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1 – 10 of 306Adewale Samuel Hassan and Daniel Francois Meyer
This study examines whether international tourism demand in the Visegrád countries is influenced by countries' risk rating on environmental, social and governance (ESG) factors…
Abstract
Purpose
This study examines whether international tourism demand in the Visegrád countries is influenced by countries' risk rating on environmental, social and governance (ESG) factors, as non-economic factors relating to ESG risks have been ignored by previous researches on determinants of international tourism demand.
Design/methodology/approach
The study investigates panel data for the Visegrád countries comprising the Czech Republic, Hungary, Poland and Slovakia over the period 1995–2019. Recently developed techniques of augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators are employed so as to take care of cross-sectional dependence, nonstationary residuals and possible heterogeneous slope coefficients.
Findings
The regression estimates suggest that besides economic factors, the perception of international tourists regarding ESG risk is another important determinant of international tourism demand in the Visegrád countries. The study also established that income levels in the tourists' originating countries are the most critical determinant of international tourism demand to the Visegrád countries.
Originality/value
The research outcomes of the study include the need for the Visegrád countries to direct policies towards further mitigating their ESG risks in order to improve future international tourism demand in the area. They also need to ensure exchange rate stability to prevent volatility and sudden spikes in the relative price of tourism in their countries.
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Lobna Abid, Sana Kacem and Haifa Saadaoui
This research paper aims to handle the effects of economic growth, corruption, energy consumption as well as trade openness on CO2 emissions for a sample of West African countries…
Abstract
Purpose
This research paper aims to handle the effects of economic growth, corruption, energy consumption as well as trade openness on CO2 emissions for a sample of West African countries during the period 1980 and 2018.
Design/methodology/approach
The current work uses the pooled mean group (PMG)-autoregressive distributed lag (ARDL) panel model to estimate the dynamics among the different variables used in the short and long terms.
Findings
The findings demonstrate that all variables have long-term effects. These results suggest that gross domestic product (GDP) per capita exhibits a positive and prominent effect on CO2 emissions. Corruption displays a negative and outstanding effect on long-term CO2 emissions. In contrast, energy consumption in West African countries and trade openness create environmental degradation. Contrarily to long-term results, short-term results demonstrate that economic growth, corruption and trade openness do not influence the environmental quality.
Originality/value
Empirical findings provide useful information to explore deeper and better the link between the used variables. They stand for a theoretical basis as well as an enlightening guideline for policymakers to set strategies founded on the analyzed links.
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Siti Hajar Hussein, Suhal Kusairi and Fathilah Ismail
This study aims to develop an educational tourism demand model, particularly in respect to dynamic effects, university quality (QU) and competitor countries. Educational tourism…
Abstract
Purpose
This study aims to develop an educational tourism demand model, particularly in respect to dynamic effects, university quality (QU) and competitor countries. Educational tourism has been identified as a new tourism sub-sector with high potential, and is thus expected to boost economic growth and sustainability.
Design/methodology/approach
This study reviews the literature on the determinants of educational tourism demand. Even though the existing literature is intensively discussed, mostly focusing on the educational tourism demand from an individual consumer's perspective, this study makes an innovation in line with the aggregate demand view. The study uses data that consist of the enrolment of international students from 47 home countries who studied in Malaysia from 2008 to 2017. The study utilised the dynamic panel method of analysis.
Findings
This study affirms that income per capita, educational tourism price, price of competitor countries and quality of universities based on accredited programmes and world university ranking are the determinants of educational tourism demand in both the short and the long term. Also, a dynamic effect exists in educational tourism demand.
Research limitations/implications
The results imply that government should take the quality of services for existing students, price decisions and QU into account to promote the country as a tertiary education hub and achieve sustainable development.
Originality/value
Research on the determinants of the demand for educational tourism is rare in terms of macro data, and this study includes the roles of QU, competitor countries and dynamic effects.
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Franz Eduard Toerien, John H. Hall and Leon Brümmer
This study investigates whether the disclosure of derivatives is value relevant in emerging markets and evaluates the effects of the 2008/2009 global financial crisis on the value…
Abstract
Purpose
This study investigates whether the disclosure of derivatives is value relevant in emerging markets and evaluates the effects of the 2008/2009 global financial crisis on the value relevance of derivative disclosures.
Design/methodology/approach
Panel regression models using sub-samples and a crisis interaction term were applied to a sample of the 200 largest non-financial firms by market capitalization listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2017 to assess the consequences of the financial crisis.
