Measuring the effect of investor sentiment on financial distress

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lee M. Dunham ◽  
John Garcia
Keyword(s):  
Social Media ◽  
Financial Distress ◽  
Investor Sentiment ◽  
Data Availability ◽  
Firm Level ◽  
Content Type ◽  
Market Participants ◽  
Distress Level ◽  
The Relationship ◽  
Practical Implications

PurposeThis study examines the effect of firm-level investor sentiment on a firm's level of financial distress.Design/methodology/approachThe authors use Bloomberg's firm-level, daily investor sentiment scores derived from firm-level news and Twitter content in a beta-regression model to explain the variability in a firm's financial distress.FindingsThe results indicate that improvements (deterioration) in investor sentiment derived from both news articles and Twitter content lead to a decrease (increase) in the average firm's financial distress level. We also find that the effect of sentiment derived from Twitter on a firm's financial distress is significantly stronger than the sentiment derived from news articles.Research limitations/implicationsOur proxy for financial distress is Bloomberg's financial distress measures, which may be an imperfect measure of financial distress. Our results have important implications for market participants in assessing the determinants of financial distress.Practical implicationsOur sample period covers four years (2015–2019), which is determined by Bloomberg sentiment data availability.Social implicationsMarket participants are increasingly using social media to express views on firms and seek information that might be used to determine a firm's level of financial distress. Our study links investor sentiment derived from social media (Twitter) and traditional news articles to financial distress.Originality/valueBy examining the relationship between a firm's sentiment and its financial distress, this paper advances our understanding of the factors that drive a firm's financial distress. To our knowledge, this is the first study to link US firms' investor sentiment derived from firm-level news and Twitter content to a firm's financial distress.

Measuring the effect of investor sentiment on liquidity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lee M. Dunham ◽  
John Garcia
Keyword(s):  
Social Media ◽  
Investment Decision ◽  
Investor Sentiment ◽  
Firm Level ◽  
Content Type ◽  
Bid Ask Spread ◽  
Investment Decision Making ◽  
Use Of Social Media ◽  
News Sentiment ◽  
The Relationship

PurposeThe purpose of this paper is to examine the effect of firm-level investor sentiment on a firm's share liquidity.Design/methodology/approachThe authors use Bloomberg's firm-level, daily investor sentiment scores derived from firm-level news and Twitter content in a regression model to explain the variability in a firm's share liquidity.FindingsThe results indicate that improvements (deterioration) in investor sentiment derived solely from Twitter content lead to a decrease (increase) in the average firm's share liquidity. Results, although not as strong, are opposite for investor sentiment derived solely from news articles: improvements (deterioration) in news sentiment leads to an increase (decrease) in the average firm's share liquidity.Research limitations/implicationsThe proxy for share liquidity is the bid-ask spread, which may be an imperfect measure of liquidity. The Amihud illiquidity measure was used as an alternative proxy and yield similar results. The results have important implications for investors in assessing the determinants of share liquidity.Practical implicationsThe sample period covers four years (2015–2018), which is determined by the availability of the Bloomberg sentiment data.Social implicationsInvestors increasing use of social media to express views on particular stocks and seek information that might be used in the investment decision-making process. The study links investor sentiment derived from social media (Twitter) to share liquidity.Originality/valueBy examining the relationship between a firm's sentiment and the firm's share liquidity, this paper advances the authors' understanding of the factors that drive a firm's share liquidity. To the authors' knowledge, this is the first study to link investor sentiment derived from firm-level news and Twitter content to a firm's share liquidity.

scholarly journals Religion, national culture and cross-country differences in the use of trade credit

2019 ◽  
Vol 15 (3) ◽  
pp. 350-370
Author(s):  
Markus Mättö ◽  
Mervi Niskanen
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Trade Credit ◽  
Cultural Dimensions ◽  
Firm Level ◽  
Content Type ◽  
Cross Country ◽  
New Evidence ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate whether religion or national culture can explain previously observed cross-country variation in trade credit. Design/methodology/approach Using the firm-level SME data from 35 European countries, religion and cultural factors of Hofstede and Schwartz, the authors provide new evidence on the determinants of the cross-country variation in trade credit. Findings The results indicate that religion and national culture are associated with trade credit. The authors find that the levels of trade credit are higher in Catholic countries than in Protestant ones and that peoples’ religiousness has an impact on trade credit only in Catholic countries. The authors also find that Hofstede’s cultural dimensions, such as power distance and uncertainty avoidance, are positively associated with trade credit. Practical implications Overall, authors’ findings indicate that religion and national culture are important determinants of trade credit management, and that the association between commonly used cultural values and trade credit depends on the religious, legal, and financial environment. Originality/value To the best of authors’ knowledge, this is the first study to research the relationship between national culture and trade credit.

