A reconsideration of operating-financial leverage tradeoff hypothesis

2018 ◽  
Vol 10 (4) ◽  
pp. 473-483 ◽  
Author(s):  
Michael T. Dugan ◽  
Simon K. Medcalfe ◽  
Sang Hyun Park
Keyword(s):  
Design Methodology ◽  
Manufacturing Industry ◽  
Empirical Test ◽  
Empirical Testing ◽  
Switching Regression ◽  
Financial Leverage ◽  
Content Type ◽  
Academic Researchers ◽  
Operating Leverage ◽  
The Impact

Purpose This paper aims to attempt to perform a test of the operating leverage-financial leverage tradeoff hypothesis that is more methodologically consistent with the logical framing of the hypothesis appearing in the Mandelker and Rhee (1984) paper. Design/methodology/approach The paper uses a sample of firms from the manufacturing industry to estimate their degree of operating leverage and degree of financial leverage coefficients. The switching regression methodology is then used to perform the empirical test of the tradeoff hypothesis. Findings The results suggest that firms tradeoff their operating and financial leverage during good economic times, but do not engage in the tradeoff behavior during recessionary times. Originality/value This paper refines the empirical testing of the tradeoff hypothesis using the innovative switching regression methodology. The paper also has important implications for the impact of firms’ risk on the capital markets as well as the economy as a whole, and for academic researchers in financial economics examining the relationships between operating and financial leverage and various firm-specific variables.

Marketing culture to service climate: the influence of employee control and flexibility

2014 ◽  
Vol 28 (6) ◽  
pp. 498-508 ◽  
Author(s):  
Tyler R. Morgan ◽  
Adam Rapp ◽  
R. Glenn Richey, Jr. ◽  
Alexander E. Ellinger
Keyword(s):  
Design Methodology ◽  
Hospitality Industry ◽  
Boundary Spanning ◽  
Service Climate ◽  
Empirical Testing ◽  
Content Type ◽  
And Control ◽  
Managerial Level ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this research is to explore how firm market orientation, as a culture, affects the service climate that develops in the firm. Design/methodology/approach – Empirical testing is performed at the managerial level and boundary-spanning employee level as part of this multilevel study. The sample includes participants from a US-based firm operating in the hospitality industry. Findings – Results indicate that a market-oriented firm culture interacts with other elements such as boundary-spanning employee flexibility and control to positively impact the service climate that develops. Research limitations/implications – This research provides theoretical implications for the development of a service climate within a market-oriented firm culture and the influence of managers on boundary-spanning employees in the development of the climate. Practical implications – As managers attempt to develop a service climate through a market-oriented firm culture, they will find success by providing boundary-spanning employees with control and hiring employees that possess flexibility as a personality trait. Originality/value – The framework developed in this research provides insights regarding the multilevel nature of service climate development and the impact of a market-oriented culture.

The estimation of leverage coefficients in corporate finance research: a review of the literature

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael T. Dugan
Keyword(s):  
Literature Review ◽  
Corporate Finance ◽  
Design Methodology ◽  
Future Research ◽  
Review Of The Literature ◽  
Financial Leverage ◽  
Content Type ◽  
Estimation Techniques ◽  
Empirical Corporate Finance ◽  
Operating Leverage

Purpose The purpose of this paper is to provide a literature review of elasticity-based techniques for the estimation of the degree of operating leverage (DOL) and the degree of financial leverage (DFL) in empirical corporate finance research. Design/methodology/approach This paper describes the specific details of the estimation of DOL and DFL coefficients under both of the primary estimation techniques and documents the econometric properties of the estimates derived from each techniques. Findings There are tradeoffs between the two techniques, as each technique has both appealing and limiting features. Originality/value This paper indicates how each of the two techniques possesses limitations and suggests that future research should attempt to develop estimation techniques that overcome those limitations.

scholarly journals Executive bonus compensation and financial leverage: do growth and executive ownership matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emmanuel Adu-Ameyaw ◽  
Albert Danso ◽  
Samuel Acheampong ◽  
Cynthia Akwei
Keyword(s):  
Design Methodology ◽  
Firm Growth ◽  
Econometric Models ◽  
Financial Leverage ◽  
Content Type ◽  
Econometric Methods ◽  
Corporate Executive ◽  
Using Data ◽  
The Impact

Purpose This study aims to examine the impact of executive bonus compensation on a firm’s financial leverage policy and the extent to which this compensation–leverage relation is moderated by firm growth and executive ownership. Design/methodology/approach Using data from 213 non-financial and non-utility UK FTSE 350 firms for the period 2007–2015, generating a total of 1,784 firm-year observations, panel econometric methods are used to test the model. Findings Drawing insights from agency theoretic view, this paper uncovers that managerial cash bonus compensation is negatively and significantly related to financial leverage. However, stock bonus compensation has a positive and significant impact on leverage. This study also observes that compensation–leverage is moderated by both firm growth and executive ownership. The results remain robust to alternative econometric models. Originality/value While this paper builds on the risk-motivated argument of executive bonus compensation literature, it is the first – to the best of the knowledge – to explore the bonus compensation-corporate financial leverage and, particularly, examine the extent to which firm growth and corporate executive ownership matter in this relationship.

