Corporate social responsibility is growing steadfast in emerging countries. Studies analyzing the factors that typically determine CSR practices of firms have often led to conflicting results. In this study, we examine corporate governance determinants that are specifically relevant to CSR in emerging countries. Analyzing a large sample of Vietnamese listed firms, we find that foreign ownership, international

Using a unique Swedish database that records the ultimate stockholdings in public firms, we decompose stock ownership by domiciles using votes rather than cashflows. We then study the impact of variables related to the lifecycle theory of dividends and the catering theory of dividends. We also examine the propensity of firms to pay dividends and/or activate a stock buyback program. Univariate analysis

We study the effects of FX liquidity risk on carry trade returns using a novel low-frequency market-wide liquidity measure. We show conclusively that the vast majority of variation in carry trade returns can be explained by two risk factors (liquidity risk and market risk). Our results are further corroborated when the mimicking liquidity risk factor is replaced with a non-tradable innovations risk

The study empirically examines the role of foreign direct investment (FDI) to trigger financial deepening (FD) in the Southeast Asian region. More specifically, it investigates the direct and indirect roles of FDI in enhancing the level of FD. The findings of the robust FGLS and PCSE estimators suggest that FDI acts as an essential stimulator to FD in the region – directly as well as indirectly through

A better understanding of financial contagion and systemically important financial markets will help market participants capture market information and assist regulators in preventing financial crises. We propose a ripple network based collective spillover effect approach to model the spread of financial contagion and analyze the systemic importance of financial markets. The crude oil market is taken

This study introduces two novel metrics that calculate the degree of shock asymmetry which can be utilized to examine whether countries in a currency area face symmetric shocks. In an attempt to answer whether the symmetric shock assumption is fulfilled in the European case, the exchange rate transmission mechanism of all 14 countries that have joined the ERM and Sweden is explored. The findings point

This paper provides a long-term perspective to the causal linkages between currency dynamics and macroeconomic conditions by utilising a long span data set for the United Kingdom that extends back to 1856 and a time-varying causality testing methodology that accounts for the nonlinearity and structural breaks. Using unemployment fluctuations as a proxy for macroeconomic conditions and wavelet decompositions

This article analyses the developments in and determinants of the country-specific dependence of sovereign bond returns on global factors for 41 economies over the last decade. The dependence was cyclical and substantial: the average for the sample economies and period was around 56 percent. This is consistent with the global financial cycle hypothesis stressing the dominant role played by global factors

With a comprehensive dataset covering 148 countries over 1995-2015, this study investigates the relationship between competition and efficiency in the banking industry. Evidence shows that bank competition is detrimental to cost efficiency, which is at variance with the intuitive “quiet life” hypothesis. Bank regulatory and institutional environment in which banks operate not only influences bank efficiency

We investigate the effect of major global factors—crude oil, gold, silver, the S&P 500 Index, the United States (US) Dollar Index and Time-varying tail dependence structure and dynamics between international prices of oil, natural gas, cocoa and sectoral stock returns in Australia: perspectives for portfolio diversification. Sep 27, 2020 Nov 22, 2020 Sent Back to Author US Treasuries—and a psychological

Using a multi-country sample of stocks, the sensitivity of investment to stock price informativeness is assessed. Consistent with prior research, we find a positive association between investment and stock prices. This association becomes stronger when prices are more informative. However, while measures of price informativeness related to the amount of (market-based) private information conveyed by

In this study, we document, for a number of emerging markets, that positive returns can be obtained using a short-term reversal strategy. These returns are higher for small and illiquid firms, and highest for more volatile firms. Overall, the reversal strategy-based alphas are significant when accessed through different asset pricing models. Our results provide, however, an important unexplored explanation;

Public-Private Partnerships (PPPs) are frequently renegotiated as their contracts are long-term, often with a duration exceeding 30 years, involve major investments, and are necessary incomplete. Still, while contract incompleteness is difficult to prevent, renegotiation frequency does not decline in spite of decades of experience. Electoral cycles and political connections lead to strategic behaviour

This paper examines the connectedness between cryptocurrencies and major fiat currencies in a multivariate framework using vine copulas. One of the advantages of this method is the flexibility in the choice of distributions used to model complex dependencies. The results show that the dependence, measured conditionally or unconditionally, is positive and higher for the pairs of the same market than

This paper investigates whether superior corporate social responsibility (CSR) performance leads to greater firm-level foreign direct investment (FDI). We argue that the decisions managers take on their CSR can have a positive influence in the external perception of the firm and act as an important intangible asset. Using a sample of 4764 firms from 44 countries spanning 2003–2014, we find evidence

This study aims to examine the effect of corruption, national culture, and rule of law on the dividend repatriation policy of foreign subsidiaries of US multinational corporations (MNCs) in 51 countries. The findings reveal that foreign subsidiaries of US MNCs repatriate lower dividends from host countries that have a higher rate of corruption. Additionally, findings suggest that foreign subsidiaries

