• Dividend policy in the banking sector in G-7 and GCC countries: A comparative study

      Hanifa, H.; Hamdan, M.; Haffar, Mohamed (2018-11)
      Dividend policy has been a puzzling question for many years. This study attempts to identify the key factors affecting it in the financial sector that have been neglected in the literature. Using panel data on 621 Group of Seven (G-7) banks and 68 Gulf Cooperation Council (GCC) banks, five main factors namely, banks’ size, profitability, growth, leverage, and last year’s dividend were empirically tested regarding their impact on dividend payout ratios. In addition to comparing the two economies descriptively, the researchers employed panel data analysis using multiple regression with random effects. The findings revealed that the dividend payout ratio for the GCC countries is higher than G-7 countries in every year of the examined period (2010-2015). Furthermore, for both G-7 and GCC banks, profitability and last year dividend had a significant positive influence while banks’ leverage had a significant negative influence on the dividend payout. It was found also that banks’ size is an important dividend determinant in the G-7 countries only.
    • Do agile managed information systems projects fail due to a lack of emotional intelligence?

      Luong, T.T.; Sivarajah, Uthayasankar; Weerakkody, Vishanth J.P. (2021)
      Agile development methodologies (ADM) have become a widely implemented project management approach in Information Systems (IS). Yet, along with its growing popularity, the amount of concerns raised in regard to human related challenges caused by applyingADMare rapidly increasing. Nevertheless, the extant scholarly literature has neglected to identify the primary origins and reasons of these challenges. The purpose of this study is therefore to examine if these human related challenges are related to a lack of Emotional Intelligence (EI) by means of a quantitative approach. Froma sample of 194 agile practitioners, EI was found to be significantly correlated to human related challenges in agile teams in terms of anxiety, motivation, mutual trust and communication competence. Hence, these findings offer important new knowledge for IS-scholars, project managers and human resource practitioners, about the vital role of EI for staffing and training of agile managed IS-projects.
    • Do compensation plans with performance targets provide better incentives?

      Pinto, Helena; Widdicks, M. (2014-12)
      Guided by academic literature, industry practice and policy recommendations, we analyze a wide range of option and restricted stock plans with exercise and vesting conditions that may be contingent on stock price performance. To assess the effectiveness of these plans at attracting and providing incentives to executives, we create compensation plans with fixed firm cost and executive valuation and calculate their expected total lifetime incentives. We show that performance vesting targets provide the least cost effective incentives, performance exercise targets provide the largest risk incentives, option plans are generally superior to restricted stock plans, and calendar vesting is only efficient up to a maximum of three years. Performance exercise targets can increase the expected total lifetime incentives provided by compensation plans, but in general, standard options with short vesting periods provide the most cost effective pay-for-performance incentives.
    • Do IFRS and board of directors’ independence affect accounting conservatism?

      Elshandidy, Tamer; Hassinen, A. (2014)
      This article observes separately and jointly the impact of international financial reporting standards (IFRS) and/or board of directors’ independence on accounting conservatism in FTSE 100 nonfinancial firms between 2002 and 2007. Using Givoly and Hayn’s (2000) accrual-based measure of accounting conservatism, we found a reduction in conservatism after the mandatory adoption of IFRS, and, also, that board of directors’ independence improved accounting conservatism. Moreover, IFRS and board of directors’ independence had a complementary impact on accounting conservatism since the role of independent directors was not observable prior to the mandatory adoption of IFRS. Our results suggest that, after the mandatory adoption of IFRS, independent directors are likely to put significantly more pressure on the management to practice more accounting conservatism.
    • Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China?

