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1 – 10 of over 13000The purpose of this paper is to investigate whether European banks use commission and fee income (CF) to smooth reported earnings or to persistently increase reported earnings as…
Abstract
Purpose
The purpose of this paper is to investigate whether European banks use commission and fee income (CF) to smooth reported earnings or to persistently increase reported earnings as an income-increasing earnings management strategy.
Design/methodology/approach
The author tests the income-smoothing hypothesis following the approach of Stubben (2010) and Ahmed et al. (1999).
Findings
The author finds that European banks use CF to smooth reported earnings and this behaviour is pronounced among non-too-big-to-fail (NTBTF) European banks compared to too-big-to-fail (TBTF) European banks. The author also finds a positive and significant correlation between interest income and non-interest income (CF) indicating increased systematic risk due to reduced diversification benefits. The author also finds that the CF of NTBTF banks is procyclical with fluctuating economic conditions but not for TBTF banks. Also, the author finds evidence for income-increasing earnings management in the post-crisis period, for larger European banks and when banks have higher ex post interest income, implying that the propensity to engage in income-increasing earnings management significantly depends on bank size and ex post interest margin considerations. The findings have policy implications.
Originality/value
The author examines alternative financial numbers that banks use to manage earnings. The author focusses on income smoothing via CF among European banks, a context that has not been explored in the literature.
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The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based SEM. The…
Abstract
Purpose
The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based SEM. The purpose of this paper is to question the current research myopia in management research, because the paper adumbrates theoretical foundations and guidance for the two SEM streams: covariance-based and variance-based SEM; and improves the conceptual knowledge by comparing the most important procedures and elements in the SEM study, using different theoretical criteria.
Design/methodology/approach
The study thoroughly analyzes, reviews and presents two streams using common methodological background. The conceptual framework discusses the two streams by analysis of theory, measurement model specification, sample and goodness-of-fit.
Findings
The paper identifies and discusses the use and misuse of covariance-based and variance-based SEM utilizing common topics such as: first, theory (theory background, relation to theory and research orientation); second, measurement model specification (type of latent construct, type of study, reliability measures, etc.); third, sample (sample size and data distribution assumption); and fourth, goodness-of-fit (measurement of the model fit and residual co/variance).
Originality/value
The paper questions the usefulness of Cronbach's α research paradigm and discusses alternatives that are well established in social science, but not well known in the management research community. The author presents short research illustration in which analyzes the four recently published papers using common methodological background. The paper concludes with discussion of some open questions in management research practice that remain under-investigated and unutilized.
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Fulvio Fortezza, Alessandro Pagano and Roberta Bocconcelli
Even though the crowdfunding (CF) literature is rapidly reaching its maturity phase, the topic of serial CF (i.e. the participation in more than one CF campaign) is as much…
Abstract
Purpose
Even though the crowdfunding (CF) literature is rapidly reaching its maturity phase, the topic of serial CF (i.e. the participation in more than one CF campaign) is as much promising as still largely under explored. This study thus aims to offer a thorough view of the dynamic and complex processes characterizing the participation of the start-ups to more than one campaign adopting a business network perspective.
Design/methodology/approach
In line with an explorative research aim, a multiple case study analysis is performed by taking into consideration four start-ups engaged in more than one CF campaigns with different combinations of equity and non-equity CF, adopting the actor–resource–activity (ARA) model as theoretical framework.
Findings
Multiple CF campaigns are embedded in the overall changing startup’s network and are affected by the concurrent and overlapping startup’s development processes. From this standpoint, the adoption of the ARA model suggests to reconsider the “serial” dimension of multiple CF campaigns. These processes can be more or less “linear” as they could be affected by the combination of CF schemes and by the degree of alignment of actors, activities and resources, whose “assembly” can be facilitated by learning processes and impaired by unexpected circumstances.
