Purpose The objective of this study is to examine the relationship between family chief executive officers (CEOs) and corporate tax avoidance, and to assess the moderating role of board independence in this relationship within the context of Bangladesh, an emerging economy. Design/methodology/approach Based on a sample of the top 100 listed manufacturing companies for the years 2019–2023, the study employs both static and dynamic panel data analysis to derive its findings, underpinning the agency theory and socioemotional wealth theory. Findings The empirical results reveal a positive and statistically significant association between the presence of family CEOs and the level of tax avoidance, suggesting that family CEOs are more inclined to engage in aggressive tax planning. The analysis also indicates that board independence significantly moderates this relationship by constraining such behavior. Notably, the moderating effect of board independence becomes ineffective when family CEOs possess political affiliations, implying that political connections may override internal governance mechanisms. Practical implications The findings underscore the importance of robust regulatory frameworks and enhanced board independence in mitigating tax avoidance in family-run firms. This is particularly relevant for policymakers and regulators seeking to improve corporate governance and tax compliance in emerging markets. Originality/value To the best of the authors’ knowledge, this is the first study to empirically investigate the role of family CEOs in tax avoidance behavior in Bangladesh. The inclusion of board independence as a moderating variable adds novel insights into governance dynamics within family-owned enterprises in developing economies.

Purpose This paper examines the impact of climate-related financial policies (CFPs) on bank risks, utilizing a comprehensive global dataset spanning from 2000 to 2021. It explores whether CFPs influence bank risk levels across different regions and regulatory environments. Design/methodology/approach Using a dataset comprising 2,534 bank-year observations, this study employs robust econometric techniques, including two-stage least squares (2SLS) and difference-in-differences (DiD) approaches, to mitigate endogeneity concerns and validate the findings. The analysis distinguishes between regions with strong regulatory frameworks, such as North America and Europe, and those with weaker regulatory settings, such as Asia and developing countries. Findings CFPs generally reduce bank risks in regions with strong regulatory frameworks, such as North America and Europe. However, in Asia and developing countries, CFPs initially increase risks, highlighting transitional challenges. Environmental sustainability factors moderate this relationship, with stronger CFP effects in countries with weaker environmental policies. These findings align with stakeholder theory and the resource-based view. Practical implications This study provides critical insights for policymakers and financial regulators by highlighting the need for region-specific CFP implementation strategies. While CFPs enhance bank resilience to climate-related risks, their effectiveness depends on regulatory maturity and economic conditions. Financial institutions must integrate tailored risk management strategies to navigate the short-term challenges associated with CFP adoption in developing economies. Originality/value Evidence from this research provides on the differential effects of CFPs on bank risks across diverse regulatory and economic contexts, offering insights into financial policy effectiveness.

Purpose This study examines the determinants and impact of bank-specific, market-specific and macro-specific factors on bank performance before, during and after the global financial crisis in US-listed firms. Design/methodology/approach We use panel data methodology, the ordinary least squares regression model, the dynamic generalized method of moments and Bayesian regression to analyze a sample of 783 listed banks in USA. Findings The findings suggest no significant relationship between firm-specific proxy (such as firm size) and bank performance in both the long-term and crisis periods. Additionally, the results show that market-specific proxy (such as market capitalization) have a statistically significant negative impact on bank profitability (measured by return on assets) during the pre-crisis and post-crisis periods, but a significantly positive impact on profitability (measured by return on equity) in the long-term, post-crisis and Dodd–Frank Act (DFA) era. The evidence suggests that market concentration did not contribute to listed banks' performance during and after the crisis, while it had a significantly positive impact on profitability during the DFA period. Practical implications Overall, the results provide considerable new insights for US banking literature, as the banking industry performance varies in terms of profitability, competitiveness and efficiency. Originality/value This study examines three distinct groups of determinants affecting US banking profitability: bank-specific, market-specific and macro-economic variables.

Purpose To improve the loan-repayment performance of microfinance institutions (MFIs), this study considers the role of the lending officer in the context of procedural deficiencies (PD), malpractices in credit assessment (MPCA), client–business performance (CBP) and loan-repayment problems (LRP). Design/methodology/approach In this study, a questionnaire was used for the collection of data from 316 middle-level employees of MFIs. Additionally, this study used a two-stage structural equation modeling technique. At the first stage, the outer-model (measurement-model) was applied to ensure the reliability and validity of the data collection instrument. Second, the inner-model (structural-model) was used through the PLS-SEM bootstrapping to test the hypothesis of the study. Findings This study found that PD and MPCA not only enhance the LRP but also negatively affect the CBP. This study also validates the mediating role of CBP performance between the MPCA and LRP, but it failed to play a mediating role between the PD and LRP. In addition, this study found a moderating role of professional experience of lending officers on the relationship of PD and LRP but failed to prove the moderating role of professional expertise of lending officers on the relationship of MPCA and LRP. Originality/value In light of the study's findings, MFIs might alter their credit rules and lending methods to improve their loan-repayment performance. The findings of this study may be used by MFIs to design a variety of operational assistance and training programs for their staff and consumers to improve loan payback performance.

