The present study examines the intricate relationship between foreign direct investment (FDI), foreign debt, and economic growth over the period of 1980 to 2020 in the following countries: India, Pakistan, Sri Lanka, Bangladesh, Nepal, Maldives, and Bhutan. The analysis utilizes data obtained from the World Bank, with productive projects, improved technology and expertise, technological transfer, foreign direct investment (FDI), export, import, and productive projects serving as independent variables. GDP growth is considered as the dependent variable. The model is subjected to rigorous testing procedures, which include the Fisher-Type ADF (for panel unit root), co-integration tests, histogram-based normality assessment, White test for heteroscedasticity, VIF (variance inflation factor) test for multicollinearity, and F-test for parameter significance. These procedures are implemented to ensure the model's robustness. Subsequent analysis is guided by the Hausman test's preference for the Fixed Effects (FE) model over the Random Effects (RE) model. It is worth noting that in both the FE and RE models, a negative correlation is observed between foreign debt and economic growth. The foreign direct investment (FDI) growth rate is inversely proportional to the growth rate of economic output (0.025 percent) and foreign debt (0.117 percent), according to the FE model. The interdependence of foreign direct investment (FDI) and foreign debt underscores the criticality for developing countries to effectively manage their foreign debt while facilitating FDI inflow. The research emphasizes that policy frameworks in these nations must reduce foreign debt in order to create an environment that is favorable for greater foreign direct investment.
本研究探讨了 1980 年至 2020 年期间下列国家的外国直接投资（FDI）、外债和经济增长之间错综复杂的关系：印度、巴基斯坦、斯里兰卡、孟加拉国、尼泊尔、马尔代夫和不丹：印度、巴基斯坦、斯里兰卡、孟加拉国、尼泊尔、马尔代夫和不丹。分析利用世界银行提供的数据，以生产性项目、改进的技术和专业知识、技术转让、外国直接投资（FDI）、出口、进口和生产性项目作为自变量。国内生产总值增长被视为因变量。该模型经过了严格的检验程序，包括费雪式 ADF（面板单位根）、协整检验、基于直方图的正态性评估、异方差怀特检验、多重共线性 VIF（方差膨胀因子）检验和参数显著性 F 检验。实施这些程序是为了确保模型的稳健性。随后的分析以豪斯曼检验法为指导，即固定效应（FE）模型优于随机效应（RE）模型。值得注意的是，在 FE 和 RE 模型中，外债与经济增长之间都存在负相关关系。根据 FE 模型，外国直接投资（FDI）增长率与经济产出增长率（0.025%）和外债增长率（0.117%）成反比。外国直接投资（FDI）与外债的相互依存关系凸显了发展中国家在促进外国直接投资流入的同时有效管理外债的重要性。研究强调，这些国家的政策框架必须减少外债，以创造有利于增加外国直接投资的环境。
{"title":"FDI, Foreign Debt, and Economic Growth: The South Asian Perspective (1980-2020)","authors":"Rizwan Akhtar Jamsheed","doi":"10.52459/jowett37270124","DOIUrl":"https://doi.org/10.52459/jowett37270124","url":null,"abstract":"The present study examines the intricate relationship between foreign direct investment (FDI), foreign debt, and economic growth over the period of 1980 to 2020 in the following countries: India, Pakistan, Sri Lanka, Bangladesh, Nepal, Maldives, and Bhutan. The analysis utilizes data obtained from the World Bank, with productive projects, improved technology and expertise, technological transfer, foreign direct investment (FDI), export, import, and productive projects serving as independent variables. GDP growth is considered as the dependent variable. The model is subjected to rigorous testing procedures, which include the Fisher-Type ADF (for panel unit root), co-integration tests, histogram-based normality assessment, White test for heteroscedasticity, VIF (variance inflation factor) test for multicollinearity, and F-test for parameter significance. These procedures are implemented to ensure the model's robustness. Subsequent analysis is guided by the Hausman test's preference for the Fixed Effects (FE) model over the Random Effects (RE) model. It is worth noting that in both the FE and RE models, a negative correlation is observed between foreign debt and economic growth. The foreign direct investment (FDI) growth rate is inversely proportional to the growth rate of economic output (0.025 percent) and foreign debt (0.117 percent), according to the FE model. The interdependence of foreign direct investment (FDI) and foreign debt underscores the criticality for developing countries to effectively manage their foreign debt while facilitating FDI inflow. The research emphasizes that policy frameworks in these nations must reduce foreign debt in order to create an environment that is favorable for greater foreign direct investment.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"31 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139529729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The focus of this article is on the correlation between board diversity, financial performance, and risk. In particular, the study examines the presence of female and foreign directors on corporate boards. The research uses a sample of 15 Vietnamese listed banks during 2014-2020. The findings indicate that the number of female directors on boards does not have a significant relationship with bank performance or risk. Additionally, the study reveals a negative relationship between the presence of foreign directors and bank risk.
