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Article
Publication date: 24 October 2023

Le Quy Duong

Although the value effect is comprehensively investigated in developed markets, the number of studies examining the Vietnamese stock market is limited. Hence, the first aim of…

Abstract

Purpose

Although the value effect is comprehensively investigated in developed markets, the number of studies examining the Vietnamese stock market is limited. Hence, the first aim of this research is to provide empirical evidence regarding returns on value and growth stocks in Vietnam. The second aim is to explain abnormal returns on Vietnamese growth and value stocks using both risk-based and behavioral points of view.

Design/methodology/approach

From the risk-based explanation, the Capital Asset Pricing Model (CAPM), Fama–French three- and five-factor models are estimated. From the behavioral explanation, to construct the mispricing factor, this paper relies on the method of Rhodes-Kropf et al. (2005), one of the most popular mispricing estimations in the financial literature with numerous citations (Jaffe et al., 2020).

Findings

While the CAPM and Fama–French multifactor models cannot capture returns on growth and value stocks, a three-factor model with the mispricing factor has done an excellent job in explaining their returns. Three out of four Fama–French mimic factors do not contain additional information on expected returns. Their risk premiums are also statistically insignificant according to the Fama–MacBeth second-stage regression. By contrast, both robustness tests prove the explanatory power of a three-factor model with mispricing. Taken together, mispricing plays an essential role in explaining returns on Vietnamese growth and value stocks, consistent with the behavioral point of view.

Originality/value

There are several value-enhancing aspects in the field of market finance. First, this paper contributes to the literature of value effect in emerging markets. While the evidence of value effect is obvious in numerous developed as well as international markets, both growth and value effects are discovered in Vietnam. Second, the explanatory power of Fama–French multifactor models is evaluated in the Vietnamese context. Finally, to the best of the author's knowledge, this is the first paper that incorporates the mispricing estimation of Rhodes-Kropf et al. (2005) into the asset pricing model in Vietnam.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Book part
Publication date: 4 April 2024

Yan He, Ruixiang Jiang, Yanchu Wang and Hongquan Zhu

We form portfolios based on return and liquidity and examine the effects of liquidity and other risk factors on asset pricing in the Chinese stock market. Our results show that…

Abstract

We form portfolios based on return and liquidity and examine the effects of liquidity and other risk factors on asset pricing in the Chinese stock market. Our results show that the past loser-and-illiquid stock portfolios tend to outperform the past winner-and-liquid stock portfolios in the 1–12 months holding period. The excess return is significantly associated with the market-wide liquidity factor even when we control the three Fama-French and momentum factors. Cross-sectionally, the liquidity beta significantly affects the excess return even with control of other risk betas and other traditional liquidity proxies.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-83753-865-2

Keywords

Article
Publication date: 28 December 2023

Nimrah Ishfaq and Anila Kamal

This study aims to differentiate crime-related characteristics (such as the number of cases filed against current convictions and criminal history) based on the criminal thinking…

Abstract

Purpose

This study aims to differentiate crime-related characteristics (such as the number of cases filed against current convictions and criminal history) based on the criminal thinking prevailing among convicts. However, because of the low reliability of subscales and poor structural validity of indigenous and translated versions of international instruments, a new instrument criminal attitude measure (CAM) was extracted to measure criminal thinking patterns among convicts incarcerated in central prisons of Punjab.

Design/methodology/approach

A cross-sectional research design was used. Data was collected from 1,949 male convicts (extracting mutually exclusive data from 649 respondents for EFA and 1,300 respondents for confirmatory factor analysis [CFA]). Both data samples were collected from convicts incarcerated in the nine (all) central jails of Punjab, Pakistan.

Findings

The results of this study showed poor model fit for both the indigenous criminal thinking scale and the translated version of criminogenic cognition scale. CAM was extracted through principal component analysis and proposed as a 15-item questionnaire with five factors extracted through varimax rotation. Those five factors are power orientation, mollification, entitlement, mistrust toward authorities and short-term orientation. The results of CFA for CAM confirmed the proposed five-factor structure for the construct. Findings based on MANOVA further found that CAM differentiates between the thinking patterns of recidivists, convicts with multiple charges filed against them in current convictions and convicts with a familial criminal record. The findings of this study showed that CAM is a practical, valid and reliable instrument for measuring criminal thinking among convicts.

