Turn-of-the-month effect in three major emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geeta Singh ◽  
Kaushik Bhattacharjee ◽  
Satish Kumar
Keyword(s):  
Stock Markets ◽  
Emerging Market ◽  
Emerging Countries ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Market Participants ◽  
Emerging Stock Markets ◽  
Ordinary Least Square Regression ◽  
The Times

PurposeThe purpose if this paper is to examine the turn-of-the-month effect in the equity market of three major emerging countries – Brazil, India and China – from January 2000 to December 2017.Design/methodology/approachOrdinary least square regression analysis is used to examine the presence of the turn-of-the-month effect and to test the efficiency of the emerging stock markets. The characteristics of the returns during the turn-of-the-month days are compared with that of the non-turn-of-the-month trading days.FindingsThe average returns during turn-of-the-month days for all the considered emerging market indices are significantly higher than the non-turn-of-the-month days for the full sample. For the subsample analysis, the average returns for Brazil and India for pre-GFC period are higher on the turn-of-the-month days than on the non-turn-of-the-month days. However, the effect disappears in China during the GFC period. During the crisis period, the results show that the turn-of-the-month effect disappears in Brazil and India, whereas for China, the effect is significant. For the post-GFC period, the-turn-of-the-month effect reappears for all the countries.Practical implicationsThe results have important implications for both traders and investors. The authors’ results indicate that the market participants can time the stock markets of these countries by taking long positions especially during the times when the turn-of-the-month effect is highly significant.Originality/valueTo the best of the authors’ knowledge, this paper is the first to study the turn-of-the-month effect, in the key emerging countries such as Brazil, China and India. Second, the authors divide the sample into three subperiods based on the 2008 GFC such as pre-GFC, GFC and post-GFC to understand the dynamic behavior of turn-of-the-month effect over time. Most importantly, the authors control for the day-of-the-week effect while examining the turn-of-the-month effect.

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.

What motivates Indian consumers’ to buy organic food in an emerging market?

2020 ◽  
Vol 12 (2) ◽  
pp. 97-113 ◽  
Author(s):  
Heerah Jose ◽  
Vijay Kuriakose ◽  
Moli P. Koshy
Keyword(s):  
Emerging Market ◽  
Organic Food ◽  
Food Products ◽  
Least Square ◽  
Third Party ◽  
Content Type ◽  
Indian Consumers ◽  
Perceived Price ◽  
Buffering Agent ◽  
Ordinary Least Square Regression

Purpose Indian consumers are showing an increased demand for organic food products; however, little is known about their intention to buy organic foods. The purpose of this paper is to understand how fear towards conventional food products motivates an individual to buy organic food products and whether trust and perceived price as contextual factors are able to enhance the buying intention. Design/methodology/approach A total of 275 valid responses were collected using a self-administrated structured questionnaire, representative of Indian consumers. An ordinary least square regression analysis was used to analyse the effect of trust and perceived price in influencing the relationship between consumers’ fear and intention to buy organic food products. Findings The moderating role of trust and perceived price in enhancing the direct relation between fear and intention was established. In addition, cluster analysis results revealed that married women with children are showing a greater interest in buying organic food products. Practical implications The findings of the study are of high importance to all stakeholders in organic food products, as selecting marketing practices which target consumers’ concern is an indispensable part of finding a niche for organic food products. Originality/value The findings suggest that even though consumers are fearful towards conventional food products, they displayed negative intention to buy organic food products when their trust towards the third party is low, thus confirming the importance of trust as a buffering agent.

Price premium of private placement: evidence from India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Supriya Katti ◽  
Naval Verma ◽  
B.V. Phani ◽  
Chinmoy Ghosh
Keyword(s):  
Emerging Market ◽  
Least Square ◽  
Price Premium ◽  
Group Affiliation ◽  
Data Set ◽  
Content Type ◽  
Equity Issues ◽  
Private Placement ◽  
Ordinary Least Square Regression ◽  
Binary Probit

PurposeThis study identifies the factors responsible for obtaining price premium on privately placed equity in a developing market.Design/methodology/approachWe examine a unique data set of a special case of private placement of equity, Qualified Institutional Placement (QIP) in India purchased at a premium. The study analyzed 188 equity issues offered between September 2006 and December 2014. On average, we find that QIP issues received a price premium of 4.38%. The study employed binary probit and ordinary least square regression models to analyze the probability and magnitude of the premium.FindingsThe study attributes the price premium of QIP to certification effect through group affiliation, signaling through promoters' ownership and monitoring effect through existing institutional investors. These factors influence the probability of premium for QIP issues. However, group affiliation and institutional ownership do not significantly influence the magnitude of the premium.Originality/valueThe private placement of equity is usually offered at a discount. Our findings contribute to the existing literature by evaluating the premium obtained on private placement as a unique scenario in emerging market supported through certification hypothesis, monitoring hypothesis and signaling.

scholarly journals NON-AUDIT SERVICES AND THE CORPORATE GOVERNANCE OF AUDIT CLIENTS

