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1 – 8 of 8Wenjing Wang, Moting Wang and Yizhi Dong
The paper's purpose is to investigate the effects of digital finance on the risk of stock price crashes and the underlying transmission mechanisms, and to provide suggestions to…
Abstract
Purpose
The paper's purpose is to investigate the effects of digital finance on the risk of stock price crashes and the underlying transmission mechanisms, and to provide suggestions to inhibit the stock crash risk (CR).
Design/methodology/approach
This paper selects all companies that were listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2011 to 2020. It then uses the two-way fixed effect model and the intermediary effect model to verify such effects.
Findings
The overall outcomes demonstrate such a result that the CR of listed companies in China can be significantly reduced by the development of digital finance, and the overall transparency of business financial information and the equity pledge of controlling shareholders are the two underlying transmission mechanisms that digital finance can cause effects on the CR of stocks.
Research limitations/implications
The main limitations are that there may exist some problems in the method for evaluating the CR of stocks. And there may be a problem of endogeneity caused by the empirical model cannot control all correlation variables.
Practical implications
This paper would provide policy implications, for different roles, to inhibit the stock CR and to make the development of the economy more stabilize.
Social implications
Digital finance can promote economic development while restraining financial risks at the same time. Therefore, although this study is based on the relevant data from China, it can also provide a reference for other economies with different basic conditions from China, to promote the overall development of the world economy.
Originality/value
The current academic research on digital finance or stock price CR has been relatively sufficient, but there are few papers that combined both. By combining digital finance with stock CR, this paper researches the influence of digital finance on the CR of stocks through empirical analysis. So, this paper would provide new research ideas and evidence for potential influence factors of the CR of stocks, fill the gap in this research field and provide certain help for subsequent scholars to conduct relevant research.
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Despite the widespread prevalence of share pledging by Indian promoters, this area remains out of the researchers’ purview. This study aims to bridge this research gap by…
Abstract
Purpose
Despite the widespread prevalence of share pledging by Indian promoters, this area remains out of the researchers’ purview. This study aims to bridge this research gap by delineating the impact of promoter share pledging on future stock price crash risk and financial performance in India.
Design/methodology/approach
A sample of 257 companies listed on the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index has been analysed using panel (fixed-effects) data regression methodology over 2011–2020. Further, alternative proxies for crash risk and financial performance are adopted to ensure that the study’s initial findings are robust. Finally, the instrumental variable with the two-stage least squares (IV-2SLS) method has also been employed to alleviate endogeneity concerns.
Findings
The results suggest a significantly positive relationship between promoter share pledging and future stock price crash risk in India. Conversely, this association is significantly negative for future financial performance. Moreover, the results hold, even after including alternative proxies of stock price crash risk and financial performance and addressing endogeneity concerns.
Originality/value
Owing to the sizeable equity shareholdings of the promoters, share pledging has remained a lucrative source of finance in India. Despite the popularity, the findings of this study question the relevance of share pledging by Indian promoters considering its impact on aggravating future stock price crash risk and deteriorating future financial performance.
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Mohammed Bouaddi, Omar Farooq and Catalina Hurwitz
The aim of this paper is to document the effect of analyst coverage on the ex ante probability of stock price crash and the ex ante probability stock price jump.
Abstract
Purpose
The aim of this paper is to document the effect of analyst coverage on the ex ante probability of stock price crash and the ex ante probability stock price jump.
Design/methodology/approach
This paper uses the data of non-financial firms from France to test the arguments presented in this paper during the period between 1997 and 2019. The paper also uses flexible quadrants copulas to compute the ex ante probabilities of crashes and jumps.
Findings
The results show that the extent of analyst coverage is positively associated with the ex ante probability of crash and negatively associated with the ex ante probability of jump. The results remain qualitatively the same after several sensitivity checks. The results also show that the relationship between the extent of analyst coverage and the probability of cash and the probability of jump holds when ex post probability of stock price crash and stock price jump is used.
Originality/value
Unlike most of the earlier papers on this topic, this paper uses the ex ante probability of crash and jump. This proxy is better suited than the ones used in the prior literature because it is a forward-looking measure.
