Mahmoud Agha, Md Mosharraf Hossain and Md Shajul Islam
This study examines the impact of chief executive officer (CEO) power, institutional investors and their interaction on green financing provided by Bangladeshi financial…
Abstract
Purpose
This study examines the impact of chief executive officer (CEO) power, institutional investors and their interaction on green financing provided by Bangladeshi financial institutions and the moderating effect of government policy and CEO political connections on these relations.
Design/methodology/approach
We employ ordinary least squares (OLS) regressions and interaction terms among variables of interest for the empirical analysis.
Findings
Green financing decreases with CEO power, implying that CEOs of this country’s financial institutions are averse to green loans, whereas institutional investors increase green financing extended by these institutions. The government policy, which includes financial incentives for complying financial institutions, strengthens institutional investors' positive impact on green financing, but it does not change CEOs' aversion to green loans. Institutional investors have a positive moderating effect on the relationship between green finance (GF) and CEO power, but this positive moderating effect is negated in banks where the government owns a stake, possibly because CEOs of state-owned financial institutions are politically connected, which reduces institutional investors’ influence over them.
Originality/value
This study is unique in that it is the first to examine how the interaction among different stakeholders affects green financing in a unique setting. As the literature is almost silent on this topic, the findings of this paper are expected to raise policymakers’ awareness of the obstacles that hamper the efforts of developing countries to go green.
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Md. Sazol Ahmmed, Md. Faisal Arif and Md. Mosharraf Hossain
Solid waste (SW) is the result of rapid urbanization and industrialization, and is increasing day by day by the increasing number of population. This thesis paper emphasizes on…
Abstract
Purpose
Solid waste (SW) is the result of rapid urbanization and industrialization, and is increasing day by day by the increasing number of population. This thesis paper emphasizes on the prediction of SW generation in the city of Dhaka and finding sustainable pathways for minimizing the gaps in the existing system.
Design/methodology/approach
In this paper, the survey of different questionnaires of the Dhaka South City Corporation (DSCC) was conducted. The data of SW generation, for few years of each month, in the city of Dhaka were collected to develop a model named Artificial Neural Network (ANN). The ANN model was used for the accurate prediction of SW generation.
Findings
At first, by using the ANN model with the one hidden layer and changing the number of neurons of the layer different models were created and tested. Finally, according to R values (training, test, all) the structure with six neurons in the hidden layer was selected as the suitable model. Finally, six gaps were found in the existing system of solid waste management (SWM) in the DSCC. These gaps are the main barrier for the better SWM.
Originality/value
The authors propose that the best model for prediction is 12-6-3, and its training and testing results are given as 0.9972 and 0.80380, respectively. So the resulting prediction is so much close in comparison with actual data. In this paper, the opportunities of those gaps are provided for working properly and the DSCC will find the better result in the aspect of SW problem.
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Md Mosharraf Hossain, Richard Arthur Heaney and SzeKee Koh
This paper aims to address the question of whether acquiring firm directors trading, prior to a merger or acquisition (M&A) announcement, predicts the share market reaction on M&A…
Abstract
Purpose
This paper aims to address the question of whether acquiring firm directors trading, prior to a merger or acquisition (M&A) announcement, predicts the share market reaction on M&A announcement.
Design/methodology/approach
Event studies and cross-section regression were used in this analysis.
Findings
This paper finds that acquiring firms with no director trading and firms with net director purchases in the 12 months prior to the M&A announcement earn positive abnormal returns. It is also found that share market reaction to M&A announcements is considerably larger for acquiring firms whose directors do not trade relative to those companies with directors who do trade over the prior 12 months. This director non-trading result is further born out in regression analysis.
Research limitations/implications
The absence of pre-M&A announcement director trading could reflect lower agency costs for the acquiring firm and this might explain to stronger announcement day effect for this group of firms.
Practical implications
The fact that directors choose not to trade in their shares prior to a M&A transaction appears to be viewed as good news by the market.
Social implications
Director trading is value relevant for the acquiring firm and so it is critical that director trading is transparent.
Originality/value
To the best of the authors' knowledge, this question has not been addressed in the literature before, particularly the finding for firms with no director trading in the period prior to the M&A announcement.
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Md Shamim Hossain, Md Zahidul Islam, Md. Sobhan Ali, Md. Safiuddin, Chui Ching Ling and Chorng Yuan Fung
This study examines the moderating role of female directors on the relationship between the firms’ characteristics and tax avoidance in an emerging economy.
Abstract
Purpose
This study examines the moderating role of female directors on the relationship between the firms’ characteristics and tax avoidance in an emerging economy.
Design/methodology/approach
This study employs the second-generation unit root test and the generalised method of moments (GMM) techniques. The Kao residual cointegration test corroborates a long-run cointegration among variables.
Findings
Female directors demonstrate mixed and unusual findings. No significant impact of female directors on tax avoidance is found. In addition, the presence of female directors does not show any negative or significant moderating impacts on the relationship between leverage, firm age, board size and tax avoidance. However, having more female directors can negatively and significantly moderate the relationship between more profitable firms, larger firms and tax avoidance. These findings show that the board of directors could use the presence of female directors to maximise their opportunistic behaviour, such as to avoid tax.
Research limitations/implications
Research limitations – The study is limited by considering only 62 listed firms. The scope could be extended to include non-listed firms.
