Purpose: The main aim of the study was to determine a context-specific credit risk assessment framework that integrates both traditional financial metrics and alternative data sources to better evaluate the creditworthiness of Zimbabwean SMEs. It also identified key factors affecting credit risk for SMEs in Zimbabwe by incorporating both financial and non- financial data. Design/methodology/approach: We employed machine learning algorithms which were Logistic Regression (LR), Support Vector Machine (SVM), K-Nearest Neighbors (KNN), Random Forest (RF), and AdaBoost (AB). The data was obtained from the loan database of an SME banking division of a commercial bank of Zimbabwe consisting of 52,750 loan applicants over the 5-year period from 2018 to 2022. The features of the credit dataset included capital structure, financial history, profitability, liquidity, growth potential, industry characteristics, management quality, social media engagement, macroeconomic environment, customer concentration, credit history, firm age, collateral availability and whether the applicant defaulted on the loan or not. We performed data preprocessing and cleaning, feature development, hyper parameter selection and cross validation. A split ratio of 80% for the training set and 20% for the testing set was used, followed by an evaluation of the model based on the following performance metrics: classification accuracy, precision, recall (sensitivity), F1-score and the Receiver Operating Characteristic - Area Under the Curve (ROC-AUC). Findings: We find that traditional financial indicators such as profitability, liquidity and leverage, non- financial factors—including collateral availability, cash flow stability, management quality, and macroeconomic conditions—play a significant role in shaping credit risk profiles. Non- traditional data sources such as firm characteristics, supplier–buyer relationships, and social media activity can provide deeper insights into SMEs’ operational performance and risk exposure. Incorporating these data sources alongside traditional financial information can significantly enhance the prediction of defaults. Research limitations/implications: This study was confined to one Zimbabwean bank, this represents a narrow focus since the Zimbabwean banking industry has 343 players as at 30 September 2025, (Reserve Bank of Zimbabwe (2025)). Also, since we base our research on Zimbabwe, it implies that the findings of this study cannot be generalised to all developing countries. Originality/value: This study contributes to the theory by providing an enhanced credit risk assessment framework that integrates traditional financial indicators and alternative data sources for Zimbabwean banks when determining the credit risk of SMEs. This will improve access to credit by SMEs in Zimbabwe and in jurisdictions with similar economic environments as those found in Zimbabwe. By providing reliable credit risk assessment methods it increases the financial inclusion of SMEs.
Purpose: The paper aims to examine whether investors receive superior returns for participating in green mergers and acquisitions (M&As), or whether they pay a price for doing so. Design/methodology/approach: Using the event study research methodology, we assess whether acquirers are rewarded by the stock market in green versus non-green M&A deals, specifically in cross-border and horizontal transactions. The empirical study employs the pair-matching principle. The research is based on US market data on green and non-green acquirers listed in the US, sourced from Bloomberg, from 2010 to 2024. Findings: Our study results suggest that the stock market rewards the acquirer for making green M&As and provides positive cumulative abnormal returns during the short-term event window. However, as event window following the announcement of M&A transaction increases, the positive cumulative abnormal returns transition to negative ones. The results of the study suggest overpricing effects, which can be explained by the high takeover premiums when targeting sustainability-oriented deals. Research limitations/implications: The study implies mixed market attitudes towards sustainability-oriented M&A transactions. It supports the generally increasing interest in sustainable investments, urged by regulatory developments. However, the limited disclosure of public information on the environmental practices of companies involved in M&As makes it difficult to assess the level of adoption of sustainability practices and the possibility of greenwashing policies. Originality/value: This study addresses a research gap by examining green versus non-green M&As over the period from 2010 to 2024, characterized by a growing emphasis on sustainability issues within regulatory and political domains, as well as in the broader public discourse. Our results corroborate previous research indicating that investors often overstate the value of green M&As on the day of the announcement. Investors tend to assign a favourable value to cross-border environmentally oriented deals, also characterised by higher short-term volatility. Although not systematic, these overpricing effects suggest a general market optimism towards sustainability-oriented deals. The results support the notion that markets may overreact to the 'green' label of a transaction, and reinforce the argument that sustainability-oriented acquisitions involve significant information asymmetry.
