International Journal of Finance

Use of AI to improve Regulatory Reporting Accuracy and Efficiency

Chintamani Bagwe — 2024-04-24

Regulatory reporting stands transformed by artificial intelligence's advent, offering numerous advantages in precision, efficacy, and compliance. AI enabled tools empower financial institutions to streamline compliance practices and mitigate risks through enhanced reporting accuracy. This article examines applications of AI in regulatory reporting and their benefits. The article also explores AI's transformative impact on financial institutions' adherence to regulatory mandates. Furthermore, it underscores human expertise's pivotal role in developing AI-driven regulatory reporting systems. As regulatory landscapes evolve, integrating AI technology into regulatory reporting processes becomes imperative for financial institutions.

Evaluation of the Impact of the Stock Price on the Financial Performance of Telecommunication Companies in Zambia: A Case Study of Airtel Zambia Limited (2012 – 2021)

Wabei Catherine Mutafu — 2024-04-24

Purpose: This paper evaluates the impact of the Lusaka Securities Exchange (LUSE) on the financial performance of telecommunication companies in Zambia: a study of Airtel Zambia Limited (2012 – 2021).

Methodology: Using time series quantitative data and a combination of primary and secondary data obtained through structured questionnaires to meet the following specific research objectives: i) to analyse the effect of Airtel Zambia’s stock price on the annual net revenue of Airtel Zambia, ii) to determine the correlation between Airtel Zambia’s stock price and the annual net revenue of Airtel Zambia, iii) to determine management’s level of knowledge of the Securities Exchange Market and how the knowledge is being applied to influence revenue performance, iv) to examine the perception of employees on the effect of stock price on the revenue performance of Airtel Zambia Limited and v) to identify and examine factors that affect revenue performance of Airtel Zambia Limited.

Findings: The results of the study show that there exists a statistically significant relationship, there is a low effect of stock prices on Airtel Zambia’s revenue and that there is a correlation between the stock price and revenue performance. This study underscores the need for increased participation in the Lusaka Securities Exchange (LUSE), improved branding and reputation management for listed companies, and further scholarly research in this field.

Unique contribution to theory, policy and practice: It advocates for strategic initiatives by financial market players to stimulate market participation, and for companies to enhance their shareholder relations to potentially boost share prices and revenue. The study also identifies significant gaps in the literature, highlighting the opportunity for further research in this area.

Walking the Walk: Corporate Social Responsibility and Product Recalls in the Automotive Industry

Fatima Jebari — 2024-03-20

Purpose: The purpose of this paper is to disentangle a unique way in which corporate social responsibility (CSR) affects firm value in the context of product recalls in the automotive industry.

Methodology: Using a sample of product recall events in the automotive industry between 2002 and 2018 and controlling for the spread of product recalls across product lines, this study explores the underlying economic channels through which CSR improves investments in quality. For robustness check, self-selection bias is corrected for using a 2SLS approach and alternative measures for product failures and CSR.

Findings: The authors find that firms with higher CSR scores are associated with a lower frequency of recalls. Moreover, higher CSR scores are associated with a higher likelihood of voluntary recalls, higher product quality, higher capital expenditures, and higher employee productivity.

Unique Contribution to Theory, Practice, and Policy: This study offers insights to managers, investors, and board members, showing the potential benefits of engaging in CSR activities. This study contributes to the literature on the effect of CSR on different managerial decisions and the factors that affect product recalls. Additionally, the study reveals the connection between CSR and product recalls.