scholarly journals Antecedents of Firm’s Risk-play – A Structural Equation Modeling Approach in an Emerging Market Context

2021 ◽  
Vol 15 (3) ◽  
pp. 67-94
Author(s):  
Ranjan Dasgupta ◽  
Rashmi Singh
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Structural Equation ◽  
Emerging Market ◽  
Capital Intensity ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Firm Risk ◽  
Managerial Risk ◽  
Income Stream

Firm-risk and managerial risk-taking though distinct are used interchangeably in empirical literature. Here, we identify these two distinctly by examining different proxies for them. We use income stream uncertainty and accounting beta to proxy firm-risk, and market risk and capital intensity ratio represent managerial risk-taking. Once defined, our objective is to find the antecedents of both these by using the most advanced structural equation modelling (SEM) approach from created constructs of performance, psychological, corporate governance, shareholding patterns, fundamental valuation and firm’s characteristics drivers. We formulate seven hypotheses based on empirical literature representing these constructs. We use data of 269 Indian firms for 18 (1999-2017) years to run SEM and then analyse our results individually and combinedly. SEM is used here to test the unidimensionality of the seven constructs (consisting of 19 drivers) and to analyze these drivers (i.e. antecedents) influence on firm-risk and managerial risk-taking i.e. firm’s risk-play. Results prove that present firm-performance, corporate governance drivers, promoters’ shareholding and firm’s characteristics are driving firm’s risk-play. However, fundamental valuation drivers have no role to play in influencing income stream uncertainty, systematic operating risks and managerial risk-attitudes. Psychological drivers and foreign shareholdings act only as a catalyst of firm-risk.

scholarly journals Antecedents of Firm’s Risk-play – A Structural Equation Modeling Approach in an Emerging Market Context

2021 ◽  
Vol 15 (2) ◽  
pp. 56-82
Author(s):  
Ranjan DasGupta ◽  
Rashmi Singh
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Structural Equation ◽  
Emerging Market ◽  
Capital Intensity ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Firm Risk ◽  
Managerial Risk ◽  
Income Stream

Firm-risk and managerial risk-taking though distinct are used interchangeably in empirical literature. Here, we identify these two distinctly by examining different proxies for them. We use income stream uncertainty and accounting beta to proxy firm-risk, and market risk and capital intensity ratio represent managerial risk-taking. Once defined, our objective is to find the antecedents of both these by using the most advanced structural equation modelling (SEM) approach from created constructs of performance, psychological, corporate governance, shareholding patterns, fundamental valuation and firm’s characteristics drivers. We formulate seven hypotheses based on empirical literature representing these constructs. We use data of 269 Indian firms for 18 (1999-2017) years to run SEM and then analyse our results individually and combinedly. SEM is used here to test the unidimensionality of the seven constructs (consisting of 19 drivers) and to analyze these drivers (i.e. antecedents) influence on firm-risk and managerial risk-taking i.e. firm’s risk-play. Results prove that present firm-performance, corporate governance drivers, promoters’ shareholding and firm’s characteristics are driving firm’s risk-play. However, fundamental valuation drivers have no role to play in influencing income stream uncertainty, systematic operating risks and managerial risk-attitudes. Psychological drivers and foreign shareholdings act only as a catalyst of firm-risk.

scholarly journals Risk-Antecedents of Firms and Strategic Mediators – New Evidence from a Cross-Country Analysis

2021 ◽  
Vol 24 (1) ◽  
pp. 3-35
Author(s):  
Ranjan DasGupta ◽  
Monika Dhochak
Keyword(s):  
Corporate Governance ◽  
Emerging Market ◽  
Empirical Literature ◽  
Mediating Effects ◽  
Firm Risk ◽  
Firm Level ◽  
Country Level ◽  
Country Analysis ◽  
Cross Country ◽  
New Evidence

We examine the strength and nature of firm aspiration and expectation as strategic mediators in the association of risk antecedents and firm risk, after exploring the possible impact of such antecedents on firm aspiration, and firm aspiration’s preliminary influence on firm risk. Empirical literature is mostly silent about risk antecedents of firms in an emerging market or cross-country context, and to the best of our knowledge, the mediators proposed in this study are yet to be explored. We report strong significant positive mediating effects of firm aspiration and expectation in association of risk antecedents and firm risk. Our results also validate that all studied risk antecedents, except corporate governance- composition, significantly influence aspiration and expectation mediators and firm risk in line with our hypotheses. Our results also hold true after controlling for firm-level and country-level heterogeneities and conducting two additional robustness tests.

