Financial leverage, debt maturity, future financing constraints and future investment

2020 ◽  
Vol 13 (4) ◽  
pp. 613-634
Author(s):  
Ehsan Poursoleiman ◽  
Gholamreza Mansourfar ◽  
Sazali Abidin
Keyword(s):  
Debt Maturity ◽  
Financing Constraints ◽  
Financial Leverage ◽  
Short Term ◽  
Content Type ◽  
Mediating Role ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to investigate the impact of debt maturity on the relationship between financial leverage and future financing constraints. Moreover, it attempts to analyze the moderating role of short-term debt and the mediating role of future financing constraints in the relationship between financial leverage and future investment. Design/methodology/approach To test the moderating role of debt maturity, all the observations are divided into two groups based on short-term debt to total debt ratio. Moreover, Sobel, Aroian and Goodman tests are used to analyze the mediating role of future financing constraints. The sample used in this research includes firms listed on the Tehran Stock Exchange from 2006 to 2018. Findings It is shown that financial leverage is inversely (positively) related to future financing constraints for firms with higher (lower) use of short-term debt and, short-term debt moderates the relation between financial leverage and future investment. The findings also indicate that future financing constraints carry the influence of financial leverage to future investment. Originality/value In an imperfect market where financing is not independent of investment, it is highly required to carry out some studies on the role of different financing scenarios in firms and their impacts on future financing and investment; therefore, this paper is conducted to address one of the most important issues in the capital market, which is almost the pioneer study in this field.

scholarly journals Does sustainable consumption matter? Consumer grocery shopping behaviour andthe pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ing Grace Phang ◽  
Bamini K.P.D. Balakrishnan ◽  
Hiram Ting
Keyword(s):  
Social Transformation ◽  
Sustainable Consumption ◽  
Well Being ◽  
Grocery Shopping ◽  
Consumer Decision Making ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The COVID-19 pandemic took the world by surprise in early 2020. The preventive measures imposed by many countries limited human movement, causing uncertainty and disrupting consumption patterns and consumer decision-making. This study aims to explore consumers’ panic buying (PB) and compulsive buying (CB) as outcomes of the intolerance of uncertainty (IU). The moderating role of sustainable consumption behaviours (SCBs) (e.g. quality of life [QOL], concern for future generation and concern for environmental well-being) were also tested to raise awareness of responsible and mindful consumption amongst the society and business stakeholders. Design/methodology/approach To empirically examine the grocery shopping behaviours of Malaysian consumers during COVID-19, a total of 286 valid grocery consumer survey responses based on a purposive sampling were collected and analysed during the movement control order period between March and July 2020. Findings The findings confirmed the statistically significant impact of IU on both PB and CB and the impact of PB on CB behaviour. Amongst the three SCBs tested, only QOL significantly moderated the relationship between the IU and PB. Originality/value To the best of the authors’ knowledge, this is the first study to construct a framework of consumers’ PB and CB during the pandemic, building upon the stimulus-organism-response model and the concepts of IU and SCB. This study further serves as the pioneering study on the moderating role of SCB in consumer behaviour research in the pandemic context, whereby consumers’ QOL significantly moderates the relationship between their IU and PB. This study has also drawn specific implications for grocery retailers and government agencies for retail and policy planning to promote positive social transformation in consumer buying behaviours during a pandemic or crisis.

Bullying and turnover intentions: how creative employees overcome perceptions of dysfunctional organizational politics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dirk De Clercq ◽  
Tasneem Fatima ◽  
Sadia Jahanzeb
Keyword(s):  
Organizational Climate ◽  
Workplace Bullying ◽  
Turnover Intentions ◽  
Organizational Politics ◽  
Content Type ◽  
Organizational Environments ◽  
Mediating Role ◽  
The Relationship ◽  
Moderating Role

