Pub Date : 2023-09-30DOI: 10.1177/09721509231196968
Simin Seury, Adian McFarlane, Amanjot Singh
Using annual data from 1980 to 2019, we explore the impact of remittance inflows (remittances) on renewable and non-renewable energy consumption in Jamaica. We apply statistically adequate vector error correction and vector autoregression models. There are two primary findings. First, we find that an increase in remittances is associated with a decrease in renewable energy consumption within an error correction model, which suggests a long-run negative relationship between remittances and renewable energy consumption. Second, an increase in remittances is associated with an increase in non-renewable energy consumption in the short run; no cointegrating relationship is detected. One implication of our finding is that Jamaica could strengthen policies that encourage the consumption of renewables while discouraging the consumption of non-renewables. These policies should apply to not only remittance-receiving households but also energy consumers in general to enhance the uptake of renewable energy.
{"title":"The Impact of Remittances on Renewable and Non-renewable Energy Consumption in Jamaica","authors":"Simin Seury, Adian McFarlane, Amanjot Singh","doi":"10.1177/09721509231196968","DOIUrl":"https://doi.org/10.1177/09721509231196968","url":null,"abstract":"Using annual data from 1980 to 2019, we explore the impact of remittance inflows (remittances) on renewable and non-renewable energy consumption in Jamaica. We apply statistically adequate vector error correction and vector autoregression models. There are two primary findings. First, we find that an increase in remittances is associated with a decrease in renewable energy consumption within an error correction model, which suggests a long-run negative relationship between remittances and renewable energy consumption. Second, an increase in remittances is associated with an increase in non-renewable energy consumption in the short run; no cointegrating relationship is detected. One implication of our finding is that Jamaica could strengthen policies that encourage the consumption of renewables while discouraging the consumption of non-renewables. These policies should apply to not only remittance-receiving households but also energy consumers in general to enhance the uptake of renewable energy.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136279552","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 : 2023-09-30DOI: 10.1177/09721509231195988
Sourabh Sharma, Andrée Marie López-Fernández, Megha Sharma
This research aims to compare the influence of digital transformation on the academicians’ well-being of two developing nations. A conceptual model has been created where three exogenous (independent) constructs of digital transformation have been compared with two endogenous (dependent) constructs of academicians’ well-being in India and Mexico. The impact of ‘Digital Transformation and Innovation’; ‘Digital Transformation and Adversity’; and ‘Digital Transformation and Technological Issues’ has been assessed on ‘Workplace Well-being’ and ‘Adversity and Psychological Well-being’. Six hundred and seventy-seven responses, 375 from India and 302 from Mexico, have been received and used for data analysis. Exploratory factor analysis (EFA) has been used to define exogenous and endogenous constructs. The Multigroup Analysis (MGA) tool of PLS-SEM was implemented to compare the results from both nations. The MGA results explain the significant difference for the impact of ‘Digital Transformation and Adversity (DTA)’ on academicians’ ‘Workplace Well-being (WW)’ and ‘Adversity and Psychological Well-being (APW)’.
{"title":"Digital Transformation and Academicians’ Well-being: A Cross-National Study","authors":"Sourabh Sharma, Andrée Marie López-Fernández, Megha Sharma","doi":"10.1177/09721509231195988","DOIUrl":"https://doi.org/10.1177/09721509231195988","url":null,"abstract":"This research aims to compare the influence of digital transformation on the academicians’ well-being of two developing nations. A conceptual model has been created where three exogenous (independent) constructs of digital transformation have been compared with two endogenous (dependent) constructs of academicians’ well-being in India and Mexico. The impact of ‘Digital Transformation and Innovation’; ‘Digital Transformation and Adversity’; and ‘Digital Transformation and Technological Issues’ has been assessed on ‘Workplace Well-being’ and ‘Adversity and Psychological Well-being’. Six hundred and seventy-seven responses, 375 from India and 302 from Mexico, have been received and used for data analysis. Exploratory factor analysis (EFA) has been used to define exogenous and endogenous constructs. The Multigroup Analysis (MGA) tool of PLS-SEM was implemented to compare the results from both nations. The MGA results explain the significant difference for the impact of ‘Digital Transformation and Adversity (DTA)’ on academicians’ ‘Workplace Well-being (WW)’ and ‘Adversity and Psychological Well-being (APW)’.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136341292","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 : 2023-09-30DOI: 10.1177/09721509231164808
Mohamed Fakhfekh, Yasmine Snene Manzli, Azza Béjaoui, Ahmed Jeribi
This article attempts to assess the hedging, diversification and safe haven characteristics of gold, Bitcoin and Tether for G7 investors during the political and health crises. For this end, we use the Generalized Autoregressive Conditional Heteroskedasticity-A-Dynamic Conditional Correlation model. The findings prove that gold can be considered as a strong safe haven asset for the G7 investors during the Russia–Ukraine crisis. In contrast, cryptocurrencies fail to retain their safe haven features for Japanese investors during the COVID-19 pandemic. But, they act as diversifier assets for the rest of the G7 stock markets. The computed optimal hedge and hedging effectiveness reveal that Bitcoin displays the best hedging instrument for the United States, British, Japanese and Canadian investors during the Russia–Ukraine crisis whereas gold is considered as the best instrument for German, French and Italian investors.
