Mohamed Ariff, Alireza Zarei and Ishaq Bhatti
This paper aims to report practice-relevant anomalous investment yield behavior of two types of bonds – Type A, the mainstream bond, and Type B, which is Sukuk – both having…
Abstract
Purpose
This paper aims to report practice-relevant anomalous investment yield behavior of two types of bonds – Type A, the mainstream bond, and Type B, which is Sukuk – both having similar cash-flow-relevant characteristics.
Design/methodology/approach
Bond valuation theory suggests that yields to investors of similarly rated bonds ought to be same. The authors collected time-series data on A and B bonds, all being coupon-paying bonds with similar rating and similar tenor as two matched samples traded in a bond exchange. To ensure the results are extended to different bond sectors, the data set was separated into treasury bonds as risk-free and corporate bonds as risky ones. The data set was further sub-divided into short-, medium- and long-tenor bonds. As the data straddle the Global Financial Crisis period, the authors use appropriate econometric method to control the possible effect from the crisis.
Findings
The average and median yields on Type A bond are significantly different from those of Type B. The test results show significant and systematic differences: treasury bonds of Type A returns yield lower than treasury bonds of Type B; the yields of corporate mainstream bonds (A) are higher than the yields of Sukuk (B). The authors observe these findings constitute a puzzle, being anomalous to theory.
Originality/value
This paper is original in that it is documenting significant differences in pricing of equivalent bonds. This has both theory and practice implications for fixed-income security market practices. The evidence is very strong to suggest that the identical types of bonds may have missing variable that contributes to the difference. Therefore, further research to identify the missing variable is necessary.
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Ken-Yien Leong, Mohamed Ariff, Zarei Alireza and M. Ishaq Bhatti
The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most…
Abstract
Purpose
The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most commonly used theories which are then tested using 19-year banking-firm market data. The usefulness of these models demonstrates with promising results.
Design/methodology/approach
This paper conducts a multi-country study using the multi-model testing approach to evaluate validity of theories and forecast accuracy of banking firms. It employs four methodology models used in finance literature; (1) P/E multiples model, (2) accounting-information-based clean surplus model, (3) theoretical model based on Gordon and Shapiro (1956) method and (4) the Damodaran-Kottler Free Cash Flow or FCF theory based on discounting model.
Findings
The tests show that the four theories under tests have a significant fit with actual price formation. The explained variation ranges from 72 to 92%, so the explanatory power of the theories accounting for variations in bank prices over 19-year period is substantial. The models fit suggest that the P/E model has superior predictive power followed by the RIM, DDM and FCFE. These findings shed new lights on the relative performance of valuation models.
Research limitations/implications
The study is limited in terms of the sample period size for 1999–2019. The availability of essential financial data prior to 2000 is very limited, so one can understand interpretation of statistical results under certain assumptions.
Practical implications
The paper suggests that one-factor model is better than the two-factor model.
Originality/value
The work done in this paper is unpublished and original contribution to banking and finance literature and also not under consideration for publication in any other journal.
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Taha Jafari, Azim Zarei, Adel Azar and Alireza Moghaddam
The paper aims to explore how business intelligence (BI), integration and agility influence supply chain performance.
Abstract
Purpose
The paper aims to explore how business intelligence (BI), integration and agility influence supply chain performance.
Design/methodology/approach
The study was performed by the exploratory sequential mixed method in two phases including meta-synthesis as a qualitative method and survey as a quantitative method. Data were collected through a survey of 369 Iranian companies across various industries. Structural equation modeling was used to test hypotheses.
Findings
The results show that BI, integration and agility play an important role in achieving better supply chain performance. In the meantime, BI has the greatest impact on supply chain performance. Additionally, BI has a positive and significant effect on the integration and agility of the supply chain. The study also found that integration has a direct effect on supply chain agility.
Originality/value
To the best of the authors' knowledge, the paper theoretically and empirically presents a new conceptual model of the relationship between BI, integration, agility and supply chain performance. The study helps researchers and practitioners to achieve insights into supply chain performance improvement.
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Mohammadjavad Shabankareh, Alireza Nazarian, Mohammad Hassan Golestaneh and Fereshteh Dalouchi
Health tourism is a relatively new branch of international tourism that has developed more rapidly than other tourism sectors in recent years. This study aimed to investigate the…
Abstract
Purpose
Health tourism is a relatively new branch of international tourism that has developed more rapidly than other tourism sectors in recent years. This study aimed to investigate the effect of government supports on health tourism development by considering the mediating role of internal and external infrastructures.
Design/methodology/approach
The study population consisted of all experts of two hospitals in Iran, which are frequently visited by foreign tourists (N = 151). A questionnaire, developed by combining standard and researcher-made questionnaires, was used to collect the data. The confirmatory factor analysis (CFA) model was developed in SmartPLS 3 to test the hypotheses.
