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Open Access
Article
Publication date: 18 October 2022

Tingting Huang, Yilin Pan, Kai Zhu and Xinyuan Chen

This paper aims to study the impact of human resource heterogeneity on firms’ cash-holding policies.

Abstract

Purpose

This paper aims to study the impact of human resource heterogeneity on firms’ cash-holding policies.

Design/methodology/approach

The authors construct a proxy for human resource heterogeneity using the dissimilarity in employees’ skill structure between the firm and its peers in the same industry.

Findings

The authors report evidence that firms with heterogeneous human resources hold more cash than other firms. This effect is more pronounced in labor-intensive firms and firms more susceptible to hold-up by employees, i.e. firms located in regions with more labor disputes and firms surrounded by more external employment opportunities. In addition, the authors demonstrate that high cash holdings triggered by human resource heterogeneity reduce the scale and efficiency of firms’ capital investment.

Originality/value

Our study highlights the role of human resource heterogeneity in determining firms’ cash policies. This paper adds to the understanding of labor adjustment costs within the firm and provides insights into firms’ cash-holding decisions.

Details

China Accounting and Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 23 September 2022

Lidong Wu, Qingyun Wang and Kunkun Xue

Shareholder heterogeneity reflects the interactive relationship between shareholder groups of different industries and ownership types. This paper aims to discuss the…

Abstract

Purpose

Shareholder heterogeneity reflects the interactive relationship between shareholder groups of different industries and ownership types. This paper aims to discuss the impact of shareholder heterogeneity on ambidextrous corporate innovation.

Design/methodology/approach

Combining questionnaire and database data, this study empirically analyzes the internal mechanisms of the impact of shareholder heterogeneity on ambidextrous corporate innovation.

Findings

The authors find that shareholder heterogeneity can promote ambidextrous corporate innovation and that board’s decision-making processes play an intermediary role. Specifically, shareholder industry-type heterogeneity promotes ambidextrous corporate innovation by improving procedural rationality in board’s decision-making process, and shareholder ownership-type heterogeneity promotes ambidextrous corporate innovation by improving political behavior in board’s decision-making process. The analysis of the impact degree shows that shareholder industry-type heterogeneity has a greater impact on exploitation innovation, while shareholder ownership-type heterogeneity has a greater impact on exploratory innovation. In addition, the research also shows that shareholder groups dominated by industry-type heterogeneity have an impact on corporate innovation by shaping an engaged board with higher procedural rationality and lower political behavior. Shareholder groups dominated by ownership-type heterogeneity have an impact on corporate innovation by shaping a contested board with higher political behavior and lower procedural rationality.

Originality/value

This study not only enriches the research on shareholder heterogeneity and corporate innovation in the context of transformation but also provides an analytical framework for research on board’s decision-making process.

Details

Nankai Business Review International, vol. 13 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 16 August 2022

Abebayehu Girma Geffersa

The purpose of this paper is to measure technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from actual…

Abstract

Purpose

The purpose of this paper is to measure technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from actual inefficiency using comprehensive household-level panel data.

Design/methodology/approach

This paper estimates technical efficiency based on the true random-effects stochastic production frontier estimator with a Mundlak adjustment. By utilising comprehensive panel data with 4,694 observations from 39 districts of four major maize-producing regions in Ethiopia, the author measures technical efficiency and examine its determinants while disentangling unobserved time-invariant heterogeneity from technical inefficiency. By using competing stochastic production frontier estimators, the author provides insights into the influence of farm heterogeneity on measuring farm efficiency and the subsequent impact on the ranking of farmers based on their efficiency scores.

Findings

The study results indicate that ignoring unobservable farmer heterogeneity leads to a downwards bias of technical efficiency estimates with a consequent effect on the ranking of farmers based on their efficiency scores. The mean technical efficiency score implied that about a 34% increase in maize productivity can be achieved with the current input use and technology in Ethiopia. The key determinants of the technical inefficiency of maize farmers are the age, gender and formal education level of the household head, household size, income, livestock ownership, and participation in off-farm activities.

Research limitations/implications

While the findings of this study are critical for informing policy on improving agricultural production and productivity, a few important things are worth considering in terms of the generalisability of the findings. First, the study relied on secondary data, so only a snapshot of environmental factors was accounted for in the empirical estimations. Second, there could be other sources of unmeasured potential sources of heterogeneity caused by persistent technical inefficiency and endogeneity of inputs. Third, the study is limited to one country. Therefore, future research should extend the analysis to ensure the generalisability of the empirical findings regarding the extent to which unmeasured potential sources of heterogeneity caused by persistent technical inefficiency, endogeneity of inputs and other unobservable country-specific features – such as geographical differences.