本文试图评估在政治和健康危机期间，黄金、比特币和Tether对G7投资者的对冲、多样化和避险特征。为此，我们使用了广义自回归条件异方差- a -动态条件相关模型。研究结果证明，在俄罗斯-乌克兰危机期间，黄金可以被G7投资者视为一种强大的避险资产。相比之下，在2019冠状病毒病大流行期间，加密货币未能保持其对日本投资者的避险功能。但是，对于G7其他股票市场来说，它们起到了分散资产的作用。计算出的最优对冲和对冲有效性表明，在俄罗斯-乌克兰危机期间，比特币是美国、英国、日本和加拿大投资者的最佳对冲工具，而黄金被认为是德国、法国和意大利投资者的最佳对冲工具。
{"title":"Can Cryptocurrencies be a Safe Haven During the 2022 Ukraine Crisis? Implications for G7 Investors","authors":"Mohamed Fakhfekh, Yasmine Snene Manzli, Azza Béjaoui, Ahmed Jeribi","doi":"10.1177/09721509231164808","DOIUrl":"https://doi.org/10.1177/09721509231164808","url":null,"abstract":"This article attempts to assess the hedging, diversification and safe haven characteristics of gold, Bitcoin and Tether for G7 investors during the political and health crises. For this end, we use the Generalized Autoregressive Conditional Heteroskedasticity-A-Dynamic Conditional Correlation model. The findings prove that gold can be considered as a strong safe haven asset for the G7 investors during the Russia–Ukraine crisis. In contrast, cryptocurrencies fail to retain their safe haven features for Japanese investors during the COVID-19 pandemic. But, they act as diversifier assets for the rest of the G7 stock markets. The computed optimal hedge and hedging effectiveness reveal that Bitcoin displays the best hedging instrument for the United States, British, Japanese and Canadian investors during the Russia–Ukraine crisis whereas gold is considered as the best instrument for German, French and Italian investors.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136280002","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 : 2023-09-28DOI: 10.1177/09721509231196679
Shoumi Dasgupta
{"title":"Arindam Banik and Munim Kumar Barai (Eds), <i>Two Bengals: A Comparative Development Narrative of Bangladesh and West Bengal of India</i>. Palgrave Macmillan, 2023, pp. 391, Hardcopy ₹16,000, E-book €149.70, Kindle Edition ₹13,545.","authors":"Shoumi Dasgupta","doi":"10.1177/09721509231196679","DOIUrl":"https://doi.org/10.1177/09721509231196679","url":null,"abstract":"","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135425929","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 : 2023-09-28DOI: 10.1177/09721509231190511
Kiru Sichoongwe
The manufacturing industry is vital to the growth and development of most countries. This study investigates the adoption behaviour of digital technologies by manufacturing firms in South Africa. The study employs econometric model to analyze a total of 516 firms in the manufacturing sector. The probit results show that innovation of the firm and firm size have a significant effect on both the current and the expected adoption of digital technologies, whereas capital ownership correlate positively with the current adoption. Likewise, exports and digital-related infrastructure are found to correlate positively with the expected digital technology adoption for customer relations business function. Similarly, study results from the transition probability matrix reveals that a significant persistency pattern is prevalent in all the three business functions of the firms, namely, supplier relations, customer relations and product development. However, product development has considerably higher persistency compared to other types of the firm business functions. Several policies, including supporting business innovation, easy access to core digital tools by firms, developing institutional and systemic support mechanisms, are recommended to encourage firms to engage in digital technology activities.
