The ascension of executives' tenure, corporate risk-taking and corporate performance: evidence from Malaysia

Atayah, Osama F.; Najaf, Khakan; Subramaniam, Ravichandran; Chin, Phaik Nie

doi:10.1108/apjba-05-2021-0189

Cited by 21 publications

(20 citation statements)

References 75 publications

(86 reference statements)

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“…On the other hand, Helbok and Wagner (2006) and Horing and Grundl (2011) reveal a negative impact of operational risk disclosure on financial performance of international banks as measured by return on equity (ROE) for European insurers. Recent studies such as Ataya et al (2021aAtaya et al ( , 2021b and Buallay et al (2021) find that some environmental, social and governance (ESG) and corporate risk measures weaken corporate performance. Hence, we test the following hypothesis:…”

Section: Impact Of Risk Disclosurementioning

confidence: 99%

Impact of risk disclosure on the volatility, liquidity and performance of the UK and Canadian insurance companies

Kassamany

Harb

Louhichi

et al. 2022

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Purpose This paper aims to investigate the impact of risk disclosure practices (voluntary, mandatory and risk disclosure index) on stock return volatility, market liquidity and financial performance for insurance companies in the UK and Canada, before and after the International Financial Reporting Standards (IFRS) adoption. Design/methodology/approach The panel data analysis covers 14 insurance companies in the UK and 12 in Canada over a six-year period, three years before and three years after the implementation of IFRS. The authors collected risk disclosure data manually from the annual reports and analyzed it through QSR NVivo software for each country. The other variables are secondary data collected from Thomson Reuters Eikon and Datastream. Findings The results reveal that mandatory risk disclosure practices positively influence stock return volatility for UK insurers but not Canadian ones. Moreover, both mandatory and voluntary risk disclosures increase market liquidity for UK insurers. The outcomes also show a negative influence of risk disclosure practices on financial performance for both the UK and Canadian insurers. The adoption of IFRS enhances the impact of risk disclosure practices in both countries on market liquidity and financial performance. Research limitations/implications The findings rationalize the impact of risk disclosure practices on volatility, liquidity and financial performance of UK and Canada insurers, and the effect of IFRS in triggering those results. Practical implications The findings highlight the diverse effects of voluntary and mandatory risk disclosure practices in enhancing market discipline and mitigating information asymmetry problems to investors. Regulators and policymakers could rely on the findings to amend and develop disclosure standards more frequently to assure their effectiveness. The authors also offer insights to managers to determine the levels of mandatory and voluntary disclosure practices and disclosure strategies to gain their stakeholders’ confidence. Originality/value This study contributes to the literature of risk disclosure in the insurance industry for both the UK and Canada where scarce studies are conducted. It also offers interesting implementations to investors, managers and policymakers.

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Section: Impact Of Risk Disclosurementioning

confidence: 99%

Impact of risk disclosure on the volatility, liquidity and performance of the UK and Canadian insurance companies

Kassamany

Harb

Louhichi

et al. 2022

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show abstract

“…Specifically, we apply the Granger causality test in a bi-variate framework and impose the restriction on the lagged value of the underlying variable to see whether the information regarding the number of cases and deaths has any influence on the next day stock returns. Because the Granger causality test results are sensitive to the specification of the VAR model, we apply the AIC for selecting optimal lag order for each variable included in the specification (Atayah et al, 2021a, Atayah et al, 2022Bashir et al, 2020aBashir et al, , 2020bBashir et al, , 2020cBashir et al, , 2020dDhiaf et al, 2021). Table 5 reports the calculated value of the F statistics, which tests the restriction imposed on the lagged values of the independent variable.…”

Section: Resultsmentioning

confidence: 99%

Does COVID-19 influence the maturity management of industrial sectors? Evidence from global data

