Why buy new, when used will do?

2019 ◽  
Vol 9 (3) ◽  
pp. 1-10
Author(s):  
Michael Robert Nicholson
Keyword(s):  
Undergraduate Students ◽  
Small Businesses ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Equity Capital ◽  
Company Performance ◽  
Content Type ◽  
Academic Level ◽  
Trade Offs ◽  
The Impact

Learning outcomes Students are exposed to debt and equity financing; analysis of company affairs using selected financial statement information; use of ratios in financial analysis; the impact of adequate financing on company performance; and trade-offs companies must make in their day-to-day operations. Case overview/synopsis Jetcon Corporation’s business model involved the importation of pre-owned cars from Japan for re-sale in Jamaica. It was a fiercely competitive business as there were over 100 companies involved in this sector. There was also a vibrant new-car sector. Jetcon focused on importing mid to low price Japanese pre-owned models, which were already common on Jamaican roads, and which would be affordable to the larger segment of buyers. Like most small businesses, it experienced difficulty raising financing in the amounts and cost that is required and this contributed to its decision to raise equity capital through an initial public offer. It was the first used-car dealer to list on the Jamaica Stock Exchange. Complexity academic level This case is suitable for final-year undergraduate students in finance. By that time they should already have been exposed to debt, equity and stock markets. It helps students to explore some of the issues involved in financing a company’s operations. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

“F*ck off Google”: protest against Google Campus Berlin

2019 ◽  
Vol 15 (6) ◽  
pp. 669-688
Author(s):  
Martin Paul Fritze ◽  
Gertraud Maria Gänser-Stickler ◽  
Sarah Türk ◽  
Yingshuai Zhao
Keyword(s):  
Public Relations ◽  
Strategic Management ◽  
Undergraduate Students ◽  
Consumer Research ◽  
Business Strategy ◽  
Stakeholder Analysis ◽  
Psychological Ownership ◽  
Content Type ◽  
Academic Level ◽  
Trade Offs

Theoretical basis This case applies a stakeholder analysis to examine the trade-offs between the firm’s strategy and the interests of different stakeholder groups. A PESTEL analysis supports an evaluation of the firm’s situation. Consumer behavior theories on psychological ownership and territoriality offer a framework for analyzing the conflicts that arise from the inhabitants’ protests. Research methodology This case relies on secondary sources, including news reports, social media sites and company websites. This case has been classroom tested with undergraduate students in a strategic management course in January 2019 at the University of Cologne, Germany. Case overview/synopsis In November 2016, Google announced its intentions to rent a building in the Kreuzberg district of Berlin to open a Google Campus, a business incubator for tech start-ups that would offer entrepreneurs support, workshops and access to networks. Following the announcement, dissatisfied local communities organized protests, in which leaders complained that “It is extremely violent and arrogant of this mega-corporation, whose business model is based on mass surveillance and which speculates like crazy, to set up shop here” (Business Times, 2018). Berlin’s Government supported the Google Campus plan; inhabitants rejected it with fierce and persistent protests. In face of this challenge, was it still possible for Google to continue its plans in Berlin? Complexity academic level This case qualifies for use in strategic management classes at undergraduate and MBA levels. Its focus aligns well with stakeholder analyses, PESTEL analyses and business strategy. In addition, for courses on organizational communications or public relations, this case provides a way to explore the relationship between Google and its stakeholders, especially protesters, in detail. Moreover, this case is well suited for consumer research and public policy courses (e.g., transformative consumer research) centered on discussions of territoriality.

Does intellectual capital have any influence on stock price crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Adelia Dyaning Pratiwi ◽  
Mahameru Rosy Rochmatullah
Keyword(s):  
Intellectual Capital ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Price Volatility ◽  
Crash Risk ◽  
Company Performance ◽  
Content Type ◽  
The Impact

PurposeThis paper explores the influence between intellectual capital (IC) and the risk of stock price crashes by using company performance as an intervening variable.Design/methodology/approachThis study empirically analyzes the impact of the efficiency of IC on stock price crash risk using a sample size of 152 companies listed on the Indonesia Stock Exchange (IDX) during 2018. To test the research hypotheses, regression analysis and path analysis were applied. In addition, the researchers added exploration to several studies to strengthen the results of this study.FindingsThis study’s findings indicate that investors' optimistic (pessimistic) sentiment regarding stock price volatility has obscured aspects of the financial performance of listed companies. This finding implies that investor sentiment has dominated influence on stock price crash risk so that the aspects of IC are obscured.Originality/valueThis research provides new information that IC disclosure in the stock market needs to include knowledge of the volatility of stock prices in order to reveal stock price crash risk.

