Author
Basil Al-Najjar
Other affiliations: University of Dammam, University of the West of England, University of London ...read more
Bio: Basil Al-Najjar is an academic researcher from University of Huddersfield. The author has contributed to research in topics: Corporate governance & Dividend policy. The author has an hindex of 24, co-authored 43 publications receiving 1789 citations. Previous affiliations of Basil Al-Najjar include University of Dammam & University of the West of England.
Papers
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TL;DR: In this article, the authors investigate the effect of capital structure and dividend policy on cash holdings in developing countries and compare their results with a control sample from the US and the UK.
192 citations
TL;DR: In this paper, the authors investigated the relationship between ownership structure and capital structure in an emerging market and found that Jordanian firms follow the same determinants of capital structure as occur in developed markets, namely: profitability, firm size, growth rate, market-to-book ratio, asset structure and liquidity.
Abstract: Purpose – The study aims to investigate the comparatively under‐researched relationship between ownership structure and capital structure in an emerging market. It is also one of the first studies to apply both single and reduced‐form equation methods using a panel data approach. Design/methodology/approach – The study applies econometrics modelling using both single equation and reduces equation models for panel data.Findings – The results demonstrate that Jordanian firms follow the same determinants of capital structure as occur in developed markets, namely: profitability, firm size, growth rate, market‐to‐book ratio, asset structure and liquidity. In addition, institutional ownership structure is found to be determined by: assets structure, business risk (BR), growth opportunities and firm size. Finally, the results reveal that assets tangibility, firm size, growth opportunities and BR are considered to be joint determinants of ownership structure and capital structure.Practical implications – The prac...
166 citations
TL;DR: In this paper, the authors investigated the link between eco-efficiency, as environmental policy, and firm value in the United Kingdom (UK) for the period 1999 to 2008 and found that firms engaging in eco-efficient activities are better valued than those without such activities.
Abstract: Many organizations are currently becoming more environmentally friendly. Eco-efficiency maximizes the effectiveness of a business operation while reducing its impact on the environment; with the necessary skills, organizations can create more value while using less input. Prior empirical studies have suggested that firms engaging in eco-efficient activities are better valued than those without such activities. Therefore, this will enhance business efficiency and excellence. This study investigates the link between eco-efficiency, as environmental policy, and firm value in the United Kingdom (UK) for the period 1999 to 2008. We generate new insights into environmental–financial performance by using different definitions of the term ‘eco-efficiency’. In the UK context our results support that eco-efficient firms have higher market values than those lacking environmental strategies. Hence, we recommend that firms become involved in environmental polices since the adoption of these polices will have a positive impact on firm value. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
139 citations
TL;DR: In this article, the authors explored the simultaneous relationship between corporate cash holdings and dividend policy using a large sample of around 400 non-financial firms for the period from 1991 to 2008 and found that cash holdings are affected by dividends, leverage, growth, size, risk, profitability, and working capital ratio.
Abstract: This study explores the simultaneous relationship between corporate cash holdings and dividend policy using a large sample of around 400 non-financial firms for the period from 1991 to 2008. The results show that cash holdings are affected by dividends, leverage, growth, size, risk, profitability, and working capital ratio. Dividend policy is affected by cash, leverage, growth, size, risk, and profit. When controlling for simultaneity, dividend payments do not appear to significantly affect cash holdings, nor do cash holdings affect dividend policy. The empirical analysis suggests that simultaneity is crucial in analyzing corporate cash holdings and dividend policy.
133 citations
TL;DR: In this paper, the authors examined whether the number of outside directors on the board of directors and dividend payout are substitutes or complements mechanisms applied by UK firms to control agency conflicts of interest within the firm.
Abstract: Purpose
– The purpose of this paper is to examine whether the number of outside directors on the board of directors and dividend payout are substitutes or complements mechanisms applied by UK firms to control agency conflicts of interest within the firm.
Design/methodology/approach
– The authors use tobit and logit regression models to examine the extent to which firms with a majority of outside directors on their boards experience significantly lower or higher dividend payout after controlling for insider ownership, profitability, liquidity, asset structure, business risk, firm size, firms' growth rate and borrowing ratio.