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Yue Zhang, Changjiang Zhang, Sihan Zhang, Yuqi Yang and Kai Lan
This study aims to examine the risk-resistant role of environmental, social and governance (ESG) performance in the capital market, focusing on an organizational standpoint…
Abstract
Purpose
This study aims to examine the risk-resistant role of environmental, social and governance (ESG) performance in the capital market, focusing on an organizational standpoint. Furthermore, it aims to offer management decision advice to companies seeking protection against stock market risks. Conclusions obtained through this research have the potential to enrich the economic consequences of ESG performance, provide practical implications for enhancing corporate ESG performance, improving corporate information quality and stabilizing capital market development.
Design/methodology/approach
Based on the data of Chinese A-share listed companies from 2009 to 2020, this study examines the risk-resistant function of ESG performance in the capital market. The impact of ESG performance on management behavior is analyzed from the perspective of organizational management and the three mechanisms of pre-event, during the event and post-event.
Findings
This paper demonstrates that companies that effectively implement ESG practices are capable of effectively mitigating risks associated with stock price crashes. Heterogeneity analysis reveals that the inhibitory effect of ESG performance on stock price crash risk is more pronounced in nonstate-owned enterprises and enterprises with higher levels of marketization. After controlling for issues such as endogeneity, the conclusions of this paper are still valid. The mechanism analysis indicates that ESG performance reduces the risk of stock price crash through three paths of organizational management: pre-event, during the event and post-event. That is, ESG performance plays the role of restraining managers’ opportunistic behavior, reducing information asymmetry and boosting investor sentiment.
Originality/value
This paper provides new insights into the relationship between ESG performance and stock price crash risk from an organizational management perspective. This study establishes three impact mechanisms (governance effect, information effect and insurance effect), offering a theoretical basis for strategic corporate decisions of risk management. Additionally, it comprehensively examines the contextual differences in the role of ESG performance, shedding light on the specific domains where ESG practices are influential. These findings offer valuable insights for promoting stable development in the capital market and fostering the healthy growth of the real economy.
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Ines Bouaziz Daoud and Amani Bouabdellah
This study aims to investigate the association between Corporate Social Responsibility (CSR) and tax avoidance, as well as the effect of earnings performance on this link. We…
Abstract
This study aims to investigate the association between Corporate Social Responsibility (CSR) and tax avoidance, as well as the effect of earnings performance on this link. We suggest a negative association between CSR and tax avoidance based on the Stakeholder Theory. We also suggest that earnings performance moderates this relationship. Based on a sample of 25 Tunisian firms during the years 2012–2017, data were gathered via annual reports of the companies, and a survey-questionnaire was used to gather CSR information. The research design uses ordinary least squares (OLS) regression to investigate the association between CSR and tax. In addition, the analysis is performed using panel data to account for heterogeneity at the individual level and over time. Using this research design, the study provides a comprehensive examination of the effect of CSR on tax avoidance among Tunisian companies over a 6-year period. According to our findings, companies that participate in CSR initiatives show less tax avoidance than those that do not. Moreover, in line with the Slack Resource Theory, for businesses with higher earnings, the negative link between CSR and tax avoidance is stronger. Our research demonstrates that businesses may utilize CSR to improve their standing in the community and lower the likelihood of tax avoidance. These results suggest that profitable firms may have more funds available to spend on CSR initiatives and, as a result, are more motivated to maintain a positive reputation by refraining from tax avoidance strategies.
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Hanna-Anastasiia Melnychuk, Huseyin Arasli and Raziye Nevzat
The purpose of this study is to identify the process of virtual influencer stickiness in the age of influencer marketing, which has received little attention in the literature…
Abstract
Purpose
The purpose of this study is to identify the process of virtual influencer stickiness in the age of influencer marketing, which has received little attention in the literature. This is essential because the research creates a theoretical model of follower loyalty/stickiness to virtual influencer techniques from the standpoint of influencer marketing, which has a substantial effect on the evolution of the global marketing world.
Design/methodology/approach
In 2022, 302 people who currently follow an Instafamous virtual influencer took part in an Instagram self-administered online survey.
Findings
The findings show that both expertise and trustworthiness have a positive and significant influence on parasocial interaction, which in turn has a significant influence on virtual engagement and stickiness.
Originality/value
This research will specifically assist international readers in understanding how to harness and increase the efficiency and efficacy of interactive marketing strategies and methods to engage and retain followers of Instafamous virtual influencer. Moreover, the findings will be beneficial to opinion leaders, brand managers, company investors, entrepreneurs and service designers.
Highlights
The study pioneers a holistic virtual follower stickiness mechanism that comprises the role of source credibility, parasocial interaction, informational influence and virtual follower’s engagement and their interrelationship to each other.
