Ibrahim Musa Gani and Zakaria Bahari
Malaysia is one of the fastest-growing Asian economies with a properly designed and developed Islamic financial system. This unique feature of the Malaysian economy made it an…
Abstract
Purpose
Malaysia is one of the fastest-growing Asian economies with a properly designed and developed Islamic financial system. This unique feature of the Malaysian economy made it an important case study, and the purpose of this study is to assess for the dynamic contribution of Islamic finance to the growth of the real economy.
Design/methodology/approach
The study uses a quarterly data set of 20 years analysed via the autoregressive distributive lag bounds test approach to cointegration.
Findings
The results in the short-run show a non-significant relationship between Islamic banking indices and the real economy. However, in the long-run, financing and deposits of Islamic banks are favourable and contribute significantly to the growth of the Malaysian economy. There was an accumulation of meaningful and wide-ranging investment over the period of the study and productivity of capital was also extra-efficient. The direction of causality is found to be bidirectional between Islamic banking deposits and Malaysian gross domestic product (GDP), but there is a weak causal effect from Islamic banking financing to GDP.
Research limitations/implications
Malaysia has a dual financial system (conventional and Islamic) and both can affect its real economy. This research is limited to Islamic banking’s effects on Malaysian economic growth. The research also limits the scope and coverage for 20 years, from 1998 to 2017 to cover the years for which data is available for all the variables used in the study.
Practical implications
The results confirm that the Islamic banking sector in Malaysia is performing well in carrying out its major function of financial intermediation, which is the pooling and channelling of funds to productive investment activities. Consequently, the fact that Malaysia excels in Islamic finance is not a fluke. It is because of the effective performance of Islamic financial institutions in the country. Furthermore, Malaysian authorities are doing their level best in promoting Islamic financial activities.
Originality/value
The study fulfills the need to uncover the relationship between the Islamic financial system and the real economy in Malaysia. It differs from other studies as it uses the most recent available data, introduces new variables and identifies the channel by which Islamic banking development transmits growth.
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This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance…
Abstract
Purpose
This paper aims to verify whether the integration of sustainability in executive compensation positively affects firms’ non-financial performance and whether corporate governance characteristics enhance the relationship between sustainability compensation and firms’ non-financial performance and to expand the domain of the impact of sustainability on non-financial performance.
Design/methodology/approach
This analysis is based on a sample of companies listed on the Milan Italian Stock Exchange from the Financial Times Milan Stock Exchange Index over the 2016–2020 period. Regression analysis was used by using data retrieved from the Refinitiv Eikon database and the sample firms’ remuneration reports.
Findings
The findings of this paper show that embedding sustainability in executive compensation positively affects firms’ non-financial performance. The results of this paper also reveal that specific corporate governance features can improve the impact of sustainability on non-financial performance.
Research limitations/implications
This analysis is limited to Italian firms included in the Financial Times Milan Stock Exchange Index; however, the findings are highly significant.
Practical implications
The findings provide regulators with useful insights for considering the integration of sustainability goals into executive remuneration. Another implication is that policymakers should require – at least – listed firms to fulfil specific corporate governance structural requirements. Finally, the findings can provide investors and financial analysts with a greater awareness of the role played by executive remuneration in the long-term value-creation process.
Originality/value
This paper contributes to addressing the relationship among sustainability, remuneration and non-financial disclosure, drawing on the stakeholder–agency theoretical framework and focusing on Italian firms. This issue has received limited attention with controversial results in the literature.
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Andrea Lippi and Ilaria Galavotti
This paper aims to explore the relationship between board composition and a firm’s commitment to combatting climate change. Specifically, this study investigates how various…
Abstract
Purpose
This paper aims to explore the relationship between board composition and a firm’s commitment to combatting climate change. Specifically, this study investigates how various characteristics of the board, namely its size and presence of independent directors, and of the directors themselves, including gender diversity, age, educational background and national homogeneity, affect the corporate-level climate change orientation. From a theoretical standpoint, the authors take a cross-fertilizing perspective, bridging upper echelons theory with agency, resource dependence and critical mass theories.