Building a Model of Family Caregiving for Children with Emotional Disorders

1997 ◽  
Vol 5 (3) ◽  
pp. 138-148 ◽  
Author(s):  
Thomas P. Mcdonald ◽  
Thomas K. Gregoire ◽  
John Poertner ◽  
Theresa J. Early
Keyword(s):  
Structural Equation Modeling ◽  
Emotional Disorders ◽  
Problem Behaviors ◽  
Family Caregiving ◽  
Latent Variables ◽  
Structural Equation ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Special Challenge ◽  
And Coping

In this article we describe the results of an ongoing effort to better understand the caregiving process in families of children with severe emotional problems. We make two assumptions. First, we assume that these families are essentially like other families but are faced with a special challenge in raising and caring for their special children while at the same time performing the multiple tasks and demands faced by all families. Second, we assume that public policy and programs must be supportive of the care of these children in their own homes and communities whenever possible. The purpose of this article is to present a model of family caregiving that draws broadly from available theory and empirical literature in multiple fields and to subject this model to empirical testing. We use structural equation modeling with latent variables to estimate an empirical model based on the theoretical model. Results of the model testing point to the importance of the child's external problem behaviors and the family's socioeconomic status and coping strategies as determinants of caregiver stress. Other findings highlight difficulties in measuring and modeling the complex mediating process, which includes formal and informal supports, perceptions, and coping behaviors. The use of structural equation modeling can benefit our efforts to support families by making explicit our theories about the important dimensions of this process and the relationship between these dimensions, which can then be subjected to measurement and validation.

Effect of social capital on agribusiness diversification intention in the emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Dang Lang ◽  
Abhishek Behl ◽  
Nguyen Trung Dong ◽  
Yama Temouri ◽  
Nguyen Hong Thu
Keyword(s):  
Social Capital ◽  
Global Economy ◽  
Structural Equation ◽  
Emerging Market ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Group Discussions ◽  
Content Type ◽  
Depth Interviews

PurposeCoronavirus disease 2019 (COVID-19) has seriously affected the global economy. How agribusinessmen are overcoming this crisis is being noticed in emerging markets. Using social capital to diversify agribusiness for getting more customers is a useful solution for the growth of agribusiness. However, there is a lack of evidence on the aggregate measurement scale of social capital and the influence of behavioral goals on the intention toward agribusiness diversification. Therefore, this study aims to develop an integrated measurement of social capital and investigate its effect on agribusiness diversification intention using the expanded theory of planned behavior (TPB).Design/methodology/approachA mixed-methods approach is used, including four in-depth interviews, three focus group discussions and two surveys. Structural equation modeling is applied to a sample of 484 respondents to test the proposed hypotheses.FindingsThe study shows the role of social capital in influencing the intention to diversify agribusiness under the premises of the resource-based view (RBV). The scale of social capital is also developed, which is the first integrated measurement of this asset. The findings contribute significantly to the existing knowledge of social capital, the TPB and diversifying agribusiness.Originality/valueThis is the first study to explore the comprehensive effect of the facets of social capital on behavioral intention through behavioral goals and determinants of the TPB under the premises of the RBV. The findings will help emerging economies, for example, Vietnam, where most farmers are family business owners or microscaled entrepreneurs in agriculture.