Practical implications
Research implications – There is increasing pressure for female directors on boards from diverse stakeholders, such as the European Commission, national governments, politicians, employer lobby groups, shareholders, and Fortune and Financial Times Stock Exchange (FTSE) rankings. This study provides input to decision-makers putting gender quota laws into practice. Our findings can help policy-makers adopt regulatory reforms to control tax avoidance practices and enhance organisational legitimacy. Policymakers can change their policy to include female directors up to the threshold suggested by the critical mass theory.
Originality/value
This is the first attempt in Bangladesh to explore the role of female directors in the relationship between the firms' characteristics and tax avoidance. The current study has significant ramifications for bringing gender diversity into practice as a component of good corporate governance.
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Md Shamim Hossain, Md.Sobhan Ali, Md Zahidul Islam, Chui Ching Ling and Chorng Yuan Fung
This study examines the impact of profitability, firm size and leverage on corporate tax avoidance in Bangladesh, an emerging South Asian economy.
Abstract
Purpose
This study examines the impact of profitability, firm size and leverage on corporate tax avoidance in Bangladesh, an emerging South Asian economy.
Design/methodology/approach
A balanced panel data of 62 firms from Dhaka and Chittagong stock exchanges in Bangladesh from 2009 to 2020 were used to run the regression. This study employed the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) to examine the hypotheses.
Findings
The findings show that large firms positively impact corporate tax avoidance. Similarly, profitability and leverage are positively associated with tax avoidance, and the results are significant. Furthermore, the study conducts robustness tests that confirm the findings.
Research limitations/implications
The use of cash effective tax rate (ETR) to investigate firms’ tax avoidance practices poses some limitations, and the results should be interpreted cautiously.
Practical implications
The current study may help policymakers better enhance tax collection from business firms. The findings could serve as a valuable input for effectively monitoring tax collection from large profit-earning firms.
Originality/value
To the authors' best knowledge, this is the first historical attempt in Bangladesh to use panel data to examine the relationship between the firm’s level characteristics and corporate tax avoidance. Panel data often provides greater flexibility with large data, simplifying calculation and statistical analysis.
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Md Shamim Hossain, Md. Sobhan Ali, Chui Ching Ling and Chorng Yuan Fung
This study aims to identify factors affecting tax avoidance and tax evasion in Bangladesh and propose a future research agenda.
Abstract
Purpose
This study aims to identify factors affecting tax avoidance and tax evasion in Bangladesh and propose a future research agenda.
Design/methodology/approach
This paper reviewed 423 articles published between 2010 and 2023 using a systematic literature review (SLR) approach.
Findings
The review classified the factors into three categories, namely individual taxpayers, corporate taxpayers and tax administration. Income level, tax penalty, tax morale, inefficient tax return system and tax assessment process are associated with the individual’s tax avoidance and tax evasion activities. Profitability, corporate governance and financial restrictions are key factors influencing corporate taxpayers’ involvement in tax avoidance and tax evasion. Factors related to tax administration include lack of social interaction, distrust of national officials, complexities of policies, politicisation of tax authority, lack of political stability, incompetent auditing, insufficient recording, lack of administrative cooperation, lack of accountability, insufficient counselling and compromising in tax prosecution cases.
Practical implications
This paper provides tax regulators with insights to improve regulations and lessen tax avoidance and tax evasion activities.
Originality/value
This paper is the first attempt to provide guidance for academics when examining tax avoidance and tax evasion in Bangladesh.
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Md. Zahid Hasan, Avijit Mallik and Jia-Chi Tsou
Underdeveloped along with developing countries face enough crisis of human resources in high-tech industries. As a result, the amount of waste is higher along with less…
Abstract
Purpose
Underdeveloped along with developing countries face enough crisis of human resources in high-tech industries. As a result, the amount of waste is higher along with less productivity. Highly qualified and smart employees are required as the term “Industry 4.0” introduces a lot of sophisticated and complex technologies that dominates productivity. But in those countries, to cope up with this terminology; neither the educational curriculum and method of teaching has been modified nor changed yet nor will be modified soon. So, the engineering students should be introduced with the aims and technologies of Industry 4.0 and its key technologies so that they can prepare themselves as highly skilled and qualified human resources besides academic courses.
Design/methodology/approach
This article mainly depicts the causes of poor technical skills of the engineering students of Bangladesh and a new learning process has been proposed. The model proposed is basically inspired by Kaizen philosophy consisting of initiation, sharing and implementation cycles. The key aspects of human resource quality and the possibility of gaining innovative human resources for smart industries are given equal priority here. The prime factor to evaluate any learning outcome is quality and this research is a structured guideline to achieve sustainable quality education needed for “Industry 4.0” to engineering students.
Findings
This paper provides statistical analysis on “Fitness of undergraduate engineering students for Industry 4.0”. After applying the proposed methodology on 130 students from different public engineering institutes of Bangladesh, the significant improvement of effectiveness in learning various topics of “Industry 4.0” besides academic studies has justified the method to be a successful one measuring by the criteria for fitness of human resource. This research aims to clarify the sustainable and work-based learning goals and methods for Science, Technology, Engineering and Management (STEM) students and professional courses.
Research limitations/implications
This is a research where the proposed methodology was applied upon academically enrolled engineering students and the result was very satisfactory. A sustainable learning strategy for developing professional skills from academic life can result in better productivity at the beginning of a career. However, this methodology can be applied for job holders or professionals besides their office hours thus it is the future scope of this research methodology.
Originality/value
This research represents the crucial factors related to technical education and skill development for the upcoming challenges and possible remedies needed for Industry 4.0. Therefore, students should become aware of their carrier challenges and the administration concerned for education to minimize the scarcity of skilled human resources needed for the Fourth Industrial revolution.