Does electronic economics matter to financial technology firms?

Najaf, Khakan; Sinnadurai, Philip; Devi, K. S.; Dhiaf, Mohamed Mahjoub

doi:10.1007/s10660-022-09578-0

Cited by 9 publications

(6 citation statements)

References 72 publications

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“…When Bloomberg performs an RV, the sector of a firm should be used to identify the most appropriate multiple to apply, such as price to cash flow in real estate and price to sales in retail (Investopedia, 2020). This approach produces 145 non-FinTech firms that are matched based on credit rating, EPS review, industry and ownership (Najaf et al , 2022b). As governance structure does not change regularly but rather changes gradually over time, annual data were used for all variables.…”

Section: Method Sample and Datamentioning

confidence: 99%

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Sustainability, market performance and FinTech firms

Atayah

Najaf

Ali

et al. 2023

MEDAR

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Purpose The purpose of this paper is to provide empirical evidence on the suitability of a Bloomberg Environmental (E), Social (S) and Governance (G) (ESG) disclosure index designed for companies from the USA and to investigate the sustainability quality and stock performance of FinTech companies. Design/methodology/approach Data from all FinTech and non-FinTech firms in the USA was acquired from Bloomberg to undertake the study and evaluate the suggested hypotheses efficiently. The final sample consists of 1,672 company-year observations from 2010 to 2019. The methodology used ordinary least squares regressions of performance metrics on the Bloomberg ESG disclosure index and its components. Findings The findings indicated that the Bloomberg ESG disclosure index is a valid proxy for sustainability and has a direct relationship with stock performance. Furthermore, this study suggests that non-FinTech firms outperform FinTech firms in sustainability and stock performance. The findings support stakeholder theory, which suggests that increased disclosure of ESG information will mitigate the agency problem and protect shareholders’ interests. Research limitations/implications This study’s findings were significant because the findings emphasised ESG disclosure in FinTech and non-FinTech firms, providing information to academics, legislators, regulators, financial report users, investors, environmental unions, workers, customers and society. Originality/value This research is unique as it evaluates ESG practices in both FinTech and non-FinTech firms.

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Section: Method Sample and Datamentioning

confidence: 99%

“…The performance and ESG disclosures will change as per the board size of a firm, as the prior literature suggests that a large board size enhances the performance and strengthen corporate governance (Najaf et al , 2022b). Furthermore, leverage was controlled because it helps to improve corporate performance (Jenter et al , 2018).…”

Section: Method Sample and Datamentioning

confidence: 99%

Sustainability, market performance and FinTech firms

Atayah

Najaf

Ali

et al. 2023

MEDAR

Self Cite

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“…In the next step, we use the Bloomberg "Relative Valuation (R.V.)" tool to choose a sample of non-PC enterprises that are comparable to each other within the same industry and then nearest to firms' size (log of market capitalization) (Najaf et al, 2022). Also, we classify a listed firm as non-PC, which does not have a politician as a board member.…”

Section: Sample and Datamentioning

confidence: 99%

The corporate risk-taking and performance of politically connected firms: evidence from Malaysia

Chin

Lye

Najaf

2022

APJBA

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PurposeOne of the significant components of a firm's overall sustainability is establishing and nurturing governance. This study attempts to understand how politically connected firms maintain sustainability measures in terms of risk-taking strategies. This paper has two purposes. The first purpose is to provide empirical evidence on the politically connected (PC) firms' corporate risk-taking and performance. The second purpose is to investigate the moderating impact of PC firms' risk on corporate performance.Design/methodology/approachTo conduct the analysis to test our hypothesis efficiently, data has been collected from Bloomberg and annual reports of all Malaysian PC and non-PC companies. The final sample comprises 561 firms over the investigation period 2010–2019. The methodology entails Ordinary Least Squares (OLS) regressions of the impact of the PC firms on corporate risk-taking and performance. The authors also conduct t-tests of the equality of means of corporate risk-taking and performance between PC and non-PC companies.FindingsThe authors’ results show that politically connected firms undertake significant less corporate risk and relish higher financial performance than their counterparts. It implicatively insinuates that the presence of a politician on the board enables the management to mitigate the risk-taking, which makes the firms more profitable. The authors’ results corroborate network theory, suggesting that political ties alleviate the agency issue and safeguard the shareholders' interest.Research limitations/implicationsThe study's results were important as they highlighted the sustainable development of PC and non-PC companies, offering insights to researchers, policymakers, regulators, financial report users, investors, environmental unions, employees, clients and society.Originality/valueThis paper is novel since it is unique in evaluating sustainable practice in PC and non-PC firms.

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“…To the best of the authors' knowledge, the academic literature has not yet answered the question of the impact of shareholders as directors and managers on the financial performance of fintech companies (Najaf et al 2022). Exploring the role of shareholders in governance has profound implications for corporate governance, a cornerstone of organizational effectiveness.…”

Section: Introductionmentioning

confidence: 99%

Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies

Rupeika-Apoga,

Wendt,

Geyfman

2024

Risks

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Fintech companies are relatively young and operate in a rapidly evolving and ever-changing industry, which makes it important to understand how different factors, including shareholder presence in management roles, affect their performance. This study investigates the impact of shareholder presence in director and manager positions on the financial performance of Latvian fintechs. Our investigation centers on essential financial ratios, including Return on Assets, Return on Equity, Profit Margin, Liquidity Ratio, Current Ratio, and Solvency Ratio. Our findings suggest that the presence of shareholders in director and manager roles does not significantly affect the financial performance of fintech companies. Although the statistical analysis did not yield significant results, it is important to consider additional insights garnered from Cliff’s Delta effect sizes. Specifically, despite the lack of statistical significance, practical significance indicates that fintech companies in which directors and managers are shareholders show slightly better performance than other fintech companies. Beyond shedding light on the intricacies of corporate governance in the fintech sector, this research serves as a valuable resource for investors, stakeholders, and fellow researchers seeking to understand the impact of shareholder presence in director and manager roles on the financial performance of fintechs.

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Does electronic economics matter to financial technology firms?

Cited by 9 publications

References 72 publications

Sustainability, market performance and FinTech firms

Sustainability, market performance and FinTech firms

The corporate risk-taking and performance of politically connected firms: evidence from Malaysia

Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies

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