Search results

1 – 10 of 82
Book part
Publication date: 28 September 2020

David L. Gray

Purpose – This article examines the operating lease cost stickiness characteristics exhibited by retail firms.Methodology/approachAnderson, Banker, and Janakiraman (2003

Abstract

Purpose – This article examines the operating lease cost stickiness characteristics exhibited by retail firms.

Methodology/approachAnderson, Banker, and Janakiraman (2003) laid important groundwork for the study of asymmetric cost behavior or cost stickiness. The authors found that a firm’s selling, general, and administrative costs (SG&A) costs increase more with a sales increase than those expenses decrease with an equivalent sales decline. Their findings provided avenues for many studies with differing focal variables; however, extant research has not explored the degree of cost stickiness associated with operating lease expenses. Recognizing the nature and magnitude of operating leases and the competitive and changing environment for retailers, this study adapts Anderson et al.’s (2003) model to provide insights into operating lease stickiness. The study uses archival financial data from 1997 through 2016 for specialty retail firms in testing the lease cost stickiness hypotheses.

Findings – The results of this study supported the hypotheses that operating lease expenses exhibit stickiness behavior and are relatively stickier than future lease commitments for retail firms.

Originality/value – By focusing on retail firms and related lease expenses, this study provides insights into the increasingly competitive retailer environment. This article’s findings will enhance understanding of how specialty retail firms’ managers react to reduced revenues. Finally, given recent authoritative pronouncements affecting accounting for leases and the significance of leasing transactions, research providing insights into cost behavior and managerial actions stands to make an important contribution to literature and practice.

Book part
Publication date: 13 November 2017

Robert Kozielski, Grzegorz Mazurek, Anna Miotk and Artur Maciorowski

It seems that the Internet boom, which started at the end of the 1990s and finished with the spectacular collapse of the so-called dotcoms, is probably over. We are…

Abstract

It seems that the Internet boom, which started at the end of the 1990s and finished with the spectacular collapse of the so-called dotcoms, is probably over. We are currently enjoying a period of fast and stable growth. This is manifested by the growing number of both Internet users and companies which – to an ever-increasing extent – use the Internet as a form of communication (both internal and external), promotion, sales etc. Expenditures on Internet advertising are growing continuously and now constitute more than 25% of all advertising expenditure. A natural consequence of this development is the need for the standardisation and organisation of the world of the Internet. These activities will result in a greater awareness of the benefits which this medium provides, increasing the possibilities of its use, and – most importantly – the opportunity to evaluate the return on investments made on the Internet. Nowadays, it is clear that many companies are striving to increase the quality of their activities on the Internet or to improve the effectiveness of such activities. As a consequence, the number of companies that look for indices which would enable the making of more precise and effective decisions in the scope of online operations is growing.

This chapter is dedicated to the phenomenon of the increasing role of the Internet in business, including the scale of its use by Polish and international companies. We present the most commonly used measures of marketing activities on the Internet and in social media. This group includes the indices which make it possible to determine whether a company actually needs a website. Other measures allow for the improvement in the effectiveness of the activity on the Internet, whereas others specify the costs of activities on the Internet and often serve as the basis for settlements between a company and advertising agencies or companies specialising in website design. It is worth emphasising that the Paid, Earned, Shared, Owned (PESO) model, worked out by Don Bartholomew,1 is the basis for creation and description of indices concerning social media. This model has gained certain popularity in the social media industry. It does not, however, specify how individual indices should be named and calculated. It maps already existing indices and adapts them to specific levels of marketing communication measurement. All the measures indicated by the author of the model have been grouped into five major areas: exposure, engagement, brand awareness, action and recommendations. This model– similarly to all models of performance measurement – inspired by the sales funnel concept, adjusts certain standard indices and proposals of measurements for specific levels. Additionally, the measures are divided into four types, depending on who the owner of the content is: Paid (P) – refers to all forms of paid content; Owned (O) – all websites and web properties controlled by a company or brand; Earned (E) – the contents about a given brand created spontaneously by Internet users; and Shared (S) – the contents shared by Internet users.

