scholarly journals The performance of Shariah-compliant companies during and after the recession period – evidence from companies listed on the FTSE All World Index

2020 ◽  
Vol 11 (3) ◽  
pp. 573-587 ◽  
Author(s):  
Muhammad Tahir ◽  
Salma Ibrahim
Keyword(s):  
Least Square ◽  
Market Returns ◽  
Content Type ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Price Earnings Ratio ◽  
Negative Effect ◽  
Ordinary Least Square Regression ◽  
Positive Effect ◽  
Recession Period

Purpose The purpose of this study is to investigate the relative performance of Shariah-compliant companies (SCCs) compared to conventional companies. This study focuses on two periods, the first being the recession period of 2007-2010 and the second, the non-recession period of 2011-2014. Design/methodology/approach A quantitative approach is adopted using an ordinary least square regression model. The chosen variables are those used by previous researchers in conventional studies of corporate performance. Data are selected from individual companies listed on the FTSE All World Index. This study examines two periods of time: the recession of 2007-2010 and the post-recession years of 2011-2014 to analyse performance measured by accounting returns (return on equity, return on asset and earnings per share) and market returns (stock return and price/earnings ratio). Findings The study found that SCCs outperformed non-Shariah compliant companies, in terms of both accounting and market returns during both periods. It was also found that size has a negative effect on performance during both periods. The degree of risk, leverage and growth has no significance in either period, but cash flow from operations has a positive effect on performance in both. Research limitations/implications The study could beneficially be extended by the inclusion of corporate governance variables to assess how these affect performance in SCCs. Originality/value In contrast to previous research carried out on indices, this study uses data from individual companies listed on the FTSE All World Index. It provides insight into the way Shariah ethics can influence performance and suggests that some of the features could be useful if adopted by conventional companies.

Tacit knowledge transfer in coopetition

2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Least Square ◽  
Service Firms ◽  
Content Type ◽  
Ordinary Least Square ◽  
Tacit Knowledge Transfer ◽  
Potential Benefits ◽  
Ordinary Least Square Regression ◽  
Empirical Context

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.

Users’ perception of cybersecurity, trust and cloud computing providers’ performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Xu ◽  
Sakthi Mahenthiran
Keyword(s):  
Cloud Computing ◽  
Structural Equation ◽  
Design Methodology ◽  
Positive Relationship ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
Computing Literature

Purpose This study aims to develop a scale to measure the cloud provider’s performance and it investigates the factors that impact that performance from the users’ perspective. Design/methodology/approach This paper proposes a research framework, develops hypotheses and conducts a survey to test the framework. Findings The results from both ordinary least square regression and structural equation modeling analyzes indicate that information technology complexity negatively and significantly affects users’ perception of the cloud computing providers’ performance. Additionally, the trust in the supervisor significantly enhances the otherwise insignificant positive relationship between providers’ cybersecurity capability and users’ perception of their providers’ performance. Originality/value The research makes important contributions to the cloud computing literature, as it measures users’ perception of the cloud computing provider’s performance and links it with cybersecurity, technical complexity and incorporates both the trust in the client firm’s supervisor and the strength of cybersecurity offered by cloud computing provider.

scholarly journals PENGARUH PENDIDIKAN, JUMLAH JAM KERJA, UMUR TERHADAP UPAH TENAGA KERJA DISABILITAS DI SUMATERA BARAT

2019 ◽  
Vol 1 (3) ◽  
pp. 863
Author(s):  
Salwa Nabila Putri ◽  
Ariusni Ariusni
Keyword(s):  
Work Experience ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Least Square ◽  
Research Use ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
Disabled Workers ◽  
Positive Effect ◽  
Research Show

This study aims to find out determine of wages for disabled workers in Sumatera Barat. This research use cross section with 481 samples. The variables used are wage for disabled workers,education, number of hours worked, age, work experience, type of work. This research’s methods used Ordinary Least Square (OLS) Multiple linear regression analysis. This research show education, number of work, work experience  had significanlly positive effect on wage for disabled workers in Sumatera Barat. Type of work has significanlly negative effect on wage for disabled worker, age had nonsignificanly positive effect on wage for disabled.

scholarly journals PENGARUH PRODUK DOMESTIK BRUTO DAN SBI TERHADAP PENERIMAAN PAJAK DI INDONESIA

