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Book part
Publication date: 25 June 2016

Uchenna Efobi, Belmondo Tanankem Voufo, Ibukun Beecroft and Peace Okougbo

This chapter intends to examine the relationship between government incentives and the mode of firms’ finance of their operation in Nigeria. Specifically, it does relate…

Abstract

Purpose

This chapter intends to examine the relationship between government incentives and the mode of firms’ finance of their operation in Nigeria. Specifically, it does relate the solvency of the firm with the quality of their financing decisions and observed if government incentives such as creation of export processing zones and industrial parks will affect the firm’s decision of depending on external versus internal financing.

Methodology/approach

The results presented in this chapter are based on analysis of a firm-level data taken from the 2014 firm-level survey of the World Bank’s Enterprise Survey project for Nigeria. Different estimation techniques are applied for robustness and sensitivity. They include both the parametric and non-parametric regression approach.

Findings

The robust estimations show that firms that benefit from the government incentives tend to use more of internal funding to finance their operation unlike firms that are non-beneficiaries. In addition smaller firms are going to benefit more from the incentives than older firms, and less profitable firms are also going to use more of internal financing if they benefit from government incentives.

Practical implications

This chapter will be helpful for both research and teaching for undergraduate and post-graduate students. Importantly, its analysis and result will be useful for policy makers and their allies.

Originality/value

This chapter discusses solvency issues by considering the financing decision of firms, which is an important aspect in the going concern of firms.

Details

Dead Firms: Causes and Effects of Cross-border Corporate Insolvency
Type: Book
ISBN: 978-1-78635-313-9

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Article
Publication date: 10 May 2011

Robert J. Dijkstra and Michael G. Faure

The purpose of this paper is to understand the incentive effects of existing compensation mechanisms in case of the bankruptcy of a financial institution.

Abstract

Purpose

The purpose of this paper is to understand the incentive effects of existing compensation mechanisms in case of the bankruptcy of a financial institution.

Design/methodology/approach

The paper uses insights of law and economics to predict the effects of compensation mechanisms on the incentives of depositors, financial institutions, financial regulators and government.

Findings

The paper shows that the current compensation system in The Netherlands will not provide sufficient incentives for all stakeholders to prevent the failure of a financial institution. Adjustments to this system are necessary to improve these incentives.

Original/value

The paper examines for the first time the impact of different compensation mechanisms on the incentives of multiple stakeholders. It also shows how these mechanisms influence each other regarding their incentive generating capability. These findings offer important insights for policy makers.

Details

Journal of Financial Regulation and Compliance, vol. 19 no. 2
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 30 September 2010

Kimberly S. Goetz

This conceptual paper aims to present a new framework for the use of incentives when encouraging small businesses to adopt more sustainable business practices. It seeks to…

Abstract

Purpose

This conceptual paper aims to present a new framework for the use of incentives when encouraging small businesses to adopt more sustainable business practices. It seeks to identify and categorize various types of incentives.

Design/methodology/approach

The incentives framework was designed as a practical tool for use during the development of a small business sustainability program. Although conceptual in nature, the framework is based on research conducted by the Washington State (USA) Department of Ecology that used, in part, a modified grounded theory approach.

Findings

In addition to identifying and categorizing potential incentives, the paper presents an overview of mainstream thought on incentives and argues that incentives and disincentives are significantly different concepts. The paper identifies seven potential barriers to implementing incentives and summarizes potential solutions to those barriers. It also explains how incentives can be used to encourage sustainable behavior and corporate social responsibility reporting.

Practical implications

The framework presented is intended to assist practitioners develop and structure incentive programs. It is also intended to provide guidance to practitioners regarding the current mainstream paradigm on incentives and recommends changes to that paradigm.

Originality/value

The framework presented is entirely original. No similar framework appears to currently exist.

Details

Management Research Review, vol. 33 no. 11
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 1 March 2004

Donijo Robbins

Competition for private investment, it has been argued, is often the fiercest between neighboring cities or cities within the same region. One result of maintaining a…

Abstract

Competition for private investment, it has been argued, is often the fiercest between neighboring cities or cities within the same region. One result of maintaining a competitive edge (stimulating private investment) over other localities, is that local public officials rely on tax and non-tax incentive packages. If this is true, it seems that municipal public officials in New Jersey would perceive this competition and offer incentive packages given their location near major cities like Boston, New York, Philadelphia, and Washington, DC. This article explores the perceptions of local public officials in New Jersey about competition and the impact of tax and non-tax incentives in the context of population, unemployment, income, geographic location, and government structure.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 16 no. 3
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 19 October 2020

Jiangchi Zhang, Chaowu Xie, Alastair M. Morrison and Qinqin Yang

This research divided expectations into three timeframes based on expectancy theory – short-, medium- and long-term. The incentive-motivation structures of government

Abstract

Purpose

This research divided expectations into three timeframes based on expectancy theory – short-, medium- and long-term. The incentive-motivation structures of government tourism officers were identified by these timeframes and the effects of incentives on job engagement, performance and satisfaction were investigated.

