scholarly journals Purging of impure income: a comparative study of the existing purging methodologies

2017 ◽  
Vol 9 (1) ◽  
pp. 62-80
Author(s):  
Wasiullah Shaik Mohammed ◽  
Mufti Abdul Kader Barkatulla ◽  
Mohammed Husain Khatkhatay ◽  
Zaffar Abbas
Keyword(s):  
Comparative Study ◽  
Stock Exchange ◽  
Company Law ◽  
Capital Gains ◽  
Stock Exchanges ◽  
Proper Understanding ◽  
Content Type ◽  
Software Application ◽  
Personal Understanding

Purpose The purpose of this paper is to study the concept of purging and present a comparative study of the existing purging methodologies prevailing in the market with a view to evolving a more effective method of capturing the entire impure income to be purged. Design/methodology/approach To illustrate the present discussion, a case study of purging based on numerical examples has been included. The argument has also been supported with empirical data related to the universe of Sharīʿah-compliant stocks listed on Indian stock exchanges. Findings During the study, it was found that the existing purging methodologies of calculating impure income to be purged have conceptual and practical shortcomings. Research implications/limitations The scope of the current research is limited to calculation of impure income which accrues on account of Sharīʿah non-compliant investments directly or indirectly. It does not try to quantify the benefit which may be imputed in the form of capital gains made in trading of the investee company shares due to higher market value of the shares as a result of the impure income earned by the investee company. The paper has focused on identifying and calculating the impure income on account of interest. Impure income earned from specific Sharīʿah non-compliant products or services has not been considered directly. The reason for this is that companies dealing in such products or services are generally excluded at the business screening stage itself. In the case of those companies which derive a relatively small proportion of their total income from such activities and pass the business screening stage, the quantum of the impure income is not generally reported separately in company accounts. Practical implications/limitation The result of adopting the proposed methodology will lead to complete purging of impure income (to the extent that is possible under present Company Law and stock exchange reporting regulations). Implementation of the proposed method requires a proper understanding of the working of listed companies and either a sound mathematical background or access to a software application to calculate the impure income to be purged. Originality/value The current paper is original and based on the authors’ personal understanding and experience of providing Sharīʿah consultancy services related to Sharīʿah-compliant investments.

Towards a taxonomy of intergenerational knowledge transfer practices

2018 ◽  
Vol 25 (2) ◽  
pp. 81-91
Author(s):  
Kerstin Kuyken ◽  
Mehran Ebrahimi ◽  
Anne-Laure Saives
Keyword(s):  
Knowledge Transfer ◽  
Comparative Study ◽  
Design Methodology ◽  
Qualitative Case Study ◽  
High Tech ◽  
Content Type ◽  
Case Study Design ◽  
Younger Workers ◽  
Intergenerational Knowledge

Purpose This paper aims to develop a better understanding of intergenerational knowledge transfer (IKT) practices by adopting a context-related and comparative perspective. Design/methodology/approach A qualitative case study design involving 83 interviews and non-participative observation in German and Quebec organizations has been chosen. Findings Two distinctive archetypes of IKT emerge from both national contexts: “we-individualizing” (Germany) and “I-connecting” (Quebec), leading to an eightfold taxonomy of IKT practices. Research limitations/implications This research is limited to young and senior workers and to high-tech sectors. Originality/value Comparative and inductive study of IKT, adaptation of IKT practices to national contexts, retaining younger workers. This inductive and comparative study allows a better adaptation of IKT practices to national contexts and therefore a better retention of younger workers.

Epidemics and Chinese firms' stock returns: is COVID-19 different?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quang Thi Thieu Nguyen ◽  
Dao Le Trang Anh ◽  
Christopher Gan
Keyword(s):  
Stock Returns ◽  
Negative Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Disease Outbreaks ◽  
Stock Exchanges ◽  
Content Type ◽  
Event Study Method ◽  
Economic Shock ◽  
The Impact

PurposeThis study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.Design/methodology/approachThe study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19FindingsEpidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.Research limitations/implicationsThe results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.Originality/valueThe research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

Exploring the nexus between integrated reporting and sustainability embeddedness

2019 ◽  
Vol 10 (5) ◽  
pp. 822-843 ◽  
Author(s):  
Catherine Le Roux ◽  
Marius Pretorius
Keyword(s):  
Stock Exchange ◽  
Single Case ◽  
Listed Company ◽  
Data Gathering ◽  
Integrated Reporting ◽  
Content Type ◽  
Multiple Data ◽  
Practical Implications ◽  
Insight Into

