Institutions and Economies 2024-04-16T08:38:00+08:00 Institutions and Economies Open Journal Systems <div align="justify"> <p>Institutions and Economies is a peer reviewed journal published by the Faculty of Business and Economics (formerly Faculty of Economics and Administration), University of Malaya. The journal is published four times a year, in January, April, July and October. The journal publishes research articles <strong>(excluding systematic literature review)</strong> and book reviews. Only original research articles that are not under consideration by other publishers are welcome. Special issues are also welcome but interested special issue editors must submit a proposal to the Editor-In-Chief for consideration. The journal is indexed in SCOPUS, IDEAS, MYCite, ECONPapers, ASEAN Citation Index (ACI), EBSCO and Asian Digital Library. Institutions and Economies is a recipient of the CREAM Award 2016 by the Ministry of Higher Education Malaysia.</p> <p>Print ISSN: 2232 - 1640<br />E - ISSN: 2232 - 1349 </p> <p> </p> <p><strong>Peer Review Statement </strong></p> <p><strong><em>All research articles in the journal have undergone rigorous peer review. The process consists of an initial screening by the</em> <em>Editor-In-Chief, Deputy Editor and</em><em> Associate Editors, followed by double-blind refereeing: two reviewers for articles. Articles in special issues go through double-blind refereeing and one internal review by the Editorial Board. </em></strong></p> <p><strong><br />IMPORTANT ANNOUNCEMENT</strong></p> <p>There will be a <strong>publication fee of USD100/- for accepted papers only (papers that have undergone the double-blind review process)</strong> to partially cover the expenses of copy editing of accepted manuscripts. <strong>Payment of the publication fee should only be made after acceptance of a manuscript.</strong> </p> <p><strong>Note: Submissions from 1/1/2024 and that have been accepted for publication after the double-blind review process will be subject to a publication fee of RM500/-.</strong></p> <p>The detailed information of the payment process can be seen <a href="">here</a>. Payment of the publication fee can be done at this <a href="">website</a>.</p> <p> </p> </div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> <div class="SL_SelectionLabel" style="right: 2px; bottom: 2px;">0 Links</div> </div> <!-- Used for easily cloning the properly namespaced rect --></div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> </div> <!-- Used for easily cloning the properly namespaced rect --></div> Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe 2024-03-26T10:43:20+08:00 Blessing Katuka Calvin Mudzingiri Edson Vengesai <p>The paper examines the effects of governance quality and fiscal space on<br>non-performing loans (NPLs) in Zimbabwe. We estimated pooled ordinary least squares<br>(OLS) and quadratic regressions with panel-corrected standard errors (PCSE) and<br>Driscoll-Kraay standard errors using the full dollarisation era dataset for 13 banks from<br>2009 to 2017. We noted that all the governance indicators are on average negative (bad)<br>and that improvement in the rule of law, political stability and control of corruption<br>stimulates reduction in NPLs if the indicators improve beyond -1.654, -0.876 and<br>-1.361, respectively. More interestingly, the results revealed that an improvement in<br>the interaction terms of political stability and control of corruption with rule of law,<br>governance index and voice and accountability significantly reduces NPLs, which is<br>new empirical evidence in the literature. Regarding fiscal space, we find evidence that<br>fiscal balance positively and significantly affects NPLs. We contribute to the literature<br>by providing new evidence on the role of governance quality in NPLs formation in<br>Zimbabwe, especially when corruption and political stability interact with all governance<br>indicators. We recommend that the Zimbabwean government improve political stability,<br>control of corruption, voice and accountability and the rule of law to reduce NPLs.</p> 2024-04-01T00:00:00+08:00 Copyright (c) 2024 Institutions and Economies Quantifying the Volatility of Stock Price Changes in the Indian Market Using the Moving Average Envelope and Bollinger Bands 2024-03-26T11:11:05+08:00 Arkaprava Chakrabarty Ayan Majumdar Moumita Chatterjee <p>A trading system in any stock market is built on long-term, intermediate-term,<br>and short-term indicators. Some ‘lagging’ indicators, such as the simple and exponential<br>moving averages, can be used to determine the direction of a medium- to long-term<br>trend. Some ‘leading’ oscillators, on the other hand, can tell a trader whether or not a<br>trend is losing momentum. This paper examines how well moving average envelopes and<br>Bollinger Bands measure stock price volatility, and how useful these technical analysis<br>tools are for short-term horizons. The paper then attempts to evaluate the speed of these<br>indicators in order to explain the sensitivity and response time of data collected from a<br>secondary survey in the Indian capital market. The article concludes that moving average<br>envelopes outperform Bollinger Bands in real trading settings, since technical trading<br>rules are generally designed for short-term investments. Bollinger Bands can detect<br>abrupt price fluctuations, however they are not more effective than moving average<br>envelopes to measure profitability.