Jayaraman Vijayakumar, Abdul A. Rasheed and Rasoul H. Tondkar
This paper investigates the extent to which country risk ratings influence the inflow of foreign direct investment (FDI). Using International Monetary Fund (IMF) data from over…
Abstract
This paper investigates the extent to which country risk ratings influence the inflow of foreign direct investment (FDI). Using International Monetary Fund (IMF) data from over 100 countries and Euromoney’s country risk ratings over a ten‐year period, this study finds that country risk ratings have a significant influence on FDI. This effect is stronger for US FDI. We also analyze the relative importance of the individual components of the country risk index.
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Rakesh B. Sambharya, Abdul A. Rasheed and Farok J. Contractor
There is considerable variation in the extent of globalization across industries. The authors attempt to identify the structural conditions of the industry that lead to these…
Abstract
Purpose
There is considerable variation in the extent of globalization across industries. The authors attempt to identify the structural conditions of the industry that lead to these variations.
Design/methodology/approach
Based on a sample of 33 manufacturing industries over the nine-year period from 2007 to 2016, the authors test for antecedents of industry globalization.
Findings
The authors find that industry globalization is positively affected by medium levels of barriers to entry, industry competition, industry assistance, low and mediums levels of capital intensity, industry concentration and industry regulation and negatively affected by low levels of technological change and industry assistance. In addition, the life cycle stage of the industry has an impact on the level of globalization with the growth stage having the highest level of globalization.
Research limitations/implications
First, the major limitation of the paper is that the authors rely entirely on trade data to measure the level of industry globalization. The authors did not have a choice because foreign direct investment (FDI) data are available only at the country level. Second, given that globalization can occur at the country, industry and firm levels, the focus on industry-level structural characteristics alone may be seen as a limitation.
Practical implications
The results of the study can provide guidance to practicing managers to apply industry analysis for predicting the potential for and direction of globalization of their industries. This will enable them to formulate appropriate strategies to cope with global competition.
Social implications
The study has important public policy implications. National governments have many levers at their command that can be used to influence the structural characteristics of industries, such as industry regulation, industry assistance and industry concentration. They can selectively use these levers to either facilitate or impede globalization.
Originality/value
Much of the empirical focus of prior research on globalization has been on countries, rather than industries, as the unit of analysis. There is clearly variation in the extent of globalization across industries with some industries highly integrated while others remain primarily local or regional. Based on a novel approach to measure the extent of globalization at the industry level, the authors identify its antecedents. The value of the paper lies in the fact that the analysis of 33 manufacturing industries over a ten-year period shows that the structural characteristics of the industries drive their extent of globalization.
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Jayaraman Vijayakumar, Abdul A. Rasheed and V.S. Krishnan
This paper examines the results of a series of steps taken by the Customs and Excise Department, Government of India, to reduce corruption and prevent leakages of revenue in…
Abstract
This paper examines the results of a series of steps taken by the Customs and Excise Department, Government of India, to reduce corruption and prevent leakages of revenue in customs and excise tax collection and administration. We examine the effectiveness of reward programs and a series of liberalization measures attempted by the department for these purposes. Our study suggests that in the absence of a proper framework for rewards administration, incentive plans do not succeed. On the contrary, the Indian experience suggests that liberalization and simplification of laws and procedures coupled with proper control mechanisms such as professionalized audits work better to reduce corruption and enhance revenue collection.
Ajith Venugopal, Sridhar Nerur, Mahmut Yasar and Abdul A. Rasheed
This study aims to examine how chief executive officer's (CEO) personality traits influence the corporate sustainability performance (CSP) of firms. The paper also examines the…
Abstract
Purpose
This study aims to examine how chief executive officer's (CEO) personality traits influence the corporate sustainability performance (CSP) of firms. The paper also examines the moderating effect of board power on this relationship.
Design/methodology/approach
Using a linguistic tool (IBM's Watson Personality Insight Service), the authors measured the personality traits of 229 CEOs from 176 firms from 2009 to 2018. Firm-level CSP are obtained from the Sustainalytics database. The hypotheses are tested using multiple regression analysis. The robustness of the results of the study is confirmed by addressing endogeneity concerns and by validating the measurement of CEO personality traits using Personality Recognizer, an alternative linguistic tool.
Findings
The results show that CEO personality traits of extraversion and neuroticism are significant predictors of CSP. The paper also identifies board power as a contingent factor that influences the suggested relationships.
Originality/value
Using upper echelon theory and cybernetic big five theory, this paper identifies CEO personality traits as important antecedents of corporate sustainability performance and adds to the micro-foundations of corporate sustainability literature. To the authors’ understanding, this is the first study that examines the influence of CEO personality on CSP using a comprehensive trait framework. The paper also demonstrates the usefulness of text-analytic tools to measure CEO personality traits, thereby contributing to the progress of upper echelon theory.
