The study investigates the influence of boardroom gender diversity (GDB) on firms’ working capital management (WCM) in the context of emerging economies. Using panel data from 722 firms across two major emerging economies, China and India, and applying the generalized method of moments for regression analysis, we find that enhancing GDB leads to a shortening of the cash conversion cycle and inventory days. This finding indicates that GDB improves firms’ cash cycle and inventory management. However, this study does not find a statistically significant role of GDB in accounts receivable and payable management. We also examine how female representation within the executive leadership of companies influences the relationship between GDB and WCM. We find that female representation within the executive team moderates the relationship between GDB and inventory days, suggesting that executive-level gender diversity can attenuate the negative implications of lower GDB on inventory management. Robustness checks using alternative proxies for GDB and WCM, along with subsample analyses of manufacturing firms, confirm the consistency of the findings. The study has important implications for corporate leaders and policymakers in emerging economies, as it highlights the strategic role of gender diversity in improving the management of resources in day-to-day operations through efficient WCM.
This study aims to examine the influence of employees’ exchange ideology on their knowledge-sharing behaviour using social exchange theory as the theoretical foundation. It further investigates the mediating roles of inclusive leadership and trust in leaders in this relationship. The study employed a quantitative research design with data collected in two waves from 329 employees working in Indian information technology (IT) organizations. Variance-based structural equation modelling was used to test the proposed hypotheses and analyze the mediating effects of inclusive leadership and trust. The findings indicate that employees’ exchange ideology significantly influences their knowledge-sharing behaviour. Both inclusive leadership and trust in leaders mediate this relationship, highlighting the pivotal role of leadership behaviours and interpersonal trust in promoting knowledge sharing within organizations. This study contributes to the literature on knowledge management and leadership by integrating social exchange theory with the constructs of inclusive leadership and trust. It provides novel empirical evidence from the Indian IT sector, an emerging economy context, thereby enriching the understanding of how relational and leadership factors drive knowledge-sharing behaviour in organizations.
Business mergers enable firms to produce more efficiently, diversify product lines or expand their operations. Indonesia's economic growth has triggered the establishment of several multi-business firms over the past 30 years. These firms continue to develop their businesses in both related and unrelated fields. To manage their portfolios, these firms operate under holding companies. Contemporary business strategy development requires firms, including multi-business conglomerates, to be more effective and efficient. This study aims to examine and analyze the impact of holding formation and asset restructuring on state-owned enterprise (SOE) performance and to compare the financial performance of SOEs before and after holding formation. This study offers three novel contributions. First, it is the first empirical examination of SOE mergers in Indonesia. Second, it employs Monte Carlo simulation to project future performance, particularly for mergers that occurred during 2020-2021. This simulation approach was necessary because some sampled firms had not yet reached sufficient post-merger periods, whereas effect formation typically becomes apparent several years after a merger. Third, this study uses both cross-sectional and time-series dummy variable tests to obtain more robust results. The findings indicate that merger synergies fail to materialize when measured using both regression and pairwise comparison methods.
This study examines herding behaviour among traditional value investors in Environmental, Social and Governance (ESG) portfolios across Southeast Asian emerging markets, defined by reliance on a single valuation metric (the market-to-book ratio). It challenges prior literature that examined undifferentiated investor populations and reported generalized resistance to herding in ESG portfolios. We argue that bounded rationality drives these investors to simplified analysis, triggering information cascades and rational herding. Using daily returns (2017-2024) from five markets, we apply a nonlinear cross-sectional absolute deviation model with a Generalized Autoregressive Conditional Heteroskedasticity robustness check to control for volatility clustering and isolate rational herding from common-information drivers. Results show traditional value investors exhibit significant herding conditional on market phase, contrary to aggregate-level analyses. We identify notable market-phase asymmetry: shock-driven reactions during bear markets (years of negative regional index returns) contrast with momentum-chasing behaviour during bull markets, highlighting the complementary roles of bounded rationality and information cascades. Our study advances herding literature by showing investor type matters, proposing a joint bounded rationality-information cascade explanation for rational herding, and revealing market-phase dependencies. As herding behaviour amplifies valuation distortions by driving prices from fundamental value, practically incorporating these patterns into risk models may help mitigate such distortions.