Purpose: This study investigates how Artificial Intelligence (AI)-enhanced Integrated Marketing Communication (IMC) can accelerate the adoption of hydrogen technology in two contrasting national contexts—Cyprus and Peru. Design/methodology/approach: A qualitative conceptual research design is employed, structured around a four-phase analytical framework that integrates IMC theory, behavioral psychology, and AI-driven marketing technologies. A 'most-different systems' comparative strategy underpins the case selection. Findings: The proposed AI-IMC Nexus framework demonstrates that the primary barrier to hydrogen adoption is communicative rather than purely technological. AI tools— including predictive analytics, programmatic advertising, and natural language processing—can operationalize the Mere Exposure Effect to reduce stakeholder anxiety and build informed acceptance. The Strategic Segmentation, Targeting, and Positioning (STP) model, when AI-enhanced, enables real-time micro-segmentation tailored to distinct socio- economic contexts. Research limitations/implications: As a conceptual study, the framework requires empirical validation through primary data collection, including expert focus groups and pilot communication projects. Practical implications: The study provides a scalable, context-specific communication roadmap for policymakers and energy sector practitioners seeking to deploy hydrogen technologies in divergent regulatory and economic environments. Originality/value: This paper offers the first interdisciplinary synthesis of AI-driven IMC and energy transition communication, grounded in behavioral psychology, within a comparative framework spanning an EU island economy and an emerging South American market.
Purpose: This study investigates the relationship between environmental, social, and governance (ESG) performance and corporate tax avoidance, and further examines whether financial pressure induced by the COVID-19 pandemic affects firms’ tax avoidance behavior. Using Taiwan as an emerging-market context, this research aims to clarify whether ESG engagement reflects ethical commitment or strategic opportunism. Design/methodology/approach: The study employs panel data from 5,668 firm-year observations of listed and OTC companies in Taiwan between 2017 and 2020. ESG performance is measured using a comprehensive proprietary ESG index constructed from TEJ data, covering environmental, social, and governance dimensions. Corporate tax avoidance is proxied by book–tax differences (BTD) and permanent book–tax differences (PBTD). Multiple regression models, including robustness tests with random-effects models, subsample analyses, and alternative tax avoidance measures, are applied. Findings: The empirical results reveal a significant positive association between ESG performance and corporate tax avoidance, supporting the strategic or opportunistic ESG perspective. All three ESG dimensions—environmental, social, and governance—are positively related to tax avoidance. Moreover, firms exhibited higher levels of tax avoidance during the COVID- 19 pandemic, suggesting that heightened financial pressure incentivized more aggressive tax planning. Overall, the findings indicate that ESG initiatives may coexist with, rather than constrain, opportunistic financial behavior. Research limitations/implications: This study focuses on Taiwanese listed firms, which may limit the generalizability of the results to other institutional settings. Additionally, while BTD and PBTD are widely used proxies for tax avoidance, they may capture elements beyond intentional tax planning. Future research could incorporate cross-country comparisons, alternative ESG measures, or qualitative analyses to further explore the motivations underlying ESG engagement. Originality/value: This study contributes to the literature by providing emerging-market evidence on the ESG–tax avoidance relationship and by incorporating the COVID-19 pandemic as an exogenous financial shock. It offers new insights into how financial pressure shapes corporate tax behavior and highlights the potential misuse of ESG practices as a strategic tool rather than a purely ethical commitment.
