The impact of 3D printing implementation on stock returns

2019 ◽  
Vol 39 (6/7/8) ◽  
pp. 935-961 ◽  
Author(s):  
Hugo K.S. Lam ◽  
Li Ding ◽  
T.C.E. Cheng ◽  
Honggeng Zhou
Keyword(s):  
3D Printing ◽  
Competitive Advantage ◽  
Stock Returns ◽  
Event Study ◽  
Dynamic Capabilities ◽  
Content Type ◽  
Listed Firms ◽  
Operating Environments ◽  
Study Results ◽  
The Impact

Purpose The purpose of this paper is to theoretically hypothesize and empirically test the impact of 3D printing (3DP) implementation on stock returns. It further explores how the stock returns due to 3DP implementation vary across different industry environments. Design/methodology/approach This paper integrates the dynamic capabilities view with contingency theory to provide a contingent dynamic capabilities (CDC) perspective on 3DP implementation. It argues that implementing 3DP enables firms to enhance their manufacturing capabilities and gain a competitive advantage, but the extent to which the competitive advantage can be realized is contingent on the fit between 3DP-enhanced manufacturing capabilities and firms’ operating environments. Those arguments are tested based on an event study of 232 announcements of 3DP implementation made by US publicly listed firms between 2010 and 2017. Findings The event study results show that firms implementing 3DP gain higher stock returns compared with their non-implementation industry peers over two years after the implementation. Such stock returns due to 3DP implementation are more pronounced for firms operating in more munificent, more dynamic and less competitive industry environments. Those findings are consistent with the CDC perspective. Originality/value This is the first research empirically examining the impact of 3DP implementation on stock returns. It provides important implications for managers to implement 3DP to enhance firms’ manufacturing capabilities and for researchers to study 3DP implementation from the CDC perspective.

How does reverse factoring affect operating performance? An event study of Chinese manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Weijiao Wang
Keyword(s):  
Event Study ◽  
Cost Efficiency ◽  
Operating Performance ◽  
Manufacturing Firms ◽  
Content Type ◽  
Performance Effect ◽  
Study Results ◽  
Operating Margin ◽  
The Impact ◽  
The Relationship

PurposeAs a popular supply chain finance (SCF) strategy, reverse factoring has been widely adopted by buyer firms. However, the extant literature provides scant empirical evidence on the performance effect of reverse factoring. The purpose of this study is to seek to narrow this gap by empirically examining the relationship between reverse factoring and operating performance and the contingency conditions of this relationship.Design/methodology/approachBased on a sample of 167 announcements of reverse factoring implementation made by publicly listed Chinese manufacturing firms between 2014 and 2018, this paper employs a long-term event study approach to analyze the operating performance effect of reverse factoring as well as the moderating effects of production and innovation capabilities.FindingsThe event study results indicate that reverse factoring has a positive effect on buyer firms' operating performance in terms of cost efficiency and operating margin. In addition, both production and innovation capabilities positively moderate the relationship between reverse factoring and operating margin. However, neither of them moderates the relationship between reverse factoring and cost efficiency.Originality/valueThis is the first study that empirically examines the impact of reverse factoring on operating performance based on secondary data. Furthermore, it sheds light on the SCF literature by providing insights into the contingency effects of production and innovation capabilities, which also extends our understanding of the application of extended resource-based view in SCF research.

Developing a model for supply chain agility and innovativeness to enhance firms’ competitive advantage

2019 ◽  
Vol 57 (7) ◽  
pp. 1511-1534 ◽  
Author(s):  
Chih-Jou Chen
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Business Environment ◽  
Structural Equations ◽  
Survey Method ◽  
Content Type ◽  
Supply Chain Agility ◽  
It Integration ◽  
The Impact