This study hypothesizes and empirically uses an integrated short-video engagement model to determine the effect of creator-brand fit (CBF), social media marketing activities (SMMA) and short-video affordance salience (SVAS) on consumer brand engagement (CBE), brand loyalty (BL) and digital word-of-mouth (DWOM) among Gen Z and millennial consumers in India. Based on the stimulus-organism-response framework, Affordance Theory, Uses and Gratifications and Generational Cohort Theory conceptualize CBF, SMMA and SVAS as stimuli; CBE as the organismic state; and BL and DWOM as responses. The analysis of data collected through the use of SPSS 28 and SmartPLS 4 with partial least squares structural equation modelling and multi-group analysis was performed using a cross-sectional survey of 710 short-video users (398 Gen Z and 312 millennials). CBF positively affects BL (b = 0.321) and DWOM (b = 0.330) in cohorts, highlighting authentic creator-brand interactions. SMMA has strong effects on BL (b = 0.450) and DWOM (b = 0.199) for millennials, whereas SVAS has greater effects on BL (b = 0.500) and DWOM (b = 0.318) for Gen Z because of the desire to experience things immersively. CBE plays a significant role in mediating all stimulus-response relationships. This study contributes to the literature on short-video, influencer marketing and provides generation-specific strategic information.
This article discusses the question, does trade openness (TO) lead to economic growth in the Quadrilateral Security Dialogue (QUAD) countries (including the USA, Japan, India and Australia). Being driven by the paucity of the existing empirical data that targets QUAD countries as a strategic economic bloc, thus the study fills a valuable gap in the work on trade and economic growth. For the filling gap, this article studied a panel data set for 23 years (2000-2022). The analysis comprises a combination of both short and long-run dynamics of the variables using annual panel data through the autoregressive distributed lag (ARDL) framework, including pooled mean group (PMG), mean group (MG) and dynamic fixed effects (DFE) estimators. The empirical findings indicate that TO and foreign direct investment (FDI) inflows have positive and significant effects on economic growth in the long run and the macroeconomic stability, which is indicated by the controlled inflation and proper reserves, has a complementary effect. It has been found that the PMG estimator is the most efficient, which means that there are homogeneous long-run relations over all the economies of the QUAD countries with heterogeneous short-run adjustment. These results are solid arguments that trade-led growth theory applies in relation to developed and emerging markets in the framework of QUAD countries. The results point to trade liberalization, FDI magnetism and exchange rate stability as essential drivers of sustained economic growth. Policymakers can use them to create targeted policies that are less likely to drive trade barriers, create investor-friendly conditions, and stabilize the monetary balance. This study also points to the importance of restrained inflation and institutional transparency in long-term economic resilience and stability.
This article examines the factors and processes of export diversification in a sample of 95 countries in the years 2010-2023 using dynamic spatial Durbin model as estimated by quasi-maximum likelihood. The use of spatial dependence by incorporating nearest neighbour and inverse distance weighting matrices shows that there is a strong dependence on path, implying that there is persistence in the patterns of diversification with time. Human capital becomes the biggest contributor, where it brings in a lot of long-run benefits but with low spillover impacts. Conversely, GDP per capita and trade openness have direct negative effects on diversification, and the positive indirect effects of these measures under the global weighting scheme are not enough to counter these decreases. Natural resource rents and population size are statistically insignificant. The spatial feedback effects are different in the weighting schemes, whereas the tests of diagnostics prove the model's robustness. Overall, the results highlight the importance of human capital investment, inclusive diversification policies and regional cooperation as crucial to sustainable export diversification and sustainable economic development.
Despite the growing adoption of digital transformation (DT) across industries, research on its impact on brand innovation (BI) in Nigeria’s fast-moving consumer goods (FMCG) sector remains limited. Intense competition and evolving consumer preferences make sustainable BI challenging. Prior studies have examined DT’s effects on customer loyalty and business models, but its specific influence on BI remains underexplored. This study addresses this gap by examining how DT affects BI in Nigeria’s FMCG sector, with customer experience (CX) as a mediator. Using a quantitative approach with data from 203 respondents, analysed via partial least squares-structural equation modelling (PLS-SEM), the results show that DT has no significant direct impact on BI. However, it enhances CX, which positively influences BI. CX partially mediates this relationship, accounting for about 68% of the total effect. This research contributes to the marketing and DT literature by highlighting the indirect pathway through which DT fosters BI. FMCG managers should invest in DT strategies that enhance CX, drive innovative marketing and maintain competitiveness in a dynamic market.
