Amar Rao, Mansi Gupta, Gagan Deep Sharma, Mandeep Mahendru and Anirudh Agrawal
The purpose of the present study is to contribute to the existing literature by examining the nexus and the connectedness between classes S&P Green Bond Index, S&P GSCI Crude Oil…
Abstract
Purpose
The purpose of the present study is to contribute to the existing literature by examining the nexus and the connectedness between classes S&P Green Bond Index, S&P GSCI Crude Oil Index, S&P GSCI Gold, MSCI Emerging Markets Index, MSCI World Index and Bitcoin, during the pre-and post-Covid period beginning from August 2011 to July 2021 (10 years).
Design/methodology/approach
The study employs time-varying parameter vector autoregression and Quantile regression methods to understand the impact of events on traditional and upcoming asset classes. To further understand the connectedness of assets under consideration, the study used Geo-Political Risk Index (GPR) and Global Economic Policy and Uncertainty index (GPEU).
Findings
Findings show that these markets are strongly linked, which will only expand in the post-pandemic future. Before the pandemic, the MSCI World and Emerging Markets indices contributed the most shocks to the remaining market variables. Green bond index shows a greater correlation and shock transmission with gold. Bitcoin can no longer be used as a good hedging instrument, validating the fact that the 21st-century technology assets. The results further opine that under extreme economic consequences with high GPR and GPEU, even gold cannot be considered a safe investment asset.
Originality/value
Financial markets and the players who administer and communicate their investment logics are heavily reliant on conventional asset classes such as oil, gas, coal, nuclear and allied groupings, but these emerging asset classes are attempting to diversify.
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This study aims to examine the association between carbon disclosure and board diversity by drawing on a multiple theoretica frameworks that embody five dimensions, namely, board…
Abstract
Purpose
This study aims to examine the association between carbon disclosure and board diversity by drawing on a multiple theoretica frameworks that embody five dimensions, namely, board nationality, gender, independence, tenure and age, within firms with varying decarbonization performance and industry carbon impact.
Design/methodology/approach
This study uses the generalized method of moments approach. The sample includes Société des Bourses Françaises 120 (SBF 120) nonfinancial French listed firms for a period of 10 years (2010–2019).
Findings
Being sensitive to increased stakeholders’ information demands, diverse boards tend to disclose a higher volume of carbon information to improve environmental transparency and protect firm legitimacy. Findings show that board independence and nationality play a key role in enhancing carbon disclosure.
Research limitations/implications
The authors’ evidence underscores the crucial role of board diversity in shaping sustainability strategies and disclosure in an economy targeting carbon neutrality. The study encourages management and policymakers to increase board diversity that goes beyond gender diversity.
Originality/value
To the best of authors’ knowledge, this study is the first to investigate the role of board diversity as a multidimensional concept in enhancing the carbon disclosure of SBF 120 large firms, which are subject to communicating their contributions to reducing their carbon footprint.
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Kathyayini Kathy Rao and Carol Tilt
Within the board diversity literature, the issue of gender diversity has been extensively studied, however, limited research has examined whether gender diversity at board level…
Abstract
Purpose
Within the board diversity literature, the issue of gender diversity has been extensively studied, however, limited research has examined whether gender diversity at board level has any influence on corporate social responsibility (CSR) decisions. This paper aims to fill this knowledge gap and shed light on whether, and how, gender diversity influences CSR related decisions.
Design/methodology/approach
In total, 13 in-depth semi-structured interviews were conducted with board members of Australian companies to examine their perceptions of the effect of gender diversity.
Findings
Although the findings show evidence that there is a general perception that gender diversity has the potential to influence board level decisions, this does not appear to translate to CSR decisions specifically. The results from the interviews identified that several issues and moderating factors interact with the gender-CSR relationship.
Research limitations/implications
The paper contributes significantly to the body of knowledge by going beyond the plethora of quantitative analyses. The results suggest that there is much work to be done to improve governance policy and mechanisms if boards are to see the potential for gender to have a positive impact on CSR decision-making.
Originality/value
The study responds to calls for more research adopting qualitative studies, including interviews and case studies, to understand the complex interactions that take place during board decision-making. The findings provide useful insights for future research, practise and policymakers.
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Gangadhar Ch, Nama Ajay Nagendra, Syed Mutahar Aaqib, C.M. Sulaikha, Shaheena Kv and Karanam Santoshachandra Rao
COVID-19 would have a far-reaching impact on the international health-care industry and the patients. For COVID-19, there is a need for unique screening tests to reliably and…
Abstract
Purpose
COVID-19 would have a far-reaching impact on the international health-care industry and the patients. For COVID-19, there is a need for unique screening tests to reliably and rapidly determine who is infected. Medical COVID images protection is critical when data pertaining to computer images are being transmitted through public networks in health information systems.
Design/methodology/approach
Medical images such as computed tomography (CT) play key role in the diagnosis of COVID-19 patients. Neural networks-based methods are designed to detect COVID patients using chest CT scan images. And CT images are transmitted securely in health information systems.
