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Purpose: This study aims to re-examine the impact of economic policy uncertainty (EPU) on firm innovation. Studies on how EPU affects firm innovation have been inconclusive. The authors clarified the curvilinear relationship between EPU and firm innovation and examined the moderating effects of managerial pay gaps, specifically vertical pay disparity and horizontal pay dispersion. Design/methodology/approach: This study's analyses used data collected from Chinese listed companies from 2007 to 2019. Findings: The authors found an inverted U-shaped relationship between EPU and firm innovation. Furthermore, vertical pay disparity strengthens the curvilinear relationship, while horizontal pay dispersion weakens it. Practical implications: First, politicians should avoid adjusting economic policies too frequently because the high EPU levels created by frequent adjustments can inhibit business innovation. Second, firms should be aware that EPU creates opportunities for leapfrogging. In particular, firms can incentivize executives to take advantage of the valuable growth opportunities presented by EPU by widening vertical pay disparities and avoiding excessive horizontal pay dispersion. Originality/value: First, the authors analyze not only the positive effects of lower EPU on firm innovation but also the negative impacts of higher EPU to examine EPU's "double-edged sword" effect on firm innovation. Second, the investigation of vertical pay disparity and horizontal pay dispersion as moderating variables sheds new light on the equivocal research findings regarding the EPU–firm innovation relationship and clarifies the boundary conditions of the double-edged sword effect of EPU on firm innovation. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the impact of directors' and officers' liability insurance (D&O insurance hereafter) on corporate governance and firm performance, with a specific focus on investment efficiency. Design/methodology/approach: Using a sample of Chinese A-share listed firms from the period 2007 to 2020, this study uses Ordinary Least Squares regressions to investigate the research questions, as well as moderating and mediating effects. Additionally, alternative measures of investment efficiency are used, and the Heckman two-stage model and propensity score matching model are used to demonstrate the consistency of the findings and to mitigate the risk of endogeneity. Findings: The findings of this study suggest that purchasing D&O insurance has a detrimental impact on corporate investment efficiency, particularly in the context of over-investment activities; robust internal governance mechanisms, exemplified by a higher shareholding ratio of the top shareholder and enhanced internal control quality, alleviate this negative effect; and financing constraints act as a mediating factor in the association between D&O insurance and investment efficiency. Originality/value: Corporate investment efficiency is of significant importance for both national macroeconomic growth and micro-enterprise development. Notably, the prevalence of D&O insurance among Chinese firms is progressively increasing, thus exerting a growing influence. This study contributes to the existing literature on D&O insurance and corporate investment efficiency, providing valuable insights into the economic impact of D&O insurance on Chinese firms. The empirical evidence presented herein facilitates future reforms and adjustments. [ABSTRACT FROM AUTHOR]

Purpose: The study examines the effect of increased Economic Policy uncertainty on analyst optimism in the Indian market. The study also explores whether the SEBI Research Analyst Regulation, 2014, has effectively contained the optimistic nature of analysts. Design/methodology/approach: The study is based on firms in the Indian market. The sample period is 2003–2020. It runs a linear panel regression to measure the impact of Economic Policy uncertainty on the optimism level of analysts' forecasts and recommendations, controlling for firm fixed effects. Further, the impact of the SEBI Research Analyst Regulation, 2014, has been assessed with the help of the difference-in-difference approach. Findings: The Economic Policy uncertainty is significantly and positively related to the analyst optimism, reflected in the forecast bias and recommendation in the Indian context. The experience of analysts and the age of the firm positively drive optimism. However, introducing the Research Analyst Regulation by SEBI led to a decline in analyst optimism. The regulation decoupled the analysts' compensation from brokerage service transactions. Thus, the results suggest that the regulation has effectively curbed the incentive to produce optimistic output. Originality/value: This is the first study in the Indian market to assess the impact of uncertainty on analyst output. It also investigates the effectiveness of the first analyst-specific regulation in India, i.e. The Research Analyst Regulation, 2014. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to provide one of the first empirical examinations of the liquidity conditions in the international sukuk market. It also provides evidence on how those differences have changed over time. Design/methodology/approach: The study uses propensity score matching in combination with two price-based liquidity measures, bid-ask and high-low spreads, to compare the liquidity conditions of international sukuk issuances with similar international conventional bonds. Findings: The results confirm that sukuk issuances are significantly less liquid than their conventional equivalents. The results also show that this difference in liquidity is more prominent in the case of corporate issuances. Finally, the analysis shows a general decline in these liquidity differences over time as the sukuk market matures and as more investors and issuers enter the market. Originality/value: The study addresses the gap in the literature regarding the absence of an empirical examination of the liquidity conditions in the international sukuk market. The findings of this study also suggest that prior empirical findings regarding the diversification benefits offered by sukuk are likely to be driven by the lack of liquidity in the sukuk market rather than underlying economic factors. [ABSTRACT FROM AUTHOR]

Purpose: Based on the rankings of the global competitiveness index and the fragile states index, this paper aims to suggest alternative approaches to shed some light on the effectiveness of rankings in helping emerging economies improve their competitiveness from an institutional standpoint. Design/methodology/approach: The statistical analysis consisted of a two-stage analysis; the first stage consisted of constructing an updated Alternative Institutional Quality Index (AIQI), intending to design a comparative measure between dimensions over time. The second stage consisted of evidencing the structure of each of the observed dimensions' variance to evidence the existing changes or gaps of the AIQI and its components. The authors incorporated the Kruskas–Wallis (KW) model to test the results. Findings: This paper demonstrates that the analyzed countries generally maintain their competitive position, even though changes in their scores are reflected. This makes invisible the development and progress factors generated by the countries that are mainly found with low scores and only reflect stable structures that allow them to maintain their position. Research limitations/implications: The current study has a limitation because it concentrated on a few selected indicators based on the literature review. The limitations of this research may be overlooked in the future by adding additional variables and observations. The paper could be improved by including intra- and inter-regional approaches to control based on the occurrence of specific circumstances (i.e. informal institutions, economic development or factor endowments). Practical implications: The paper contributes to the applicable measurement of competitiveness and its structural change over time. Originality/value: This paper proposed an alternative and simple methodology to assess the evolution of the competitiveness indicators; this methodology could be used to measure structural changes at different levels, which may be an input for the design and implementation of policies to foster competitiveness. [ABSTRACT FROM AUTHOR]