Design/methodology/approach

A survey was conducted in 31 provinces of China, and a total of 650 responses were used for data analysis after removing invalid surveys. The statistical analysis techniques adopted were confirmatory factor analysis, correlation analysis and structural equation modeling.

Findings

The results showed that: realistic motivations, career prospects and “macro-vision” were the motivational factors of tourism officers in the short-, medium- and long-term, respectively; incentives positively predicted tourism officer job engagement, performance and satisfaction; and job engagement and performance mediated the influence of incentives on job satisfaction.

Research limitations/implications

The main limitation was that the respondents were from 31 provinces in China, and there may be regional and local differences due to the unique and complex geographic and social conditions, as well as dissimilar economic development levels and administrative systems.

Practical implications

Public sector tourism departments must recognize tourism officer needs and motivations in the short-, medium- and long-term and develop tailored incentive programs.

Originality/value

Based on expectancy theory across different timeframes, this research identified the incentive-motivation structure and its effect on Chinese destination management organization officers and potentially provides a theoretical basis for the optimization of this administrative incentive system.

目的

基于期望理论, 本研究将期望区分成短期、中期和长期三个时间尺度。据此, 本研究识别了政府旅游官员的激励需求和和动力结构, 并验证其对旅游官员工作投入、工作绩效和工作满意度的影响。

设计/方法学/方法

本研究面向中国31个省市自治区展开问卷调查。在剔除无效问卷后, 总共搜集650份有效问卷进行数据分析。本研究采用了验证性因子分析、相关分析和结构方程模型等数据分析技术。

发现

研究结果发现:(1)现实激励、职业前景和宏观愿景是目的地政府官员在短期、中期和长期等不同期望结构层次的动力因素; (2)这些动力因素正向影响旅游官员工作投入、工作绩效和工作满意度; (3)工作投入和工作绩效中介了上述激励因素对工作满意度的影响。

研究局限/启示

本研究的主要研究局限在于问卷数据覆盖中国31个省市自治区, 但中国具有复杂的国情, 地区经济发展水平、行政管理体制也不尽相同, 因此基于特定地区的具体分析可能得出具有差异性的研究结论。

实践启示

目的地政府部门应当客观认知到旅游官员在短期、中长期和长期三个期望层次的激励需求, 并针对性地设计和提供激励方案。

原创性/价值

本研究首次基于期望理论识别了不同时间尺度下目的地政府部门旅游官员的动力结构及其效应, 为优化中国目的地政府旅游官员激励体系提供了理论基础和实证证据。

Purpose

En base de la teoría de las expectativas, esta estudio divide las expectativas en tres escalas de tiempo: plazo corto, plazo mediano y plazo largo. Con base en esto, este estudio identifica las necesidades de incentivos y la estructura motivacional de los funcionarios de turismo del gobierno, y verifica su impacto en la contribución, el desempeño y la satisfacción laboral de los funcionarios de turismo.

Design/methodology/approach

Este estudio realiz una encuesta por cuestionario para 31 provincias de China. Después de excluir los cuestionarios no válidos, se recopilan un total de 650 cuestionarios válidos para el análisis de datos. Este estudio utiliza técnicas de análisis de datos como el análisis factorial confirmatorio, el análisis de correlación y el modelado de ecuaciones estructurales.

Findings

Los resultados mostraron que: (1) Los incentivos realistas, las perspectivas de carrera y las visiones macro son los factores impulsores de los funcionarios del gobierno de destino en diferentes niveles de expectativa a plazo corto, mediano y largo; (2) Estos los factores impulsores están afectando positivamente el aporte de trabajo, el desempeño laboral y la satisfacción laboral de los funcionarios de turismo; y (3) Los aportes laborales y el rendimiento laboral median la influencia de los factores impulsores anteriores en la satisfacción laboral.

