Purpose- This study examines the non-linearity in the relationship of ESG with firm-specific variables (firm value, risk, and performance). It also compares the findings of developing and developed markets to evaluate whether these relationships depend on the type of markets. Study Design/methodology/approach- The study tests the data from an international sample divided into developed and developing markets. The sample comprises 585 companies from 11 countries, selected based on market capitalization. 8,052 unbalanced observations are collected from 2008 to 2021. Quantile regression is used to examine non-linearity. Findings- The estimation outputs show that ESG demonstrates: (1) a non-linear relationship between firm risk and value in developed markets and a linear relationship in developing markets; and (2) a non-linear relationship in both developing and developed markets between firm performance. Finally, the study also shows evidence that the impact of ESG on firm value, risk, and performance in developing and developed markets is different. Research Practical Implications- For policy-setting institutions, the practical implications of the study highlight the need for catering institutional settings and market conditions when setting standards or policies regarding ESG. Additionally, the non-linearity of ESG and firm risk in developing markets can impact ESG portfolios and investment strategies for investors. Originality/value- Examination of non-linearity between ESG and firm specific factors has not been performed in a holistic manner. Additionally, a direct comparison between the developed and developing markets is also lacking in current literature. This study attempts to address these gaps.

Purpose-Current study examines the impact of E, S, and G factors separately on firm performance and value of developed and emerging markets, a perspective overlooked in current literature. Design/Methodology/Approach-The study uses a large international sample comprising 614 non-financial firms with 8,484 unbalanced observations, segregated between emerging and developed markets. The study estimates the output using the Generalized Least Square (GLS) technique. Findings- Our study presents two novel findings in these markets. In the case of developed markets, we find that E, S, and G positively affect firm financial performance and firm value. However, in emerging markets we find that E, S, and G have mixed (that is, negative and positive, and significant and insignificant) effects on firm performance and firm value. Practical implications- Our findings show that the positive impact of ESG pillars on firm value and performance in developed markets must incentivize senior management to enhance their sustainability commitment. This model should be replicated in emerging markets as well. Additionally, from the perspective of regulatory bodies, specifically considering emerging markets, our findings can help understand the causes of the unfavorable association between ESG practices, investor expectations, and firm performance. Originality/Value-Previous literature mainly focuses on the overall ESG score when evaluating its impact on firm-specific variables. Additionally, the institutional settings and market dynamics of developed and emerging markets are significantly different and must be considered when interpreting results or developing empirical models. The current study addresses these gaps.

In this paper, we investigate the ripple effects of the US-China tension on Asian emerging markets (India, Indonesia, South Korea, Malaysia, Philippines, Taiwan, and Thailand) and Asian frontier markets (Bangladesh, Sri Lanka, Pakistan, Bahrain, Kuwait, Vietnam, and Oman) for the period spanning from February 2013 to February 2024. The US-China Tension Index (UCTI) is a proxy variable for the US-China tension. Time-varying parameter vector autoregression, wavelet coherence, and hedging effectiveness techniques are employed for the empirical analysis. Findings show that the total connectedness between UCTI and Asian frontier markets is stronger than that of Asian emerging markets. Moreover, findings reveal that, in the case of Asian emerging markets, Indonesia, South Korea, Malaysia, Philippines, Taiwan, and Thailand are net transmitters of return spillovers, while India is a net receiver. In the case of Asian frontier markets, we find that Sri Lanka, Bahrain, Pakistan, Kuwait, and Oman are net transmitters. At the same time, Bangladesh and Vietnam are net receivers of return spillovers. In the frequency co-movement analysis, we report a positive correlation between UCTI and these markets at lower frequencies. In comparison, we report a negative correlation at the middle and higher frequencies. Furthermore, we report that hedging ratios highlight the significance of modifying portfolio weights in uncertain times when looking for investment opportunities in Asian emerging and frontier markets. Similarly, our findings highlight important implications for investors and portfolio managers to optimize their investments with risk-adjusted portfolios.

