https://hdl.handle.net/10419/313243 2026-10-24T01:34:05Z https://hdl.handle.net/10419/313321 Title: Audit report lag and the cost of equity capital Authors: Bhuiyan, Md. Borhan Uddin; Man, Yimei; Lont, David Abstract: Purpose - This research investigates the effect of audit report lag on the cost of equity capital. We argue that an extended audit report lag reduces the value of information and raises concerns for investors, resulting in an increased cost of equity capital. Design/methodology/approach - We hypothesize that audit report lag increases the firm cost of equity capital. We conduct ordinary least squares (OLS) regression analyses to examine our hypothesis. Finally, we also perform a range of sensitivity tests to examine the hypothesis and robustness of findings. Findings - Using a sample of the listed US firms from 2003 to 2018, we find that firms with higher audit report lag have a higher cost of equity capital. Our findings are economically significant as one standard deviation increase in audit report lag raises 3.82 basis points of cost of equity capital. Furthermore, our results remain robust to endogeneity concerns and alternative proxies for the cost of equity capital measures. Finally, we confirm that audit report lag increases the firm cost of equity capital through increasing information asymmetry and future financial restatement as a mediating channel. Originality/value - We contribute to the theoretical discussion about the role of audit report lag and investors' perceptions. Overall, our results suggest that audit report lag affects a firm cost of equity capital. 2024-01-01T00:00:00Z https://hdl.handle.net/10419/313322 Title: Interlinkages between public expenditures, non-tax government revenues and corruption in the transition economies Authors: Ozun, Alper; Ertuğrul, Hasan Murat; Haliscelik, Ergul Abstract: Purpose - This article examines potential impacts of increase in non-tax government revenues and public expenses on corruption for 11 transition economies in the Central and Eastern Europe. Design/methodology/approach - The empirical analysis uses yearly panel datasets and employs second-generation panel data models which take cross-sectional dependency and slope heterogeneity into account. Findings - The empirical results reveal the fact that there is a strong linkage between public expenses and corruption and a weak linkage between non-tax revenue collection and corruption in the transition economies. We perform the same analysis by using data sets from G-7 countries but do not notice any linkages between those variables. Research limitations/implications - The research topic requires further discussion on constitutional political economy to digest the empirical findings. Thus, an extended version combined with political economic approach might be useful. Practical implications - Through economic transitions, there might be a linkage between public expenditures and corruption index. Thus, public spending might be controlled by using constitutional economics policies. Originality/value - This paper is the first empirical work in the literature, which examines if there is a linkage between corruption and public expenditures and government tax income structure by using panel data sets. Moreover, it compares the results from transition countries with those of G-7 countries and provides certain policy suggestions in the context of constitutional economics. 2024-01-01T00:00:00Z https://hdl.handle.net/10419/313314 Title: Geopolitical risk, economic policy uncertainty, financial stress and stock returns nexus: Evidence from African stock markets Authors: Korsah, David; Mensah, Lord Kwaku Abstract: Purpose Despite the growing recognition of the complex interplay between macroeconomic shock indexes and stock market dynamics, there is a significant research gap concerning their interconnectedness and return spillovers in the context of the African stock market. This leaves much to be desired, given that the financial market in Africa is arguably one of the most preferred destinations for hedge and portfolio diversification (Alagidede, 2008; Anyikwa and Le Roux, 2020). Further, like other financial markets across the globe, the increased capital flow, coupled with declining information asymmetry in Africa, has deepened intra and inter-sectoral integration within and across national borders. This has, thus, increased the susceptibility of financial markets in Africa to spillover of shocks from other sectors and jurisdictions. Additionally, while previous studies have investigated these factors individually (Asafo-Adjei et al., 2020), with much emphasis on developed markets, an all-encompassing examination of spillovers and the connectedness between the aforementioned macroeconomic shock indexes and stock market returns remains largely unexplored. This study happens to be the first to consider the impact of each of the indexes on stock returns in Africa, with evidence spanning from May 2007 to April 2023, covering notable global crisis episodes such as the Global Financial Crisis (GFC), the COVID-19 pandemic and the Russia-Ukraine war. Design/methodology/approach This study employs the novel quantile vector autoregression (QVAR) model, making it the first of its kind in literature. By applying the QVAR, the study captures the potential nonlinear and asymmetric relationship between stock returns and the factors of interest across different quantiles, i.e. bearish, normal and bullish market conditions. Thus, the approach allows for a more accurate and nuanced examination of the tail dependence and extreme events, providing insights into the behaviour of the variables under extreme events. Findings The study revealed that connectedness and spillovers intensified under bearish and bullish market conditions. It was also observed that, among the macroeconomic shock indicators, FSI exerted the highest influence on stock returns in Africa in both bullish and normal market conditions. Across the various market regimes, the Egyptian Exchange (EGX) and the Nairobi Stock Exchange (NSE) were net receiver of shocks. Originality/value This study happens to be the first to consider the impact of each of the indexes on stock returns in Africa, with evidence spanning from May 2007 to April 2023, covering notable global crisis episodes such as the GFC, the COVID-19 pandemic and the Russia-Ukraine war. On the methodology front, this study employs the novel QVAR model, making it one of the few studies in recent literature to apply the said method. 2024-01-01T00:00:00Z https://hdl.handle.net/10419/313318 Title: Nomination and remuneration committee: A review of literature Authors: Putra, Ferdy; Setiawan, Doddy Abstract: Purpose This paper aims to synthesize the diverse literature on nomination and remuneration committees and provide avenues for future research. Design/methodology/approach This study provides a comprehensive literature review of theoretical and empirical studies published in reputable international journals indexed by Scopus. Findings The literature review reveals several aspects of the nomination and remuneration committee. These aspects have been classified into the definition of the nomination and remuneration committee, dimensions of the nomination and remuneration committee, measurement and research review results, reasons for conflict empirical findings, company dynamics and research on moderators, as well as recommending future research. Research limitations/implications Our literature review shows that nomination and remuneration committees play a role in improving board performance and company performance, reducing agency conflicts and improving corporate governance to provide implications for companies, regulators and investors and pave the way for future research. Originality/value This paper identifies issues related to nomination and remuneration committees, their theoretical and practical implications and avenues for future research. 2024-01-01T00:00:00Z