Intellectual capital efficiency, institutional ownership and cash holdings: a cross-country study

Purpose: This study investigates the roles of intellectual capital efficiency and institutional ownership on cash holdings and their speed of adjustment. Design/methodology/approach: Using a sample of 432 firm-year observations of tourism-listed companies, three measures of cash holdings are used as dependent variables and intellectual capital efficiency and institutional ownership as independent variables. The financial data is collected from the S&P Capital IQ database for the period 2015 to 2020. Two system-generalized methods of moment estimation are used for the robustness checks of the results. Findings: The study provides evidence that an increase in intellectual capital efficiency in tourism firms results in lower cash holdings. The research findings also report that characteristics such as firm size, age and market-to-book value ratio are associated with cash holdings. Furthermore, institutional ownership in these firms did not affect the cash holdings. The results also confirm the existence of a target cash holding level to which the tourism firms attempt to converge. These results are robust to the alternative proxy of cash holding and endogeneity tests. Research limitations/implications: The study uses intellectual capital efficiency measured by the model proposed by Pulic. Alternative measures of intellectual capital can be included in future studies. Future research can also investigate the impact on cash holdings before and during the pandemic for tourism companies. The study is limited to the impact of institutional ownership thus research can be extended to consider other types of ownership. Practical implications: The findings of this study indicate that tourism companies should take into account the impact of intellectual capital efficiency on their cash holdings decisions. The industry uses a specific financial management strategy in light of better efficiency and possibly values the opportunity cost of holding more cash. Additionally, regulators should re-examine the role of institutional ownership in tourism firms as it was found to have no impact on cash holdings. The regulators may need to consider other factors, such as firm size and age, when developing policies and regulations to ensure that tourism firms have adequate cash holdings. Originality/ Value: This study adds to the body of knowledge on the factors that influence cash management and ideal cash levels for the tourism industry. The examination of the effect of intellectual capital on cash holdings is a novel contribution, filling a gap in the existing literature. The findings on the speed of adjustment towards optimal cash holdings also provide support for the trade-off theory

The Role of Energy Transition and International Tourism in Mitigating Environmental Degradation: Evidence from SEE Countries

Since curbing the upward trend of energy consumption has become a global pursuit in achieving environmental sustainability, macroeconomic factors such as energy transition and international tourism may be of crucial importance in mitigating environmental degradation. However, the combined role of economic welfare, population, international tourism, and energy transition towards mitigating environmental degradation has not been investigated extensively. In this regard, this study looks at the combined interplay between these variables for a panel of ten southeastern Europe (SEE) countries, covering the period of 1997–2018 under the umbrella of the environmental Kuznets curve (EKC) phenomenon. Two indicators of environmental degradation, namely, ecological footprint and carbon intensity, were used in this study. The ordinary least squares (OLS) regression with Driscoll–Kraay (DK) and the panel Method of Moments Quantile Regression (MMQR) with fixed effects were used to disclose the following outcomes: firstly, the environmental degradation–economic welfare nexus firmly established an inverted U-shaped relationship, thereby depicting the validity of the EKC hypothesis. Secondly, energy transition and international tourism manifest negative effects: they induce environmental degradation. Thirdly, the impact of the population is positive but not significant. Given the empirical outcomes, energy transition and international tourism are proposed as critical to mitigating the environmental degradation of the inspected sample of countries

The Anthropogenic Consequences of Energy consumption in the presence of Uncertainties and Complexities: Evidence from World Bank Income Clusters

In environmental management, many studies have examined the energy consumption-emissions nexus in detail. However, for the first time in the literature, this study considers how the economic complexity index (ECI) and economic policy uncertainty (EPU) moderate the contribution of energy consumption to emissions for the four World Bank Income clusters. The system generalised methods of moments are applied to data for 109 countries from 1996 to 2016. Based on the main model (grouped clusters) estimations, the result revealed the existence of the environmental Kuznets curve (EKC) hypothesis. Also, an increase in air transport and consumption of energy releases more carbon emissions to the climate. Interestingly, ECI decreases carbon emission significantly while EPU does not have a significant impact. Moreover, the study revealed that ECI moderated the impact of other variables on emission, but EPU is not a significant moderator. Furthermore, a comparative analysis among the four incomes suggests that the EKC hypothesis holds only in the high-income clusters, ECI is a significant predictor of carbon emission in the four clusters, but it only decreases the emission in high-income clusters. This corroborates the debate on climate change and the productive capacity of high-income countries. Given the foregoing, several policy measures were recommended