rss_2.0Acta Universitatis Sapientiae, Economics and Business FeedSciendo RSS Feed for Acta Universitatis Sapientiae, Economics and Business Universitatis Sapientiae, Economics and Business Feed of Crude Oil Revenue on the Oil and Non-oil Sectors in Nigeria<abstract><title style='display:none'>Abstract</title> <p>The debate for oil-rich economies to plough their oil windfalls into real economic activities to spur diversification has become intense due to the deficit fiscal crisis and poor socio-economic profile of resource-abundant nations. Therefore, we use secondary data from the period between 1981 and 2020 to assess the impact of crude oil revenue on the oil and non-oil sector output performance in Nigeria. The study adopts the ARDL (i.e. autoregressive distributed lag) and the augmented Granger causality techniques to analyse the data. The ARDL regressions show that crude oil positively impacts oil sector performance, but the impact is only substantial in the short run. Crude oil revenue exerts a positive and insignificant effect on the short-run non-oil sector output, whereas, over the long run, it has a negative but significant effect. To propel growth, the study recommends using the excess crude oil earnings to develop non-oil sectors such as agriculture, services, and manufacturing.</p> </abstract>ARTICLEtrue Gender Wage Gap Exist among Farm Workers in Nigeria? Evidence from Decomposition-Matching Analysis<abstract><title style='display:none'>Abstract</title> <p>Using a cross-sectional survey data of agricultural farms, we investigate gender-based differences in farm wages among farm workers by randomly allocating farm workers into treatment (female) and control (male) groups with a simple random sampling technique. We used the Blinder–Oaxaca decomposition method to establish the gender wage gap and Propensity Score Matching to address assumptions and heterogeneity difficulties that plague the decomposition technique. Results show that female farm workers earn ₦ 9,170.83 less compared to their male counterparts, which indicates an unadjusted gender gap. This gender gap in farm wages is explained by the specific factors included in our model, so upgrading these variables could reduce gender inequalities in farm wages. Matching results indicate that the gender gaps estimated with nearest neighbour matching and kernel-based matching are 9.8% and 21.6% higher, respectively, than the gaps measured by the decomposition technique. Thus, the matching procedure was successful in identifying a sizeable proportion of gender gaps that are unexplained due to discrimination between male and female farm workers.</p> </abstract>ARTICLEtrue of Economic Welfare in Africa: A Cross-Sectional Autoregressive Distributed Lag Approach<abstract><title style='display:none'>Abstract</title> <p>This study provides empirical perspectives on the catalysts of economic welfare in Africa, drawing inference from macroeconomic and non-macroeconomic factors. Leveraging a sample of a balanced panel dataset of 35 countries across Africa, this study provides novel applications of the cross-sectional autoregressive distributed lag methodology to economic welfare analysis in Africa. Issues of cross-sectional dependence and slope homogeneity were accounted for whilst establishing causal relationships between economic welfare proxied by the Human Development Index and macroeconomic and non-macroeconomic drivers of welfare. Based on cross-sectional autoregressive distributed lag estimation results, a 1% increase in economic growth was shown to account for a 0.233 percent and 0.253 percent increase in economic welfare in the long run and short run respectively. In addition, technology accounted for a 1.81 percent increase in economic welfare in the long run. The outcome of the Dumitrescu–Hurlin causality test demonstrated causality between trade openness, government effectiveness, economic growth, and economic welfare.</p> </abstract>ARTICLEtrue Well-Being and Financial Stress: Examining the Moderating Effect of Gender<abstract><title style='display:none'>Abstract</title> <p>The study aims to investigate the relationship between financial well-being and financial stress while examining the moderating role of gender. The study uses a survey method, and data were collected in Kashmir Province of Jammu and Kashmir, northern India, from 168 respondents selected on a convenience sampling basis. The results strongly supported the hypothesised model and have put forth evidence that financial well-being has a negative impact on financial stress and that this relationship is moderated by gender. The study has important implications for academia, future researchers, governments, and policymakers aiming at improving their citizens’ quality of life, health, and well-being, a key sustainable development goal, and the ultimate goal of the Transformative Consumer Research Agenda.</p> </abstract>ARTICLEtrue Fiscal Transfers and Tax Collection of Indian States: Estimation from Panel Data Models<abstract><title style='display:none'>Abstract</title> <p>This study tries to empirically estimate the effects of the composition of intergovernmental transfers on tax collection across the Indian states by using panel regression model. As intergovernmental transfers constitute almost 47 per cent in total revenue of the states, it could play a vital role in states’ own tax collection. The impact of different channels of federal transfers on tax capacities is examined among 25 Indian states over the period from 1991-92 to 2017-18. The study also attempted to capture the asymmetric effect of various forms of transfers, but findings reveal that only state plan grant has a significant effect on its own tax collection. The empirical evidence suggests that the composition of intergovernmental transfers has a dampening effect on states’ own tax revenue. Apart from transfers’ variables, the study incorporates socio-economic and certain political variables to estimate states’ own tax collections.