Yousry Ahmed, Yu Song and Mohamed Elsayed
This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns…
Abstract
Purpose
This paper aims to examine whether and how females on the board of directors affect US-listed companies’ merger and acquisition (M&A) decisions. Specifically, the paper concerns the impact of females in the boardroom on the likelihood and type of M&A deals (i.e. foreign vs domestic acquisitions and listed vs unlisted acquisitions).
Design/methodology/approach
Archival data of M&A deals using a sample of 17,899 firm-year observations of the US public companies from 2012 to 2018 are collected and examined using probit and logit models.
Findings
This paper offers three main results supporting the propositions of the behavioral consistency theory. First, female directors are negatively associated with the likelihood of making the acquisition. Second, female directors are positively associated with acquiring domestic rather than foreign targets. Third, female directors are positively associated with acquiring listed rather than unlisted targets.
Research limitations/implications
The findings provide additional evidence-based insights into the debate about diversity on boards with the aim of informing policy and offering practical recommendations for the effective implementation of gender diversity on the boards of companies.
Originality/value
Overall, consistent with the premise of behavioral theory, the results expand the literature on gender diversity by augmenting the argument that females’ behavior in corporate policies is viewed as opposition to change and a tendency toward risk aversion and thus, influences companies’ strategic investment decisions, such as M&A.
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Yousry Ahmed, Mohamed Elsayed and Yuru Chen
This paper aims to examine the effect of family ownership on the payment method of mergers and acquisitions (M&A) deals. It also investigates the market reaction around the…
Abstract
Purpose
This paper aims to examine the effect of family ownership on the payment method of mergers and acquisitions (M&A) deals. It also investigates the market reaction around the announcement of these M&A deals.
Design/methodology/approach
Archival data of M&A deals of a sample of Taiwanese listed firms during 2008–2018 are collected and examined using probit, event study and OLS models. This study addresses the endogeneity concern using the two-stage least squares statistical technique and Heckman’s two-step estimation method.
Findings
This study finds that family firms are more likely to use cash as an exchange medium in M&A deals to avoid the problem of diluting control rights. This study further finds that family firms receive a positive market reaction around the announcement of M&A deals relative to non-family counterparts. The empirical results support the notion that family ownership is a value-creation structure.
Practical implications
The findings provide additional evidence-based insights into the debate about family ownership with the aim of informing policy and offering practical recommendations to expand the US-based literature.
Originality/value
To the best of the authors’ knowledge, this is the first study to provide empirical evidence on the impact of family ownership on payment method choice in M&A activities in Taiwan. It also provides novel evidence that family firms experience value gains when taking M&A investment decisions relative to non-family firms.
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Saad Abdel-Karim El-Hamrawy, Ahmed Ebrahim Abu El-Maaty and Ahmed Yousry Akal
Quality measurement is the trigger for quality improvement. Indeed, what gets measured gets done. The real scope of quality improvement in construction projects is the difficulty…
Abstract
Purpose
Quality measurement is the trigger for quality improvement. Indeed, what gets measured gets done. The real scope of quality improvement in construction projects is the difficulty and-maybe-lack of quality measurement methods. The purpose of this paper is to identify the factors influencing the quality performance of highway projects in Egypt. Furthermore, this paper also contributes to develop models to measure the quality level of these projects.
Design/methodology/approach
A literature review is conducted to compile a list of factors influencing the quality of highway projects. The resulting list of factors is subjected to a questionnaire survey which was sent to owners, consultants and contractors of highway projects in Egypt. Furthermore, linear regression analysis and statistical fuzzy approaches are adopted for modeling process.
Findings
The survey results show that availability of experienced staff in the owner’s and contractor’s teams during the project execution, asphalt quality and type used in the construction process, pavement is not designed according to the regional conditions, and contractor’s labors and equipment capability are among the most important factors influencing quality performance.
Originality/value
The main contribution of this study is to develop models to measure the quality of highway projects in Egypt. The first model is based on the linear regression analysis, while the second one is based on a statistical fuzzy approach which is a hybrid approach from the fuzzy logic and regression analysis. Validation of the models reveals that the linear regression and the statistical fuzzy models can accurately assess expected quality of any future highway projects at confidence levels 68.97 and 87.44 percent, respectively.