Purpose This paper aims to explore the nexus between integrated reporting and sustainability embeddedness. It seeks to contribute to a better understanding of the nexus by obtaining in-depth insight from the sensemaking of those in practice. Design/methodology/approach A single exploratory case study design strategy was applied to a leading stock exchange listed company in the property industry in South Africa. Rich qualitative data were gathered by applying multiple data gathering techniques to a diverse group of employees within the case company. Findings This empirical study contributes a metaphor of a cog and chain and nine themes that elucidate employee sensemaking at the nexus. Integrated reporting was found to drive sustainability embeddedness and foster changes within the organisation. The themes offer in-depth insight into how employees made sense of integrated reporting as a driver for sustainability embeddedness. Research limitations/implications The findings emerged from a single case study that operated in a mandatory disclosure context and are therefore not generalisable. The findings reflect the intended outcomes of integrated reporting and further research to explore the unintended outcomes and challenges associated with integrated reporting is suggested. Practical implications The study contributes to a growing practice based agenda by offering a better understanding of how integrated reporting and sustainability are conceptualised and adopted in practice. Social implications The findings offer organisations’ guidance on integrated reporting and sustainability embeddedness adoption which can have vast implications for society and the environment. Originality/value The study responds to gaps in the literature and calls for studies to explore the intersection between integrated reporting and sustainability embeddedness by engaging those in practice.

Market microstructure: a comparative study of Bombay stock exchange and national stock exchange

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anshi Goel ◽  
Vanita Tripathi ◽  
Megha Agarwal
Keyword(s):  
Market Microstructure ◽  
Capital Market ◽  
Stock Exchange ◽  
Arima Model ◽  
Unit Root Test ◽  
Stock Exchanges ◽  
Investment Strategies ◽  
Trading System ◽  
Content Type ◽  
Trading Mechanism

PurposeThe present study seeks to investigate the relative edge between the market microstructure of the two leading stock exchanges of the Indian capital market, that is BSE and NSE with a focus on analysing their trading mechanism, efficiency, liquidity and volatility.Design/methodology/approachWe analyse the microstructure of BSE and NSE on the basis of: (1) trading mechanism – ownership structure, listing of securities, trading system and settlement and clearing process; (2) information efficiency using unit root test, serial correlation, runs test, variance ratio and the ARIMA model; (3) liquidity using trading statistics no. of listed Companies, market capitalisation, no. of trades etc. and (4) volatility using standard deviation and GARCH(1,1) model.FindingsA comprehensive scrutiny on microstructure of BSE and NSE makes it evident that the two leading stock exchanges of India are mostly similar and leave no scope to choose between them. Both the exchanges are demutualised corporate entities with a fully automated trading system in an order-driven market, informationally inefficient as evidenced by the predictability of returns, have shown tremendously growing trading statistics and by and large a declining trend in volatility over the years.Practical implicationsUnderstanding the components of the microstructure black-box will provide the regulatory bodies with an intellectual framework to strengthen the market architecture. Both the exchanges will get aware of the dynamics of trading, can grow to be more competitive and attract more firms for listing and investors for trading of securities. Also, investors, portfolio managers and equity analysts will be able to make better investment strategies by understanding how the market works.Originality/valueResearch in the area of market microstructure has been severely neglected, especially in the context of the Indian market. India is the world's fastest growing economies and we have witnessed tremendous reforms in the capital market. The past two and a half decades have brought about several innovations via demutualisation, screen-based trading, emergence of clearing corporations, innovative financial products and intense use of IT in the Indian stock market. A spurt of reforms and the emerging environment make it crucial to deeply analyse the market structure and design of two premier stock exchanges of India – BSE and NSE.

Prescriptive portfolio selection: a compromise between fast and slow thinking

2017 ◽  
Vol 9 (2) ◽  
pp. 98-116 ◽  
Author(s):  
Omid Momen ◽  
Akbar Esfahanipour ◽  
Abbas Seifi
Keyword(s):  
Portfolio Selection ◽  
Stock Exchange ◽  
Efficient Frontier ◽  
Fast System ◽  
Content Type ◽  
The Mean ◽  
Selection For ◽  
Mean Variance ◽  
Prescriptive Analysis