</p> </abstract>ARTICLEtrue the Big Five: How Dynamic Personality Traits Predict Financial Risk Tolerance?<abstract><title style='display:none'>Abstract</title> <p>The present study examines the impact of dynamic personality traits (emotions, financial self-efficacy, trait anger, resilience, and intolerance of uncertainty) on the financial risk tolerance of an investor. To that end, the study uses data collected from 486 stock market investors adopting a structured questionnaire, and the hypothesised relationships are evaluated through structural equation modelling. Results indicate that financial self-efficacy, positive emotion, and resilience improve the investor’s financial risk tolerance, whereas intolerance of uncertainty, trait anger, and negative emotions bear a negative influence on financial risk tolerance. These findings are novel to the financial risk tolerance literature and deepen our understanding of the precursors of risky investment behaviour. Further, this study entails several practical implications for financial advisors and wealth managers.</p> </abstract>ARTICLEtrue Financial Health and Risk: Hierarchical Relationships and Interdependencies among Key Factors<abstract><title style='display:none'>Abstract</title> <p>This study examines the hierarchical relationships and inter dependencies of financial factors impacting companies’ health, using Total Interpretive Structural Modelling and Matrice d’Impacts Croisés Multiplication Appliquée à un Classement analyses. It identifies key financial factors and their influences. Findings reveal credit risk as a pivotal factor with substantial impact on other parameters. Solvency, capital adequacy, and Tier 1 capital ratios are also key determinants of financial health. The study further categorizes factors into independent, linkage, autonomous, and dependent categories. This research offers valuable insights for managers, policymakers, and investors aiding decision-making. </p> </abstract>ARTICLEtrue–Life Balance, Supervisor Support, and Life Satisfaction in the Higher Education Sector<abstract><title style='display:none'>Abstract</title> <p>The study explores the relationship between work–life balance and supervisor support in the Indian higher education sector. More specifically, the study explores the effects of supervisor support on the work–life balance of female employees working in academia. We used online panel data comprised of 300 employees working in various universities, which we analysed by employing structural equation modelling. Results reveal that supervisor support is positively related to employee work–life balance and ultimately their life satisfaction. The findings also stress the importance of supervisor support for female employees, as its presence is a major boost in helping women reach the desired work–life balance. With the objective to augment work–life balance of women academicians, the work would guide managers as well as decision makers involved in the academic sector to implement women-friendly policies and programmes.</p> </abstract>ARTICLEtrue Sustainability on a Sea of Eco-Labels. Leading or Misleading?<abstract><title style='display:none'>Abstract</title> <p>Eco-labels help consumers navigate and promote environmental initiatives and curb greenwashing. The paper presents the eco-labels used in Romania by the government, companies, and consumers. The paper finds that Romania’s activities related to eco-labels, especially EU eco-labels, are lagging behind other developed countries. This is evidenced by the government’s inadequate communication, the online communication of economic players related to the topic, and consumers’ inadequate knowledge of eco-labels.</p> </abstract>ARTICLEtrue the Financial Development and Income Inequality Nexus: Evidence from Hungary<abstract><title style='display:none'>Abstract</title> <p>The finance–inequality nexus has been a major topic of discussion since the 1990s and became even more so after the financial crisis of 2007–08. This paper aims to empirically investigate whether financial development and/or financial openness increased or decreased income inequality in Hungary over the period of 1971–2019. An empirical analysis of an autoregressive distributed lag (ARDL) model suggests the existence of long-run co-integration between the analysed variables. Financial openness contributes to reducing Hungarian income inequality in the short run but fuels greater income inequality in the long run. Whereas the effects of financial development on inequality vary according to the indicators, the domestic credit by banks has a significant negative effect on inequality in the short and long run, while the impact of the credit to the private sector from all the sectors on inequality is insignificant.