Managerial incentives and accounts receivable management policy

2018 ◽  
Vol 44 (7) ◽  
pp. 865-884 ◽  
Author(s):  
Haibo Yao ◽  
Yiling Deng
Keyword(s):  
Ceo Compensation ◽  
Market Value ◽  
Equity Market ◽  
Management Policy ◽  
External Financing ◽  
Content Type ◽  
Accounts Receivable ◽  
Negative Relation ◽  
Regression Methods ◽  
Compensation Incentives

Purpose Previous research has documented that high vega CEOs increase R&D investment (Coles et al., 2006) and liquidity (Liu and Mauer, 2011), but provided little clue about how those CEOs get the necessary resources to support those choices. Frankel et al. (2016) highlight firms’ compensation incentives to manipulate working capital components, the authors use accounts receivable as an example to illustrate. The paper aims to discuss these issues. Design/methodology/approach The authors employ sorting, and various regression methods and adjust the Faulkender and Wang (2006) model to test two hypotheses. Findings The authors find a negative relation between managerial risk-taking incentives (vega) and accounts receivable and a negative relation between vega and the market value of accounts receivable to shareholders. Research limitations/implications The authors do not compare PPE investment, external financing with accounts receivable to figure out whether accounts receivable is better and more efficient to adjust. Practical implications The evidence primarily supports the internal allocation hypothesis that high vega managers reduce the accounts receivable investment and that the equity market discounts the value of accounts receivable for high vega firms. Social implications Equity holders should consider the internal allocation effect when setting CEO compensation incentives, also they should be cautious when CEOs change their accounts receivable management policy. The equity market discounts the value of accounts receivable for high vega firms. Originality/value This study provides important information about the CEO compensation incentives, a new explanation about the formation of accounts receivable management policy, and the market value implication of accounts receivable.

scholarly journals The joint effects of lead time, information sharing, and the accounts receivable period on reverse factoring

2019 ◽  
Vol 120 (1) ◽  
pp. 215-230
Author(s):  
Qiuping Huang ◽  
Xiande Zhao ◽  
Min Zhang ◽  
KwanHo Yeung ◽  
Lijun Ma ◽  
...  
Keyword(s):  
Information Sharing ◽  
Lead Time ◽  
Design Methodology ◽  
Manufacturing Firms ◽  
Content Type ◽  
Accounts Receivable ◽  
Joint Effects ◽  
Regression Methods ◽  
Positive Direct ◽  
Time Information

Purpose The purpose of this paper is to empirically investigate the joint effects of lead time, information sharing and the accounts receivable period on reverse factoring (RF) adoption from the suppliers’ perspective. Design/methodology/approach Supported by one of the largest commercial banks in China, survey data are collected from 424 Chinese manufacturing firms and analyzed using regression methods. Findings The results suggest that lead time positively affects suppliers’ RF adoption directly and indirectly through the accounts receivable period. Meanwhile, information sharing has a positive, direct and a negative, indirect influence on suppliers’ RF adoption. Originality/value The findings give suppliers and financial institutions a better understanding of how to leverage the benefits of RF.

Corporate governance, CEO compensation and tax aggressiveness

2016 ◽  
Vol 15 (4) ◽  
pp. 445-462 ◽  
Author(s):  
Khamoussi Halioui ◽  
Souhir Neifar ◽  
Fouad Ben Abdelaziz
Keyword(s):  
Corporate Governance ◽  
Ceo Compensation ◽  
Great Influence ◽  
Audit Fees ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Negative Relation ◽  
Interactive Decision Making

Purpose The purpose of this paper is to examine the effect of corporate governance structure and CEO compensation on the level of tax aggressiveness. Design/methodology/approach This work analyzes a sample of 471 observations of 100 companies listed on the NASDAQ 100 for the period 2008-2012. It uses a fixed-effect panel model to analyze the effect of different model variables on the tax aggressiveness level. Findings The main finding of this study is the great influence of corporate governance structure and CEO compensation on reducing tax aggressiveness. Indeed, it finds a significant negative relation between board size, CEO salary, CEO stock options and tax aggressiveness. In addition, the study reveals that there is a direct negative relation between CEO duality, tax fees and tax aggressiveness. Research limitations/implications The study was conducted using robust methods to test the effect of corporate governance structure and CEO compensation on tax aggressiveness level. The generalized least squares method was used to fit panel data and overcome heteroscedasticity and autocorrelation problems. The aim of the study was to prove the great effect of both corporate governance structure and CEO compensation on reducing tax aggressiveness. As this study was based on data from American companies, the results cannot be generalized to all contexts. Originality/value This paper differs from previous work and tests the effect of corporate governance structure, CEO compensation, CEO characteristics and audit fees on tax aggressiveness. The findings of this study will enrich the literature on tax aggressiveness by suggesting that corporate governance structure and CEO compensation can significantly limit tax aggressiveness behavior. Therefore, shareholders must be aware of these two variables. They need to limit tax aggressiveness behavior, as it is usually accompanied by rent diversion, as reported by Desai and Dharmapala (2006). Therefore, these findings will be helpful to investors, managers and regulators because they have implications for the interactive decision-making process.

