Issue #2 (Volume 21 2024)

Researchers have scrutinized the link between investor sentiment and stock market liquidity globally, yet few have delved into this dynamic in emerging markets, especially China. Utilizing a sample of 1,839 publicly listed companies in China from 2010 to 2019, this study applies firm- and year-fixed-effects models to explore the nexus between investor sentiment and stock illiquidity, employing the Amihud measure for stock illiquidity assessment. The outcomes of these fixed-effect regressions illustrate a significantly positive relationship between investor sentiment and stock liquidity in the Chinese market. The positive link is more evident in scenarios characterized by high firm leverage, rapid revenue growth, larger corporations, greater institutional ownership, higher stock volatility, and lower book-to-market ratios. Intriguingly, this analysis incorporates the quadratic term of investor sentiment to examine the potential for a nonlinear dynamic between stock illiquidity and investor sentiment. The findings elucidate that the effect of investor sentiment on stock liquidity diminishes at elevated levels of sentiment, revealing a nonlinear inverse U-shaped relationship. The positive correlation between investor sentiment and stock liquidity persists across the three divisions of the Chinese Shenzhen Stock Exchange and remains robust using alternative liquidity measures, such as Roll’s impact and zeros impact. Addressing causality concerns, current investor sentiment appears to influence subsequent liquidity levels. These results provide valuable perspectives for policymakers, business executives, and investors in the stock market.

Acknowledgment
This research was funded by the Department of Education of Zhejiang Province General Program [Y202353438], the Wenzhou Association for Science and Technology—Service and Technology Innovation Program [jczc0254], the Wenzhou-Kean University Student Partnering with Faculty Research Program [WKUSPF2023004], and the Wenzhou-Kean University International Collaborative Research Program [ICRP2023002].

The management of an entity faces diverse decisions concerned with corporate operations and financing choices. Investigating various factors affecting a company’s cash holdings provides valuable insights into the decision-making processes of an organization. This study examines the effect of Anti-Takeover Provisions (ATPs), Managerial Overconfidence, and their interaction on the level of an entity’s cash holdings. Conducting a regression analysis, this study examines 3,409 firm-year observations from Korean listed entities covering 2011 to 2018. Results reveal that anti-takeover provisions positively influence an entity’s cash holdings (coefficient = 0.464, t-stat value = 7.83). Additionally, managerial overconfidence negatively affects cash holdings (coefficient = –0.140, t-stat value = –2.77). Furthermore, the interaction between anti-takeover provisions and managerial overconfidence significantly influences cash holdings (coefficient = –0.402, t-stat value = –3.46), especially in firms employing specific provisions such as supermajority vote requirements for executive dismissal (coefficient = –0.445, t-stat value = –2.73), issuance of convertible preferred stock (coefficient = –0.341, t-stat value = –1.76), and golden parachutes (coefficient = –0.715, t-stat value = –3.02). This study provides empirical evidence on how anti-takeover provisions and managerial traits influence corporate cash reserves. The study offers valuable insights for regulators, investors, and corporate management. It also emphasizes prudent cash management, urging firms, especially those with anti-takeover provisions and overconfident management, to reconsider financial policies to mitigate risks associated with aggressive decision-making.

The study is an attempt to examine the day-of-the-week anomaly of fourteen Indian sectoral indices and identify profitable opportunities, considering multiple positive and negative events. The aim of this study is to analyze the day-of-the-week effect on fourteen Indian sectoral indices and find profitable opportunities while considering multiple events that have positive and negative impacts. The study takes into consideration event-based anomalies, both national and global, and provides timing for trading to generate abnormal returns from the market. At first, dummy variable regression analysis was used to understand the initial anomalies. Later, time-varying symmetrical and asymmetrical volatility models, such as Generalized Autoregressive Conditional Heteroscedasticity (1, 1) and Exponential Generalized Autoregressive Conditional Heteroscedasticity (1, 1) were applied to determine the short-term and long-term volatility persistence. These models capture the leverage effect from various events that occurred during the study. The results showed mixed outcomes during multiple positive and negative shocks. After the recession, anomalies were observed across all sectoral indices, except for commodities, energy, and information technology. During the scam period, anomalies occurred in all sectors, except for consumer durables, financial services, and information technology. However, after the new government took over, anomalies persisted in all sectors. During the pandemic, anomalies persisted in all sectors except for finance, IT, pharmaceuticals, and services. Hence, national and global events have shown varied impacts on the Indian markets. The study provides investors with implications on strategies and timing techniques for planning their investments in different sectors of the Indian economy.

