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21 – 30 of over 1000
Article
Publication date: 18 April 2017

Mehdi Mili and Sami Abid

This paper aims to examine risk-taking in Islamic banks by exploring moral hazard and owner/manager agency problems simultaneously.

Abstract

Purpose

This paper aims to examine risk-taking in Islamic banks by exploring moral hazard and owner/manager agency problems simultaneously.

Design/methodology/approach

The authors propose to estimate a model of bank risk-taking that includes both franchise value and ownership structure as explanatory factors of bank risk.

Findings

The results show that franchise value is an important determinant of Islamic bank risk-taking. Banks with high franchise values are less likely to take risks than banks with low franchise value. In contrast, outside block holders have, at best, limited influences on bank risk-taking.

Originality/value

This paper conducts the first empirical examination of the relationship between managerial risk preferences and Islamic banks ownership. The authors examine simultaneously the effect of franchise value and owner/manager problem on Islamic bank risk taking behavior. They consider separately the impact on total risk, systematic risk and bank specific risk.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 10 no. 1
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 26 July 2011

Maureen Brookes and Angela Roper

This paper seeks to examine the inter‐organisational processes used to control international master franchise agreements from operational, relational and evolutionary perspectives.

3350

Abstract

Purpose

This paper seeks to examine the inter‐organisational processes used to control international master franchise agreements from operational, relational and evolutionary perspectives.

Design/methodology/approach

The research is undertaken through a qualitative, in‐depth case study in the international hotel industry. The case comprises an international master franchise agreement between a large US‐based hotel franchisor and its European master franchisee.

Findings

The study identifies the inter‐related nature of operational and relational control processes and how these evolve over the life of a master franchise agreement. It reveals how the perceptions of franchise members serve to enhance or inhibit the development of relational norms and how these, in turn, impact on the predominant type of control and the specific inter‐organisational processes employed.

Research limitations/implications

The research is based on a single in‐depth case study within one industrial context and the universality of the findings may therefore be limited.

Practical implications

The paper offers insights to managers of international master franchise agreements on the interaction between members' perceptions, relational norms developed and the inter‐organisational processes used to control the agreement. It also reveals how the use of contractual controls can inhibit the development of relational norms and negatively impact on relationships between franchisors and master franchisees. The findings presented may have relevance to managers of other types of international alliance agreements.

Originality/value

By drawing on both the alliance and franchise literature and employing a qualitative approach, the study helps to close a gap in the current international franchise literature through the identification of specific inter‐organisational processes for control within international master franchise agreements, how these evolve in respect of relational norms and how these are underpinned by perceptions of franchisor and franchisee members.

Details

European Journal of Marketing, vol. 45 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 21 March 2016

Amy M. Gregory and Jeffrey Weinland

This paper aims to facilitate an immediate immersion of academic literature in the timeshare/vacation ownership industry. Through a synthesis of 92 articles published in academic…

1204

Abstract

Purpose

This paper aims to facilitate an immediate immersion of academic literature in the timeshare/vacation ownership industry. Through a synthesis of 92 articles published in academic journals over the past 40 years, the authors demonstrate the breadth of the current research. Topical areas, methodologies and findings are presented, as well as opportunities for further investigation. This paper also provides the reader with a robust consolidation of literature in a tabular form to include authors, publication dates, sources and titles.

Design/methodology/approach

Through a comprehensive search of multiple academic research databases, university catalogues and references of existing literature and conference proceedings, the authors compiled a review of timeshare research with the aim of classifying the various components and issues that have been examined to date.

Findings

The timeshare segment of the greater lodging industry is unique due to its real estate ownership component, complex management characteristics and regulatory environment. The unique nature appeals to researchers and provides an opportunity for investigation of generally accepted theories and principles. The literature follows industry advances in the segment, with the majority of research focused on sales and marketing practices, and resort services and operations. An abundance of future research opportunities is identified in the literature, to which only a few have been addressed.

Originality/value

A synthesis of timeshare literature has not been published to date, either in hospitality literature or in other fields of study, i.e. real estate. Therefore, the authors provide a foundation for researchers, academics and students to utilize in further study and investigation.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 June 2010

Abraham Park and John L. Glascock

The purpose of this paper is to analyze the effect of corporate real estate (CRE) asset ownership on the performances of franchise organizations.

1306

Abstract

Purpose

The purpose of this paper is to analyze the effect of corporate real estate (CRE) asset ownership on the performances of franchise organizations.

Design/methodology/approach

Using data on all available US public franchise companies, the paper measured the effect of CRE ownership on the risk and return characteristics of franchise firms.

