Information asymmetry leads to underpricing: validation through SEM for Indian IPOs

2017 ◽  
Vol 51 (2) ◽  
pp. 116-131 ◽  
Author(s):  
Sheena Chhabra ◽  
Ravi Kiran ◽  
A.N. Sah
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Negative Impact ◽  
Equation Model ◽  
Maximum Information ◽  
Content Type ◽  
Information Transparency ◽  
Short Run ◽  
International Investors ◽  
The Impact

Purpose The purpose of this paper is to examine the relevance of information, transparency and information efficiency in short-run performance of new issues. The current research evaluates the short-run performance of IPOs during 2005-2012, which even includes the recessionary period. The present study evaluates the impact of informational variables on first-day returns. Design/methodology/approach The short-run performance of the IPOs is measured through market adjusted excess return. A structural equation model (SEM) has been designed to identify how information influences the short-run performance of IPOs. Findings The results of structural model reveal that the sale of promoters’ stake and underwriters’ reputation are the major contributors towards information and are found to be highly significant statistically. The model also shows that the issue size (a component of information) is statistically insignificant at 5 per cent. The model suggests that the availability of information has negative impact on the first day returns indicating that the issuer which disclose maximum information to the public get lower returns on the listing day and hence, their issues are less underpriced. Originality/value The present study has a contribution in investment decisions for global investors, as the participation of international investors is common in IPOs of emerging markets. The findings of the study are expected to be useful to the practitioners in predicting the pricing of IPOs based on the informational variables influencing their performance.

The effect of service quality on foreign participants’ satisfaction and behavioral intention with the 2016 Shanghai International Marathon

2019 ◽  
Vol 21 (1) ◽  
pp. 91-105 ◽  
Author(s):  
Yi Xiao ◽  
Xiaoling Ren ◽  
Pei Zhang ◽  
Antonnette Ketlhoafetse
Keyword(s):  
Service Quality ◽  
Behavioral Intention ◽  
Structural Equation ◽  
Structural Model ◽  
Equation Model ◽  
Equation Modeling ◽  
City Image ◽  
Content Type ◽  
Sports Events ◽  
The Impact

Purpose The purpose of this paper is to examine foreign participants’ service quality, satisfaction and behavioral intention during the 2016 Shanghai International Marathon, and to gain a better understanding of the impact of service quality on their satisfaction and behavioral intention. Design/methodology/approach An English questionnaire was originally designed on the basis of the literature review of service quality, overall satisfaction and re-participation intention to assess the purpose of the study. Data were collected from 308 foreign runners including 61.7 percent (n=190) of male and 38.3 percent (n=118) of the female. Structural equation modeling was employed to check the proposed model and to test the impact of service quality on foreign participants’ overall satisfaction and behavioral intention. Findings A positive correlation was captured between the following: service quality and overall satisfaction (r=0.752, p<0.01), overall satisfaction and behavioral intention (r=0.876, p<0.01), and between service quality and participants’ behavioral intention (r=0.760, p<0.01). Furthermore, the service quality of Shanghai International Marathon had an indirect effect on foreign participants’ behavioral intention. The structural model fits the data well (R2=0.823). Research limitations/implications First, the sample size was small and was just drawn from one event, which can be taken with caution in the context of the generalization of findings. Second, the results are specific to 2016 Shanghai International Marathon participants and cannot be generalized with other events in China or around the world. Practical implications The results are practical for the marathon event organizers to better understand foreign participants’ needs and improve their services. This study has a significant importance to the sports events organizers, especially the organizers of the Shanghai International Marathon in terms of a better understanding the level of their service. This study will also help the event organizers to adapt their strategies and their efforts to increase Shanghai International Marathon foreign participants’ satisfaction and intention to repurchase or to share with others. Social implications This study contributes to the foreign participant’s satisfaction literature. In fact, many studies were carried on event spectators’ satisfaction while rare studies were carried on event participants’ satisfaction, especially marathon foreign participants’ satisfaction, and this study will supplement studies related to sport events participation. This will be convenient for sports managers and scholars to better understand the impact of service quality on participants’ satisfaction and behavioral intention in the field of sports events management. Meanwhile, the results were extremely useful to Shanghai during the process of constructing a “world-famous sports city” and “modern international metropolis”. Originality/value Little literature focus on foreign participants of Shanghai International Marathon, which is important in the process of shaping city image and building world-famous city. Are foreign participants satisfied with the Shanghai International Marathon? Which aspect of the service quality is of greater value for them? What are the influencing factors of their behavioral intention and word-of-mouth communication? What are the specific impact paths among the service quality, overall satisfaction and behavioral intention variables? To examine the objectives, the study was designed to target foreign participants’ service quality, satisfaction and behavioral intention. Besides, structural equation model was applied in this study to explore the path relationship between service quality, satisfaction and behavioral intention specifically.

