scholarly journals Effects of financial distress and financing constraints on trade credit provisions

2020 ◽  
Vol 28 (4) ◽  
pp. 545-566
Author(s):  
Igbekele Sunday Osinubi
Keyword(s):  
Financial Distress ◽  
Financial Constraints ◽  
Trade Credit ◽  
Financing Constraints ◽  
Financial Constraint ◽  
Significant Positive Effect ◽  
Content Type ◽  
Negative Effect ◽  
The Uk ◽  
Positive Effect

PurposeExisting studies that documented the effect of financial distress on trade credit provisions did not include measures financial constraint. It is possible that financial distress is tie to financial constraints, and both financial distress and financial constraints mutually reinforce each other in their effects on trade credit provision. The purpose of this study is to evaluate the effects of financial constraint and financial distress on trade credit provisions in the UK FTSE 350 listed firms.Design/methodology/approachThis study employs panel data in the estimation of the determinants of accounts payables and accounts receivables of the UK FTSE 350 firms from 2009 to 2017.FindingsThis study finds that financial distress has significant positive effect on accounts payables and a significant negative effect on accounts receivables. Financial constraints have significant negative effect on accounts payables and a significant positive effect on accounts receivables.Practical implicationsTrade creditor desiring to maintain an enduring product-market relationship grant more concessions to customer in financial distress. The amount of trade credit that sellers provide to financially constrained firm is an increasing function of the buyer's creditworthiness. The urgent cash needs of financially distressed firms lead them to sell trade receivables to factoring company leading to reduction in trade receivables. Firm facing external financing constraints increase trade credit to customers in anticipation of cash flow inflow to enhance liquidity.Originality/valueThis study shows that financial distress and financial constraints mutually reinforce each other in their effects on trade credit provisions, and firm's financing condition contributes to divergence in trade credit policies.

Content strategies and audience response on Facebook brand pages

2015 ◽  
Vol 33 (6) ◽  
pp. 927-943 ◽  
Author(s):  
Wondwesen Tafesse
Keyword(s):  
Explanatory Power ◽  
Audience Response ◽  
Significant Positive Effect ◽  
Final Model ◽  
Content Type ◽  
Negative Effect ◽  
Content Strategy ◽  
The Uk ◽  
Positive Effect ◽  
Brand Consistency

Purpose – The purpose of this paper is to analyse Facebook brand posts along dimensions of vividness, interactivity, novelty, brand consistency and content type and tests how these characteristics influence audience response in terms of liking and sharing brand posts. Design/methodology/approach – The sample comprised 191 brand posts sourced from the Facebook brand pages of five top selling automotive brands in the UK. Audience response was operationalised using brand post likes and brand post shares, while brand post characteristics were operationalised according to relevant theory. Poisson regression models were tested to measure the effect of brand post characteristics on audience response. Findings – The findings indicate that brand post vividness has a significant positive effect on brand post shares, but not on brand post likes. Brand post interactivity has a significant negative effect on both brand post likes and brand post shares. Brand post novelty and brand post consistency have a significant positive effect on both brand post likes and brand post shares. Finally, brand post content type has a significant positive effect on brand post likes, but not brand post shares. Practical implications – The findings underscore the need for marketers to develop a systematic content strategy for Facebook brand pages. With this in mind, the study proposes several evidence based suggestions. Originality/value – This study contributes to the literature first by synthesising and testing brand post characteristics that were overlooked in prior research and second by developing theoretically consistent operationalisation for already familiar brand post characteristics. These enhancements resulted in a final model with a superior explanatory power.

Financial constraints and marketing investment: evidence from text analysis

2020 ◽  
Vol 54 (3) ◽  
pp. 525-545 ◽  
Author(s):  
Sagarika Mishra ◽  
Mike T. Ewing
Keyword(s):  
Financial Constraints ◽  
Ordinary Least Squares ◽  
Mediating Effect ◽  
Financial Constraint ◽  
Content Type ◽  
Specific Analysis ◽  
Intangible Investments ◽  
Negative Effect ◽  
Brand Capital ◽  
Intangible Investment

