Search results
1 – 10 of 11This study investigates the effects of corporate restructuring – scale and scope, on the financial performance and long‐term competitiveness during the 1980s in a data set of 107…
Abstract
This study investigates the effects of corporate restructuring – scale and scope, on the financial performance and long‐term competitiveness during the 1980s in a data set of 107 manufacturing firms. Hypotheses were tested using Ordinary‐leastsquare (OLS) Regression model. Overall, this study found that: (1) corporate restructuring scope is inversely associated with firms’ performance, as expected; (2) the effects of restructuring scope on changes in competitiveness offer partial support for our hypotheses; (3) there was no support for the hypothesized relationships between restructuring scale and performance, and between restructuring scale and changes in competitiveness. Implications for future research in corporate restructuring are discussed.
Details
Keywords
SOME popular journals have, for some time now, been publishing a short list of books which are selling successfully. Books and Bookmen has a feature of the best‐selling titles…
Abstract
SOME popular journals have, for some time now, been publishing a short list of books which are selling successfully. Books and Bookmen has a feature of the best‐selling titles from two or three bookshops in town and the provinces; Time and Tide publishes a list compiled with the assistance of the National Book League: Time in its “Time Listings” enumerates the top twenty best sellers (of America) and similar lists no doubt appear in other journals. The outstanding characteristic of these lists is the remarkably high quality of the books mentioned. Rare indeed is a title which would not deserve a place on the shelves on any public library. Most of the titles are, of course, new, although it is interesting to note how really outstanding titles retain a place on the lists for many weeks. Thus in the last “Time Listing”, Dr. Zhivago, Breakfast at Tiffany's, and Aku Aku among others, have all been published for some months.
Mahmoud M. Yasin, Jafar Alavi, Murat Kunt and Thomas W. Zimmerer
The literature clearly indicates that service organizations are lagging behind their manufacturing counterparts in terms of the effective deployment of total quality management…
Abstract
The literature clearly indicates that service organizations are lagging behind their manufacturing counterparts in terms of the effective deployment of total quality management (TQM) practices aimed at achieving operational and strategic objectives. The objective of this study is to shed some light on the current TQM practices of service organizations. In general, the results of this study appear to confirm the reported literature findings concerning outcomes and benefits of effective TQM implementation. More importantly, the results underscore the differences in TQM implementation practices and benefits due to some industry‐specific factors. The lack of commitment to TQM implementation on the part of high percentage of the surveyed service organizations in this study is alarming.
Details
Keywords
James Forjan and Bonnie Van Ness
Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are…
Abstract
Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are also known as shareholder rights plans, are typically used in conjunction with other takeover defense mechanisms, such as anti‐takeover charter amendments or dual classes of stock. This study examines the role that debt plays as an anti‐takeover strategy in the presence of poison pills. The results show that, on average, capital markets have little reaction to poison pill announcements. A regression equation, however, shows that announcement period abnormal returns are positively related to leverage ratios. This paper provides empirical evidence that the capital structure of firms plays an important role in the perceived strength of poison pills.
Details
Keywords
Nazim U. Ahmed, Ray V. Montagno and Robert J. Firenze
This study investigates the relationship between environmental strategy and company performance using samples from a nationwide survey. The companies were classified into two…
Abstract
This study investigates the relationship between environmental strategy and company performance using samples from a nationwide survey. The companies were classified into two groups; environmentally conscious and non‐environmental companies. Environmental companies reported better performance scores and also are more inclined to incorporate various performance improvement strategies and techniques into their operations.
Details
Keywords
Alnoor Bhimani, Mthuli Ncube and Prabhu Sivabalan
– This paper aims to assess the impact of the presence/absence of risk management practices on the risk of merger and acquisition (M&A) failure.
Abstract
Purpose
This paper aims to assess the impact of the presence/absence of risk management practices on the risk of merger and acquisition (M&A) failure.
Design/methodology/approach
An agency theoretic perspective is adopted, along with a mixed-methods approach to study managerial complexity beyond simply “good” and “bad”. The focus is on an agency conflicts.
Findings
The authors first present an integrated framework that classifies managerial behaviour and risk management, where M&A bids can become vehicles for maximising managerial benefits rather than shareholder value. The authors proceed to consider M&A activity that benefits both managers and shareholders in the presence of risk management strategies.
Research limitations/implications
The paper highlights the benefits of multiple paradigms and research paths that address dimensions captured by an agency theoretic perspective.
Practical implications
The authors regard this paper as having particular significance in that the global financial crisis has impacted M&A activities and objectives, shifting the employment and related risks faced by managers.
Originality/value
The paper suggests future research paths to advance the understanding of the complex behaviour of managers involved in M&A activities that go beyond the classification of “good” and “bad” managers.
Details
Keywords
Diem-Trang Vo, Nguyen Quynh Mai, Long TV Nguyen, Nguyen Hoang Thuan, Duy Dang-Pham and Ai-Phuong Hoang
The role of customers has moved from reactive to proactive, and they require more control over digital touchpoints. The quest for authenticity is their response to the dark side…
Abstract
Purpose
The role of customers has moved from reactive to proactive, and they require more control over digital touchpoints. The quest for authenticity is their response to the dark side of interactive marketing – forms of faking, manipulation and exploitation. Authenticity becomes a key topic in interactive marketing as it reflects how customers assess digital touchpoints. However, there is a lack of comprehensive knowledge of authenticity in the interactive environment.
