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1 – 10 of over 58000James D. Tripp, Peppi M. Kenny and Don T. Johnson
As of 1982, federal credit unions were allowed to add select employee groups and thus create institutions with multiple-group common bonds. We examine the efficiency of single bond…
Abstract
As of 1982, federal credit unions were allowed to add select employee groups and thus create institutions with multiple-group common bonds. We examine the efficiency of single bond and multiple bond federal-chartered credit unions by using data envelopment analysis (DEA), a non-parametric, linear programming methodology. Results indicate that multiple bond credit unions have better pure technical efficiency than single bond credit unions. However, single bond credit unions appear to be more scale efficient than the multiple bond credit unions. Our results also indicate that members of multiple bond credit unions may derive greater wealth gains than members of single bond credit unions.
Richard Saito, Hsia Hua Sheng, Senichiro Koshio and Marcos Galileu de Lorena Dutra
Corporate bonds have been a major source of medium and long-term financing in Brazil. We analyze how corporate bond covenants have been used to mitigate agency costs between…
Abstract
Corporate bonds have been a major source of medium and long-term financing in Brazil. We analyze how corporate bond covenants have been used to mitigate agency costs between shareholders and bondholders. Our data includes 119 corporate bond indentures issued in Brazil from 1998 to 2001. This paper analyzes whether public investors have demanded stricter terms in corporate bond indentures. When comparing to previous studies of Anderson (1999) and of Filgueira and Leal (2001), we found empirical evidence that: (a) more bond issues with no indexed inflation features, but more floating rate interest features to match market needs; (b) no major changes for contingent maturity features; (c) loose covenants with respect to dividend and financing actions; and (d) tighter covenants regarding change in control and/or ownership and negative pledge. There is empirical evidence that the role of sponsor may partially mitigate risks borne by bondholders.
Pawan Kumar, Sanjay Taneja and Ercan Ozen
The purpose of this study to brought new dimensions by inserting market conditions and investor sentiments as independent variable measure their impact on government policy…
Abstract
Purpose
The purpose of this study to brought new dimensions by inserting market conditions and investor sentiments as independent variable measure their impact on government policy formulation and sustainable development. This research also measures the moderating effective stakeholder engagement. Previous research has focused on demystifying the relationship between green bonds and sustainable development.
Design/methodology/approach
The analysis part of the research is initiated by factor analysis on the sample size of 100. After the construction of appropriate statements matching the research objective, it was circulated to the respondents of northern region of India. The sampling technique was random in nature through which data analysis on 700 respondents was done. For meeting research objectives present research applies PLS algorithm on the conceptual model framed through review of literature.
Findings
Out of all independent variables green bond issuance is having statistically significant impact on government policy formulation and investors’ sentiment is having statistically significant impact on sustainable development. Rest all other pairs are statistically insignificant. For an investor, it is necessary to understand that how its sentiments impacts government policy formulation and the health of ecology.
Practical implications
The research produced results with management implications for practitioners and policy makers that are very significant to the fields of sustainability, green finance and environmental policy. Green bonds also influence government policy, illustrating how green financing may revolutionize environmental laws and regulations.
Social implications
The social implications of this revelation are considerable. The research enhances knowledge about sustainable development by emphasizing the importance of green bonds in supporting environmentally friendly activities. It allows for transparent reporting, increasing social accountability and reputation while attracting environmentally conscious consumers and fostering community trust. According to the survey, investor sentiment and their enthusiasm for eco-friendly investments may push more money to efforts that are good for society and the environment. This study enhances consciousness about sustainable finance, which has the potential to inspire beneficial social shifts towards a more environmentally and socially equitable future.
Originality/value
These social ramifications manifest themselves in various socioeconomic and environmental issues of the society in addition to credit and public policy. Second, it is evident that green bond emissions are influencing government policy, demonstrating the power of financial instruments to encourage environmentally beneficial social outcomes by providing officials with an incentive to modify environmental regulations.
