Rabia Najaf, Alice Chin, Agnes Chin, Khakan Najaf and Jeyanthi Thuraisingham
This study aims to examine the association between women on board and business performance. It also aims to investigate the impact of corporate social responsibility (CSR) and…
Abstract
Purpose
This study aims to examine the association between women on board and business performance. It also aims to investigate the impact of corporate social responsibility (CSR) and female directors on stock prices, including the function of female directors in moderating the CSR–market performance link that ultimately provides valuable insights into the impact of gender diversity on corporate boards.
Design/methodology/approach
Data from US publicly listed firms between 2000 and 2018 were collected and analysed using OLS regression, median regression, M-estimator regression and MM-estimator regression at 70% and 95% efficiency. In this study, firm market value was measured through Tobin’s Q, board diversity with ISS database and CSR strength and concern with the KLD database.
Findings
The results indicated that CSR positively impacts market performance by 3.1%, female board representation positively influences market performance by 4.8% and female board members strengthen the CSR–market performance relationship by 1.0% while playing a moderating role. Overall, these studies demonstrated the significance of female boards of directors for enhancing market performance.
Research limitations/implications
This study used the data of US-listed firms from 2000 to 2018. The results have contributed to the ongoing discussion about the importance of gender diversity in boards and its influence on firm success. Further research works are suggested to expand the analysis by including other countries or considering additional factors that may influence the association between CSR, board representation of women and market share.
Practical implications
This study is essential for investors, legislators and CSR institutions in developed countries. The favourable impact of female board presence on market performance and the enhancement of the CSR–market performance relationship highlight the necessity of encouraging gender diversity on boards of directors and CSR activities.
Social implications
This study emphasises the significance of gender balance on corporate boards in solving important social challenges including climate change, resource scarcity and gender equality. Companies can actively assist in addressing global issues and improving the well-being of stakeholders by promoting gender-diverse boards and encouraging CSR efforts.
Originality/value
To the best of the authors’ knowledge, this study is the first study demonstrating that gender diversity on corporate boards moderates the significant association between CSR performance and profitability in the USA. It has contributed to the expanding body of information regarding the moderating influence of female directors on firm value and stronger evidence for female directors in the governance of businesses.
Details
Keywords
Khakan Najaf, Mayank Joshipura and Muneer M. Alshater
This study examined the impact of war/conflict-related news on the Russian and Ukrainian stock markets in the build-up and beginning of the war that sparked in the year 2022.
Abstract
Purpose
This study examined the impact of war/conflict-related news on the Russian and Ukrainian stock markets in the build-up and beginning of the war that sparked in the year 2022.
Design/methodology/approach
In order to examine the impact of war-related news on stock returns, data were gathered from the United States (US) and Russian stock indices, oil price and volatile index (VIX) from Yahoo.finance; Ukrainian stock values from pfts.ua website and daily related news retrieved from nexis.com were analysed. The data were gathered from January 1, 2022 to February 24, 2022. Seeming unrealated regressions (SUR) and exponential generalised autoregressive conditional heteroscedastic (EGARCH) models were carried out to determine the formulated correlations. This study controlled the oil price, US stock returns, Chicago Board Options Exchange (CBOE) VIX and difference in stock returns of Russia and Ukraine.
Findings
The results are presented two-fold: first, war-related news between the two countries enhanced volatility and caused a significant decline in the stock market indices for both countries. Second, the Russian stock market faced a steeper decline in the build-up and the actual beginning of the war than the Ukrainian stock market. Notably, the Russian markets feared the adverse economic consequences that stemmed from the sanctions the US and the Western world imposed.
Research limitations/implications
As this study was based on early evidence, future studies with a longer window may provide better insights. This present study is restricted to the stock returns of the countries directly involved in the build-up towards war. Studies focusing on the impact of other asset classes, currencies, commodities and global stock markets might offer holistic insights.
Practical implications
The study outcomes suggest that global portfolio investors should stay away from stock markets of the war-raged countries and equity markets in general, but instead look for safe-haven assets.
Originality/value
The paper evaluates stock markets' performance during the pre-war period, considering the context of this historical war between the neighbours. It is important to understand this issue as this war is subject to sanctions by the US and leads to a global supply chain crisis.
Details
Keywords
Alice Chin, Ooi Chin Lye and Khakan Najaf
One of the significant components of a firm's overall sustainability is establishing and nurturing governance. This study attempts to understand how politically connected firms…
Abstract
Purpose
One of the significant components of a firm's overall sustainability is establishing and nurturing governance. This study attempts to understand how politically connected firms maintain sustainability measures in terms of risk-taking strategies. This paper has two purposes. The first purpose is to provide empirical evidence on the politically connected (PC) firms' corporate risk-taking and performance. The second purpose is to investigate the moderating impact of PC firms' risk on corporate performance.
