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Article
Publication date: 28 February 2023

Ons Triki and Fathi Abid

The objective of this paper is twofold: first, to model the value of the firm in the presence of contingent capital and multiple growth options over its life cycle in a stochastic…

Abstract

Purpose

The objective of this paper is twofold: first, to model the value of the firm in the presence of contingent capital and multiple growth options over its life cycle in a stochastic universe to ensure financial stability and recover losses in case of default and second, to clarify how contingent convertible (CoCo) bonds as financial instruments impact the leverage-ratio policies, inefficiencies generated by debt overhang and asset substitution for a firm that has multiple growth options. Additionally, what is its impact on investment timing, capital structure and asset volatility?

Design/methodology/approach

The current paper elaborates the modeling of a dynamic problem with respect to the interaction between funding and investment policies during multiple sequential investment cycles simultaneously with dynamic funding. The authors model the value of the firm in the presence of contingent capital that provides flexibility in dealing with default risks as well as growth options in a stochastic universe. The authors examine the firm's closed-form solutions at each stage of its decision-making process before and after the exercise of the growth options (with and without conversion of CoCo) through applying the backward indication method and the risk-neutral pricing theory.

Findings

The numerical results show that inefficiencies related to debt overhang and asset substitution can go down with a higher conversion ratio and a larger number of growth options. Additionally, the authors’ analysis reveals that the firm systematically opts for conservative leverage to minimize the effect of debt overhang on decisions so as to exercise growth options in the future. However, the capital structure of the firm has a substantial effect on the leverage ratio and the asset substitution. In fact, the effect of the leverage ratio and the risk-shifting incentive will be greater when the capital structure changes during the firm's decision-making process. Contrarily to traditional corporate finance theory, the study displays that the value of the firm before the investment expansion decreases and then increases with asset volatility, instead of decreasing overall with asset volatility.

Research limitations/implications

The study’s findings reveal that funding, default and conversion decisions have crucial implications on growth option exercise decisions and leverage ratio policy. The model also shows that the firm consistently chooses conservative leverage to reduce the effect of debt overhang on decisions to exercise growth options in the future. The risk-shifting incentive and the debt overhang inefficiency basically decrease with a higher conversion ratio and multiple growth options. However, the effect of the leverage ratio and the risk-shifting incentive will be greater when the capital structure changes during the firm's decision-making process.

Originality/value

The firm's composition between assets in place and growth options evolves endogenously with its investment opportunity and growth option financing, as well as its default decision. In contrast to the standard capital structure models of Leland (1994), the model reveals that both exogenous conversion decisions and endogenous default decisions have significant implications for firms' growth option exercise decisions and debt policies. The model induces some predictions about the dynamics of the firm's choice of leverage as well as the link between the dynamics of leverage and the firm's life cycle.

Details

China Finance Review International, vol. 13 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 11 January 2024

Heba F. Zaher and Gilberto Marquez-Illescas

This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.

Abstract

Purpose

This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.

Design/methodology/approach

This study uses a systematic framework-based review combining the insights of the antecedents, decisions and outcomes (ADO) and theories, contexts and methods (TCM) frameworks. The review was carried out using a sample of 108 articles published between 1984 and 2022 in 25 prestigious journals.

Findings

The ADO framework maps out the state of the art of the antecedents of power (i.e. sources and types of firm power), the decision to use power and the effect that exercising power over other firms may have on firm performance and the quality of inter-firm relationships. In addition, this framework highlights factors that mediate or moderate the decision to exercise power and the factors that mediate or moderate the outcomes of exercising power or power asymmetry. The TCM framework provides insights into the theories, contexts (i.e. countries, industries, level of analysis and sources of data) and methods used by the existing literature. The content analysis using the aforementioned frameworks provides the basis to elaborate propositions for future research on power in the supply chain from the perspective of gender differences.

Research limitations/implications

This systematic literature review offers a comprehensive guide for researchers to understand the antecedents, decisions and outcomes of firm power in the supply chain, as well as the TCM used in the literature. The content analysis using frameworks provides a road map to investigate the proposed factors that might moderate the decision to exercise power and the outcome of exercising power or power asymmetry from the perspective of gender differences. In addition, based on content analysis, the authors make propositions about TCM that could be applied in future research.

Practical implications

From a practical perspective, this systematic literature review may help managers to better understand the sources and consequences of their firm’s power. This would allow managers to make better decisions when negotiating with their supply chain parties, which could potentially lead to better performance for their firms and the whole supply chain.