Findings
The authors hereby examine neural networks-based COVID diagnosis methods using chest CT scan images and secure transmission of CT images for health information systems. For screening patients infected with COVID-19, a new approach using convolutional neural networks is proposed, and its output is simulated.
Originality/value
The required patient’s chest CT scan images have been taken from online databases such as GitHub. The experiments show that neural networks-based methods are effective in the diagnosis of COVID-19 patients using chest CT scan images.
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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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Tarek Eldomiaty, Ola Attia, Wael Mostafa and Mina Kamal
The internal factors that influence the decision to change dividend growth rates include two competing models: the earnings and free cash flow models. As far as each of the…
Abstract
The internal factors that influence the decision to change dividend growth rates include two competing models: the earnings and free cash flow models. As far as each of the components of each model is considered, the informative and efficient dividend payout decisions require that managers have to focus on the significant component(s) only. This study examines the cointegration, significance, and explanatory power of those components empirically. The expected outcomes serve two objectives. First, on an academic level, it is interesting to examine the extent to which payout practices meet the premises of the earnings and free cash flow models. The latter considers dividends and financing decisions as two faces of the same coin. Second, on a professional level, the outcomes help focus the management’s efforts on the activities that can be performed when considering a change in dividend growth rates.
This study uses data for the firms listed in two indexes: Dow Jones Industrial Average (DJIA30) and NASDAQ100. The data cover quarterly periods from 30 June 1989 to 31 March 2011. The methodology includes (a) cointegration analysis in order to test for model specification and (b) classical regression in order to examine the explanatory power of the components of earnings and free cash flow models.
The results conclude that: (a) Dividends growth rates are cointegrated with the two models significantly; (b) Dividend growth rates are significantly and positively associated with growth in sales and cost of goods sold only. Accordingly, these are the two activities that firms’ management need to focus on when considering a decision to change dividend growth rates, (c) The components of the earnings and free cash flow models explain very little of the variations in dividends growth rates. The results are to be considered a call for further research on the external (market-level) determinants that explain the variations in dividends growth rates. Forthcoming research must separate the effects of firm-level and market-level in order to reach clear judgments on the determinants of dividends growth rates.
This study contributes to the related literature in terms of offering updated robust empirical evidence that the decision to change dividend growth rate is discretionary to a large extent. That is, dividend decisions do not match the propositions of the earnings and free cash flow models entirely. In addition, the results offer solid evidence that financing trends in the period 1989–2011 showed heavy dependence on debt financing compared to other related studies that showed heavy dependence on equity financing during the previous period 1974–1984.
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Luca Ferri, Annamaria Zampella and Adele Caldarelli
This paper aims to analyze the determinants of the readability non-financial disclosure prepared under the Directive 2014/95/EU in the agrifood and beverage sector.
Abstract
Purpose
This paper aims to analyze the determinants of the readability non-financial disclosure prepared under the Directive 2014/95/EU in the agrifood and beverage sector.
Design/methodology/approach
To reach this goal, an ordinary least squares (OLS) regression model is proposed employing readability and governance variables. The sample is based on European agrifood and beverage listed firms that exceeding 500 employees and are considered public interest entities, including 744 firm-year-observations from 2017, first year after the Directive entered in force, to 2020, last year available.
Findings
The authors' results suggest the importance of corporate governance mechanisms as drivers in reaching more readability of non-financial information.
Practical implications
This study provides useful suggestions to policy makers and managers for a better understanding of the role played by some factors on non-financial information (NFI) readability. Moreover, findings may help regulators in confirming that the establishment of a Corporate Social Responsibility (CSR) committee is a step in the right direction to strengthening firms' NFI readability. Lastly, this is beneficial for auditors and preparers who will pay more attention to the internal factors that can push for more (or less) understandability of NFI.
Originality/value
This research contributes to the academic and practical debate because it adds new insights into the literature on NFI readability and represents fertile area for future researches.
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Maryam Al-Qahtani and Adel Elgharbawy
The global interest in climate change makes carbon information important for decision-making. This study examines to what extent companies voluntarily disclose and manage…
Abstract
Purpose
The global interest in climate change makes carbon information important for decision-making. This study examines to what extent companies voluntarily disclose and manage greenhouse gas (GHG) information and whether board diversity and industry type explain variations in the level of disclosure and management of GHG information.
Design/methodology/approach
Cross-sectional data analysis is used for the Financial Stock Exchange 350 (UK FTSE 350) in 2017. Disclosure of GHG information is measured using the scores of the Carbon Disclosure Project (CDP), whereas board diversity is measured using gender diversity, board tenure and board skills. The control variables include firm size, leverage, industry type, board meetings, board size, board independence and CEO duality. Ordinal logistic regression (OLR) is used for data analysis.
Findings
The results indicate that representation of female directors in the board of directors positively influences disclosure and management of GHG information. Conversely, a high percentage of directors with a financial and industrial background negatively affects GHG information, while board tenure has no significant effect on GHG information. Concerning the control variables, only firm size and industry type are significant in their relationships to GHG information.
