phD Thesis
Thesis Title: Corporate Governance in Developing Countries: A Case Study of Bangladesh
Summary: This study finds that with pull and push effect, Bangladesh corporate sector imitated many corporate governance practices, ignoring the underlying institutional differences. While many of these corporate governance practices are important for making the corporation’s board members and executives accountable, due to high levels of insider ownership, many good corporate governance practices were found to be illusions within the corporate sector in Bangladesh. This study implies that due to institutional differences in countries, the corporate governance practices developed in the West cannot be transplanted; in other words, ‘one size fits all’ type corporate governance practices can’t be exercised around the world.
Completion Year: 2009
Journal Articles
Carbon Risk and Cost of Equity: The Role of Country-Level Governance
Summary: The growing concerns over climate change and carbon emissions have heightened the need to understand the financial implications of firms’ carbon risk (CRISK). This study examines the relationship between carbon risk (CRISK) and cost of equity (COE) and whether, and to what extent, this relationship is affected by country-level governance. Using a sample of 6,760 firm-year observations from 13 Asia-Pacific countries over the period 2002–2023, firms with higher CRISK are found to have higher implied COE, with this relationship stronger in countries with strong country-level governance. The main findings are robust to addressing endogeneity, sample selection bias and heterogeneity problems through using alternative model specifications. They are also robust after using individual COE estimates and sub-sample analysis. Further analysis indicates that the CRISK–COE relationship is positive (neutral) before and after (during) the Global Financial Crisis (GFC). This study contributes to the literature by providing empirical evidence on the financial consequences of carbon risk, emphasizing the importance of national governance structures in moderating the CRISK–COE relationship. It also provides valuable insights into how equity market participants respond to CRISK in a multi-country context highlighting the moderating role of country-level governance on the CRISK–COE relationship.
Year Published: 2025
Journal Rank: ABDC 'C' Ranked, scimago 'Q1' Ranked.
Success or Failure? Managerial Ability and Firm Emergence from Chapter 11 Bankruptcy.
Summary: This study investigates the impact of managerial ability on the likelihood of firms emerging from Chapter 11 bankruptcy. Drawing on a sample of 1,054 U.S. bankrupt firms, we uncover a counterintuitive dynamic: firms led by high-ability managers are significantly less likely to emerge successfully. This finding persists even after controlling for firm characteristics, governance mechanisms, macroeconomic conditions, regulatory events, and emergence characteristics. Further analyses indicate that the CEO’s expertise is crucial in increasing the likelihood of firm emergence, rather than managerial ability alone. We also find that firms retaining incumbent managers with low but ostensibly “non-replaceable” ability consistently fail to restructure effectively. In contrast, introducing new managers with early replacement can mitigate the likelihood of the firm emerging from bankruptcy. Overall, our results highlight the complex and context-dependent influence of managerial ability during financial distress, revealing the success and failure of bankrupt firms in the bankruptcy Chapter 11 recovery process.
Year Published: 2025
Journal Rank: ABDC 'A' Ranked, scimago 'Q2' Ranked.
The effects of carbon disclosure and carbon performance on agency cost: International evidence
Summary: This study examines the relationships among carbon disclosure (CD), carbon performance (CP), and agency cost (AC) using a global sample across major industries. Employing Partial Least Squares Structural Equation Modelling (PLS-SEM) via WarpPLS, we find that increased carbon disclosure reduces agency cost, while improved carbon performance may increase it, likely due to the capital-intensive nature of environmental investments. Carbon disclosure is shown to mediate the relationship between carbon performance and agency cost. Firms in countries with emissions trading schemes and higher environmental performance indices tend to perform better in carbon management. Unlike previous studies focused solely on firm performance, this research contributes to the literature by examining how carbon-related practices influence agency costs, using comprehensive CDP-based measures and agency theory, stakeholder theory, and instrumental stakeholder perspectives.
Year Published: 2025
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Title: Does size matter? Examining the probability of firm emergence from bankruptcy
Summary: We examine the association between firm size and the likelihood of emergence from bankruptcy filed under Chapter 11. Using 715 firm-year observations from 1979 to 2019, we find that large firms are less likely to emerge. We use performance, financial constraints, and information environment as potential channels to examine the mechanism by which firm size affects the likelihood of firm emergence from bankruptcy. Further analysis shows that the likelihood of bankruptcy emergence is lower for large firms before the global financial crisis of 2007.