Research limitations/implications

La muestra de este estudio cubre 31 provincias, municipios y regiones autónomas en China, pero China tiene condiciones nacionales complejas, los niveles de desarrollo económico regional y los sistemas administrativos son diferentes. Por lo tanto, los análisis basados en regiones específicas pueden lograr diferentes conclusiones de estudio.

Practical implications

El departamento gubernamental del destino debe reconocer objetivamente las necesidades de incentivos de los funcionarios de turismo en los tres niveles esperados a plazo corto, plazo mediano y largo y plazo largo, y diseñar y proporcionar programas de incentivos de manera específica.

Originality/value

este estudio identifica la estructura dinámica y los efectos de los funcionarios de turismo en los departamentos gubernamentales de destino en diferentes escalas de tiempo basando en la teoría de las expectativas por primera vez, y proporciona una base teórica y evidencia empírica para optimizar el sistema de incentivos de los funcionarios de turismo del gobierno de destino en China.

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Article
Publication date: 3 August 2012

Benhai Guo, Rongrong Zhang and Chaoqing Yuan

This paper attempts to study the impact of changing incentive strategies on enterprises' energy saving effort level and to construct an effective principal‐agent mechanism…

Abstract

Purpose

This paper attempts to study the impact of changing incentive strategies on enterprises' energy saving effort level and to construct an effective principal‐agent mechanism to achieve Pareto improvement of energy‐saving control.

Design/methodology/approach

Starting from the benefit relations between government and enterprises as well as their game strategies in energy conservation management, the impact of changing incentive strategies on enterprises' energy saving effort level and the asymmetric information situation of the players are studied taking into consideration the angle of strategies evolving in local government. Also, an effective principal‐agent mechanism to achieve Pareto improvement of energy‐saving control is constructed.

Findings

The results are convincing: interests of both the principal and agent had consistency under the principal‐agent mechanism, and the principal‐agent model was a mechanism with rich efficiency that could substantially arouse the enthusiasm of enterprises in energy saving. The comprehensive supervision of local governments over enterprises could effectually eliminate ill effects on energy‐saving management caused by information asymmetry under certain circumstances.

Practical implications

It is good for locating the balance of interest of game players by building a government energy saving mechanism based on principal‐agent theory. Through solving a game stable strategy, it is beneficial to seize a key point of regulation and control policies.

Originality/value

The paper succeeds in analyzing decision behaviours of government and enterprises through the basic idea of cooperative game theory so as to make actions of enterprises at all levels agree to government determined solving of energy issues.

Details

Kybernetes, vol. 41 no. 7/8
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 1 March 1994

George D. Sanders and Robert W. Ingram

Two competing hypotheses have been developed in the public economics literature to explain the growth of government spending. The first, termed the fiscal illusion…

Abstract

Two competing hypotheses have been developed in the public economics literature to explain the growth of government spending. The first, termed the fiscal illusion hypothesis, holds that governments have incentives to induce a misperception in the population about the cost of government. By constructing complex systems of taxation that obscure the true cost of government services, governments can lead the taxpayer to demand a larger quantity of services. The other hypothesis, the fiscal stress hypothesis, holds that tax complexity diversifies revenues, leading to less revenue variability and, hence, lower costs. Taxpayers, then, demand more government services. The two hypotheses make very different assumptions about the incentives of governments in regard to an informed electorate. The fiscal illusion hypothesis suggests incentives to obscure information, while the fiscal stress hypothesis suggests incentives to reveal true costs.

Accounting and financial reporting can play a role in revealing fiscal information to taxpayers, directly or indirectly, through information intermediaries. If the fiscal illusion hypothesis describes the behavior of governments, we would expect that such governments would attempt to protect the information advantage that is conveyed by a complex tax structure by minimizing accounting disclosures. On the other hand, the fiscal illusion hypothesis suggests that a government with a complex tax structure has no reason to minimize disclosure, and may have incentives publicize lower service costs.

This study examines the association of tax complexity and financial disclosure. We find that there is more disclosure in cities with more complex tax systems, a result that supports the fiscal stress hypothesis.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 6 no. 4
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 8 January 2018

Nutcharee Pakdeechoho and Vatcharapol Sukhotu

The purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between sustainable supply chain collaboration (SSCC) and sustainability performance, and examine whether two types of incentives moderate this relationship. This empirical investigation of the Thai food manufacturing industry provides insight in the context of an emerging economy.