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Relationship marketing has emerged as pivotal, aiming to bolster collaboration and reduce uncertainty for both franchisors and franchisees. However, understanding the nuanced…
Abstract
Purpose
Relationship marketing has emerged as pivotal, aiming to bolster collaboration and reduce uncertainty for both franchisors and franchisees. However, understanding the nuanced impact of relational bonding strategies – financial, social, and structural – on franchisee outcomes, particularly in South Korea’s food service industry, remains lacking. This study is an in-depth exploration of the nuanced impact of franchisors’ relational bonding strategies – structural, social, and economic – on critical franchisee outcomes in the food service industry.
Design/methodology/approach
By leveraging data from 496 franchisees in South Korea, our investigation meticulously delineates the unique contributions of these bonding strategies in enhancing franchisee’s social and economic satisfaction, building trust in franchisors and fostering long-term orientation among franchisees. This study unravels the complex mediating roles that satisfaction and trust play in the dynamic interplay between franchisors’ bonding efforts and the cultivation of enduring franchisee relationships.
Findings
The study reveals that structural, social, and economic bonding impact social satisfaction, while all relational bonding factors directly influence economic satisfaction. Structural and economic bonding influence trust in the franchisor, but social bonding does not. Economic and social satisfaction directly affect trust, and only economic satisfaction directly influences long-term orientation. Finally, trust in the franchisor positively affects long-term orientation.
Originality/value
We offer fresh insights into the strategic management of franchisor–franchisee relationships, aiming to enrich the literature on relationship marketing by highlighting the differential impacts and significance of distinct bonding strategies in promoting sustainable franchise partnerships.
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Chengli Zheng, Jiayu Jin and Liyan Han
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond…
Abstract
Purpose
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond option pricing model.
Design/methodology/approach
Describing the asset value behavior of green bond issuing enterprises through diffusion-jump processes to reflect the uncertainty brought by carbon emission reduction policies and technologies, using approximation methods to get the analytical pricing formula and then, using a fuzzification technique of Choquet expectation under λ-additive fuzzy measures after considering fuzzy factors, the paper provides fuzzy intervals for the parity coupon rates of green bonds with different subjective levels for investors.
Findings
The paper proposes and argues the classical and fuzzy option pricing methods in turn for both corporate ordinary bonds and green bonds, considering carbon risk or climate risk. It implements the scenario analysis varying with industry emission standards and discusses the sensitiveness of the related key parameters of the option.
Practical implications
The fuzzy option pricing for the green bonds provides the scope of the variable equilibrium values, operational theoretical supports and some policy implications of carbon reduction and promoting green funding.
Originality/value
The logic of introducing the fuzziness of the option pricing for the green bonds lies with considering the existence of fuzzy information about the project supported by the green bond and the subjectivity of investors and it also responds to changes in technological uncertainty and policy uncertainty in the process of “carbon peaking and carbon neutrality.”
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Bahareh Golkar, Siew Hoon Lim and Fecri Karanki
A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind…
Abstract
Purpose
A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind the ratings are not well understood. This paper examines if airport rate-setting methods affect the bond ratings of US airports.
Design/methodology/approach
Using a set of unbalanced panel data for 58 hub airports from 2010 to 2019, we examine the effect of the rate-setting methods and other airport characteristics on Fitch’s airport bond rating.
Findings
We find that compensatory airports consistently receive a very high bond rating from Fitch. The probability of getting a very high Fitch rating increases by ∼28 percentage points for a compensatory airport. Additionally, the probability of getting a very high rating is about 33 percentage points higher for a legacy hub.
Research limitations/implications
The study uses Fitch bond ratings. Future studies could examine if S&P’s and Moody’s ratings are also influenced by airport rate-setting methods and legacy hub status.
Practical implications
The results uncover the linkage between bond ratings and their determinants for US airports. This information is important for investors when assessing airport creditworthiness and for airport operators as they manage capital project financing.
Originality/value
This is the first study to evaluate the effects of rate-setting methods on airport bond rating and also the first to document a statistically significant relationship between airports’ legacy hub status and bond ratings.
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Yunshil Cha, Catherine Plante and Linda Ragland
In this study, we examine regulated public accessibility to municipalities’ financial reports and bond interest cost. In particular, we examine whether there is information…
Abstract
Purpose
In this study, we examine regulated public accessibility to municipalities’ financial reports and bond interest cost. In particular, we examine whether there is information content in a component of a constrained filing period that is useful to municipal bond market participants. The component of a filing period that we focus on is the period of time between an audit report date and a regulated public accessibility date.
