After a market panic: cash is king

2014 ◽  
Vol 40 (5) ◽  
pp. 506-534 ◽  
Author(s):  
Garrett C.C. Smith
Keyword(s):  
Design Methodology ◽  
Implied Volatility ◽  
Cash Holdings ◽  
Market Uncertainty ◽  
Cross Sectional ◽  
Financial Flexibility ◽  
Content Type ◽  
Excess Cash ◽  
Debt Capacity ◽  
High Uncertainty

Purpose – The purpose of this paper is to examine the effects of financial flexibility as represented by excess cash holdings and debt capacity upon firm returns after periods of high market uncertainty. Design/methodology/approach – Days of high uncertainty are identified from 1987-2011 using the VXO Index (implied volatility of the S&P 100) yielding approximately 45,000 firm events. The main variables of interest are excess cash (Duchin et al., 2010) and debt capacity. Two financial constraint indexes are used as controls in a cross-sectional OLS regression. Findings – The precautionary value of cash during and after times of uncertainty is beneficial. A positive relationship exists for periods of up to two years following the initial day of high uncertainty. Positive BHRs exist on a zero-cost trade investing in a portfolio of high excess cash firms and shorting a portfolio of cash constrained firms. The value of excess debt capacity, on the other hand, is harder to discern; positive profits are obtainable on a zero-cost trade while regression estimates are typically insignificant on average. Originality/value – This paper expands the financial flexibility literature by testing the effects of financial flexibility on returns following days of high market uncertainty.

The effect of managerial horizon on cash holdings

2019 ◽  
Vol 45 (8) ◽  
pp. 1092-1110
Author(s):  
Sanjib Guha ◽  
Niazur Rahim
Keyword(s):  
Design Methodology ◽  
Cash Holdings ◽  
Previous Literature ◽  
Cash Holding ◽  
Firm Characteristics ◽  
Current Compensation ◽  
Content Type ◽  
Ceo Age ◽  
Excess Cash ◽  
Managerial Horizon

Purpose US corporations are now sitting on an enormous stockpile of cash. Instead of investing their resources and creating jobs, the firms are holding on to excess cash. Academicians and practitioners alike have tried to fathom the reasons why companies are holding on to so much cash. Numerous studies have talked about the various motives for holding cash. Many researchers have tried to correlate excess cash holding with particular firm characteristics. The purpose of this paper is to study the correlations that exist between excess cash holding and some measurable managerial characteristics. Design/methodology/approach Four different measures of managerial horizon (MH) were constructed. The first two constructs (MH1 and MH2) are based on the CEO’s age and how long he has been the CEO of the company. The next two constructs (MH3 and MH4) are based on compensation, proportion of current compensation and proportion of future compensation. This paper tries to examine if MH has any impact on excess cash holding. Findings The results clearly show that the CEO age and the proportion of CEO’s compensation (current and future) do determine level of cash holding in the company. Younger CEOs hold more cash compared to older CEOs. Older CEOs hold less cash suggesting that as CEOs grow older they might be motivated by the idea of leaving a long lasting legacy. CEOs who receive more of their compensation in future payments also hold on to more cash, whereas CEOs who receive more of their compensation in current payments hold less cash. Originality/value There is no previous literature dealing with MH and cash holding by corporations.

Examining the influence of mindfulness on organizational role stress (ORS): a monitor acceptance theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uma Warrier ◽  
Cyril Foropon ◽  
Melinda Chehimi
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Role Stress ◽  
Role Overload ◽  
Cross Sectional ◽  
Content Type ◽  
Organizational Role ◽  
It Organization ◽  
Context Specific ◽  
Personal Inadequacy

