scholarly journals Does entrenchment of managers affect entrepreneurial dividend decision and investor sentiment?

2020 ◽  
Vol 14 (3) ◽  
pp. 275-288
Author(s):  
Hadfi Bilel
Keyword(s):  
Stock Exchange ◽  
Investor Sentiment ◽  
Self Control ◽  
Political Crisis ◽  
Content Type ◽  
Future Studies ◽  
Listed Firms ◽  
Propensity To Pay ◽  
Practical Implications

Purpose The purpose of this paper is to observe whether the entrenchment of managers can affect firms’ dividend disbursement decisions and investor sentiment in the Tunisia context. Design/methodology/approach The sample includes all non-financial listed stocks in the Tunisia stock exchange during the years 2004–2017. Moreover, the entrenchment of managers is measured by five proxy explained the managers rooting from all listed firms. The propensity to pay dividends is measured by the dividend yield. Findings The findings yield qualitatively consistent with the previous research. After controlling for the effect of a manager’s behavior and different entrenchment phase, the result shows that entrepreneurial the firm’s decision to pay dividends could be influenced by the managers’ entrenchment. Research limitations/implications The result is limited at the level of the non-financial companies listed in the BVMT, but in future studies, the investigation with other countries can be compared. Practical implications Moreover, investors in Tunisia show their preference for a dividend to self-control and satisfaction and increase their profit, especially in an abnormal economic situation explained by the Tunisian political crisis. Originality/value The originality of this paper is to investigate both the important role of the entrenchment and cycle life of the manager on the decision to distribute dividends and the investor sentiment. Moreover, the author’s problem may be a reference for future investigation talking about the managers’ psychology like opportunism.

Determinants of voluntary formation of risk management committees

2014 ◽  
Vol 29 (7) ◽  
pp. 649-671 ◽  
Author(s):  
Nkoko Blessy Sekome ◽  
Tesfaye Taddesse Lemma
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Emerging Economy ◽  
Board Structure ◽  
Content Type ◽  
Listed Firms ◽  
Practical Implications

Purpose – The aim of this paper is to examine the nexus between firm-specific attributes and a company’s decision to setup a separate risk management committee (RMC) as a sub-committee of the board within the context of an emerging economy, South Africa. Design/methodology/approach – The authors analyse data extracted from audited annual financial reports of 181 non-financial firms listed on the Johannesburg Securities Exchange (JSE) by using logistic regression technique. Findings – The results show a strong positive relationship between the existence of a separate RMC and board independence, board size, firm size and industry type. However, the authors fail to find support for the hypotheses that independent board chairman, auditor reputation, reporting risk and financial leverage have an influence on a firm’s decision to establish RMC as a separately standing committee in the board structure. The findings signify the role of costs associated with information asymmetry, agency, upkeep of a standalone RMC, damage to the reputation of directors and industry-specific idiosyncrasies on a firm’s decision to form a separate RMC. Research limitations/implications – As in most empirical studies, this study focuses on listed firms. Nonetheless, future studies that focus on non-listed firms could add additional insights to the literature. Investigating the role of firm-specific governance attributes other than those considered in the present study (e.g. gender of directors, ownership structure, etc.) could further enhance the understanding of antecedents of risk-management practices. Practical implications – The findings have practical implications for the investment community in assessing the quality of risk management practices of companies listed on the JSE. Furthermore, the results provide insights that are potentially useful to the King Committee and other corporate governance regulators in South Africa in their effort to improve corporate governance practices. Originality/value – The present study focuses on firms drawn from an emerging economy which has profound economic, institutional, political and cultural differences compared to advanced economies, which have received a disproportionately higher share of attention in prior studies. Thus, the study contributes additional insights to the literature on corporate risk management from the perspective of an emerging economy.

Crisis communication in key account relationships

2014 ◽  
Vol 19 (3) ◽  
pp. 234-246 ◽  
Author(s):  
Satu Nätti ◽  
Suvi Rahkolin ◽  
Saila Saraniemi
Keyword(s):  
Crisis Communication ◽  
Communication Strategy ◽  
Content Type ◽  
Future Studies ◽  
Account Management ◽  
Key Account ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

Purpose – A deliberate and planned crisis communication strategy is an important part of key account management. The purpose of this paper is to draw links between key account managers (KAM) and crisis communication and explore the elements critical to crisis communication in key account relationships. Design/methodology/approach – The approach is qualitative. Data were gathered from people experienced in crisis communication and responsible for strategic accounts. The paper analysed managers’ stories of crisis processes and related communication in relationships. Findings – Successful crisis communication requires an open and active crisis communicator, one willing to solve problems, and also the company being a partner worth trusting and the retention of the relationship being worthwhile for the customer. Research limitations/implications – The present study focuses on the managerial view, and therefore a dyadic approach is suggested for future studies. Practical implications – The role of the KAM as a crisis communicator and primary identifier of the crisis is emphasized. Originality/value – Existing crisis communication discussions have been very media focused. This study focuses on the key account relationship and the related crisis communication. In addition, although earlier studies examine the influences of crises on business relationships (e.g. Salo et al., 2009; Thiessen and Ingenhoff, 2010; Tähtinen and Vaaland, 2006), research on crisis communication in business-to-business key account relationships is still scarce. The results will help to understand the characteristics of crisis communication in key account relationships and enhance communication with strategic accounts.

