Journal Articles
Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915
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Item Payouts smoothing and income growth(Taylor and Francis Group, 2025-09-01) Balli F; Nguyen H; Chowdhury MIH; Balli HOWe quantify the extent and drivers of payout smoothing by employing 34,966 US firms’ data from 1975 to 2022. We report that payout growth is almost insensitive to year-by-year net income growth, in line with preceding literature suggesting payout smoothing. Novel to the literature, we incorporate the dynamics of payout smoothing, permanent, and aggregate net income growth into the depiction. Though payout growth is mostly immune to annual income growth shocks, it is significantly affected by net income growth of 5- or 10-year periods. Firms also consider the aggregate-sectoral and/or country-level-income growth in payout decisions. Since both permanent and aggregate income growths take over the role of year-by-year income growth, we further investigate if firms’ financial positions impact the magnitude of the smoothing. Annual payout growth depends more on permanent income growth for firms with higher profits and lower leverage positions. Notably, more financially vulnerable firms with higher leverage adjust payouts more in line with aggregate economic conditions.Item Lottery Demand and Stock Returns Preceding Earnings Announcements(John Wiley and Sons Ltd, 2025-08-19) Nguyen H; Truong CWe document a significant positive relation between extreme positive stock returns around past earnings announcements and stock returns in the 10-day window before current earnings announcements. The average of risk-adjusted return differences between stocks with the highest earnings announcement maximum returns and stocks with the lowest earnings announcement maximum returns is 85 basis points in the 10 days leading up to earnings announcements. This is consistent with the argument that investors have a preference for stocks with large payoffs during earnings announcements.Item Leading safely: The impact of generalist CEOs on workplace safety(Elsevier B V, 2025-06-01) Zhang TX; Molchanov A; Nguyen H; Pham MHBusinesses are expected to operate as responsible corporate entities, with employee safety serving as a cornerstone of this responsibility. Executives, as corporate leaders, bear moral and ethical obligations to ensure the well-being of their workforce. Drawing on human capital and upper echelons theories, we examine the influence of executives' transferable skills on workplace safety outcomes. We find that chief executive officers (CEOs) with general managerial human capital significantly contribute to the creation of safer work environments. The relation is more pronounced in firms facing financing constraints or intense market competition. These CEOs improve safety outcomes by making more prudent labor investment decisions, reducing employee workloads, and maintaining high information quality. Overall, our study underscores the pivotal role of CEOs' general managerial human capital in promoting employee well-being and mitigating the potential adverse consequences of occupational hazards on firm performance.Item Aviation pollution, tourism, and economic development: A study of the EKC hypothesis at regional level(Institute of Economics of the Ural Branch of the Russian Academy of Sciences, 2024-09-30) Ngo T; Tsui WHK; Nguyen HThis study aimed to revisit the relationship between aviation pollution, tourism, and economic development i.e., the Environmental Kuznets Curve (EKC), particularly at the regional level, using New Zealand as a case study. Our study is the first to estimate the aviation pollution at regional airports (in New Zealand) and use them as proxy for the regional pollution in an EKC setting. We found evidence that the EKC exists at the regional level, where tourism and economic development helps improve the regional environment in the long run. It suggests that the environment policy should be tailored at regional rather than just at the national level. It also proposes a new approach for EKC studies at the regional level via the new pollution estimation. Among others, we found that the sustainable tourism policy has, and will, work well in New Zealand.Item Climate change and corporate creditworthiness: International evidence(Elsevier Inc, 2025-03-01) Nguyen H; Pham AV; Pham MDM; Pham MHThis study examines how climate change risks affect corporate credit ratings worldwide. Using a comprehensive dataset of 4427 firms across 60 countries, we find that firms in countries more susceptible to climate change receive lower credit ratings. Such a negative relation ensues from inferior firm fundamentals, such as higher default risk and cash flow volatility associated with climate-change-related uncertainties. We also find that the adverse impact of climate change risks on credit ratings impedes firms' access to debt financing and increases the costs of holding credit default swaps. Further