Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for fi... more Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for firms' international strategic expansion. Thus, CBMAs have become an increasingly important approach utilized by a large number of firms in multiple regions across the globe. It has gained in popularity over the last few decades. However, the occurrence of CBMAs has grown dramatically in the last few decades, academic research on this type of strategic action has not kept pace with the changes. Though there is considerable research in the area, it is unfortunately fragmented, leaving gaps that need to be addressed. Herein, the researchers have scrupulously reviewed the relevant literatures which pledge strategic supports for firm performance following CBMAs strategy under cross-national distance. The relevant literature on this topic is also tabulated and grouped by institutional based view to indicate major findings. Most importantly, the study identifies gaps in the literature and highlight ten institutional distance factors that provide directions that influence on firm performance following CBMAs in different institutional settings in different countries because institutions vary across countries because of their path-dependent nature. It has influence on firm performance following CBMAs. It is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence on firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance is obviously important for firms in demonstrating positive performing following CBMAs.
Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for fi... more Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for firms’ international strategic expansion. Thus, CBMAs have become an increasingly important approach utilized by a large number of firms in multiple regions across the globe. It has gained in popularity over the last few decades. However, the occurrence of CBMAs has grown dramatically in the last few decades, academic research on this type of strategic action has not kept pace with the changes. Though there is considerable research in the area, it is unfortunately fragmented, leaving gaps that need to be addressed. Herein, the researchers have scrupulously reviewed the relevant literatures which pledge strategic supports for firm performance following CBMAs strategy under cross-national distance. The relevant literature on this topic is also tabulated and grouped by institutional based view to indicate major findings. Most importantly, the study identifies gaps in the literature and highlight ten institutional distance factors that provide directions that influence on firm performance following CBMAs in different institutional settings in different countries because institutions vary across countries because of their path-dependent nature. It has influence on firm performance following CBMAs. It is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence on firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance is obviously important for firms in demonstrating positive performing following CBMAs.
Corporate environmental disclosure is highly scrutinized both by the stakeholders and the academi... more Corporate environmental disclosure is highly scrutinized both by the stakeholders and the academia due to their greater impact within an economy. Interestingly, many corporations in the emerging countries go for voluntary environmental disclosure even without any mandatory requirement. Recognizing the scant literature explaining such inclination this paper attempts to uncover the underlying factors that may help for future enhancement of the culture of voluntary environmental disclosure. Studying a total of 284 firm-year observations of the years 2010 to 2014 of the publicly listed companies representing all industries of Bangladesh, a linear regression model is operationalized. This study finds that voluntary environmental disclosure varies over the years and across the industries. Moreover, voluntary environmental disclosure is affected by firm size and operating performance. Interestingly, the voluntary environmental disclosure also has a habitual influence since the firms having disclosure in one year tend to disclose more in the next year. This study provides support to the applicability of organizational legitimacy theory and the institutional theory in the context of a developing country with no strict environmental disclosure requirement.
The Journal of Internet Banking and Commerce, 2017
The debate on the stock return predictability of Capital Asset Pricing Model (CAPM) versus Fama F... more The debate on the stock return predictability of Capital Asset Pricing Model (CAPM) versus Fama French Three Factor Model (FF3FM) is still persistent in the academic literature. The scholarly attention on the FF3FM is seemingly inadequate relative to its return predictability evidenced in several studies. This study compares CAPM versus FF3FM using multiple regression analysis and Thiel’s U2 Test for stock returns in Kuala Lumpur Stock Exchange. Explanatory power of market, size, and growth factors for the time-series expected stock returns is also examined in this study. The results indicate significant improvement of market beta in explaining the stock returns. FF3FM is found to have stronger explanatory power than that of CAPM as the adjusted R2 value of the FF3FM is higher than that of CAPM. FF3FM is found better than CAPM also based on the Thiel’s U2 Test value.
The economic and social importance of the Small and Medium Enterprise (SME) sector nowadays is we... more The economic and social importance of the Small and Medium Enterprise (SME) sector nowadays is well acknowledged in academic and policy literature.SMEs play a very momentous role in the economy in terms of economic growth, employment creation, entrepreneur development and export earnings. Small enterprises lack access to finance due to their own constraints as well as the financial institutions’ perception of high risk and high cost.This paper attempts to find out the problems encountered by small enterprises in obtaining loans from banks in Bangladesh and the major problems faced by banks while financing small enterprises.For collecting primary data from the small businesses, three hundred forty one (341) small enterprises were interviewed through the questionnaires.Survey results show that 65.39% enterprises received loans from banks, while 34.61% enterprises did not receive any loan. Small enterprises face several problems in obtaining loan from banks.It is evident that high inte...