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Marwan A. Al-Shammari, Soumendra Nath Banerjee and Abdul A. Rasheed
The authors aim to develop and test a theory of dual responsibility to explain the relationship between corporate social responsibility (CSR) and firm performance. The authors…
Abstract
Purpose
The authors aim to develop and test a theory of dual responsibility to explain the relationship between corporate social responsibility (CSR) and firm performance. The authors empirically examine whether firms that meet their economic and social responsibilities simultaneously perform better than firms that fail to do so. In doing so, the authors theoretically extend and empirically test Barney's (2018) call to incorporate the stakeholder perspective with resource-based view (RBV). The authors also examine the moderating effects of firm status on this relationship.
Design/methodology/approach
The authors use a longitudinal panel sample of 137 S&P 500 firms and data for the years between 2004 and 2013 collected from multiple data sources. The authors use stochastic frontiers analysis to measure firm capabilities in the areas of R&D, operations and marketing. These capability measures are then used along with CSR measures and a measure of firm status to test the hypotheses of this study. The authors also conducted several robustness checks and various supplementary analyses using different econometrics techniques and different operationalizations of the key variables of interests.
Findings
The results show that firm CSR is positively related to firm performance and that the effect of CSR on performance is stronger for firms with higher levels of R&D capability and operational capability. The authors also find support for the three-way interaction between CSR, economic responsibility and firm status, suggesting that firms high in both social and economic responsibilities and status will enjoy the highest levels of performance.
Research limitations/implications
The findings of this study are based on large, publicly listed firms in North America. Therefore, their generalizability to other contexts and other types of firms require additional research. The reliance on KLD measures is also a limitation, especially because they have not reported CSR ratings after 2013.
Practical implications
For practicing managers, the main implication of this study is that an optimal balance between market and nonmarket strategies is key for superior performance.
Social implications
The continued debate regarding the firm's purpose can be understood by focusing equally on the two main responsibilities of firms: nonsocial responsibility and social responsibility toward all stakeholders.
Originality/value
The study answers the call to incorporate stakeholder theory into the RBV of the firm by highlighting the critical role of firm capabilities in the relationship between CSR and performance. The study also highlights the role that firm status plays in the relationship between market and nonmarket strategies and firm performance.
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Rotimi Boluwatife Abidoye, Wei Huang, Abdul-Rasheed Amidu and Ashad Ali Javad
This study updates and extends the current work on the issue of accuracy of property valuation. The paper investigates the factors that contribute to property valuation inaccuracy…
Abstract
Purpose
This study updates and extends the current work on the issue of accuracy of property valuation. The paper investigates the factors that contribute to property valuation inaccuracy and examines different strategies to achieve greater accuracy in practice.
Design/methodology/approach
An online questionnaire was designed and administered on the Australian Property Institute (API) registered valuers, attempting to examine their perceptions on the current state of valuation accuracy in Australia. The variables/statements from responses are ranked overall and compared for differences by the characteristics of respondents.
Findings
Using mean rating point, the survey ranked three factors; inexperience valuers, the selection, interpretation and use of comparable evidence in property valuation exercise and the complexity of the subject property in terms of design, age, material specification and state of repairs as the most significant factors currently affecting valuation inaccuracy. The results of a Chi-square test did not, however, show a significant statistical relationship between respondents' profile and the perception on the comparative importance of the factors identified. Except for valuers' age and inexperience valuers and valuers' educational qualification and inexperience valuers and the selection, interpretation and use of comparable evidence in property valuation exercise. Also, the three highly ranked strategies for reducing the level of inaccuracy are: developing a global mindset, use of advanced methodology and training valuers on market forecasting skills.
Practical implications
In order for valuers to provide state-of-the-art service to the public and to remain relevant, there is a need to accurately and reliably estimate valuation figures. Hence, the strategies highlighted in this study could be considered in a bid to reduce property valuation inaccuracy in practice.
Originality/value
This study provides an updated overview of the issue of property valuation inaccuracy in the Australia valuation practice and examines the strategies to reduce it.
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Natalia Diniz-Maganini and Abdul A. Rasheed
When investors experience extreme uncertainty, they seek “safe havens” to reduce their risk, to limit their losses and to protect the value of their portfolios. The purpose of…
Abstract
Purpose
When investors experience extreme uncertainty, they seek “safe havens” to reduce their risk, to limit their losses and to protect the value of their portfolios. The purpose of this paper is to examine the safe-haven properties of Bitcoin compared to the stock market.
