specific and targeted measures with respect to the shadow economy, political stability and rigor of regulations to improve international firms’ perceptions of jurisdiction risk.
Originality/value
While there exists different measures of financial crime risk, it is notoriously challenging to capture firms’ perceptions of it, particularly at a cross-jurisdiction level. This is because financial crime risks can vary significantly across different jurisdictions due to differences in legal and regulatory frameworks, cultural norms and levels of economic development. This makes it difficult for firms to compare and evaluate the financial crime risks they face in different jurisdictions. Besides, firms’ perceptions of financial crime risks can be influenced by a range of subjective factors, including personal experiences, media coverage and hearsay. These perceptions may not always align with objective risk assessments, which are based on more systematic and empirical methods of risk measurement. This paper contributes to the existing literature by undertaking a cross-country analysis drawing on a unique set of UK regulatory financial crime data, which is based on a total of 1,900 annual financial crime data regulatory return (REP-CRIM) submissions to the UK’s Financial Conduct Authority.
Details