PurposeThis study seeks to unpack the relationship between employees' exposure to workplace bullying and their turnover intentions, with a particular focus on the possible mediating role of perceived organizational politics and moderating role of creativity.Design/methodology/approachThe hypotheses are tested with multi-source, multi-wave data collected from employees and their peers in various organizations.FindingsWorkplace bullying spurs turnover intentions because employees believe they operate in strongly politicized organizational environments. This mediating role of perceived organizational politics is mitigated to the extent that employees can draw from their creative skills though.Practical implicationsFor managers, this study pinpoints a critical reason – employees perceive that they operate in an organizational climate that endorses dysfunctional politics – by which bullying behaviors stimulate desires to leave the organization. It also reveals how this process might be contained by spurring employees' creativity.Originality/valueThis study provides novel insights into the process that underlies the connection between workplace bullying and quitting intentions by revealing the hitherto overlooked roles of employees' beliefs about dysfunctional politics and their own creativity levels.

Organizational identification and employees’ innovative behavior: the mediating role of work engagement and the moderating role of creative self-efficacy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guangning Zhang ◽  
Yingmei Wang
Keyword(s):  
Work Engagement ◽  
Organizational Identification ◽  
Self Efficacy ◽  
Innovative Behavior ◽  
Content Type ◽  
Mediating Role ◽  
Creative Self ◽  
The Relationship ◽  
Moderating Role

Purpose This study aims to investigate the effect of organizational identification to employees’ innovative behavior, the mediating role of work engagement and the moderating role of creative self-efficacy in the relationship between organizational identification and employees’ innovative behavior. Design/methodology/approach This study adopted questionnaires to gather data. The sample of 289 employees working in diverse organizations in China was applied to examine the hypotheses. Findings The results indicates that organizational identification is positively related to employees’ innovative behavior and work engagement mediates the relationship between organizational identification and employees’ innovative behavior. In addition, creative self-efficacy enhances the relationship of work engagement and employees’ innovative behavior. Originality/value This study builds a system from psychological aspect to behavior, which includes the effect of individual cognition to explain the mechanism of organizational identification on employees’ innovative behavior.

The impacts of high-commitment HRM practices on exploitative and exploratory innovation: the mediating role of knowledge sharing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Son Thanh Than ◽  
Phong Ba Le ◽  
Thanh Trung Le
Keyword(s):  
Knowledge Sharing ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Hrm Practices ◽  
The Impact ◽  
The Relationship ◽  
Exploratory Innovation

Purpose The purpose of this paper is to investigate the mediating roles of knowledge sharing behaviors (knowledge collecting and donating) in linking the relationship between high-commitment human resource management (HRM)practices and specific aspects of innovation capability, namely, exploitative and exploratory innovation. Design/methodology/approach The paper is based on quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 281 participants in 95 Chinese firms. Findings The findings of this study support the mediating role of knowledge sharing (KS) behaviors in the relationship between HRM practices and aspects of innovation capability. It highlights the important role of knowledge donating and indicates that the effect of knowledge donating is more significant than that of knowledge collecting on exploitative and exploratory innovation. Research limitations/implications Future research should investigate the impact of high-commitment HRM practices on innovation capability under the moderating effects of organizational variables to bring better understanding on the relationship among them. Originality/value The paper significantly contributes to increasing knowledge and insights on the correlation between high-commitment HRM practices and specific forms of innovation. The understanding on mediating role of KS contribute to advancing the body of knowledge of HRM and innovation theory.

Family ownership and cooperative R&D: the moderating effect of political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Dong ◽  
Xiao Wang ◽  
Jiawen Chen
Keyword(s):  
Family Firms ◽  
Family Ownership ◽  
Content Type ◽  
Political Ties ◽  
Wealth Concentration ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Ability And Willingness

