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Showing papers on "Stock exchange published in 2022"


Journal ArticleDOI
TL;DR: In this article , the impact of non-financial sustainability reporting (NFSR) on corporate reputation and the role of the CEO in the opportunistic behavior of companies listed on the Tehran Stock Exchange was assessed.
Abstract: The present study’s main objective is to assess the impact of non-financial sustainability reporting (NFSR) on corporate reputation and the role of the CEO in the opportunistic behavior of companies listed on the Tehran Stock Exchange. In total, 178 firms were assessed for this paper during 2013–2020. In this study for calculating the NFSR, environmental sustainability reporting (ESR), social sustainability reporting (SSR), governance sustainability reporting (GSR) and ethical sustainability reporting (ETSR), Arianpoor and Salehi’s comprehensive and conceptual model has been used. In addition, the literature states that a CEO’s power can be classified as an opportunity for discretion and opportunistic behavior in CEOs that is in contrast with stakeholder demands. To this end, in this study, CEOs’ power has been used as an indicator for the CEO’s opportunistic behavior, and the CEO pay slice (CPS) index was used to calculate the CEO’s level of power. The results revealed that NFSR affects corporate reputation positively. In addition, ESR, SSR, ETSR and GSR positively affect corporate reputation. Moreover, the CEO’s power affects the relationship between NFSR/ESR/SSR/ETSR and corporate reputation. Because managers desire to engage in social and ethical activities, they try to hide the company’s errors and increase its reputation. The results revealed that the CEO’s power did not affect the relationship between GSR and corporate reputation. Since companies in the Tehran Stock Exchange are under intensive supervision, such as in governance, the impact of a CEO’s power and the interaction of a CEO’s power and GSR on company reputation in this study might, thus, not apply to these companies. It is crucial to investigate NFSR, corporate reputation and CEO power within Iran-specific conditions because of differences in emerging markets and developing countries such as Iran, which have diverse ownership structures, economic status, legal systems, government policies, and culture.

30 citations


Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper developed a hybrid stock price index forecasting modelling framework using Long Short-Term Memory (LSTM) with Multivariate Empirical Mode Decomposition (MEMD), which can capture the inherent features of the complex dynamics of stock prices index time series.

26 citations


Journal ArticleDOI
TL;DR: In this article , a new fuzzy decision-making model has been created to identify critical factors of the sustainability index (SI) and evaluate the industries listed in the stock exchange based on the performance of this index.

25 citations


Journal ArticleDOI
TL;DR: In this paper , the influence of macroeconomic shocks in South Korea is diverse across the stock market, implying that the impact of these shocks is not consistent across stock market in South Korean.
Abstract: In this research, we assess the influence of geopolitical risk (GPR), exchange rate (EXCH) and economic policy uncertainty (EPU) on South Korea stock market. Using monthly dataset covering the period from 1997 to 2021, we utilized the novel non-parametric causality-in-quantiles test initiated by Balcilar et al. (2017) to assess these associations. This study discovered that the effect of macroeconomic shocks in South Korea is diverse across the stock market, implying that the influence of these shocks is not consistent across the stock market in South Korea. Furthermore, this study revealed that the causal influence of EPU, GPR on the stock market is visible in mean and variance. Nonetheless, the causal influence of EXCH on the stock market can only be seen in the mean, with no indication of causation in the variance. We consider that these results are significant to South Korean stock market investors for the purposes of foreign portfolio diversification and establishing investing strategies during times of economic uncertainty.

24 citations


Journal ArticleDOI
TL;DR: In this paper , the authors examined the interaction between oil prices, exchange rate, and stock returns in Pakistan by using quarterly data from January 2000 to December 2019 and found that the impact of oil prices and exchange rate on stock prices varies across bullish, bearish, and normal states of the stock market.

