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Open Access
Article
Publication date: 27 June 2023

Antti Norkio

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly…

Abstract

Purpose

Intangible capital (IC) is an important factor for economic growth and firm performance. The role IC has played has become even more crucial in recent decades, possibly influencing debt capacity and default risk assessment. This paper studies how entrepreneurial and employee-based IC affects financial leverage.

Design/methodology/approach

Employer–employee unbalanced panel data provided by Statistics Finland that refer to Finnish small and medium-sized enterprises (SMEs) are used. Intangibles are measured with an expenditure-based method. Employee-based IC and entrepreneurial knowledge are used to explain debt financing in SMEs.

Findings

The findings imply that IC-intensive firms have less debt capacity due to weak pledgeability and asymmetric information between borrower and lender. Entrepreneurs with managerial or financial knowledge increase the firm's debt capacity compared to other entrepreneurs, especially in knowledge-intensive services (KIS). One explanation is that the entrepreneurs are more competent in negotiating with lenders as the entrepreneurs possess better financial skills. Entrepreneurs with technical knowledge decrease the firm's debt capacity in all industries.

Originality/value

While some earlier research focused on the IC–financial leverage relationship, hardly any study has looked at entrepreneurial IC. This paper provides new insights by including entrepreneurial IC alongside employee-based IC.

Details

Managerial Finance, vol. 50 no. 2
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 14 August 2023

Puja Biswas and Amit Kundu

This chapter tries to capture the disparity in expenditure on primary education based on gender among the religious groups (Hindu, Muslim, and Christian) in rural India. The…

Abstract

This chapter tries to capture the disparity in expenditure on primary education based on gender among the religious groups (Hindu, Muslim, and Christian) in rural India. The gender gap in education expenditure for a certain demographic group is calculated using the Oaxaca–Blinder decomposition approach. Further, we tried to identify the various household-related factors which might influence the decision of spending on a child's education. We used the 75th-level National Sample Survey Office (NSSO) unit-level dataset of July 2017 to June 2018 (one academic year) to obtain data on education expenditure and other household factors which play a manifesting role in the gender gap in expenditure on education. Our finding suggests that the total differential (log mean boys education expenditure-log mean girls education expenditure) is positive among all religious groups signifying the gender bias in education expenditure. We also found that the magnitude of the “Unexplained Effect” component is higher compared to the “Explained Effect” component signifying that the treatment of characteristics by students differs by their sex at elementary education. Household size and if household members are employed on a casual basis, then their expenditure on education falls on the other hand income of the household, a household with computer availability and household member engaged in regular wage/salary earning plays a positive role in expenditure on primary education in rural India.

Details

Gender Inequality and its Implications on Education and Health
Type: Book
ISBN: 978-1-83753-181-3

Keywords

Article
Publication date: 26 September 2023

Sandra Matos, Susana Jorge and Patrícia Moura e Sá

This paper aims to propose a tool to assess local public expenditure effectiveness based on a framework of alignment between outputs, outcomes and impacts – the Index of Municipal…

Abstract

Purpose

This paper aims to propose a tool to assess local public expenditure effectiveness based on a framework of alignment between outputs, outcomes and impacts – the Index of Municipal Expenditure Effectiveness (IMEE). This index is composed of a set of indicators associated with the typology of local expenditure.

Design/methodology/approach

The paper describes the methodological approach used in the development of the Index, considering the insights from the literature review and the opinion of a panel of experts. The indicators of outcomes and social impacts that are part of the Index are intentionally aligned with the UN Sustainable Development Goals (SDGs) as they provide an essential guide to assess public value creation in the current context. For simplicity purposes, three main components of municipal expenditure were considered, namely Education, Essential Public Services and Local Public Transportation. The Index is then illustrated through a pilot application, using data from five Portuguese municipalities.

Findings

This study argues that measuring the public expenditure effectiveness based on outcome and impact indicators can provide the data needed for local governments to better understand the effects of their activities over time, ultimately assessing their contribution to public value.

Practical implications

Assessing the impact of local spending is important to ensure the best use of public resources. Linking local public expenditures with the 2030 Agenda and the SDGs is a promising avenue to understand up to what extent the application of the public money is contributing to create public value by impacting on citizens’ lives.

Originality/value

The proposed IMEE contributes to addressing a gap identified in public organizations, including local governments, regarding the lack of consideration of expenditure and outcome/impact relationships, and the use of variables to measure long term impacts.