Environmental, social and governance (ESG) controversies have gained increasing attention due to their potential impact on corporate governance, financial stability and stakeholder trust. This study investigated the association between ESG controversies and auditing at both the beginning and end of the audit engagement, focusing on audit fees, auditor opinion, auditor early resignation (AER) and the influence of audit reports (ARs) on ESG controversies. This study employs a sample of 367 non-financial UK firms from the industry, energy and basic materials sectors and constructs an imbalanced dataset comprising 3,670 full-year observations covering the period 2014-2023. Employing system-pooled logit and pooled ordinary least squares (OLS) regression analyses and supported by two-step generalized method of moments (GMM), the findings indicate that ESG controversies significantly affect audit fees and auditor selection: Firms experiencing higher ESG controversies are more likely to engage BIG4 audit firms, which impose elevated fees. However, ESG controversies do not appear to be a sufficient reason for the auditor's early resignation. Additionally, modified ARs are found to contribute to ESG controversies, as auditors highlighting key audit matters-such as low ESG performance and ESG-related risks-can further amplify ESG concerns. This investigation incorporates stakeholder theory, signalling theory and information asymmetry theory to provide stakeholders with valuable insights. It highlights the auditors' role in ensuring ESG transparency and managing ESG-related risks. Managers must consider the financial impact of ESG controversies, including higher audit costs and reputational risks tied to BIG4 firms. Auditors should assess ESG controversies when auditing risk, evaluating clients and ensuring the reliability of audit-proofing.
This study re-examines the determinants of short-term market reactions in cross-border mergers and acquisitions (CBMAs) initiated by emerging market multinationals (EMMs). We specifically examine how these traditional drivers shift during the period of a global crisis. Employing an event study methodology on a comprehensive sample of 1,289 CBMAs announced by acquirers across 10 major emerging economies from 2009 to 2021, we analyze the shareholder wealth effects surrounding the announcement dates. The findings reveal that, on average, CBMAs initiated by EMMs generate positive and statistically significant short-term wealth for acquirer shareholders, supporting the synergy theory. The study extends the institution-based view by incorporating country-level sustainability orientation as a determinant of short-term market reactions and identifies a preliminary non-linear relationship between sustainability distance and acquirer returns. While investors typically preferred risk-sharing (payment through stock) and diversification strategies in stable times, there is preliminary evidence of a shift in these patterns during the COVID-19 pandemic. The conventional market penalty for cash payments disappeared, and investors rewarded horizontal deals during the crisis period. These findings advance the value creation theory, institutional-based view and crisis management literature, offering insights for managers and policymakers navigating the dual challenges of global expansion and economic volatility.
Amid accelerating industrialization and ecological degradation in Asia, understanding the dual role of pollution as both a by-product and a potential input in production has become a critical policy and research imperative. This study explores the multidimensional impact of pollution on the ecological degradation embedded in industrial production. Moving beyond the conventional focus on single pollutants such as CO2, an industrial pollution index was developed that integrates non-renewable energy consumption, wastewater, waste gas and solid waste. Findings of the robust panel estimations, fixed effects with Driscoll-Kraay standard errors and feasible generalized least squares, indicate that industrial value-added significantly increases all dimensions of pollution. Foreign direct investment (FDI) and technology have mixed effects, while FDI exacerbates wastewater and solid waste, it can reduce waste gas and energy intensity through cleaner technology transfer; however, reliance on fossil fuel-based technologies worsens environmental degradation. Westerlund and Pedroni tests confirm a long-run equilibrium relationship among the variables. The findings highlight that unchecked industrial growth leads to unsustainable outcomes, underscoring the urgency for holistic pollution measurement, ecological tax reforms and stricter regulatory frameworks. Policy measures should prioritize circular economy practices, renewable energy investment and enhanced institutional monitoring to support sustainable industrialization.
