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Addressing endogeneity in marginal revenue product estimates of shirking in Major League Baseball Managerial Finance Pub Date : 2024-02-27 Richard J. Paulsen
Purpose While much of the literature testing for shirking by professional athletes have used performance metrics, some works have quantified shirking in dollar terms by comparing salary to estimated marginal revenue product (MRP). However, Ordinary Least Squares (OLS) approaches to measuring shirking by comparing salary to MRP have an endogeneity problem, as salary and contract length are determined
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Corporate governance and firm’s risk behavior: the moderating role of corporate social responsibility Managerial Finance Pub Date : 2024-02-23 Khurram Shahzad, Rizwan Ali, Ramiz Ur Rehman
Purpose This study aims to examine the nexus of corporate governance with firms' financial risk-taking behavior under the corporate social responsibility (CSR) disclosures in the context of non-financial listed firms of an emerging economy. Design/methodology/approach This study investigates the relationship between corporate governance as evaluated by an index and several financial risks, including
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CSR inequality, managerial myopia and hostile takeover threats Managerial Finance Pub Date : 2024-02-02 Pattanaporn Chatjuthamard, Pandej Chintrakarn, Pornsit Jiraporn, Weerapong Kitiwong, Sirithida Chaivisuttangkun
Purpose Exploiting a novel measure of hostile takeover exposure primarily based on the staggered adoption of state legislations, we explore a crucial, albeit largely overlooked, aspect of corporate social responsibility (CSR). In particular, we investigate CSR inequality, which is the inequality across different CSR categories. Higher inequality suggests a less balanced, more lopsided, CSR policy.
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Can the Sell in May effect be enhanced by a size tilt? Managerial Finance Pub Date : 2024-02-02 Kobana Abukari, Erin Oldford, Vijay Jog
Purpose The authors evaluate the Sell in May effect in the Canadian context to comprehensively explore the Sell in May effect as well as its interactions with the size effect and risk and with multiple indices. Design/methodology/approach The authors use ordinary least squares (OLS) regressions to examine the Sell in May effect and Huber M-estimation to handle potential outliers. They also use the
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Defining and measuring financial literacy in the Indian context: a systematic literature review Managerial Finance Pub Date : 2024-02-05 T.P. Arjun, Rameshkumar Subramanian
Purpose This paper aims to analyse how financial literacy (FL) is conceptualised and operationalised in the Indian context. Design/methodology/approach A systematic literature review (SLR) was conducted using the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) protocol. Thirty-six articles published between 2010 and 2020 were considered for analysis. The FL conceptualisation
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Impact of dynamic working capital management on operational efficiency: empirical evidence from Scandinavia Managerial Finance Pub Date : 2024-01-16 Samuel Yeboah, Frode Kjærland
Purpose Consumer goods firms often tie up inventory and accounts receivable resources, creating cost and liquidity issues. Dynamic working capital management (DWCM) can mitigate these concerns and enhance operational profitability. The study investigates DWCM's impact on operational efficiency (OE). Design/methodology/approach The empirical estimation uses pooled ordinary least squares (OLS), random
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Comparing sentiment and sentiment shock in stock returns Managerial Finance Pub Date : 2024-01-15 Qiang Bu, Jeffrey Forrest
Purpose The authors compare sentiment level with sentiment shock from different angles to determine which measure better captures the relationship between sentiment and stock returns. Design/methodology/approach This paper examines the relationship between investor sentiment and contemporaneous stock returns. It also proposes a model of systems science to explain the empirical findings. Findings The
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Investigating nexus between corporate re-branding and stock market performance: a study of Indian service sector Managerial Finance Pub Date : 2024-01-12 Pushpanjali Kaul, Sangeeta Arora
Purpose The present study, by using signaling perspective aims to investigate short-term valuation impact of rebranding announcements (with name change) on stock performance of 160 service firms listed on NSE NIFTY-500 over the period of 2000–2019. Design/methodology/approach An event study methodology is used to estimate the cumulative abnormal returns (CARs) and its statistical significance is tested
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Google Trends, bank popularity and depositors' fears in Indonesia Managerial Finance Pub Date : 2024-01-10 Nugroho Saputro, Putra Pamungkas, Irwan Trinugroho, Yoshia Christian Mahulette, Bruno Sergio Sergi, Goh Lim Thye
