Prospect theory: an analysis of corporate actions and priorities in pandemic crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poornima Tapas ◽  
Deepa Pillai
Keyword(s):  
Prospect Theory ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Organizational Growth ◽  
Content Type ◽  
Grounded Theory Research ◽  
Corporate Decisions ◽  
Corporate Actions ◽  
Different Sources

Purpose The purpose of this study is to examine and interpret the findings from different sources on the corporate decisions during COVID-19. Design/methodology/approach The COVID-19 is a new phenomenon; grounded theory research approach is adopted to develop propositions on prospect theory and strategic decisions. The paper examines and interprets the findings from different sources on the corporate decisions during COVID-19. Findings Conventionally, it is believed that innovation brings risks, and individuals preferred certainty over uncertainty, even if the gains under uncertainty were twice as high. But, the results of the study indicate a divergent trend. Under threat perceptions of risks, companies explore significant opportunities and possibilities for organizational growth. Practical implications The study provides a framework to analyze the strategic decisions of corporate enterprises. The decisions replicate value function as concave in a gain situation and convex in a loss realm in times of pandemic crises. Originality/value This paper uses “actions taken” by enterprises offering various solutions in the testing times. The study is multidisciplinary in nature; it analyses the transformation strategic decisions in the context of economic and social dimensions for surviving the pandemic crises. The study provides a foundation for future research, as inferences are based on select examples.

Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

Leaving a joint audit system: conditional fee reductions

2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard
Keyword(s):  
Audit Quality ◽  
Theory Development ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Audit Firm ◽  
Audit System ◽  
Interaction Terms ◽  
Audit Firms ◽  
Audit Fee

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

CEO statements on racial inequity – (how) do they matter to shareholders?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pyemo Afego ◽  
Imhotep Alagidede
Keyword(s):  
Chief Executive Officers ◽  
Social Issues ◽  
Chief Executive ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Racial Injustice ◽  
Communication Decisions ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this study is to explore how citizen protests against perceived acts of racial injustice impact on share prices of companies who weigh in on the protests. In particular, corporate statements that directly address the issues around the protests are identified and possible mechanisms underlying how these may impact shareholder value are discussed. Design/methodology/approach The authors first use a qualitative research approach of content and sentiment analysis to track how companies or their chief executive officers (CEOs) present their stance against racial injustice, as represented by their use of linguistic markers. Then, the authors use an event study methodology to assess the response from stock market participants. Findings The findings suggest that CEOs primarily convey their stance using language that is emotive and empathic. In addition, shareholders earn a significant abnormal return of 2.13%, on average, in the three days following the release of the statements. Research limitations/implications This study considered only US-listed companies. The sample size, also, is relatively small. Institutional and cultural differences across countries may also vary. Thus, future research could explore the extent to which the findings generalize to other contexts. Practical implications Results provide insights to top managers who communicate with various stakeholders on emotionally charged social issues. Findings also offer insights on the timing of trades for investors and arbitrageurs. Social implications Findings contribute to the understanding of corporate behaviour in times of social upheaval. Insights from the study may also be used to inform corporate communication decisions about important social issues. Originality/value This study brings into focus the role that affective appeal and moral emotion can play in evoking motivation for corporate activism, and the impact that this has on investor opinions’ formation process.

Emerging trends in digital transformation: a bibliometric analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raghu Nandan Chawla ◽  
Praveen Goyal
Keyword(s):  
Bibliometric Analysis ◽  
Business Models ◽  
Digital Technologies ◽  
Citation Network ◽  
Digital Transformation ◽  
Intellectual Structure ◽  
Future Research ◽  
Strategic Decisions ◽  
Content Type ◽  
Research Areas

PurposeUbiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis.Design/methodology/approachBy performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM, this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software.FindingsThe study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain.Research limitations/implicationsThe study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams.Practical implicationsFor the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently.Originality/valueThis study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.