Originality/value

To the best of the authors’ knowledge, this study is the first to conduct a comprehensive systematic literature review of the different dimensions of firms’ power in the supply chain.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 July 2022

Hyung-Min Kim, Minseong Kim and Inje Cho

Home-based workouts via fitness YouTube channels have become more popular during the pandemic era. However, few studies have examined the role of social media personae related to…

1523

Abstract

Purpose

Home-based workouts via fitness YouTube channels have become more popular during the pandemic era. However, few studies have examined the role of social media personae related to intention to exercise. The purpose of this study was to investigate the structural relationships between fitness YouTuber attributes: perceived physical attractiveness (PPA), perceived social attractiveness (PSA), perceived similarity (PS), parasocial relationships (PSRs), wishful identification (WI), physical outcome expectations (POEs), and continuous intention to work out with fitness YouTubers (CIWFY).

Design/methodology/approach

This study considered fitness YouTube channel viewers as the unit of analysis. An online survey was conducted to empirically develop and test the research model using structural equation modeling (SEM).

Findings

The SEM empirical findings revealed that the PSRs were significantly influenced by PSA, PPA, and PS. Also, WI was significantly affected by PPA and PS. Furthermore, POEs were significantly impacted by PPA and PSRs. POEs affected the CIWFY. Lastly, PSRs and POEs mediated the influence of PSA and PPA on the CIWFY.

Originality/value

The psychological impacts of exercising to online fitness videos in the era of COVID-19, with its untact (no contact) social norms is timely. The study model demonstrated the fitness YouTube viewers' cognitive path from perceptions toward fitness YouTubers' attributes to behavioral intention. To be specific, the current study demonstrated how three attribution types (i.e. PPA, PSA, and PS) of fitness YouTubers affect viewers' PSRs and WI with fitness YouTubers, along with POEs and CIWFY. Along with health practitioners, fitness YouTubers who want to captivate viewers on their channels might need to consider self-attributes from their viewers' standpoint and should build psychological bonding with viewers.

Details

Internet Research, vol. 33 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Abstract

Details

Eating Disorders in a Capitalist World
Type: Book
ISBN: 978-1-80455-787-7

Article
Publication date: 23 October 2023

Manpreet K. Arora and Sukhpreet Kaur

Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand…

Abstract

Purpose

Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand the exercise decision of the employees. This is an important financial decision that is dependent on both rational and psychological factors. This paper aims to study the mediating role of Herding Bias on Personality Traits and the employees' decision to exercise ESOs.

Design/methodology/approach

The data were collected through a self-structured questionnaire from 210 employees of Banks and NBFCs [Non-Banking Financial Companies] who have received and exercised the ESOs. SPSS MACRO version 25 was used to understand the mediational effect of Herding Bias on Personality Traits and Employees' decision to exercise their ESOs.

Findings

The results showed that Personality Traits affect the employees' decision to exercise their ESOs. The study also shows a partial negative mediating effect of Herding Bias on Personality Traits and employees' decision to exercise ESOs.

Originality/value

Limited study has been conducted on how the employees make their decision to exercise ESOs. Although extant studies have touched upon the importance of including behavioural biases in ascertaining the exercise decision of the employees, the predictors of the behavioural biases have not been studied under this context. To the best of the author's knowledge, this study is the first in itself to study the inter-linkage between Personality Traits, Herding Bias and employees' decision to exercise ESOs.

Details

Managerial Finance, vol. 50 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 15 February 2024

Jari Huikku, Elaine Harris, Moataz Elmassri and Deryl Northcott

This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the…

Abstract

Purpose

This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the authors address the role of position–practice relations and irresistible causal forces in this conduct.

Design/methodology/approach

The authors examine SID-making (SIDM) practices in four case organisations operating in highly competitive markets, conducting interviews with managers at various levels and analysing company documents. Drawing on strong structuration theory, the authors show how managerial decision makers draw upon their knowledge of organisational context when exercising agency in SIDs.

Findings

The authors provide insights into how SIDM behaviour, specifically agents’ conduct, is shaped by a combination of position–practice relations and the agents’ comprehension of their organisation’s context.

Research limitations/implications

The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice.