Purpose: Given the increasing salience of Environmental, Social, and Governance (ESG) criteria in investment decisions, this study investigates the extent to which pre-Initial Public Offering (IPO) ESG ratings function as a mechanism to reduce information asymmetry and, consequently, influence the phenomenon of IPO underpricing. The analysis is focused on a sample of IPOs within developed and emerging European markets. Design/methodology/approach: An Ordinary Least Squares (OLS) regression analysis is employed to empirically examine the relationship between the RepRisk rating (as a proxy for corporate sustainability performance) and the Initial Return (IR) as the measure for underpricing. The sample comprises 1,927 European IPOs executed between 2014 and 2023. Model robustness is ensured through the inclusion of control variables covering firm, offer, and market characteristics. Findings: The results demonstrate a conditional influence of the ESG rating on underpricing. For the overall sample, no significant effect of the RepRisk rating on underpricing was identified. However, a sub-analysis of rated companies during the period prior to the COVID-19 pandemic (2014-2019) revealed a statistically significant negative relationship between the ESG rating and underpricing. This finding supports the hypothesis that higher ESG transparency mitigates information asymmetry. Conversely, for IPOs originating from European emerging markets, no significant influence of the ESG rating could be established. Research limitations/implications: The findings suggest that the role of ESG ratings in alleviating IPO underpricing is highly dependent on the observation period and the specific submarket. The assumption that ESG activities universally contribute to greater market certainty during times of crisis could not be confirmed. Future research should address the heterogeneity of European regulatory frameworks and incorporate ratings from multiple agencies to enhance the generalizability of these conclusions Originality/value: This study makes a novel contribution to the literature by explicitly linking pre-IPO Environmental, Social, and Governance (ESG) ratings to the underpricing of Initial Public Offerings (IPOs) in both developed and emerging European markets. While prior research has examined the role of ESG in post-IPO performance and firm valuation, few studies have investigated its function as a signal to mitigate information asymmetry during the IPO process. By employing RepRisk ratings as a proxy for corporate sustainability performance, this research provides a unique empirical examination of how ESG considerations can influence initial investor perceptions and pricing outcomes. The study’s value lies in its dual contribution to theory and practice. Theoretically, it extends the signaling and information asymmetry frameworks by incorporating ESG metrics as a credible pre-IPO signal to investors. Practically, the findings offer actionable insights for issuers, underwriters, and policymakers on how sustainability practices and ESG disclosure can shape investor behavior and potentially reduce the cost of capital associated with IPOs. Additionally, the inclusion of both developed and emerging European markets provides a comparative perspective, enhancing the generalizability of the results and highlighting market-specific dynamics in ESG signaling and IPO underpricing.
This study compares the credit policies of Greek cooperative and commercial banks using firm-level balance-sheet data for more than 20,000 companies drawn from the ICAP database over the period 2014–2016. We examine how lending differs by sector, firm size, and financial robustness. Descriptive evidence shows that cooperative banks primarily serve small and medium-sized enterprises (SMEs). We then estimate a logit model in which the dependent variable indicates whether a firm is financed exclusively by commercial banks, using financial ratios capturing coverage, activity, profitability, and liquidity. The results suggest that firms with stronger financial fundamentals—especially higher interest coverage—are more likely to be financed by commercial banks, while cooperative banks tend to serve financially weaker firms. These findings are consistent with the relationship- based role of cooperative banks during the crisis period in Greece.
Purpose: This paper evaluates the causal impact of prudential regulatory intensification on Brazilian closed pension funds classified as systemically important (EFPC-ESI). The study aims to determine whether stricter governance, reporting, and compliance requirements, implemented as an asymmetric regulatory shock in 2019, produced structural improvements in these entities. Design/methodology/approach: The study employed an empirical strategy using annual panel time-series data from 2014–2023. It compares EFPC-ESI (treatment group) with comparable non-ESI funds (control group). The methodology combines structural break tests and interaction-based regressions to distinguish persistent regulatory effects from transitory dynamics within the same institutional environment. Findings: The results show that regulatory intensification generated statistically significant structural changes in capital-related indicators, particularly total assets and consolidated performance. However, effects on population and sustainability measures were found to be limited or non-persistent. The evidence suggests that heightened prudential supervision acts primarily as an amplifier of existing financial trajectories rather than producing broad structural shifts. Research limitations/implications: The findings raise relevant questions about regulatory inflation and the cost–benefit trade-offs in pension fund supervision. A potential limitation involves the specific focus on the Brazilian institutional environment, which may require further comparative studies in other emerging markets to generalize the impact of asymmetric regulatory shocks. Originality/value: This study contributes to the literature by providing a quasi-experimental analysis of regulatory shocks within the pension fund sector. It offers a unique perspective on how "systemically important" classifications affect institutional performance, shifting the debate from simple compliance to the actual structural efficacy of prudential supervision.