24 citations


Journal ArticleDOI
TL;DR: In this article , the authors examined the impact of corporate governance mechanisms on forward-looking corporate social responsibility disclosure (FCSRD) and found that board size positively affects FCSRD, while CEO duality and family ownership negatively affect FCSR.
Abstract: Purpose This paper aims to examine the impact of corporate governance mechanisms on forward-looking corporate social responsibility (CSR) disclosure (FCSRD). Design/methodology/approach The authors use the manual content analysis to measure FCSRD for a sample of 94 companies listed on the Amman Stock Exchange from 2010 to 2016. Data on companies' FCSRD are manually collected from annual reports. The authors also use regression analyses to test the research hypotheses. Findings The authors find that board size positively affects FCSRD, while CEO duality and family ownership negatively impact FCSRD. Originality/value To the best of the authors’ knowledge, this is the first evidence of how governance mechanisms affect FCSR information in corporate annual reports in a developing country.

22 citations



Journal ArticleDOI
TL;DR: In this paper , the authors investigated the connection between the power of major shareholders and the modality of corporate governance in companies listed on the Iranian capital market before and after the COVID-19 pandemic.
Abstract: One of the basic functions of establishing corporate governance (CG) in companies is improving performance and increasing value for shareholders. Expanding the company’s value will ultimately increase the shareholders’ wealth. Therefore, it is natural for shareholders to seek to improve their performance and increase the company’s value. If CG mechanisms cannot perform this function in companies, they do not have the necessary efficiency and effectiveness and, therefore, cannot improve the efficiency of companies. This article investigated the connection between the power of major shareholders and the modality of CG of companies listed on the Iranian capital market before and after the COVID-19 pandemic. The statistical sample of the research included 120 companies listed on the Tehran Stock Exchange for the selected period from 2011 to 2021. The results showed that the concentration of ownership is harmful to adopting corporate governance (GCG) practices. In particular, the high level of voter ownership concentration weakens the corporate governance system (CGS). The results of this study, which was conducted using panel analysis, revealed that the concentration of ownership impairs the quality of CGS, and major shareholders cannot challenge the power of the main shareholder; it alsonegatively affected the quality of business boards, both during and before the COVID-19 pandemic. The competitiveness and voting rights of the major shareholders negatively affected the quality of board composition before and after the COVID-19 pandemic. The concentration of voter ownership also negatively affected the quality of CGS, both during and before COVID-19, and the competitiveness and voting rights of major shareholders before COVID-19. This concentration positively affected the quality of CGS after the COVID-19 pandemic.

20 citations


Journal ArticleDOI
TL;DR: In this paper , the effect of corporate social responsibility disclosure (CSRD) on financial distressed risk (FDR) among firms listed on the Tehran Stock Exchange (TSE) was investigated, and whether there is a negative linkage between institutional ownership as a corporate governance mechanism and corporate bankruptcy.
Abstract: This study aims to investigate the effect of corporate social responsibility disclosure (CSRD) on financial distressed risk (FDR) among firms listed on the Tehran Stock Exchange (TSE). This paper also examines whether there is a negative linkage between institutional ownership as a corporate governance mechanism and corporate bankruptcy. The final research purpose is to analyze if there is a moderating effect of institutional owners on the relationship between CSRD and FDR too. The study sample consists of 200 firms listed on the TSE between 2013 and 2018, and the statistical model is logistic regression. When FDR is assessed under both Article 141 of Iran’s business law and the Altman Z-score model, our results on the main research hypotheses are quite similar. Considering the social and cultural conditions and economic situation of the Iranian market, the results show that firms with a high level of CSR disclosure are not able to make themselves more creditworthy and do not have better access to financing, resulting in more financial insolvency. Our findings confirm institutional shareholders play a vital role in facilitating a firm’s emergence from bankruptcy. The results also demonstrate financial distress risk is less seen among companies with more institutional owners that disclose more CSR information. In other words, since the goals related to CSR are long-term and Iranian institutional investors have a long-term horizon towards the company, the presence of more institutional owners within a firm push managers to provide additional voluntary CSR disclosure so firms can maintain the trust of their shareholders at the highest possible level and prevent financial distress. Our additional analysis indicates there is a positive association between financial leverage and firm failure, whereas the current ratio and ROA are negatively connected with corporate bankruptcy. Finally, when FDR is assessed on the Altman Z-score model, our evidence supports a negative relation between purchase and sale-related party transactions and bankruptcy risk, which is consistent with the efficient transaction hypothesis.