</p> </abstract>ARTICLEtrue Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda<abstract><title style='display:none'>Abstract</title> <p>The spin-off has become a common mode of restructuring in the corporate world for the last few decades and has thus attracted the interest of researchers to investigate how this form of divestiture creates value for shareholders. While there is an agreement among researchers about the wealth creation of spin-offs around the announcement of the event, the sources of this wealth generation remain controversial. Moreover, the long-run stock performance of the spin-offs invites debates, as there are varied shreds of evidence in this regard. The present study endeavours to provide an overview of the existing literature by systematically reviewing 89 theoretical and empirical works published between 1976 and 2021 on short-term and long-term wealth effects separately to provide state-of-the-art research on the topic concerned. Based on the findings of existing literature, certain suggestions for future research have been made.</p> </abstract>ARTICLEtrue for Kerala’s International Tourism by the Top Three Source Markets: A Comparative Analysis<abstract><title style='display:none'>Abstract</title> <p>The study examines the role of economy, the environment, and the source country’s tourism seasonality in driving the inflow of tourists into Kerala from the top three source countries, viz. the United Kingdom (UK), the United States (US), and France. The methodology employed is the double-log regression technique. It was found that the income of the source countries was merely moderately and selectively related to the predicted variable, while environmental factors, viz. rainfall of the origin countries and the relative temperature, play a decisive role in shaping Kerala’s international tourism. At the same time, relative prices were relevant in explaining Kerala’s international tourism demand. We conclude that Kerala receives more foreign tourists (especially from the advanced economies in Europe and North America) not because the nominal income of the source markets rises but because Kerala’s destinations remain competitive for the tourists from the top three source markets. While climatic factors provide a background for tourism seasonality, it is argued that lower relative prices remain the primary and active force of tourist arrivals.</p> </abstract>ARTICLEtrue Asymmetric Impact of Oil Price and Electricity Consumption on Economic Growth: Evidence from Nigeria<abstract> <title style='display:none'>Abstract</title> <p>The study examines the asymmetric impact of oil price and electricity consumption on economic growth in Nigeria between 1981 and 2018 using the Non-Linear Autoregressive Distributed Lag (NARDL) model. Results reveal that falling and increasing oil prices as well as gross capital formation affect economic growth in Nigeria negatively and significantly in the short-run, while electricity consumption affects economic growth positively and significantly in the short-run. In the long-run, the impact on economic growth of negative changes in oil price is negative and insignificant, while positive changes in oil price have a positive but insignificant impact on economic growth. The impact on the economic growth of electricity consumption remains positive but insignificant while that of gross capital formation is positive and significant. The results suggest that both in the short and the long run positive changes in oil price have greater impact on the economic growth than negative oil price changes. Capital formation is a significant determinant of Nigerian economic growth both in the short and the long run.</p> </abstract>ARTICLEtrue Estimation of Equity Market Risk in India<abstract> <title style='display:none'>Abstract</title> <p>The value-at-risk (Va) method in market risk management is becoming a benchmark for measuring “market risk” for any financial instrument. The present study aims at examining which VaR model best describes the risk arising out of the Indian equity market (Bombay Stock Exchange (BSE) Sensex). Using data from 2006 to 2015, the VaR figures associated with parametric (variance–covariance, Exponentially Weighted Moving Average, Generalized Autoregressive Conditional Heteroskedasticity) and non-parametric (historical simulation and Monte Carlo simulation) methods have been calculated. The study concludes that VaR models based on the assumption of normality underestimate the risk when returns are non-normally distributed. Models that capture fat-tailed behaviour of financial returns (historical simulation) are better able to capture the risk arising out of the financial instrument.</p> </abstract>ARTICLEtrue Price and Macroeconomic Fundamentals in African Net Oil-Exporting Countries: Evidence from Toda–Yamamoto and Homogeneous Causality Tests<abstract> <title style='display:none'>Abstract</title> <p>Despite the wealth of literature on the oil price growth examinations, there is a shortage of research on the causality between oil prices and various macroeconomic fundamentals with regard to the group of net oil-exporting countries in Africa. This study examines the causality between oil price volatility and macroeconomic fundamentals in net oil-exporting countries in Africa using the Toda–Yamamoto and homogeneous causality techniques to gauge the nexus in the selected countries from 1995 to 2019. Our findings from the panel causality test suggest that oil price volatility significantly Granger causes the economic growth of the selected net oil-exporting countries in Africa. However, a mixed outcome was observed for the cross-sectional analyses using the Toda–Yamamoto causality test. Hence, the study offers the need for a policy framework that would drive the output growth as oil price changes continue to threaten macroeconomic variables.