Originality/value
This paper explores in depth the startup’s serial CF journey, building on recent studies calling for stronger analyses of the directions and outcomes of innovative funding trajectories pursued and implemented by new business ventures. From this standpoint, to the best of the authors’ knowledge, this is the first study to consider a complete spectrum of combinations between CF schemes within serial CF, thus allowing for a better understanding of the role of such a factor within a dynamic and contextual view, that is, that offered by the business network perspective. This paper also contributes to the Industrial Marketing and Purchasing research on start-ups.
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This chapter investigates the impact of coordination and control mechanisms on the orientation to performances, looking at the relation between Corporate Foundations and their…
Abstract
Purpose
This chapter investigates the impact of coordination and control mechanisms on the orientation to performances, looking at the relation between Corporate Foundations and their Founder Firms. The research starts from the consideration that the relationship between CFs and Founder Firms can be considered similar to the relationship between headquarter and subsidiaries in large corporations, as the ties are very strong and significant.
Methodology/approach
In order to address the impact of control and coordination mechanisms on CFs’ orientation to performance, we managed a survey addressed to 188 CFs from six European countries, representing the most significant context for corporate philanthropy in Europe.
Findings
The results of a linear regression show that only selected mechanisms are effective for boosting CFs’ orientation to performance, and that these tools must be adapted to the specific nature of the CFs.
Research implications
The study can help Founder Firms to identify the more effective mechanisms to improve the performance of the CFs they support, in order to ensure the possibility for both the parties to pursue the shared value creation.
Originality/value
The research has put in evidence that CFs must be explored taking into consideration their close tie to Founder Firm, which differentiates them from other interdependent foundations.
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Kobra Gharouni Jafari, Esmatullah Noorzai and M. Reza Hosseini
This paper aims to explore the potential capabilities of the application of computing features (CFs) in resolving the most common issues that adversely affect performance in…
Abstract
Purpose
This paper aims to explore the potential capabilities of the application of computing features (CFs) in resolving the most common issues that adversely affect performance in architecture, engineering and construction (AEC) projects.
Design/methodology/approach
Through a comprehensive review of the literature, 10 most significant CFs were identified. Also, the 15 most prevalent issues in AEC projects (AECIs), for which computers can provide remedial solutions, were determined and categorized into three phases of design, construction and operation. Potential impacts of each CF on handling AECIs in each of the three stages were assessed based on experts’ perceptions.
Findings
CFs are ranked based on their potential on solving the identified AECIs. So too, the order of the most common AECIs is provided in terms of their disposition for being solved by CFs. In this regard, findings reveal that the most effective CF in addressing AECIs is “artificial intelligence” and the most solvable AECI by using CFs is “increased costs and poor budgeting.” Furthermore, the most appropriate CF to handle each AECI is specified, as a result of which, it is inferred CFs are more effective in handling operation-related issues, compared to design, construction phases.
Practical implications
The results can provide a profound insight into software/tool selection based on features that enable technological tools and programs to handle AECIs in the three major phases of projects. Moreover, technology providers and vendors are provided with a benchmark to supply products according to the demands of the AEC industry. The study provides a readily available point of reference for practitioners in selecting various CFs for handling common AECIs that affect their projects.
Originality/value
A large body of research is available on the evaluation of various computer-based technologies and tools. Nevertheless, little, if any, study exists that explores the potential of underlying CFs of these technologies in addressing endemic problems across various stages of AEC projects. This study is one of the first in its kind that shifts to exploring various CFs, as the main enablers of computer technologies, establish links between these CFs and common issues of projects and assesses the potential of various CFs in addressing common problems of construction projects.
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Mohammad Reza Jalilvand, Javad Khazaei Pool, Hadi Balouei Jamkhaneh and Reihaneh Alsadat Tabaeeian
The purpose of this paper is to examine how total quality management (TQM) and corporate social responsibility (CSR) affect entrepreneurial orientation (EO) in the context of the…
Abstract
Purpose
The purpose of this paper is to examine how total quality management (TQM) and corporate social responsibility (CSR) affect entrepreneurial orientation (EO) in the context of the hotel industry.