      Liu, X.; Wang, Chengang; Wei, Yingqi (2009)
      This paper examines the linkage effects of foreign direct investment (FDI) on firm-level productivity in Chinese manufacturing. It is found that FDI generates positive vertical linkage effects in Chinese manufacturing at both the national and regional levels, and limited positive horizontal spillovers at the regional level. While OECD firms gain from both vertical and (probably) horizontal linkages, Hong Kong, Macao and Taiwanese firms benefit only from backward linkage effects. In the domestic sector, in which we are most interested, both state-owned enterprises (SOEs) and non-SOEs are hurt by competition from foreign firms in the same industries. While SOEs gain from vertical linkages with foreign firms, non-SOEs are unable to do so. The patterns of productivity spillovers from FDI in Chinese manufacturing seem to be determined by one key factor ¿ the technological capabilities of the firms involved. Important data limitations and policy implications of this research are discussed.
    • Do seasoned offerings improve the performance of issuing firms? Evidence from China

      Zhang, D.; Wu, Yuliang; Ye, Q.; Liu, J. (2019-03)
      This study provides new evidence that the performance of issuing firms varies by issue type, based on survival analysis methods. Our non-parametric results show that firms raising capital through rights issues, and notably through cash offers, experience a greater risk of delisting following issuance, as compared to those issuing convertible bonds. Our Cox model analyses demonstrate that plain equity issues, in contrast to convertible issues, are subject to different degrees of regulatory discipline, obligations and incentives in shaping survival trajectory. Further, high ownership concentration, agency issues intrinsic to equity offerings, weak shareholders' protection, and corporate ownership and governance and corporate control development at the time of an offer markedly influence post-issue survival. Plain equity issues, notably cash offers, are strongly linked with the agency costs of free cash flows. A large and truly independent board, allied to a separation of CEO and chairman powers, acts as a primary restraint on managers' self-interested behaviour. Such a cohesive governance mechanism can restrain rent-seeking in the firm's fundraising initiative. These observations hold when we take into account information available before an issue, at the time of an issue, and after an issue, demonstrating the robustness of our findings.
    • Do we need to be Sustainable? An examination of purpose and intention behind Sustainability practice in Community Pharmacies in the National Health Service (UK)

      Breen, Liz; Garvey, O.; Mosan, G.; Matthias, Olga; Sowter, Julie (2017-09)
      The National Health Service (NHS) Five Year Forward View in 2014 issued a grave warning that if healthcare demand in the UK continued to grow as its current rate, and efficiency or funding changes were not instigated there could be a mismatch between the service (in terms of resource provision) and patients of up to £30 billion a year by 2020/21. The report asserted that in order to “sustain a comprehensive high-quality NHS; action will be needed on all three fronts – demand, efficiency and funding” (2014:5). Based on this escalating issue, and with a focus on the expanded and value-added role of Community Pharmacists, this study chooses to focus on this service operation in light of the pressures as highlighted above by examining what Sustainability means and how it is applied in Community Pharmacy as a service provider in the NHS (UK).
    • Does capital market drive corporate investment efficiency? Evidence from equity lending supply

      Tsai, H.-J.; Wu, Yuliang; Xu, B. (2021-08)
      The increased equity lending supply (ELS) in the equity loan market, available for short sellers to borrow, exposes a firm to greater short selling threats. Considering short sellers’ strong incentives to uncover firm-specific information and monitor managers, we hypothesize that short selling threats, proxied by ELS, enhance corporate investment efficiency. We find that ELS significantly reduces managerial tendencies to underinvest (overinvest) especially for firms prone to underinvest (overinvest). The effect of ELS on investment efficiency is stronger for firms with higher information asymmetry and weaker corporate governance, confirming short sellers’ role in mitigating information and agency costs. However, short selling risk weakens the effect of ELS. Our evidence is robust to endogeneity checks and suggests that corporate investment can be driven by a particular capital market condition: the amount of lendable shares in the equity loan market.
    • Does data warehouse end-user metadata add value?

      Foshay, N; Mukherjee, Avinandan; Taylor, W. Andrew (2007)
      Many data warehouses are currently underutilized by managers and knowledge workers. Can high-quality end-user metadata help to increase levels of adoption and use?
    • Does explicit comparative advertising affect Indian consumers’ attitudes towards low and high-involvement product?

