Purpose This study examines the effects of CLS and DS on companies' WCME and analyses the differe... more Purpose This study examines the effects of CLS and DS on companies' WCME and analyses the differences in WCME at company and market levels. Design/methodology/approach This study adopts the DEA approach, regression, differences, and additional analyses to achieve its objectives. This study employs 235 non-financial companies and 1,175 company-year observations from eight active industries in the United States from 2016 to 2020. Findings The findings indicate that CLS and DS strategies positively influence companies' WCME. Additionally, WCME differed across size categories and industries, with large companies and those operating in the communication services industry showing better WCME. By contrast, WCME did not differ between the periods before and during the COVID-19 pandemic. Practical implications This study scrutinizes the impact of CLS and DS strategies on companies' WCME to bridge the gap in this field. It extends the investigation of competitive strategies as explanatory variables for a company's WCME and examines the differences in companies' WCME at the company and market levels, which may assist decision-makers in improving their strategies and efficiencies for continuous improvement. Originality/value This study enhances current knowledge by uncovering the influence of CLS and DS strategies on improving companies' WCME, an underexplored topic. It also explores companies' WCME trends and patterns regarding company size, industry type, and the pandemic period to draw interesting conclusions about the essence of WCME.
PurposeThis study develops a robust model to measure intellectual capital efficiency (ICE). It al... more PurposeThis study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.Design/methodology/approachThis study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.FindingsThe findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.Practical implicationsThe results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments i...
This study explores the connection between business strategies, ESG performance, and the probabil... more This study explores the connection between business strategies, ESG performance, and the probability of bankruptcy. Using a sample comprising 1970 U.S. firm-year observations from 2016 to 2020, this study adopts several techniques to achieve its goals, including the partial least squares structural equation modeling (PLS-SEM) algorithm and additional analyses. The results demonstrate that a firm with a better cost leadership strategy has higher ESG performance. A sound cost leadership strategy and ESG performance negatively influence a firm’s likelihood of financial distress. Using a mediating analysis model, we also find that financial and ESG performance mediate and mitigate the probability of experiencing financial distress through a cost leadership strategy, indicating that these are essential factors that cannot be ignored when mitigating bankruptcy probability. Financial performance also mediates and mitigates the probability of experiencing financial distress through the ESG path. This study adds to the existing body of knowledge by revealing the role of sound business strategies and ESG performance in mitigating the likelihood of financial distress, an under-explored topic. It also analyzes the mediation roles of financial and ESG performance to provide significant insights to companies' decision-makers in order to support them in their endeavors toward performance improvement and achieving best practices.
This study explores the connection between business strategies, ESG performance, and the probabil... more This study explores the connection between business strategies, ESG performance, and the probability of bankruptcy. Using a sample comprising 1970 U.S. firm-year observations from 2016 to 2020, this study adopts several techniques to achieve its goals, including the partial least squares structural equation modeling (PLS-SEM) algorithm and additional analyses. The results demonstrate that a firm with a better cost leadership strategy has higher ESG performance. A sound cost leadership strategy and ESG performance negatively influence a firm’s likelihood of financial distress. Using a mediating analysis model, we also find that financial and ESG performance mediate and mitigate the probability of experiencing financial distress through a cost leadership strategy, indicating that these are essential factors that cannot be ignored when mitigating bankruptcy probability. Financial performance also mediates and mitigates the probability of experiencing financial distress through the ESG path. This study adds to the existing body of knowledge by revealing the role of sound business strategies and ESG performance in mitigating the likelihood of financial distress, an under-explored topic. It also analyzes the mediation roles of financial and ESG performance to provide significant insights to companies' decision-makers in order to support them in their endeavors toward performance improvement and achieving best practices.
