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1 – 10 of 28Umar Farooq, Mosab I. Tabash, Ahmed Abousamak and Samar Habib
Corporate firms often follow their peer firms to articulate multiple financial decisions. Among the others, trade credit policy is a vital financial decision that can impart its…
Abstract
Purpose
Corporate firms often follow their peer firms to articulate multiple financial decisions. Among the others, trade credit policy is a vital financial decision that can impart its dynamic role in achieving financial efficiency. Therefore, the current analysis aims to assess the role of herding behavior in determining the trade credit policies of corporate firms and its relevant effect on corporate financial performance.
Design/methodology/approach
For this purpose, the financial data of 13089 nonfinancial sector firms from 50 countries are employed and the dynamic generalized method of moments (GMM) model to estimate the regression is applied.
Findings
The empirical findings first reveal that corporate firms actively mimic their peer firms regarding trade credit policies. However, this mimicking behavior hampers the financial performance due to noncompatibility with peers’ trade credit policies. Peer firms often develop such trade credit policies that are not applicable to corporate firms.
Practical implications
Mainly, the findings of the study suggest two implications. First, it highlights the peer effect in terms of trade credit patterns. Second, it elaborates an adverse effect regarding financial performance due to herding of peers’ trade credit policies.
Originality/value
This study adds new thoughts regarding herding behavior in terms of trade credit policy and its possible consequences for corporate financial performance. No study explores such a relationship.
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Auwal Adam Sa’ad, Aishath Muneeza, Razali Haron and Anwar Hasan Abdullah Othman
This paper identified the ṣukūk structure suitable for deficit financing during the COVID-19 crisis. The study also explored the relevant Sharīʿah contracts that could be utilized…
Abstract
Purpose
This paper identified the ṣukūk structure suitable for deficit financing during the COVID-19 crisis. The study also explored the relevant Sharīʿah contracts that could be utilized to issue ṣukūk that is suitable for various jurisdictions and corporations in handling deficit financing during the COVID-19 crisis.
Design/methodology/approach
The authors have adopted a qualitative research approach in which primary and secondary sources available on the subject were reviewed, especially a number of cases related to ṣukūk structures prior to and during the COVID-19 crisis and analyzed their performances and drawn their conclusions.
Findings
The outcome of this paper suggests that certain ṣukūk structures used during the COVID-19 crisis aimed primarily at financing deficit have been successful. Furthermore, these ṣukūk structures are relied very much on the obligator’s/issuer’s cash flow position. It has been revealed that if the ṣukūk is structured on equity-based contracts with lower repayment amount or no payment, it would not trigger default because the nature of this ṣukūk is the sharing of profit and loss, in accordance with a Sharīʿah rule that there will be compensation for any loss only if deliberate and notable negligence is proven. However, if it is debt based or ijarah and wakalah contracts, then the payment to ṣukūk holders ought to be made as agreed and if not, it will trigger default. This payment is to be made from the cash flow of the issuer and if there is an issue in the cash flow of the issuer due to COVID-19, consent from the ṣukūk holders needs to be obtained to reschedule payment as found in the case of the Garuda Indonesia ṣukūk. However, as found in MASB’s IMTN ṣukūk case, if the cash flow of the company is good, then the chances of default are very slim. However, so far, three new ṣukūk in the middle of COVID-19 were issued, one by a corporation and two issued by a sovereign, one of which addresses the liquidity issues during the pandemic, and all these proved that ṣukūk is definitely a viable alternative mode for deficit financing and a reliable option during the COVID-19 pandemic.
Research limitations/implications
This paper looked into the ṣukūk structure, especially the ṣukūk which are yet to mature and the new ṣukūk issued during the crisis caused by the COVID-19 pandemic.
Practical implications
It is anticipated that the outcome of this research will assist the stakeholders in ṣukūk markets to understand the ṣukūk impact on COVID-19 related deficit financing and suggest various structures that could be utilized in the ṣukūk market in an unprecedented situation such as the COVID-19 economic distress.
Social implications
Looking at the social aspect of ṣukūk markets, this paper has endeavored to provide solutions to the financing of deficit for social well-being as a tool to provide relief and social stability in the lives of the people.
Originality/value
The novel COVID-19 pandemic has caused unprecedented economic difficulties and market distress on a global scale; and this research sought to identify the relevant ṣukūk structures to be used for deficit financing during the pandemic crisis, especially the ṣukūk which are yet to mature and new ṣukūk issued during the pandemic crisis. The former includes HDFC Muḍārabah ṣukūk (2019) Maldives and MAHB ṣukūk/IMTN program (2010) Malaysia, while the latter includes IsDB Trust Certificates, Phase 2 of the tranches (2020), the Federal Government of Nigeria Road ṣukūk (May, 2020) and Sharj’ah Government two billion Dirham ṣukūk (June, 2020).
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This research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic…
Abstract
Purpose
This research investigates the Islamic banks’ intermediation role (e.g. branches and deposits) in financing. It also examines how financing contributes to the regions' economic growth and poverty alleviation as a predictor and mediator variable.
Design/methodology/approach
A total of 297 observations were extracted from 33 Indonesian districts and 14 Islamic banks during the period 2012–2020. Fixed-effect regression analysis was used to examine variable’s interactions.
Findings
The empirical results indicate that Islamic banks have adopted a channelling role towards redistributing capital from lender to borrower. Besides, there are crucial roles in developing economies and reducing poverty at the district level. This study also reinforces the critical role of financing in mediating the relationship between branches and deposits as predictor variables and GDP and poverty as outcome variables.