Purpose: This study aims to establish the correlation between diverse economic and institutional factors and inward foreign direct investments (FDI) in Western Balkans countries. The analysis examines into the impact of market size, inflation rate, bank nonperforming loans, control of corruption, and rule of law on the relationship with inwards FDI. Design/methodology/approach: Ordinary least squares, fixed effects, random effects and Hausman Taylor IV models were applied to a balanced panel dataset comprising six western Balkans countries over the period 2008–2022. Our results provide evidence that past levels of FDI have a significant and positive impact on current FDI levels, even after accounting for endogeneity using instrumental variables. Findings: Our results provide evidence that past levels of FDI have a significant and positive impact on current FDI levels, even after accounting for endogeneity using instrumental variables. The coefficient for GDP per capita is negative, suggesting inverse correlation between GDP per capita and FDI. This relationship shows some marginal significance, indicating the possibility for further, more detailed studies to provide clearer insights in the future. Our findings suggest that inflation exhibits a positive and statistically significant relationship at the 0.01 level, implying that increased inflation rates correspond to higher levels of FDI. Over the course of our study period, the average inflation rate held at 3%. The results concerning the rule of law reveal a positive association with FDI. However, the coefficient for this variable is marginally significant (0.111), implying that stronger rule of law institutions may potentially attract higher levels of FDI. The results relating to control of corruption and bank nonperforming loans show no statistical significance. Research limitations/implications: While this study offers valuable insights into the factors influencing inward FDI in the Western Balkans, there are several limitations worth acknowledging. First, the analysis relies on a balanced panel dataset, which may not account for country-specific shocks or extreme events that could have affected FDI inflows during the study period. Another limitation is the reliance on certain macroeconomic and institutional indicators (GDP per capita, inflation, rule of law, corruption, and nonperforming loans), which may not encompass all the relevant factors influencing FDI. Future research could incorporate additional variables such as political stability, tax policies, or trade openness to provide a more comprehensive understanding of FDI drivers. Originality/value: This study offers a unique contribution to the literature on foreign direct investment (FDI) by specifically examining the relationship between FDI and a diverse set of economic and institutional factors within the context of the Western Balkans. While much of the existing research on FDI tends to focus on more developed economies or regions, this paper highlights the challenges and opportunities faced by transitional economies in Southeast Europe.
Purpose: The main aim of the study was to estimate the levelized cost of electricity (LCOE) for a photovoltaic island project in the offshore area of Romania and the most effective possibilities to increase its profitability by reducing this indicator. Design/methodology/approach: The present study involves the analysis of the profitability of such an investment in the offshore area of Romania (considering CAPEX, OPEX, annual productivity and the levelized cost of energy), as well as the benefits it brings for the national energy system in periods of high deficit, such as those of drought or with low wind, and for the balancing activity in periods of instability. Findings: The LCOE for a floating photovoltaic park in the Romanian offshore area of the Black Sea can reach 211,303 euros/MWh, but this can be considerably reduced by increasing the installed capacity. This is due to the high costs of connecting to the terrestrial network. Also, costs can be reduced by combining the installed capacities of photovoltaic and wind energy production. Research limitations/implications: The main limitation of the research is that the possible discounts that can be obtained by an investor for the purchase of materials and their installation were not taken into account. Also, their prices can fluctuate considerably depending on the current realities of the international market. Originality/value: Photovoltaic plants are already one of the main renewable energy sources that Europeans rely on in the race to achieve the climate neutrality. In addition, in contrast to the wind farms, they are easier to manage and can even support the balancing of national energy systems, their production capacity being forecasted more easily. Since the main shortcoming of this source is the vast territory occupied by the installed panels, a solution already adopted worldwide is to install them on the surface of the inland waters or in offshore areas. Even if in these cases the installation and maintenance is more expensive, the land acquisition costs are lower or non-existent and the benefits for the environment are much more significant.
