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Article
Publication date: 21 November 2023

Patrice Gaillardetz and Saeb Hachem

By using higher moments, this paper extends the quadratic local risk-minimizing approach in a general discrete incomplete financial market. The local optimization subproblems are…

Abstract

Purpose

By using higher moments, this paper extends the quadratic local risk-minimizing approach in a general discrete incomplete financial market. The local optimization subproblems are convex or nonconvex, depending on the moment variants used in the modeling. Inspired by Lai et al. (2006), the authors propose a new multiobjective approach for the combination of moments that is transformed into a multigoal programming problem.

Design/methodology/approach

The authors evaluate financial derivatives with American features using local risk-minimizing strategies. The financial structure is in line with Schweizer (1988): the market is discrete, self-financing is not guaranteed, but deviations are controlled and reduced by minimizing the second moment. As for the quadratic approach, the algorithm proceeds backwardly.

Findings

In the context of evaluating American option, a transposition of this multigoal programming leads not only to nonconvex optimization subproblems but also to the undesirable fact that local zero deviations from self-financing are penalized. The analysis shows that issuers should consider some higher moments when evaluating contingent claims because they help reshape the distribution of global cumulative deviations from self-financing.

Practical implications

A detailed numerical analysis that compares all the moments or some combinations of them is performed.

Originality/value

The quadratic approach is extended by exploring other higher moments, positive combinations of moments and variants to enforce asymmetry. This study also investigates the impact of two types of exercise decisions and multiple assets.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 18 October 2023

Sunil Sahadev, Sean Chung, Mustafeed Zaman, Indria Handoko, Tan Vo-Thanh, Nguyen Phong Nguyen and Rajeev Kumra

The study aims to look at deep eWOM providing behaviour in m-commerce and attempts to explore its antecedents. Personalisation is proposed as an indirect antecedent of deep eWOM…

Abstract

Purpose

The study aims to look at deep eWOM providing behaviour in m-commerce and attempts to explore its antecedents. Personalisation is proposed as an indirect antecedent of deep eWOM providing behaviour mediated by hedonic and utilitarian value perceptions and personal identification.

Design/methodology/approach

Based on social-exchange theory, the conceptual model links the study antecedents to deep eWOM providing behaviour. The conceptual model was validated through a multi-country study. A large sample of m-commerce users in the UK (n = 505), India (n = 422) and Vietnam (n = 618) were contacted to collect the data. Data were analysed through structural equations modelling procedure with invariance analysis conducted to ensure that the results from the three samples could be compared. The authors also conducted post-hoc analysis to explore the mediation paths between variables.

Findings

The study finds support to the conceptual model across the samples from the three countries. Personalisation is found to increase value perceptions – both utilitarian and hedonic – and personal identification which leads to “deep” eWOM providing behaviour across all the three countries. The serial mediation also provides comparable results across the three countries.

Originality/value

The study contributes to the understanding of deep eWOM providing behaviour – a construct with high practical relevance which has however not been explored sufficiently in current literature. The study also contributes to the literature that analyses the consequences of personalisation in m-commerce.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 12 January 2023

Jia Jia Chang, Zhi Jun Hu and Changxiu Liu

In this study, a dynamic contracting model is developed between a venture capitalist (VC) and an entrepreneur (EN) to explore the influence of asymmetric beliefs regarding…

Abstract

Purpose

In this study, a dynamic contracting model is developed between a venture capitalist (VC) and an entrepreneur (EN) to explore the influence of asymmetric beliefs regarding output-relevant parameters, agency conflicts and complementarity on the VC's posterior beliefs through the EN's unobservable effort choices to influence the optimal dynamic contract.

Design/methodology/approach

The authors construct the contracting model by incorporating the VC's effort, which is ignored in most studies. Using backward induction and a discrete-time approximation approach, the authors solve the continuous-time contract design problem, which evolves into a nonlinear ordinary differential equation (ODE).

