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1 – 10 of 900This paper reports on a study about applying regression techniques to identify the determinants and functional forms of tourism hotel expenditure in Hong Kong. Annual time series…
Abstract
This paper reports on a study about applying regression techniques to identify the determinants and functional forms of tourism hotel expenditure in Hong Kong. Annual time series data from 1983 to 1997 of average room rate, the number of visitor arrivals, the service price index, and hotel accommodation rates were hypothesised to affect tourism hotel expenditure. Seven exogenous variables were selected for regression model development in both linear and log‐linear forms. In view of the potential problems of multicollinearity between the independent variables, and therefore the associated instability of the regression coefficients, stepwise regression analyses were employed to improve the initial model. Final empirical results showed that the hotel expenditure in Hong Kong could be explained by four of the seven exogenous variables. A log‐linear form of the regression model appeared to slightly outperform the linear form.
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Domenico Marino, Jaime Gil Lafuente and Domenico Tebala
The objective of this paper is to analyze the relationship between innovation and the development of artificial intelligence (AI) and digital technologies in Europe. The use of…
Abstract
Purpose
The objective of this paper is to analyze the relationship between innovation and the development of artificial intelligence (AI) and digital technologies in Europe. The use of digital technologies among European companies is studied through a composite index, while the relationship between innovation and AI is studied through a log-linear regression model. The results of the model have made possible to develop interesting indications for economic and industrial policy.
Design/methodology/approach
The use of digital technologies among European companies is studied through a composite index of AI and information technology (ICT) (using the Fair and Sustainable Welfare methodology) with the aim of measuring territorial gaps and to know which European countries are more or less inclined to its use, while the relationship between innovation and AI is studied through a log-linear regression model.
Findings
In the paper, two different methodologies were used to analyze the relationship between innovation and the development of digital technologies in Europe. The synthetic indicator made possible to develop a taxonomy between the different countries, the log-linear model made possible to identify and explain the determinants of innovation.
Originality/value
The description of the biunivocal relationship between innovation and AI is a topical and relevant issue that is treated in the paper in an original way using a synthetic indicator and a log-linear model.
研究目的
本文旨在探討在歐洲、創新與人工智能和數字技術的發展之間的關係。研究人員透過一個綜合指數、去探討歐洲公司之間數字技術的使用狀況。至於創新與人工智能之間的關係, 則以對數線性回歸模型來進行研究。從模型所得的結果, 為我們提供了建議、去訂定適切的經濟和產業政策。
研究設計/方法/理念
研究人員透過一個人工智能和資訊科技的綜合指數, 去探討歐洲企業之間數字技術的使用狀況 (研究人員使用了公平和可持續福利方法論), 其目標為測量領土差距, 以及確定哪些歐洲國家、大體上傾向於使用數字技術;至於創新與人工智能之間的關係, 則以對數性回歸模型來進行研究。
研究結果
本文使用了兩個不同的方法、去探討在歐洲、創新與數字技術發展之間的關係。有關的合成指標, 使研究人員可製定一個不同國家間的分類法;而有關的對數線性模型, 則讓研究人員可確立並說明創新的決定因素。
研究的原創性/價值
本文使用了合成指標和對數線性模型、去探討創新與人工智能之間的一對一的關係, 這是時下受到關注和適宜的課題;就研究法而言, 本研究確是新穎獨創的。
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In the absence of any theoretical guidance, a solution to thequestion of what is the appropriate functional form for an import demandmodel can only be found empirically. Examines…
Abstract
In the absence of any theoretical guidance, a solution to the question of what is the appropriate functional form for an import demand model can only be found empirically. Examines this question in the context of UK motor vehicle imports by applying a range of tests of functional form to two, alternatively specified, import demand models: the “traditional” price‐income model incorporating the popular but restrictive partial adjustment mechanism and a cost‐expenditure model that employs a less restrictive lag structure. Finds, principally that the commonly imposed linear or log‐linear functional forms cannot be rejected in relation to the price‐income specification, but there is some evidence that neither functional form may be appropriate in relation to the theoretically sounder cost‐expenditure model of import demand.
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Alexandros Fakos and Maria Merino
The purpose of this paper is to document the extensive heterogeneity in institutions within countries and investigate which institutional factors are the most relevant for…
Abstract
Purpose
The purpose of this paper is to document the extensive heterogeneity in institutions within countries and investigate which institutional factors are the most relevant for international brands.
Design/methodology/approach
The paper analyzes the entry patterns of three global fast-food franchise networks in 78 Mexican cities using discrete outcome models and ordered probit in particular. To summarize the quantitative importance of the results, the analysis includes also log-linear regressions with Heckman correction for the city observations without franchise presence.