Findings

Unlike previous findings that show negative performance effects of CRE ownership in general, the paper shows positive effects for franchise organizations.

Research limitations/implications

Although the paper includes all available public franchises in the sample, the sample size is still limited.

Practical implications

The results show how CRE ownership can impact the long‐term performances of franchise organizations.

Originality/value

While most of the CRE literature focuses on theory, the paper offers positive empirical evidence of the importance of CRE ownership.

Details

Journal of Corporate Real Estate, vol. 12 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 10 May 2011

Tom Groot, Peter Risseeuw and Eelke Wiersma

The purpose of this paper is to explore how scale and scope of operations, firm age, and the choice to join a franchise formula influences brokerage firms' efficiency.

Abstract

Purpose

The purpose of this paper is to explore how scale and scope of operations, firm age, and the choice to join a franchise formula influences brokerage firms' efficiency.

Design/methodology/approach

Four‐year data of 1,282 Dutch real estate brokerage firms is used to compute a relative efficiency measure for all firms. Consecutively, variation in this efficiency measure is explained from the firm and market characteristics.

Findings

The results show that scale and scope have a non‐linear, U‐shaped, relationship with efficiency. A reversed U‐shaped relationship is found between age and efficiency. Finally, being a member of a franchise does not necessarily lead to improved efficiency, but it depends on the franchise formula terms used.

Practical implications

Based on these results, managers of real estate brokerage firms are able to reconsider their own organizational design choices.

Originality/value

Compared to prior studies, this study uses data from multiple years. Further, the analysis also incorporates non‐linear effects of scale, scope and age on efficiency. Finally, prior research has only compared efficiency of franchise versus independent firms. This study shows that benefits of a franchise depend on the contract terms.

Details

Journal of European Real Estate Research, vol. 4 no. 1
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 1 April 2003

Lilly Chow and Lorelle Frazer

This paper analyses operational differences between mobile franchising arrangements and fixed‐site franchises from an agency‐theoretic perspective. Almost 40 per cent of all…

2441

Abstract

This paper analyses operational differences between mobile franchising arrangements and fixed‐site franchises from an agency‐theoretic perspective. Almost 40 per cent of all franchised units in Australia operate as mobile or home‐based businesses, predominantly in service industries where products or services are provided directly to consumers. A two‐stage methodology is reported in this paper, incorporating quantitative and qualitative research methods. In stage one, data obtained from a survey of the population of Australian franchisors in 1998 are analysed to compare operational variables of mobile and fixed‐site franchise units. The second stage of the research employs in‐depth interviews with a sample of mobile franchisors and franchisees to further explore relevant issues. The results confirm the agency theory perspective that start‐up investment risk is lower in mobile units and mobile operations exhibit a higher level of repeat customers than fixed‐site franchises. No significant differences between the two arrangements are revealed in relation to the levels of franchisee monitoring, initial training or essential franchisee experience. This study indicates that agency theory contributes to our understanding of mobile franchising arrangements, yet also suggests the findings are not completely explained by agency theory. The results imply that both monitoring and alignment of incentives have complimentary effects and that both forms of contract are necessary in a franchisor's control system.

Details

European Journal of Marketing, vol. 37 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 April 2012

Changjun Zheng, Tinghua Xu and Wanxia Liang

In order to improve banks' ability to fight against risks, China's financial regulatory authorities refer to the Basel Accord, and bank capital adequacy ratio is taken as an…

1108

Abstract

Purpose

In order to improve banks' ability to fight against risks, China's financial regulatory authorities refer to the Basel Accord, and bank capital adequacy ratio is taken as an important means of control. The purpose of this paper is to investigate the internal mechanism between capital buffers and risk adjustment.

Design/methodology/approach

Based on the dynamic characteristics of a bank's continuing operations, the authors established an unbalanced panel of China's commercial bank balance‐sheet data from 1991 to 2009 and used the Generalized Method of Moments to examine the relationship between short‐term capital buffer and portfolio risk adjustments.

Findings

The authors' estimations show that the relationship between capital and risk adjustments for well capitalized banks is positive, indicating that they maintain their target level of capital by increasing (decreasing) risk when capital increases (decreases). In contrast, for banks with capital buffers approaching the minimum capital requirement, the relationship between adjustments in capital and risk is negative. That is, low capital banks either increase their buffers by reducing their risk, or gamble for resurrection by taking more risk as a means to rebuild the buffer. Moreover, the authors' estimations show that the management of short‐term adjustments in capital and risk is dependent on the size of the capital buffer.