Originality/value

The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice. Particularly, the authors contribute to this literature by identifying irresistible causal forces and illuminating why actors might not resist in SIDM processes, despite having the potential to do so.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 February 2023

Sue Cronin

This paper aims to consider the practices and experiences of the new school-based mentors for Early Career Teachers (ECT's), emerging from the UK Government's new early career…

Abstract

Purpose

This paper aims to consider the practices and experiences of the new school-based mentors for Early Career Teachers (ECT's), emerging from the UK Government's new early career framework (ECF) policy (DfE, 2019a). The paper uses Lipsky's (2010) framing of professionals as “street level bureaucrats” to consider the extent to which the ECT mentors, as new policy actors, exercise professional discretion (Lipsky, 2010) in negotiating and aligning the new ECF policy with existing practice.

Design/methodology/approach

To research the mentor's interpretation and enactment of the new ECF policy, semi structured interviews were undertaken with an initial sample of nine mentors and four induction tutors who were also mentors. Online semi structured interviews were held, lasting around 50 min. This method was largely pragmatic as the study started during a period when schools were still cautious of face-to-face visitors in terms of COVID-19. Although the benefits for the interviewer experiencing the culture and context in which the ECT mentor was situated were lost, offering online interviews was critical in securing mentors' time.

Findings

Findings suggest a disconnect between the intentions of the policy and the reality of its enactment at a local level. The ECT mentors have limited professional discretion, but some are exercising this in relation to their own professional development and the training they are providing for their ECTs. Most of the mentors are adapting the ECT's professional development journey whilst mindful of the programme requirements. The degree to which the ECT mentors used professional discretion was linked and limited largely by their own levels of confidence and experience of mentoring, and to a lesser extent the culture of their schools.

Research limitations/implications

The ECF policy represents an important step in acknowledging the need to professionally develop mentors for the work they undertake supporting beginning teachers. However, the time and the content of the mentor training have not been given sufficient attention and remains a hugely missed opportunity. It does not appear to be recognised by the government policy makers but more significantly and concerning in this research sample it is not being recognised sufficiently by those mentoring the ECTs themselves.

Practical implications

There is an urgent need by the UK government and school leaders to understand the link between the quality of mentor preparation and the quality of the ECTs who will be entering the profession and influencing the quality of education in future years. More time and resourcing need to be focussed on the professional development of mentors enabling them to exercise professional discretion in increasingly sophisticated ways in relation to the implementation of the ECF policy.

Originality/value

The ECF policy is the latest English government response to international concerns around the recruitment and retention of teachers. The policy mandates for a new policy actor: the ECT mentor, responsible for the support and professional development of beginning teachers. The nature of the mentor's role in relation to the policy is emerging and provides an interesting case study in the disconnect between the intentions of a policy and its initial enactment on the ground. The mentors may be viewed as street level bureaucrats exercising degrees of professional discretion as they interpret the policy in their own school context.

Details

International Journal of Mentoring and Coaching in Education, vol. 12 no. 4
Type: Research Article
ISSN: 2046-6854

Keywords

Article
Publication date: 15 March 2023

Alexandra Aguirre-Rodriguez and Patricia Torres

This paper aims to examine the role of volitive desire in self-control toward temptations. It extends prior research on the role of prudence in temptation resistance by…

Abstract

Purpose

This paper aims to examine the role of volitive desire in self-control toward temptations. It extends prior research on the role of prudence in temptation resistance by empirically demonstrating that prudence bolsters self-control toward food temptations by lowering volitive desire motivation toward temptation enactment.

Design/methodology/approach

This study consists of a 2 (food type: temptation vs goal-congruent) × 2 (prudence level: low vs high) between-subjects quasi-experimental design. Hypothesis tests were conducted by using analysis of covariance and ordinary least squares regression-based moderated mediation analysis.

Findings

The results show that high-prudence participants experienced lower volitive desire toward eating the temptation food option than low-prudence participants. Consequently, high- (vs low-) prudence participants reported significantly weaker eating intentions toward the temptation food option. Moreover, volitive desire significantly mediated the effect of prudence level on intentions to eat the temptation food option.

Research limitations/implications

The study contains methodological limitations. First, the study operationalizes volitive desire as “non-appetitive, instrumental reasons for eating or not eating the food,” yet in some contexts volitive desire can include appetitive reasons. Second, the procedure consisted of presenting participants with only a goal-consistent or temptation food option, rather than with both, which is more realistic. The study also focuses on a single goal context, healthy eating, to the exclusion of other contexts associated with consumer self-control. Additionally, the appetitive and volitive desire self-report measure method produced flawed ratings, requiring us to use the open-ended responses as this study’s dependent variable. Finally, this study does not directly test the extent of prudence-driven deliberation about temptation enactment consequences.

