Intangible assets and trade credit policy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Taylor Hartsema ◽  
Chris Harris ◽  
Zhe Li ◽  
Thibaut G. Morillon
Keyword(s):  
Trade Credit ◽  
Intangible Assets ◽  
Negative Relationship ◽  
Intangible Asset ◽  
Financial Constraint ◽  
Sales Growth ◽  
Credit Policy ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this paper is to identify whether the rise in intangible asset investment is related to trade credit investment and whether this relationship is driven by financial constraint and other firm factors.Design/methodology/approachThe study conducts fixed effect regressions testing the relationship between trade credit investment and intangible asset levels. The relationship is further examined for all firms based on product type, financial constraint and sales growth.FindingsThere is a negative relationship between investment in trade credit and the level of intangible assets as a proportion of total assets. This negative relationship is largely explained by firms in industries that traditionally utilize more trade credit, firms with financial constraints and firms with low sales growth.Practical implicationsThe level of investment in intangible assets continues to rise, while investment in trade credit is declining. This paper is the first to identify whether these trends could be related and to provide some explanation why.Originality/valueThis study is the first to link investment in trade credit with investment in intangible assets. There is a negative relationship that is most pronounced for firms that typically offer more trade credit, that are experiencing financial constraint and that are experiencing low growth.

Harmony-oriented retail innovations and financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mónika Anetta Alt ◽  
Zombor Berezvai ◽  
Irma Agárdi
Keyword(s):  
Financial Performance ◽  
Sales Growth ◽  
Asian Countries ◽  
Human Relationships ◽  
Content Type ◽  
Research Findings ◽  
The Relationship ◽  
Positive Effect ◽  
Practical Implications ◽  
Innovation Outcomes

PurposeRecently, a growing need for harmony has been observed worldwide. Harmony is a universal value in both Western and Asian countries. This paper aims to study how the concept of harmony is reflected in the innovation of European multinational grocery retailers and how harmony-related innovations affect the financial performance of the retailers.Design/methodology/approachThe research is based on a multisource database including innovation outcomes and financial performance indicators of 17 European multinational grocery retailers in the period of 2011–2018. In sum, 1,399 innovations were identified by content analysis. The relationship between innovation outcomes and financial performance was measured by panel regression analysis.FindingsResults indicate that retailers differ in launching harmony-oriented innovations. Moreover, 40% more innovations are related to harmony with people as those related to harmony with nature. Finally, harmony-with-people innovations have a significantly positive effect on retailers' sales growth.Practical implicationsBased on the research findings, retailers can improve their sales growth by launching innovations that focus on harmony in human relationships.Originality/valueThis paper extended the concept of harmony to the field of innovations. First, the research showed how the value of harmony appears in the innovations of multinational retailers. Second, the study differentiated between harmony-with-people and harmony-with-nature innovations. Third, the findings revealed that harmony-oriented innovations contribute to retailers' financial performance.

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.

Intelligence and job satisfaction in the USA and China

2014 ◽  
Vol 9 (3) ◽  
pp. 232-244 ◽  
Author(s):  
Cassandra Thompson ◽  
Samuel Lane
Keyword(s):  
Job Satisfaction ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Future Research ◽  
Turnover Rates ◽  
Content Type ◽  
The Usa ◽  
Different Cultures ◽  
The Relationship ◽  
Practical Implications

Purpose – This study aims to evaluate both intelligence and job satisfaction of workers in the USA and China. Each topic will be studied individually, first, to determine the relationship between intelligence and job satisfaction. The statistics between China and the USA will then be compared and contrasted to assess how different cultures will affect emotional intelligence and job satisfaction of those in the workforce. Design/methodology/approach – A review of the empirical studies on intelligence and job satisfaction was performed and used to develop a model to guide future research. Findings – There is a negative relationship between intelligence and job satisfaction in the USA, but no studies have been done to compare both constructs cross-culturally. Research limitations/implications – The proposed study can be used to gain an understanding of the relationship between intelligence and job satisfaction across different cultures. Practical implications – The link between job satisfaction and intelligence can be used by employers to determine information about other aspects of their business, such as turnover rates of productive employees. Originality/value – Although there has been some research on the relation between intelligence and job satisfaction, notably by Ganzach (1998), very little has been done across cultures.