Design/methodology/approach
To conduct the analysis to test our hypothesis efficiently, data has been collected from Bloomberg and annual reports of all Malaysian PC and non-PC companies. The final sample comprises 561 firms over the investigation period 2010–2019. The methodology entails Ordinary Least Squares (OLS) regressions of the impact of the PC firms on corporate risk-taking and performance. The authors also conduct t-tests of the equality of means of corporate risk-taking and performance between PC and non-PC companies.
Findings
The authors’ results show that politically connected firms undertake significant less corporate risk and relish higher financial performance than their counterparts. It implicatively insinuates that the presence of a politician on the board enables the management to mitigate the risk-taking, which makes the firms more profitable. The authors’ results corroborate network theory, suggesting that political ties alleviate the agency issue and safeguard the shareholders' interest.
Research limitations/implications
The study's results were important as they highlighted the sustainable development of PC and non-PC companies, offering insights to researchers, policymakers, regulators, financial report users, investors, environmental unions, employees, clients and society.
Originality/value
This paper is novel since it is unique in evaluating sustainable practice in PC and non-PC firms.
Details
Keywords
Osama Fayez Atayah, Mohamed Mahjoub Dhiaf, Khakan Najaf and Guilherme Francisco Frederico
This study aims to contribute to the extant literature on logistics by investigating the interrelationship between the financial performance of listed logistics firms and the…
Abstract
Purpose
This study aims to contribute to the extant literature on logistics by investigating the interrelationship between the financial performance of listed logistics firms and the COVID-19 and compare the logistics firms’ financial performance of G-20 countries during the pandemic period.
Design/methodology/approach
To conduct the confirmatory analysis by testing the hypotheses formulated for this study, data have been collected from Bloomberg of all logistics firms from G-20 countries. This paper gathered the first quarter from 2010 until the last quarter of 2020 as the research sample to examine the pandemic impact on financial performance.
Findings
The results show that the financial performance of logistic firms was significantly higher during 2020. Overall, the country-wise findings corroborated with the main results and the financial performance of 14 countries’ logistic firms out of 20 ones analysed has been significantly elevated, during the pandemic period. However, this paper has found out a negative financial performance of the logistics firms during the COVID-19 period in six countries (Germany, Korea, Russia, Mexico, Saudi Arabia and the UK), which support the second proposition.
Research limitations/implications
The study’s results were important as they highlighted the role of logistics firms in offering insights to academics, practitioners, policymakers and logistic firms’ stakeholders. For future research, this paper suggests including some other variables that might influence firm performance and that have not been considered in this study, which is a limitation, and going more deeply into the logistics sector by comparing the financial performance of the sub-sectors.
Practical implications
As the importance of logistics services during the pandemic period is relevant, this study may provide significant insights because the logistics firms play a crucial role by anticipating to ensure the supply of essential items such as food, medicine, then supporting for the continuity of supply chains. The view of finance impacts during the pandemic may provide insightful perspectives for logistics companies, allowing them to understand those impacts and better prepare for likely disruption events such COVID-19 pandemic.
Originality/value
This paper is novel considering that it is unique in evaluating logistics firms’ financial performance from a global perspective, considering the context of this historical pandemic.
Details
Keywords
Khakan Najaf, Ali Haj Khalifa, Shaher Mohammad Obaid, Abdulla Al Rashidi and Ahmed Ataya
This study aims to look at how financial technology (FinTech) companies adhere to sustainable standards in contrast to their counterparts. Following the validation of its new…
Abstract
Purpose
This study aims to look at how financial technology (FinTech) companies adhere to sustainable standards in contrast to their counterparts. Following the validation of its new sustainability index, this study looks into the impact of sustainability on the stock performance of FinTech companies.
Design/methodology/approach
To efficiently test the hypotheses, sample has been collected from the Bloomberg of all FinTech and non-FinTech companies from the USA. The final sample comprises 1,712 company-year observations over the investigation period 2010–2019. The methodology entails ordinary least squares regressions and generalized panel methods of moments (GMM).
Findings
The results suggest that the developed sustainability index is a valid proxy for sustainability measures and directly relates to stock performance. Besides, the evidence indicates that non-FinTech companies display superior sustainability and stock performance compared to FinTech companies. The present results corroborate with stakeholder theory, which implies that quality sustainability performance will alleviate the agency issue and safeguard the shareholders’ interest.
