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Article
Publication date: 6 June 2022

Ruiying Cai, Lisa Nicole Cain and Hyeongjin Jeon

Extending the technology acceptance model (TAM) to a new context, the purpose of this paper is to propose an integrative model of the brand of artificial…

Abstract

Purpose

Extending the technology acceptance model (TAM) to a new context, the purpose of this paper is to propose an integrative model of the brand of artificial intelligence-enabled voice assistants (AI-EVA) and customers’ perceptions and behavioral intentions of using AI-EVA in hotels. Moderating effects of construal levels and hotel scales were examined.

Design/methodology/approach

This paper adopted a mixed method approach. A qualitative and phenomenological methodology was adopted in Study 1 to explore hotel customers’ experience with AI-EVA. Study 2 applied experimental design to investigate the effects of the brand of AI-EVA and construal level on customers’ perceptions and behavioral intentions of using AI-EVA. Based on Studies 1 and 2 results, Study 3 examined how the brand of AI-EVA and hotel scale affect customers’ perceptions and behavioral intentions of using AI-EVA during hotel stays.

Findings

This research found that customers perceive a higher level of perceived usefulness, perceived ease of use and anthropomorphism when AI-EVA is branded (vs off-brand). Perceived usefulness positively affects customers’ intention to use and to spread positive word-of-mouth. Anxiety of using AI-enabled devices and privacy concerns inhibit customers’ intention to use AI-EVA. Anthropomorphism increases customers’ willingness to spread positive word-of-mouth. Construal level moderates the effect of the brand of AI-EVAs on perceived ease of use and anthropomorphism. Hotel scale moderates the effect of brand on perceived usefulness.

Originality/value

This paper is one of the first attempts to uncover and integrate different factors underlying customers’ perceptions of using AI-EVA in an extended TAM in hotel settings. This paper provides an integrative model extending the TAM to a new context by deploying a mixed-method approach across three studies.

Details

International Journal of Contemporary Hospitality Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 24 May 2021

Xiaoming He and Ao Chen

This paper aims to explore the impact of a firm’s political connections on its economic value added (EVA) performance while treating connection heterogeneity and product…

Abstract

Purpose

This paper aims to explore the impact of a firm’s political connections on its economic value added (EVA) performance while treating connection heterogeneity and product diversification as moderators.

Design/methodology/approach

Based on data collected from 1,143 Chinese manufacturing listed firms in China’s A-share market from 2012 to 2017, this study conducted panel data analysis to investigate proposed relationships.

Findings

The findings provide evidence that political connections promote EVA performance of enterprises and both connection heterogeneity and product diversification negatively moderate the political connections – EVA performance relationship.

Originality/value

Drawing sights from the resource-based view, this study investigates the influence of corporate political connections on EVA performance, considering contingent factors of connection heterogeneity and corporate strategy (i.e. product diversification). It, thus, contributes to the literature on political connections by providing additional evidence to explaining the inconclusive findings on the political connections–firm performance relationship and extending prior research by emphasizing the moderating roles of connection heterogeneity and corporate strategy. It also complements prior research on EVA performance by exploring its antecedents.

Details

Chinese Management Studies, vol. 16 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 18 October 2019

Jie Zhang and Ahmed Aboud

The purpose of this paper is to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The authors investigate the impact of…

Abstract

Purpose

The purpose of this paper is to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The authors investigate the impact of six bank-specific factors and corporate governance factors on financial performance.

Design/methodology/approach

The authors use the ordinary least square regression to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The findings are generally robust to alternative proxies of performance.

Findings

The empirical results indicate that credit risk, operational efficiency and the degree of innovation are positively related to banks’ EVA while capital management has a negative impact on it. In addition, although board size and independent directors are not related to the bank’s EVA, from the perspective of the traditional performance evaluation indicators, executive compensation has a positive impact on the bank’s profitability.

Research limitations/implications

This paper has some limitations. First, due to the large number of adjustments to accounting items are required in the application of EVA when evaluating business performance, some items of the EVA model in this paper have been simplified, which may cause the bank’s EVA value to deviate slightly from the actual situation. Moreover, the sample includes only listed banks, so our results cannot generalize to non-listed banks, such as some small- and medium-sized commercial banks.

Originality/value

This paper contributes to the limited body of literature concerning the use and the determinants of EVA in emerging markets. The authors construct an EVA model which is suitable for China’s banks and reports comprehensive evidence on the drivers of EVA as a measurement tool.