Findings

The optimal equity share that the VC provides to the EN decreases over time. In accordance with the empirical evidence, the EN's optimistic beliefs regarding the project's profitability positively affect its equity share. However, the interactions between the optimal equity share, project risk and both partners' degrees of risk aversion are not monotonic. Moreover, the authors find that the optimal equity share increases with the degree of complementarity, which indicates that the EN is willing to cooperate with the VC. This study’s results also show that the optimal equity shares at each time are interdependent if the VC is risk-averse and independent if the VC is risk-neutral.

Research limitations/implications

In conclusion, the authors highlight two potential directions for future research. First, the authors only considered a single VC, whereas in practice, a risk project may be carried out by multiple VCs, and it is interesting to discuss how the degree of complementarity affects the number of VCs that ENs contract. Second, the authors may introduce jumps and consider more general multivariate stochastic volatility models for output dynamics and analyze the characteristics of the optimal contracts. Third, further research can deal with other forms of discretionary output functions concerning complementarity, such as Cobb–Douglas and constant elasticity of substitution (See Varian, 1992).

Social implications

The results of this study have several implications. First, it offers a novel approach to designing dynamic contracts that are specific and easy to operate. To improve the complicated venture investment situation and abate conflict between contractual parties, this study plays a good reference role. Second, the synergy effect proposed in this study provides a theoretical explanation for the executive compensation puzzle in economics, in which managers are often “rewarded for luck” (Bertrand and Mullainathan, 2001; Wu et al., 2018). This result indicates a realistic perspective on financing and establishing cooperative relationships, which enhances the efficiency of venture investment. Third, from an empirical standpoint, one can apply this framework to study research and development (R&D) problems.

Originality/value

First, the authors introduce asymmetric beliefs and Bayesian learning to study the dynamic contract design problem and discuss their effects on equity share. Second, the authors incorporate the VC's effort into the contracting problem, and analyze the synergistic effect of effort complementarity on the optimal dynamic contract.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 25 July 2023

James M. Vardaman, William E. Tabor, Darel C. Hargrove and Feigu Zhou

The role of family business staffing practices in their ultimate success remains largely unknown. The purpose of this paper is to test the notion that firms with greater family…

Abstract

Purpose

The role of family business staffing practices in their ultimate success remains largely unknown. The purpose of this paper is to test the notion that firms with greater family essence manifest their commitment by leveraging referrals as a recruitment source, which in turn is associated with higher performance. The hypothesized model posits that reduced agency costs from hiring through owner referral utilization (ORU) provide high-family essence firms with stronger performance.

Design/methodology/approach

The study draws upon a sample of 194 small and medium-sized family business owners.

Findings

Findings from OLS regression and the PROCESS model in SPSS support the hypothesis that recruiting nonfamily employees from referrals helps lessen agency conflicts and serves as an intervening mechanism in the relationship between family firm essence and firm performance.

Originality/value

This study draws on agency theory to shed light on how family firms successfully bring nonfamily employees into the fold despite their human resource limitations. The results extend theory on family businesses by demonstrating that those with higher degrees of family essence are more likely to attract applicants via ORU. Leveraging this recruiting practice allows family businesses to hire nonfamily employees who share the values and goals of the family firm, thus lowering agency costs and fostering higher performance. More broadly, the findings offer insight into the role of staffing practices in family firm success.

Details

Journal of Family Business Management, vol. 14 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 13 July 2022

Avirag Bajpai and Subhas C. Misra

Indian construction firms are falling behind in the use of digital technology in the workplace, and this study aims to give a framework and assess the role of enablers in the…

Abstract

Purpose

Indian construction firms are falling behind in the use of digital technology in the workplace, and this study aims to give a framework and assess the role of enablers in the implementation and continuing digitalization of the Indian construction sector.

Design/methodology/approach

An exploratory qualitative research technique is used in this article, and multiple detailed interviews and surveys are done with professionals from the industry and academia. To conclude the significance and relevance of the different constructs and indicators, the partial least square-structural equation modeling (PLS-SEM) approach is used.

Findings

Barriers are essential enablers for effective implementation, while success factors are important drivers for the successful continuance of digitalization in the construction sector. However, stakeholders' perceived benefit has a substantial role in both implementation and continuance.