International Journal of Economics and Financial Issues, 2017
The study further investigates the link between the constructed financial stress index (FSI) and ... more The study further investigates the link between the constructed financial stress index (FSI) and overall economic activity. We approximate the co-movement of the identified financial and economic factors into a single index using the principal component analysis. The combine variables explain about 60% of the total variation in the Malaysian FSI and practically captured the known key aspects of financial stress in Malaysia. The study further applies asymmetric causality and structural vector autoregressive to distinguish between causality in good and bad times and examine the structural impulse responses in changes in the economic activity arising from the shocks in financial stress. The study reveals that changes in the Malaysian FSI (MFSI) negatively affects the economic activity of Malaysia whereas, changes in the economic activity is positively related to the MFSI. Furthermore, the asymmetric causality indicates that high financial stress affect the economic activity during econ...
Objective: Purpose of this study is to investigate long run shareholders’ wealth effect (SWE) of ... more Objective: Purpose of this study is to investigate long run shareholders’ wealth effect (SWE) of Malaysian acquiring firms following cross-border acquisition (CBA).Methodology: Using buy-and-hold abnormal returns model for shareholder’s wealth effect and Euclidean method for identifying matching firms, study was employed 176 CBA deals of Malaysian acquiring firms for period of 2004-2015.Using conventional t-statistics, skewness adjusted t-statistics, bootstrapping skewness adjusted t-statistics and Multivariate of Analysis of Variance (MANOVA) as statistical tools were analyzed the data and test the hypotheses that acquiring firms’ wealth effect is impacted by CBA deals. Results: Study found that shareholder wealth effect of acquiring firm is significantly positive in shorter period while negative or mixed effect in longer period due to use different method to measures.However, there is no difference of SWE between the groups: Level of control in target firm (including SWE of Major ...
Journal of Small Business & Entrepreneurship, 2020
Although firm growth is an old issue, very limited number of studies have found on the issues of ... more Although firm growth is an old issue, very limited number of studies have found on the issues of small firm growth. Studies in many countries have focused on some specific growth factors and no comprehensive research on this issue is available to draw a conclusion. Based on the concept of the theory of 'Resource Based View (RBV)', current study motivated to see how the resources like finance and financial literacy of owner-manager affect financial growth of small firms and the role government support plays in that relationship. Data was collected through questionnaire from 407 owner-managers of small firms. Using partial least squares, the study found that both finance and financial literacy has strong positive relation with small firm financial growth. Astoundingly, the study uncovered that government support does not moderate the relationships between finance, financial literacy and small firm financial growth in the expected way, which the study argues to be a result of the seemingly weakness of the government support distributions. Therefore, policy makers and practitioners should ensure the better access to financial resources of small firms and required financial literacy of owner-managers as well as effective government support for fostering more growth of small firms.
Journal of Accounting and Finance in Emerging Economies, 2017
Purpose: The purpose of this study is to investigate long run shareholders' wealth effect (SW... more Purpose: The purpose of this study is to investigate long run shareholders' wealth effect (SWE) of Malaysian acquiring firms following cross-border acquisition (CBA). Methodology: Using buy-and-hold abnormal returns (BHAR) measure of SWE and Euclidean distance method for identifying matching firms, the study investigated 176 CBA deals of Malaysian acquiring firms for the years 2004-2015. Both parametric tests (such as conventional t-statistics, skewness adjusted t-statistics, bootstrapping skewness adjusted t-statistics and Multivariate of Analysis of Variance) and non-parametric statistical (such as Wilcoxon-Mann-Whitney test) tools were employed to analyze the data and test the hypotheses regarding the impact of CBA deals on acquiring firms' SWE. Results: The research found that the SWE of acquiring firms is significantly positive in the shorter period while negative or mixed in the longer period. Furthermore, SWE is found to be different across several groups: (i) Shariah...