Satisfying the consumer and contributing to societal well-being have been globally acknowledged, and these developments consequently boost corporate image, attract investors, increase stock prices, enhance firm value, and enable industrial and other firms to contribute to national development. This paper examines how product responsibility and philanthropy affect the performance of industrial goods firms in Nigeria. A sample of 7 firms was selected from 24 listed firms after employing a judgmental sampling technique and using secondary data and a quantitative research method. Data validation and analysis were aided by econometric views statistical software, panel data regression, fixed and random effects estimators, stationarity test, cross-section dependence test, Durbin-Watson test, and Hausman test. The study revealed that investment in product responsibility, as evidenced by the rising stock turnover rate, is value-enhancing in Nigeria {B1 = 0.076807, P = 0.0171 or P < 0.05}, while philanthropic donation is value destroying {B1 = –0.369535, P = 0.5817 or P > 0.05}. It was concluded that consumers’ confidence in corporate institutions can enhance corporate value, while investment in philanthropy is not usually value-enhancing when done irresponsibly and non-strategically. The study, therefore, recommended that investment in product responsibility should be consolidated to sustain the rising stock turnover rate, while investment in philanthropy should be done strategically and responsibly to make it value-enhancing.

Acknowledgment
This research was based on Nnamdi Azikiwe University Ph.D. Dissertation funded by the Tertiary Education Trust Fund (Tetfund), Nigeria. University of Calabar in Nigeria is highly acknowledged for funding the PhD dissertation through its Tetfund platform.

Green bonds are an increasingly used instrument to catalyze cash flows towards a low-carbon economy. Nonetheless, the existence of an actual price advantage is still uncertain. This research paper aims to assess whether there is a green bond premium (“greenium”) for green bonds relative to conventional bonds with similar characteristics, and how liquidity may affect the determination of a price advantage. It analyzes the yield differentials between green and conventional bonds using three different methods. First, a Nelson-Siegel-Svensson method is executed, estimating the premium both as the yield spreads and as the differentials in Z-spreads. Using a matching method and creating a sample of green and synthetic conventional bonds, the second methodology consists in calculating the distances between each categories’ yield for the same duration. Finally, a fixed-effect regression is performed to better control the liquidity bias. In the first case, a positive premium emerges when analyzing the yield spreads (+37.89 basis points) and the Z-spreads (+10.62 basis points). The second method mitigates the liquidity risk by creating a sample of synthetic bonds and reveals a yield spread of –15.89 basis points. Lastly, the regression method shows a negative greenium equal to –17.1487 basis points. Thus, a greenium emerges from all the three different methods, but its nature, sign, and real determinants are still uncertain. It is, therefore, not possible to conclude a definite price advantage for issuers of green bonds.

This study explores the nexus between internal audit, audit committee attributes, and Corporate Social Responsibility (CSR) disclosure quality in A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2019. Utilizing refined samples and robust datasets, this investigation reveals critical insights that a robust internal control system significantly correlates with higher-quality CSR disclosure, underscoring its pivotal role in safeguarding non-financial reporting integrity and enhancing transparency in CSR disclosures. Larger audit committees are positively associated with improved CSR disclosure quality. This highlights the strategic advantage of a diverse and expansive audit committee in navigating the complexities of CSR reporting. Contrary to expectations, the proportion of independent directors on the audit committee and the frequency of audit committee meetings do not show a significant positive relationship with CSR disclosure. Companies benefit from strategic investments in internal control systems, crucial for non-financial reporting integrity and fortified CSR disclosure practices. In conclusion, this study provides concise insights into critical factors influencing CSR disclosure quality in Chinese companies, offering actionable implications for corporate practices and regulatory frameworks.

Acknowledgment
This paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU BEST PRACTICE OF LIFE CYCLE ASSESSMENT, SOCIAL, ENVIRONMENTAL ACCOUNTING AND SUSTAINABILITY REPORTING” – 101047667-ERASMUS-JMO-2021-MODULE https://jm.snau.edu.ua/en/eu-best-practice-of-life-cycle-assessment-social-envi­ron­mental-accounting-and-sustainability-reporting/
Oleh Pasko expresses sincere gratitude for the support from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

Understanding consumer intentions regarding mobile wallet (m-wallet) adoption is paramount in the mobile commerce landscape, particularly in cash-centric economies like Jordan. Despite efforts to shift toward digital payments, cash transactions remain prevalent, highlighting the need to explore m-wallet service adoption dynamics in Jordan.
This study aims to identify the factors influencing Jordanian consumers’ adoption of m-wallet services, focusing on the motivations and barriers. Utilizing the Unified Theory of Acceptance and Use of Technology (UTAUT2) as a theoretical foundation, the research integrates various models to assess technology acceptance. A questionnaire distributed among m-wallet users from fintech companies in Jordan garnered 421 responses, analyzed using the Smart PLS 3 software.
The findings indicate a positive impact of all variables on the propensity for m-wallet adoption in Jordan. Notably, perceived usefulness, ease of use, and facilitating conditions significantly influenced user decisions, evidenced by R-square values of 0.78%, 0.758% and 0.684%, respectively. Meanwhile, perceived value, security, privacy, and social influence had a moderate effect. The attractiveness of alternatives and attitudes towards m-wallet usage showed lesser impact, with R-square values at 26.7% and 22.8%, respectively, illustrating varied influences on adoption rates in determining consumer adoption of m-wallet services in Jordan.
This paper enhances research on mobile commerce in developing economies, focusing on Jordan. It explores the adoption of m-wallet services by fintech users, presenting a detailed model. The study provides valuable insights for advancing digital payment systems in this region.