Details

International Journal of Public Sector Management, vol. 36 no. 4/5
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 25 January 2023

Olaide Sekinat Opeloyeru and Akanni Olayinka Lawanson

The purpose of this paper is to examine the determinants of catastrophic household health expenditure in Nigeria, with particular focus on Out-of-Pocket (OOP) health expenditure…

Abstract

Purpose

The purpose of this paper is to examine the determinants of catastrophic household health expenditure in Nigeria, with particular focus on Out-of-Pocket (OOP) health expenditure. Payments for healthcare through OOP are the major means of channeling funds to healthcare providers in many developing countries including Nigeria. It has great consequence on household well-being, especially when it is difficult for household to meet up with spending on other necessity goods.

Design/methodology/approach

The demand for health theory provided the theoretical framework. The study used data from 2018/2019 Nigeria Living Standard Survey (NLSS) with catastrophic thresholds of 10 and 25%. A logistic regression model was used, while Pearson chi-squared test was used for models' goodness of fit.

Findings

Based on the obtained result using Pearson chi-squared, at 10% threshold of total non-food expenditure, the likelihood of experiencing catastrophic health expenditure increased with secondary education, for those without health insurance and for severely ill or injured by 1.48, 2.57 and 8.70, respectively. It fell for those who consulted patent medicine vendors/chemists for illness or injury by 0.63 compared to orthodox practitioners. Enhancement of post-secondary education and widening the coverage of the available social health insurance would minimise the financial burden on many households.

Originality/value

This paper fulfills the need to examine the determinants of catastrophic household health expenditure on two catastrophic thresholds and two forms of household expenditure.

Details

International Journal of Social Economics, vol. 50 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Article
Publication date: 14 November 2023

Xiaohui Xu and Yi Liu

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the…

Abstract

Purpose

The purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Design/methodology/approach

This study uses data from Chinese A-share listed companies from 2001 to 2021 and employ panel fixed model and moderating effect model to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.

Findings

The findings of this study reveal that managerial short-termism exerts negative influence on green innovation. Digital transformation enables firms to reduce the adverse effect of managerial short-termism on green innovation because digital transformation enhances information processing ability and then improves internal corporate governance and analyst coverage. Moreover, the moderating role of digital transformation is more prominent for firms with lower internal corporate governance, for firms with less analyst coverage and for non-state-owned enterprises.

Originality/value

This paper intends to address the following two questions: what is the impact of managerial short-termism on green innovation and what is the role of digital transformation in the two variables’ association? By using data of Chinese A-share listed companies from 2001 to 2021 and developing two individual indexes to measure managerial short-termism and digital transformation, the authors empirically test these above two questions. The results of this study indicate that: First, drawn on time-oriented theory and upper echelon theory, managerial short-termism has an adverse effect on firms’ green innovation. Second, digital transformation enables firms to reduce the negative effect of managerial short-termism on green innovation. Furthermore, the moderating mechanism tests show that the corporate governance effects of digital transformation play a supervisory role that impels managers to reduce short-term investments and promote firms’ green R&D investments, which helps to reduce the negative effect of managerial short-termism on green innovation. Additionally, the heterogeneity checks show that the moderating role of digital transformation in the relation between managerial short-termism and green innovation is more prominent for firms with lower internal corporate governance, with less analyst coverage and for non-state-owned enterprises.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 17 no. 3/4
Type: Research Article
ISSN: 2071-1395

Keywords

Book part
Publication date: 24 April 2023

Martín Almuzara, Gabriele Fiorentini and Enrique Sentana

The authors analyze a model for N different measurements of a persistent latent time series when measurement errors are mean-reverting, which implies a common trend among…

Abstract

The authors analyze a model for N different measurements of a persistent latent time series when measurement errors are mean-reverting, which implies a common trend among measurements. The authors study the consequences of overdifferencing, finding potentially large biases in maximum likelihood estimators (MLE) of the dynamics parameters and reductions in the precision of smoothed estimates of the latent variable, especially for multiperiod objects such as quinquennial growth rates. The authors also develop an R2 measure of common trend observability that determines the severity of misspecification. Finally, the authors apply their framework to US quarterly data on GDE and GDI, obtaining an improved aggregate output measure.