This study examines the linkage between real earnings management (REM); environmental, social, an... more This study examines the linkage between real earnings management (REM); environmental, social, and governance performance (ESGP); financial performance (FP); and total enterprise value (TEV). This study employs multiple methods to accomplish its goals, such as the algorithm of PLS-SEM, regression analyses, and additional analyses. The results confirm that firms adopting the REM strategy are likely to have lower ESGP and TEV, whereas those adopting the ESG strategy are likely to have higher TEV and FP. Using moderated mediation analysis, we also find that ESGP and FP mediate the relationship between REM strategies and TEV. This finding underscores the significance of ESGP and FP as crucial aspects that should not be disregarded when seeking to enhance firm value. The results also suggest a moderate impact of FP on the connection between ESGP and TEV. This finding implies that FP plays a crucial role in enhancing the connection between a firm's ESGP and its TEV. This study contributes to the current literature by elucidating the effect of REM and ESG strategies on a firm's total value, which is a subject that has received limited attention thus far. Additionally, this study examines the moderated mediation effects, offering valuable insights to decision-makers in organizations. These insights can aid in the ongoing improvement process and promote sustainability. Furthermore, the results may affect trading processes and financing facilities because investors and financiers are expected to pay more attention to companies that care closely about sound strategies to achieve attractive financial yields from their investments or financing.
Purpose
This study develops a robust model to measure intellectual capital efficiency (ICE). It a... more Purpose This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
This study explores the impact of adopting the quality management system according to the Interna... more This study explores the impact of adopting the quality management system according to the International Standardization for Organizations (ISO) standards called ISO 9001 on firms’ working capital management efficiency (WCME). This study analyzes Small- and Medium-Sized Enterprises (SMEs) in the Polish construction industry. Regression analysis, difference tests, and robustness checks were conducted to achieve the goals of this study. The regression analysis results confirm a limited positive relationship between firms implementing ISO 9001 and WCME. Additionally, the difference tests show no significant differences in WCME between firms that implemented ISO 9001 and those that did not. During the coronavirus pandemic, a sharp decrease in inventory management costs was observed in firms. Inventories did not linger in warehouses, so they did not generate unnecessary costs, but were quickly sold at high margins. The inventory turnover rates on different days were low. These results suggest that controlling stock levels and receivables during crises is essential because payment bottlenecks and delayed deliveries can occur quickly. The insights generated from this study demonstrate that Polish SMEs in the construction industry fail to realize optimum WCME. Therefore, policymakers in Poland must improve managers’ and shareholders’ awareness of the usefulness of working capital management (WCM).
This study investigates the price reaction of global economic indicators due to the coronavirus (... more This study investigates the price reaction of global economic indicators due to the coronavirus (COVID-19) outbreak and the Russia–Ukraine conflict, particularly Brent and West Texas Intermediate (WTI) crude oil, wheat, maize, Standard and Poor's (SandP) 500 index, Nasdaq stock composite index, and Dow Jones index. The results during these crises were compared with those before to check for statistical differences. Differences analyses using the Mann–Whitney and Kruskal–Wallis tests were used to accomplish the study aims. The results show that the price distributions of the various economic indicators exhibit significant variations. The results also indicate that the primary cause of these variations was a substantial increase in the mean prices of the economic indicators amidst the COVID-19 outbreak and the Russia–Ukraine conflict. In addition, the price variations of the Russia–Ukraine conflict crisis were …
Purpose
Stock market performance is paramount to every country, as it signifies economic growth, ... more Purpose Stock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.
Design/methodology/approach The data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.
Findings The study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.
Originality/value This research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.
PurposeThis study investigates the impact of managerial ability and auditor report readability on... more PurposeThis study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies.Design/methodology/approachThe study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012a, b). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014).FindingsThis study finds that a company's managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to highe...
Corporate Governance: The International Journal of Business in Society
Purpose This study aims to explore the relative efficiency of the working capital management (WCM... more Purpose This study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress. Design/methodology/approach A data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress. Findings The results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood. Practical implications The findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others, in increasing their awareness of firms’ WCM performance bef...
This study investigates the impact of managerial ability and auditor report readability on the co... more This study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies. The study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014). This study finds that a company’s managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to higher debt costs and reduce corporate liquidity. To the best of our knowledge, few studies have explored the influence of managerial ability and auditor reporting readability on firms’ financial policy. For industrial-sector firms, this study demonstrates the managerial ability and readability of auditor readability as significant determinants of the cost of debt and corporate liquidity, especially during periods of uncertainty. Thus, the findings can be generalized to other non-financial sector firms in the country and the Middle East.
