Search results

The purpose of this paper is to propose a new measure of portfolio activity, the modified turnover (MT), which represents the portion of the portfolio that the manager changes from one quarter to the next. Compared with the traditional turnover, the MT measure has a distinct interpretation, relies on portfolio holdings, includes the effects of flows and ignores the effects of offsetting trades.

Using quarterly holdings data, the authors examine the relationship between fund turnover, performance, and flows for a sample of 2,856 actively managed mutual funds over the period 1991-2012. The authors provide numerical examples to illustrate how the suggested measure, MT, is different from the traditional turnover measure. The authors use panel regressions, simple and double sorts to examine the predictability of performance.

The authors find evidence that high MT predicts lower performance. The comparison between the highest and lowest quintiles sorted based on MT reveals a difference of −2.41 percent in the annual risk-adjusted return. Furthermore, high MT predicts lower net flows. The authors also find that MT relates positively to other activeness measures while volatility, flows, size, number of stocks, and the expense ratio are significant determinants of MT. Overall, the results suggest that frequent churning of a portfolio is value destroying for investors and signals a manager’s lack of skill.

The authors offer a simple measure, namely, MT, for estimating the fraction of a portfolio that changes from one quarter to the next. Armed with this tool, the authors investigate whether funds deviate from their previous quarter’s holdings because of valuable or noisy information, and whether such signals are exploited by fund investors.

In this chapter, the authors build on the voluntary turnover model posited by Allen, Bryant, and Vardaman (2010) with reference to turnover and retention within the United Kingdom. After providing important contextual material about the United Kingdom, the authors explore turnover drivers such as work precarity, as well as the effect of Brexit, which compounds the political and economic uncertainty engendered by the pandemic. Reflecting on the role of external shocks in precipitating withdrawal processes, the authors go on to examine the extent to which job embeddedness impacts on employee turnover, and how alternative opportunities in a UK context may shape the decisions people make to stay with or leave their organizations. Central to our argument is that human resource (HR) practices as perceived by employees play a critical role in shaping attitudes such that people wish to stay in the organization. Cultural values posited by Hofstede and others are likely to significantly impact the way in which employees respond to the HR practices they perceive. Hence, leaders and HR specialists in the United Kingdom need to deploy HR practices which speak to cultural values that stand out in that context, considering that the United Kingdom is characterized by relatively low levels of power distance, low uncertainty avoidance, high individualism and higher than average indulgence.

Taken together, the model provides an overview of key internal and external factors that influence employees’ attitudes at work, their withdrawal behaviors and the ensuing turnover at the organizational-level. The authors conclude by highlighting key research questions raised by the analysis of the model within a UK context, considering where empirical research will add to understanding about turnover and retention in the United Kingdom.

This paper aims to examine the impact of stock market liquidity on the value of reported earnings in Egypt, proxied by the earnings–return relationship, during the period between 2006 and 2015.

To achieve this objective, this paper uses a sample including all active firms listed on the Egyptian Stock Exchange. This study employs multivariate panel data regression analysis with fixed effects estimated using robust standard errors, and control for other variables. All financial, accounting and stock market data are collected from the Thomson Reuters Worldscope and Datastream databases.

The empirical results report a significant positive relation between liquidity and earnings informativeness. This study argues that in environments with high information asymmetries, reported earnings are informative conditional on stock liquidity. All results remain valid when using heteroscedasticity-robust standard errors clustered across firms, alternative measures of liquidity, sub-groups of different sizes and estimating quantile regressions.

This paper identifies stock price liquidity as a significant determinant of stock price informativeness of earnings in Egypt. In particular, stock liquidity reduces agency conflicts and information asymmetries between managers and market investors, and thereby decreases managerial incentives to misreport earnings. This consequently enhances the quality of reported earnings and the informativeness of prices.

The burnout condition of employees – characterized by three interrelated symptoms of emotional exhaustion, reduced personal accomplishment and depersonalization – is a well-known phenomenon in psychology and several applied business disciplines. Following persistent recognition in the practice community, academic recognition of this topic has begun to appear in the accounting literature. Using a measure of burnout developed for boundary-spanning positions, this paper shows that burnout among internal auditors is a serious concern. Results offer evidence that the burnout condition is directly related to several of the important behavioral and attitudinal outcomes in internal accounting practice. In order to provide greater clarity for future research, this study offers a separate treatment of the three dimensions of burnout, two very different organizational commitment constructs and two turnover directions. Implications for the management of human resources in this area are included.

Shortest path problem has always been a hot topic in the study of graph theory, because of its wide application field, extending from operational research to the disciplines of geography, automatic control, computer science and traffic. According to its concrete application, scholars in the relevant field have presented many algorithms, but most of them are solely improvements based on Dijkstra algorithm. The purpose of this paper is to enrich the kinds of (and improve the efficiency of) the shortest path algorithms.

This paper puts forward an improved calculation method of shortest path using cellular automata model, which is designed to search the shortest path from one node to another node. Cellular state set is adjusted with combination of breeding and mature states. Evolution rule is improved to enhance its parallelism. At the same time, recording manner of cellular state turnover is modified to record all information sources.

The result indicates that the improved algorithm is correct and more efficient, in that it could reduce the times of cellular state turnover; meanwhile, it can solve multi‐paths problem.

In this paper, cellular state set in exiting shortest path algorithm based on cellular automata theory is adjusted; evolution rule is improved; and recording manner of cellular state turnover is modified to record all information sources. All of which make the parallelism of this algorithm enhanced and the multi‐paths problem solved.

