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Open Access
Article
Publication date: 1 February 2024

Phuong Thi Ly Nguyen, Nha Thanh Huynh and Thanh Thanh Canh Huynh

The authors investigate how foreign investment in securities market informs about the future firm performance in emerging markets.

Abstract

Purpose

The authors investigate how foreign investment in securities market informs about the future firm performance in emerging markets.

Design/methodology/approach

The authors define the independent variable, abnormal foreign investment (AFI) as the residuals of the foreign ownership equation. The authors regress foreign ownership on its first lag and factors and define the residuals as the AFI. The AFI is the over- or under-investment reflecting foreign conscious (clear-purpose) investment, thus better indicating how foreign investment affects firm performance. The dependent variable is Tobin’s q (Q), which represents the firm performance. Then, the authors regress the Tobin’s q next quarters (Qt + k) on the AFI current quarter (AFIt). The authors use a two-step generalized method of moments (GMM) and check endogeneity with the D-GMM model for the regression.

Findings

The results show that the current AFI is positively correlated with the firm performance in each of the next four quarters (the following one year). This positive relationship is pronounced for large firms, firms with no large foreign investors, liquid firms and firms listed in the active market. The results suggest that foreign investment might choose well-productive firms already. Also, the current AFI is significantly positively correlated with stock returns in each of the next three quarters. These results suggest that the AFI is informative up to one-year period.

Research limitations/implications

The results suggest that foreign investors (most of them are small) in the Vietnamese market might choose well-productive firms already. However, if the large investors have long-term investment in tangible, intangible, human capital and so on, and lead to a significant increase in firms’ performance is still the limitation of this paper.

Practical implications

The results of this paper may guide investors whose portfolios are composed of stocks with foreign investment.

Originality/value

This paper adds to the literature to enrich the conclusion of a positive relationship between foreign ownership and firm performance.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Content available
Book part
Publication date: 5 April 2024

Abstract

Details

Essays in Honor of Subal Kumbhakar
Type: Book
ISBN: 978-1-83797-874-8

Article
Publication date: 20 March 2024

Ray Sastri, Fanglin Li, Hafiz Muhammad Naveed and Arbi Setiyawan

The COVID-19 pandemic severely impacted tourism, and the hotel and restaurant industry was the most affected sector, which faced issues related to business uncertainty and…

Abstract

Purpose

The COVID-19 pandemic severely impacted tourism, and the hotel and restaurant industry was the most affected sector, which faced issues related to business uncertainty and unemployment during the crisis. The analysis of recovery time and the influence factors is significant to support policymakers in developing an effective response and mitigating the risks associated with the tourism crisis. This study aims to investigate numerous factors affecting the recovery time of the hotel and restaurant sector after the COVID-19 crisis by using survival analysis.

Design/methodology/approach

This study uses the quarterly value added with the observation time from quarter 1 in 2020 to quarter 1 in 2023 to measure the recovery status. The recovery time refers to the number of quarters needed for the hotel and restaurant sector to get value added equal to or exceed the value added before the crisis. This study applies survival models, including lognormal regression, Weibull regression, and Cox regression, to investigate the effect of numerous factors on the hazard ratio of recovery time of hotels and restaurants after the COVID-19 crisis. This model accommodates all cases, including “recovered” and “not recovered yet” areas.

Findings

The empirical findings represented that the Cox regression model stratified by the area type fit the data well. The priority tourism areas had a longer recovery time than the non-priority areas, but they had a higher probability of recovery from a crisis of the same magnitude. The size of the regional gross domestic product, decentralization funds, multiplier effect, recovery time of transportation, and recovery time of the service sector had a significant impact on the probability of recovery.

Originality/value

This study contributes to the literature by examining the recovery time of the hotel and restaurant sector across Indonesian provinces after the COVID-19 crisis. Employing survival analysis, this study identifies the pivotal factors affecting the probability of recovery. Moreover, this study stands as a pioneer in investigating the multiplier effect of the regional tourism and its impact on the speed of recovery.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 15 January 2024

Sami R.M. Musallam

This study aims to analyze the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management after the…

Abstract

Purpose

This study aims to analyze the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management after the issuance of the Palestinian Code on Corporate Governance in Palestine.

Design/methodology/approach

This study uses a panel data of 31 Palestinian listed companies from 2010 to 2016. It also uses structural equation modeling (SEM) model.

Findings

The results of the SEM model show a significant positive relationship of the existence of risk management and the tenure-chief executive officer (CEO) with financial performance. However, CEO duality has a significant negative relationship with financial performance. The results also show a significant positive relationship of CEO duality and board size with financial performance through the existence of risk management.

Research limitations/implications

This study adds to the existing literature by analyzing the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine, one of the youngest stock exchanges in the region, which assists in testing the validity of agency theory in a young and small emerging Islamic market context.

Practical implications

The results of this paper are significant for shareholders and managers of companies to make proper choices to secure the interests of stakeholders and increase the flow of capital and foreign investment.

Originality/value

To the best of the author’s knowledge, it is one of the first papers to investigate the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine.

Details

Journal of Islamic Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 25 April 2023

Karol Moszyk and Mariusz Deja

The purpose of this paper is to investigate ways to reduce the average amount of exceeded guaranteed service time for external trucks at Deepwater Container Terminal Gdańsk Sp z…

Abstract

Purpose

The purpose of this paper is to investigate ways to reduce the average amount of exceeded guaranteed service time for external trucks at Deepwater Container Terminal Gdańsk Sp z o.o. (DCT Gdańsk) via dosing the gate activities, in particular IN-Gate entry process, of trucks carrying import/export/transit containers.

Design/methodology/approach

A Six Sigma methodology with the define, measure, analyze, improve, and Control (DMAIC) methods along with the SIPOC chart, cause and effect diagram, scatterplot, benchmark and brainstorming and finally multi-voting tool are used as analyses tools in this research.

Findings

DCT Gdańsk reorganized and modernized the gate operations. Gate reorganization and modernization include streaming line traffic at the gates, external parking lot optimization, implementation of dedicated supporting software and installation of dedicated CCTV cameras to provide 24 h live view. During gates development, the external truck service times data were collected and analysed. The obtained materials concerned the measurement of the average truck turnaround time before and after the implementation of the improvements.

Originality/value

The proposed approach of reducing the average amount of exceeded guaranteed service time of external trucks at the container terminal is unique and relatively cheap mainly due to organizational changes with some widely available low-cost investments and can be applied on a different scale to other container terminals or to transport and logistics companies.

Details

International Journal of Lean Six Sigma, vol. 14 no. 7
Type: Research Article
ISSN: 2040-4166

Keywords

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