Details

Essays in Honor of Joon Y. Park: Econometric Methodology in Empirical Applications
Type: Book
ISBN: 978-1-83753-212-4

Keywords

Book part
Publication date: 14 December 2023

Ruiping Ren

This study attempts to identify and explicate the unique segmentation of the increasingly growing virtual reality (VR) user market based on the user experience. Consequently, it…

Abstract

This study attempts to identify and explicate the unique segmentation of the increasingly growing virtual reality (VR) user market based on the user experience. Consequently, it collects five hundred forty-five online survey questionnaires through the Prolific platform and deploys cluster analysis to identify mutually exclusive groups of VR users. The research variable, user experience, contains 16 indicators explained by four dimensions. As a result, this study is able to unveil three mutually exclusive markets which are labeled as (1) beginner, (2) aficionado, and (3) utilitarian. The unique features of these three groups are further compared based on their VR tour behaviors. In the conclusion section, it offers managerial implications for devising novel marketing strategies.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-83753-090-8

Keywords

Article
Publication date: 12 September 2023

Sang Hyun Park and Sean Jung

Prior studies generally focus on income smoothing through discretionary accruals and document that managers have incentives to smooth earnings due to various reasons. This paper…

Abstract

Purpose

Prior studies generally focus on income smoothing through discretionary accruals and document that managers have incentives to smooth earnings due to various reasons. This paper aims to focus on income smoothing through research and development (R&D) management and examine whether and how income smoothing through R&D management affects credit rating agencies’ perception of firm risk.

Design/methodology/approach

The authors use financial statement data from the CRSP/Compustat Merged data set universe for the period from 1992 to 2019 after excluding financial and utility industries. The authors follow the model for credit ratings used in previous literature to test the hypothesis. Specifically, the authors use an ordered probit model to express credit ratings as a function of income smoothing attributes.

Findings

The authors find that R&D-based income smoothing improves a firm’s credit rating. However, the positive effect of R&D-based income smoothing on credit ratings is less than that of accruals-based income smoothing. This study also shows that the positive effect of R&D-based income smoothing is more pronounced for firms less subject to opportunistic incentives, further strengthening the notion that managers smooth earnings through R&D management to provide more informative earnings.

Originality/value

This study contributes to the income smoothing literature in several ways. First, the authors contribute to the research by showing that managers’ income smoothing activity through R&D management positively affects firms’ credit rating. Second, the authors also document the relative benefits of the two different income smoothing techniques in terms of improving credit agencies’ perception of firms’ creditworthiness.

Details

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

Keywords

Article
Publication date: 19 October 2023

Omid Sabbaghi

This article aims to relate investments in human capital to the United Nations Sustainable Development Goals (UN SDGs), and examine the spending levels necessary to achieve high…

Abstract

Purpose

This article aims to relate investments in human capital to the United Nations Sustainable Development Goals (UN SDGs), and examine the spending levels necessary to achieve high performance in related SDG sectors for Azerbaijan.

Design/methodology/approach

Employing data from the World Bank, the empirical approach undertaken in this study relies on peer analysis by examining spending levels for nations exhibiting similar income levels and geographical proximity to Azerbaijan.

Findings

This study estimates that total spending in education would need to increase by 0.4 percentage points of GDP by 2030, while total spending in health would need to increase by 5.9 percentage points of GDP by 2030 for Azerbaijan.

Originality/value

This study contributes to the literature by conducting an empirical analysis in which other nations can emulate in measuring their relative progress on human capital investments and related UN SDGs.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0137

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 4 September 2023

Akanksha Mishra and Neeraj Pandey

This study aims to map and analyze health-care pricing information research. This work highlights current gap in pricing information research in health care and proposes future…

Abstract

Purpose

This study aims to map and analyze health-care pricing information research. This work highlights current gap in pricing information research in health care and proposes future research avenues to academia and industry professionals.

Design/methodology/approach

A bibliometric method was adopted to analyze extant literature on pricing information asymmetry. Semistructured interviews were conducted with key stakeholders in health care to triangulate the findings.

Findings

Pricing information is crucial for all stakeholders including health-care consumers, providers and regulators. The popular research areas were the rising health-care cost, cost-saving, outcome-based pricing, price based on service supply and demand, insurance and out-of-pocket spending. Cost–quality perceived linkages, cost–demand correlation in health-care service and cost–price interlinked drivers were the dominant themes in extant literature. The study highlighted that pricing information asymmetry pushed patients from weaker sections into a debt trap due to unplanned out-of-pocket health-care expenses. The study suggests areas of research to minimize this pricing information asymmetry.

Practical implications

The emerging themes in health pricing asymmetry will help key stakeholders to identify areas for improvement and take remedial actions in the health-care domain.

Originality/value

This study is a pioneering effort to summarize extant literature published in the health-care information pricing domain and analyze it from a bibliometric perspective. The study also triangulates the finding with primary data from key stakeholders and highlights emerging research areas.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 17 no. 4
Type: Research Article
ISSN: 1750-6123

Keywords

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