PurposeThe purpose of this paper is to develop a prescriptive portfolio selection (PPS) model based on a compromise between the idea of “fast” and “slow” thinking proposed by Kahneman. Design/methodology/approach“Fast” thinking is effortless and comfortable for investors, while “slow” thinking may result in better performance. These two systems are related to the first two types of analysis in the decision theory: descriptive, normative and prescriptive analysis. However, to compromise between “fast” and “slow” thinking, “overconfidence” is used as a weighting parameter. A case study including a sample of 161 active investors in Tehran Stock Exchange (TSE) is provided. Moreover, the feasibility and optimality of the model are discussed. FindingsResults show that the PPS recommendations are efficient with a shift from the mean-variance efficient frontier; investors prefer PPS portfolios over the advisor recommendations; and investors have no significant preference between PPS and their own expectations. Research limitations/implicationsTwo assumptions of this study include: first, investors follow their “fast” system of thinking by themselves. Second, the investors’ “slow” system of thinking is represented by advisor recommendations which are simple expected value of risk and return. Therefore, considering these two assumptions for any application is the main limitation of this study. Moreover, the authors did not have access to more investors in TSE or other financial markets. Originality/valueThis is the first study that includes overconfidence in modeling portfolio selection for the purpose of achieving a portfolio that has a reasonable performance and one that investors are comfortable with.

scholarly journals Contested takeovers of family firms and socioemotional wealth: a case study

2017 ◽  
Vol 12 (4) ◽  
pp. 447-463 ◽  
Author(s):  
Kevin Campbell ◽  
Magdalena Jerzemowska
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Warsaw Stock Exchange ◽  
Gains And Losses ◽  
Takeover Bids

Purpose The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewelry company W. Kruk. Design/methodology/approach The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and SEW theory. Findings After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man “defense.” The case study illustrates the importance of SEW in family firm takeovers. Research limitations/implications The case study design has limitations for generalizability. Nevertheless the research highlights the important role of SEW preservation in understanding the market for corporate control of listed family firms in Poland. Practical implications Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and SEW considerations, not just financial gains and losses. Originality/value The case study demonstrates the importance of SEW to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.

scholarly journals Tadawul and Dubai Financial Market - A Comparative Study

2020 ◽  
Vol 9 (2) ◽  
pp. 45
Author(s):  
Issam Tlemsani ◽  
Fai Albadeen ◽  
Ghada Althaaly ◽  
Maha Aljughaiman ◽  
Hala Bubshait
Keyword(s):  
Comparative Study ◽  
Financial Market ◽  
Growth Rates ◽  
Strong Influence ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Gdp Growth ◽  
Economic Market ◽  
Stock Valuation ◽  
Better Than

This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges ‘Tadawul’ and ‘Dubai Financial Market’. These stock exchanges are compared in terms of their strengths and weaknesses according to significant economic indicators, alongside essential stock market determinants, all the while highlighting relevant relationships among them. Upon assessment, GDP has a strong influence on the valuation of the market and KSA’s GDP growth in the last two years has been slightly higher than UAE’s growth, affecting projected GDP growth rates. Tadawul performed better than DFM in P/E ratio indicating a higher willingness to invest in the Saudi stock exchange as well as a higher return expectation. DFM’s stocks are highly undervalued. It can be concluded that both stock exchanges are strong and competitive respectfully, and their potential for growth depends on the economic market that they originate from.

Return and volatility spillover effects between the Turkey and the Russia stock market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Melih Kutlu ◽  
Aykut Karakaya
Keyword(s):  
Stock Exchange ◽  
Spillover Effects ◽  
Stock Exchanges ◽  
Volatility Spillover ◽  
Full Sample ◽  
Content Type ◽  
Crisis Period ◽  
Volatility Spillovers ◽  
Volatility Analysis ◽  
Economic Developments

PurposeThis study aimed to investigate return and volatility spillover between the Borsa Istanbul (BIST) and the Moscow Stock Exchange (RTS).Design/methodology/approachThis study used generalized autoregressive conditionally heteroscedasticity (GARCH) model for volatility and the Aggregate Shock (AS) model for return and volatility spillover. The data are divided into six sub-periods. Period events take place between Turkey and Russia.FindingsBIST investors considered the return and volatility of the RTS, it is observed that Moscow Stock Exchange investors considered only the return of BIST at the full sample. It is only a return spillover from BIST to RTS and neither the return nor the volatility of the RTS is spillover to BIST in the pre-crisis period. No evidence of return and volatility spillover between the BIST and the RTS in the post-crisis period. The returns and volatility spillovers between Russia and Turkey are mutual feedback in the jet crisis period.Practical implicationsEconomic developments between Turkey and Russia is growing rapidly in recent years. The return and volatility analysis between the stock exchanges of these two countries is important for investment decisions.Originality/valueThere are many studies in the literature about emerging markets. There are also Turkish and Russian stock exchanges in these studies. However, this study only examined return and volatility spillover analysis between the Turkish and Russian stock exchanges and prevents the results from being overlooked among other countries.