</p> </abstract>ARTICLEtrue Responsiveness and Firm Value: Evidence from Nigeria<abstract> <title style='display:none'>Abstract</title> <p>This paper examines the effects of environmental responsiveness on firm value in Nigeria and provides an insight into the feasibility of corporate entities engaging with the United Nations’ sustainable development agenda, without compromising their wealth creation agenda. Secondary data were gathered from annual reports and audited accounts of 83 quoted non-financial firms for three years covering the period of 2016–2018. Thereafter, a regression analysis using the Ohlson value relevant model for price valuation was done. Results of the empirical analysis confirm the positive influence of value relevance of book values, earnings per share, alongside environmental responsiveness and firm size on the firm value of Nigerian firms, while leverage is inversely related. Remarkably too, firms with higher values tend towards being environmentally responsive. Impliedly, there is an empirical evidence of reverse causality between firm value and environmental responsiveness.</p> </abstract>ARTICLEtrue Profiles for Cross-Cultural Adjustment of Expatriates in Nigeria<abstract> <title style='display:none'>Abstract</title> <p>This paper offers insight into the demographic profiles of expatriates for successful cross-cultural adjustments in the context of Nigeria. It considers the following demographics: age, gender, marital status, international work experience, and time spent in the host country. The study adopted cross-sectional survey research by utilizing a questionnaire to collect data from one hundred and fifty-two (152) expatriate residents in Nigeria, who relocated from 22 different countries and who have worked and lived in Nigeria for over six months. The paper discovered that marital status, international work experience, and length of stay in Nigeria rather than age and gender are the demographic profiles influencing and required for the successful cross-cultural adjustment of expatriates in the Nigerian context. It concludes that the more organizations recruit, select, and deploy expatriates whose demographic profiles reflect the higher length of stay/time in Nigeria, higher level of international work experience, and single/unmarried, the higher the successful cross-cultural adjustment of such expatriates in the Nigerian context.</p> </abstract>ARTICLEtrue Labour and Deviant Workplace Behaviour among Health Workers<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates the influence of emotional labour on deviant workplace behaviour (DWB) among health workers in teaching hospitals. The data used have been collected from health workers in two government-owned teaching hospitals through a survey research design and have been analysed using descriptive and inferential statistics. The paper finds that superficial acting and deep acting are positively related to deviant workplace behaviour among health workers in teaching hospitals, and honest acting has negative but significant contributions to deviant workplace behaviour. The paper concludes that in order for teaching hospitals to achieve person–job fit, health workers in training should be exposed to the reality that they would be required to master their emotions to succeed in their practice. It is therefore recommended that the management of teaching hospitals as well as government organizations should ensure that rules and policies are enforced to curb certain deviant behaviours, which could otherwise easily become norms if taken for granted.</p> </abstract>ARTICLEtrue Board of Directors’ Attributes and Audit Fees<abstract> <title style='display:none'>Abstract</title> <p>This study examines the effect of corporate board of directors’ attributes on audit fees for Nigerian listed Deposit Money Banks (DBMS). The study adopts an <italic>ex post facto</italic> research design and uses data on 10 deposit money banks sampled via purposive sampling technique using data spanning from 2012 to 2018. Results based on Generalized Method of Moment show that corporate board of directors’ proxies do not significantly influence audit fees of Nigerian deposit money banks. However, firm size and profitability are found to affect external audit fee significantly. The study therefore concludes that corporate boards of directors’ attributes do not individually significantly affect audit fees in Nigerian listed Deposit Money Banks. Arising from the findings, it is recommended that corporate governance practices should be strengthened so as to aid external audit.</p> </abstract>ARTICLEtrue Markups and Upstreamness in World Input-Output Data<abstract> <title style='display:none'>Abstract</title> <p>This research uses the publicly available World Input-Output Database (WIOD) to investigate the relationship between an industry’s markup and its <italic>upstreamness</italic>, the industry’s position in the vertical chain of production; the research also identifies common attributes among high-markup industrial sectors: higher-markup industries display a higher level of capital compensation and a lower share of labour and other inputs in the value of output. Finally, it is found that upstream industries, those producing mostly raw materials and intermediate products enjoy higher market power than their downstream counterparts. This result could be among the first in the literature to find evidence of double marginalization at an industry level of aggregation. It also suggests that virtually all final product prices may incorporate substantial markups through their inputs.</p> </abstract>ARTICLEtrue