{"title":"Adoption Behaviour of Digital Technologies by Firms: Evidence from South Africa’s Manufacturing Sector","authors":"Kiru Sichoongwe","doi":"10.1177/09721509231190511","DOIUrl":"https://doi.org/10.1177/09721509231190511","url":null,"abstract":"The manufacturing industry is vital to the growth and development of most countries. This study investigates the adoption behaviour of digital technologies by manufacturing firms in South Africa. The study employs econometric model to analyze a total of 516 firms in the manufacturing sector. The probit results show that innovation of the firm and firm size have a significant effect on both the current and the expected adoption of digital technologies, whereas capital ownership correlate positively with the current adoption. Likewise, exports and digital-related infrastructure are found to correlate positively with the expected digital technology adoption for customer relations business function. Similarly, study results from the transition probability matrix reveals that a significant persistency pattern is prevalent in all the three business functions of the firms, namely, supplier relations, customer relations and product development. However, product development has considerably higher persistency compared to other types of the firm business functions. Several policies, including supporting business innovation, easy access to core digital tools by firms, developing institutional and systemic support mechanisms, are recommended to encourage firms to engage in digital technology activities.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135425273","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 : 2023-09-25DOI: 10.1177/09721509231192229
Bakir Illahi Dar, Jatinder Kumar
Most financial theories are based on the assumption that everyone is logical and considers all available information before making decisions, which is not the case in reality. This study aims to analyse the behavioural determinants that drive the investment decision of individual investors in J&K. Non-probability convenience sampling was adopted; through which 392 responses from individual investors were gathered using a self-administered questionnaire. The t-test and ANOVA were used to determine the effect of demographics on investment behaviour (IB), whereas logistic regression was used to determine the impact of IB determinants on investment decision-making. The findings show that the investment decisions of investors in Jammu and Kashmir (J&K) are significantly influenced by age and occupation. The results also indicate that cognitive bias, investment goals and saving orientation have a substantial influence on IB but overconfidence, risk perception and decision influencers do not have any significant impact on the investment decision of individual investors in J&K. By gaining awareness of these determinants, investors can make more rational investment decisions, leading to enhanced market efficiency and achieving better outcomes in the financial market.
{"title":"The Behavioural Pattern of Investment in the Financial Market: A Study of the Individual Investors","authors":"Bakir Illahi Dar, Jatinder Kumar","doi":"10.1177/09721509231192229","DOIUrl":"https://doi.org/10.1177/09721509231192229","url":null,"abstract":"Most financial theories are based on the assumption that everyone is logical and considers all available information before making decisions, which is not the case in reality. This study aims to analyse the behavioural determinants that drive the investment decision of individual investors in J&K. Non-probability convenience sampling was adopted; through which 392 responses from individual investors were gathered using a self-administered questionnaire. The t-test and ANOVA were used to determine the effect of demographics on investment behaviour (IB), whereas logistic regression was used to determine the impact of IB determinants on investment decision-making. The findings show that the investment decisions of investors in Jammu and Kashmir (J&K) are significantly influenced by age and occupation. The results also indicate that cognitive bias, investment goals and saving orientation have a substantial influence on IB but overconfidence, risk perception and decision influencers do not have any significant impact on the investment decision of individual investors in J&K. By gaining awareness of these determinants, investors can make more rational investment decisions, leading to enhanced market efficiency and achieving better outcomes in the financial market.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135864213","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 : 2023-09-24DOI: 10.1177/09721509231194810
Thuy Thi Hong Tran, Malik Abu Afifa, Nha Minh Nguyen
This study strives to describe how the nexus between capital structure (CAS) and firm performance (FIP) changes with and without earnings management (EAM), which previous studies have not fully addressed. For this purpose, we divide the FIP into discretionary performance (DIP) and non-discretionary performance (NDIP). Subsequently, we examine the effect of CAS on both with each studied separately to recognize the conceptual drivers in the nexus between CAS and FIP. We use the dataset of firms listed on Ho Chi Minh Stock Exchange (HOSE) during the period from 2018 to 2022. Our findings reveal that there is a negative and noteworthy impact of CAS proxied by leverage on both DIP and NDIP, which is in line with trade-off theory (TOT) and pecking-order theory (POT). Because non-discretionary accruals (NDA) play an important role in EAM, firm action is consistent with TOT or POT and, thus, this study suggests dividing EAM into discretionary accruals (DA) and NDA to test CAS theories. Additionally, Vietnamese firms use EAM to lessen the negative effect of CAS and firm size. Finally, besides the theoretical contributions, the findings of this study have important empirical implications for managers, shareholders and other stakeholders.
