Accounting & Finance

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Now showing 1 - 5 of 94
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    Intellectual capital and corporate profitability: zooming into value added intellectual coefficient
    (Inderscience Publishers, 2022) Ting, Irene Wei Kiong; Kweh, Qian Long; Asif, Jawad; Le, Hanh Thi My
    This study examines how value-added intellectual coefficient (VAICTM) and the modified VAICTM affect corporate profitability. Using a Vietnamese corporate financial dataset of 1,624 firm-year observations for the period of 2009–2018, this study finds that intellectual capital (IC), as estimated by VAICTM and modified VAICTM, has positive impacts on corporate profitability. However, the positive association between IC and profitability is clearer in the scatterplot involving the modified VAICTM. Although VAICTM and modified VAICTM consistently suggest positive impacts of IC on corporate profitability, the components of the two show different outcomes. This study stimulates the need to further examine not only VAICTM but also other IC measurement models to help practitioners better estimate their IC for the best possible corporate profitability. Copyright © 2022 Inderscience Enterprises Ltd.
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    CEO compensation and firm performance: Evidence from financially constrained firms
    (Elsevier Ltd, 2022-10) Kweh, Qian Long; Tebourbi, Imen; Lo, Huai-Chun; Huang, Cheng-Tsu
    We examine how financial constraints affect the relationship between firm performance and the CEO compensation of U.S. listed corporations during the period 1996–2018. Our results indicate that financial constraints negatively moderate the positive relationships between firm performance and CEO compensation. That is, financially constrained firms that perform well financially will increase their CEO compensation at a smaller rate than their counterparts because financially constrained firms tend to hoard cash to save cost and safeguard for future investment, liquidity and leverage policies. However, the negative impact of financial constraints on the positive pay-performance sensitivity is more pronounced in the bonus sample. That is, financially constrained firms control bonus increments to control costs even when their firm performance improves. Overall, our results, which are robust to a battery of tests, explain why prior studies show minimal pay-performance sensitivity and the need to account for the financial constraints of a company in designing CEO compensation. © 2022 Elsevier B.V.
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    Winners and losers from Pfizer and Biontech's vaccine announcement: Evidence from S&P 500 (Sub)sector indices
    (NLM (Medline), 2022) Kapar, Burcu; Buigut, Steven; Rana, Faisal
    This study explores how the US stock market reacted to the news of a successful development of vaccine by Pfizer and Biontech on November 9, 2020. In particular, the study analyses the effect of the vaccine announcement on 11 sector indices and 79 subsector indices. A key contribution of the present study is to provide a deeper subsector level of analysis lacking in existing literature. An event study approach is applied in identifying abnormal returns due to the November 9th vaccine announcement. Several event periods (-1, 0, 1, 2, 3, 0-1, 0-3) are analysed to provide a more complete picture of the effects. Based on analysis, it is established that there are considerable inter and intra sectoral variations in the impact of the vaccine news. The results show that the impact follows a clear pattern. The sectors that were hit hardest by the pandemic such as energy, financials, as well as subsectors like hotels and casinos, benefited the most from positive vaccine news. Subsectors that gained from the pandemic such as airfreight, household appliances and computers and electronics retail were depressed the most by the news. These findings suggest that while the availability of vaccines is expected to help steer economies gradually to normalcy, the re-adjustment is likely to be asymmetric across subsectors. While some subsectors expect to expand as these industries recover from the contraction inflicted by the COVID-19 environment, other subsectors expect adjustment losses as these industries shed off the above average gains driven by the COVID-19 environment.
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    High Frequency Return and Risk Patterns in U.S. Sector ETFs during COVID-19
    (Econjournals, 2022-09-27) Gurrib, Ikhlaas; Kamalov, Firuz; Alshareif, Elgilani E.
    This study investigates intraday patterns in the eleven sectors of the United States (U.S.). Key contributions are (i) risk and return patterns at specific trading periods on the New York Stock Exchange (NYSE), (ii) whether a specific day return model can predict the next 15-min positive return, and (iii) the impact of the first vaccination rollout in the U.S. on intraday Exchange-Traded-Funds (ETF) returns. Time-dependent regressions capture risk and return relationships, decision trees in machine learning compare return models, and impulse responses capture the effect of the 2019 coronavirus (COVID-19) vaccine rollout in U.S. 15-min Standard and Poor’s Depository Receipts (SPDR) Select Sector ETF data is used over 12th March 2020-23rd February 2021. Findings support sector ETF returns fluctuate the most in the first and last 15 min. Average returns in the first 15 min are the highest, converging to near zero as the trading session continues. Overnight returns contribute the most to volatility. U-shaped patterns into both return and risk exist, especially on Mondays. Mondays and Fridays have the most significant positive returns 15 min after the open. Prediction scores using an all-return model were superior to any specific day return model. The first vaccination rollout has a positive effect only in energy, technology, and financial sector ETFs, however with a short-lasting effect on ETFs returns. © 2022, Econjournals. All rights reserved.
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    How do social and economic factors affect carbon emissions? New evidence from five ASEAN developing countries
    (Taylor and Francis Ltd., 2022) Tebourbi, Imen; Nguyen, Anh Thi Truc; Yuan, Shu-Fang; Huang, Chiung-Yu
    This study analyzes the long and short-run impacts of social and economic factors on carbon emissions from five developing ASEAN countries during the period 1986–2017. Utilising a Pooled Mean Group Estimator, we find a nonlinear relationship between CO2 emissions and real GDP, confirming the Environmental Kuznets Curve. Our results indicate that energy consumption is the main driver of environmental degradation in these countries; and that FDI and urbanisation reduce carbon emissions. Our research indicates both a long-run and short-run nexus between government education expenditures and CO2 emissions. We conclude with policy suggestions to reduce CO2 emissions while attaining sustainable growth. © 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.