Impact of wash types and stitching parameters on shrinkage of knitwear made from pique fabric

2019 ◽  
Vol 31 (2) ◽  
pp. 232-242
Author(s):  
Muhammad Babar Ramzan ◽  
Abher Rasheed ◽  
Zulfiqar Ali ◽  
Sheraz Ahmad ◽  
Muhammad Salman Naeem ◽  
...  
Keyword(s):  
Dimensional Stability ◽  
Design Methodology ◽  
Manufacturing Industry ◽  
Critical Problem ◽  
Body Width ◽  
Knitted Fabrics ◽  
Content Type ◽  
Factors Affecting ◽  
Stitch Density ◽  
The Impact

Purpose In the field of knitwear, dimensional stability is assumed as a critical problem that affects the quality and salability of a product. Although much work has been done in this area with a focus on the factors affecting fabric shrinkage, however, there is a lack of work on knitwears with respect to their dimensional stability. The purpose of this paper is to investigate the impact of stitching parameters and wash types on the dimensional properties of knitwear. Design/methodology/approach The crew-neck t-shirts were prepared by using pique knitted fabrics. Different sewing and finishing parameters were used that include stitch density, stitch type, stitching thread and wash type. The critical measurements of the selected garment are taken as output variables which are body width, sleeve length, body length and across shoulder. After laundering process, shrinkage percentage was calculated by using before-wash and after-wash measurements. Findings This study shows that the stitching parameters affect significantly on knitwear’s shrinkage. Thus, when patterns are being developed for the cutting of fabric, expected shrinkage, known as residual shrinkage, must be considered to avoid unexpected changes in garment shape. Originality/value This research will be useful for knitwear manufacturing industry.

The effects of materialism on consumer evaluation of sustainable synthetic (lab-grown) products

2020 ◽  
Vol 37 (5) ◽  
pp. 579-590
Author(s):  
Jessica Keech ◽  
Maureen Morrin ◽  
Jeffrey Steven Podoshen
Keyword(s):  
Design Methodology ◽  
Socially Responsible ◽  
Content Type ◽  
Consumer Evaluation ◽  
Positioning Strategy ◽  
Consumer Markets ◽  
The Future ◽  
Promotion Strategies ◽  
Alternative Sources ◽  
The Impact

Purpose The increasing desire of consumers for socially responsible luxury products combined with fluctuating supplies in consumer markets are leading various industries to seek alternative sources to be able to meet the needs of its customers. One possible solution that may meet the demands of the future is lab-grown products. Because these products confer multiple benefits, this study aims to investigate the most effective ways to appeal to consumers by aligning the benefits of the products with their values as marketers seek to find effective promotion for these items. Design/methodology/approach We examine the effectiveness of an ethical positioning strategy for two types of luxury lab-grown (synthetic) products among high versus low materialism consumers in three experiments. Findings Findings suggest that a positioning strategy stressing product ethicality is more effective for low materialism consumers, whereas the strategy is less effective, and may even backfire, for high materialism consumers. The impact on social status consumers perceive from a lab-grown product explains why this effect occurs among low materialism consumers. Therefore, marketers should take caution and use specific appeals for different segments based on values such as consumers’ materialism levels. Originality/value If lab-grown products represent the wave of the future, it is important to understand how consumers will respond to this emerging technology and how promotion strategies may enhance their evaluation.

Embedding employability within higher education for the profession of policing

2019 ◽  
Vol 9 (3) ◽  
pp. 319-328
Author(s):  
Ian Pepper ◽  
Ruth McGrath
Keyword(s):  
Higher Education ◽  
Design Methodology ◽  
Research Study ◽  
Longitudinal Research ◽  
Evidence Base ◽  
Content Type ◽  
Educational Provision ◽  
Professional Body ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate the impact of an employability module, the College of Policing Certificate in Knowledge of Policing (CKP), on students’ career aspirations, their confidence and wish to join the police along with the appropriateness of the module. This will inform the implementation of employability as part of the College of Policing-managed Police Education Qualifications Framework (PEQF). Design/methodology/approach A three-year longitudinal research study used mixed methods across four points in time to evaluate the impact on students studying the employability module. Findings The research suggests that the employability-focussed CKP was useful as an introduction to policing, it developed interest in the police and enhanced the confidence of learners applying to join. Lessons learnt from the CKP should be considered during the implementation of the PEQF. Research limitations/implications The ability to generalise findings across different groups is limited as other influences may impact on a learner’s confidence and employability. However, the implications for the PEQF curriculum are worthy of consideration. Practical implications As the police service moves towards standardised higher educational provision and evolution of policing as a profession, lessons can be learnt from the CKP with regards to the future employability of graduates. Originality/value Enhancing the employability evidence base, focussing on policing, the research identified aspects which may impact on graduates completing a degree mapped to the PEQF. The research is therefore of value to higher education and the professional body for policing.

