Professor Junjie Wu

In Ghana, the fundamental problem confronting local assemblies is the widening gap between the availability of financial resources and their spending needs. The local assemblies are mostly blessed with an abundance of natural resources of various kinds, from which adequate revenue can be generated to support local economic growth and development. The management and control of natural resources, however, seemed centralised, posing challenges to efficient management and utilisation of accrued revenues to the benefit of the people. Decentralising the management and control of natural resources could be more beneficial since it will enable the widening of the fiscal space of local assemblies. This research therefore explored how Decentralising the control and management of natural resources can enhance service delivery and local economic development. The research deployed the qualitative research method and used the case study research design by relying on selected local assemblies endowed with mineral natural resources in Ghana. Data was collected from key stakeholders including both the central, and local government officials and traditional leaders through interviews. The participants were selected through on purpose using the purposive and snowball sampling methods. The thematic method was used to carry out an analysis of the study. The study revealed that fiscal decentralisation of natural resource control is not extensively practised in Ghana. The local assemblies are less included in the management and control of the resources and thus have no direct benefit from the revenues generated from the exploitation of the resources. It is deduced further that there are legal frameworks that guide the control and management of natural resources in Ghana, however, these frameworks are not comprehensive enough. The country partly relies on some of its laws spelt out in the constitution in the control and management of natural resource exploitation, which includes fewer local assemblies. The central government is unwilling to include local assemblies to participate actively in the management and control of natural resources. In conclusion, local assemblies derive no direct benefit from the resources mostly found at their doorstep. This affects their fiscal space, leading to inadequate finances towards local economic growth and development. The assemblies have the required capacity and only need the support of the central government to manage, control and generate revenue from their natural resources. To help local assemblies less endowed with the resources to benefit as well, co-management of the natural resources could be a good strategy.

This paper investigates the signaling role of finance in shaping the relationship between China's New Environmental Protection Law (NEPL) and firm-level green innovation, drawing on the “Signaling View” framework. Leveraging the NEPL as a quasi-natural experiment and utilizing data from Chinese listed companies from 2010 to 2020, our findings reveal that firms significantly increased their green innovation post-NEPL. Firms, especially those in high-polluting industries, utilized green patents as strategic signals to demonstrate environmental responsibility, enhance reputation, and reduce financing costs. Green patent applications and acquisitions increased by 14.5 % and 15.7 %, respectively, in these sectors. The signaling effect is more substantial among larger firms and those with greater media exposure, highlighting the role of public scrutiny in motivating environmental compliance. Further analysis reveals broader benefits of green signaling, including improved media sentiment, higher ESG scores, and lower debt financing costs. Our findings emphasize the synergistic role of finance and policy in advancing green innovation through the signaling effect.

Interest in China’s economy has typically been focused on its phenomenal growth. However, more recently there has been growing interest in emerging constraints on and vulnerabilities regarding that growth. A key focus has been concern with issues of shadow banking. This paper discusses one aspect of China’s finance system, which has some crossover with shadow banking: informal lending to private enterprises (PE). This lending is characteristically unstable and exhibits a number of features that constrain private enterprises. Intrinsic to those constraints are issues of usury, bribery and rent-seeking (as an expression of power), all of which bear on the institutional context of ethics. This paper discusses the case of Wenzhou, the most prominent city for private enterprises in China. The Wenzhou case is explored using a narrative form drawing on multiple sources including academic papers, regulation, newspapers and social media. This is an increasingly recognized approach within mixed methods research and this paper provides for important qualitative insight into how and why questions regarding the Wenzhou case. The Wenzhou case is typical in terms of the coexistence and interaction of formal and informal lending in China. Finally, we highlight the limits of the recent reform process and current approach to resolving the problem of financing for PEs in China.

Purpose – The promotion of financial inclusion can disturb the composition of traditional bank concentration and change the relationship between bank concentration and the availability of SME financing. This paper concentrates on a less frequently explored area of research by examining the relationships between bank concentration, financial inclusion, and SME financing availability, respectively, and the interaction between bank concentration and financial inclusion after the implementation of a financial inclusion strategy in China. Design/methodology/approach – Using firm-level data from 1,509 listed SMEs in China from 2007 to 2017 and applying rigorous analyses, we identify how bank concentration affects SME financing availability under the promotion of financial inclusion and also the mechanisms involved. Findings – We find that bank concentration and financial inclusion respectively have positive impacts on the credit available to listed SMEs, indicating that the promotion of financial inclusion in China has reached a new high watermark. The positive impact of bank concentration is reduced when the level of financial inclusion is high. Conversely, a higher level of financial inclusion favours SME credit availability at only a low degree of bank concentration. Our findings suggest that financial inclusion has a substitution effect on bank concentration and has enabled us to add new interpretations to relevant theories, namely, the Market Power and Information Theories respectively. Originality/value – This study provides new insights into the relationship between bank concentration and SME finance availability under the promotion of financial inclusion.

