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Book part
Publication date: 4 October 2018

Korbkul Jantarakolica and Tatre Jantarakolica

The rapid change of technology has significantly affected the financial markets in Thailand. In order to enhance the market efficiency and liquidity, the Stock Exchange of…

Abstract

The rapid change of technology has significantly affected the financial markets in Thailand. In order to enhance the market efficiency and liquidity, the Stock Exchange of Thailand (SET) has granted Thai stock brokers permission to develop and offer their customers algorithm and automatic stock trading. However, algorithm trading on SET was not widely adopted. This chapter intends to design and empirically estimate a model in explaining Thai investors’ acceptance of algorithm trading. The theoretical framework is based on the theory of reasoned action and technology acceptance model (TAM). A sample of 400 investors who have used online stock trading and 300 investors who have used algorithm stock trading were observed and analyzed using structural equations model (SEM) and generalized linear regression model (GLM) with a Logit specification. The results confirm that attitudes, subjective norm, perceived risks, and trust toward algorithm stock trading are factors determining investors’ behavior and acceptance of using algorithm stock trading. Investor’s perception and trust on algorithm stock trading as a trading strategy is a major factor in determining their perceived behavior and control, which affect their decision on whether to invest using algorithm trading. Accordingly, it can be concluded that Thai investors is willing to accept algorithm trading as a new financial technology, but still has concern about the reliability and profitable of this new stock trading strategy. Therefore, algorithm trading can be promoted by building investors’ trust on algorithm trading as a reliable and profitable trading strategy.

Details

Banking and Finance Issues in Emerging Markets
Type: Book
ISBN: 978-1-78756-453-4

Keywords

Content available
Book part
Publication date: 4 October 2018

Abstract

Details

Banking and Finance Issues in Emerging Markets
Type: Book
ISBN: 978-1-78756-453-4

Content available
Article
Publication date: 28 October 2013

Graeme D. Hutcheson

432

Abstract

Details

Journal of Modelling in Management, vol. 8 no. 3
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 28 December 2021

Ben Le and Paula Hearn Moore

This study aims to examine the effects of audit quality on earnings management and cost of equity capital (COE) considering the impact of two owner types: government ownership and…

1157

Abstract

Purpose

This study aims to examine the effects of audit quality on earnings management and cost of equity capital (COE) considering the impact of two owner types: government ownership and foreign ownership.

Design/methodology/approach

The study uses a panel data set of 236 Vietnamese firms covering the period 2007 to 2017. Because the two main dependent variables of the COE capital and the absolute value of discretionary accruals receive fractional values between zero and one, the paper uses the generalised linear model (GLM) with a logit link and the binomial family in regression analyses. The paper uses numerous audit quality measures, including hiring Big 4 auditors or the industry-leading Big 4 auditor, changing from non-Big 4 auditors to Big 4 auditors or the industry-leading Big 4 auditor, and the length of Big 4 auditor tenure. Big 4 companies include KPMG, Deloitte, EY and PwC, whereas the non-big 4 are the other audit companies.

Findings

The study finds a negative relationship between audit quality and both the COE capital and income-increasing discretionary accruals. The effects of audit quality on discretionary accruals and the COE capital depend on the ownership levels of two important shareholders: the government and foreign investors. Foreign ownership is negatively associated with discretionary accruals; however, the effect is more pronounced in the sub-sample of state-owned enterprises (SOEs), the firms where the government owns 50% or more equity, than in the sub-sample of Non-SOEs.

Originality/value

To the best of the knowledge, no prior similar study exists that used the GLM with a logit link and the binomial family regression. Global investors may be interested in understanding how unique institutional settings and capital markets of each country impact the financial reporting quality and cost of capital. Further, policymakers of developing markets may have incentives to improve the quality of financial reporting and reduce the cost of capital which should result in attracting more foreign investments.

Details

Journal of Financial Reporting and Accounting, vol. 21 no. 3
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 2 June 2021

Mao-Feng Kao, Lynn Hodgkinson and Aziz Jaafar

Using a data set of Taiwanese listed firms from 2002 to 2015, this paper aims to examine the determinants to voluntarily appoint independent directors.

Abstract

Purpose

Using a data set of Taiwanese listed firms from 2002 to 2015, this paper aims to examine the determinants to voluntarily appoint independent directors.

Design/methodology/approach

This study uses panel estimation to exploit both the cross-section and time-series nature of the data. Further, this paper uses Tobit regression, generalized linear model (GLM) in the additional analysis and the two-stage least squares to mitigate for a possible endogeneity issue.

Findings

The main findings show that Taiwanese firms with large board sizes tend to voluntarily appoint independent directors and firms that already have independent supervisors more willingly to accept additional independent directors onto the board. Furthermore, ownership concentration and institutional ownership are positively associated with the voluntary appointment of independent directors. On the contrary, firms controlled by family members are generally reluctant to voluntarily appoint independent directors.

Research limitations/implications

The findings are important for managers, shareholders, creditors and policymakers. In particular, when considering the determinants of the voluntary appointment of independent directors, the results indicate that independent supervisors, outside shareholders and institutional investors are significant factors in influencing effective internal and external corporate governance mechanisms. This research work focuses on the voluntary appointment of independent directors. It would be interesting to compare the effectiveness of voluntary appointments with a mandatory appointment within Taiwan and with other jurisdictions.