What makes up intentions to purchase the pioneer? A theory of reasoned action approach in India and the USA

2018 ◽  
Vol 13 (5) ◽  
pp. 734-757 ◽  
Author(s):  
Tarek Mady
Keyword(s):  
Social Norms ◽  
Purchase Intention ◽  
Structural Equation ◽  
Theory Of Reasoned Action ◽  
Reasoned Action ◽  
Dominant Role ◽  
Emerging Market ◽  
Equation Modeling ◽  
Content Type ◽  
The Usa

Purpose The purpose of this paper is to extend the research paradigm focusing on behaviorally-based first-mover advantages (FMA) by applying the widely-accepted Theory of Reasoned Action (TRA) and offers insights into differences between a mature market (USA) and an emerging market (EM) (India) regarding how intentions to purchase the pioneer are formed. Design/methodology/approach Utilizing samples of 208 USA and 194 Indian consumers, hypotheses examining the underlying beliefs, attitudes, social norms and purchasing intentions regarding pioneer brands are developed and tested using structural equation modeling. Findings Insights from the study suggest the TRA provides a means for assessing behaviorally-based FMAs across cultures, even as manifestations of purchase intentions differ significantly. According to the TRA and findings of this study, intentions are a function of overall attitudes and social norms. In the USA, individual attitudes were found to play a more significant role than social norms in formulating purchase intention. In India, social norms played a more dominant role in intention formation. Originality/value The study represents one of the first empirical attempts to shed light on the extent of behaviorally-based FMAs in an EM and how manifestations of intention to purchase the pioneer differ from mature markets. The study expands the behavioral paradigm of analysis to include one of the most sought-after EMs today (India) and provides one of the first empirical studies to utilize the TRA in addressing behaviorally-based FMAs.

scholarly journals Toward Firm Performance in Indonesia: The Role of Good Corporate Governance and Investment Opportunity Set

2021 ◽  
Vol 17 (1) ◽  
pp. 81-90
Author(s):  
Dedi Rusdi ◽  
Indri Kartika ◽  
Maya Indriastuti
Keyword(s):  
Corporate Governance ◽  
Structural Equation Modeling ◽  
Firm Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Investment Opportunity ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Investment Opportunity Set

Abstract: This study examined the role of good corporate governance and investment opportunity set in maintaining firm performance. This study's sample population comprised 240 manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. The research sample was selected using a purposive sampling method. The data were analyzed by using structural equation modeling analysis (SEM). The results showed that good corporate governance in terms of board size had a negative effect on firm performance. Meanwhile, good corporate governance in terms of board independence and investment opportunity set had a positive effect on firm performance.Keywords: good corporate governance, investment opportunity set, firm performance Menuju Kinerja Perusahaan di Indonesia: Peran Good Corporate Governance dan Investment Opportunity Set Abstrak: Studi ini menguji peran good corporate governance dan investment opportunity set dalam menjaga kinerja perusahaan. Populasi sampel penelitian terdiri dari 240 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia dari tahun 2016 hingga 2019. Sampel penelitian dipilih dengan menggunakan metode purposive sampling. Analisis data menggunakan analisis structural equation modeling (SEM). Hasil penelitian menunjukkan bahwa good corporate governance ditinjau dari ukuran dewan komisaris berpengaruh negatif terhadap kinerja perusahaan. Sedangkan good corporate governance ditinjau dari independensi dewan komisaris dan investment opportunity set berpengaruh positif terhadap kinerja perusahaan.Kata kunci: good corporate governance, investment opportunity set, kinerja perusahaan

scholarly journals Do Managerial Ability Impact Indonesian Firm Risk-Taking Behavior?