This study explores whether financial literacy can enhance the ability to predict credit default by farmers using machine-learning models. It introduces a hybrid model combining k-means clustering and Adaboost to predict loan default using data on 10,396 farmers who obtained credit from Chinese rural commercial banks, including demographics, household finance, credit history, and financial literacy. We systemically compare the results of models with and without financial literacy variables, which indicate significant improvement in the predictive accuracy about credit risk when financial literacy factors are included. Our findings confirm that financial literacy is a crucial indicator of farmers’ ability to make informed financial decisions, reducing their likelihood of loan default and suggesting its utility as a screening tool or supplementary credit risk assessment variable. This research has profound implications for financial inclusion and credit risk management, indicating that financial institutions can leverage financial literacy data to evaluate farmers’ creditworthiness and design effective financial education programs. This study enriches the literature on credit risk prediction by introducing financial literacy as a predictor of credit default.

Purpose – The purpose of this study is to analyze the environmental factors (either internal or external) that influence the adoption of management accounting practices (MAPs) in Chinese state -owned enterprises (SOEs) and foreign joint ventures (JVs) located in China. Design/methodology/approach – A cross-sectional survey and comparative study based on questionnaires from SOEs and JVs respondents. Findings – The study finds a significant difference in the adoption levels of MAPs according to the ownership type of the enterprise (JVs and SOEs). This study provides some support for the findings from previous researches. It confirms that Chinese enterprises participating in foreign-partnered JVs have made more changes to their management accounting systems when compared to similar Chinese enterprises that had no collaborative venture operation with foreign firms. This paper has also presented a detailed historic background and an in-depth discussion to explore some environmental factors influencing the adoption of MAPs in SOEs and JVs and explain possible reasons. Originality/value – This study is thought as one of the first attempts to systematically investigate of the benefits derived from traditional and contemporary practices of management accounting used in Chinese SOEs and JVs.

This paper examines gaps in bank lending and services to SMEs in China, the problem of productive SME-bank relationships and the reasons behind these gaps. Specifically it distinguishes between lending facilities and lending services in order to highlight an imbalance in the current banking context for Chinese SMEs. It combines data from Berry (2006) with own matching data in China, draw on Berger and Udell’s (2006) conceptual framework. This study adopts stylised comparisons with Germany, the UK and the USA, and Hong Kong. The results reveal that China has developed a banking infrastructure which is equivalent to comparable developed countries. However China is deficient with regard to the quality of bank services. The results are discussed in the context of government policies, financial infrastructure, SME credit availability, and the intricacies of the SME-bank relationship in China.

The slowdown in China’s economic growth in the past decade has forced many migrant workers to return or plan to return to their rural hometowns temporarily. Extant studies on intergenerational mobility pay less attention to temporary migrant households. This paper investigates how migrant father’s return intention influences children’s educational outcomes and permanent incomes using a high-quality nationwide dataset of China (CLDS2012-2018). It finds that though there is no significant correlation between fathers’ and children’s educational attainments, the higher the return probability of the father, the less educational investment he would make in his child. This paper contributes to the literature in two ways: theoretically, it provides a new perspective to observe the intergenerational mobility of migrant workers; and methodologically, it corrects life cycle bias by controlling for the ages of fathers and children and using multi-year mean incomes.

This study explores how temperature anomalies, a novel form of systematic risk, affect financial markets, expanding the traditional understanding of market‐wide risks. While climate change is becoming an important consideration, the extent to which temperature anomalies disrupt economic activities and influence stock returns is urgently needed to assess. Using data from 479 Thai companies (2010–2023), we apply linear and nonlinear autoregressive distributed lag (ARDL) models to examine the impact of temperature anomalies and investor sentiment on stock returns. Our findings reveal that (1) temperature anomalies significantly affect short‐term stock returns, especially when prioritising sustainability and environmental, social, and governance (ESG) factors; (2) public awareness, measured by Google Search Volume Index (GSVI), has a complex, nonlinear impact on the stock market; (3) temperature anomalies act like traditional risk measures, influencing stock returns similarly to market volatility. The study highlights the growing importance of climate change in financial decision‐making and offers insights into investor reactions to climate risks and economic sentiment. It emphasises the need to consider short‐term market reactions to climate‐related news and suggests that temperature anomalies could be viewed as a systematic risk in financial markets.

Digital financing platforms have enhanced accessibility for households to engage in wealth management products, but their impact on stock market participation remains underexplored in the literature. This paper investigates the effect of Internet wealth management products on households' propensity to invest and participate in the stock market, using the reputable micro-level dataset of the China Household Finance Survey encompassing 40,011 households. Our findings reveal that purchasing Internet wealth management products positively and significantly influences households' inclination to invest and their stock market participation levels. Moreover, households with Internet wealth management products exhibit higher financial awareness and a heightened interest in financial news. These characteristics not only reduce information costs but also promote stock market participation. Furthermore, the impact of purchasing Internet wealth management products on stock market participation is more pronounced among households with higher education levels, lower-income risk, and in regions with a more developed financial market.

Purpose – The purpose of this paper is to provide empirical quantitative evidence concerning small business financing in China and highlight the financing problems faced by small to medium-sized enterprises (SMEs) in developing their businesses. Design/methodology/approach – A semi-structured questionnaire survey was conducted to collect data from a sample of 60 small businesses in three cities in China. Descriptive methods and the SPSS statistical software package were used to analyse the data and interpret the results. Findings – The data gathered covered current topic in research including the capital structure of SMEs at start-up, the types and extent of funding shortage, the preference of financial resources as SMEs grow, the significant factors, which help SMEs secure bank loans and the influence of a firm's size, age and the like. The findings generally support financial theories and previous studies about SMEs but also offer the basis for new arguments about financing SMEs in China. Research limitations/implications – The sample size is relatively small and statistical analysis is relatively straightforward. Practical implication – The present study will be of interest to policy makers developing new strategies and policies to support the financing of SMEs in China. Originality/value – The results from this study contribute to the understanding of current problems in financing Chinese small business enterprises. These include findings, which were not presented in other similar studies.