Purpose This paper investigated whether a bank’s popularity and depositors' fear of Google search volume could affect bank deposits and credit. Design/methodology/approach The authors used two different quarterly data from Google Trends and banking data from 2012 Q1 to 2020 Q1. Based on available data, Google Trends data start from 2012. The authors exclude data after 2020 Q1 because the Covid-19 pandemic
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The mediating role of capital on deposit insurance and financial stability: evidence from Islamic and conventional banks Managerial Finance Pub Date : 2024-01-11 Houssem Ben-Ammar
Purpose This study aims to evaluate the interaction between bank capital and explicit deposit insurance scheme (DIS) on the financial stability of Islamic and conventional banks. Design/methodology/approach The author's sample covers 52 Islamic and 108 conventional banks operating in 12 countries over the period 2000–2021 using the random-effects generalized least squares (RE-GLS) regression technique
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Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia Managerial Finance Pub Date : 2024-01-10 Jayalakshmy Ramachandran, Joan Hidajat, Selma Izadi, Andrew Saw Tek Wei
Purpose This study investigates the influence of corporate income tax on two corporate financial decisions — dividend and capital structure policies, particularly for Shariah compliant companies in Malaysia. Design/methodology/approach The study considered data from a sample of 529 Malaysian listed companies from four industrial sectors from 2007–2021 (6,746 company-year observations, before eliminating
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Breaking the linear mould: exploring the non-linear relationship between board independence and investment efficiency Managerial Finance Pub Date : 2024-01-09 Khairul Anuar Kamarudin, Nor Hazwani Hassan, Wan Adibah Wan Ismail
Purpose This study examines the non-linear effect of board independence on the investment efficiency of listed firms worldwide. This study further tests whether the COVID-19 pandemic, industry competition and economic development influence the relationship between board independence and investment efficiency. Design/methodology/approach The data are retrieved from the Thomson Reuters (Refinitiv) database
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Stewardship regulation and institutional investors' preference for investee governance quality Managerial Finance Pub Date : 2024-01-02 James Routledge
Purpose This paper examines whether the adoption of Japan’s Stewardship Code by institutional investors influences their preference for investee companies' governance quality. The Code, introduced by the Financial Services Agency in 2014, promotes constructive engagement between institutional investors and investee companies. Engagement with investees should improve institutional investors' ability
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Predicting returns using moving averages: the role of investor inattention Managerial Finance Pub Date : 2023-12-29 Ajay Bhootra
Purpose Investors are inattentive to continuous information as opposed to discrete information, resulting in underreaction to continuous information. This paper aims to examine if the well-documented return predictability of the strategies based on the ratio of short-term to long-term moving averages can be enhanced by conditioning on information discreteness. Anchoring bias has been the popular explanation
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Specifying and validating overconfidence bias among retail investors: a formative index Managerial Finance Pub Date : 2023-12-29 Parvathy S. Nair, Atul Shiva
Purpose The study explored various dimensions of overconfidence bias (OB) among retail investors in Indian financial markets. Further, these dimensions were validated through formative assessments for OB. Design/methodology/approach The study applied exploratory factor analysis (EFA) to 764 respondents to explore dimensions of OB. These were validated with formative assessments on 489 respondents by
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Financial market shocks and portfolio rebalancing Managerial Finance Pub Date : 2023-12-21 Steven D. Silver, Marko Raseta
Purpose The intention of the empirics is to contribute to the general understanding of investor responses to market price shocks. The authors review assumptions about investor behavior in response to price shocks and investigate alternative rebalancing heuristics. Design/methodology/approach The authors use market data over 40 years to define market shocks. Portfolio rebalancing implements constrained
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Transaction-based lending and real earnings management Managerial Finance Pub Date : 2023-12-20 Stephen Gray, Arjan Premti
Purpose The purpose of this study is to examine how lenders alter their behavior when faced with real earnings management. Design/methodology/approach This study uses the incremental R-square approach as in Kim and Kross (2005) to examine how much lenders rely on income statement and balance sheet ratios as the degree of real earnings management increases. Findings As real earnings management affects
