Pub Date : 2023-06-02DOI: 10.1108/jeas-10-2022-0235
Souad Nassir, Imane Lebdaoui, Youssef Chetioui, Hind Lebdaoui
PurposeDespite the digitalization reforms attempting to enhance public service quality, paper-based tendering is still widely used in a number of developing countries (i.e. Morocco). This has led to many issues including waste of time, higher costs as well as labor-intensive issues. E-tendering has been widely recommended as a key resolution. Still, both scholars and practitioners raised concerns related the readiness of small and medium enterprises (SMEs) to this digitalization process. The current research aims to investigate the key drivers of SMEs intention to adopt electronic tendering in the context of an emerging African market (i.e. Morocco). Specifically, the authors focus on SMEs contributing to the public procurement process and registered in the online portal recently created by the Moroccan government.Design/methodology/approachTo achieve this goal, the authors proposed a conceptual model combining the unified theory of acceptance and use of technology (UTAUT) and technology acceptance model (TAM). Based on data collected from suppliers participating in Moroccan public tenders, the authors empirically tested the conceptual model using a partial least squares (PLS) estimation.FindingsFacilitating conditions and social influence had a positive impact on SMEs intention to adopt electronic tendering. The study’s findings also convey a negative impact of effort expectancy on SMEs intent to adopt e-tendering. Unexpectedly, perceived performance had no significant impact on the intention to adopt electronic bidding among Moroccan SMEs.Originality/valueThis research filled the gap in the literature with regards to SMEs e-Tendering readiness in emerging markets. With the recent digitalization reforms of public tendering in many developing economies (i.e. Morocco), the study findings can be used to improve not only government implementation of electronic bidding but also SMEs' user experience.
{"title":"Factors influencing SMEs’ intention to adopt electronic tendering: empirical evidence from an emerging African market","authors":"Souad Nassir, Imane Lebdaoui, Youssef Chetioui, Hind Lebdaoui","doi":"10.1108/jeas-10-2022-0235","DOIUrl":"https://doi.org/10.1108/jeas-10-2022-0235","url":null,"abstract":"PurposeDespite the digitalization reforms attempting to enhance public service quality, paper-based tendering is still widely used in a number of developing countries (i.e. Morocco). This has led to many issues including waste of time, higher costs as well as labor-intensive issues. E-tendering has been widely recommended as a key resolution. Still, both scholars and practitioners raised concerns related the readiness of small and medium enterprises (SMEs) to this digitalization process. The current research aims to investigate the key drivers of SMEs intention to adopt electronic tendering in the context of an emerging African market (i.e. Morocco). Specifically, the authors focus on SMEs contributing to the public procurement process and registered in the online portal recently created by the Moroccan government.Design/methodology/approachTo achieve this goal, the authors proposed a conceptual model combining the unified theory of acceptance and use of technology (UTAUT) and technology acceptance model (TAM). Based on data collected from suppliers participating in Moroccan public tenders, the authors empirically tested the conceptual model using a partial least squares (PLS) estimation.FindingsFacilitating conditions and social influence had a positive impact on SMEs intention to adopt electronic tendering. The study’s findings also convey a negative impact of effort expectancy on SMEs intent to adopt e-tendering. Unexpectedly, perceived performance had no significant impact on the intention to adopt electronic bidding among Moroccan SMEs.Originality/valueThis research filled the gap in the literature with regards to SMEs e-Tendering readiness in emerging markets. With the recent digitalization reforms of public tendering in many developing economies (i.e. Morocco), the study findings can be used to improve not only government implementation of electronic bidding but also SMEs' user experience.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"47 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90260976","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}
Pub Date : 2023-06-02DOI: 10.1108/jeas-02-2023-0041
Kuldeep Singh
PurposeThe current essay aims to generate critical reflections on environment, social and governance (ESG) based on observations, experiences, literature reviews and logical reasoning.Design/methodology/approachThe essay adopts the methodology of first-person omniscient, where the narrator (ESG in this essay) is a character in the story. In this methodology, the ESG is also aware of the thoughts and feelings of all the other characters, such as the ESG practitioners, academics, researchers, lawmakers and relevant stakeholders.FindingsThe essay concludes that the relevance of ESG is broader than what is currently perceived. The piece endorses a view to look at ESG from other perspectives and benefits, not only from its financial relevance. It should be understood and implemented at the grassroots level.Originality/valueThe essay is one of its kind to reflect on the current ESG landscape. It attempts to redirect the debate on ESG toward the origin of its very existence.