How relationship attributes affect bank customers’ saving

2019 ◽  
Vol 37 (1) ◽  
pp. 156-170 ◽  
Author(s):  
Kent Eriksson ◽  
Cecilia Hermansson
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Theory Development ◽  
Equation Model ◽  
Content Type ◽  
Positive Effects ◽  
Subjective Perceptions ◽  
Saving Behavior ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to determine how three relational attributes – duration, context and trust – are subjectively perceived by bank customers, and how these affect their saving behavior, as defined by monthly flows to mutual funds and the financial products bought and held in stock.Design/methodology/approachThe authors use a combination of unique bank register and subjective survey data, and a structural equation model for theory development. Four constructs are developed to estimate the structural model, i.e. saving behavior, duration, context and trust.FindingsThe authors find that all three relational attributes have positive effects on saving behavior. The authors also find that duration and context have the largest total effects, and that trust is a mediating variable channeling indirect effects from context and duration to saving behavior.Practical implicationsOne implication for bank managers is that it takes time and understanding of customer context to gain customer trust, but that this increases customer savings. Another implication is that the authors confirm that relational attributes can be studied using subjective measures in surveys, and that these have an effect on objective savings behavior. The findings provide an understanding that could develop both the customer’s value and the banks’ business opportunities.Originality/valueThe impact of relationships between bank advisors and their customers in terms of costs and benefits has been studied, but a little research has focused on the attributes of the relationship and how these affect customers’ saving behavior. The study also uses unique objective bank register data, combined with customers’ subjective perceptions of the relationship.

Gossip is a fearful thing: the impact of negative workplace gossip on knowledge hiding

2020 ◽  
Vol 24 (7) ◽  
pp. 1755-1775
Author(s):  
Zhu Yao ◽  
Jinlian Luo ◽  
Xianchun Zhang
Keyword(s):  
Structural Equation ◽  
Negative Impact ◽  
Underlying Mechanism ◽  
Equation Model ◽  
Situational Factors ◽  
Content Type ◽  
Underlying Mechanisms ◽  
A Chain ◽  
Knowledge Hiding ◽  
The Impact

Purpose The crucial role of knowledge sharing in an organization has become even more crucial lately, resulting in garnering more attention by scholars. In reality, while several organizations expect their employees to share knowledge with colleagues actively, many choose to hide their knowledge when asked for help. This study aims to explore whether negative workplace gossip (NWG) affects employee knowledge hiding (KH), as well as analyzes whether relational identification (RI) and interpersonal trust (IT) play a chain mediating role between the two, and discusses whether forgiveness climate (FC) could be used as a boundary condition in the relationships mentioned above. Design/methodology/approach Based on the conservation of resource (COR) theory and the cognitive–affective personality system (CAPS) theory, the authors surveyed 326 employees in China at 2 time-points and explored the correlation between NWG and KH, as well as the underlying mechanism. Using confirmatory factor analysis, bootstrapping method and structural equation model, the authors validated the research hypotheses. Findings The findings revealed the following: NWG negatively correlates with KH; RI and IT play a mediation role between NWG and KH, respectively, and both variables also play a chain mediation role in the relationship mentioned above; and FC moderates the negative impact of NWG on RI, further moderating the chain mediation between RI and IT and between NWG and KH. Originality/value First, this study established the correlation between NWG and KH, as well as analyzed the internal mechanism between the two. Besides, this study adds to scholars’ understanding of the underlying mechanisms by which these effects could occur. Second, this study demonstrated the moderating effect of FC – a situational feature that has been neglected in previous studies. Furthermore, this study can not only complement the situational factors ignored in previous studies but also broaden the application scope of CAPS. Finally, this study effectively combines COR and CAPS, which provides a basis for the application of these two theories in the future.