A matter of others' money: How cash holdings of other firms affect a firm’s cash holding?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jisaba Jinkrawee ◽  
Ravi Lonkani ◽  
Suchanphin Suwanaphan
Keyword(s):  
Stock Exchange ◽  
Cash Flows ◽  
Cash Holding ◽  
Content Type ◽  
Listed Firms ◽  
Developed Markets ◽  
Stock Exchange Of Thailand ◽  
Peer Firms ◽  
Cash Flow Volatility ◽  
Practical Implications

PurposeThis study examines the effects of comparable companies, within the same industry, on cash-holding (CH) levels of a specific firm in the Stock Exchange of Thailand (SET). Peer effects are hypothesized to affect a firm's average CH levels.Design/methodology/approachThe authors use data of listed firms in the Thai stock markets from 1995 to 2018. The sample consists of 5,277 firm-year observations. The authors perform robustness tests by incorporating gross domestic product, economy and competitiveness.FindingsPeer firms' CH levels correspond positively to the specific firm's CH. This strengthens further for firms with high cash flow volatility during periods of high competition. Unfavorable economic periods also motivate the association between a firm's CH and peer firms' CH.Practical implicationsA policy on CH should account for cash held by peer firms. Firms can justify their CH policy as compatible with peers' cash flows, especially during periods of competitiveness and an unfavorable economy.Originality/valueThe authors provide novel evidence on how emerging markets' CH levels differ from those in developed markets and propose adjusted explanations for the rivalry- and information-based theories. The findings add substantial knowledge to corporate finance by arguing that CH policies are based on peer firms' strategic moves.

Characteristics of statutory internal auditors and operating efficiency

2015 ◽  
Vol 30 (4/5) ◽  
pp. 456-481 ◽  
Author(s):  
Moon-Kyung Cho ◽  
Ho-Young Lee ◽  
Hyun-Young Park
Keyword(s):  
Internal Audit ◽  
Positive Association ◽  
Operating Efficiency ◽  
Full Time ◽  
Content Type ◽  
Internal Auditors ◽  
Listed Firms ◽  
Korean Market ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the effect of the characteristics of statutory internal auditors on operating efficiency. Design/methodology/approach – This study investigates three characteristics pertaining to statutory internal auditors, namely, compensation, activity and expertise, based on 1,340 firm observations from 2009 to 2010 using publicly available disclosure data for Korean listed firms. Findings – The authors find no evidence that statutory internal auditors’ compensation is positively associated with operating efficiency. This implies that compensation data on statutory internal auditors in Korea may not directly reflect their competence and ability to enhance operating efficiency. On the other hand, the authors find evidence for a positive association between full-time status for statutory internal auditors and operating efficiency and a positive association between the attendance at board meetings for statutory internal auditors and operating efficiency. The results also show a decrease in operating efficiency when statutory internal auditors are newly appointed. Finally, expertise of statutory internal auditors in financial or legal matters provides no advantage in terms of operating efficiency. Practical implications – This study contributes to the extant literature on internal audit by examining the advisory role of statutory internal auditors and its effect on operating efficiency, which is one of the objectives established by the Committee of Sponsoring Organizations of the Treadway Commission. Originality/value – While most prior research on internal audit depends on survey data from statutory internal auditors or experimental data based on a limited sample of firms, this study is based on a large sample of publicly available data of the Korean market.

Defining and measuring market sentiments: a review of the literature

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Divya Aggarwal
Keyword(s):  
Investor Sentiment ◽  
Empirical Literature ◽  
Future Research ◽  
Review Of The Literature ◽  
Content Type ◽  
Psychology Literature ◽  
Investment Styles ◽  
Practical Implications

