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Impact of Integrated Reporting Quality Disclosure on Cost of Equity Capital in Australia and New Zealand
Get PDFThis study aims to ascertain the relationship between the integrated reporting quality (IRQ) disclosures and the implied cost of equity capital (ICC) in the developed markets of Australia and New Zealand. The study provides empirical results on whether companies producing higher-quality integrated reporting (IR) under a regular process can reduce equity capital costs. This study focuses on the benefits of IR and notes that there is actually more information asymmetry between firms and investors than previously believed. The study concludes that IR plays a salient role in capital costs (when information asymmetry is greater) than cross-sectional tests. The 100 companies studied were chosen based on Standard and Poor market capitalization listed in Australia and New Zealand from 2014 until 2016. The study considered a total of 870 observations of post-implementation IR. Further, data were collected from a validated secondary database. This study showed a significant, negative relationship between IRQ and the ICC in the developed market. The results of this study encourage companies that have not yet adopted IR to do so for accelerating reduction in the ICC. Consequently, this study can help promote IR and attract more countries to implement IR policies to enhance IR research
R&D Intensity, Industrial Sensitivity, and Carbon Emissions Disclosure in Indonesia
Get PDFThis study examines the effect of R&D intensity and the type of industry on carbon emission disclosure (CED). The measurement of CED employs an index developed by Choi et al. (2013) based on the carbon disclosure project (CDP). The final data from this study comprise 264 company observations during the period of 2015–2018, sourced from a database of companies listed on the Indonesia Stock Exchange. The data were tested using ordinary least squares multiple regression. Results revealed that companies with lower R&D funding tend to disclose higher carbon emissions than those with higher R&D funding. Furthermore, companies whose operations are sensitive to carbon pollution are likely to disclose higher carbon emissions and vice versa. The findings indicate that there are more sensitive companies trying to fulfill their legitimacy to the public (stakeholders) compared to insensitive companies
Sustainability in ASEAN Countries: The Role of Financial Development in Climate Change
Get PDFHigher financial development and economic growth leads to higher production and consumption of a nation. This is because when a country is developed, the demand for infrastructure will increase which could significantly affect the country’s environment. The main aim of this paper is to explore the link between energy efficiency, sustainable economic growth, population and financial development in five ASEAN countries (Malaysia, Thailand, Indonesia, Philippines and Vietnam). Panel data analysis was employed and the results show that financial development, economic growth, population and renewable energy are important factors in influencing climate change. Based on the results, increasing financial development, higher energy use, high population and increasing economic growth will generate more CO2 emissions and contribute to climate change. Thus, there are several policies suggested to balance the relationship between financial development and carbon emission levels, which should be considered and implemented by governments and policy makers in order to improve the environmental quality in ASEAN countries. In conclusion, in the five selected ASEAN countries, financial growth plays an important role in highlighting climate change issues. Many past studies have focused on the impacts of renewable energy consumption, population, economic growth and foreign direct investment on climate change. This study narrows the gap that exists in the literature by focusing on financial development, which is able to foster vigorous economic growth, especially in ASEAN countries. Overall, the results from the fixed effects estimates show that financial development is a significant factor and has a positive contribution towards climate change
Relationship between the Service Sector and Economic Growth: Evidence from China
Get PDFThe rapid economic growth of China during the last four decades has reshaped the political and economic arena around the world. Under the leadership of Deng Xiaoping, China has realized sets of reforms towards modernization and opening the economy since 1978 and these reforms have helped China to become an economic giant. China’s economy is still growing today and a distinct growth pattern together with a complex economic system and the society of China draw interest from all over the world to research and understand what factors trigger such fast growth rates. In this study, the relationship between economic growth and two subsectors of the service sector, namely real estate and hotel & catering in China, is analyzed. The study uses quantitative methodology and time-series data acquired from secondary sources. The Autoregressive Distributed Lag Method (ARDL) in E-views 10 statistical software is utilized to analyze the data. The findings of the data analysis reveal that both sub sectors have a significant and positive impact on economic growth of China in both the long run and short run. The findings can be generalized and referred to the entire service sector and it can also be claimed that a positive relationship exists between the service sector and economic growth in China
Ho Chi Minh Stock Exchange Market: Operations and Efficiency
Get PDFThis paper presents an up-to-date account of market operations of the Ho Chi Minh Stock Exchange and examines its informational efficiency in recent years. The daily closing prices and rates of return of VN Index – the major market index of Ho Chi Minh Stock Exchange and 10 stocks chosen from different sectors are employed, from 2 January 2018 to 31 December 2019, to investigate the random walk hypothesis of market efficiency using the Lo-MacKinlay variance ratio test and Chow-Denning multiple variance ratio test. Our results show that the market index and individual sample stocks conform to the null hypothesis of a random walk type 3 model of a weak form market efficiency. The paper also presents the results of an Event Study to examine the semi-strong form market efficiency of the HOSE. The empirical results on this type indicate that there are significant abnormal returns and significant cumulative abnormal returns by trading the stocks around the events. These results are inconsistent with the requirements of a semi-strong form market efficiency, and it thus appears that further improvements in transmission of information and its speed within this market are needed to further improve the efficiency of this emerging market
The Effect of the Transmission Impact of the U.S Interest Rate on Turkey’s CO2 Emissions: Evidence from Bootstrap ARDL