Volume-based liquidity ratios suffer from potential measurement bias due to share restriction and may misrepresent actual liquidity. To address this issue, the authors develop two modified metrics, the free-float liquidity and the alternative free-float illiquidity ratios. These measures are well suited to estimate liquidity in the presence of trading constraints, as can be found in closely held/state-owned entities, IPOs/SEOs with lockup restrictions, dual-class share structures and family-owned businesses.

The authors modify the turnover illiquidity ratio, where the number of outstanding shares is scaled by the public free float, and use natural log transformation to normalize free-float liquidity. Our dataset is composed of daily observations for US stocks included in the S&P 500 index over the 2015–2018 period. To test the validity of free-float (il)liquidity ratios, the authors perform a correlation analysis for various liquidity metrics. To examine their empirical efficiency, the authors employ pooled OLS regression models for family firms as a subsample of liquidity-constrained entities, relying on five different identifiers of family-owned businesses.

The authors’ empirical testing indicates that the proposed free-float (il)liquidity ratios compare favorably with other volume-based methods, such as Amihud's ratio, liquidity ratio and turnover ratio. For the subsample of family organizations as a restricted-share setting, the authors report significant coefficients for our free-float measures across all the family firm identifiers used. In particular, as free-float decreases with progressive family influence, the advanced ratios capture an increase (decrease) in perceived liquidity (illiquidity) that is absent in the other benchmarks.

This study allows the authors to inform the ongoing debate on the management and governance of publicly listed companies with various impediments to trade. Traditional measures understate illiquidity (overstate liquidity) as the fraction of free trading shares is limited by design or circumstances. The authors’ proposed free-float metrics offer informational gains for family leaders to aid in their financing decisions and for non-family outsiders to guide their investment choice. As a constrained free float inhibits price discovery processes, the authors discuss how restricted stock issuers may alleviate the attendant negative effects on governance and information opacity.

The purpose of this paper is to investigate the mediating role of prosociality, which is defined in terms of helping and benefitting others, between teacher collaboration and their turnover intentions. Prosociality was measured as prosocial impact and prosocial motivation.

This study was conducted through a cross-sectional survey of 260 elementary and junior high school teachers in Japan. A structural equational model was employed to examine the mediating roles of prosocial impact and prosocial motivation in the relationships between teacher collaboration and their turnover intention.

The results, first, supported the hypotheses: the high perception of teacher collaboration in school predicted high perceived prosocial impact; high perceived prosocial impact predicted high perceived prosocial motivation; and high perceived prosocial motivation predicted decreased turnover intention. Second, results supported partial mediating roles of prosocial impact and prosocial motivation between teacher collaboration and turnover intention.

Limitations of this study include cross-sectional data that may limit the potential for causal inferences, and self-report data. Future studies should incorporate alternative designs.

Results indicate that teacher collaboration contributes to less teacher turnover intention via prosociality. Thus, to enhance teachers’ prosocial impact, more opportunities to realise their collaboration should be considered.

This is the first study to explore the relationships between teacher collaboration and turnover intention in educational organisations with prosociality, which resides as core goals and objectives of teachers.

Why employees stay or leave their organization in Republic of Korea (South Korea) can be better understood by taking into account the idiosyncratic institutional and cultural contexts. In this chapter, we aim to provide a comprehensive review of employee turnover research in South Korea and discuss its implications for research. Specifically, we explain how employee turnover decisions may be affected by the characteristics of South Korean labor market (duality, polarization, and intergenerational issues) and cultural environments (collectivism, high power distance, and high-performance orientation). The review shows that organizational commitment, job satisfaction, and on-the-job embeddedness are three key mechanisms explaining employee turnover in South Korea. Building upon the review, we conclude the review by suggesting future research directions: (a) examining turnover behavior as a key outcome, (b) developing a theoretical framework for social identity and embeddedness, and (c) understanding intergenerational issues.

The purpose of this paper is to review the literature on liquidity in international stock markets, highlights differences and similarities in empirical results across existing studies, and identifies areas requiring further research.

International cross-country studies on stock market liquidity are categorized and reviewed. Important relevant single-country studies are also discussed.

Market liquidity is influenced by exchange characteristics (e.g. the presence of market makers) and regulations (e.g. short-sales constraints). The literature has identified the most appropriate liquidity measures for global research, and for emerging and frontier markets, respectively. Major empirical facts are as follows. Liquidity co-varies within and across countries. Both the liquidity level and liquidity uncertainty are priced internationally. Liquidity is positively associated with firm transparency and share issuance, and negatively related to dividends paid out. The impact of internationalization on liquidity is not universal across firms and countries. Some suggested areas for future studies include: dark pools, high-frequency trading, commonality in liquidity premium, funding liquidity, liquidity and capital structure, and liquidity and transparency.

The paper focusses on international stock markets and does not consider liquidity in international bond or foreign exchange markets.

This paper provides a comprehensive survey of empirical studies on liquidity in international developed and emerging stock markets.

An instrument has been developed to empirically measure the factors (constructs) influencing inventory systems and their effectiveness in international environments. The relevant literature was examined and eight constructs were identified to be included in the scale: the level of infrastructure, government policy, product characteristics, productions environments, supply base, degree of uncertainty, information level and effectiveness of the inventory system. The instrument was tested through structured interviews in operations in North America, South America, Europe and Asia. These scales provide an essential building block for empirical researchers and managers to document the state of international operations. As an example of using this scale a comparison of US, European and Latin American inventory systems is provided.