Year Published: 2024
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Title: Corporate carbon performance and firm risk: Evidence from Asia-Pacific countries
- Highlights
• Corporate carbon performance (CCP) is negatively associated with a firm’s total, idiosyncratic and systematic risk.
• Country-level governance quality accentuates the negative association between corporate carbon performance (CCP) and firm risk.
• Country-level business culture, emissions trading schemes, climate change performance and attention to carbon emissions accentuate the negative association between CCP and firm risk.
• Given the growing demands from regulatory bodies for increased transparency on carbon performance, the insights gained from our research hold significant relevance for regulators, policymakers, investors, financial analysts, scholars, and businesses.
Summary: This study examines the association between corporate carbon performance (CCP) and firm risk using a sample of 9,212 firm-year observations from 13 countries in the Asia-Pacific region over the period 2002–2021. We also examine the moderating role of the quality of country-level governance in the association between CCP and firm risk. We find that CCP is negatively associated with a firm’s total, idiosyncratic and systematic risk and that country-level governance quality accentuates the negative association between CCP and firm risk. We also find that country-level business culture, emissions trading schemes, climate change performance and attention to carbon emissions accentuate the negative association between CCP and firm risk. Given the growing demands from regulatory bodies for increased transparency on carbon performance, the insights gained from our research hold significant relevance for regulators, policy makers, investors, financial analysts, scholars and businesses.
Year Published: 2024
Journal Rank: ABDC 'A' Ranked, scimago 'Q2' Ranked.
Title: Corporate carbon performance and cost of debt: Evidence from Asia-Pacific countries
- Highlights
• Cost of debt is lower when a firm has higher carbon performance (CCP).
• Country-level governance mechanisms and debt markets are substitutes in addressing CCP.
• Market mechanisms have shown effectiveness in addressing the climate change problem.
• New proxies of CCP have been used.
Summary: This study examines the relationship between corporate carbon performance (CCP) and corporate cost of debt (COD) in Asia-Pacific countries. Using a sample of 3666 firm-year observations from 14 countries over the period 2003–2018, COD is found to be lower when a firm has higher carbon performance (CCP). We also find that CCP produces greater reductions in COD for firms in countries with weak governance quality. Thus, a country-level governance mechanism and debt markets are substitutes in addressing corporate carbon performance (CCP). The main results are robust after controlling for sample selection bias and endogeneity problems using alternative model specifications. The results are also robust after controlling for heterogeneity problems using sub-samples, accounting for the Global Financial Crisis (GFC), using an alternative COD measure, and controlling for potential simultaneous causality and for corporate governance variables.
Year Published: 2023
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
The Evolution and Determinants of Corporate Social Responsibility (CSR) Disclosure in a Developing Country: Extent vs. Quality
Summary:
Purpose
This paper examines the evolution and determinants of the extent and quality of corporate social responsibility (CSR) disclosure in a developing country (Mauritius).
Design/methodology/approach
CSR disclosures from annual reports of all listed companies were hand-collected for a 12-year period (2007–2018). The extent of disclosure was measured using a dichotomous index (41 items) while the quality of each disclosure item was assessed on a three-point scale. We rely on organisational legitimacy and resource dependence theories to investigate (1) trends in CSR disclosure extent and quality (2) the role of selected board and firm characteristics, namely the business qualifications of board members, extent of cross-directorships and the firm’s use of employee volunteering scheme, on CSR disclosure.
Findings
CSR disclosure extent, notably in relation to environment and human resources, gradually increased to an overall score of 45%. Comparatively, the quality of disclosures was low, with an average score of 20%. The proportion of business-qualified directors is only positively associated with CSR disclosure extent. The extent of cross-directorships is negatively associated with CSR disclosure quality while employee volunteering is positively associated with disclosure extent and quality.
Originality/value
The findings reveal the relatively low quality of information being disclosed, and in spite of CSR and governance reforms, there seems to be limited influence from the board of directors and their networks; prompting a call to foster greater board engagement on CSR matters. The results also highlight the need for a multi-dimensional assessment of CSR disclosure.
