scholarly journals Measuring the effectiveness and impact of COVID-19 health policies on firms and UNSDGs: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minhua Yang ◽  
Vikash Ramiah ◽  
Vijay Pereira ◽  
Yama Temouri ◽  
Abhishek Behl
Keyword(s):  
Firm Size ◽  
Energy Demand ◽  
Abnormal Returns ◽  
Geographical Location ◽  
Chinese Economy ◽  
Health Policies ◽  
Content Type ◽  
Financial Variables ◽  
Country Level ◽  
Prior Literature

PurposeThis paper documents and links firm- and country-level outcomes to the United Nations Sustainable Development Goals (UNSDGs) by portraying how the Chinese economy has fared during the COVID-19 crisis. It does so by shedding light on the factors that determine the effectiveness of health policies implemented in China.Design/methodology/approachUnlike the prior literature, in which lagging performance measures are used, the authors use leading indicators with event study methodology to develop effectiveness scores and identify the determinants of effectiveness, including financial variables, firm infection, geographical location of the spread, travel bans, lockdown periods, policies of home quarantine, health innovations and other innovative measures undertaken by the Chinese authorities.FindingsThe detailed disaggregated results show many dimensions where abnormal returns are indeed associated with various health policies and that the effectiveness, influenced by firm size, profitability, firm infection and location. The results remain robust when the authors control for various event windows and models and provide evidence of a strong UNSDG link, which the authors draw up a list.Research limitations/implicationsApart from the quantitative analysis approach, future studies can complement and add further insights by utilizing qualitative research approaches.Practical implicationsThe results offers robust evidence for policy-makers and firm managers on how a crisis of such proportions and subsequent health policies is affecting different firms and why.Social implicationsThe study shows how COVID-19 health policies open a new dimension in terms of energy demand reduction and lower emissions, factors linking to the UNSDGs.Originality/valueThe study is the first to show detailed disaggregated results across many dimensions where abnormal returns are indeed associated with various health policies and that the effectiveness, influenced by firm size, profitability, firm infection and location.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

Determinants of stock market reaction to cross-border acquisitions: evidence from emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samta Jain ◽  
Smita Kashiramka ◽  
P. K. Jain
Keyword(s):  
Emerging Economies ◽  
Value Creation ◽  
Global Economy ◽  
Emerging Market ◽  
Research Work ◽  
Abnormal Returns ◽  
Content Type ◽  
Cross Border ◽  
Country Level ◽  
Acquiring Firms

PurposeThe global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.Design/methodology/approachThe paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.FindingsCBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.Originality/valueThe research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.

Financial characteristics of takeover targets: a French empirical evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hicham Meghouar ◽  
Mohammed Ibrahimi
Keyword(s):  
Empirical Studies ◽  
Abnormal Returns ◽  
Control Group ◽  
Subprime Mortgage ◽  
Content Type ◽  
Financial Variables ◽  
Target Firms ◽  
Debt Capacity ◽  
Financial Characteristics ◽  
Available Information

PurposeThe purpose of this research is to highlight the financial characteristics of large French targets which were subject to takeovers during the period 2001–2007 and thereafter deduct the implicit motivations of acquirers.Design/methodology/approachUsing a global sample of 128 French listed companies (64 targets and 64 non-targets), the authors carried out Wilcoxon–Mann–Whitney testing and logistic regression in order to test nine hypotheses likely to discriminate between the two categories of companies (targets and non-targets).FindingsAccording to the results, target firms are more unbalanced in terms of growth resources and less rich in liquidity than their peers. They have unused debt capacity, offer greater opportunities for growth than firms in the control group and present low levels of value creation.Research limitations/implicationsThe main limitation of this study is regarding the sample size, limited by the exclusive use of large firms (deals of over $100m). The scope of this research could be broadened in future by including medium-sized companies.Practical implicationsThe authors believe that their results have two major implications. First, they enable market investors to achieve abnormal returns by investing in predicted targets through a portfolio of high takeover probability firms. Second, CEO of companies that are potentially targeted can assess their takeover likelihood in order to act and to manage such a situation for the benefit of their shareholders.Originality/valueThis research concerns the last wave of takeover prior to the subprime-mortgage financial crisis (2001–2007), a period that has not been sufficiently covered in empirical studies. This research contributes to the existing literature in two main respects. First, the results of this study improve our understanding of motivations for takeovers, particularly in the French context. Second, the introduction of new accounting and financial variables, not previously tested in the literature, enriches the available information concerning the profile of takeover targets.

