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1 – 10 of 184Brandon Schaufele and David Sparling
The purpose of this paper is to investigate the relationships between regulatory changes, returns on equity and stock market valuations for Canadian food and non‐food…
Abstract
Purpose
The purpose of this paper is to investigate the relationships between regulatory changes, returns on equity and stock market valuations for Canadian food and non‐food agribusinesses.
Design/methodology/approach
Two empirical approaches are employed. First, an event study is used to evaluate the impact of official regulatory announcements on the stock market valuations of selected Canadian agribusinesses. Next, an approach introduced by Mishra et al. using the Du Pont expansion is applied to investigate the effect of regulations on firms' accounting profits. Data on Canadian food and non‐food agribusinesses are collected from Bloomberg, Thompson One Banker and SEDAR.
Findings
The event study demonstrates that official regulatory announcement dates do not correspond with abnormal stock market returns for Canadian firms, while the Du Pont model yields mixed evidence with respect to their accounting profits.
Research limitations/implications
This paper only considers publicly traded companies. As a result, survivorship bias may exist. Future research should include privately held and cooperative firms.
Social implications
Food regulations can influence firm profits and shareholder wealth, so understanding how government actions influence agribusiness is important when considering the total costs of current and future food policy.
Originality/value
The interaction between policy and the financial performance of Canada's publicly traded agribusinesses is an under‐researched area and no studies have examined Canadian data. The results of this study are valuable to both policy makers and researchers.
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Fen‐may Liou and Yuan‐Chuan Gao
Previous studies have suggested that one may trace the factors (i.e. sources of the competitive advantage) that cause the firm performance by examining the performance itself…
Abstract
Purpose
Previous studies have suggested that one may trace the factors (i.e. sources of the competitive advantage) that cause the firm performance by examining the performance itself. Financial ratios have been used to trace the sources of competitive advantage, that is, the resource configuration, but the key resources driving superior performance remained undiscovered. The present study seeks to reduce the number of dimensions in the resource configuration to a two‐dimensional map to capture firms' relative resource positions and identify the resources and capabilities that lead to the superior performance.
Design/methodology/approach
Factor analysis is used to extract the resource bundles and management capabilities of the online game industry in Taiwan from financial ratios included in the expanded Du Pont identity. These resource and capability bundles are subsequently verified by discriminant analysis to distinguish firms with competitive advantage from firms with competitive disadvantage. Factor scores are then used as inputs for multidimensional scaling to draw the resource positioning of the competitive firms.
Findings
The competitive advantage of online firms can be determined using two dimensions of intellectual property and relationship assets. In addition, firms with advantage in upstream (game developers) and downstream (channels) relationships perform better than other firms.
Research limitations/implications
Private online game firms are excluded from the empirical study because their financial data are not available.
Originality/value
Using financial ratios, the present research identified the resource and capability bundles essential to the superior performance of the online game firms.
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This paper attempts to summarize the information contained in bank financial statements on the risk management capabilities of banks and then ascertains the sensitivity of bank…
Abstract
Purpose
This paper attempts to summarize the information contained in bank financial statements on the risk management capabilities of banks and then ascertains the sensitivity of bank stocks to risk management.
Design/methodology/approach
The theoretical framework is derived from a bank's accounting identities. The paper interprets the selected accounting ratios as risk management variables and attempts to gauge the overall risk management capability of banks by summarizing these accounting ratios as scores through the application of multivariate statistical techniques. Finally, the paper analyzes the impact of these risk management scores on stock returns through regression analysis.
Findings
The results based on data for Indian banks reveal that banks' risk management capabilities have been improving over time except for in the last two years. Returns on the banks' stocks appear to be sensitive to risk management capability of banks.
Practical implications
The results suggest that banks that want to enhance shareholder wealth have to focus on successfully managing various underlying risks. The findings have implications for investors who may benefit by going long on shares of banks that are better risk managers. The findings are useful for the regulator in developing quantitative indicators of soundness of the banking system.
Originality/value
First, this study suggests a novel way of looking at bank financial statements, i.e. from the risk management perspective. Second, the study develops summary scores of risk management capabilities of banks. Third, risk management is shown to be an important determinant of stock returns of banks.
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Rebecca Abraham, Judith Harris and Joel Auerbach
The purpose of this paper is to investigate IPO performance. At announcement, the impact of purchases by informed traders on stock returns and uninformed traders on volatility…
Abstract
Purpose
The purpose of this paper is to investigate IPO performance. At announcement, the impact of purchases by informed traders on stock returns and uninformed traders on volatility were assessed. In the post-IPO period, returns were expected to be driven by firms with high returns on equity and the implementation of growth strategies. Return on equity was evaluated further in terms of whether it had a direct effect or was instrumented by volatility, cash flow, profit margin or revenue growth.
