Accounting & Finance

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Now showing 1 - 20 of 107
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    The roles of innovation and internationalisation in explaining dynamic business performance
    (Inderscience Publishers, 2023) Wang, Wei-Kang; Tebourbi, Imen; Kweh, Qian Long; Li, Cheng-Che
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    CEO Greed and Firms' Environmental Performance in Environmentally Sensitive Sectors of China
    (IGI Global, 2023) Saif-Ur-Rehman; Elshareif, Elgiliani; Khan, Hashim
    In the current study, the authors explored how CEO greed concerning bonuses and rewards on restricted stock affects a firm's environmental performance (EP) in environmentally sensitive sectors of China. Moreover, they empirically tested the constraining role of the quad director on the relationship between CEO greed and EP. Findings indicate that (a) CEO greed negatively affects the strategic firm's environmental performance, particularly the negative relation is augmented by the person-pay interactionism rationale (bonus), (b) the presence of one quad director in the board does not constrain CEO greed and EP negative relation, and (c) the presence of two or more quad directors in the board significantly constraints the negative relation between CEO greed and EP. Thus, having at least two quad directors is more effective than combining directors with multiple features. Our results are robust to different CEOs' power dynamics. Our research has important practical implications for corporate governance and business strategy formulation. © 2023 IGI Global. All rights reserved.
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    Innovation and Firm Performance: The Moderating Role of Intellectual Capital among Chinese Companies
    (Penerbit Universiti Sains Malaysia, 2023-06-22) Ren, Chunya; Ting, Irene Wei Kiong; Kweh, Qian Long; Zhang, Cheng
    This study examines the impact of innovation on firm performance and how intellectual capital (IC) moderates the association between innovation and firm performance. We apply an innovation index that measures the frequency of innovative related words, which appear in firm financial reports to proxy for innovation. IC is estimated through the value-added IC (VAIC™) model. This study analyses Chinese firm-year observations of financial profitability (firm value) datasets, which total 19,152 (18,276) over the years from 2007 to 2019. Results indicate that the innovation index is positively related to financial profitability and firm market value. Moreover, the moderating outcomes suggest that IC boosts the positive relationship between innovation index and firm performance. Overall, this study highlights the importance of having innovation and IC together for gaining firm competitive advantages and progressing profitably. That is, firms should be innovative and must manage their IC well. © Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2023.
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    CEO power, corporate governance mechanisms and earnings quality
    (Penerbit Universiti Sains Malaysia, 2023-06-22) Hemdan, Dalia Ali Mostafa; Saif-Ur-rehman; Khan, Faisal
    This paper investigated the determinants of the firm’s earnings quality (FREQ) using panel data of Egyptian listed firms to address the concerns of endogeneity and heterogeneity. We found that CEO power dynamics negatively impact FREQ. Furthermore, corporate governance’s weakening or substitution role is investigated for the negative association between CEO power dynamics and FREQ. Our findings showed that board-independence significantly weakens the impacts of CEO-ownership and CEO-tenure on FREQ. In contrast, the results fail to support the weakening or substitution role of board-independence for the negative effects of CEO-duality and CEO-political connection on FREQ. Board gender diversity is not significantly associated with FREQ. However, we found that the presence of gender critical mass serves as a substitution mechanism for the negative association between CEO power dynamics and FREQ. Lastly, we observed strong robustness for our primary analysis through propensity matching scores and difference-in-different (DID) techniques. This study brings a novelty to existing research by exploring the negative consequences of CEO power dynamics. Furthermore, it provides an insight into the constraining or weakening of the role of corporate governance. The main findings of the current study are also robust to Modified Jones model (1995) reverse-causality, DID and propensity-matching techniques. © Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2023.
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    Performance of Equity Investments in Sustainable Environmental Markets
    (MDPI, 2023-05) Gurrib, Ikhlaas; Kamalov, Firuz; Starkova, Olga; Makki, Adham; Mirchandani, Anita; Gupta, Namrata
    Despite a significant increase in global clean energy investments, as part of the decarbonization process, it remains insufficient to meet the demand for energy services in a sustainable manner. This study investigates the performance of sustainable energy equity investments, with focus on environmental markets, using monthly equity index data from 31 August 2009 to 30 December 2022. The main contributions of our study are (i) assessment of the performance of trading strategies based on the trend, momentum, and volatility of Environmental Opportunities (EO) and Environmental Technologies (ET) equity indices; and (ii) comparison of the performance of sustainable equity index investments to fossil fuel-based and major global equity indices. Market performance evaluation based on technical analysis tools such as the Relative Strength Index (RSI), Moving Averages, and Average True Range (ATR) is captured through the Sharpe and the Sharpe per trade. The analysis is divided according to regional, sector, and global EO indices, fossil fuel-based indices, and the key global stock market indices. Our findings reveal that a momentum-based strategy performed best for the MSCI Global Alternative Energy index with the highest excess return per unit of risk, followed by the fossil fuel-based indices. A trend-based strategy worked best for the MSCI Global Alternative Energy and EO 100 indices. The use of volatility-based information yielded the highest Sharpe ratio for EO Europe, followed by the Oil and Gas Exploration and Production industry, and MSCI Global Alternative Energy. We further find that a trader relying on a system which simultaneously provides momentum, trend, or volatility information would yield positive returns only for the MSCI Global Alternative Energy, the S&P Oil and Exploration and Production industry, NYSE Arca Oil, and FTSE 100 indices. Overall, despite the superior performance of the MSCI Global Alternative Energy index when using momentum and trend strategies, most region and sector EOs performed poorly compared to fossil fuel-based indices. The results suggest that the existing crude oil prices continue to allow fossil fuel-based equity investments to outperform most environmentally sustainable equity investments. These findings support that sustainable investments, on average, have yet to demonstrate consistent superior performance over non-renewable energy investments which demonstrates the need for continued, rigorous, and accommodating regulatory policy actions from government bodies in order to reorient significant capital flows towards sustainable equity investments. © 2023 by the authors.
