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The nexus between non-oil firms and profitability: A Systematic literature review from the last two decades
Emad Bashehab, Dr. Nur Azam Bin Anuarul Perai,
Volume 34, Issue 3 (9-2023)
Abstract
Not much attention is given to the financial performance of non-oil firms in oil producing economies as the focus would be on firms operating in the country’s major industry. However, fluctuating oil prices have made their importance to the economy more evident as oil producers start to diversify and move away from reliance on oil as a major source of revenue. Fluctuating oil prices cause enormous pressure on oil corporations’ bottom line, the expansion of non-oil enterprises has. The non-oil sector's profitability strategy is a major challenge for non-oil enterprises looking to contribute to the economy. The study's objective in the context of non-oil firm profitability is to analyse research conducted over the previous two decades to understand the future orientation of non-oil firms in oil-producing nations. We utilised the PRISMA statement 2020 and gathered records from Web of Science and Scopus. The final 46 articles were included for the review, and VOS viewer software was used to categorise the results. This is a comprehensive review exploring profitability of non-oil firms from the contexts of firm size, market share, governance structure and capital management. The paper concludes with suggestions for further research on firm profitability in relation to the economy in which it operates.   The study identified three significant streams: firm size, capital management and profitability. However, results indicate that there would be a positive link between business size and profitability. In addition, capital management is a critical component in maximising firm profitability, and the board of directors is a crucial determinant identified in the research.  Finally, results show that the elements determining profitability remain a significant issue for academics.
Not much attention is given to the financial performance of non-oil firms in oil producing economies as the focus would be on firms operating in the country’s major industry. However, fluctuating oil prices have made their importance to the economy more evident as oil producers start to diversify and move away from reliance on oil as a major source of revenue. Fluctuating oil prices cause enormous pressure on oil corporations’ bottom line, the expansion of non-oil enterprises has. The non-oil sector's profitability strategy is a major challenge for non-oil enterprises looking to contribute to the economy. The study's objective in the context of non-oil firm profitability is to analyse research conducted over the previous two decades to understand the future orientation of non-oil firms in oil-producing nations. We utilised the PRISMA statement 2020 and gathered records from Web of Science and Scopus. The final 46 articles were included for the review, and VOS viewer software was used to categorise the results. This is a comprehensive review exploring profitability of non-oil firms from the contexts of firm size, market share, governance structure and capital management. The paper concludes with suggestions for further research on firm profitability in relation to the economy in which it operates.   The study identified three significant streams: firm size, capital management and profitability. However, results indicate that there would be a positive link between business size and profitability. In addition, capital management is a critical component in maximising firm profitability, and the board of directors is a crucial determinant identified in the research.  Finally, results show that the elements determining profitability remain a significant issue for academics.
Markowitz Revisited: Addressing Ambiguity as an Important Parameter in Portfolio Optimization
Seyed Erfan Mohammadi, Emran Mohammadi, Ahmad Makui, Kamran Shahanaghi,
Volume 34, Issue 4 (12-2023)
Abstract
Since 1952, when the mean-variance model of Markowitz introduced as a basic framework for modern portfolio theory, some researchers have been trying to add new dimensions to this model. However, most of them have neglected the nature of decision making in such situations and have focused only on adding non-fundamental and thematic dimensions such as considering social responsibilities and green industries. Due to the nature of stock market, the decisions made in this sector are influenced by two different parameters: (1) analyzing past trends and (2) predicting future developments. The former is derived objectively based on historical data that is available to everyone while the latter is achieved subjectively based on inside-information that is only available to the investor. Naturally, due to differences in the origin of their creation the bridge between these two types of analysis in order to optimize the portfolio will be a phenomenon called "ambiguity". Hence, in this paper, we revisited Markowitz's model and proposed a modification that allow incorporating not only return and risk but also incorporate ambiguity into the investment decision making process. Finally, in order to demonstrate how the proposed model can be applied in practice, it is implemented in Tehran Stock Exchange (TSE) and the experimental results are examined. From the experimental results, we can extract that the proposed model is more comprehensive than Markowitz's model and has greater ability to cover the conditions of the stock market.

Behavioral Finance biases: A Comprehensive Review on regret approach studies in portfolio optimization
Amirmohammad Larni-Fooeik, Hossein Ghanbari, Seyed Jafar Sadjadi, Emran Mohammadi,
Volume 35, Issue 1 (3-2024)
Abstract
In the ever-evolving realm of finance, investors have a myriad of strategies at their disposal to effectively and cleverly allocate their wealth in the expansive financial market. Among these strategies, portfolio optimization emerges as a prominent approach used by individuals seeking to mitigate the inherent risks that accompany investments. Portfolio optimization entails the selection of the optimal combination of securities and their proportions to achieve lower risk and higher return. To delve deeper into the decision-making process of investors and assess the impact of psychology on their choices, behavioral finance biases can be introduced into the portfolio optimization model. One such bias is regret, which refers to the feeling of remorse that can induce hesitation in making significant decisions and avoiding actions that may lead to unfavorable investment outcomes. It is not uncommon for investors to hold onto losing investments for extended periods, reluctant to acknowledge mistakes and accept losses due to this behavioral tendency. Interestingly, in their quest to sidestep regret, investors may inadvertently overlook potential opportunities. This research article aims to undertake an in-depth examination of 41 publications from the past two decades, providing a comprehensive review of the models and applications proposed for the regret approach in portfolio optimization. The study categorizes these methods into accurate and approximate models, scrutinizing their respective timeframes and exploring additional constraints that are considered. Utilizing this article will provide investors with insights into the latest research advancements in the realm of regret, familiarize them with influential authors in the field, and offer a glimpse into the future direction of this area of study.  The extensive review findings indicate a growth in the adoption of the regret approach in the past few years and its advancements in portfolio optimization.

Corporate Social Responsibility- Sustainability Nexus: A Systematic Literature Review and Bibliometric Analysis
Ag Kaifah Riyard Kiflee, Nornajihah Nadia Hasbullah, Faerozh Madli,
Volume 35, Issue 2 (6-2024)
Abstract
Over the years, the attention given to corporate social responsibility (CSR) and sustainability topics has received a lot of attention significantly and various new terms have been introduced. This result has sparked a wide-ranging and unspecified discussion, particularly in the fields of economics and business management. The presents of functional CSR and sustainability enable management to make better decisions for the benefit of the entire society.  As a result, understanding the topic of interest and broadening research collaboration are critical for advancing research development.  The purpose of this study is to identify global research trends in CSR and sustainability based on publication numbers, co-authorship, affiliated countries, and keyword co-occurrences. This study used RTools and Prisma for its analysis. The findings indicate a significant rise in the number of articles published in the field of corporate social responsibility and sustainability since 2015. The USA contributed more than half of the publications, with Italy and Spain following closely behind.

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