2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Rahmanta Ginting
Keyword(s):  
Time Series ◽  
Research Result ◽  
Least Square ◽  
Domestic Product ◽  
Tax Revenue ◽  
Ordinary Least Square ◽  
Independent Variables ◽  
Dependent Variables ◽  
Negative Effect ◽  
Positive Effect

The research to analyse effect net domestic product and SBI on tax revenue in Indonesia with independent variables  net domestic product and SBI also dependent variables tax revenue. Data is a time series between 1981 - 2010 with ordinary least square (OLS) and the model of formula used is multiply linier regression.  The research result shows that net domestic product gives a positive effect and significant on tax revenue in Indonesia on 99% level. While SBI has a negative effect and significant on tax revenue in Indonesia on 90% level.

Insurance regulations, risk and performance in Ghana

2019 ◽  
Vol 28 (1) ◽  
pp. 74-96
Author(s):  
Baah Aye Kusi ◽  
Abdul Latif Alhassan ◽  
Daniel Ofori-Sasu ◽  
Rockson Sai
Keyword(s):  
Random Effect ◽  
Least Square ◽  
Insurance Market ◽  
Content Type ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
And Performance ◽  
First Time

Purpose This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study. Design/methodology/approach This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis. Findings The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability. Practical implications The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana. Originality/value This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.

scholarly journals Pengaruh Makro Ekonomi Terhadap Profitabiltas Bank Umum Syariah di Indonesia Tahun 2014-2018

2019 ◽  
Vol 2 (1) ◽  
pp. 72
Author(s):  
Wahyudin Priyono ◽  
Imanda Firmantyas Putri Pertiwi
Keyword(s):  
Exchange Rate ◽  
Financial Services ◽  
Secondary Data ◽  
Least Square ◽  
Islamic Banks ◽  
Significant Positive Effect ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
Positive Effect ◽  
Variable Exchange

This study aims to analyze and identify the effects of inflation and rupiah exchange rates on profitability in Islamic banks in Indonesia with mudharabah deposit as the mediator. Using secondary data that are published by the central bank of Indonesia and financial services authority, the method used in this research is Ordinary Least Square. The result indicates the inflation variable, exchange rate, and mudharabah deposits simultaneously give a significant influence toward profitability (ROA) of the Sharia Commercial Bank in Indonesia. While partially, inflation and exchange rate have no significant effect on profitability (ROA). While mudharabah deposits have a significant positive effect on profitability (ROA). Inflation has a significant negative effect on mudharabah deposits and the exchange rate has a significant positive effect on mudharabah deposits. The path analysis result shows that the mudharabah deposit variable is unable to mediate the effect of inflation and te exchange rate to profitability (ROA)

scholarly journals The effect of political connections on firm performance: evidence from Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aref M. Eissa ◽  
Yasser Eliwa
Keyword(s):  
Pearson Correlation ◽  
Market Value ◽  
Least Square ◽  
Political Connections ◽  
Government Ownership ◽  
Potential Conflict ◽  
Content Type ◽  
Listed Firms ◽  
Ordinary Least Square ◽  
Positive Effect

PurposeThis paper examines the effect of political connections (PCs) on firms' profitability and market value in the Egyptian market after the uprising of 2013.Design/methodology/approachAn empirical study is conducted based on 284 firm-year observations for non-financial listed firms on the EGX100 during the period of 2014–2017. To test the study’s hypothesis, two independent sample t-test, Pearson correlation analysis and ordinary least square (OLS) regressions are conducted.FindingsThe results suggest that PCs are common across all industries in Egypt, the PCs through top officers do not improve firm's profitability; however, it has a positive effect on firms' market value. Further, PCs through business owners improve neither profitability nor the market value. Finally, the results suggest that PCs through government ownership have a positive effect on both firms' profitability and market value.Practical implicationsThe study’s finding encourages policymakers and regulators in emerging markets, e.g. Egypt, to develop stricter laws, policies and regulatory initiatives to restrain the potential conflict of interest in the politically connected firms.Originality/valueTo the best of the authors' knowledge, this study is one of the first to examine the relationship between PCs and both firms’ profitability and market value in Egypt.

