Passive investing has established itself as the dominant force in the world of professionally managed assets, surpassing the concept of index funds. Its meteoric rise is fueled…
Abstract
Purpose
Passive investing has established itself as the dominant force in the world of professionally managed assets, surpassing the concept of index funds. Its meteoric rise is fueled by investors’ preference for its dual benefits of strong diversification and low cost. A comprehensive study of the economic model, addressed areas and market structure has not yet been conducted, despite the existence of numerous studies on more specific topics. To address this gap, this paper examines 943 articles on passive investing published between 1998 and 2022 in SCOPUS and Web of Science.
Design/methodology/approach
The study utilizes the most pertinent tools for conducting a systematic review by the PRISMA framework. This article is the result of SLR and extensive bibliometric analysis. Contextualized systematic literature review is used to screen and select bibliographic data, which is then subjected to a variety of bibliometric analyses. The study provides a bibliometric overview of works on passive investment research that are indexed in Scopus and Web of Science. Bibliometrix, VoS Viewer and Cite Space are the tools used to conduct content and network analysis, to ascertain the present state of research, as well as its focus and direction.
Findings
Our exhaustive analysis yields important findings. One, the previous decade has witnessed a substantial increase in the number of publications and citations; in particular, the inter-disciplinary and international scope of related research has expanded; Second, the top three clusters on “active versus passive funds,” “price discovery and market structures” and “exchange-traded funds (ETFs) as an alternative” account for more than fifty percent of the domain’s knowledge; Third, “Leveraged ETFs (LETFs)” and “environmental, social and governance (ESG)” are the two emerging themes in the passive investing research. Fourth, despite its many benefits, passive investing is not suitable for everyone. To get the most out of what passive investing has to offer, investors, intermediaries and regulators must all exercise sufficient caution. Our study makes a substantial contribution to the field by conducting a comprehensive bibliometric analysis of the existing literature, highlighting key findings and implications, as well as future research directions.
Research limitations/implications
While the study contributes significantly to the field of knowledge, it has several limitations that must be considered when interpreting its findings and implications. With our emphasis on academic journals, the study analyzed only peer-reviewed journal articles, excluding conference papers, reports and technical articles. While we are confident that our approach resulted in a comprehensive and representative database, our reliance on Elsevier Scopus and Web of Science may have resulted in us overlooking relevant work accessible only through other databases. Additionally, specific bibliometric properties may not be time-stable, and certain common distribution patterns of the passive investing literature may still be developing.
Practical implications
With this study, it has been possible to observe and chart the high growth trajectory of passive investing research globally, especially post-US subprime crisis. Despite the widespread adoption of passive investing as an investment strategy, it is not a one-size-fits-all proposition. Market conditions change constantly, and it frequently requires an informed eye to determine when and how much to shift away from active investments and toward passive ones. Currency ETFs enable investors to implement a carry trade strategy in their portfolios; however, as a word of caution, currency stability and liquidity can play a significant role in international ETFs. Similarly, LETFs may be better suited for dynamic strategies and offer less value to a long-term investor. Lastly, the importance of investor education cannot be underestimated in the name of the highly diversified portfolio when using passive alternatives, for which necessary efforts are required by regulators and investors alike.
Social implications
The inexorable trend to passive investing creates numerous issues for fund management, including fee and revenue pressure, which forces traditional managers to seek new revenue streams, such as illiquid and private assets, which also implies increased portfolio risk. Additionally, the increased transparency and efficiency associated with the ETF market indicates that managers must rethink the entire value chain, beginning with technology and the way investments interact. Passive investments have triggered changes in market structure that are still not fully understood or factored in. Active management and a range of valuation opinions on whether a price is “too low” or “too high” provide much-needed depth to a market as it attempts to strike a delicate balance between demand and supply forces, ensuring liquidity at all price points.
Originality/value
I hereby certify that I am the sole author of this paper and that no part of this manuscript has been published or submitted for publication.
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Enoch Atinga and Richard Kwasi Bannor
This current review examines the scientific literature report on non-timber forest products (NTFPs) commercialisation and forest conservation in different jurisdictions.
Abstract
Purpose
This current review examines the scientific literature report on non-timber forest products (NTFPs) commercialisation and forest conservation in different jurisdictions.
Design/methodology/approach
A systematic review using Scopus-indexed articles on NTFP commercialisation and forest conservation was done using the PRISMA framework.
Findings
The review categorised the factors influencing the commercialisation of NTFPs and forest conservation into five broad factors and sub-factors: socioeconomic, market-based, ecosystem, cultural and institutional factors. The scholarly publications on NTFP commercialisation and forest conservation have been undulating, with two years recording no publication on the subject matter under review. Besides, China and India in Asia are leading in the number of publications on NTFPs’ commercialisation. The review revealed ambivalence and symbiotic relationship among the factors influencing the commercialisation of NTFPs and forest conservation. Specifically, tenure arrangement, strict regulations to forest entry, market information asymmetry, bureaucracy in certification acquisition, seasonality and distance were identified as barriers to NTFPs’ commercialisation. While market demands for NTFPs increased, NTFPs’ prices and unsustainable harvesting activities were threats to forest conservation. Policymakers should focus on safeguarding customary property rights and indigenous knowledge in forest conservation, designing workable capacity-building schemes for NTFP entrepreneurs and reducing the cost and processes in certification acquisition.
