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Using gender as a theoretical framework, we analyse the dynamics of debt and equity financing during the COVID-19 pandemic for a cross-country sample of 8,921 private firms. We provide evidence of a slight gender bias in debt financing, with creditors favouring female entrepreneurs when dealing with cash flow problems during the COVID-19 pandemic. We find no evidence of gender bias in equity financing. The results are robust after controlling for a larger number of firm-specific characteristics and selection bias. We challenge the assumption of “gender-based discrimination” in the debt market, speculating that in the context of high uncertainty, prototypical forms of femininity may be advantageous as financial institutions seek to hedge their risk by favouring more conservative borrowers.
Nirosha Hewa-Wellalage; Sabri Boubaker; Ahmed Imran Hunjra; Peter Verhoeven. The gender gap in access to finance: Evidence from the COVID-19 pandemic. Finance Research Letters 2021, 102329 .
AMA StyleNirosha Hewa-Wellalage, Sabri Boubaker, Ahmed Imran Hunjra, Peter Verhoeven. The gender gap in access to finance: Evidence from the COVID-19 pandemic. Finance Research Letters. 2021; ():102329.
Chicago/Turabian StyleNirosha Hewa-Wellalage; Sabri Boubaker; Ahmed Imran Hunjra; Peter Verhoeven. 2021. "The gender gap in access to finance: Evidence from the COVID-19 pandemic." Finance Research Letters , no. : 102329.
This paper proposes a conceptual modeling framework based on category theory that serves as a tool to study common structures underlying diverse approaches to modeling credit default that at first sight may appear to have nothing in common. The framework forms the basis for an entropy-based stacking model to address issues of inconsistency and bias in classification performance. Based on the Lending Club’s peer-to-peer loans dataset and Taiwanese credit card clients dataset, relative to individual base models, the proposed entropy-based stacking model provides more consistent performance across multiple data environments and less biased performance in terms of default classification. The process itself is agnostic to the base models selected and its performance superior, regardless of the models selected.
Cao Tran; Dan Nicolau; Richi Nayak; Peter Verhoeven. Modeling Credit Risk: A Category Theory Perspective. Journal of Risk and Financial Management 2021, 14, 298 .
AMA StyleCao Tran, Dan Nicolau, Richi Nayak, Peter Verhoeven. Modeling Credit Risk: A Category Theory Perspective. Journal of Risk and Financial Management. 2021; 14 (7):298.
Chicago/Turabian StyleCao Tran; Dan Nicolau; Richi Nayak; Peter Verhoeven. 2021. "Modeling Credit Risk: A Category Theory Perspective." Journal of Risk and Financial Management 14, no. 7: 298.
This paper analyzes how informed traders balance leverage and liquidity in making cross-market trading decisions. Our findings are three-fold. Using daily data on the actively traded North American CDX Investment Grade and High Yield indexes from 2010 to 2017, first, we find robust evidence that, when the credit default swap (CDS) market is illiquid, informed traders do not hesitate to exploit their information advantage in the option market, and this manifests mainly for negative credit news. Second, we find that informed trading occurs predominantly in the option market for low-rated firms due to high adverse selection risk in the CDS market. Third, there is strong evidence of informed trading taking place in the CDS market for financial firms and we argue that this is due to the interdealer network through which CDS dealers obtain private information about other financial firms and their privileged position as market makers to be able to disguise their informed trades as ordinary market-making activities. Finally, we propose re-thinking market efficiency and how to advance it in a direction which does not privilege a small circle of financiers or create monopoly while keeping the markets liquid and tranquil at all times.
May Hu; Jason Park; Jane Chen; Peter Verhoevenc. Cross-market informed trading in the CDS and option markets. Global Finance Journal 2021, 100646 .
AMA StyleMay Hu, Jason Park, Jane Chen, Peter Verhoevenc. Cross-market informed trading in the CDS and option markets. Global Finance Journal. 2021; ():100646.
Chicago/Turabian StyleMay Hu; Jason Park; Jane Chen; Peter Verhoevenc. 2021. "Cross-market informed trading in the CDS and option markets." Global Finance Journal , no. : 100646.
We examine the mediating role of capital structure in the perceived relationship of uncertainty, corporate social responsibility (CSR), stakeholder interest and financial performance. We collect data through questionnaires, and survey the Chief Financial Officers (CFOs) of the service sector of Pakistan. We apply Structure Equation Modeling (SEM) for data analysis. We find that CFOs perceive uncertainty, CSR and stakeholder interest to have both direct and indirect impacts on financial performance. In particular, we find evidence of the mediating effect of capital structure in the relationship. Our findings imply that firms screen out uncertain situations while making capital structure decision and pursuing CSR-related activities.