Details

Asian Review of Accounting, vol. 27 no. 4
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 25 October 2011

Satish Kumar and A.K. Sharma

The main objective of this study is to examine the claim of economic value added (EVA) proponents about its superiority as a financial performance measure compared to five…

2633

Abstract

Purpose

The main objective of this study is to examine the claim of economic value added (EVA) proponents about its superiority as a financial performance measure compared to five traditional performance measures, i.e. net operating profit after tax (NOPAT), cash flow from operations (OCF), earnings per share (EPS), return on capital employed (ROCE) and return on equity (ROE) in Indian manufacturing sector, and simultaneously provide its empirical evidences. To achieve this, relative and incremental information content of various performance measures and their relationship with market value added (MVA) is tested and examined.

Design/methodology/approach

Principal component analysis (PCA) is one of the important multivariate methods utilized in business research for data reduction, latent variable modeling, multicollinearity resolution, etc. The present sample consists of 608 firm‐year observations from the Indian manufacturing sector for the period 2000‐2007. Firstly, principal component analysis (PCA) is employed to determine the important variables that explain market value. Secondly, alongside PCA, multiple regression models (OLS) are used to examine the relative and incremental information content of EVA and traditional performance measures.

Findings

These results about PCA reveal that variables like NOPAT, OCF, ROE, ROCE and EVA have maximum influence on the market value (MVA) of the sample companies, whereas EPS has a negative loading, so, EPS is discarded for further analysis. Further, the PCA loading matrix reveals that NOPAT, OCF, ROE and ROCE outscore EVA. The regression results regarding the relative information content test reveal that NOAPT and OCF outperform EVA in explaining the market value of Indian companies. The incremental information content test shows that EVA makes a marginal contribution to information content beyond NOPAT, OCF, ROCE and ROE. Overall, these empirical results about Indian companies do not support the Stern Stewart hypothesis that EVA is superior to traditional accounting‐based measures in association with market value of the firm.

Originality/value

The study concludes that along with financial variables, other non‐financial variables such as employees, product quality, etc., should be considered in order to capture the unexplained variation in the market value of Indian companies.

Details

Journal of Financial Reporting and Accounting, vol. 9 no. 2
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 30 October 2009

Dimitrios I. Maditinos, Željko Šević and Nikolaos G. Theriou

The purpose of this paper is to investigate the explanatory power of two value‐based performance measurement models, Economic Value Added (EVA®) and shareholder value…

1977

Abstract

Purpose

The purpose of this paper is to investigate the explanatory power of two value‐based performance measurement models, Economic Value Added (EVA®) and shareholder value added (SVA), compared with three traditional accounting performance measures: earnings per share (EPS), return on investment (ROI), and return on equity (ROE), in explaining stock market returns in the Athens Stock Exchange (ASE).

Design/methodology/approach

The paper uses the Easton and Harris formal valuation model and employs both a relative and an incremental information content approach to examine which performance measure best explains stock market returns; and the explanatory power of the pairwise combinations of one value‐based performance measurement model and one traditional accounting performance measure in explaining stock market returns. For this purpose, pooled time‐series, cross‐sectional data of listed companies in the Athens Stock Exchange (ASE) over the period 1992‐2001 have been collected and modelled.

Findings

Relative information content tests reveal that stock market returns are more closely associated with EPS than with EVA® or other performance measures. However, incremental information content tests suggest that the pairwise combination of EVA® with EPS increases significantly the explanatory power in explaining stock market returns.

Practical implications

The results suggest that the market participants in the Greek stock market should pay additional attention to EVA® but they should also consider other determinants to develop their investment strategies.

Originality/value

The paper is one of the first studies on the value relevance of traditional accounting (EPS, ROI, and ROE) and value‐based (EVA® and SVA) performance measures in explaining stock market returns in the ASE. The results extend the understanding of the role of EVA® and SVA in explaining stock market returns in the ASE, and, moreover, whether they may affect investors' decisions in a continental European market with market characteristics similar to that of Greece.

Details

Journal of Modelling in Management, vol. 4 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 1 September 2009

Nopadol Rompho

This paper attempts to propose the uses of a capital budgeting tool, the Economic Value Added (EVA)for a university. Although there are reports of widespread use of the EVA

1028

Abstract

This paper attempts to propose the uses of a capital budgeting tool, the Economic Value Added (EVA)for a university. Although there are reports of widespread use of the EVA in many for‐profit organisations, there is no evidence in literature that it has been adopted as a capital budgeting tool for a university. In this paper the application of the EVA for a university is proposed. It shows how the EVA can increase the awareness of the importance of asset utilisation in universities and guide universities to better resource management. EVA is proposed for use in a university setting in two different segments: for‐profit and non‐profit. The EVA has been adjusted with a new measure, Academic Value Added Ratio (AVAR) to reflect the university’s objective. The perception of academic staff in the case study university in Thailand with regards to the concept of applying the EVA to a university is further investigated. The results indicate that most members of management staff do not oppose this concept if it is implemented in a proper way.