Privacy concern and online transactions: the impact of internet self-efficacy and internet involvement

2014 ◽  
Vol 31 (2) ◽  
pp. 118-125 ◽  
Author(s):  
Syed H. Akhter
Keyword(s):  
Direct Effect ◽  
Self Efficacy ◽  
Structural Equation ◽  
Negative Impact ◽  
Equation Model ◽  
Privacy Concern ◽  
Content Type ◽  
Online Transactions ◽  
The Impact ◽  
Practical Implications

Purpose – This study aims to examine the effects of internet self-efficacy and internet involvement on privacy concern and the effect of privacy concern on the frequency of online transactions. The study also seeks to examine the direct effect of internet self-efficacy and internet involvement on the frequency of online transactions. Design/methodology/approach – A structural equation model was developed to test the hypotheses. The model was tested using the LISREL 8.8 software and both structural and measurement parameters were estimated. Findings – Findings suggest that internet self-efficacy and internet involvement affect privacy concern negatively; and privacy concern, in turn, affects frequency of online transactions negatively. Findings also indicate that the direct effect of internet self-efficacy and internet involvement on the frequency of online transactions is positive. All parameters are significant and in the hypothesized direction. Practical implications – Findings highlight the significance of internet self-efficacy and internet involvement in explaining both privacy concern and online transactions. The negative impact of privacy concern shows strategically why businesses should take measures to protect privacy of consumers and assure them that the information they provide is protected and secure. Originality/value – This research contributes to the debate on privacy concern and adds to the growing body of literature on the impact of privacy concern on online transactions. Both antecedents and consequence of privacy concern are examined in the study.

scholarly journals The Impact of Brand Equity on Employee’s Opportunistic Behavior: A Case Study on Enterprises in Vietnam

2021 ◽  
Vol 14 (4) ◽  
pp. 164
Author(s):  
Quang Bach Tran ◽  
Quoc Hoi Le ◽  
Hoai Nam Nguyen ◽  
Dieu Linh Tran ◽  
Thi Thuy Quynh Nguyen ◽  
...  
Keyword(s):  
Employee Engagement ◽  
Brand Equity ◽  
Structural Equation ◽  
Structural Model ◽  
Negative Impact ◽  
Theory And Practice ◽  
Emotional Engagement ◽  
Opportunistic Behavior ◽  
Corporate Brand ◽  
The Impact

Brand is considered a valuable asset that a business wants to create and maintain growth throughout its business cycle. This paper examines the impact of corporate brand equity on employees’ opportunistic behavior. The paper uses quantitative research methods, through linear SEM (Structural Equation Modelling) analysis of structural model with a scale of 609 samples of employees of enterprises in Vietnam. The research results show that corporate brand equity has a negative impact on employees’ opportunistic behavior. In the relationship between these two factors, trust and emotional engagement act as intermediate factors. Additionally, the research demonstrates that trust has a positive effect on all three components of employee engagement, including emotional engagement, computational engagement, and standards-based engagement. On that basis, the research suggests a number of recommendations to minimize the opportunistic behavior of employees in the enterprise. The findings of this study have shown the importance and impact of brand equity on employee opportunistic behavior. These are meaningful contributions in both theory and practice to help businesses gain deeper insight into brand equity and the need to pay attention to building and developing durable brand equity for businesses. At the same time, it is an important basis for the next research projects.

