Cross-sectional and time-series momentum returns: are Islamic stocks different?

We search for differences in both unconditional and conditional momentum returns of Islamic and Non-Islamic stocks and test implications of competing behavioural theories that aim to explain momentum returns. Our results show that there is no significant difference in momentum returns between Islamic versus Non-Islamic stocks with respect to both cross-sectional (CS) and time-series (TS) momentum strategies even when we condition momentum returns on market dynamics, information uncertainty and idiosyncratic volatility. We also find that the TS strategy outperforms (underperforms) the CS strategy in market continuations (transitions) consistent with the recent evidence in the U.S. market.

Furthermore, we find that CS and TS strategies of both Islamic and Non-Islamic stocks are profitable only when the market continues in the same state consistent with overconfidence driving momentum returns of both Islamic and Non-Islamic stocks.     

Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market

We seek to explore the hiring and separation rates in Tunisia before and after the Arab Spring based on quarterly business level data for 503 firms over the span of January 2007 to December 2012. Furthermore, we examine whether employers are willing to dismiss older workers to trigger an effective increase in mobility that will open new opportunities for the youth community. We build our analysis upon six main empirical models to study employment decisions reflected by major indicators such as the number of hiring, number of separations, total employment effects, male‐female ratio, age cohorts, labour mobility and net employment. The results show that the Arab Spring has created structural unemployment trends. In addition, we note that the 2008 global turmoil has fostered the firing level of employment. Our conclusions also indicate that the response of Tunisia's government to high unemployment rates caused by the financial meltdown in 2008 and the events in 2011 was not sufficient to remove the attached lingering effects that still distress the country's labour market. In addition, our findings emphasize the significant challenges faced by Tunisian youth that could be mitigated by efficient policy actions to incentivize training and development geared towards the private sector.     

Correlation and Volatility Dynamics in International Real Estate Securities Markets

We study international correlation and volatility dynamics of publicly traded real estate securities using monthly returns from 1984 and 2006. We also examine, for comparison, the correlations among the corresponding stock markets. A multivariate dynamic conditional correlation model captures the time-varying correlation within the full period. We confirm lower correlations between all real estate securities market returns than those between the stock market returns themselves. Some significant variations and structural changes in the correlation structure happened within the sample period. We detect a strong and positive connection between real estate securities market correlations and their conditional volatilities. We also find the international correlation structure of real estate securities and the broader stock market are linked to each other. Our results have economic motivations regarding the potential integration of international real estate securities markets and the possibility of including information on changing correlations and volatilities to design more optimal portfolios for international real estate securities.

Does economic liberalization promote economic growth in Pakistan? An empirical analysis

The study aims to examine the short and long term impacts of economic liberalization on economic growth in case of Pakistan from 1971 to 2011. Economic liberalization consists of reforms in both trade liberalization and financial liberalization. This study contributes to the existing literature by constructing an economic liberalization index using principal component analysis. Our results show, firstly, that economic liberalization reforms have a positive impact on economic growth in the short run. However, trade liberalization is negatively associated with economic growth in the long-run. Secondly, the estimated coefficients through rolling window show that impact of economic liberalization on real GDP is unstable during the selected period of sample. This study recommends to policy makers to enhance human capital by having more expenditure on education sector. In addition, financial reforms by way of a sectoral credit allocation should be introduced to further promote the economic growth.     

Developing environmental performance measures for tourism using a Tourism Satellite Accounts approach: a pilot study of the accommodation industry in Egypt

Considering the recognized pressures of tourism on the natural environment, it is important to quantify and understand those pressures. This paper adopts an approach based on the Tourism Satellite Accounts conceptual framework to measure selected environmental pressures of tourism. Egypt is selected for the case study and the accommodation industry group is used as a pilot test (reference year 2009) for the feasibility of the proposed methodology. Results show that each US$ 1 million of direct value added supported by tourists expenditure in the accommodation industry group requires 18.6 thousand m³ of water, 51.1 tons of fuel, and 426 megawatt hours (Mwh) of electricity. Similarly, each US$ 1 million of the direct value added generated by tourists expenditure for accommodation creates directly about 464.3 tons of CO₂ emissions. It is estimated that serving inbound tourism is a higher user of energy resources than serving domestic tourism, which is higher in terms of water use. These environmental performance measures enable the Egyptian Government to examine the potential environmental pressures and financial costs of attracting new tourists.     

What is the economic value of the Extractive Industries Transparency Initiative (EITI) information disclosure?

We use the United States Extractive Industries Transparency Initiative (EITI) unilateral release of information on non-tax payments by extractive companies to the US Government as an illustration of the economic value of EITI information. We test for market reaction to the initial disclosure of this information in terms of change in trading volume and abnormal returns, and the value relevance of the continuing disclosure of the information over 2013–2016 period. The results show that the initial release resulted in a significant trading volume reaction and produced positive cumulative abnormal return in the period immediately surrounding the release date. Regression analyses of the cross-sectional variation in abnormal returns show that the reaction is associated with oil and gas firms with high working capital and lower asset turnover. Furthermore, we find that the USEITI information released over the period to 2016 is (at least) weakly value relevant.     

Does organisational capital influence environmental strategies? Evidence from environmental innovation

As a result of increasing consumer awareness and stakeholder demands about environmental management, firms face stricter challenges surrounding the impact of business operations on the environment. In this regards, environmental innovation is one of the important ways of acting in harmony with the environment. Thus, the purpose of this study is to examine the impact of organisational capital on environmental innovation measured as the process innovation and product innovation. Using environmental innovation data from ASSET4 for the US listed firms between 2002 and 2018, our empirical results reveal a significant positive association between organisational capital and both the process innovation and product innovation. Furthermore, the relationship is stronger in high-profitability and sensitive industries subsamples. These results are robust to additional control variables and endogeneity tests. This study, while endorsing the resource-based view (RBV), provides important implications for the top management teams that organisational capital could be an important channel through which managers can boost environmental innovation.     

Coworking spaces: Understanding,using, and managing sociomateriality

Companies increasingly embrace the new types of work associated with coworking spaces. Coworking spaces started with the idea of a melting pot of open social interaction, collaboration, entrepreneurship, and innovation for freelancers, new ventures, or solo entrepreneurs. Companies may use coworking spaces to invigorate targets and further motivate and inspire their employees. Fundamental to achieving those targets is the coworking space’s interior design and architecture that incorporates emotional and social values that may benefit companies. Our sociomateriality perspective helps to analyze conditions in coworking spaces and guides suggestions on how companies revitalize by using coworking spaces. The purposeful design of the different social and work areas in coworking spaces can improve communication, collaboration, and innovation in companies.