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Ahmed Ebrahim Abu El-Maaty, Amr M. El-Kholy and Ahmed Yousry Akal
Modeling represents the art of translating problems from an application area into tractable mathematical formulations whose theoretical and numerical analysis provides insight…
Abstract
Purpose
Modeling represents the art of translating problems from an application area into tractable mathematical formulations whose theoretical and numerical analysis provides insight, answers and guidance useful for the originating application. The purpose of this paper is to determine the causal causes of schedule overrun and cost escalation of highway projects in Egypt in order to be used as independents variables in mathematical models for predicting the percentages of schedule overrun and cost escalation of such projects in Egypt.
Design/methodology/approach
A survey of a randomly selected samples yielded responses from 40 owners, 15 consultants and 56 contractors. The survey includes 38 schedule overrun factors and 26 cost escalation factors. The effectiveness degree of the identified factors has been identified by the triangle fuzzy approach.
Findings
The results of the survey show that “contractor’s technical staff is insufficient and ineligible to accomplish the project” is the most important cause of schedule overrun, while the major cause of cost escalation is inadequate preparation of the project concerning planning and execution.
Originality/value
The main contribution of this study is predicting the percentages of schedule overrun and cost escalation of highway projects in Egypt. Through the application of the linear regression analysis method and statistical fuzzy theory, four predictive models have been developed and it has been noted that the linear regression-based model shows prediction accuracy better than statistical fuzzy-based model in predicting percentages of schedule overrun and cost escalation.
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Amr Metwally El-Kholy and Ahmed Yousry Akal
This research investigates the financial viability risk factors that threaten the private investor's economic scheme in the public private partnership (PPP) wastewater treatment…
Abstract
Purpose
This research investigates the financial viability risk factors that threaten the private investor's economic scheme in the public private partnership (PPP) wastewater treatment plant (WWTP) projects in Egypt. The aims of this study are to: (1) illustrate and cluster the financial viability risk factors in accordance with the PPP WWTP projects' nature, (2) assess the risk factors' criticality degrees according to their severity and frequency levels of the financial viability, and (3) pinpoint the suited allocation of the financial viability risk factors between the public and private parties.
Design/methodology/approach
Relying on the previous analysts' endeavors, the questionnaire method, the fuzzy synthetic evaluation approach and the hypothetical normal distribution curve model; the severity, frequency, criticality and allocation preference of 32 financial viability risk factors were assessed from 12 Egyptian PPP experts.
Findings
The data analysis yielded that foreign exchange risk, currency risk/inflation, license risk, construction cost-overrun and late site handover are the key factors in arising the financial viability risk issue in the PPP WWTP projects. Considering the discussion of these key risks, the study summarized that the financial viability's key risk factors are notably be affected by the economic, political and administrative circumstances of the host county. Additionally, the inflation lesion was found to be the core reason of most of the key risk factors.
Originality/value
This research originality stems from its contribution to address the gab in the PPP risk assessment literature of the concessionaire's financial viability in the WWTP projects in a country of developing economy as Egypt. This, first, enriches the scholarly based knowledge of the PPP projects' risk analysts of the developing countries. Accordingly, it moves the current PPP risk assessment research further to deeply apprehend these markets' risks. Second, it equips the policymakers in the public and private sectors of such projects with a map that clarifies their assigned risk factors and the responsibilities that each party should bear to generate a mutual stable investment environment for achieving their aims successfully. This, indeed, paves the way for more private investments to be involved in the developing markets' PPP projects with a profitable satisfactory level for the private concessionaire. In the same vein, more WWTP projects, which are highly needed for the public sector and its people, are executed.
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Tariq Zaglol Elrazaz, Moataz Elmassri and Yousry Ahmed
This paper aims to investigate whether UK public targets manage their earnings using real activities manipulation in the period prior to the announcement of a mergers and…
Abstract
Purpose
This paper aims to investigate whether UK public targets manage their earnings using real activities manipulation in the period prior to the announcement of a mergers and acquisition (M&A). It also examines whether the payment method in M&As affects the degree to which takeover targets manipulate earnings.
