This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), prev... more This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), previously developed by Rutkowska-Ziarko and Pyke (Econ Bus Rev 3(4):55-65, 2017). DAB shows how changes in the profitability of a sector affect the profitability of a company in that sector. DAB can also be applied to whole market. Empirical evidence is presented using the data from companies listed in the Polish construction sector of the Warsaw Stock Exchange. The analysis concludes that there are significant similarities between market betas and accounting betas. It also demonstrates that accounting betas using Return on Assets (ROA) and Return on Sales (ROS) are positively correlated with market betas and that there is a significant correlation between accounting betas with variance and semi-variance approaches. In addition, the paper identifies that the systematic risk on the Warsaw Stock Exchange is connected with the sensitivity of the company's profitability of assets (ROA) and sales (ROS) in comparison with profitability for the whole sector. The practical implication of this research is that investors, owners and managers can apply DAB using ROA to calculate the systematic risk of companies that are not listed on stock markets and consequently to identify the levels of risk associated with companies within the sector.
This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), prev... more This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), previously developed by Rutkowska-Ziarko and Pyke (Econ Bus Rev 3(4):55–65, 2017). DAB shows how changes in the profitability of a sector affect the profitability of a company in that sector. DAB can also be applied to whole market. Empirical evidence is presented using the data from companies listed in the Polish construction sector of the Warsaw Stock Exchange. The analysis concludes that there are significant similarities between market betas and accounting betas. It also demonstrates that accounting betas using Return on Assets (ROA) and Return on Sales (ROS) are positively correlated with market betas and that there is a significant correlation between accounting betas with variance and semi-variance approaches. In addition, the paper identifies that the systematic risk on the Warsaw Stock Exchange is connected with the sensitivity of the company’s profitability of assets (ROA) and sale...
PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony i... more PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012. Design/methodology/approachThe empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional. FindingsThree key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced ...
This paper develops a new method for measuring market risk called downside accounting beta (DAB).... more This paper develops a new method for measuring market risk called downside accounting beta (DAB). To test the validity of DAB the method is applied to the financial data for 14 food companies listed on the Warsaw Stock Exchange during a 6-year period. DAB calculates how changes in the profitability of the whole sector affects the profitability of a given company. The paper concludes that when calculating DAB using Return on Assets (ROA) and Return on Equity (ROE) there is a positive correlation with market betas. The practical implication of this research is that investors, owners and managers can use DAB to calculate the systematic risk of companies not listed on stock markets and consequently to identify the levels of risk associated with companies within the sector.
The objective of the study was to develop the clinical value unit method of allocating indirect c... more The objective of the study was to develop the clinical value unit method of allocating indirect costs to patient costs using clinical factors. The method was tested to determine whether it is a more reliable alternative to using the length of stay and marginal mark-up allocation method. The method developed used data from a Polish specialist hospital. The study involved 4,026 patients grouped into nine diagnosis-related groups (DRG). The study methodology involved a three stage approach: (a) identification of correlates of patient costs, (b) a comparison of the costs calculated using the clinical value unit method with the alternative methods: length of stay and marginal mark-up methods, and (c) an estimation of the cost homogeneity of the DRGs. The study showed that length of stay cost allocation method may underestimate the proportion of indirect costs in patient costs for a short in-patient stay and overestimate the cost for the patients with a long stay. The total costs estimated using the marginal mark-up method were higher than those estimated with length of stay method. For most surgical procedures, the mean indirect costs are higher using clinical value unit method than when using length of stay or marginal mark-up method. In all medical procedure cases, the mean indirect costs calculated using the clinical value unit method are in the range between marginal mark-up and length of stay method. We also show that in all DRGs except one, that the coefficient of homogeneity for clinical value unit is higher than for length of stay or marginal mark-up method. We conclude that the clinical value unit method of cost allocation is a more precise and reliable alternative than the other methods.
PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony i... more PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012. Design/methodology/approachThe empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional. FindingsThree key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced ...
This paper examines the impact of Sharia supervisory board (SSB) and governance structures on the... more This paper examines the impact of Sharia supervisory board (SSB) and governance structures on the extent of operational risk disclosures (ORDs), using a sample of 63 Islamic banks from 10 (i.e., Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, and the UAE) countries in the Middle East and North Africa (MENA) region for the fiscal years 2006 to 2013. Drawing on Sharia compliance, Islamic banking and corporate governance literature, our findings are as follows. We find that SSB, block ownership, board independence, and country-level governance quality are statistically significant and positively associated with ORDs. Our results are robust when controlling for several bank- and country-level variables. Our study has implications for policy-makers and regulators in the MENA region with respect to the development and implementation of SSB and governance mechanisms that can improve operational risk disclosures. Finally, the findings highlight the need to enhance the current understanding of SSB structures and governance mechanisms that can best help Islamic banks towards engaging in effective compliance with recent governance and accounting reforms.
This study examines how information and communication technology (ICT) could be employed to dampe... more This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed.
Purpose- This study presents theoretical and empirical arguments for the role of mobile telephony... more Purpose- This study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012.
Design/methodology/approach- The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional.
Findings- Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
Originality/value- The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.
