Differential impact of advertising and distribution expenditure on Tobin's Q

2009 ◽  
Vol 1 (2/3) ◽  
pp. 77-94 ◽  
Author(s):  
Arvind Sahay ◽  
Anandan Pillai
Keyword(s):  
Corporate Branding ◽  
Negative Impact ◽  
Positive Impact ◽  
Tobin’S Q ◽  
Advertising Expenditure ◽  
Time Series Regression ◽  
Tobin's Q ◽  
Content Type ◽  
Marketing Expenditures ◽  
The Impact

PurposeThe purpose of this paper is to understand the impact of components of marketing expenditures, i.e. advertising and distribution expenditures on intangible value of firm (measured in terms of Tobin's Q). The relationship is studied in the context of branding approaches (corporate and house of brands) that various firms follow.Design/methodology/approachThe data are collected from databases of Centre for Monitoring Indian Economy (CMIE) and from the web site of National Stock Exchange. Time series regression is performed using SPSS software to test the model.FindingsAdvertising expenditure has a positive impact on the intangible value of the firm and this relationship is stronger for firms following corporate branding than for firms that follow house of brands strategy. Distribution expenditure has negative impact on the intangible value of the firm and this relationship is stronger for firms following corporate branding than for firms that follow house of brands strategy.Research limitations/implicationsSince most of the data retrieved for the analysis were of B2B (business to business) firms, the findings may not be generalized for all firms.Practical implicationsAdvertising expenditure has a diminishing marginal utility in creating intangible value. It would be useful for firms to understand where they are on this continuum and whether their advertising expenditure is giving adequate returns or may be better spent elsewhere.Originality/valueIn the literature, researchers have expressed mixed viewpoints regarding the impact of total marketing spend on intangible value. The marketing expenditures are found to have both positive and negative impact on intangible value, with respect to various contexts. However, the impact of major components of marketing expenditures is not addressed. This gap is addressed in this research paper.

THE IMPACT OF CAPITAL STRUCTURE AND OWNERSHIP ON THE PERFORMANCE OF STATE ENTERPRISES AFTER EQUITIZATION: EVIDENCE FROM VIETNAM

2021 ◽  
pp. 2150007
Author(s):  
NGUYEN DUY SUU ◽  
HO THUY TIEN ◽  
WING-KEUNG WONG
Keyword(s):  
Capital Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
State Ownership ◽  
Stock Exchanges ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Equity Ratio ◽  
Capital Ownership ◽  
The Impact

The main objective of this paper is to study the impact of capital structure and capital ownership form of SOEs after equitization. We have considered all 137 state-owned companies after equitization for which data can be collected during the period from 2007 to 2017. These encompass companies in different industries listed on the HOSE (Ho Chi Minh City) and HNX (Hanoi) stock exchanges. To this end, we have applied REM and FEM models and corrected for variance with the GLS and FEM models. Our findings reveal that the variable leverage (LEV) has a negative impact on ROA, but, interestingly, has a positive impact on ROE and Tobin’s Q. Growth rate (GROWTH) have a positive effect on both ROA and Tobin’s Q. State ownership (SO) has only positive impact on ROA. Meanwhile, the company size variable (SIZE) has a positive impact on Tobin’s Q. In addition, in relation to our examination of how the domestic and foreign resources might impact on the profitability ratio, we have observed that the domestic equity ratio has a positive impact on both ROA and ROE whereas the foreign ownership ratio has a negative impact on both ROA and ROE.

Every coin has two sides: the impact of time pressure on employees’ knowledge hiding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai
Keyword(s):  
Time Pressure ◽  
Negative Impact ◽  
Positive Impact ◽  
Job Security ◽  
Statistical Technique ◽  
Content Type ◽  
Individual Knowledge ◽  
Negative Effect ◽  
Knowledge Hiding ◽  
The Impact

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.

Banking market structure and efficiency: an assessment of the USA and Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salah U-Din ◽  
David Tripe
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Banking Market ◽  
Cost Efficient ◽  
The Impact

PurposeThe study aims to analyze the changes in banking market structure and their impact on the bank efficiency.Design/methodology/approachThis study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.FindingsA significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.Research limitations/implicationsOnly large banks are selected for study although it represents the majority stake of both banking sectors.Practical implicationsBanking regulators should include more measures to assess the banking market structure and performance.Originality/valueAs per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.

