Ali Amin, Rizwan Ali, Ramiz Ur Rehman and Ahmed A. Elamer
The strategic behavior of family firms is not the same when the top management positions are occupied by nonfamily executives. This study aims to examine the dividend payout…
Abstract
Purpose
The strategic behavior of family firms is not the same when the top management positions are occupied by nonfamily executives. This study aims to examine the dividend payout behavior of family firms in the presence of nonfamily chairperson and nonfamily chief executive officer (CEO).
Design/methodology/approach
The authors used 2,926 firm-year observations of nonfinancial firms listed on Pakistan Stock Exchange over the period 2012–2021. To test the hypotheses, the authors used a generalized method of moments estimation and further applied ordinary least squares regression and fixed effects analysis to check for the robustness of results.
Findings
Using the lens of social identity theory, the authors found that for the sake of a firm’s reputation and to increase the wealth of family, the family firms are associated with higher dividend payout. However, the presence of nonfamily chairperson and nonfamily CEO weakens this positive relationship due to higher information asymmetry leading to lower dividend payout in such firms.
Originality/value
The study adds to the family business literature by highlighting the dividend payout behavior of family firms and providing empirical evidence of distinct behavior of family firms in presence of nonfamily chairperson and nonfamily CEO in context of an emerging economy.
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Ali Amin, Rizwan Ali and Ramiz Ur Rehman
The study aims to examine the influence of female chief executive officer (CEO) and female chief financial officer (CFO) on the linkage between internationalization and firm…
Abstract
Purpose
The study aims to examine the influence of female chief executive officer (CEO) and female chief financial officer (CFO) on the linkage between internationalization and firm performance.
Design/methodology/approach
This study used 2926 firm-year observations of nonfinancial firms listed on the Pakistan Stock Exchange over the period 2012–2021. This study used ordinary least squares regression method to test the hypotheses, and additionally, generalized method of moments estimation and fixed effect analysis were used to check for the robustness of the results.
Findings
Using the framework of upper echelons theory and resource dependence theory, this study reports that internationalization has a positive impact on firm performance. Moreover, the results show that the presence of female CEO and female CFO strengthens the positive relationship between internationalization and firm performance. The results add to the gender diversity literature by highlighting the positive role of female CEOs and female CFOs on the internationalization and performance of firms in a male-dominated society.
Originality/value
This study adds to the limited literature on the internationalization of businesses in an emerging market and provides empirical support to upper echelons theory and resource dependence theory by highlighting the benefits brought to the firm through female CEOs and female CFOs.
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Mushahid Hussain Baig, Jin Xu, Faisal Shahzad, Ijaz Ur Rehman and Rizwan Ali
We empirically investigate the impact of fintech innovation on dividend payout (DP) decisions. In addition, we also examine the mediated and moderated role of intellectual…
Abstract
Purpose
We empirically investigate the impact of fintech innovation on dividend payout (DP) decisions. In addition, we also examine the mediated and moderated role of intellectual capital (IC) and board characteristics (BC) respectively in the fintech innovation-DP relationship.
Design/methodology/approach
Using a sample of 9,441 firm-year observations over the period 2014–2022, we develop a structural model that encompasses fintech innovation, IC, BC and DP decisions. We utilize fixed effects regression to empirically test the model. A battery of tests such as the two-step Generalized Method of Moment, Heckman’s two-stage selection correction and Difference-in-Difference regression are used to check the robustness and sensitivity of the estimates.
Findings
Our results suggest that fintech innovation significantly and positively impacts DP decisions and IC partially mediates the fintech innovation–DP relationship. In addition, BC such as independence, age and gender diversity are found to moderate this relationship.
Originality/value
This study’s originality lies in its micro-level analysis of the impact of fintech innovation on DP decisions, considering a novel firm-level innovation metric derived from patent applications. To our knowledge, no previous work has empirically examined the mediating role of IC and the moderating influence of BC in the fintech innovation–DP relationship, offering a unique perspective on the complex interactions shaping dividend policies in the digital era.