{"title":"Board Gender Diversity, Bank Risk and Performance: Evidence from Vietnam","authors":"L. Hong, Chau Thi Thu Ngan","doi":"10.52459/jowett36260523","DOIUrl":"https://doi.org/10.52459/jowett36260523","url":null,"abstract":"The focus of this article is on the correlation between board diversity, financial performance, and risk. In particular, the study examines the presence of female and foreign directors on corporate boards. The research uses a sample of 15 Vietnamese listed banks during 2014-2020. The findings indicate that the number of female directors on boards does not have a significant relationship with bank performance or risk. Additionally, the study reveals a negative relationship between the presence of foreign directors and bank risk.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121733173","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this research was to examine how corporate governance methods relate to the performance of companies in Vietnam. The study used a dataset of 85 manufacturing firms listed on the Ho Chi Minh City stock exchange (HOSE) and applied Random-Effect Model (REM) and the Feasible Generalized Least Squares Model (FGLS) method. We found that the performance of a firm is positively influenced by a CEO's age, and gender diversity in boards of directors (BOD). However, firm size and board size have a negative impact on firm performance. The research recommends that companies should not increase board size. Additionally, promoting women executives in the boardroom can bring cultural diversity benefits and reduce information asymmetry. Based on the findings, the research proposes several recommendations for companies and managers to improve performance and reduce the negative effects of poor governance mechanisms.
{"title":"Corporate Governance, Firm Characteristics and Firm Performance: Empirical Evidence from Vietnam.","authors":"Theang Ho","doi":"10.52459/jowett36250423","DOIUrl":"https://doi.org/10.52459/jowett36250423","url":null,"abstract":"The purpose of this research was to examine how corporate governance methods relate to the performance of companies in Vietnam. The study used a dataset of 85 manufacturing firms listed on the Ho Chi Minh City stock exchange (HOSE) and applied Random-Effect Model (REM) and the Feasible Generalized Least Squares Model (FGLS) method. We found that the performance of a firm is positively influenced by a CEO's age, and gender diversity in boards of directors (BOD). However, firm size and board size have a negative impact on firm performance. The research recommends that companies should not increase board size. Additionally, promoting women executives in the boardroom can bring cultural diversity benefits and reduce information asymmetry. Based on the findings, the research proposes several recommendations for companies and managers to improve performance and reduce the negative effects of poor governance mechanisms.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132828354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper is dedicated to specific research on the information and communications technologies (ICT) sector, where the variables determine labour demand in the European Union (EU) and Türkiye. The research aims to clarify the relationships between employment-generating firm growth that represents labour demand and the independent variables identified by the authors. For this purpose, our method analyses the factors affecting labour demand econometrically. In the study, a panel data set of 22 countries, including 21 EU countries and Türkiye, is used for the period of 2014-2019. The results show that there is a positive and significant relationship between employment in the ICT sector and real gross domestic product (GDP) per capita and frequency of internet use. In addition, the results show that the relationship between employment and wage level in the ICT sector is negative and significant. According to the results obtained from the Fixed Effects (FE) model, the elasticity coefficients of the independent variables in the model present for wages (1.53), GDP per capita (3.27) and frequency of internet use (1.60). Finally, we have discussed the results estimated by the Shadow Variable Least Squares (LSDV) method to measure the impact of each country on the overall variability in employment level. As a result of the study, when labour demand is associated with firm employment increase, the countries in the target geography where a significant and positive relationship was found are Belgium, Bulgaria, Croatia, Czechia, Estonia, Finland, Germany, Hungary, Italy, Latvia, Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Sweden, and Türkiye.