Details

Journal of Financial Reporting and Accounting, vol. 7 no. 2
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 1 January 2005

Janis K. Zaima, Howard F. Turetsky and Bruce Cochran

Studies that examine the relationship of economic value added (EVA) to market value did not isolate the EVA effect in conjunction with controlling for the economic effect…

Abstract

Studies that examine the relationship of economic value added (EVA) to market value did not isolate the EVA effect in conjunction with controlling for the economic effect of the market. Since the EVA metric is viewed as value‐added apart from the market, operational managers will benefit from a procedure that separates the market driven versus firm driven (EVA) effects. Our paper examines the effects of the economy and EVA on MVA. The results indicate that EVA and GDP significantly affect MVA. Furthermore, the MVA‐EVA relationship shows a systematic bias between the largest MVA firms and the smallest MVA firms. Overall, our study provides implications for corporate executives utilizing EVA to evaluate managerial performance linked to MVA.

Details

Review of Accounting and Finance, vol. 4 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 1 October 2005

J.HvH. de Wet

Several researchers and practitioners, notably Stern Stewart Consulting Company and Associates, have claimed that economic value added (EVA) is superior to traditional…

1624

Abstract

Several researchers and practitioners, notably Stern Stewart Consulting Company and Associates, have claimed that economic value added (EVA) is superior to traditional accounting measures in driving shareholder value. Other researchers have refuted these claims by supplying data in support of traditional accounting indicators such as earnings per share (EPS), dividends per share (DPS), return on assets (ROA) and return on equity (ROE). This study endeavoured to analyse the results of companies listed on the JSE Securities Exchange South Africa, using market value added (MVA) as a proxy for shareholder value. The findings do not support the purported superiority of EVA. The results suggest stronger relationships between MVA and cash flow from operations. The study also found very little correlation between MVA and EPS, or between MVA and DPS, concluding that the credibility of share valuations based on earnings or dividends must be questioned.

Article
Publication date: 1 April 2000

RODNEY HOWES

Earned Value Analysis (EVA) is an accepted theoretical technique advocated for the control of projects. This paper attempts to refine and improve the performance of…

2016

Abstract

Earned Value Analysis (EVA) is an accepted theoretical technique advocated for the control of projects. This paper attempts to refine and improve the performance of traditional EVA by the introduction of a hybrid methodology based on work packages and logical time analysis entitled Work Package Methodology (WPM). The proposed WPM provides the means to periodically update project cost and time performance by restricting EVA calculations to individual work packages. These are then subjected to a logical time analysis to determine the predicted project cost and time to completion. A comparative analysis between WPM and EVA is then undertaken using adapted test data derived from knowledge of previous projects to identify the reasons for variation in the results obtained from both methods. The evaluation of the test results indicates that when the Cost Performance Index (CPI) and the Schedule Performance Index (SPI) are well above or below unity then, especially in the early stages of the project, traditionally applied EVA predictions can be un‐realiable and require further investigation and evaluation. WPM provides a vehicle for judging the performance of EVA by applying an alternative logical time and cost utilizing work sequence and construction methods. The predictive performance of EVA is refined by these means.

Details

Engineering, Construction and Architectural Management, vol. 7 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 March 2001

Abuzar M.A. Eljelly and Khalid S. Alghurair

This study examines the association between stock returns and wealth creation (as measured by Market Value Added, MVA) on the one hand, and various performance measures of…

Abstract

This study examines the association between stock returns and wealth creation (as measured by Market Value Added, MVA) on the one hand, and various performance measures of joint stock companies in Saudi Arabia. These measures include traditional accounting measures; Earning Per Share (EPS), Return on Equity (ROE), and Cash Flow (CF), as well as a relatively recent measure; the Economic Value Added (EVA). The study reveals strong links between various traditional accounting measures and show that those measures give similar indication of a company's overall performance. The results indicate that MVA and stock returns are associated with traditional accounting measures, but not with EVA. However, EPS is found to dominate other measures of performance with respect to its association with stock returns and MVA. The implications of this study are that investors in the Saudi market are most likely using simple traditional accounting performance measures in their valuing of companies, and hence more efforts should be directed to enforcing disclosure requirements for these measures.

Details

International Journal of Commerce and Management, vol. 11 no. 3/4
Type: Research Article
ISSN: 1056-9219

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