Research limitations/implications

In this study, using the survey method was inevitable because of the restrictions imposed by the granted permission. However, this time duration was extended because of the courtesy of the Superintendent and Deputy Superintendent of each jail. This study is focused on a male sample only, and the findings cannot be generalized to females. The phenomena proposed (based on large data sets) in this study can further be elaborated using qualitative research designs and methods (using a small sample with an in-depth study). So, it is also suggested to test this new instrument on a comparative study between prisoners and non-prisoners to explore whether scale can differentiate between these two groups.

Practical implications

A short-scale and easy-to-administer instrument was developed for assessing major criminogenic needs among convicts for prison management, i.e. assigning barracks, allocating treatment and also detecting changes in attitude after imprisonment.

Originality/value

To the best of the authors’ knowledge, this study is the first study to explore and validate the construct of criminal attitudes among convicts using both the EFA and CFA. A small and valid instrument facilitates the measurement of criminogenic needs among prisoners. Data was collected from all central jails in Punjab. This study explored comparatively less researched crime characteristics in a relatively large sample.

Details

Journal of Criminal Psychology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 1 January 2024

Christine Nya-Ling Tan

This paper aims to use the five-factor model’s (FFM: emotional instability, introversion, openness to experience, agreeableness and conscientiousness) personality traits and the…

Abstract

Purpose

This paper aims to use the five-factor model’s (FFM: emotional instability, introversion, openness to experience, agreeableness and conscientiousness) personality traits and the need for arousal to explain millennials’ habitual and addictive smartphone use and resultant materialistic inclinations. The study also test the mediating role of addictive use in the relationship between habitual use and materialism.

Design/methodology/approach

Participants’ self-reported data (n = 705) from a sample of millennials were gathered using a cross-sectional survey approach conducted in Malaysia and studied using structural equation modelling with partial least squares (PLS-SEM).

Findings

The results discover that emotional instability, openness to experience, agreeableness and need for arousal have a significant influence on habitual smartphone use. Conversely, introversion and conscientiousness have no significant impact on habitual use. Fascinatingly, millennials’ habitual use positively influences their materialism. Furthermore, addictive smartphone use positively affects materialism and mediates the relationship between habitual use and materialism.

Originality/value

The FFM, a prominent personality trait model, has been used in numerous studies to predict usage intention. However, the particular dimension of the FFM personality traits that drive habitual and addictive smartphone use to trigger materialistic tendencies among millennials needs to be exposed in an emerging market context. The results emphasise the need to consider this demographic’s personalities when attempting to comprehend how habitual use and materialism occur. This study also provides practitioners with helpful information in creating targeted interventions to encourage healthy smartphone use behaviours and reduce possible adverse effects related to addictive smartphone use and materialistic attitudes.

Details

Young Consumers, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 28 March 2023

Osama F. Atayah, Khakan Najaf, Md Hakim Ali and Hazem Marashdeh

The purpose of this paper is to provide empirical evidence on the suitability of a Bloomberg Environmental (E), Social (S) and Governance (G) (ESG) disclosure index designed for…

Abstract

Purpose

The purpose of this paper is to provide empirical evidence on the suitability of a Bloomberg Environmental (E), Social (S) and Governance (G) (ESG) disclosure index designed for companies from the USA and to investigate the sustainability quality and stock performance of FinTech companies.

Design/methodology/approach

Data from all FinTech and non-FinTech firms in the USA was acquired from Bloomberg to undertake the study and evaluate the suggested hypotheses efficiently. The final sample consists of 1,672 company-year observations from 2010 to 2019. The methodology used ordinary least squares regressions of performance metrics on the Bloomberg ESG disclosure index and its components.

Findings

The findings indicated that the Bloomberg ESG disclosure index is a valid proxy for sustainability and has a direct relationship with stock performance. Furthermore, this study suggests that non-FinTech firms outperform FinTech firms in sustainability and stock performance. The findings support stakeholder theory, which suggests that increased disclosure of ESG information will mitigate the agency problem and protect shareholders’ interests.

Research limitations/implications

This study’s findings were significant because the findings emphasised ESG disclosure in FinTech and non-FinTech firms, providing information to academics, legislators, regulators, financial report users, investors, environmental unions, workers, customers and society.

Originality/value

This research is unique as it evaluates ESG practices in both FinTech and non-FinTech firms.