Purpose – This paper examines the relationship between bank diversity and SME firm innovation in China to evaluate the impact of recent bank deregulation. Design/methodology/approach – Using a large data set that includes 8143 firm-year observations of 1122 listed SME firms in China and baseline and robustness regression analyses, we identify how bank diversity affects firm innovation and via what economic mechanisms. Potential endogeneity problems are considered and addressed in the design and analysis to minimize research bias. Findings – We find robust evidence that bank diversity improves firm innovation. Specifically, the findings suggest that the positive effects of bank diversity on firm innovation are only significant for the firms which are more external finance dependent, have fewer growth opportunities and/or located in the provinces having low financial market development. Originality/value – This study provides novel evidence and insights into the relationship between banking market structure and the determinants of firm innovation in the Chinese context, as a result of China’s banking deregulation.

© 2019 Elsevier B.V. Using firm-level data from 250 non-financial companies with 2,500 firm-year observations collecting from two stock exchange markets in Vietnam covering a 10-year period from 2008 to 2017, this paper examines the relationship between information asymmetry and firm value in Vietnamese firms. The findings reveal that fundamentally, information asymmetry in Vietnamese firms has a negative impact on firm value. Although this conclusion is consistent with that in the literature underlying by pecking order and agency cost theories, the value of information asymmetry related variables is higher than that in similar studies conducted in other developed countries. The results also find that the financial leverage in Vietnamese firms is higher than in other developed countries but can only play a limited role in mitigating the negative impact of information asymmetry on firm value. All in all, the findings relating to all variables used in the study highlight that Vietnam is a typical emerging country because there is a precise distance from other developed countries.

This paper investigates the impact of local banks and digital financial inclusion on Small and Medium-sized Enterprise (SME) financing constraints. Using data from Chinese SMEs for the period 2007–2017, our robust results find that (1) SMEs’ financing constraints are negatively associated with the proportion of local bank branches and the degree of digital financial inclusion; (2) the effect of local banks is more pronounced for firms which are small, transparent, and located in the regions less dependent on bank credit; and (3) local bank branches and digital financial inclusion have a substitution effect on alleviating SMEs’ financial constraints. The findings shed light on how digital finance technologies could influence traditional SME-bank relationships and have important policy and managerial implications.

Continually rising energy prices in global markets highlights a serious concern about the need to improve energy efficiency and the efficiency in energy sector in many countries. China, as one of the fastest growing countries in the world and the largest coal producer, has high coal consumption but a low recovery rate of coal utilization. Coal efficiency and the efficiency in coal industry have therefore attracted a great deal of attention from Chinese policy makers, coal firms and academics. This study attempts to compare the relative technical efficiency performance of listed coal mining companies in China and the US using CCR and BCC models in the advanced DEA linear programming. The results show that the level of relative efficiency in Chinese coal mining enterprises, regardless of total technical efficiency or decomposed pure technical and scale efficiency, is much lower than in American coal firms. The study also highlights the input resources that cause the inefficiency of Chinese coal mining companies. Furthermore, in-depth discussion and analysis of how the institutional environments of the two countries could cause the differences are provided.

© 2016 by the authors.China's cement production has been the highest worldwide for decades and contributes significant environmental pollution. Using a non-radical DEA model with slacks-based measure (SBM), this paper analyzes the environmental efficiency of China's listed cement companies. The results suggest that the average mean of the environmental efficiency for the listed cement enterprises shows a decreasing trend in 2012 and 2013. There is a significant imbalance in environmental efficiency in these firms ranging from very low to very high. Further investigation finds that enterprise size and property structure are key factors. Increasing production concentration and decreasing the share of government investment could improve the environmental efficiency. The findings also suggest that effectively monitoring pollution products can improve environmental efficiency quickly, whereas pursuit for excessive profitability without keeping the same pace in energy saving would cause a sharp drop in environmental efficiency. Based on these findings, we proposed that companies in the Chinese cement sector might consider restructuring to improve environmental efficiency. They also need to make a trade-off between profitability and environmental protection. Finally, the Chinese government should reduce ownership control and management interventions in cement companies.

© 2017 Elsevier B.V. The development of Chinese and American airlines evidences the rise of the global aviation industry. Improving energy efficiency of airlines is critical to realize the targets of energy conservation and emissions mitigation in this industry. However, the gap of energy efficiency between Chinese and American airlines and its influencing factors has not been revealed. This study measures and compares the energy efficiency and productivity of Chinese and American airlines during 2011–2014. The results show that the average energy efficiencies of Chinese airlines lagged behind those of American airlines, and the gap of energy efficiency between these two countries’ airlines was enlarging over the period of 2011–2014. Differences in fleet age, passengers per flight, share of freight traffic, firm size, and ownership of airlines are the main factors that influence the gap between energy efficiency of Chinese and American airlines. Moreover, the comparison between environmentally sensitive measurement and conventional measurement of productivity shows that the growth of total factor productivity will be underestimated without considering undesirable outputs. And technical progress contributes most to productivity growth of Chinese and American airlines.