      Varsha, J.; Trivedi, Rohitkumar; Joshi, V.; Daswani, A. (2015)
      With increasing use of explicit comparative advertisement to get share of consumers’ mind and influence their purchase decision in western context, the same is now used extensively in emerging markets like India. However, there has not been sufficient research to understand the effectiveness of explicit comparative advertisement in low and high-involvement product categories. Therefore, the purpose of this paper is to attempt to understand the effectiveness of explicit comparative advertising on consumers’ attitude and purchase intention (PI) towards high and low-involvement products. The study carried out experimental treatments with 2 × 2 factorial design among 200 Indian young consumers who were in the age group 18-25. The independent variables were product categories and type of advertising (comparative and non-comparative) and dependent variables were consumer attitude and PIs. It was found that the comparative form of advertisement developed favourable response towards the advertisement, rather than towards the brand or PI. The study found that comparative advertising is effective for high as well as low-involvement product category in changing the consumer’s attitude towards the advertisement. The research has used print media for conducting the experiment. It can be inferred that comparisons should be supplemented with additional information in the form of the unique features and associated emotions and feeling of the product in order to develop favourable attitude towards the brand and PI. Comparative advertising is a growing domain and there has been very little contribution by the researchers specially on high and low-involvement product categories.
    • Does foreign direct investment facilitate technological progress? Evidence from Chinese industries

      Liu, X.; Wang, Chengang (2003)
      This paper studies the impact of foreign direct investment (FDI) on total factor productivity (TFP) for a cross sectional sample of Chinese industrial sectors. The possible determinants of TFP are sought with special focus on FDI. An endogeneity test is performed in order to avoid inconsistent results. Evidence indicates that foreign presence, the level of R&D and the firm size are the most important factors enhancing TFP in Chinese industries. The findings from this study support the argument that attracting FDI is an effective way of introducing advanced technology to host countries.
    • Does gold offer a better protection against losses in sovereign debt bonds than other metals?

      Agyei-Ampomah, S.; Gounopoulos, D.; Mazouz, Khelifa (2014-03)
      It is a commonly held view that gold protects investors’ wealth in the event of negative economic conditions. In this study, we test whether other metals offer similar or better investment opportunities in periods of market turmoil. Using a sample of 13 sovereign bonds, we show that other precious metals, palladium in particular, offer investors greater compensation for their bond market losses than gold. We also find that industrial metals, especially copper, tend to outperform gold and other precious metals as hedging vehicles and safe haven assets against losses in sovereign bonds. However, the outcome of the hedge and safe haven properties is not always consistent across the different bonds. Finally, our analysis suggests that copper is the best performing metal in the period immediately after negative bond price shocks.
    • Does university play significant role in shaping entrepreneurial intention? A cross-country comparative analysis

      Trivedi, Rohitkumar (2016)
      The purpose of this article is To foster entrepreneurship among students and incubate more start-ups for economic prosperity, universities around the globe are required to play a key role in terms of developing an overall conducive eco-system for student fraternity. Some previous studies have analyzed student entrepreneurship and the effect of entrepreneurship courses. However, the role of university as provider and enabler of entrepreneurial environment and its impact on entrepreneurial intent among student has not studied in a cross-cultural context. Considering this, the present study seeks to examine the critical role played by university in fostering entrepreneurial intention among post-graduate students. For the said purpose, researcher has taken the broader framework suggested by Kraaijenbrink et al. (2010) to understand university environment and Theory of Planned Behavior (Ajzen, 1975) to measure entrepreneurial intention and it’s antecedents among the sample of final year post-graduate management students of India, Malaysia and Singapore. The total sample size is 1097. The data has been analysed with the help of Exploratory Factor analysis, MANOVA and Structural Equation Modeling. Two factors that emerged out of analysis in relation to university environment and support were: a) Targeted cognitive and non-cognitive support and b) General educational support. With the help of Structural Equation Modelling (SEM), an attempt was made to find the relationship between these two factors and entrepreneurial intention. It was found that university environment and support has significantly positive relationship with perceived behavioural control. With the help of MANOVA, it was found that there is statistically significant difference between perceived university environment and support factors among the students of India, Singapore and Malaysia. With this, it was also found that for both the factors, the highest mean score was found among the students of Malaysia, followed by the students of Singapore and India. The study has closely examined role played by University environment and support to foster entrepreneurship among young students. The findings of the study can be used by post-graduate educational institute to design pedagogy, create enabling entrepreneurship support system and work towards becoming an entrepreneurial university.
    • Domestic sourcing by foreign-owned subsidiaries