{"title":"The autobiography of environmental, social and governance (ESG)","authors":"Kuldeep Singh","doi":"10.1108/jeas-02-2023-0041","DOIUrl":"https://doi.org/10.1108/jeas-02-2023-0041","url":null,"abstract":"PurposeThe current essay aims to generate critical reflections on environment, social and governance (ESG) based on observations, experiences, literature reviews and logical reasoning.Design/methodology/approachThe essay adopts the methodology of first-person omniscient, where the narrator (ESG in this essay) is a character in the story. In this methodology, the ESG is also aware of the thoughts and feelings of all the other characters, such as the ESG practitioners, academics, researchers, lawmakers and relevant stakeholders.FindingsThe essay concludes that the relevance of ESG is broader than what is currently perceived. The piece endorses a view to look at ESG from other perspectives and benefits, not only from its financial relevance. It should be understood and implemented at the grassroots level.Originality/valueThe essay is one of its kind to reflect on the current ESG landscape. It attempts to redirect the debate on ESG toward the origin of its very existence.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"182 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85847912","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}
Pub Date : 2023-05-31DOI: 10.1108/jeas-09-2022-0212
P. Yadav, Geetilaxmi Mohapatra
Purpose The main aim of this study is to explore the role of multi-dimensional human capital on the economic growth of the Indian economy.Design/methodology/approach The study used the methodology given by World Bank, 2018) in calculating the human capital index (HCI). The HCI has been constructed at a regional level for all 28 Indian states and 8 Union Territories (UTs) for the period of 2015–2016. The study explored the linkages between HCI and per capita gross state domestic product (PGSDP). The study further employed OLS (Ordinary Least Square) for overall significance and Spearmen’s Rank correlation coefficient test for establishing the linkage between HCI and PGSDP.Findings The results indicate that quality education, expected year of schooling, and infant mortality rate play a significant role in the improvement of HCI which further impacts the productivity rate of the upcoming generation and the inclusive growth of the country. The findings show that Mizoram, Chandigarh and Kerala are better performing states while the Bihar and Uttar Pradesh are the worst performers. The results also show that there is a positive and statistically significant correlation between PGSDP and HCI and its components. Further, the results show that public expenditure on health and education has significant effect on HCI.Practical implications The results of this study would be useful for policymakers to identify the determinants and improve the position of Indian states in HCI. The results show that policymakers should focus on quality education and health to improve the productivity of future generation workers for sustainable and inclusive growth.Originality/value The study is the pioneering study to analyze the state-wise HCI in India using methods mentioned by the World Bank. Unlike previous studies, variables such as expected year of schooling, under-5 mortality rates and survival rates are constructed more pragmatically.
本研究的主要目的是探讨多维人力资本对印度经济增长的作用。本研究使用世界银行(World Bank, 2018)给出的方法来计算人力资本指数(HCI)。2015-2016年期间，印度所有28个邦和8个联邦直辖区都在区域一级建设了HCI。该研究探讨了人力资本指数与人均国内生产总值(PGSDP)之间的联系。本研究进一步采用OLS (Ordinary Least Square)检验整体显著性，Spearmen’s Rank相关系数检验HCI与PGSDP之间的关联。结果表明，素质教育、期望受教育年限和婴儿死亡率对人力资本水平的提高具有显著作用，进而影响下一代的生产率和国家的包容性增长。调查结果显示，米佐拉姆邦、昌迪加尔邦和喀拉拉邦表现较好，而比哈尔邦和北方邦表现最差。结果还表明，PGSDP与HCI及其成分之间存在正相关且具有统计学意义。此外，研究结果表明，公共卫生和教育支出对人力资本投入有显著影响。本研究的结果将有助于决策者确定决定因素并提高印度各邦在人力资本水平中的地位。结果表明，政策制定者应关注优质教育和健康，以提高下一代工人的生产率，实现可持续和包容性增长。该研究是使用世界银行提到的方法分析印度各邦HCI的开创性研究。与以往的研究不同，预期受教育年限、5岁以下儿童死亡率和存活率等变量的构建更为务实。
