Internal Control Weaknesses,Family Ownership and the Cost of Debt: Evidence from the Tunisian Stock Exchange

ABSTRACT

This study investigates the effect of internal control weaknesses (ICW) and family ownership on the cost of debt in the Tunisian setting. We document that ICW and family ownership are positively associated with the cost of debt. When testing for the moderating effect of family ownership on the association between ICW and the cost of debt, we document that the positive effect of ICW on the cost of debt is more pronounced under high family ownership in the Tunisian setting. Furthermore, the positive and significant association between ICW and the cost of debt is more prevailing for firms audited by non-Big 4 auditors and industrial companies. These findings may have policy implications for Tunisian policymakers with respect to the establishment of internal control standards.     

Investigating the relationship between volatilities of cryptocurrencies and other financial assets

Decisions in Economics and Finance - This paper analyzes the relationships between volatilities of five cryptocurrencies, American indices (S&P500, Nasdaq, and VIX), oil, and gold. The...     

Assessing the Impact of Crude Oil Price and Investor Sentiment on Islamic Indices: Subprime Crisis

This article attempts to shed light on the impact of oil prices, investor sentiment, and conventional index on 11 Islamic indices, particularly during the subprime financial crisis and the oil crisis. Empirical evidence suggests that the Malaysian and Indonesian Islamic indices are very much affected by the oil volatility. Estimation results of the BEKK-GARCH model reveal that the pessimistic sentiment during the subprime crisis is transmitted to Islamic indices, suggesting the herding contagion. The authors' finding indicates that investors can use VIX investor sentiment as an indicator to predict Islamic returns volatility. In addition, the authors find that the oil shock has spilled into Islamic indices. The time-varying correlation indicates strong evidence of the contagion effect of crude oil and investor sentiment measure to Islamic indices during the oil shock and U.S. financial crisis period of 2008–2009.