This paper aims to examine the effect of board gender diversity on firm risk taking and firm financial performance. Based on a sample of 100 UK listed companies covering a 5-year period from 2010-2014, the authors use different econometric methods and find that greater female presence on company boards has a positive effect on firm financial performance and a negative effect on firm risk-taking. Our results are consistent with the perspectives of agency theory and resource dependence theory. This...

An insightful problem of passive management is considered, where an aggregate portfolio is rebalanced annually to restore the percent weights of its strategic asset allocation. As its annual total returns are assumed to be time uncorrelated and lognormally distributed, multi-period optimization boils down to single period optimization. Expanding on previous theoretical results, it is shown how a minimum-variance set based on linear returns turns into a minimum-variance set based on logarithmic returns....

The aim of this research is to study the relationship between government effectiveness, control of corruption and regulatory quality on one hand, and economic growth, on the other hand, among the Gulf Cooperation Council (GCC) countries, using the panel Vector Error Correction Model (VECM) following Johansen’s procedure, for the period 2002-2015.Study findings indicate that government effectiveness, control of corruption and regulatory quality have a strong impact on economic growth in the long...

This study examines the impact of dividend payout on the market value of selected Bangladeshi firms. Generalized method of moments (GMM) technique have been applied to estimate the dynamic regression models using a panel data of 198 companies listed on the Chittagong Stock Exchange (CSE) during 2003 to 2015. A statistically significant positive relationship is found between pay out and market value of the sample companies. Therefore, the Dividend Irrelevance Proposition of Modigliani and Miller have...

The impact of comprehensive income (CI) in banks and financial institutions, in terms of value relevance compared to net income (NI), has been inadequately investigated. Most studies omit the banking sector, therefore this study is focused on value relevance of accounting data and uses a sample of financial entities in major European countries for the comparison between CI and NI, with particular attention to the company size. The company size is studied by splitting the sample in three size groups....

The significance of enhancement in energy consumption in order to boost the respective national output level within any economy cannot be denied. Moreover, the United Nation’s 2030 Sustainable Development agenda had also called for an improvement in efficiency of energy-use through the adoption of renewable energy technologies in particular, with the ultimate goal of attaining sustainability in global energy supply. The rationale behind escalating the associated efficiency levels is that by doing...

Assessing the insolvency risk is certainly a central issue for economic and financial analysis and of prime importance to financial intermediaries. Despite that, no agreement yet exists. Institutional factors specific to each country, as well as a large variety of other causes which can lead to the failure of a firm, obstruct the way to a general theory. It is instead necessary to deal with this issue, not only because it is central to credit management by banking operators, but also for its overall...

What is the link between governance and firm’ characteristics in forecast error? More specifically, how can female affect analyst forecast? This study sheds light on these questions while taking into account the endogeneity and granger causality test of the relationships among corporate governance and forecast error made by leaders. The authors make more additional contributions about female participation and forecast error to the literature. With a selective selection of the sample by eliminating...

Manufacturing companies operate in a dynamic environment and require to continuously cultivate firm-level strategies for performance improvement. Currently, the main discussion in social sciences has centred on the links between firm-level strategy, capabilities and performance with varied result. To investigate this connections, we gathered and analysed data from 125 Large-Scale Food and Beverage Manufacturing Companies (FBMC) in Kenya. The study covered a two year period. The paper tested the hypothesis...

This exploratory research aims to investigate (1) the strengths and weaknesses of the hospitality and tourism industry in terms of governance practices; and (2) the governance compliance level of the industry in Hong Kong. A rating instrument is created to test five major governance areas: ‘Board Responsibilities’, ‘Disclosure and Transparency’, ‘Equitable Treatment of Shareholders’, ‘Rights of Shareholders’ and ‘Role of Stakeholders’. Results show that companies perform best...