Originality/value
There are reviews on NTFPs’ commercialisation and livelihoods, but a synergy between NTFPs’ commercialisation and forest conservation for forest policy direction is yet to be done in the literature. Also, while earlier studies systematically reviewed literature on NTFPs’ commercialisation, they did not relate the studies to forest conservation.
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David Lau, Koji Ota and Norman Wong
The purpose of this study is to investigate whether audit quality is associated with the speed with which managers revise earnings forecasts to arrive at the actual earnings…
Abstract
Purpose
The purpose of this study is to investigate whether audit quality is associated with the speed with which managers revise earnings forecasts to arrive at the actual earnings through the lens of the auditor selection theory. This study examines this relationship in a unique institutional setting, Japan, where nearly all managers disclose earnings forecasts.
Design/methodology/approach
The authors pioneer an empirical proxy to capture the speed of management forecast revisions based on well-established principles from the finance and disclosure literatures. This proxy is tested alongside other disclosure proxies (namely, accuracy, frequency and timeliness) to assess the influence of audit quality on managerial forecasting behavior.
Findings
This empirical analysis shows that forecast revision speed is higher for firms that select higher-quality auditors. While firms that select higher-quality auditors revise forecasts in a more timely fashion, these firms revise less frequently. Moreover, the authors find that the influence of audit quality on forecast revisions is asymmetric. Specifically, the analysis of downward forecast revisions shows that higher-quality auditors are associated with firms that disclose bad news via forecasts revisions faster, more frequently and in a more timely fashion. However, the analysis of upward forecast revisions shows that higher-quality auditors have no effect on the speed with which firms disclose good news via forecast revisions, even though they are associated with less frequent but more timely forecast revisions. These findings have important implications for prior studies that consistently document an asymmetric response of the stock market to good news and bad news.
Originality/value
The authors provide evidence on the relationship between audit quality and management earnings forecasts using a novel and intuitive measure that captures forecast revision speed. This measure speaks to the growing interest in understanding the notion of speed and timing of voluntary disclosures. This study provides a more robust and comprehensive measure of the speed with which managers revise their earnings forecasts to arrive at the actual earnings. Furthermore, this study is among the first to document an asymmetric effect of audit quality on the type of news disclosed in forecast revisions.
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This paper examines the relationship between transport connectivity and regional economic development in China. It develops measurements appropriate for transport connectivity…
Abstract
This paper examines the relationship between transport connectivity and regional economic development in China. It develops measurements appropriate for transport connectivity based on a set of evaluation models. This model is used to analyze the logistic connectivity of China’s 31 provinces by focusing on 11 variables, including some new factors (Density of road network, Density of railway network, Number of Internet Users) not used in previous studies, over the 13-year period from 2002 to 2014. Using panel data regression analysis, the empirical results show a statistically significant and positive impact of transport connectivity (factors like Density of road network, Density of railway network and Number of Internet Users) on economic development in China. In particular, the Number of internet users is a key factor reflecting information connectivity in all the variables. Comparative analysis regarding economic development is conducted to benchmark between coastal provinces and interior provinces. Like most previous research, this study yields the same finding of higher impact of transport connectivity on economic development in eastern provinces than in western provinces. This study suggests that decentralized decision-making will be significantly more efficient for analyzing regional infrastructure development. It also shows that the influence of transport connectivity on economic development is dependent on a certain developmental stage. This suggests that an economic region should adopt different development strategies for transport connectivity during different stages of development.
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Javad Rajabalizadeh and Hannu Schadewitz
This study aims to investigate the impact of audit partners’ narcissism on the readability of audit reports for companies listed on the Tehran Stock Exchange (TSE). It examines…
Abstract
Purpose
This study aims to investigate the impact of audit partners’ narcissism on the readability of audit reports for companies listed on the Tehran Stock Exchange (TSE). It examines the effects of narcissism among both lead and review audit partners on the clarity of audit reports, considering the regulatory requirements and auditing practices within the Iranian financial reporting context.
Design/methodology/approach
This paper analyzed 2,691 firm-year observations from TSE-listed companies spanning 2011–2023, using ordinary least squares regression. Readability of audit reports was assessed using the FOG index, with the size of partners’ signatures serving as a proxy for narcissism.
Findings
The findings indicate a significant negative relationship between increased narcissism and audit report readability; higher levels of narcissism correspond with elevated FOG index scores. Narcissism in lead partners notably diminishes readability more than that of review partners. This pattern holds across various robustness checks, including alternative readability metrics, variations in auditor engagement complexity, auditor specialization, subsets of qualified audit reports and considerations for endogeneity. Audit reports for economically significant clients tend to be clearer, suggesting a preference for reputation management over yielding to client pressure. Although no direct link was established between partners’ quality and readability, a positive relationship exists between audit firm rank and partners’ narcissism. Furthermore, interactions between auditor and CEO narcissism increase report complexity, especially in contentious negotiation scenarios. Despite regulatory advancements such as International Auditing Standard 701, its moderating effects were found to be inconsequential, highlighting the persistent influence of narcissism on audit report outcomes.