Terms of trade and economic growth in developing country

2020 ◽  
Vol 13 (1) ◽  
pp. 1-19
Author(s):  
Syed Tehseen Jawaid ◽  
Abdul Waheed ◽  
Aamir Hussain Siddiqui
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Terms Of Trade ◽  
Least Square ◽  
Cointegration Test ◽  
Series Data ◽  
Significant Positive Effect ◽  
Content Type ◽  
Ordinary Least Square ◽  
Positive Effect

Purpose The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth. Design/methodology/approach Augmented Dickey Duller and Philips Perron unit root tests and Johensan cointegration test have been applied by using annual time series data from 1974 to 2017. Dynamic ordinary least square and fully modified ordinary least square have also been used to perform sensitivity analysis. Findings The cointegration test confirm the positive long-run relationship between overall terms of trade (ToT) and economic growth. Country-wise results show that ToT with Australia, Bangladesh, Canada, Hong Kong, Japan, Kuwait, Malaysia, Singapore, Sri Lanka, UK and the USA have significant positive effect on economic growth. Conversely, ToT with China and UAE has significant negative effect on economic growth. In contrast, ToT with India, Norway, Saudi Arabia and Switzerland has insignificant effect on the economic growth of Pakistan. Product-wise results indicate that the product group namely, Chemical, Crude Material inedible except fuels, Manufactured and Minerals fuels and Lubricant found to be a significant positive effect on economic growth. However, Beverages and Tobacco, and Machinery and Transport product groups found to be significant negative impact on economic, while Food and Live animals found to be insignificant. Practical implications In general, it is suggested that the beneficial terms of trade are favorable for economic growth. The study suggested export promotion policy for which relationship between ToT and economic growth found positive and import substitution policy is suggested the products found a negative relationship between the said variables. Originality/value This paper is a pioneer attempt to investigate the effect of overall ToT, bilateral terms of trade and the main commodity group’s ToT on economic growth in Pakistan.

scholarly journals HOW DOES FINANCIAL DEVELOPMENT INTERACT WITH ECONOMIC GROWTH IN FIVE ASEAN COUNTRIES?

2019 ◽  
Vol 64 (03) ◽  
pp. 441-460 ◽  
Author(s):  
PHAN THANH CHUNG ◽  
SIZHONG SUN ◽  
DIEM THI HONG VO
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Least Square ◽  
Financial Openness ◽  
Least Square Estimation ◽  
Ordinary Least Square ◽  
Financial Deregulation ◽  
Negative Effect ◽  
Asean Countries ◽  
Positive Effect

This study examines the causal relationship between financial development, liberalization and economic growth through technological innovation channel in five South East Asia countries during the period 1980–2012, using a fully modified ordinary least square estimation technique. We find that technological deepening is driven by deepening in the financial system and financial liberalization rather than changes in a country’s market capitalization. We also find a negative effect from the financial openness, and a positive effect from financial deregulation.

Political connections and audit report lag: Indonesian evidence

2018 ◽  
Vol 26 (1) ◽  
pp. 59-80 ◽  
Author(s):  
Ahsan Habib ◽  
Abdul Haris Muhammadi
Keyword(s):  
Large Body ◽  
Least Square ◽  
Political Connections ◽  
Audit Report ◽  
Financial Reports ◽  
Content Type ◽  
Related Party Transactions ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
The Impact

Purpose This paper aims to investigate the association between political connections and the audit report lag and whether related party transactions moderate the association between the two. Design/methodology/approach An ordinary least square regression is estimated whereby audit report lag is regressed on political connections, related party transactions and the interaction between the two. Data on the number and amounts of RPTs are hand-collected from audited financial reports. A firm-year observation is politically connected if at least one large shareholder (controlling at least 10 per cent of the votes directly or indirectly) or board member or commissioner is a current or former Member of Parliament, a minister or head of local government or closely related to a politician or party. Findings Findings show that the audit report lag is relatively short for politically connected firms but increases when such firms conduct both operating and loan-type related party transactions. This suggests that auditors understand the incentives for, and the implications of, related party transactions and hence exert additional audit efforts in scrutinizing financial statements: activities that will increase the audit report lag. Originality/value Although a large body of empirical research exists on the determinants of audit report lag, none has examined the impact of political connections. This paper further contributes to the auditing literature by documenting auditors’ evaluation of related party transactions in a developing country.

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