International Journal of Academic Research in Business and Social Sciences, 2016
The objective of the paper is to review the previous studies on factors affecting small business ... more The objective of the paper is to review the previous studies on factors affecting small business growth or performance for the period of 2006-2014. The review of the literature of factors affecting small business growth or performance based on the papers available in online and published in referred journals is focused. 34 papers are considered as the primary research topic. Each of the articles has been used as the unit of analysis. The four broad areas of factors has been focused namely owner-manager characteristics, characteristics of firm, financial factors and external environment. The paper provides some ideas and approaches used in the previous literature to describe small business growth and factors affecting the growth. The literatures suggest that there is no unified theory or model to describe small business growth. Although there are many studies on the issue, still the theory of small business growth is very fragmented and inconsistent. The new theoretical perspectives are highly required for the growth process in small businesses sectors. Considering the approaches used in the previous literature, new research approaches may be adapted for more understanding of small business growth and the growth factors.
The extensive issuance of Islamic bonds in different parts of the world raises the question of wh... more The extensive issuance of Islamic bonds in different parts of the world raises the question of whether such a financing activity leads to better firm performance or not and what the determinants are of this performance. The literature offers scant answers. Thus, this study measures the long-run performance of Malaysian firms following their Islamic debt issues and explores the agency cost explanations of the performance. One-, two-, and three-year stock return performances are measured by the buy and hold abnormal return (BHAR) of Islamic debt issues using samples of 113, 101, and 86 Islamic debt issues, respectively, in the 2001-2009 period. The significance of the performance is tested by heteroscedasticity-and-serial correlation-consistent t-statistics. The determinants of BHAR are investigated using the ordinary least square regression method. The results show a significant positive long-run performance beyond a one-year period that is negatively influenced by growth opportunity and free cash flow when the issue increases the debt ratio.
The academic and practical interest in the field of small business and entrepreneurship has recen... more The academic and practical interest in the field of small business and entrepreneurship has recently gained considerable attention. However, an important area of concern within this field has been to find appropriate and suitable research approach or technique that could assist the researchers to produce positive research outcomes. Many researches in this field have been conducted without paying attention to some of their unique characteristics. Therefore, this study identifies and documents various pitfalls associated with these types of researches. It also offers the guidelines and important considerations for researchers in this area with the intention of reducing future weaknesses.
Academic literature suggests that dividend payments should have no impact on shareholders value i... more Academic literature suggests that dividend payments should have no impact on shareholders value in the absence of taxes and market imperfections. Hence, companies should invest excess funds in the positive net present value projects instead of paying out them to the ...
The economic and social importance of Small Enterprise (SE) sector nowadays is well acknowledged ... more The economic and social importance of Small Enterprise (SE) sector nowadays is well acknowledged in academic and policy literature. SEs play a very momentous role in all countries including the developing economy like Bangladesh by contributing toward sustainable economic growth, employment creation, entrepreneurship development and export earnings. Focussing on the small enterprises’ lack of access to finance due to their own constraints as well as the financial institutions’ perception of high risk and high cost, this paper reveals the problems encountered by the small enterprises in obtaining loans from commercial banks in Bangladesh and the major problems faced by commercial banks while financing small enterprises. Primary data collection reaches three hundred forty one (341) small enterprises where they were interviewed using a set of questionnaires administrated directly by the researchers. The survey results indicate that 65.39% enterprises received loans from banks, while th...
All praise and thanks belongs to Allah, thc cntire source of knowledge and wisdom. who has enable... more All praise and thanks belongs to Allah, thc cntire source of knowledge and wisdom. who has enabled me to pursuc this study. I know that His blessings become endless for this journey by mcans of thc prayers of my mother, Ummc Kulsom, and m y father, Md Rais Uddin. My deepest gratitude to my supervisor Professor Dr. Yusnidah Ibraliim, for her coiltinuous unyielding supports and insights in every aspects of this study. I have no words to express my gratehl acknowledgement to my supervisor for becoming the source of the guidance, moral support, and encouragements throughout this journey. I am indebted for all her efforts that helped me to mature myself as a researcher. I would like to express my special thanks to Dr. Kamarun lVisham Taufil Mohd, and Dr. Angappan Regupathi, who has given valuable inputs to this study. Also, it is not possible to forget the encouragements I have got from Dr. Mohd Sobri Minai whenever I met him. I am also thankful for all other supports from UUM and its staffs. Since my childhood, it is my parents. who have brought me to this stage of education with lot of sacrifice in their Iife. They have continuously inspired me since I start the PhD. Thanks to my wife, Shamema Sulatana, and my beloved son, Nure Ahrnmad Riham, for their patience, love, and understanding during my study. It really helped me to movc ahead the difficult times when I got them beside me. It was always encouraging to hear from my sister, Dr. Mohinee Begum, who always asked me to complete the study as soon as possible. Finally. thanks to all my relatives, colleagues, and friends for their continuous inspiration for me.
