Restructuring Privatisation Programmes in the Gulf Cooperation Council: Lessons from the Kuwait Stock Exchange

2020 ◽  
pp. 1-36
Author(s):  
Sarah Fayez AlKandari
Keyword(s):  
Stock Exchange ◽  
Developed Countries ◽  
Gulf Cooperation Council ◽  
Fiscal Crisis ◽  
Economic Diversification ◽  
Private Sector Development ◽  
Recent Success ◽  
Reform Measure ◽  
Kuwait Stock Exchange ◽  
Privatisation Programme

Abstract Amid the eruption of a fiscal crisis from declining oil prices and the rise of economic diversification initiatives to foster private-sector development, members of the Gulf Cooperation Council (GCC) have increasingly recognised the importance of privatisation as a reform measure for underperforming state-owned entities. This article reviews the surrounding objectives of privatisation and presents an optimal privatisation programme structure for GCC policymakers that caters to the requirements of the modern day. Lessons learnt from privatisations of developed countries may not be directly applicable; thus, the recent success case in the region embodied by the Kuwait Stock Exchange privatisation is incorporated to settle upon a recommended privatisation programme structure relevant to the GCC. Though the fiscal crisis for the GCC is only beginning, rushing towards privatisation without careful planning of the programme is inexcusable.

Visioning “smart city” across the Gulf Cooperation Council (GCC) countries

foresight ◽  
2018 ◽  
Vol 20 (3) ◽  
pp. 237-251 ◽  
Author(s):  
Stuti Saxena ◽  
Tariq Ali Said Mansour Al-Tamimi
Keyword(s):  
United Arab Emirates ◽  
Smart City ◽  
Smart Cities ◽  
Developed Countries ◽  
Gulf Cooperation Council ◽  
Economic Diversification ◽  
Public And Private ◽  
Content Type ◽  
Gcc Countries ◽  
Public And Private Sector

Purpose The study aims to underscore the initiatives taken by the Gulf Cooperation Council (GCC) countries in spearheading their drive towards creating “smart” cities. Design/methodology/approach The study uses a qualitative approach by invoking documentary analysis supplemented by responses provided by 13 interviewees from public and private sector. Findings All the six GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates) are keen on building upon their infrastructure to push their “smart city” agenda which would go a long way in furthering the economic diversification objective of their region besides improving the quality of public services. Originality/value Hitherto, research has been focused on appreciating the “smart city” initiatives of developed countries; this study seeks to build upon the literature on “smart cities” by contextualizing the research setting in the developing countries. Second, the study shows that with the ongoing oil prices crisis in the GCC, the “smart city” initiatives of the countries are conceived as possible avenues of economic diversification and competitiveness.

The Influence of Growth, Asset Tangibility, Cost of Debt, Profitability and Business Risk On Debt Capital

2019 ◽  
Vol 4 (4) ◽  
pp. 120-127
Author(s):  
Erika Jimena Arilyn ◽  
Beny Beny
Keyword(s):  
Firm Growth ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Jel Classification ◽  
Cost Of Debt ◽  
Market Condition ◽  
Business Risk ◽  
Debt Capital

Objective –The aims to identify the significant factors that influence a company’s decision to use debt capital. Methodology/Technique – This study uses 5 independent variables namely; firm growth (growth rate in total gross assets), asset tangibility (ratio of net fixed assets to total assets), cost of debt (interest before tax / long term debt), profitability (Earnings Before Interest and Taxes (EBIT) / Total Asset), and business risk (standard deviation of EBIT to total assets). The dependent variable in this study, debt capital, is measured by the ratio of long-term debt to total assets. A purposive sampling method is used to select 11 out of 18 textile and garment companies listed on the Indonesian Stock Exchange between 2014 and 2018 that report their annual financial positions. A quantitative method, panel data analysis technique and SPSS tools were also used in this study. Findings – The results show that debt capital is influenced by profitability, while the remaining factors do not influence debt capital. Novelty – This study adds to the existing literature on internal factors, market condition as an external factors, and debt capital in developed countries. The benefit of this study is to explore the potential capabilities of the industry in using its profit to minimize the use of debt as a source of capital to decrease business risk. Type of Paper: Empirical Keywords: Profitability; Growth; Cost of Debt; Business Risk; Tangibility; Capital Structure. Reference to this paper should be made as follows: Ariyln, E., J; Beny; 2019. The Influence of Growth, Asset Tangibility, Cost Of Debt, Profitability and Business Risk On Debt Capital, Acc. Fin. Review 4 (4): 120 – 127 https://doi.org/10.35609/afr.2019.4.4(4) JEL Classification: G23, G32.