Gender matters: market perception of future performance

2020 ◽  
Vol 46 (10) ◽  
pp. 1247-1262
Author(s):  
Kylie A. Braegelmann ◽  
Nacasius U. Ujah
Keyword(s):  
Financial Markets ◽  
Gender Bias ◽  
Firm Size ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Capital Allocation ◽  
Event Window ◽  
Content Type ◽  
Window Approach ◽  
Over Time

PurposeThis paper aims to revisit the extant evidence on gender bias in the market. Specifically, it revisits reaction to CEO announcements. Also, it explores whether the development of the bias over time and by firm size aligns with existing theory.Design/methodology/approachThe paper examines cumulative abnormal returns around CEO announcements from 1992 through 2016 using a modified event study methodology. This evidence shown examines market reactions over time and by firm size.FindingsFinancial markets react more favorably to male CEO announcements, with a cumulative abnormal return of 49 basis points above the reaction to their female counterparts. Moreover, the paper finds that market reaction varies over time, which may be because of the increasing proportion of female CEOs, and by firm size, which may be due to the differences in new information available to investors.Research limitations/implicationsLimitations include sample size due to the paucity of female CEO announcements. This paper does not examine the effect of industry, detailed CEO characteristics or announcement content on market reaction. In addition, using an extended event window may increase the likelihood of capturing confounding events, such as mergers or earnings announcements, which limits the interpretability of the results.Practical implicationsGender bias in financial markets creates another institutional barrier for the advancement of female professionals, as well as implies inefficient capital allocation in markets.Originality/valueThe literature in this field is still inconclusive. Furthermore, bias development over time and the effect of information on bias remain unexplored. This study aims to fill that gap; furthermore, it introduces an extended event-window approach.

Do changes in gross margin percentage provide complementary information to revenue and earnings surprises?

2015 ◽  
Vol 14 (3) ◽  
pp. 239-261 ◽  
Author(s):  
Camillo Lento ◽  
Naqi Sayed
Keyword(s):  
Abnormal Returns ◽  
Informational Content ◽  
Market Returns ◽  
Gross Margin ◽  
Earnings Announcement ◽  
Content Type ◽  
Announcement Date ◽  
Income Statement ◽  
Earnings Surprises ◽  
Prior Literature

Purpose – The purpose of this paper is to investigate the association between gross profit percentage, abnormal market returns, revenue surprises and earnings surprises. Gross margin is relied upon by various market participants, as its predictive power is incremental and distinct from revenue and earnings signals; however, gross margin has received little researcher attention. Design/methodology/approach – General regression specifications found in the prior literature are extended to assess the informational content of changes in gross margin percentage. In addition, various portfolios are created based around the nature of the signals (positive or negative), provided by each income statement metrics (revenue, gross margin and earnings). A sample of 5,582 quarterly observations of S & P 500 firms is compiled. The main regressions are exposed to three robustness tests that focus on industry sub-groupings, institutional ownership and fourth-quarter observations. Findings – The main findings reveal that gross margin percentage changes and earnings surprises are significantly related to abnormal market returns in the short window around the earnings announcement date and persist into a wider window measured as the quarter after the earnings announcement date. The relationship between gross margin percentage changes and abnormal returns is more pronounced when positive (negative) changes in gross margin percentage are accompanied by positive (negative) revenue and earnings surprises. Research limitations/implications – This study relies upon S & P 500 firms which are all relatively large firms. Therefore, the results may not be generalizable to smaller firms. In addition, the gross margin change is measured as the quarter-over-quarter percentage change because there is no analyst expectation for gross margin. Originality/value – This paper extends the prior literature by developing three testable hypotheses that investigate the linkages between abnormal market returns, gross margin and revenue and earnings surprises. This is the first known study to investigate the informational content of changes in gross margin percentage.