Sociodemographic aspects and their relationship with motivations, satisfaction and loyalty in ecotourism: a study in Costa Rica

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauricio Carvache-Franco ◽  
Orly Carvache-Franco ◽  
Ana Gabriela Víquez-Paniagua ◽  
Wilmer Carvache-Franco ◽  
Allan Perez-Orozco
Keyword(s):  
Costa Rica ◽  
Interpersonal Relationships ◽  
Personal Growth ◽  
Negative Relationship ◽  
Lower Income ◽  
Content Type ◽  
Self Development ◽  
Design Activities ◽  
The Relationship ◽  
Practical Implications

PurposeThe objectives of this study were to (a) analyze the relationship between sociodemographic aspects and motivations in ecotourism and (b) identify the relationship between sociodemographic aspects and satisfaction and loyalty variables.Design/methodology/approachThe research was carried out in the Arenal National Park and the Caño Negro National Wildlife Refuge in Costa Rica, an ecologically important ecotourism destination. The sample consisted of 310 surveys obtained in situ. For data analysis, factor analysis and the multiple regression method were used.FindingsThe results show that younger tourists tend to be more motivated by self-development, whereas older tourists and lower-income tourists are more motivated toward strengthening interpersonal relationships with family and friends. In contrast, tourists with lower education levels are highly motivated by novelty, feel more satisfied with the visit and are more willing to recommend and say positive things about the destination. Besides, repeat visitors are most likely to return.Research limitations/implicationsThe present study was limited by the timing in which it was carried out. Among the future lines of research, studies that address the relationship between sociodemographic variables in the different ecotourism segments should be conducted.Practical implicationsRegarding the practical implications, this study helps companies related to tourism to pay attention to the sociodemographic characteristics of tourists to design activities and services according to their motivations, satisfaction and loyalty. For younger tourists who are motivated by self-development, activities and services related to learning about nature can be planned to encourage their personal growth, new abilities and individual skills. Regarding elderly and lower-income tourists, who are motivated to be with family and friends, recreational activities to improve family and friendship relationships can be promoted.Social implicationsThese findings will serve to plan attractions and services in protected areas, benefiting the destinations and the communities sustainably.Originality/valueOne of the contributions of this study is to find a negative relationship between the level of education and other variables such as satisfaction, intentions to recommend and intentions to say positive things about the destination. This research also identified a negative relationship between age and the self-development motivational dimension, a positive relationship between age and being with family and friends dimension, a negative relationship between income and being with family and friends dimension and a negative relationship between the number of visits and the novelty dimension.

Negative operating cash flows and investment inefficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chris Harris ◽  
Zhe Li
Keyword(s):  
Corporate Governance ◽  
Intangible Assets ◽  
Cash Holdings ◽  
Agency Problems ◽  
Cash Flows ◽  
Publicly Traded ◽  
Content Type ◽  
Operating Cash Flows ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this paper is to identify whether negative operating cash flows are related to investment inefficiency, and specifically whether they are related to subsequent overinvestment and if this relationship is driven by agency problems within the firm.Design/methodology/approachThe study conducts fixed effect regressions, testing the relationship between negative operating cash flows and the firm’s subsequent investment inefficiency. The relationship is further examined for all firms based on size, corporate governance and cash holdings – all of which are related to agency problems.FindingsThe proportion of firms reporting negative operating cash flows has been increasing over time and is positively related to subsequent investment inefficiency. This increase is explained not only by the rise in investment of intangible assets. The positive relationship is not explained by the firm size or corporate governance, but is related to cash holdings. These results are consistent across four different measures of firm investment.Practical implicationsThe percentage of publicly traded firms with negative operating cash flows has never been higher. This paper is one of the first to identify factors that may be contributing to this rise.Originality/valueThis study extends prior findings by identifying previously unexplored factors related to the rise in firms with negative operating cash flows. The rise in investment of intangible assets does not explain the increase alone. High cash holdings also influence the rise in negative operating cash flows.