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Response of anchor investors to pre-IPO earnings management: evidence from an emerging market Managerial Finance Pub Date : 2023-12-15 Sahil Narang, Rudra P. Pradhan
Purpose This study aims to examine the reaction of anchor investors (AIs) to pre-IPO earnings management (EM). The authors use the unique detailed bid data from the Indian anchor experiment. The authors also study the reputed AIs’ EM detection ability and pricing behavior in response to pre-IPO EM. Design/methodology/approach The authors use unique AI bid data for 169 Indian IPO firms. Utilizing the
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The impact of co-opted executives on earnings management Managerial Finance Pub Date : 2023-12-15 Eric Valenzuela, Michael Zheng
Purpose The authors seek to analyze the impact of weak corporate governance by top executives of a firm on the firm's earnings reports. This research is meant to further emphasize the impact of co-opted executives on a firm, primarily through their impact on earnings management. Design/methodology/approach Using financial data from 11,473 firm-year observations, the authors utilize ordinary least squares
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A frontier-based parametric framework for exploring the competition–efficiency nexus in commercial banking: insights from an emerging economy Managerial Finance Pub Date : 2023-12-12 Bhavya Srivastava, Shveta Singh, Sonali Jain
Purpose The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019 using stochastic frontier analysis (SFA). Design/methodology/approach Lerner indices, conventional and efficiency-adjusted, quantify competition. Two SFA models are employed to calculate alternative profit efficiency
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Activity of informed traders and stock returns Managerial Finance Pub Date : 2023-12-06 CheChun Hsu
Purpose Recent studies suggested the ratio of option to stock volume reflected the private information. Informed traders were drawn to the options market for its leverage effect and relatively low transaction costs. Informed traders use different intervals of option moneyness to execute their strategies. The question is which types of option moneyness were traded by informed traders and what information
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Financial literacy–a regulator of intended investment behaviour: analysing the hypothetical portfolio composition Managerial Finance Pub Date : 2023-12-04 Crystal Glenda Rodrigues, B.V. Gopalakrishna
Purpose The investment behaviour of individuals has been a major area of interest for several researchers and policymakers due to its great impact on the economy. This study aimed to assess the investment behaviour of individuals in light of their risk appetite and how financial literacy regulates this relationship. Design/methodology/approach A self-administered structured questionnaire was used to
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Upper echelons in college sport: the impact of athletic directors on organizational performance and revenues Managerial Finance Pub Date : 2023-12-04 Tyler Skinner, Steven Salaga, Matthew Juravich
Purpose Using the lens of upper echelons theory, this study examines the degree to which National Collegiate Athletic Association athletic department performance outcomes are associated with the personal characteristics and experiences of the athletic director leading the organization. Design/methodology/approach The authors match organizational performance data with athletic director and institutional
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Student loan debt in retirement: identifying the correlates and implications for policy, practice and research Managerial Finance Pub Date : 2023-11-29 Thomas Korankye
Purpose Research shows that having student loan debt in retirement is associated negatively with life satisfaction, suggesting that student debt is a bane of retiree well-being. The rationale for this study is to determine the factors related to owing student debt in retirement, given the adverse effects on the well-being of retired households. Design/methodology/approach The study utilizes pooled
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Six decades of corporate disclosure research: a bibliometric review Managerial Finance Pub Date : 2023-11-23 Anjali Srivastava, Anand
Purpose Corporate disclosures are essential because they provide transparent and accurate information about a company's financial health, performance, risks and governance practices. They enable investors to make informed decisions, promote market efficiency and maintain trust in the financial system. This paper uses bibliometrics to identify the intellectual composition of the literature on corporate
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Does intellectual capital influence banks' efficiency? Evidence from India using panel data tobit model Managerial Finance Pub Date : 2023-11-16 Santi Gopal Maji, Rupjyoti Saha