</p> 2024-04-01T00:00:00+08:00 Copyright (c) 2024 CEO Power and ESG Performance: The Mediating Role of Managerial Risk-Taking 2024-03-26T11:35:27+08:00 Ai-Xin Lee Chee-Wooi Hooy <p>Business sustainability calls for responsibility in the context of the<br>environmental, social, and governance (ESG) agenda. According to the upper echelons’<br>theory, a firm’s activities and business outcomes are charted by top management.<br>However, how the Chief Executive Officer (CEO) balances the firm’s profit maximisation<br>objectives while serving the ESG agenda remains unexplored. Therefore, this study<br>takes a holistic approach to examine how CEO power affects the business sustainability<br>of a firm through managerial risk-taking. We augment the upper echelons theory of<br>Hambrick and Mason (1984) by incorporating the CEO power framework of Finkelstein<br>(1992) with the managerial risk-taking framework of Hoskisson et al. (2017). We find<br>that CEO power is associated with greater managerial risk-taking and poorer business<br>sustainability. The ownership power, expert power and prestige power of the CEO are<br>important in explaining the managerial risk-taking and firm sustainability. Specifically,<br>financial leverage and research and development (R&amp;D) expenses partially mediate CEO<br>power in explaining a firm’s ESG performance.</p> 2024-04-01T00:00:00+08:00 Copyright (c) 2024 Exploring ‘Employee Voice’ of Informal Female Workers of the Textiles Industry in Pakistan: A Grounded Theory Approach 2024-03-26T11:39:07+08:00 Erum Shafi Evelyn S. Devadason VGR Chandran Govindaraju <p>Firm restructuring and labour subcontracting has paved the way for the rise<br>of informalisation in the female-dominated textiles industry of Pakistan after the expiry of<br>the Agreement on Textiles and Clothing (ATC). Despite the emergence of low quality of<br>employment available for women in the informal economy, there is a dearth of knowledge<br>on their position at the workplace, namely ‘employee voice.’ This study therefore explores<br>the employee voice of informal female workers of the stitching and ginning sections of<br>the textiles industry in Pakistan in the post ATC period. A grounded theory approach,<br>involving 25 in-depth interviews with informal female workers and employers, is used to<br>explore employer-employee interactions. The findings reveal that the core requirements<br>of the ‘capability for voice’ of informal female workers centre on ‘decisions of employers’,<br>‘bearing of tradition’ and ‘worker performance’. The grounded theory clarifies the<br>procedure and identifies the interaction of the above categories to form the contextual<br>conditions that direct the expectations of employers and female workers in the informal<br>labour market. The expectations of a ‘perfect fit’ of informal female workers, within the<br>hierarchy of the textiles industry, gives rise to a situation of ‘tolerance/no voice’, despite<br>the negative workplace culture. The findings indicate that strategies to advance gender<br>equality in Pakistan must consider informalisation of the labour market through a gender<br>perspective.</p> 2024-04-01T00:00:00+08:00 Copyright (c) 2024 Remittances and Investment Choices at the Household Level: Empirical Evidence from Bangladesh 2024-03-26T11:46:51+08:00 Sarah Salahuddin Muhammad Mehedi Masud Kwek Kian Teng <p>In developing countries like Bangladesh, foreign capital inflows, such as<br>remittances, are a vital source of funds that can bridge the domestic investment gap.<br>Previous empirical results from developing countries show that remittances are widely<br>consumed and seldom used for investment purposes. Therefore, the objective of this<br>study is to identify the link between remittances and investment at the household<br>level in Bangladesh. Based on a large-scale and nationally representative crosssectional<br>secondary data set of the Bangladesh Bureau of Statistics and employing<br>the ordinary least square (OLS) regression model, this study helps to explore the link<br>between remittances and investment at the household level in Bangladesh. The result<br>of this study reveals that remittances positively affect the housing, land, agriculture,<br>business, and valuable investment decisions at the household level, and significantly<br>impact various types of investment. Therefore, it can be said that in the least developed<br>countries like Bangladesh, remittance does act as credit insurance and works as a riskspreading<br>strategy to secure and increase income and acquire capital for investment. The<br>demographic characteristics of the household head, such as gender and marital status,<br>have a significant impact on household investment.</p> 2024-04-01T00:00:00+08:00 Copyright (c) 2024