Research limitations/implications

In this research paper, the scope of this investigation for a generalized exploratory study is restricted to construction firms within India. Further, a rigorous longitudinal study may also be performed to examine the subjectivity of the responses in order to ensure digital continuation. This study identifies limited manifest indicators. Additional indications, however, may be included based on the other company's resources, structure and geographic location.

Practical implications

The study's findings have two implications. In the beginning, it gives a direction to the construction sector by highlighting the framework in which implementation and continuance both should have to be executed, and this is the critical area for the successful continuance of digitalization in construction. Second, the research shows that the digitalization process is similar to the adoption of innovation, in which the deployment and persistent use of the new technology are important for facilitating the transformation.

Originality/value

In two respects, the study is distinctive. To begin, this is one of the limited efforts to comprehend digitalization from the Indian perspective. Second, the study reveals that the PLS-SEM approach can be effectively used in the developing subject of the construction digitalization concept.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 15 December 2023

Karren Lee-Hwei Khaw, Hamdan Amer Ali Al-Jaifi and Rozaimah Zainudin

This study aims to revisit the relationship between Shariah-compliant firms and earnings management. Specifically, the authors examine whether Shariah-certified firms have lower…

Abstract

Purpose

This study aims to revisit the relationship between Shariah-compliant firms and earnings management. Specifically, the authors examine whether Shariah-certified firms have lower earnings management than non-Shariah-certified firms and how often a firm must hold its certification to observe considerably reduced earnings management. This study also explores how senior management ethnic dualism affects the association of Shariah certification and earnings management.

Design/methodology/approach

The authors analyze the hypothesized association between Shariah certification and earnings management using a panel regression model and several robustness tests, including the Heckman selection model. The sample consists of 547 nonfinancial firms listed on the Bursa Malaysia stock exchange, with 5,478 firm-year observations over the 2001–2016 sample period.

Findings

Shariah certification is found to mitigate earnings management, particularly for firms that consistently retain their Shariah status. The longer firms retain their Shariah certification continually, the lower the earnings management. Additionally, the results indicate that the negative impact of Shariah certification on earnings management is driven by ethnic duality when a specific ethnic group dominates the top management.

Research limitations/implications

Firms’ commitment to religious-based screening and continuation of certification plays a significant role in improving earnings quality. Firms are committed to abiding by the Shariah code of conduct instead of using the Shariah status for reputation purposes to attract investors.

Practical implications

For investors, the continuous compliance status is a crucial indicator of a firm’s commitment to comply with Shariah principles and to mitigate earnings management. Regarding policy implications, Shariah-compliance guidelines can constrain earnings manipulation, especially among firms lacking ethnic diversity.

Originality/value

The study shows that Shariah certification must be maintained consecutively to reduce earnings management. Shariah certification’s governance function is crucial in ethnically homogeneous firms, primarily when one ethnic group dominates the senior management.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 13 December 2022

Abdul Hafaz Ngah, Tuan Mastiniwati Tuan Mansor, Cécile Gabarre, Samar Rahi, Shahbaz Khan and Rohana Ahmad

The purpose of the study is to identify factors influencing the continuance of use of non-halal certified cosmetics among Muslim university students in Malaysia.

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Abstract

Purpose

The purpose of the study is to identify factors influencing the continuance of use of non-halal certified cosmetics among Muslim university students in Malaysia.

Design/methodology/approach

The research framework was developed based on the stimulus–organism–response model. Self-administered questionnaires were distributed using a purposive sampling method among Muslim students in three universities in Malaysia. A total of 501 usable data were collected and analysed using Smart partial least squares.

Findings

The analysis revealed that celebrity endorsement positively influences attitude and brand image. Meanwhile, brand image has a positive effect on attitude and continuance of use of non-halal certified cosmetics. Additionally, attitude has a positive effect on the continuance of use behaviour. Regarding predictive power enhancement, brand image and attitude were found to have a mediation effect and sequential mediation effect on the relationship between celebrity endorsement and the continuance of use behaviour. Attitude weakens the relationship between attitude and the continuance of use of non-halal cosmetics among Muslim university students in Malaysia.