{"title":"Examining the linkages between human capital and economic growth in India","authors":"P. Yadav, Geetilaxmi Mohapatra","doi":"10.1108/jeas-09-2022-0212","DOIUrl":"https://doi.org/10.1108/jeas-09-2022-0212","url":null,"abstract":"Purpose The main aim of this study is to explore the role of multi-dimensional human capital on the economic growth of the Indian economy.Design/methodology/approach The study used the methodology given by World Bank, 2018) in calculating the human capital index (HCI). The HCI has been constructed at a regional level for all 28 Indian states and 8 Union Territories (UTs) for the period of 2015–2016. The study explored the linkages between HCI and per capita gross state domestic product (PGSDP). The study further employed OLS (Ordinary Least Square) for overall significance and Spearmen’s Rank correlation coefficient test for establishing the linkage between HCI and PGSDP.Findings The results indicate that quality education, expected year of schooling, and infant mortality rate play a significant role in the improvement of HCI which further impacts the productivity rate of the upcoming generation and the inclusive growth of the country. The findings show that Mizoram, Chandigarh and Kerala are better performing states while the Bihar and Uttar Pradesh are the worst performers. The results also show that there is a positive and statistically significant correlation between PGSDP and HCI and its components. Further, the results show that public expenditure on health and education has significant effect on HCI.Practical implications The results of this study would be useful for policymakers to identify the determinants and improve the position of Indian states in HCI. The results show that policymakers should focus on quality education and health to improve the productivity of future generation workers for sustainable and inclusive growth.Originality/value The study is the pioneering study to analyze the state-wise HCI in India using methods mentioned by the World Bank. Unlike previous studies, variables such as expected year of schooling, under-5 mortality rates and survival rates are constructed more pragmatically.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"21 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84469997","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}
PurposeThe purpose of this study is to discover the motivating factors for cryptocurrency investment during an economic crisis in the MENA region, with reference to the economic crisis of 2019–2022, in Lebanon.Design/methodology/approachThe authors used t-test, and logistic regressions on a sample of 254 Lebanese investors to differentiate between cryptocurrency investors, and non-investors. Linear regressions of a subsample of cryptocurrency investors determined the factors that explained increasing cash investment in cryptocurrencies. Data were collected from investors in Lebanon, which could limit the generalization of the research results across the MENA region.FindingsInvestors differed from non-investors in that they were male, owned investments in the stock, bond and commodity markets, had prior investment experience in cryptocurrencies, were risk-takers and had expectations of high returns. Investors increased the dollar investment in cryptocurrencies, if they were male, as they invested more funds in securities, had previously invested in cryptocurrencies and had stronger risk-taking propensity. Expectations of high returns drove investors to cryptocurrencies, but such expectations do not stimulate further cryptocurrency investment.Originality/valueThis study is an initial attempt to comprehend the reactions of investors in the MENA region to a currency crisis that triggered investment in cryptocurrencies following the collapse of fiat currencies, central bank default and restrictions on bank withdrawals.