The impact of social trends: teenagers’ attitudes for organic food market in Thailand

2018 ◽  
Vol 45 (4) ◽  
pp. 682-699 ◽  
Author(s):  
Waripas Jiumpanyarach
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Organic Food ◽  
High Price ◽  
Food Motivation ◽  
Organic Foods ◽  
Content Type ◽  
Social Trends ◽  
Food Items ◽  
The Impact

Purpose The purpose of this paper is to investigate teenagers’ preferences, attitudes, and purchasing power towards organic foods in markets and to explain influences of teenagers’ choices and purchasing intentions on organic foods. Design/methodology/approach A paper-based and a web-based survey were conducted among 557 teenagers in Thailand. A choice experiment logit model was used to identify factors influencing decision in purchasing. Findings The study found that teen consumers were likely to buy ready-to-cook organic food items instead of conventional food items because of health and food safety concerned under their budget constraints. The willingness to pay found organic food items (eggs, pork, chicken) had negative impact but organic opinion had positive impact. The attitudes on high price of organic food items were positive impact because of production process, quality, and quantity of products. Research limitations/implications Teenagers’ consumption impacted on food demands in supermarkets and convenient stores because of their attitudes and behaviours in purchasing. The desired food characteristics should be good quality, safety for consumers, and available in the market nationwide. The supported policies for expanding organic markets were benefits for organic farmers to be sustainable farming. Originality/value This study examined the impacts of economic conditions and the premium quality healthy food products on teenagers’ food motivation.

Corporate governance mechanisms and corporate performance of firms in Nigeria and Ghana

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martha Coleman ◽  
Mengyun Wu
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Financial Distress ◽  
Corporate Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Structure Index ◽  
The Impact ◽  
The Relationship

PurposeThis study investigates the impact of corporate governance (CG) mechanisms with inclusion of compliance and diligence index on corporate performance (CP) of firms in Nigeria and Ghana. It further examines the moderating effect of financial distress on the relationship between CG and CP.Design/methodology/approachThe study used panel data of 102 nonfinancial listed firms of Nigeria and Ghana stock exchange for the period 2012–2016 with total observation of 510. The study first used OLS in estimating the influence of CG mechanisms on CP. Due to multicollinearity in the independent variables, ridge regression was employed.FindingsIt was revealed that ownership structure index and board compliance and diligence index, board size, board disclosure, ownership structure, shareholders' right and board compliance and diligence index had positive influence on ROA and ROE. Growth of Tobin's Q depends on board procedure and board compliance and diligence index. Also, financial distress (ZFS) negatively moderates the relationship between board structure index, board disclosure index, board procedure index, shareholders' right and performance (ROA and ROE) but negatively moderates between ownership structure index and Tobin's Q.Practical implicationsThis study provides interesting findings to policymakers in full implementation of CG codes as stated by OCED (2015) by West African firms with greater emphasis on compliance and diligence index since it positively influences all CP measures.Originality/valueThe study provides evidence of the importance of the introduction of the new index: compliance and diligence, which looks at disclosure of CSR activities. This has been overlooked by most researchers especially in Africa in assessing quality CG mechanisms.

scholarly journals The effects of farmers’ adoption behavior of soil and water conservation measures on agricultural output

2020 ◽  
Vol 12 (5) ◽  
pp. 599-615
Author(s):  
Xiaohui Huang ◽  
Qian Lu ◽  
Fei Yang
Keyword(s):  
Soil Erosion ◽  
Water Conservation ◽  
Negative Impact ◽  
Positive Impact ◽  
Soil And Water Conservation ◽  
Agricultural Output ◽  
Content Type ◽  
Conservation Measures ◽  
The Impact ◽  
Soil And Water