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    Using hierarchical network data envelopment analysis to explore the performance of national research and development organizations
    (Elsevier Ltd, 2023-12-30) Chou, Han-Chung; Lu, Wen-Min; Kweh, Qian Long; Tsai, Chang-Yan
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    Intellectual capital and corporate performance in Malaysia: exploring nonlinearity and synergy effects
    (World Scientific, 2023) Asif, Jawad; Ting, Irene Wei Kiong; Lean, Hooi Hooi; Kweh, Qian Long
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    Intellectual capital and firm performance: The moderating effect of controlling shareholders in Malaysia
    (Inderscience Publishers, 2022) Ting, Irene Wei Kiong; Asif, Jawad; Kweh, Qian Long; Tebourbi, Imen
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    The Behavioural Aspects of Financial Literacy
    (Multidisciplinary Digital Publishing Institute (MDPI), 2021-09) Gerth, Florian; Lopez, Katia; Reddy, Krishna; Ramiah, Vikash; Wallace, Damien; Muschert, Glenn; Frino, Alex; Jooste, Leonie
    In this paper, we investigate the contribution of behavioural characteristics to the financial literacy of UAE residents after controlling for demographic factors. Specifically, we test the relationship between financial literacy and behavioural biases such as representativeness, self-serving, overconfidence, loss aversion, and hindsight bias. Using data collected through survey questionnaires, we apply the methodology developed by the Organization of Economic Co-operation and Development (OECD) to compute financial literacy scores. Our overall results show that all behavioural biases except for overconfidence bias are positively related to financial literacy. Furthermore, some biases exhibit a stronger quantitative relationship with financial literacy than others. For example, hindsight bias displays the strongest link to financial literacy, followed by self-serving bias. The weakest but still statistically significant effect is loss aversion bias. Although biases, in general, have negative connotations, behavioural biases appear to be related to higher levels of financial literacy. © 2021 by the authors.
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    Family control, R&D expenses and firm efficiency: evidence from Taiwanese cultural and creative industries
    (Emerald Publishing, 2023) Kweh, Qian Long; Le, Hanh Thi My; Ting, Irene Wei Kiong; Lu, Wen-Min
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    Industry 4.0 adoption and firm efficiency : evidence from emerging Giants in Asia Pacific region
    (Associacao Brasileira de Engenharia de Producao, 2023) Rehman, Saif Ur
    Purpose - Industry 4.0 links smart production processes with embedded system production technologies to open the door to a new technological era that fundamentally alters industry value chains and business structures. This study examines the effects of Industry 4.0 on firm efficiency. Methods - Based on a cross-country sample of 1440 firms operating in the top twelve Giants of Asia-Pacific countries and a control sample with another set of 1440 similar-sized firms from non-adopting firms. Findings - The empirical evidence shows that Industry 4.0 positively impacts firm efficiency. Next, the Tobit model is used for the robustness of the main findings. Further, study also examine the mediating role of intangible assets (human capital and firm reputation) for the impact of Industry 4.0 on firm efficiency. Study findings support the hypotheses that intangible assets mediate the Industry 4.0-firm efficiency relationship. Implications - Study findings have managerial implications for production and operation managers on enhancing firm efficiency. Drawing upon practice-based-view theory, this study is the first to explore the mediating role of intangible assets (human capital and firm reputation) between in-Industry 4.0 and firm performance. Originality - This study shed light on the significance of intangible asset congruence in enhancing Industry 4.0 impact. Copyright (c) 2023 Saif Ur Rehman
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    COVID-19, Short-selling Ban and Energy Stock Prices
    (Asia-Pacific Applied Economics Association, 2020) Gurrib, Ikhlaas; Kweh, Qian Long; Contu, Davide; Kamalov, Firuz
    We examine the short-selling ban imposed by the National Commission for Companies and the Stock Exchange of Italy, the authority that regulates the Italian securities market, on three Italian energy stocks. We find that the effect of the short-selling ban was temporary. © 2020, Asia-Pacific Applied Economics Association. All rights reserved.
