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Open Access
Article
Publication date: 22 July 2021

Murat Isiker and Oktay Tas

The paper aims to measure the magnitude of the event-induced return anomaly around bonus issue announcement days in Turkey for recent years. Also, by describing the information…

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Abstract

Purpose

The paper aims to measure the magnitude of the event-induced return anomaly around bonus issue announcement days in Turkey for recent years. Also, by describing the information content of these announcements with the current data, the study tries to find out the factors that cause return anomaly in Borsa Istanbul when firm boards release the bonus issue decision.

Design/methodology/approach

The paper conducts event study methodology for detecting market anomaly around bonus issue announcements. For the pairwise comparison purpose, t-test and one-way ANOVA methods are applied to examine if abnormal returns vary according to the information content of the announcements.

Findings

Announcement returns for bonus issues from internal resources outperform the issues that are distributed from last year's net income as bonus shares. Findings indicate different return behaviour among internal resources sub-groups. Findings also suggest that investors in Turkey welcome larger-sized issues, while cumulated returns for the initial offers significantly differ from the latter issues.

Research limitations/implications

Findings are limited to the Turkish equity market. Also, the Public Disclosure Platform of Turkey, which is the main data source of the study, does not provide bonus issue announcements before 2010. Therefore, the previous year's data cannot be included in the analysis.

Originality/value

This paper is novel in terms of considering the main resources of the bonus issue in detail to measure the announcement's impact on stock returns.

Details

Journal of Capital Markets Studies, vol. 5 no. 1
Type: Research Article
ISSN: 2514-4774

Keywords

Open Access
Article
Publication date: 15 August 2019

Syed Munawar Shah and Mariani Abdul-Majid

The purpose of this paper is to examine whether reputation element affects the decision relative performance of trust, bonus and incentive contracts using social laboratory…

Abstract

Purpose

The purpose of this paper is to examine whether reputation element affects the decision relative performance of trust, bonus and incentive contracts using social laboratory experiments.

Design/methodology/approach

The study conducts the following lab experiments bonus–incentive treatment without reputation, bonus–incentive treatment with reputation and trust–incentive treatment with reputation.

Findings

The study finds that the reputation and fairness concerns, in contrast to self-interest, may have a decisive impact on the actual and optimal choices in the reciprocity-based contracts. The principal pays higher salaries in the bonus contract as compared to an incentive contract.

Originality/value

The study contributes to the behavioral economic literature in the following dimensions. The existing literature on lab experiments considers a bonus contract as better than the debt contract; however, it does not consider the trust contract better than the debt contract.

Details

Islamic Economic Studies, vol. 27 no. 1
Type: Research Article
ISSN: 1319-1616

Keywords

Open Access
Article
Publication date: 6 July 2021

Cuong Le-Van and Nguyen To-The

Total factor productivity (TFP), for a country and for a firm as well, is a crucial element for economic growth by inducing high output. Actually, workers' effort is among the…

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Abstract

Purpose

Total factor productivity (TFP), for a country and for a firm as well, is a crucial element for economic growth by inducing high output. Actually, workers' effort is among the important factors that positively influence the TFP.

Design/methodology/approach

In this paper, the authors assume that the wage bonus enhances the worker's effort. Wage bonus is an incentive mechanism and plays a role in the TFP as is shown in a recent paper by Le Van and Pham (2021). The firm will maximize its profits. The supplies of capital and workers are exogenous. At equilibrium, the authors obtain that wage bonus has positive effects on output, labor productivity and price of the output.

Findings

The wage bonus system can make the optimal sequence of outputs grow without bounds. And if the optimal sequence converges to a steady state, this one can be characterized by higher output per capita than that in the steady state without the bonus.

Originality/value

In particular, the result show if, thanks to the wage bonus externality effect, the production may become of increasing returns and if the incentive mechanism is very strong, any optimal path of physical capitals will converge to infinity.

Details

Fulbright Review of Economics and Policy, vol. 1 no. 1
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 23 February 2022

Dharen Kumar Pandey, Vineeta Kumari and Brajesh Kumar Tiwari

The authors examine the impacts of corporate announcements on stock returns during the pandemic stress.

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Abstract

Purpose

The authors examine the impacts of corporate announcements on stock returns during the pandemic stress.

Design/methodology/approach

The authors employ the event study methodology with the market model on a sample of 90 events (announcement and ex-date).

Findings

The authors find that all the corporate announcements do not impact the stock returns in a similar pattern. While the bonus announcement, ex-bonus and ex-split events led to positive significant abnormal returns on the event date, the rights issue and stock-split announcements failed to influence the stock returns. The findings suggest that before making such announcements, the corporates should wait until the market recovers because even the positively impacting events result in negative market responses during pandemic stress.

Practical implications

This study will guide the policymakers to stimulate share prices during such pandemics with the help of various corporate announcements. The investors will be assisted in understanding the stock market mechanism and making wise decisions before reacting to corporate actions during a pandemic or emergency period. While the policymakers are concerned with influencing the share prices, the investors are concerned with the composition of the risk-return parameters in their portfolio. This study will act as an essential investment tool for both.

