scholarly journals Net trade credit: what are the determinants?

2017 ◽  
Vol 13 (3) ◽  
pp. 246-266 ◽  
Author(s):  
Godfred Adjapong Afrifa ◽  
Ernest Gyapong
Keyword(s):  
Cash Flow ◽  
Design Methodology ◽  
Trade Credit ◽  
Unobserved Heterogeneity ◽  
Bank Credit ◽  
Sales Growth ◽  
Industry Effects ◽  
Content Type ◽  
Operating Cash Flow ◽  
The Uk

Purpose The purpose of this paper is to extend the literature on trade receivables and trade payables by examining the determinants of net trade credit. Design/methodology/approach To do that, a sample of 67,047 firms in the UK with 443,190 firm year observations is used. Findings The results are robust to unobserved heterogeneity and industry effects. The evidence suggests that firms with more inventories, market share and are financially distressed invest less in trade credit. Moreover, higher operating cash flow, annual sales growth, export propensity, access to bank credit and larger firms lead to higher investment in trade credit. Originality/value Additionally, the paper broadens the scope of the literature by analysing the determinants of net trade credit around the financial crisis and industry competitiveness.

Agency costs in the market for corporate control: evidence from UK takeovers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edward Jones ◽  
Bing Xu ◽  
Konstantin Kamp
Keyword(s):  
Agency Costs ◽  
Design Methodology ◽  
Corporate Control ◽  
Sales Growth ◽  
Content Type ◽  
Market For Corporate Control ◽  
The Uk ◽  
Practical Implications ◽  
Theory Framework ◽  
Made In

Purpose This paper aims to examine whether agency costs predict disciplinary takeover likelihood for the UK listed companies between 1986 and 2015. Design/methodology/approach Using survival analysis, the approach is to identify candidates for disciplinary takeover on the basis of Tobin’s Q (TQ), which is consistent with the approach advocated by Manne (1965). This study then examines how indicators of agency costs affect takeover likelihood within the set of disciplinary candidates. Findings This paper provides evidence of the effectiveness of TQ, rather than excess return, in identifying disciplinary takeover candidates. Takeover hazard for disciplinary candidates is higher for companies with higher levels of asset utilization and sales growth in particular. Companies with stronger agency problems are relatively less susceptible to disciplinary takeover. Practical implications Given the UK context of the study, where anti-takeover provisions are disallowed and when compared to findings of US studies, the results imply some support for the effectiveness of an open merger policy. Originality/value While the connection between takeover likelihood and the market for corporate control has been made in previous studies, the study adopts a more explicit agency theory framework than previous studies of takeover likelihood. A key component of the contribution follows from differentiating candidates for disciplinary takeovers from other forms of mergers and acquisitions.

Working capital requirements of manufacturing SMEs: evidence from emerging economy

2017 ◽  
Vol 27 (3) ◽  
pp. 369-385 ◽  
Author(s):  
Harsh Pratap Singh ◽  
Satish Kumar
Keyword(s):  
Cash Flow ◽  
Random Effect ◽  
Cash Flows ◽  
Capital Requirements ◽  
External Factors ◽  
Sales Growth ◽  
Working Capital ◽  
Financial Leverage ◽  
Content Type ◽  
Operating Cash Flow

Purpose The purpose of this paper is to analyze the effects of various factors like profitability, growth opportunity, financial leverage, assets tangibility, operating cash flows, age and size of firm on working capital requirements (WCR) of manufacturing SMEs in India. Design/methodology/approach The paper uses a panel data regression model with fixed and random effect estimations. The data utilized in this study includes financial data of 254 manufacturing SMEs operating in India for the period 2010 to 2014. Findings The overall results of the study indicate that operating cash flow, financial leverage, profitability, sales growth and asset tangibility are the key drivers of WCR for Indian manufacturing SMEs. Profitability of firm and sales growth are found to be positively related to WCR. In contrast, asset tangibility, operating cash flow and financial leverage are found to be negatively related to WCR. Research limitations/implications This paper investigates firm-specific factors while ignoring external factors like GDP growth, business indicators and industry type. Further research can be done to assess the effect of these external factors on WCR. Originality/value This research contributes to the working capital literature by providing empirical evidence on determining factors of WCR in manufacturing SMEs.