Research limitations/implications
The main limitation of the study is investigating only few variables of board diversity. Future studies could investigate other variables such as cultural diversity and age diversity. Furthermore, cross-sectional data analysis cannot capture the dynamic casual impact between the determinants of disclosure and management of GHG information. Future studies could use long-term data, which may yield results that are more significant.
Originality/value
The study emphasizes the importance of the role of female directors in ensuring more transparency toward climate change activities. The findings of this study could be of interest to policymakers and stakeholders and could be used to take initiatives to reduce gender bias and increase the percentage of women in the boardroom. It is also likely to be beneficial for investors and stakeholders to evaluate carbon footprint of businesses and to assess the extent to which they meet their environmental responsibility.
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Ana Paula Castelo Branco, Maria Teresa Bianchi and Manuel Castelo Branco
This paper aims to examine the relationship between board demographic diversity and human rights reporting for a sample of large Western European companies.
Abstract
Purpose
This paper aims to examine the relationship between board demographic diversity and human rights reporting for a sample of large Western European companies.
Design/methodology/approach
Grounded on resource dependence theory, the authors hypothesize that greater gender, age and nationality diversities will translate into enhanced levels of human rights reporting. The authors use ordinal logistic regression analysis to analyze the association between these types of board diversity and such reporting.
Findings
The findings suggest that the companies in the sample attribute little importance to the reporting of information pertaining to the issue of human rights. They also suggest that only the diversity of nations represented in the board of directors is significant in explaining this type of reporting.
Research limitations/implications
The sample includes only large companies from Western Europe and the analysis covers only one year.
Originality/value
To the best of the authors’ knowledge, this study provides the first empirical analysis of factors influencing human rights reporting conducted on a multiple-country setting. It is also the first investigating the association between boards of directors’ demographic diversity and such reporting.
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Shivendra Singh Rathore and Chakradhara Rao Meesala
The purpose of this paper is to investigate the effect of the replacement of natural coarse aggregate (NCA) with different percentages of recycled coarse aggregate (RCA) on…
Abstract
Purpose
The purpose of this paper is to investigate the effect of the replacement of natural coarse aggregate (NCA) with different percentages of recycled coarse aggregate (RCA) on properties of low calcium fly ash (FA)-based geopolymer concrete (GPC) cured at oven temperature. Further, this paper aims to study the effect of partial replacement of FA by ground granulated blast slag (GGBS) in GPC made with both NCA and RCA cured under ambient temperature curing.
Design/methodology/approach
M25 grade of ordinary Portland cement (OPC) concrete was designed according to IS: 10262-2019 with 100% NCA as control concrete. Since no standard guidelines are available in the literature for GPC, the same mix proportion was adopted for the GPC by replacing the OPC with 100% FA and W/C ratio by alkalinity/binder ratio. All FA-based GPC mixes were prepared with 12 M of sodium hydroxide (NaOH) and an alkalinity ratio, i.e. sodium hydroxide to sodium silicate (NaOH:Na2SiO3) of 1:1.5, subjected to 90°C temperature for 48 h of curing. The NCA were replaced with 50% and 100% RCA in both OPC and GPC mixes. Further, FA was partially replaced with 15% GGBS in GPC made with the above percentages of NCA and RCA, and they were given ambient temperature curing with the same molarity of NaOH and alkalinity ratio.
Findings
The workability, compressive strength, split tensile strength, flexural strength, water absorption, density, volume of voids and rebound hammer value of all the mixes were studied. Further, the relationship between compressive strength and other mechanical properties of GPC mixes were established and compared with the well-established relationships available for conventional concrete. From the experimental results, it is found that the compressive strength of GPC under ambient curing condition at 28 days with 100% NCA, 50% RCA and 100% RCA were, respectively, 14.8%, 12.85% and 17.76% higher than those of OPC concrete. Further, it is found that 85% FA and 15% GGBS-based GPC with RCA under ambient curing shown superior performance than OPC concrete and FA-based GPC cured under oven curing.
Research limitations/implications
The scope of the present paper is limited to replace the FA by 15% GGBS. Further, only 50% and 100% RCA are used in place of natural aggregate. However, in future study, the replacement of FA by different amounts of GGBS (20%, 25%, 30% and 35%) may be tried to decide the optimum utilisation of GGBS so that the applications of GPC can be widely used in cast in situ applications, i.e. under ambient curing condition. Further, in the present study, the natural aggregate is replaced with only 50% and 100% RCA in GPC. However, further investigations may be carried out by considering different percentages between 50 and 100 with the optimum compositions of FA and GGBS to enhance the use of RCA in GPC applications. The present study is further limited to only the mechanical properties and a few other properties of GPC. For wider use of GPC under ambient curing conditions, the structural performance of GPC needs to be understood. Therefore, the structural performance of GPC subjected to different loadings under ambient curing with RCA to be investigated in future study.
Originality/value
The replacement percentage of natural aggregate by RCA may be further enhanced to 50% in GPC under ambient curing condition without compromising on the mechanical properties of concrete. This may be a good alternative for OPC and natural aggregate to reduce pollution and leads sustainability in the construction.