Originality/value

To the best of the authors’ knowledge, the authors conduct the first-ever study to examine the impacts of corporate announcements during a pandemic stress period that significantly contributes to the literature. The authors examine the announcement effects in India and accurately anticipate that this study will be a pioneer in this field. This study also paves the way for future researches in this area.

Details

Asian Journal of Accounting Research, vol. 7 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 12 March 2021

Marek Bugdol and Piotr Jedynak

The aim of this paper is to show the ways of setting quality objectives, their attributes and the conditions under which they can perform a motivational function.

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Abstract

Purpose

The aim of this paper is to show the ways of setting quality objectives, their attributes and the conditions under which they can perform a motivational function.

Design/methodology/approach

Collecting relevant data, the authors used the results of previous research and theoretical assumptions concerning quality objectives. Subsequently, they carried out a survey and exemplification research based on participatory observations, document content analysis and interviews.

Findings

Goals are set mainly by top management, but the communication process itself is insufficient; the needs of system users are not taken into account. In the opinion of the employees, quality objectives are measurable and objective, although not very ambitious. For quality objectives to fulfil a motivational function, they should be objective and measurable. Also, the allocation of tasks among employees needs to be fair. Furthermore, quality objectives have to play a greater role in remuneration systems.

Originality/value

This paper is one of the first publications on the role and function of quality objectives. Its advantage is that it defines the conditions under which such objectives can have a motivational effect and encourage employees to pursue the improvement of their products and services.

Details

International Journal of Quality & Reliability Management, vol. 39 no. 1
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 19 November 2019

Guy Major and Jonathan Preminger

Both the academic literature and practitioners have long noted the need for an equity investment mechanism for worker-controlled firms that alleviates investor anxieties without…

1096

Abstract

Purpose

Both the academic literature and practitioners have long noted the need for an equity investment mechanism for worker-controlled firms that alleviates investor anxieties without undermining internal workplace democracy. The purpose of this paper is to outline one such possible mechanism.

Design/methodology/approach

The proposal locks together the interests of workers and external investors, via non-voting shares with dividends set by a pre-agreed value-added sharing formula. Each worker is paid a base wage, with the average across the firm being a pre-defined multiple of the national minimum wage. Any additional surplus is split into a number of equal “slices”, with each share receiving one slice as its dividend, and the average worker receiving a pre-agreed number of slices as a bonus.

Findings

Workers have an incentive to maximise their own incomes, and in so doing, will also automatically maximise the dividends received by investors, obviating the need for the shares to have normal voting rights. Working on this principle of aligned interests, the authors also discuss reinvestment, worker ownership of non-voting shares and possibilities for a secondary share market. The authors show how this proposal will be a significant step in aligning the interests of investors with owner-workers in a democratic, negotiated way that shares both risk and returns, thus making worker-controlled firms more attractive to equity investment.

Originality/value

In light of the recognised problem of underinvestment in worker-controlled firms and the risk of their degeneration, this paper will interest both academics and practitioners in employee ownership, co-operatives and various forms of workplace democracy.

Details

Journal of Participation and Employee Ownership, vol. 2 no. 2
Type: Research Article
ISSN: 2514-7641

Keywords

Open Access
Article
Publication date: 10 July 2017

Wasiullah Shaik Mohammed, Mufti Abdul Kader Barkatulla, Mohammed Husain Khatkhatay and Zaffar Abbas

The purpose of this paper is to study the concept of purging and present a comparative study of the existing purging methodologies prevailing in the market with a view to evolving…

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Abstract

Purpose

The purpose of this paper is to study the concept of purging and present a comparative study of the existing purging methodologies prevailing in the market with a view to evolving a more effective method of capturing the entire impure income to be purged.

Design/methodology/approach

To illustrate the present discussion, a case study of purging based on numerical examples has been included. The argument has also been supported with empirical data related to the universe of Sharīʿah-compliant stocks listed on Indian stock exchanges.

Findings

During the study, it was found that the existing purging methodologies of calculating impure income to be purged have conceptual and practical shortcomings.

Research implications/limitations

The scope of the current research is limited to calculation of impure income which accrues on account of Sharīʿah non-compliant investments directly or indirectly. It does not try to quantify the benefit which may be imputed in the form of capital gains made in trading of the investee company shares due to higher market value of the shares as a result of the impure income earned by the investee company. The paper has focused on identifying and calculating the impure income on account of interest. Impure income earned from specific Sharīʿah non-compliant products or services has not been considered directly. The reason for this is that companies dealing in such products or services are generally excluded at the business screening stage itself. In the case of those companies which derive a relatively small proportion of their total income from such activities and pass the business screening stage, the quantum of the impure income is not generally reported separately in company accounts.

Practical implications/limitation

The result of adopting the proposed methodology will lead to complete purging of impure income (to the extent that is possible under present Company Law and stock exchange reporting regulations). Implementation of the proposed method requires a proper understanding of the working of listed companies and either a sound mathematical background or access to a software application to calculate the impure income to be purged.