{"title":"Labour Demand Analysis in the ICT Sector: EU Countries and Türkiye","authors":"D. Şişman, M. Şi̇şman, Ahmet Hamdi Yanik","doi":"10.52459/jowett36240323","DOIUrl":"https://doi.org/10.52459/jowett36240323","url":null,"abstract":"This paper is dedicated to specific research on the information and communications technologies (ICT) sector, where the variables determine labour demand in the European Union (EU) and Türkiye. The research aims to clarify the relationships between employment-generating firm growth that represents labour demand and the independent variables identified by the authors. For this purpose, our method analyses the factors affecting labour demand econometrically. In the study, a panel data set of 22 countries, including 21 EU countries and Türkiye, is used for the period of 2014-2019. The results show that there is a positive and significant relationship between employment in the ICT sector and real gross domestic product (GDP) per capita and frequency of internet use. In addition, the results show that the relationship between employment and wage level in the ICT sector is negative and significant. According to the results obtained from the Fixed Effects (FE) model, the elasticity coefficients of the independent variables in the model present for wages (1.53), GDP per capita (3.27) and frequency of internet use (1.60). Finally, we have discussed the results estimated by the Shadow Variable Least Squares (LSDV) method to measure the impact of each country on the overall variability in employment level. As a result of the study, when labour demand is associated with firm employment increase, the countries in the target geography where a significant and positive relationship was found are Belgium, Bulgaria, Croatia, Czechia, Estonia, Finland, Germany, Hungary, Italy, Latvia, Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Sweden, and Türkiye.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114915820","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Investment Decision Making (IDM) is closely related to the important role of stocks in the national economy. Investment decision-making becomes a research topic that is studied by researchers with various research designs. However, through initial observations, it was found many theoretical frameworks define investment decision-making. This article aims to define stock investment decision making including theoretical frameworks and their paired variables. A Systematic Literature Review (SLR) with data analysis using excel and NVivo 12 was employed as the research method. Accordingly, the results show that various definitions of IDM were used by researchers and most of which define it as IDM rational activity with varied underlying theories that were mostly based on the bounded rationality theory and determined by their paired variables.
{"title":"Defining Investment Decision Making in the Stock Market: A Literature Review","authors":"H. Musfidah, Tony Seno Aji, U. Hartono","doi":"10.52459/jowett25231222","DOIUrl":"https://doi.org/10.52459/jowett25231222","url":null,"abstract":"Investment Decision Making (IDM) is closely related to the important role of stocks in the national economy. Investment decision-making becomes a research topic that is studied by researchers with various research designs. However, through initial observations, it was found many theoretical frameworks define investment decision-making. This article aims to define stock investment decision making including theoretical frameworks and their paired variables. A Systematic Literature Review (SLR) with data analysis using excel and NVivo 12 was employed as the research method. Accordingly, the results show that various definitions of IDM were used by researchers and most of which define it as IDM rational activity with varied underlying theories that were mostly based on the bounded rationality theory and determined by their paired variables.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"272 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132023210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to analyse green Public-Private Partnerships (PPPs) as an instrument to contribute to sustainable development. The research of the green PPPs in their international context and the innovative mechanisms for their financial support and implementation is made through a review of their role in the global sustainable development agenda and the policy of the European Union as well as a survey of several case studies. The conceptual framework contains the theoretical background of green PPPs as innovative investment solutions, and the discussion of the results is presented afterwards. The author gives recommendations for overcoming the challenges of the green economy, especially the perception of the collaboration between the private and public sectors in accomplishing the Sustainable Development Goals (SDGs). Particular attention is paid to the new dimensions of cooperation as one of the key factors for achieving better socio-economic and environmental conditions.