Originality/value

This study incrementally contributes to the corporate governance literature in several ways. First, this study extends the earlier research by using a more comprehensive data set of non-financial Taiwanese firms and using alternative methodologies to investigate the determinants of voluntary appointment of independent directors. Second, prior studies tend to neglect the possible issue of using a censored and fractional dependent variable, the proportion of independent directors, which might yield biased and inconsistent parameter estimates when using ordinary least squares regression estimation. Finally, this study addresses the relevant econometric issues by using the Tobit, GLM and the two-stage least squares for a possible endogeneity concern.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 7
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 17 June 2022

Sudip Adhikari and Aditya R. Khanal

The purpose of this paper is to present theoretical synopsis of risk balancing hypothesis (RBH) and estimate empirical models examining debt, savings and debt-to-equity use

Abstract

Purpose

The purpose of this paper is to present theoretical synopsis of risk balancing hypothesis (RBH) and estimate empirical models examining debt, savings and debt-to-equity use decisions of small US farms.

Design/methodology/approach

The authors use primary survey data from Tennessee and generalized linear models (GLMs).

Findings

The study’s findings suggest that the perceived higher business risk (BR) significantly increases the extent of debt use, savings use and debt-to-equity of small farmers. Moreover, results indicate that factors such as age and education of the operator, family involvement, incomes, land acreage, adoption of alternative on-farm enterprises and farmers' continuation plan significantly influence the financing decisions of small farm operations.

Originality/value

The authors investigated an essential empirical question examining the risk balancing behavior of small US farm operations. While risk balancing has been a theme of several studies, none of the previous studies have specifically looked at the behavior in the context of small US farms. The theoretical synopsis and empirical findings contribute to the literature of risk balancing, debt use and savings use decisions and the policy discussions on farm financial and support strategies.

Details

Agricultural Finance Review, vol. 83 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Book part
Publication date: 14 August 2015

Jyoti Rai and Jean Kimmel

Do women exhibit greater financial risk aversion than men? We answer this question using attitudinal and behavioral specifications of risk aversion drawn from the 2010 Survey of…

Abstract

Do women exhibit greater financial risk aversion than men? We answer this question using attitudinal and behavioral specifications of risk aversion drawn from the 2010 Survey of Consumer Finances (SCF). To approximate attitudinal specification of risk aversion, we use individuals’ self-reported financial risk tolerance. We use individuals’ relative risk aversion, that is, the effect of wealth on the proportion of assets categorized as risky as behavioral specification of risk aversion. We find that while women display greater attitudinal risk aversion, gender difference in behavioral risk aversion depends upon individuals’ marital status and role in household finances. Single women exhibit greater behavioral risk aversion compared to single men. However, this gender difference does not exist when we compare behavioral risk aversion of married women and men in charge of household finances.

Book part
Publication date: 31 July 2014

David S. DeGeest and Ernest H. O’Boyle

To review and address current approaches and limitations to modeling change over time in social entrepreneurship research.

Abstract

Purpose

To review and address current approaches and limitations to modeling change over time in social entrepreneurship research.

Methodology

The article provides a narrative review of different practices used to assess change over time. It also shows how different research questions require different methodologies for assessing changes over time. Finally, it presents worked examples for modeling these changes.

Findings

Our review suggests that there is a lack of research in social entrepreneurship that takes into account the many different considerations for addressing how time influences outcomes.

Originality/value

This chapter introduces an analytic technique to social entrepreneurship that effectively models changes in predictors and outcomes even when data are non-normal or nested across time or levels of analysis.

Details

Social Entrepreneurship and Research Methods
Type: Book
ISBN: 978-1-78441-141-1

Keywords

Content available
Article
Publication date: 26 October 2012

511

Abstract

Details

Journal of Modelling in Management, vol. 7 no. 3
Type: Research Article
ISSN: 1746-5664

Article
Publication date: 24 August 2020

Youngkeun Choi and Jae Won Choi

Job involvement can be linked with important work outcomes. One way for organizations to increase job involvement is to use machine learning technology to predict employees’ job…

Abstract

Purpose

Job involvement can be linked with important work outcomes. One way for organizations to increase job involvement is to use machine learning technology to predict employees’ job involvement, so that their leaders of human resource (HR) management can take proactive measures or plan succession for preservation. This paper aims to develop a reliable job involvement prediction model using machine learning technique.

Design/methodology/approach

This study used the data set, which is available at International Business Machines (IBM) Watson Analytics in IBM community and applied a generalized linear model (GLM) including linear regression and binomial classification. This study essentially had two primary approaches. First, this paper intends to understand the role of variables in job involvement prediction modeling better. Second, the study seeks to evaluate the predictive performance of GLM including linear regression and binomial classification.

Findings

In these results, first, employees’ job involvement with a lot of individual factors can be predicted. Second, for each model, this model showed the outstanding predictive performance.

Practical implications

The pre-access and modeling methodology used in this paper can be viewed as a roadmap for the reader to follow the steps taken in this study and to apply procedures to identify the causes of many other HR management problems.

Originality/value

This paper is the first one to attempt to come up with the best-performing model for predicting job involvement based on a limited set of features including employees’ demographics using machine learning technique.

Details

International Journal of Organizational Analysis, vol. 29 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

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