Fundamental and behavioural factors are the two determinants of stock prices but are rarely investigated simultaneously. This paper examines the role of fundamental and behavioural factors in stock return volatility in the Association of Southeast Asian Nations-5 countries (ASEAN-5) for the period of January 1995 to December 2018 comprising three regimes (before Asian, between Asian and Global, and after Global financial crises). We find that fundamental factors play crucial roles in influencing stock market volatility in Malaysia, Thailand, and Singapore; whereas, behavioural factors affect stock market volatility more significantly than fundamental factors in Indonesia and the Philippines. We find distinctive differences across the three regimes supporting the above findings. Further our results suggest that ASEAN-5 has made encouraging progress of integration with Malaysia and Thailand being closer to Singapore in terms of economic development, corporate values, and political stability; however, Indonesia and the Philippines are much behind showing economic instability and their vulnerabilities are especially associated with the timing of the Asian and global financial crises. Our findings also suggest that monetary policies play a more important role than fiscal policies in the region and highlight a number of policy implications.

Purpose – The purpose of this paper is to provide a different context for considering issues of financial stability and instability, with reference to economic growth and price stability in particular. Design/methodology/approach – This paper pursued an empirical exploration of six pillars of financial stability, based on a data set for the UK extending from 1985 (Q1) to 2008 (Q2), through the construction of a vector error correction model, including an impulse response function analysis. Findings – The findings show a strong association between the financial and economic stability even in a non-crisis regime. This includes, for example, a strong association exists between the stock market and the real economy; exchange rate appreciation may not provide for long-term real economic growth; inflation does not contribute to real economic growth, both the sensitivity of the economy to yields and a significant lag in transitional effects from financial markets to the real sector; a positive role of credit creation within a non-crisis regime; exchange rate appreciation affects purchasing power; and potential points of linkage between sovereign debt activity and general price levels. Research limitations/implications – The findings should be considered in the context of a concept of the economy as fundamentally dynamic and subject to complex cumulative processes. Practical implications – The findings indicate there is a role for state oversight and intervention within a non-crisis regime based on the complexity of possible interactions that may undermine financial and price stability, with consequences for their association with economic growth. Originality/value – The study provides a new perspective for considering issues of financial stability and instability.

This paper examines the relationship between tourism and economic growth, analyzing key factors affecting tourism income in Andalucía, Spain. Based on time series annual data for the period 2005 to 2012 and a multiple regression analysis we show that international tourism has made an important contribution to Andalucía’s economic growth. Some of the factors considered in the analysis include the number of luxury hotels, the hotel price index and the exchange rate, though the latter is outside of the control of local authorities under the European Monetary Union (EMU).

Purpose: This study examines the degree, contents and trend development of Global Reporting Initiative (GRI) performance indicators disclosed in Sustainability Reports of large mining companies in Ghana. Design/methodology/approach: Content analysis methods used to analyse 50 sustainability reports of 10 large scale mining companies in Ghana covering the period 2008-2012. Findings: The study finds that there has been a widening and increasing trend in the disclosure of performance indicators in sustainability reports for the large mining companies in Ghana in accordance with GRI guidelines. The findings suggest that good progress in the strategic sector has been made in the voluntary adoption of the GRI guidelines to increase transparency, credibility and comparability in sustainability reporting. The findings also indicate areas to be improved. Research limitations/implications: Practical implications: The Government of Ghana and the Ghana Chamber of Mines could learn from the findings about the current status of this matter in order for them to formulate policies and regulations which encourage the mining sector moving forward in the adoption of international reporting standards. Social implications: Originality/value: This paper initialises investigating into the degree, contents and trends of performance indicators in sustainability reports of large mining companies in Ghana using content analysis.

This paper examines the impact of structural distortions on resource allocation among industries, regions (provinces), and ownerships in China, using data from 2003 to 2019. This paper innovatively develops an empirical model to measure multi-dimensional structural distortions and assesses the resource misallocation degrees regarding industries, regions, and ownerships. The results indicate that China’s most serious resource misallocation is related to industries, followed by regions and ownerships, and the most severe capital misallocation is associated with ownership, and labor misallocation exists in industries. The present study contributes to the literature by creating an innovative two-layer empirical model to address the limitations of Hsieh and Klenow’s model. The findings have identified which group (industry, region, and ownership) is excessive or insufficient in resource usage, and the results have profound policy and practical implications.

Purpose – This paper examines how the impact of Chinese P2P platform reputation directly and indirectly (mediate effect) affects investors’ (lenders) investment choices. Design/methodology/approach – Using data collected from 478 P2P platforms, this paper calculates Platform Reputation via a beta function after establishing the Reputation mechanism by Game Analysis. This is followed by testing both the direct effect of platform reputation on investors’ investment choices (proxying by transaction volume) and the indirect effect through credit enhancing information using three regression models (Median regression, OLS regression, and random effect OLS regression). A robustness test by adding instrument variables is conducted to confirm the findings from the main regressions. Findings – In China, P2P lending platform reputations have played both a direct and indirect (through credit enhancing information) roles on investors’ investment choices. Originality/value – This paper expands the boundary of P2P online lending research by not only examining the direct, but importantly, the indirect effects of platform reputations.