{"title":"Does the Capital Structure Affect the Discretionary and Non-discretionary Firm Performance? Evidence from Vietnam","authors":"Thuy Thi Hong Tran, Malik Abu Afifa, Nha Minh Nguyen","doi":"10.1177/09721509231194810","DOIUrl":"https://doi.org/10.1177/09721509231194810","url":null,"abstract":"This study strives to describe how the nexus between capital structure (CAS) and firm performance (FIP) changes with and without earnings management (EAM), which previous studies have not fully addressed. For this purpose, we divide the FIP into discretionary performance (DIP) and non-discretionary performance (NDIP). Subsequently, we examine the effect of CAS on both with each studied separately to recognize the conceptual drivers in the nexus between CAS and FIP. We use the dataset of firms listed on Ho Chi Minh Stock Exchange (HOSE) during the period from 2018 to 2022. Our findings reveal that there is a negative and noteworthy impact of CAS proxied by leverage on both DIP and NDIP, which is in line with trade-off theory (TOT) and pecking-order theory (POT). Because non-discretionary accruals (NDA) play an important role in EAM, firm action is consistent with TOT or POT and, thus, this study suggests dividing EAM into discretionary accruals (DA) and NDA to test CAS theories. Additionally, Vietnamese firms use EAM to lessen the negative effect of CAS and firm size. Finally, besides the theoretical contributions, the findings of this study have important empirical implications for managers, shareholders and other stakeholders.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135925418","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 : 2023-09-22DOI: 10.1177/09721509231191306
Abeer Elsayed Fayed
The COVID-19 pandemic impacted commerce and industry globally. While this impact was mostly negative, some rare businesses, for example, e-marketing, benefited from it as well. This study aims to identify the strategies required to retain the opportunities presented by the pandemic by converting consumers to e-marketing. To collect data, the authors distributed an electronic questionnaire to the study sample in Saudi Arabia, which is one of the most promising markets in electronic commerce and digital transformation. The sample consisted of 69 respondents from small-scale companies who conducted marketing activities via the internet, as well as 400 online buyers. The study analysed the data using statistical methods included in the SPSS software package. The study concluded that the current situation at small businesses will not allow them to switch consumers to e-marketing; that is, they are not yet ready for it. The COVID-19 provided many opportunities to these companies, and the results suggest that they should employ strategies such as lead generation, website optimization for search engines, and creating customer-friendly content, efficient supply chains, websites that attract the target customers, online customer interaction and so on to exploit these opportunities.
{"title":"Strategies for Small Enterprises to Retain the Opportunities Created by COVID-19 for e-Marketing","authors":"Abeer Elsayed Fayed","doi":"10.1177/09721509231191306","DOIUrl":"https://doi.org/10.1177/09721509231191306","url":null,"abstract":"The COVID-19 pandemic impacted commerce and industry globally. While this impact was mostly negative, some rare businesses, for example, e-marketing, benefited from it as well. This study aims to identify the strategies required to retain the opportunities presented by the pandemic by converting consumers to e-marketing. To collect data, the authors distributed an electronic questionnaire to the study sample in Saudi Arabia, which is one of the most promising markets in electronic commerce and digital transformation. The sample consisted of 69 respondents from small-scale companies who conducted marketing activities via the internet, as well as 400 online buyers. The study analysed the data using statistical methods included in the SPSS software package. The study concluded that the current situation at small businesses will not allow them to switch consumers to e-marketing; that is, they are not yet ready for it. The COVID-19 provided many opportunities to these companies, and the results suggest that they should employ strategies such as lead generation, website optimization for search engines, and creating customer-friendly content, efficient supply chains, websites that attract the target customers, online customer interaction and so on to exploit these opportunities.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136059050","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 : 2023-09-18DOI: 10.1177/09721509231193803
Ambareen Beebeejaun, Rajendra Parsad Gunputh
The Mauritius Artificial Intelligence Strategy 2018, established by the government, aims at making Artificial Intelligence (AI) a cornerstone of the next development model by recognizing the potential of technology to improve growth, productivity and quality of life. In this regard, AI has already started to shape the legal sector, for instance, by assisting law practitioners to identify and minimize bias in client intake, offer initial consultation solutions, expand the scope of information for law practitioners and predict the outcome of future legal cases, among others. Nevertheless, while the legal profession worldwide is facing pressure to innovate and transform, the emergence of AI is causing significant disruption to long-established practices in the legal world, especially since this particular sector has traditionally under-utilized technology. Consequently, this study seeks to assess the influence of AI on employees from the legal profession mainly in terms of their performance, their reaction, and adaptability to change and to identify the challenges faced by these employees in Mauritius in adopting AI for their operational activities.