scholarly journals Monopoly behavior of China’s manufacturing enterprises

2019 ◽  
Vol 2 (1) ◽  
pp. 157-179
Author(s):  
Guidong Wang
Keyword(s):  
Design Methodology ◽  
Manufacturing Industry ◽  
Rent Seeking ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
Slow Decline ◽  
State Capital ◽  
The Government ◽  
Do So ◽  
Initial Jump

Purpose With the increase of state capital, corporate total factor productivity (TFP) has a tendency to jump up at first and then slowly decrease. Generally, no significant “productivity paradox” can be observed in China’s manufacturing industry. With the increase of export density, corporate TFP also shows a trend of initial jump growth and subsequent slow decline. This paper aims to discuss these issues. Design/methodology/approach Using the 1996–2013 China Industrial Enterprise Database, this paper studies the monopolistic behavior of Chinese manufacturing enterprises through the measurement of TFP and corporate monopoly power. Findings Results show that China’s manufacturing monopoly enterprises are generally innovation-oriented rather than rent-seeking. However, there are certain differences between diversified types of monopoly enterprises: the ones with state capital are more inclined to innovate than those without, whereas the ones with export delivery value are more inclined to seek rent than those without. Originality/value Therefore, the government should implement differentiated policies for diversified types of monopoly enterprises, and do so in a targeted manner fully reflecting the containment of rent-seeking and the encouragement of innovation.

Investigation on the shaft voltage generation of large synchronous turboalternators

2020 ◽  
Vol 39 (5) ◽  
pp. 1145-1156
Author(s):  
Kevin Darques ◽  
Abdelmounaïm Tounzi ◽  
Yvonnick Le-menach ◽  
Karim Beddek
Keyword(s):  
Finite Element ◽  
Design Methodology ◽  
Short Circuit ◽  
Element Model ◽  
Stator Winding ◽  
Content Type ◽  
Voltage Generation ◽  
The Impact ◽  
Investigation Process ◽  
Circulating Currents

Purpose This paper aims to go deeper on the analysis of the shaft voltage of large turbogenerators. The main interest of this study is the investigation process developed. Design/methodology/approach The analysis of the shaft voltage because of several defects is based on a two-dimensional (2D) finite element modeling. This 2D finite element model is used to determine the shaft voltage because of eccentricities or rotor short-circuit. Findings Dynamic eccentricities and rotor short circuit do not have an inherent impact on the shaft voltage. Circulating currents in the stator winding because of defects impact the shaft voltage. Originality/value The original value of this paper is the investigation process developed. This study proposes to quantify the impact of a smooth stator and then to explore the contribution of the real stator winding on the shaft voltage.

Gated communities in Ankara: are they a tool of social segregation?

2017 ◽  
Vol 10 (5) ◽  
pp. 687-702
Author(s):  
Leyla Alkan-Gökler
Keyword(s):  
Socioeconomic Status ◽  
Design Methodology ◽  
Gated Communities ◽  
Content Type ◽  
Positive View ◽  
Social Segregation ◽  
Show Evidence ◽  
Local Residents ◽  
Almost All ◽  
The Impact

Purpose Gated communities, surrounded by walls or fences, have emerged as a new trend in almost all cities in Turkey, and are homogenous in terms of the socioeconomic status of their occupants. Within these communities, several facilities and services are provided that are available only to the residents, with restrictions on access from the outside, and this has led to criticisms of social segregation. This study aims to analyze the impact of these communities on social segregation in Ankara, through two different surveys aimed at investigating the attitudes of the residents of local neighborhoods and gated communities toward each other. Design/methodology/approach This paper analyzes how the process of gating has affected social segregation in Ankara through two separate surveys: with the residents of gated communities and with the residents of local neighborhoods around these gated communities. Findings The study revealed that the residents of gated communities tended to have a positive view of the residents of local neighborhoods. In contrast, the responses of the local residents show evidence of feelings of social segregation, based on the presence of the high walls, fences and guards that are in place to keep them out of the community. Originality/value This study shows that, although segregation from the rest of the society is not the main reason for gating, the emergence of gated communities in Ankara leads inevitably to a socially and economically segregated city in which local residents feel excluded from these gated areas.

Does knowing overcome wanting? The impact of consumer knowledge and materialism upon credit card selection with young consumers

2015 ◽  
Vol 16 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Jakob Cakarnis ◽  
Steve Peter D'Alessandro
Keyword(s):  
Comparative Study ◽  
Survey Research ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Consumer Knowledge ◽  
Content Type ◽  
Young Professionals ◽  
The Impact ◽  
Selection Of

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

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