This study extends the theory of planned behaviour (TPB) by examining how subjective social norms (SSN) influence pro-environmental entrepreneurial intentions (PEIs) among Indian Generation Z students through cognitive and educational mechanisms. The model conceptualizes entrepreneurial vision (EV) as a future-oriented cognitive construct and entrepreneurial self-efficacy (ESE) as a confidence-based driver of action, while positioning environmental education (EE) as a contextual moderator. Using survey data from 328 commerce and management students and structural equation modelling (SEM), the study tests a moderated mediation framework. The findings indicate that SSN positively shape EV, which in turn enhances both self-efficacy and PEI. ESE partially mediates the vision-intention relationship, and EE strengthens the influence of social norms on vision and amplifies the indirect pathway to intention. Overall, the findings refine the TPB by demonstrating how education-conditioned cognitive processes shape sustainability-oriented entrepreneurial intention formation at the formative stage of higher education, offering theoretically grounded and context-specific implications for entrepreneurship education and policy aimed at fostering pro-environmental entrepreneurial pathways among Generation Z students.
This study uses panel data of 12,189 firm-year observations from 1,648 Taiwanese listed companies (2016-2023) to examine the interactions among family ownership, firm value (measured by Tobin's Q) and environmental, social and governance (ESG) performance. Using ordinary least squares (OLS) and instrumental variable (IV) regressions, we find divergent results for the effect of ESG on firm value. The OLS estimates show a mildly positive relationship between ESG performance and Tobin's Q. However, IV estimations-capturing the local average treatment effect for firms driven by exogenous pressures-reveal a negative valuation impact, indicating significant endogeneity in the naive estimates. In addition, we find that family firms exhibit systematically lower ESG scores than non-family firms, particularly in the governance dimension, likely due to preferences for opacity and restricted board independence. Overall, these findings challenge the prevailing narrative of a universal ESG premium. They suggest that in emerging markets like Taiwan, the substantial compliance costs associated with mandated ESG initiatives may lead to a conservative market reassessment of a firm's long-term future cash flows. Theoretically, our work synthesizes agency and stewardship perspectives, offering regulators and executives nuanced guidance on how family control fundamentally shapes ESG adoption.
Drawing from sensemaking theory, this study investigates how socially responsible human resource management (SRHRM) influences employee proactive work behaviour (EPWB) through underlying psychological processes and contextual factors. While prior research suggests SRHRM enhances positive employee outcomes, limited attention has been paid to the mechanisms through which employees interpret and internalize SRHRM practices, and how these interpretations drive proactive behaviours. Using a time-lagged survey of 756 employees in multinational companies in Southeast Vietnam, the study tests a serial mediation model where work meaningfulness and organizational pride sequentially transmit the effects of SRHRM to EPWB. Structural equation modelling results reveal that SRHRM does not directly predict EPWB but operates entirely through this psychological chain. Furthermore, multi-group analysis shows that leadership gender moderates the indirect pathway: female leaders amplify the positive effects of SRHRM on employees’ sensemaking and subsequent behaviours, while male leaders weaken them. These findings contribute to human resource management and organizational behaviour literature by advancing sensemaking theory in explaining how socially responsible practices translate into discretionary employee actions and identifying leadership gender as a critical contextual variable. Practical implications suggest organizations should design SRHRM interventions that foster meaningful work experiences and strategically leverage leadership characteristics to enhance employee proactivity.
This study examines the role of board gender and generational diversity in regard to firms’ sustainability performance. Although the academic literature on this topic is expanding, empirical findings, particularly regarding the relationship between gender diversity and sustainability performance, remain inconsistent. Moreover, the influence of societal generations (i.e., Baby Boomers, GenX, Millennials and GenZ) on sustainability outcomes has not yet been thoroughly investigated. Using a quantile regression approach, this article examines medium-sized unlisted firms in the Italian agri-food sector to assess heterogeneous associations between gender and generational diversity and sustainability performance, measured by a score based on the United Nations Sustainable Development Goals. The results indicate that board gender diversity is not statistically significantly associated with sustainability performance, whereas board generational diversity shows a positive and heterogeneous association across the sustainability performance distribution. Overall, the findings provide valuable insights for firms seeking to strengthen their sustainability orientation by considering board composition, particularly regarding generational diversity.
