International Journal of Managerial Finance最新文献

{"title":"Examining the Indonesian dual banking system: an exploration of market discipline indicators","authors":"Nurhastuti Kesumo Wardhani, Robert Faff, Lewis Liu, Zairihan Abdul Halim","doi":"10.1108/ijmf-01-2024-0004","DOIUrl":"https://doi.org/10.1108/ijmf-01-2024-0004","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This research aims to investigate the disciplinary functions of depositors and subordinated debt holders within Indonesia's dual banking system, examining the impact of regulatory changes on market discipline.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The study employs a comprehensive analysis of the dual banking system in Indonesia over 15 years. Utilizing a non-public dataset from the Financial Services Authority and the Indonesia Deposit Insurance Corporation, the study employs propensity score matching and difference-in-differences analysis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings reveal distinct patterns in the exercise of market discipline by depositors over different regulatory regimes. During the blanket guarantee regime (2002–2005), depositors lacked the incentive to monitor banks but resumed their disciplinary role under the limited guarantee regime (2005–2017). Islamic banks faced simultaneous market and regulatory discipline, with market discipline prevailing.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the literature by providing novel insights into the interplay between regulatory changes, market discipline and depositor behavior within Indonesia's dual banking system. The utilization of a comprehensive non-public dataset from regulatory authorities adds to the originality of the research.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142269923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"CEO compensation and bank’s performance following bank-rescue","authors":"Rukaiyat Adebusola Yusuf, Mamiza Haq","doi":"10.1108/ijmf-09-2023-0469","DOIUrl":"https://doi.org/10.1108/ijmf-09-2023-0469","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper examines the effect of restrictions on executive pay and high CEOs’ compensation on bank performance following the “2008 UK bank rescue policy”.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using the difference-in-difference estimation technique we assess the relationship between executive compensation and financial performance of rescued banks relative to non-rescued banks over the period 1999–2019.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Our main finding indicates that the relationship between executive compensation and financial performance declines in rescued banks relative to non-rescued banks. Further, we document that performance continues to deteriorate in rescued banks relative to non-rescued banks. Our results are robust to different estimation techniques.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study contributes to the literature that examines the efficacy of government bailouts during the 2008 crisis. To the best of the author’s knowledge, this study is among the first to examine the long-term implications of bank rescue and pay restrictions on executive compensation and performance post–rescue.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142265896","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does corporate sustainability performance matter for cash holdings? International evidence","authors":"Ly Ho, Yue Lu","doi":"10.1108/ijmf-01-2024-0052","DOIUrl":"https://doi.org/10.1108/ijmf-01-2024-0052","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>We examine the impact of corporate sustainability performance (CSP) on corporate cash holdings, focusing on the moderating impacts of industry’s concentration, financial constraints, and institutional environments.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The empirical analysis is conducted on a sample of 31 countries from 2002 to 2018. We use the pooled OLS regressions controlling for fixed effects. We further address endogeneity issues using an instrumental variable approach, the Difference-in-Differences regression based on an exogenous shock, and the propensity score matching.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>We find that firms with superior CSP hold more cash. This result is valid after a series of tests for robustness and endogeneity issues, suggesting a causal effect of CSP on corporate cash holdings. In the cross section, the positive impact of CSP on cash holdings is more pronounced for firms operating in highly concentrated industries, but attenuated for firms with financial constraints and for those operating in countries with better institutional environments. We further show that CSP affects cash holdings through the channel of financial distress risk.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>In making investment decisions, investors should not only examine corporate financial performance and sustainability profile, but also understand the related cash holding levels and financial distress costs. Corporate managers making decisions on levels of cash holdings should pay more attention to their sustainability behavior, especially for firms operating in concentrated industries and/or facing financial constraints. Governments and authorities can apply regulations to encourage firms to engage more in sustainable activities, as well as establish good institutional environments in the country.