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1 – 10 of 179Gary C. Biddle, Robert M. Bowen and James S. Wallace
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits…
Abstract
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits. Compares EVA’s ability to explain stock returns with that of earnings before extraordinary items (EBEI) and cash flow using 1984‐1993 US data; and finds EBEI is most closely related. Examines EVA’s incentive effects on management investing, financing and operating decisions and shows that, although EVA users decreased new investment, increased dispositions of assets, increased share repurchases, used assets more intensively and increased residual income, market reactions to this were weak. Suggests possible reasons for this and concludes that EVA may align management incentives with shareholders’ interests but this does not necessarily increase shareholder value.
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Kristy Henson, Paul Constantino, F. Robin O’Keefe and Greg Popovich
The topic of human skeletal analysis is a sensitive subject in North America. Laws and regulations surrounding research of human skeletal material make it difficult to use these…
Abstract
Purpose
The topic of human skeletal analysis is a sensitive subject in North America. Laws and regulations surrounding research of human skeletal material make it difficult to use these remains to characterize various populations. Recent technology has the potential to solve this dilemma. Three-dimensional (3D) scanning creates virtual models of this material, and stores the information, allowing future studies on the material. The paper aims to discuss these issues.
Design/methodology/approach
To assess the potential of this methodology, the authors compared processing time, accuracy and costs of computer tomography (CT) scanner to the Artec Eva portable 3D surface scanner. Using both methodologies the authors scanned and 3D printed one adult individual. The authors hypothesize that the Artec Eva will create digital replicas of <5 percent error based on Buikstra and Ubelaker standard osteometric measurements. Error was tested by comparing the measurements of the skeletal material to the Artec data, CT data and 3D printed data.
Findings
Results show that larger bones recorded by the Artec Eva have <5 percent error of the original specimen while smaller more detailed images have >5 percent error. The CT images are closer to <5 percent accuracy, with few bones still >5 percent error. The Artec Eva scanner is inexpensive in comparison to a CT machine, but takes twice as long to process the Eva’s data. The Artec Eva is sufficient in replication of larger elements, but the CT machine is still a preferable means of skeletal replication, particularly for small elements.
Originality/value
This research paper is unique because it compares two common forms of digitization, which has not been done. The authors believe this paper would be of value to natural history curators and various researchers.
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Shivendra Kumar Pandey and Arpita Khare
The purpose of this paper is to understand the effect of antecedents like environmental consciousness and cosmopolitanism (COS) on organic food purchase intention (OFPI) with the…
Abstract
Purpose
The purpose of this paper is to understand the effect of antecedents like environmental consciousness and cosmopolitanism (COS) on organic food purchase intention (OFPI) with the possible mediation of opinion seeking (OS) and opinion leadership (OL).
Design/methodology/approach
A model drawn largely from environmental value–attitude–system model (Dembkowski and Hanmer-Lloyd, 1994) has been proposed and tested. Primary data from four cities across India were collected using a survey.
Findings
COS was the primary factor determining purchase intention. A full mediation of OS behaviour was observed between environmental consciousness and OFPI. No effect of OL on OFPI could be established.
Research limitations/implications
Because COS is positively affecting the organic food patronage and cosmopolitans are more likely to be socially responsible consumers, the organic food (OF) manufacturers should target brick and mortar stores in more cosmopolitan cities like Bangalore, Delhi, etc. The mediating role of OS has wider implications for marketers and advertisers both. In line with both theoretical underpinning (theory of planned behaviour), empirical studies (Chakrabarti and Baisya, 2009) and ours, it seems that the customer seeks credible information before purchasing organic food. The word-of-mouth and social media are recommended channels for similar reasons. The websites are a must for OF manufacturers because retailers may not provide adequate promotion/information of the products to the consumers.
Practical implications
This study enables marketers in the field of OF domain to target the customers better. It also guides them to have a good integrated marketing communication to cater to the opinion-seeking phenomenon of consumers.
Originality/value
The paper investigates the OFPI model better suited to urban cities in India. COS construct usage is a novelty of the paper as well as the mediation of opinion-seeking behaviour. Findings have value both for researchers and practitioners in the OF domain.