Venture capital (VC) firms play a crucial role in fostering the growth of startups by providing financial resources, strategic guidance and support in accessing capital markets. However, the impact of VC support on firm performance following an initial public offering (IPO) remains widely debated, particularly in emerging markets characterized by a distinct institutional and structural environment. This study provides evidence on VC support and its effect on firm outcomes after listing. The sample comprises 422 non-financial firms that went public between 2003 and 2019. Post-IPO performance is evaluated over 5 years after listing by employing both accounting-based and market-based metrics. After addressing concerns of selection bias and endogeneity, the study demonstrates that the impact of VC support is two-fold. While VC support is linked to lower operating performance and firm profitability, it is associated with higher market valuation for firms post-listing. This divergence implies that although VC involvement may not consistently translate into superior post-listing operating outcomes, the presence of VCs continues to serve as a credible indicator to investors, aligning with their certification role in influencing investor perceptions. This research presents novel findings, providing significant insights for issuers, managers, regulators and investors.
Global supply chains are gaining popularity, and firms often rely on offshoring as a strategy to gain advantage in the competitive landscape. However, in recent times, they have been vulnerable to disruptions, particularly in the context of COVID-19 and the Russia-Ukraine war. This study aims to analyze the costs and benefits of near-shoring and friend-shoring in two different scenarios. The first scenario models regional trade agreements to analyze near-shoring. For this, two trade agreements-Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership-that predominantly involve the Association of Southeast Asian Nations countries are considered. In the second scenario, a geopolitical perspective is taken up to analyze friend-shoring. The study examines the economic and trade implications of countries that have been aggregated based on political alignment. The findings suggest that near-shoring may be a more effective strategy than friend-shoring, with a broad net positive global impact.
Constantly increasing attention to greenhouse gas emissions performance posits managers at a crossroads, weighing the decision to adopt a comprehensive governance approach for the sustainability agenda or to employ precise governance tools specifically targeting greenhouse gas emissions. Answering this managerial dilemma, the study employs a fixed-effects regression analysis, focusing on data from 2016 to 2022 for 81 publicly traded oil and gas companies. The research findings highlight the importance of stakeholder-oriented corporate governance elements in achieving carbon neutrality, contrasting with the irrelevance of agency-based metrics. Specifically, board expertise and stakeholder engagement, with a focus on emissions reduction in the oil and gas industry, emerged as effective elements, while other metrics were found to be insignificant or even detrimental, diverting resources away from corporate emissions management. These most effective mechanisms promote a resource-based perspective for corporate governance aimed at achieving carbon neutrality, considering the high level of competition they face with a company’s broader environmental agenda.
The study investigates the moderating role of a firm’s size while assessing the level and direction of the association between female board directors and the firm’s performance in the pharmaceutical sector. The study applies a fixed effects model, suggested by the Hausman test, to control for unobserved firm heterogeneity. Robustness check of the model is ensured with the panel unit root test, followed by the generalized least squares model, which handles panel-specific heteroskedasticity and autocorrelation. The endogeneity concern is addressed using a two-step system generalized method of moments model. The quantile regression is also applied at different distribution levels to capture the relationship on different scales. The findings disclose that female board directors positively enhance the firm’s performance when the firm’s size plays a moderating role, and the relationship significantly reverses the direction of the relationship. The study offers a foundational strategy to regulators and investors to boost board composition and the inclusion of more females on the boards. This study employs a unique empirical approach to examine the relationship between female board directors and the firm’s performance, with a particular focus on the firm’s size as a moderator to achieve the mandated goals of governance bodies.
This article aims to examine the effects of macroeconomic variables on Iran's bilateral trade with member countries of the Economic Cooperation Organization (ECO) over the period 2007-2023, utilizing an extended gravity model. In the context of evolving global trade dynamics and escalating international sanctions, the research seeks to assess the influence of key factors-including GDP, inflation differentials, exchange rate volatility, digital trade and financial sanctions-on Iran-ECO trade flows. Using panel data and a fixed-effects regression approach, the model incorporates both traditional gravity variables (economic size, distance) and contemporary trade determinants (internet penetration, sanctions). The results indicate that GDP growth and improvements in digital infrastructure significantly promote trade, whereas inflation disparities and exchange rate instability hinder it. Interestingly, financial sanctions exhibit a positive impact, suggesting a reorientation of Iran's trade towards ECO countries. The findings imply that deeper regional integration, expanded digital trade capacity and the use of alternative trade mechanisms can help buffer external shocks and strengthen trade resilience.