What is the relationship between marketing of library sources and services and social media? A literature review paper

2020 ◽  
Vol 37 (3) ◽  
pp. 1-5
Author(s):  
Muhammad Anwar ◽  
Tang Zhiwei
Keyword(s):  
Social Media ◽  
Information Science ◽  
Library And Information Science ◽  
Content Type ◽  
Related Literature ◽  
Close Relationship ◽  
The Relationship ◽  
Massive Information ◽  
Library Marketing ◽  
Practical Implications

Purpose The aim of this study is to determine the relationship between social media and libraries in terms of marketing. The present research is to find out the factors and impact as well as the issues related to libraries and marketing using social media. This study will give massive information regarding social media use for the marketing of library sources and services. Design/methodology/approach This study so far has been taken into account to review all the related literature of social media and library marketing. All the related literature studies were reviewed according to the suggested objectives of the study. Findings The present study reveals after reviewing literature that there is a great impact of social media on libraries. The literature shows that social media is the biggest change in the twenty-firstst century for library professionals and librarians. The reviewed literature studies have discovered that the libraries are facing too many challenges and issues to the adoption of social media for the marketing of library sources and services. The collected and analyzed works of the literature indicated that social media would be the best tool to promote library sources and services. Research limitations/implications This research or study can serve the LIS professionals and librarians in the field of library and information science and librarianships that they are looking for the adoption and application of social media in the marketing of library sources and services to the targeted customers. Practical implications This research or study can serve the LIS professionals and Librarians in the field of library and information science and librarianships that they are looking for the adoption and application of social media in the marketing of library sources and services to the targeted customers. Originality/value To the best of the authors’ knowledge, this study is one of the first among those researches that is to disclose the close relationship between social media and libraries in terms of marketing of library sources and services.

Demystifying congruence effects in Instagram in-feed native ads: the role of media-based and self-based congruence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jing Yang ◽  
Mengtian Jiang
Keyword(s):  
Social Media ◽  
Digital Media ◽  
Behavioral Engagement ◽  
Content Type ◽  
Advertising Appeals ◽  
Consumer Experiences ◽  
Subject Experiment ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to examine the kinds of ad appeals and brand types that contribute to perceived ad–media congruence on Instagram and how such congruence influences consumers’ engagement intentions via the interaction of self-related congruence constructs. Additionally, ad intrusiveness was studied as a mediator of the relationship between ad–media congruence and consumers’ behavioral engagement intention. Design/methodology/approach An online 2 (Ad appeal: hedonic vs utilitarian) × 2 (Brand type: hedonic vs utilitarian) between-subject experiment was conducted with four versions of mock-up Instagram in-feed native ads. Findings Results showed that hedonic advertising appeals contributed to ad–media congruence on Instagram, which yielded a lower level of ad intrusiveness and further resulted in higher consumer behavioral engagement intentions. The brand type did not significantly influence participants’ perceptions of ad–media congruence. Moreover, the findings indicate individuals’ brand-self congruence and ad-self congruence were significant moderators in interactions with ad–media congruence in influencing consumers’ behavioral engagement intentions. Practical implications Both brand managers and social media providers can leverage this study’s findings to improve ad effectiveness and consumer experiences in their respective social media landscapes. Specifically, knowing what kind of ad is more congruent and less intrusive, as well as how to better tailor targeting strategies in digital media spaces by building higher ad self- and brand self-congruence, can help them achieve persuasive effects when complying with the Federal Trade Commission disclosure guideline. Originality/value The current study advances extant literature on native advertising by examining the core characteristic of ad–media congruence and its relation to the key metric of social media marketing success – consumer engagement intentions. The findings also extend the congruence theory by examining the interaction effect of media- and self-related congruence constructs.

