Purpose This paper aims to explore the nexus between corporate governance, competition and earnings management (EM) in Asian emerging economies. Design/methodology/approach The authors used a sample of 116 banks from 10 Asian emerging economies from 2010 to 2021. To measure corporate governance, the board size, chief executive officer duality and ownership concentration are used. Competition is captured with Herfindahl-Hirschman Index (HHI) and Lerner index (LI). Although earning management is measured through discretionary accruals. The authors use fixed effect regression for hypothesis testing. However, dynamic panel system generalised method of moments estimation is used to confirm the robustness of the results. Findings The authors find that corporate governance and competition are significantly related to earning management practices of banks in emerging Asian economies. The authors report similar outcomes with both estimation methods verifying the reliability of results. Originality/value The findings of the study have implications for corporate regulatory authorities, management and investors in the Asian emerging economies. Banks in the Asian emerging economies need to pay more attention to factors such as governance and competition to avoid EM.
PurposeThe manufacturing sector plays an important role in any economy. The sector opts for diversification techniques and CSR initiatives in a competitive business environment for growth, survival and reputation. This study examined the impact of corporate diversification and CSR on the financial performance of South Asian manufacturing firms.Design/methodology/approachData is obtained from the financial statements of 350 listed South Asian manufacturing firms as well as the respective stock exchanges of these countries. The data for research analysis ranges from 2010 to 2020. Diversification is measured using product diversification and geographic diversification. CSR is quantified in terms of social contribution value. Accounting measurements (ROA and ROE) are also used to capture corporate performance. For hypothesis testing, the study also uses fixed effect panel regression, and for assessing the robustness of the findings, the two-step dynamic panel system-GMM regression approach is used.FindingsFindings of study indicate a positive impact of product and geographic diversification on financial performance measured with ROA. However, geographic diversification is insignificantly linked with ROA and ROE. Further, CSR positively impacts the performance of firms in South Asia with both performance measures.Originality/valueThe study has several policy implications based on the findings, including the need for the manufacturing sector to practice and implement appropriate diversification approaches and CSR initiatives to improve its financial performance and reputation.
This paper examines the dynamics of volatility transmission in the forex market using high-frequency data for five exchange rates (EUR/USD, EUR/JPY, EUR/CHF, EUR/GBP and EUR/AUD) from January 2004 to October 2014. We apply a multivariate HAR model in which the daily realized volatility of a given exchange rate depends on both its own lags and the lagged realized volatilities of the other exchange rates. Furthermore, this model is able to identify short-term, medium-term, and long-term transmission effects. We also find evidence of statistically significant volatility transmission between exchange rates in the forex market, especially during periods marked by market uncertainty. JEL classification numbers: C5, F31, G15. Keywords: Foreign exchange markets, Realized volatility, High-frequency data, Volatility transmission, HAR model, DCC-GARCH.
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