Findings
– Based on a sample of 400 non‐financial firms listed at London Stock Exchange for the period from 1991 to 2002, it was found that dividend payout is negatively associated with the number of outside directors on the board of directors.
Originality/value
– The results suggest that firms pay lower dividends when higher number of outside directors is employed on the board. This evidence is consistent with the substitution hypothesis, which indicated that firms with weak corporate governance need to establish a reputation by paying dividends. In other words, dividends substitute for independent directors on the board. This finding offers novel insights to policy makers interested in agency conflicts of interest within the firm. It also provides evidence on the use of different substitute mechanisms for reducing agency costs.
131 citations
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01 Jan 1998
TL;DR: The concept of invariance with respect to transformations of a group is one of the most important and successful ideas of nineteenth century mathematics as discussed by the authors, and it has dominated many branches of mathematics and physics for centuries, a critical review of these methods was initiated by a new look on its foundations.
Abstract: The concept of invariance with respect to transformations of a group is one of the most important and successful ideas of nineteenth century mathematics. After the use of coordinates had dominated many branches of mathematics and physics for centuries, a critical review of these methods was initiated by a new look on its foundations.
463 citations
TL;DR: In this paper, the authors employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries to analyze the Industrial Internet of Things (IIoT) implications according to the Triple Bottom Line (TBL).
Abstract: The Industrial Internet of Things (IIoT) poses several implications on manufacturers in terms of economic, ecological, and social aspects referring to the Triple Bottom Line (TBL) of sustainable value creation. Due to its technical core, the current research focused on its technical fundamentals, whereas the economic discussion is still in its infancy. This paper aims at painting a comprehensive and structured picture of IIoT-related economic, ecological, and social benefits and challenges. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries. Our study contributes to the sparse body of scientific IIoT literature by analysing the IIoT’s implications according to the TBL. We show that, in order to qualify for sustainable industrial value creation, the IIoT requires an extension of the established TBL by three further dimensions, i.e., technical integration, data and information, ...
419 citations
TL;DR: The authors compare the dividend policies of publicly-and privately-held firms in order to identify the forces shaping corporate dividends, and shed light on the behavior of privately held companies, showing that private firms smooth dividends significantly less than their public counterparts, suggesting that the scrutiny of public capital markets plays a central role in the propensity of firms to smooth dividends over time.
Abstract: We compare the dividend policies of publicly- and privately-held firms in order to help identify the forces shaping corporate dividends, and shed light on the behavior of privately-held companies. We show that private firms smooth dividends significantly less than their public counterparts, suggesting that the scrutiny of public capital markets plays a central role in the propensity of firms to smooth dividends over time. Public firms pay relatively higher dividends that tend to be more sensitive to changes in investment opportunities than otherwise similar private firms. Ultimately, ownership structure and incentives play key roles in shaping dividend policies.
369 citations
TL;DR: In this article, the extent of corporate governance voluntary disclosure and the impact of a comprehensive set of Corporate Governance attributes (board composition, board size, CEO duality, director ownership, blockholder ownership, and the existence of audit committee) was assessed.
329 citations
TL;DR: In this article, the authors investigate the impact women leaders have on the corporate environmental strategies of organizations and find that firms characterized by gender diverse leadership teams are more effective than other firms at pursuing environmentally friendly strategies.
Abstract: In this study, we investigate the impact women leaders have on the corporate environmental strategies of organizations. Using a dataset of all Fortune 500 CEOs and boards of directors for a ten-year period, we examine several aspects of gender in leadership on environmental strategy. Specifically, we test the impact of women CEOs, the proportion of women on the BOD, the number of interlinks women board members hold, and the interactive and cumulative effects of women CEOs and gender diverse boards. Findings suggest that firms characterized by gender diverse leadership teams are more effective than other firms at pursuing environmentally friendly strategies. This study contributes to research on corporate governance and environmental performance by showing how the gender composition of leaders affects corporate practice. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
323 citations