Findings
Institutional factors are critical for an international franchisor in the decision to enter a new market. The most important institutional quality proxy for franchise entry is the rate of formal employment. The more the informal employment in a city, the lower the number of franchised stores and the lower the probability of brand presence in the city.
Research limitations/implications
Only three fast-food franchises are included in the paper, which limits the generalization of the results beyond the sector and Mexico. Another limitation of the methodology of this paper is that the authors estimate the effect of institutions on multinational franchise entry conditioning on market size. The issue here is that if institutions increase gross domestic product (GDP) per capita, then the demand for multinational franchises also increases. Such an effect cannot be captured if we condition on market size in our econometric models. This is particularly important for policy-makers aiming to quantify costs and benefits of reforms but not an important consideration for practitioners who might take institutions as given and are mainly interested in entry strategies that maximize profitability.
Practical implications
Institutional variables, and not only market factors, are critical to understand the entry decision of global franchisors in Mexico. In particular, the extent of informality is relevant in explaining the store location. It is necessary to understand how managers value the quality of institutions and which dimensions are most important for multinationals. In addition, the analysis should be conducted both at the national and sub-national level, given that within-country heterogeneity is prevalent in emerging markets.
Social implications
Cities must reinforce and communicate their institutional quality to attract foreign investment by franchises in particular.
Originality/value
We test several dimensions of institutional quality at the urban level as determinants of multinationals? decision to enter a city in a foreign market. We use novel administrative data at the municipality level and we employ econometric model that takes into account the discreetness of entry data and the fact that there are cities with no franchise presence. We control for sample selection, which comes from the zero number of stores in some city observations in the regressions.
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Mukesh Kumar, K.S. Sujit and Vincent Charles
The purpose of this paper is to propose the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to…
Abstract
Purpose
The purpose of this paper is to propose the microeconomics concept of elasticity to estimate the SERVQUAL gap elasticity to derive important insights for service providers to develop the right strategies to bridge the overall gap in service.
Design/methodology/approach
The dimensions of SERVQUAL adopted from Parasuraman et al. (1988) and Kumar et al. (2009) are first verified for their unidimensionality using structural equation modeling and reliability in the context of United Arab Emirates banking industry. Furthermore, the technique of dominance analysis is used to derive the relative importance of dimensions for different groups of banks. Finally, the stepwise log-linear regression models are used to estimate the gap elasticity to measure the responsiveness of the overall SERVQUAL gap to a change in customers’ perception on different dimension.
Findings
The results reveal that the dimension which is prioritized as the most important dimension need not to be the one to be targeted under the resource constraint to react faster to the changes of customers’ banking behavior.
Originality/value
This is probably the first attempt to examine the service quality through gap elasticity. This method is especially useful when the traditional approach to measure relative importance of critical factors fails to clearly discriminate between two or more dimensions, which, in turn, may lead to failure in decision making to choose the right strategies to bridge the overall gap in the service.
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Kriengkrai Boonlert-U-Thai and Philipp Schaberl
The purpose of this study is to investigate the role of book values, earnings, and future earnings in equity valuation by time, life cycle stage, and market uncertainty using…
Abstract
Purpose
The purpose of this study is to investigate the role of book values, earnings, and future earnings in equity valuation by time, life cycle stage, and market uncertainty using samples of USA and Japanese companies.
Design/methodology/approach
This study employs Lubberink and Willett (2021) methodology in using log-linear models to estimate the value relevance of accounting numbers and follows Schaberl (2016) approach to measure %incremental value relevance. The study also includes future earnings in a basic valuation model (Ohlson, 1995) to explore the extent to which stock prices are forward looking.
Findings
This study finds a significant increase by time in the relative value relevance of a combined model with book values and earnings and a combined model with future earnings for both countries. However, the incremental value relevance of book values, earnings, and future earnings remain stable over time. The results by life cycle stage indicate that incremental value relevance of future earnings and earnings are more (less) pronounced for firms in the intro (mature) life cycle stage while the incremental value relevance of book values is highest for firms in the decline stage for both countries. The results by market uncertainty indicate that firms with high market uncertainty display higher incremental value relevance of book values for both countries. The results on future earnings are mixed as USA (Japan) firms with high (low) market uncertainty display more (less) incremental value relevance of future earnings.
Practical implications
The findings in this study enhance the merits of two basic financial statements (balance sheet and income statement) in a firm's equity valuation for potential investors and existing shareholders and document an additional role of future earnings information in reflecting a firm's stock price, which is beyond what book values and current earnings have already contributed.