Ahmed Imran Hunjra; Peter Verhoeven; Qasim Zureigat. Capital Structure as a Mediating Factor in the Relationship between Uncertainty, CSR, Stakeholder Interest and Financial Performance. Journal of Risk and Financial Management 2020, 13, 117 .
AMA StyleAhmed Imran Hunjra, Peter Verhoeven, Qasim Zureigat. Capital Structure as a Mediating Factor in the Relationship between Uncertainty, CSR, Stakeholder Interest and Financial Performance. Journal of Risk and Financial Management. 2020; 13 (6):117.
Chicago/Turabian StyleAhmed Imran Hunjra; Peter Verhoeven; Qasim Zureigat. 2020. "Capital Structure as a Mediating Factor in the Relationship between Uncertainty, CSR, Stakeholder Interest and Financial Performance." Journal of Risk and Financial Management 13, no. 6: 117.
Environmental sustainability is a major concern of contemporary societies, businesses, and governments. However, there is a lack of knowledge as to how countries can achieve the goal to end poverty, whilst protecting the planet. It is the objective of our study to examine the moderating role of institutional quality on the financial development and environmental quality nexus in South Asia. Our sample consists of panel data of five South Asian countries (India, Bangladesh, Nepal, Sri Lanka and Pakistan) from 1984 to 2018. We find that financial development increases CO2 emissions in this region, implying that countries in South Asia have utilized financial development for capitalization, instead of improving production technology. Institutional quality moderates the negative impact of financial development on environmental sustainability. An implication of our findings is that efforts to improve institutional quality may help to promote sustainable development in South Asia.
Ahmed Imran Hunjra; Tahar Tayachi; Muhammad Irfan Chani; Peter Verhoeven; Asad Mehmood. The Moderating Effect of Institutional Quality on the Financial Development and Environmental Quality Nexus. Sustainability 2020, 12, 3805 .
AMA StyleAhmed Imran Hunjra, Tahar Tayachi, Muhammad Irfan Chani, Peter Verhoeven, Asad Mehmood. The Moderating Effect of Institutional Quality on the Financial Development and Environmental Quality Nexus. Sustainability. 2020; 12 (9):3805.
Chicago/Turabian StyleAhmed Imran Hunjra; Tahar Tayachi; Muhammad Irfan Chani; Peter Verhoeven; Asad Mehmood. 2020. "The Moderating Effect of Institutional Quality on the Financial Development and Environmental Quality Nexus." Sustainability 12, no. 9: 3805.
Motivated by religious prescriptions and severe informational problems in the corporate sukuk market, we investigate how capital market imperfections influence sukuk securitization design, focusing on tranching and subordination practices. Employing negative binomial regressions and a 2SLS regression framework for a sample of 335 corporate sukuk offerings in Malaysia between 2001 and 2014, we find Islamic finance principles matter to sukuk securitization design. For private firms, lease-based sukuk have less tranching, consistent with the significance of collateral value resilience (asset tangibility) in reducing investment risk. Contrary to expectations, equity-based sukuk have fewer tranches and lower levels of subordination – findings which we attribute to the principal and profit guarantee under this structure. We also find support for the stylized view that securitization stems from asymmetric information and market segmentation arguments. An implication of our research is that investors should pay attention to how sukuk structure, information asymmetry, and credit risk impact subordination to avoid deals with poor credit enhancement.
Zairihan Abdul Halim; Janice How; Peter Verhoeven; M. Kabir Hassan. Asymmetric information and securitization design in Islamic capital markets. Pacific-Basin Finance Journal 2019, 62, 101189 .
AMA StyleZairihan Abdul Halim, Janice How, Peter Verhoeven, M. Kabir Hassan. Asymmetric information and securitization design in Islamic capital markets. Pacific-Basin Finance Journal. 2019; 62 ():101189.
Chicago/Turabian StyleZairihan Abdul Halim; Janice How; Peter Verhoeven; M. Kabir Hassan. 2019. "Asymmetric information and securitization design in Islamic capital markets." Pacific-Basin Finance Journal 62, no. : 101189.
We examine whether reputable intermediaries provide valuable certification which help corporate issuers of Islamic bonds lower their cost of capital. Our focus on Islamic bonds is motivated by the fact that besides information risk, investors also face unique Shariah non-compliance risk. Based on a sample of 3462 Islamic bond tranches issued in Malaysia from 2001 to 2014, we find certification by reputable Shariah advisors and Shariah committees is associated with a significantly lower average bond spread, as is information certification by reputable lead arrangers. Our results thus support the certification hypothesis.