The determinants of accounting comparability around the world

2019 ◽  
Vol 28 (1) ◽  
pp. 69-88
Author(s):  
Jonathan Ross ◽  
Linna Shi ◽  
Hong Xie
Keyword(s):  
Financial Reporting ◽  
Ordinary Least Squares ◽  
International Accounting ◽  
Least Squares Regression ◽  
Firm Level ◽  
Content Type ◽  
Country Level ◽  
The Usa ◽  
Prior Literature ◽  
Accounting Comparability

Purpose The purpose of this paper is to investigate country-level and firm-level determinants of within-country accounting comparability for 16 European Union countries plus the USA in the post-International Financial Reporting Standards adoption period. Design/methodology/approach The authors use ordinary least squares regression to test the hypotheses with a correction for heteroscedasticity. Findings The authors find that firms in countries with rules-based accounting, higher quality public auditor work environments, stricter enforcement of accounting standards and more reliance on equity-market financing have higher within-country comparability with each other. At the firm-level, the authors find that firms which are larger, engage in less earnings management, and have lower return-on-asset volatility have higher within-country comparability with each other. Research limitations/implications The authors use one measure of accounting comparability. Alternative measures of accounting comparability could test the hypotheses more completely. Practical implications The findings of the paper may help the regulators make more efficient policies to establish an efficient financial market within their country. Originality/value The paper is the first, to the authors’ knowledge, to identify country-level and firm-level determinants of within-country accounting comparability. It contributes to the accounting literature by completing the theory of international accounting comparability from the within-country perspectives, as prior literature focuses on the cross-country perspective of international accounting comparability.

Age and size dependencies of firm failure processes: an analysis of bankrupted Estonian firms

2018 ◽  
Vol 60 (6) ◽  
pp. 1272-1285 ◽  
Author(s):  
Oliver Lukason
Keyword(s):  
Firm Size ◽  
Design Methodology ◽  
Multinomial Logistic Regression ◽  
Failure Process ◽  
Content Type ◽  
Financial Variables ◽  
Size Dependent ◽  
Age Dependent ◽  
Gradual Failure ◽  
Dependent Failure

Purpose This study aims to find out whether firm failure processes are age- and size-dependent. Design/methodology/approach The sample consists of 333 bankrupted Estonian firms. Failure processes are detected with consecutive factor and cluster analyses of six financial variables calculated for three pre-failure years. Multinomial logistic regression is applied to study the interconnections between failure processes (dependent variable) and firm size and age (independent variables). In addition, the contingency between detected failure processes and failure causes obtained from court judgements are studied. Findings Three failure processes are detected, of which the predominant one accounting for 55 per cent of cases is a gradual failure process, indicating a step-by-step decline in the values of financial variables. The two minority processes are mixed, meaning that some financial variables are poor for many years before the bankruptcy and others decrease only shortly before bankruptcy declaration. With an increase in firm size, the gradual failure process becomes more common, but in turn, the presence of the gradual failure process is not age-dependent. Failure causes detected by trustees are not associated with failure processes. Originality/value This paper is the first one to specifically outline the age and size dependencies of firm failure processes. In addition, the interconnection of failure causes and firm failure processes detected with financial variables are rarely studied topics.

