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1 – 10 of over 4000
Article
Publication date: 1 March 2024

Yuxuan Chang and Xiaoyang Zhao

This paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in…

Abstract

Purpose

This paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in different regions.

Design/methodology/approach

We use the online interaction platforms of listed firms in China and utilize brokerage presence (BP) to capture the geographic distribution of financial factors. We explore whether online interactions would reduce the cost of equity to a greater extent for firms located in low brokerage presence regions (hereafter “low-BP firms”) than those in high brokerage presence regions (hereafter “high-BP firms”).

Findings

We find low-BP firms benefit more from an improved information environment created by online interactions. We also find that posts about low-BP firms are more value-relevant and useful in processing corporate disclosures. Further, a higher number of interactions significantly enhances more informational efficiency for low-BP firms, and the effect of reducing the gap in financing costs is more pronounced when corporate information is complex.

Originality/value

We conclude that online interactions alleviate geography-induced information frictions and create a relatively level playing field for firms located in all regions.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Open Access
Article
Publication date: 20 March 2023

Sarah Chehade and David Procházka

The paper aims to provide empirical evidence of the impact of IFRS adoption on the value relevance of accounting information in the emerging market of Saudi Arabia.

2085

Abstract

Purpose

The paper aims to provide empirical evidence of the impact of IFRS adoption on the value relevance of accounting information in the emerging market of Saudi Arabia.

Design/methodology/approach

The sample consists of 98 non-financial listed firms operating in Saudi Arabia from 2014 to 2019, representing the years before and after IFRS adoption. The authors apply basic and extended price models to examine the value relevance of select accounting figures.

Findings

The authors findings provide evidence that accounting information is, generally, value relevant to the Saudi Arabian capital market. However, mixed results exist for particular accounting variables. Both earnings and cash flows are value-relevant in the period before and after IFRS adoption; equity is only relevant in the post-adoption period. Furthermore, IFRS adoption also increases the explanatory power of earnings. An increase in the value relevance of earnings and equity hurts the value relevance of cash flows. The effects are moderated by leverage and dividend policy.

Originality/value

The authors contribute to the ongoing discussion of the economic effects of IFRS adoption in emerging markets. The empirical findings show that initial concerns about IFRS adoption, as reflected by the negative coefficient within the regression analysis, are mitigated once the usefulness of the individual accounting variables published in financial statements is investigated.

Details

Journal of Accounting in Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 15 August 2022

Ali Abdallah Alalwan, Abdullah M. Baabdullah, Joma Omran Mahfod, Paul Jones, Anshuman Sharma and Yogesh K. Dwivedi

The crowdfunding concept and activities have recently been the focus of attention of many researchers and practitioners over different business contexts. However, there is a…

Abstract

Purpose

The crowdfunding concept and activities have recently been the focus of attention of many researchers and practitioners over different business contexts. However, there is a dearth of literature considering the main aspects of e-equity crowdfunding activities and their impact on the innovation performance for entrepreneurial business. Therefore, this study aims to explore how entrepreneurs' engagement in e-crowdfunding activities could enhance both knowledge acquisition and innovation performance.

Design/methodology/approach

The conceptual model will be proposed based on three main theoretical perspectives: relationship marketing orientation (RMO); Kirzner's alertness theory; and the DeLone and McLean model of information systems. The data of the current study were collected using an online questionnaire from a sample of 500 entrepreneurs who have actively engaged in e-crowdfunding in Saudi Arabia.

Findings

The statistical results of structural equation modelling (SEM) approved the impacting role of RMO, entrepreneurial alertness, system quality and service quality on the entrepreneurs' engagement in e-equity crowdfunding, which in turn, predicts both knowledge acquisition and innovation performance.

Research limitations/implications

There are several limitations which could be addressed in future studies, for example, this study has only considered one form of crowdfunding (equity based crowdfunding) and due to its nature these findings would not be easily generalized to other kinds of crowdfunding (i.e. donation-based crowdfunding; rewards-based crowdfunding; and debt-based crowdfunding). Future studies could consider these kinds of crowdfunding activities.