This study is based on parasocial interaction theory and source credibility theory to understand the relationship between virtual followers and influencers stickiness process at social media platforms.
In addition, the study examined the subsequent effects of sources of credibility components on parasocial interaction; as well as, on virtual follower engagement and stickiness.
This study also categorized and examined the moderating effects exerted by the genres of informative influence of virtual influencer.
The study pioneers a holistic virtual follower stickiness mechanism that comprises the role of source credibility, parasocial interaction, informational influence and virtual follower’s engagement and their interrelationship to each other.
This study is based on parasocial interaction theory and source credibility theory to understand the relationship between virtual followers and influencers stickiness process at social media platforms.
In addition, the study examined the subsequent effects of sources of credibility components on parasocial interaction; as well as, on virtual follower engagement and stickiness.
This study also categorized and examined the moderating effects exerted by the genres of informative influence of virtual influencer.
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Arvinder Kaur and Vikas Sharma
Today’s world is struggling with the hardship of climate change that has drastically disturbed human life, wildlife and the earth’s biological system. This study aims to show how…
Abstract
Purpose
Today’s world is struggling with the hardship of climate change that has drastically disturbed human life, wildlife and the earth’s biological system. This study aims to show how implementing climate change mitigation strategies and environmental protection measures can ensure sustainable development through collaborative efforts between governmental authorities and the nation’s populace.
Design/methodology/approach
An extensive literature review of studies is conducted from across the world concentrating on holistic, sustainable development, enabling a showcase of various conferences, action plans initiated and resolutions passed. VOSviewer software is used to quantify the results of bibliometric analysis and cluster analysis. A total of 260 research studies released between 1993 and 2022 on the Scopus platform are quantified in terms of topmost publications, collaborations among authors, citations index and year-wise publication. The search string has keywords including “climate change,” “sustainable development” and “environment protection.”
Findings
The study results revealed a steep increase in research publications in the last three years, from 2017 to 2021, which serves as the basis of the emergence of high-impact articles. The most cited document in this context throws light on assessing vulnerability to climatic risk and building adaptive capacity. It also draws attention to voluntary carbon markets’ rationale while condemning emission trading systems for climate change due to structural flaws, negative consequences and questionable emission-cutting effectiveness. Low energy demand, zero energy buildings and shared socioeconomic pathways should be implemented as strategies for sustainable development.
Practical implications
This study provides a significant opportunity to construct a valuable addition to mitigate climate change. Also, it shows a positive and significant correlation between mitigation and adaptation policies by analyzing publication efforts worldwide considering local climate risks and national adaptation mandates.
Originality/value
The originality of this study lies in its comprehensive approach, combining literature review, bibliometric analysis and cluster analysis to provide insights into current research trends, challenges and potential strategies for addressing climate change and promoting sustainable development. The study’s emphasis on the correlation between mitigation and adaptation policies adds practical significance to its findings.
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Sajeda Alhamory, Inaam Khalaf, Jafar Alasad Alshraideh, Suhair Al-Ghabeesh, Yasmeen Abu Sumaqa, Salam Bani Hani, Iyad Salameh and Hasan Abu Alruz
The purpose of this paper is to assess the level of nurses’ competencies while providing care to COVID-19 patients.
Abstract
Purpose
The purpose of this paper is to assess the level of nurses’ competencies while providing care to COVID-19 patients.
Design/methodology/approach
A descriptive, correlational design was used to collect data from nurses who were providing care to COVID-19 patients at four public hospitals.
Findings
A total of 377 nurses (64.5% females) aged 23–50 consented to participate and completed the survey. The mean score of nurses’ competencies in providing care to COVID-19 patients was 2.5 (SD = 0.81). The results of correlation coefficient tests disclosed a significant positive correlation between reported competence level and sex rpb (377) = 0.18, p < 0.01; working area rpb (377) = 0.2, p < 0.01; disaster experience rpb (377) = 0.16, p < 0.01; disaster education rpb (377) = 0.25, p < 0.01; and disaster training rpb (377) = 0.31, p < 0.01.
Research limitations/implications
The COVID-19 pandemic response heavily relied on nurses. However, they had a gap in clinical competencies that indicates an urgent need to incorporate disaster management courses in basic nursing education and to update training in hospitals based on nurses’ needs to improve their capabilities in dealing with COVID-19 pandemic.
Originality/value
To the best of the authors’ knowledge, this is the first study that investigated the perceived level of Jordanian nurses’ competencies in providing care to COVID-19.