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1 – 10 of over 4000Suvra Roy, Ben R. Marshall, Hung T. Nguyen and Nuttawat Visaltanachoti
The purpose of this study is to investigate (1) how managers respond to stock price crashes, (2) why they respond and (3) how their responses affect shareholders.
Abstract
Purpose
The purpose of this study is to investigate (1) how managers respond to stock price crashes, (2) why they respond and (3) how their responses affect shareholders.
Design/methodology/approach
This study employs a panel regression with various firm-level controls and firm- and year-fixed effects. The sample is comprised of 101,532 firm-year observations with 11,727 unique firms from 1950 to 2019. Using mutual fund flow redemption pressure as an exogenous variable to stock price crashes, the paper provides further evidence of the causality of documented findings.
Findings
Management becomes more focused on improving transparency, raising investment efficiency, reducing agency conflicts and regaining the trust of shareholders by investing in social capital and employee welfare. These actions increase firm value. This study also suggests that management undertakes these actions out of concern for their tenure of employment.
Originality/value
The catalysts of stock price crashes are well documented, but much less is known about what happens following stock price crashes. This study provides more insights into the understanding of corporate crisis management practices following adverse events.
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Ahmed S. Baig, Muhammad Imran Chaudhry and R. Jared DeLisle
In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world…
Abstract
Purpose
In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world during 2014–2017. The authors study the effect of stock-level variables on price clustering and analyze the determinants of the cross-sectional patterns of price clustering in the PSX, in particular the causal link between price clustering and political instability.
Design/methodology/approach
The authors' dataset comprises daily observations on 100 PSX stocks spanning from January 1, 2009 to June 30, 2019. The authors use multivariate regression and spectral analysis to shed light on the dynamics of stock price clustering in PSX.
Findings
The authors document abnormally high levels of stock price clustering, particularly on integer increments, in PSX. The nature of stock price clustering in PSX is consistent with the negotiation hypothesis of Harris (1991). The levels of stock price clustering on PSX are persistent and contain a cyclical component. Furthermore, the authors find that political uncertainty in Pakistan is a significant contributor to the high levels of price clustering on PSX. The authors' conclusions are robust to alternative econometric specifications and different measures of price clustering and political uncertainty.
Practical implications
The authors' findings are of interest to investors and policymakers. Since price clustering decreases market quality and degrades the information content of stock prices, the authors' study shows that price efficiency in PSX has not improved despite major reforms over the last decade. One practical implication of the authors' results is that investors should be cautious while rebalancing portfolios around political events such as general elections because stock price clustering increases in the PSX during these periods. As a result, stock prices are likely to deviate from their intrinsic values.
Originality/value
Research on price clustering is limited to developed markets, and emerging/frontier markets have been largely overlooked. The phenomenon of price clustering in the PSX has yet to be studied, despite the relevance of the PSX for emerging/frontier market investors.
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Thai-Ha Le, Long Hai Vo and Farhad Taghizadeh-Hesary
This study examines the co-integration relationships between Association of Southeast Nations (ASEAN) stock indices as a way to assess the feasibility of policy initiatives to…
Abstract
Purpose
This study examines the co-integration relationships between Association of Southeast Nations (ASEAN) stock indices as a way to assess the feasibility of policy initiatives to strengthen market integration in ASEAN and identify implications for portfolio investors.
Design/methodology/approach
The authors employ threshold co-integration tests and a non-linear autoregressive distributed lag (NARDL) model to study the asymmetric dynamics of ASEAN equity markets. The study’s data cover the 2009–2022 period for seven member states: Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Findings
The authors find evidence supporting co-integration relationships; adjustment toward equilibrium is asymmetric in the short run and symmetric in the long run for these countries. While co-movement in ASEAN equity markets seems encouraging for initiatives seeking to foster financial integration in regional economies, the benefits for international portfolio diversification appear to be neutralized.
Originality/value
The issue of stock market integration is important among policymakers, investors and academics. This study examines the level of stock market integration in ASEAN during the 2009–2022 period. For this purpose, advanced co-integration techniques are applied to different frequencies of data (daily, weekly and monthly) for comparison and completeness. The empirical analysis of this study is conducted using the Enders and Siklos (2001) co-integration and threshold adjustment procedure. This advanced co-integration technique is superior compared to other co-integration techniques by permitting asymmetry in the adjustment toward equilibrium.
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Patrik Jonsson, Johan Öhlin, Hafez Shurrab, Johan Bystedt, Azam Sheikh Muhammad and Vilhelm Verendel
This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?
Abstract
Purpose
This study aims to explore and empirically test variables influencing material delivery schedule inaccuracies?
Design/methodology/approach
A mixed-method case approach is applied. Explanatory variables are identified from the literature and explored in a qualitative analysis at an automotive original equipment manufacturer. Using logistic regression and random forest classification models, quantitative data (historical schedule transactions and internal data) enables the testing of the predictive difference of variables under various planning horizons and inaccuracy levels.