Estimating defaults in organized security lending markets

2016 ◽  
Vol 24 (3) ◽  
pp. 343-362
Author(s):  
Latif Cem Osken ◽  
Ceylan Onay ◽  
Gözde Unal
Keyword(s):  
Credit Risk ◽  
Stock Returns ◽  
Stock Price ◽  
Price Volatility ◽  
Equity Market ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Central Counterparties ◽  
Risk Determinants

Purpose This paper aims to analyze the dynamics of the security lending process and lending markets to identify the market-wide variables reflecting the characteristics of the stock borrowed and to measure the credit risk arising from lending contracts. Design/methodology/approach Using the data provided by Istanbul Settlement and Custody Bank on the equity lending contracts of Securities Lending and Borrowing Market between 2010 and 2012 and the data provided by Borsa Istanbul on Equity Market transactions for the same timeframe, this paper analyzes whether stock price volatility, stock returns, return per unit amount of risk and relative liquidity of lending market and equity market affect the defaults of lending contracts by using both linear regression and ordinary least squares regression for robustness and proxying the concepts of relative liquidity, volatility and return constructs by more than variable to correlate findings. Findings The results illustrate a statistically significant relationship between volatility and the default state of the lending contracts but fail to establish a connection between default states and stock returns or relative liquidity of markets. Research limitations/implications With the increasing pressure for clearing security lending contracts in central counterparties, it is imperative for both central counterparties and regulators to be able to precisely measure the risk exposure due to security lending transactions. The results gained from a limited set of lending transactions merit further studies to identify non-borrower and non-systemic credit risk determinants. Originality/value This is the first study to analyze the non-borrower and non-systemic credit risk determinants in security lending markets.

Participative work design in lean production

2015 ◽  
Vol 27 (1) ◽  
pp. 19-33 ◽  
Author(s):  
Annika Lantz ◽  
Niklas Hansen ◽  
Conny Antoni
Keyword(s):  
Decision Making ◽  
Team Learning ◽  
Lean Production ◽  
Job Design ◽  
Learning Processes ◽  
Management Policy ◽  
Shop Floor ◽  
Content Type ◽  
Proactive Behaviour ◽  
The Relationship

Purpose – The purpose of this paper is to explore job design mechanisms that enhance team proactivity within a lean production system where autonomy is uttermost restricted. We propose and test a model where the team learning process of building shared meaning of work mediates the relationship between team participative decision-making, inter team relations and team proactive behaviour. Design/methodology/approach – The results are based on questionnaires to 417 employees within manufacturing industry (response rate 86 per cent) and managers’ ratings of team proactivity. The research model was tested by mediation analysis on aggregated data (56 teams). Findings – Team learning mediates the relationship between participative decision-making and inter team collaboration on team proactive behaviour. Input from stakeholders in the work flow and partaking in decisions about work, rather than autonomy in carrying out the work, enhance the teams’ proactivity through learning processes. Research limitations/implications – An investigation of the effects of different leadership styles and management policy on proactivity through team-learning processes might shed light on how leadership promotes proactivity, as results support the effects of team participative decision-making – reflecting management policy – on proactivity. Practical implications – Lean production stresses continuous improvements for enhancing efficiency, and such processes rely on individuals and teams that are proactive. Participation in forming the standardization of work is linked to managerial style, which can be changed and developed also within a lean concept. Based on our experiences of implementing the results in the production plant, we discuss what it takes to create and manage participative processes and close collaboration between teams on the shop floor, and other stakeholders such as production support, based on a shared understanding of the work and work processes. Social implications – Learning at the workplace is essential for long-term employability, and for job satisfaction and health. The lean concept is widely spread to both public bodies and enterprises, and it has been shown that it can be linked to increased stress and an increase in workload. Finding the potential for learning within lean production is essential for balancing the need of efficient production and employees’ health and well-being at work. Originality/value – Very few studies have investigated the paradox between lean and teamwork, yet many lean-inspired productions systems have teamwork as a pillar for enhancing effectiveness. A clear distinction between autonomy and participation contributes to the understanding of the links between job design, learning processes and team proactivity.