analyses reveal that institutional factors and market attention to climate change significantly shape rating agencies' responses to climate change risks.Item Firm productivity in the Energy-electricity sector over the last two decades with crisis: The role of cross-listing(Elsevier B V, 2024-02) Dang TH-N; Balli F; Balli HO; Nguyen HNovel to the literature, this study examines how cross-listing impacts firms’ productivity in Energy sector. Annual data of firm cross-listing over the last two decades with crisis (2002-2022) is employed for our analyses. We find evidence of significant drop in productivity after Energy firms (including electricity firms) cross-list in the US market. Meanwhile, we do not find strong evidence of significant decreases in firm productivity from other sectors in our sample. We note one possible explanation for this finding is that after cross-listing, Energy firms appear to utilize their increased capital to heavily invest in infrastructure, equipment, and plants for expansion, which might eventually damage their productivity. To seek for more thorough explanations for such decreases in Energy firms' productivity after cross-listing, we identify the determinants of firm productivity in Energy sector. Our results provide strong evidence that the increases in capital expenditures after Energy firms cross-list appear to be associated with the decreases in firm productivity. Notably, we note that negative impacts of capital expenditures (after cross-listing) and state ownership on firm productivity become much stronger and more statistically significant in developed countries than in emerging countries. Last, corporate governance and firm liquidity are found to be two determinants that help improve firm productivity in both electricity firms and other energy firms.Item Be nice to the air: Severe haze pollution and mutual fund risk(Elsevier Inc, 2023-11) Surva R; Nguyen H; Visaltanachoti NMotivated by the significant impacts of environmental risks on economic decisions and the increasing roles of mutual funds in financial markets in recent decades, this study examines the impact of ambient pollution on mutual funds’ risk outcomes. Using propriety data manually collected from several datasets, our fund fixed-effect regression estimates show that polluted air increases tracking errors and mutual fund return volatility. The adoption of different identification strategies, including instrumental variable estimations and difference-in-difference analyses based on two natural experiments, suggests the impact of air pollution on mutual funds’ risk is causal. Our findings suggest that air pollution harms fund managers’ cognitive abilities and impairs their investment efficiency, leading to an increase in mutual funds’ tracking errors and return volatility. Overall, our findings provide more insights into the impact of climate change on social behavior by shedding new light on the impact of air quality on asset managers’ behavior.Item Work from Home Suitability and Credit Risk Assessment(Taylor and Francis Group, 2023-07-07) Nguyen H; Pham MH; Truong CEmploying firm-level work from home (WFH) suitability derived from the U.S. universe job postings, we investigate whether rating agencies and debt holders incorporate WFH suitability in their risk assessments. We document that firms with higher WFH suitability have higher credit ratings and lower costs of debt. Our results are robust to different fixed effect estimations, sampling methods, and controls. We identify two ways that WFH suitability translates into higher credit ratings: high WFH suitability is associated with lower future cash flow volatility and lower default risk. Overall, our study suggests that WFH suitability is an important determinant of credit risk assessments and that firms should see flexible work arrangements as an effective strategy in their crisis management planning.Item Business Resilience: Lessons from Government Responses to the Global COVID-19 Crisis(Elsevier B.V., 2023-08-22) Nguyen H; Pham AV; Pham MDM; Pham MHThis study explores the survival of firms across countries, and what factors contribute to their ability to withstand large-scale exogenous shocks, focusing on the COVID-19 pandemic. Using corporate default risk as a measure of non-resilience, our empirical results from 97 countries reveal that stringent COVID-19 containment measures created a significant resilience test for businesses worldwide. Further tests suggest that cash holdings, knowledge assets, international sales, and access to foreign capital markets are crucial for global businesses to pull through exogenous shocks. Country-level institutional qualities also play an essential role in shaping business resilience during a crisis. Our study is the first to comprehensively analyze the drivers of business resilience across diverse countries using the COVID-19 outbreak as a major global crisis, providing a nuanced understanding of this topic in international business.