Research limitations/implications

From the current research documents, there are few empirical researches on capital buffers and risk adjustment, and the research sample time limits of current papers are a little earlier. The researches did not reflect China's commercial banks' capital buffer and risk adjustment after the new Basel Accord.

Practical implications

Banks' adjustment speed of target level depends on the size of capital buffer, proving that the speed of adjusting capital buffer of banks with smaller capital buffer is significantly faster than their counterparts with larger capital buffers.

Originality/value

The paper uses the dynamic feature of banks' lasting operations as the logical starting point, which is ignored by the current researches, and investigates the internal mechanism between capital buffers and risk adjustment.

Details

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

Keywords

Article
Publication date: 8 July 2013

Nan Hua and Michael C. Dalbor

The existing research finds a positive financial impact of franchising for relatively short time windows, usually less than ten years. As a result, these studies leave one…

2917

Abstract

Purpose

The existing research finds a positive financial impact of franchising for relatively short time windows, usually less than ten years. As a result, these studies leave one critical research question unanswered: does franchising influence restaurant firms' financial performance consistently in the long term? The purpose of this paper is to address the research question and offer relevant managerial implications.

Design/methodology/approach

This study uses and expands the models derived from Ohlson, from Amir and Lev and from Lev and Zarowin to address the financial impacts of franchise in the restaurant industry from a long-term and consistent perspective.

Findings

Carrying out empirical tests over all ten-year testing windows that span 1980-2010 with quarterly data, this study finds that franchising is an effective mechanism to systematically and consistently outperform non-franchise firms in the long term and provides compelling empirical evidence to answer the research question. Further, limited-service restaurants also exhibit consistent and positive impacts on firm financial performance in the long term, suggesting limited-service operations are also effective to enhance firm value and outperform competitors.

Originality/value

First, this study expands the set of variables employed by many financial researchers to explain stock price in the restaurant industry. Second, this study tests and shows that franchising systematically leads to financial outperformance over the long term. Third, this study tests and shows that limited service restaurants consistently and systematically outperform their peers in the long run. Finally, the results of this study can be used to help investors and fund managers select restaurant company stocks and offer compelling evidence in support of franchising and limited service operations.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 January 2005

Audhesh K. Paswan, Lou E. Pelton and Sheb L. True

Literature on the services industry's front‐line employees has largely focused on the relationships between service providers and customers. However, there is increasing…

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Abstract

Purpose

Literature on the services industry's front‐line employees has largely focused on the relationships between service providers and customers. However, there is increasing approbation that managers influence the front‐line employees' motivation, ultimately impacting service quality. This study investigates the relationship between front‐line employees' perceived managerial sincerity, need for feedback, and role motivation.

Design/methodology/approach

The data were collected at 26 restaurants (from a global fast‐food franchised chain) located in a large US city, using a self‐administered questionnaire, from their front‐line employees. The final sample size was 185 (47.4 percent response).

Findings

The results suggest a positive association between front‐line employees’ feedback‐seeking orientation and their perceived managerial sincerity. A positive association also exists between front‐line employees' motivation levels and their job satisfaction.

Research limitations/implications

The focus on a subset of restaurants (from a single franchise system) and the limited scope of states‐of‐mind and behaviors measured are two main limitations. A multitude of other front‐line employee characteristics and factors should be investigated in future studies.

Practical implications

Results suggest that managers' interpersonal communication techniques enhance front‐line employees' perceptions of managerial sincerity, and increase their motivation and job satisfaction. However, managers need to balance a portfolio of diverse employee traits with relevant managerial styles to achieve desired outcomes.

Originality/value

The association between perceived managerial sincerity and feedback‐seeking orientation is intuitively appealing and comforting. However, some employees are happy being told what to do without any concern for involvement. Employees with low perceived managerial sincerity are also low on feedback need.

Details

Journal of Services Marketing, vol. 19 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 April 1997

William A. Brindley and Michael J. Bear

While downsizing was the rage in the first part of this decade, it is becoming increasingly clear that in the 21st century companies won't be able to cut their way to…

Abstract

While downsizing was the rage in the first part of this decade, it is becoming increasingly clear that in the 21st century companies won't be able to cut their way to profitability. Cost cutting alone only saves money; it doesn't build a business. Unless cost savings are reinvested in the business, there can be no real, sustainable growth. Operations and capabilities pared to the bone rarely can respond to market opportunities, and so are vulnerable to competitors who can. In addition, costs must be reduced in a systematic and strategic way, with the focus on designing or redesigning processes for cost management.

Details

Journal of Business Strategy, vol. 18 no. 4
Type: Research Article
ISSN: 0275-6668

21 – 30 of over 1000