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Rizwan Ali, Jin Xu, Mushahid Hussain Baig, Hafiz Saif Ur Rehman, Muhammad Waqas Aslam and Kaleem Ullah Qasim
This study aims to endeavour to decode artificial intelligence (AI)-based tokens' complex dynamics and predictability using a comprehensive multivariate framework that integrates…
Abstract
Purpose
This study aims to endeavour to decode artificial intelligence (AI)-based tokens' complex dynamics and predictability using a comprehensive multivariate framework that integrates technical and macroeconomic indicators.
Design/methodology/approach
In this study we used advance machine learning techniques, such as gradient boosting regression (GBR), random forest (RF) and notably long short-term memory (LSTM) networks, this research provides a nuanced understanding of the factors driving the performance of AI tokens. The study’s comparative analysis highlights the superior predictive capabilities of LSTM models, as evidenced by their performance across various AI digital tokens such as AGIX-singularity-NET, Cortex and numeraire NMR.
Findings
This study finding shows that through an intricate exploration of feature importance and the impact of speculative behaviour, the research elucidates the long-term patterns and resilience of AI-based tokens against economic shifts. The SHapley Additive exPlanations (SHAP) analysis results show that technical and some macroeconomic factors play a dominant role in price production. It also examines the potential of these models for strategic investment and hedging, underscoring their relevance in an increasingly digital economy.
Originality/value
According to our knowledge, the absence of AI research frameworks for forecasting and modelling current aria-leading AI tokens is apparent. Due to a lack of study on understanding the relationship between the AI token market and other factors, forecasting is outstandingly demanding. This study provides a robust predictive framework to accurately identify the changing trends of AI tokens within a multivariate context and fill the gaps in existing research. We can investigate detailed predictive analytics with the help of modern AI algorithms and correct model interpretation to elaborate on the behaviour patterns of developing decentralised digital AI-based token prices.
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Rizwan Ali, Yanping Liu, Ramiz Ur Rehman and Muhammad Akram Naseem
This study investigates the relationship between corporate social responsibility (CSR) disclosure and financial performance (FP), and ascertains whether ownership structure (OS…
Abstract
Purpose
This study investigates the relationship between corporate social responsibility (CSR) disclosure and financial performance (FP), and ascertains whether ownership structure (OS) moderates the CSR disclosure–FP nexus.
Design/methodology/approach
We distinctly employed the well-established approach of panel data analysis to examine the comprehensive dataset of Shanghai A-share listed firms from 2008 to 2017 with 20,236-full sample and 4,190-disclosed sample firm-year observations. To test the hypotheses, the study used panel regression analysis. The study used CSR disclosure as an explanatory variable and accounting-based performance measures: return on equity (ROE) and earning per share (EPS) as dependent variables. In addition, we used CSR score to determine the extent of disclosure by each firm and employed matched pair sample analysis to check for the robustness of the earlier obtained results.
Findings
The findings indicate significant positive association among CSR disclosure and CSR score with ROE and EPS. Further, the CSR disclosure–FP nexus is more pronounced when the OS moderates it.
Research limitations/implications
The results of this study lack generalizability due to its unique setting. A limitation of this paper is that our sample period only covers 2008–2017. Future studies can extend our research to a more recent period to test whether our findings remain valid in other periods.
Practical implications
Our findings suggest stronger CSR disclosure measures to enhance the image of businesses in the eyes of stakeholders. The study findings are consistent and confirm the theoretical basis (stakeholder theory) that Chinese listed firms can be more beneficial from disclosing CSR related information, and they should put more emphasis on the improvement of CSR disclosure.
Originality/value
This research offers empirical evidence that sheds light on the importance of OS as the moderating effect on the nexus of CSR disclosure–FP measures. In doing so, this study’s findings contribute to the literature significantly, along with the regulators and shareholders.
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Mushahid Hussain Baig, Xu Jin and Rizwan Ali
This study examines whether real earnings management (REM) choices are connected with the ownership structure of politically connected businesses (PCBs). The authors also discuss…
Abstract
Purpose
This study examines whether real earnings management (REM) choices are connected with the ownership structure of politically connected businesses (PCBs). The authors also discuss the moderating role of audit quality (AQ) and family control (FC) on the relationship between PCBs and REM.
