Stock price synchronicity and stock price crash risk

2016 ◽  
Vol 6 (3) ◽  
pp. 230-244 ◽  
Author(s):  
Yonghong Jin ◽  
Mengya Yan ◽  
Yuqin Xi ◽  
Chunmei Liu
Keyword(s):  
Stock Price ◽  
Risk Index ◽  
Mediating Effect ◽  
Crash Risk ◽  
Security Market ◽  
Herding Behavior ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
Mediating Role ◽  
First Time

Purpose – The purpose of this paper is to empirically analyze the effects of stock price synchronicity and herding behavior of qualified foreign institutional investors (QFII) on stock price crash risk, especially the mediating effect of herding behavior of QFII on the relation of stock price synchronicity and stock price crash risk. Design/methodology/approach – Taking China’s A-share listed companies from 2005 to 2014 and QFII holding shares data as the research sample, this study calculates herding effect index, sock price synchronicity index and stock price crash risk index, and perform linear regression. Findings – This study concludes that, either herding behavior of QFII or the stock price synchronicity can increase the stock price crash risk. Further study reveals that, the herding behavior of QFII also improves the effect of stock price synchronicity on stock price crash risk. Namely, herding behavior of QFII acts as the mediating role between stock price synchronicity and stock price crash risk. Originality/value – This study empirically analyzes and verifies the mediating roles of herding behavior of QFII in affecting the relation of sock price synchronicity and stock price crash risk for the first time. The findings of this study contribute to the study of the role of QFII in stabilizing Chinese security market.

Political connections and stock price crash risk

2018 ◽  
Vol 8 (2) ◽  
pp. 140-157 ◽  
Author(s):  
Guoliu Hu ◽  
Yu Wang
Keyword(s):  
Local Governments ◽  
Stock Price ◽  
Political Connections ◽  
Crash Risk ◽  
Corporate Disclosure ◽  
Senior Executives ◽  
Content Type ◽  
The Impact ◽  
First Time ◽  
The Relationship

Purpose The purpose of this paper is to research the impact of firms’ political connections on the stock price crash risk. Design/methodology/approach Empirical methodology is used in this study. Findings Using a large sample of Chinese firms for the period 2008-2013, the authors find that corporate political connections can reduce the stock price crash risk. When managers are still in politics or firms are in high financial transparency of local governments, the relationship between political connections and the stock price crash risk is weakened. In addition, the authors’ research shows that the corporate political connections influence the stock price crash risk by affecting the speed of confirmation of bad news. Research limitations/implications The findings in this study suggest that political connections will affect corporate disclosure. Practical implications These results can help senior executives and investors make better decisions to prevent the stock price crash risk. Originality/value This paper empirically analyzes the impact of different types of political connections on the stock price crash risk for the first time.

Big data analytics capabilities and organizational performance: the mediating effect of dual innovations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaofeng Su ◽  
Weipeng Zeng ◽  
Manhua Zheng ◽  
Xiaoli Jiang ◽  
Wenhe Lin ◽  
...  
Keyword(s):  
Big Data ◽  
Organizational Performance ◽  
Empirical Analysis ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Mediating Effect ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeFollowing the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of companies make investments in big data. Academics and practitioners have been considering the mechanism through which big data analytics capabilities can transform into their improved organizational performance. This paper aims to examine how big data analytics capabilities influence organizational performance through the mediating role of dual innovations.Design/methodology/approachDrawing on the resource-based view and recent literature on big data analytics, this paper aims to examine the direct effects of big data analytics capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. The study extends existing research by making a distinction of BDACs' effect on their outcomes and proposing that BDACs help organizations to generate insights that can help strengthen their dual innovations, which in turn have a positive impact on organizational performance. To test our proposed research model, this study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.FindingsThe results support the proposed hypotheses regarding the direct and indirect effect that BDACs have on organizational performance. Specifically, this paper finds that dual innovations positively mediate BDACs' effect on organizational performance.Originality/valueThe conclusions on the relationship between big data analytics capabilities and organizational performance in previous research are controversial due to lack of theoretical foundation and empirical testing. This study resolves the issue by provides empirical analysis, which makes the research conclusions more scientific and credible. In addition, previous literature mainly focused on BDACs' direct impact on organizational performance without making a distinction of BDAC's three dimensions. This study contributes to the literature by thoroughly introducing the notions of BDAC's three core constituents and fully analyzing their relationships with organizational performance. What's more, empirical research on the mechanism of big data analytics' influence on organizational performance is still at a rudimentary stage. The authors address this critical gap by exploring the mediation of dual innovations in the relationship through survey-based research. The research conclusions of this paper provide new perspective for understanding the impact of big data analytics capabilities on organizational performance, and enrich the theoretical research connotation of big data analysis capabilities and dual innovation behavior.