Since its public introduction in 2009, Bitcoin has grown to be the most well-known cryptocurrency worldwide. There is still debate as to whether Bitcoin may be used as a hedge against other assets. The purpose of this study is to investigate the correlation between Bitcoin and conventional commodity markets such as gold, crude oil, stock markets, and investor interest (quantified via Google Trends). In addition, the paper also tests Bitcoin’s safe haven role compared to other commodity markets. The Vector Autoregression model using daily database collected during the period 2013–2021 is employed to investigate the relationship between Bitcoin and traditional commodity markets. The impulse response function is used to analyze Bitcoin price movements against economic shocks from gold, oil prices, and the Dow Jones Industrial Average. In addition, the value-at-risk (VaR) model is used to test Bitcoin’s safe-haven property compared to other conventional commodity markets. The research results show that Bitcoin has negative impacts on gold, crude oil prices, and the stock market. Besides, Bitcoin responds negatively to a sharp decline in investor interest. Furthermore, the results of the VaR model show that Bitcoin is the second most volatile and risky asset, only after the crude oil market, and much riskier than gold. This result proves that Bitcoin cannot yet be considered a safe-haven instrument. These findings have several implications for investors and policymakers to minimize the risks associated with this cryptocurrency.

Acknowledgment
The authors would like to send their sincere thanks to the Reviewers and Editorial Board of the Journal. Their valuable comments and helpful support helped improve the paper’s quality. No funding was granted for this study.

Rare events (RE) are substantial with significant impact but are difficult to predict, often deviating from regular expectations. These events trigger psychological reactions in the market and susceptible to irrational decisions that challenge logical assumptions. The rapidity of the crisis has led to highly volatile market conditions, fostering instances of asymmetric information. Therefore, this study aimed to explore the impact of attention on market dynamics by examining diverse possibilities over time. The article focused on all publicly listed industries on the Indonesian Stock Exchange (IDX/BEI). Using time series regression data from 1997 to 2020, the article comprised 5,615 observations across nine sectors. The primary model was based on three factors originating from the Fama-French and prospect theory, with attention serving as the main risk element to assess the impact of attention on abnormal returns (AR) during RE. The results disclosed that various events showed diverse effects on attention behavior, varying across all sectors. Additionally, moderation analysis showed a correlation between attention and AR. The results signified that RE mitigates the negative relationship between attention and AR. The adverse impact of attention on AR diminishes during RE. These results contributed to the literature by providing insights into the excessive attention to specific information disrupts market mechanisms, triggers disproportionate emotional responses, and alters investor preferences. Furthermore, this study established that events prompting excessive attention have varying effects on attention behavior across all sectors.

Since the financial meltdown, studies on systemic risk and financial contagion have gained currency. Events like the COVID pandemic and the Russian invasion of Ukraine have fueled such an importance. This study examines the impact of the invasion on volatility transmissions across major stock markets worldwide. The stock indices considered in this study are ASX 200, ESTOXX 40, FTSE 100, HNGSNG, NIFTY 50, NIKKIE, and S&P 500. The work uses Vector Auto Regression (VAR) to study the transmission of returns. Later, the work performs Dynamic Conditional Covariance-Generalized Auto Regression Conditional Heteroskedasticity (DCC-GARCH) on the residuals where the transmission of returns was significant. The DCC-GARCH (E-GARCH) shows that all the asymmetric transmissions are negative. The study finds that co-movements of stock returns for the following pairs: ESTOXX 50-S&P 500, NIFTY 50-FTSE100, NIFTY 50-NIKKIE, NIKKIE-ESTOXX 50, S&P 500-NIFTY 50, and SP500-HNGSNG significantly intensified after the declaration of invasion. Such intensification of co-movements does establish the contagion effect triggered by invasion. The study shows that ESTOXX 50, which has the closest geographical proximity to the war zone, happens to be the highest generator of spillovers.