Purpose In the recent past, Ghana's public debt became unsustainable, necessitating appropriate debt management strategies to restore economic stability. This study examines the nexus between public debt and macroeconomic performance, focusing on the government's fiscal vulnerabilities as key influencing factors, to reveal how government borrowing affects economic recovery policies. Design/methodology/approach We employ a hierarchical regression model and utilize the least squares method (linear) to analyze time series data (1983–2020) from the World Bank, IMF and Bank of Ghana databases. We further employ a Bayesian linear regression model to enhance the robustness of the analysis. Findings The results depict that public debt relates negatively with GDP, inflation and trade balance, but it relates positively with unemployment. All fiscal vulnerability indicators moderate the association between public debt and both GDP and inflation. Furthermore, all indicators (except external debt to exports and net international reserves to external debt ratios) moderate the relationship between public debt and unemployment. Only debt to domestic revenue ratio and interests to domestic revenue ratio moderate the association between public debt and trade balance. Originality/value The interaction effects reveal intricate relationships between public debt and macroeconomic performance. Our study innovatively applies Bayesian analysis to examine these interactions, offering a more robust and nuanced understanding of the complex dynamics at play and shedding new light on the relationships driving economic outcomes. This informs policymakers’ development of more effective policies that account for these nuanced relationships.

Purpose This study explores the impact of environmental, social and governance (ESG) performance on corporate profitability in Chinese commercial banks from 2012 to 2022, examining how inherent differences across bank types moderate this relationship. Design/methodology/approach Using two-way fixed effects, 2SLS (instrumental variables), simultaneity tests and system GMM, the study analyzes the effects of ESG on profitability while addressing endogeneity. To capture heterogeneity, the sample is stratified by ownership (state-owned vs non-state-owned), governance (joint-stock vs non-joint-stock) and location (urban vs rural). Findings The results show that ESG performance positively impacts profitability in both rural and urban commercial banks, with governance performance negatively affecting urban banks. ESG negatively influences profitability in state-owned banks, whereas non-state-owned banks benefit from positive ESG performance. Environmental performance positively affects profitability in both types of banks, but governance has a negative impact. ESG boosts profitability in joint-stock banks but detracts from it in non-joint-stock banks. Social activities positively affect profitability across both bank types, while environmental activities are insignificant. Governance activities enhance profitability in joint-stock banks but reduce it in non-joint-stock banks. Practical implications Policymakers should create tiered ESG regulations, incentivizing market-driven banks while subsidizing state-owned banks’ compliance costs. Bank managers should tailor ESG investments, focusing on environmental and social initiatives based on location and investors must evaluate ESG scores contextually. Originality/value This study provides a granular analysis of ESG-profitability linkages across China’s heterogeneous banking landscape, highlighting how institutional characteristics such as ownership, governance structure and geographic focus shape the financial implications of ESG.

Purpose This study examines the influence of chief executive officer (CEO) attributes on bank performance and explores whether CEO compensation moderates this relationship in the listed banking companies within an emerging economy. Design/methodology/approach This study focuses on the 35 banking companies listed on the Dhaka Stock Exchange, the leading stock exchange in Bangladesh. Data were gathered from multiple sources over a 10-year period (2013–2022), resulting in a total of 320 firm-year observations, as data for five newly listed banks were unavailable for the entire study period. To analyze the direct and moderating effects and test the proposed hypotheses, AMOS 23 was employed for data analysis. Findings The study reveals a significant positive effect of CEO education and experience on return on assets (ROA) and a significant negative impact of CEO education on the TOBINQ ratio. However, the nature and strength of these relationships shift when CEO compensation interacts with the CEO attribute variables. Originality/value This study empirically examines how CEO attributes influence performance in publicly traded banking companies in an emerging economy. Additionally, the study explores the moderating role of CEO compensation in this relationship. While CEO compensation has been widely studied in developed markets, its influence as a moderating factor in emerging economies remains largely unexplored.