17 citations


Journal ArticleDOI
TL;DR: In this paper , an Evolutionary Deep Learning Model (EDLM) was proposed to identify stock trends' prices by using stock technical indicators (STIs) to study the stock market characteristics using STIs and make efficient trading decisions.
Abstract: Stock market trends forecast is one of the most current topics and a significant research challenge due to its dynamic and unstable nature. The stock data is usually non-stationary, and attributes are non-correlative to each other. Several traditional Stock Technical Indicators (STIs) may incorrectly predict the stock market trends. To study the stock market characteristics using STIs and make efficient trading decisions, a robust model is built. This paper aims to build up an Evolutionary Deep Learning Model (EDLM) to identify stock trends’ prices by using STIs. The proposed model has implemented the Deep Learning (DL) model to establish the concept of Correlation-Tensor. The analysis of the dataset of three most popular banking organizations obtained from the live stock market based on the National Stock exchange (NSE) – India, a Long Short Term Memory (LSTM) is used. The datasets encompassed the trading days from the 17 of Nov 2008 to the 15 of Nov 2018. This work also conducted exhaustive experiments to study the correlation of various STIs with stock price trends. The model built with an EDLM has shown significant improvements over two benchmark ML models and a deep learning one. The proposed model aids investors in making profitable investment decisions as it presents trend-based forecasting and has achieved a prediction accuracy of 63.59%, 56.25%, and 57.95% on the datasets of HDFC, Yes Bank, and SBI, respectively. Results indicate that the proposed EDLA with a combination of STIs can often provide improved results than the other state-of-the-art algorithms.

15 citations


Journal ArticleDOI
TL;DR: The experimental results show that the proposed forecasting system can accurately forecast stock prices, and the proposed system is considered to be useful for forecasting the stock index prices, which outperforms conventional GARCH models.
Abstract: Decision making process in stock trading is a complex one. Stock market is a key factor of monetary markets and signs of economic growth. In some circumstances, traditional forecasting methods cannot contract with determining and sometimes data consist of uncertain and imprecise properties which are not handled by quantitative models. In order to achieve the main objective, accuracy and efficiency of time series forecasting, we move towards the fuzzy time series modeling. Fuzzy time series is different from other time series as it is represented in linguistics values rather than a numeric value. The Fuzzy set theory includes many types of membership functions. In this study, we will utilize the Fuzzy approach and trapezoidal membership function to develop the fuzzy generalized auto regression conditional heteroscedasticity (FGARCH) model by using the fuzzy least square techniques to forecasting stock exchange market prices. The experimental results show that the proposed forecasting system can accurately forecast stock prices. The accuracy measures RMSE, MAD, MAPE, MSE, and Theil-U-Statistics have values of 18.17, 15.65, 2.339, 301.998, and 0.003212, respectively, which confirmed that the proposed system is considered to be useful for forecasting the stock index prices, which outperforms conventional GARCH models.

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the impact of working capital management and credit management policy on the financial performance of Jordanian banks and found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable.
Abstract: This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP; 64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance; a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM. Acknowledgment The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

Journal ArticleDOI
TL;DR: In this paper , the authors investigate how organizations manage their business relationships for social impact, emphasizing the cooperation between a company and its shareholders, and find that there is a negative association between institutional ownership and disclosure of the social performance, both in general and particularly in the case of ownership by mutual funds or corporate pension funds.
Abstract: This study investigates how organizations manage their business relationships for social impact, emphasizing the cooperation between a company and its shareholders. It views the presence of environmental, social and governance (ESG) disclosure as a response to stakeholder expectations. Drawing upon stakeholder salience and prospect theories, the paper hypothesizes that disclosure of social component of ESG is not in the prime interest of institutional investors. We test these assumptions using a sample of 2,480 firm-year observations from 529 companies listed on the Warsaw Stock Exchange in the period 2015–2019. The findings indicate that there is a negative association between institutional ownership and disclosure of the social performance, both in general and particularly so in the case of ownership by mutual funds or corporate pension funds. The study contributes to the existing literature by indicating the importance of stakeholder salience and prospect theories for understanding the institutional investor role in ESG disclosure.