{"title":"Green Public-Private Partnerships (PPPs) as an Instrument for Sustainable Development","authors":"Antoaneta Vassileva","doi":"10.52459/jowett25221122","DOIUrl":"https://doi.org/10.52459/jowett25221122","url":null,"abstract":"The purpose of this paper is to analyse green Public-Private Partnerships (PPPs) as an instrument to contribute to sustainable development. The research of the green PPPs in their international context and the innovative mechanisms for their financial support and implementation is made through a review of their role in the global sustainable development agenda and the policy of the European Union as well as a survey of several case studies. The conceptual framework contains the theoretical background of green PPPs as innovative investment solutions, and the discussion of the results is presented afterwards. The author gives recommendations for overcoming the challenges of the green economy, especially the perception of the collaboration between the private and public sectors in accomplishing the Sustainable Development Goals (SDGs). Particular attention is paid to the new dimensions of cooperation as one of the key factors for achieving better socio-economic and environmental conditions.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126911225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Profitability shows the managerial ability to generate profits for the company. A high level of profitability gives a signal to investors about the company's better prospects in the future, thereby attracting investors and ultimately increasing stock prices. Managerial ownership also shows investors that managers are concerned about the company's development, so investors will assume that managers will work better if they are also shareholders. Meanwhile, the audit committee is in charge of internal supervision for the company. This study analyses profitability, managerial ownership, and audit committee to stock return in Indonesian commercial banks during the Covid-19 pandemic. The population of this study is companies in the banking sector listed on the Indonesia Stock Exchange from 2018 to 2020. Sampling was done through the purposive sampling technique, thus obtaining 44 companies as research samples. The analysis technique used multiple linear analyses. The results of this study indicate that profitability has a significant negative effect on stock returns. It could have happened due to the COVID-19 pandemic in 2020, which caused all stocks to drop drastically. In contrast, managerial ownership and the audit committee have no partial effect on stock returns because managerial ownership has a minimal influence. So, it is considered less effective in influencing administrative actions in decision making and the audit committee, which does not affect whichever several auditors will not affect the company's performance through the total assets or profits that the company will obtain. This study implies that, during the COVID-19 pandemic, the variables studied have a minimal effect on stock returns because psychological factors influence stock prices in the form of investor panic, which makes banking sector stocks have low and even negative returns.
{"title":"Profitability, Managerial Ownership, and Audit Committee on Stock Returns in Indonesian Commercial Banks","authors":"Sri Utami Ady, Masrurahtul Ainie Zaman","doi":"10.52459/jowett25211122","DOIUrl":"https://doi.org/10.52459/jowett25211122","url":null,"abstract":"Profitability shows the managerial ability to generate profits for the company. A high level of profitability gives a signal to investors about the company's better prospects in the future, thereby attracting investors and ultimately increasing stock prices. Managerial ownership also shows investors that managers are concerned about the company's development, so investors will assume that managers will work better if they are also shareholders. Meanwhile, the audit committee is in charge of internal supervision for the company. This study analyses profitability, managerial ownership, and audit committee to stock return in Indonesian commercial banks during the Covid-19 pandemic. The population of this study is companies in the banking sector listed on the Indonesia Stock Exchange from 2018 to 2020. Sampling was done through the purposive sampling technique, thus obtaining 44 companies as research samples. The analysis technique used multiple linear analyses. The results of this study indicate that profitability has a significant negative effect on stock returns. It could have happened due to the COVID-19 pandemic in 2020, which caused all stocks to drop drastically. In contrast, managerial ownership and the audit committee have no partial effect on stock returns because managerial ownership has a minimal influence. So, it is considered less effective in influencing administrative actions in decision making and the audit committee, which does not affect whichever several auditors will not affect the company's performance through the total assets or profits that the company will obtain. This study implies that, during the COVID-19 pandemic, the variables studied have a minimal effect on stock returns because psychological factors influence stock prices in the form of investor panic, which makes banking sector stocks have low and even negative returns.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132218627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Izzat Mohamed, Muhammad Hakimi Mohd Shafiai, Mohd Haziqi Hilmi