Originality/value
This is the first study that uses log-linear models to estimate the value relevance of accounting numbers and investigates value relevance of accounting information in three views: time, life cycle stage, and market uncertainty.
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Michiel Botman, Peter Roosenboom and Tjalling van der Goot
This chapter investigates the relevance of accounting and other information to valuing Internet IPOs during the years 1998–2000 in Europe and the United States. We show that…
Abstract
This chapter investigates the relevance of accounting and other information to valuing Internet IPOs during the years 1998–2000 in Europe and the United States. We show that market value is negatively related to net income in the Internet bubble period before April 1, 2000 in both European and U.S. IPO markets. This is consistent with an Internet firm’s start-up expenditures being considered as assets, not as costs. Furthermore, for the U.S. IPO market, we find that free float is value relevant during the Internet bubble. Underwriters and issuers restricted the supply of shares at the IPO. This drove up market prices as investors were keen to buy Internet IPO shares.
David P. Lorenz, Stefan Trück and Thomas Lützkendorf
The basic purpose of this paper is to explore the relationship between the sustainability of construction on the one hand and market value, worth and property investment…
Abstract
Purpose
The basic purpose of this paper is to explore the relationship between the sustainability of construction on the one hand and market value, worth and property investment performance on the other hand. This paper aims to analyse price movements and price differences caused by different property characteristics.
Design/methodology/approach
Based on the estimated log‐linear hedonic regression model, a hedonic price index is calculated. Price movements subject to different property characteristics are examined by constructing various conditional hedonic price indexes.
Findings
The results reveal that, high‐quality flats or flats within preferred locations clearly outperform their competitors in terms of price stability during an overall market downturn. However, it is also shown that contemporary building descriptions or specifications of transactions within property databases are not yet sufficient and need to be widened to meet forthcoming challenges. Therefore, an “integrated building performance approach” is introduced and a proposal for the step‐wise improvement of building descriptions is made.
Practical implications
The paper shows that efforts need to be undertaken by the property profession in combining and transferring financial performance data along with information that is indicative of a building's contribution to sustainable development.
Originality/value
The paper offers insights into the relationship between the sustainability of construction and market value.
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Himanshu Sharma and Anu G. Aggarwal
Nowadays, various hotels and third party websites allow guests to express their stay experience in the form of textual content and ratings termed as user-generated content (UGC)…
Abstract
Purpose
Nowadays, various hotels and third party websites allow guests to express their stay experience in the form of textual content and ratings termed as user-generated content (UGC). This study aims to explore the influence of UGC along with the financial aspect on the sales of the hotel. This will help them in making efficient business decisions and revenue generation by realizing the requirements of the guests. The proposed model provides an insight into the theoretical and practical significance of the concerned explanatory variables to the hoteliers.
Design/methodology/approach
This paper considers the number of rooms, six aspect ratings (room, cleanliness, location, service, value and sleep quality), review length and readability as the independent variables. Revenue per available room is taken as the dependent variable. Log-linear regression analysis is performed on a data set of 78 hotels situated in Delhi National Capital Region to validate the relationships. Moreover, the differential impact of hotel type on these exploratory variables is studied.
Findings
Research findings show that along with the financial aspect, the UGC components also play a key role in generating sales for the hotels. It was further observed that the two hotel categories, i.e. luxury and budget have different natures and also the characteristics of luxury hotels overshadow those of budget.
Originality/value
This study uses the textual content of the reviews along with the numerical ratings. This is a unique combination for studying sales of hotels according to the knowledge of authors, where earlier studies focused only on the financial aspects.
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This study aims to analyze whether average video watch time or click-through rates (CTR) on YouTube videos are more closely associated with high numbers of views per subscriber…
Abstract
Purpose
This study aims to analyze whether average video watch time or click-through rates (CTR) on YouTube videos are more closely associated with high numbers of views per subscriber using linear regressions.
Design/methodology/approach
In 2018, YouTube began releasing CTR data to its video creators. Since 2012, YouTube has emphasized how it favors watch time over clicks in its recommendations to viewers. To the best of the author’s knowledge, this is the first academic study looking at that CTR data to test what matters more for views on YouTube. Is watch time or CTR more important to getting views on YouTube?
Findings
The author analyzed new video releases on YouTube. This paper finds almost no or limited evidence that higher percent audience retention or total average watch time per view, respectively, are associated with more views on YouTube. Instead, videos with higher CTR got significantly more views.
Originality/value
The author knows no other study that tests the relative importance of CTR or watch time per view in predicting views for new videos on YouTube.
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