Design/methodology/approach
The authors' study sample comprises firms registered on the Pakistan Stock Exchange (PSE). The sample examines the financial data of the firms that remained listed for the last eight years, i.e. from 2011 to 2018, excluding nonfinance companies and firms with incomplete data. The authors test the hypothesis using feasible generalized least squares (FGLS) regression methods.
Findings
The authors find that PCBs show a high level of involvement in income-decreasing REM compared to nonPCBs due to lower litigation risk in REM. However, the authors' results also show that two monitoring mechanisms, AQ and FC, curb the opportunistic behavior of PCBs and reduce the intensity of REM in PCBs.
Practical implications
The findings of the study are beneficial in decision-making for both internal and external stakeholders, such as creditors, shareholders and competitors. In countries like Pakistan, which fall in the category of emerging economies, PCBs show involvement in income-decreasing REM to change the accurate picture of financial information to attain personal goals, and investors in such countries have a low level of knowledge about earnings management strategies; thus, this study offers detailed knowledge and information to investors and shareholders about political connections and REM. This plays a crucial role for regulators in stiffening the rules and regulations to further assist in more secure financial reporting.
Originality/value
This study contributes to the literature by providing a nuanced understanding of the interplay between political connections, REM, FC and AQ in the business context. Second, family-controlled businesses often exhibit distinct characteristics and governance structures compared to nonfamily-controlled firms. Exploring the moderating role of FC in the following relationship could provide valuable insights into how family dynamics influence the financial reporting practices of PCBs. Third, AQ is a critical factor in ensuring financial reporting transparency. However, the interaction between AQ, political connections, and REM remains relatively unexplored. This study explains how audit oversight affects the earnings management behavior of PCBs.
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Suhail H. Serbaya, Ali Rizwan, Manuel Sánchez-Chero, Iram Mushtaq, Mahender Singh Kaswan and Jose Arturo Garza-Reyes
The main objective of the study is to analyze the effectiveness of the advance organizer model (AOM) versus the conventional teaching method (CTM) in teaching high school math…
Abstract
Purpose
The main objective of the study is to analyze the effectiveness of the advance organizer model (AOM) versus the conventional teaching method (CTM) in teaching high school math using game-based learning (GBL) for improved student learning performance.
Design/methodology/approach
Data from 480 students, covering sociodemographics, educational identifiers and actions, were collected across two semesters. The research analyzed factors like interest, motivation, and problem-solving abilities to assess the impact of teaching methods. A quasi-experimental design, due to non-randomized group selection, was used, mitigating differences via analysis of covariance. Students were split into control and test groups, and test scores before and after administering the treatment were calculated. Hypothesis testing was carried out to find the effectiveness of AOM versus CTM. The sample contains a diverse sociodemographic background and educational setting. 175 students in the sample were female and 305 were male. The sample was made up of 14 nationalities, including Saudi Arabia, Jordan, Peru, Iraq and Lebanon. Parent participation was also incorporated through parental satisfaction surveys.
Findings
Despite unknown group differences, the study found significant differences in Mean Retention Scores between the AOM and CTM groups. This suggests that AOM has considerable advantages in teaching mathematics over CTM.
Originality/value
The study of the first kind that explores the effectiveness of different teaching methods based on gamification perspective for improving student performance.
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Greta Keliuotytė-Staniulėnienė and Joana Mačėnaitė
Purpose: This study quantitatively assesses the impact of ESG profile on equity value and risk, as well as identifies potential differences occurring in different sectors, based…
Abstract
Purpose: This study quantitatively assesses the impact of ESG profile on equity value and risk, as well as identifies potential differences occurring in different sectors, based on the data of the Nasdaq Nordic market.
Methodology: To reach this purpose, (i) the stock return and volatility analysis is being conducted (using the methods of paired sample t-test, correlation, etc.), and (ii) panel data models with constant, fixed and random effects are being constructed. The analysis is based not only on the company’s ESG performance but also on a cross-sectoral approach.
Findings: The results revealed that although ESG factors appeared to have a significant impact in most of the constructed models, the impact of these factors varies depending on the sector.