Purpose: In order to effectively promote the deep integration of artificial intelligence and the real economy and empower real enterprises to improve quality and efficiency, this study regards the CEO as a high-end innovation resource and aims to empirically test the impact of scholar-type CEOs on the industrial artificial intelligence (AI) transformation of manufacturing enterprises. Design/methodology/approach: Grounded on the upper echelons theory, this paper preliminarily selects A-share manufacturing listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that are affiliated to enterprise groups from 2014 to 2020 as samples. Furthermore, the Logit regression is conducted to analyze the influence of scholar-type CEOs about industrial AI transformation. Findings: The results show that scholar-type CEO plays a significant role in promoting industrial AI transformation. The parent-subsidiary corporations executives' ties positively moderates the impact of scholar-type CEOs on industrial AI transformation. Further, internal control quality plays a partial mediating role between scholar-type CEOs and industrial AI transformation. Compared with private enterprises, scholar-type CEOs play a stronger role in promoting industrial AI transformation of state-owned enterprises. Originality/value: First, this paper expands the research related to the influencing factors of industrial AI transformation based on upper echelons theory and clarifies the influencing mechanism of scholar-type CEOs affecting industrial AI transformation from the perspective of executives' behavior. Second, this study further enriches the research framework on the economic consequences of scholar-type CEOs and provides a useful supplement to the research literature in the field of upper echelons theory. Third, this paper is not limited to a single enterprise but involves the management practice of resource allocation within the enterprise groups, further clarifies the internal logic of the decision-making of industrial AI transformation of listed companies within the framework of enterprise groups, providing theoretical reference for the scientific design of the governance mechanism of parent-subsidiary companies. [ABSTRACT FROM AUTHOR]

Purpose: Improving audit quality is an important research area of managerial accounting. This study focuses on the informal institutions within organizations and their impact on audit quality. Specifically, this study aims to examine the impact of the informal hierarchy among directors on audit quality. Design/methodology/approach: The authors examine Chinese companies with listed shares from 2008 to 2020. The authors proxy for audit quality using discretionary accruals and small profits, and use ordinary least squares regression to test their hypotheses. Findings: The results demonstrate that the informal hierarchy of the board improves audit quality. The results are robust to a battery of sensitivity analyses. Additionally, there is weak evidence that the effect of the board's informal hierarchy on audit quality is weaker in state-owned enterprises. Moreover, the mechanism tests indicate that the board's informal hierarchy improves audit quality through the improvement of internal controls. In addition, the impact of the informal hierarchy among directors on audit quality further improves firm performance. However, audit fees are not reduced further because the board's informal hierarchy demands higher audit quality by choosing industry audit experts. Originality/value: This study not only enriches the research on the economic consequences of the board's informal hierarchy but also expands on studies on antecedents of audit quality. [ABSTRACT FROM AUTHOR]

Purpose: Cultural variance represents a significant challenge to policy designers and, in practice, to employers in the varied employment spaces. Providing workplace accessibility for the integration of various cultural groups requires deep thinking and creating unique possibilities for each group in accord with its particular heritage. Ultra-Orthodox society in Israel is a religious minority group that has undergone significant changes, from a desire to maintain total separation, to gradual integration into a variety of areas in Israeli society. In light of these changes, we sought to examine what policies should be adopted in order to improve ultra- Orthodox integration. Design/methodology/approach: Methodologically, we examined the cultural variance of ultra-Orthodox academics in their workplace using combined methods. The study included 745 ultra-Orthodox academics who responded to an online questionnaire that examined the issue in question from various aspects. In addition, four focus groups were convened, in which discussion examined issues. Findings: The study findings reveal that the integration policies of the various workplaces were above and beyond the expectations of the cultural diversity management approach. Although the study focused on the personal perspective of the ultra-Orthodox employees who integrated, the employers' open and accepting attitudes were very prominent. The participants' comments showed that the employers showed great consideration for their needs and exceptional cultural sensitivity towards the employees' temperament. This dialogue constitutes the basis for managing variance in a multicultural society. The understanding by the employer of the background and cultural legacy from which the worker has come, alongside the difficulties he must cope with constitutes, in itself, the basis for building a stable relationship between employer and worker and for optimal integration of a minority group in society. Practical implications: The findings indicate that cultural adjustment is required in four areas: a. Adaptation from the social and cultural aspect in the workplace. b. The definition of different areas of employment specific to gender. c. Consideration of the employees' halachic needs d. Professional preparation for employees prior to their absorption. Originality/value: This study is a pioneering one, examining the integration of ultra-Orthodox academics in the Israeli economy. This process is very significant in a political entity with different cultural identities. The acquisition of a higher education in ultra-Orthodox society in Israel and subsequent integration into the Israeli economy has a decisive cultural and economic impact on both the ultra-Orthodox and general societies simultaneously. An examination of the issue of integration of the ultra-Orthodox minority in employment is intended not only to investigate the character and nature of the process, but also to examine the place of multiculturalism in Western societies and the interaction between a minority group and the majority group, with an emphasis on employment. [ABSTRACT FROM AUTHOR]

Purpose: Literature has widely discussed the relevant role of financial development in determining atmospheric quality. However, there has not been much discussion of how financial inclusion (FIC) plays its role in environmental quality. Thus, this research aims to unveil the role of financial inclusion in determining the CO2 emissions which serve as a proxy of environmental quality. In addition, this study examines the moderating role of corruption control (CC) in the nexus of FIC-CC. Design/methodology/approach: The empirical results were based on 22 years of annual data from five Brazil, Russia, India, China and South Africa (BRICS) economies, covering the years 1996–2017. The authors use the autoregressive distributed lag (ARDL) model to check regression among variables. Findings: The empirical findings first disclosed the positive impact of FIC whereas CC had an inverse impact on CO2 emissions. However, the moderating role of CC was observed in mitigating the adverse impact of FIC on ecological quality. In addition, the statistical analysis further showed an inverse impact of economic growth and foreign investment and a positive impact of trade volume and energy consumption on CO2 emissions. Practical implications: This analysis states an important policy regarding integrated FIC and green environmental requirements. Additionally, the negative externality of FIC can be controlled by improving the CC. Originality/value: This study complements the existing literature on FIC and environmental quality by adding the moderating role of CC. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to assess the economic impact of uniform COVID-controlling policies that were implemented by the US government in 2020 and compare it with hypothetical targeted policies that consider the heterogenous effect of COVID-19 on different age groups. Design/methodology/approach: The author began by showing that the adjusted SEQIHR model is a good fit to the US COVID-induced daily death data in that it can capture the nonlinearities of the data very well. Then, he used this model with extra parameters to evaluate the economic effects of COVID-19 through its impact on the job market. Findings: The results show that targeted COVID-controlling policies could reduce the US death rate and GDP loss to 0.03% and 2%, respectively. By comparing these results with uniform COVID-controlling policies, which led to a 0.1% death rate and 3.5% GDP loss, we could conclude that the death rate reduction is 0.07%. Approximately 378,000 Americans died because of COVID-19 during 2020, therefore, reducing the death rate to 0.03% means saving a significant proportion of the COVID-19 casualties, around 280,000 lives. Originality/value: To the best of the author's knowledge, this paper is the first study to assess the economic impacts of COVID-controlling policies by using the multirisk SEQIHR model. [ABSTRACT FROM AUTHOR]