Purpose This study investigates the effect of intellectual capital (IC) and its components on the technical efficiency of Indian commercial banks after controlling the influence of bank-specific and macroeconomic variables. Design/methodology/approach The study selects a sample of 37 listed Indian commercial banks from 2005 to 2019 and uses the two-step data envelopment analysis (DEA) approach. Banks'
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Do contingent liabilities affect dividend decisions? Managerial Finance Pub Date : 2023-11-17 Barnali Chaklader, Hardeep Singh Mundi
Purpose The paper examines contingent liabilities' effect on the firm's dividend decisions. Design/methodology/approach Fixed-effects regression and logit model results estimate the influence of contingent liabilities on firms' dividend decisions using a sample of 2,288 firm-year observations of S&P 500 firms from 2012 until 2022. Robustness checks and results from the 2SLS model further support the
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Asset redeployability and corporate cash holdings Managerial Finance Pub Date : 2023-11-14 Wray Bradley, Li Sun
Purpose The purpose of the study is to investigate the impact of asset redeployability on the level of corporate cash holdings. Design/methodology/approach The authors use regression analysis to examine the relation between asset redeployability and corporate cash holdings. Findings Using a large panel sample of US public firms from 1990 to 2020, the authors find a significant positive relation between
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The surprising role of audit committee financial experts and the need for more of them to combat financial corruption Managerial Finance Pub Date : 2023-11-10 Mikhail Gorshunov
Purpose The purpose of this research is to examine the impact of audit committee financial experts on the risk of financial corruption in public companies. Design/methodology/approach A time-lagged, matched-pairs sample of 352 corporations was utilized to test the study's hypotheses (176 financially corrupt firms plus 176 compliant firms). To uncover financially corrupt firms, 2,895 Accounting and
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External audit quality, auditor selection and hostile takeovers: evidence from half a century Managerial Finance Pub Date : 2023-11-03 Kriengkrai Boonlert-u-thai, Pattanaporn Chatjuthamard, Suwongrat Papangkorn, Pornsit Jiraporn
Purpose Exploiting a unique measure of hostile takeover exposure principally based on the staggered adoption of state legislations, the authors investigate how external audit quality is influenced by the discipline of the takeover market. External auditors and the takeover market both function as important instruments of external corporate governance. Design/methodology/approach The authors execute
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The impact of working capital management on the profitability of listed halal food and beverage companies Managerial Finance Pub Date : 2023-10-24 Umar Habibu Umar, Mamdouh Abdulaziz Saleh Al-Faryan
Purpose This study investigated how working capital management (WCM) influences the profitability of listed halal food and beverage companies. Design/methodology/approach The study utilized a sample of 56 listed halal food and beverage companies operating in Indonesia, Malaysia, Saudi Arabia, Pakistan and the United Arab Emirates (UAE). Unbalanced panel data were generated from the Bloomberg database
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Exercise decision of employee stock options: does Herding Bias influence the employees' decision? Managerial Finance Pub Date : 2023-10-23 Manpreet K. Arora, Sukhpreet Kaur
Purpose Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand the exercise decision of the employees. This is an important financial decision that is dependent on both rational and psychological factors. This paper aims to study the mediating role of Herding Bias on Personality
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The impact of hurricanes on a property portfolio: an empirical study based on loss data in Portugal Managerial Finance Pub Date : 2023-10-13 Andrea Hauser, Carlos Rosa, Rui Esteves, Lourdes Bugalho, Alexandra Moura, Carlos Oliveira
Purpose The simulated scenarios can be used to compute risk premiums per risk class in the portfolio. These can then be used to adjust the policy premiums by accounting for storm risk. Design/methodology/approach A complete model to analyse and characterise future losses of the property portfolio of an insurance company due to hurricanes is proposed. The model is calibrated by using the loss data of
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Sustainable investments: a scientometric review and research agenda Managerial Finance Pub Date : 2023-10-02 Monica Singhania, Ibna Bhan, Gurmani Chadha
Purpose Sustainable investments (SI) represent a promising class of investments, combining financial returns with mitigating environmental challenges, achieving SDG goals and creating a positive business impact. An enhanced global focus on climate change developments in the backdrop of COP26 and COP27, raised the need for comprehensive literature mapping, to understand the emerging themes and future