Findings
The main hypothesis test results indicated that government supports positively affect the development of health tourism. Internal and external infrastructures were also found to mediate the relationship between government supports and health tourism development. In addition, the sub-hypothesis test results showed that internal and external infrastructures are positively affected by government supports, which puts forth the development of health tourism. As the results explained, the most important aspects of internal infrastructures affected by government support were health service quality, cost of health services and applying advanced medical technologies, respectively. Also, different aspects of external infrastructures affected by government supports are as follows: economic, infrastructures and cultural factors.
Originality/value
This study is the first of its kind to examine the impact of both medical and non-medical factors on health tourism and signifies the crucial role of governments in the development of health tourism.
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Reza Tahmoorespour, Mohamed Ariff, Yaasmin Farzana Abdul Karim, Kian Tek Lee and Sharon Dharsini Anthony
This manuscript reports evidence on how debt-taking decisions of top management in a multi-country setting do affect credit rating scores assigned by credit rating agencies (CRAs…
Abstract
Purpose
This manuscript reports evidence on how debt-taking decisions of top management in a multi-country setting do affect credit rating scores assigned by credit rating agencies (CRAs) as global monitors of creditworthiness of borrowers. This aspect has been long ignored by researchers in the literature. The purpose of this paper is twofold. A test model is specified first using theories to connect debt-taking behavior to credit rating scores. Once that model helps to identify a number of statistically significant factors, the next step helps to identify threshold values at which the variables driving debt-taking behavior would worsen the credit rating scores as turning points of the thresholds.
Design/methodology/approach
The study identifies factors driving creditworthiness scores due to debt-taking behavior of countries and develops a correct research design to identify a model that explains (1) credit rating scores and the factors driving the scores and runs (2) panel-type regressions to test model fit. Having found factors driving debt-taking behavior by observed units, the next step identifies threshold values of factors at which point further debt-taking is likely to worsen credit rating risk of the observed units. This is a robustness test of the methodology used. The observed units are 20 countries with data series across 14 years.
Findings
First, new findings suggest there are about six major factors associated with debt-taking behavior and credit rating changes. Second, the model developed in this study is able to account for substantial variability while the identified factors are statistically significant within the normal p-values for acceptance of hypotheses. Finally, the threshold values of factors identified are likely to be useful for managerial decisions to judge the levels at which further debt-taking would worsen the credit rating scores of the observed units.
Research limitations/implications
The observed units are from 20 countries over 14 years of annual data available on credit rating scores (privately obtained from Standard and Poor [S&P]). The sample represents major economies but did not include emerging countries. In that regard, it will be worthwhile to explore the debt-taking behavior of emerging economies in a future study using the methodology verified in this study.
Practical implications
The findings help add few useful guidelines for top management decisions. (1) There are actually factors that are associated with debt-taking behavior, so the authors now know these factors as guides for managerial actions. (2) The authors are free to state that the credit rating changes occur on objective changes in the factors found as significantly related to the debt-taking behavior. (3) The threshold values of key factors are known, so top management could use these threshold values of named factors to monitor if a debt-taking decision is going to push the credit rating to a worse score.
Social implications
There are society-wide implications. Knowing that the world's debt level is high at US$2.2 for each gross domestic product (GDP) dollar across almost 200 countries, any knowledge on what factors help drive creditworthiness scores, thus credit riskiness, is revealed in this paper. Knowing those factors and also knowing the turning points of the factors – the threshold values – likely to worsen creditworthiness scores is a powerful tool for controlling excessive debt-taking by an observation unit included in this study (The dataset in this research can also be used to see inter-temporal movement on debt-taking in a future study).
Originality/value
In the authors' view, there are many studies on debt-taking behavior. But none has connected debt-taking on how (1) named factors are observable to management that affect credit rating changes and (2) if a factor affects creditworthiness, at which point of the factor value, the creditworthiness will flip to worsen the score. These aspects are seldom found in the literature. Hence, the paper is original with practical value at the global level.
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Atefeh Mirhoseini, Shahnaz Nayebzadeh and Alireza Rousta
The geographical location of Yazd province has significant potential for religious tourism. To make the most of this opportunity, it is important to develop an interpretive…
Abstract
Purpose
The geographical location of Yazd province has significant potential for religious tourism. To make the most of this opportunity, it is important to develop an interpretive structural modeling. This paper aims to outline a model for the development of religious tourism in Yazd province as a Global Religious Destination by identifying and analyzing the interaction of effective drivers in future religious tourism development.
Design/methodology/approach
The research methodology is based on the interpretative paradigm and is developmental in nature. It takes an exploratory-analytical approach through the adoption of an inductive method and uses mixed research (qualitative/quantitative) involving religious tourism experts and tourists. The study consists of three main steps. In the first step, effective drivers in future religious tourism development were identified through content analysis of published articles. In the second step, the identified drivers were finalized through a survey of experts. Using futures research and Micmac software, a model was designed to investigate the interaction of the future drivers of religious tourism development. In the third step of the research, 384 tourists who visited Yazd Global Religious Destination participated to check the accuracy of the presented model.