Findings
The effects on delivery schedule inaccuracies are contingent on a decoupling point, and a variable may have a combined amplifying (complexity generating) and stabilizing (complexity absorbing) moderating effect. Product complexity variables are significant regardless of the time horizon, and the item’s order life cycle is a significant variable with predictive differences that vary. Decoupling management is identified as a mechanism for generating complexity absorption capabilities contributing to delivery schedule accuracy.
Practical implications
The findings provide guidelines for exploring and finding patterns in specific variables to improve material delivery schedule inaccuracies and input into predictive forecasting models.
Originality/value
The findings contribute to explaining material delivery schedule variations, identifying potential root causes and moderators, empirically testing and validating effects and conceptualizing features that cause and moderate inaccuracies in relation to decoupling management and complexity theory literature?
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Vladimir Dmitrievich Milovidov
The purpose of the article is to show the changing behavior of investors in the post-pandemic period, the continued development of “emotional communities” in the financial market…
Abstract
Purpose
The purpose of the article is to show the changing behavior of investors in the post-pandemic period, the continued development of “emotional communities” in the financial market, as well as the factors contributing to their formation and the role of such communities in the elaboration of investors' decisions.
Design/methodology/approach
The research includes an analysis of the popularity of various terms searched in the US segment of Google in the financial category from 2004 to 2022, their correlation with financial market indicators and theoretical observations around these data.
Findings
The results obtained by the author allow him to draw the following conclusions: (1) the change in investors' behavior indicates the formation of the new distributed community-centric model of the financial market; (2) the main distinguishing feature of the behavior of many retail investors is gamification; (3) the networking of investors contributes to a significant change in their priorities in the elaboration of investment decisions; (4) the fundamental indicators of the financial market play an ever decreasing role in the decision-making of individual investors.
Originality/value
To the best of the author's knowledge, the formation of emotional communities of investors and their role in the elaboration of mass investor decisions is not widely covered in the literature. The paper develops a framework for further studies on the role of emotional communities in the financial market and in changing behavior of retail investors.
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Ehtisham Ali, Liu Jianhua, Mohsin Rasheed and Ahsan Siraj
This study empirically tests a conceptual framework that shows how integration practices are significantly associated with supply chain (SC) performance. This study also intends…
Abstract
Purpose
This study empirically tests a conceptual framework that shows how integration practices are significantly associated with supply chain (SC) performance. This study also intends to achieve the following purposes: first, how the performance is influenced by the integration practices, i.e. internal and external; second, to measure the mediating effect of organizational antecedents (market orientation, learning orientation) between integration practices and firm’s SC performance.
Design/methodology/approach
In a noncontrived study environment, a cross-sectional study design was used with a questionnaire. The study used a stratified proportionate random sample of 205 managers from manufacturing firms in China. Six hypothesized relationships were examined using the structural equation modeling (SEM) technique in AMOS software, and five were shown to be valid. The proposed model was validated through various techniques.
Findings
Results of this study indicate that both external and internal integration influence SC performance and confirms the mediating role of organizational antecedents between integration practices and SC performance. According to the findings, five out of the six hypotheses are accepted. Findings of this research also offer very expedient insights for the companies’ management which can help them to ensure optimal output by giving due importance to external as well as internal integration.
Research limitations/implications
The data for the study were only obtained from one province, which was Henan Province, and one industry, which was manufacturing; this constrained the generalizability of the study. The findings may be further validated in the future by expanding the scope of the studies to include various cultural contexts and types of businesses. Second, this study used data from a cross-sectional analysis; however, future research may potentially make use of a longitudinal design in order to more thoroughly confirm the findings.
Practical implications
Findings of this study offer substantial managerial insights suggesting various ways to develop better internal as well as external integration to get better results. Management of the company should focus and give more importance to job rotation, trainings and management commitment as part of internal integration. Moreover, management should strive for improving the capabilities of integration in internal functions prior to external integration as internal collaboration, teamwork and interaction within the company are considered as a precondition to maintain integration with external stakeholders. It is also a social process which needs to be built up over a longer period of time.
Originality/value
The authors contribute to the literature by experimentally evaluating the effects of integration practices on SC performance using a conceptual model drawn from current theories. The study also offer additional empirical evidence for Han et al. (2007), who found that SCI enhances firm performance through quality management in their analyses of the relationships between SCI, quality management practices and firm performance.
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Jonathan Furner and Birger Hjørland
This article examines the Library of Congress Subject Headings (LCSH), which is the most used subject heading system in the world and an instance of a controlled vocabulary (CV).
Abstract
Purpose
This article examines the Library of Congress Subject Headings (LCSH), which is the most used subject heading system in the world and an instance of a controlled vocabulary (CV).
Design/methodology/approach
The method used to examine the system is based on both authors’ subject knowledge in the field of information science (IS) and the subfield of knowledge organization (KO). Core concepts in this domain were examined (1) by checking if they are present or not in the system; (2) if not, by determining whether LCSH contains alternative terms useful for searching documents about the missing concept, by examining books indexed by the Library of Congress; (3) by identifying the semantic relations between subject headings.