{"title":"Psychological and demographic predictors of investment in cryptocurrencies during a crisis in the MENA region: the case of Lebanon","authors":"Hani El-Chaarani, Jeanne Laure Mawad, Nouhad Mawad, Danielle Khalife","doi":"10.1108/jeas-07-2022-0165","DOIUrl":"https://doi.org/10.1108/jeas-07-2022-0165","url":null,"abstract":"PurposeThe purpose of this study is to discover the motivating factors for cryptocurrency investment during an economic crisis in the MENA region, with reference to the economic crisis of 2019–2022, in Lebanon.Design/methodology/approachThe authors used t-test, and logistic regressions on a sample of 254 Lebanese investors to differentiate between cryptocurrency investors, and non-investors. Linear regressions of a subsample of cryptocurrency investors determined the factors that explained increasing cash investment in cryptocurrencies. Data were collected from investors in Lebanon, which could limit the generalization of the research results across the MENA region.FindingsInvestors differed from non-investors in that they were male, owned investments in the stock, bond and commodity markets, had prior investment experience in cryptocurrencies, were risk-takers and had expectations of high returns. Investors increased the dollar investment in cryptocurrencies, if they were male, as they invested more funds in securities, had previously invested in cryptocurrencies and had stronger risk-taking propensity. Expectations of high returns drove investors to cryptocurrencies, but such expectations do not stimulate further cryptocurrency investment.Originality/valueThis study is an initial attempt to comprehend the reactions of investors in the MENA region to a currency crisis that triggered investment in cryptocurrencies following the collapse of fiat currencies, central bank default and restrictions on bank withdrawals.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"49 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73781987","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}
Pub Date : 2023-05-30DOI: 10.1108/jeas-08-2022-0200
Nicholas Addai Boamah, Francis Ofori-Yeboah, Martin Owusu-Ansah
PurposeThe study aims to investigate the effect of corruption and crime on the investments by firms in emerging economies (EEs).Design/methodology/approachThe study adopts the generalised methods of moments (GMM) estimator and data across 57 EEs.FindingsThe study shows that crime management, corruption and external quality assurance drive-up investments. Additionally, investments decline with firm age and crime incidence. Corruption and crime managements increase investments by exporting firms more than non-exporting firms investments. Also, external auditor services benefit investments by large firms more than small-medium firms.Originality/valueThere is a need for EEs to implement policies that will curtail corruption and create a level playing field and sustainable firm growth. EEs firms must be innovative to expand their productive investments and grow over time. Also, EEs firms should seek external quality certification, invest in internal security and monitor goods in transit.
{"title":"Corruption, crime and investments by firms in emerging economies","authors":"Nicholas Addai Boamah, Francis Ofori-Yeboah, Martin Owusu-Ansah","doi":"10.1108/jeas-08-2022-0200","DOIUrl":"https://doi.org/10.1108/jeas-08-2022-0200","url":null,"abstract":"PurposeThe study aims to investigate the effect of corruption and crime on the investments by firms in emerging economies (EEs).Design/methodology/approachThe study adopts the generalised methods of moments (GMM) estimator and data across 57 EEs.FindingsThe study shows that crime management, corruption and external quality assurance drive-up investments. Additionally, investments decline with firm age and crime incidence. Corruption and crime managements increase investments by exporting firms more than non-exporting firms investments. Also, external auditor services benefit investments by large firms more than small-medium firms.Originality/valueThere is a need for EEs to implement policies that will curtail corruption and create a level playing field and sustainable firm growth. EEs firms must be innovative to expand their productive investments and grow over time. Also, EEs firms should seek external quality certification, invest in internal security and monitor goods in transit.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"84 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83522231","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}
Pub Date : 2023-05-25DOI: 10.1108/jeas-08-2022-0198
Pooria Assadi
PurposeEnterprise information systems (EISs) are intricate technological artifacts with wide user base within organizations. While much is known about the adoption and implementation of EISs, little is known about what subsequently follows them, i.e. the assimilation of EISs. This article aims to examine the assimilation of the EISs which is consequential to realizing any benefits from such enterprise technology.Design/methodology/approachThe author conceptually draws on the insights from the expectation confirmation theory, theory of reasoned action, equity theory, and prospect theory to examine the assimilation of the EISs. In doing so, the author generates competing testable hypotheses regarding the relationship between individual users' psychological and social influences through expectation (dis)confirmation and the users' intention to assimilate the EISs.FindingsBy conceptually articulating the individual users' psychological and social influences through expectation (dis)confirmation, the author offers a more complete account of the assimilation of EISs, and provide several avenues for future empirical and theoretical research on enterprise technology assimilation.Originality/valueThe extant research that there is on the assimilation of the EISs focuses more on the organizational – as opposed to individual – level determinants of EISs assimilation and largely considers the functional – rather than psychological and social – drivers. This article addresses these important, yet understudied, factors to offer a more nuanced account of EISs assimilation.