This study presents a financial distress (FD) prediction model that utilizes accounting, market-based, and financial reporting quality (FRQ) measures. We use a panel logit framework to analyze data for developed market firms from the UK and emerging market firms from Pakistan during the period 2001-2015. Obscured portions of financial reports, such as that created by management tactics employing income

We examine the effect of economic policy uncertainty (EPU) on the dynamic conditional correlations between Bitcoin and the US stock markets while accounting for structural changes in Bitcoin prices. The results indicate a negative effect of EPU on the dynamic conditional correlations between Bitcoin and the US stock markets only after the Bitcoin crash of December 2017. Further analysis shows an increase

We evaluate competing hypotheses on profit skimming, asymmetric benchmarking, and the effects of implicit incentives using natural disasters as shocks to firm-specific performance. We find that compensation of both CEOs and other top executives are adjusted for exogenous changes in firm-specific performance. Moreover, the change in pay-for-performance sensitivity is greater for favorably rather than

Using a sample of 2977 private and listed banks in the EU-5 countries (the United Kingdom, Germany, Spain, Italy, France) for the years 2009–2018, this paper explores the impact of Economic Policy Uncertainty (EPU) on credit growth. Using panel data fixed effects methodology and controlling for endogeneity using two-step difference GMM estimators, our findings indicate that uncertainty in economic

Comparisons of financing decisions of domestic and multinational firms provide contrasting results. Some indicate that multinationals operate at higher levels of debt, whilst others suggest domestic firms use more leverage. We test whether managers of multinational firms increase the use of debt capital or prefer theoretically more expensive equity financing as internationalization increases. We find

This paper uses a panel database for 84 countries over the 2002–2017 period to analyze the importance of bank development and bank market competition for enhancing new business creation. The results show that less bank market competition facilitates the creation of new businesses. Bank development, however, is not associated with a higher entry rate of new businesses. Less bank market competition and

We investigate whether ownership concentration influences payout policy and which effect foreign institutions and government as large shareholders have on payout across firms listed in the Nordic countries. We find that the impact of ownership concentration on payout largely differs among the countries. Higher ownership concentration leads to lower propensity to pay dividends in Finland and to repurchase

This study investigates the natural resource rent and financial development nexus by subsuming the critical role of institutional quality in this paradigm in a sample of 87 Emerging and Developing Economies (EMDEs), during the period from 1984 to 2018. The findings demonstrate that natural resources rent undermines finance and supports the natural resource curse hypothesis in the financial sector of

This paper investigates how the level of democratic accountability in a country affects the relationship between oil prices and financial development. We argue that the ability of oil-exporting countries to mitigate the oil curse in finance rests on the quality of their institutions. We tested this argument using a panel of 21 oil-exporting countries over the period 1984−2016. Based on sophisticated

We study the relaxation of the capital requirements regulation in Japan around the global financial crisis of 2007–08, which represents a change in bank regulation, to test whether an effect of bank competition on risk-taking is moderated by a change in bank regulation. Although this particular change in bank regulation in Japan was primarily meant to help stabilize the banking system, we show that

This study examines the prediction power of the ratio of gold to platinum prices (GP) on Bitcoin. By using different models and data sources for Bitcoin, we find that GP predicts future Bitcoin return. When the price of gold relative to platinum increases, Bitcoin return also goes up. This finding is consistent with previous studies and contributes to the ongoing discussion whether GP can be used as

This study investigates signaling value of internationally-recognized quality certification in improving firm’s access to external finance for 39,638 mostly small and medium-sized firms in 137 countries. We find that certified firms have better access to external finance as compared to otherwise equal uncertified firms. Certified firms use more bank finance and equity capital while uncertified firms

This paper studies the impact of economic policy uncertainty (EPU) on ADR mispricing. Investigating 605 ADRs from 13 countries and their underlying assets over the period from 2000 to 2018, we find consistent evidence that EPU in the U.S. impacts ADR mispricing differently as compared to EPU of the country of the underlying asset. Specifically, we find evidence for a statistically significant positive

In this paper, we investigate the impact of oil price changes on exchange rates in some oil-related economies. Financial contagion effects during recent oil price shocks are also examined. We employ a novel approach based on the Markov regime switching -quantile regression model to allow oil prices to switch between different regimes. Our results show that the impact of oil price changes on exchange

This study explores the association between politically connected firms (PCFs) and income smoothing. Using a Malaysian dataset from 2002 till 2015, this study finds that PCFs are more likely to engage in income smoothing activity, in comparison with non-PCFs. Further, smoothing income in PCFs is encouraged by institutional investors, as it is perceived as an attempt to convey useful private information

This study examines the effect of institutional ownership and investors’ recognition on stock performance around index rebalancing in the In