Najaf

Rashid²,

Ko³

et al. 2022

JGOSS

Self Cite

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Purpose This study aims to understand how the COVID-19 pandemic dramatically impacts the maturity of all industrial sectors globally. This paper analyses the general patterns of managing maturity in terms of performance and risk-taking of S&P 500 industrial sectors while determining their association with COVID-19. Design/methodology/approach To analyse the immediate response of COVID-19 on maturity management, the authors gather time-series daily index data of S&P sectors from October 2019 until June 2020 from Bloomberg. The authors select this study period to show the immediate effect of COVID-19 on industrial sector maturity management. The performance and volatility of stock are proxies for managing the maturity of each sector. The authors use vector auto-regression (VAR) methodology to determine the impact of global coronavirus. Findings This study’s findings suggest that the information technology sectors outperform the other sectors; in contrast, the utility sector exhibits the worst performance during a pandemic. Furthermore, the real estate sector depicts a higher level of systematic risk pattern than other sectors. Interestingly, the empirical result of VAR shows that almost every sector is significantly negatively affected by this pandemic; however, the consumer discretionary sector is immune to it. Research limitations/implications Overall, this study’s findings for individual economic sectors demonstrate that the managing maturity of each sector acts differently to the coronavirus outbreak. This study offers insights to researchers, policymakers, regulators, financial report users, investors, employees, clients and society. Originality/value This paper contributes to the existing literature on managing the maturity of industry sectors in terms of observing their trends during the financial crisis.

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“…Moreover, as highlighted in Atayah et al (2021b), corporate risk-taking behavior depends on the top executives’ experience and preferences to handle risk management strategies. Najaf and Najaf (2021a) discuss the role of government entities in developing sustainable strategies at the corporate level.…”

Section: Discussion and Concluding Remarksmentioning

confidence: 99%

Bridging the supply chain resilience research and practice gaps: pre and post COVID-19 perspectives

Sarkar

Wahab

Tkachev

2022

JGOSS

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Purpose In light of the COVID-19 pandemic, all business sectors have critical needs. They face multiple challenges to restructuring their operations to build a resilient, cost-effective and sustainable supply chain. Therefore, this paper aims to investigate the practice and the research gaps related to supply chains. Design/methodology/approach This research paper is influenced by a literature review of the past decade. This review paper incorporates industry challenges of the COVID-19 pandemic, including future steps toward developing resilient supply chains in the new normal economy. The research provides a detailed framework for designing cost-effective survivable supply chains that withstand disruptions for the long term. Findings The proposed research focuses on the effects of the COVID-19 pandemic on supply chains and attempts to bridge pre and post COVID-19 research and practice gaps. Post-COVID-19 resilient supply chains need to be transformed into survivable supply chains. The survivability of the supply chain can be achieved by combining both supply chain resilience and supply chain viability measures. To the best of the authors’ belief, this is the first study that grounds a theory to provide interconnection of five critical supply chain concepts to manage supply chain risk. This study is uniquely positioned to develop a theoretical framework to design a cost-effective, resilient and sustainable supply chain by establishing the interconnection among these concepts in supply chains. This framework helps practitioners to implement the key strategies at the operational, tactical and strategic levels that enhance maturity in supply chains. Research limitations/implications The research findings are based on secondary reports such as industry reports, cases, research papers and expert opinions. The authors tried to consult with many companies. However, they were reluctant to share the recovery plan information from COVID. Also, as COVID still exists in many places in Canada, the authors could not gather every intended information from the companies. However, the authors have successfully shared the outcomes of this research with a reputed retail company in Canada. They recognized the importance of survivability in supply chains. Going forward, business organizations need to design cost-effective, sustainable and survivable supply chains. Originality/value The study attempts to unify current research dealing with supply chain resilience. The study concludes with the limitations of the current research. It highlights the prospects of future research and bridges the supply chain practice gaps from the challenges faced by industries due to COVID-19. The study contributes to the literature by identifying gaps to bridge the supply chain practice and reiterating new research directions to develop a cost-effective, survivable and sustainable supply chain.

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The ascension of executives' tenure, corporate risk-taking and corporate performance: evidence from Malaysia

Cited by 21 publications

References 75 publications

Impact of risk disclosure on the volatility, liquidity and performance of the UK and Canadian insurance companies

Impact of risk disclosure on the volatility, liquidity and performance of the UK and Canadian insurance companies

Does COVID-19 influence the maturity management of industrial sectors? Evidence from global data

Bridging the supply chain resilience research and practice gaps: pre and post COVID-19 perspectives

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