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Noah P. Barsky and Wayne G. Bremser
Considers the implications for budgeting and performance measurement of the emphasis on strategic management of human and information resources to obtain global competitive…
Abstract
Considers the implications for budgeting and performance measurement of the emphasis on strategic management of human and information resources to obtain global competitive advantage. Summarizes relevant research, noting increasing use of economic value added, non‐financial measures and the balanced scorecard; and explaining Simons’ (1995) “levers of control” framework. Illustrates how this can be applied to the budgeting process, stressing the importance of interactive control systems which capture an integrated set of critical performance measures, and uses Skandia (insurance, Sweden) as an example. Lists the ten non‐financial performance metrics identified by Ernst & Young (1997) as important to investors and discusses the ten differences between budgeting in a traditional as opposed to a balanced scorecard environment put forward by Govindarajan and Shank (1992). Concludes that the need for multinationals to be flexible means that control and measurement systems must be aligned with strategic goals, taking account of national cultures, investors’ expectations and demands for employee empowerment.
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Alexander Ellinger, Hyunju Shin, William Magnus Northington, Frank G. Adams, Debra Hofman and Kevin O'Marah
The relationship between supply chain management (SCM) competency and firm performance is not well established empirically. This is largely because proven metrics for quantifying…
Abstract
Purpose
The relationship between supply chain management (SCM) competency and firm performance is not well established empirically. This is largely because proven metrics for quantifying the effects of SCM are scarce. Drawing on the strategic managerial concept of supply chain orientation as a source of competitive advantage, this paper aims to apply three independent sources of secondary data to examine the influence of SCM competency on two important firm performance metrics: customer satisfaction and shareholder value.
Design/methodology/approach
SCM competency is assessed with data from the expert opinion element of Gartner Supply Chain Group's (formerly AMR Research) supply chain top 25 rankings; the American Customer Satisfaction Index (ACSI) database and the recently developed Economic Value Added (EVA) Momentum financial metric are utilized as outcome measures.
Findings
Firms recognized by peers and experts for superior SCM competency exhibit higher levels of customer satisfaction and shareholder value than their respective industry averages.
Research limitations/implications
Further evidence is required to prove causality does exist between these variables. Limitations associated with the use of secondary data restricted the number of top performer firms available for this analysis. Nevertheless, the strong correlations found between SCM competency and two critical firm performance metrics may help senior managers and managers from other functional areas to better understand potential advantages associated with developing greater SCM competency.
Practical implications
The assessment of two metrics that differentiate top SCM performers from their industry competitors may also help SCM professionals to better convey the impact of SCM competency to non‐supply chain managers and external participants in the supply chain whose support and cooperation are critical to the success of process improvement initiatives.
Originality/value
In addition to the study findings, blending qualitative expert opinion, formal customer satisfaction and quantitative financial performance secondary data represents a relatively novel and informative method that responds to contentions that different approaches should be employed to develop a more holistic understanding of SCM.
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Mutalib Anifowose, Hafiz Majdi Abdul Rashid, Hairul Azlan Annuar and Hassan Ibrahim
The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysing the relationship between IC efficiency (ICE) and corporate book value of…
Abstract
Purpose
The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysing the relationship between IC efficiency (ICE) and corporate book value of listed firms on main board of Nigeria Stock Exchange.
Design/methodology/approach
This study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of ICE and corporate book value, namely, cash flow from operation and economic value added (EVA), using data over the 2010 to 2014 financial years.
Findings
The results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders.
Research limitations/implications
The generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange.
Practical implications
Those charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory.
Originality/value
This study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs.