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Using a comprehensive international dataset, our paper contributes to two strands of literature: the economic impact of CSP and the driver of cash holdings. We further focus on the moderating role of industry concentration and firms’ financial constraints. Our international sample also allows us to exploit the effect of country-level informal institutions.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142221621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Nonfinancial 8-K disclosures and individual investors' trading during earnings announcement window","authors":"Jinglin Jiang, Weiwei Wang","doi":"10.1108/ijmf-07-2023-0341","DOIUrl":"https://doi.org/10.1108/ijmf-07-2023-0341","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study investigates the influence of nonfinancial 8-K disclosures released during the earnings announcement window on the abnormal trading activities of individual investors.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>We employ regression analysis in this empirical study to examine the impact of nonfinancial 8-K filings on individual investors' abnormal trading activities.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Our results reveal that individual investors exhibit higher levels of abnormal trading activities when firms release nonfinancial 8-Ks during the (0,1) window of earnings announcements. This effect is observed for both buyer-initiated and seller-initiated transactions and is particularly pronounced for firms reporting an operating loss. Negative sentiment in 8-Ks significantly intensifies such effect. Additionally, we find that buy-sell consensus increases significantly with concurrent nonfinancial 8-Ks. This suggests that 8-Ks may reduce information noise, leading individuals to trade with greater conviction.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Our study examines the joint influence of nonfinancial 8-Ks and earnings announcements on individual investors' trading activities, thereby providing a novel perspective on the mechanisms through which 8-K filings affect individual investors' trading behaviors.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142221637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Corporate governance and capital structure dynamics: evidence from an emerging market","authors":"Muhammad Farooq, Muhammad Imran Khan, Qadri Aljabri, Muhammad Tahir Khan","doi":"10.1108/ijmf-03-2023-0167","DOIUrl":"https://doi.org/10.1108/ijmf-03-2023-0167","url":null,"abstract":"PurposeThis study aims to examine the impact of corporate governance on the speed of adjustment (SOA) of capital structure in a developing market, Pakistan.Design/methodology/approachThe study's sample includes 173 non-financial enterprises that were listed on the Pakistan Stock Exchange (PSX) between 2011 and 2020. The capital structure of the sample companies is determined by the ratio of total debt to total debt plus the market value of equity. Corporate governance is measured by board size, independence, CEO duality, management ownership, blockholders ownership and institutional ownership. A two-step difference GMM model was used to achieve the study's objectives.FindingsThrough applying the reduced form model approach, we discovered that corporate governance variables have a considerable negative impact on the speed of targeted leverage adjustment in sample firms. Additionally, to check the robustness of results, the two-stage technique used to examine this corporate governance-SOA relationship. Furthermore, we discovered that smaller enterprises modify their capital structure more than larger firms. Furthermore, corporations prioritize short-term debt adjustment above long-term debt adjustment.Practical implicationsThe study's findings provide further information to company managers and investors on the relationship between corporate governance quality and the pace of adjustment towards targeted leverage across Pakistani enterprises. Furthermore, this study adds new information from growing countries such as Pakistan to the existing literature, which can help regulatory authorities and policymakers improve the quality of corporate governance. It is commonly known that improving the quality of corporate governance practices improves the firm's capital structure, which benefits all stakeholders.Originality/valueIn the context of developing economies, the academic literature lacks research that examine the impact of corporate governance on dynamic capital structure decisions. This study intends to fill this gap.","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141810181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How to make ladies take higher risk? Female executives and corporate risk-taking in China: board social capital and marketization","authors":"Xin Liu, Shengda Cui, Chenxi Du, Eric R. Brisker","doi":"10.1108/ijmf-10-2023-0494","DOIUrl":"https://doi.org/10.1108/ijmf-10-2023-0494","url":null,"abstract":"PurposeThe purpose of this paper is to examine the relationship between Chinese female executives and corporate risk-taking the contingencies that affect this relationship.Design/methodology/approachA integrated theoretical framework was established, on the basis of which