Findings
The results suggest that the disclosure of derivatives is value relevant in the hitherto understudied context of emerging markets. The 2008/2009 financial crisis had a significant impact on derivatives use and the value relevance of derivatives disclosure by JSE-listed companies.
Practical implications
Companies should reconsider both how they employ derivatives as part of their risk management practices and how they communicate derivatives use to stakeholders in the financial statements. The findings facilitate a comparative analysis across various market contexts by researchers and assist investors in better decision-making. The findings can influence regulatory practices and can help standard setters to review disclosure requirements.
Originality/value
The benefits of corporate hedging were studied from an emerging market perspective, using an original dataset and approach to investigate the effects of international financial volatility on emerging markets. The authors tested whether companies are valued differently, based on their disclosure of the use of derivatives in the financial statements, and the effect of the financial crisis on the value relevance derivatives disclosures.
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This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17…
Abstract
Purpose
This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17 countries in the Asia–Pacific region from 1995 to 2014.
Design/methodology/approach
This study uses the feasible generalized least squares (FGLS) approach, which is suitable since the CBI equation suffers from contemporaneous correlation, serial correlation and heteroscedasticity.
Findings
The FGLS results suggest a positive association between CBI and financial market development (FMD). This relationship is confirmed when estimating different indicators of de jure CBI and adopting the panel-corrected standard error estimate. However, the statistical significance of FMD is not supported when the ratio of domestic credit to the private sector to GDP is measured.
Research limitations/implications
It is significant to have a developed financial system to foster a better CBI. Moreover, it is important to measure the influence of financial market players on the operations of a CB.
Originality/value
The financial market in the Asia–Pacific has improved over the years. Hence, the results show the determinants of CBI in the Asia–Pacific, especially the role of FMD.
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Claudio De Moraes and André Pinto Bandeira de Mello
This work analyzes, through social-environmental reports, whether banks with higher transparency in social-environmental policies better safeguard financial stability in Brazil.
Abstract
Purpose
This work analyzes, through social-environmental reports, whether banks with higher transparency in social-environmental policies better safeguard financial stability in Brazil.
Design/methodology/approach
The analysis is carried out through a panel database analysis of the 42 largest Brazilian banks, representing 98% of the Brazilian financial system. Seeking to avoid spurious results, we followed rigorous methodological standards. Hence, we conducted an empirical analysis using a dynamic panel data model, we used the difference generalized method of moments (D-GMM) and the system generalized method of moments (S-GMM).
Findings
The results show that the higher the transparency of social-environmental policies, the lower the chance of possible stress on the financial stability of Brazilian banks. In sum, this study builds evidence that disclosing risks related to policies about sustainability can enhance financial stability. It is essential to highlight that social-environmental transparency does not have as direct objective financial stability.
Originality/value
The manuscript submitted represents an original work that analyzes whether banks with higher transparency in social-environmental policies better safeguard financial stability. Some countries, such as Brazil, have their potential for sustainable policies spotlighted due to their green territory and diverse natural ecosystems. Besides having green potential, Brazil is a developing country with a well-developed financial system. These characteristics make Brazil one of the best laboratories for studying the relationship between transparency in social-environmental policies and financial stability.
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Md Aslam Mia, Md Imran Hossain and Sunil Sangwan
Digitalization is one of the major factors that fosters economic growth across the world. However, the level of digitalization varies significantly between developed and…
Abstract
Purpose
Digitalization is one of the major factors that fosters economic growth across the world. However, the level of digitalization varies significantly between developed and developing countries, with the latter often lagging behind. To bridge this gap, it is crucial to pinpoint the drivers of digitalization, specifically from the macroeconomic and country-level governance dimensions. Therefore, this study aims to investigate the determinants of digitalization, particularly for countries in Asia and the Pacific region.
Design/methodology/approach
Our study utilizes unbalanced panel data from 46 Asian and Pacific countries for the period of 2001–2021. Initially, we analyzed the data using conventional econometric methods, such as pooled ordinary least squares (POLS), random-effects model (REM) and fixed-effects model (FEM). Moreover, we employed endogeneity-corrected techniques and alternative proxies to enhance the robustness and reliability of our findings.