Social media influence on the B2B buying process

2019 ◽  
Vol 34 (7) ◽  
pp. 1482-1496 ◽  
Author(s):  
Hoda Diba ◽  
Joseph M. Vella ◽  
Russell Abratt
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Media Influence ◽  
Content Type ◽  
Exploratory Approach ◽  
Functional Blocks ◽  
Use Of Social Media ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

Purpose This study aims to explore if and how business-to-business (B2B) companies can use social media to influence the buying process. Design/methodology/approach The study uses an exploratory approach into the existing literature related to the B2B buying process and its relationship with social media. Findings The study shows that companies in a B2B context can use social media as a means of influencing the stages of the buying process by means of using one or more of the seven functional blocks of social media. Research limitations/implications The findings demonstrate the relation that exists between each stage of the buyer process in a B2B organization and the functional blocks of social media. This study opens the door for further research into the influence of each of these blocks on the buying process stages and the roles involved. Practical implications This study identifies how social media’s blocks influence the different stages and how organizations can use that to their benefit. Originality/value Few studies have investigated the use of social media in a B2B context. However, not many have looked into the influence of social media in the B2B buying process and buying center. This study looks into the relationship between the buying process stages and social media’s functional blocks as related to the different roles of the buying center.

scholarly journals Innovation capabilities in agribusiness: evidence from Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Machado Leo ◽  
Guilherme Freitas Camboim ◽  
Ariane Mello Silva Avila ◽  
Fernanda Maciel Reichert ◽  
Paulo Antônio Zawislak
Keyword(s):  
Value Chain ◽  
New Technologies ◽  
Future Research ◽  
Firm Level ◽  
Content Type ◽  
Management And Development ◽  
Management Techniques ◽  
The Relationship ◽  
Chain Links ◽  
Practical Implications

Purpose This paper aims to identify the winning combination of innovation capabilities for selected Brazilian agribusiness firms along different value chain links. Design/methodology/approach Adopting a quantitative approach, the authors analyzed the relationship between innovation capabilities and innovative performance of 300 agribusiness firms through a multi-regression technique. Findings The results showed that transaction, management and development capabilities can improve agribusiness firms’ performance in underdeveloped value chains. Research limitations/implications For future research, the authors recommend analyzing further links such as traders and retailers to find the innovation capability for the entire agribusiness value chain. Practical implications Upstream firms should adopt new management techniques and tools, efficiently using their resources, while downstream firms should absorb and transform new technologies into products and processes. Social implications The authors suggest formulating public policies that propose the recombination of innovation capabilities to organize agribusiness firms and avoid commodity-oriented market dependence. Originality/value The literature on agribusiness explains innovation at the chain level, based primarily on scientific advancements rather than on innovation at the firm level. In this sense, this study provides empirical evidence that can help boost innovation in agribusiness firms.

Effects of Halal social media and customer engagement on brand satisfaction of Muslim customer

2019 ◽  
Vol 11 (6) ◽  
pp. 1671-1689 ◽  
Author(s):  
Syed Alamdar Ali Shah ◽  
Raditya Sukmana ◽  
Bayu Arie Fianto ◽  
Muhammad Ali Ahmad ◽  
Indrianawati Usman Usman ◽  
...  
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Customer Engagement ◽  
Hierarchical Regression ◽  
Content Type ◽  
Google Docs ◽  
Moderation Effects ◽  
The Relationship ◽  
Practical Implications ◽  
Brand Satisfaction

Purpose The purpose of this research is to examine the factors that affect brand satisfaction of a Muslim customer who is making purchases from selling outlets on social media. Design/methodology/approach The study used a new mechanism of sampling for research studies relating to social media which. Further, we used hierarchical regression to analyze the moderation effects of religiosity. Findings The authors’ findings suggest that religiosity has moderation effects on the relationship between halal social media and brand satisfaction of a Muslim customer and even higher moderation effects on relationship between customer engagement and brand satisfaction of a Muslim customer. Research limitations/implications The respondents of this research are completely unknown as the data has been collected from google-docs link sharing arrangement. Practical implications This study identifies factors that need to be focused on winning the brand loyalty of a Muslim customer. Originality/value This study provides a new sampling methodology to be used for the purpose of studies related to social media, which has been labeled as “social-media disguised snow ball sampling”. Further, this study is one of the few studies in the area of “halal social media”.

Heritage-based value of a corporate brand: antecedents and effects on the firm’s financial value

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Woonsun Paek ◽  
Hyerin Ryu ◽  
Sunkyu Jun
Keyword(s):  
Quantitative Research ◽  
Firm Level ◽  
Cross Sectional ◽  
Corporate Brand ◽  
Content Type ◽  
Study Results ◽  
Corporate Brands ◽  
The Relationship ◽  
Positive Effect ◽  
Practical Implications