Stock Market Reaction on Green-Bond Issue: Evidence from Indian Green-Bond Issuers

2021 ◽  
pp. 097226292110225
Author(s):  
Rakesh Kumar Verma ◽  
Rohit Bansal
Keyword(s):  
Stock Returns ◽  
Financial Institutions ◽  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Developed Countries ◽  
Low Carbon ◽  
Bond Issue ◽  
The Government ◽  
The Impact

Purpose: A green bond is a financial instrument issued by governments, financial institutions and corporations to fund green projects, such as those involving renewable energy, green buildings, low carbon transport, etc. This study analyses the effect of green-bond issue announcement on the issuer’s stock price movement. It shows the reaction of the stock price after the issue of green bonds. Methodology: This study is based on secondary data. Green-bond issue dates have been collected from newspaper articles from different online sources, such as Business Standard, The Economic Times, Moneycontrol, etc. The closing prices of stocks have been taken from the NSE (National Stock Exchange of India Limited) website. An event window of 21 days has been fixed for the study, including the 10 days before and after the issue date. Data analysis is carried out through the event study method using the R software. Calculation of abnormal returns is done using three models: mean-adjusted returns model, market-adjusted returns model and risk-adjusted returns model. Findings: The results show that the issue of green bonds has a significant positive effect on the stock price. Returns increase after the green-bond issue announcement. Although the announcement day shows a negative return for all the samples taken for the study, the 10-day cumulative abnormal return (CAR) is positive. Thus, green-bond issues lead to positive sentiments among investors. Research implications: This research article will help the government issue more green bonds so that the proceeds can be utilized for green projects. The government should motivate corporations and financial institutions to issue more green bonds to help the economy grow. In India, very few organizations have issued a green bond. It will be beneficial if these players issue green bonds, as it will increase the firms’ value and boost returns to the investors. Originality/value: The effect of green-bond issue on stock returns has been analysed in some studies in developed countries. This is the first study to examine the impact of green-bond issue on stock returns in the Indian context, to the best of our knowledge.

scholarly journals Capital Structure and Corporate Governance Mechanisms in Kuwait Stock Exchange (KSE)

2020 ◽  
Vol 12 (6) ◽  
pp. 38
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Kuwait Stock Exchange ◽  
Corporate Capital Structure ◽  
The Impact

The study investigated the impact of corporate governance mechanisms on the corporate capital structure of the Kuwait Stock Exchange (KSE). Specifically, this study linked five corporate governance mechanisms—large shareholder ownership concentration, government ownership concentration, board size, board independence, and family directors—with capital structure for 81 non-financial listed firms between 2017 and 2018. The data indicated that only government ownership concentration and family directors affect capital structure.

scholarly journals Development of mandatory & voluntary instruments of sustainability reporting (SR) according to carrots & sticks 2006 - 2016

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Ririn Breliastiti
Keyword(s):  
Stock Exchange ◽  
Sustainability Reporting ◽  
Developed Countries ◽  
Asia Pacific ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Environmental Reporting ◽  
Government Regulations ◽  
The World ◽  
The Government

Sustainability Report (SR) has become one of the main reports of the world's leading companies. In 2005, it was found that more than 250 top companies listed on the Fortune 500 had prepared SR separately from the Annual Report. The development of the number of SRs in each country varies. In the developed countries, awareness to compile and issue SR is supported by government regulations so that SR becomes mandatory. In developing countries, SR is still voluntary because there is still no regulation that requires companies to compile and issue SR. The Carrots & Sticks report, compiled and published by KPMG, United Nations Environment Program, Unit for Corporate Governance in Africa & the Global Reporting Initiative (GRI), provided details on the development of mandatory and voluntary instruments in implementing Sustainability Reporting (SR) in various Countries throughout the world from 2006 to 2016. Therefore, this research aims to find out the development of the mandatory and voluntary instruments (government policies) related to SR in the world. This type of research is a literature review. The research instrument used consists of a tabulation containing the development of the mandatory and voluntary instruments (government policy) related to SR in the world, then the researcher conducted an analysis of these findings. The results show that there is an increasing enthusiasm for the application of SR throughout the world. There is an increase in commitment and efforts to achieve transparency and accountability. In countries that have an interest in SR, there has been a significant development, such as 19 countries in 2006, 32 countries in 2010, 45 countries and regions in 2013, and 71 countries and regions in 2016. Indonesia is one of the countries in the Asia Pacific region that has given attention to SR and has its regulations. SR regulations have grown from 180 in 2013 to 400 in 2016, with government regulations dominating 80% of all regulations. Mandatory instruments dominate more than voluntary instruments. Application of SR 30% is for large companies that have been listed on the stock exchange. SR reporting by public companies has covered all sectors on the stock exchange. This development was greatly influenced by the role of the government which encouraged companies to disclose information about sustainability in their annual reports. "Social" reporting instruments show a faster development than "environmental" reporting instruments. 