Findings
Our findings reveal that economic development progress, government expenditure relative to country size and political stability are key drivers of digitalization. In contrast, corruption at the country level emerges as a significant impediment. Notably, our results remain robust to endogeneity-corrected techniques and alternative proxies of digitalization. Overall, these insights can inform policymakers, helping them to understand the macroeconomic and governance factors shaping digitalization and guide their decision-making toward effective policy interventions.
Originality/value
This study’s empirical findings add significant value to the existing literature by quantifying the impact of macroeconomic and governance factors on digitalization in selected countries. This offers valuable insights for policymakers, particularly in nations with lower levels of digitalization.
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Rosa Portela Forte and Sérgio Carvalho
The purpose of this study is to analyze the influence of the firms' external environment on their export intensity. More specifically, it assesses whether domestic market…
Abstract
Purpose
The purpose of this study is to analyze the influence of the firms' external environment on their export intensity. More specifically, it assesses whether domestic market characteristics such as domestic demand and general export environment related to tradability across borders affect firms' export intensity.
Design/methodology/approach
The authors use a sample of 29,266 firms from nine European countries, for the period of 2010–2016, and test several estimation methods (random effects models, Tobit models, and Heckman's selection models).
Findings
Results show that external factors such as domestic demand and ease of trade across borders are important determinants of firms' export intensity. Moreover, results reveal that firm's internal characteristics such as age, size and productivity also play an import role.
Originality/value
Studies about the influence of the firms' external environment on firms' export intensity are scarce because most of them are confined to a single country context. In this way, the present study contributes to the body of knowledge on the influence that external factors can have on firms' export performance by analyzing firms from nine European countries, which has important policy implications.
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Murad Harasheh, Alessandro Capocchi and Andrea Amaduzzi
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in…
Abstract
Purpose
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in mature firms. This paper investigates the role of institutional investors and the firm's innovation activity in influencing the firm's decision and ability to acquire debt capital.
Design/methodology/approach
A large sample of 700 privately-held family firms in Italy from 2010 to 2019. Two analysis techniques are used: panel analysis and path analysis. The value of debt and the debt ratio are used as leverage measures. The value of patent (as a proxy for innovation) and institutional investor are the explanatory variables.
Findings
The results show that institutional investors have no relationship with financial leverage measures except when controlling for an interaction variable (Institutional investors × Lombardy region). The patent value is positively correlated with debt; however, the ratio patent-to-asset is negatively related to financial leverage indicating higher risk exposure. The nonlinearity test demonstrates a turning point when the relationship between patent value and debt inverts.
Practical implications
Firms should monitor their innovation activity since excessive innovation increases risk exposure and affects financing opportunities and value. The involvement of institutional investors does not always enhance value.
Originality/value
Existing literature focuses separately on family firm innovations and financial leverage as outcome variables, emphasizing the role of institutional investors in both fields by adopting agency theory and socioemotional wealth framework. In this study, the authors go further by merging both relationships, investigating the dynamics of the institutional-family firm innovation relationship in influencing the firm's capital structure. The authors contribute to the ongoing debate by providing original findings on capital structure, governance and innovation, supported by rigorous methods to enhance family firms' decision-making.
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Carlos Fernando Ordóñez Vizcaíno, Cecilia Téllez Valle and Pilar Giráldez Puig
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Abstract
Purpose
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Design/methodology/approach
To address our research questions, we take into account the distance between cantons (Ecuador’s own administrative distribution) by adopting a spatial autoregressive (SAR) model. To this end, a database will be constructed with macroeconomic information about the country, broken down by canton (administrative division of Ecuador), and in a 2019 cross section, with a total of 1,331 microcredit operations in all 221 of Ecuador’s cantons.
Findings
We find a positive effect of microcredit on these neighbouring regions in terms of wealth generation.
Research limitations/implications
We acknowledge that this study is limited to Ecuadorian cantons. Nonetheless, it is crucial to emphasize that focussing on an under-represented developing country like Ecuador adds significant value to the research.
Practical implications
Facilitating access to microcredit is one of the main solutions to address the goals proposed in the sustainable development goals (SDGs).
Social implications
Microcredit activity contributes to the creation of value and wealth in Ecuador, exerting a spillover effect in neighbouring areas that can generate positive multiplier effects and alleviate poverty. For all of the above reasons, our proposal for the country is to support and promote microcredit as one of the main solutions to address the goals proposed in the SDGs.
Originality/value
The novelty of this study lies in the use of spatial econometrics to observe the indirect effects of microcredit on the regions bordering the canton in which it was issued, thus examining the spatial effects of microcredit on wealth distribution.
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