Originality/value

This study has contributed to the understanding of e-equity crowdfunding in several aspects. For example, this study presents results that assist both researchers and practitioners in the Middle East and Saudi Arabia to develop an in-depth knowledge of e-equity crowdfunding by considering new dimensions such as RMO and information system success factors.

Details

European Journal of Innovation Management, vol. 27 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 11 August 2023

Yung-Chuan Huang

The purpose of this study has to conduct an integrated effective evaluation system to discover consumers' travel attitudes of the culinary experiences or cuisines and establishing…

Abstract

Purpose

The purpose of this study has to conduct an integrated effective evaluation system to discover consumers' travel attitudes of the culinary experiences or cuisines and establishing an optimal mutual relationship of a brand equity evaluation model.

Design/methodology/approach

Based on a sample of 624 participants, the results support that social media engagement has indirect effects on culinary brand equity development through travel attitudes and information sharing.

Findings

The study finds that values are expressed as foundational attributes that have indirect effects on brand equity through hedonic function, perceived quality, brand awareness and brand image. In contrast, the social interaction mechanism strengthens subdimensional relationships. These findings extend the customer brand equity literature and the nature of tourists' perspectives in the context of Taiwan's culinary destination brand equity.

Practical implications

It is a suggestion for tourism and hospitality managers to identify the different characteristics of attitudes towards visits and the customers' desert of participation in food-related activities when it derives to the classifications of food and culinary tourism.

Originality/value

The current study extended the findings and asserted that social interaction leads to and strengthens the relationships between memorable culinary hedonic experiences and perceived quality and improves tourists' positive awareness and image compared to other tourism experiences.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 2 March 2022

Yaokuang Li, Li Ling, Juan Wu, Daru Zhang and Weizhong Fu

This paper aims to investigate the role of informational and relational mechanisms on equity crowdfunding investors' conformity behaviors by focusing on a relational culture of…

Abstract

Purpose

This paper aims to investigate the role of informational and relational mechanisms on equity crowdfunding investors' conformity behaviors by focusing on a relational culture of China.

Design/methodology/approach

The data of 108 financing projects and 7,688 investment records from a union of Chinese equity crowdfunding platforms are gathered. Lead investors' response to a campaign and follow-investors’ former links explain investors' conformity by social network analysis (SNA) and ordinary least squares (OLS) analysis.

Findings

The results show that informational and relational influences drive conformity in Chinese equity crowdfunding. Moreover, the informational influence weakens in a highly centralized structure of linked investors.

Research limitations/implications

The results add new knowledge to follow-investors’ conformity behaviors in equity crowdfunding and enrich the literature on conformity theory by finding the contextual effect of information-influenced conformity and the adaption of conformity theory to cultural uniqueness. Besides, this preliminary work also suggests opportunities for future research.

Practical implications

The paper inspires new consideration on a strategical use of follow-investors’ conformity mentality to promote successfully financing and reminds platform managers to be alert to the interference of small groups formed based on informal relationships to the normal financing order.

Originality/value

This is the first study that discovers the non-informational influence and the limited influence of information on equity crowdfunding conformity through contextual concerns.

Details

International Journal of Emerging Markets, vol. 18 no. 11
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 20 December 2023

Ormonde Cragun, Jason Kautz and Lin Xiu

This study aims to explore how individual-level and organizational-level factors interact to influence pay information (PI) seeking and PI sharing preferences in PI conversations…

Abstract

Purpose

This study aims to explore how individual-level and organizational-level factors interact to influence pay information (PI) seeking and PI sharing preferences in PI conversations (i.e. the face-to-face communications context). The authors examine how an individual’s judgment of their pay relative to others – or pay equity perception – affects their PI seeking and PI sharing preferences and how those relationships are affected by organizationally created pay transparency policies and pay transparency practices.