Vegoganic AB: the dilemma of arsenic in rice products

2019 ◽  
Vol 9 (2) ◽  
pp. 1-25
Author(s):  
Julia P. Rotter ◽  
Cecilia M. Mark-Herbert
Keyword(s):  
Learning Outcomes ◽  
Undergraduate Students ◽  
Content Type ◽  
Teaching Case ◽  
Business Context ◽  
The Core ◽  
Societal Values ◽  
Academic Level ◽  
Trade Offs ◽  
The World

Learning outcomes This teaching case aims to stimulate the debate over the issue of arsenic in rice and prepares students to make a decision by evaluating trade-offs and aligning moral values in a business context. Case overview/synopsis Rice feeds people in many parts of the world. This teaching case focuses on an entrepreneurial food producer who has strong sustainability values built into his business model. The CEO, Johan Henriksson, of Vegoganic faces a dilemma when a press release by the Swedish National Food Agency potentially threatens the core existence of the business. It challenges the CEO to take a stand on food safety and food security, as well as personal and societal values. Complexity academic level It is a discussion case, developed with undergraduate students in mind, but could be taken to a graduate level by including more advanced literature and questions. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 8: Marketing

Cash: never leave home with it?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emma Marie Fleck ◽  
Michael E. Ozlanski
Keyword(s):  
Control Systems ◽  
Financial Reporting ◽  
Small Businesses ◽  
Credit Card ◽  
Secondary Data ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Academic Level ◽  
The Impact

Theoretical basis The learning objectives aim to provide an understanding of the changing nature of consumer payments and the impact upon both businesses and consumers. This can be achieved by examining the case through the lens of stakeholder theory, which posits that businesses are “responsible … to ‘those groups and individuals who can affect or be affected by their actions.’” Collectively, those groups and individuals are known as stakeholders and they commonly include “customers, employees, suppliers, communities and financiers.” In addition to creating value for the owners, businesses should also consider how they can create value for each of their other stakeholders (Freeman et al., 2010, p. 9). In addition, consistent with the theory of management control systems (Chenhall, 2003), the automatic processing of cashless transactions enables businesses to more efficiently record their earnings, commission payments (if applicable) and monitor cash collections. As all data are captured in an electronic format, they can easily understand their sales and profitability through user-friendly and visually appealing dashboards. This, in turn, enables them to obtain a more accurate and timely view of their business and they can appropriately adjust their operations and strategy as a result of this information. Finally, cashless payments enable more accurate and efficient reporting of information to taxing authorities, which decreases the possibility that the affected parties would underreport income and underpay taxes. This is similarly consistent with the theory of management control systems (Chenhall, 2003) because the improved systems of financial reporting assure compliance with tax laws and regulations. Research methodology This case was developed using both primary and secondary data sources. The authors interviewed the participants in London and the secondary data collection used relevant sources from appropriate literature and the popular press. Case overview/synopsis In London, consumer transactions were as plentiful as the eight million people who lived there. While cash was considered “king” in retail, cash payments dropped by 15% across the UK in 2017, and debit and credit cards became the predominant payment method (Kollewe, 2018). Cash represented only 40% of customer payments and was expected to drop to 21% by 2026 (Lyons et al., 2018). This was likely driven by contactless payments whereby consumers preferred the speed and ease of being able to “tap and go.” As businesses were charged fees to accept credit card payments, many expected that small businesses would insist on cash for small transactions. Instead, some banished cash completely. Insights from two London businesses helped explain why some were dropping cash and completely embracing cards. Complexity academic level This case can be used in a variety of undergraduate level courses to discuss trends in customer payment methods and the decisions of some businesses to completely abandon cash. Some example courses and suggested supporting materials include the following: • Consumer behavior • Entrepreneurial finance • Survey of accounting • Introduction to financial accounting.

scholarly journals The impact of the 2012 NZX listing rule change on board composition and company performance

2020 ◽  
Vol 32 (4) ◽  
pp. 543-562
Author(s):  
Glenn Boyle ◽  
Sanghyun Hong ◽  
Michael Foley
Keyword(s):  
Stock Exchange ◽  
Gender Diversity ◽  
Control Group ◽  
Company Performance ◽  
Content Type ◽  
Regulatory Changes ◽  
Rule Change ◽  
Board Representation ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to examine the impact of December 2012, New Zealand (NZ) stock exchange operator listing rule change that introduced compulsory disclosure about gender diversity on NZ boards. Design/methodology/approach A quasi-natural experiment setting with a clearly identifiable exogenous event. Findings The rate of growth in female-held directorships increased significantly after the introduction of the new rule, resulting in, by 2016, the average female board representation being more than double what it had been in 2012. However, this paper finds no relationship between this response and company performance. Research limitations/implications This study cannot attribute causality to the observed jump in female directorships following the 2012 listing rule change due to the absence of a control group of firms not subject to this change. Practical implications The results are consistent with an efficient director appointment process in NZ. Originality/value Low-key regulatory changes can have a significant impact on company behaviour.