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Impact of gender diversity on firm performance: empirical evidence from India Managerial Finance Pub Date : 2023-09-22 Najul Laskar, Jagadish Prasad Sahu, Khalada Sultana Choudhury
Purpose The main purpose of the study is to investigate the impact of gender diversity both at the board and workforce level on firm performance (FP) in the Indian context. Design/methodology/approach This study is based on annual data of 200 companies listed on Bombay Stock Exchange (BSE) for the period 2012–2019. The authors have used the fixed-effects (FE) regression and system generalized method
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Revisiting the impact of geopolitical risk on Sukuk, stocks, oil and gold markets during the crises period: fresh evidence from wavelet-based approach Managerial Finance Pub Date : 2023-09-22 Mustafa Raza Rabbani, M. Kabir Hassan, Syed Ahsan Jamil, Mohammad Sahabuddin, Muneer Shaik
Purpose In this study, the authors analyze the impact of geopolitics risk on Sukuk, Islamic and composite stocks, oil and gold markets and portfolio diversification implications during the COVID-19 pandemic and Russia–Ukraine conflict period. Design/methodology/approach The study used a mix of wavelet-based approaches, including continuous wavelet transformation and discrete wavelet transformation
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Dynamics of price clustering in the Pakistan stock exchange Managerial Finance Pub Date : 2023-09-19 Ahmed S. Baig, Muhammad Imran Chaudhry, R. Jared DeLisle
Purpose In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world during 2014–2017. The authors study the effect of stock-level variables on price clustering and analyze the determinants of the cross-sectional patterns of price clustering in the PSX, in particular the causal link
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Corporate carbon emissions data for equity and bond portfolios Managerial Finance Pub Date : 2023-09-14 Laurens Swinkels, Thijs Markwat
Purpose To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has suggested that Environmental, Social and Governance scores across providers have low correlation. Design/methodology/approach The authors compare carbon data from four data providers for developed and emerging equity markets
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Managerial incentives for ESG in the financial services industry: direct and indirect association between ESG and executive compensation Managerial Finance Pub Date : 2023-09-14 Jooh Lee, Kyungyeon (Rachel) Koh, Eunsup Daniel Shim
Purpose This study investigates the empirical association between environmental, social and corporate governance (ESG) performance and top executive compensation in the US financial services industry. Considering that financial firms can inflict systemic shocks across the economy, it has been argued that they must conduct ethical and sustainable business in accordance with ESG principles. This study
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Performance of ESG SPACs Managerial Finance Pub Date : 2023-09-12 Vinay Datar, Ekaterina E. Emm, Bo Han
Purpose The authors examine one special focus of Special Purpose Acquisition Companies (SPACs), namely environmental, social and governance (ESG) related investments. The authors document the performance of SPACs with and without ESG focus. Design/methodology/approach The authors collect data, from several sources, on 1,737 SPAC IPOs formed between 2003 and 2022. A SPAC's focus on ESG is classified
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Multi-level analysis on determinants of sustainability disclosure: a survey of academic literature Managerial Finance Pub Date : 2023-09-05 Waris Ali, Jeffrey Wilson
Purpose This study uses a multi-level framework to systematically summarize and synthesize the empirical literature on determinants of sustainability disclosure. Design/methodology/approach This review study is based on 159 empirical studies examining determinants of sustainability disclosure and published in Charted Association of Business Schools (CABS) ranked journals over the last 40 years. Findings
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Forecasting the impact of financial stress on hedging between the oil market and GCC financial markets Managerial Finance Pub Date : 2023-09-05 Taicir Mezghani, Mouna Boujelbène, Souha Boutouria
Purpose This paper investigates the predictive impact of Financial Stress on hedging between the oil market and the GCC stock and bond markets from January 1, 2007, to December 31, 2020. The authors also compare the hedging performance of in-sample and out-of-sample analyses. Design/methodology/approach For the modeling purpose, the authors combine the GARCH-BEKK model with the machine learning approach
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Predicting customer deposits with machine learning algorithms: evidence from Tunisia Managerial Finance Pub Date : 2023-09-04 Oussama Gafrej
Purpose This paper aims to evaluate the performance of the multiple linear regression (MLR) using a fixed-effects model (FE) and artificial neural network (ANN) models to predict the level of customer deposits on a sample of Tunisian commercial banks. Design/methodology/approach Training and testing datasets are developed to evaluate the level of customer deposits of 15 Tunisian commercial banks over
