Institutions and Economies <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> en-US <p>Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.<br />An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at</p> <p>All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.</p> <p>The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.</p> (Institutions and Economies) (Editor-In-Chief) Tue, 16 Apr 2024 08:38:00 +0800 OJS 60 Demystifying the Role of Governance Quality and Fiscal Space on Nonperforming Loans in Zimbabwe <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> Blessing Katuka, Calvin Mudzingiri, Edson Vengesai Copyright (c) 2024 Institutions and Economies Mon, 01 Apr 2024 00:00:00 +0800 Quantifying the Volatility of Stock Price Changes in the Indian Market Using the Moving Average Envelope and Bollinger Bands <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> Arkaprava Chakrabarty, Ayan Majumdar, Moumita Chatterjee Copyright (c) 2024 Mon, 01 Apr 2024 00:00:00 +0800 CEO Power and ESG Performance: The Mediating Role of Managerial Risk-Taking <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> Ai-Xin Lee, Chee-Wooi Hooy Copyright (c) 2024 Mon, 01 Apr 2024 00:00:00 +0800 Exploring ‘Employee Voice’ of Informal Female Workers of the Textiles Industry in Pakistan: A Grounded Theory Approach <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> Erum Shafi, Evelyn S. Devadason, VGR Chandran Govindaraju Copyright (c) 2024 Mon, 01 Apr 2024 00:00:00 +0800 Remittances and Investment Choices at the Household Level: Empirical Evidence from Bangladesh <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> Sarah Salahuddin, Muhammad Mehedi Masud, Kwek Kian Teng Copyright (c) 2024 Mon, 01 Apr 2024 00:00:00 +0800