Purpose The purpose of this paper is to review and discuss the literature focusing on defining and measuring sentiments so as to understand their role in stock market behavior. Design/methodology/approach Critical review of the literature by analyzing myriad scholarly articles. The study is based on an analysis of 81 scholarly articles to critically analyze the approach toward defining and measuring market sentiments. The articles have been examined to identify and critique different classification of sentiment measures. A discussion is built to scrutinize the sentiment measures under the purview of theoretical underpinnings of the investor sentiment theory as well. Findings With more than five decades of research, the sentiment construct in finance literature is still ill-defined. Myriad empirical proxies of sentiment measures have led to conflicting results. The sentiment construct defined in financial theories needs to be revisited from the lens of sentiments defined in psychology. Research limitations/implications The study is limited to analyzing the role of individual and institutional sentiments in equity markets. There is a need to explore sentiments with respect to different investment styles and strategies along with the type of investors. Practical implications Developing a suitable sentiment proxy can result in devising profitable trading strategies for investors. Understanding factors driving investor sentiments will help regulators to become more proactive and frame better policies. Originality/value This paper has leveraged psychology literature to highlight the limitations in development of sentiment construct in finance literature. By identifying stylized facts from reviewing the empirical literature, it highlights areas for future research.

The Islamic theory of consumer behaviour for ijarah home financing

2019 ◽  
Vol 13 (4) ◽  
pp. 672-693 ◽  
Author(s):  
Hanudin Amin
Keyword(s):  
Design Methodology ◽  
Consumer Behaviour ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Future Studies ◽  
Practice Gap ◽  
Theory Practice Gap ◽  
Practical Implications

Purpose This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the specific contract used is al-ijarah muntahia biltamleek. Subsequently, the term al-ijarah muntahia biltamleek home financing is used throughout the paper. Design/methodology/approach Drawing upon the ITCB, the present study examines patronage factors for al-ijarah muntahia biltamleek home financing. This study’s data were drawn from valid 409 usable questionnaires. Findings Partial least square results suggest that the role of iman, Islamic mortgage support and maqasid consumer index are significantly related to consumer behaviour. In turn, consumer behaviour is instrumental in determining religious satisfaction. Research limitations/implications Two limitations were observed that provide direction for future studies. Firstly, the current study is only tested in one particular Islamic home financing product that may explain why the generalisation is an issue. Secondly, the theory is still in its infancy stage, which, of course leads to some criticisms pertinent to its parsimony and applicability to other settings. Despite these limitations, however, this study aims to suggest a so-called Islamic model of factors that can explain consumer behaviour of a particular Islamic home financing product. In particular, scrutinising the product acceptance from the context of the ITCB can open a new debate in this area. Practical implications This study indeed reduces the theory–practice gap by suggesting new indicators that are workable to improve consumers’ positive perception of Islamic home financing. Given the results obtained, the ITCB provides a better prediction for consumer behaviour of al-ijarah muntahia biltamleek home financing. Originality/value This study expands the applicability of the ITCB to include al-ijarah muntahia biltamleek home financing.

Moderating and mediating roles of environmental concern and ecotourism experience for revisit intention

2017 ◽  
Vol 29 (7) ◽  
pp. 1854-1872 ◽  
Author(s):  
Yung-Chuan Huang ◽  
Chih-Hsing Sam Liu
Keyword(s):  
Environmental Concern ◽  
Content Type ◽  
Future Studies ◽  
The Public ◽  
Mediating Role ◽  
Revisit Intention ◽  
Joint Investigation ◽  
Comprehensive Examination ◽  
Practical Implications

Purpose This study aims to provide novel insights via a joint investigation of the mediating role of environmental concern and ecotourism experiences. It further explores environmental concern and image as moderators of the association between tourists’ ecotourism experience and revisit intention. Design/methodology/approach The study used a three-way framework which provided novelty ways of combined moderation-mediation tests on a sample of 474 foreign tourists. Findings Results show that environmental concern and ecotourism experience mediated the relationships between motivation and revisit intention. The moderating test shows that foreign tourists’ revisit intention and ecotourism experience are highest when environmental concern and image are high. Practical implications Results of this study suggest that it may be beneficial to relate resources of tourism’s organization to prepare for potential sustainable requirements and/or to assist tourists to develop positive pro-environment attitudes (such as inspire tourists’ sense of social responsibility to improve environmental quality), which could possibly improve the feelings about the natural environment as serving the public good and may raise concern about environmental protection reasonability for tourists. Originality/value This research is the first comprehensive examination of foreign tourists’ pro-environment attitudes and conducts three-way interaction between tourists’ ecotourism experience, image and environmental concern, which may provide a benchmark for future studies.

Intellectual capital disclosure and corporate market value: does board diversity matter?