Originality/value

The current paper is original and based on the authors’ personal understanding and experience of providing Sharīʿah consultancy services related to Sharīʿah-compliant investments.

Details

ISRA International Journal of Islamic Finance, vol. 9 no. 1
Type: Research Article
ISSN: 0128-1976

Keywords

Open Access
Book part
Publication date: 1 May 2019

Per Fridtjof Larssen, Atle Engebø, Ola Lædre and Ole Jonny Klakegg

This paper aims to examine how a partnering contract facilitates project values and the culture in a construction project and the consequences of said facilitation. Hence, it…

Abstract

Purpose

This paper aims to examine how a partnering contract facilitates project values and the culture in a construction project and the consequences of said facilitation. Hence, it answers the following research questions: 1) How does the contractual framework in Bispevika facilitate relational culture? 2) What effects of this facilitation can be identified in the early phase of development?

Design/Methodology/Approach

An explorative approach is taken into a single case. A literature study into the topics of relational contracting and culture provides a backdrop for the study. The empirical work consists of a study of the construction contracts and six in-depth interviews with actors from the supply-chain.

Findings

Contractual elements affect the project organizations’ motivation. On the basis of existing literature, five contractual elements are identified explicitly in the contracts: “shared goals”, “incentives and bonus”, “open book”, “colocation”, and “design-build”.

Research Limitations/Implications

The data collection is restricted to a single point in time in a single project. Further research is necessary both at a later stage in the same case and in similar projects.

Practical Implications

The paper identifies the effects that proper use of contractual elements has on the relational culture in a construction project and is, therefore, important for subsequent research within the area.

Originality/Value

In addition to identifying the existing contractual elements, the interviews also revealed two additional practices that might be useful for subsequent research: “involvement of executive management” and “subsequent contracts dependent on previous project performance”.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Article
Publication date: 23 July 2020

Gbemi Oladipo Olaore, Bimbo Onaolapo Adejare and Ekpenyong Ekpenyong Udofia

Betting games have become a global industry worth billions of dollars providing employment to millions and contributing to the gross domestic product (GDP) of several countries…

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Abstract

Purpose

Betting games have become a global industry worth billions of dollars providing employment to millions and contributing to the gross domestic product (GDP) of several countries. While there are debates and controversies surrounding betting games discourse, a growing body of literature shows that it has been exacerbated by growing unemployment rates. This paper aims to examine the nexus between the increasing involvement of youth in betting games and unemployment from the Nigerian perspective.

Design/methodology/approach

The study adopts simple random and stratified sampling techniques to select participants for the study. Three hypotheses were tested for this study and confirmatory factor analysis (CFA) and structural equation model (SEM) was used to test the hypotheses.

Findings

The three hypotheses tested in this study were coined from previous literature. The study established a direct link between technology advancement, promises of winning big coupled with bonuses while unemployment was not significant to youth involvement in betting games. The study also showed that playing betting games provides another source of income to the youth, who are already engaged in one form of work or another. Finally, youth involvement in betting games has created awareness regarding different sports in the world, while contributing to Nigeria’s economy.

Practical implications

As betting games centre as a business in Nigeria has contributed substantially and positively to unemployment in Nigeria; the Government of Nigeria are encouraged to streamline and regulate the activities of the sector such that they can contribute significantly to the country GDP and provide employment opportunities to the youths.

Originality/value

The research shows that the reason why betting games have a massive turnaround of youths in Nigeria is not majorly because of unemployment but as another means to a substantial financial individual/family income. Thus, Nigerian youths see betting games as an avenue to make more money. The study is the first of its kind to examine the nexus between betting games, technology and unemployment hence, its contribution to knowledge.

Details

Journal of Humanities and Applied Social Sciences, vol. 3 no. 3
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 15 July 2020

Tanja Petry, Corinna Treisch and Bernadette Bullinger

Applying the institutional logics perspective to applicant attraction, this study investigates the level of uniformity among preferences for consulting job attributes associated…

2002

Abstract

Purpose

Applying the institutional logics perspective to applicant attraction, this study investigates the level of uniformity among preferences for consulting job attributes associated with the institutional logics of the corporation, the profession and the family, and tests for the influence of anticipatory socialization differences.

Design/methodology/approach

The study uses a discrete choice experiment with 232 business students. A hierarchical Bayes approach to conjoint analysis uncovers part-worth heterogeneity and allows for subsequent cluster and regression analysis of the choice data.

Findings

The findings identify a dominant job-oriented preference type and a minor career-oriented preference type. Anticipatory socialization through personal prior work experience and the occupation of friends decreases adherence to the logic of profession and increases the relevance of the family logic. The parents' occupation has only a minimal influence on preferences.

Practical implications

The study provides attribute-based recommendations on how professional service firms can effectively address the complex expectations of potential applicants in their job ads for an entry position and underlines the role of intra-generational reference groups as important anticipatory socializers.

Originality/value

By testing individual socialization effects at the pre-hire stage and beyond the organizational level, the study fills a void in both the recruitment and the institutional literature.

Details

Employee Relations: The International Journal, vol. 42 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

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