Self-other agreement on transformational leadership and subordinates’ assessment of supervisor’s performance

2018 ◽  
Vol 39 (2) ◽  
pp. 291-308 ◽  
Author(s):  
Alper Ertürk ◽  
Herman Van den Broeck ◽  
Jasmijn Verbrigghe
Keyword(s):  
Transformational Leadership ◽  
Social Exchange ◽  
Mediating Effect ◽  
Response Analysis ◽  
Leader Member Exchange ◽  
Content Type ◽  
Mediating Role ◽  
Idealized Influence ◽  
Individual Support ◽  
Member Exchange

Purpose Given the importance of the extent to which supervisors and their subordinates agree in their assessment of supervisors’ leadership, the purpose of this paper is to investigate the possible relationship between self-other agreement on supervisors’ transformational leadership and subordinates’ perceptions of supervisors’ in-role and extra-role performance, through the mediating role of leader-member exchange. Design/methodology/approach Self-other agreement was conceptualized as the degree of congruence between supervisors’ self-assessment and subordinates’ assessment of supervisors’ transformational leadership. Data were collected from 36 supervisors and 189 of their subordinates. Cross-level polynomial regressions and surface response analysis were used to analyze the hypothesized relationships. Findings Statistical analyses revealed that self-other agreement on idealized influence and individual support are positively associated with subordinates’ perception of leader-member exchange, and in turn leader member fully mediates the relationship between self-other agreement and subordinates’ perceptions regarding their supervisors’ performance. Results from polynomial analyses indicate that subordinates’ ratings of leader-member exchange would be highest for underestimator, second for in-agreement/good supervisors, third for in-agreement/poor and lowest for overestimator supervisors both for the idealized influence and individual support. Originality/value This is one of the pioneer studies investigating the potential relationship between self-other agreement on supervisors’ transformational leadership and the subordinates’ perceptions on their supervisors’ performance through social exchange. Since researchers have paid scant attention to intervening mechanisms, this study aims to extend previous research in the literature by investigating those associations through the mediating effect of leader-member exchange.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

The link between interpersonal conflict and knowledge hiding: mediated by relatedness need frustration, moderated by narcissistic rivalry

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dirk De Clercq ◽  
Tasneem Fatima ◽  
Sadia Jahanzeb
Keyword(s):  
Interpersonal Conflict ◽  
Negative Relationship ◽  
Mediating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Hard Time ◽  
Need Frustration ◽  
Time Lagged ◽  
Hiding Behavior ◽  
Knowledge Hiding

Purpose The purpose of this study is to investigate the relationship between employees’ experience of interpersonal conflict and their engagement in knowledge hiding, according to a mediating effect of their relatedness need frustration and a moderating effect of their narcissistic rivalry. Design/methodology/approach The tests of the hypotheses rely on three-wave, time-lagged data collected among employees in Pakistan. Findings A critical reason that emotion-based fights stimulate people to conceal valuable knowledge from their coworkers is that these employees believe their needs for belongingness or relatedness are not being met. This mediating role of relatedness need frustration is particularly salient among employees who are self-centered and see others as rivals, with no right to fight with or give them a hard time. Practical implications The findings indicate how organizations might mitigate the risk that negative relationship dynamics among their employees escalate into dysfunctional knowledge hiding behavior. They should work to hire and retain employees who are benevolent and encourage them to see colleagues as allies instead of rivals. Originality/value This research unpacks the link between interpersonal conflict and knowledge hiding by explicating the unexplored roles of two critical factors (relatedness need frustration and narcissistic rivalry) in this relationship.

Does negative information in MD&A can reduce stock crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Practical Significance ◽  
Crash Risk ◽  
Content Type ◽  
The Impact

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.

The more envious the consumer, the more impulsive? The moderating role of self-monitoring and product type

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinsheng Cui ◽  
Mengwei Zhang ◽  
Chaonan Yin ◽  
Li Li ◽  
Jianan Zhong
Keyword(s):  
Social Comparison ◽  
Product Type ◽  
Moderating Effect ◽  
Mediating Effect ◽  
Comparison Theory ◽  
Self Monitoring ◽  
Content Type ◽  
Mediating Role ◽  
Underlying Mechanisms

Purpose This paper aimed to explore the influence of envy on impulsive consumption from aspects of the internal psychological mechanism and boundary conditions.Design/methodology/approach Based on social comparison theory, four studies were conducted in this research: The first study explored the effect of envy on impulsive consumption; the second study explored the moderating effect of self-monitoring and the mediating effect of materialism; the third study explored the moderating effect of product type and the fourth study explored the effectiveness of social comparison contexts on the arousal of envy.Findings Study 1 showed that envy could significantly trigger consumers' impulsive consumption. Study 2 indicated that participants experiencing self-monitoring had a higher level of materialism and a stronger propensity to consume impulsively once the emotion of envy emerged. Study 3 suggested that when participants were more envious, their levels of materialism increased with more impulsivity to buy material products. Study 4 revealed that upward comparisons led to a higher level of envy and re-validated the mediating role of materialism between envy and impulsive consumption.Research limitations/implications This study provides evidence for the association between envy and consumer behaviour and clarifies the underlying mechanisms of the relationship between envy and impulsive consumption.Practical implications Marketers could take advantage of consumers' envy after social comparisons without damaging brand image.Originality/value First, this study extended the effects of envy on consumer decisions, suggesting that envy stimulates impulsive consumption by increasing consumers' materialism. Second, this study revealed the boundary condition of product type, namely, material and experiential.