Research limitations/implications
Despite the fact that it presents the limitation of not considering other dimensions of financial performance, this research is important as it highlights the sustainability practices by the FinTech and non-FinTech companies, offering insights to researchers, policymakers, regulators, financial reports users, investors, environmental union, employees, clients and society.
Originality/value
This paper is novel because it is unique in evaluating the sustainability practices in FinTech and non-FinTech firms.
Details
Keywords
Khakan Najaf, Abdul Rashid, Young Kyung Ko and Susela Devi K. Suppiah
This study aims to understand how the COVID-19 pandemic dramatically impacts the maturity of all industrial sectors globally. This paper analyses the general patterns of managing…
Abstract
Purpose
This study aims to understand how the COVID-19 pandemic dramatically impacts the maturity of all industrial sectors globally. This paper analyses the general patterns of managing maturity in terms of performance and risk-taking of S&P 500 industrial sectors while determining their association with COVID-19.
Design/methodology/approach
To analyse the immediate response of COVID-19 on maturity management, the authors gather time-series daily index data of S&P sectors from October 2019 until June 2020 from Bloomberg. The authors select this study period to show the immediate effect of COVID-19 on industrial sector maturity management. The performance and volatility of stock are proxies for managing the maturity of each sector. The authors use vector auto-regression (VAR) methodology to determine the impact of global coronavirus.
Findings
This study’s findings suggest that the information technology sectors outperform the other sectors; in contrast, the utility sector exhibits the worst performance during a pandemic. Furthermore, the real estate sector depicts a higher level of systematic risk pattern than other sectors. Interestingly, the empirical result of VAR shows that almost every sector is significantly negatively affected by this pandemic; however, the consumer discretionary sector is immune to it.
Research limitations/implications
Overall, this study’s findings for individual economic sectors demonstrate that the managing maturity of each sector acts differently to the coronavirus outbreak. This study offers insights to researchers, policymakers, regulators, financial report users, investors, employees, clients and society.
Originality/value
This paper contributes to the existing literature on managing the maturity of industry sectors in terms of observing their trends during the financial crisis.
Details
Keywords
Khakan Najaf, Mohamed Mahjoub M. Dhiaf, Hazem Marashdeh and Osama F. Atayah
Social risk management is vital for growth and business continuity. This study investigates the social risk shift in supply chain management during the Coronavirus Disease 2019…
Abstract
Purpose
Social risk management is vital for growth and business continuity. This study investigates the social risk shift in supply chain management during the Coronavirus Disease 2019 (COVID-19) pandemic.
Design/methodology/approach
Data were retrieved from Bloomberg between 2010 and 2021 regarding all supply chain enterprises from nine countries. The authors undertake a confirmatory examination of formulated hypotheses. Social supply chain risk (SSCR) refers to “firms that took the necessary steps to decrease social risks in their supply chain. Social risks involve the child or forced labor, poor working conditions, lack of a living and fair or minimum wage”. The authors complement the analysis and address the endogeneity issue using the dynamic generalized moments method (GMM).
Findings
A significant positive relationship between COVID-19 and SSCR was discovered in this study. Due to the COVID-19 pandemic, supply chain firms faced supply chain social risk. Notably, SSCR policies differ from one country to another during this period.
Research limitations/implications
The research has some limitations. The sample data are limited to 9 countries. Furthermore, it was somewhat difficult to determine the country-wise difference using COVID-19 as a dummy variable. Future research may adopt qualitative approaches, such as structural or semi-structural interviews.
Practical implications
The results have important implications for supply chain practitioners to consider the critical role of social risk in their operations. COVID-19 has exposed the new political economy and re-centered governments as the key actors in tackling grand challenges to safeguard workers, produce socially useful products and protect their stakeholders. Also, the study highlights the importance of governments and policymakers having a well-structured regulatory framework and environment for firms to comply with the social norms in their supply chain management. Finally, the study's findings should encourage supply chain managers to adopt a proactive mechanism that reduces the social risk impacts of pandemics.
Originality/value
Considering the historical backdrop of the COVID-19 pandemic, this study is unique in measuring the SSCR of enterprises from a worldwide viewpoint.