Zairihan Abdul Halim; Janice How; Peter Verhoeven; M. Kabir Hassan. The value of certification in Islamic bond offerings. Journal of Corporate Finance 2018, 55, 141 -161.
AMA StyleZairihan Abdul Halim, Janice How, Peter Verhoeven, M. Kabir Hassan. The value of certification in Islamic bond offerings. Journal of Corporate Finance. 2018; 55 ():141-161.
Chicago/Turabian StyleZairihan Abdul Halim; Janice How; Peter Verhoeven; M. Kabir Hassan. 2018. "The value of certification in Islamic bond offerings." Journal of Corporate Finance 55, no. : 141-161.
We test whether the channel by which the government plays the role of political patron to selected firms influences analysts’ forecast precision in Malaysia. Correcting for analysts’ self-selection bias, we find a negative relation between analysts’ forecast errors and the social dimension of political patronage, as proxied by government-controlled institutional ownership. The reverse is found for the economic dimension of political patronage, as proxied by the percentage shareholding of government-linked corporations. We find no evidence that the personal dimension of political patronage influences analysts’ forecast precision.
Effiezal Aswadi Abdul Wahab; Janice How; Jason Park; Peter Verhoeven. Political patronage and analysts’ forecast precision. Journal of Contemporary Accounting & Economics 2018, 14, 307 -320.
AMA StyleEffiezal Aswadi Abdul Wahab, Janice How, Jason Park, Peter Verhoeven. Political patronage and analysts’ forecast precision. Journal of Contemporary Accounting & Economics. 2018; 14 (3):307-320.
Chicago/Turabian StyleEffiezal Aswadi Abdul Wahab; Janice How; Jason Park; Peter Verhoeven. 2018. "Political patronage and analysts’ forecast precision." Journal of Contemporary Accounting & Economics 14, no. 3: 307-320.
Whether ethical screening affects portfolio performance is an important question that is yet to be settled in the literature. This paper aims to shed further light on this question by examining the performance of a large global sample of Islamic equity funds (IEFs) from 1984 to 2010. We find that IEFs underperform conventional funds by an average of 40 basis points per month, consistent with the underperformance hypothesis. In line with popular media claims that Islamic funds are a safer investment, IEFs outperformed conventional funds during the recent banking crisis. However, we find no such outperformance for other crises or high volatility periods. Based on fund holdings-based data, we provide evidence of a negative curvilinear relation between fund performance and ethical screening intensity, consistent with a return trade-off to being more ethical.
Yunieta Nainggolan; Janice How; Peter Verhoeven. Ethical Screening and Financial Performance: The Case of Islamic Equity Funds. Journal of Business Ethics 2015, 137, 83 -99.
AMA StyleYunieta Nainggolan, Janice How, Peter Verhoeven. Ethical Screening and Financial Performance: The Case of Islamic Equity Funds. Journal of Business Ethics. 2015; 137 (1):83-99.
Chicago/Turabian StyleYunieta Nainggolan; Janice How; Peter Verhoeven. 2015. "Ethical Screening and Financial Performance: The Case of Islamic Equity Funds." Journal of Business Ethics 137, no. 1: 83-99.
Phillip A. Turvey; Anup K. Basu; Peter Verhoeven. Embedded Tax Liabilities and Portfolio Choice. The Journal of Portfolio Management 2013, 39, 93 -101.
AMA StylePhillip A. Turvey, Anup K. Basu, Peter Verhoeven. Embedded Tax Liabilities and Portfolio Choice. The Journal of Portfolio Management. 2013; 39 (3):93-101.
Chicago/Turabian StylePhillip A. Turvey; Anup K. Basu; Peter Verhoeven. 2013. "Embedded Tax Liabilities and Portfolio Choice." The Journal of Portfolio Management 39, no. 3: 93-101.
Janice How; Martin Ling; Peter Verhoeven. Does size matter? A genetic programming approach to technical trading. Quantitative Finance 2009, 10, 131 -140.
AMA StyleJanice How, Martin Ling, Peter Verhoeven. Does size matter? A genetic programming approach to technical trading. Quantitative Finance. 2009; 10 (2):131-140.
Chicago/Turabian StyleJanice How; Martin Ling; Peter Verhoeven. 2009. "Does size matter? A genetic programming approach to technical trading." Quantitative Finance 10, no. 2: 131-140.