Determinants of Target Costing Adoption: A Research Note

2016 ◽  
Vol 29 (1) ◽  
pp. 67-77 ◽  
Author(s):  
Farshid Navissi ◽  
VG Sridharan
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Firm Value ◽  
Agency Problems ◽  
Research Note ◽  
Future Research ◽  
Target Costing ◽  
The Cost ◽  
High Information

ABSTRACT The objective of this paper is to advance the theory relating to the determinants of target costing (TC) system adoption by firms. Although the existing literature identifies several factors, it mainly clarifies the circumstances under which TC adoption will add firm value, which refers to a benefit orientation. This paper uses Miles and Snow's (1978) strategy typology to examine the cost orientation of TC adoption, which answers the question as to why firms do not adopt TC even when the existing literature alludes to the benefits of adoption. The paper argues that prospector managers possess the scope to take advantage of the high information asymmetry to avoid TC adoption, because their stock-based compensation increases with volatility in earnings and stock returns. In contrast, defender managers gain increased cash-based compensation with the adoption of TC, which helps achieve greater firm profits. The paper concludes with specific sources of agency problems and several avenues for future research.

Regulation and information asymmetry

2008 ◽  
Vol 16 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Robyn McLaughlin ◽  
Assem Safieddine
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Operating Performance ◽  
Cost Benefit ◽  
Future Research ◽  
Information Asymmetries ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Regulated Utilities

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

scholarly journals Digital Liability Risk: A Note on Estimating Exposure, Costs, and Implications

2020 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Robyn L. Raschke ◽  
Michael T. Lee ◽  
Kimberly F. Charron ◽  
Paulette R. Tandy
Keyword(s):  
Business Models ◽  
Research Literature ◽  
Research Note ◽  
Future Research ◽  
It Infrastructure ◽  
Digital Asset ◽  
Liability Risk ◽  
The Cost ◽  
Organizational Value ◽  
Digital Assets

Digital liabilities are the unknown future costs that occur after an event related to digital assets threatens organizational value. These events emerge from: (1) an IT data breach or cybersecurity failure; (2) IT infrastructure limitations that limit future opportunities; and (3) changes in business models that are limited due to IT infrastructure. Potential digital liabilities are not fully understood and can be difficult to quantify. Derived from prior research, this research note proposes four methods, modified from existing research literature, for estimating the cost of digital liabilities prior to a digital asset compromise. We conclude the research note by discussing opportunities for future research in this area.

The Impact of Corporate Social Responsibility on Firm Value During the COVID-19 Pandemic

2022 ◽  
pp. 206-222
Author(s):  
Lin Woon Leong ◽  
Song Bee Lian
Keyword(s):  
Corporate Social Responsibility ◽  
Stock Returns ◽  
Firm Value ◽  
Practical Implication ◽  
Future Research ◽  
Stock Market Performance ◽  
Hospitality Firms ◽  
Theoretical Application ◽  
Corporate Social ◽  
The Impact

In this chapter, the authors have investigated the effect of CSR on firm value during the pandemic. They used the event study technique and noted that an engagement in the CSR activities increases the stock returns to the hospitality firms during a pandemic crisis. The results showed that the hospitality firms that showed a better stock market performance during the pandemic invested in CSR activities. This would indicate a theoretical application and practical implication on their business duties towards the society, and any future research in CSR would allow them to successfully handle a critical disaster like this pandemic in the future.

scholarly journals Designation as the Most Admired Firms to the Sustainable Management of Taxes: Evidence from South Korea

2021 ◽  
Vol 13 (14) ◽  
pp. 7994
Author(s):  
Jaehong Lee ◽  
Suyon Kim ◽  
Eunsoo Kim
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
Sustainable Management ◽  
Corporate Sustainability ◽  
Tax Avoidance ◽  
Information Environment ◽  
Tax Management ◽  
The Relationship ◽  
Positive Effect ◽  
High Information

This study examines whether the designation as the most admired firms affects firms’ tax management behavior. Based on 6880 Korean firms from 2014 to 2018, we regressed to analyze the relationship between the designation as the most admired firms and tax avoidance. Designation as the most admired firm is considered to result in a high reputation, and reputation is one of the intangible assets when assessing the firm value. We found that the firms designated as the most admired firms are reluctant to avoid taxes. Reputable firms are expected to be consistent with their fame. Therefore, those firms are less engaged in unethical or immoral tax avoidance. We also found a positive effect of the index for environmental, social, and governance on the relationship between the designation as the most admired firms and tax avoidance. Environmental, social, and governance activities are the managements’ choice and are a part of corporate activities, whereas firms’ reputations result from enterprise-wide activities. The findings suggest that the designation as the most admired firms with regard to environmental, social, and governance activities is considered highly reputable and results in deciding to improve corporate sustainability in tax management. The relationship between the designation as the most admired firms and tax avoidance is strengthened in an information environment where the firms are Chaebol-affiliated and in high information asymmetry.