As globalisation processes evolve, there is increasing "pressure" and need for companies to enhance their innovation activity. The development and integration of an innovation strategy, taking into account all the chances and risks, in a new knowledge-based economic environment and dynamic market conditions, determines the scientific and practical interest in innovations capable of ensuring successful competitiveness Competitiveness stems from building capabilities necessary to sustain growth in a regional, national and international competitive environment. Such capabilities are created primarily through innovation and its deployment, allowing multiple potential pathways to success. Article History Received 18/02/2025 Accepted 27/04/2025 Purpose: For the national economy of any country developing in the conditions of globalisation, one of the main problems is to ensure effective competitiveness, according to the dynamics of both national and global markets. Innovation is an important factor capable of ensuring successful economic and social development and strengthening economic potential, and its application depends on innovation activity at institutional, societal and business levels. The objective of this paper is the theoretical clarification of the nature of innovation activity and its relationship with competitiveness, as well as the analysis of innovation activity as a phenomenon with economic and socio-cultural dimensions, significantly affecting the sustainable development of countries. Design/methodology/approach: The methodological basis of the study is the dialectical principle of knowledge, systematic and interdisciplinary approaches to research. To process the collected information methods of analysis and synthesis were used, content analysis, intuitive and systematic approaches were applied. An array of theoretical and factual information contained in the works of Bulgarian and foreign researchers was used to demystify the indeterminacy of innovation and innovation activity. Findings: Innovation activity, which includes technological, scientific, financial, organisational and commercial steps leading to innovation, is a consequence of the state of the economic environment. But this activity can also change the economic environment, affecting competitiveness and bringing about dynamic changes in a short timeframe. It is crucial to overcome the 'contradictions' between research, in all its complexity and depth, and the requirements of the market for goods and services, in order to create a sustainable understanding of competitive policy with a long-term horizon. Research limitations/implications: The study is limited in terms of subject matter and purpose, which are defined in the context of the relationship between innovation activity and competitiveness. The paper provides synthesised information and analysis of innovation activity according to contemporary socio-economic and market attitudes, and the development of innovation strategies and development models goes beyond the stated objectives. Originality/value: The scientific novelty of the research results lies in deepening the understanding of the nature of innovation activity as an economic and social phenomenon. The significance of the research is manifested in the enrichment of knowledge with theoretical formulations of innovation activity, as well as in the possibility of their use in the process of professional training. At the same time, the results of the study highlight the need for business organisations to develop specific activities and managerial capacities conducive to the development and implementation of innovations, through which they can expand their innovation activity and gain a competitive advantage. It focuses on intellectual property, creative freedom and the rule of law as key elements of innovative growth and economic development.
Purpose: Studies have relied on full-time non-managerial employees’ average compensation to measure pay disparities. However, this approach can be distorted by outliers. Instead, median compensation has the potential to more accurately reflect employee compensation. This study examines how the gap between full-time non-managerial time employees’ average compensation and executive compensation affects Taiwanese public companies’ audit quality. Additionally, it analyzes how this relationship is influenced by the type of accounting firm and management team stability. Design/methodology/approach: This study focuses on publicly listed companies in Taiwan from 2019 to 2023. It investigates whether a greater gap between the median compensation of full-time NMEs and executive compensation—indicating a compensation structure favoring higher-level employees—correlates with higher audit and non-audit fees. Data were obtained from the Market Observation Post System and Taiwan Economic Journal financial database. For STATA statistical software to simplify the computations in ordinary least squares. Findings: In companies audited by the Big 4 accounting firms, a wider gap between full-time non- managerial employees’ median compensation and executive compensation is associated with higher audit fees. Thus, such companies have greater operational complexity and more advanced risk management, which in turn raises audit costs. Specifically, these companies may have higher earnings management risk, thus necessitating more extensive audit resources. Furthermore, the Big 4 firms’ strong brand reputation, higher audit quality, and larger market share allow them to charge premium rates. This illustrates the differentiated pricing strategies and competitive dynamics within this market segment. Additionally, companies with stable management teams—where executives have remained in position for at least three years—tend to more effectively implement professional development programs. They also demand a higher level of both audit and non-audit services, demonstrating a willingness to invest in substantial audit and non-audit fees to ensure professionalism and integrity in the auditing process. Research limitations/implications: The findings carry significant practical implications for audit firm pricing strategies, and for companies in choosing auditors and allocating resources. Companies should consider their own operational complexity, risk management level, and management stability to select the most suitable audit services and Big 4 accounting firm. Originality/value: This study offers several key contributions. It innovatively uses median, not average, non- managerial employee compensation to measure the pay gap, thus avoiding distortion from outliers. The impact of this refined measure on both audit and non-audit fees is examined, providing a more comprehensive understanding of audit pricing. Furthermore, it distinguishes between Big 4 and non-Big 4 firms, revealing firm-specific pricing strategies. Finally, management stability is included as a moderator, highlighting its role in the relationship between compensation structure, audit quality, and organizational stability. The findings offer valuable insights for audit firms, companies, and stakeholders concerning pricing, auditor selection, and the importance of fair compensation for corporate social responsibility.