Journal ArticleDOI
TL;DR: In this article , the authors examined whether CSRD leads banks in Bangladesh to higher productivity using annual report data of all 30 banks listed on the Dhaka Stock Exchange in Bangladesh from 2011 to 2018, and applied a data envelopment analysis (DEA) to determine the productivity of the sample banks, and then OLS analysis to examine the impact of CSR on the banks' productivity.
Abstract: Since the empirical evidence on the relationship between corporate social responsibility disclosure (CSRD) and firm productivity is scarce in the context of the banking industry, the study examines whether CSRD leads banks in Bangladesh to higher productivity. Using annual report data of all 30 banks listed on the Dhaka Stock Exchange in Bangladesh from 2011 to 2018, the study applied a data envelopment analysis (DEA) to determine the productivity of the sample banks, and then ordinary least squares (OLS) analysis to examine the impact of CSR on the banks’ productivity. Furthermore, the study utilized two-stage least squares (2SLS) and a generalized method of moments (GMM) to check the robustness of the findings amid the detection of endogeneity issues. The study also used several alternative variables to check and verify the reliability of the study. The findings indicate that the greater a bank’s contribution to CSR, the higher its productivity. However, banks with more debt to assets are less productive. Additionally, the study observed that the impact of CSRD on bank productivity is higher in GRI banks compared to non-GRI banks, non-politically connected banks as opposed to politically connected banks, and conventional banks compared to Islamic banks. The study provides valuable insight into how CSR activities can promote bank productivity, thus motivating the banks to execute a well-thought-out action plan to ensure more CSR contribution. This study is the first ever bank-level evidence that provides insight into how the patterns of CSR activity of publicly traded banks impact their productivity.

Journal ArticleDOI
TL;DR: In this article , the authors examined the effect of corporate governance on the narrative reporting of CTTI4.0 (CTTI4) in the UK and found that better governance quality enhances the level of reporting.
Abstract: Purpose This paper aims to provide early evidence on corporate transformation towards Industry 4.0 (CTTI4) in the UK, particularly by examining the effect of corporate governance on the narrative reporting of CTTI4. Design/methodology/approach The authors analyse all UK financial times stock exchange all-share non-financial firms that have published their annual reports for the period of 2013–2018. The authors use computerised textual analysis to measure the level of corporate reporting on Industry 4.0 (I4.0) for 1,001 firm-year observations. The authors used different regression models to test the research hypotheses. Findings The findings contribute to the growing literature on business model transformation in UK companies towards the I4.0 strategy. The findings show that the level of reporting on CTTI4 is improving over the sample period and varies between industries. The authors also find that better governance quality enhances the level of reporting on CTTI4. Practical implications The findings of this study inform decision makers and regulators about factors driving UK companies to report information about their actionable strategies to direct I4.0 endeavours. Originality/value The paper makes an important and novel contribution to corporate disclosure literature. So far as the authors know, it is the only paper to examine the impact of corporate governance on corporate narrative reporting on I4.0 technologies. Moreover, to the best of the authors’ knowledge, it is the first paper to show that the quality of corporate governance adds value to this strategic type of corporate disclosure.

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the impact of investment influence on stock market value with a moderating role of institutional ownership and board independence for companies listed on the Tehran Stock Exchange (TSE).
Abstract: : This study investigates the impact of investment efficiency on firm value with a moderating role of institutional ownership and board independence for companies listed on the Tehran Stock Exchange (TSE). The information from 177 companies in 2014–2021 was examined. Tobin’s Q is a common measure for firm value, and it is a market-based measure and provides a good tool of comparison. The results show that investment efficiency has an impact on firm value. In addition, institutional ownership and board independence moderate this impact. There is a gap between the impact of investment efficiency on firm value and the moderating role of institutional ownership and board independence. This gap creates an opportunity for carrying out in-depth research on those variables. Since the impact of investment efficiency on firm value emphasizing the role of institutional ownership and board independence has not been studied, the study’s findings can show the importance and necessity of this study and fill the gap in this field. unit-root test, the findings show that all variables are stationary. F-Limer (Chow) results show that at the 95% confidence level, the hypothesis of panel data was accepted. Consequently, the Hausman test was used for selecting random or fixed-effects models. The results of the Hausman test show that the fixed effects method should be used for hypothesis testing. The Durbin–Watson statistics show no severe autocorrelation of the error term. The results indicate there was no variance heterogeneity. Based on the results of the Wooldridge test, there was autocorrelation in the research model. The GLS test was used to estimate the model’s coefficients to deal with the issue and the problem of variance heterogeneity. Resource: Research findings.