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Purpose: Existing studies have shown that all kinds of audit risks greatly affect audit pricing for accounting firms. However, it is still unclear whether environmental risks caused by environmental violations lead to a high audit fee. This study aims to investigate whether accounting firms raise audit fees after client firms have violated environmental regulations or have been punished for such violations. Design/methodology/approach: This study selects listed firms with environmental violations between 1994 and 2018 as the treatment sample and match the treatment group with a control group of firms from the same industry, of similar asset size and with no environmental violations for the same time period. Then, this study constructs a difference-in-difference (DID) model to explore the impact of firm environmental violations (or punishment for environmental violations) on the audit pricing. Findings: This study finds that accounting firms tend to raise audit fees after client firms have violated environmental regulations or have been punished for such violations, and this increasing effect is different due to environmental regulation intensity, regional span and internal control defects. Further evidences show that environmental violations influence audit fees through financial restatement, whereas environmental punishments impact audit fees through earnings management and risk-taking. Originality/value: This study enriches the literature on determining factors of audit fees and economic consequences of environmental violations and provides empirical supports to understand the pricing behavior of accounting firms. [ABSTRACT FROM AUTHOR]

Purpose: The current study aims to investigate the determinants of nonperforming loans (NPLs) in the GCC economies during the period spanning 2000 to 2018. It also examines whether the worldwide financial crisis of 2007–2008, which brought the issue of non–performing loans to the greater attention of academics and policymakers, had a substantial impact on NPLs in this region. Design/methodology/approach: The sample consists of 53 conventional banks from GCC countries, and the basic data for the study is obtained from various sources such as Bankscope, IMF World Economic Outlook, World Bank and Chicago Board of Options Exchange Market Volatility Index. The estimations were done by dynamic panel data regression modeling using system generalized methods of moments. Findings: The findings reveal that both, the non-oil real GDP growth rate and inflation have favorable effects on NPLs. On the other hand, domestic credit to the private sector and the volatility index have an adverse effect on NPLs. Furthermore, the period-wise analysis shows that the relevance and significance of the determinants of NPLs vary between the precrisis and postcrisis periods. It is also reflected through the intercept dummy, which is found to be significant, indicating that the financial crisis, as a global economic factor, had a significant impact on NPLs. A number of robustness tests are applied, which indicate that the results are mostly robust and consistent in terms of the significance of the explanatory variables and the direction of their relationship with the dependent variable. Practical implications: Policymakers and bank authorities must strive to maintain a healthy economy and implement macroprudential policies to improve the financial stability of banks and reduce credit risk. Originality/value: To the best of the authors' knowledge, this is likely the first study that empirically investigates the influence of the financial crisis on NPLs in the context of GCC economies. In addition, the research spans 19 years to produce more conclusive results. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to empirically investigate the dark side of business-to-business (B2B) relationships in traditional business practices worldwide that rely on strong networks. Design/methodology/approach: This study applies a questionnaire survey to collect data from buyers in 224 Kuwaiti firms and uses the partial least squares structural equation model for data analysis. Findings: Drawing on the social exchange theory, we test the relationships between B2B wasta, relationship satisfaction, innovation and efficiency. The findings show that despite the belief that wasta brings long-term benefits when applied in B2B relationships, it negatively impacts the firm's efficiency. Originality/value: This study contributes to the existing literature on B2B relationships by identifying important issues related to the multifaceted nature of B2B wasta relationships. The study confirms the importance of relational and innovation benefits over economic consequences based on elements of social exchange theory, which extends our current understanding of the application of SET in B2B wasta relationships. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the economic consequences of, and managerial behaviour in response to, the introduction of IFRS 16 Leases. It extends the debt covenant hypothesis to explain why firms reduce the use of operating leases with the introduction. Design/methodology/approach: This study develops a model, based on operating leases as an alternative financing source and the determinants of debt policy, to estimate the effects of gearing on operating lease intensity. High gearing is a proxy to probably closer to the violation of, or expected to violate, the gearing restriction in debt covenants given the retrospective capitalisation of operating leases, when IFRS 16 takes effect. Findings: This study finds that operating lease intensity fell between 2011 (immediately after the first exposure draft leading to IFRS 16) and 2018 (immediately prior to the effective date of IFRS 16). It also finds that gearing affects changes in operating lease intensity over 2011 and 2018, consistent with the debt covenant hypothesis. Research limitations/implications: The introduction of IFRS 16 is a natural experiment with unique characteristics (the active lobbying behaviour, ex ante evidence on adverse economic consequences, a prolonged standard-setting period, etc.) valuable for accounting research. Practical implications: A showcase about the relevance of financial reporting for contracting interests of firms and managers and a good reference for accounting standard setters in considering and managing the economic consequences of proposed accounting standards. Originality/value: This study adds to the limited research on the consequences of accounting standards and documents the ex-post impact on firm leverage ratios and the behavioural aspects of reporting entities. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to explore the impact of earthquakes on the labor market. The authors try to estimate the impact of two major earthquakes (Izmir and Elazig) in Turkey. Design/methodology/approach: In order to analyze the effects of devastating earthquakes in the nearby regions of the province where the earthquake took place, on the labor market, monthly and annual data from the TUIK and ISKUR database will be used. For this purpose, the authors consider the earthquake a natural experiment and employ a Synthetic Control Method (SCM). In addition, the analysis will be carried out using seasonally adjusted data, taking into account the seasonal effects of the monthly data to be used in the study. Findings: The results show that the impact varies based on the labor market structure of the regions. While the earthquake positively affects the labor market of agriculture-oriented regions, it harms the labor market of nonagricultural-oriented regions. Research limitations/implications: A major limitation of the study is that we cannot fully separate the impact of Covid-19 from our estimate. The authors believe that Covid-19 overestimates the negative impact of earthquakes on the labor market. Social implications: Earthquakes have adverse effects on the labor market. The estimation of the earthquake-related costs may provide a useful guide on policy planning and government incentives. Originality/value: The originality of the study lies in the fact that this is the first study to evaluate how the dynamics of the labor market has changed as a result of the earthquakes that have taken place in Turkey, within the framework of causality. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0568 [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to enhance empirical research on foreign divestment and international relocation by multinational firms are still limited and understudied, although these issues have been a frequent phenomenon and carry important economic implications. Design/methodology/approach: The paper investigates the trends of foreign divestment in South Korea and examines firm- and host country-level determinants in total, manufacture and service sectors from 2010 to 2019. Findings: Using probit model analysis, the main findings are first, among the firm-level factors, sales revenue and parent firm dummy are shown as negative and significant determinants of foreign divestment especially in manufacturing sector. Second, among the country-level factors, gross domestic product growth rate and regulatory quality that measures perceptions of sound policies that promote private sector development are shown negative and significant determinants of foreign divestment. On the other hand, relationship between the environmental policy stringency and foreign divestment is shown positive and significant. Originality/value: The results suggest that these nonfirm-specific characteristics are also important factors in firm decision to divest from the host country. [ABSTRACT FROM AUTHOR]

