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AbstractReplacing productive equipment is necessary due to its deterioration, which involves failure costs. However, studies on equipment replacement often lack stochastic approaches. Incorporating randomness into decision models enhanced the quality of equipment replacement decisions. In this sense, this study examines the methods used in the literature through topics generated by Latent Dirichlet Allocation. The Onion Latent Dirichlet Allocation method was used to analyze the secondary layer of a high-concentrated topic. Based on the perplexity analysis, ten main topics were identified and examined. The results suggest that most articles employ the dynamic programming method within a stochastic context, highlighting its advanced development in the literature. [ABSTRACT FROM AUTHOR]

Agency theory predicts that institutional ownership plays an important role in monitoring corporate risk-taking. This study examines this ownership-risk taking linkage in Japan over the period 2007 and 2019. We proxy risk through measures of idiosyncratic risk, total risk, and market beta. We show that (relational) foreign institutional shareholdings (do not) induce corporate risk-taking, thereby mitigating (preserving) the managerial 'quiet life' in Japanese corporations. Using 2SLS analysis, the roles of institutional shareholders are robust to endogeneity concerns. Finally, we also confirm robustness using alternative accounting-based risk proxies such as the standard deviation of Tobin's Q and ROA. Our study implies that the monitoring of institutional shareholders is important in Japanese corporations whose top executives might be prone to seek a 'quiet life'. [ABSTRACT FROM AUTHOR]

What is the effect of political instability on financial inclusion (FI) in the Middle East and North Africa region? Using data for 2011, 2014, and 2017, from the Global Findex database, we test the asymmetry relationship between political instability and FI using the probit model with sample selection and a multiplicative interaction test of the asymmetric model. We also propose and test a political stability threshold model that may trigger FI. We find that (a) political instability positively correlates with lower degrees of FI with higher levels of persistence; (b) higher incomes and higher education are associated with higher degrees of FI; (c) a lack of documentation required by formal financial institutions proves to be a major barrier to FI; and (d) inefficient mechanisms to determine real interest rates, corruption, oil reliance, unemployment, and religious tensions also negatively affect FI. Further, we calculate the political stability threshold level that will trigger FI to be ‐0.960 for the Middle East and North Africa region. The policymakers could enhance and promote FI and economic well‐being by targeting the minimum threshold value of political stability. [ABSTRACT FROM AUTHOR]

This study investigates if gender diversity on boards is an effective driver of financial performance. For this purpose, this study choses two countries, one of which has the soft law approach (Singapore) while the other has mandatory requirements (India) on corporate boards gender diversity. By doing so, it examines if there is a comparability between the listed firms of the two countries. Our results suggest that the gender diversity has a positive and significant effect on the financial performance of the firms of both the countries. Although, the gender diversity of the two countries does not seem to affect the growth opportunities of both the countries. Further, our results indicate that the board characteristics affect the performance positively and significantly when the sample is divided into five quantiles for the firms in these two countries. These findings have implications to the managerial decision making and relevance to stewardship theory and resource dependency theory. [ABSTRACT FROM AUTHOR]

This paper examines the effect of formal financial intermediation (inclusion) on informal financial intermediation and the use of cash for economic activities. Using data from the Global Findex 2014, we examine whether the use of formal financial intermediaries reduces cash preference and the use of informal financial intermediaries. Our empirical results show that informal financial intermediation is positively associated with formal financial inclusion. This indicates that the relationship between informal and formal financial intermediation is complementary rather than a trade-off, which demonstrates the importance of informal finance plays in the financial system of Africa. Moreover, the use of formal financial intermediaries significantly reduces the preference for holding cash, implying that a robust financial system infrastructure has the potential of mobilizing excess liquidity in the informal economy of Africa for growth and development. [ABSTRACT FROM AUTHOR]

Purpose:This study examines how, and to what extent the trading of the cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) contributes to the information flow and price discovery for the corresponding cross-listed stocks on the Shanghai Stock exchange (SSE).Design/methodology/approach:The study utilizes the information share, Granger causality test, Vector error correction model, Permanent–Temporary Gonzalo–Granger (PT/GG) method and Bivariate DCC-EGARCH model to examine the price discovery dynamics across the cross-listed stocks.Findings:The Granger causality tests show that there is two-way transmission on feedback between the Chinese and US markets. The effects from NYSE to SSE are larger than the other way round. The Bivariate DCC-EGARCH model test results indicate the volatility spill over from NYSE is larger from the SSE.Practical implications:Results suggest that in contrast to previous studies that showed very little contribution to price discovery by Chinese ADRs on the NYSE, the present study indicates that the contribution to price-discovery of Chinese ADRs on NYSE has increased relative to the past, suggesting the importance of changing time frames and economic situations.Originality/value:The study differentiates between long-term and short-term price discovery effects and finds that home country bias persists in the long term and in the short term the information from the Cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) affects price discovery for SSE stocks. [ABSTRACT FROM AUTHOR]

The present study sheds light on the comparative experiences of the two countries originating from differing legal systems and describes how their codes and practices affect the publicly listed firms’ performance. It investigates the linkages between Research and Development (R&D) expenditures, Board characteristics and firm performance using a sample of Irish and Spanish firms for the period 2005–2014. To do this, the study uses ROA and Tobin’s Q as proxies for financial performance; and board size, non-executive directors, female representation and CEO duality as board structure characteristics; and R&D expenditure volatility, employing different techniques that include OLS, fixed effects model and Quantile regression model. The difference-in-difference model is used to verify the significance of robustness of relationships considering the global financial crisis as an exogenous shock. The descriptive statistics suggests a comparability of boards’ independence for the Spanish- and Irish-listed firms. Although the Spanish firms are less dual than Irish firms, the results are comparable on the association between CEO duality and firm performance. The findings of Spanish-listed firms on the relationship between increase and decrease in the R&D expenditures volatility and performance support the creative–destructive perspective that suggests effective governance in funding allocation to R&D. [ABSTRACT FROM AUTHOR]