Purpose: The aim of the study is to explore the current enlargement dynamics of the European Union (EU) from the perspective of history, territory and identity. By looking at these issues in different country/case examples, the aim is to shed new light on why some enlargement processes have moved very slowly and how that compares to the current enlargement dynamics, taking into account new candidate countries from 2022. Design/methodology/approach: The study uses qualitative and explanatory approach. The method of inquiry is qualitative because it is focused on particular legal, political and social phenomena that cannot be captured by quantitative methods. That includes the question of minorities, their language, their national identities and the issue of territory “belonging” to a certain identity. Findings: The study finds that despite formal legal, economic, institutional and other requirements that candidate countries must achieve in order to join the EU, the current enlargement round is being affected by geopolitical considerations as never before. This has produced certain questions about relevant processes and brought to light some deep and unresolved issues between certain candidate countries and current EU members. Research limitations/implications: The analysis is based on legal texts and institutional country and other reports by the EU authorities and other international organizations and bodies. The research would benefit from additional sources, particularly from interviews with higher policy makers at the EU level in the current political setting following the European elections in June 2024. Originality/value: The originality of this study lies in its innovative approach to this theme. The value added is the examination of the current EU enlargement round from a particular viewpoint which has been largely neglected in research works on enlargement. This is particularly relevant in the context of the current geopolitical environment which has opened a plethora of processes, questions and decisions on EU enlargement that were unimaginable just a couple of years ago.
Purpose: This paper examines the effect of trade openness on youth employment in Sub-Saharan Africa, incorporating the roles of institutional quality and gender. Design/methodology/approach: The study employs the random effects estimator using a panel data of 35 Sub-Saharan African countries from 2000 to 2020. Findings: The study finds that trade openness has a negative and significant effect on youth unemployment, with a stronger effect on female youth. Labour market institutions, measured by the Fraser Institute’s Economic Freedom of the World index, play a key role in reducing youth unemployment, with a more pronounced effect on female youth. However, the interaction of institutions with trade openness reveals that trade openness worsens youth unemployment in countries with stronger labour market institutions. Research limitations/implications: The findings highlight the need to enhance the competitiveness and export capacity of trade sectors to create more jobs. This, however, should be implemented in conjunction with policies that encourage youth employment with no or little distortion to the labour market. Originality/value: This study contributes to the literature by examining how institutions and gender shape the trade openness–youth unemployment nexus in SSA.
Purpose: This paper aims to investigate the drivers of real house prices in an extended set of selected OECD countries. Design/methodology/approach: The paper uses a data set over the period 2000-2020, employing a panel data analysis based on key macroeconomic, demographic, and institutional factors. The analysis, based on the way demand and supply factors interact in the housing market, sheds light on these factors’ simultaneous but opposing effects. Findings: The analysis confirms that high unemployment rates affect house prices adversely, while population growth and raising construction costs push equilibrium prices up. Based on a demand - supply theoretical model, the existence of mortgage interest tax relief regulation is found to be positively associated with equilibrium house prices. Research limitations/implications: While the aim of the paper is to capture as many house price drivers as possible, the list of explanatory variables is not an exhaustive one. Moreover, special conditions in specific countries, such as tax-benefit programs, may need to be examined at an individual country level. Monitoring the trend of the macroeconomic, demographic, and institutional factors, which have been found to affect house prices, could provide an insight for future shifts in house prices. Understanding the way these specific factors affect housing supply and demand could improve government reactions in house price fluctuations. Originality/value: The study enriches the empirical literature on the role of urbanization and deposit rates on house prices, offering, for the first time, alternative explanations of their contribution by analyzing their potentially opposing effects on housing demand and/or supply.