In various efforts to strengthen the agro-food sector, development on idle land is one of the keys to achieving it. Neglect of idle land is a waste that needs to be well managed to mobilize all resources properly and produce crop yields to the maximum level. Therefore, this paper will discuss the factors that lead to the occurrence of idle land and finds a solution from a Malaysian perspective. Referring to this problem, it is seen, through the institutional approach, that it is capable of being one of the best alternatives because institutions are a set of rules that affect human economic life. Through an institutional approach, it can apply the ZISWaf management recommended by previous Islamic scholars divided into four schemes to activate idle agricultural land with proper coordination. This paper is using qualitative methods based on data and information from the literature review and then it is analysed based on a deductive approach. As a result, the ZISWaf institutional approach can realize the concept of implementing the agro-food Waqf institution to solve the issue of idle land.
{"title":"ZISWaF Institutional Approach to Activate Idle Agricultural Land as a Catalyst for the Agro-Food Sector in Malaysia","authors":"Muhammad Izzat Mohamed, Muhammad Hakimi Mohd Shafiai, Mohd Haziqi Hilmi","doi":"10.52459/jowett25201122","DOIUrl":"https://doi.org/10.52459/jowett25201122","url":null,"abstract":"In various efforts to strengthen the agro-food sector, development on idle land is one of the keys to achieving it. Neglect of idle land is a waste that needs to be well managed to mobilize all resources properly and produce crop yields to the maximum level. Therefore, this paper will discuss the factors that lead to the occurrence of idle land and finds a solution from a Malaysian perspective. Referring to this problem, it is seen, through the institutional approach, that it is capable of being one of the best alternatives because institutions are a set of rules that affect human economic life. Through an institutional approach, it can apply the ZISWaf management recommended by previous Islamic scholars divided into four schemes to activate idle agricultural land with proper coordination. This paper is using qualitative methods based on data and information from the literature review and then it is analysed based on a deductive approach. As a result, the ZISWaf institutional approach can realize the concept of implementing the agro-food Waqf institution to solve the issue of idle land.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127987733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The research aims to determine the impact of the board characteristics on the firm performance for 348 firms of the National Stock Exchange (NSE) 500 Index listed on the National Stock Exchange of India for the period 2012-2018 using (OLS) Ordinary Least Square (FEM) Fixed Effect Model and more robust (GMM) Generalized Method of Moments regression techniques. GMM regression technique also controls for the endogeneity as well as heteroscedasticity and heterogeneity in panel data. Further, the moderating effects of market capitalization are also observed considering the impact of board characteristics on the firm performance using the interaction effects technique. Lastly, the ideal board size was determined based on the classification of market capitalization including small, mid and large market cap. Board characteristics including board size and percentage of shares held by the promoters have a positive significant impact on the firm performance while the percentage of shares pledged by the promoters has a negative significant impact on the firm performance. The results show that market capitalization moderates the relationship between board characteristics and firm performance. Findings also suggest an ideal board size of 8 for mid-cap firms and a range of 7-18 for large-cap firms which show a similar result to the Kotak Committee Report (2017) recommendations with the ideal board size being a minimum of 6 directors on the board. The results cannot be generalized as only the manufacturing and services (excluding financial) industries are taken into account, but the results can be applied to the abovesaid industry sectors.