theoretical hypotheses were developed and tested using 20,315 firm-year observations collected from China’s publicly listed companies during the period 2005–2020. Data were collected from China's Shanghai and Shenzhen A-share Stock Exchanges and analyzed using a moderated regression analysis, PSM, 2SLS-IV and PSM-DID model.FindingsThe empirical results indicate a negative effect of the ratio of female executives in top management team on corporate risk-taking, and this negative effect can be weakened by the social capital of board directors and the regional marketization.Research limitations/implicationsThe paper contributes to research on the relationship between female executives and risk-taking by considering the effect of eastern culture on female executives’ business decision-making and examining the moderating factors inside and outside the firm.Practical implicationsThe paper illustrates the active steps that corporations can take to enhance female executives' willingness and capacity to take firm-related risks so as to improve the firm value in the long run.Originality/valueThe paper explores how Chinese culture and Chinese traditional value affect female executives’ decision-making on risky projects or uncertain investments. In addition, our study for the first time examines the moderating effect of board social capital as an internal factor and marketization as an external one on the relationship between Chinese female executives and corporate risk taking. The research examines the gender inequality in the work and competitive environment facing female executives in the areas of different marketization level, which would affect female executives’ cognition and motivation in corporate risk taking.","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141666308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Better things to do or doing nothing at all? – the implications of incomplete share repurchase programs","authors":"Julian U. N. Vogel","doi":"10.1108/ijmf-12-2023-0612","DOIUrl":"https://doi.org/10.1108/ijmf-12-2023-0612","url":null,"abstract":"Purpose Share repurchase programs are the most important form of payout, yet the implications of incomplete share repurchase programs have not been examined in previous literature. This study tests whether incomplete share repurchase programs are seen as a positive or as a negative signal by investors.Design/methodology/approach The perception of incomplete share repurchase programs by algorithmic traders, institutional investors and analysts is analyzed with structural equation models, seemingly unrelated regressions, propensity score matching and buy-and-hold abnormal returns on data from share repurchase programs in the United States. In contrast to previous literature, algorithmic trading is appropriately estimated as a latent variable, leading to more reliable results. Furthermore, decisions about share repurchases and dividends are appropriately modeled simultaneously and iteratively, based on findings from previous literature.Findings The results show that sophisticated investors such as algorithmic traders, institutional investors and financial analysts avoid incomplete share repurchase programs over a long-term investment horizon. Thus, incomplete share repurchase programs are interpreted as negative signals. Additional analyses reveal that share repurchase programs are not completed due to insufficient cash flow, as a result of financial difficulties. Overall, this implies that financial managers should be careful to announce share repurchase programs they know cannot be completed, similar to dividends that cannot be maintained over a long-term horizon.Originality/value This study is the first to consider incomplete share repurchase programs. The findings are of interest to scholars and practitioners, as this study goes beyond narrow repurchase program announcement windows, and instead focuses on the longer-term investment horizon over the life of the share repurchase program, which is often ignored in prior research.","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141670323","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Green credit and bank’s risk-taking: evidence from China","authors":"Jianbo Song, Wencheng Cao, Yuan George Shan","doi":"10.1108/ijmf-03-2024-0144","DOIUrl":"https://doi.org/10.1108/ijmf-03-2024-0144","url":null,"abstract":"PurposeThis study uses data from the Chinese banking sector to explore the relationship between green credit and risk-taking in commercial banks. It also examines whether the level of regional green development acts as a moderator regarding this relationship.Design/methodology/approachUsing a dataset composed of annual observations from 57 Chinese commercial banks between 2008 and 2021, this study employs both piecewise and curvilinear models.FindingsOur results indicate that when the scale of green credit is low (<0.164), it increases the risk-taking of commercial banks. Conversely, when the scale of green credit is high (>0.164), it reduces the risk-taking of commercial banks. Moreover, this nonlinear relationship impact exhibits bank heterogeneity. Furthermore, the results show that the level of regional green development and local government policy support negatively moderate the relationship between green credit and commercial bank risk-taking. Furthermore, we find that green credit can directly