{"title":"A Study of the Influence of Artificial Intelligence and Its Challenges: The Impact on Employees of the Legal Sector of Mauritius","authors":"Ambareen Beebeejaun, Rajendra Parsad Gunputh","doi":"10.1177/09721509231193803","DOIUrl":"https://doi.org/10.1177/09721509231193803","url":null,"abstract":"The Mauritius Artificial Intelligence Strategy 2018, established by the government, aims at making Artificial Intelligence (AI) a cornerstone of the next development model by recognizing the potential of technology to improve growth, productivity and quality of life. In this regard, AI has already started to shape the legal sector, for instance, by assisting law practitioners to identify and minimize bias in client intake, offer initial consultation solutions, expand the scope of information for law practitioners and predict the outcome of future legal cases, among others. Nevertheless, while the legal profession worldwide is facing pressure to innovate and transform, the emergence of AI is causing significant disruption to long-established practices in the legal world, especially since this particular sector has traditionally under-utilized technology. Consequently, this study seeks to assess the influence of AI on employees from the legal profession mainly in terms of their performance, their reaction, and adaptability to change and to identify the challenges faced by these employees in Mauritius in adopting AI for their operational activities.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135153695","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 : 2023-09-18DOI: 10.1177/09721509231189916
Reena Nayyar, Sanjay Dhamija, Chhavi Mehta
The study analysed the factors that motivated Indian companies to pursue reverse stock splits strategy. The article also aimed at examining the market reaction around the announcement and effective dates of reverse stock splits. Analysing the reverse stock splits pursued by Indian companies during the period 2002–2022, it was found that poor growth opportunities in the past were the main reasons for Indian companies pursuing reverse stock splits. Further, reverse stock splits were chosen by the companies whose stocks were trading as penny stocks, in the pre-split period. Here, the motivation was to improve the image of their stocks amongst the institutional investors. Realizing these value-improving motives on part of the companies adopting reverse stock splits, the market participants reacted positively to the news of reverse stock splits on the announcement as well as the effective date. Thus, the study supported positive signalling theory and image improvement theory as the rationales for Indian companies pursuing reverse stock splits and the resultant positive market reaction.
{"title":"Analysing the Likelihood of and Market Reaction to Reverse Stock Splits in India","authors":"Reena Nayyar, Sanjay Dhamija, Chhavi Mehta","doi":"10.1177/09721509231189916","DOIUrl":"https://doi.org/10.1177/09721509231189916","url":null,"abstract":"The study analysed the factors that motivated Indian companies to pursue reverse stock splits strategy. The article also aimed at examining the market reaction around the announcement and effective dates of reverse stock splits. Analysing the reverse stock splits pursued by Indian companies during the period 2002–2022, it was found that poor growth opportunities in the past were the main reasons for Indian companies pursuing reverse stock splits. Further, reverse stock splits were chosen by the companies whose stocks were trading as penny stocks, in the pre-split period. Here, the motivation was to improve the image of their stocks amongst the institutional investors. Realizing these value-improving motives on part of the companies adopting reverse stock splits, the market participants reacted positively to the news of reverse stock splits on the announcement as well as the effective date. Thus, the study supported positive signalling theory and image improvement theory as the rationales for Indian companies pursuing reverse stock splits and the resultant positive market reaction.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135154014","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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