Details

Meditari Accountancy Research, vol. 32 no. 2
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 29 December 2023

Ajay Bhootra

Investors are inattentive to continuous information as opposed to discrete information, resulting in underreaction to continuous information. This paper aims to examine if the…

Abstract

Purpose

Investors are inattentive to continuous information as opposed to discrete information, resulting in underreaction to continuous information. This paper aims to examine if the well-documented return predictability of the strategies based on the ratio of short-term to long-term moving averages can be enhanced by conditioning on information discreteness. Anchoring bias has been the popular explanation for the source of underreaction in the context of moving averages-based strategies. This paper proposes and studies another possible source based on investor inattention that can potentially result in superior performance of these strategies.

Design/methodology/approach

The paper uses portfolio sorting as well as Fama-MacBeth cross-sectional regressions. For examining the role of information discreteness in the return predictability of the moving average ratio, the sample stocks are double-sorted based on the moving average ratio and information discreteness measure. The returns to these portfolios are computed using standard approaches in the literature. The regression approach controls for various well-known return predictors.

Findings

This study finds that the equally-weighted monthly returns to the long-short moving average ratio quintile portfolios increase monotonically from 0.54% for the discrete information portfolio to 1.37% for the continuous information portfolio over the 3-month holding period. This study observes a similar pattern in risk-adjusted returns, value-weighted portfolios, non-January returns, large and small stocks, for alternative holding periods and the ratio of 50-day to 200-day moving average. The results are robust to control for well-known return predictors in cross-sectional regressions.

Research limitations/implications

To the best of the authors’ knowledge, this is the first paper to document the significant role of investor inattention to continuous information in the return predictability of strategies based on the moving average ratios. There are many underreaction anomalies that have been reported in the literature, and the paper's results can be extended to those anomalies in subsequent research.

Practical implications

The findings of this paper have important practical implications. Strategies based on moving averages are an extremely popular component of a technical analyst's toolkit. Their profitability has been well-documented in the prior literature that attributes the performance to investors' anchoring bias. This paper offers a readily implementable approach to enhancing the performance of these strategies by conditioning on a straightforward measure of information discreteness. In doing so, this study extends the literature on the role of investor inattention to continuous information in anomaly profits.

Originality/value

While there is considerable literature on technical analysis, and especially on the performance of moving averages-based strategies, the novelty of this paper is the analysis of the role of information discreteness in strategy performance. Not only does the paper document robust evidence, but the findings suggest that the investor’s inattention to continuous information is a more dominant source of underreaction compared to anchoring. This is an important result, given that anchoring has so far been considered the source of return predictability in the literature.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 5 January 2024

Kanwal Zahoor, Faisal Qadeer, Muhammad Sheeraz and Imran Hameed

Drawing upon social learning theory (SLT), the study examines the consequences of ethical leadership on followers' voice behavior facets (promotive and prohibitive). The study…

Abstract

Purpose

Drawing upon social learning theory (SLT), the study examines the consequences of ethical leadership on followers' voice behavior facets (promotive and prohibitive). The study tests hypotheses about the processing mechanism (moral identity) and the boundary condition (proactive personality) to understand these relationships.

Design/methodology/approach

The study collected time-lagged survey data through an online structured questionnaire from 182 respondents. Confirmatory factor analysis (CFA) was used to ensure the validity and reliability of the data. Moreover, structural equation modeling was run to test the hypotheses using AMOS.

Findings

Ethical leadership positively affects followers' promotive and prohibitive voice behavior via the psychological mechanism of moral identity. Proactive personality moderates the moral identity – promotive and moral identity – prohibitive voice relationships, such that these relations are stronger when the individuals are high on proactive personality.

Research limitations/implications

Robust evidence of a genuine cause-and-effect relationship may not be yielded owing to cross-sectional and self-reported data at the follower level of analysis. Future researchers can use dyadic, longitudinal and experimental designs to overcome these limitations. Organizations targeting to increase voice behavior can benefit from maintaining ethical leaders and proactive followers at the workplace.