A model for the elaboration of fair divisional projects in inheritance disputes

2018 ◽  
Vol 36 (2) ◽  
pp. 186-202
Author(s):  
Francesco Tajani ◽  
Pierluigi Morano
Keyword(s):  
Design Methodology ◽  
Market Value ◽  
Content Type ◽  
Mathematical Formulas ◽  
Mathematical Algorithms ◽  
Complex Inheritance ◽  
Fundamental Value ◽  
Definition Of ◽  
Calculation Software ◽  
Legal Right

Purpose The purpose of this paper is to develop a method to support the definition of efficient and fair divisional projects in particularly complex cases concerning inheritance disputes. Design/methodology/approach First, the approach involves an appraisal of the market value of the assets, along with an analysis of the respective conditions of concrete divisibility; then, two mathematical models have been developed for the assignment of the assets to the subjects involved in the divisional projects. The logic underlying of both models has been translated into mathematical algorithms that allow for the minimization of the monetary compensations resulting from the differences between the legal right shares and the actual portions to be attributed to them. Findings Both models have been developed through mathematical formulas that can be easily implemented by using an appropriate calculation software. They can be used in particularly complex inheritance divisions, in which the deceased’s assets are numerous and there are several heirs with similar or different legal right shares. Originality/value The methodology is useful in the disputes that could arise in hereditary successions. The fundamental value is that the models could support the definition of the best solution in particularly complex situations, characterized by a large number of assets to be assigned and/or the existence of “preferential” constraints for the assignment of the assets.

Drivers of the experience value of mobile money transfer service: Senegaleseuser perspectives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ndeye Astou Manel Fall ◽  
Fatou Diop-Sall ◽  
Ingrid Poncin
Keyword(s):  
Value Creation ◽  
Behavioral Intentions ◽  
Individual Characteristics ◽  
Customer Relationship ◽  
Management Policy ◽  
Business Practices ◽  
Service Market ◽  
Content Type ◽  
Mobile Money ◽  
Money Transfer

Purpose Digital service innovations have enabled service market access, transforming Africa. This paper aims to investigate individual and contextual drivers of experience value of mobile money transfer (MMT) service during post-adoption given impacts of individual/cultural characteristics in Senegal. Design/methodology/approach Mixed methods. Study 1 qualitatively investigates the effects of individual-contextual drivers on the experience value of MMT and behavioral intentions. Study 2 quantitatively tests the main causal effects between drivers and MMT. Findings Conceptual models of experience value including ethical and social dimensions proposed in MMT are positively related to behavioral intentions. Need for social interaction (NSI), self-efficacy (SEFF) and social pressure (SP) – sources of experience value creation/destruction – must be integrated into business practices. Results show the indirect positive influence of NSI on behavioral intentions through MMTs experience value. Moreover, traditional cultural orientation (TCO) is a source of value creation/destruction. Managers should build ethical relations with users, integrate social functions in MMT and understand users’ cultural and individual characteristics for better customer relationship management policy. Originality/value Few studies examine how MMT experience creates/destroys value in a Sub-Saharan African context, specifically in Senegal. The authors show that SP might destroy value and reveal how individual variables such as SEFF, NSI and TCO affect experience value creation/destruction. Surprisingly, NSI creates value, revealing MMT as hybrid self-service technology.