Researchers’ awareness about plagiarism and impact of plagiarism detection tools – does awareness effect the actions towards preventing plagiarism?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sk. Mamun Mostofa ◽  
Mashiat Tabassum ◽  
S.M. Zabed Ahmed
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Personal Characteristics ◽  
Equation Model ◽  
Equation Modeling ◽  
Plagiarism Detection ◽  
Chi Square ◽  
Content Type ◽  
Reported Study ◽  
Chi Square Test

Purpose This paper aims to analyse researchers’ awareness about plagiarism and impact of plagiarism detection tools on the actions that they take to prevent plagiarism. It also employs a structural model that examines whether awareness of plagiarism and anti-plagiarism tools have any significant effect on the actions taken by the researchers to avoid plagiarism. Design/methodology/approach A survey questionnaire was distributed to researchers at a large public university in Bangladesh. The survey accumulated 184 valid responses. Descriptive statistics were obtained to assess researchers’ awareness about plagiarism and impact of plagiarism detection tools and the actions taken by them. The reasons that may cause plagiarism were also identified. The awareness of the availability of the anti-plagiarism software that was being used by the university and its actual use by the researchers was gathered through the survey. Non-parametric Mann–Whitney and Kruskal–Wallis tests were conducted to investigate the differences in awareness levels and actions in terms of gender, age, discipline and current level of research. The chi-square test was carried out to examine the relationship between awareness about the availability of the anti-plagiarism software and its use by the researchers. Finally, the survey data were analysed using structural equation modeling to examine the effects of awareness of plagiarism and anti-plagiarism software on the actions taken by the researchers. Findings The study revealed that the level of awareness regarding plagiarism and impact of plagiarism detection software is generally high among the researchers. There are some significant differences between researchers’ demographic and personal characteristics and their awareness levels and actions with regard to plagiarism. The findings indicate that almost three-quarters of the researchers were aware about the anti-plagiarism tool that is being used, whereas more than half of the researchers indicated that they used the software to assess their works. The results of the structural equation model do not show a good fit, although there is strong statistical evidence that awareness about plagiarism and anti-plagiarism software has significantly impacted researchers’ actions towards preventing plagiarism. Originality/value There is no reported study on researchers’ awareness of plagiarism and its affiliated issues in Bangladesh. The findings of this study will not only provide useful insights regarding awareness about plagiarism but also assist university authorities to formulate relevant policy and take necessary actions against plagiarism in higher education institutions.

The effect of clustering on competitiveness improvement in Hebron

2017 ◽  
Vol 28 (5) ◽  
pp. 631-654 ◽  
Author(s):  
Ibrahim M. Awad ◽  
Alaa A. Amro
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Model Building ◽  
Measurement Model ◽  
Background Information ◽  
Equation Modeling ◽  
Future Research ◽  
Research Model ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to map the cluster in the leather and shoes sector for improving the competitiveness of the firms. Toward this end, the study is organized to examine the impact of clustering on competitiveness improvement. The influence of competitive elements and performance (Porter’s diamond) and balanced score card was utilized. Design/methodology/approach A random sample of 131 respondents was chosen during the period from May 2016 to July 2016. A structural equation modeling (SEM) analysis was applied to investigate the research model. This approach was chosen because of its ability to test casual relationships between constructs with multiple measurement items. Researchers proposed a two-stage model-building process for applying SEM. The measurement model was first examined for instrument validation, followed by an analysis of the structural model for testing associations hypothesized by the research model. Findings The main findings show that there is a unidirectional causal relationship between improvements of performance and achieve competitiveness and also reveal that the Palestinian shoes and leather cluster sector is vital and strong, and conclude that clustering can achieve competitiveness for small- and medium-sized enterprises. Research limitations/implications Future research can examine the relationship between clustering and innovation. The effect of clustering using other clustering models other than Porter’s model is advised to be used for future research. Practical implications The relationships among clustering and competitiveness may provide a practical clue to both, policymakers and researchers on how cluster enhances economic firms such as a skilled workforce, research, development capacity, and infrastructure. This is likely to create assets such as trust, synergy, collaboration and cooperation for improved competitiveness. Originality/value The findings of this study provide background information that can simultaneously be used to analyze relationships among factors of innovation, customer’s satisfaction, internal business and financial performance. This study also identified several essential factors in successful firms, and discussed the implications of these factors for developing organizational strategies to encourage and foster competitiveness.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