Purpose Developing agility and innovativeness as dynamic capabilities are important for firms to sustain their competitive advantage in today’s global economy. The purpose of this paper is to develop and empirically test a framework to investigate how the supply chain agility and innovativeness are achieved through IT integration and trust in members of supply chain and how these, in turn, can enhance firms’ competitive advantage. Design/methodology/approach This research employs a survey method and data are collected from senior managers working in the supply chain or IT area. The model and hypotheses are tested utilizing data from 204 usable Taiwan manufacturing firms via structural equations modeling methodology. Findings The study demonstrates that both IT integration and trust in supply chain members significantly enhance supply chain agility and innovativeness, which in turn positively affect firm’s competitive advantage. The results indicate that IT integration and trust are antecedents and major joint partnership resources for improving supply chain agility and innovativeness. Research limitations/implications Data are collected from manufacturing industry in Taiwan and single respondent from each firm, the generalizability of current findings to other industries or countries should require additional investigation. Practical implications The study suggests that a firm should focus on IT integration and trust in supply chain members to achieve supply chain agility and innovativeness. To take advantage of supply chain agility and innovativeness, through maximizing firm’s competitive advantage, firms should continually adapt to the fast changing business environment and search for creative ways to satisfy new market needs. Originality/value Given the attention paid to supply chain agility and innovativeness in terms of importance to responding to business uncertainty and competitiveness, and more recently, as important capabilities in managing supply chain management, this paper investigates how IT integration and trust can contribute to supply chain agility and innovativeness. Provide evidence regarding the impact of IT integration and trust on agility of supply chains, innovativeness and competitive advantage.

Celebrity endorsements and branding strategies: event study from India

2015 ◽  
Vol 24 (6) ◽  
pp. 633-645 ◽  
Author(s):  
Saravana Jaikumar ◽  
Arvind Sahay
Keyword(s):  
Event Study ◽  
Economic Value ◽  
Abnormal Returns ◽  
Celebrity Endorsements ◽  
Stock Market Returns ◽  
Content Type ◽  
Study Results ◽  
Branding Strategies ◽  
The Impact ◽  
Corporate Brands

Purpose – The purpose of this study is to evaluate the economic value of celebrity endorsements to Indian firms based on their branding strategy – corporate or house-of-brands – and their “congruence” or “fit” with the celebrity. The overall economic value of endorsements to firms in India, a moderately collectivist culture, is also assessed. Design/methodology/approach – Standard “event study” methodology is used to evaluate the economic value of endorsements under different branding strategies (47 endorsement announcements – 25 corporate brands and 22 house-of-brands). The impact of the level of congruence (assessed using brand personality scales) on abnormal returns is also examined. Findings – Event study results indicate significant positive abnormal returns for corporate brands and insignificant returns to house-of-brands. Moreover, the level of congruence is found to have an insignificant effect on endorsement announcement returns. Overall, celebrity endorsements result in positive economic value to Indian firms. Originality/value – This study evaluates the differences in the effectiveness of celebrity endorsements (which might form a significant part of advertising costs) to firms following different branding strategies. Findings from this study indicate that celebrity endorsement announcements from house-of-brands do not lead to any significant stock market returns (in terms of market value). Further, contrary to current literature, the results indicate that the congruence between brand and celebrity has no impact on returns to endorsements in India, warranting further examination of whether congruence or likeability is important in endorsements.

scholarly journals The interrelatedness of organizational ambidexterity, dynamic capabilities and open innovation: a conceptual model towards a competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes W.F.C. van Lieshout ◽  
Jeroen M. van der Velden ◽  
Robert J. Blomme ◽  
Pascale Peters
Keyword(s):  
Competitive Advantage ◽  
Conceptual Model ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Dynamic Environment ◽  
Organizational Ambidexterity ◽  
Organization Studies ◽  
Content Type ◽  
Research Fields ◽  
The Impact

PurposeEstablishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation.Design/methodology/approachThe authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique.FindingsOrganizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox.Originality/valuePrevious research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.

The financial impact of retail store closure announcements

2017 ◽  
Vol 47 (6) ◽  
pp. 536-556 ◽  
Author(s):  
Jaideep Chowdhury ◽  
Sourish Sarkar
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Retail Store ◽  
Financial Impact ◽  
Sales Growth ◽  
Content Type ◽  
Abnormal Stock Returns ◽  
The Impact ◽  
Closure Decisions