Purpose This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing mechanisms: power concentration and wealth concentration. It also deepens the current understanding of the boundary conditions of informal institutions for the impact of family ownership on cooperative R&D by investigating the moderating role of political ties. Design/methodology/approach The authors analyze a panel of 610 Chinese manufacturing family firms and 2,127 firm-year observations from 2009 to 2017. Fixed effects regression analysis is used to test the hypotheses, with the two-stage Heckman model to address sample selection bias. Findings The research findings indicate that family ownership has an inverted U-shaped relationship with cooperative R&D and political ties moderate the relationship in such a way that the inverted U-shaped relationship will be steeper in firms with more political ties than in firms with fewer political ties. Practical implications Family ownership influences firms’ cooperative R&D through the positive effect of power concentration and the negative effect of wealth concentration. Family owners should, therefore, take advantage of concentrated power, for instance, by adapting quickly and committing sufficient resources to cooperative R&D opportunities, while controlling path-dependent relationship development caused by concentrated family wealth. The effect of political ties on the relationship between family ownership and cooperative R&D is found to be a double-edged sword. Originality/value This study extends the ability and willingness paradox framework and provides novel insights into cooperative R&D in family businesses by integrating power concentration and wealth concentration associated with family ownership. Moreover, this study provides a contingency perspective and introduces the moderating role of political ties in shaping cooperative R&D in family firms.

Organizational injustice and knowledge hiding: the roles of organizational dis-identification and benevolence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sadia Jahanzeb ◽  
Dirk De Clercq ◽  
Tasneem Fatima
Keyword(s):  
Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Knowledge Hiding ◽  
The Relationship ◽  
Sense Of Obligation ◽  
Moderating Role ◽  
Practical Implications ◽  
Organizational Injustice

PurposeWith a basis in social identity and equity theories, this study investigates the relationship between employees' perceptions of organizational injustice and their knowledge hiding, along with the mediating role of organizational dis-identification and the potential moderating role of benevolence.Design/methodology/approachThe hypotheses were tested with three-wave survey data collected from employees in Pakistani organizations.FindingsThe experience of organizational injustice enhances knowledge hiding because employees psychologically disconnect from their organization. This mediation by organizational dis-identification is buffered by benevolence or tolerance for inequity, which reduces employees' likelihood of reacting negatively to the unfavourable experience of injustice.Practical implicationsFor practitioners, this study identifies organizational dis-identification as a key mechanism through which employees' perceptions of organizational injustice spur their propensity to conceal knowledge, and it reveals how this process might be mitigated by a sense of obligation to contribute or “give” to organizational well-being.Originality/valueThis study establishes a more complete understanding of the connection between employees' perceptions of organizational injustice and their knowledge hiding, with particular attention devoted to hitherto unspecified factors that explain or influence this process.

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

Network externalities and the perception of innovation characteristics: mobile banking

2015 ◽  
Vol 33 (4) ◽  
pp. 592-611 ◽  
Author(s):  
Soo Yeong Ewe ◽  
Sheau Fen Yap ◽  
Christina Kwai Choi Lee
Keyword(s):  
Mobile Banking ◽  
Content Type ◽  
Integrative Framework ◽  
Mediating Role ◽  
Innovation Characteristics ◽  
The Impact ◽  
The Relationship ◽  
Technology Anxiety ◽  
Perception Of Innovation

Purpose – The purpose of this paper is to clarify the relationship between the sub-components of network externalities (NE), investigates the mediating role of the perception of innovation characteristics and explores the potential moderating effects of technology anxiety within an integrative framework using the theories of diffusion of innovation (DOI) and NE on the behavioural intention of mobile banking services. NE theory explains the impact of an increase in number of users and complementary services on perceived value of product innovation. Design/methodology/approach – This study clarifies the relationship between the sub-components of NE, investigates the mediating role of the perception of innovation characteristics and explores the potential moderating effects of technology anxiety within an integrative framework using the theories of DOI and NE on the behavioural intention of mobile banking services. NE theory explains the impact of an increase in number of users and complementary services on perceived value of product innovation. Findings – Empirical results support the positive relationship between perceived number of users and availability of complementary services. The results lend support to the hypothesized mediating role of perceived compatibility and perceived complexity on the influence of indirect NE on the intention to use mobile banking. Finally, technology anxiety did not moderate any of the paths postulated in the hypothesized model. Practical implications – The findings suggest that the willingness to adopt mobile banking may be increased by providing and promoting a wide range of complementary services because the availability of complementary services gives the impression that mobile banking is easy to use and is compatible with their lifestyles. Originality/value – This study contributes to the literature on DOI by using NE theory, a theory borrowed from Economics to explain an underlying motivation to adopt an innovation. This is an original study which tests the proposition that NE may influence the perception of innovation characteristics and intention to adopt an innovation.