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

scholarly journals Levels of research evidence in health policy assessment in Malawi

2019 ◽  
Vol 32 (2) ◽  
pp. 226-250
Author(s):  
Patrick Mapulanga ◽  
Jaya Raju ◽  
Thomas Matingwina
Keyword(s):  
Health Policy ◽  
Empirical Evidence ◽  
Systematic Reviews ◽  
Health Research ◽  
Research Evidence ◽  
Health Policies ◽  
Services Research ◽  
Policy Documents ◽  
Content Type ◽  
Policy Systems

Purpose The purpose of this study is to examine levels of health research evidence in health policies in Malawi. Design/methodology/approach The study selected a typology of health policies in Malawi from 2002 to 2017. The study adopted the SPIRIT conceptual framework and assessed the levels of research evidence in health policy, systems and services research using the revised SAGE policy assessment tool. Documentary analysis was used to assess levels of health research evidence in health policies in Malawi. Findings In 29 (96.7 per cent) of the health policies, policy formulators including healthcare directors and managers used generic search engines such as Google or Google Scholar to look for heath research evidence. In 28 (93.3 per cent) of the health policies, they searched for grey literature and other government documents. In only 6 (20 per cent) of the heath policy documents, they used academic literature in a form of journal articles and randomised controlled trials. No systematic reviews or policy briefs were consulted. Overall, in 23 (76.7 per cent) of the health policy documents, health research evidence played a minimal role and had very little influence on the policy documents or decision-making. Research limitations/implications The empirical evidence in the health policy documents are limited because of insufficient research citation, low retrievability of health research evidence in the policy documents and biased selectivity of what constitutes health research evidence. Practical implications The study indicates that unfiltered information (data from policy evaluations and registries) constitutes majority of the research evidence in health policies both in health policy, systems and services research. The study seeks to advocate for the use of filtered information (peer reviewed, clinical trials and data from systematic reviews) in formulating health policies. Originality/value There is dearth of literature on the levels of health research evidence in health policy-making both in health policy, systems and services research. This study seeks to bridge the gap with empirical evidence from a developing country perspective.

scholarly journals The experiences of work-life balance, stress, and coping lifestyles of female professionals: insights from a developing country

2020 ◽  
Vol 42 (4) ◽  
pp. 999-1015
Author(s):  
Babatunde Akanji ◽  
Chima Mordi ◽  
Hakeem Adeniyi Ajonbadi
Keyword(s):  
Health Sector ◽  
Geographical Location ◽  
Stress And Coping ◽  
Work Life ◽  
Work Life Balance ◽  
Medical Doctors ◽  
Life Balance ◽  
Content Type ◽  
Work Family ◽  
And Coping

PurposeGiven the limiting conditions of the gender roles confronting professional working women and drawing on spillover theory, the purpose of this paper is to explore the experiences of work-life balance with an emphasis on the causes of the imbalances, perceived stress, and coping techniques experienced by female medical doctors in an African context – Nigeria, a geographical location that is considered under-researched.Design/methodology/approachThe qualitative data is based on one-to-one in-depth interviews with 52 Nigerian female medical doctors.FindingsBased on the findings of the thematic analysis, it is clear that time squeeze, as a well-known factor in the medical profession, exacerbates negative work-home interference. However, other themes, such as patriarchal proclivities and task-pay disparity, that affect female doctors but are rarely considered in studies on work-life balance also emerged as sources of stress and work-family conflicts, leaving these doctors to devise individual coping methods as mitigating strategies.Research limitations/implicationsThe study relies on a limited qualitative sample size, which makes the generalisation of findings difficult. However, the study contributes to the limited literature on the implications of stress and work-family incompatibilities facing women in a society that is not particularly egalitarian, with an extremely pronounced culture of masculine hegemony that is contrary to western cultures. The article unveils the socio-cultural difficulties of the work-life demands facing women specific to the Nigerian society and experienced with a different level of intensity.Originality/valueThe majority of the research on work-life balance has been undertaken in western countries and has focused on various professional groups and organisations, including the health sector. Nevertheless, work-life balance is a novel concept within the Nigerian work environment, where female medical doctors, as a professional group, are rarely studied. The article also provides valuable insights into the macro-contextual features influencing the work-life balance of Nigerian professional women.

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