Purpose While store closure announcements frequently appear in newspapers, little is known about the financial impact of store closure decisions on the retailer’s market value. The purpose of this paper is to investigate the stock market reaction to the announcements of retail store closure decisions. Design/methodology/approach The authors collect data from news articles on store closure announcements in the USA during 1995-2016. Using the four-factor model in an event study, the authors compute the abnormal stock returns for the retail firms due to these announcements. Findings Based on the authors’ analysis for sample and matching control firms, the abnormal stock returns for store closure announcements are found to be positive overall. The authors find evidence that the positive effects of the announcements are stronger, particularly for the firms which have positive sales growth at the time of the announcements. The authors also report that industry competition acts as a negative moderator in the relationship between announcements and financial impacts. Practical implications The authors’ analysis implies the investors’ positive sentiment of store closure announcements as a viable cost-cutting strategy, especially when it is done proactively by better performing retailers. The findings should be useful to the supply chain managers of retail industries in making store closure decisions. Originality/value This paper is believed to be the first to address the impact of retail store closure announcements on the stock market. The authors’ approach of categorizing the firms based on their sales growth seems to be the first in the event study literature on corporate restructuring.

Does customer satisfaction matter to managers’ earnings forecasts and stock returns?

2018 ◽  
Vol 52 (9/10) ◽  
pp. 2026-2051 ◽  
Author(s):  
Jenny (Jiyeon) Lee ◽  
Youngdeok Lim ◽  
Hyung Il Oh
Keyword(s):  
Customer Satisfaction ◽  
Stock Returns ◽  
Firm Value ◽  
Earnings Forecasts ◽  
Management Forecasts ◽  
Management Earnings Forecasts ◽  
Marketing Metrics ◽  
Content Type ◽  
Study Results ◽  
The Impact

PurposeThe purpose of this study is to examine the relevance of American Customer Satisfaction Index (ACSI) to management voluntary forecasts of earnings. The authors further investigate whether the market reacts to such forecasts in respect of satisfaction.Design/methodology/approachThe authors’ econometric models are constructed from previous work in accounting to specify the effect of ACSI on the issuance and optimism of management forecasts. Our model also specifies the impact of management optimism with respect to ACSI on stock returns. The data consisting of US firms in the 2001-2010 is collated from several databases and analyzed using multiple regression procedures.FindingsResults indicate that ACSI is positively associated with the likelihood of issuing management forecasts and boosts management optimism. It is also found that investors react negatively to management optimism that is inherent in forecasts and results from satisfaction.Research limitations/implicationsThe authors’ research findings not only complement prior work on the linkage between customer satisfaction and firm value by incorporating a managerial perspective but also respond to the recent call for further work on how relevant marketing metrics drive organizational decisions and firms’ financial performance. It should be noted that findings are limited to firms that release both a voluntary issuance of management forecasts and ACSI.Practical implicationsThe study results shed light on the justification of marketing expenditures and provide a response to the call for marketing accountability. The study results also enable managers to make better decisions about whether and when to issue a forecast. The authors’ research further calls stakeholders’ attention to the presence of management forecast optimism with respect to satisfaction.Originality/valueDespite the importance of managers as primary information generators and disseminators in the capital markets, there appears to be little discussion on the satisfaction’s relevance to market participants, particularly in relation to the role of managers. Therefore, this investigation is the first to empirically show the relevance of ACSI to management earnings forecasts that have been ignored in the marketing literature.

The announcement and implementation reaction to China's margin trading and short selling pilot programme

2014 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Saqib Sharif ◽  
Hamish D. Anderson ◽  
Ben R. Marshall
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Short Selling ◽  
Market Model ◽  
Short Sales ◽  
Content Type ◽  
Pilot Programme ◽  
The Impact

Purpose – The purpose of this paper is to investigate how the announcement and implementation of short sales and margin trading regulation affects Chinese stock returns and trading volume. On 31 March 2010, the Chinese regulators launched a pilot programme, allowing short sales and margin trading for 50 Shanghai Stock Exchange and 40 Shenzhen Stock Exchange stocks. Design/methodology/approach – This paper uses an event study approach to compare market model abnormal returns (ARs) of the pilot firms with two distinct matched firm samples. A volume event study is also conducted to examine abnormal trading activity surrounding the key events in the pilot stocks. Findings – Negative ARs follow both the announcement and implementation of short selling and margin trading. This suggests the negative impact of short sales dominates the positive impact of margin trading on an average. Volume also declines, which is consistent with uninformed investors’ seeking to avoid trading against informed traders. Originality/value – The paper appears to be the first to address the impact of both the announcement and implementation of short selling and margin trading rule changes on returns and liquidity using individual stock data.