Design/methodology/approach
Using a sample of 131 UK listed targets acquired over the period 1995–2013, this paper examines real earnings management (REM) by employing OLS regression models. The data related to deals have been mainly collected from Thomson One Banker and Thomson Reuters Eikon databases. REM is examined by investigating abnormal cash flow from operations, abnormal discretionary expenses and abnormal production costs. This analysis was supplemented by conducting additional robustness checks.
Findings
The results show that UK takeover targets manage earnings upwards through cutting discretionary expenses in the year prior to the acquisition, while they do not do so by manipulating sales or production costs. Moreover, targets of cash-only or mixed-payment deals do not have the same strong motivation to manage their earnings as stock-financed deal target counterparts do. Our results continue to hold after using alternative accrual earnings management (EM) measures, controlling for unobservable firm heterogeneity using the fixed-effect model and controlling for endogeneity using the two-stage Heckman (1979) model.
Practical implications
The main findings of this study could be beneficial for various parties involved M&As, such as standard setters and regulators. A need arises to improve disclosure rules and enhance overall financial reporting quality in the capital markets with the aim of reducing information asymmetry and agency conflicts.
Originality/value
As far as the literature on EM around M&As is concerned, only EM by acquirers has been examined, and not much attention has been paid to targets’ EM.
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Ahmed Yousry Akal and Amr Metwally El-Kholy
This work affords a practical checklist that specifies the civil engineering trades-related hazards and offers a safety indicator to identify the safety level of a construction…
Abstract
Purpose
This work affords a practical checklist that specifies the civil engineering trades-related hazards and offers a safety indicator to identify the safety level of a construction project concerning the hazards of the civil engineering trades.
Design/methodology/approach
The methodology depends on reviewing the archival works, visiting the construction sites, utilizing the direct observation and preliminary hazard analysis methods and conducting semistructured interviews to pinpoint and validate the checklist of the civil engineering trades-related hazards. Additionally, a questionnaire-based survey with the rank sum weight technique has been employed to assemble and analyze the data required to build the safety indicator.
Findings
Relying upon the used methodology, 70 hazards under the trades of general environment, earth, demolition, excavation, concrete, dewatering, waterproofing insulation and scaffolding have been pinpointed and validated. This is in addition to the safety level indicator of the civil engineering trades-related hazards (SLICETH), which indicates high viability during its validation in five national and international projects.
Originality/value
The value of this work lies in its ability to tackle the gap existing in the safety management knowledge regarding the notion of the hazards of the civil engineering trades and their influences on the safety performance of the construction projects. As a result, it offers a complete knowledge to the academics and the practitioners for confronting the negative impacts of the civil engineering trades-related hazards. Consequently, it helps in enhancing the safety performance level in the sites of the construction projects.
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Christopher Belford, Delin Huang, Yosri Nasr Ahmed, Ebrima Ceesay and Lang Sanyang
Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are…
Abstract
Purpose
Climate change and its imminent threat to human survival adversely impact the agriculture sector. In an impoverished country like The Gambia, economic costs of climate change are colossal. This study aims to establish a computable general equilibrium (CGE) model for The Gambia’s agriculture sector to examine the effects of climate change on crops, livestock and sea-level rise.
Design/methodology/approach
This study used a CGE model with other climate change impact models to compute the impacts of climate change on The Gambia’s agriculture sector. The social accounting matrix calibrates the results from the various models, thereby generating the baseline results which exemplify a “steady-state” and policy shock results illustrating the medium- and long-term effects of climate change on the country’s agriculture sector.
Findings
The baseline results indicate the status quo showing the neglect of the agriculture sector due to limited investment in the sector. Hence, the sector is the “hardest hit” sector as a result of climate change. When the model factored in climate change in the medium term (2055) and long term (2085), the macroeconomic indicators of gross domestic product, national savings, wages, disposable income and consumer price index deteriorated, elucidating the vulnerability of the economy to climate change. The consumption of groundnuts, cattle and fish will decline by 5%, 5% and 4%, respectively, in the long term. However, the production of all agricultural commodities will decline by an average of 35% for the same period. The results for international trade show that exportation would decline while importation will increase over time. The general price level for agricultural commodities would increase by 3% in 2055 and 5% in 2085. Generally, the results manifest the severity of climate change in the agriculture sector which will have a multiplier effect on the economy. The impact of climate change would result in agriculture and economic decline causing hunger, poverty and human misery.