      McDonald, Frank; Williams, D.; Tüselmann, H-J.; Turner, C. (Pion, 2008)
      This paper investigates the development of domestic sourcing by foreign-owned subsidiaries (FOS) in the UK. The regional development and international-business literatures are used to develop a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing. Data from a survey of German, French, and US FOS in the UK is used to test the model. The results indicate that increased use of networks and increased operational decision-making autonomy are associated with increased domestic sourcing, but that only a minority of FOS are increasing their use of domestic sourcing. The growing importance of global sourcing is considered as a possible explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The implications for regional-development policy of the findings are also assessed.
    • The Dominance Effect? Multinational Corporations in the Italian Quick-Food Service Sector

      Royle, Tony (2006)
      This paper is based on a study of the employment practices of one Italian-owned multinational corporation (MNC) and one US-owned MNC in the Italian quick-food service sector and examines such issues as work organization, unionization, employee representation and pay and conditions. The paper focuses on the concept of ‘dominance’ and the related convergence and divergence theses. The findings suggest that dominance can not only be interpreted as a mode of employment or production emanating from one country, but could also be associated with one dominant MNC in one sector. Consequently, it is argued that while the effect of host and home country influences may be significant factors in cross-border employment relations practices, more attention needs to be paid to organizational contingencies and the sectoral characteristics within which firms operate.
    • Dominance effects from local competitors: setting institutional parameters for employment relations in multinational subsidiaries; a case from the Spanish supermarket sector

      Royle, Tony; Ortiz, L. (2009)
      Dominance effects are normally associated with multinational corporations (MNCs). However, we argue that a strong local competitor can create ‘dominance effects’ setting the institutional parameters for employment relations in multinational subsidiaries. Moreover such an effect can be persistent. In this case the Spanish-owned El Corte Inglés (ECI) used its power and influence to establish an employer's federation and two ‘yellow unions’. These yellow unions infiltrated the French-owned MNC Carrefour and most of the Spanish supermarket sector by the early 1980s and continue to dominate collective bargaining rounds and works council elections, marginalizing the main independent trade unions. This has resulted in poor pay and working conditions and a lack of effective employee representation across most of the Spanish supermarket sector. The fact that Carrefour established an international framework agreement to observe union rights in 2001 has as yet not changed this situation.
    • Doomed to fail? Convergence and the Eurozone crisis

      Baimbridge, Mark J.; Khadzhieva, Dzheren (2018-10)
      This chapter reviews the substantive issue of monetary union through evaluating countries readiness for entry utilising the experience of the European Union’s process of Economic and Monetary Union (EMU). The European single currency system came under unprecedented strain following the Global Financial Crisis induced Great Recession and there is little reason to assume that this will diminish, in any significant way, in the near future. Crucially it is important to reflect that each economy is unique in its blend of sectoral strengths and weaknesses and comparative advantage, therefore the national interest will be distinctively different for each potential participant. In particular, there is no set rule in which to weigh the relative merits of the arguments associated with membership of a monetary union. In terms of the eurozone the chapter critically evaluates the convergence criteria stipulated in the Treaty on European Union (TEU) and empirically reviews the compliance of EU member states. It questions whether the TEU criteria satisfactorily perform this role, such that the convergence criteria present a series of financial tests, of which some are theoretically spurious, while the remainder are inadequate to indicate the range of consequences of participation. Finally, the chapter undertakes an analysis of the macroeconomic performance of Greece. Specifically, it focuses on the main features, economic events and key economic indicators (GDP per capita, inflation, unemployment, twin deficit of current account and net lending/borrowing, output gap and gross debt) during the crucial 2000-09 period, between eurozone membership and the crisis.
    • Driving Innovation through Big Open Linked Data (BOLD): Exploring Antecedents using Interpretive Structural Modelling