Journal ArticleDOI
TL;DR: In this article , the authors conducted an empirical analysis of changes in the financial background of top management on the performance of social responsibilities of heavily polluting companies in Bangladesh from 2010 to 2019, and found that internal control has a significant negative and moderating effect on the above relationship.
Abstract: Based on the empirical data of heavily polluting companies in Bangladesh from 2010 to 2019, this paper conducts an empirical analysis of changes in the financial background of top management on the performance of social responsibilities of heavily polluting companies. Results from the analysis among 212 listed companies on the Dhaka Stock Exchange indicate a significant negative correlation between changes in the financial backgrounds of top management and their performance on social responsibilities. In heavily polluting firms, corporate social responsibility (CSR) performance will deteriorate after the takeover of a new financial expert CEO. Furthermore, the present study found that internal control has a significant negative and moderating effect on the above relationship. As a result, the higher the quality of internal control, the smaller the negative impact of the change in the turnover of financial expert CEO on CSR performance.

Journal ArticleDOI
TL;DR: Wang et al. as discussed by the authors investigated the effect of stock market liberalization on stock price synchronicity and found that the implementation of the Shanghai-Hong Kong Stock Connect (SHSC) significantly reduced stock price synchronization of eligible firms listed in the Shanghai Stock Exchange, and this effect mainly exists in listed firms with a lower degree of openness.

Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper investigated the effect of stock market liberalization on stock price synchronicity and found that the implementation of the Shanghai-Hong Kong Stock Connect (SHSC) significantly reduced stock price synchronization of eligible firms listed in the Shanghai Stock Exchange, and this effect mainly exists in listed firms with a lower degree of openness.

Journal ArticleDOI
28 Mar 2022
TL;DR: In this article , the impact of Corporate Social responsibility, leverage on assets, firm age and firm size on sustainable organizational growth is examined. But, the authors did not consider the impact on the overall firm performance.
Abstract: This study examines of impact on Organizational sustainable growth (firm performance) of Corporate Social responsibility, Leverage on Assets, firm age and firm. This study used sample data of 296 Pakistan stock exchange-listed firms and applied correlation, Ordinary least square regression model for estimate factor impact, and Robustness use for the result is reliable and sustainable. This study used Sustainable Corporate Social responsibility (independent variable), leverage on Assets (moderator variable), firm age and firm size (control variable) and Correlation, Ordinary least square regression model that confirmed their variables, i.e. Corporate Social responsibility, Leverage on Assets, firm age and firm size highly impacting on sustainable organizational growth (firm performance). Robustness test results also confirm the reliability, validity and sustainability of results. That shows results are highly significant reliable, and sustainable. Sustainable Corporate Social responsibility is the leading factor that enhances the firm performance. Firm size and age are significant for sustainable organizational growth (firm performance). This study implication is very significant; policymakers more focus on Sustainable Corporate Social responsibility and corporate commitments. Study recommended to firms; developed a sustainable environmental structure: Enhancing the employee's motivation (self-efficacy), performance per-motion bonuses, employee's need and Corporate Social responsibility leads to sustainable organizational growth (firm performance).