PurposeThe purpose of this paper is to examine the influence of mindfulness on organizational role stress (ORS) based on the Monitor Acceptance Theory (MAT) perspective.Design/methodology/approachThis study is based on a cross-sectional data analysis collected from 137 employees working at an Indian IT organization located in Bangalore (India). ORS and MAAS scales have been used for measuring ORS and mindfulness, respectively.FindingsOverall, the study findings have indicated a negative relationship (r = −0.588) between mindfulness (M) and ORS. First, both personal inadequacy (PI) and self-role distance (SRD) are found to be predominantly impacted by M, whereas both role erosion (RE) and role overload (RO) appear to be less affected by mindfulness. Second, SRD appears to be the highest ORS sub-dimension among IT employees. Third, building on the extant literature, it can be inferred that “no one size fits all”, ORS is both organization and context specific.Originality/valueThis study pioneers to establish empirical evidence between M and ORS. Training employees on M can help in effectively handling ORS.

The impact of the COVID-19 pandemic on autistic adults – a survey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Conor James Davidson ◽  
Keri Lodge ◽  
Alwyn Kam
Keyword(s):  
Coping Strategies ◽  
Design Methodology ◽  
Online Survey ◽  
Negative Impact ◽  
Significant Deterioration ◽  
Cross Sectional ◽  
Content Type ◽  
Autistic People ◽  
Autistic Adults ◽  
The Impact

Purpose To date there has been limited research on the impact of the COVID-19 pandemic on autistic people. This study aims to present the results of a survey of autistic people (n = 51) conducted by a UK specialist autism team. Design/methodology/approach A cross-sectional online survey. Findings A total of 72% respondents reported either some or significant deterioration in mental health during the pandemic. The issues that caused most negative impact were uncertainty over what will happen next and disruption of normal routine. Respondents reported a variety of coping strategies to help them through the pandemic. Originality/value To date there has been little research looking specifically at the impact of the COVID-19 pandemic on autistic people. This paper adds weight to the evidence that the pandemic has had a particularly severe impact on autistic adults and includes useful information on potential coping strategies for this population.

Publishing quantitative careers research: challenges and recommendations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bert Schreurs ◽  
Angus Duff ◽  
Pascale M. Le Blanc ◽  
Thomas H. Stone
Keyword(s):  
Design Methodology ◽  
Team Member ◽  
Research Question ◽  
Editorial Team ◽  
Board Members ◽  
Decision Making Process ◽  
Cross Sectional ◽  
Content Type ◽  
Insight Into

Purpose This article aims to provide prospective authors guidelines that will hopefully enable them to submit more competitive manuscripts to journals publishing careers research.Design/methodology/approach Based on their experience as an author, reviewer and editorial team member, the authors identify the main criteria that a quantitative study must meet to be considered for publication in international peer-reviewed journals covering career-related topics. They emphasize the importance of contributing to the careers literature and of designing the study in accordance with the research question.Findings Manuscripts are rejected because they are insufficiently innovative, and/or because sample, instruments and design are not appropriate to answer the research question at hand. Cross-sectional designs cannot be used to answer questions of mediation but should not be discarded automatically since they can be used to address other types of questions, including questions about nesting, clustering of individuals into subgroups, and to some extent, even causality.Originality/value The manuscript provides an insight into the decision-making process of reviewers and editorial board members and includes recommendations on the use of cross-sectional data.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

Employees’ eldercare demands, strain, and perceived support

2015 ◽  
Vol 30 (2) ◽  
pp. 183-198 ◽  
Author(s):  
Hannes Zacher ◽  
Heiko Schulz
Keyword(s):  
Design Methodology ◽  
Self Report ◽  
Perceived Support ◽  
Use Of Self ◽  
Cross Sectional ◽  
Content Type ◽  
Cross Sectional Design ◽  
The Relationship ◽  
Practical Implications ◽  
Employed Caregivers

Purpose – In many countries, both the number of older people in need of care and the number of employed caregivers of elderly relatives will increase over the next decades. The purpose of this paper is to examine the extent to which perceived organizational, supervisor, and coworker support for eldercare reduce employed caregivers’ strain and weaken the relationship between eldercare demands and strain. Design/methodology/approach – Survey data were collected from 100 employed caregivers from one organization. Findings – Results showed that eldercare demands were positively related to strain, and perceived organizational eldercare support (POES) was negatively related to strain. In addition, high POES weakened the relationship between eldercare demands and strain. Research limitations/implications – The cross-sectional design and use of self-report scales constitute limitations of the study. Practical implications – POES is a resource for employed caregivers, especially when their eldercare demands are high. Originality/value – This research highlights the relative importance of different forms of perceived support for reducing employed caregivers’ strain and weakening the relationship between eldercare demands and strain.