Purpose The purpose of this study to examine the effect of financial constraint on intangible investment because intangible investment provides an overall picture of marketing investment and activity. Intangible investment also plays a significant role in facilitating future sales. Using a new measure of intangible investment (Peters and Taylor, 2017), the authors first establish that intangible investment is positively related with future sales. Then, using a new text-based measure of financial constraint, the authors show that financial constraint has a significant negative effect on future intangible investments after controlling for other factors. Intangible investment has three components. The first is R&D, the second is 30 per cent of selling and general administrative expense (SGA) and the third is other intangibles. The authors find that the negative and significant effect of financial constraint on 30 per cent SGA is stronger. This indicates that financially constrained firms reduce marketing related investments. The authors then considered firm size and found that smaller firms facing financial constraint continue to increase their intangible investments, whereas larger firms reduce their intangible investment. As a robustness test, the authors use advertising expenditure as a measure of promotion related investment and find that financial constraint has a negative effect on advertising spending. The authors then use two traditional measures of financial constraint in their analysis to compare with the new text-based measure. Design/methodology/approach The authors use ordinary least squares with cluster robust standard error to conduct their empirical analysis. Findings First the authors establish that intangible investment positively affects future sales. Further the authors find that financial constraint negatively affects intangible investment. Moreover, financial constraint negatively affects the brand capital of intangible investment. Research limitations/implications The authors did not conduct any industry specific analysis to see how financial constraints affect intangible investment across different industries. Industry specific analysis is important because in some industries/sectors intangibles are clearly more important than in others, so this is an important avenue for future research. It will also be interesting to explore if and how financial constraint has a mediating effect on sales growth via intangible investment and different components of intangibles. Practical implications This study identifies another important factor that can negatively affect brand capital investment. Originality/value The authors have used a measure of financial constraint and text mined all the annual reports of US firms for the period of 1994-2016 to compute this measure.

The effect of consumer-based brand authenticity on customer satisfaction and brand loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adem Uysal ◽  
Abdullah Okumuş
Keyword(s):  
Customer Satisfaction ◽  
Brand Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Content Type ◽  
Brand Authenticity ◽  
Negative Effect ◽  
The Difference ◽  
Positive Effect

PurposeThe purpose of this study was to determine the effect of consumer-based brand authenticity (CBBA) on customer satisfaction (CS) and brand loyalty (BL). The moderating effect of the variable “alternative attractiveness” in the relationship between CS and BL was further investigated. The study compared and analyzed the difference between global sportswear brands and domestic ones and the difference between global chocolate brands and domestic ones in terms of CBBA, CS, BL and attractiveness of alternatives (AA).Design/methodology/approachStructural equation modeling and multigroup analysis were conducted in order to analyze the data collected from 600 consumers via face-to-face survey.FindingsThe results showed that quality commitment and heritage-sincerity, which are subdimensions of CBBA, had a significant positive effect on CS. Additionally, both of them affected CS differently in the comparison of the global brands with the domestic ones. Furthermore, CS had a significant positive effect on BL, and AA had a negative effect on BL.Originality/valueThis study deepens the insights into the effects of antecedents of CBBA on CS and BL, enhancing the research with quantitative analysis through two different product groups. The study provides important cues on which antecedents of CBBA help to strengthen the authenticity of brands of Turkish and global origin, and also differs in that it examines to what extent the effect of CBBA on CS and BL varies across global and domestic brands.

More or less? The effects of financial constraints on variety-seeking behavior

2020 ◽  
Vol 3 (2) ◽  
pp. 195-205
Author(s):  
Yafeng Fan ◽  
Jing Jiang ◽  
Zuohao Hu
Keyword(s):  
Financial Constraints ◽  
Financial Constraint ◽  
Positive Illusion ◽  
Product Lines ◽  
Variety Seeking ◽  
Content Type ◽  
Literature Reviews ◽  
Seeking Behavior ◽  
Negative Effect ◽  
The Relationship

