Too much of a good thing: the non-linear effect of vertical pay dispersion on vice presidents’ voluntary turnover rate

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoguo Xiong ◽  
Weihong Chen ◽  
Xi Zhong
Keyword(s):  
Turnover Rate ◽  
Voluntary Turnover ◽  
Board Governance ◽  
Vice Presidents ◽  
Content Type ◽  
Linear Effect ◽  
Listed Firms ◽  
Non Linear Effect ◽  
Non Linear ◽  
Pay Dispersion

Purpose While the effect of vertical pay dispersion on the voluntary turnover rate of vice presidents (VPs) has received attention, the existing research conclusions are still divided. Therefore, this study aims to explore the relationship between vertical pay dispersion and voluntary turnover rate of VPs in a Chinese context using data from listed firms. Design/methodology/approach Integrating tournament theory and social comparison theory, this study examines the non-linear effect of vertical pay dispersion on VPs’ voluntary turnover rates using empirical data from Chinese A-share listed firms from 2007 to 2016. Findings The results reveal a U-shaped relationship between vertical pay dispersion and the voluntary turnover rate of VPs. After further incorporating the moderating effect of the board governance structure, the effect is found to be enhanced in firms with more efficient board governance (i.e. smaller board size, higher board turnover and higher proportion of outside directors). Further analysis indicates that the aforementioned conclusions mainly exist in non-state-owned enterprises rather than state-owned enterprises. Originality/value The findings deepen the understanding of the costs and benefits associated with vertical pay dispersion, enrich the research findings on pay dispersion and contribute to the integration of previously inconsistent findings.

Corporate social responsibility, trade credit provision and doubtful accounts receivable: the case in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liem Nguyen ◽  
Khuong Nguyen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Trade Credit ◽  
Generalized Method Of Moments ◽  
Agency Cost ◽  
Content Type ◽  
Linear Effect ◽  
Listed Firms ◽  
Non Linear ◽  
Corporate Social

Purpose This study aims to examine the linear and non-linear effects of corporate social responsibility (CSR) engagement on trade receivables of listed firms in China. Furthermore, this paper analyzes whether CSR explains the provision for doubtful trade receivables. Design/methodology/approach The authors use a sample of listed firms in China over the period from 2008 to 2015. System generalized method of moments is used to estimate dynamic panel models. Findings CSR is positively related to trade receivables, in line with previous studies in this field. Nonetheless, the investigation of the non-linear effect of CSR reveals that CSR has an inverted U-shaped relationship with trade receivables. This implies that at low levels, CSR is more likely to be a tool to mitigate risk and/or build a trusting relationship between suppliers and buyers; whereas, at high levels, CSR is more prone to be subject to agency cost. The authors further find that CSR has a U-shaped relationship with the provision for bad trade receivables, which substantiates the above link between CSR and trade receivables. Originality/value Previous studies have extensively examined the link between trade credit extension and firm performance and determinants of trade credit. CSR can be connected to trade receivables in some ways, but very little effort has been exerted in verifying this relationship. In addition, CSR is linearly linked to trade receivables in previous literature, but theoretically, it can be expected to have a non-linear relationship with trade receivables. Furthermore, CSR has not been examined as a determinant of the provision for doubtful trade receivables. The authors aim to void the gaps here by using a sample of listed firms in China.

scholarly journals Working capital and financial performance in MENA region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Osama EL-Ansary ◽  
Heba Al-Gazzar
Keyword(s):  
Financial Performance ◽  
Consumer Goods ◽  
Generalized Method Of Moments ◽  
Working Capital ◽  
Mena Region ◽  
Content Type ◽  
Linear Effect ◽  
Non Linear Effect ◽  
Non Linear ◽  
Consumer Goods Industry