Research limitations/implications
The current study was limited to Indonesian Islamic banks and the district’s perspective. Future research needs to cover sub-districts and other poverty measurements (e.g. human education and development perspectives), including conventional and Islamic banks. It can help practitioners, regulators and researchers observe the dynamic behaviour of the banking sector to understand its role in the economic and social fields.
Practical implications
Bank managers and regulators should promote branches, deposits and financing. It also enlightens people about the essential role of Islamic banks and their fundamental operations in business and economics.
Originality/value
This study contributes to economic literature, bank managers and local governments' decision-making processes by developing and testing an economic growth and poverty model.
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Himanshu Singla, Amandeep Singh and Pooja Mehta
Based on the job demands–resources (JD-R) model, this study aims to answer a key research question, i.e. can the job characteristics (i.e. job demands and resources) affect…
Abstract
Purpose
Based on the job demands–resources (JD-R) model, this study aims to answer a key research question, i.e. can the job characteristics (i.e. job demands and resources) affect intention to retire early? Additionally, a mediating effect of emotional exhaustion and organizational commitment on the relationships of job demands and job resources, respectively, with early retirement intentions has been explored in the study.
Design/methodology/approach
The data has been collected from survey of 450 employees from the banking sector in the state of Punjab (India). A structured questionnaire adapted from past literature has been used as survey instrument for the study. Partial least squares structural equation modelling has been applied in the study using latest version of SmartPLS (version 3.2.8) software.
Findings
Both job resources and job demands have a direct significant impact on early retirement intentions. Moreover, a significant partial mediation effect of emotional exhaustion and affective organizational commitment has also been found out on the relationship of job demands and job resources with early retirement intentions, respectively.
Originality/value
The study makes incremental contribution by highlighting the role of both deterrent and motivational factors that either instigate or discourage early retirement intentions among employees. It offers valuable insights for the organizations to use efforts for curtailing the excessive job demands that lead to emotional exhaustion and further result in early retirement intentions. Besides this, adequate job resources should be provided to the employees that lead to the development of affective organizational commitment, which further helps in sustaining the workforce until their actual retirement age.
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Samuel Affran, Emma Doreen Otiwaa Oppong and Joseph Yenabil Kolug
Family businesses are on the rise and facing severe sustainability challenges. The overall purpose of this thesis is to examine the moderating role of technological resources in…
Abstract
Purpose
Family businesses are on the rise and facing severe sustainability challenges. The overall purpose of this thesis is to examine the moderating role of technological resources in the relationship between marketing innovation and family business sustainability.
Design/methodology/approach
From a post-positivist perspective, this study utilized a quantitative approach and causal research design. 204 family businesses within the Accra Metropolitan Assembly were sampled for this study. Structural Equation Modeling (SMART PLS 4) was utilized for data analysis after a closed-ended questionnaire was used to gather data.
Findings
It was evidenced that marketing innovation has a positive significant effect on family business sustainability. Technological resources have a negative significant moderating effect on the relationship between marketing innovation and family business sustainability.
Originality/value
The originality of this study lies in examining the moderating effect of technological resources on the relationship between marketing innovation and family business sustainability in Ghana, where this phenomenon is less explored.
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Mst. Nirufer Yesmin, Md. Alamgir Hossain, Md. Saiful Islam, Md. Mostafizur Rahman, Nusrat Jahan and Minho Kim
The study aims to ascertain whether educational and social support for entrepreneurs significantly affects university students’ intentions to become successful entrepreneurs. This…
Abstract
Purpose
The study aims to ascertain whether educational and social support for entrepreneurs significantly affects university students’ intentions to become successful entrepreneurs. This study examines the mediating role of the Theory of Planned Behavior (TPB) variables (e.g. entrepreneurial personal attitude, subjective norms and entrepreneurial perceived behavioral control) and entrepreneurial self-efficacy in encouraging young entrepreneurs.
Design/methodology/approach
An online survey with a structured questionnaire collected data from different university students in Bangladesh; subsequently, it was analyzed through the structural equation model.
Findings
The results suggested that educational support has a direct positive relationship with the three variables of TPB. Moreover, the findings indicated that social support positively influences the variables of TPB, entrepreneurial self-efficacy and entrepreneurial intentions. The variables of TPB and entrepreneurial self-efficacy were found to have a significant direct impact on entrepreneurial intentions and also exhibited favorable mediating effects of educational and social support on entrepreneurial intentions.
Research limitations/implications
First, the study is only generalized to some sectors of entrepreneurship activities because the researchers used samples from university students across Bangladesh. Second, the implicit limitation of survey-based research is that respondents need to know more ways of understanding the questionnaires accurately, and some participants need to be taught how to answer the question items.
Practical implications
The main practical implication for the relationship between entrepreneurial intentions and educational support involves different entrepreneurial educational programs, which give rise to attitude, behavior, self-efficacy and intentions and enhance the student's awareness of advancing a successful entrepreneurial career.
Social implications
This study demonstrated that universities and social communities should promote the improvement of innovative thoughts for entrepreneurs and offer essential information about entrepreneurship.
Originality/value
Because entrepreneurial educational support is a crucial factor in entrepreneurial intentions, universities need to develop a practical education system that can help improve the skills required to start new ventures. The results will improve a new route to developing students’ entrepreneurial intentions using the variables of TPB and entrepreneurial self-efficacy. Subsequently, these research findings will help to achieve governmental goals and increase the number of startups in the future.
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