PurposeIn daily life, consumers usually experience economic limitations on their consumption, which in turn results in experiencing financial constraints. The purpose of this article is to examine how feeling financially constrained influences variety seeking in consumption.Design/methodology/approachThe authors conducted three experiments to test the proposed hypotheses by applying multiple methods of manipulation of financial constraints and different measures of variety seeking.FindingsThe authors found that feeling financially constrained increases consumers’ insecurity, which in turn decreases their variety-seeking behavior. Additionally, the authors noted that individuals’ positive illusion could moderate the aforementioned effect. The negative effect of financial constraints on variety seeking only existed among consumers with a low positive illusion.Practical implicationsThe findings in this article could help marketers attain a better understanding of consumers’ choices under financial constraints and could help retailers optimize their product lines and distribution.Originality/valueThis research marks the first attempt to examine the relationship between financial constraint and variety seeking. The findings make for a valuable addition to both the financial constraint and variety-seeking literature reviews. The research study also extends the literature on how insecurity and positive illusion influence individuals’ decisions in the consumption context.

scholarly journals PENGARUH LIKUIDITAS, LEVERAGE, DAN KEPEMILIKAN INSTITUSIONAL TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN PROPERTY DAN REAL ESTATE

2019 ◽  
Vol 8 (5) ◽  
pp. 3110
Author(s):  
Ni Made Inten Septiani ◽  
I Made Dana
Keyword(s):  
Logistic Regression ◽  
Real Estate ◽  
Financial Distress ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Significant Positive Effect ◽  
Current Ratio ◽  
Negative Effect ◽  
Positive Effect

This study aims to determine the effect of liquidity, leverage, and institutional ownership in predicting financial distress conditions in property and real estate companies on the Indonesia Stock Exchange (IDX) for the period 2013-2017. The sampling technique used was purposive sampling with a number of selected samples of 36 companies. The number of samples used was as many as 6 companies in the category of experiencing financial distress and 30 companies in the category did not experience financial distress. The results of the study using logistic regression show that liquidity measured by the current ratio has a significant positive effect on financial distress. Leverage as measured by the debt to asset ratio (DAR) and institutional ownership has a significant negative effect on financial distress. Overall, the accuracy of the classification in this regression model in the grouping of property and real estate sub-sector companies that experienced financial distress and companies that did not experience financial distress was 87.2%. Keywords: financial distress, liquidity, leverage, institutional ownership  

Estimasi Pengaruh Faktor Internal Bank dan Stabilitas Makroekonomi terhadap Profitabilitas dengan Mediasi Rasio Pembiayaan Bermasalah di PT Bank Muamalat Indonesia

2020 ◽  
Vol 3 (2) ◽  
pp. 93-108
Author(s):  
Annisa Siti Fathonah ◽  
Dadang Hermawan
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Significant Positive Effect ◽  
Return On Assets ◽  
Internal Factors ◽  
Macroeconomic Factors ◽  
Operating Income ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Positive Effect

This study aims to determine and analyze how much influence the bank's internal factors such as Equity, Operational Costs per Operating Income (BOPO), Financing Deposit to Ratio (FDR), Non Performing Financing (NPF) as a mediator and external or macroeconomic factors namely inflation and Gross Domestic Product (GDP) on profitability represented by Return on Assets (ROA) at Bank Muamalat Indonesia for the period 2008-2018. The data used in this research are secondary data obtained from the publication of quarterly financial statements from 2008 to quarter 2 of 2018. The method that used in this research is path analysis with SPSS 20.0 as the analytical tool. The results of the study partially test the hypothesis (t-test), in substructure I shows that the capital variable has a significant negative effect on NPF, BOPO and inflation has a significant positive effect on NPF, FDR and GDP do not significantly influence NPF at Bank Muamalat Indonesia. In substructure II partially, Capital, BOPO, significant negative effect on ROA, FDR and NPF has a significant positive effect on ROA, Inflation and GDP does not significantly influence ROA while simultaneously significantly influencing ROA. Based on the sobel test, capital has a significant effect on ROA through NPF, BOPO has a significant effect on ROA through NPF, FDR has a significant effect on ROA through NPF, Inflation has a significant effect on ROA through NPF, while GDP has no significant effect on ROA through NPF.