Year Published: 2022
Journal Rank: ABDC 'B' Ranked, scimago 'Q1' Ranked.
Title: Carbon Disclosure, Carbon Performance and Financial Performance: International Evidence
- Highlights
• Carbon performance positively affects carbon disclosure.
• Carbon disclosure negatively affects financial performance in the short-term.
• Carbon disclosure positively affects financial performance in the long-term.
• The level of carbon disclosure increases as the firm size increases.
Summary: This study examines how carbon performance affects carbon disclosure and how carbon disclosure affects financial performance. With a sample of global firms, the study analyses how relationships between carbon disclosure, carbon performance and financial performance vary in institutional contexts. Our results show that carbon disclosure positively affects carbon performance, consistent with the signalling theory. We find that carbon disclosure negatively (positively) affects financial performance in the short-term (long-term). Our findings have significant implications for investors as some firms use carbon disclosure as part of impression management. Our results help regulators to monitor carbon disclosure and assist investors with investment decisions.
Year Published: 2021
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Corporate Social Responsibility Reporting: Meeting Stakeholders Expectations or Efficient Allocation of Resources?
Summary:
Purpose
This study aims to examine whether corporate social responsibility (CSR) reporting adds any value to the firm.
Design/methodology/approach
This study uses content analysis to capture the specific CSR-related attributes and to construct a CSR reporting index. The data is manually collected from 115 publicly listed firms on the Dhaka Stock Exchange. The companies audited financial statements were the source of data. This study uses an ordinary least square regression analysis to examine the relationship between CSR reporting and firm performance.
Findings
The results of this study show that firms’ involvement in CSR activities and related reporting has a significant positive influence on firm performance only under an accounting-based performance measure. However, firms’ involvement in CSR activities and related reporting has a significant negative influence on firm performance under a market-based performance measure.
Research limitations/implications
This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.
Practical implications
The findings of this study imply that firms may be involved in CSR reporting to meet the stakeholders’ expectations, CSR reporting does not necessarily increase the intrinsic value of the firm.
Originality/value
This study supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.
Year Published: 2020
Journal Rank: ABDC 'B' Ranked, scimago 'Q1' Ranked.
CEO Power and Corporate Social Responsibility (CSR) Disclosure: Does Stakeholder Influence Matter?
Summary:
Purpose
This study aims to examine whether corporate social responsibility (CSR) reporting adds any value to the firm.
Design/methodology/approach
This study uses content analysis to capture the specific CSR-related attributes and to construct a CSR reporting index. The data is manually collected from 115 publicly listed firms on the Dhaka Stock Exchange. The companies audited financial statements were the source of data. This study uses an ordinary least square regression analysis to examine the relationship between CSR reporting and firm performance.
Findings
The results of this study show that firms’ involvement in CSR activities and related reporting has a significant positive influence on firm performance only under an accounting-based performance measure. However, firms’ involvement in CSR activities and related reporting has a significant negative influence on firm performance under a market-based performance measure.
Research limitations/implications
This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.
Practical implications
The findings of this study imply that firms may be involved in CSR reporting to meet the stakeholders’ expectations, CSR reporting does not necessarily increase the intrinsic value of the firm.
Originality/value
This study supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.
Year Published: 2020
Journal Rank: ABDC 'B' Ranked, scimago 'Q1' Ranked.
Militarisation, energy consumption, CO2 emissions and economic growth in Myanmar
Summary:
The cointegration and causal relationships amongst militarisation, energy consumption, carbon dioxide (CO2) emissions and economic growth in Myanmar are investigated for the period of 1975–2014. Myanmar was governed by a military regime until 2011 with high levels of military expenditure. This study adopted an extended neoclassical production function framework utilising the autoregressive distributed lag approach to investigate the causal relationships. Estimation showed that a 1% increase in military expenditure led to a 0.63% decrease in GDP, whereas a 1% increase in energy consumption increased GDP by 4% in the long run. The bootstrap-corrected causality test located bidirectional causality between energy consumption and CO2 emissions and unidirectional causality running from economic growth to energy consumption. Policy recommendations promoting Myanmar’s economic growth include reducing military spending which would contribute to a reduction in CO2 emissions and encourage efficient energy consumption.