The study delves into the nuanced interaction between foreign direct investment (FDI) and financial inclusion in the MENA region, spanning the years 2003 to 2022 and employing the General Method of Moments for rigorous analysis. Its primary objectives are to elucidate how financial inclusion influences FDI and to examine the mediating role of economic growth and inflation as key factors. Key findings reveal a robust positive correlation between financial inclusion and FDI inflows within MENA countries. Specifically, the study uncovers significant relationships between FDI and the various dimensions of financial inclusion, including access, availability, and usage. This underscores the pivotal role of inclusive financial systems in attracting foreign investment. Moreover, the study highlights the symbiotic relationship between economic growth and FDI, indicating that heightened levels of economic prosperity attract greater investment. This underscores the importance of fostering conducive economic conditions to attract foreign capital. Furthermore, the study underscores the critical role of financial inclusion in shaping monetary policy and mitigating investment risks. By facilitating access to capital and reducing uncertainty, financial inclusion promotes transparency and stability, thereby enhancing the attractiveness of foreign markets for investment.

The rapid advancement and adoption of fintech have significantly influenced the banking sector worldwide. This study aims to investigate the moderating effect of information technology infrastructure on the link between fintech adoption and organizational competitiveness in Jordanian commercial banks. The study chose a quantitative research methodology to conduct this study, based on a survey of 12 Jordanian commercial banks, chose a quantitative research methodology. The study distributed a structured questionnaire, which was filled out by managerial-level employees at the banks. From the 400 questionnaires distributed to the respondents, 215 returned valid responses, allowing further analysis. The study carried out the data analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results suggested that the adoption of fintech had a significant, positive direct impact on organizational competitiveness (H1: β = 0.409, t = 5.204, p = 0.001). Additionally, the study identified that IT infrastructure significantly moderates the relationships between fintech adoption and organizational competitiveness (H2: β = 0.257, t = 4.102, p = 0.000). This means, indeed, that fintech adoption independently augments the competitiveness of Jordanian commercial banks. Moreover, a solid presence in IT infrastructure further strengthens the positive effect. Such insights are highly valuable for bank managers and policymakers looking to improve organizational performance while incorporating strategic IT investments in the fintech domain.

Global scandals and the collapse of major entities without any prior warning have undermined stakeholder confidence in the auditing profession and have shown that users of financial statements may have different opinions on the auditors’ responsibilities, highlighting the audit expectation gap. The present study aims to identify the existence of an audit expectation gap and its components in an emerging country, namely Morocco. For this purpose, a structured questionnaire based on a five-point Likert scale was randomly administered to 152 respondents, including auditors, investors, managers, bankers, and academics. The study explores the audit expectation gap under several components, such as the auditor’s general responsibilities, auditor’s independence, his/her responsibility to prevent and detect fraud, his/her responsibility in assessing internal control, his/her responsibility in assessing the going concern assumption and audit report. The results of this paper show evidence of the audit expectation gap in Morocco in the studied components, except the audit report. The results of the study encourage public decision-makers and professional audit bodies in Morocco to adopt an expanded audit report containing more information on the audit mission and auditors’ and management’s responsibilities. On the other hand, training and education sessions on the nature and functions of auditing should be provided on an ongoing basis to the various users of audit reports.

This study investigates the evolving dynamics of the Indonesian stock market in relation to selected ASEAN countries (Malaysia, Singapore, Thailand, and the Philippines) and global economic players (the US, Japan, and China) during and after the COVID-19 pandemic. Utilizing weekly data for the pandemic era (January 2020 – December 2021) and the post-pandemic period (January 2022 – December 2023), the ARDL technique reveals intricate relationships among these capital markets. Long-term analyses indicate that Singapore and the Philippines positively influenced Indonesia’s market during the pandemic. At the same time, China had a negative impact, highlighting heightened sensitivity and interconnectedness during crises. Since the pandemic, Malaysia, Singapore, the US, China, and Japan emerged as key positive influencers, with other countries showing insignificance. In the short term, during the pandemic, Malaysia, Thailand, and China had a significant positive impact on Indonesia’s capital market. However, only Malaysia continued to exert a significant influence on Indonesia after the pandemic. These findings provide valuable insights into the dynamic interactions shaping Indonesia’s stock market performance amidst global economic fluctuations and crises.

The study analyzes the factors influencing integrated reporting and its implications for firm value with earnings quality as a moderating variable. The study was conducted on energy sector companies on stock exchanges of several Southeast Asian countries. The selection is due to Southeast Asia’s vulnerability to global market sentiment changes related to financial and sustainability aspects. The study employed the SEM-PLS analysis method. 208 data from 26 companies over 8 years were used. The investigation affirms that leverage, age, and board size have positively impacted integrated reporting. Firm size, growth, and board independence have a negative impact on integrated reporting. Profitability, board activity, and stakeholder pressure have not significantly influenced integrated reporting, but integrated reporting positively impacts firm value. Additionally, earnings quality does not moderate the influence of integrated reporting on firm value. The study provides insights for companies to improve the presentation of high-quality information to stakeholders. Increasing the firm value of energy companies in Southeast Asian countries needs to be done as a progressive concern for environmental impacts and sustainably creating integrated reporting. 