This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), prev... more This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), previously developed by Rutkowska-Ziarko and Pyke (Econ Bus Rev 3(4):55-65, 2017). DAB shows how changes in the profitability of a sector affect the profitability of a company in that sector. DAB can also be applied to whole market. Empirical evidence is presented using the data from companies listed in the Polish construction sector of the Warsaw Stock Exchange. The analysis concludes that there are significant similarities between market betas and accounting betas. It also demonstrates that accounting betas using Return on Assets (ROA) and Return on Sales (ROS) are positively correlated with market betas and that there is a significant correlation between accounting betas with variance and semi-variance approaches. In addition, the paper identifies that the systematic risk on the Warsaw Stock Exchange is connected with the sensitivity of the company's profitability of assets (ROA) and sales (ROS) in comparison with profitability for the whole sector. The practical implication of this research is that investors, owners and managers can apply DAB using ROA to calculate the systematic risk of companies that are not listed on stock markets and consequently to identify the levels of risk associated with companies within the sector.
This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), prev... more This paper applies a method for measuring market risk called Downside Accounting Beta (DAB), previously developed by Rutkowska-Ziarko and Pyke (Econ Bus Rev 3(4):55–65, 2017). DAB shows how changes in the profitability of a sector affect the profitability of a company in that sector. DAB can also be applied to whole market. Empirical evidence is presented using the data from companies listed in the Polish construction sector of the Warsaw Stock Exchange. The analysis concludes that there are significant similarities between market betas and accounting betas. It also demonstrates that accounting betas using Return on Assets (ROA) and Return on Sales (ROS) are positively correlated with market betas and that there is a significant correlation between accounting betas with variance and semi-variance approaches. In addition, the paper identifies that the systematic risk on the Warsaw Stock Exchange is connected with the sensitivity of the company’s profitability of assets (ROA) and sale...
PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony i... more PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012. Design/methodology/approachThe empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional. FindingsThree key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced ...
This paper develops a new method for measuring market risk called downside accounting beta (DAB).... more This paper develops a new method for measuring market risk called downside accounting beta (DAB). To test the validity of DAB the method is applied to the financial data for 14 food companies listed on the Warsaw Stock Exchange during a 6-year period. DAB calculates how changes in the profitability of the whole sector affects the profitability of a given company. The paper concludes that when calculating DAB using Return on Assets (ROA) and Return on Equity (ROE) there is a positive correlation with market betas. The practical implication of this research is that investors, owners and managers can use DAB to calculate the systematic risk of companies not listed on stock markets and consequently to identify the levels of risk associated with companies within the sector.
The objective of the study was to develop the clinical value unit method of allocating indirect c... more The objective of the study was to develop the clinical value unit method of allocating indirect costs to patient costs using clinical factors. The method was tested to determine whether it is a more reliable alternative to using the length of stay and marginal mark-up allocation method. The method developed used data from a Polish specialist hospital. The study involved 4,026 patients grouped into nine diagnosis-related groups (DRG). The study methodology involved a three stage approach: (a) identification of correlates of patient costs, (b) a comparison of the costs calculated using the clinical value unit method with the alternative methods: length of stay and marginal mark-up methods, and (c) an estimation of the cost homogeneity of the DRGs. The study showed that length of stay cost allocation method may underestimate the proportion of indirect costs in patient costs for a short in-patient stay and overestimate the cost for the patients with a long stay. The total costs estimated using the marginal mark-up method were higher than those estimated with length of stay method. For most surgical procedures, the mean indirect costs are higher using clinical value unit method than when using length of stay or marginal mark-up method. In all medical procedure cases, the mean indirect costs calculated using the clinical value unit method are in the range between marginal mark-up and length of stay method. We also show that in all DRGs except one, that the coefficient of homogeneity for clinical value unit is higher than for length of stay or marginal mark-up method. We conclude that the clinical value unit method of cost allocation is a more precise and reliable alternative than the other methods.
PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony i... more PurposeThis study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012. Design/methodology/approachThe empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional. FindingsThree key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced ...
This paper examines the impact of Sharia supervisory board (SSB) and governance structures on the... more This paper examines the impact of Sharia supervisory board (SSB) and governance structures on the extent of operational risk disclosures (ORDs), using a sample of 63 Islamic banks from 10 (i.e., Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, and the UAE) countries in the Middle East and North Africa (MENA) region for the fiscal years 2006 to 2013. Drawing on Sharia compliance, Islamic banking and corporate governance literature, our findings are as follows. We find that SSB, block ownership, board independence, and country-level governance quality are statistically significant and positively associated with ORDs. Our results are robust when controlling for several bank- and country-level variables. Our study has implications for policy-makers and regulators in the MENA region with respect to the development and implementation of SSB and governance mechanisms that can improve operational risk disclosures. Finally, the findings highlight the need to enhance the current understanding of SSB structures and governance mechanisms that can best help Islamic banks towards engaging in effective compliance with recent governance and accounting reforms.
This study examines how information and communication technology (ICT) could be employed to dampe... more This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed.
Purpose- This study presents theoretical and empirical arguments for the role of mobile telephony... more Purpose- This study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012.
Design/methodology/approach- The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional.
Findings- Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
Originality/value- The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.
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Papers by Chris Pyke
Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed.
Design/methodology/approach- The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional.
Findings- Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
Originality/value- The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.
Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed.
Design/methodology/approach- The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional.
Findings- Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
Originality/value- The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.