Purpose This paper aims to build a theoretical model of the impact of farmers’ adoption behavior of soil and water conservation measures on the agricultural output to analyze the impact of farmers’ adoption behavior of soil and water conservation measures on agricultural output. Design/methodology/approach Based on the field survey data of 808 farmers households in three provinces (regions) of the Loess Plateau, this paper using the endogenous switching regression model to analyze the effect of farmers’ adoption behavior of soil and water conservation measures on agricultural output. Findings Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output. Based on the counterfactual hypothesis, if farmers who adopt soil and water conservation measures do not adopt the corresponding soil and water conservation measures, their average output per ha output will decrease by 2.01%. Then, if farmers who do not adopt soil and water conservation measures adopt the corresponding soil and water conservation measures, their average output per ha output will increase by 12.12%. Government support and cultivated land area have a significant positive impact on farmers’ adoption behavior of soil and water conservation measures. Research limitations/implications The research limitation is the lack of panel data. Practical implications Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output. Social implications The conclusion provides a reliable empirical basis for the government to formulate and implement relevant policies. Originality/value The contributions of this paper are as follows: the adoption behavior of soil and water conservation measures and agricultural output are included into the same analytical framework for empirical analysis, revealing the influencing factors of farmers’ adoption behavior of soil and water conservation measures and their output effects, enriching existing research. Using endogenous switching regression model and introducing instrumental variables to overcome the endogenous problem between the adoption behavior of soil and water conservation measures and agricultural output, and to analyze the influencing factors of farmers’ adoption behavior of soil and water conservation measures and its impact on agricultural output. Using the counter-factual idea to ensure that the two matched individuals have the same or similar attributes, to evaluate the average treatment effect of the behavior of soil and water conservation measures, to estimate the real impact of adaptation measures on agricultural output as accurately as possible and to avoid misleading policy recommendations.

scholarly journals The impact of downside risk on UK stock returns

2019 ◽  
Vol 18 (1) ◽  
pp. 53-70
Author(s):  
Fangzhou Huang
Keyword(s):  
Stock Returns ◽  
Financial Crises ◽  
Negative Impact ◽  
Positive Impact ◽  
Downside Risk ◽  
Content Type ◽  
Portfolio Returns ◽  
Time Sensitivity ◽  
Window Approach ◽  
The Impact

PurposeThis paper aims to investigate patterns in UK stock returns related to downside risk, with particular focus on stock returns during financial crises.Design/methodology/approachFirst, stocks are sorted into five quintile portfolios based on the relevant beta values (classic beta, downside beta and upside beta, calculated by the moving window approach). Second, patterns of portfolio returns are examined during various sub-periods. Finally, predictive powers of beta and downside beta are examined.FindingsThe downside risk is observed to have a significant positive impact on contemporaneous stock returns and a negative impact on future returns in general. In contrast, an inverse relationship between risk and return is observed when stocks are sorted by beta, contrary to the classic literature. UK stock returns exhibit clear time sensitivity, especially during financial crises.Originality/valueThis paper focuses on the impact of the downside risk on UK stock returns, assessed via a comprehensive sub-period analysis. This paper fills the gap in the existing literature, in which very few studies examine the time sensitivity in relation to the downside risk and the risk-return anomaly in the UK stock market using a long sample period.

Fuzzy C-means based data envelopment analysis for mitigating the impact of units’ heterogeneity

Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 536-551 ◽  
Author(s):  
Seyed Hossein Razavi Hajiagha ◽  
Shide Sadat Hashemi ◽  
Hannan Amoozad Mahdiraji
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Negative Impact ◽  
Positive Impact ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Content Type ◽  
Fuzzy C Means ◽  
The Impact ◽  
Decision Making Units

Purpose – Data envelopment analysis (DEA) is a non-parametric model that is developed for evaluating the relative efficiency of a set of homogeneous decision-making units that each unit transforms multiple inputs into multiple outputs. However, usually the decision-making units are not completely similar. The purpose of this paper is to propose an algorithm for DEA applications when considered DMUs are non-homogeneous. Design/methodology/approach – To reach this aim, an algorithm is designed to mitigate the impact of heterogeneity on efficiency evaluation. Using fuzzy C-means algorithm, a fuzzy clustering is obtained for DMUs based on their inputs and outputs. Then, the fuzzy C-means based DEA approach is used for finding the efficiency of DMUs in different clusters. Finally, the different efficiencies of each DMU are aggregated based on the membership values of DMUs in clusters. Findings – Heterogeneity causes some positive impact on some DMUs while it has negative impact on other ones. The proposed method mitigates this undesirable impact and a different distribution of efficiency score is obtained that neglects this unintended impacts. Research limitations/implications – The proposed method can be applied in DEA applications with a large number of DMUs in different situations, where some of them enjoyed the good environmental conditions, while others suffered from bad conditions. Therefore, a better assessment of real performance can be obtained. Originality/value – The paper proposed a hybrid algorithm combination of fuzzy C-means clustering method with classic DEA models for the first time.