This study’s purpose is to assess the influence of small and medium-sized enterprises’ (SMEs) budgeting skills on loan repayment in South Africa. The quantitative research approach was selected as the appropriate methodology for this study, while the purposive sampling approach was selected as the appropriate way to select participants for this study. The primary data for this study came from respondents who were business owners of SMEs in the retail, hardware, construction, and manufacturing industries. SPSS was used to analyze the acquired data. A total of 380 research questionnaires were distributed, and there were 375 that were returned for analysis (which gives a response rate of 99%). Both a regression analysis and a correlation analysis using Pearson’s method were carried out. Pearson’s correlation coefficient revealed a positive and significant relationship between SMEs’ budgeting skills and loan repayment at the level of r =.250, p < 0.0005. These results were supported by the finding that there is a positive and significant association between these two factors. According to the findings of the study, it is recommended that financial providers educate their SMEs on how to prepare various types of budgets, how to follow up and compare their financial objectives to their performance, and that financial institutions and government organizations should assist SMEs with budgeting skills to decrease SME loan defaults.

This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.
The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintech’s evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sector’s flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordan’s financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sector’s development, reflecting the world’s trend in digital inclusion and viable financial development.

This study examines the influence of the mandatory disclosure of corporate governance reports on stock retirement in Korea. Given the challenges of applying stock repurchasing to measure shareholder return policy in the Korean stock market, this study focuses on stock retirement as a key indicator to examine the effectiveness of introducing the corporate governance report on shareholder return policy. Employing the Difference-in-Differences approach followed, this paper conducts empirical analyses based on 5,932 observations from 2011 to 2020. The main findings indicate a significant increase in stock retirement by companies implementing mandatory disclosures of corporate governance reports (coef = 0.018, p-value <0.01) compared to companies that do not disclose them. The results of the alternative measures for stock retirement and propensity score matching (PSM) model also present a positive association between mandatory disclosure of corporate governance reports and stock retirement, respectively (coef = 0.400 and 1.421, p-value <0.01; coef = 0.019, p-value < 0.1). This study provides evidence to support the notion that introducing corporate governance reports enhances overall shareholder returns, leading to an increase in stock retirement. Moreover, these findings validate that stock retirement is an adequate proxy for analyzing the level of shareholder returns in Korean firms.

This study aims to determine the impact of macroeconomic variables on bitcoin prices in the United States. Bitcoin is one of the cryptocurrencies that has the highest price and the most users in the United States in recent years. This study uses monthly data on inflation, interest rates, USD/EUR rates, gold prices, and bitcoin prices. To achieve the objectives of this study, Dynamic Conditional Correlation (DCC) and Multivariate Generalized Autoregressive Conditional Heteroscedasticity (MGARCH) were used. The results showed that there is a negative and significant relationship between the variables of inflation, interest rates, and USD/EUR rates affecting the price of Bitcoin in that period. Conversely, there is a positive and significant relationship between the price of gold and the price of Bitcoin in the United States during that period. An in-depth understanding of how macroeconomic factors such as inflation, interest rates and the USD/EUR rates affect Bitcoin price is key to making smart investment decisions in an increasingly complex crypto market. The findings of this analysis confirm that the significant relationship between macroeconomic variables and Bitcoin price provides deeper insights for investors to anticipate market movements and design adaptive investment strategies.

This study examines the impact of operating capital management (WCM) strategies on the monetary execution of small and medium-sized enterprises (SMEs) in Poland, with a particular focus on finding the correct equalization between liquidity and benefit. The review utilizes relapse investigation to survey the effect of forceful and conservative (WCM) techniques on the benefit and fluidity of 4,891 Polish SMEs from 2012 to 2021, as measured by an informational index of budgetary and operational information. The results demonstrate a noteworthy connection between WCM improvements and budgetary results. However, aggressive actions do not just mean higher earnings; they also involve heavier financial risks. On the other hand, cautious methods are linked with stronger financial stability but may lead to lower profit. According to the survey, when cash conversion cycle (CCC) days fall by 1%, return on total assets (ROA) can increase by approximately 1:0 percentage points. This demonstrates again that WCM is very important in improving company profits. These findings have implications for academics, practitioners, and government officials.

The study investigated the impact of intellectual property rights on foreign direct investment (FDI) in selected African countries (Burkina Faso, Ivory Coast, Nigeria, Cameroon, Mali, Kenya, Burundi, Central African Republic, Rwanda, Senegal, Zimbabwe, and Tanzania). The purpose of the study is to develop property rights policies that encourages FDI in African countries. How FDI is influenced by the combination of trade openness and intellectual property rights was also examined using the same data set and econometric methods such as the dynamic generalized method of moments (GMM), fixed effects, and pooled ordinary least squares (OLS). Panel data ranging from 2005 to 2019 were used for the purposes of this study. A 1% increase in intellectual property rights led to a 22.73% increase in FDI inflows under the dynamic GMM and a 45.55% increase in FDI inflows under the random effects. These results show that intellectual property rights significantly enhanced FDI under the random effects and dynamic GMM. FDI was insignificantly enhanced by intellectual property rights under the pooled OLS and fixed effects methods. A 1% increase in complementarity between intellectual property rights and trade openness (complementarity term) pushed up FDI inflows by 17.78% under the dynamic GMM, whilst a 1% increase in the complementarity term increased FDI inflows by 16.72% under the fixed effects. In other words, dynamic GMM and fixed effects approaches show that the complementarity component significantly improved FDI inflows. The paper recommends implementing the best property rights strategies to improve FDI inflows into African countries.