Practical implications

Findings will primarily benefit halal and non-halal cosmetic manufacturers providing stakeholders with fundamental predicting information related to customers’ continuance of use thus resulting in better marketing strategies.

Originality/value

This study is focused on predicting consumer behaviour towards halal products, as well as young Muslim consumers’ perspective towards non-halal cosmetics. Celebrity endorsement is introduced as a stimulus in the context of Muslim university students to predict their continuance of use behaviour of non-halal certified cosmetics. The investigation includes the moderating effect of religiosity for the relationship between attitude and continuance behaviour. Findings reveal the mediating effects of brand image and attitude as a mediator and sequential mediator for the relationship between celebrity endorsement and continuance of use behaviour. Contributions enrich the literature related to non-halal certified contexts.

Article
Publication date: 28 March 2024

Alessandra Schopf da Silveira, Carmen Brum Rosa and Julio Cezar Mairesse Siluk

This work sought to analyze targeted innovation strategies used during the pandemic to maintain companies’ competitiveness.

Abstract

Purpose

This work sought to analyze targeted innovation strategies used during the pandemic to maintain companies’ competitiveness.

Design/methodology/approach

The methodology was a systematic literature review, analyzing how these factors can be used as leverage in decision-making and suggesting a framework tool.

Findings

As a result, nine factors were identified as drivers to stimulate competitiveness, bringing insights to structure actions in times of crisis to support agribusiness.

Research limitations/implications

With this work, it is possible that other companies can base themselves and use the strategic drivers of innovation evidenced to remain competitive in the market during a period of crisis. As this is a systematic review of the literature, the application of a case study, for example, is a limitation, which could be a continuation of the work.

Practical implications

As this is a systematic review of the literature, the application of a case study, for example, is a limitation, which could be a continuation of the work.

Originality/value

This work has high value because it brings insights into strategic drivers of innovation that tend to leverage or maintain the competitiveness of agribusinesses in times of crisis. With the discussion carried out on the data obtained, it is possible that agribusinesses or other types of companies can be based for decision-making in a crisis scenario from innovative actions that generate competitive advantage.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 31 October 2023

Milad Armani Dehghani, Dionysios Karavidas, Alexandra Rese and Fulya Acikgoz

With the rise of cryptocurrency and its influence on the financial industry, this paper aims to explore cryptocurrency affordances that lead to approach–avoidance behavioral…

Abstract

Purpose

With the rise of cryptocurrency and its influence on the financial industry, this paper aims to explore cryptocurrency affordances that lead to approach–avoidance behavioral intentions for non-users (potential) and the intention to continue use for users (actual), drawing upon affordance theory and chasm theory.

Design/methodology/approach

The authors collected data from 480 potential and actual users in Germany and used maximum likelihood structural equation modeling (ML-SEM) to analyze it. In particular, the data consisted of 301 cryptocurrency users in Germany\ the authors used ML-SEM to test the post-adoption model. Additionally, logistic regression was utilized to determine the dominant actual usage method (store of value or medium of exchange) for various cryptocurrency coins.

Findings

According to the study's results, the perceived value benefits have a positive impact on the behavioral intention of potential users to adopt cryptocurrency, and they influence the intention of actual users to continue using it. However, both perceived volatility and financial risk tolerance are the most crucial factors hindering cryptocurrency adoption, whether in the pre-adoption or the post-adoption stage.

Originality/value

This is the first study to reveal cryptocurrency affordances and examine their effect on behavioral intentions toward cryptocurrency adoption based on the differences between non-users (potential) and users (actual). Furthermore, the authors explore how cryptocurrency holders perceive and invest in different coins (e.g. NFTs), which sheds light on factors such as financial risk tolerance that affect their decision making.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

Open Access
Book part
Publication date: 14 December 2023

Susanne Kalss

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries…

Abstract

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries to shift and contribute assets to the successors, whereas corporate law focuses on the well-being of the company. However, in a family business, it is necessary to find legal, social, and psychological techniques to combine these two areas and to establish strong and binding relations. This is the function of shareholder agreements and family constitutions.

Details

Family Firms and Family Constitution
Type: Book
ISBN: 978-1-83797-200-5

Keywords

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