Details

Mastering Market Analytics
Type: Book
ISBN: 978-1-78714-835-2

Keywords

Article
Publication date: 19 November 2018

Mahdi Salehi, Nasrin Ziba and Ali Daemi Gah

The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange.

Abstract

Purpose

The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange.

Design/methodology/approach

Data of all Iranian manufacturing listed companies gathered for testing hypotheses during 2010–2016 and R statistical software are employed in order to analyzing data.

Findings

The results of this study indicate that there is a significant relationship between administrative, sale, material, labor and overhead costs and the financial reporting qualities of the companies under study.

Originality/value

The study focuses on relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange, which is the first study of its type in Iran.

Details

International Journal of Productivity and Performance Management, vol. 67 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 10 July 2017

Ali Mohammadi and Parastoo Taherkhani

The purpose of this paper is to identify the relationship between organizational capital and the subsets of organizational capital (intellectual capital (IC)) cost and cost

1252

Abstract

Purpose

The purpose of this paper is to identify the relationship between organizational capital and the subsets of organizational capital (intellectual capital (IC)) cost and cost stickiness.

Design/methodology/approach

This study is causal correlational research. The data related to the company’s financial statements were collected using the Rahavard Novin Software and www.rdis.ir. In this study, panel data were run with the use of Eviews 8, in order to test the hypotheses. The ordinary least-squares method is used in this study to estimate the parameters of the model.

Findings

The results obtained from the study show that there is a significant relationship between organizational capital and cost stickiness. However, there is no significant difference between high and low rank in terms of organizational capital and cost stickiness. In addition, there is a significant difference between IC and cost stickiness. Moreover, there is no significant difference between the components of IC and cost stickiness. Also, IC has an effect on the intensity of the relationship between organizational capital and cost stickiness.

Originality/value

This study explores the relationship between organizational capital and the subsets of IC and cost stickiness. Independent variables used in this study include organizational capital, IC and its components in the Pulic model, i.e. the efficiency of capital employed, the efficiency of human capital and the efficiency of structural capital.

Details

Journal of Intellectual Capital, vol. 18 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 29 July 2014

Kim Hin David Ho, Satyanarain Rengarajan and John Glascock

The purpose of this paper is to examine the structure and dynamics of Singapore's Central Area office market. A long-run equilibrium relationship is tested and a short-run…

Abstract

Purpose

The purpose of this paper is to examine the structure and dynamics of Singapore's Central Area office market. A long-run equilibrium relationship is tested and a short-run adjustment error correction model are estimated, incorporating appropriate serial error correction. The long-run equation is estimated for office rent, with office employment and available stock.

Design/methodology/approach

With the vector error correction model (VECM), the lagged rent, available stock, office employment, vacancy and occupied stock (OS) can impact the rental adjustment process. Equilibrium rent on the whole reacts positively to lagged rents, available stock, office employment, OS and negatively to vacancy rates (VC). Past levels of positive change in VC and rental growth can have negative effects on current OS.

Findings

While good economic conditions signaled by increases in rents increase the supply of new stock (available space), higher rents and VC dampen the long-term occupied space (space absorption) in accordance with economic theory. Available stock can be forecasted by past rent and absorption levels owing to the developer's profit-driven nature.

Research limitations/implications

An understanding of the interaction between the macroeconomic variables and the Central Area office market is useful to domestic and foreign investors and developers, who then can better evaluate their decision making in commercial real estate investment and development projects.