{"title":"Expectation confirmation and assimilation of enterprise technology","authors":"Pooria Assadi","doi":"10.1108/jeas-08-2022-0198","DOIUrl":"https://doi.org/10.1108/jeas-08-2022-0198","url":null,"abstract":"PurposeEnterprise information systems (EISs) are intricate technological artifacts with wide user base within organizations. While much is known about the adoption and implementation of EISs, little is known about what subsequently follows them, i.e. the assimilation of EISs. This article aims to examine the assimilation of the EISs which is consequential to realizing any benefits from such enterprise technology.Design/methodology/approachThe author conceptually draws on the insights from the expectation confirmation theory, theory of reasoned action, equity theory, and prospect theory to examine the assimilation of the EISs. In doing so, the author generates competing testable hypotheses regarding the relationship between individual users' psychological and social influences through expectation (dis)confirmation and the users' intention to assimilate the EISs.FindingsBy conceptually articulating the individual users' psychological and social influences through expectation (dis)confirmation, the author offers a more complete account of the assimilation of EISs, and provide several avenues for future empirical and theoretical research on enterprise technology assimilation.Originality/valueThe extant research that there is on the assimilation of the EISs focuses more on the organizational – as opposed to individual – level determinants of EISs assimilation and largely considers the functional – rather than psychological and social – drivers. This article addresses these important, yet understudied, factors to offer a more nuanced account of EISs assimilation.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"22 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81587053","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}
Pub Date : 2023-05-23DOI: 10.1108/jeas-07-2022-0164
R. K. Shira
PurposeThe manufacturing sector plays an important role in any economy. The sector opts for diversification techniques and CSR initiatives in a competitive business environment for growth, survival and reputation. This study examined the impact of corporate diversification and CSR on the financial performance of South Asian manufacturing firms.Design/methodology/approachData is obtained from the financial statements of 350 listed South Asian manufacturing firms as well as the respective stock exchanges of these countries. The data for research analysis ranges from 2010 to 2020. Diversification is measured using product diversification and geographic diversification. CSR is quantified in terms of social contribution value. Accounting measurements (ROA and ROE) are also used to capture corporate performance. For hypothesis testing, the study also uses fixed effect panel regression, and for assessing the robustness of the findings, the two-step dynamic panel system-GMM regression approach is used.FindingsFindings of study indicate a positive impact of product and geographic diversification on financial performance measured with ROA. However, geographic diversification is insignificantly linked with ROA and ROE. Further, CSR positively impacts the performance of firms in South Asia with both performance measures.Originality/valueThe study has several policy implications based on the findings, including the need for the manufacturing sector to practice and implement appropriate diversification approaches and CSR initiatives to improve its financial performance and reputation.
{"title":"Connection between corporate diversification, CSR and firm performance in South Asia","authors":"R. K. Shira","doi":"10.1108/jeas-07-2022-0164","DOIUrl":"https://doi.org/10.1108/jeas-07-2022-0164","url":null,"abstract":"PurposeThe manufacturing sector plays an important role in any economy. The sector opts for diversification techniques and CSR initiatives in a competitive business environment for growth, survival and reputation. This study examined the impact of corporate diversification and CSR on the financial performance of South Asian manufacturing firms.Design/methodology/approachData is obtained from the financial statements of 350 listed South Asian manufacturing firms as well as the respective stock exchanges of these countries. The data for research analysis ranges from 2010 to 2020. Diversification is measured using product diversification and geographic diversification. CSR is quantified in terms of social contribution value. Accounting measurements (ROA and ROE) are also used to capture corporate performance. For hypothesis testing, the study also uses fixed effect panel regression, and for assessing the robustness of the findings, the two-step dynamic panel system-GMM regression approach is used.FindingsFindings of study indicate a positive impact of product and geographic diversification on financial performance measured with ROA. However, geographic diversification is insignificantly linked with ROA and ROE. Further, CSR positively impacts the performance of firms in South Asia with both performance measures.Originality/valueThe study has several policy implications based on the findings, including the need for the manufacturing sector to practice and implement appropriate diversification approaches and CSR initiatives to improve its financial performance and reputation.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"52 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90943925","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}
Pub Date : 2023-05-23DOI: 10.1108/jeas-03-2023-0062
Saif Ullah, Mehwish Jabeen, Muhammad Farooq, Asad Afzal Hamayun
PurposeThe relationship between idiosyncratic risk and stock return has been debated for decades; this study reexamined this relationship in the Pakistani stock market by using the quantile regression approach along with the prospect theory.Design/methodology/approachThe present study is quantitative, and secondary data obtained from an emerging market are used. The quantile regression method allows the estimates of idiosyncratic risk to vary across the entire distribution of stock returns, i.e. the dependent variable. In this study, the standard deviation of regression residuals from the Fama and French three-factor model was used to measure idiosyncratic risk. Convenience sampling is employed; the sample consists of 82 firms listed on the KSE-100 index, with 820 annual observations for the ten years from 2011 to 2020. After computing results by using quantile regression, the study's findings, ordinary least squares (OLS) and least sum of absolute deviation (LAD) regression techniques are also compared.FindingsThe quantile regression estimation results indicate that idiosyncratic risk is positively correlated with stock returns and that this relationship is contingent on whether prices are rising or falling. Consistent with the prospect theory, the finding suggests that stock investors tend to avoid risk when they anticipate a loss but are more willing to take risks when they anticipate a profit. The results of the OLS and LAD regressions indicate that the method typically employed in previous studies does not adequately describe the relationship between idiosyncratic risk and stock return at extreme points or across the entire distribution of stock return.Originality/valueThese empirical findings shed new light on the relationship between idiosyncratic risk and stock return in Pakistani stock market literature.