Purpose - The current study examines the explanatory power of four main theories (Agency, Stakeholder, Management Power, and Institutional) for setting CEO remuneration in Pakistan. As such, the study evaluates CEO remuneration from a country-specific perspective. Design/methodology/approach - Data for 58 non-financial firms is collected for the past ten years (from 2012 to 2021) for the examination. GMM/IV approach is used for estimating the output to control the potential endogeneity problem. The study also applies the Fixed Effects EGLS estimation approach as a robustness check while changing certain proxies. Findings - The results show evidence to support the explanatory power of all four theories selected for the examination when determining CEO remuneration in Pakistan. Based on the results of the study, the order of importance or explanatory power (from highest to lowest) of the theories is: (i) Agency theory (represented by firm performance), (ii) Management Power theory (represented by firm size), (iii) Stakeholder theory (represented by CSR and sustainable practices), and (iv) Institutional theory (represented by governance and CEO-specific factors). Therefore, the study concludes that in Pakistan, CEO remuneration is set following the notions of Agency theory, where the primary aim of the Board is to align the interests of the CEO with the shareholders. Practical Implications-The major practical implication of the current study relates to setting an optimal CEO remuneration policy. The study empirically shows which factors play a role in setting CEO remuneration in Pakistan, providing an avenue of reassessing and refining the policy as and when needed, as the external factors change. However, improving the sample size and examining the relationship of Stakeholder theory with aspects like ESG (environmental, social, and governance) disclosures would further improve the quality and generalizability of the study. Originality/value - Available literature covering CEO remuneration is quite diverse, however, as scholars have examined it using different theoretical approaches, the results are inconclusive. As such, there is a need to establish the explanatory powers of different theorized relationships for CEO remuneration and consider how CEO remuneration is determined in practice. Furthermore, the studies covering different countries and markets show different results, reflecting the importance of considering institutional and market settings when inferring the results. Both these gaps are addressed in the current study.

Purpose: This paper examines the need for exclusive financial reporting standards for Islamic financial transactions by considering the accounting treatment of deferred payment Murabahah, as practiced in Pakistan. Being analogous to the conventional banking model, Murabahah is one of the most widely deployed modes in Islamic banks. The paper compares the quality of presentation of deferred payment Murabahah as practiced, following both conventional and Islamic accounting standards. Design: The paper presents the deferred payment Murabahah (credit sale) using International Financial Reporting Standards (IFRSs) and Islamic Financial Accounting Standards (IFASs) and collects the opinion of experts (accountants, academicians, and Islamic bankers) on the extracts of the prepared financial statements. The opinions are centered on three qualitative characteristics of the financial information (relevance, faithful representation, and comparability) and a t-test is applied to examine the statistical significance of the difference of opinions received. Findings: The results show that the overall quality score for IFRSs is higher than the IFASs for the selected qualitative characteristics. However, the difference observed is not significant, advocating the possibility of the harmonization among both Islamic and conventional accounting practices of the financial intuitions operating in Pakistan. Originality: Earlier studies (Morshed (2022); El-Halaby, Albarrak, and Grassa (2020); Ullah (2020); Ibrahim and Ling (2016)) do not directly compare the presentation of the Islamic financial instruments by applying the financial reporting standards issued by AAOIFI and IASB on same instrument. This paper addresses this gap by comparing the qualitative characteristics of presented financial information for deferred payment Murabahah as guided by conventional and Islamic accounting standards by introducing an innovative approach for presentation (from the perspective of a credit sale). The paper also compares the accounting treatment of IFRSs with IFAS 1 (Pakistan), which has not yet been done. Implications: Based on the findings of the paper, it is recommended that, like Malaysia, the IFIs in Pakistan should adopt the IFRS framework. The focus of the regulatory bodies functioning in Pakistan should be to improve existing accounting standards through meaningful engagement with standard-setting bodies and take an active part in making IFRSs more compatible with the nature of Islamic financial transactions. An instrument-wise handbook should be published for the IFIs to help in the application of the IFRS framework, ensuring a Shariah-compliant presentation where alternative measuring and valuing approaches are allowed by the framework.