Pengaruh Likuiditas, Pertumbuhan Kredit, Efisiensi, dan Kecukupan Modal Terhadap Profitabilitas

2020 ◽  
Vol 1 (1) ◽  
pp. 27-35
Author(s):  
Lia Hendrawati ◽  
Said Djamaludin
Keyword(s):  
Stock Exchange ◽  
Growth Efficiency ◽  
Research Data ◽  
Capital Adequacy ◽  
Annual Data ◽  
Significant Positive Effect ◽  
Credit Growth ◽  
Negative Effect ◽  
Positive Effect ◽  
Observation Period

This study to examine and analyze the effect of liquidity, credit growth, efficiency, and capital adequacy on the Bank’s profitability listed on the IDX partially and simultaneously. The research data are annual data for the 5-year observation period (2009-2013). This research was conducted at 33 banks listed on Indonesia Stock Exchange. Banks Analyzed that met the population criteria were 23 banks. The analytical method used in multiple linier regression. The results showed that liquidity, credit growth, efficiency, and capital adequacy together (simultaneously) significantly influence profitability. Partially,  liquidity has a significant positive effect on profitability, while efficiency has a significant negative effect. Credit growth and capital adequacy have no significant effect on profitability. Liquidity is the variable that has the biggest effect on the Bank’s profitability. 

FAKTOR FAKTOR YANG MEMPENGARUHI PENGUNGKAPAN AKUNTANSI SUMBER DAYA MANUSIA PADA PERBANKAN

Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 61-72
Author(s):  
Rani Eka Diansari ◽  
Sheftyka Rispin
Keyword(s):  
Human Resource ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Significant Positive Effect ◽  
Accounting Disclosure ◽  
Analytical Technique ◽  
Human Resource Accounting ◽  
Negative Effect ◽  
Resource Accounting ◽  
Positive Effect

This study aims to determine the effect of firm size on human resource accounting disclosure, the effect of profitability on human resource accounting disclosure and the effect of company age on human resources accounting disclosure. The population of this study are banking companies listed on the Indonesia Stock Exchange in 2015-2017 with a sample of 120 samples. The sampling technique uses purposive sampling method. The data used is secondery data. Analytical technique used are descriptive statistical analysis, classical assumption test, multiple linear regression, F test, t test and R2 test. The result of the study concluded that 1.) the value of the company sixe was 2,870 and a significance value of 0,005. This proves that the size of company has a significant positive effect on human resource accounting disclosure, 2.) the profitability value is -0,585 and the significance value is 0,560. This proves that profitability has a negative effect not significant on human resource accounting disclosure and 3.) the value of the company age is 1,616 and the significance value is 0,109. This proves that the age company has no significant positive effect on human resource accounting disclosure.  Keywords: company size, profitability, company age, human resource accounting disclosure

scholarly journals Financial constraint, trust, and export performances: firm-level evidence from Africa

2021 ◽  
pp. 1-23
Author(s):  
Maty Konte ◽  
Gideon Ndubuisi
Keyword(s):  
Financial Constraints ◽  
Interpersonal Trust ◽  
Negative Relationship ◽  
Financial Constraint ◽  
African Countries ◽  
Firm Level ◽  
Country Level ◽  
The World Bank ◽  
Negative Effect ◽  
Enterprise Surveys

Abstract Several existing studies have documented a negative relationship between firm financial constraint and export activities but do not attempt to examine factors that could attenuate this relationship in Africa. In this paper, we examine the effect of financial constraint on exports in Africa and explore how the level of trust in countries where firms are located shapes this relationship. We combine the World Bank Enterprise Surveys with different measures of country-level personal and interpersonal trust computed from the Afrobarometer surveys of 19 African countries. Our results show that financial constraints negatively affect export activities. However, this negative effect is attenuated for firms that are located in trust-intensive societies. These findings are robust to different specifications. Interestingly, we find that small and medium-sized enterprises in Africa are more likely to be affected by financial constraints but also more likely to benefit from a higher level of both personal and interpersonal trust, while for larger firms only interpersonal trust matters.

The impact of counterfeit risk management on healthcare supply chain performance: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Falasca ◽  
Scott Dellana ◽  
William J. Rowe ◽  
John F. Kros
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
The United States ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Healthcare Organizations ◽  
Content Type ◽  
Overall Performance ◽  
The Impact ◽  
Positive Effect

PurposeThis study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).Design/methodology/approachIn the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.FindingsHCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.Research limitations/implicationsAll study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.Originality/valueThis study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.

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