Purpose: Green economy and economic development with high quality have set higher requirements for the development of the urban logistics industry. It can grasp the recent development level of the urban logistics industry by measuring its environmental efficiency to guide its future development direction. The purpose of this study is to improve the environmental efficiency and development level of the urban logistics industry by using a reasonable evaluation method. Design/methodology/approach: This paper uses information entropy to directly aggregate index weights from different models to acquire comprehensive index weights (CIWs) for calculating peer-evaluation efficiency. Then, we weight self and peer-efficiencies to obtain final efficiency. The environmental efficiencies of the urban logistics industry in Anhui Province in 2019 are obtained according to the above method. Findings: Several findings are summarized below. The logistics industry in Anhui is in urgent need of improving environmental efficiency. The environmental efficiency of the logistics industry in North Anhui is the highest one, showing that the logistics industry in North Anhui has achieved a relative balance between economic development and environmental protection. Their final cross-efficiency values based on the CIWs are smaller than those based on the comprehensive efficiency. And the environmental efficiency of almost all urban logistics industries is lower than its economic efficiency. The findings show that the proposed method is feasible and more reasonable. More economic implications and suggestions are proposed. Originality/value: This paper proposes an extended cross-efficiency evaluation method based on information entropy to measure the environmental efficiency of the urban logistics industry, effectively avoiding the overestimation of efficiency results. [ABSTRACT FROM AUTHOR]

Purpose: The rising uncertainties in the macroeconomic environment exacerbate the challenges firms face in the export market. This study aims to explore which strategy is suitable for export enterprises to develop sustainably under COVID-19. Design/methodology/approach: Based on the sample data of China's A-stock listed manufacturing firms from 2010 to 2020, this study applies a survival analysis method to explore the impact of strategic flexibility on export firm survival. Furthermore, this study uses the difference-in-difference model to test the relationship between strategic flexibility and firms' profits in the context of the pandemic. Findings: The results show that strategic flexibility can increase firms' survival time, improving dynamic production and innovation capabilities, which is favorable for their sustainable development. Meanwhile, after the spread of COVID-19, firms with strategic flexibility have higher profits than those without. This influence mechanism mainly involves exploring new markets that can improve the company revenue and the coordination capabilities of the supply chain; this reduces corporate costs. Originality/value: This study expands relevant research on the factors affecting the survival of export enterprises and supplements research on the economic consequences of firms' strategic flexibility; this also enriches the dynamic capability theory. Additionally, it provides important implications for firms to enhance strategic flexibility and recommends government implementation of policies that encourage the domestic sales of commodities originally produced for exports under COVID-19. [ABSTRACT FROM AUTHOR]

Purpose: Drawing on the social exchange theory, stakeholder theory and extended theory of reasoned action, this study aims to investigate how consumers view the economic and sociocultural impacts (benefits/costs) of peer-to-peer (P2P) accommodations on the local community's resilience and how consumers form behavioral intentions toward P2P accommodation as a part of sustainable tourism behavior. Design/methodology/approach: With data from a survey of 300 consumers who have previously used P2P accommodation, the authors performed partial least squares-structural equation modeling to test the proposed model and hypotheses. Findings: The current study reveals the significant impact of the sociocultural benefits of P2P accommodations on consumers' perceived community resilience, while economic benefits have a non-significant impact on perceived community resilience. Moreover, neither the sociocultural nor economic costs of P2P accommodation significantly reduce consumers' perceived community resilience. Furthermore, the authors found significant positive relationships among perceived community resilience, attitude, subjective norm, personal norm and behavioral intentions. Practical implications: P2P accommodation platforms can leverage these research findings and contribute to the community resilience and help community residents by establishing strategic collaboration with various stakeholders (e.g. governments, destination marketing organizations and non-profit organizations) for the community's sustainable development. Originality/value: This study systematically investigates the role of P2P accommodation in achieving community resilience by categorizing the impacts of P2P accommodation into economic and sociocultural benefits/costs. [ABSTRACT FROM AUTHOR]

Purpose: This study explores coopetition opportunities between e-tailers and brick-and-mortar (BM) retailers and provides a conceptual framework. These opportunities may be triggered by events such as social distancing causing crises (SDCC). Design/methodology/approach: A grounded theory based approach was used wherein 119 news articles and 48 academic papers are the main sources of data to analyse the real-world responses. A typical qualitative methodology, including open and axial coding, was used. To further analyse the insights obtained, six in-depth interviews were conducted. Findings: Non-customer-interfacing-based coopetition, such as small BM stores serving as e-marketplace sellers and customer-interfacing-based coopetition, such as large BM stores serving as showrooms, are some potential coopetition opportunities. Research limitations/implications: The majority of the available studies dwell more on offline retailers developing online channels. This study investigates the opposite situation and conceptualises a new understanding of how e-tailers and BM retailers can work together more harmoniously. This study can be used as a springboard by academicians for future research on a larger scale. Five research propositions are offered that can guide hypothesis generation. Development of case studies and consulting services for the industry are the other research opportunities. Practical implications: Social distancing as a measure may vanish from the world with time; however, social distancing's implications are still pertinent given that new diseases, including new variants of pandemic potential, could continue to emerge. The study puts forward propositions based on theoretical dimensions and second-order themes derived from first-order categories. These propositions are about the drivers of coopetition and the opportunities with both large and small BM stores that e-tailers can leverage during a crisis, given that launching e-tailers' own BM stores demands large investments. This study has social and economic implications too. Originality/value: This study investigates coopetition, an important trend but lacking adequate research. Whilst only few studies examine coopetition from a crises' perspective, this study investigates develops a new understanding of coopetition opportunities between e-tailers and BM retailers. This study adds to the scarce literature how such opportunities may be triggered by events such as SDCC. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate the effect of share pledging by controlling shareholders on earnings informativeness. Design/methodology/approach: Using a sample of 23,120 firm-year observations from 2003 to 2019 in China, this paper examines how share pledging by controlling shareholders affects earnings informativeness, measured by earnings persistence and earnings response coefficients. Findings: This paper finds that share pledging by controlling shareholders makes earnings less informative. The adverse impacts are more pronounced when share pledging distorts incentives of controlling shareholders to a greater extent and when the signaling of share pledging about a firm's weak future performance is stronger. Finally, this paper further shows that the 2018 new regulation on share pledging effectively alleviates the negative impacts of share pledging on earnings informativeness. Originality/value: First, this paper adds to the growing literature on the economic consequence of share pledging by documenting the adverse impacts of share pledging on earnings informativeness. The literature on the economic consequence of share pledging is often mixed, which justifies further research on the impacts of share pledging on earnings informativeness. Second, this paper documents a new signaling channel through which share pledging affects earnings informativeness. Third, the finding of this paper on the 2018 new regulation on share pledging may be interesting to research agencies, such as the Chartered Financial analyst institute and Institutional Shareholder Services institute that recommend tightening regulations on share pledging. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to empirically examine how the voluntary formation of a specialised investment committee (IC) and IC characteristics affect financial distress risk (FDR) and whether such impact is influenced by the level of investment inefficiency. Design/methodology/approach: The authors use a large sample of Gulf Cooperation Council (GCC) non-financial companies during 2006–2016. A principal component analysis is done to aggregate and derive a factor score for IC characteristics (i.e. independence, size and meeting) as a proxy for the effectiveness of IC. This study also uses three measurements of FDR to corroborate the findings and partitions sample firms into overinvesting and underinvesting companies to examine the potential impact of investment inefficiency on the IC–FDR nexus. Findings: Using feasible generalised least square estimation method, the authors document that the likelihood of financial distress occurrence decreases for firms with separate ICs. The authors also find that firms with effective ICs enjoy lower FDR. In other words, the probability of financial distress minimises if the IC is large, meets frequently and has a high number of independent directors. However, the authors find neither any moderation nor any mediation effect of investment inefficiency for the impact of IC and IC attributes on FDR. The additional analysis indicates the expected benefits of an actively performing IC are amplified for firms with risk of both over- and underinvestment. These findings are robust to alternative measures of FDR and investment inefficiency, sub-sample analysis and endogeneity concerns. Originality/value: This study, to the best of researchers' knowledge, is the first to provide evidence in GCC firms' perspective, suggesting that the existence of an effective IC is associated with a lower risk of financial distress, and to some extent, the economic benefits of IC are aggrandised for companies with a high probability of over- and underinvestment problems. These results are unique and contribute to a small but growing body of literature documenting the need for effective ICs and their economic consequences on investment efficiency in the FDR environment. The findings of this study carry valuable practical implications for regulatory bodies, policymakers, investors and other interested parties in the GCC region. [ABSTRACT FROM AUTHOR]