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    Intellectual Capital Investment and Firm Performance of the Malaysian Energy Sector: A New Perspective From a Nonlinearity Test
    (Asia-Pacific Applied Economics Association, 2020) Asif, Jawad; Ting, Irene Wei Kiong; Kweh, Qian Long
    This study examines the association between intellectual capital investment and firm performance of the Malaysian energy sector. A non-linear relationship between intellectual capital investment and firm performance is established. At low levels of intellectual capital investment, increasing investments in intellectual capital improve firm performance. After a cut-off point, increments to intellectual capital investment reduce firm performance. © 2020, Asia-Pacific Applied Economics Association. All rights reserved.
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    How did Brexit impact EU trade? Evidence from real data
    (John Wiley and Sons Inc, 2023-06) Buigut, Steven; Kapar, Burcu
    At the time it voted to exit in 2016, the UK was a leading economy within the EU. It contributed about 16 percent of the EU GDP, while the other EU countries accounted for almost half of UK's total trade. This study attempts to answer two research questions: First, how Brexit affected the EU–UK trade and second, how it affected the trade between remaining 27 EU members. To answer these questions, quarterly data are exploited for the period from 2005Q1 to 2022Q3 covering a total of 53 trading partners including the EU members. A gravity model that controls for unobserved bilateral heterogeneity and multilateral resistance is estimated by PPML. Three phases of Brexit (the referendum, transition, and post transition [under the TCA]) are analysed. The results indicate that the Brexit referendum phase depressed UK–EU trade by around 10.5%, and transition phase by around 15%. In both cases, particularly for the transition phase, the effect is greater on the UK imports from EU than the UK exports to EU. We do not find a significant effect due to the post transition (TCA) phase. Estimates show some mild but positive effect on intra-EU trade of about 1.5% and 4.6% due to Brexit referendum and post Brexit respectively, but no significant effect from the transition phase. This suggests that some EU trade with the UK was redirected to other EU members. Hence UK should aggressively seek out new trade agreements with other countries and trade blocs as well as refine the workings of the trade and cooperation agreement signed with the EU to minimise the loss. © 2023 The Authors. The World Economy published by John Wiley & Sons Ltd.
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    Environmental initiatives: impact on firm wealth creation
    (Inderscience Publishers, 2022) Kumar, Rajesh B.; Sujit K.S.; Gurrib, Ikhlaas
    This study investigates the impact of environmental initiatives adopted by firms on wealth creation. A sample consisting primarily of 4886 developed and emerging market firms from Thomson Reuters ESG database is used for the study. Findings support that firms from emerging market had higher use of resources and emission reduction efficiency than the developed counterparts. Environmental initiatives were higher for polluting firms compared to non-polluting firms. Non-health sectors had higher environmental initiatives like efficient use of resources, emission reduction and innovation strategies targeted towards the reduction of environmental costs. Food sector had higher environmental initiatives compared to the non-food sector. Firms from sin industries had positive market valuation effects. Using regression analysis, our study examines the impact of environmental initiatives on three models of performance. The study suggests that environmental initiatives to reduce environmental emissions and activities targeted at environmental innovation are not value enhancing activities for entities. Empirical findings supporting that environmental initiatives do not lead to improved financial performance lead to have implications for managers and policy makers. With markets not perceiving environmental initiatives as value creating activities by firms, actions targeted towards emission reduction, adoption of environmental innovation strategies and resource efficiency are not positively viewed by markets. Copyright © 2022 Inderscience Enterprises Ltd.
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    CEO duality, board size and firm performance: evidence in Vietnam
    (Inderscience Publishers, 2023) Le, Hanh Thi My; Ting, Irene Wei Kiong; Kweh, Qian Long; Ngo, Ha Lam Tan
    From the perspective of the agency and stewardship theories for explaining the relationship between corporate governance and firm performance, this study examines the impacts of CEO duality and board size on the firm performance. We assess the association between CEO duality, board size and firm performance of top 200 companies listed on the Vietnam Stock Exchange (VSE) over 2014-2015. Our findings show that: 1) CEO duality limits the monitoring function of the board, and a large board size promotes dominance and power of leaders that create more conflicts; 2) the number of executive directors in the top management positively influences firm performance. Findings of our study certainly help policymakers and other stakeholders understand the relationship between CEO duality, board size and firm performance. Overall, this study highlights the CEO duality and the relationship of board size and firm performance in a nation with less protection of minority shareholders.
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    The moderating effects of power distance on corporate social responsibility and multinational enterprises performance
    (Springer Science and Business Media Deutschland GmbH, 2023-10) Le, Minh-Hieu; Lu, Wen-Min; Kweh, Qian Long
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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.