Details
Keywords
Osama F. Atayah, Khakan Najaf, Md Hakim Ali and Hazem Marashdeh
The purpose of this paper is to provide empirical evidence on the suitability of a Bloomberg Environmental (E), Social (S) and Governance (G) (ESG) disclosure index designed for…
Abstract
Purpose
The purpose of this paper is to provide empirical evidence on the suitability of a Bloomberg Environmental (E), Social (S) and Governance (G) (ESG) disclosure index designed for companies from the USA and to investigate the sustainability quality and stock performance of FinTech companies.
Design/methodology/approach
Data from all FinTech and non-FinTech firms in the USA was acquired from Bloomberg to undertake the study and evaluate the suggested hypotheses efficiently. The final sample consists of 1,672 company-year observations from 2010 to 2019. The methodology used ordinary least squares regressions of performance metrics on the Bloomberg ESG disclosure index and its components.
Findings
The findings indicated that the Bloomberg ESG disclosure index is a valid proxy for sustainability and has a direct relationship with stock performance. Furthermore, this study suggests that non-FinTech firms outperform FinTech firms in sustainability and stock performance. The findings support stakeholder theory, which suggests that increased disclosure of ESG information will mitigate the agency problem and protect shareholders’ interests.
Research limitations/implications
This study’s findings were significant because the findings emphasised ESG disclosure in FinTech and non-FinTech firms, providing information to academics, legislators, regulators, financial report users, investors, environmental unions, workers, customers and society.
Originality/value
This research is unique as it evaluates ESG practices in both FinTech and non-FinTech firms.
Details
Keywords
Khakan Najaf, Mohamed M. Dhiaf, Nohade Hanna Nasrallah, Osama F. Atayah and Hazem Marashdeh
This study contributes to the extant literature on ICT firms by investigating the interrelationship between the health and safety (H&S) measures, market performance, and the…
Abstract
Purpose
This study contributes to the extant literature on ICT firms by investigating the interrelationship between the health and safety (H&S) measures, market performance, and the coronavirus (COVID-19).
Design/methodology/approach
To conduct the confirmatory analysis by testing our hypotheses, data have been collected from Bloomberg of all ICT firms from five countries. The authors gathered from 2010 until 2020 as the research sample to examine the pandemic impact on market performance and H&S measures.
Findings
First, our results reveal a significant and positive relationship between market performance (proxied by Tobin’s Q) and the H&S measures of information technology (IT) firms. Second, the authors find that the IT firms have significantly increased the H&S measures during the COVID-19 period and were dynamic in linking employees’ adaptive capabilities to positive attributes. This has contributed to business success, resiliency, and sustainability.
Research limitations/implications
The authors used a quantitative method of testing our hypotheses. Future studies may consider checking the robustness using qualitative methods such as structural or semi-structural interviews.
Practical implications
The study offers valuable insights to academics, practitioners, stakeholders, policymakers, and international entities by fostering knowledge about responses to crises, integrating digital solutions, and disseminating digital information. The study also has implications on the health, social, business, and economic levels. This study is a call for international and local humanitarian organisations such as United Nations High Commission, Care international and many more to understand the gravity of safety of the workers in the workplace during the pandemic period and introduce a firm-level policy accordingly.
Originality/value
This paper is novel considering that the paper is unique in evaluating ICT firms’ market performance and H&S from a global perspective, considering the context of this historical pandemic.
Details
Keywords
The purpose of this paper is to examine and explain the complex interrelationships which influence the performance of politically connected firms to create value for their…
Abstract
Purpose
The purpose of this paper is to examine and explain the complex interrelationships which influence the performance of politically connected firms to create value for their providers of finance and other stakeholders. In doing so, it examines the interrelationships between efficiency and delivering on corporate performance of a firm with political ties.
Design/methodology/approach
The authors gathered the literature from the Scopus website. They reviewed the literature of 58 manuscripts about the efficiency and performance of politically connected firms.
Findings
The research finds that the better quality of efficiency of politically connected firms is positively related to the corporate performance of politically connected firms. The authors’ theoretical findings corroborate the political theory, agency theory, stakeholder theory, resource dependency theory and stewardship theory. These theories prove that political connections have an impact on firm performance as a politician reinforces the efficacy. To better understand the effect of political connections on solid performance due to efficiency, this study classifies various efficiencies and links them with political ties.
Research limitations/implications
Several avenues of research are suggested to examine further the interrelationships identified.
Practical implications
The authors’ conceptual findings are valuable for institutional investors, policymakers and stakeholders. To sum up, all theoretical shreds of evidence prove that politically connected firms can enhance performance via efficiency.
Originality/value
The paper conceptualizes the efficiency and performance interrelationships of politically connected firms. The extant literature comparison allows an assessment of the extent to which different efficiency contexts lead to differences in performance.