Abdallah AlKhawaja

This paper investigates the determinants of working capital management in the Indian hotel sector, focusing on factors influencing financial efficiency and sustainability. Using a dynamic panel model, the study analyzes data from 67 publicly listed Indian hotels over ten years from 2013 to 2022. The data were obtained from the Refinitiv database, the World Bank, and the Sustainable Development Index. The system generalized method of moments estimator was applied to ensure the robustness of results. The study results indicate that firm-specific factors, including return on assets, leverage, asset tangibility, and board structure, significantly impact working capital needs. Additionally, macroeconomic elements such as GDP play a crucial role in shaping working capital management. A notable positive relationship was identified between return on assets and working capital requirements. Conversely, leverage exhibited a strong negative association with working capital needs. These results emphasize the importance of both internal financial characteristics and broader economic conditions in effective working capital management. The study highlights the importance of integrating governance and economic conditions into working capital management strategies.

Type of the article: Research Article

Abstract
This study investigates the asymmetric short- and long-run effects of gold prices, crude oil prices, and the USD/INR exchange rate on India’s Nifty 50 index. Drawing on daily data from 2022 through 2024, it employs the Nonlinear Autoregressive Distributed Lag (NARDL) model to uncover both long-term equilibrium relationships and short-term nonlinear dynamics among these key economic variables. Unit root tests reveal mixed orders of integration, reinforcing the suitability of the NARDL framework for this analysis. The long-run estimates indicate that only negative gold price shocks exert a statistically significant effect on the Nifty 50, while positive shocks appear inert. In contrast, the short-run results highlight that both USD/INR appreciations and depreciations adversely affect the index, underlining the stock market’s heightened sensitivity to exchange rate volatility. Intriguingly, short-term declines in gold prices are associated with positive responses in equity markets, potentially reflecting hedging behavior or shifts in investor sentiment. Meanwhile, crude oil price fluctuations exert no statistically meaningful impact in either the short or long term. Diagnostic checks confirm a stable long-run cointegrating relationship among the studied variables. These findings offer robust, empirically grounded insights for investors and policymakers, particularly in crafting risk mitigation strategies and informed decision-making during periods of geopolitical turbulence and economic uncertainty.

Type of the article: Research Article

Abstract
This study examines the relationship between family ownership and investment efficiency in the Middle East and North Africa (MENA) region by investigating the mediating role of environmental, social, and governance (ESG) performance and the moderating role of board gender diversity. Using a sample of non-financial firms from eight MENA countries (Saudi Arabia, Egypt, Jordan, Kuwait, United Arab Emirates, Qatar, Oman, and Bahrain) over the period 2015–2023, comprising 3,245 firm-year observations, and ESG data obtained from Refinitiv, the analysis employs firm fixed-effects and system GMM estimations. The results indicate that family ownership is positively associated with investment efficiency (β = 0.044, p < 0.01). Family ownership also has a positive effect on ESG performance (β = 0.118, p < 0.01), while ESG performance is positively associated with investment efficiency (β = 0.039, p < 0.01). Further analysis reveals that ESG performance partially mediates the relationship between family ownership and investment efficiency. Moreover, board gender diversity strengthens the positive effect of ESG performance on investment efficiency (β = 0.001, p < 0.01), indicating that firms with greater female board representation are better able to translate sustainability engagement into efficient capital allocation. The findings highlight the complementary roles of family ownership, ESG performance, and board gender diversity in enhancing investment efficiency in emerging markets. These results provide important implications for policymakers, investors, and corporate leaders seeking to promote sustainable governance and efficient investment decisions in the MENA region.