/library/oar/handle/123456789/692 Sun, 02 Nov 2025 00:11:17 GMT 2025-11-02T00:11:17Z /library/oar/handle/123456789/140709 Title: The role of CFOs on the boards of Maltese listed entities : implications for corporate governance Authors: Baldacchino, Peter J.; Tanti, Owen; Ellul, Lauren; Tabone, Norbert; Grima, Simon Abstract: This paper examines the role of Chief Financial Officers (CFOs) on the boards of Maltese Listed Entities (MLEs). The paper explores how the corporate boards of MLEs prefer to involve CFOs and evaluates the views of board members about the benefits and drawbacks of CFO participation. The study analyzes the broader implications for corporate governance, including the perspectives of directors, managers, and shareholders. Methodology: We adopted a mixed-method approach using semi-structured interviews with 10 board members (BMs) and 16 CFOs from MLEs. In addition, we collected written responses from three BMs and two CFOs, resulting in a total of 31 participants. Results: MLEs tend to favor CFOs as regular board attendees rather than full board members, aiming to ensure robust financial oversight while preserving the independence of managerial oversight. Factors such as the financial literacy of the board and the complexity of the business influence this preference. Boards sometimes appoint CFOs following cooling-off periods, and participants expressed concerns about potential conflicts between current and former CFOs, as well as the challenge of balancing board duties with operational responsibilities. Nevertheless, participants viewed CFO board participation positively. Participants believe CFOs contribute to strategic alignment, deeper managerial insight, and enhanced shareholder confidence when they participate on boards. While small shareholders expressed minimal concern, institutional investors placed a stronger value on CFO involvement. Originality / value: This study fills a gap in the corporate governance literature by examining the specific contributions and oversight roles of CFOs within the boards of Multinational Listed Entities (MLEs), an area that has received limited academic attention. Practical implications: The findings guide MLEs and other listed firms in designing CFO involvement in board processes and balancing effective financial oversight with good governance practices. Theoretical implications: This study contributes to corporate governance theory by illustrating how CFOs play a distinctive role in board structures, particularly in contexts where companies must balance financial expertise with administrative independence. It deepens understanding of how CFO involvement shapes decision-making dynamics, strategic oversight, and the evolution of governance models in smaller capital markets. Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140709 2025-01-01T00:00:00Z /library/oar/handle/123456789/140686 Title: The role of liquidity risk in shaping the dynamics of the Maltese equity market Abstract: Liquidity is a fundamental feature of shaping equity dynamics, investor participation and trading activity (Amihud, 2002; Chordia et al., 2005). Liquidity risk arises when securities cannot easily be traded, which is a recurring issue in small and less active markets (Lesmond et al., 1999; Bekaert et al., 2005). The rationale of this study was to examine the relationship between liquidity risk and selected market variables in the Maltese equity market, specifically volume traded, value traded, bid-ask spreads, stock price and days of stale pricing. A mixed-methods approach was employed using both quantitative and qualitative analysis through secondary data and semi-structured interviews with industry professionals. The empirical findings revealed that liquidity risk is the most strongly associated with trading activity (volume traded and value traded). Moreover, the interviewees further highlighted that structural constraints such as limited free float and the absence of a market maker discourage active trading. The study concludes that liquidity risk poses a persistent challenge to the Maltese equity market, constraining both investor flexibility and issuers’ cost of capital. Based on these findings, the research recommends that policymakers and regulators consider measures to enhance liquidity, including the introduction of market makers, tax incentives for both retail and institutional participants and potential reforms to the free float requirements. Further research is encouraged to compare Malta’s findings with other small developed and emerging markets, to identify transferable policy lessons. Description: M.A.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140686 2025-01-01T00:00:00Z /library/oar/handle/123456789/140685 Title: An examination of startup financing dynamics in Malta : challenges and opportunities Abstract: Like any other business, startups play an important role in the creation of jobs and fostering economic growth. However, startups have another crucial role; that of pushing innovation. In order for startups to grow and expand, they need access to sufficient financing resources. Startups, especially those in the early stages, are often thought to be risky mostly because of their lack of tangible assets to serve as a collateral, and a limited operating history. As a result, they often find it challenging to obtain adequate funding which prevents them from growing, expanding and achieving their full potential. This dissertation examines the financing needs of startups in Malta, the funding options available to them and the difficulties encountered in accessing them. It also explores the role of government assistance and support schemes in addressing these challenges and improvements that can be made in the Maltese financing ecosystem for startups. The research involves the collection of primary data through the use of two surveys; one distributed to Maltese startups (covering their financing needs, challenges, and government support) and a complementary questionnaire for bank representatives. The study aims to capture perspectives from both entrepreneurs and financial institutions to provide a holistic view of the financing landscape. The results indicate that Maltese startups find it challenging to access external finance, particularly in securing traditional bank debt due to high collateral requirements and risk aversion by investors. Although the Maltese government supports the startup ecosystem though various initiatives, many startups remain unaware of available support or perceive the application processes as too complex and burdensome. Moreover, alternative financing mechanisms are still underdeveloped in the Maltese startup ecosystem. The findings of this study show that the financing ecosystem in Malta needs to be more diversified and accessible to young ventures like startups by streamlining application processes and by the adoption of innovative funding instruments that are tailored to startups’ specific needs. Description: M.A.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140685 2025-01-01T00:00:00Z /library/oar/handle/123456789/140684 Title: Assessing the performance of active fund managers in the European high yield bond space Abstract: This dissertation undertakes an investigation to observe whether active fund managers in the European high yield bond market can deliver sustained excess returns in relation to a passive alternative. The European high yield market through its liquidity, concertation and sensitivity to prevailing conditions presents both opportunities and challenges to active managers. This research targets the underrepresented area of performance attribution within the European high yield market within academic literature through undertaking a quantitative analysis on nine actively managed European high yield funds and a singular passive alternative across a six-year time period. The analysis undertakes risk adjust metrics, drawdown and recovery analysis along with an examination of option adjusted spread behaviour. This is reviewed in the context of broader ECB policy rates, default rates and credit spreads to identify the market conditions most conducive to alpha generation. Ultimately the study yields that alpha generation is periodic rather than persistent, with active managers only outperforming the passive ETF during dislocated market phases. These episodic bursts of outperformance highlight that active management can add value under certain conditions, yet sustained alpha remains elusive. Description: M.A.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140684 2025-01-01T00:00:00Z