Practical implications

It is implicit that the Singapore Central Area office market requires at least a year before any rental increase can potentially dampen the space demanded. Firms are attracted to locate there owing to agglomeration economies and they are willing to pay premium office rents in conjunction with office space intensification in the Central Area. Newly built space is positively affected by past rents. Urban Redevelopment Authority and private real estate developers should be wary of excess office sector vacancies by avoiding over supply, even though an increase in the supply of office space in the Central Area can have a positive impact on office rent in the longer term. Most of the office space development would tend to meet the demand in the long run. Rental stickiness is exemplified as rental changes are affected by lagged rent.

Social implications

Policy makers are better enabled to stabilize the office sectors of the real estate market if so required.

Originality/value

The paper adopts the VECM and validated by empirical evidence, to investigate the long-run equilibrium relationship and short-term corrections underlying the dynamics of the Singapore Central office market. Delay in the restoration of equilibrium in real estate markets is attributed to factors like lease terms and supply lags.

Details

Journal of Property Investment & Finance, vol. 32 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 24 November 2020

Bolesław Kołodziejczyk, Dmytro Osiichuk and Paweł Mielcarz

Relying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.

Abstract

Purpose

Relying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.

Design/methodology/approach

Panel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.

Findings

In line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.

Originality/value

Our empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

Details

Property Management, vol. 39 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

Content available
Book part
Publication date: 28 September 2020

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-83982-913-0

Article
Publication date: 6 November 2019

Jordan Karl Lofthouse

The purpose of this paper is to explore how culture affects economic development on Native American reservations by examining how culture directs the attention of…

Abstract

Purpose

The purpose of this paper is to explore how culture affects economic development on Native American reservations by examining how culture directs the attention of entrepreneurs and interacts with formal governance institutions.

Design/methodology/approach

This paper combines theoretical insights from economic sociology, market process economics and institutional economics as a basis to evaluate entrepreneurship and economic development on Native American reservations. Culture, as a web of social meanings, shapes what opportunities entrepreneurs are alert to, influences how they perceive transaction costs and determines whether institutions achieve their intended ends. Historical and contemporary case studies are used to build analytical narratives to corroborate the theoretical approach.

Findings

The federal government has imposed many formal institutions on reservations, which have disrupted traditional governance and property rights structures. If formal institutions do not comport with the underlying culture, those institutions do not facilitate positive entrepreneurship and economic growth. Despite the barriers, entrepreneurs across several reservations have leveraged their cultural and social ties to create robust informal economies. In some cases, imposed institutions have fostered rent-seeking and have given rise to a culture of rent-seeking.

Research limitations/implications

This paper looks at Native American entrepreneurship and institutions in the broadest sense. However, there is a large amount of diversity within the cultural and governance structures of Native American communities. Future research could examine specific tribes or reservations in more detail.

Practical implications

This paper elucidates cultural and institutional barriers to productive entrepreneurship on Native American lands. Policymakers must understand these root causes if they are to facilitate economic growth.

Originality/value

This paper’s combination of theoretical perspectives helps explain the widespread economic development issues on Native American lands.

Details

Journal of Entrepreneurship and Public Policy, vol. 9 no. 1
Type: Research Article
ISSN: 2045-2101

Keywords

Book part
Publication date: 13 December 2017

Qiongwei Ye and Baojun Ma

Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and…

Abstract

Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to revolutionize business and society. Split into four distinct sections, the book first lays out the theoretical foundations and fundamental concepts of E-Business before moving on to look at internet+ innovation models and their applications in different industries such as agriculture, finance and commerce. The book then provides a comprehensive analysis of E-business platforms and their applications in China before finishing with four comprehensive case studies of major E-business projects, providing readers with successful examples of implementing E-Business entrepreneurship projects.

Internet + and Electronic Business in China is a comprehensive resource that provides insights and analysis into how E-commerce has revolutionized and continues to revolutionize business and society in China.

Details

Internet+ and Electronic Business in China: Innovation and Applications
Type: Book
ISBN: 978-1-78743-115-7

Abstract

Details

Further Documents from the History of Economic Thought
Type: Book
ISBN: 978-1-84950-493-5

1 – 10 of 82