The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa

2016 ◽  
Vol 34 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Omokolade Akinsomi ◽  
Katlego Kola ◽  
Thembelihle Ndlovu ◽  
Millicent Motloung
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Economic Empowerment ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.

scholarly journals Evaluating undergraduate research conferences as vehicles for novice researcher development

2016 ◽  
Vol 7 (2) ◽  
pp. 159-177 ◽  
Author(s):  
Pauline Kneale ◽  
Andrew Edwards-Jones ◽  
Helen Walkington ◽  
Jennifer Hill
Keyword(s):  
Undergraduate Students ◽  
Undergraduate Research ◽  
Skills Development ◽  
Learning Context ◽  
Content Type ◽  
Research Conference ◽  
Researcher Development ◽  
Development Framework ◽  
Wide Range ◽  
The Impact

Purpose This paper aims to focus on the undergraduate research conference as its sphere of study and investigate the impact of significance of participation and socialisation in such activities on student attitudes and professional development. Using situated learning to theoretically position the undergraduate research conference as an authentic learning context, connection is also made with the concept of graduate attributes. Design/methodology/approach The Vitae (2014) Researcher Development Framework (RDF) is used to provide a template for charting the experiences and development of undergraduate students as researchers. This can be applied to short-term activities and programmes and to long-term career plans. The insights from 90 undergraduate students participating in three national undergraduate research conferences were obtained through interviews, and thematically analysed to map the students’ skills development against the RDF criteria. Findings Three main aspects of undergraduate research conference participation were considered particularly important by the students: the value of paper presentations, the value of poster presentations and the value of the overall conference experience. Within these themes, participants identified a wide range of skills and attributes they felt they had developed as a result of either preparing for or participating in the conferences. The majority of these skills and attributes could be mapped against the different domains of the RDF, using a public engagement lens for comparing actual with expected developmental areas. Research limitations/implications This research helps undergraduate research conference organisers construct programme content and form it in such a way that students’ skill development can be maximised prior to, and during, the course of an event. Learning developers can also use these findings to help understand the support needs of students preparing to deliver papers at such conferences. So far, little empirical research has examined students’ skills development within the undergraduate research conference arena. Originality/value The outcomes of this study show the diversity of the skills that students developed and the value of the conference format for offering networking practice and enhancing the communication skills which employers value.

Epidemics and Chinese firms' stock returns: is COVID-19 different?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quang Thi Thieu Nguyen ◽  
Dao Le Trang Anh ◽  
Christopher Gan
Keyword(s):  
Stock Returns ◽  
Negative Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Disease Outbreaks ◽  
Stock Exchanges ◽  
Content Type ◽  
Event Study Method ◽  
Economic Shock ◽  
The Impact

PurposeThis study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.Design/methodology/approachThe study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19FindingsEpidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.Research limitations/implicationsThe results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.Originality/valueThe research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

Effect of female executives on Chinese cultural media enterprise efficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Li ◽  
Yung-Ho Chiu ◽  
Tai-Yu Lin ◽  
Hongyi Cen
Keyword(s):  
Boards Of Directors ◽  
Company Performance ◽  
Tobit Regression ◽  
Female Executives ◽  
Two Stage ◽  
Content Type ◽  
Female Directors ◽  
The Impact ◽  
Cultural Media ◽  
Better Than

Purpose As more women are now being appointed to senior and top management positions and invited to sit on boards of directors, they are now directly participating in strategic company decision-making. As female directors have been found to provide new ideas, increase company competitiveness, efficiency and performance and bring a greater number of external resources to a company than male directors, this paper aims to put female directors as a variable into the data envelopment analysis (DEA) and statistical models to explore the effect of female directors on operating performances. The DEA first quantified and measured the company efficiencies, after which the statistical model analyzed the correlations between the variables to specifically identify the impact of female decision makers on the operating efficiencies in state-owned and private enterprises. Design/methodology/approach A novel two-stage, meta-hybrid dynamic DEA was developed to explore Chinese cultural media company efficiencies under optimal input and output resource allocations, after which Tobit Regression was applied to determine the effect of female executives on these efficiencies. Findings From 2012 to 2016, the overall efficiencies in Chinese state-owned cultural media enterprises were better than in the private cultural media enterprises. The overall technology gaps (TGs) in the state-owned cultural media enterprises were better than in the private cultural media enterprises. Originality/value Previous research has tended to focus on the causal relationships between female senior executives and business performances; however, there have been few studies on the relationships between female executives and company performance from an efficiency perspective (optimal resource allocation). This paper, therefore, is the first to develop a novel two-stage, meta-hybrid dynamic DEA to examine Chinese cultural media enterprise efficiencies, and the first to apply Tobit Regression to assess the effect of female executives on those efficiencies.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

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