Design/methodology/approach
This article consolidates the authenticity studies in various digital touchpoints using the entity-referent correspondence framework. This research employs bibliometric analysis and thematic analysis of 103 articles in the last 15 years.
Findings
Five research clusters are identified: (1) human, (2) brand-generated content, (3) user-generated content, (4) branded platforms and (5) new technologies-based touchpoints (artificial intelligence, augmented reality and virtual reality). Most interactive marketing studies focus on human and content authenticity, and new technologies-based touchpoints lack comprehensive conceptualization. The review synthesizes the types of authenticity used in each touchpoint and highlights the importance of true-to-creator-self and true-to-customer-self in customer evaluation. We further propose a research framework with four antecedent groups and outcomes.
Practical implications
Our research supports managers by highlighting the type of authenticity prioritized in each touchpoint's development.
Originality/value
To answer the call from interactive marketing researchers, this research highlights the distinct definitions of authenticity at various digital touchpoints rather than looking at the overall brand. Trends, gaps and future research agenda of the authenticity concept in technology adoption and customer behavior are discussed.
Details
Keywords
This paper focuses on Ṣukūk issuance determinants in Gulf Cooperation Council (GCC) countries. Given the dual characteristic of debt and equity of Ṣukūk as well as their unique…
Abstract
Purpose
This paper focuses on Ṣukūk issuance determinants in Gulf Cooperation Council (GCC) countries. Given the dual characteristic of debt and equity of Ṣukūk as well as their unique benefits of social responsibility, the author questions whether the theories of capital structure, the trade-off and the pecking order are able to well explain the Ṣukūk issuance.
Design/methodology/approach
First, the author verifies these theories using capital structure determinants and regresses the Ṣukūk change on these determinants. Second, the author tests the trade-off theory with the target debt model and third, verifies the pecking order theory using the fund flow deficit model.
Findings
The empirical results show that capital structure determinants fail to explain both theories. The author confirms that the Ṣukūk change is significatively linked to the deviation from a Ṣukūk target. So, issuing firms balance the marginal costs of Ṣukūk and their benefits of religiosity and social responsibility toward a target debt. The author finds no evidence of the pecking order theory.
Research limitations/implications
This study contributes to corporate finance theory and corporate social responsibility. It verifies if capital structure theories proved in conventional financing can well explain Islamic bonds issuance given their social responsibility benefits.
Practical implications
Managers and investors would pay attention to the social factors explaining Ṣukūk issuance in their finance and investment decisions. They would be enhanced to use this financing tool knowing its social unique benefits. This also should encourage governments to enhance this socially responsible financing. Rating agencies would be motivated to evaluate Ṣukūk and firms would improve the quality and relevance of disclosure to get the best rating.
Social implications
The author highlights the social factors explaining Ṣukūk issuance and enhances corporate social responsibility (CSR).
Originality/value
The author extends the few literature testing capital structure theories for Islamic bonds and highlights the specific social responsible features of Ṣukūk that would bridge their issuance to capital structure theories. So the author enhances the concept of Islamic CSR. Tying capital structure theories to CSR would also help developing Islamic finance theory as a unique social responsible framework.
Details
Keywords
Joshua Abor, Emmanuel Sarpong‐Kumankoma, Eme Fiawoyife and Kofi A. Osei
This paper aims to evaluate the effect of risk on the financial policy of emerging market firms.
Abstract
Purpose
This paper aims to evaluate the effect of risk on the financial policy of emerging market firms.
Design/methodology/approach
Using data from 34 emerging markets during a 17‐year period, 1990‐2006, a panel data model is employed for the analysis.
Findings
The results of this study indicate that firms with high probability of survival are likely to employ more debt. The level of risk exposure, particularly business risk is important in influencing the financial decisions of firms in emerging market economies. It is argued that since the use of debt increases firms' exposure to financial risk, firms with high business risk would shy away from using more debt. Also, finance providers in the financial market may not be interested in lending to firms with high business risk. This study also identified profitability, dividend, asset tangibility, growth opportunities, and GDP per capita as important determinants of the financial policy of emerging market firms.
Originality/value
This study contributes to the extant literature by providing empirical evidence regarding the effect of risk on the financial policy of emerging market firms.
Details
Keywords
The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms.
Abstract
Purpose
The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms.
Design/methodology/approach
This study used data of 49 firms listed on Istanbul Stock Exchange during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary least squares and binary logistic regression models were used to examine whether environmental performance impacts the capital structure and financial performance.
Findings
The findings of this research revealed that environmental performance significantly positively affects the firm leverage. Findings also showed that environmental performance has a significantly positive impact on return on assets, operating profitability and return on equity, but no significant impact on stock returns.
Practical implications
Given the increased borrowing costs for Turkish firms after the 2018 currency crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to make better decisions related to capital structure and to understand the role of environmental performance in reducing the cost of debt and enhancing financial performance.
Originality/value
To the author’s knowledge, this research is the first to investigate the effect of environmental performance on capital structure in the Turkish context, and is one of few that explained how environmental performance affects the financial performance of Turkish firms.
Details