Originality/value
This research expands the understanding of how auditor personality traits, particularly narcissism, affect audit outcomes. By exploring the influence of narcissism on report readability within the Iranian context, this study fills a notable gap in the literature on emerging markets and non-Western reporting environments, providing valuable insights into global audit practices.
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José-María Romero-Rodríguez, María Soledad Ramirez-Montoya, Leonardo David Glasserman-Morales and Magdalena Ramos Navas-Parejo
The aim of this paper was to analyse the creative competence of students before and after a micro-learning experience carried out in a collaborative online international learning…
Abstract
Purpose
The aim of this paper was to analyse the creative competence of students before and after a micro-learning experience carried out in a collaborative online international learning (COIL) environment between Spanish and Mexican university students in the field of education and entrepreneurship.
Design/methodology/approach
A single-group quasi-experimental design with pre-test and post-test measures was adopted. The composition of the group was natural and included a total of 57 students who participated in the COIL experience. The duration was three weeks, where students from both countries were linked together in the development of a micro-learning project. The creativity self-efficacy scale was used as a data collection instrument.
Findings
The micro-learning activities through COIL developed the creative competence of the participating students. In particular, the groups from both universities improved their scores on the creative competence in the post-test compared to the pre-test measure.
Research limitations/implications
The limitations of this study were linked to the sample loss of some cases, as some students did not complete the post-test measure. The main implication of the study was to demonstrate that COIL experiences are suitable for developing certain skills in students, such as creative competence or co-operative work.
Originality/value
COIL experiences break down the barriers of physical space and give students an active role, allowing them to fully develop competences and offering an intercultural perspective, which encourages open-mindedness and understanding of the world.
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Muhammad Yusuf Shaharudin, Zulkhairi Mohamad and Asmah Husaini
The wake of the novel coronavirus (COVID-19) pandemic had caused substantial disruptions to the usual delivery of healthcare services. This is because of restrictive orders that…
Abstract
The wake of the novel coronavirus (COVID-19) pandemic had caused substantial disruptions to the usual delivery of healthcare services. This is because of restrictive orders that were put in place to curb the spread of the infection. Palliative care services in Brunei also face challenges to deliver effective services during this period. However, the impact of advanced illnesses on patients' health and end-of-life care are issues that cannot be planned, postponed or cancelled. Hence, the palliative care team needs to continue to deliver effective palliative care services. As Brunei faced its second pandemic wave in August 2021, crucial adaptations were made to ensure palliative care service was not disrupted. This reflective case study aims to discuss the adaptations made in providing palliative care during this era of disruptions.
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The International Network of Research Management Societies (INORMS) celebrated its 20th anniversary in 2021. It was established to increase communication among research management…
Abstract
The International Network of Research Management Societies (INORMS) celebrated its 20th anniversary in 2021. It was established to increase communication among research management societies. The need for a formal international research management community developed because there was (1) increased international funding of research, (2) the number of international research collaborations was growing, and (3) there was a need to understand research regulations in other countries. INORMS sought to address these issues through international congresses and by providing a forum for member societies to work more closely together on common issues. Membership in INORMS steadily increased over the years. The 20th anniversary meeting was highlighted with the signing of the Hiroshima Statement that described a research manager’s principles and responsibilities, which include collegiality, inclusiveness, professionalisation, innovation, and accountability. This chapter summarises the factors that led to the formation of INORMS and its history.
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Niloofar Jefroy and Fabio Sgarbossa
Libraries, as a peaceful arena for promoting knowledge and culture, are often challenged by various means, which are mostly linked to the material handling. However, literature…
Abstract
Purpose
Libraries, as a peaceful arena for promoting knowledge and culture, are often challenged by various means, which are mostly linked to the material handling. However, literature shorts fall in either recognizing how material handling comes under threat or evaluating the influence of promising solutions on the library’s performance. Thus, this study aims to present a comprehensive understanding of material handling in the library through the identification of characteristics, key performance indicators (KPIs) and challenges of this driving factor.
Design/methodology/approach
This research benefits from a triangulation of qualitative methods, including systematic literature review, case study, in-depth semi-structured interview (SSI) and focus group meetings, to present a comprehensive understanding of material handling in the library.
Findings
The initial findings highlight the characteristics, i.e. incremental inventory, no packaging, open access order, etc., and the KPIs of material handling in the library: flexibility, productivity, service quality and cost. In addition, the challenges that limit the libraries’ performance are discovered based on field observation through five Nordic libraries (Norway and Finland), which are further studied for discovering the potential remedies. Corollaries advise that material handling challenges in the library are potentially tackled through three pillars, known as Triple E’s: employee, equipment and environment.
Originality/value
The performance of libraries is notably linked to the material handling processes and this agenda has received limited attention by academia. This study is among the initial research efforts in this context seeking to develop a comprehensive understanding of the characteristics, KPIs and challenges of material handling in the library and facilitate the improvement of library’s performance.