Purpose: Countries in Africa have undergone an unprecedented transformation that has shaped the continent as they move ahead from the clutches of colonialism. The evolution of leadership and how organisations function optimally has given rise to the review of leadership approaches and practices, revolutionising its position in the global markets. With the recent spate of global suffering from the pandemic, the formal and traditional work structures are becoming transient. At the same time, the economic consequences of the Russo-Ukrainian crisis have catastrophic effects globally. Design/methodology/approach: The research was conducted via a systematic review of scientific sources from various academic websites. Eligibility criteria were defined with the agreement of pertinent themes and concepts. Findings: By evaluating and analysing characteristics and success indicators from the blend of leadership competencies ascertained from Afrocentric principles in response to African associated problems, Africa can cement its leadership concepts without following the global north principles. These philosophies are resilient enough to contend with a range of VUCA (volatility, uncertainty, complexity and ambiguity) complexities, including the impact of the recent global pandemic of immeasurable proportions and the prospect of war as the Russo-Ukrainian conflict intensifies. Originality/value: Within the African environment, there is a greater focus on the human element in shared values, holistic well-being, cooperation and experience. The global community band together to deal with these complexities. This is a typical example of global connectedness with positive and negative connotations. [ABSTRACT FROM AUTHOR]

Purpose: This paper empirically examines the influences of economic complexity performance on environmental innovation implementation. Design/methodology/approach: The research is based on four measures designed to assess the effectiveness of environmental innovations in 24 European countries, including the percentage of enterprises implementing environmental innovation investment (% of surveyed firms), the percentage of enterprises implementing environmental innovation activities (e.g. implementation of resource efficiency actions, sustainable products or ISO 14001 certificates) measured, a number of enterprises having new ISO 14001 registration and a number of environmental innovation related patents. After conducting various tests for longitudinal correlations and asymmetry of the studied series, we examine the relationship between product proximity, economic complexity and environmental innovation (EI) implementation using the panel-corrected standard error model (PCSE) model in the following section. The feasible generalized least squares (FGLS) model is employed to further verify our findings by taking into account heteroscedasticity. An application of the two-step generalized mixed model (GMM) is considered to resolve an endogeneity issue. In addition, the dynamic fixed-effects estimate (DFE) estimator is applied to the autoregressive distributed lag (ARDL) method in order to calculate both the short-run and long-run effects. As indicated by Ha (2022a, b) and Ha and Thanh (2022), the DFE-ARDL method can be used to identify both time-fixed effects and country-fixed effects. Findings: The authors provide empirical evidence to propose the mechanism through which economic complexity encourages the implementation of environmental innovation through favorable impacts of economic complexity on environmental innovation investments of firms and governments and the public's awareness regarding the importance of environmental innovations. Practical implications: This research provides important implications for policymakers in promoting environmental innovations. Originality/value: The study is the first to empirically examine economic complexity performance's influences on environmental innovation implementation. It is also the first to investigate the importance of institutional quality in enhancing the influence of economic complexity on environmental performance. [ABSTRACT FROM AUTHOR]

Purpose: The present study aims to investigate the validity of the Environmental Kuznets Curve (EKC) by exploring the role of various economic factors including economic development, foreign investment, human capital, energy dependency, financial development (FD), etc., in CO2 emissions. Design/methodology/approach: For empirical analysis, the samples for the years 2001–2019 of six GCC region countries that apply the fully modified ordinary least squares model were utilized. Findings: The statistical results show that economic development, foreign investment, energy dependency, human capital and oil rents have a direct impact on CO2 emissions, whereas trade liberalization and FD have an indirect impact. Nonetheless, the empirical analysis rejects the EKC hypothesis in the set of GCC region countries. The empirical findings in connection to the basic premises of the EKC model are found to be statistically constant for the linear relationship. The GCC region is rigid regarding CO2 emission because of its reliance on main energy sources like oil and gas. Research limitations/implications: The current analysis directs the policy recommendations about environmental sustainability to environmental economists and other policymakers. The development of such policy instruments as the adoption of contemporary technology and reduced reliance on fossil fuels is advised to mitigate the negative externalities of multiple economic factors. Similarly, future studies should focus on trade liberalization and FD, both of which have a declining trend in CO2 emissions. Originality/value: The present study is innovative by means of testing the EKC model and exploring how other factors related to CO2 emissions in the GCC region. [ABSTRACT FROM AUTHOR]

Purpose: This study proposes an alternative perspective on why firms issue convertible debt, to supplement the largely theoretical motives identified in the existing literature. It hypothesises that the separate presentation of convertible debt into its equity and liability components has economic consequences and advantage that explain why firms issue convertible over non-convertible debt, consistent with the debt covenant hypothesis. The purpose of this paper is to address the proposed perspective and hypothesis. Design/methodology/approach: Data on convertible debt, gearing (debt assets and debt equity), debt issuance and retirement, etc. were collected for a sample of 1,104 firms listed on Bursa Malaysia. Regression analyses were then used to assess the hypotheses on how gearing affects the use of convertible debt and the impacts of its use on changes in gearing over the financing cycle. Findings: Firms with higher gearing, and possibly those close to violating debt covenants, are more likely to issue convertible than non-convertible debt. In addition, the use of convertible rather than non-convertible debt both reduces the increase in gearing when debts are issued and leads to a larger decrease in gearing during debt retirements via conversion. Practical implications: These effects on gearing provide firms with additional financial flexibility and enhance firms' capacity to borrow more from other sources, a lower-debt advantage. Originality/value: This study demonstrates the informational role of financial reporting in addressing the stewardship emphasis, as part of the decision usefulness objective of financial reporting in the Conceptual Framework for Financial Reporting. [ABSTRACT FROM AUTHOR]