Originality/value

This paper contributes to the literature on agricultural productivity and efficiency by providing new evidence on the influence of unobservable heterogeneity in a farm efficiency analysis. While agricultural production is characterised by heterogeneous production conditions, the influence of unobservable farm heterogeneity has generally been ignored in technical efficiency estimations, particularly in the context of smallholder farming. The value of this paper comes from disentailing producer-specific random heterogeneity from the actual inefficiency.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Book part
Publication date: 10 December 2018

Florian Englmaier, Nicolai J. Foss, Thorbjørn Knudsen and Tobias Kretschmer

The authors argue that organization design needs to play a more active role in the explanation of differential performance and outline a set of ideas for achieving this…

Abstract

The authors argue that organization design needs to play a more active role in the explanation of differential performance and outline a set of ideas for achieving this both in theoretical and empirical research. Firms are heterogeneous in terms of (1) how well they do things, capturing persistent productivity differences, and (2) how they do things – and both reflect firms’ organization design choices. Both types of heterogeneity can be persistent, and are interdependent, although they have typically been studied separately. The authors propose a simple formal framework – the “aggregation function framework” – that aligns organization design thinking with the emphasis on performance heterogeneity among firms that is characteristic of the strategy field. This framework allows for a more precise identification of how exactly organization design may contribute to persistent performance differences, and therefore what exactly are the assumptions that strategy and organization design scholars need to be attentive to.

Book part
Publication date: 26 August 2015

Eirini Andriopoulou and Panos Tsakloglou

The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and…

Abstract

The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved heterogeneity in 14 European countries for the period 1994–2001, using the European Community Household Panel. The distinction between true state dependence and individual heterogeneity has important policy implications, since if the former is the main cause of poverty it may be crucial to break the ‘vicious circle’ of poverty using income-supporting social policies, whereas if it is the latter anti-poverty policies should focus primarily on education, training, development of personal skills and other labour market oriented policies. The empirical results are similar in qualitative terms but rather different in quantitative terms across the EU countries covered in the paper. State dependence remains significant in all model specifications, even after controlling for unobserved heterogeneity or when removing possible endogeneity bias. Higher poverty rates and higher poverty persistence are associated with particular welfare state regimes, although the link is substantially weakened when other explanatory variables are included in the analysis.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

Keywords

Article
Publication date: 24 January 2022

Ning Shen and Zhiyi Zhuo

Based on upper echelons (UE) theory, the purpose of this study is to investigate a conceptualized moderated mediation model for examining the effects of top management…

Abstract

Purpose

Based on upper echelons (UE) theory, the purpose of this study is to investigate a conceptualized moderated mediation model for examining the effects of top management team (TMT) heterogeneity and firm value in China through the mediating effect of product diversification, the moderating effect of ownership type between TMT heterogeneity and product diversification and the moderating effect of executive shareholding between product diversification and firm value.

Design/methodology/approach

Unbalanced panel data were collected over 5 years with a total of 6,597 observations, organized through the WIND (Wind Economic Database) and CSMAR (China Stock Market and Accounting Research) Database. The hypotheses were tested using structural equation modeling and analyzed with stata15.0 software.

Findings

The results indicated that product diversification plays a mediating role between TMT heterogeneity and firm value. In China, TMT heterogeneity of non–state-owned enterprises plays a more significant role in promoting product diversification than that of state-owned enterprises; executive shareholding strengthens the relationship between product diversification and firm value.

Research limitations/implications

The characteristic dimension of TMT is seen as a relatively static factor, and it is worth looking at whether a more dynamic system of evaluation and measurement can be established.

Originality/value

This study enriches theoretical research on TMT and contributes to UE theory in several ways. First, we studied the mediation effect of product diversification between TMT heterogeneity and firm value. This extends research on UE theory to possible process variables. Second, considering the influence of the unique institutional environment in China on corporate strategic decisions, the study investigates state-owned and non–state-owned enterprises. Specifically, it looks at the influence of ownership type as a moderating variable between TMT heterogeneity and product diversification. Third, the paper discusses the moderating effect of executive shareholding on the product diversification–firm value relationship. The research contributes to agency theory and expands research on different economic systems by implementing agency theory.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 4 October 2021

Mohammad Hassan Shakil and Nor Shaipah Abdul Wahab

This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed…

Abstract

Purpose

This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk.

Design/methodology/approach

This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations.

Findings

This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk.

Practical implications

This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks.