Asian Academy of Management Journal of Accounting and Finance
This study focuses on an agency cost explanation of the long-run performance of debt issuers base... more This study focuses on an agency cost explanation of the long-run performance of debt issuers based on debt issuance data in Malaysia during the period from January 2001 to October 2009. Long-run performance is measured by buy and hold abnormal return (BHAR), while growth opportunities (GO), managerial ownership (MO), ownership concentration (OC) and free cash flow (FCF) are adopted as proxies for agency costs. Using a linear regression method, this study finds that BHAR is positively influenced by GO and OC but negatively influenced by MO and FCF, which supports an agency cost explanation of capital structure. An improvement in the performance of debt issuers is found to be associated with the monitoring of debt by debt issuers. Debt issuers with more concentrated ownership and lower MO benefit from the issuance of debt through a reduction of agency costs.
The extensive issuance of Islamic bonds in different parts of the world raises the question of wh... more The extensive issuance of Islamic bonds in different parts of the world raises the question of whether such a financing activity leads to better firm performance or not and what the determinants are of this performance. The literature offers scant answers. Thus, this study measures the long-run performance of Malaysian firms following their Islamic debt issues and explores the agency cost explanations of the performance. One-, two-, and three-year stock return performances are measured by the buy and hold abnormal return (BHAR) of Islamic debt issues using samples of 113, 101, and 86 Islamic debt issues, respectively, in the 20012009 period. The significance of the performance is tested by heteroscedasticity-and-serial correlation-consistent t-statistics. The determinants of BHAR are investigated using the ordinary least square regression method. The results show a significant positive long-run performance beyond a one-year period that is negatively influenced by growth opportunity and free cash flow when the issue increases the debt ratio.
Institutions vary across countries because of their path-dependent nature. It has influence on fi... more Institutions vary across countries because of their path-dependent nature. It has influence on firm performance following cross-border mergers and acquisitions (CBMAs). CBMAs is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance are obviously important for firms in demonstrating positive performing following CBMAs.
The objective of the paper is to review the previous studies on factors affecting small business ... more The objective of the paper is to review the previous studies on factors affecting small business growth or performance for the period of 2006-2014. The review of the literature of factors affecting small business growth or performance based on the papers available in online and published in referred journals is focused. 34 papers are considered as the primary research topic. Each of the articles has been used as the unit of analysis. The four broad areas of factors has been focused namely owner-manager characteristics, characteristics of firm, financial factors and external environment. The paper provides some ideas and approaches used in the previous literature to describe small business growth and factors affecting the growth. The literatures suggest that there is no unified theory or model to describe small business growth. Although there are many studies on the issue, still the theory of small business growth is very fragmented and inconsistent. The new theoretical perspectives are highly required for the growth process in small businesses sectors. Considering the approaches used in the previous literature, new research approaches may be adapted for more understanding of small business growth and the growth factors.
Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for fi... more Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for firms' international strategic expansion. Thus, CBMAs have become an increasingly important approach utilized by a large number of firms in multiple regions across the globe. It has gained in popularity over the last few decades. However, the occurrence of CBMAs has grown dramatically in the last few decades, academic research on this type of strategic action has not kept pace with the changes. Though there is considerable research in the area, it is unfortunately fragmented, leaving gaps that need to be addressed. Herein, the researchers have scrupulously reviewed the relevant literatures which pledge strategic supports for firm performance following CBMAs strategy under cross-national distance. The relevant literature on this topic is also tabulated and grouped by institutional based view to indicate major findings. Most importantly, the study identifies gaps in the literature and highlight ten institutional distance factors that provide directions that influence on firm performance following CBMAs in different institutional settings in different countries because institutions vary across countries because of their path-dependent nature. It has influence on firm performance following CBMAs. It is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence on firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance is obviously important for firms in demonstrating positive performing following CBMAs.
Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for fi... more Cross-border mergers and acquisitions (CBMAs) have long been used as an important strategy for firms’ international strategic expansion. Thus, CBMAs have become an increasingly important approach utilized by a large number of firms in multiple regions across the globe. It has gained in popularity over the last few decades. However, the occurrence of CBMAs has grown dramatically in the last few decades, academic research on this type of strategic action has not kept pace with the changes. Though there is considerable research in the area, it is unfortunately fragmented, leaving gaps that need to be addressed. Herein, the researchers have scrupulously reviewed the relevant literatures which pledge strategic supports for firm performance following CBMAs strategy under cross-national distance. The relevant literature on this topic is also tabulated and grouped by institutional based view to indicate major findings. Most importantly, the study identifies gaps in the literature and highlight ten institutional distance factors that provide directions that influence on firm performance following CBMAs in different institutional settings in different countries because institutions vary across countries because of their path-dependent nature. It has influence on firm performance following CBMAs. It is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence on firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance is obviously important for firms in demonstrating positive performing following CBMAs.
Corporate environmental disclosure is highly scrutinized both by the stakeholders and the academi... more Corporate environmental disclosure is highly scrutinized both by the stakeholders and the academia due to their greater impact within an economy. Interestingly, many corporations in the emerging countries go for voluntary environmental disclosure even without any mandatory requirement. Recognizing the scant literature explaining such inclination this paper attempts to uncover the underlying factors that may help for future enhancement of the culture of voluntary environmental disclosure. Studying a total of 284 firm-year observations of the years 2010 to 2014 of the publicly listed companies representing all industries of Bangladesh, a linear regression model is operationalized. This study finds that voluntary environmental disclosure varies over the years and across the industries. Moreover, voluntary environmental disclosure is affected by firm size and operating performance. Interestingly, the voluntary environmental disclosure also has a habitual influence since the firms having disclosure in one year tend to disclose more in the next year. This study provides support to the applicability of organizational legitimacy theory and the institutional theory in the context of a developing country with no strict environmental disclosure requirement.
The Journal of Internet Banking and Commerce, 2017
The debate on the stock return predictability of Capital Asset Pricing Model (CAPM) versus Fama F... more The debate on the stock return predictability of Capital Asset Pricing Model (CAPM) versus Fama French Three Factor Model (FF3FM) is still persistent in the academic literature. The scholarly attention on the FF3FM is seemingly inadequate relative to its return predictability evidenced in several studies. This study compares CAPM versus FF3FM using multiple regression analysis and Thiel’s U2 Test for stock returns in Kuala Lumpur Stock Exchange. Explanatory power of market, size, and growth factors for the time-series expected stock returns is also examined in this study. The results indicate significant improvement of market beta in explaining the stock returns. FF3FM is found to have stronger explanatory power than that of CAPM as the adjusted R2 value of the FF3FM is higher than that of CAPM. FF3FM is found better than CAPM also based on the Thiel’s U2 Test value.
The economic and social importance of the Small and Medium Enterprise (SME) sector nowadays is we... more The economic and social importance of the Small and Medium Enterprise (SME) sector nowadays is well acknowledged in academic and policy literature.SMEs play a very momentous role in the economy in terms of economic growth, employment creation, entrepreneur development and export earnings. Small enterprises lack access to finance due to their own constraints as well as the financial institutions’ perception of high risk and high cost.This paper attempts to find out the problems encountered by small enterprises in obtaining loans from banks in Bangladesh and the major problems faced by banks while financing small enterprises.For collecting primary data from the small businesses, three hundred forty one (341) small enterprises were interviewed through the questionnaires.Survey results show that 65.39% enterprises received loans from banks, while 34.61% enterprises did not receive any loan. Small enterprises face several problems in obtaining loan from banks.It is evident that high inte...
International Journal of Economics and Financial Issues, 2017
The study further investigates the link between the constructed financial stress index (FSI) and ... more The study further investigates the link between the constructed financial stress index (FSI) and overall economic activity. We approximate the co-movement of the identified financial and economic factors into a single index using the principal component analysis. The combine variables explain about 60% of the total variation in the Malaysian FSI and practically captured the known key aspects of financial stress in Malaysia. The study further applies asymmetric causality and structural vector autoregressive to distinguish between causality in good and bad times and examine the structural impulse responses in changes in the economic activity arising from the shocks in financial stress. The study reveals that changes in the Malaysian FSI (MFSI) negatively affects the economic activity of Malaysia whereas, changes in the economic activity is positively related to the MFSI. Furthermore, the asymmetric causality indicates that high financial stress affect the economic activity during econ...