Abnormally long audit report lags and future stock price crash risk: evidence from China

2019 ◽  
Vol 15 (4) ◽  
pp. 611-635
Author(s):  
Ahsan Habib ◽  
Hedy Jiaying Huang
Keyword(s):  
Internal Control ◽  
Stock Price ◽  
Large Scale ◽  
Crash Risk ◽  
Research Database ◽  
Audit Report ◽  
Content Type ◽  
Audit Opinion ◽  
Listed Firms ◽  
International Investors

PurposeAlthough a substantial body of literature investigates the determinants of audit report lag (ARL), scant empirical evidence exists on the consequences of ARL. The purpose of this paper is to examine the association between abnormally long ARL and future stock price crash risk.Design/methodology/approachThis quantitative study employed a large scale (14,445 firm-year observations) of annual financials, audit and ownership information for the Chinese listed companies during 2002–2013 which were retrieved from the China Stock Market and Accounting Research database.FindingsThis study finds evidence that abnormally long ARL increases the risk of a future stock price crash. Furthermore, the study finds that this adverse consequence is more pronounced for firms with a poor internal control environment.Practical implicationsRecently literature started to explore the consequences of abnormal ARL such as going concern audit opinion and restatements in the subsequent periods. This paper reveals that abnormal ARL has consequences for investor wealth losses as well. This is relevant in China, where the ongoing economic growth has attracted, and will continue to attract, a growing body of domestic and international investors. Understanding what factors could expose investors to wealth losses is of paramount importance for allocating their scarce capital.Originality/valueThis study extends the scant literature on the consequences of ARL, and provides useful insights for the Chinese regulatory authorities when considering the appropriateness of the current filing deadline for listed firms.

Frontline employees’ engagement and business performance: the mediating role of customer-oriented behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Mediating Effect ◽  
Business Trend ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.

Upward social comparison and Facebook users’ grandiosity

2019 ◽  
Vol 43 (4) ◽  
pp. 635-652 ◽  
Author(s):  
Myungsuh Lim ◽  
Yoon Yang
Keyword(s):  
Social Comparison ◽  
Causal Relationship ◽  
Well Being ◽  
Mediating Effect ◽  
Subjective Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Upward Comparison ◽  
Upward Social Comparison ◽  
Practical Implications

Purpose The purpose of this paper is to confirm the causal relationship, in an upward social comparison, of envy, loneliness and subjective well-being (SWB). Particularly, the authors address the mediating roles, each, of benign envy (BE) and malicious envy (ME) as different types of envy. In addition, the authors explore the grandiosity of users, in terms of narcissistic personalities, and whether it has discriminatory impacts on this causal relationship. Design/methodology/approach The authors re-enacted a situation that users confront on Facebook as a quasi-experiment to determine if there is an effectual relationship among variables in the path of upward comparison, envy, loneliness and SWB. First, the authors divided envy into BE and ME to examine its mediating role in the path of upward comparison and loneliness. Second, the authors examined the differentiated effects of both kinds of envy and loneliness on SWB. Finally, the authors determined if users’ grandiose, narcissistic behaviour has moderating effects on the path of each variable. Findings The results revealed that upward comparison has a positive effect on both kinds of envy; however, in the path of loneliness, only ME operated and played a mediating role. Furthermore, grandiosity had a partially significant moderating effect. Research limitations/implications This study has the following theoretical implications. The mediating effect of envy was identified in the path of upward comparison, loneliness and SWB. Research limitation is as follows: this study could not effectively reflect individual differences. It is necessary to include individual difference variables in later research, including characteristics of social comparison. Practical implications This study has the following practical implications. Social comparison on Facebook poses a more serious problem than it does offline; therefore, users need to protect their own SWB. If users can actively cope with the information of others and selectively choose their upward comparison targets, they can reduce their loneliness and improve their SWB as expected in the hypotheses. Social implications The “unfriending” events that occur on Facebook may be explained by the mediating phenomenon of ME. The research showed that the excessive narcissism of users on Facebook is an inconsistent information with real selves of users, thus triggering the ME, which causes avoidance from other Facebook users. Originality/value The authors have proven that social comparison and envy emotion are the causes of the loneliness, while the authors are on Facebook. Especially, the mediation role of BE and ME are discussed in a distinguished manner. Also, the authors confirmed that the influence of narcissism could further aggravate the problem of loneliness. Finally, the authors found that the variables of the study also affect the SWB of the Facebook user.

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