enhance the net interest margin of commercial banks.Originality/valueThis study is the first to provide evidence of a nonlinear relationship between green credit and risk-taking in commercial banks, and it identifies the significant roles of regional green development level and local government policy support in the Chinese context.","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2024-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141675425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Trust and SME short-term financial policy. European evidence","authors":"Paulo M. Gama, Elsa Pedroso","doi":"10.1108/ijmf-12-2022-0557","DOIUrl":"https://doi.org/10.1108/ijmf-12-2022-0557","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large firms. Our paper aims to provide a comprehensive analysis of the impact of societal trust on short-term financial policies of SMEs, namely working capital management and cash holdings.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>We rely on a sample of 14,711 privately owned medium-sized manufacturing firms from 26 European countries with a sample period between 2014 and 2020. For estimation, we use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>We show a positive relationship between trust and working capital requirements investment and a negative relationship between trust and the level of cash holdings. Moreover, we show that trust attenuates the negative impact of being a financially constrained firm and the positive impact of national perceptions of corruption. Finally, in higher trustworthy environments, firms operate with relatively higher inventories and relatively lower trade credit granted and obtained.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>Results suggest that policies supporting societal trust may also foster business development and that when dealing with clients or suppliers from different trustworthy environments, firms may have to adapt their business models to incorporate trust differences between business environments.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Firstly, the comprehensive analysis of the impact of trust on working capital management and cash holdings while controlling for different firm-level and country-level known determinants of short-term financial management. Secondly, it addresses a European sample of unquoted, medium-sized firms. Thirdly, it studies the combined effect of trust and financial constraints and trust and corruption.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141549519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Managerial sentiment, life cycle and corporate investment: a large language model approach","authors":"Anamika Rana, Asis Kumar Sahu, Byomakesh Debata","doi":"10.1108/ijmf-12-2023-0617","DOIUrl":"https://doi.org/10.1108/ijmf-12-2023-0617","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This paper investigates the relationship between managerial sentiment and corporate investment in emerging capital markets. Further, we begin with the assertion that the positive impact of managerial sentiment on corporate investment varies according to the corporate life cycle. Lastly, we investigate whether the relationship between managerial sentiment and corporate investment can be moderated by factors like (1) economic policy uncertainty/geo-political risk, (2) size of the firm, (3) financial constraint, (4) industrial competition, and (5) Environmental Social and Governance (ESG) rating.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study has considered Indian listed companies (465 firms) for the period spanning from 2003–2004 to 2022–2023. This study constructs the managerial sentiment using a novel large language model-financial bidirectional encoder representation from the Transformers (FinBERT), as well as on management discussion and analysis reports. Then, we employ fixed effect regression to investigate the relationship between managerial sentiment and corporate investment. Additionally, we use propensity score matching, two-stage least squares instrumental variables, and a two-step system generalized method of moments approach for robustness tests.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings show a positive and significant relationship between managerial sentiment and corporate investment. Additionally, our results demonstrate that this relationship is evident only during the growth and maturity phase of the corporate life cycle. Moreover, uncertainty pertaining to the economy and geopolitical issues, firm size, financial health, industry dynamics, and ESG disclosure also play a crucial role in shaping the investment-sentiment relationship.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The study is unique because it determines the relationship between managerial sentiment and corporate investment by using the novel FinBERT model. In addition, we have introduced a corporate life cycle, which is an essential aspect of our study. Additionally, this research was conducted in an emerging market with more information asymmetry and weaker disclosure rules. Thus, other emerging markets can benchmark the outcomes.</p><!--/ Abstract__block -->","PeriodicalId":51698,"journal":{"name":"International Journal of Managerial Finance","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141511625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}