Design/methodology/approach
Based on intraday data, this study compares the price efficiencies of Bitcoin and Morgan Stanley Capital Index (MSCI) using Multifractal Detrended Fluctuation Analysis for the second half of 2020. This study then evaluates Bitcoin’s safe-haven property using Detrended Partial-Cross-Correlation Analysis (DPCCA).
Findings
This study finds that the price efficiency of Bitcoin is lower than that of MSCI. Further, Bitcoin was not a safe haven at any time for the MSCI index. The net cross-correlations between Bitcoin and MSCI are weak and they vary at different time scales.
Research limitations/implications
The behavior of market prices varies over time. Therefore, it is important to replicate this study for other time periods.
Social implications
The paper sheds light on the price behavior of Bitcoin during a period of instability. The results suggest that the construction of portfolios should differ based on the time horizons of the investors.
Originality/value
The authors compare Bitcoin against a global equity index instead of a specific country index or commodity. They also demonstrate the applicability of DPCCA in finance research.
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Rakesh B. Sambharya, Farok J. Contractor and Abdul A. Rasheed
The purpose of this paper is to identify some of the major issues relating to the conceptualization and operationalization of industry globalization.
Abstract
Purpose
The purpose of this paper is to identify some of the major issues relating to the conceptualization and operationalization of industry globalization.
Findings
Globalized industries have four important characteristics: cross-border product flows, cross-border capital flows, dispersal of global value chains and global competition. However, lack of availability of data limits our ability to develop an operationalization that encompasses all these four aspects of globalization.
Practical implications
The authors identify some of the most important factors driving industry globalization as well as the major impediments to globalization.
Originality/value
Although the term “globalization” has attained a nearly “taken for granted” status, its meaning is rather vaguely specified and is often context dependent. This paper delineates the domain of the construct and identifies many of the practical issues in operationalizing the construct.
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Abdul-Rasheed Amidu, Deborah Levy, Muhammed Bolomope and Hassan Shuaibu Liman
To inform ways of improving valuation quality, this study seeks to understand the lived experiences of practising valuers regarding the challenges of conducting quality valuations.
Abstract
Purpose
To inform ways of improving valuation quality, this study seeks to understand the lived experiences of practising valuers regarding the challenges of conducting quality valuations.
Design/methodology/approach
This study adopts a qualitative strategy involving 19 semi-structured interviews with valuers in New Zealand. The interview data were analysed using progressive comparative analysis and the constant comparative method, which yielded comprehensive and well-founded conclusions.
Findings
The data analysis revealed several challenges that hinder the improvement and maintenance of valuation quality. These challenges were categorised into nine key areas, covering a wide range of issues, including a wide scope of practice, lack of experienced valuers, inappropriate use of graduate valuers, stakeholder expectations, access to relevant information, differing approaches, valuer attitudes and dissatisfaction with compensation.
Practical implications
The findings of this study have the potential to inform the valuation profession and other stakeholders about the challenges that practising valuers face in conducting quality valuations, which can ultimately lead to improvements in the valuation process.
Originality/value
This study contributes to the valuation literature, by highlighting the lived experiences of valuers in terms of the potential and challenges pertaining to valuation quality improvement. This has been an area that has received limited attention in the past, and an understanding of these issues has the potential to approach valuation quality in new and innovative ways.
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Hassan Shuaibu Liman, Abdul-Rasheed Amidu and Deborah Levy
The complexity of property valuation, coupled with valuers’ cognitive limitations, makes some degree of error inevitable in valuations. However, given the crucial role that…
Abstract
Purpose
The complexity of property valuation, coupled with valuers’ cognitive limitations, makes some degree of error inevitable in valuations. However, given the crucial role that valuations play in the efficient functioning of the economy, there is a need for continuous improvement in the reliability of reported values by enhancing the quality of the decision-making process. The purpose of this paper is to review previous research on valuation decision-making, with particular interest in examining the approaches to improving the quality of valuation decisions and identifying potential areas for further research.
Design/methodology/approach
The paper adopts a narrative approach to review 42 research articles that were obtained from Scopus and Web of Science databases and through author citation searches.
Findings
Our findings show that existing literature is skewed towards examining the use of technology in the form of decision support systems (DSS), with limited research attention on non-technological (i.e. behavioural) approaches to improving the quality of valuation decisions. We summarise the non-technological approaches and note that much of the discussions on these approaches often appear as recommendations arising from other studies rather than original investigations in their own rights.
Practical implications
We conclude that studies investigating the effectiveness of the non-technological approaches to improving valuation decision-making are lacking, providing various avenues for further research.
Originality/value
This paper presents the first attempt to provide a comprehensive overview of non-technological approaches to improving the quality of valuation decisions.