Purpose We estimate network spillovers across East Asian equity markets based on data on index returns to locate markets where equity shocks arise and where they impact. Focussed upon the context of the 1997 East Asian market crisis, our analysis explains why some markets were affected more than others. Further, were the Vietnam stock market to have been trading at that time, how it might have been affected. Design/methodology/approach Our analyses are based on novel panel data and spatial econometric techniques, adapted to “Big Data” contexts, to estimate network structural vector autoregression (SVAR) and vector autoregression (VAR) models estimated using additional information from East Asian and global markets. Findings We find that East Asian markets are interconnected through a sparse network, but this network has profound impacts across the markets, as evidenced during the 1997 East Asian crisis. We provide an explanation for why and how the Taiwan stock market was relatively immune to the crisis and highlight that the Vietnam market would likely have been affected very strongly. Research limitations/implications The results have substantial implications for market development and regulation, as well as greater integration across stock markets in East Asia. This is particularly important for nascent markets like Vietnam and rapidly integrating markets like Taiwan. However, future research needs to integrate trade flows with financial markets to obtain more encompassing insights and policy. Practical implications Our work offers new perspectives on institutional organisation and the regulation of information flows and risks across East Asian markets, including markets that are more recently created (such as Vietnam), markets that are highly integrated (such as China and Korea) and markets that are evolving through enhanced network exposure (such as Taiwan). Social implications We highlight that regional policy is important, as well as integration with regional (East Asian) and global markets. Development of robust resilient financial market institutions offers the best buffer against external shocks, which can otherwise have devastating impacts. Originality/value There is considerable debate about the nature and scale of contagion or interdependence during financial crises, not least the East Asian crisis of 1997. Indeed, there is no doubt that financial markets are interconnected. We offer new insights, from analysis of equity markets and their interdependence, on network effects spanning East Asian markets and their implications for crisis events.

Purpose This study investigates the challenges impeding the development of an effective green bond market in Vietnam and evaluates its potential to support the country’s transition from carbon-intensive industries to a greener economy, in line with its climate commitments. Design/methodology/approach This study uses a qualitative research approach, conducting semi-structured interviews with 15 stakeholders representing different segments of Vietnam’s financial sector. Thematic analysis was carried out in three stages: initial coding, exploring connections between codes and developing three main themes: barriers for corporate issuers, investor attractiveness and the green bond market’s potential. Findings The major barriers for corporate issuers include a lack of intermediaries, regulatory shortcomings, high issuance costs and an underdeveloped corporate bond market. From the investor perspective, green bonds are perceived as less attractive due to relatively low yields, high project risks, limited market awareness and a scarcity of investment options. Despite these challenges, the market holds significant potential, supported by Vietnam’s net-zero ambitions, government backing and continuous legal framework improvements. Research limitations/implications The study covers a sample weighted towards issuers, due to the limited public awareness of green investment. Future research could also include regulatory perspectives and use quantitative methods to expand upon these findings, especially as the market matures. Findings inform policymakers and practitioners, offering recommendations such as establishing intermediaries, developing a green taxonomy, legal reform, infrastructure enhancement and investor education. A stronger green bond market can support sustainable development, reduce emissions and promote long-term environmental and social wellbeing. Originality/value This study contributes by addressing a research gap in Vietnam’s green bond market using a qualitative, interview-based method, which is uncommon in the existing literature. It offers real-world insights from a diverse range of market actors, enabling a multidimensional understanding of market dynamics.

Purpose This article aims to analyze the connection between economic growth and air pollution within Asian countries. The report aims to take further steps to examine a non-linear relationship between economic expansion and environmental degradation, with a particular focus on a turning point. The results could help policymakers in Asian countries to improve their economies sustainably. Design/methodology/approach This study collects data from 27 West and South Asian nations from 2000 to 2020. The authors implement the Driscoll–Kraay Standard Estimator method to deal with cross-sectional dependence, heteroskedasticity, and autocorrelation problems. Findings Our results show that when gross domestic product increases by 1%, emissions decrease by 3.254%. However, when countries reach higher levels of economic development and a certain income level reaches 4,126.25 USD, economic growth increases CO2 emissions by 0.45%, pointing to a U-shaped relationship between economic growth and air pollution. Although these results are consistent with the green growth theory, they do not support the pollution haven or the environmental Kuznets curve (EKC) hypothesis. Practical implications Our research provides policymakers and economic operators with rich empirical evidence for new strategies to develop local economies sustainably without encountering environmental problems. Firstly, policymakers could rely on the findings of this study to identify the economic development threshold that helps reduce environmental degradation. In addition, greener business practices, public awareness toward climate change and circular economies are suitable suggestions for policymakers to develop sustainable growth in Asian nations. Originality/value This study comprehensively analyzes the relationship between economic growth and CO2 emissions in West and South Asian countries, integrating economic, environmental and social perspectives. It challenges the EKC hypothesis by identifying a U-shaped relationship, where early growth reduces emissions, but industrial expansion beyond a certain income threshold increases them. The study uses the Driscoll–Kraay standard error method to ensure robust findings by addressing statistical issues. Examining diverse economic structures and environmental conditions advances research and offers valuable insights for sustainable development policies.