Design/methodology/approach
Drawing from the hospitality literature, the relationships among TQM, CSR and EO were hypothesized and tested. Based on the valid responses collected from a survey questionnaire, structural equation modeling approach was used to examine the research model.
Findings
The results indicate that TQM positively affects CSR. Furthermore, CSR was a significant antecedent of EO.
Originality/value
The combination of a developing country context and the significance of TQM, CSR and EO in hotel industry enhance the contextual contribution of the paper.
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The purpose of this paper is to inform decision makers about the data and information generated by commonly‐used, holistic environmental assessment approaches.
Abstract
Purpose
The purpose of this paper is to inform decision makers about the data and information generated by commonly‐used, holistic environmental assessment approaches.
Design/methodology/approach
Descriptions of eight types of lifecycle‐based methods are provided: Carbon/Greenhouse Gas (GHG) Management, Ecological Footprint, Energy Assessments, Fuel Cycle Analysis, Life Cycle Assessment (LCA), Life Cycle Risk Management (LCRM), Material Flow Analysis (MFA), and Sustainability Indicators. Example assessments of bio‐based products are provided because of the current environmental and socio‐economic relevance of bio‐feedstocks.
Findings
Assessment methods that focus on single impact indicators, such as air emissions (Carbon Management and Fuel Cycle Analysis) and energy, typically show biofuels in a favorable light compared to conventional gasoline (petrol). Ecological Footprint addresses land use implications; LCRM addresses possible impacts to human and ecological health due to chemical contaminant exposure; and MFA identifies areas to improve resource management and decrease the use of natural resources. LCA and Sustainability Indicators cover a wider range of environmental factors.
Research limitations/implications
This study of environmental assessment approaches that incorporate a life cycle perspective revealed the importance of integrating the data and information generated by these disparate evaluations to make quality decisions. Developing such synergies is identified as a research need.
Practical implications
The growing need by decision makers to look broadly at engineered systems led to a proliferation of approaches that are holistic and wide reaching. This paper provides clear descriptions of them to help dispel the potential confusion regarding what the various approaches cover when applying a lifecycle perspective.
Originality/value
The paper bridges the gap between science and the decision‐making process by describing what the various lifecycle‐based methods for environmental assessment can and cannot do. Moreover, it provides evidence that no single tool encompasses all possible environmental impacts.
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The purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.
Abstract
Purpose
The purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.
Design/methodology/approach
Theory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.
Findings
The paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.
Research limitations/implications
Only the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.
Practical implications
Managers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.
Originality/value
The paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.
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Victor Prybutok and Robert Cutshall
In this study, a Malcolm Baldrige National Quality Award (MBNQA) criteria‐based survey was used to assess the quality status of organizations that employ quality professionals…
Abstract
In this study, a Malcolm Baldrige National Quality Award (MBNQA) criteria‐based survey was used to assess the quality status of organizations that employ quality professionals. The objective was to focus on the relationship between leadership (LS), information and analysis, human resource planning, process quality, and customer focus. The result was the development of an MBNQA‐based model that demonstrated the relationship between executive LS and the MBNQA factors.
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Peterson K. Ozili and Erick Outa
The purpose of this paper is to investigate whether banks use commission and fee (CF) income to manage reported earnings as an income-increasing or income smoothing strategy.
Abstract
Purpose
The purpose of this paper is to investigate whether banks use commission and fee (CF) income to manage reported earnings as an income-increasing or income smoothing strategy.
Design/methodology/approach
The authors employ the regression methodology to detect real earnings management.
Findings
The authors find that banks use CF income for income smoothing purposes and this behaviour persists during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings.
Research limitations/implications
The findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions.
Practical implications
From an accounting standard setting perspective, the evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically.
Originality/value
This study contributes to the positive accounting theory (PAT) literature which examines the accounting and non-accounting decisions that influence managers’ choice of accounting methods in financial reporting. Extending the PAT, the authors show that certain conditions can incentivize managers to engage in earning management such as during recessions and weak institutional quality or weak investor protection.
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