The impact of targeted subsidies plan on electricity consumption, sale, receivables collection and operating cash flow

2017 ◽  
Vol 44 (4) ◽  
pp. 505-520
Author(s):  
Mahdi Salehi ◽  
Hamdollah Sojasi Qeidari ◽  
Ahmad Asgari
Keyword(s):  
Cash Flow ◽  
Design Methodology ◽  
Positive Relationship ◽  
Electricity Consumption ◽  
Negative Association ◽  
Rural Sector ◽  
Content Type ◽  
The Subject ◽  
Operating Cash Flow ◽  
The Impact

Purpose The purpose of this paper is to investigate the implementation of the targeted subsidies plan in the rural and agricultural sectors of Iran and its impact on the government’s sales income, operating cash flow (OCF) and receivables collection ratio. Design/methodology/approach Using the panel data approach, the authors examine their hypotheses on a sample of six provinces of Iran, including Khorasan Razavi, Khorasan Jonoubi, Kerman, Semnan, Kermanshah and Kurdistan, during 2009-2013. Findings The findings indicate that the implementation of the targeted subsidies plan leads to increased actual electricity sales in the rural sector. Further, while the coefficient on OCF in the estimated model suggests a significant and positive relationship between the OCF and the implementation of the targeted subsidies plan, the coefficient on receivables collection ratio demonstrates a significant but negative association. Contrary to the government’s primary expectations, the results do not provide any support for the reduction of electricity consumption. Originality/value The current study is apparently the first study which conducted on the subject under study.

“That's not how I see it”: female and male perspectives on the academic role

2007 ◽  
Vol 22 (6) ◽  
pp. 497-515 ◽  
Author(s):  
Sue Shaw ◽  
Catherine Cassell
Keyword(s):  
Gender Differences ◽  
Business School ◽  
Design Methodology ◽  
Business Schools ◽  
School Context ◽  
Empirical Work ◽  
Original Data ◽  
Content Type ◽  
Academic Role ◽  
The Uk

PurposeThe purpose of this paper is to provide a piece of empirical work that examines gender differences in how academics make sense of performance within university business schools in the UK.Design/methodology/approachThe research reported draws on data collected using a life history and repertory grid methodology with male and female interviewees from two university business schools.FindingsThe findings are discussed in relation to how academics understand what is valued about their role and what they believe the organisation rewards and values when it comes to promotion. Gender differences are shown to exist in the ways women and men define the academic role and in what they think is important both to themselves and the institution.Originality/valueThe paper presents original data on gender differences within a business school context.

scholarly journals Student engagement with sustainability: understanding the value–action gap

2014 ◽  
Vol 15 (4) ◽  
pp. 404-417 ◽  
Author(s):  
Gareth Chaplin ◽  
Paul Wyton
Keyword(s):  
Design Methodology ◽  
Strong Association ◽  
Structured Interviews ◽  
Online Questionnaire ◽  
Sustainable Living ◽  
Content Type ◽  
Lack Of Information ◽  
Significant Barrier ◽  
The Uk ◽  
Insight Into

Purpose – The purpose of this paper is to present the findings of research that aimed to determine what university students living in Unite accommodation in the UK understand about the concept of sustainable living. It considers what barriers they perceive to be standing in the way of following sustainable living practices. In particular, the research aimed to explore any value–action gap for the student population with a view to informing future actions to help close any gap. Design/methodology/approach – The study was completed through an online questionnaire survey of students living in halls of residence operated by provider The Unite Group Plc. The survey informed semi-structured interviews and focus groups that explored the issues raised in greater detail. Findings – It was found that students living in Unite properties believed sustainable living to be important, yet levels of understanding were very low and there appeared to be a wide value–action gap. Reasons for this are varied; however, an unexpected theme emerged around the association of effort and importance. There was a very strong association between sustainable living and recycling, which, therefore, saw the lack of adequate recycling facilities as a significant barrier to sustainable living. There were also issues around a lack of information, cost and respondents’ flatmates as further barriers. However, the most significant barrier was the displacement of responsibility for sustainable living to other people or organisations. Originality/value – Gaining an insight into the complexity of attitude and behaviour of students with the sustainability agenda will enable understanding that can be applied to activities that promote sustainability.

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

scholarly journals Signs and wonders

2015 ◽  
Vol 39 (4) ◽  
pp. 298-314 ◽  
Author(s):  
Simon Smith ◽  
Peter Stokes
Keyword(s):  
Design Methodology ◽  
Frontline Employees ◽  
Content Type ◽  
Extant Literature ◽  
Beneficial Effects ◽  
The Uk ◽  
The Impact

Purpose – This paper aims to examine and assess the reputational impact of the logo and symbols of the UK Standard Investors in People (IiP). The extant literature highlights differing opinions in terms of the likely benefits that IiP generates following achievement of the Standard. This paper focuses specifically on the perceptions of reputational claims made regarding existing employees, potential employees and customers. Design/methodology/approach – The debate is explored through 38 interviews using the perceptions of managers and frontline employees within six IiP-accredited firms and one non-accredited firm. Findings – The study indicates that the logo and symbols of the Standard have minimal meaning and significance for the interviewees and their outlook on potential employees and customers. There were some indications, however, that the wider reputational implications of carrying the logo may have some potentially beneficial effects. Originality/value – The paper concludes that the overarching findings present a potentially serious issue for IiP, and that there is a need to understand further the impact and value of the logo and symbols.

They teach, but do they apply?