A conceptual framework for managing post-disaster reconstruction projects in emerging economies: the case of Angola

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nyamagere Gladys Sospeter ◽  
Pantaleo D. Rwelamila ◽  
Joaquim J. Gimbi
Keyword(s):  
Project Management ◽  
Conceptual Framework ◽  
Business Environment ◽  
Emerging Countries ◽  
Provincial Government ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Essential Components ◽  
Post Disaster

PurposeThis study develops a conceptual framework appropriate for managing Post-Disaster Reconstruction Projects (PDRPs) so as to avoid cost and time overruns in Angola.Design/methodology/approachAn explanatory sequential mixed research approach was used. Data was collected from project participants within the ministry of planning, the provincial government office of planning and the local government in Angola. A questionnaire with closed questions was completed by 130 survey respondents. Semi-structured focus group interviews were conducted with seven participants selected through purposive sampling. Descriptive statistics, t-test and content analysis were used to analyse quantitative and qualitative data, respectively.FindingsThe study indicates that there is presently no formal project management process. Neither have government project management standards been developed and broadcast. This results in ad hoc processes being mostly used for managing PDRPs. The study further presents disaster preparation programme, community engagement, resources and stakeholder's engagement, post-disaster procurement policies, financial guides, post-disaster recovery legislation, context-specific (social economic, demographic, political and cultural variables), programme preparation as essential components to be considered for developing an appropriate framework for managing PDRPs.Research limitations/implicationsThe study is limited by its geographical settings which focussed the results on one province in Angola. However, the findings can be useful for other countries wishing to gain insights on the framework with “overlooked components” for managing DPRPs in emerging countries with similar disaster environment, government policies and same business environment.Practical implicationsThe framework for managing PDRPs may positively impact project realization, hence minimization of time and cost overruns. The findings are vital for managers, local practitioners and policy/decision-makers in emerging countries of essential components and lessons useful for managing PDRPs and making decisions when they intend to participate in such projects. An understanding of which approaches are critical and essential components of the framework serves as a basis for improving project delivery. Future research studies should describe its practical application.Originality/valueThe study provides insights by identifying an ordered grouped set of project management models/approaches mostly applicable for managing PDRPs in Angola, better understanding of appropriate components/variables to be considered and develops a conceptual framework for managing PDRPs in emerging countries, post-war context.

Rethinking project management

2016 ◽  
Vol 9 (4) ◽  
pp. 716-743 ◽  
Author(s):  
Derek Walker ◽  
Beverley Lloyd-Walker
Keyword(s):  
Project Management ◽  
Research Agenda ◽  
Design Methodology ◽  
Future Research ◽  
Research Approach ◽  
Research Directions ◽  
Content Type ◽  
Future Research Directions ◽  
Axial Coding ◽  
Over Time

Purpose The purpose of this paper is to explore the extent of the continuing influence on project management (PM) research directions of rethinking project management over the last ten years. Design/methodology/approach The authors chose a qualitative research approach that involved reading all papers published in the International Journal of Managing Project in Business since its commencement in 2008. Content analysis was performed on these papers to allow axial coding of key article content influence themes. Findings The research identified the strength, over time, of the three research interest clusters on the PM research agenda and resultant changes in the PM paradigm. The five directions put forward by the rethinking PM agenda and other researchers ten years ago have continued to influence the PM research agenda. Originality/value Findings provide a better understanding the changes in PM research directions since rethinking PM, the increased breadth and sophistication of PM research in general, and future research directions.

scholarly journals Intergenerational communication barriers and pitfalls of business families in transition—a qualitative action research approach

2020 ◽  
Vol 25 (3) ◽  
pp. 515-532 ◽  
Author(s):  
Anita Zehrer ◽  
Gabriela Leiß
Keyword(s):  
Action Research ◽  
Change Process ◽  
Single Case ◽  
Communication Barriers ◽  
Future Research ◽  
Intergenerational Communication ◽  
Research Approach ◽  
Content Type ◽  
Beneficial Effects ◽  
Action Research Approach

PurposeThis paper aims to explore the pertinent issues, barriers and pitfalls of intergenerational communication in business families during their leadership succession period.Design/methodology/approachBuilding on relational leadership theory, the paper makes use of an action research approach using a qualitative single case study to investigate communication barriers and pitfalls in business transition.FindingsThrough action research, interventions were taken in the underlying case, which increased the consciousness, as well as the personal and social competencies of the business family. Thus, business families stuck in ambivalent entanglement understand their underlying motives and needs within the change process, get into closer contact with their emotional barriers and communication hindrances, which is a prerequisite for any change, and break the succession iceberg phenomenon.Research limitations/implicationsFuture research should undertake multiple case studies to validate and/or modify the qualitative methods used in this action research to increase the validity and generalizability of the findings.Practical implicationsGiven the large number of business families in transition, our study shows the beneficial effects action research might have on business families’ communication behavior along a change process. The findings might help other business families to understand the value of action research for such underlying challenges and decrease communication barriers.Originality/valueThis is one of the few studies to have addressed intergenerational communication of business families using an action research approach.