Objective: Purpose of this study is to investigate long run shareholders’ wealth effect (SWE) of ... more Objective: Purpose of this study is to investigate long run shareholders’ wealth effect (SWE) of Malaysian acquiring firms following cross-border acquisition (CBA).Methodology: Using buy-and-hold abnormal returns model for shareholder’s wealth effect and Euclidean method for identifying matching firms, study was employed 176 CBA deals of Malaysian acquiring firms for period of 2004-2015.Using conventional t-statistics, skewness adjusted t-statistics, bootstrapping skewness adjusted t-statistics and Multivariate of Analysis of Variance (MANOVA) as statistical tools were analyzed the data and test the hypotheses that acquiring firms’ wealth effect is impacted by CBA deals. Results: Study found that shareholder wealth effect of acquiring firm is significantly positive in shorter period while negative or mixed effect in longer period due to use different method to measures.However, there is no difference of SWE between the groups: Level of control in target firm (including SWE of Major ...
Journal of Small Business & Entrepreneurship, 2020
Although firm growth is an old issue, very limited number of studies have found on the issues of ... more Although firm growth is an old issue, very limited number of studies have found on the issues of small firm growth. Studies in many countries have focused on some specific growth factors and no comprehensive research on this issue is available to draw a conclusion. Based on the concept of the theory of 'Resource Based View (RBV)', current study motivated to see how the resources like finance and financial literacy of owner-manager affect financial growth of small firms and the role government support plays in that relationship. Data was collected through questionnaire from 407 owner-managers of small firms. Using partial least squares, the study found that both finance and financial literacy has strong positive relation with small firm financial growth. Astoundingly, the study uncovered that government support does not moderate the relationships between finance, financial literacy and small firm financial growth in the expected way, which the study argues to be a result of the seemingly weakness of the government support distributions. Therefore, policy makers and practitioners should ensure the better access to financial resources of small firms and required financial literacy of owner-managers as well as effective government support for fostering more growth of small firms.
Journal of Accounting and Finance in Emerging Economies, 2017
Purpose: The purpose of this study is to investigate long run shareholders' wealth effect (SW... more Purpose: The purpose of this study is to investigate long run shareholders' wealth effect (SWE) of Malaysian acquiring firms following cross-border acquisition (CBA). Methodology: Using buy-and-hold abnormal returns (BHAR) measure of SWE and Euclidean distance method for identifying matching firms, the study investigated 176 CBA deals of Malaysian acquiring firms for the years 2004-2015. Both parametric tests (such as conventional t-statistics, skewness adjusted t-statistics, bootstrapping skewness adjusted t-statistics and Multivariate of Analysis of Variance) and non-parametric statistical (such as Wilcoxon-Mann-Whitney test) tools were employed to analyze the data and test the hypotheses regarding the impact of CBA deals on acquiring firms' SWE. Results: The research found that the SWE of acquiring firms is significantly positive in the shorter period while negative or mixed in the longer period. Furthermore, SWE is found to be different across several groups: (i) Shariah...
International Journal of Academic Research in Business and Social Sciences, 2016
The objective of the paper is to review the previous studies on factors affecting small business ... more The objective of the paper is to review the previous studies on factors affecting small business growth or performance for the period of 2006-2014. The review of the literature of factors affecting small business growth or performance based on the papers available in online and published in referred journals is focused. 34 papers are considered as the primary research topic. Each of the articles has been used as the unit of analysis. The four broad areas of factors has been focused namely owner-manager characteristics, characteristics of firm, financial factors and external environment. The paper provides some ideas and approaches used in the previous literature to describe small business growth and factors affecting the growth. The literatures suggest that there is no unified theory or model to describe small business growth. Although there are many studies on the issue, still the theory of small business growth is very fragmented and inconsistent. The new theoretical perspectives are highly required for the growth process in small businesses sectors. Considering the approaches used in the previous literature, new research approaches may be adapted for more understanding of small business growth and the growth factors.
The extensive issuance of Islamic bonds in different parts of the world raises the question of wh... more The extensive issuance of Islamic bonds in different parts of the world raises the question of whether such a financing activity leads to better firm performance or not and what the determinants are of this performance. The literature offers scant answers. Thus, this study measures the long-run performance of Malaysian firms following their Islamic debt issues and explores the agency cost explanations of the performance. One-, two-, and three-year stock return performances are measured by the buy and hold abnormal return (BHAR) of Islamic debt issues using samples of 113, 101, and 86 Islamic debt issues, respectively, in the 2001-2009 period. The significance of the performance is tested by heteroscedasticity-and-serial correlation-consistent t-statistics. The determinants of BHAR are investigated using the ordinary least square regression method. The results show a significant positive long-run performance beyond a one-year period that is negatively influenced by growth opportunity and free cash flow when the issue increases the debt ratio.