Effect of microwave operating power and reflow time on the microstructure and tensile properties of Sn–3.0Ag–0.5Cu/Cu solder joints

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mardiana Said ◽  
Muhammad Firdaus Mohd Nazeri ◽  
Nurulakmal Mohd Sharif ◽  
Ahmad Azmin Mohamad
Keyword(s):  
Tensile Properties ◽  
Design Methodology ◽  
Solder Joints ◽  
Reflow Time ◽  
Sac305 Solder ◽  
Cross Sectional ◽  
Content Type ◽  
Solder Reflow ◽  
Microwave Hybrid Heating ◽  
Si Wafer

Purpose This paper aims to investigate the morphology and tensile properties of SAC305 solder alloy under the influence of microwave hybrid heating (MHH) for soldering at different microwave parameters. Design/methodology/approach Si wafer was used as susceptor in MHH for solder reflow. Microwave operating power for medium and high ranging from 40 to 140 s reflow time was used to investigate their effect on the microstructure and strength of SAC305/Cu solder joints. The morphology and elemental composition of the intermetallic compound (IMC) joint were evaluated on the top surface and cross-sectional view. Findings IMC formation transformed from scallop-like to elongated scallop-like structure for medium operating power and scallop-like to planar-like structure for high operating power when exposed to longer reflow time. Compositional and phase analysis confirmed that the observed IMCs consist of Cu6Sn5, Cu3Sn and Ag3Sn. A thinner IMC layer was formed at medium operating power, 80 s (2.4 µm), and high operating power, 40 s (2.5 µm). The ultimate tensile strength at high operating power, 40 s (45.5 MPa), was 44.9% greater than that at medium operating power, 80 s (31.4 MPa). Originality/value Microwave parameters with the influence of Si wafer in MHH in soldering have been developed and optimized. A microwave temperature profile was established to select the appropriate parameter for solder reflow. For this MHH soldering method, the higher operating power and shorter reflow time are preferable.

Immigrants in the EU5 labour markets: what happened during the economic crisis?

2019 ◽  
Vol 41 (1) ◽  
pp. 68-83 ◽  
Author(s):  
Claudio Quintano ◽  
Paolo Mazzocchi ◽  
Antonella Rocca
Keyword(s):  
Labour Market ◽  
Big Five ◽  
Design Methodology ◽  
Dynamic Factor ◽  
Time Series Models ◽  
Cross Sectional ◽  
Content Type ◽  
Relative Disadvantage ◽  
Temporal Dimensions ◽  
The Uk

Purpose The purpose of this paper is to understand: whether the changes that have occurred in migrants’ conditions over time are smaller than the differences in their conditions existing across countries; and whether the comparison between immigrants and native-born conditions allows the verification of the levels of disparities between them and, therefore, the relative disadvantage suffered by migrant. After a general overview of the 28 European Union countries, this paper analyses the changes that have occurred from 2006 to 2017 in the conditions of migrants in the labour market in the big five European countries (Italy, Spain, France, Germany and the UK). Design/methodology/approach Various statistical methodologies were used. First, to gain an overall picture, taking into account both the spatial and the temporal dimensions, dynamic factor analysis (DFA) was applied. Second, time-dependent and cross-sectional time-series models were estimated to better understand the DFA results. Findings The results highlight very different scenarios in terms of labour market vulnerabilities, both affecting immigrants and native-born workers. The results also highlight the existence of a very complex framework, due to the high heterogeneity of immigrants’ characteristics and labour market capacities to integrate migrants and also to promote good conditions for the native-born population. Originality/value The picture emerging from this study and the evaluation of the policies and legislation in force to cope with migration and to promote integration suggests some reflections on the most efficacious actions to take in order to improve migrants’ integration, counteracting social exclusion and promoting economic growth.