{"title":"Revisiting the relationship between idiosyncratic risk and stock returns: a quantile regression analysis in the context of an emerging market","authors":"Saif Ullah, Mehwish Jabeen, Muhammad Farooq, Asad Afzal Hamayun","doi":"10.1108/jeas-03-2023-0062","DOIUrl":"https://doi.org/10.1108/jeas-03-2023-0062","url":null,"abstract":"PurposeThe relationship between idiosyncratic risk and stock return has been debated for decades; this study reexamined this relationship in the Pakistani stock market by using the quantile regression approach along with the prospect theory.Design/methodology/approachThe present study is quantitative, and secondary data obtained from an emerging market are used. The quantile regression method allows the estimates of idiosyncratic risk to vary across the entire distribution of stock returns, i.e. the dependent variable. In this study, the standard deviation of regression residuals from the Fama and French three-factor model was used to measure idiosyncratic risk. Convenience sampling is employed; the sample consists of 82 firms listed on the KSE-100 index, with 820 annual observations for the ten years from 2011 to 2020. After computing results by using quantile regression, the study's findings, ordinary least squares (OLS) and least sum of absolute deviation (LAD) regression techniques are also compared.FindingsThe quantile regression estimation results indicate that idiosyncratic risk is positively correlated with stock returns and that this relationship is contingent on whether prices are rising or falling. Consistent with the prospect theory, the finding suggests that stock investors tend to avoid risk when they anticipate a loss but are more willing to take risks when they anticipate a profit. The results of the OLS and LAD regressions indicate that the method typically employed in previous studies does not adequately describe the relationship between idiosyncratic risk and stock return at extreme points or across the entire distribution of stock return.Originality/valueThese empirical findings shed new light on the relationship between idiosyncratic risk and stock return in Pakistani stock market literature.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"28 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78773068","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}
Pub Date : 2023-05-22DOI: 10.1108/jeas-10-2022-0239
F. Naz, Mehma Kunwar, Atia Alam, Tooba Lutfullah
PurposeIn the corporate world, there is no certainty of survival. This research aims to identify firm-level factors that increase or decrease a firm's probability of exit and survival.Design/methodology/approachThe study examines 153 listed textile sector firms in Pakistan over a 10-year period from 2009 to 2018, comprising 1,413 observations. The semi-parametric Cox regression model is used to process the results.FindingsThe study finds that larger and exporting firms are more likely to survive, while those with a high ratio of fixed assets to total assets, high expenditure on advertising and variable costs are less likely to survive. The relationship between age and firm survival is inconclusive.Research limitations/implicationsAdaptability to the external environment provides a competitive advantage that is crucial for textile firms to reduce their chances of exit. The research is valuable for strategic managers and policymakers to identify focus areas to prevent firm exit.Originality/valueThis study supports the active learning theory, which suggests that new entrants in the textile sector of Pakistan should focus on becoming active market players, increasing efficiency and reducing variable costs to survive.