Acknowledgment
The author appreciates the moral support from the University of South Africa, his employer.

Operators of financial institutions in developing economies have a significant impact on economic activity by funding innovative initiatives. However, the lack of existing documentation to demonstrate the empirical relationships between financial innovation and the quality of the partnership relationship between these institutions represents a major gap in strategic and international management.
This paper presents an empirical study aimed at uncovering the results of the quality of financial institutions’ relationships regarding innovation within strategic alliances.
Using a qualitative research model, the study explores the positive influence of the quality of the relationship on financial innovation within Moroccan financial institutions engaged in strategic alliances. Four research hypotheses were tested using regression analysis on a sample of 34 strategic alliances formed by Moroccan financial institutions during the reference periods of 2018–2022.
The empirical results show that the quality of reconciliation relationships among Moroccan financial institutions has significantly contributed to their financial innovation. It is particularly crucial to combine two essential characteristics: mutual trust and partner commitment. On the other hand, mechanisms of mutual exchange and communication do not significantly affect financial innovation. The study underscores the importance of promoting high-quality ties within strategic alliances to foster financial innovation in Moroccan financial institutions. This emphasizes the significance of trust and mutual commitment between partners in promoting innovation in the financial sector.

The present study explores the effectiveness of the credit channel of monetary policy transmission in India from the perspective of magnitude, timing, and composition puzzles. To validate, further investigation of the effectiveness of the balance sheet channel and bank lending channel using the corporate cash flows and interest rate spreads, respectively, has been done. The study employs the structural vector autoregression model using the long-time quarterly series sample period from June 1998 to June 2022. The findings show that the anomalies concerning magnitude, timing, and composition effect do not exhibit a strong presence in the Indian context. The analysis of the weighted average call money rate and coverage ratio suggests a weak presence of the balance sheet channel in India with a weak negative correlation of 0.2943 (p < 0.05). The overall behavior of spread analysis also shows a weak presence of the bank lending channel in India. Although some presence of the bank lending channel is seen on banks’ managed liability side, the effect of external finance premium is not reflected in the lending rates with a correlation of 0.0577 (p > 0.05) between prime lending rate spread and weighted average call money rate spread. From the evidence, the study concludes the weak presence of the credit channel in India. Therefore, the monetary authorities might have to rely on other channels or may devise other unconventional mechanisms like Operation Twist and Long-Term Repo Operations observed during the COVID-19 pandemic to steer the real economy.

In the rapidly evolving telecommunications industry, accurate valuation of tangible assets remains a critical challenge that requires adherence to universally recognized standards. This study addresses the pressing need for transparent and precise asset valuation methodologies that are pivotal for informed investment decisions and financial reporting. It aims to bridge the theoretical and practical divide in asset valuation by applying International Valuation Standards (IVS) 300 and 400 to Asiacell Communications PJSC, a leading entity in the sector. Focusing on five key tangible assets from 2018 to 2022 – lands, buildings, plant and equipment, means of transport and transfer, and furniture and office equipment – the study employs the income approach, augmented by a random walk model for future cash flow forecasting and the weighted average cost of capital for discounting. This innovative methodology offers a comprehensive valuation framework, revealing that despite Asiacell’s consistent growth rate of 4.63%, all asset categories experienced a depreciation upon revaluation. The study’s findings underscore the significance of implementing IVS in elucidating the asset valuation process, demonstrating the potential discrepancies between book values and standards-based valuations. The application of IVS 300 and IVS 400 not only enhances the transparency and accuracy of asset valuation but also provides valuable insights into the contributions of tangible assets to future income within the prevailing market conditions. By offering a replicable model for asset valuation in dynamic industries, this study contributes to the broader discourse on financial reporting and investment analysis, setting a foundation for future exploration in the field.

This study assesses the impact of mergers and acquisitions on Environmental, Social, and Governance (ESG) performance and market value of acquiring companies operating in India. Data were collected and analyzed from 69 M&A announcements from January 2010 to June 2023, sourced from the Bloomberg database. The analysis reveals a positive correlation between the post-merger market value of acquiring firms and their ESG performance, indicating that an improvement in ESG factors is associated with increased market value after mergers. Additionally, a positive correlation was identified between acquiring companies’ post-merger ESG performance and their target firms’ pre-merger ESG performance. This finding suggests that when acquiring a target firm with high ESG performance, the acquirer is likely to experience an improvement in its own post-merger ESG performance. Moreover, both the post-merger market value and ESG performance of the acquirer are likely to improve with the profitability and size of firms but will have a negative impact based on the leverage components of the acquiring firms. 