Journal ArticleDOI
TL;DR: In this article , the impact of capital structure on environmental, social and governance (ESG) performance in the context of Jordanian companies was explored by using the content analysis approach and the longitudinal data generated from the annual reports of 51 industrial companies listed on the Amman Stock Exchange for the period 2012-2020.
Abstract: Purpose This study aims to explore the impact of capital structure (CS), including total debts, short-term debt, long-term debt and total shareholder equity, on environmental, social and governance (ESG) performance in the context of Jordan. Design/methodology/approach To achieve the study’s objectives, the authors used the content analysis approach and the longitudinal data generated from the annual reports of 51 industrial companies listed on the Amman Stock Exchange for the period 2012–2020. Findings The findings show that debt financing enhances ESG performance in all dimensions, while financing by equity did not affect ESG. Consequently, Jordanian companies’ managers are trying to reduce agency costs by investing in ESG activities. In addition, companies are focusing on debt financing instead of equity to achieve their financial as well as nonfinancial goals. This is because the opportunism of new shareholders will likely lead to a focus on maximizing their value at the expense of the broader group of stakeholders, and this will adversely affect companies’ ESG performance. Therefore, debt financing limits shareholder control. Originality/value To the best of the authors’ knowledge, this is the first examination of the impact of CS financing choices on ESG performance. Thus, this study has important implications for the decisions of executives, policymakers, shareholders and lenders, as it enables them to better understand the linkage between CS and ESG.


Journal ArticleDOI
TL;DR: In this paper , the authors assess the potential impacts of board members' characteristics, including connectedness and independence, on the level of the firm's involvement in innovation and corporate social responsibility (CSR).
Abstract: PurposeThe present study aims to assess the potential impacts of board members' characteristics, including connectedness and independence, on the level of the firm's involvement in innovation and corporate social responsibility (CSR).Design/methodology/approachVariables of board members' interlock and independence are selected for measuring the board characteristics and their association with innovation. The range of disclosure of social responsibility (SR) of the firms inside and outside the industries is also analyzed through descriptive-correlational. The selected sample includes 280 firm-years listed firms on Iraq Stock Exchange during 2012–2017 and 1,026 firm-years on the Tehran Stock Exchange. The hypotheses are examined using multivariate regression models and panel data.FindingsThe observations show that board interlock and independence in both countries are willing to improve firms' innovation. Moreover, having controlled the industry index, the authors find that business environment innovation is willing to be transmitted into the firms through outside industry sources in Iran. In the Iraq country, regardless of industry index, the positive association between interlocked boards and firm innovation is established. Further analyses also articulate that board interlock is not considered a mechanism to transmit information and experiences about CSR activities.Originality/valueThis paper is a pioneer study to assess the relationship between board member characteristics and the firms' innovation and SR both in Iran and Iraq. Also, it extends the literature by considering the industry index as a significant source of knowledge and experience to gain more precise results. Therefore, the current paper may contribute to the development of knowledge in this field of study.

Journal ArticleDOI
TL;DR: In this article , the authors examined the relationship between integrated reporting quality and corporate tax avoidance (CTA) and found that IR quality negatively associates firms CTA practices, and that although firms' transparency level increases due to IR quality, firm complexity reduces the significant negative relationship between IR and tax avoidance practices.
Abstract: Purpose This study aims to examine the relationship between integrated reporting (IR) quality and corporate tax avoidance (CTA). IR is an emerging reporting mechanism, while CTA practices are considered a hindrance to inclusive and sustainable growth. The study also assesses the moderating role of firm complexity on the IR-CTA relationship. Additionally, this study also envisages that CTA practices are not static. Hence, it also analyses the IR-CTA relationship across different intensity levels of CTA practices. The study focusses on listed companies in South Africa, the only country that has mandated IR practice so far. Design/methodology/approach Ordinary least square and quantile regressions are used to analyse archival and content analysis data for firms listed on the Johannesburg Stock Exchange from 2011 to 2017. Findings This study finds that IR quality negatively associates firms CTA practices. It further concludes that although firms’ transparency level increases due to IR quality, firm complexity reduces the significant negative relationship between IR and CTA practices. The findings also indicate that the IR-CTA relationship is not constant but instead differs across the CTA quantiles. At aggressive levels of CTA, no relationship is established between IR quality and firms’ CTA practices. Practical implications The findings provide a useful and more detailed description of the relationship between information quality and CTA practice, focussing on IR, an emerging reporting mechanism that is considered innovative and transparent. Social implications Considering the IR-CTA relationship found in this study, IR quality implementation may indirectly contribute to attaining sustainable development goals by reducing CTA practices. Originality/value This study examines the relationship between reporting quality and firms’ CTA practices from the perspectives of an emerging reporting mechanism, with a focus on South Africa, the only country that has mandated IR practice. Furthermore, the distributional mean effects of IR quality on firms’ CTA practices explored in this study extend beyond the usual IR-CTA relationship.