Purpose: Software has become increasingly important in business. However, the value of aggregate in-house and packaged software investments and the influence of an industry's software investment opportunities (SIOs) are poorly understood in the literature. This study addresses this research gap and proposes that an industry's SIOs play an essential role in the economic impacts of industry in-house and packaged software investments. Design/methodology/approach: A model of the economic impacts of in-house and packaged software investments at the industry level under different SIOs is developed and empirically tested based on a panel dataset of private industries in the USA between 1998 and 2020. Findings: The results show that with the increase in the number of SIOs in an industry, the economic performance of in-house software investments increases, while that of packaged software investments decreases. Originality/value: By highlighting the role of SIOs in moderating the economic performance of in-house and packaged software, this study shows the critical role of the information technology (IT) environment in understanding software's economic value. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is discussing on cross-city empirical economic growth, by estimating an unbalanced dynamic panel for the most vulnerable region of Brazil. Design/methodology/approach: The authors propose including additional and specific sources of cross-city variation, enabling them to capture the essence and reality of this region. The sample selection is given by the solution of a trade-off on the number of cities and the available explanatory variables. Considering the final choice, the analysis is based on 6,452 observations extracted from a sample of 925 cities between 2009 and 2015. Reconciling the regional growth literature and this availability of observable data, the authors decide to explain cross-city real gross domestic product per capita in log, controlling for its lagged value besides 15 explanatory variables on human capital, financial system, business environment and social infrastructure. Findings: This study uses growth drivers on human capital, financial system, business environment and social infrastructure. Considering 6,452 observations for the period from 2009 to 2015, this study finds a significant role played by the levels of education of formal workers, rural financing, real estate financing and FIRJAN indices (health and employment). Research limitations/implications: A more comprehensive and complete understanding of cross-city variation, whether in the Northeast, in the North of the country or in other regions, involves the expansion of growth drivers in the model. Certainly, the impact of the industrial sector (not captured by the FIRJAN employment/income index), or programs and initiatives geared to technology, must be significant and positive. Despite the low market share, the insertion of microcredit data for informal, small business owners and more underserved families, can bring insights not measured in this article. Practical implications: On financial system and development: The results on the significant and positive coefficient of rural and real estate financing are fundamental in conducting public policies aimed at granting credit. On human capital: The expected and intuitive relevant role of education suggests that good policies that are implementable need to be looked for and replicated to other northeastern cities. The state of Ceará seems to be that benchmark to be followed by the other states. Social implications: Another public policy that needs to be strengthened so that the most vulnerable cities can grow is related to the partnership with the private sector in the expansion and maintenance of basic sanitation. In this context, the new Legal Framework for Basic Sanitation is an important step. Its main objective is to universalize and qualify the provision of services in the sector. Theoretically, it seems to be an important advance and this also unlocks the first big wave of investments. Originality/value: The analysis aims to contribute to the recent studies on regional growth applied to Brazil. To the best of the authors' knowledge, this is an innovative contribution, and the main differences between this paper and the others are the sample of cities, the period, the growth model and the estimation technique. For instance, Da Mata et al. (2005, 2007) explore population growth and its implications for economic dynamics and income generation among 123 urban agglomerations between 1970 and 2000. Alves (2021) studied slum growth in contemporary urbanization of households in 272 Brazilian cities from 1991 to 2010. [ABSTRACT FROM AUTHOR]

Purpose: Despite the availability of several published reviews on the adoption of blockchain (BC) in supply chain (SC), at present, the literature lacks a comprehensive review incorporating the antecedents and consequences of BC adoption. Moreover, the complex adoption of BC in SC, explained with the mediating and moderating relationships, is not fully consolidated. Thus, the aim of this study was to conduct a systematic literature review (SLR) on BC technology adoption (BCTA) in SC by integrating its antecedents and consequences. Design/methodology/approach: Keyword searches were performed in multiple databases resulting 382 articles for evaluation and verification. After careful screening with respect to the purpose of the study and systematic processing of the retrieved articles, a total of 211 peer-reviewed articles were included in this study for review. Findings: Various technological, organisational, individual, social, environmental, operational and economic factors were found as the antecedents of BCTA in SC. In addition, numerous applications of BC Technology (BCT) were identified, including asset management, identity management, transaction management, data management and operations management. Finally, the consequences of BCTA were categorised as operational, risk management, economic and sustainability outcomes. Practical implications: This study can assist relevant decision-makers in managing the factors influencing BCTA and the potential uses of the technology to enhance SC performance. Originality/value: By integrating the antecedents, applications and consequences of BCTA in SC, including the mediators and moderators, an integrated framework was developed that can potentially assist researchers to develop theoretical models. Further, the results of this SLR provide future directions for studying BCTA in supply chain management (SCM). [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is the evaluation of choosing the determined logistics centers' (LCs') locations via Multi-Criteria Decision-Making (MCDM) methods. Design/methodology/approach: Since there is more than one criterion in the evaluation of LC location, MCDM methods are used. The Entropy and CRiteria Importance Through Intercriteria Correlation (CRITIC) methods are used to determine the main criteria and sub-criteria weights. The Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) method is used for ranking and evaluating 12 alternatives in Turkey and sensitivity analysis according to the threshold values of criteria and preference functions. Findings: Possible LC alternatives in Turkey and 12 locations ranked. Changing the criteria weights at a significant level did not affect the ranking results much. In the sensitivity analysis of the criteria for which market data could not be obtained (scored by the experts) it is found that they either made no difference or made little difference in the ranking of the alternatives. Practical implications: In terms of sustainability, economic factors along with environmental and social dimensions are important criteria for logistics companies and LC. The use of these variables in the LC location selection makes a difference. Originality/value: This study focuses on LC location selection, via PROMETHEE with evaluated preference functions for criteria, taking into account nine scenarios that use variable criteria weight calculated via different MCDM methods. The results are evaluated by using sensitivity analysis and taking into account the sustainability aspect for LC. Multiple methods have been used effectively together in a way that support each other. [ABSTRACT FROM AUTHOR]