This study evaluates the efficiency of U.S. firms' working capital management (WCME) by employing... more This study evaluates the efficiency of U.S. firms' working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This study uses a data sample consisting of 964 firm-year observations from a longitudinal panel collected from 2016 to 2019. Endogeneity issues and the employment of additional analyses for robustness were considered. The results indicated that most firms under investigation were relatively inadequate regarding WCME and required correctional efforts by decision-makers to accomplish most reasonable efficiency, directly related to enhancing firm sales and net income. Additionally, the results reveal significant and positive influences of WCME and ESGP on firm value. The implications of this study would push decision-makers to employ the most reasonable procedures and strategies to improve the activities of a firm's WCM and ESG to boost its value and excel in the business environment.
This paper evaluates the economic efficiency of European football teams and examines the impact o... more This paper evaluates the economic efficiency of European football teams and examines the impact of COVID-19 pandemic on their performance indicators. 48 teams from Bundesliga, La Liga, Premier League, Serie A, and Ligue 1 are selected for appraising their efficiencies using the Malmquist DEA approach. The Data Envelopment Analysis (DEA) using the Malmquist index (MI) was used to evaluate the teams' performance before and during the COVID-19 pandemic, among others. The findings revealed that teams reacted differently to the pandemic's challenges. Among other results, the study found no significant difference in teams' performance before and during COVID-19 global pandemic. The findings provide insights for the economic efficiency of European football teams in providing information for comparative analysis to technical managers, investors, and other stakeholders regarding teams' performance.
The healthcare system is a vital element for any community, as it extremely affects the socio- ec... more The healthcare system is a vital element for any community, as it extremely affects the socio- economic development of any country. The current study aims to assess the performance of the healthcare systems of the countries above fifty million citizens in facing the spread of the COVID-19 pandemic since late December 2019. For this purpose, seven scenarios were adopted via the DEA methodology with six variables, which are the number of medical practitioners (doctors and nurses), hospital beds, Conducted Covid-19 tests, affected cases, recovered cases, and death cases. To shed light on the relative efficiency of drivers, the Tobit analysis was used. Besides, the study carried out various statistical tests for the DEA models' findings to validate the choice of the variables and the obtained scores. The DEA results reveal that less than half of the considered countries are relatively efficient. Moreover, the Tobit regression analysis showed that the main impact on the efficiency scores was due to the number of affected and recovered cases. Finally, the results of the tests of Spearman, Mann-Whitney U, and Kruskal-Wallis H indicate the internal validity and robustness of the chosen DEA models. The current study findings raise important implications, which can be helpful for decision makers regarding continuous improvement of performance, in which the findings assert the importance of achieving the best practices regarding relative efficiency through the linkage between the healthcare systems’ resources, and the needed outputs.
Purpose This study examines the effects of CLS and DS on companies' WCME and analyses the differe... more Purpose This study examines the effects of CLS and DS on companies' WCME and analyses the differences in WCME at company and market levels. Design/methodology/approach This study adopts the DEA approach, regression, differences, and additional analyses to achieve its objectives. This study employs 235 non-financial companies and 1,175 company-year observations from eight active industries in the United States from 2016 to 2020. Findings The findings indicate that CLS and DS strategies positively influence companies' WCME. Additionally, WCME differed across size categories and industries, with large companies and those operating in the communication services industry showing better WCME. By contrast, WCME did not differ between the periods before and during the COVID-19 pandemic. Practical implications This study scrutinizes the impact of CLS and DS strategies on companies' WCME to bridge the gap in this field. It extends the investigation of competitive strategies as explanatory variables for a company's WCME and examines the differences in companies' WCME at the company and market levels, which may assist decision-makers in improving their strategies and efficiencies for continuous improvement. Originality/value This study enhances current knowledge by uncovering the influence of CLS and DS strategies on improving companies' WCME, an underexplored topic. It also explores companies' WCME trends and patterns regarding company size, industry type, and the pandemic period to draw interesting conclusions about the essence of WCME.
PurposeThis study develops a robust model to measure intellectual capital efficiency (ICE). It al... more PurposeThis study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.Design/methodology/approachThis study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.FindingsThe findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.Practical implicationsThe results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments i...