Practical implications

Social marketing campaigns can encourage low prudence consumers to strengthen this behavioral trait by performing beneficial, slightly to moderately challenging utilitarian tasks (e.g. making one’s bed each morning, flossing one’s teeth every evening, etc.) that involve exercising self-control on a regular basis. Social marketing ads can also appeal to the consequence-vigilance of high prudence consumers by increasing the salience of consequences of self-control failures in behaviors related to social issues such as pollution, drinking and driving, smoking and recreational drug use. An additional implication is that marketers of health goal-related products and services could segment the market based on trait prudence and target high-prudence consumers with ads that increase the salience of consequences associated with not using the company’s health product or service or the consequences of using the competition’s products or services.

Social implications

Consumers can improve their well-being by exercising self-control consistently in low to moderately challenging tasks, which boosts their prudence. High-prudence consumers can intentionally focus on volitive motives when faced with temptations to ensure effective self-control.

Originality/value

This research examines the role of volitive desire as the process by which trait prudence affects intentions toward temptation options, which extends prior research on the role of prudence in self-control for temptations (Puri, 1996). This framework builds on the philosophy of action perspective on desire and shows that trait prudence can predict temptation enactment intentions through the mediating role of volitive desire. Thus, the findings illuminate the motivational mechanism by which prudence bolsters self-control in the face of temptation: volitive desire.

Details

Journal of Consumer Marketing, vol. 40 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 16 May 2023

Megan S. Patterson, Mandy N. Spadine, Allison N. Francis and Tyler Prochnow

The purpose of this study is to assess factors related to sorority women connecting with people who exacerbate feelings of exercise guilt and body dissatisfaction (BD), both of…

Abstract

Purpose

The purpose of this study is to assess factors related to sorority women connecting with people who exacerbate feelings of exercise guilt and body dissatisfaction (BD), both of which preclude compulsive exercise.

Design/methodology/approach

In all, 207 sorority women (egos) completed online surveys measuring physical activity, BD, compulsive exercise and egocentric networks (n = 1,105 social ties/alters). Two random coefficient multilevel models assessed factors related to an ego connecting to someone who makes her feel: guilty about her exercise habits and good about her looks.

Findings

Exercise patterns within networks related to how often an alter made ego feel guilty about her exercise habits; alter gender and communication frequency related to how often an alter made ego feel good about her looks; and ego’s BD score was related to both feelings of guilt and body satisfaction.

Originality/value

The findings of this study support and extend literature highlighting the importance of someone’s immediate social network on their body image and related behaviors.

Details

Mental Health and Social Inclusion, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-8308

Keywords

Open Access
Article
Publication date: 10 August 2023

Martina Brophy, Maura McAdam and Eric Clinton

The purpose of this paper is to examine the identity work undertaken by female next generation to navigate (in)visibility in family businesses with male successors. To enhance…

Abstract

Purpose

The purpose of this paper is to examine the identity work undertaken by female next generation to navigate (in)visibility in family businesses with male successors. To enhance understanding of gendered identity work in family businesses, the authors offer important insights into how female next generation use (in)visibility to establish legitimacy and exercise power and humility in partnership with male next generation in their family business.

Design/methodology/approach

This empirical qualitative paper draws upon in-depth interviews with 14 next generation female leaders.

Findings

This study offers a model to show how female next generation establish their legitimacy amongst male next generation in power via a careful balancing act between vying for visibility (trouble) and forgoing visibility (exclusion). These female next generation gained acceptance by endorsing their own leadership identity and exercising humility in partnership or by endorsing their brother's leadership identity and exercising power in partnership.

Practical implications

This study highlights the need for the incumbent generation to prepare successors, regardless of gender, via equal opportunities for business exposure and leadership preparation. This study also shows that vocalizing female-centric issues and highlighting hidden power imbalances should be led by the entire management team and not simply delegated to a “family woman” in the management team to spearhead.

Originality/value

This study advances understanding of gender dynamics and identity in the family business literature by identifying specific strategies utilized by female next generation to navigate (in)visibility in family businesses with male successors.

Details

International Journal of Gender and Entrepreneurship, vol. 15 no. 4
Type: Research Article
ISSN: 1756-6266

Keywords

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