The academic and practical interest in the field of small business and entrepreneurship has recen... more The academic and practical interest in the field of small business and entrepreneurship has recently gained considerable attention. However, an important area of concern within this field has been to find appropriate and suitable research approach or technique that could assist the researchers to produce positive research outcomes. Many researches in this field have been conducted without paying attention to some of their unique characteristics. Therefore, this study identifies and documents various pitfalls associated with these types of researches. It also offers the guidelines and important considerations for researchers in this area with the intention of reducing future weaknesses.
Academic literature suggests that dividend payments should have no impact on shareholders value i... more Academic literature suggests that dividend payments should have no impact on shareholders value in the absence of taxes and market imperfections. Hence, companies should invest excess funds in the positive net present value projects instead of paying out them to the ...
The economic and social importance of Small Enterprise (SE) sector nowadays is well acknowledged ... more The economic and social importance of Small Enterprise (SE) sector nowadays is well acknowledged in academic and policy literature. SEs play a very momentous role in all countries including the developing economy like Bangladesh by contributing toward sustainable economic growth, employment creation, entrepreneurship development and export earnings. Focussing on the small enterprises’ lack of access to finance due to their own constraints as well as the financial institutions’ perception of high risk and high cost, this paper reveals the problems encountered by the small enterprises in obtaining loans from commercial banks in Bangladesh and the major problems faced by commercial banks while financing small enterprises. Primary data collection reaches three hundred forty one (341) small enterprises where they were interviewed using a set of questionnaires administrated directly by the researchers. The survey results indicate that 65.39% enterprises received loans from banks, while th...
All praise and thanks belongs to Allah, thc cntire source of knowledge and wisdom. who has enable... more All praise and thanks belongs to Allah, thc cntire source of knowledge and wisdom. who has enabled me to pursuc this study. I know that His blessings become endless for this journey by mcans of thc prayers of my mother, Ummc Kulsom, and m y father, Md Rais Uddin. My deepest gratitude to my supervisor Professor Dr. Yusnidah Ibraliim, for her coiltinuous unyielding supports and insights in every aspects of this study. I have no words to express my gratehl acknowledgement to my supervisor for becoming the source of the guidance, moral support, and encouragements throughout this journey. I am indebted for all her efforts that helped me to mature myself as a researcher. I would like to express my special thanks to Dr. Kamarun lVisham Taufil Mohd, and Dr. Angappan Regupathi, who has given valuable inputs to this study. Also, it is not possible to forget the encouragements I have got from Dr. Mohd Sobri Minai whenever I met him. I am also thankful for all other supports from UUM and its staffs. Since my childhood, it is my parents. who have brought me to this stage of education with lot of sacrifice in their Iife. They have continuously inspired me since I start the PhD. Thanks to my wife, Shamema Sulatana, and my beloved son, Nure Ahrnmad Riham, for their patience, love, and understanding during my study. It really helped me to movc ahead the difficult times when I got them beside me. It was always encouraging to hear from my sister, Dr. Mohinee Begum, who always asked me to complete the study as soon as possible. Finally. thanks to all my relatives, colleagues, and friends for their continuous inspiration for me.
Asian Academy of Management Journal of Accounting and Finance
This study focuses on an agency cost explanation of the long-run performance of debt issuers base... more This study focuses on an agency cost explanation of the long-run performance of debt issuers based on debt issuance data in Malaysia during the period from January 2001 to October 2009. Long-run performance is measured by buy and hold abnormal return (BHAR), while growth opportunities (GO), managerial ownership (MO), ownership concentration (OC) and free cash flow (FCF) are adopted as proxies for agency costs. Using a linear regression method, this study finds that BHAR is positively influenced by GO and OC but negatively influenced by MO and FCF, which supports an agency cost explanation of capital structure. An improvement in the performance of debt issuers is found to be associated with the monitoring of debt by debt issuers. Debt issuers with more concentrated ownership and lower MO benefit from the issuance of debt through a reduction of agency costs.