Market discounts and shareholder benefits

2014 ◽  
Vol 32 (6) ◽  
pp. 570-588 ◽  
Author(s):  
Christopher Ratcliffe ◽  
Bill Dimovski
Keyword(s):  
Event Study ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Industrial Firms ◽  
Content Type ◽  
Explanatory Variables ◽  
Private Placement ◽  
Study Results ◽  
Private Placements ◽  
The Impact

Purpose – The purpose of this paper is to examine the impacts of private placement announcements by Australian Real Estate Investment Trusts (A-REITs) on existing shareholders. The study examines 96 A-REIT private placements from January 2000 to December 2012. Design/methodology/approach – Utilising event study methodology the authors examine the impact on existing shareholders wealth by measuring the abnormal returns (AR) around the placement announcement. The authors extend the analysis to model the A-REITs ARs against a number of explanatory variables to investigate the possible drivers for the observed event study results. Findings – The results support the information signalling hypothesis, in that existing investors in A-REITs earn negative and significant cumulative ARs of −1.3 per cent over the three-day event window [−1, +1]. This result is in contrast to prior studies conducted on industrial firms, for example; Hertzel and Smith (1993), Krishnamurthy et al. (2005) and Wruck and Wu (2009). Practical implications – Regression analysis shows A-REITs trading at a premium to net tangible assets and A-REITs that use placement funds for their core business have a positive impact on announcement ARs. Originality/value – This paper adds to the existing literature surrounding private placements and is the first paper, to the authors’ knowledge, to examine the impact of Australian REITs.

Cybersecurity: investing for competitive outcomes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dejan Kosutic ◽  
Federico Pigni
Keyword(s):  
Literature Review ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Extensive Literature ◽  
Structured Interviews ◽  
Content Type ◽  
Extensive Literature Review ◽  
Industry Standards ◽  
Technological Bias ◽  
The Impact

Purpose The purpose of this paper is to help companies address the problem of ever-increasing cybersecurity investment that does not produce tangible business value – this is achieved by explaining the relationship between cybersecurity and competitive advantage. Design/methodology/approach The impact of cybersecurity on competitive advantage was explored through a qualitative research study – the authors conducted an extensive literature review and conducted two rounds of semi-structured interviews with executives and security professionals from companies in four countries, from the financial, IT and security industries. Findings The analysis of the findings enabled the conceptualization of the Cybersecurity Competitive Advantage Model that explains how to build up cybersecurity dynamic capabilities to achieve long-term competitive advantage. Research limitations/implications The research presents the theorization of the model based on an extensive literature review, gathered information, insight from qualified respondents and the authors’ experience in the field. While we controlled for saturation and rigorously collected and analyzed the data, the inductive approach followed may limit the generalizability of the findings. Practical implications The proposed model helps explain to executives how to differentiate their company in a novel way and how to retain that competitive advantage; security professionals can use the model to organize cybersecurity and communicate to their superiors more effectively. Originality/value The presented model differs from existing literature, cybersecurity frameworks and industry standards by presenting a method of avoiding technological bias and for achieving competitive advantage.

Abnormal stock returns in Greece during the Cypriot banking crisis

2016 ◽  
Vol 19 (2) ◽  
pp. 122-129 ◽  
Author(s):  
Spyridon Repousis
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Stock Prices ◽  
Stock Exchange ◽  
Banking Crisis ◽  
High Volume ◽  
Content Type ◽  
Abnormal Stock Returns ◽  
Athens Stock Exchange ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of the Cypriot banking crisis in specific bank stocks’ prices traded in the Athens Stock Exchange. Design/methodology/approach In the present study, event study methodology has been used. The basis of the event study is to examine the returns derived from the stock prices of the relevant banks before March 15, 2013. Findings This study focuses on three banks, Bank of Cyprus, Cyprus Popular Bank and Piraeus Bank, and finds abnormal stock returns during the ten-day period before the event date (announcement of prohibition and put under suspension trading of all movable securities of Bank of Cyprus and Cyprus Popular Bank). Also, an interesting matter is that during the estimation period and in specific dates, such as October 18, 22 and 23, 2012, a high volume of stocks trading took place in Bank of Cyprus and Cyprus Popular Bank. Originality/value To the best of the author’s knowledge, this is the first study examining it.

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