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Funding liquidity risk: does banking market structure matter? Managerial Finance Pub Date : 2023-08-04 Japan Huynh
Purpose The paper empirically investigates the link between banking market structure and funding liquidity risk. Design/methodology/approach With a panel of Vietnamese commercial banks from 2007 to 2021, the system generalized method of moments (GMM) estimator is applied as the primary regression method, while the random-effect model and the corrected least square dummy variable (LSDVC) technique are
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Analytics and baseball card values Managerial Finance Pub Date : 2023-07-31 Thomas H. Thompson, Kabir Chandra Sen
Purpose The authors contrast Beckett and Professional Sports Authenticator (PSA) baseball card valuations. Also, the authors contrast the Bill James statistics for winshares (WIN) and reference.com statistics for wins above replacement (WAR). Design/methodology/approach This study examines the impact of analytics on Topps 1957 baseball card values. Findings The authors' examination of variables that
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Herding in the Australian stock market during the era of COVID-19: the roles of liquidity, government interventions and mood contagion Managerial Finance Pub Date : 2023-07-28 Nhan Huynh, Dat Thanh Nguyen, Quang Thien Tran
Purpose This study explores the economic impact of the COVID-19 crisis on herding behaviour in the Australian equity market by considering liquidity, government interventions and sentiment contagion. Design/methodology/approach This study utilizes a daily dataset of the top 500 stocks in the Australian market from January 2009 to December 2021. Both predictive regression and portfolio approaches are
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Does sharia-compliant debt financing reduce stock price crash risk? Managerial Finance Pub Date : 2023-07-26 Rayenda Khresna Brahmana, Maria Kontesa
Purpose This paper examines the impact of sharia-compliant debt financing on stock price crash risk. Unlike those previous studies that took Sukuk or sharia-compliant firms, this study tests the impact of the proportion reported sharia-compliant debt financing in the balance sheet on the risk of price crash of a firm. Design/methodology/approach Using the data from 2,752 firm-year observations of 344
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Shifting incentives: the impact of the Tax Cuts and Jobs Act on S bank conversions Managerial Finance Pub Date : 2023-07-11 Ca Nguyen, Alejandro Pacheco, Randall Stone
Purpose This paper investigates the significant increase in S corporation banks converting to C corporations following the 2017 Tax Cuts and Jobs Act (TCJA) and the shift in motivations behind these conversions. Design/methodology/approach The paper uses bank-level panel data from Federal Deposit Insurance Corporation (FDIC) Call Reports to analyze the determinants of S bank conversions after the TCJA
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Financial planning propensity in working adults: exploring the role of media Managerial Finance Pub Date : 2023-07-10 Radnyi Godase, Jyothi P, M. Lalitha Supriya
Purpose The study aims to explore the role of media in enhancing financial knowledge, financial self-efficacy, and financial planning propensity among working adults in India. Design/methodology/approach Primary survey-based data (n = 542) were analyzed using covariance based-structural equation modeling. Findings Media has a positive impact on financial knowledge. Financial knowledge positively mediates
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The impact of behavioral factors on investment decisions and investment performance in Croatian stock market Managerial Finance Pub Date : 2023-07-07 Marija Vuković, Snježana Pivac
Purpose Investors' behavior in financial markets is often under the influence of various psychological and cognitive factors, as well as personality characteristics. This research explores which behavioral factors and personality traits affect investment decisions and, consequently, investment performance. Design/methodology/approach A survey analysis was conducted on a sample of 310 investors in Croatia
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Liquidity management by mutual funds Managerial Finance Pub Date : 2023-07-04 Marius Popescu, Zhaojin Xu
Purpose The paper examines how equity mutual funds manage their liquidity. Specifically, the authors investigate what strategies fund managers use to meet investor redemption demand, whether these strategies vary over time, whether different type of funds employ different liquidation practices in response to fund outflows, and whether liquidity strategies impact fund performance. Design/methodology/approach
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An investigation into outside directors, managerial compensation, and firm performance in the Korean insurance industry Managerial Finance Pub Date : 2023-07-04 Sangyong Han, Hyejeong Mun