The extensive issuance of Islamic bonds in different parts of the world raises the question of wh... more The extensive issuance of Islamic bonds in different parts of the world raises the question of whether such a financing activity leads to better firm performance or not and what the determinants are of this performance. The literature offers scant answers. Thus, this study measures the long-run performance of Malaysian firms following their Islamic debt issues and explores the agency cost explanations of the performance. One-, two-, and three-year stock return performances are measured by the buy and hold abnormal return (BHAR) of Islamic debt issues using samples of 113, 101, and 86 Islamic debt issues, respectively, in the 20012009 period. The significance of the performance is tested by heteroscedasticity-and-serial correlation-consistent t-statistics. The determinants of BHAR are investigated using the ordinary least square regression method. The results show a significant positive long-run performance beyond a one-year period that is negatively influenced by growth opportunity and free cash flow when the issue increases the debt ratio.
Institutions vary across countries because of their path-dependent nature. It has influence on fi... more Institutions vary across countries because of their path-dependent nature. It has influence on firm performance following cross-border mergers and acquisitions (CBMAs). CBMAs is a fast and direct way for firms in one country to acquire advanced strategic assets in another country in order to improve their competitive advantage. This study is an effort to discuss the institutional distance (ID) factors that could influence firm performance following CBMAs. Using the institution-based view (IBV) as a theoretical lens, this study emphasizes on the impact of formal and informal ID factors on firm performance following CBMAs. The study argues that formal institutional distance (political, economic, political, administrative, and infrastructural) could positively affect acquiring firm performance, while informal institutional distance (cultural, demographic, knowledge, connectedness, and geographical) could negatively affect acquiring firm performance. So, favourable institutional distance are obviously important for firms in demonstrating positive performing following CBMAs.
The objective of the paper is to review the previous studies on factors affecting small business ... more The objective of the paper is to review the previous studies on factors affecting small business growth or performance for the period of 2006-2014. The review of the literature of factors affecting small business growth or performance based on the papers available in online and published in referred journals is focused. 34 papers are considered as the primary research topic. Each of the articles has been used as the unit of analysis. The four broad areas of factors has been focused namely owner-manager characteristics, characteristics of firm, financial factors and external environment. The paper provides some ideas and approaches used in the previous literature to describe small business growth and factors affecting the growth. The literatures suggest that there is no unified theory or model to describe small business growth. Although there are many studies on the issue, still the theory of small business growth is very fragmented and inconsistent. The new theoretical perspectives are highly required for the growth process in small businesses sectors. Considering the approaches used in the previous literature, new research approaches may be adapted for more understanding of small business growth and the growth factors.
Debt financing is a major source of corporate financing in many emerging countries including Mala... more Debt financing is a major source of corporate financing in many emerging countries including Malaysia. However, the knowledge on shareholders wealth created from debt financing decision and sources of the wealth creation is scant and inconclusive. The scarcity of literature is more noticeable in emerging market environment and market where Islamic debt securities coexist with conventional debt securities. In response to this knowledge gap, this study attempts to examine the short and long run stock return performance of debt security issuers as well as the determinants of the long run stock return performance. Samples of 136, 165, 145, and 126 bond issues during January 2001 to October 2009 are used for analyzing short run announcement effects, as well as one, two, and three year performance, respectively. Using event study method, this study finds that the shareholders of bond-issuing firms experience significantly positive wealth creation around the announcement of the issues. Value weighted average of cumulative abnormal return and buy and hold abnormal return of the portfolio of debt issuers as well as the intercept of Fama-French three factor model is used for estimating the long run performance. The significance of buy and hold return is tested by implementing bootstrapped skewness adjusted, and heteroscedasticity and serial correlation consistent t-statistics. Results show that the shareholders of bond issuing firms experience significant long run performance in three-year period after the issue. Among the significant determinants. capital structure change, growth opportunity, and ownership concentration influence long run performance positively. The effects of growth opportunity and ownership concentration are significantly moderated by capital structure changes. Some variables only affect the long run performance when the debt issuance is associated with capital structure change. Among them, choice of Islamic debt, debt tax shield. and free cash flow which influence the long run performance negatively, while firm size influences positively. As a whole, this study finds evidence for partial applicability of trade off and agency costs theory in explaining long run wealth creation by the debt financing decision in Malaysia. The results of this study indicate that large companies and high ownership concentration companies should issue debts for meeting their financial requirement. Large companies can enjoy the benefits of issuing debts, such as interest tax saving, without facing severe financial distress costs, while high ownership concentration companies that issue debts can retain control on the companies' activities and overcome usage of free cash flows for private benefits.
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Papers by Md Mohan Uddin