Purpose This paper aims to investigate the possible non-linear effect of net working capital (NWC) level on profitability for Middle East and North Africa (MENA) region listed companies. Furthermore, the study tests the possible interactive effect of cash levels on the relationship between NWC and profitability. Design/methodology/approach NWC level is the independent variable and profitability is the dependent variable using two proxies, return on assets (ROA) and returns on equity (ROE). Control variables are size, leverage, gross domestic product growth and sales revenue growth. The generalized method of moments was used to analyze the data of 134 consumer-goods listed firms in 12 MENA countries for the period 2013–2019. Findings The results demonstrate that NWC levels had a non-linear effect on profitability using ROA as a profitability proxy while results were insignificant using ROE as a profitability proxy. Furthermore, results show the absence of interactive effects between NWC, cash levels and both profitability proxies. Originality/value The study fills a gap in the working capital management (WCM) literature by providing new evidence on WCM’s non-linear effect of corporate performance in the MENA region emerging markets using the consumer-goods industry sample. The study contributes to the financial managers’ working capital optimization efforts in the MENA region by providing evidence on the usefulness of WC optimization efforts in the region from a financial performance point of view. According to the researchers’ knowledge, a few studies attempted to investigate this non-linear relationship for neither MENA region countries nor the consumer-goods industry.

scholarly journals Non-linear effect of different humidity types on scrub typhus occurrence in endemic provinces, Thailand

Heliyon ◽  
2021 ◽  
Vol 7 (2) ◽  
pp. e06095
Author(s):  
Bhophkrit Bhopdhornangkul ◽  
Aronrag Cooper Meeyai ◽  
Waranya Wongwit ◽  
Yanin Limpanont ◽  
Sopon Iamsirithaworn ◽  
...  
Keyword(s):  
Scrub Typhus ◽  
Linear Effect ◽  
Non Linear Effect ◽  
Non Linear

scholarly journals Non-linear effect mitigation for FMCW radar system

2018 ◽  
Author(s):  
Nizar Bouhlel ◽  
Stephane Meric ◽  
Claude Moullec ◽  
Christian Brousseau
Keyword(s):  
Radar System ◽  
Linear Effect ◽  
Fmcw Radar ◽  
Non Linear Effect ◽  
Non Linear

scholarly journals Non-linear effect of sea ice: Spectacled Eider survival declines at both extremes of the ice spectrum

2018 ◽  
Vol 8 (23) ◽  
pp. 11808-11818
Author(s):  
Katherine S. Christie ◽  
Tuula E. Hollmen ◽  
Paul Flint ◽  
David Douglas
Keyword(s):  
Sea Ice ◽  
Linear Effect ◽  
Non Linear Effect ◽  
Non Linear

scholarly journals Foreign Ownership Effect to Stock Market Liquidity in Indonesia

MANAJERIAL ◽  
2021 ◽  
Vol 8 (01) ◽  
pp. 01
Author(s):  
Annisa Yasmin
Keyword(s):  
Stock Market ◽  
Financial Institutions ◽  
Capital Market ◽  
Foreign Ownership ◽  
Market Liquidity ◽  
Linear Effect ◽  
Non Linear Effect ◽  
Non Linear ◽  
Stock Market Liquidity ◽  
Research Period

Background – One of economic indicators of a country is the capital market. Liquid capital market can attract investors, both foreign and domestic investors, to invest their ownership in that country, which in turn can improve the country’s economic growth. Aim – This research aims to examine the influence foreign ownership on stock market liquidity in Indonesia. Design / methodology / approach – This research splits foreign ownership into two groups, the first one is foreign ownership by financial institutions, and the second one is foreign ownership by non-financial corporations. The type of data used is panel data using fixed effect model (FEM). The technique for examining the influence of foreign ownership on liquidity used multiple regression analysis. Findings – The result found that foreign ownership by financial institutions and non-financial corporations negatively affect liquidity.  The study also found a positively non-linear effect between foreign ownership by financial institutions to liquidity and a negatively non-linear effect between foreign ownership by non-financial institutions to liquidity. Research implication – This research can assist investors in determining investment in the Indonesian capital market by pay attention to variables such as foreign ownership, return, turnover, market capitalization and standard deviation. Limitation – The research period was short, which was only 21 months due to limited data and the research period that has passed too long, that is January 2012 to September 2013.

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