Purpose The purpose of this study is to show that a corporate brand with a long history coupled with relevance to the present obtains heritage-based value in society and the second aim is to examine a boundary condition in which the heritage-based value of a corporate brand increases the firm’s financial value. Design/methodology/approach A survey was conducted to investigate when and how a corporate brand obtains its heritage-based value in society and archival analysis was conducted to analyze the relationship between the heritage-based value of a corporate brand and the firm’s financial value. Findings The longevity of a corporate brand increased its heritage-based value, particularly when the brand was perceived to be temporally continuous, through the enhancement of authenticity perception and the heritage-based value had a positive effect on the firm’s financial value for younger firms. Research limitations/implications This study extends the benefits of the heritage association of a corporate brand to the firm level but has a limitation in its cross-sectional method. Practical implications The study results justify monetary costs incurred in the course of developing and cultivating a brand’s heritage association. Originality/value It is believed that this study is the first quantitative research examining the relationship between the heritage-based value of corporate brands and firms’ financial value.

International diversification and firm performance: a four-stage model

2016 ◽  
Vol 11 (3) ◽  
pp. 362-375 ◽  
Author(s):  
Alberto Ferraris ◽  
Stefano Bresciani ◽  
Manlio Del Giudice
Keyword(s):  
Multinational Firms ◽  
International Diversification ◽  
Data Availability ◽  
Stage Theory ◽  
Unified Theory ◽  
Content Type ◽  
Final Sample ◽  
And Performance ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the relationship between international diversification (ID) and performance in multinational firms by proposing a new and unified theory of multinationality that incorporates, integrates and extends previous concepts and hypotheses. Design/methodology/approach The study relies on data concerning the world’s largest companies, derived from the Fortune Global 500. An OLS regression analysis has been carried out in order to test a four-stage relationship between ID and performance. Findings On a final sample of 391 multinationals, this paper provides an empirical evidence that support the existence of a four-stage theory by using a relevant sample of “top” multinational firms. Research limitations/implications This study has two main limitations: first, a single indicator was used to measure ID; second, some potential variables have had to be excluded due to data availability. Practical implications This paper offers some intriguing practical implications, as well: first, it points out to some thresholds where performances are higher at certain level of ID; second, it highlights that performance will face two kinds of decreases due to intra-regional and inter-regional liability of foreignness; finally, it individuates differences with regard to some firms’ characteristics such as home or host country’s behaviors and about the kind of industries in which they operate, as well. Originality/value This is one of the first studies that tests and finds positive evidences about a four-stage theory, regarding to the relationship between ID and performance. Moreover, it proposes other interesting results with regard to the differences between home vs host country-oriented firms and between manufacturing vs services multinational firms.

Corporate governance and the variability of stock returns

2014 ◽  
Vol 10 (4) ◽  
pp. 494-510 ◽  
Author(s):  
Hardjo Koerniadi ◽  
Chandrasekhar Krishnamurti ◽  
Alireza Tourani-Rad
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Stock Option ◽  
Data Availability ◽  
Firm Level ◽  
Policy Makers ◽  
Content Type ◽  
Governance Quality ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze the impact of firm-level corporate governance practices on the riskiness of a firm's stock returns. Design/methodology/approach – The authors constructed an index of governance quality incorporating best practices stipulated by regulators. The authors employed regression analysis. Findings – The empirical evidence, using an index of corporate governance, shows that well-governed New Zealand firms experience lower levels of risk, ceteris paribus. In particular, the results indicate that corporate governance aspects such as board composition, shareholder rights, and disclosure practices are associated with lower levels of risk. Research limitations/implications – A limitation of the study is that the corporate governance index constructed is somewhat arbitrary and due to limitation of data availability the authors may have excluded some factors such as share trading policy of directors and policies regarding provision of non-auditing services by auditors. The research supports the view that institutional context could have an impact on governance outcomes. The work has three implications for managers, investors, and policy makers. First, the results imply that well-governed firms have lower idiosyncratic risk and that this reduction is most likely due to the reduction in agency costs and information risk. Second, in the absence of features like an active corporate control market and stock option based managerial compensation, managers have little incentives to take on risky projects that increase firm value. Third, the results suggest that the managers of well-governed firms are not more risk averse with respect to investment decisions compared to poorly governed firms. Practical implications – The work has practical implications for managers, investors, and policy makers. Well-governed firms face lower variability in stock returns compared to poorly governed firms. Firms that have independent boards that protect its shareholders’ rights and disclose its governance-related policies experience lower firm-level risk, other things being equal. Originality/value – This study is the first one to examine the impact of a composite measure of corporate governance quality on stock return variability in a non-US setting. The results suggest that firms can use specific corporate governance provisions to mitigate firm-level risk. The findings of the paper are therefore relevant and useful to corporate managers, investors, and policy makers.

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