The influence of organizational justice on job performance

2017 ◽  
Vol 36 (4) ◽  
pp. 542-559 ◽  
Author(s):  
Abdelaziz Swalhi ◽  
Saloua Zgoulli ◽  
Mahrane Hofaidhllaoui
Keyword(s):  
Job Performance ◽  
Organizational Justice ◽  
Affective Commitment ◽  
Content Type ◽  
Mediating Role ◽  
Overall Justice ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to propose two models: the first examines the impact of different dimension of justice (distributive, procedural and interactional) on job performance taking into consideration the mediating role of affective commitment and the second model utilizes the notion of overall justice to predict job performance considering the mediating role of affective commitment. Design/methodology/approach This study was conducted with a sample group of 343 employees working within French small-and medium-sized enterprises (SMEs). Findings The results support the mediating role of affective commitment between organizational justice and job performance and demonstrate that overall justice has a greater effect on affective commitment than specific dimensions of justice. Originality/value The current study is the first to explore the relationship between JP and OJ, with the latter being measured in more than one focus, in the French SMEs. Therefore, this study contributes to bridge the gap in the understanding of the relationship between OJ and JP in the SMEs. In the French context of SMEs, the authors have stressed the relevance of the perception of organizational justice as a factor affecting the behavior and performance of employees which is then reflected in the success of these firms. In this paper the authors propose two models, with significant implications for researchers, managers, and HR departments. The first examines the impact of different dimension of justice (distributive, procedural and interactional) on job performance taking into consideration the mediating role of affective commitment. The second model utilizes the notion of overall justice to predict job performance considering the mediating role of affective commitment.

The impact of transformational leadership on employee creativity: the role of learning orientation

2015 ◽  
Vol 9 (1) ◽  
pp. 78-98 ◽  
Author(s):  
Jeevan Jyoti ◽  
Manisha Dev
Keyword(s):  
Transformational Leadership ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Transformational Leader ◽  
Employee Creativity ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose – This research aims to explore the relationship between transformational leadership and employee creativity. In addition, we intend to study the moderating role played by learning orientation in the relationship between transformational leadership and employee creativity. Design/methodology/approach – Data have been collected from employees working at the Airtel and Aircel call centers of J&K (India). A two-step approach to structural equation modeling (SEM) was applied. Confirmatory factor analysis was conducted to assess the proposed measurement model fit and construct validity. The structural model was generated to test the significance of the theoretical relationships. Findings – The results revealed that there is a positive relationship between transformational leadership and employee creativity, and it is being moderated by learning orientation. Research limitations/implications – Although this study expands our knowledge about the role of learning orientation between transformational leadership and employee creativity, the prospects for further research are still present. The cross-sectional design of study might not have been able to extract the true essence of the cause-and-effect relationship between transformational leadership and employee creativity. Practical implications – Transformational leaders promote followers’ creativity, so the management may find it valuable to invest in transformational leadership training for supervisors and team leaders, or use personality testing to screen for high-caliber candidates, who have high potential of becoming a transformational leader. The characteristics of a transformational leader, when coupled with the learning orientation of employees, yield positive results in the form of employee creativity, which managers can use to generate sustainable competitive advantages for their organizations. Originality/value – This paper is original, as it contributes to existing theory by establishing the moderating role played by learning orientation in between transformational leadership and employee creativity. The moderation has been proved via SEM with the help of latent constructs, which is seldom done.

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