Hind Alnafisah, Sahar Loukil, Azza Bejaoui and Ahmed Jeribi
This paper aims to analyze the connectedness between the natural gas, wheat, gold, Bitcoin and Gulf Cooperation Council (GCC) stock indices with the advent of exogenous and…
Abstract
Purpose
This paper aims to analyze the connectedness between the natural gas, wheat, gold, Bitcoin and Gulf Cooperation Council (GCC) stock indices with the advent of exogenous and unexpected shocks related to the health and political crises.
Design/methodology/approach
For this end, a quantile-based connectedness method is applied on returns of different assets during the period 01/01/2016–05/01/2024.
Findings
The empirical findings display that the existence of time-varying connectedness between markets is well-documented and seems to be stronger during the COVID-19 pandemic and the Russia–Ukraine war. The connectedness is fostered with extreme events, showing that shocks propagate increasingly during turbulent periods compared with calm ones. The connectedness is event-dependent.
Practical implications
The empirical results offer insightful information for policymakers and investors about the contagion effect and volatility spillover among GCC stock markets and other asset classes during different crises.
Originality/value
This study examines different asset classes’ dynamism connection with sock prices in the GCC countries to better apprehend the (dis)similarities between different asset classes in terms of information transmission. It also investigates the connectedness structure among different asset classes under extreme market conditions and how spillover effects across GCC markets and other ones can be time- and event-dependent.
Details
Keywords
Nafisah Yami, Jannine Poletti-Hughes and Khaled Hussainey
The authors motivate this research on the gender diversity of the board because of the recent increases in the number of women in top executive teams (Francis et al., 2015), which…
Abstract
Purpose
The authors motivate this research on the gender diversity of the board because of the recent increases in the number of women in top executive teams (Francis et al., 2015), which has probably been the result of the adoption of legislation for gender quotas as well as the establishment of corporate governance recommendations for gender diverse boards in several countries. The purpose of this study is to consider the quality of board directors when examining the effect of female directors on earnings management.
Design/methodology/approach
The analyses follow the system generalized method of moment to address endogeneity concerns (e.g. a board with higher quality is more likely to have female directors on board and vice versa). Besides the lags of the endogenous variables, the authors use the female industry ratio as an additional instrument (Liu et al., 2014), as female directors might be inspired by other female directors according to industrial sectors (measured by the two-digit industry codes), where competitors are likely to follow gender diversity practices of other firms within the same industrial sector.
Findings
The authors’ findings show a negative and significant association between board gender diversity and earnings management (EM), suggesting that independent female directors are the drivers of such effect. High-quality boards decrease the incidence of EM but hinder the potential involvement from female directors towards reducing EM. The incumbent effect of high-quality boards on female director’s contribution on EM reverses with less powerful CEOs.
Originality/value
The authors contribute to the extant literature by recognizing that the effectiveness of a female director on decreasing EM is a function of the environment in which decision-making takes place (i.e. board quality/powerful CEOs).
Details
Keywords
Mohamed Ghroubi and Raouf Ben Khalifa
This study aims to analyze both technical efficiency and allocative efficiency per input within the banking sector, focusing on the interplay among Islamic banks, conventional…
Abstract
Purpose
This study aims to analyze both technical efficiency and allocative efficiency per input within the banking sector, focusing on the interplay among Islamic banks, conventional banks and conventional banks offering Islamic Banking Services (CBIBS). It also investigates the impact of competition on these efficiencies.
Design/methodology/approach
Using data from 37 Islamic banks, 38 CBIBS and 126 conventional banks across 14 countries in the MENA region and Southeast Asia over the period 2002–2022, the authors applied a stochastic frontier production model with first-order conditions, a two-step system generalized method of moments estimator and the Tobit model for robustness checks.
Findings
The findings indicate that Islamic banks demonstrate the highest technical efficiency, whereas CBIBS exhibit the lowest. Despite this, Islamic banks encounter significant challenges in allocative inefficiency, particularly in managing financial capital, which adversely affects their cost efficiency. Interestingly, competition enhances the allocative efficiency of financial capital in conventional banks and CBIBS but diminishes it in Islamic banks. Furthermore, control variables show varied impacts on efficiencies across different banking categories.
Research limitations/implications
These findings emphasize the need for collaboration between regulators and researchers to develop an efficiency measurement method that integrates financial, ethical and social aspects. It also highlights the importance of aligning banking with ethical financing practices and innovating products that optimize resource allocation, thereby enhancing both financial and ethical performance.
Originality/value
To the best of the authors’ knowledge, this paper is the first to analyze the allocative efficiency per input for the three categories of banks: Islamic, conventional and CBIBS, while highlighting the variety of competition effects.