{"title":"Survival of the fittest: do firms actively or passively learn survival?","authors":"F. Naz, Mehma Kunwar, Atia Alam, Tooba Lutfullah","doi":"10.1108/jeas-10-2022-0239","DOIUrl":"https://doi.org/10.1108/jeas-10-2022-0239","url":null,"abstract":"PurposeIn the corporate world, there is no certainty of survival. This research aims to identify firm-level factors that increase or decrease a firm's probability of exit and survival.Design/methodology/approachThe study examines 153 listed textile sector firms in Pakistan over a 10-year period from 2009 to 2018, comprising 1,413 observations. The semi-parametric Cox regression model is used to process the results.FindingsThe study finds that larger and exporting firms are more likely to survive, while those with a high ratio of fixed assets to total assets, high expenditure on advertising and variable costs are less likely to survive. The relationship between age and firm survival is inconclusive.Research limitations/implicationsAdaptability to the external environment provides a competitive advantage that is crucial for textile firms to reduce their chances of exit. The research is valuable for strategic managers and policymakers to identify focus areas to prevent firm exit.Originality/valueThis study supports the active learning theory, which suggests that new entrants in the textile sector of Pakistan should focus on becoming active market players, increasing efficiency and reducing variable costs to survive.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"2016 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86301132","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}
Pub Date : 2023-05-22DOI: 10.1108/jeas-01-2023-0018
A. Akgün, Ayyüce Memiş Karataş
PurposeThis study examines investigating the relationship between cash flows, working capital ratios and firm performance during the global financial crisis.Design/methodology/approachTo examine the relationship between cash flow, working capital ratios and firm performance for EU-28 or Western European Countries (Norway, Turkey and Switzerland) listed firms, both panel and ordinary least squares (OLS) regression model are used to analyze the data obtained from sample.FindingsThe study empirical findings suggest that global financial crisis has negative effect on firm performance for all sample. In addition, our interaction term result shows that cash flows variables such as cash holding level (CHL) × Crisis, cash interactive effect (CIE) × Crisis and gross working capital ratio (GWC) × Crisis not contributed to firm performance for EU-28 listed firms. However, the authors find that net working capital ratio (NWC) × Crisis have statistically significant and positive effects on firm performance with return on assets (ROA).Practical implicationsThe findings of the study provide evidence for managers that listed firms have reduced working capital expenditures to increase cash holdings level during the financial crisis. The authors find that cash flow variables with CHL have positive effect on firm performance with return on equity (ROE) in Western European Countries and these results are consistent with Opler et al. (1999)'s empirical results, while CIE have a negative impact on firm performance such as ROE and earnings before interest tax margin (EBITM).Originality/valueGlobal financial crisis emphasizes the importance of working capital and liquidity that suggests an efficient cash holdings policy in response to the uncertainty following the crisis.
{"title":"Do impact of cash flows and working capital ratios on performance of listed firms during the crisis? The cases of EU-28 and Western European countries","authors":"A. Akgün, Ayyüce Memiş Karataş","doi":"10.1108/jeas-01-2023-0018","DOIUrl":"https://doi.org/10.1108/jeas-01-2023-0018","url":null,"abstract":"PurposeThis study examines investigating the relationship between cash flows, working capital ratios and firm performance during the global financial crisis.Design/methodology/approachTo examine the relationship between cash flow, working capital ratios and firm performance for EU-28 or Western European Countries (Norway, Turkey and Switzerland) listed firms, both panel and ordinary least squares (OLS) regression model are used to analyze the data obtained from sample.FindingsThe study empirical findings suggest that global financial crisis has negative effect on firm performance for all sample. In addition, our interaction term result shows that cash flows variables such as cash holding level (CHL) × Crisis, cash interactive effect (CIE) × Crisis and gross working capital ratio (GWC) × Crisis not contributed to firm performance for EU-28 listed firms. However, the authors find that net working capital ratio (NWC) × Crisis have statistically significant and positive effects on firm performance with return on assets (ROA).Practical implicationsThe findings of the study provide evidence for managers that listed firms have reduced working capital expenditures to increase cash holdings level during the financial crisis. The authors find that cash flow variables with CHL have positive effect on firm performance with return on equity (ROE) in Western European Countries and these results are consistent with Opler et al. (1999)'s empirical results, while CIE have a negative impact on firm performance such as ROE and earnings before interest tax margin (EBITM).Originality/valueGlobal financial crisis emphasizes the importance of working capital and liquidity that suggests an efficient cash holdings policy in response to the uncertainty following the crisis.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"09 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87007520","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}
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