This paper examines the impact of macroeconomic factors on foreign direct investment (FDI) inflows in Norway under the location-specific advantage. Using cointegrating regressions with Fully Modified OLS (FMOLS) and the vector autoregressive and error correction model (VAR/VECM) on quarterly data, the study finds that the real GDP, sector GDP, exchange rate and trade openness have a positive and significant impact on FDI inflows. However, money supply, inflation, unemployment and interest rate produced significantly negative results. The results imply that in seeking to promote a dynamic competitive advantage in the home country, governments need to pay more attention to their macroeconomic policies to help fashion and reduce production and transaction costs of MNEs.

The relationship between foreign entry mode choice and the performance of small-medium sized enterprises (SMEs) has been an overarching theme of research of the past decade. However, the research in this area has been hampered by the difficulty of defining and measuring performance. In this study, we used a multi-item measure of performance, which takes into account the relative importance of each measure and the perceived level of satisfaction, to analyse 146 SMEs in Norway. Our regression analysis shows that firm characteristics: size and sector of operation, significantly influence performance. However, prior international experience did not significantly influence performance. In terms of entry mode via international joint venture, trust and congruity of goals between partners have a positive and significant influence on performance.

This paper considers the adoption, perceived benefits, and expected future emphasis of western management accounting practices in the Chinese emerging market economy based on a sample of 64 joint ventures (JVs) and 115 State Owned Enterprises (SOE) gathered from a questionnaire survey. The study finds that the level of adoption of management accounting practices is most influenced by ownership type of the enterprise (JV or SOE) and to a lesser extent by the nature of the management accounting techniques to be adopted. A further significant finding is that management accounting practices such as budgeting for controlling costs, profit and sales budgeting, and target costing are perceived to be more beneficial for SOEs compared to JVs. However, responsibility accounting which is traditionally associated with SOEs and accounting for decision making is perceived to be less beneficial to SOEs compared with JVs. © 2007 Elsevier B.V. All rights reserved.

This study provides insight into the factors that influence change in Chinese management accounting practices. Multivariate analysis indicates that the size of the firm, foreign partner and level of knowledge of senior managers and employees have positive bearing on the changes in management accounting practices of the foreign-partnered joint ventures. The size and level of knowledge of senior managers appear to influence changes in management accounting practices. However, no support is found for the hypothesis that the Chinese government has a significant influence on the changes in management accounting practices of joint ventures and state-owned enterprises. © 2010 Taylor & Francis.

This study provides insight into the factors that influence change in Chinese management accounting practices. Multivariate analysis indicates that the size of the firm, foreign partner and level of knowledge of senior managers and employees have positive bearing on the changes in management accounting practices of the foreign-partnered joint ventures. The size and level of knowledge of senior managers appear to influence changes in management accounting practices. However, no support is found for the hypothesis that the Chinese government has a significant influence on the changes in management accounting practices of joint ventures and state-owned enterprises.

Research on voluntary compliance with accepted international standards has paid overwhelming attention to financial reporting standards, but not to investment performance standards. Previous research on the adoption of the Global Investment Performance Standards has overlooked the unique region of the Association of Southeast Asian Nations. Using 17 years (1999 to 2015) worth of data from all ten countries, which generates 170 country-year observations for each variable of the study, this paper evaluates whether, and how, social and economic pressures influence the adoption of GIPS in the region in the Institutional Theory lens. The results suggest that social pressure is more impactful than economic pressure on the adoption of GIPS. The findings have generated useful contributions and implications in this vein, and several future research directions have been identified. Keywords: Global Investment Performance Standards (GIPS); ASEAN; investment profession; regional integration; voluntary adoption; sustainability reporting; Chartered Financial Analyst (CFA). JEL classification: G11, G15, N95, P17

This study examines the factors shaping the choices of countries in the Middle East and North Africa (MENA) region in adopting International Financial Reporting Standards (IFRS), using a neo-institutional isomorphism framework. Analysing data from 19 countries spanning two decades (1996–2015) and comprising 380 country-year observations, this research reveals that internal coercive and mimetic institutional pressures are key influencers behind IFRS adoption in the region. Specifically, governance quality improvement and openness to international trade emerge as crucial determinants. This highlights the predominant role of social and political contexts over economic motivations in driving IFRS adoption in the MENA region. Furthermore, the findings indicate that foreign aid and internal accounting have minimal impact on IFRS adoption in the region.