Journal ArticleDOI
TL;DR: In this article , the authors used the hexagon of fraud theory to detect fraudulent financial reporting using hexagon fraud analysis, including financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion.
Abstract: This study aims to detect fraudulent financial reporting using hexagon fraud analysis, including seven factors: financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion. The subject of this research is a public company consolidated audit report of state-owned enterprises. The existence of conflicting results, the phenomenon of fraudulent financial reporting, and limited research using the hexagon of fraud theory prompted this research to examine the factors that influence fraudulent financial reporting. The sample was selected using a sampling technique, with the criteria of state-owned enterprises listed on the Indonesia Stock Exchange in 2016–2020. The method used is quantitative, and the analytical method used is logistic regression analysis. The sampling technique used was purposeful sampling, so the number of samples was 125. The results of this study indicate that financial stability and external pressures have a positive effect on fraudulent financial reporting. However, ineffective monitoring, auditor changes, change in director, arrogance, and collusion do not affect fraudulent financial reporting.

Journal ArticleDOI
12 May 2022-Risks
TL;DR: In this article , the role of Corporate Social Responsibility (CSR) and innovation strategies as leverages of a company's financial performance was evaluated and an applied perspective was provided for managers and policy makers as to how they should approach and disseminate involvement in these types of activities.
Abstract: The article aims to appraise the role of Corporate Social Responsibility (CSR) and innovation strategies as leverages of a company’s financial performance. The theoretical and empirical statement of this link aims to reinforce the importance of these strategical options in both the managerial and the public policy domain. Shedding light on the economic return of these practices will help managers make better strategic decisions. Policy makers will also grasp the required evidence to encompass CSR in policy packages. To address the research question, data were collected from the Thomson Reuters Eikon Datastream covering the 1000 largest companies listed on the stock exchange worldwide. Thereafter, hierarchical linear regressions were performed to produce the econometric results. Two time frames (2015–2019) were compared to address time–space trends. Enrolling in CSR activities entails additional costs which can undermine the company’s financial performance if not properly supported by public policies. Combining CSR and innovation appears to be the best strategy for companies seeking improvements in their financial performance while being socially responsible. The contribution of this study is threefold: first, the analysis covers the largest thousand firms in operation worldwide; secondly, the econometric results demonstrate that combining CSR with innovation positively impacts financial performance; and lastly, the time comparison evidences a positive but slow evolution in CSR adoption. The article provides an applied perspective, of use both for managers and policy makers, as to how they should approach and disseminate involvement in these types of activities.

Journal ArticleDOI
TL;DR: In this article , the authors focus on links between herding behavior and investment management activities and perceived market efficiency, and provide further empirical insights into the relationship between the herding behaviour and the investment management.
Abstract: PurposeThis article aims to clarify the mechanism by which herding behavior influences perceived market efficiency, investment decisions and the performance of individual investors actively trading on the Pakistan Stock Exchange (PSX).Design/methodology/approachThe deductive approach was used in this study, as the research is based on the theoretical framework of behavioral finance. A questionnaire and cross-sectional design were employed to collect data from the sample of 309 investors trading on the PSX. The collected data were analyzed using SPSS and AMOS graphics software. Hypotheses were tested using structural equation modeling (SEM).FindingsThe article provides further empirical insights into the relationship between herding behavior and investment management and perceived market efficiency. The results suggest that herding behavior has a markedly negative influence on perceived market efficiency and investment performance, while positively influencing the decision-making of individual investors.Originality/valueThe current study is the first to focus on links between herding behavior and investment management activities and perceived market efficiency. This article enhances the understanding of the role that herding behavior plays in investment management and, more importantly, it improves understanding of behavioral aspects and their influence on investment decision-making in an emerging market. It also adds to the literature in the area of behavioral finance, specifically the role of herding behavior in investment management; this field is in its initial stage, even in developed countries, while little work has been done in developing countries.