2019 ◽  
Vol 10 (3) ◽  
pp. 743-766
Author(s):  
Anete Petrusch ◽  
Guilherme Luís Roehe Vaccaro ◽  
Juliane Luchese
Keyword(s):  
Design Methodology ◽  
Additional Data ◽  
Effective Sample Size ◽  
Exploratory Research ◽  
Lean Thinking ◽  
Content Type ◽  
Administrative Services ◽  
The Usa ◽  
And Performance ◽  
The Uk

Purpose Although discussed for more than 20 years, information about Lean adoption in higher education institutions (HEIs) is scarce, especially in developing countries. This research aims to investigate the degree of Lean thinking adoption on administrative services of Brazilian private HEIs. The results are compared to studies from USA and UK, highlighting the maturity on enablers, principles, tools and performance measures related to Lean. Design/methodology/approach A quantitative survey research was carried out. The instrument is adapted for HEIs from the proposal of Malmbrandt and Åhlström (2013) for Lean services. Cronbach’s alpha and factor analysis were used to validate the adapted instrument. Additional data analysis was based on non-parametric tests. Findings No evidence of broad implementation of Lean thinking in administrative processes of Brazilian private HEIs was found, with the adoption being incipient. The results are convergent to those presented by other studies in the USA and the UK. There is a gap between the existing knowledge about Lean in the academic sphere of the HEIs and its application on their academic processes. Research limitations/implications The effective sample size was of 47, despite contacts being sent to 2,090 institutions. This sample allows exploratory research, although further research is required. Results are adherent to those found in research from other countries. Originality/value The research presents descriptive and exploratory results regarding the adoption of Lean in Brazilian HEIs. No previous similar research was found in the literature.

Micro‐enterprise:

2013 ◽  
Vol 21 (1) ◽  
pp. 26-33 ◽  
Author(s):  
Sian Lockwood
Keyword(s):  
Health Inequalities ◽  
Design Methodology ◽  
Social Care ◽  
Community Support ◽  
Well Being ◽  
Local Health ◽  
Content Type ◽  
Local Case ◽  
The Uk ◽  
Health And Well Being

PurposeThis paper seeks to explore the potential of micro‐enterprises to assist local health and well‐being boards in delivering their strategies, especially in relation to tackling health inequalities, prevention and community support.Design/methodology/approachThis paper draws on experience gained by Community Catalysts from its work supporting social care and health micro‐enterprise across the UK. There has been little formal research into social care and health micro‐enterprise and so the paper relies heavily on data gathered by Community Catalysts in the course of its work and uses local case studies to illustrate points.FindingsThe paper explains the importance of social care and health micro‐enterprise to the work of health and well being boards, emphasising its potential to help tackle health inequalities and contribute to effective health and well‐being strategies.Originality/valueThere are no examples as yet of imaginative health and well‐being boards engaging effectively with micro‐providers, but boards can draw on learning from local authorities actively stimulating and supporting local micro‐enterprise.

scholarly journals Simulation evidence on the properties of alternative measures of working capital accruals

2017 ◽  
Vol 25 (4) ◽  
pp. 378-394
Author(s):  
Javad Izadi Zadeh Darjezi ◽  
Homagni Choudhury ◽  
Alireza Nazarian
Keyword(s):  
Cash Flow ◽  
Estimation Error ◽  
Explanatory Power ◽  
Cash Flows ◽  
Working Capital ◽  
Accrual Quality ◽  
Content Type ◽  
Explanatory Variables ◽  
Study Results ◽  
The Uk

Purpose This paper aims to investigate the specification and power of tests based on the DD and modified DD model through the UK data between years 2000 and 2013, and make comparisons with tests using working capital accruals creating a measure of accruals quality as the standard deviation of the residuals value from firm-specific regressions base on working capital accruals on last, current and one-year-ahead cash flows from operations. Design/methodology/approach This study focuses both on the DD model and modified DD model to find out which of them can more accurately capture total working capital accrual estimation error and accrual quality. According to the DD model, the past, current and future net cash from operating activities as the three years’ operating cash inflows or outflows become omitted and correlated variables. In this study, the authors continue to document residuals from the DD and MDD models to demonstrate properties that are more consistent with behaviours of accruals estimation errors. Therefore, in this study, the authors are looking to compare the results from both the MDD and DD models and find which one of them is more effective in explaining the working capital accruals in the UK. Findings The authors find that adding additional explanatory variables may add additional explanatory power of variables to the DD model and extent to which accruals map into cash flow insights based on the UK data. This study is empirically well fitting with the internal workings of cash flows. As investors fixate only on the accounting earnings, they may fail to reflect fully on information contained within cash flow components and working capital accruals of current and future earnings. Originality/value The authors compare different equation to cover more items of working capital accruals. In addition, after examining earnings and accrual quality, the findings show that the average UK company behaviour was quite similar to the behaviour that was founded earlier for both models in the USA. Furthermore, this study results show that more volatility of sales, cash flow, accruals and earnings make a lower accrual quality. The results demonstrate that both models can capture the power to predict working capital accruals. Moreover, we find that adding additional explanatory variable of employee growth rate adds additional explanatory variables to DD model.

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