Purpose: Work-life balance has emerged as a critical factor influencing employee retention in modern organizations. A growing body of research demonstrates the profound impact that a successful balance between work responsibilities and personal life has on employee well-being, job satisfaction, and ultimately organizational commitment. The aim of this research is to examine the specific effects of work-life balance facilitation on employee retention to provide actionable insights and evidence-based recommendations to organizations seeking to enhance their retention strategies. Design/methodology/approach: A case study methodology was used in this research. Primary data was collected through an online survey. The data was quantitatively analyzed using Statistical Package for Social Sciences (SPSS) to determine the relationships between the independent variables (work-life balance initiatives) and dependent variable (employee retention). Findings: The study revealed a high retention rate with many employees remaining loyal to the company for over 30 years. The retention was closely linked to the company’s comprehensive work-life balance initiatives, including financial aid through savings and loan cooperatives, subsidized health insurance, and educational support. These programs correlated with higher levels of employee satisfaction and engagement. Employees who actively utilized these offerings reported lower stress level, less work pressure and improved overall well-being. Research limitations/implications: This study focused on data from respondents in an Indonesian company. Further research in different international locations is needed to generalize these findings globally. The results suggests that companies, particularly in Indonesia, that prioritize work-family balance are better able to improve employee retention. This approach can decrease company turnover through lower recruitment costs and higher productivity. Originality/value: This study advances the understanding of employee retention by examining three specific factors in a developing economy context: financial support through savings and loan cooperatives, subsidized health insurance, and educational support. The findings contribute to existing theory by highlighting the relative impact of these targeted interventions on employee retention.
Purpose: This paper empirically analyzes the inflation threshold for better financial sector development (FSD) in Uganda using the yearly trend data spanning over the period 1980 to 2020. The basic idea of the study was to affirm whether the 5-percent bank of Uganda (BOU) inflations rates target is correct. Design/methodology/approach: The analysis incorporates the Autoregressive Distributing Lags (ARDL) model. This is due to the fact that the variables of the study were not all stationary at the same levels but archived strong stationarity after differencing once. To capture the inflation threshold estimation, the Ordinary Least Square model was run with lag value of the dependence variable. Findings: The research indicates that the critical inflation threshold is 6 percent. Below 6 percent inflation, there is a positive and decreasing impact but a statistically insignificant connection between inflation and FSD. Beyond 6 percent, the relationship becomes negative and the intensity increases exponentially as the inflation rate increases. Specifically, the study estimates that at a 5% inflation rate, the FSD has the potential to grow by about 1.3 % and should the inflation rate increase from the optimal of 6% to 7%, it drops by the same magnitude. Research limitations/implications: Data Limitation. The time span of 1980-2020, is because of no data for some variables beyond the chosen time frame. Even if some data were available, some are inconsistence and varies within the available data base set. Originality/value: The study augment to the development of FSD in Uganda by furnishing the Monetary Authority with evidence that help fix the optimal inflation threshold in the country. Similarly, this research will contribute to the existing body of knowledge on how best to manage the inflation rate in the country.
Purpose: We study the relationship between tax progressivity and the size of the R&D workforce, using a panel of European countries in 2000-2019. Design/methodology/approach: We review the theoretical literature which provides opposing predictions about such a relationship. Next, we develop a set of econometric models to test for different predictions offered by the reviewed theory. Findings: We demonstrate that the relationship between tax progressivity and the size of the R&D workforce exists as a “within” effect, it is negative, meaning that a larger tax progressivity is associated with smaller shares of employment in R&D activities, and it remains statistically significant after performing several robustness tests. Differently to previous studies based on patenting inventors, we find no effect due to top tax rates on the size of R&D employment. Our results support the view that the market for R&D works is best described using models based on information asymmetry. Research limitations/implications: Our results bring important policy implications: it is not the level but rather the shape of the tax schedule which may cause tax-induced social cost by reducing the available R&D workforce. Originality/value: This is the first study explicitly focusing on the effects of tax progressivity on the job market for R&D workers, thus enriching previous literature on the taxation of scientists and technical workers.
