Showing papers in "Global Finance Journal in 2020"

TL;DR: In this article, the impact of Sharia supervisory board (SSB) and governance structures on the extent of operational risk disclosures (ORDs), using a sample of 63 Islamic banks from 10 (i.e., Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, and the UAE) countries in the Middle East and North Africa (MENA) region for the fiscal years 2006 to 2013.

TL;DR: In this paper, the authors developed a new innovative model to assess SMEs' creditworthiness and test it on the companies that have issued mini-bonds so far and found that the amount of information asymmetry is still high in the market and is affecting the level of risk/return trade off potentially reducing the number of investors and small businesses that would be interested in using this new channel to fund their business growth.

TL;DR: This article examined the association between corporate social responsibility (CSR) and earnings quality using CSR ranking data from Rankins (RKS) and four measures of earnings quality, and found that CSR firms and those with higher CSR ratings are less likely to engage in earnings management than non-CSR firms.

TL;DR: In this article, the authors show that higher capital and liquidity ratios increase the efficiency of conventional and Islamic banks, and that the effect is stronger for highly efficient, small, highly liquid, and highly capitalized conventional banks.

TL;DR: In this paper, the authors focus on the newly produced research on SWFs and confirm the impact of new environmental changes on SWF asset allocations and decision-making process, and re-examine the long-term impact of SWF investments on target firms and industries and affirm the necessity to consider the heterogeneity among SWFs.

TL;DR: This article examined the effect of busy directors and boards on the value of a set of non-U.S. firms from 1999 to 2012 and found that busy directors are a global phenomenon, but that national culture helps to explain the cross-sectional variation in director and board busyness.

TL;DR: It is shown that blockchains can aid to lower the cost incurred through the tokenization of sukuk, and provides a taxonomy of blockchain applications in finance, with a particular focus on Islamic finance.

TL;DR: In this paper, the authors investigated volatility risk for the highest ESG-rated firms through an empirical analysis in assessing how good news and bad news impact the risk of ESG firms.

TL;DR: In this paper, the authors investigate the effect of uncertainty on investment and find that smaller firms are affected more compared to larger ones in terms of their investment performance in the years of crisis.

TL;DR: In this article, the authors examined the impact of asset securitizations on the performance and financial stability of banks in a dual banking system (i.e., Islamic and conventional) using a unique sample of international banks located in 21 countries.

TL;DR: This paper examined the effects of ownership structure on dividend policy, specifically the role of controlling shareholders in shaping dividend policy in a sample of firms that pay dividends and issue new equity simultaneously, and found that managers in weakly governed firms are more likely to initiate customized dividends to meet outside large shareholders' needs while simultaneously using costly external capital to finance new investment projects.

TL;DR: In this article, the authors examined the bank lending channel of monetary transmission in Malaysia, a country with a dual banking system including both Islamic and conventional banks, over the period 1994: 01-2015:06.

TL;DR: This paper examined the association between local gambling preference culture and corporate tax avoidance and found that improved owners-managers alignment strengthened the link between local gamblers preference and tax avoidance, driven by a high risk-taking channel and most pronounced for firms experiencing financial constraints.

TL;DR: In this paper, the authors compared banking performance and resiliency between Islamic banks and conventional banks in MENA region over the period 2002-2014 and found that conventional banks are more vulnerable to an important drop on their lending activities than non-lending activities, while Islamic banks are equally vulnerable to any drop of the activity.

TL;DR: In this article, the authors examined whether the board of directors' compensation schemes affect stock market valuations for banks in a dual banking system (i.e., Islamic and conventional banks) employing an international sample of 11 countries for the period 2010-2015.

TL;DR: In this article, a stochastic meta-frontier directional distance function model with undesirable output was used to evaluate the technical efficiency of Islamic and conventional banks, and the results showed that a typical Islamic bank is less technical efficient compared to its conventional counterpart.

TL;DR: In this paper, the authors examined the effect of dual board governance mechanisms (Shariah supervisory board and regular board of directors) on Islamic banks' liquidity creation and investigated whether managerial ability is a channel through which such governance mechanisms influence liquidity creation.

TL;DR: In this article, the authors investigate the influence of institutional and structural factors on the actual use of macro-prudential measures across Europe and find that political and interest group resistance, weaknesses in the governance framework, and limited institutional memory among policy makers.

TL;DR: In this paper, the effect of board diversity on CSR performance using six different measures for board diversity and seven components of CSR scores among all listed companies in the US from 1992 to 2017.

TL;DR: In this article, the impact of market competition on the stability of Islamic and conventional banks in countries where these banks operate alongside one another is examined, and the authors find that competition can be beneficial for banks, especially at a low to medium competition level.

TL;DR: In this paper, the authors examined Shariah governance in Islamic banks by analyzing and comparing international and national Shariah Governance Codes across 11 countries and the annual reports of the largest stand-alone Islamic bank in each of these countries.

TL;DR: In this paper, the authors examined the specific role of risk governance in promoting financial stability in banks and developed a Risk Governance Index (RGI) to measure the strength of Risk governance structures and then examined its impact on four main indicators of financial stability for conventional and Islamic banks in the countries of Gulf Cooperation Council (GCC).

TL;DR: Using daily data from thirteen euro area and four non-euro countries covering the years 2000 to 2018, the authors explore whether the Global Financial Crisis 2008-2010 and the introduction of unconventional monetary policy measures has led to a change in the financial market impact of euro area monetary policy.

TL;DR: In this article, the distribution and properties of valuation errors yielded by banking industry multiples for European and US banks were studied, and the results highlight that stock market multiples are best suited for US institutions and that a two-year-forward P/E is the most precise metric Contrary to practitioner beliefs, P/tangible book value is less meaningful than P/BV Multiples are less accurate for small commercial banks than for large ones.

TL;DR: In this article, a risk efficiency index based on an output orientated directional distance function with weak and strong disposability assumptions was introduced to examine the effect of risk on Middle East banks' efficiency levels before and after the recent financial crisis.

TL;DR: In this article, the authors examined whether the cost of capital (COC) differs significantly between U.S.-based multinational corporations (MNCs) and domestic corporations (DCs).

TL;DR: The authors applied Odean's measurement (1998) to a proprietary transaction database with unique investor IDs from an emerging market exchange that holds both stock and bond trading, and found some disposition effect in treasury bonds, but much lower than in stocks, and a positive relation between the two measures by investor.

TL;DR: The authors examined the intraday index return and volatility responses of two Latin American equity markets to US macroeconomic news releases around the periods of the US and European financial crises, and found that while index return is more sensitive than volatility to macro economic news in general, the five-minute Brazilian and Mexican index volatilities respond especially strongly to US news surprises, with the Brazilian response being more pronounced during the expansion period.

TL;DR: In this paper, the impact of the 2008-2009 financial crisis on European frontier stock markets (Croatia, Estonia, Romania, Slovakia and Slovenia) with the developed equity markets (the US, the UK, and Germany) and internal linkages within the frontier markets was investigated.