Purpose: This study analyzes the dynamic impact of the COVID-19 pandemic on consumption among Ghanaian households, by identifying the existing consumption inequalities in the households according to the different age categories of the household head and changes in consumption patterns among the household constituents. In particular, the study examines the effects of the coronavirus pandemic (COVID-19) on household consumption and the differing impact on the different age categories of the household. Design/methodology/approach: The research methodology of the study is based on the input–output analysis of the Ghanaian economy during the years 2015 and 2021 by using data on household consumption disaggregated by age. Economic impact is estimated through multi-sector modeling, specifically a demand model expressed based on a money metric measure valued in Ghanaian cedis. This model allows us to obtain the direct impact of the COVID-19 pandemic on the manufacturing sector, professional, scientific and technical activities, Water supply, sewerage, and waste management within Ghanaian households. The model also observed a negative impact of the COVID-19 pandemic on the public sector works and defense, and SSNIT sectors of the Ghanaian economy. Findings: The findings of the study revealed that for the category of age group between the ages of 15–29 years, the consumption of manufacturing products experienced an increase of 6.20% whiles that of electricity consumption, air conditioning and heating reduced by 2.26% for the period under consideration. However, public sector works and defense, and SSNIT experienced a decline by 8.24%. For the age group between 30 and 45 years, the highest and most positive percentage change in household consumption was noted to be professional, scientific and technical activities (6.20%), Water supply, sewerage, waste management (5.98%), as well as manufacturing (5.65%). However, there was a decline in the consumption level of education by Ghanaian households during the lockdown especially among people within the age group of 46–65 years. There was a decline of 6.11% for the administrative and support services and there was also a decline the services of defense and SSNIT service consumption by 2.10%. For the final age group of 66 years and above, there was an increase of 6.94% in the consumption of such essential utilities in Ghana between 2015 and 2021. The demand for education however showed a drastic reduction of 8.1% over the study period due to this category of age group with majority of them retiring from work. Research limitations/implications: The findings from this study will help in understanding the effects caused by the pandemic on household consumption and the differing impact on different age category of the household, especially on young households. This can potentially shape future policy by especially helping policymakers to device a more targeted social safety-net policies not only to speed-up recovery, but also to mitigate the negative impact of any future outbreak of a pandemic on household consumption and limit the age gaps in consumptions. However, the study does not consider the income levels of the different age groups. This becomes a limitation of the study and can be further explored in future studies. Originality/value: This study measures the impact of a global health pandemic on the consumption of all households, with its accompanying impact of this variation. It can be noted that analyzing household consumption and quantifying the positive and negative impact on different age category of the household and the different sectors of the Ghanaian economy add to the limited knowledge of the impact of the COVID-19 pandemic at the household level. [ABSTRACT FROM AUTHOR]

Purpose: This study examines the impact of Corporate Social Responsibility Disclosure (hereafter CSRD) on the Corporate Economic Performance (hereafter CEP) of a group of public shareholding companies in Jordan. Design/methodology/approach: This study uses different proxies to examine the impact of CSRD on companies' financial and economic value. The data were collected from a sample of 94 companies listed on the Amman Stock Exchange from 2010 to 2016. Based on a checklist of 41 indicators, this study employed the manual content analysis technique to collect and analyse CSRD data. A statistical analysis technique was also used to examine the hypothesized relationships between collected data on CSRD and profitability. Findings: The findings indicate that CSRD is value-relevant. It is positively and statistically associated with firm value proxied by Tobin's Q. In addition, it is positively and statistically associated with firm financial performance proxied by ROE and ROA. Research limitations/implications: This study contributes to the research debate on the relationship between CSRD and CEP, particularly in developing nations. The study draws attention to the need for information on different dimensions of CSR, including human resource, environmental, product responsibility, and community participation, as disclosure on such dimensions is positively associated with profitability. Practical implications: The findings provide important implications for Jordanian corporate managers to maintain CSRD in their best interest. With more emphasis on disclosing stand-alone CSR reports, corporate managers can present more information on different dimensions of CSR, attracting the attention of stakeholders such as investors, the government, media, and humanitarian activists and enhancing overall corporate goodwill. Originality/value: CSRD activities reflect a positive impact on CEP. Due to the dearth of relevant research conducted in developing countries, this study provides empirical evidence on the positive relationship between CSRD and CEP in an emerging economy, with more emphasis on specific dimensions of CSR, including human resources, environmental, product responsibility, and community participation. Since multiple proxies exist to measure profitability, this study uses multi-approaches for profitability examination proxied by Tobin's Q, ROE, and ROA. Moreover, the issue of CSR is original and interesting to be examined in the Jordanian context, where the listed firms have reported a homogeneous perception of CSR. [ABSTRACT FROM AUTHOR]

Purpose: The authors present a dynamic macroeconomic model for assessment of disaster risk reduction (DRR) policies under multiple hazards. The model can be used to analyze and compare various potential policies in terms of their economic consequences. The decomposition of these effects into multiple benefits helps policy makers and other stakeholders better understand the ex ante and ex-post advantages of DRR investments. The purpose of this paper is to address these issues. Design/methodology/approach: A dynamic real business cycle model is at the core of this research. In the model multiple natural hazards modeled stochastically cause shocks to the economy. Economic outcomes, most importantly, output can be assessed before and after disasters and under various DRR policies. The decomposition of benefits aims to quantify the concept of triple dividends. Findings: In case study applications in Tanzania and Zambia, the authors find that investments into physical infrastructure and risk transfer instruments generate a variety of benefits even in the absence of disaster. A land use restriction with planned relocation for example reduces output in the short run but in the long run increases it. Overall, policy effects of various DRR interventions evolve in a nonmonotonic manner and should be evaluated over a long period of time using dynamic simulation. Originality/value: The novelty of this study lies in the economic quantification of multiple benefits described in the triple dividends literature. This helps comparing ex ante, ex-post and volatility-related economic effects of multiple disasters and related physical and financial DRR investment options. As observed in the case studies, the model can also identify overlooked temporal heterogeneity of co-benefits of DRR investments. [ABSTRACT FROM AUTHOR]

Purpose: Maintenance is a critical business function with a great impact on economic, environmental and social aspects. However, maintenance decisions' planning has been driven by merely economic and technical measures with inadequate consideration of environmental and social dimensions. This paper presents a review of the literature pertaining to sustainable maintenance decision-making models supported by a bibliometric analysis that seeks to establish the evolution of this research over time and identify the main research clusters. Design/methodology/approach: A systematic literature review, supported with a bibliometric and network analysis, of the extant studies is conducted. The relevant literature is categorized based on which sustainability pillar, or possibly multiple ones, is being considered with further classification outlining the application area, modeling approach and the specific peculiarities characterizing each area. Findings: The review revealed that maintenance and sustainability modeling is an emerging area of research that has intensified in the last few years. This fertile area can be developed further in several directions. In particular, there is room for devising models that are implementable, based on reliable and timely data with proven tangible practical results. While the environmental aspect has been considered, there is a clear scarcity of works addressing the social dimension. One of the identified barriers to developing applicable models is the lack of the required, accurate and timely data. Originality/value: This work contributes to the maintenance and sustainability modeling research area, provides insights not previously addressed and highlights several avenues for future research. To the best of the authors' knowledge, this is the first review that looks at the integration of sustainability issues in maintenance modeling and optimization. [ABSTRACT FROM AUTHOR]

Purpose: This paper explores the effect of natural disasters on the profitability and solvency of US banks. Design/methodology/approach: Employing a sample of 187 large-scale natural disasters that occurred in the United States between 2000 and 2014 and a sample of 2,891 banks, we examine whether and how disaster-related damages affect various measures of bank profitability and bank solvency. We differentiate between different types of banks (with local, regional and national operations) based on a breakdown of their state-level deposits and explore the reaction of these banks to damages weighted by the GDP of the states they operate in. Findings: We find that natural disasters have a pronounced effect on the net-income-to-assets and the net-income-to-equity ratio of banks, as well as the banks' impaired loans and return on average assets. We also observe significant effects on the equity ratio and the tier-1 capital ratio (two solvency measures). Interestingly, the latter are positive for regional banks which appear to benefit from increased customer deposits related to safekeeping, government payments for post-disaster recovery, insurance payouts and decreased withdrawals, while they are significantly negative for banks that operate locally or nationally. Originality/value: We contribute to the literature by offering various new insights regarding the effects natural disasters have on financial institutions. With climate change-driven natural disasters widely expected to increase both in terms of frequency and severity, their economic fallout is likely to impose an increasing burden on financial institutions. Large, nationally operating banks tend to be well diversified both geographically and in terms of their product offerings. Small, locally operating banks, however, are increasingly at risk – particularly if they operate in disaster-prone areas. Current banking regulations generally do not factor natural disaster risks into their capital requirements. To avoid the next big financial crisis, regulators may want to adjust their reserve requirements by taking this growing risk exposure into consideration. [ABSTRACT FROM AUTHOR]