Year Published: 2019
Journal Rank: ABDC 'B' Ranked, scimago 'Q1' Ranked.
The Influence of Corporate Governance Practices on Corporate Social Responsibility Reporting
Summary:
Purpose
This study aims to investigate if “corporate governance practices” have any influence on firm corporate social responsibility (CSR) reporting by listed firms in Bangladesh.
Design/methodology/approach
This study uses a content analysis to examine specific corporate social responsibility (CSR)-related attributes from 101 publicly listed non-financial firms in Bangladesh. Using various attributes of social and environmental reporting, a disclosure index is also constructed.
Findings
The finding of this study is that corporate governance practices do not have any influence on firm CSR reporting. The findings, in particular, show that CSR disclosure by firms is not responsive to new corporate governance regulations.
Research limitations/implications
This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.
Practical implications
The implication of this study is that firm CSR practices are legitimization exercises and firms will not make increased disclosure due to regulator’s quest for institutionalisation of corporate governance practices.
Originality/value
This study contributes to the literature on the practices of CSR reporting in the context of developing countries following regulator’s quest for institutionalisation of corporate governance practices.
Year Published: 2019
Journal Rank: ABDC 'B' Ranked, scimago 'Q1' Ranked.
What Drives Green Banking Disclosure? An Institutional and Stakeholder Engagement Perspective
Summary:
We examine the influence of regulatory guidance and other factors on the green banking disclosure practices of Bangladeshi commercial banks in the period from 2007 to 2014. We find that the issuance of green banking regulatory guidance by the Central Bank of Bangladesh in 2011 positively influences the level of green banking disclosure. We also report that green banking disclosure practices in the banking sector have converged over time and have become a routine process. In addition, we find that corporate governance mechanisms (e.g., board size and institutional ownership) positively affect the level of green banking disclosure. However, our study finds no relationship between the presence of independent directors on the board and green banking disclosure. These results have important implications for the government and other policy-makers.
Year Published: 2018
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Managerial Ownership and Agency Cost: Evidence from Bangladesh
Summary:
This study examines the influence of managerial ownership on firm agency costs among listed firms in Bangladesh. This is an institutional setting that features a mixture of agency costs. This institutional setting has a concentration of ownership by managers, but the firms are not solely owned by managers. The extant literature suggests that the sacrifice of wealth by the principal and potential costs associated with monitoring the agents is known as the agency cost. This study uses three measures of agency cost: the ‘expense ratio’, the ‘Q-free cash flow interaction’, and the ‘asset utilisation ratio’. The finding of the study is that managerial ownership reduces the firm agency cost only under the ‘asset utilisation ratio’ measure of agency cost; this is robust with regard to a number of robustness tests. Furthermore, the non-linearity tests suggest that the convergence of interest is evident with very high and low levels of managerial ownership. The entrenchment effect by the owners is evident at moderate levels of managerial ownership. Although there has been great scepticism among management researchers on the validity of agency theory, overall, the findings of this study do not reject the validity of agency theory. Given that the entrenchment by managers is evident at certain levels of ownership and that the agency problem may still exist between insiders and outsiders, legislative guidelines for controlling share ownership may be required.
Year Published: 2016
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Revisiting Agency Theory: Evidence of Board Independence and Agency Cost from Bangladesh
Summary:
This study examines the influence of board independence on firm agency cost among listed firms in Bangladesh, which feature concentrated ownership and high insider representation on corporate boards. This study uses three measures of agency cost: the ‘expense ratio’, the ‘Q-free cash flow interaction’ and the ‘asset utilization ratio’. The finding of the study is that board independence can reduce the firm agency cost only under ‘asset utilization ratio’ measure of agency cost. These findings are robust to several robustness tests. Furthermore, the non-linearity tests suggest that the benefit of outside independent directors is generally plausible as a factor controlling agency costs in the case of a medium level of board independence. Overall, these findings do not reject the validity of agency theory, supporting the Anglo-American orthodoxy promoting outside independent directors as good monitors.
Year Published: 2015
Journal Rank: ABDC 'A' Ranked, scimago 'Q1' Ranked.
Media Publications
Australia needs purpose-built quarantine facilities to stop COVID-19
Summary:
In this article, Afzalur Rashid provided a policy guideline to control COVID-19.