Originality/value
The caveat of this study revealed the nuances not captured by previous Gambian climate change studies, thus the novelty of the study.
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Mohammad Osama, Aly Sherif and Mohamed Badawy
This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the…
Abstract
Purpose
This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the construction industry. However, most traditional risk analysis techniques are based on theories that deal with each risk factor as an independent, which does not take into consideration the causal relationships between risk factors.
Design/methodology/approach
This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using Bayesian belief networks (BBN). Through a review of the literature, 27 risk factors were identified and categorized as the most common risk factors in the construction industry. A structured questionnaire was performed to estimate the probability and severity of these risks. Through site visits and interviews with experts in the construction field, 200 valid questionnaires were collected. A risk analysis model was developed using BBNs, then the applicability of this model was verified using a case study in Egypt.
Findings
However, the outcome showed that critical risks that manipulate administrative construction projects in Egypt were corruption and bribery, contractor financial difficulties, force majeure, damage to the structure and defective material installation.
Practical implications
The proposed study presents the possibilities available to the project parties to obtain a better forecast of the project objectives, including the project duration, total project cost and the target quality by examining the causal relationships between project risks and project objectives.
Originality/value
This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using BBNs.
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Ali A. Ali, H. Abd El-Wahab, Moustafa S. Abusaif, Ahmed Ragab, Omar A. Abdel-Jaid, E.A. Eldeeb and Yousry A. Ammar
The paper aims to the preparation of novel disperse dye based on azo salicylaldehyde derivatives TF-A [2-hydroxy-5-((3-(trifluoromethyl)phenyl)diazenyl)benzaldehyde] and full…
Abstract
Purpose
The paper aims to the preparation of novel disperse dye based on azo salicylaldehyde derivatives TF-A [2-hydroxy-5-((3-(trifluoromethyl)phenyl)diazenyl)benzaldehyde] and full evaluation of their use as disperse dye TF-ASC [bis 2-hydroxy-5-((3-(trifluoromethyl)phenyl)diazenyl)benzaldehyde Schiff base with 4,4'-methylenedianiline] for dyeing polyester fabric at various conditions.
Design/methodology/approach
The dispersed dye was synthesized via Schiff base condensation in the presence of ceric ammonium nitrate cerium ammonium nitrate 10 mmole% as an eco-friendly catalyst at room temperature. The chemical structure of the prepared dye was characterized via elemental analysis, Fourier-transform infrared spectroscopy, 1H- and 13 C-NMR spectroscopic analysis tools. This study thoroughly examined the dyeing of disperse dye TF-ASC on polyester at various conditions. The characteristics of dyed polyester fabric were measured by colour measurements, as well as light, washing, crock fastness and finally, colour strength. The discrete fourier transform (DFT) theoretical studies, including EHOMO, ELUMO and optimized geometrical structure, were assumed and discussed in detail.
Findings
The results showed that the synthesized organic dye TF-ASC was highly functional and appropriate for this kind of dyeing method. The dyeing fabrics obtained from disperse dye TF-ASC, properties possess high colour strength as well as good overall fastness properties. These dyes had a high affinity for polyester fabric, with just a tiny change in dye affinity when the pH was changed, even under alkaline circumstances. The dye levelness and shade depth of the colour results were good, and there were a variety of hues from light brownish yellow to deep brownish yellow. The results obtained from DFT computational studies such as EHOMO, ELUMO, optimized structure, diploe moment µ and electrophilicity index deduced that prepared organic dye TF-ASC is more applicable as a dispersed dye.
Originality/value
This research is significant because it provides a new dye for dyeing polyethylene terephthalate fibres with exceptional brightness and levelness; the method of preparation is a useful pathway due to its being known as a green chemistry method.