Design/methodology/approach
To explore our research question, we collect a sample of observations from municipalities that: (1) are required to post annual/audit financial reports on a centralized state-level repository that includes a “transparent” date stamp on when reports are made publicly available and (2) have issued general obligation bonds. Our sample is limited to one observation per municipality. The sample period is 2006–2019. In terms of approach, we use an ordinary least square (OLS) regression model to empirically test whether the time period between municipalities’ audit report date and state-required repository filing date is associated with general obligation bond interest cost.
Findings
We find support for the idea that there is information content in a component of a constrained filing period. In particular, we hypothesize and find a positive association between the time period between an audit report date and a state filing date and general obligation bond interest cost. Seemingly, this component of time may provide something unique or not available in other components of a constrained filing period (e.g. the fiscal year-end date to the audit report date). In post hoc analyses, we also find that both components of the constrained filing period in our setting (i.e. the audit report date to state filing date and the fiscal year-end date to audit report date) need to be considered for either of the components to be significant. Moreover, although both components are necessary, the audit report date to state filing date component appears to have a slightly stronger association (in terms of statistical significance) with general obligation bond interest costs.
Research limitations/implications
To our knowledge, Illinois is the only state that provides a date stamp on when municipalities’ financial information is made publicly available on a centralized repository. As such we focus on municipalities in Illinois. While this increases the internal validity of our research, it potentially limits generalizability across other states. Also, as a reflection of the sample constraint, the number of observations in our study is relatively small. As part of post hoc analyses, we take a closer look at our sample, model and variables used to test our hypothesis.
Practical implications
For stakeholders, each component of a constrained filing period may provide unique information. For example, the time period between an audit report date and a regulated filing date may send a positive signal about the quality of financial management to investors. For regulators, requiring some sort of centralized public access to municipal financial reports that have transparent time constraints may help states provide stronger governance and help lower municipalities’ borrowing costs.
Originality/value
We use a novel approach (with the Illinois date stamp filing information) to examine our research question. Most prior research has often relied on an assumption that the time between fiscal year-end and the audit report date is the component of time that provides useful information to investors (e.g. Henke and Maher, 2016). In our setting, we explore and find that a component of a constrained filing time period (i.e. the date from an audit filing to a required public accessibility filing) may also provide impactful information to investors.
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Oguzhan Ozcelebi, Jose Perez-Montiel and Carles Manera
Might the impact of the financial stress on exchange markets be asymmetric and exposed to regime changes? Departing from the existing literature, highlighting that the domestic…
Abstract
Purpose
Might the impact of the financial stress on exchange markets be asymmetric and exposed to regime changes? Departing from the existing literature, highlighting that the domestic and foreign financial stress in terms of money market have substantial effects on exchange market, this paper aims to investigate the impacts of the bond yield spreads of three emerging countries (Mexico, Russia, and South Korea) on their exchange market pressure indices using monthly observations for the period 2010:01–2019:12. Additionally, the paper analyses the impact of bond yield spread of the US on the exchange market pressure indices of the three mentioned emerging countries. The authors hypothesized whether the negative and positive changes in the bond yield spreads have varying effects on exchange market pressure indices.
Design/methodology/approach
To address the research question, we measure the bond yield spread of the selected countries by using the interest rate spread between 10-year and 3-month treasury bills. At the same time, the exchange market pressure index is proxied by the index introduced by Desai et al. (2017). We base the empirical analysis on nonlinear vector autoregression (VAR) models and an asymmetric quantile-based approach.
Findings
The results of the impulse response functions indicate that increases/decreases in the bond yield spreads of Mexico, Russia and South Korea raise/lower their exchange market pressure, and the effects of shocks in the bond yield spreads of the US also lead to depreciation/appreciation pressures in the local currencies of the emerging countries. The quantile connectedness analysis, which allows for the role of regimes, reveals that the weights of the domestic and foreign bond yield spread in explaining variations of exchange market pressure indices are higher when exchange market pressure indices are not in a normal regime, indicating the role of extreme development conditions in the exchange market. The quantile regression model underlines that an increase in the domestic bond yield spread leads to a rise in its exchange market pressure index during all exchange market pressure periods in Mexico, and the relevant effects are valid during periods of high exchange market pressure in Russia. Our results also show that Russia differs from Mexico and South Korea in terms of the factors influencing the demand for domestic currency, and we have demonstrated the role of domestic macroeconomic and financial conditions in surpassing the effects of US financial stress. More specifically, the impacts of the domestic and foreign financial stress vary across regimes and are asymmetric.