Design/methodology/approach
All IPOs announced in 2009-2014 were used. Measures were created to demarcate growth firms from risk-averse firms and firms with highly volatile cash flows from their counterparts with cash flows of lesser volatility. Event studies were used to measure abnormal return and abnormal volume, while multiple regressions tested the influence of predictors on abnormal returns, volatility and holding period return. Instruments of return on equity were also assessed.
Findings
The offer volume of informed traders significantly explained announcement-day returns, while the offer volume of uninformed traders explained the increase in volatility of IPO stock. The ability to capitalize on growth opportunities and increase shareholder wealth through higher return on equity significantly predicted holding period returns. Return on equity, was explained by volatility, cash flow to assets and profit margin.
Originality/value
The data are highly current with 2014 IPOs being used. The paper clearly distinguishes between fleeting announcement-day returns driven by informed traders and long-term holding period returns in a departure from the prevailing practice of measuring long-term post-IPO performance with abnormal returns. Finally, the paper creates subjective measures of volatility and growth strategies.
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Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange…
Abstract
Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.
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Ashok K. Mishra, J. Michael Harris, Kenneth W. Erickson, Charlie Hallahan and Joshua D. Detre
The aim of this study is to use a financial approach based on the Du Pont expansion to investigate the impact of demographics, specialization, tenure, vertical integration, farm…
Abstract
Purpose
The aim of this study is to use a financial approach based on the Du Pont expansion to investigate the impact of demographics, specialization, tenure, vertical integration, farm type, and regional location on the three levers of performance (ROE) – namely, net profit margins, asset turnover ratio, and asset‐to‐equity ratio.
Design/methodology/approach
This research uses a system of equations in conjunction with 1996‐2009 farm‐level data from the US Department of Agriculture's Agricultural Resource Management Survey (ARMS) to evaluate the factors driving farm‐level profitability, namely, net profit margins, asset turnover ratio, and asset‐to‐equity ratio. The methodology employed in this study corrects heterogeneity and uses repeated cross‐section estimation procedure to estimate the empirical models.
Findings
The study finds that key drivers of net profit margins are operator education, farm size and typology, specialization, and level of government payments. Key factors affecting the asset turnover ratio component of the Du Pont model include asset turnover ratio is driven by operator age, contracting, specialization, and receiving government payments. Finally, key factors affecting asset‐to‐equity ratio component of the Du Pont model are farm size, farm typology, contracting, and specialization drive asset‐to‐equity ratio.
Originality/value
Existing research does not examine the factors affecting returns to equity in faring at the farm‐level. Specifically, a micro‐level analysis of American farm's future structure and financial performance that accounts for the spatial and inter‐temporal dimensions of profitability has never been conducted.
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Sandra Sun-Ah Ponting and Lindsey Lee
The purpose of this study is to systematically review and synthesize identity research in the hospitality management literature. A critical revision of identity research in…
Abstract
Purpose
The purpose of this study is to systematically review and synthesize identity research in the hospitality management literature. A critical revision of identity research in hospitality organizations, built on major identity constructs in the general management literature, is conducted to create thematic frameworks. This framework yields theoretical and practical future hospitality research agendas.
Design/methodology/approach
The current study adopted a systematic literature review approach to analyze and synthesize identity research in hospitality organizations. A total of 55 articles published since 2000 are included in this review.
Findings
Stemming from general management conceptualizations, identity research in hospitality organizations are categorized into four overarching themes. This review also points to research gaps in epistemological conceptualizations, definitional frameworks and methodology.
Originality/value
The study reviews identity research in hospitality organizations, builds an integrative thematic framework of identity research in hospitality and proposes directions for future research.
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While mergers may be a good way to grow rapidly, can one sustain growth and performance for long periods? The answer lies in how well one integrates the business after the merger.
Invented and manufactured by the French company AHG (Ateliers de la Haute‐Garonne), the MATT rivet has been specially formulated to prolong the life of riveting in thin sheet…
Abstract
Invented and manufactured by the French company AHG (Ateliers de la Haute‐Garonne), the MATT rivet has been specially formulated to prolong the life of riveting in thin sheet metals. The original design allows controlled expansion of the head and shank, and most importantly, the head expands into the countersink to ensure a precise interference fit which does not require additional sealants.