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Man has been seeking an ideal existence for a very long time. In this existence, justice, love, and peace are no longer words, but actual experiences. How ever, with the American…
Abstract
Man has been seeking an ideal existence for a very long time. In this existence, justice, love, and peace are no longer words, but actual experiences. How ever, with the American preemptive invasion and occupation of Afghanistan and Iraq and the subsequent prisoner abuse, such an existence seems to be farther and farther away from reality. The purpose of this work is to stop this dangerous trend by promoting justice, love, and peace through a change of the paradigm that is inconsistent with justice, love, and peace. The strong paradigm that created the strong nation like the U.S. and the strong man like George W. Bush have been the culprit, rather than the contributor, of the above three universal ideals. Thus, rather than justice, love, and peace, the strong paradigm resulted in in justice, hatred, and violence. In order to remove these three and related evils, what the world needs in the beginning of the third millenium is the weak paradigm. Through the acceptance of the latter paradigm, the golden mean or middle paradigm can be formulated, which is a synergy of the weak and the strong paradigm. In order to understand properly the meaning of these paradigms, however, some digression appears necessary.
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This paper aims to evaluate the financial performance of companies listed on Tehran Stock Exchange by using negative data envelopment analysis (DEA) approach.
Abstract
Purpose
This paper aims to evaluate the financial performance of companies listed on Tehran Stock Exchange by using negative data envelopment analysis (DEA) approach.
Design/methodology/approach
First, the financial metrics for performance evaluation were extracted and then filtered based on the experts’ opinions. Upon choosing the appropriate financial measures, the financial information of 72 companies selected from four automotive, pharmaceutical, petrochemical and cement industries were collected, and the criteria values were also measured. The financial performance of selected companies was assessed using negative data bounded adjusted measure in the DEA, and efficient and inefficient companies were identified. Finally, the efficient companies were ranked using Andersen and Petersen model.
Findings
The required analysis was conducted, and the financial performance of selected companies listed on Tehran Stock Exchange was evaluated. There were 58 efficient companies with a performance value of 1; 14 companies became inefficient because the efficiency size was less than 1; therefore, reference units were also introduced to the managers for efficiency of inefficient companies.
Originality/value
The aim of this study was to identify the required financial criteria and to determine an appropriate model for performance evaluation based on negative DEA. The findings can help shareholders to identify efficient companies and make the optimal portfolio accordingly; the managers of inefficient companies can also take the proper reforming actions to improve efficiency.
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Ana Brochado, Paulo Rita, Cristina Oliveira and Fernando Oliveira
This paper aims to identify the main themes shared in online reviews by airline travellers, as well as which of these themes were linked with higher and lower value for money…
Abstract
Purpose
This paper aims to identify the main themes shared in online reviews by airline travellers, as well as which of these themes were linked with higher and lower value for money ratings.
Design/methodology/approach
The research used mixed content analyses (i.e. quantitative and qualitative) to examine 1,200 reviews of six airline companies shared by airline travellers in a social media platform.
Findings
The analyses revealed nine themes in descriptions of airline travel experiences. These are the core services during “flights”, “airport” operations, crew and ground “staff”, ticket “classes”, “seats”, inflight “services”, “entertainment”, overall experiences of “airlines” and post-purchase recommendations of with which companies to “fly”. Low value for money ratings are linked with the “airport” and “flights” themes.
Originality/value
The results offer useful insights into airline travellers’ overall experiences based on social media information and facilitate the identification of the main themes linked with different value for money ratings.
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The purpose of this paper is to survey the accounting concepts of valuation and the direction of accounting research in terms of development of valuation models. It also simulates…
Abstract
Purpose
The purpose of this paper is to survey the accounting concepts of valuation and the direction of accounting research in terms of development of valuation models. It also simulates some of the models. Moreover, the Dividend Discount Model, a financial model, is the foundation of a number of accounting based models and is discussed.
Design/methodology/approach
The objectives are achieved by surveying the literature for accounting models and empirical evidence for the model. The methodology also incorporates simulating the models under different conditions to find out the valuation predicted.
Findings
It was found out that the accounting models predict that accrual principles play a role in increasing the discrepancy between the book value and the market value of equity. Some of the recent valuation models, like the Feltham–Ohlson linear information model, incorporate accrual principles like conservatism. Though the empirical evidences are mixed for these models, it provides a theoretical framework to incorporate accrual principles in the accounting valuation models.
Practical implications
This paper provides practitioners with a snapshot of different models and their limitations.
Originality/value
This paper provides a comprehensive picture of the state of accounting valuation models and provides input for further development of these models.
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