Purpose Global interest in adopting the International Financial Reporting Standards (IFRS) has risen rapidly; however, the Middle Eastern and North African (MENA) countries have reacted differently towards the international diffusion. The purpose of this study is to examine the impact of the IFRS adoption/rejection decision on the quality of MENA region firms' financial reporting. Design/methodology/approach The quality of accounting is examined through five metrics models to measure earnings smoothing, managing earnings towards a target and timely loss recognition. The research sample consists of nine countries over a period of ten years (2006–2015), resulting in 3,040 firm-year observations in the main phase, and 2,580 firm-year observations in the additional analysis. Findings The findings reveal that the overall sample of IFRS adopters in the MENA region has benefited from the adoption of IFRS, as the results show that there is a reduction in earnings management for IFRS adopters in comparison to local standards adopters. The sub-sample analyses also reveal that firms that adopted IFRS, in both the rentier (oil-dependent states) and non-rentier states, have a higher financial reporting quality than non-IFRS adopters. However, the magnitude of the financial reporting quality was higher for IFRS adopters in rentier states. Research limitations/implications Similarly to previous research in this field, this study adopts a strict sample selection approach. Such an approach may limit the sample size, although the researchers have taken every possible step to ensure the use of an adequate sample size. The researchers acknowledge the strict period of ten years, despite having stated its rationale and importance of a more extended period to the quest of the paper. Practical implications This research provides valuable input by evaluating the current status of MENA region firms' financial reporting quality, based on their followed accounting regime. The implications of this paper result in better-informed decisions for investors as the information contents of the annual reports enhance comparisons that facilitate the further flow of investments. This research also provides significant insight into the International Accounting Standards Board (IASB). The findings of this study will assist the IASB in understanding the MENA region by measuring the consequences of the countries' decisions on the quality of firms' financial reporting. Originality/value The findings of this study contribute to the literature by revealing that countries with medium levels of governance quality have benefited the most from the IFRS adoption, while IFRS adopters in countries with stronger governance quality demonstrate lower financial reporting quality.

This study examines the organizational change process driven by adopting digital technologies in manufacturing. Using the Context‐Mechanism‐Outcome (CMO) framework and fuzzy set qualitative comparative analysis (fsQCA), we analyzed 46 cases from the Chinese manufacturing sector. Our focus was on the internal mechanisms and conditions influencing digital transformation (DT). The findings reveal three distinct DT configuration models: process transformation, large enterprise DT, and platform‐based transformation. Each model highlights unique organizational contexts, constraints, and digital leveraging strategies. These models demonstrate how different contextual factors shape DT approaches, providing insights into how organizations navigate technological transitions. By reframing DT as a dynamic and context‐sensitive process, the study illustrates how traditional manufacturing practices are disrupted and new models are developed. Our findings emphasize aligning DT strategies with organizational goals to enhance implementation success. This research offers actionable guidance for managers, helping them address DT challenges through context‐specific strategies.

Purpose Determining the role of ethical leadership in the multinational companies’ (MNCs) control practices, the purpose of this paper is to extend Eisenbeiss’ (2012) four central ethical leadership orientations into multinational companies’ control contexts – the culturally diversified environment. Design/methodology/approach Adopting a multiple-case research design, the authors gather qualitative data from four MNC subsidiaries located in China, that connects three potentially diverse cultural contexts: German, Japanese and Chinese. Findings The findings of this paper confirm that ethical leadership compliance (or violation) positively (or negatively) contributes to the internalization of organizational practice transfer, moderated by cultural distance between foreign managers and subsidiaries’ employees. The results reveal that informal control and trust act as lubricants in the internalization process. Originality/value This paper evidences the connections between ethical leadership, organizational practice transfer and subsequent performance, along with inclusive cultural moderating factors.

Conventional contracting nowadays has disadvantages for fast-changing high-tech industries due to technology and market uncertainty. Observations found that cooperation between firms often operates in more innovative ways which were defined by Gilson et al. (2009) as ‘Contracting for Innovation’. However, their study was conducted in a developed market (i.e. the US) and thus the findings can hardly be used to explain what is observed in emerging markets which have significantly different industrial and market backgrounds. Using qualitative interviews from a case study, this paper aims to investigate contracting for innovation practices in a Chinese strategic alliance. Our findings suggest new functions compared to those in Gilson et al. (2009). This research has enriched ‘Contracting for Innovation’ theory against the background of emerging market with highly uncertain industrial environments.

Financial development has been found to have mixed effects on CO2 emissions. One reason appears to be the relationship is not linear, as is assumed in most earlier studies. This paper re-examines the relationship between financial development and CO2 emissions based on a panel data of 61 countries categorised as high- and middle-income economies, from 1990 to 2018. This study uses the linear ARDL and nonlinear ARDL (NARDL) cointegration methods to analyse the impact of positive and negative shocks in financial development on CO2 emissions. Additionally, the symmetric and asymmetric panel causality between the variables is also investigated. The analyses from ARDL and NARDL reveal the relationship between financial development and CO2 emissions is asymmetric. In contrast, the positive shocks of financial development from NARDL have a more profound effect than the negative ones, indicating that financial development plays a crucial role in reducing CO2 emissions and achieving carbon neutrality targets. In particular, the findings suggest that the impacts of financial development on CO2 emissions are distinctive in high- and middle-income economies, leading to useful policy implications, including the suggestion that international development bodies help middle-income countries to incorporate consideration of environmental effects into the operation of their financial institutions and systems at an earlier stage of development than would generally be the case.

This study has added a new perspective to the implications of macroeconomic policy coordination for the labour market in the United Kingdom. Using quarterly macroeconomic indicators (GDP, fiscal, monetary and unemployment) from 1978 to 2007 (30 years, 120 observations) and VEC Model, this study intends to examine how fiscal and monetary policy interaction has an impact on labour market in long term. The results showed that an expansionary fiscal and accommodating monetary stance can be effective to curb unemployment and the economic growth has a positive association with the outlook of labour market. In addition, the expansionary fiscal policy led monetary policy to adopt a contractionary stance and correspondingly the adoption of the contractionary stance by monetary policy compelled fiscal policy towards expansion. The evidence from this study suggests that a policy conflict can lead to adverse impact on the labour market and therefore State Contingent Forward Guidance provided by the Bank of England would require fiscal policy support.