Findings
Content analysis and review of scientific documents have identified 14 effective drivers in future religious tourism development that have finalized in a layered model. The model identified factors from the most influential at level one to the least influential at level eight. the theoretical foundations of this research confirmed by 384 visitors participated.
Originality/value
developing religious tourism, whether in the form of a religious city, a religious value system, a religious ceremony and a religious business, requires a comprehensive view that includes tourist’s mental and visual imagery, destination brand’s ideals and visions, religious belief, governmental and formal activities and the material and spiritual capital that can offer religious life style in the world markets to audiences from all over the world in the best way and in the dynamic conditions of competition between destination brands, occupy the first rungs of the audience’s mental ladder.
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Alireza Arab, Mohammad Ali Sheikholislam and Saeid Abdollahi Lashaki
The purpose of this paper is to review studies on mathematical optimization of the sustainable gasoline supply chain to help decision-makers understand the current situation, the…
Abstract
Purpose
The purpose of this paper is to review studies on mathematical optimization of the sustainable gasoline supply chain to help decision-makers understand the current situation, the exact dimensions of the problem and the models provided in the literature. So, a more realistic mathematical optimization model can be achieved by fully covering all dimensions of the supply chain of this product.
Design/methodology/approach
To evaluate and comprehend the mathematical optimization of the sustainable gasoline supply chain research area, a systematic literature review is undertaken that covers material collection, descriptive analysis, content analysis and material evaluation steps. Finally, based on this process, 69 related articles were carefully investigated.
Findings
The results of the systematic literature review show the main areas of the published papers on mathematical optimization of sustainable gasoline supply chain problems and the gaps for future research in this field presented based on them.
Research limitations/implications
This approach is subject to limitations because the protocol of the systematic review of the research literature only included searching for the considered combination of keywords in the Scopus and ProQuest databases. Furthermore, the protocol used in this paper restricts documents to English.
Practical implications
The results have significant implications for both academicians and practitioners in this field. It can be useful for academics to comprehend the gaps and future trends in this field. Also, for practitioners, it can be useful to identify and understand the parts of the mathematical optimization model, which can help them model this problem effectively and efficiently.
Originality/value
No systematic literature review has been done in this field by considering gasoline to the best of the authors’ knowledge and delivers new facts for the future development of this field.
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Libiao Bai, Shuyun Kang, Kaimin Zhang, Bingbing Zhang and Tong Pan
External stakeholder risks (ESRs) caused by unfavorable behaviors hinder the success of project portfolios (PPs). However, due to complex project dependency and numerous risk…
Abstract
Purpose
External stakeholder risks (ESRs) caused by unfavorable behaviors hinder the success of project portfolios (PPs). However, due to complex project dependency and numerous risk causality in PPs, assessing ESRs is difficult. This research aims to solve this problem by developing an ESR-PP two-layer fuzzy Bayesian network (FBN) model.
Design/methodology/approach
A two-layer FBN model for evaluating ESRs with risk causality and project dependency is proposed. The directed acyclic graph (DAG) of an ESR-PP network is first constructed, and the conditional probability tables (CPTs) of the two-layer network are further presented. Next, based on the fuzzy Bayesian network, key variables and the impact of ESRs are assessed and analyzed by using GeNIe2.3. Finally, a numerical example is used to demonstrate and verify the application of the proposed model.
Findings
The proposed model is a useable and effective approach for ESR assessment while considering risk causality and project dependency in PPs. The impact of ESRs on PP can be calculated to determine whether to control risk, and the most critical and heavily contributing risks and project(s) in the developed model are identified based on this.
Originality/value
This study extends prior research on PP risk in terms of stakeholders. ESRs that have received limited attention in the past are explored from an interaction perspective in the PP domain. A new two-layer FBN model considering risk causality and project dependency is proposed, which can synthesize different dependencies between projects.
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Amir Emami, Elahe Farshad Bakhshayesh and Gadaf Rexhepi
This paper aims to identify and examine the internal and external factors that e-business communities in Iran grapple with within value proposition design.
Abstract
Purpose
This paper aims to identify and examine the internal and external factors that e-business communities in Iran grapple with within value proposition design.
Design/methodology/approach
Although the world and global economy have been vastly affected by the financial crisis and the competitive market, most businesses and trade lines are growing significantly by the power of online marketing and e-trades. However, this process is somehow different in the Iranian market. Using literature review and combining it with the casual-comparative method, this study first reviews the literature on the business model and value proposition design and then shows the main challenges Iranian entrepreneurs face in starting their e-business, especially at the time of severe economic, political sanction.
Findings
This paper attests to two categories of external and internal obstacles to entrepreneurs in the country. Some internal challenges point to obstacles and problems such as poor infrastructure in technology and network equipment, the security of personal data exchanges, improper infrastructure, including the speed of the internet and its bandwidth limit and lack of programming expertise. In the case of external barriers, this paper addresses the economic sanctions and restrictions that have been imposed on internet businesses.
Originality/value
In this study, the authors intend to identify the challenges of internet businesses in Iran and provide effective solutions for creating new value propositions resulting in rapid and sustainable economic growth.