Findings
The results demonstrate fundamental problems in the logical consistency of the representation of IS and KO in LCSH.
Practical implications
The implications for CVs in general are discussed.
Originality/value
No previous study has used our method to examine LCSH’s coverage of IS.
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The main purpose of the paper is to offer a personal view on the development of documentation/information and documentation (IuD) in Germany, while pointing out the need to…
Abstract
Purpose
The main purpose of the paper is to offer a personal view on the development of documentation/information and documentation (IuD) in Germany, while pointing out the need to further investigate the specific features of its development paths. The methodology is based on critical review of the available literature sources in the German language.
Design/methodology/approach
The paper uses the method of critical review of published documents in journals (especially in Nachrichten für Dokumentation), books and reports of state and provincial administrations that are directly related to monitoring and/or encouraging the development of the young field of documentation.
Findings
The paper offers a review and interpretation of the most significant development phases, the contributions of individuals and the influence of the official state and information policy based on the consulted sources.
Research limitations/implications
This research is limited to the literature written in German language.
Practical implications
The paper could be of interest to researchers and professionals who are interested in the development of documentation.
Social implications
The paper covers the period after the World War II until the end of 1980s that is especially interesting from the social point of view in divided Germany.
Originality/value
To the author’s knowledge, there is no comprehensive history of documentation in German-speaking countries written in English. This paper is the result of a research project started three years ago with colleagues from Germany, Austria and Switzerland, that aims to cover all phases of the appearance and development of information science in German-speaking countries and could be understood as a kind of introduction to papers planned to follow.
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Bing Peng-Loong Wong, M. Abu Saleh, Raechel Johns and Ravi Chinta
Despite the important role that exploitation plays in innovation and new product development (NPD), research on the relative impact of internal organisational stocks of existing…
Abstract
Purpose
Despite the important role that exploitation plays in innovation and new product development (NPD), research on the relative impact of internal organisational stocks of existing knowledge on subsequent exploitation is largely absent. In particular, there is lack of clarity within the extant literature regarding the associations between organisational exploitation and, respectively, the distal-proximal technological experience and radical-incremental innovative experience generated by multiproduct firms. Thus, this study seeks to further enhance researchers’ theoretical understanding on the relationship between organisational exploitation and internal knowledge stocks categorised along two dimensions of organisational experience accumulated by multiproduct firms that have not previously been considered jointly.
Design/methodology/approach
This paper pursues a focussed literature review approach and applies the underlying theory of exploitation to develop a theory explaining the possible relationships between organisational exploitation and internal knowledge stocks.
Findings
Based on the theory of exploitation, this paper proposes a new direction in studying the various internal knowledge stocks and their respective impact on subsequent organisational exploitation.
Practical implications
The proposed research direction suggests an emerging framework of possible relationships between exploitative new radical products development in firms, and respectively, proximal and distal technological experience, and radical and incremental innovative experience, accumulated in multiproduct firms. This novel framework can guide further research on this topic.
Originality/value
To fill a research gap regarding the possible relationships between subsequent exploitative endeavours and two dimensions of organisational experience that have been traditionally associated with the exploration-exploitation construct, this paper proposes and develops a novel typology of knowledge stocks categorised along two dimensions of organisational experience accumulated by multiproduct firms that have not previously been considered jointly in the literature.
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Fotini Economou, Konstantinos Gavriilidis, Bartosz Gebka and Vasileios Kallinterakis
The purpose of this paper is to comprehensively review a large and heterogeneous body of academic literature on investors' feedback trading, one of the most popular trading…
Abstract
Purpose
The purpose of this paper is to comprehensively review a large and heterogeneous body of academic literature on investors' feedback trading, one of the most popular trading patterns observed historically in financial markets. Specifically, the authors aim to synthesize the diverse theoretical approaches to feedback trading in order to provide a detailed discussion of its various determinants, and to systematically review the empirical literature across various asset classes to gauge whether their feedback trading entails discernible patterns and the determinants that motivate them.
Design/methodology/approach
Given the high degree of heterogeneity of both theoretical and empirical approaches, the authors adopt a semi-systematic type of approach to review the feedback trading literature, inspired by the RAMESES protocol for meta-narrative reviews. The final sample consists of 243 papers covering diverse asset classes, investor types and geographies.
Findings
The authors find feedback trading to be very widely observed over time and across markets internationally. Institutional investors engage in feedback trading in a herd-like manner, and most noticeably in small domestic stocks and emerging markets. Regulatory changes and financial crises affect the intensity of their feedback trades. Retail investors are mostly contrarian and underperform their institutional counterparts, while the latter's trades can be often motivated by market sentiment.
Originality/value
The authors provide a detailed overview of various possible theoretical determinants, both behavioural and non-behavioural, of feedback trading, as well as a comprehensive overview and synthesis of the empirical literature. The authors also propose a series of possible directions for future research.
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