Exploring the decline in trade credit investment

2017 ◽  
Vol 43 (12) ◽  
pp. 1375-1391 ◽  
Author(s):  
Chris Harris ◽  
Scott Roark
Keyword(s):  
Cash Flow ◽  
Trade Credit ◽  
Negative Relationship ◽  
Publicly Traded ◽  
Content Type ◽  
Access To Credit ◽  
Increased Risk ◽  
Cash Flow Volatility ◽  
Publicly Traded Firms ◽  
The Relationship

Purpose The purpose of this paper is to identify three factors leading to the observed decline in trade credit offered from publicly traded firms. Design/methodology/approach The study conducts firm fixed effect regressions testing the relationship between cash flow volatility and firm investment in trade credit. The relationship is further examined with all firms separated into two groups, based on SIC codes, designating if they are in industries that traditionally offer higher amounts of trade credit. Findings The proportion of US firms that has traditionally extended the most trade credit has been decreasing over time, contributing to part of the decline in trade credit offered. Increases in cash flow volatility have also contributed to decreasing investment in trade credit. The negative relationship with cash flow volatility is greatest amongst firms that traditionally place the highest value on trade credit. Firms with access to credit, proxied by investment grade debt ratings, do not experience the same decline in trade credit offered. Practical implications Firms that value the ability to extend trade credit may maintain their level of investment in trade credit, even with increased risk of cash flow volatility, by maintaining a comparative advantage in access to credit. Originality/value This study extends prior findings by providing three previously unexplored explanations for the decline in offered trade credit seen in the USA. The changing make-up of publicly traded firms, a market-wide increase in cash flow volatility, and access to credit all play an important role in observed declines of trade credit investment.

I can see clearly now

2015 ◽  
Vol 44 (4) ◽  
pp. 611-628 ◽  
Author(s):  
Alexander Newman ◽  
Belinda Allen ◽  
Qing Miao
Keyword(s):  
Ethical Leadership ◽  
Positive Relationship ◽  
Deviant Behavior ◽  
Negative Relationship ◽  
Helping Behavior ◽  
Role Clarity ◽  
Work Behaviors ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose – Although there is growing research on the relationship between ethical leadership and subordinate work behaviors, limited research has examined the boundary conditions under which ethical leadership is more or less effective. The purpose of this paper is to investigate whether subordinate perceptions of role clarity in their job role influence the relationship between ethical leadership and subordinate work behaviors. Drawing on both social exchange and social learning theories, the authors predict that in contexts where subordinates perceive low levels of role clarity, the relationship between ethical leadership behavior and subordinate helping and deviant behaviors will be weaker. Design/methodology/approach – In total, 239 employees in the Chinese public sector completed surveys across three separate time points. Confirmatory factor analysis and hierarchical regression analysis were used to analyze the data. Findings – Analyses provided support for the hypothesized relationships. When subordinates perceived higher levels of role clarity the positive relationship between ethical leadership and helping behavior was stronger, and the negative relationship between ethical leadership and deviant behavior was stronger. Research limitations/implications – As with all research the findings of this study need to be viewed in light of its limitations. First, the use of data from a single set of respondents opens up the possibility of common method bias. Second, given the study used of a sample of public sector employees from one part of China, there would be value in future research examining whether the findings from the present study are generalizable to other industrial and cultural contexts. Practical implications – This research has a number of practical implications. Given that the authors found a significant positive relationship between ethical leadership and helping behavior, and a significant negative relationship between ethical leadership and deviant behavior, it is crucial for organizations to include ethical training as an essential part of leadership development programs. However, the findings also suggest at the same time as facilitating the development of ethical leadership behaviors amongst supervisory employees, it is important for organizations to also provide employees with clarity over what is expected of them in their jobs, and the means they should employ to facilitate goal achievement. Originality/value – This study responds to recent calls for more research to identify factors which may strengthen or mitigate the influence of ethical leadership in the workplace.

scholarly journals Competences development and turnover intentions: the serial mediation effect of perceived internal employability and affective commitment