Originality/value

Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

Details

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

Keywords

Article
Publication date: 27 August 2021

Zhipeng Zhang, Li Zhu, Gong Chen, Lu Shang, Qiuyun Zhao and Feng Ren

Existing studies mostly rely on the static characteristics of team members, and there is still a lack of empirical investigation on how entrepreneurial team members make…

Abstract

Purpose

Existing studies mostly rely on the static characteristics of team members, and there is still a lack of empirical investigation on how entrepreneurial team members make decisions through dynamic team process and how team members’ cognition influences team decision-making. The purpose of this study is to validate how entrepreneurial team heterogeneity affects team decision-making performance from the perspective of dynamic team process.

Design/methodology/approach

Drawing on the theory of input-process-output model, this study proposed and examined the mediating role of team interaction as well as the moderating role of proactive socialization tactics in the relationship between entrepreneurial team heterogeneity and decision-making performance. Based on a sample of 162 entrepreneurial teams that include pairing superiors and subordinates, hierarchical regressions and moderated mediation tests were used to test the hypotheses.

Findings

The research results show that the heterogeneity of entrepreneurial teams is positively correlated with both team interaction and decision-making performance. Team interaction plays a mediating role between entrepreneurial team heterogeneity and decision-making performance; information seeking of proactive socialization tactics moderates the impact of entrepreneurial team heterogeneity on team interaction.

Originality/value

Contributing to the literature on entrepreneurial team decision-making performance, this study identifies that proactive socialization tactics with a high level of information seeking can help entrepreneurial team members respond to environmental and organizational changes more effectively during team development and increase the effectiveness of team interaction. This finding helps us better understand the mechanism and context under which entrepreneurial heterogeneity may enhance the team’s decision-making performance.

Details

Chinese Management Studies, vol. 16 no. 5
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 29 March 2021

Porismita Borah

The current study has three main purposes: (1) replicate results from prior framing effects studies on social media. To do so, the study examines the influence of news…

Abstract

Purpose

The current study has three main purposes: (1) replicate results from prior framing effects studies on social media. To do so, the study examines the influence of news frames (free speech vs. public order) on participants' attitudes toward an alt-right rally (2) expand prior research by examining the emotional reaction of participants to these frames and (3) probe the moderating effects of face-to-face heterogenous talk and heterogenous social media feeds.

Design/methodology/approach

Drawing from theoretical concepts such as competitive framing, emotions and heterogeneity, the study uses a randomized online experiment. The study examines a conversation in a Twitter thread that includes both free speech and public order frames in the comments to the thread. The total number of participants was 275.

Findings

The results show that free speech versus public order frame did not impact attitudes of the participants toward the alt-right rally. Findings also show the significant main effects of free speech and public order frames and the interaction of exposure to heterogeneity on emotional reactions of outrage and anger toward the alt-right rally. These findings suggest that framing research needs to take social media features into consideration for a complete picture of framing effects on social media.

Originality/value

Using a classic framing effects experiment, the study includes variables relevant to social media discussions on Twitter and examined the moderating effects of heterogeneity on emotional reactions. In addition, one of the important methodological contributions of the current study are the framing manipulations for an externally valid experimental design.

Details

Online Information Review, vol. 45 no. 6
Type: Research Article
ISSN: 1468-4527

Keywords

Article
Publication date: 28 October 2022

Yonghwan Kim and Hsuan-Ting Chen

The purpose of this study is to examine the knowledge gap hypothesis in the context of smartphone use for news to understand whether mobile news consumption could bridge…

Abstract

Purpose

The purpose of this study is to examine the knowledge gap hypothesis in the context of smartphone use for news to understand whether mobile news consumption could bridge or widen the knowledge gap between people of higher and lower socioeconomic status (SES).

Design/methodology/approach

The authors examine how smartphone news consumption is associated with the knowledge gap hypothesis by analyzing a survey dataset from Hong Kong. This study focuses specifically on a moderated mediation model in which the indirect effect of mobile news consumption on political knowledge via discussion network heterogeneity is contingent on level of education.

Findings

Smartphone use for news/information was positively associated with level of discussion network heterogeneity. The indirect effect of smartphone news use on political knowledge via discussion network heterogeneity was stronger for those with lower levels of education.

Originality/value

This study advances the understanding of the role of smartphone use in contributing to the functioning of deliberative democracy as this use enhances discussion network heterogeneity and general levels of political knowledge. Moreover, our study contributes to the literature on the knowledge gap by not only examining the relationship between smartphone use, discussion heterogeneity, and political knowledge but also taking into consideration individual levels of education.

Details

Information Technology & People, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-3845

Keywords

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