{"title":"Board Characteristics Impact on the Firm Performance in the Indian Context","authors":"Hamza Naim, Tariq Aziz","doi":"10.52459/jowett25191022","DOIUrl":"https://doi.org/10.52459/jowett25191022","url":null,"abstract":"The research aims to determine the impact of the board characteristics on the firm performance for 348 firms of the National Stock Exchange (NSE) 500 Index listed on the National Stock Exchange of India for the period 2012-2018 using (OLS) Ordinary Least Square (FEM) Fixed Effect Model and more robust (GMM) Generalized Method of Moments regression techniques. GMM regression technique also controls for the endogeneity as well as heteroscedasticity and heterogeneity in panel data. Further, the moderating effects of market capitalization are also observed considering the impact of board characteristics on the firm performance using the interaction effects technique. Lastly, the ideal board size was determined based on the classification of market capitalization including small, mid and large market cap. Board characteristics including board size and percentage of shares held by the promoters have a positive significant impact on the firm performance while the percentage of shares pledged by the promoters has a negative significant impact on the firm performance. The results show that market capitalization moderates the relationship between board characteristics and firm performance. Findings also suggest an ideal board size of 8 for mid-cap firms and a range of 7-18 for large-cap firms which show a similar result to the Kotak Committee Report (2017) recommendations with the ideal board size being a minimum of 6 directors on the board. The results cannot be generalized as only the manufacturing and services (excluding financial) industries are taken into account, but the results can be applied to the abovesaid industry sectors.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124920524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The covid-19 Pandemic has made many people work from home to have much time to trade in the capital market. Through the "Yuk Nabung Saham” program, Indonesia Stock Exchange (IDX) tries to introduce the capital market to young investors through a partnership with the university. This study aimed to analyze the effect of demographic variables (age, gender, and experience) on investment decision-making through risk perceptions and risk attitudes in the Indonesia Stock Exchange under the Covid-19 pandemic pressure. Used SEM-PLS analysis with Mediation effects, 160 Surabaya’s Investors as respondents analyzed. This study showed that age, gender, and experience affect investment decision-making through risk perception and risk attitude. In the Covid-19 pandemic, market conditions were very dynamic and erratic, resulting in investors' perceptions and risk attitudes changing, thus changing their behaviour to become more speculative and reactive to take advantage of the market. Students’ respondents were currently young investors who may not yet have mature financial capabilities, so they had behaviour with a high psychological bias. But in the next ten years, these investors would have grown into professional investors who strengthened the Indonesia Stock Exchange.
{"title":"Investment Decision-Making under Covid-19 Pandemic Pressure Based on Demographic Variables","authors":"Mohammad Tomi Adi Surya, Sri Utami Ady","doi":"10.52459/jowett24180922","DOIUrl":"https://doi.org/10.52459/jowett24180922","url":null,"abstract":"The covid-19 Pandemic has made many people work from home to have much time to trade in the capital market. Through the \"Yuk Nabung Saham” program, Indonesia Stock Exchange (IDX) tries to introduce the capital market to young investors through a partnership with the university. This study aimed to analyze the effect of demographic variables (age, gender, and experience) on investment decision-making through risk perceptions and risk attitudes in the Indonesia Stock Exchange under the Covid-19 pandemic pressure. Used SEM-PLS analysis with Mediation effects, 160 Surabaya’s Investors as respondents analyzed. This study showed that age, gender, and experience affect investment decision-making through risk perception and risk attitude. In the Covid-19 pandemic, market conditions were very dynamic and erratic, resulting in investors' perceptions and risk attitudes changing, thus changing their behaviour to become more speculative and reactive to take advantage of the market. Students’ respondents were currently young investors who may not yet have mature financial capabilities, so they had behaviour with a high psychological bias. But in the next ten years, these investors would have grown into professional investors who strengthened the Indonesia Stock Exchange.","PeriodicalId":345637,"journal":{"name":"Journal of World Economy: Transformations & Transitions","volume":"66 3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129315294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：