2020 ◽  
Vol 25 (1) ◽  
pp. 5-22
Author(s):  
Ana Moreira ◽  
Francisco Cesário ◽  
Maria José Chambel ◽  
Filipa Castanheira
Keyword(s):  
Design Methodology ◽  
Affective Commitment ◽  
Turnover Intentions ◽  
Negative Relationship ◽  
Mediation Effect ◽  
Content Type ◽  
Negative Effect ◽  
Serial Mediation ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to explore the serial mediation effect of perceived internal employability and affective commitment in the relationship between the organisational practices of competences development and turnover intentions. Design/methodology/approach The methodology was quantitative and is based on a survey with a sample of 313 participants, all of whom were employed in several organisations located in Portugal. Findings A significant and negative effect of organisational practices of competences development, perceived internal employability and affective commitment on turnover intentions was verified. A total serial mediation effect was also found from perceived internal employability and affective commitment in the relationship between organisational practices of competences development (i.e., training, individualised support and functional rotation) and turnover intentions. Practical implications These practices should be developed by leaders of organisations in order that employees feel that the organisation is investing in their development, which can lead to an increase in their emotional attachment towards the organisation and consequently increase their desire to stay in the organisation. Originality/value This study makes two important contributions. First, it confirms the existence of a significant and negative relationship between perceived internal employability and turnover intentions. Second, it proves the existence of a total serial mediation effect of perceived internal employability and affective commitment in the relationship between organisational practices of competences development and turnover intentions.

Cash flow volatility and trade credit in Asia

2019 ◽  
Vol 15 (2) ◽  
pp. 257-271 ◽  
Author(s):  
Chris Harris ◽  
Scott Roark ◽  
Zhe Li
Keyword(s):  
Financial Crisis ◽  
Cash Flow ◽  
Trade Credit ◽  
Negative Relationship ◽  
Firm Investment ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Cash Flow Volatility ◽  
The 2008 Financial Crisis ◽  
The Relationship

PurposeThe purpose of this paper is to identify the relation between cash flow volatility and trade credit offered by firms in developing Asian economies.Design/methodology/approachThe study conducts country fixed effect regressions testing the relationship between cash flow volatility and firm investment in trade credit. The relationship is then examined with all firms separated into two groups based on firm size, and then again comparing the relation before and after the 2008 finasncial crisis.FindingsHigher levels of cash flow volatility are negatively related to the amount of trade credit offered. The negative relationship with cash flow volatility is greater amongst smaller firms that may have less access to external sources of capital. Additionally, the negative relationship is greater following the 2008 financial crisis.Practical implicationsTrade credit plays an important role in the business process, particularly in developing economies. However, these firms may not be able to maintain their investment in trade credit when experiencing greater levels of cash flow volatility. These results are especially pronounced after the 2008 financial crisis and for small firms.Originality/valueThis study identifies an important connection between cash flow volatility and firm investment in trade credit among firms in developing Asian economies.

Job autonomy and knowledge hiding: the moderating roles of leader reward omission and person–supervisor fit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiuping Peng ◽  
Xi Zhong ◽  
Shanshi Liu ◽  
Huaikang Zhou ◽  
Nannan Ke
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Hierarchical Regression ◽  
Job Autonomy ◽  
Content Type ◽  
Knowledge Hiding ◽  
The Impact ◽  
The Relationship ◽  
Work Goals ◽  
Practical Implications

PurposeIn this paper, the moderating roles of leader reward omission and person–supervisor fit in the relationship between job autonomy and knowledge hiding are investigated.Design/methodology/approachUsing a sample of 248 employees in a two-wave survey, we performed a hierarchical regression analysis to test the hypotheses.FindingsThe results revealed that employees with high job autonomy were less likely to engage in knowledge hiding. Moreover, when employees experienced leader reward omission, the negative relationship between job autonomy and knowledge hiding was weakened, and this interesting effect varied by person–supervisor fit.Research limitations/implicationsThis study does not explore the mediating mechanism by which job autonomy affects employee knowledge hiding. Moreover, as this research was conducted in a Chinese context, the generalizability of our findings is unclear.Practical implicationsThis research has fulfilled its practical aims by providing advice on knowledge-relevant job characteristic factors that can be used to stage interventions regarding the provision of autonomy in jobs, and by carefully considering how to create interdependence between jobs without pushing people to engage in knowledge-hiding behaviors. Furthermore, it is important for leaders to help employees identify work goals and directions and not engage in reward omission.Originality/valueThis study contributes to theoretical advancements in the field of knowledge hiding by revealing boundary conditions that mitigate or enhance the impact of job autonomy on knowledge hiding.

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