Get PDFThe U.S. economy is the largest in the world; any change in the US economic policies exert a significant impact on global markets. The main purpose of this study is to investigate the spillover effect of the U.S interest rate on Turkey’s CO2 emission. The empirical results and the subsequent study discussion will be the first contribution of its kind to the environmental literature field. The study employs the newly developed bootstrap autoregressive distributed lag (ARDL) testing approach as proposed by McNown et al. (2018). The main findings of this study show that there is a negative and significant relationship between the U.S interest rate and Turkey’s CO2 emission. The results also provide significant evidence of the spillover effects of the U.S interest rate on CO2 emission in Turkey through the domestic interest rate, economic growth, and energy consumption channels. It is suggested that policymakers should design strategies such as sustained economic growth for responding to any external shocks, in particular, the U.S interest rate
Revisiting the Relationship between Poverty and Environmental Sustainability in Sub-Saharan African Countries using Dynamic Econometric Models
Get PDFSustainable development remains an important issue in the quest to achieve a safe and a better world. The expansion of the 8 millennium development goals into the 17 sustainable development goals is a testament of the conscious desire to improve the human environment to ensure better quality of life for its citizens. This study assembles a collection of four sophisticated econometric models to determine the impact of poverty and other variables on two indicators of environmental sustainability. Beside, economic development, the study confirmed the negative impact of poverty on both indicators of sustainable development. The results prove that poverty in sub-Saharan Africa is a threat to environmental quality and its consequential challenges. The call to promote environmentally responsible behaviours should not be focused on developed countries alone. Poverty is also associated with high levels of pollution and poor countries including countries in sub-Saharan Africa contributes must equally restrategise for effective environmental goals. The study further discloses that poverty is one of the strongest factors that affect environmental sustainability. This observation is not a contradiction to the well-established fact that prosperity or economic growth is a major precursor of unsustainable environment. On the contrary the evidence in this paper amplifies a consequence of a social crisis if they fester at both ends. In one breath, whereas economic growth or economic prosperity can compromise the quality of the environment. In conclusion, this result implies that African countries in their pursuit of economic growth, education and effective healthcare to ameliorate poverty must incorporate other aggressive strategies to hasten poverty reduction
Empirical Analysis of External Debt Exposure to Exchange Rate Risk in Nigeria
Get PDFThe study investigates external debt exposure to exchange rate risk in Nigeria. The Secondary data used were sourced from World Bank Development Indicators for all the variables from the period 1981 to 2019. By employing the Augmented Dickey-Fuller Unit root test and OLS estimation technique, the study found that external debt service payment (EXTDSP), total payment on external debt (TPEXTD), and trade openness (TROP) is significant. While External debt service payment (EXTDSP) and trade openness (TROP) is negatively impacting the exchange rate (EXCHR). TPEXTD has a positive significant impact on EXCHR at a 5% level of significance. The rest of the explanatory variables: external debt stock (EXTDS), gross domestic product growth rate (GDPGR), and real interest rate (RINTR) are all positive and insignificant at all levels of significance. The study, therefore, recommends that the government should go for concessional loans which has low-interest rate and are long-term in nature and as well encourage international trade with other countries of the world
Vertical Articulation and Content Relevance of the Senior High School Economics Curriculum: Case of Ghana
Get PDFThe school curriculum is often the formal document designed for teachers to treat topics that allow for the impartation of knowledge and the development of competencies that prepare students for further studies. Achieving this depends mainly on its content structure and sequencing. The aim of this study is two-fold: to find the extent of vertical articulation of topics in the economics syllabus that makes it possible for the syllabus to achieve its purpose of preparing students for further studies; and to explore the extent to which the syllabus is up-to-date and relevant in dealing with current economic issues. Document analysis was used to analyse the syllabus, while eight (8) service teachers purposively selected were interviewed. The study found that the SHS economics curriculum lacked vertical content articulation regarding the learning competencies for Forms 1 to 3. Also, the interviews revealed that the curriculum is not up-to-date though relevant since many evolving economic concepts have not been captured. The study supports the call for curriculum change and alignment of content to improve its vertical articulation and coherence and its currency and relevance in helping to equip students with the requisite knowledge and fundamental economic tools for their daily survival
The Dynamics of Land Use Land Cover and its Driving Forces in Mekelle City Region, Ethiopia
Get PDFThe rationale of this study was to study the spatio-tempo LULC dynamics over the past 47 years and identifying the major drivers of these changes. It was conducted in Mekelle city region, northern Ethiopia which is highly susceptible to environmental degradation. This landscape-scale level study employs a combination of analysis of satellite imageries, information from field studies, document review, key informant interview and observation. Digital satellite images were processed, classified and analysed by ERDAS Imagine. Computations of the area changes in the land use categories was made using supervised classification by applying maximum likelihood classifier algorithm and finally post-classification change detection technique was undertaken using Arc GIS 10.5.1. For stastical analysis of variables spatial autocorrelation and structural equation model was used. During the study period between 1972 and 2019 about 60,705.56 hectares of the total landscape of the study area was converted from one LULC type to another. The findings show increase was observed in cultivated land, built-up area and bushes and shrubs. On the other hand, natural forest, water body and bare lands were dramatically declined. Among the driving factors; climate variability, population growth, DEM and slope were identified as the leading land use and land cover change drivers. Thus, spatial planners need to take these drivers into consideration and make sound decisions regarding changes in LULC during decision makings