Design/methodology/approach
The study uses ordered probit regression models on a hand-collected multi-country and multi-industry sample of 35 listed firms included in the Global Climate Change Liquid Equity Index (GALPLACC) provided by ECPI. This index is particularly relevant as it focuses on firms that have demonstrated a commitment to climate change, providing a robust dataset for the analysis.
Findings
The findings underscore the importance of disentangling various characteristics of corporate boards and directors. Specifically, the orientation toward climate change is negatively influenced by both board size and having a higher number of independent directors, while it is positively affected by reaching a critical mass of women on the board. Conversely, factors such as average age, educational background and the level of national homogeneity do not show significant effects.
Originality/value
This paper has an exploratory nature and contributes to the ongoing debate on the crucial, yet controversial role played by board-level and directors’ sociodemographic characteristics in shaping a firm’s environmental stance. Moreover, this study offers potential recommendations for policymakers regarding board composition to enhance firms’ climate change orientation.
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This study attempts to identify and analyze the pragmatic functions of religious expressions, that is, invocations that include the name of Allah (God), in naturally occurring…
Abstract
Purpose
This study attempts to identify and analyze the pragmatic functions of religious expressions, that is, invocations that include the name of Allah (God), in naturally occurring social interactions in Najdi Arabic, which is spoken in Central Saudi Arabia.
Design/methodology/approach
Drawing on the speech act theory and politeness model, an analysis of the data illustrates that religious expressions, in addition to their prototypical religious meanings and uses in everyday interactions, are employed to communicate a wide range of pragmatic functions.
Findings
These include signaling the end of a conversation, persuading, mitigating and hedging, showing agreement and approval, reinforcing emphasis, expressing emotions, seeking protection from the evil eye, conveying skepticism and ambiguity, expressing humor and sarcasm, and showing respect and honor. The embedded multifunctional dimension of religious expressions in the present data is interpreted as serving as a politeness marker with which speakers promote both positive politeness (by showing solidarity, claiming common grounds, and building rapport) and negative politeness (by reducing imposition and emphasizing personal autonomy).
Originality/value
This study further highlights the interplay between religion, culture, and language use in Najdi Arabic.
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Muljanto Siladjaja and Yuli Anwar
The purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing…
Abstract
Purpose
The purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.
Design/methodology/approach
This research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.
Findings
The results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.
Research limitations/implications
This test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.
Originality/value
By calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.
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Michael Kuttner, Birgit Feldbauer-Durstmüller and Christine Mitter
This paper provides a comprehensive view about corporate social responsibility (CSR) in Austrian family firms. In detail, the conceptual understanding, motives for…
Abstract
Purpose
This paper provides a comprehensive view about corporate social responsibility (CSR) in Austrian family firms. In detail, the conceptual understanding, motives for, institutionalisation, planning and the outcomes of CSR are investigated. The authors refer to socioemotional wealth and stewardship aspects as explanation approaches for CSR in family firms.
Design/methodology/approach
This study offers new insights into CSR in Austrian family firms based on qualitative data from 30 companies.
Findings
The findings demonstrate that despite numerous social, environmental and economic activities, referral to CSR is just in the beginning, indicating a lack of dissemination of the concept of CSR. The main motives for CSR engagement are image and reputation concerns, a strengthened regional embeddedness and employee-related improvements. Social CSR activities concerning employees and the close company surroundings dominate, whilst environmental CSR measures are often determined by the need for fulfilling the requirements of eco-certifications.
Originality/value
This paper contributes to the existing CSR literature by offering deeper insights into CSR in Austrian family firms (e.g. motives and outcomes of CSR), which are discussed under socioemotional wealth and stewardship aspects. Moreover, a broad range of implications for future research and corporate practice (e.g. family firms, owning family, policy) are discussed.