2019 ◽  
Vol 18 (1) ◽  
pp. 167
Author(s):  
Khairul Anuar Kamarudin ◽  
Wan Adibah Wan Ismail ◽  
Jessieca Cherryl Yatan
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Emerging Market ◽  
Least Square ◽  
Board Independence ◽  
Ordinary Least Square ◽  
Big 4 ◽  
Ordinary Least Square Regression ◽  
New Policies ◽  
Non Audit Services

This paper investigates the relationship between corporate governance qualities and the purchase of non-audit services among Malaysian Listed Companies. The sample consists of 709 companies listed on Bursa Malaysia during the year 2014. The study posits that CEO duality, board independence, audit comitte independence, big 4 auditors, the audit committee size, and the frequency of audit committee meetings are associated with the amount of non-audit services. This is basically based on the argument that weaker governance allows the company to jeopardise the independence of external auditor, hence higher level of non-audit services. Company size, profitability, leverage, growth and industry are also included in the study as the control variables. Using the ordinary least square regression model and relevant diagnostic tests, findings shows that only board independence, audit committee independence, audit committee size and big 4 auditors are associated with the level of non-audit services. The results of this study contribute to the present literature on the determinants of non-audit services, especially in emerging market. The result would also be informative to regulators worldwide when considering to apply new policies related to non-audit services.

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.

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.

Remittances and households’ savings behaviour in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Salahuddin ◽  
Muhammad Mehedi Masud ◽  
Kwek Kian Teng
Keyword(s):  
Regression Analysis ◽  
National Level ◽  
Least Square ◽  
Pension Scheme ◽  
Analysis Method ◽  
Content Type ◽  
Ordinary Least Square ◽  
Least Square Regression ◽  
Ordinary Least Square Regression ◽  
The Impact

Purpose The purpose of this study is to examine the impact of remittance inflow on households’ savings behaviour in Bangladesh. Remittances are considered as the countercyclical flow of income for its recipient economies. It surges the liquidity of the households receiving remittances, allows them to endure local economic shocks and facilitates them to practice productive activities. Remittances often form a big pool of resources for investment which complement the national savings and support the country’s growth through higher rates of capital accumulation. Therefore, if a significant portion of the remittance is used for savings it can lead to prominent economic growth in the long term. Design/methodology/approach Existing literature indicates remittance-receiving households have a greater propensity to use remittance income to meet basic consumption. However, based on the survey conducted by the Bangladesh Bureau of Statistics on remittances and household savings (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s saving (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s savings behaviour in Bangladesh. Findings The findings of this study represent remittances encourage households to pursue different kinds of savings in Bangladesh. Savings are made in the form of opening savings accounts, deposit pension scheme/fixed deposits/Bonds, insurance policies, also savings through non-governmental organizations, cooperative societies and savings at home. Other than remittances the demographic characteristics of the household head also influence the savings choices. Originality/value To enable the implementation of appropriate policies to boost savings, analysis from both perspectives; the household and the national level, requires strong vigilance and surveillance.

The effect of audit committee characteristics on forward-looking disclosure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamad Rifai ◽  
Sylvia Veronica Siregar
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Financial Firms ◽  
Financial Expertise ◽  
Ordinary Least Square Regression ◽  
Accounting Expertise ◽  
Forward Looking

Purpose This study aims to examine the effect of the audit committee characteristics on forward-looking disclosure. Design/methodology/approach The characteristics of audit committee that examined are audit committee expertise, audit committee meeting frequency and audit committee size. To measure the extent of forward-looking disclosure, this study did content analysis using a checklist of 22 forward-looking items. The samples of this research are 285 non-financial firms listed on the Indonesia Stock Exchange in the year 2015. Ordinary least square regression is used for hypotheses testing. Findings The results of this study show that the audit committee accounting expertise, audit committee financial expertise, the frequency of audit committee meetings and the size of the audit committee have a significant positive effect on the forward-looking disclosure. Originality/value To the best of the authors’ knowledge, this is the first study examining the audit committee characteristics on forward-looking disclosure in the context of Indonesia, one of the emerging markets.

scholarly journals Do firm characteristics and ownership structure affect corporate philanthropic contributions in Jordan?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Husam Ananzeh ◽  
Hashem Alshurafat ◽  
Khaled Hussainey
Keyword(s):  
Ownership Structure ◽  
Fixed Effects ◽  
Design Methodology ◽  
Least Square ◽  
Firm Characteristics ◽  
Content Type ◽  
Ordinary Least Square ◽  
Service Sectors ◽  
Ordinary Least Square Regression ◽  
New Evidence

Purpose This paper aims to examine the drivers of corporate donations in Jordan. In particular, to examine whether firm-specific characteristics and ownership types affect corporate donations. Design/methodology/approach The analysis is based on a sample of 94 Jordanian listed companies, drawn from the manufacturing and service sectors, over the period 2010–2016. This paper uses ordinary least square regression with a year and industry fixed effects to test the research hypotheses. Findings This paper finds that corporate philanthropic contributions are positively associated with company size, age, profitability, media exposure and governmental ownership. This paper also finds that corporate philanthropic contributions are negatively associated with financial leverage and family ownership. Originality/value The paper provides new evidence on the determinants of corporate philanthropic contributions in a developing country.

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