Purpose: Given the scarcity of data during the early stages of the COVID-19 pandemic in China, the decision-making for non-pharmaceutical policies was mostly based on insufficient evidence. The purpose of this study is to assess the effectiveness of these policies, such as lockdown and government subsidies, on rural households and identify policy implications for China and other countries in dealing with pandemics. Design/methodology/approach: The authors survey 2,408 rural households by telephone from 101 counties across 17 provinces in China during the first stage of the pandemic (March 2020). The authors use the ordered probit model and linear regression model to study the overall impact of policies and then use the quantile regression model and sub-sample regression method to study the heterogeneity of the effects of government policies. Findings: The authors find that logistics disruption due to lockdown negatively affected rural households. Obstructed logistics is associated with a more significant loss for high-income households, while its impact on the loss expectation of low-income households is more severe. Breeding and other industries such as transport and sales suffer more from logistics than cultivation. The impact of logistics on intensive agricultural entities is more serious than that on professional farms. The government subsidy is more effective at reducing loss for low-income households. Lockdown and government subsidies have shown heterogeneous impacts on rural households. Practical implications: The overall economic losses experienced by rural households in the early stages of the pandemic are controllable. The government policies of logistics and subsidies should target specific groups. Originality/value: The authors evaluate the economic impacts of lockdown and government subsidies on rural households and show their heterogeneity among different groups. The authors further demonstrate the policy effectiveness in supporting rural households during the early stages of the pandemic and provide future policy guidance on major public health event. [ABSTRACT FROM AUTHOR]

Purpose: The political influence on the determinants of capital structure has been under-researched for a long time. Taking the turnover of secretary of municipal committee as a political factor in China, this paper studies the effect of local government officials' turnover on firm's capital structure. Design/methodology/approach: Starting with all A-shares listed firms in the Shanghai and Shenzhen Stock Exchanges from 2001 to 2018, this paper implements the OLS estimation, staggered difference-in-difference approach to investigate the effects of political turnover on the choice of capital structure. Findings: The results show that, driven by government officials' turnover, firms will significantly reduce their leverage. When comparing between formal finance (bank loans) and informal finance (payables), the reduction of capital structure is mainly driven by banks, not by suppliers. Furthermore, two possible channels have been investigated. First, the reduction effects are mainly driven by the SOEs when classifying the types of corporate ownership into SOEs and non-SOEs. Second, the reduction effects exist in areas with the more intense government intervention when considering the heterogeneity of the development of institutional environment in provinces. Originality/value: This paper first contributes to the literature on the determinants of corporate choice on capital structure. Second, this paper enriches the studies on the economic consequences of local government officials' turnover. [ABSTRACT FROM AUTHOR]

Purpose: The authors expand the connotation of the research on the accounting information quality characteristics, provide empirical evidence for the factors of consistency and also help to deepen further their understanding of the economic consequences of ownership concentration and other ownership structures. Design/methodology/approach: Using financial data of Chinese listed companies as samples, coupled with a method to calculate the consistency of the sample enterprises on the corporate level in the 2007–2019 period, the authors studied its impact of ownership concentration on consistency. Findings: The study finds that after controlling other factors, ownership concentration could significantly reduce accounting information consistency. Further research finds that when the executives' shareholding is higher, the reduction effect of ownership concentration on consistency is weaker. After the robustness test, the conclusion remains basically unchanged. Research limitations/implications: First, maybe there is a limitation of De Franco et al. (2011) method the authors use in China. As some scholars pointed out, the systematic component of returns variation is large in emerging markets (Morck et al., 2000), so it is hard to determine to what extent market stock returns will capture the net effect of earnings. As is mentioned above, there are multiple methods for measuring comparability and consistency, but it is not easy to judge which way is the best. Maybe the authors will have a perfect process in the future. Second, in addition to the factors mentioned in this study's hypotheses, there should be other factors (these include internal factors and external factors) that play moderating role in the impact of ownership concentration on accounting information consistency. The authors have not thoroughly studied the effect of those factors. These limitations all need to be further explored in the future. Originality/value: The study finds that after controlling other factors, ownership concentration could significantly reduce accounting information consistency, but the reduction will be affected by some other factors related to corporate governance. The new insights from these advances are that the conclusions provide a technical path for management of companies to improve corporate governance efficiency and the quality of accounting information, and also provide more reference and empirical evidence for information users to identify the company's accounting information quality, which contributes to creating a prerequisite for the usefulness of accounting information. [ABSTRACT FROM AUTHOR]

Purpose: The authors investigate the effect of audit quality and analysts' coverage on firms' compliance concerning goodwill impairment testing and disclosure requirements with the Indian Accounting Standard (Ind AS) over the period of 2017–2020. Design/methodology/approach: The authors conduct univariate analysis and employ pooled ordinary least square (POLS) and Fama–MacBeth (FMB) regression techniques for empirical testing. Findings: The authors report a substantially higher disclosure score (DS) for firms with superior audit quality and for firms with incidence of analysts' coverage. Moreover, the authors show a positive impact of audit quality on the firm's degree of disclosure. This signifies better compliance by the clients of Big-4 audit firms in the enforcement of standard's mandates. Besides, the results on analysts' coverage indicate that the increasing number of analysts discipline managers in terms of appropriate compliance with disclosure requirements, hence favours the monitoring effect hypothesis for Indian firms. The results are robust to the alternate measures of key regressors, set of firm controls and alternate estimation technique. Originality/value: The study adds to the knowledge concerning the economic consequences of mandatory disclosures and is possibly the first to investigate compliance related to goodwill impairment disclosure regime under the new Ind AS. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate the dynamic relationship between 19 pandemic and government actions, such as governmental response index and economic support packages. Design/methodology/approach: The authors use a panel dataset of 10 American and Latin countries for the period spanning from January 2020 to April 2021 to analyze the effect of government actions on stock market returns. The authors provide robust test results that improve the understanding of the impact of the pandemic on stock market indices through the break-up structure method and the new measure of Covid-19 extracted from Narayan et al. (2021) study. Findings: Empirical results show the harmful effect of the corona virus on stock prices, hence the risk adverse behavior of investors. On the other hand, the quantitative approach reveals that the positive impact of government actions is degraded during Covid-19. Originality/value: This article highlight that government actions may be effective in reducing new infections but could generate perverse economic impact through increasing uncertainty. The authors conclude that the adjustment of macroeconomic factors and the integration of financial news improve the forecasting performance of the model based on health news. [ABSTRACT FROM AUTHOR]