This study explores the connection between business strategies, ESG performance, and the probabil... more This study explores the connection between business strategies, ESG performance, and the probability of bankruptcy. Using a sample comprising 1970 U.S. firm-year observations from 2016 to 2020, this study adopts several techniques to achieve its goals, including the partial least squares structural equation modeling (PLS-SEM) algorithm and additional analyses. The results demonstrate that a firm with a better cost leadership strategy has higher ESG performance. A sound cost leadership strategy and ESG performance negatively influence a firm’s likelihood of financial distress. Using a mediating analysis model, we also find that financial and ESG performance mediate and mitigate the probability of experiencing financial distress through a cost leadership strategy, indicating that these are essential factors that cannot be ignored when mitigating bankruptcy probability. Financial performance also mediates and mitigates the probability of experiencing financial distress through the ESG path. This study adds to the existing body of knowledge by revealing the role of sound business strategies and ESG performance in mitigating the likelihood of financial distress, an under-explored topic. It also analyzes the mediation roles of financial and ESG performance to provide significant insights to companies' decision-makers in order to support them in their endeavors toward performance improvement and achieving best practices.
This study explores the connection between business strategies, ESG performance, and the probabil... more This study explores the connection between business strategies, ESG performance, and the probability of bankruptcy. Using a sample comprising 1970 U.S. firm-year observations from 2016 to 2020, this study adopts several techniques to achieve its goals, including the partial least squares structural equation modeling (PLS-SEM) algorithm and additional analyses. The results demonstrate that a firm with a better cost leadership strategy has higher ESG performance. A sound cost leadership strategy and ESG performance negatively influence a firm’s likelihood of financial distress. Using a mediating analysis model, we also find that financial and ESG performance mediate and mitigate the probability of experiencing financial distress through a cost leadership strategy, indicating that these are essential factors that cannot be ignored when mitigating bankruptcy probability. Financial performance also mediates and mitigates the probability of experiencing financial distress through the ESG path. This study adds to the existing body of knowledge by revealing the role of sound business strategies and ESG performance in mitigating the likelihood of financial distress, an under-explored topic. It also analyzes the mediation roles of financial and ESG performance to provide significant insights to companies' decision-makers in order to support them in their endeavors toward performance improvement and achieving best practices.
This study examines the linkage between real earnings management (REM); environmental, social, an... more This study examines the linkage between real earnings management (REM); environmental, social, and governance performance (ESGP); financial performance (FP); and total enterprise value (TEV). This study employs multiple methods to accomplish its goals, such as the algorithm of PLS-SEM, regression analyses, and additional analyses. The results confirm that firms adopting the REM strategy are likely to have lower ESGP and TEV, whereas those adopting the ESG strategy are likely to have higher TEV and FP. Using moderated mediation analysis, we also find that ESGP and FP mediate the relationship between REM strategies and TEV. This finding underscores the significance of ESGP and FP as crucial aspects that should not be disregarded when seeking to enhance firm value. The results also suggest a moderate impact of FP on the connection between ESGP and TEV. This finding implies that FP plays a crucial role in enhancing the connection between a firm's ESGP and its TEV. This study contributes to the current literature by elucidating the effect of REM and ESG strategies on a firm's total value, which is a subject that has received limited attention thus far. Additionally, this study examines the moderated mediation effects, offering valuable insights to decision-makers in organizations. These insights can aid in the ongoing improvement process and promote sustainability. Furthermore, the results may affect trading processes and financing facilities because investors and financiers are expected to pay more attention to companies that care closely about sound strategies to achieve attractive financial yields from their investments or financing.
Purpose
This study develops a robust model to measure intellectual capital efficiency (ICE). It a... more Purpose This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
This study explores the impact of adopting the quality management system according to the Interna... more This study explores the impact of adopting the quality management system according to the International Standardization for Organizations (ISO) standards called ISO 9001 on firms’ working capital management efficiency (WCME). This study analyzes Small- and Medium-Sized Enterprises (SMEs) in the Polish construction industry. Regression analysis, difference tests, and robustness checks were conducted to achieve the goals of this study. The regression analysis results confirm a limited positive relationship between firms implementing ISO 9001 and WCME. Additionally, the difference tests show no significant differences in WCME between firms that implemented ISO 9001 and those that did not. During the coronavirus pandemic, a sharp decrease in inventory management costs was observed in firms. Inventories did not linger in warehouses, so they did not generate unnecessary costs, but were quickly sold at high margins. The inventory turnover rates on different days were low. These results suggest that controlling stock levels and receivables during crises is essential because payment bottlenecks and delayed deliveries can occur quickly. The insights generated from this study demonstrate that Polish SMEs in the construction industry fail to realize optimum WCME. Therefore, policymakers in Poland must improve managers’ and shareholders’ awareness of the usefulness of working capital management (WCM).