The adoption of environmental, social, and governance (ESG) measures to realize socially responsible companies continues to accelerate, becoming a trend amid global uncertainty due to climate change and the COVID-19 pandemic. This study aims to examine the effect of company growth on sustainable performance, moderated by company stock mispricing in Indonesia and Japan, representing a developing and a developed country, respectively. This study uses panel data regression, namely the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), to test hypotheses. With a total of 42 observations from companies listed on the Indonesia Stock Exchange (IDX) and 112 observations from companies listed on the Japan Stock Exchange (JPX) during 2019–2020, the results show that a company’s growth has a negative effect on sustainable performance in Indonesia, while in Japan it has no effect. Stock mispricing strengthens the negative effect of company growth on sustainable performance in Indonesia but has no effect in Japan. This study found that companies in Indonesia place more emphasis on internal growth than on ESG implementation compared to companies in Japan. The implication of this study is that the implementation of ESG shows different dynamics when comparing two countries. Indonesia needs to evaluate the regulations governing socially responsible businesses in order to encourage further improvement of ESG performance. Meanwhile, in Japan, ESG practices have been running voluntarily, so enforcement from regulators is relatively less necessary.

This study investigated the effect of tax avoidance (TAV) on company value in Jordan, with a specific focus on the moderating role of leverage. The sample is 55 Jordanian industrial firms listed on the Amman Stock Exchange for the study period from 2005 to 2022. Given the evolving regulatory landscape and the importance of tax planning strategies for corporate performance, understanding these dynamics is critical. Employing panel data analysis spanning several years, the study examined the link between tax avoidance, leverage, and company value. The results indicated a significant negative association between TAV and firm value (the correlation between them is –29.3%), suggesting that firms engaging in higher levels of TAV experience lower market valuations. Additionally, the analysis reveals that leverage plays a crucial moderating role in this relationship, amplifying the negative impact of TAV on firm value. The study also found a strong correlation between firm value and size, and the relationship between firm value and ROA remains significant and positive. These findings provided valuable information for policymakers, corporate executives, and investors navigating the complexities of contemporary business environments in Jordan and beyond.

The classical view of experts associates greater risks with greater rewards. The present study explores whether increased volatility in portfolios can create more returns for investors by using technical indicators or the buy-and-hold (BH) strategy. The study used closing prices of National Stock Exchange (NSE) 500 index firms for a period of 16 years (2007–2022). Five portfolios ranging from low to high volatility were created using standard deviation as a key measure. Findings indicate that as the volatility of the portfolios increases, the moving average (MA) returns seem to be higher. Across the various MA time frames, the 20-day MA seems to have generated the highest return annually (36.53% before transaction costs and 31.05% after transaction costs) due to reasonable trading opportunities with adjustable transaction costs. The CAPM also generated positive alpha (after bearing transaction costs) in the case of 20, 50, and 100 days MA, with the values being 16.66%, 13.29%, and 12.09%, respectively, in the case of highly volatile portfolios. On the other hand, while the BH strategy created substantial returns in all scenarios, the risk factor was extremely high due to the high standard deviation. Hence, it is suggested that investors/traders consider the BH strategy more cautiously while choosing between technical analysis returns and BH returns. Investors with high-risk preferences may have BH as their choice, while day traders with managed risk appetites may prefer technical tools over BH returns.

Acknowledgment
The infrastructural support provided by the FORE School of Management, New Delhi in completing this paper is gratefully acknowledged.

Enterprise risk management (ERM) is a crucial aspect of corporate operations. This study examines the impact of environmental uncertainty, industry competition, and firm complexity on Enterprise Risk Management implementation and firm performance in the Southeast Asian mining industry. Utilizing data from 205 mining companies listed on Southeast Asian stock exchanges from 2016 to 2022, the analysis employs panel data regression methods. The findings reveal that environmental uncertainty does not significantly affect ERM, while industry competition positively influences ERM but negatively impacts firm performance. Firm complexity positively affects both ERM and performance. ERM mediates the relationships between industry competition, firm complexity, and performance, while intellectual capital moderates the effect of ERM on performance. These results underscore the strategic importance of integrating ERM practices and developing intellectual capital to enhance firm performance amidst competitive and complex business environments. The study contributes to the literature by providing empirical evidence on the nuanced relationships between these variables in the context of the Southeast Asian mining sector and offers practical insights for policymakers and industry leaders.