Relationship between prestige signals and over-subscription ratio

2019 ◽  
Vol 15 (4) ◽  
pp. 564-579 ◽  
Author(s):  
Ali Albada ◽  
Othman Yong ◽  
Soo-Wah Low
Keyword(s):  
Initial Public Offering ◽  
Design Methodology ◽  
Executive Board ◽  
Cross Sectional ◽  
Content Type ◽  
Underwriter Reputation ◽  
Reputational Capital ◽  
Public Offering ◽  
The Relationship ◽  
Institutional Participation

PurposeThe purpose of this paper is to examine whether initial public offering (IPO) over-subscription is a function of firm’s prestige signals conveyed by third parties with reputational capital such as underwriter, auditor and independent non-executive board member.Design/methodology/approachThe relationship between prestige signals and over-subscription ratio (OSR) of IPOs is analysed using a cross-sectional regression based on a sample of 393 IPOs issued between January 2000 and December 2015.FindingsThe results indicate that IPOs underwritten by reputable underwriters have lower OSR than those underwritten by non-reputable underwriters. While issuer engages reputable underwriter to certify firm quality to reduce information asymmetry, the action brings with it lower initial returns for its IPO. Investors interpret the signal conveyed by issuer’s choice of underwriter from under-pricing perspective and respond accordingly by reducing IPO demand. This implies that investors regard under-pricing as a more valuable signal than firm quality signal associated with underwriter reputation. The findings also indicate that over-subscription increases in IPOs that have above average initial returns and higher institutional participation. Issuing firms that go public in a period of high IPO volume are associated with low OSR.Originality/valueThis is the first paper to examine the relationship between the prestige signals and OSR of IPOs in the Malaysian context.

Valuing firm’s financial flexibility under default risk and bankruptcy costs: a WACC based approach

2019 ◽  
Vol 15 (5) ◽  
pp. 688-699
Author(s):  
Carlo Mari ◽  
Marcella Marra
Keyword(s):  
Capital Structure ◽  
Default Risk ◽  
Weighted Average ◽  
Debt Management ◽  
Costs And Benefits ◽  
Debt Structure ◽  
Financial Flexibility ◽  
Content Type ◽  
Bankruptcy Costs ◽  
Debt Capacity

PurposeThe purpose of this paper is to present a model to value leveraged firms in the presence of default risk and bankruptcy costs under a flexible firm’s debt structure.Design/methodology/approachThe authors assume that the total debt of the firm is a combination of two debt components. The first component is an active debt component which is assumed to be proportional to the firm’s value. The second one is a passive predetermined risk-free debt component. The combination of the two debt categories makes the firm’s capital structure more realistic and allows us to include flexibility into the firm’s debt structure management. The firm’s valuation is performed using the discounted cash flow technique based on the weighted average cost of capital (WACC) method.FindingsThe model can be used to define active debt management strategies that can induce the firm to deviate from its capital structure target in order to preserve debt capacity for future funding needs. The firm’s valuation is performed by using the WACC method and a closed form valuation formula is provided. Such a formula can be used to value costs and benefits of financial flexibility.Research limitations/implicationsThe proposed approach provides a good compromise between mathematical complexity and model capability of interpreting the various economic and financial aspects involved in the firm’s debt structure puzzle.Practical implicationsThis model offers a realistic approach to practical applications where real financing decisions are characterized by a simultaneous use of these two debt categories. By comparing costs and benefits deriving from using unused debt capacity for future funding needs, the model provides a quantitative support to investigate if financial flexibility can add value to firms.Originality/valueTo the authors knowledge, the approach the authors propose is the first attempt to build a valuation scheme that accounts for firm’s financial flexibility under default risky debt and bankruptcy costs. Including financial flexibility, this model fills an important gap in the literature on this topic.

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