Originality/value
This study enriches the literature on factors affecting the exchange market pressure of emerging countries. The results have significant economic implications for policymakers, indicating that the exchange market pressure index may trigger a financial crisis and economic recession.
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Ameena Arshad, Shagufta Parveen and Faisal Nawaz Mir
The global economy is growing very fast, and it is also facing environmental challenges. Due to increased economic activities, global warming is rising as a result of greenhouse…
Abstract
Purpose
The global economy is growing very fast, and it is also facing environmental challenges. Due to increased economic activities, global warming is rising as a result of greenhouse gas emissions. Concepts like green finance and green investments are emerging to battle climate issues. The present study empirically examines the impact of green bonds on carbon dioxide (CO2) emissions in developing countries, as these countries are producing 63% of CO2 emissions around the globe.
Design/methodology/approach
To check this impact, pooled ordinary least squares (OLS), fixed effect and generalized method of moments (GMM) techniques are applied using the annual data of 65 developing countries from 2008 through 2021.
Findings
The results indicate that the overall effect of green bonds on CO2 emissions is negative, as more issuance of green bonds reduces CO2 emissions, confirming results from the existing empirical literature. The study found that more foreign direct investment (FDI) and urbanization lead to more CO2 emissions, while increase in trade openness helps reduce CO2 emissions. It was found that promoting green bonds will help to promote environmentally friendly projects that will help to reduce CO2 emissions. Rapid urbanization has led to more energy demand for various industries like manufacturing, transportation and residential sectors, which leads to more CO2 emissions.
Practical implications
The policymakers in these countries should make policies that help in reducing carbon emission by increasing green bonds and FDI in supporting projects that are environmentally friendly. Therefore, to mitigate such current and future issues, policymakers in developing countries need to give serious attention to this area to fulfill sustainable development goals.
Originality/value
This study presents a pioneering examination of green bonds and CO2 emissions in 65 lower- and middle-income countries (developing countries). We have tried to cover all developing countries that are causing more greenhouse gas emissions and need to shift to green finance strategies. It will be a contribution to the body of knowledge regarding the role of green bonds in reducing CO2 emissions. The present study will help in assessing the importance of green bonds in bringing low-carbon economies.
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Muhammad Nubli Zulkifli, Fuaida Harun and Azman Jalar
This paper aims to analyze the effect of surface roughness and hardness of leadframe on the bondability of gold (Au) wedge bond using in situ inspection of laser interferometer…
Abstract
Purpose
This paper aims to analyze the effect of surface roughness and hardness of leadframe on the bondability of gold (Au) wedge bond using in situ inspection of laser interferometer and its relationship with the deformation and wire pull strength.
Design/methodology/approach
The in situ inspection of ultrasonic vibration waveform through the changes of vertical axis (y-axis) amplitude of wire bonder capillary was carried out using laser interferometer to analyze the formation of Au wedge bond. The relationship between the changes of ultrasonic waveform of capillary with the deformation and the pull strength was analyzed to evaluate the bondability of Au wedge bonds.
Findings
It was observed that the changes in vertical axis amplitude of ultrasonic vibration waveform of wire bonder capillary can be used to describe the process of bonding formation. The loss of ultrasonic energy was exhibited in ultrasonic vibration waveform of wire bonding on leadframe that has higher value of roughness (leadframe A) as compared to that of leadframe that has lower value of roughness (leadframe B). The lower pull strength obtained by Au wedge bond further confirms the reduction of bond formation because of the higher deformation on leadframe A as compared to that of leadframe B.
Originality/value
The relationship between in situ measurement using laser interferometer with the bondability or deformation and wire pull strength of Au wedge bonds on different surface roughness and hardness of leadframes is still lacking. These findings provide a valuable data in analyzing the bonding mechanisms that can be identified based on the in situ measurement of ultrasonic vibration and the bondability of Au wedge bonds.
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