Design/methodology/approach

Using a 2 × 2 × 2 experimental design on the MTurk platform, the authors used a scenario-based prompt method to manipulate employee perceptions of pay equity and organizational pay transparency and tested those effects on employee pay disclosure preferences. The authors consider both pay policy and pay practice dimensions of pay transparency and both PI seeking and PI sharing dimensions of pay disclosure preferences. The final sample had 597 participants.

Findings

The authors find employees’ pay equity perceptions are negatively related to PI seeking behaviors and are even more so when organizations have restrictive pay transparency policies. Also, both pay transparency policy and pay transparency practice increase PI sharing preferences.

Originality/value

The authors provide insight into how individual perceptions drive pay disclosure motivations and the role of organizational policy and practice in influencing pay disclosure preferences within PI conversations. The authors provide insight into the antecedents that shape pay disclosure preferences, which lead to a both PI conversations among coworkers and an increase in one’s pay understanding. This study shows the contextual nature of PI seeking and PI sharing preferences, which are a motivational antecedent to pay-related sensemaking behaviors.

Open Access
Article
Publication date: 30 January 2023

Pau Sendra-Pons, Alicia Mas-Tur and Dolores Garzon

This empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures.

1038

Abstract

Purpose

This empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures.

Design/methodology/approach

Qualitative comparative analysis (QCA) is applied to find the configurational patterns describing how anchor investors' information disclosure leads to successful financing and overfunding.

Findings

Even when the anchor investor's resume is not detailed or the anchor investor has little experience in entrepreneurial investment, success or overfunding can be achieved, provided the anchor investor is a corporation rather than an individual. For individual anchor investors, a detailed resume matters. Overfunding can be achieved even when an individual anchor investor makes a small relative investment, if this small relative investment is compensated for by a detailed resume. Experience in entrepreneurial investment is crucial when individual anchor investors have few previous investments. Regardless of the anchor investor's identity, investment in absolute terms is crucial for crowdfunding success when experience in entrepreneurial investment is low. Such experience must be extensive if the anchor investor's resume is not detailed.

Practical implications

Both entrepreneurs and crowdfunding platforms can benefit from the findings in relation to the design of campaigns that use anchor investors' informational cues to achieve success and overfunding.

Originality/value

The study examines the importance of anchor investors' information disclosure in digital crowdfunding environments, differentiating between individual and corporate anchor investors.

研究目的

本實證研究使用羊群行為模型, 去探究錨定投資者在確保眾籌活動可達成功籌資以及過多籌資方面所扮演的角色。

研究設計/方法/理念

研究人員以定性比較分析法、去找出描述錨定投資者的資訊公佈如何帶來成功融資和過多籌資的配置模式。

研究結果

研究結果顯示、只要錨定投資者不是個人、而是一間公司, 則即使他們的履歷不詳盡, 又或他們對企業投資的經驗淺薄, 也無礙籌資或過多籌資的成功完成。如錨定投資者為個人, 則詳盡的履歷會影響甚鉅。即使個人錨定投資者相對而言參與少量的投資, 但若這少量的投資給他們詳盡的履歷所彌補的話, 則過多籌資仍可成功達到。若個別錨定投資者原有的投資量不多的話, 則企業投資的經驗至為重要。不管錨定投資者的身份是什麼, 若他們對企業投資所持的經驗淺薄, 則按絕對值計算的投資額對眾籌能否成功至為重要。若錨定投資者的履歷不詳盡, 則這種經驗必須是豐富廣泛的。

研究的原創性/價值

本研究區分了個人錨定投資者與公司錨定投資者兩者對眾籌的影響, 就此而研究在數碼的眾籌環境裡, 錨定投資者信息公佈的重要性。

實務方面的啟示

研究結果可幫助企業家和群眾募資平台去設計可使用錨定投資者的資訊提示來達至成功眾籌和過多籌資的活動。

Details

European Journal of Management and Business Economics, vol. 33 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 19 March 2024