Does better corporate governance increase operational performance?

2017 ◽  
Vol 17 (3) ◽  
pp. 524-537 ◽  
Author(s):  
Renata Wandroski Peris ◽  
Eduardo Contani ◽  
José Roberto Ferreira Savoia ◽  
Daniel Reed Bergmann
Keyword(s):  
Corporate Governance ◽  
Regression Model ◽  
Stock Exchange ◽  
Control Variable ◽  
Principal Component ◽  
Operational Performance ◽  
Stock Exchanges ◽  
Content Type ◽  
Governance Practices ◽  
High Level

Purpose This study aims to examine the association between the adoption of corporate governance practices and operational performance in companies listed on the Brazilian Stock Exchange. Design/methodology/approach The sample comprises the 80 largest companies in market value present in the Brazil Stocks Index in 2014. Principal component and cluster analyses techniques are used to evaluate performance and capital structure, and a regression model is applied to identify the relationship between key variables. Findings The findings show that the incidence of a high level of corporate governance in Brazil occurs among smaller companies with less desirable operational performance, rather than the biggest (blue chip) companies. Using a regression model with the return on assets as a dependent variable, a dummy variable for “governance”, and the size of the companies as a control variable, the authors find no association with good practices of corporate governance and operational performance for the companies in the sample. Practical implications Newer companies are more likely to exhibit a higher level of corporate governance because of the actions of foreign investors who demand the adoption of stronger corporate governance practices. Although there is demand from wealthy local institutional investors, many older traditional firms could still restructure to achieve higher levels of governance, especially in the case of emerging economies with less mature stock exchanges Originality/value This study contributes to the recent debates in the literature by identifying evidence for an association between operational performance and corporate governance rather than a causal relationship.

A case study of blended e-learning in Thailand

2020 ◽  
Vol 17 (2) ◽  
pp. 197-214 ◽  
Author(s):  
Jittima Wongwuttiwat ◽  
Vasa Buraphadeja ◽  
Tanakom Tantontrakul
Keyword(s):  
Undergraduate Students ◽  
Learning Performance ◽  
Content Type ◽  
Software Application ◽  
Professional Educators ◽  
E Learning ◽  
Males And Females ◽  
Face To Face Learning ◽  
Improved Learning

Purpose This case study aims to analyze and compare the learning achievements of two groups of university students taught by: traditional face-to-face learning (TDL) and blended e-learning (BEL). To the best of the authors’ knowledge no previous study of the use of BEL in the context of Thailand has addressed the same purpose as this study. It is expected that the findings from this study will suggest areas for additional research and will be of interest to researchers and professional educators, especially those involved in the development and use of BEL systems. Design/methodology/approach This case study compares two groups of undergraduate students who completed a course designed to develop skills in using productivity software at a university in Thailand. After establishing the groups, one group learned in a BEL environment and the other in a TDL environment. In particular, the online training and assessment software application SIMnet was used in the BEL environment. Comparisons between results using BEL and TDL are made for different assessment results. Additional analyses of results for the BEL group examined gender differences and correlations between the number of attempts made on assessments and the levels of achievement. Findings The findings indicated that for all of the assessments, the BEL group had a better performance than the TDL group. For the BEL group, additional analyses found no significant differences between the achievements of males and females and significant correlations between the numbers of attempts made on assessments and the results. Limitations of this case study are discussed, and the findings are expected to be of interest to researchers and professional educators, especially those involved in the development and use of BEL. Research limitations/implications Learning content was restricted to the Excel spreadsheet in which different areas of content need to be studied. The software SIMnet was used by the BEL group, additional BEL software needs to be studied. The participants’ characteristics – age, gender, culture and computer competency – were narrow scoped in which the study could include more varieties and also a larger sample size. Further studies should be designed to include more comparisons such a comparison between TDL group males and females. Originality/value The findings from this limited case study suggest that a BEL learning environment is superior to a TDL environment. Also, a BEL environment is equally beneficial for male and female students. In particular, the BEL feature, which allows students to retake assessments, leads to improved learning performance equally for both males and females. In general, these findings support those reported in previous studies.

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