In the context of the breakdown of the wage-productivity nexus since the 2008–09 Global Financial Crisis, this study analyzes that nexus in the UK by accounting for potential asymmetries and nonlinearities. Employing a NARDL framework and data from 2000Q1 to 2018Q4, our key findings suggest that aggregate productivity and productivity within the retail sector have a significant and positive impact on aggregate wages and wages within the retail sector. However, there are important asymmetries and nonlinearities. The impact of productivity on wages in the retail sector is found to be many times smaller than that of aggregate productivity on aggregate wages across the economy as a whole. Economic growth, inflation and unemployment rates are found to have effects on wage growth over the short term. In the long run, it is productivity that is the sole statistically significant influence on wages. Our findings contribute to the debate on the productivity-wage nexus and have profound implications for the labour market and wage policies.

The debate about socially responsible investment (SRI) portfolio performance compared with its non-SRI counterparts remains inconclusive. This paper contributes to the debate by adding a new approach, examining the issue of a full economic circle through economic boom, recession and recovery. We compare stock performance of two value-weighted investment portfolios: FTSE4Good (SRI portfolios) and FTSE 350 (conventional portfolios) from 2004 to 2011 including 2007 to 2009 financial crash. The results indicate the SRI portfolio performed better and recovered its value quicker in post-crisis than the non-SRI portfolio, indicating that SRI portfolios are more resilient to economic turmoil and market shocks.

This study examines the extent of Global Reporting Initiative performance indicators disclosed in Sustainability Reports of mining companies in Ghana to see the content and trend development. Case study approach to 20 reports (in 2008 and 2012) of 10 large scale mining companies in Ghana was used and analysed using content analysis methods. The findings suggest there has been a wider and increasing trend in the disclosure of performance indicators in sustainability report in accordance with Global Reporting Initiative (GRI) guidelines. The findings suggest that mining companies in Ghana have made good progress in voluntary adoption of the GRI guidelines to increase transparency, credibility and comparability in sustainability reporting.

© 2015, Econjournals. All rights reserved. This paper investigates the factors which determinate internet banking (IB) decisions among UK IB customers based on a survey which resulted into 191 usable questionnaire respondents randomly collected from a UK city. A linear regression technique is used to analyse data. It is found that perceived usefulness and perceived ease of use consistently have significant positive impacts on the decisions of IB adoption while these IB users are specifically concerned about security risk, privacy risk and financial risk related to using IB services. However, social risk has no significant impact on their decision to adopt IB. The findings indicate that traditional technology related factors are still relevant but psychological barriers, especially risk concerns have significant negative impacts on consumers’ attitudes towards IB.

This study stemmed from the lack of evidence and uncertainties regarding the economic and political effects of a strategic alliance between leading oil companies like Petrobras and Galp on their host economies. This paper investigates whether public and private corporations in the energy sector can influence the economic growth of their respective countries. A Panel data analysis was performed by employing quarterly data from (2006-2013). We also used Data Envelopment Analysis (DEA) approach to measure the technical efficiency (TE) effect of the alliance on the performance of both companies from 1999 to 2012. It was found the exploration and export of oil and gas do not play a significant role in output growth of the home economy and that exploration activities were inflationary, destabilising and inimical to growth, at least in the short-run. On another positive side, both companies showed increased technical efficiencies in the chosen time period. Petrobras enjoyed TE on average of 90% in the variables studied whereas Galp showed an average TE of 70%. These results reflect the corporate strategies of both firms, which focussed on achieving profitable and sustained growth and enhancing their efficiencies in their collective and individual activities.

The introduction of direct subsidies to farming households and the development of farmer cooperatives has provided two important approaches to China’s twenty-first century food policy challenges. However, research undertaken largely separates and focuses on subsidies or cooperatives. This neglects their interaction and complementarities. This paper seeks to rectify this omission using a survey from 35 farmer specialized cooperatives (FSCs) and 561 farming households in 16 provinces, based on a two-stage treatment effect model. The findings suggest FSCs have become important organizations that improve farmers’ net income. Moreover, usage of agricultural machinery and direct subsidies also result in higher net income, though they have little impact on farmers’ machinery investment. The results provide an evidence source that contributes to debate concerning government subsidy policy. Policy may act more like an income transfer program, since it has little impact on farmers’ investment in agriculture. The study also highlights that there are complementary effects between FSCs and direct subsidies, and that China’s cooperative policy integrated with direct subsidies could be progressive.