An Empirical Analysis of Foreign Exchange Exposure of CNX 100 Companies

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 1-9 ◽  
Author(s):  
Sriram Mahadevan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Future Research ◽  
Export Ratio ◽  
Exchange Rate Exposure ◽  
Ratio Size ◽  
Foreign Exchange Exposure ◽  
Exchange Rate Changes

The present study has empirically examined the level of foreign exchange exposure and its determinants of CNX 100 companies. For the purpose of study, the relationship between exchange rate changes and stock returns for a sample of 82 companies was determined for the period April 2011-March 2016. The study finds that 49% of the sample companies had significant positive foreign exchange rate exposure and the found that the companies could be exporters or net importers. To explore factors determining foreign exchange rate exposure, variables such as export ratio, import ratio, size of a company, hedging activities were regressed against the exchange exposure and the study found that none of the factors was influencing the exchange rate exposure. The study concludes that the reasons for insignificant influence of the variables could be the natural hedging practices of companies, offsetting of exports and imports and heterogeneous of the sample size. The study offers few directions for future research in this area.

Is Cannabis Tourism Deviant? A Theoretical Perspective

2019 ◽  
Vol 23 (1) ◽  
pp. 71-77 ◽  
Author(s):  
Tianyu Ying ◽  
Jun Wen ◽  
Hairong Shan
Keyword(s):  
Moral Identity ◽  
Deviant Behavior ◽  
Theoretical Perspective ◽  
Research Note ◽  
Future Research ◽  
Research Directions ◽  
Tourism Research ◽  
Self Identity ◽  
Deviant Behaviors ◽  
Future Research Directions

With the growth of cannabis tourism, destinations such as the Netherlands have begun to offer cannabis-related products and services to visitors, including tourists from countries where all drugs are strictly prohibited. Yet limited research has sought to understand cannabis-oriented tourists' efforts to neutralize deviant connotations, namely by justifying or rationalizing misbehavior, when deciding to participate in cannabis tourism. This research note proposes a framework of deviant consumption behavior (DCB) constructed of geographic shifting, self-identity shifting, and moral identity shifting from the perspective of cannabis-oriented tourists to delineate tourists' decision-making process around engaging in deviant behaviors. The proposed framework suggests that previously developed DCB frameworks in the marketing and consumer behavior literature should be adapted for use in outbound tourism research. This research note also highlights areas for debate and investigation regarding cannabis tourists' deviant behavior. Future research directions are provided based on the proposed framework as it applies to deviant tourism research.

Attraction of prey

2018 ◽  
Author(s):  
John D. Horner ◽  
Bartosz J. Płachno ◽  
Ulrike Bauer ◽  
Bruno Di Giusto
Keyword(s):  
Visual Cues ◽  
Synergistic Action ◽  
Carnivorous Plants ◽  
Future Research ◽  
Acoustic Cues ◽  
Qualitative And Quantitative Analysis ◽  
Qualitative And Quantitative ◽  
The Past ◽  
The Cost ◽  
Prey Attraction

The ability to attract prey has long been considered a universal trait of carnivorous plants. We review studies from the past 25 years that have investigated the mechanisms by which carnivorous plants attract prey to their traps. Potential attractants include nectar, visual, olfactory, and acoustic cues. Each of these has been well documented to be effective in various species, but prey attraction is not ubiquitous among carnivorous plants. Directions for future research, especially in native habitats in the field, include: the qualitative and quantitative analysis of visual cues, volatiles, and nectar; temporal changes in attractants; synergistic action of combinations of attractants; the cost of attractants; and responses to putative attractants in electroantennograms and insect behavioral tests.

Sign in / Sign up

Export Citation Format

Share Document