The primary aim of this study is to delve into the factors influencing individuals’ readiness to embrace financial technology (FinTech) services in Bangladesh. Specifically, the study focused on Bangladeshi fintech consumer’s knowledge about contemporary digital financial tools, such as mobile-based payment service apps. Data collection was carried out using a survey questionnaire tailored to the Bangladeshi context. Participants were invited to participate in the survey, and their responses were gathered upon their consent. A five-point Likert scale, ranging from ‘1’ for ‘Strongly Disagree’ to ‘5’ for ‘Strongly Agree,’ was employed to gauge the questionnaire items. The final sample size was 450 respondents. To assess the hypotheses, a 5% significance level was employed, with data analysis conducted using SPSS software. The findings underscore a positive and statistically significant impact of financial literacy, digital literacy, and financial self-efficacy on the adoption of FinTech services in Bangladesh. Collectively, these variables elucidate 48.20% of the variance (R2=0.482) in predicting individuals’ adoption behavior of FinTech. Financial self-efficacy (β = 0.574; t-value = 8.394) has the highest effect on FinTech adoption compared to the other two factors. Additionally, a substantial correlation coefficient (r=0.634) is present between digital literacy and FinTech adoption. This study contributes to the extant literature on FinTech services by providing valuable insights that enhance scholars’ understanding of the emerging financial technologies’ significance and their predominant impacts within the Bangladeshi FinTech ecosystem. These findings hold implications for policymakers, financial institutions, and stakeholders seeking to promote FinTech adoption and foster financial inclusion in Bangladesh.

Weak-form efficiency means that stock prices should reflect all historical information and follow a random walk. This study examines the effect of the COVID-19 pandemic on the stock market weak-form efficiency of Arab countries, namely, Jordan, Lebanon, Kuwait, Morocco, Oman, Palestine, Bahrain, Egypt, Iraq, Qatar, Saudi Arabia, the United Arab Emirates, Syria, Tunisia, and Sudan. Daily data from July 1st, 2021 to November 12th, 2022 (370 trading days) are used to cover the period after starting the pandemic. The variance ratio and the runs test are used to test return predictability. The results show that the variance ratio values of Boursa Kuwait, the Egyptian Exchange, Tadawul, and the Amman Stock Exchange are statistically significant, indicating that their returns are unpredictable. In specific, the indices of these stock markets follow a random walk, and their price changes are independent. This is evidence that these stock markets are efficient at a weak level. In contrast, the insignificant values of the variance ratio indicate that returns are predictable in other Arab stock exchanges after the pandemic era. The findings of the Egyptian Exchange, Tadawul, and the Amman Stock Exchange are confirmed using the run test of weak-form efficiency. It reveals that the indices of these stock exchanges follow a random walk, while the indices of other Arab stock markets do not.

Since the introduction of IFRS in the European context and various countries worldwide, several studies have examined the impact of this new approach to asset and liability valuation on financial ratios and company values. The present study attempts to determine whether accounting figures prepared in accordance with this new international accounting regime better reflect the market value of companies listed on the Moroccan market compared to those prepared under Moroccan accounting standards. Empirically, the study is based on association studies using the returns model and covers a sample of 27 companies listed on the Casablanca Stock Exchange for the period 2015–2020, i.e., 162 observations. The regression results show that accounting figures prepared according to IFRS standards better reflect stock market profitability than those prepared according to local standards, with the explanatory power increasing from 16.76% to 23.64% for the pre-IFRS period compared to the post-IFRS period. This means that by adopting IFRS standards, accounting values tend to be closer to stock market values, thus confirming the hypothesis that IFRS standards deliver a better information content of accounting figures.

Recently, corruption has become widespread, and firms' responses to corruption carry significant implications. The aim of this study is to check how corruption levels in Jordan influence the capital structure of 80 non-financial companies listed on the Amman Stock Exchange (ASE) from 2013 to 2022. Capital structure is the main dependent variable, and corruption is the crucial variable analyzed as the independent factor. Control variables include company age, profitability, asset tangibility, company size, and the Gross Domestic Product (GDP), in addition to the inflation rate, to create a solid framework for analyzing this nexus. This quantitative research paper applies the fixed-effect (FE) estimation to examine the static model of the study and the generalized method of moment (GMM) for the dynamic model via panel data investigation encompassing 800 company-year observations. The R2 results explain 42.1% of the variations in capital structure level. Accordingly, a 1% upsurge in corruption is accompanied by a 0.0367-unit upsurge in the capital structure ratio. This response is interpreted through the lens of the shielding theory, suggesting that firms raise debt to protect themselves against the predations of corrupt officials. The analysis reveals meaningful connections between the control variables and the capital structure. Specifically, increases in tangibility, firm size, inflation, and GDP correspond to a 3.56%, 1.07%, 6.06%, and 2.143% increase in capital structure, respectively, indicating a positive influence. Conversely, the firm age and profitability variables show adverse effects on capital structure, with coefficients of –1.46% and –7.3%, respectively.