Reconsidering the role of Tobin’s Q

2015 ◽  
Vol 32 (2) ◽  
pp. 222-234 ◽  
Author(s):  
Mark J. Holmes ◽  
Nabil Maghrebi
Keyword(s):  
Error Correction ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Investment Expenditure ◽  
Long Run ◽  
The Impact ◽  
The Relationship ◽  
Long Run Equilibrium ◽  
Real Investment

Purpose – The purpose of this study is to investigate nonlinearities in the behavior of investment expenditure. Conventional wisdom suggests that Tobin’s Q criterion is an important explanation of investment behaviour that bridges the financial and real sides of the economy. However, the empirical evidence in support of Q as a means of explaining aggregate business investment is rather weak. We answer a number of questions about the relationship between investment expenditure and Q. In particular, is the relationship governed by non-linearities? If so, what is the nature of the non-linearities present? Design/methodology/approach – The rationale for paying closer attention to non-linearities is based on the presence of information asymmetries and possible dependence of adjustments on non-linearities with respect to factors such as fixed costs, threshold effects and irreversibility, which are entertained in the investment literature. Using the non-linear vector error-correction model procedure advocated by Hansen and Seo, we show that in the context of the US economy, investment has a long-run relationship with Q that is based on threshold error correction. Findings – There are asymmetries present with respect to error correction or the speed of adjustment towards long-run equilibrium. We find that investment expenditure only responds significantly to long-run disequilibrium from Q during a particular regime. Such a regime is characterised by long-run disequilibrium based on high or rising investment expenditure compared with a relatively weak stock market. Originality/value – The authors provide new insights into the relationship between Tobin’s Q and real investment. In contrast to previous work, they find that error correction based on the adjustment of real investment is regime-specific and function of the size of departures from long-run equilibrium. The tests also allow for the identification of periods when error correction has occurred. Not only are these insights significant for future research on financial crises, market volatility and the impact of debt, but for policymaking purposes as well.

Exploring factors influencing online classes due to social distancing in COVID-19 pandemic: a business students perspective

2020 ◽  
Vol 37 (4) ◽  
pp. 197-211 ◽  
Author(s):  
Adil Zia
Keyword(s):  
Business School ◽  
Negative Impact ◽  
Positive Impact ◽  
Business Students ◽  
Primary Data ◽  
Online Classes ◽  
Content Type ◽  
Social Distancing ◽  
The Impact ◽  
And Training

PurposeThis study explores the factors responsible for influencing online classes for business school during the COVID-19 pandemic. This study also examines the level of influence of these factors on online classes.Design/methodology/approachPrimary data were collected online from 716 business school students using a questionnaire developed by the researcher. Smart PLS3 software was used to analyze the data.FindingsAttitude, curriculum, motivation, technology and training were found to have an impact on online classes. Three variables (attitude, motivation and training) have a positive impact on online classes, whereas two variables (curriculum and technology) have a negative impact on the online classes. All the factors have been found to be significant except technology which is found to have an insignificant impact (p = 0.356) on online classes.Research limitations/implicationsOnly one university’s students were surveyed.Practical implicationsOutlines the factors which have a positive and significant impact on online classes during COVID-19 pandemic. This study can be generalized through a student's community across the world as the students face similar problems associated with online classes during the COVID-19 pandemic.Social implicationsSuggest factors that can be considered while COVID-19 pandemic during social distancing to make online classes more effective and to reduce the impact of this pandemic.Originality/valueNo study has documented the factors associated to impact the online classes during the COVID-19 pandemic.

Sign in / Sign up

Export Citation Format

Share Document