Purpose This study investigates the relationship between outside directors, managerial compensation, and firm performance in the Korean insurance industry. Design/methodology/approach The authors employ a simultaneous equation framework by using three-stage least squares (3SLS) to address the endogeneity problems that could result from the joint determination of outside directors, firm performance
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Round offer prices in M&A transactions: costly negotiation and psychological preference Managerial Finance Pub Date : 2023-06-30 Ying Huang, Xiankui Hu, Kenneth Hunsader, Steven Xiaofan Zheng
Purpose The authors of this study aim to investigate possible explanations of the prevalence of price clustering in the final offer prices of mergers and acquisitions (M&A). Design/methodology/approach The authors use final offer price in M&A deals to investigate the price clustering phenomena. The authors used regressions and logistic regressions to examine potential factors that might affect pricing
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Factors affecting financial decisions of university students: evidence from Pakistan Managerial Finance Pub Date : 2023-06-30 Muzammil Khurshid, R.M. Ammar Zahid, Meher Un Nisa
Purpose This study examined the factors affecting university students' financial decisions in Pakistan. Design/methodology/approach Structural equation models were used to analyze data from 300 university students using a questionnaire. Students' financial decisions were used as the dependent variable, while financial literacy, money ethics, money attitude, time preference, financial experience, and
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Role of institutional investors in reviving loss-making firms: evidence from India Managerial Finance Pub Date : 2023-06-27 V. Veeravel, Pradiptarathi Panda, A. Balakrishnan
Purpose The present study aims to verify whether there is a positive (negative) role being played by the institutional investors on the loss-making companies' performance. Design/methodology/approach The authors employ panel data regression and two-step system generalised method of moments (SYS-GMM) to test the above objective. Findings The empirical results clearly show that no positive relation is
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Intangible capital and financial leverage in SMEs Managerial Finance Pub Date : 2023-06-27 Antti Norkio
Purpose Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly influencing debt capacity and default risk assessment. This paper studies how entrepreneurial and employee-based IC affects financial leverage. Design/methodology/approach Employer–employee unbalanced panel data provided by
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The role of restrictive covenants in Moody's and standard and Poor's debenture credit ratings Managerial Finance Pub Date : 2023-06-22 Marc Simpson, Axel Grossmann
Purpose To determine the effect that covenants have on the credit ratings assigned by the two major agencies. Design/methodology/approach The authors examine 1,822 bond issues from 1991 to 2018, with a two-stage methodology to account for the endogeneity of the firms' choices and the ordinal nature of the ratings. The authors use Hendry's model selection method to find the best-fitting models from
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The cost of equity to earnings yield differential and dividend policy Managerial Finance Pub Date : 2023-06-22 Omar Esqueda, Thomas O'Connor
Purpose The authors measure the cost of equity to earnings yield differential for a sample of 2,035 non-financial firms. In a series of Logit and Tobit regressions, the authors examine if the cost of equity to earnings yield differential is related to dividend policy in the manner predicted by agency theory. Design/methodology/approach Agency theory says a firm's optimal dividend policy is partially
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Can a student-managed fund transfer expert financial knowledge? Examining trustee voting consensus in a student-managed investments program Managerial Finance Pub Date : 2023-06-13 Lawrence J. Belcher, Landon J. Belcher
Purpose The “experience is the best teacher” model assumes that acquiring expertise in a given domain reduces biases. Research in expert knowledge in investment decisions has shown better ability to produce improved results in asset selection or portfolio returns. Universities created student-managed investment funds (SMIFs) to train students in portfolio management as fiduciaries. However, analyses
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Prepayment and credit utilization in peer-to-peer lending Managerial Finance Pub Date : 2023-06-12 Yuan Yuan, Ran Tao
Purpose This research analyzes borrowers' credit utilization through prepayment behavior in peer-to-peer (P2P) lending. The authors investigate factors influencing the decision to prepay and assess the role of P2P lending as an alternative source of consumer credits. Design/methodology/approach The authors use individual loan-level data from the LendingClub, one of the largest P2P platforms in the