Implications: This research provides a comprehensive and comparative approach to the importance of the ESG profile for investment performance and therefore can be useful both for impact investors making investment decisions in dynamic global financial markets and for companies developing or reforming their ESG strategies.
Limitations: Due to the problem of data availability, the cross-sectoral comparison was performed based on the limited number of sectors. In addition, the limited availability of ESG data in the analysed market did not allow the use of additional methods to assess the impact of ESG.
Future Research: Expanding the data sample and assessing the impact of a company’s ESG profile not only in different sectors but also in different phases of the economic cycle might be the direction for future research.
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The purpose of this paper is to systematically review how agency and stakeholder theories are integrated within corporate governance and environmental disclosure practices in the…
Abstract
Purpose
The purpose of this paper is to systematically review how agency and stakeholder theories are integrated within corporate governance and environmental disclosure practices in the UAE, highlighting their relevance and adaptation to a distinct economic and regulatory environment.
Design/methodology/approach
Using a comprehensive qualitative methodology, this study synthesises a broad spectrum of existing theoretical and empirical research to explore the dynamics of corporate governance mechanisms regarding environmental sustainability. This approach enables a detailed examination of how agency theory’s focus on principal–agent relationships complements stakeholder theory’s broader view of corporate responsibilities.
Findings
This research uncovers significant insights into corporate conduct and responsibility, emphasising the need to balance shareholder objectives with broader stakeholder interests. It identifies key challenges in this integration, such as managing the complexities and potential conflicts between different stakeholder demands. The findings underscore the crucial role of specialised governance mechanisms, like board characteristics and committees, in enhancing environmental transparency and accountability.
Originality/value
This study contributes to the academic discourse by shedding light on the interplay between corporate governance frameworks and environmental disclosure practices within the UAE. It offers fresh insights into applying established theories in a non-Western context. These insights are precious for academics, practitioners and policymakers interested in refining corporate governance and promoting environmental responsibility. The practical implications drawn from the findings empower stakeholders to implement effective strategies that can enhance a firm’s reputation, legitimacy and long-term viability.
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Xiao Ling Ding, Razali Haron and Aznan Hasan
This study aims to determine how Basel III capital requirements affect the stability of Islamic banks globally during the global financial crisis and the COVID-19 pandemic.
Abstract
Purpose
This study aims to determine how Basel III capital requirements affect the stability of Islamic banks globally during the global financial crisis and the COVID-19 pandemic.
Design/methodology/approach
The secondary data for all Islamic banks worldwide from 2004 to 2021 is obtained from the FitchConnect database. The main technique was a two-step generalized method of moment (GMM) system, and the data were tested using pooled ordinary least squares, fixed effects and difference GMM models for robustness checks.
Findings
Regression results support the moral hazard hypothesis based on evidence that both the total capital ratio and the Tier 1 capital ratio have a statistically significant positive impact on the stability of Islamic banks globally. Furthermore, neither the global financial crisis of 2008–2009 nor COVID-19 (2020–2021) significantly impacted the stability of Islamic banks worldwide. The results are robust across alternative measures of stability, capital buffers, dummy variables and estimation techniques. According to the descriptive statistics, the number of Islamic banks that disclose their regulatory capital ratios to the public has increased over the study period, and the mean of total capital and Tier 1 ratios are considerably greater than what is required by Basel II and Basel III.
Research limitations/implications
Bankers, regulators and policymakers should benefit from the evidence on capital and risk management in Islamic banking according to Basel Committee on Banking Supervision (BCBS) and Islamic financial services board (IFSB) international standards in various jurisdictions.
Originality/value
This research builds on earlier studies that were both beneficial and instructive by exploring the relationship between BCBS and IFSB capital guidelines and the trustworthiness of Islamic banks in greater depth. This study uses numerous capital ratios, buffers and stability measures to provide an international context for research on Islamic banking. In addition, the database is up-to-date to include information about the COVID-19 pandemic aftereffects in the year 2021. This study also introduces the Basel membership of Islamic banks to provide context for countries still at the Basel II stage or are yet to begin implementing the Basel III international standard.