2020 ◽  
Vol 12 (1) ◽  
pp. 18
Author(s):  
Emiliya Rahma Wati ◽  
Heru Tjaraka ◽  
Erina Sudaryati
Keyword(s):  
Risk Taking ◽  
Firm Value ◽  
Structural Equation ◽  
High Ability ◽  
Manufacturing Companies ◽  
Firm Risk ◽  
Managerial Ability ◽  
Risk Taking Behavior ◽  
Corporate Investors ◽  
Low Ability

This study aims to examine the role of managerial in firm decisions. This study recognizes that managerial plays an important role in corporate decision making. Decisions carried out by the company are not only influenced by the manager's explicit mandate to maximize firm value, but also by the manager's ability to manage the company. In previous research it was found that high-ability and low-ability managers have opposite effects on firm behavior and firm value. High-ability managers accept risk-taking whereas low-ability managers refrain from taking risks. Managerial Ability in this study was measured using DEA (Data Envelopment Analysis) while for firm risk-taking behavior using the return on assets (ROA), return on equity (ROE), and research and development costs to total assets (R&D). The model used in this study is a causality model or the relationship of influence between research variables. The proposed model is analyzed using the Structural Equation Model (SEM) causality technique. This research was conducted on manufacturing companies listed on IDX (Indonesian Stock Exchange) in 2013-2017. However, unlike previous studies, the results of this study indicate that highly capable managers play a role in minimizing corporate risk taking. This research contributes as a reference for Indonesian corporate investors and also regulators as a reflection of the effectiveness of regulations made in Indonesia.

scholarly journals Do mistakes acceptance foster innovation? Polish and US cross-country study of tacit knowledge sharing in IT

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wioleta Kucharska
Keyword(s):  
Critical Thinking ◽  
Tacit Knowledge ◽  
Risk Taking ◽  
Structural Equation ◽  
Equation Modeling ◽  
Learning Climate ◽  
It Industry ◽  
Content Type ◽  
The Usa ◽  
High Level

Purpose This study aims to understand and compare how the mechanism of innovative processes in the information technology (IT) industry – the most innovative industry worldwide – is shaped in Poland and the USA in terms of tacit knowledge awareness and sharing driven by a culture of knowledge and learning, composed of a learning climate and mistake acceptance. Design/methodology/approach Study samples were drawn from the IT industry in Poland (n = 350) and the USA (n = 370) and analyzed using the structural equation modeling method. Findings True learning derives from mistake acceptance. As a result of a risk-taking attitude and critical thinking, the IT industry in the USA is consistently innovation-oriented. Specifically, external innovations are highly correlated with internal innovations. Moreover, a knowledge culture supports a learning culture via a learning climate. A learning climate is an important facilitator for learning from mistakes. Originality/value This study revealed that a high level of mistake acceptance stimulates a risk-taking attitude that offers a high level of tacit knowledge awareness as a result of critical thinking, but critical thinking without readiness to take a risk is useless for tacit knowledge capturing.

Adoption of mobile banking at the bottom of the pyramid: an emerging market perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sonal Purohit ◽  
Rakhi Arora
Keyword(s):  
Technology Acceptance ◽  
Migrant Workers ◽  
Structural Equation ◽  
Emerging Market ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Equation Modeling ◽  
Bottom Of The Pyramid ◽  
Mobile Banking ◽  
Content Type

PurposeThis paper aims to investigate the factors that affect mobile banking adoption among the bottom of the pyramid (BoP) group in an emerging market.Design/methodology/approachData were collected from 332 bank customers in the BoP group through a questionnaire based on previously validated scales. Structural equation modeling (SEM) was applied using SmartPLS 2.0 to analyze the data.FindingsIt was found that perceived usefulness (PU) and perceived ease of use (PEoU) influence the attitude toward mobile banking positively whereas the perceived risk (PR) and perceived deterrents (PDs) influence the attitude negatively. The subjective norms (SNs) and the attitude positively affect mobile banking adoption. Knowledge of mobile banking has a strong effect on the PEoU, but it does not influence the PU of mobile banking.Originality/valueThis research makes an original contribution to the extant research and fills the gap by exploring the factors that affect the mobile banking adoption among a distinct BoP group (migrant workers) in an emerging market. The authors make use of knowledge of mobile banking and PDs as novel and important constructs in the technology acceptance model (TAM) to explore the factors that affect mobile banking adoption among the BoP.

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