Purpose – What drives small to medium-sized enterprises’ (SMEs’) internationalisation strategy remains a significant issue in international business research, despite the huge research efforts on this subject over the past three decades. The purpose of this paper is to investigate and compare the motives behind the equity modes of foreign market entry in Norway. Design/methodology/approach – Employing a cross sectional survey, a sample of 146 firms consisting of 42 international equity joint ventures (IJVs), 53 cross-border mergers & acquisitions (CBM&As) and 51 wholly owned subsidiaries (FWOS) from Norway was collected and analysed. Findings – It was found that whereas market development and power influence the choice of IJVs and CBM&As, the need to access resources and control resources appear to be the most important motives behind FWOS as an entry mode choice. Moreover, the regression results indicate that market development and power, technology development, location advantage and synergistic gains appear to have a significant bearing on different entry mode choice in Norway. Research limitations/implications – The paper examines the motivation for the choice of foreign entry mode from the point of view of senior managers in Norway. Future research should accommodate multiple perspectives simultaneously from the parent companies and subsidiaries in a single paper to significantly advance the field. Practical implications – The paper discovers that the motives behind the choice of cooperative modes of entry tend to be more linked with market development, technological development while FWOS are motivated by the need to control proprietary resources. The implication for the Norwegian government is that its financial incentives do not affect the mode choice of entry. Original/value – The paper finds that different motives and theories influence the choice of foreign market entry by SMEs in Norway and provides insights for senior managers on the factors taken into account in making choice decisions in Norway.

This study derives an optimal macroeconomic policy combination for financial sector stability in the United Kingdom by employing a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) framework. The empirical results obtained show that disciplined fiscal and accommodative monetary policies stance is optimal for financial sector stability. Furthermore, fiscal indiscipline countered by contractionary monetary stance adversely affects financial sector stability. Financial markets, e.g. stocks and Gilts show a short-term asymmetric response to macroeconomic policy interaction and to each other. The asymmetry is a reflection of portfolio adjustment. However in the long-run, the responses to suggested optimal policy combination had homogenous effects and there was evidence of co-movement in the stock and Gilt markets.

This concise study analyses the symmetry of financial markets` responses to macroeconomic policy interaction in the United Kingdom. Employing the Vector Auto-regression (VAR) model on monthly data of the British financial sector and macroeconomic policies from January 1985 to August 2008, this study found that the equity and sovereign debt markets showed identical symmetry in response to macroeconomic policy interaction.

The association between economic and financial stabilities and influence of macroeconomic policies on the financial sector creates scope of active policy role in financial stability. As a contribution to the existing body of knowledge, this study has analysed the implications of macroeconomic policy interaction/coordination for financial stability, proxied by financial assets, i.e. equity and bonds price oscillation. The critical review and analysis of the existing literature on the subject suggests that there is also ample evidence of interdependence between monetary and fiscal policies and this interrelation necessitates coordination between them for the sake of financial stability. There is also a case for analysing the symmetry of financial markets responses to macroeconomic policy interaction. On methodological and empirical grounds, it is vital to test the robustness of policy recommendations to overcome the limitation of a single empirical approach (Jeffrey–Lindley’s paradox). Hence, the Frequentist and Bayesian approaches should be used in commentary manner. The policy interaction and optimal policy combination should also be analysed in the context of institutional design and major financial events to gain insight into the implications of policy interaction in the periods of stable economic and financial environments as well as period of financial and economic distress.

Purpose – This paper provides insights on the void between the needs and demands of bank finance from female entrepreneurs and the supply as well as the approaches of banks for that finance. In addition, it creates a conceptual framework recognising a tripartite and dynamic partnership among female entrepreneurs, banks and governments as essential to female entrepreneurship-development, based on Zambia as the context. Design/methodology/approach – Concepts and theories are explained to construct a conceptual framework using the lens of multi-polar network theory and stakeholder engagement theory. In-depth discussions are facilitated through a bilateral partnership between each party and tripartite partnerships among female entrepreneurs, banks and governments. Findings – The framework presents how female entrepreneurs, banks and governments are interconnected in the network as mutually benefiting stakeholders and shows their collective contribution to female entrepreneurship-development within certain contexts. The findings suggest that the sustainable development of female entrepreneurship depends on a dynamic tripartite partnership among female entrepreneurs, banks and governments. Research limitations/implications – The conceptual framework has important implications when setting up a nation’s enterprise development strategies and policies promoting inclusivity and diversity among a nation’s entrepreneurs. The contributions and the dynamic relationship of the three stakeholder groups should be acknowledged and considered in order to achieve the sustainable development female entrepreneur enterprises. The framework can be generalised to other emerging economies with similar social, economic and cultural profiles to Zambia, particularly in sub-Saharan African countries with patriarchal norms. Originality/value – This paper extends multi-polar (network) theory and Stakeholder Management engagement theory, previously explained in homogeneous firms, to more complex and dynamic partnerships among heterogeneous organisations, i.e. female entrepreneurs, banks and governments.

© 2017 Central Bank of Montenegro. This study has analysed the implications of institutional design of macroeconomic policy making institutions for the macroeconomic policy interaction and financial sector in the United Kingdom. Employing a Vector Error Correction (VEC) model and using monthly data from January 1985 to August 2008 we found that the changes in institutional arrangement and design of policy making authorities appeared to be a major contributing factor in dynamics of association between policy coordination/combination and financial sector. It was also found that the independence of the Bank of England (BoE) and withdrawal from the Exchange Rate Mechanism led to the increase in macroeconomic policy maker's ability to coordinate and restore financial stability. The results imply that although institutional autonomy in the form of instrument independence (monetary policy decisions) could bring financial stability, there is a strong necessity for coordination, even in Post-MPC (Monetary Policy Committee) and the BoE independence.