This study investigates the price reaction of global economic indicators due to the coronavirus (... more This study investigates the price reaction of global economic indicators due to the coronavirus (COVID-19) outbreak and the Russia–Ukraine conflict, particularly Brent and West Texas Intermediate (WTI) crude oil, wheat, maize, Standard and Poor's (SandP) 500 index, Nasdaq stock composite index, and Dow Jones index. The results during these crises were compared with those before to check for statistical differences. Differences analyses using the Mann–Whitney and Kruskal–Wallis tests were used to accomplish the study aims. The results show that the price distributions of the various economic indicators exhibit significant variations. The results also indicate that the primary cause of these variations was a substantial increase in the mean prices of the economic indicators amidst the COVID-19 outbreak and the Russia–Ukraine conflict. In addition, the price variations of the Russia–Ukraine conflict crisis were …
Purpose
Stock market performance is paramount to every country, as it signifies economic growth, ... more Purpose Stock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.
Design/methodology/approach The data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.
Findings The study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.
Originality/value This research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.
PurposeThis study investigates the impact of managerial ability and auditor report readability on... more PurposeThis study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies.Design/methodology/approachThe study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012a, b). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014).FindingsThis study finds that a company's managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to highe...
Corporate Governance: The International Journal of Business in Society
Purpose This study aims to explore the relative efficiency of the working capital management (WCM... more Purpose This study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress. Design/methodology/approach A data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress. Findings The results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood. Practical implications The findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others, in increasing their awareness of firms’ WCM performance bef...
This study investigates the impact of managerial ability and auditor report readability on the co... more This study investigates the impact of managerial ability and auditor report readability on the cost of debt and corporate liquidity in Omani-listed industrial companies. The study uses data from the S&P Capital IQ database and audited annual reports published on Muscat Securities Market. The sample consists of 35 firms (175 firm-year observations) from 2015 to 2019. Managerial ability is measured using the data envelopment analysis proposed by Demerjian et al. (2012). Auditor report readability is measured as a log of the auditor report digital file size proposed by Loughran and McDonald (2014). This study finds that a company’s managerial ability reduces the cost of debt lending support to upper echelons and agency theory. Highly able managers of industrial companies are associated with increased corporate liquidity consistent with the precautionary motive of holding cash. In addition, less-readable auditor reports contribute to higher debt costs and reduce corporate liquidity. To the best of our knowledge, few studies have explored the influence of managerial ability and auditor reporting readability on firms’ financial policy. For industrial-sector firms, this study demonstrates the managerial ability and readability of auditor readability as significant determinants of the cost of debt and corporate liquidity, especially during periods of uncertainty. Thus, the findings can be generalized to other non-financial sector firms in the country and the Middle East.
This study evaluates the efficiency of U.S. firms' working capital management (WCME) by employing... more This study evaluates the efficiency of U.S. firms' working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This study uses a data sample consisting of 964 firm-year observations from a longitudinal panel collected from 2016 to 2019. Endogeneity issues and the employment of additional analyses for robustness were considered. The results indicated that most firms under investigation were relatively inadequate regarding WCME and required correctional efforts by decision-makers to accomplish most reasonable efficiency, directly related to enhancing firm sales and net income. Additionally, the results reveal significant and positive influences of WCME and ESGP on firm value. The implications of this study would push decision-makers to employ the most reasonable procedures and strategies to improve the activities of a firm's WCM and ESG to boost its value and excel in the business environment.
This paper evaluates the economic efficiency of European football teams and examines the impact o... more This paper evaluates the economic efficiency of European football teams and examines the impact of COVID-19 pandemic on their performance indicators. 48 teams from Bundesliga, La Liga, Premier League, Serie A, and Ligue 1 are selected for appraising their efficiencies using the Malmquist DEA approach. The Data Envelopment Analysis (DEA) using the Malmquist index (MI) was used to evaluate the teams' performance before and during the COVID-19 pandemic, among others. The findings revealed that teams reacted differently to the pandemic's challenges. Among other results, the study found no significant difference in teams' performance before and during COVID-19 global pandemic. The findings provide insights for the economic efficiency of European football teams in providing information for comparative analysis to technical managers, investors, and other stakeholders regarding teams' performance.