Purpose: The importance of ESG continues to grow day by day, and ESG risk management has become crucial for corporate sustainability. Understanding ESG risk management is an urgent and crucial issue that cannot be delayed any longer. This study aims to examine the relationship between ESG risk management and audit firms’ reputation. Design/methodology/approach: This study investigates the correlation between the reputational effect of audit firms and ESG risk management, using companies listed on the TWSE and the TPEx in 2023 as the target population. We further develop two research models: first, a regression model (1) to examine whether the brand reputation effects of Big4 and non-Big4 audit firms are associated with corporate ESG risk management scores and set up an Ordered Probit model (2) to investigate how the reputation effect of Big4 and non-Big4 audit firms is related to corporate ESG risk ratings. Finding: The empirical results show that companies audited by the Big 4 audit firms have better ESG risk management performance than those audited by non-Big 4 audit firms, and that companies’ ESG risk management performance varies depending on the specific Big 4 audit firm engaged. Furthermore, the association between ESG risk management performance and the reputation effect of audit firms depends on the firm’s business model and corporate governance structure. The family-owned business model and strong corporate governance environment synergistically enhance the reputation effect of audit firms, thereby contributing to the improvement of ESG risk management performance. Finally, the choice of earnings management strategy affects the relationship between ESG risk management performance and the reputation effect of audit firms. Risk-averse companies that adopt conservative earnings management strategies benefit from the positive impact of the Big 4 audit firm reputation effect on ESG risk management performance. Research limitations/implications: The research limitations of this study stem from the difficulty in accessing ESG information, which constrains the sample size. Originality/value: First, this study provides a comprehensive examination of the ESG risk management performance of listed companies in Taiwan, contributing to a deeper understanding of the current status of ESG strategy development and implementation among Taiwanese companies. Second, by examining corporate ESG risk management, the study explores the impact of audit firms’ reputation on corporate ESG risk management performance. Third, our findings contribute to academic research on ESG issues by incorporating the potential impact of audit firms’ reputation into the analysis.
Purpose: The purpose of this research is to identify drivers of dividend payouts in energy companies listed on the Warsaw Stock Exchange (WSE) in the pre-COVID-19 pandemic decade, taking into account potential determinants such as general economic situation, company’s financial efficiency, value of assets, lagged dividend payout, earnings, ownership of the company – main shareholders and structure of statutory bodies including women presence. Design/methodology/approach: Correlation analysis and pooled regression models to determine the potential determinants of payouts are used. Firms' financial performance is reflected by selected individual financial ratios and a specially constructed vector synthetic measure VSMD. Findings: Findings reveal that dividend payouts of energy companies in Poland are irregular. Dividend payments significantly depend on firms’ financial efficiency, the size of their assets, lagged dividend payouts and ownership model, while the gender structure of statutory bodies has no impact on dividend payouts. The dividend payment decisions are implied by the current economic situation. Research limitations/implications: Limitations arise from the longitudinal sample design and data selection. Only Poland is considering with rather small WSE market, and the study concerns 9 companies described by 14 financial ratios (already selected) and set of variables for each year in 10 years timespan. Our VSMD measure needs pattern and anti-pattern which requires data from the entire market to be determined. Thus, the list of diagnostic variables cannot be simply copied for different “national” markets. Originality/value: This study contributes to research on the determinants of dividend policy. It introduces to the investigation the author's synthetic measure of firm financial efficiency. Explains dividend payments in Polish energy companies in the period 2010-2019 proposes a consistent baseline for research after the pandemic and after the war in Ukraine.
Purpose: This paper explores the relationship between CEO educational background and corporate social responsibility (CSR) performance in FTSE100 companies in the UK. Design/methodology/approach: The study uses ESG scores to measure CSR performance, and examines the impact of CEO's university ranking, educational attainment, professional background, MBA background, and participation in advanced management programmes on firms’ ESG performance. Findings: CEO educational background is considered to be an indicator of intelligence, as better-educated CEOs are thought to have greater management skills, experience, and innovation. However, we provide evidence that there is no significant association between CEO educational background and CSR performance in FTSE100 companies. Research limitations/implications: Overall, we add new evidence to a growing body of literature studying the association between personal characteristics of corporate executives and corporate social responsibility. Originality/value: This paper differs from previous articles that focus on the relationship between chief executive officer (CEO) characteristics and corporate social responsibility but instead attempts to answer the question of whether CEO educational background affects corporate social responsibility performance. Most of the literature examining CEO educational background links it to firm performance.