2017 ◽  
Vol 7 (3) ◽  
pp. 369-398 ◽  
Author(s):  
Mutalib Anifowose ◽  
Hafiz Majdi Abdul Rashid ◽  
Hairul Azlan Annuar
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Ethnic Composition ◽  
Board Diversity ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this paper is to examine the relationship between IC disclosure and the corporate market value (CMV) of listed firms on the main board of Nigeria Stock Exchange and to test the moderating effect of religious and ethnic composition of board members on the relationship. Design/methodology/approach This study applies the signaling and upper echelons theories in formulating four hypotheses that guide the results analysis. By employing a two-step dynamic system generalized method of moments and controlling for the possible endogeneity effect on the parameters estimated for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of IC disclosure with CMV, namely, cost of capital and market capitalization, and the moderating role of religious and ethnic composition on such association using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall IC disclosure and market capitalization and a negative impact on cost of capital, which are in line with the hypothesized propositions. The moderating effect of board diversity is also confirmed. This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders and the established moderating role of board diversity in IC disclosure-related studies. Practical implications The regulators may consider development of standards on board composition about religious and ethnic composition in order to curb the domination from same group in the board room. Those charged with governance should be concerned with the disclosure of IC information in the financial statements as it has value relevance to the investors, in line with signaling theory. Social implications The ethnic and religious composition of board members is a significant factor within the board room and needs to be given adequate consideration. Originality/value This study is the first to consider IC disclosure across whole sectors in the Nigerian economy and looks upon ethnicity and religious affiliation of boards as moderating variables. The study controls for heteroscedasticity and endogeneity issues by adopting two-step dynamic system generalized method of moments.

Budgeting and monitoring functions of the Tanzanian Parliament

2019 ◽  
Vol 9 (3) ◽  
pp. 386-406
Author(s):  
Tausi Ally Mkasiwa
Keyword(s):  
Comparative Analysis ◽  
Emerging Economies ◽  
Design Methodology ◽  
Document Analysis ◽  
Content Type ◽  
Future Studies ◽  
Budget Committee ◽  
Research Findings ◽  
Practical Implications

Purpose The purpose of this paper is to explore the role of budgeting in the monitoring functions of the Tanzanian Parliament, specifically the monitoring functions of the Parliamentary Budget Committee (PBC). Design/methodology/approach The paper uses Burchell et al.’s (1980) accounting “machines” framework and its development as a theoretical lens to interpret the research findings. Interviews, document analysis and observation were used for data collection. Findings The findings reveal that budget documents were used as learning and answering machines, as they served as the basis for questioning, for checking variances, for reviewing and for conducting monitoring visits. Budgeting procedures were utilized as ammunition machines, as they were used as the basis for expressing legislative officials’ positions and understanding the logic of executive officials’ actions. Research limitations/implications The paper investigates the role of budgeting in a parliamentary setting. However, comparative analysis is missing. Nevertheless, the results provide a foundation for future studies and the opportunity to investigate the role of budgeting in the monitoring functions of other parliaments, especially in emerging economies. Practical implications The study has practical implications directed toward governments, especially in emerging economies. This study suggests that budgeting documents and procedures can be used to overcome the complexities of the PBC monitoring functions. Budgeting is, therefore, essential in the monitoring functions of the PBC, especially in emerging economies. Originality/value The study contributes to the understanding of the role of budgeting in monitoring functions in a parliamentary setting in emerging economies, where such research is lacking. The study also contributes by introducing an “ammunition” role to the theoretical literature on budget use (Simons, 1990, 1991; Abernethy and Brownell, 1999), which is argued to be relevant to politicians and organizations of a political nature, including parliaments.

A “Learning from Action” workshop in Japan

2019 ◽  
Vol 40 (2) ◽  
pp. 77-83
Author(s):  
Robert Douglas Hinshelwood ◽  
Luca Mingarelli ◽  
Simona Masnata
Keyword(s):  
Far East ◽  
Opportunity To Learn ◽  
Content Type ◽  
Work Activities ◽  
Defensive Role ◽  
Feedback Data ◽  
Experiential Workshop ◽  
First Time ◽  
Practical Implications

Purpose Many people in severe mentally disturbed states do not use language or other symbolic media well or coherently. Therefore, the non-verbal medium needs to be understood by workers with such people. The “Learning from Action” experiential workshop was developed in order to provide an opportunity to learn about hidden messages in the relationships and roles occurring in activities. In August 2017, a workshop was run for the first time in Japan. The purpose of this paper is to report the experience and dynamics observed by the three consultants, who are here the authors of this paper. Design/methodology/approach After the workshop all the staff and members, including interpreters, were invited to give feedback. Findings Analysis of the feedback data showed certain important dynamics, concerning especially dependence, cultural defences and the defensive role of activity in a multicultural context. Research limitations/implications This is an initial experience to be followed up by later feedback and further workshops. Practical implications Workers awareness of non-verbal communication within the roles of work activities is a training possibility. It faces various resistances including the mental health assumptions of meaninglessness of any communication outside the verbal. Originality/value This is a method of training not widely used even in European countries, and is the first in a country in the far east.

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