Determinants of the online purchase intention: hedonic motivations, prices, information and trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Espírito Santo ◽  
Alzira Maria Ascensão Marques
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Online Shopping ◽  
Structural Model ◽  
Easy Access ◽  
Online Information ◽  
Access To Information ◽  
Content Type ◽  
Online Purchase ◽  
The Impact

PurposeThe Internet has changed the nature of purchasing, proof of this being the proliferation of e-commerce sites which have seen their activity grow more quickly due to the COVID-19 pandemic. Therefore, the authors aim to investigate the impact of the consumer's hedonic motivations, price, access to information and trust on the online purchase intention.Design/methodology/approachA quantitative, transversal study of a conclusive nature was carried out. Based on information gathered through a questionnaire administered to a sample of 750 online purchasers, a structural equation model was estimated.FindingsThe results showed that the intention to continue purchasing in online shops is partly explained by access to information online, hedonic motivations and trust in e-commerce sites. It stands out that online information generates trust, and the perception of online prices does not influence loyalty but has a positive influence on hedonic motivations.Research limitations/implicationsAlthough some constructs were ignored, for example, the integration of channels, experiential marketing and the fear of fraud, including unauthorised use of personal details, the study shows that easy access to useful information about products, prices, promotions is an important antecedent of online purchase.Practical implicationsOnline shop managers should pay special attention to e-commerce websites, and the information provided there should explore consumer's hedonic motivations for adventure. Furthermore, it is fundamental to create trust in order to maintain the interest in online shopping.Originality/valueThe estimation of the structural model in the context of online shopping includes the influence of utilitarian motivations (price and access to information), which offer a rational experience and also include emotional motivations (hedonic adventure motivations) on the intention to buy online. The results also revealed that it plays an important role to promote online trust and online loyalty.

scholarly journals How port aesthetics affect destination image, tourist satisfaction and tourist loyalty?

2020 ◽  
Vol 5 (2) ◽  
pp. 211-228
Author(s):  
Chin-Shan Lu ◽  
Hsiang-Kai Weng ◽  
Shiou-Yu Chen ◽  
Chi Wai Chiu ◽  
Hiu Yan Ma ◽  
...  
Keyword(s):  
Hong Kong ◽  
Structural Equation ◽  
Structural Model ◽  
Measurement Instrument ◽  
Positive Influence ◽  
Equation Model ◽  
Destination Image ◽  
Content Type ◽  
Tourist Satisfaction ◽  
Culture Design

Purpose This study aims to examine the linkages between port aesthetics, destination image, tourist satisfaction and tourist loyalty in Hong Kong. Design/methodology/approach To achieve this objective, the authors surveyed 247 tourists in Hong Kong. Using factor analysis and structural equation model (SEM) to identify the constructs of port aesthetics and analyze its relationship with destination image, tourist satisfaction and tourist loyalty. Findings Five-port aesthetics constructs were identified, namely, leisure and culture, design and cognition, atmosphere, recreational facilities and memory. The results of SEM revealed the following: port aesthetics positively influenced destination image; destination image positively influenced tourist satisfaction; and tourist satisfaction had a positive influence on tourist loyalty. This research also found that the indirect effect of port aesthetics on tourist loyalty via destination image and tourist satisfaction. Originality/value While the environmental qualities of a port could potentially affect destination image, tourist satisfaction and loyalty, this study developed and validated a measurement instrument of perceived port aesthetics from a tourist’s perspective. Specifically, this research proposed a structural model to explain the relationships between port aesthetics, destination image, tourist satisfaction and loyalty.

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