Originality/value

The study significantly contributes to the ethical leadership and voice behavior literature. Ethical leadership enhances followers' promotive/prohibitive voice behaviors through their moral identity enhancement. The paper also confirmed that a proactive personality is a critical boundary condition in these relationships. Empirical evidence from the Eastern context has been added, and research directions have also been provided.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 28 February 2023

Luca Tisu and Delia Vîrgă

Based on the Job Demands-Resources theory, this study investigates whether psychological capital (PsyCap) is a precursor of the one-directional work-to-home enrichment (WHE…

Abstract

Purpose

Based on the Job Demands-Resources theory, this study investigates whether psychological capital (PsyCap) is a precursor of the one-directional work-to-home enrichment (WHE) process through a parallel mediation mechanism enabled by promotion-focused job crafting components.

Design/methodology/approach

A cross-sectional study was conducted on 231 Romanian employees. Data were analyzed using structural equation modeling (SEM).

Findings

PsyCap (what I can do) is an antecedent of all three promotion-focused job crafting behaviors (what I actually do) and WHE. Two specific job crafting dimensions – increasing social job resources and increasing challenging job demands – fully mediate the link between PsyCap and WHE. Increasing structural job resources does not predict WHE.

Originality/value

This study identifies PsyCap as an antecedent of WHE. It also uncovers underlying behavioral mechanisms that enable the transfer of resources from the work role to individuals' home role by investigating job crafting components as distinct dimensions. As such, it gives practitioners a clearer understanding of which behaviors they should seek to cultivate for employees to potentiate their home role through aspects of their job.

Details

Personnel Review, vol. 52 no. 8
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 6 February 2024

Yu-Shan Hsu, Yu-Ping Chen, Flora F.T. Chiang and Margaret A. Shaffer

Integrating anxiety and uncertainty management (AUM) theory and theory of organizing, this study aims to contribute to the knowledge management literature by examining the…

Abstract

Purpose

Integrating anxiety and uncertainty management (AUM) theory and theory of organizing, this study aims to contribute to the knowledge management literature by examining the interdependent and bidirectional nature of knowledge transfer between expatriates and host country nationals (HCNs). Specifically, the authors investigate how receivers’ cognitive response to senders’ behaviors during their interactions becomes an important conduit between senders’ behaviors and the successful transfer of knowledge.

Design/methodology/approach

The authors used the actor partner interdependence model to analyze data from 107 expatriate-HCN dyads. The authors collected the responses of these expatriate-HCN dyads in Shanghai, Taipei, Hong Kong, Vietnam, South Korea, Malaysia, Thailand, Indonesia and India.

Findings

Receivers’ interaction anxiety and uncertainty, as a response to senders’ relationship building behaviors, mediate the relationship between senders’ relationship building behaviors and successful knowledge transfer. When senders are expatriates, senders’ communication patience and relationship building behaviors interact to reduce the direct and indirect effects of both receivers’ interaction anxiety and uncertainty. However, when senders are HCNs, the moderation and moderated mediation models are not supported.

Originality/value

The study contributes to the knowledge management literature by investigating knowledge transfer between expatriates and HCNs using an interpersonal cross-cultural communication lens. The authors make refinements to AUM theory by going beyond the sender role to highlighting the interdependence between senders and receivers in the management of anxiety and uncertainty which, in turn, influences the effectiveness of cross-cultural communication. The study is also unique in that the authors underscore an important yet understudied construct, communication patience, in the successful transfer of knowledge.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 6 November 2023

Tianwei Ding, Ziru Qi and Jiaoping Yang

In today's digitalized world, platform leadership is a novel leadership style that facilitates employee innovation. However, the impact mechanism of platform leadership on…

Abstract

Purpose

In today's digitalized world, platform leadership is a novel leadership style that facilitates employee innovation. However, the impact mechanism of platform leadership on employee innovation passion has not been explored.

Design/methodology/approach

In this study, based on the theory of a self-organizing objective system, 591 new-generation employees were surveyed to explore the impact of platform leadership on the harmonious innovation passion of new-generation employees.

Findings

The results showed that platform leadership stimulates the harmonious innovation passion of employees by promoting the integration of organizational and employee objectives. This mechanism was found to be weakened by the internal integrated organizational culture and strengthened by the external adaptive organizational culture.

Originality/value

This study explores the mechanism by which platform leadership style influences the harmonious innovation passion of new-generation employees and provides theoretical guidance and practical insight into ways to improve the innovation capability of new-generation employees.

Details

Journal of Organizational Change Management, vol. 36 no. 6
Type: Research Article
ISSN: 0953-4814

Keywords

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