Are mom-and-pop and professional hosts actually competing against hotels?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruggero Sainaghi ◽  
Rodolfo Baggio
Keyword(s):  
Mutual Information ◽  
Design Methodology ◽  
Management Policy ◽  
Seasonal Patterns ◽  
Content Type ◽  
Rhythmic Behavior ◽  
Direct Competition ◽  
Information Metric ◽  
Fierce Competition ◽  
Practical Implications

Purpose This paper aims to examine the question of whether commercial, peer-to-peer accommodation platforms (Airbnb, in particular) and hotels are in fierce competition with each other with the possible presence of substitution threats, and compares the time series of the occupancy values across two supplier types. Design/methodology/approach The cities of Milan and Rome are used as case studies for this analysis. To assess the extent of synchronization, the series of Airbnb and hotels are transformed into a series of symbols that render their rhythmic behavior, and a mutual information metric is used to measure the effect. Findings The results show that Airbnb hosts and hotels have different seasonal patterns. The diverse occupancy trends support the absence of direct competition between Airbnb and hotels. The findings are consistent in the two analyzed cities (Milan and Rome). Interestingly, there are higher similarities between seasonal occupancy series of Airbnb listings in Milan and Rome, on one side, and hotels in Milan and Rome, on the other, than between Airbnb and hotels in the same city. Research limitations/implications The findings show a progressive de-synchronization (within mutual information) among the five groups of Airbnb hosts triggered by the rising professionalization degree. This result suggests the existence of a partial different business model for multi-listing hosts. Practical implications The study illustrates an absence of any substitution threat between Airbnb and hotels in both cities. This could have important consequences, especially for the pricing and revenue management policy. In fact, the higher the substitution threat, the higher the attention that Airbnb entrepreneurs should pay to the pricing strategy implemented by hotels, and vice versa. Originality/value This study sheds new light on the competition threat between Airbnb and hotels. In this study, hotels and Airbnb hosts appear as two very separate markets.

Determining the factors affecting the technical efficiency scores of public hospitals using different regression methods

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bayram Şahin ◽  
Gülnur İlgün ◽  
Seda Sönmez
Keyword(s):  
Public Hospitals ◽  
Regression Analyses ◽  
Tobit Regression ◽  
Control Variables ◽  
Content Type ◽  
Factors Affecting ◽  
Provincial Level ◽  
Regression Methods ◽  
Input And Output ◽  
Dea Method

PurposeThis study aims to identify the efficiency scores of hospitals affiliated to the Ministry of Health in Turkey between the years of 2010–2015 at provincial level and to reveal the factors that affect the efficiency scores.Design/methodology/approachThe two-stage data envelopment analysis (DEA) method was used to achieve the study purpose. In the first stage, DEA method based on input-oriented Charnes–Cooper–Rhodes (CCR) model was performed to calculate the efficiency scores of public hospitals at the provincial level between 2010 and 2015, and in the second stage, Tobit regression and linear regression analyses were used to identify whether the efficiency scores of provinces are affected by the input, output and control variables.FindingsUpon the analysis, the average efficiency scores of 81 provinces by years were found to vary between 0.79 and 0.89. According to both regression analyses, all of the input and output variables were found to have significant effects on the efficiency scores of provinces while only the population of province among the control variables was identified as the factor with an effect on the efficiency scores of provinces (p < 0.05).Practical implicationsThe results of this study are thought to guide health policymakers and managers in terms of both determining efficient and inefficient hospitals at the provincial level and revealing which variables should be taken into account in order to increase efficiency.Originality/valueThe study differs from previous studies on the efficiency of hospitals. First, although previous studies were generally descriptive studies to determine the efficiency level of hospitals, this study is an analytical study that tries also to show the factors affecting the efficiency of hospitals. In addition, while examining the effect of input and output variables on efficiency scores, control variables were also included in the study.

Simple correlations for calculating NHTPB enthalpy of formation through molecular structures

2019 ◽  
Vol 15 (1) ◽  
pp. 258-264 ◽  
Author(s):  
Hamid Reza Ghaieni ◽  
Saeed Tavangar ◽  
Mohammad Moein Ebrahimzadeh Qhomi
Keyword(s):  
Enthalpy Of Formation ◽  
Design Methodology ◽  
Predictive Power ◽  
Cross Validation ◽  
Molecular Structures ◽  
Mean Square ◽  
Mean Square Deviation ◽  
Simple Correlation ◽  
Content Type ◽  
Regression Methods

Purpose The purpose of this paper is to present simple correlation for calculating nitrated hydroxyl-terminated polybutadiene (NHTPB) enthalpy of formation. Design/methodology/approach It uses multiple linear regression methods. Findings The proposed correlation has determination coefficient 0.96. The correlation has root mean square deviation and the average absolute deviations values 53.4 and 46.1 respectively. Originality/value The predictive power of correlation is checked by cross-validation method (R2=0.96, Q L O O 2 = 0.96 ).

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