The healthcare system is a vital element for any community, as it extremely affects the socio- ec... more The healthcare system is a vital element for any community, as it extremely affects the socio- economic development of any country. The current study aims to assess the performance of the healthcare systems of the countries above fifty million citizens in facing the spread of the COVID-19 pandemic since late December 2019. For this purpose, seven scenarios were adopted via the DEA methodology with six variables, which are the number of medical practitioners (doctors and nurses), hospital beds, Conducted Covid-19 tests, affected cases, recovered cases, and death cases. To shed light on the relative efficiency of drivers, the Tobit analysis was used. Besides, the study carried out various statistical tests for the DEA models' findings to validate the choice of the variables and the obtained scores. The DEA results reveal that less than half of the considered countries are relatively efficient. Moreover, the Tobit regression analysis showed that the main impact on the efficiency scores was due to the number of affected and recovered cases. Finally, the results of the tests of Spearman, Mann-Whitney U, and Kruskal-Wallis H indicate the internal validity and robustness of the chosen DEA models. The current study findings raise important implications, which can be helpful for decision makers regarding continuous improvement of performance, in which the findings assert the importance of achieving the best practices regarding relative efficiency through the linkage between the healthcare systems’ resources, and the needed outputs.
3rd American University in the Emirates International Research Conference, 2021
The current study, using data envelopment analysis (DEA), aims to assess the healthcare systems e... more The current study, using data envelopment analysis (DEA), aims to assess the healthcare systems efficiency of 26 European countries with Covid-19. This study developed DEA models to assist decision-makers in European countries via seven different scenarios to address the inefficiency of health systems following Covid-19. The input variables of the adopted DEA models include the number of conducted tests, medical doctors, nurses, hospital beds, and GDP. Whereas, the output variables include the number of affected, recovered, and deaths cases. Various output scenarios were considered and analyzed. Out of 26 European Countries, twelve were found efficient in all the assumed output scenarios. Moreover, we found four countries efficient in four scenarios out of the seven. Besides, another five countries have an efficiency level between 50%-90% in all the assumed out-put scenarios. Lastly, five countries have total efficiency levels at most 35% in each scenario. According to the developed DEA models, the countries under study can be divided into four main levels: efficient, efficient with some inefficiency, inefficient, and severely inefficient. Generally, more than 50% of the European countries have moderate to severe problems in their healthcare systems. Those countries have major issues in facing virus transmission. In general, healthcare-system-adapted DEA allows assessing the relative efficiency for countries. It is easy to perform, and it can provide helpful information which assists policymakers in continuous improvement.
The current study, using data envelopment analysis (DEA), aims to assess the healthcare systems e... more The current study, using data envelopment analysis (DEA), aims to assess the healthcare systems efficiency of 26 European countries with Covid-19. This study developed DEA models to assist decision-makers in European countries via seven different scenarios to address the inefficiency of health systems following Covid-19. The input variables of the adopted DEA models include the number of conducted tests, medical doctors, nurses, hospital beds, and GDP. Whereas, the output variables include the number of affected, recovered, and deaths cases. Various output scenarios were considered and analyzed. Out of 26 European Countries, twelve were found efficient in all the assumed output scenarios. Moreover, we found four countries efficient in four scenarios out of the seven. Besides, another five countries have an efficiency level between 50%-90% in all the assumed out-put scenarios. Lastly, five countries have total efficiency levels at most 35% in each scenario. According to the developed DEA models, the countries under study can be divided into four main levels: efficient, efficient with some inefficiency, inefficient, and severely inefficient. Generally, more than 50% of the Europe countries have moderate to severe problems in their healthcare systems. Those countries have major issues in facing virus transmission. In general, healthcare-system-adapted DEA allows assessing the relative efficiency for countries. It is easy to perform, and it can provide helpful information which assists policymakers in continuous improvement.
Goal: Using Data Envelopment Analysis (DEA) approach to support policymakers in Continuous Improv... more Goal: Using Data Envelopment Analysis (DEA) approach to support policymakers in Continuous Improvement of performance.
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Papers by Ahmed Mohamed Habib
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach
This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings
The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications
The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value
This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
Stock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.
Design/methodology/approach
The data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.
Findings
The study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.
Originality/value
This research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach
This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings
The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications
The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value
This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
Stock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.
Design/methodology/approach
The data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.
Findings
The study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.
Originality/value
This research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.