scholarly journals Corporate governance and corporate performance: evidence from Kuwait

2009 ◽  
Vol 7 (1) ◽  
pp. 334-349 ◽  
Author(s):  
Bader Al-Shammari ◽  
Waleed Al-Sultan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Size ◽  
Corporate Governance Structure ◽  
Accounting Performance ◽  
Corporate Scandals ◽  
Kuwait Stock Exchange ◽  
And Performance ◽  
The Relationship

An increasing number of recent corporate scandals and failures worldwide give rise to interest in the corporate governance structure in the performance of companies. This study investigates the relationship between corporate governance characteristics and performance of 66 non-financial companies listed on the Kuwait Stock Exchange (KSE) during the years 2004-2007. The findings of this study show that corporate governance characteristics such as board size, role duality, and less concentrated share ownership were positively associated with market performance, whereas only board size and role duality were positively related to accounting performance. The result is robust with respect to controls for company size, leverage, and industry.

A Comparison of the Information Needs and Information Seeking Behavior of Entrepreneurs in Small to Medium Sized Enterprises (SMEs) in Developing and Developed Countries

2014 ◽  
pp. 126-143
Author(s):  
Linda L. Lillard
Keyword(s):  
Developing Countries ◽  
Information Seeking ◽  
Information Needs ◽  
Adult Population ◽  
Developed Countries ◽  
Information Seeking Behavior ◽  
Private Sector Development ◽  
Entrepreneurial Spirit ◽  
Seeking Behavior

“Entrepreneurial spirit has been described as the most important economic development stimulus in recent decades” (Chalhoub, 2011, p. 67). In the early 1990s it was estimated that small to medium sized enterprises SMEs employed 22% of the adult population in developing countries and the role of SMEs is viewed as increasingly important in developing countries because of their capacity to create jobs (Okello-Obura, Minishi-Majanja, Cleote, & Ikoja-Odongo, 2007, p. 369). According to Lingelback, de la Viña and Asel (2005), even though entrepreneurship has been linked to wealth and poverty in developing countries and has played an important role in growth and poverty alleviation, it is the least studied significant economic and social phenomenon in the world today. Examining how the information needs and information seeking behavior of entrepreneurs from developing countries may differ from entrepreneurs in developed countries is important as it has been suggested that “entrepreneurship in developing countries is distinctive from that practice in developed countries and that understanding these distinctions is critical to private sector development in developing countries” (Lingelback, de la Vina, & Asel, 2005, p. 2). A review of the studies produced thus serves as a beginning for designing information packages and information services that can benefit a global population. Consequently, this chapter targets the information needs and information seeking behavior of entrepreneurs revealed in studies associated with SMEs in both developed and developing countries and offers conclusions and recommendations for meeting the information needs of this population.

A Comparison of the Information Needs and Information Seeking Behavior of Entrepreneurs in Small to Medium Sized Enterprises (SMEs) in Developing and Developed Countries

2016 ◽  
pp. 983-1000
Author(s):  
Linda L. Lillard
Keyword(s):  
Developing Countries ◽  
Information Seeking ◽  
Information Needs ◽  
Adult Population ◽  
Developed Countries ◽  
Information Seeking Behavior ◽  
Private Sector Development ◽  
Entrepreneurial Spirit ◽  
Seeking Behavior

“Entrepreneurial spirit has been described as the most important economic development stimulus in recent decades” (Chalhoub, 2011, p. 67). In the early 1990s it was estimated that small to medium sized enterprises SMEs employed 22% of the adult population in developing countries and the role of SMEs is viewed as increasingly important in developing countries because of their capacity to create jobs (Okello-Obura, Minishi-Majanja, Cleote, & Ikoja-Odongo, 2007, p. 369). According to Lingelback, de la Viña and Asel (2005), even though entrepreneurship has been linked to wealth and poverty in developing countries and has played an important role in growth and poverty alleviation, it is the least studied significant economic and social phenomenon in the world today. Examining how the information needs and information seeking behavior of entrepreneurs from developing countries may differ from entrepreneurs in developed countries is important as it has been suggested that “entrepreneurship in developing countries is distinctive from that practice in developed countries and that understanding these distinctions is critical to private sector development in developing countries” (Lingelback, de la Vina, & Asel, 2005, p. 2). A review of the studies produced thus serves as a beginning for designing information packages and information services that can benefit a global population. Consequently, this chapter targets the information needs and information seeking behavior of entrepreneurs revealed in studies associated with SMEs in both developed and developing countries and offers conclusions and recommendations for meeting the information needs of this population.

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