      Dwivedi, Y.K.; Janssen, M.; Slade, E.L.; Rana, Nripendra P.; Weerakkody, Vishanth J.P.; Millard, J.; Hidders, J.; Snijders, D. (2016)
      Innovation is vital to find new solutions to problems, increase quality, and improve profitability. Big open linked data (BOLD) is a fledgling and rapidly evolving field that creates new opportunities for innovation. However, none of the existing literature has yet considered the interrelationships between antecedents of innovation through BOLD. This research contributes to knowledge building through utilising interpretive structural modelling to organise nineteen factors linked to innovation using BOLD identified by experts in the field. The findings show that almost all the variables fall within the linkage cluster, thus having high driving and dependence powers, demonstrating the volatility of the process. It was also found that technical infrastructure, data quality, and external pressure form the fundamental foundations for innovation through BOLD. Deriving a framework to encourage and manage innovation through BOLD offers important theoretical and practical contributions.
    • Drone as a Service (DaaS) in promoting Cleaner Agricultural Production and Circular Economy for Ethical Sustainable Supply Chain Development

      Mahroof, Kamran; Omar, Amizan; Rana, Nripendra P.; Sivarajah, Uthayasankar; Weerakkody, Vishanth J.P. (2021-03-10)
      In order to grow the food the world needs, there is a pressing need to gain a more detailed understanding of how innovative solutions can be incorporated into the agricultural supply chains, particularly within production, for environmentally, economically, ethically and socially viable food production. Despite a number of innovative solutions available, many challenges in agricultural supply are still prevalent, with researchers to date largely focusing on these challenges in isolation, as opposed to exploring the relationships held between these challenges. Thus, supported by Circular Economy, Agriculture, Industry 4.0 literature and expert opinions, agricultural supply chain challenges are modelled and analysed using ISM methodology to help uncover 12 agricultural challenges which ultimately impede goods moving within the supply chain. Findings discovered that the Unproductive Workers and Pesticide Hazards are the key drivers of agricultural challenges. The ISM Hierarchical model elucidates research propositions and a parsimonious model for future research.
    • Dynamic Marketing Capabilities, Foreign Ownership Modes, Sub-national Locations and the Performance of Foreign Affiliates in Developing Economies

      Konwar, Ziko; Papageorgiadis, Nikolaos; Ahammad, M.F.; Tian, Y.; McDonald, Frank; Wang, Chengang (2017)
      Purpose – The purpose of this paper is to examine the role of dynamic marketing capabilities (DMC), foreign ownership modes and sub-national locations on the performance of foreign owned affiliates (FOAs) in developing economies. Design/methodology/approach – Based on a sample of 254 FOAs in Indian manufacturing sector (covering the period of 2000-2008 leading to 623 firm-year observations), the empirical paper adopts the panel data regression approach. Findings – The study confirms the significant importance of DMC to assist FOAs to gain better sales performance in an emerging market such as India. The findings indicate that Wholly Owned Foreign Affiliates (WOFAs) have better sales performance than International Joint Venture (IJV), and Majority-owned IJV (MAIJV) perform better than Minority-owned IJV (MIIJV) in the Indian manufacturing sector. The results confirm that effective deployment of DMC leads to better sales performance in WOFAs and to some extent in MAIJVs. Perhaps the most interesting finding is that developing DMC in non-Metropolitan areas is associated with higher sales growth than in Metropolitan locations. Originality/value – The study contributes to the literature by examining the impact of DMC on performance of FOA by considering the organised manufacturing sector in a large and fast growing developing economy. In addition, the results for the moderating effects provide novel evidence of the conditions under which DMC of FOA interacts with different ownership modes and influence firm performance.