Journal ArticleDOI
TL;DR: In this paper , the influence of intellectual capital (IC) on sustainable economic and financial performance (EFP) and value creation (VC) in Brazilian companies was analyzed, and the results indicated that IC positively influences profitability, corporate return and organizational value sustainably.
Abstract: Purpose The purpose of this paper is to analyze the influence of intellectual capital (IC) on sustainable economic and financial performance (EFP) and value creation (VC) in Brazilian companies. Design/methodology/approach Based on finance and accounting theories, a quantitative and descriptive long-term study was carried out in the companies listed on the Brazil Stock Exchange and Over-the-Counter Market (B3), covering 20 years period. Findings The results indicate that IC positively influences profitability, corporate return and organizational value sustainably; the most intangible-intensive Brazilian companies listed on B3 presented more robust results than the least intangible-intensive; and IC contributes to a systematic increase in EFP and VC over time. Research limitations/implications Using a well-established metric, the IC-INDEX, the IC and its effects were measured, obtaining theoretical contributions (expanding the understanding of the IC influence in sustainable EFP and VC from a long-term perspective – one subject still unexplored in the literature); and empirical (increasing the understanding of the IC’s role as a driver of competitiveness, performance and organizational value). Practical implications This study increases the understanding of the theoretical and practical effects of IC, also providing a competitive benchmarking process to access sustainable EFP and VC of companies and their industries. Originality/value The originally applied and validated proposal extends existing theory by offering a set of indicators to scale the contribution of IC to competitiveness from the perspective of long-term (historical) corporate outcomes.

Journal ArticleDOI
TL;DR: A Deep Convolutional Generative Adversarial Network architecture is introduced to deal with the problem of forecasting the closing price of stocks, and it is observed that the proposed model performs better than standard widely used tools, suggesting that Deep Learning (and in particular GANs) is a promising field for financial time series forecasting.
Abstract: Stock market prices are known to be very volatile and noisy, and their accurate forecasting is a challenging problem. Traditionally, both linear and non-linear methods (such as ARIMA and LSTM) have been proposed and successfully applied to stock market prediction, but there is room to develop models that further reduce the forecast error. In this paper, we introduce a Deep Convolutional Generative Adversarial Network (DCGAN) architecture to deal with the problem of forecasting the closing price of stocks. To test the empirical performance of our proposed model we use the FTSE MIB (Financial Times Stock Exchange Milano Indice di Borsa), the benchmark stock market index for the Italian national stock exchange. By conducting both single-step and multi-step forecasting, we observe that our proposed model performs better than standard widely used tools, suggesting that Deep Learning (and in particular GANs) is a promising field for financial time series forecasting.

Journal ArticleDOI
TL;DR: In this paper , the influence of corporate governance and voluntary disclosures in annual reports was analyzed using a generalized ordinary least squares regression model. But, the authors found that voluntary disclosures among the firms are low even after the adoption of IFRS, which may partially reflect the reality of firms' disclosure and governance practices.
Abstract: Purpose The purpose of this paper is to provide an empirical evidence concerning the influence of Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standards adoption evidence from an emerging capital market. Design/methodology/approach Data were collected from the annual reports of all 22 listed non-financial firms over a five-year period. Using content analysis, the audited annual reports of the firms were scored on the extent of overall and four specific types of voluntary disclosures made. The panel data obtained were analyzed using a generalized ordinary least squares regression model. Findings The findings of the study show that voluntary disclosures among the firms are low even after the adoption of IFRS. Corporate governance attributes of board size and board leadership structure are significant determinants of the extent of voluntary disclosures made by the firms. However, board independence and auditor type exhibit only a significant positive effect on voluntary financial and forward-looking information disclosures. Research limitations/implications Firms’ voluntary information disclosure and governance variables were restricted to those in annual reports, which may partially reflect the reality of firms’ disclosure and governance practices. Practical implications The present study offers useful insights to regulators of the capital market to strengthen monitoring of firms to ensure strict adherence to corporate governance best practice guidelines as a means of improving information environment. Originality/value This study is one of the very few ones in Africa, especially in the context of Ghana Stock Exchange, to use post-IFRS data and examine a disaggregated voluntary disclosure by firms.