Bastien Bezzon, Geoffroy Labrouche and Rachel Levy

This study analyzes the role of regional cooperative banks in identifying and financing small and medium-sized enterprises (SMEs) from a proximity perspective. Access to finance…

Abstract

Purpose

This study analyzes the role of regional cooperative banks in identifying and financing small and medium-sized enterprises (SMEs) from a proximity perspective. Access to finance is a major challenge for SMEs. Regional cooperative banks can remove this barrier based on cooperative bank's characteristics and geographic proximity to SMEs. Understanding the interplay between these financial actors and firms can contribute to a better support of SMEs development.

Design/methodology/approach

The results are based on a case study of eight SMEs located in southwestern France. Interviews were conducted with two regional cooperative funds and eight SMEs. The interview guide included questions related to the company, the projects financed and how financing was accessed.

Findings

Results reveal that a combination of three forms of proximity allows regional cooperative banks and SMEs to establish effective financing operations. They show that regional cooperative banks are key players in the existing financing mechanisms for SMEs. Such financing is often used to gain access to larger players at a later stage. The findings suggest the need for public policies that promote the integration of financing actors in regional ecosystems to advance SMEs' development.

Originality/value

This article examines how SMEs access financing, with a focus on regional cooperative banks, which have received little attention in the literature. Moreover, the relationships between these actors are studied through the lens of proximity. Regional cooperative banks are able to finance projects that may have been overlooked by traditional banks due to trust-building local dynamics.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Open Access
Article
Publication date: 26 February 2024

Heewoo Park and Yuen Jung Park

This study analyzes the impact of the information environment (IE) and credit default swap (CDS) transaction costs on information transmission between the stock and CDS markets…

Abstract

This study analyzes the impact of the information environment (IE) and credit default swap (CDS) transaction costs on information transmission between the stock and CDS markets. Using the daily regression analysis on the Korean firm’s stock and CDS data from 2004 to 2023, the results show that companies with superior IE in the stock market exhibit a larger and more sensitive total information flow from the stock market to the CDS market. Companies with lower transaction costs in the CDS market demonstrate faster information flow. In the case of companies with superior IE, fundamental information is reflected in stock prices with high weight and thus the CDS spreads change reflecting information about stock prices. According to this study’s findings, the primary factor influencing the information flow from the stock market to the CDS market is the information environment of the company in the stock market, rather than transaction costs in the CDS market.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1229-988X

Keywords

Article
Publication date: 5 September 2023

Aparna Bhatia and Amanjot Kaur

The purpose of this paper is to investigate whether information asymmetry mediates the relationship between disclosure and cost of equity.

Abstract

Purpose

The purpose of this paper is to investigate whether information asymmetry mediates the relationship between disclosure and cost of equity.

Design/methodology/approach

The study is based on a sample of 500 companies listed in Bombay Stock Exchange for a period of six years from 2015 to 2021. Panel data regression is applied to analyze the relationship between voluntary disclosure, cost of equity and information asymmetry. Mediation effect of information asymmetry is tested with the help of Barron and Kenny’s (1986) approach.

Findings

Findings suggest that in case of Indian companies, disclosure reduces cost of equity directly and indirectly through mediation of information asymmetry. Indian investors value credible information for better estimation of future returns, supporting the validity of estimation risk and stock market liquidity hypothesis, which proposes an inverse relationship between disclosure and cost of equity.

Research limitations/implications

Managers can use the findings to strategize their disclosure policy and secure funds at lower cost. Shareholders can monitor managerial actions by demanding credible disclosures. Government too can encourage voluntary disclosure by providing special incentives to the firms.

Originality/value

This study is a pioneering research that investigates the mediating influence of information asymmetry between disclosure and cost of equity with reference to the Indian corporate landscape.

Details

International Journal of Law and Management, vol. 66 no. 1
Type: Research Article
ISSN: 1754-243X

Keywords

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