Adaptive theory: an underutilised approach to sexual offender research

2019 ◽  
Vol 19 (2) ◽  
pp. 171-184
Author(s):  
Carollyne Youssef
Keyword(s):  
High Risk ◽  
Sexual Offenders ◽  
Service Providers ◽  
Sexual Offending ◽  
Small Sample ◽  
Future Research ◽  
Depth Information ◽  
Research Approach ◽  
Content Type ◽  
Offending Behaviour

Purpose While most studies utilise quantitative methodologies to examine issues relevant to sexual offending behaviour, such as treatment programmes and risk assessments; substantially fewer studies have utilised qualitative methods, and specifically Layder’s Adaptive Theory (AT) as a methodology; and there is a paucity of research examining community maintenance programmes altogether. The purpose of this paper is to report on the use of AT to the understanding of the significance of community maintenance programmes for high-risk sexual offenders. Design/methodology/approach Using AT as a unique framework, this study examined an Australian sample of services providers and high-risk sexual offenders participating in a community maintenance programme. In particular, the current research aimed to develop an understanding of community maintenance programmes for released sexual offenders, in a bid to develop a theoretical framework for these programmes. The research had three subject groups, service providers, programme participants who had not reoffended and programme participants who had sexually reoffended. Findings It appears that this methodology is a useful approach to studies within forensic rehabilitation and offender research. Common, reoccurring themes have been gathered through this approach, which would not have been possible with a quantitative methodology. Research limitations/implications While this research methodology was applied to a small sample size, its use suggested that AT was an informative and useful research approach to utilise in offender research more broadly, yielding rich in-depth information. Practical implications Utilising AT provided an in-depth understanding and exploration of experiences for offender populations as well as staff delivering programmes, which enhances the efficacy of programmes delivered by incorporating “user feedback” and allows programme developers to utilise such feedback to improve programmes. An AT approach to offender rehabilitation has been useful in providing exploratory information in the absence of any conceptual or theoretical frameworks and with a very little extant information. Given maintenance programmes are quite understudied, this approach allowed for common themes to emerge in order to guide future research as well as the development of a paradigm. It is worth considering the utility of this methodology for a variety of forensic research, particularly areas which remain understudied. Social implications Sexual offending behaviour is a significant societal concern. A better understanding of what makes programmes more effective for those who use them and run them, will assist in reducing recidivism, which will benefit the community at large. Originality/value Layder’s AT has not been used with an offender population in the past, and specifically within the sexual offending realm, thus this paper offers a unique and effective approach to offender research.

Lean thinking and higher education management: revaluing the business school programme management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saad Zighan ◽  
Ahmed EL-Qasem
Keyword(s):  
Business School ◽  
Value Added ◽  
School Curriculum ◽  
Learning Objectives ◽  
Value Stream Mapping ◽  
Future Research ◽  
Research Approach ◽  
School Students ◽  
Lean Thinking ◽  
Content Type

PurposeThis paper explores the applications of lean thinking in re-evaluating the business school curriculum, syllabus and intended learning objectives to enhance the employability of graduates through identifying and eliminating non–value-added activities.Design/methodology/approachThe research employed multilevel qualitative methodology, where 55 semi-structured interviews were conducted to collect data from academics, students and graduates from several private and public universities in Jordan.FindingsThe study finds that the application of lean thinking in the business school is twofold – it helps the developer of the school curriculum to get rid of many superfluous and non–value-added activities and also emphasises and reinforces the value-added activities. Value stream mapping, with a consideration for internal and external outputs, has been found to be a useful tool for developing an employability-focussed curriculum that equips business school students with the required competences and skills in the labour market.Research limitations/implicationsThe study is based on a qualitative research approach. The generalisability of the findings is difficult to assess, and future research would benefit from the insights obtained from the quantitative dataPractical implicationsIn practice, this study has identified different types of non–value-added and unnecessary activities in business school curriculum and has made suggestions for the development of a more employability-focussed curriculum.Originality/valueThis paper investigates the non–value-added activities of the business school curriculum, syllabus and the intended learning objectives to enhance the employability of graduates in Jordan.

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