Design/methodology/approach

Survey data were collected from 215 food manufacturing firms in Thailand, and the hypotheses were tested by exploratory factor analysis, hierarchical regression analysis, and cluster analysis.

Findings

The results indicate that SSCC leads to better economic and social performance, but not necessarily better environmental performance; incentives provided by firms in the supply chain enhance the effects of SSCC on social performance.

Practical implications

The findings provide useful suggestions for supply chain managers and policy makers about effective collaboration and the use of incentives to improve the sustainability of individual firms in the supply chain. They also reveal the challenges faced by manufacturing firms in improving environmental performance in an emerging economy.

Originality/value

This study contributes to the literature on the implementation of sustainable supply chain management by explaining the role of incentives.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 2
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 2 April 2015

Yudi Fernando, Hooi Huang Ng and Tim Walters

The purpose of this paper is to investigate the contribution of regulatory incentives offered by regulators as a moderator variable enhancing adoption of Malaysian food…

Abstract

Purpose

The purpose of this paper is to investigate the contribution of regulatory incentives offered by regulators as a moderator variable enhancing adoption of Malaysian food safety system (MeSTI).

Design/methodology/approach

Structural equation modelling (SEM) with partial least square (PLS) was used to examine the determinants of MeSTI adoption in food industry.

Findings

Responses to a questionnaire were collected from 89 firms, and statistical results confirmed that organizational factors (top management support and perceived technical competent) and scheme factors (perceived usefulness and perceived ease of use) have significant influence upon MeSTI adoption. While environment factors (perceived industry pressure and perceived government pressure) and expected factors (expected social legitimacy and expected economic competitiveness) did not have significant impact on MeSTI adoption. Regulatory incentives the government offered had no moderating effect on the relationships of the determinants studied.

Practical implications

Although many companies remain unfamiliar or have limited knowledge of MeSTI, the respondents surveyed herein, which were small and medium enterprises (SMEs), argued that MeSTI was very helpful in controlling food safety standards in Malaysia. Government or non-government regulatory agencies should promote and encourage food industry compliance with the Malaysian food safety certification. Governments also need to rethink and redesign current regulatory incentives offers to the food industry, which often have no direct impact on the companies’ business.

Originality/value

Though many factors potentially could influence the industry to adopt a food safety scheme, the moderating effect of regulatory incentives is an interesting area to study in relationship to its potential effects to adopt food safety standards and practices. In some extent, this serves as a yardstick for measuring the impact of voluntary compliance and points to future directions for what should occur in the future.

Details

British Food Journal, vol. 117 no. 4
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 27 March 2020

Ria Christine Siagian, Anhari Achadi, Hasbullah Thabrany, Dumilah Ayuningtyas, Prastuti Soewondo, Sutanto Priyo Hastono, Purnawan Junadi, Novilia Sjafri Bachtiar and Tepy Usia

The pharmaceutical industry in Indonesia appears hesitant to make the transition from inventor to innovator and instead continues with the process of formulation and…

Abstract

Purpose

The pharmaceutical industry in Indonesia appears hesitant to make the transition from inventor to innovator and instead continues with the process of formulation and packaging. Evidence-based policy has been advocated for Indonesia and, in general, this is more likely to hold. This study aims to establish a model for a policy-making process that is strategically able to predict strategies that would encourage drug development in Indonesia.

Design/methodology/approach

A quantitative approach with the survey method was designed to obtain appropriate data from a population of pharmaceutical industries in Indonesia and relevant government institutions to assess the relationship of various factors capable of triggering domestic drug development, including pharma capability, political feasibility and innovation incentives. The construct was validated using a set of techniques pertaining to the calculation of structural equation modeling.

Findings

The model demonstrates how it matters when applied to the policy-making process. It proves that pharma capability, political feasibility, and innovation incentives correlated to pharma capability are major catalysts in the promotion of drug development. These are largely explained by market opportunity, pull factors, government power, and position. Although all of the elements were moderately to strongly related to the promotion of drug development, this study has revealed the predictive impact on drug development in Indonesia to be only 46%.

Originality/value

This study adds values to policy-makers as it attempts to predict strategies that would encourage a successful policy when being implemented. Encompassing both pharma industries and government institutions, this study captures a real situation and provides an empirical contribution to the concept of the integrated research of drug development in developing countries.

Details

International Journal of Health Governance, vol. 25 no. 2
Type: Research Article
ISSN: 2059-4631

Keywords

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