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1 – 10 of over 2000
Article
Publication date: 2 September 2014

Vinod Venkiteshwaran

Asset sales can have opposing effects on firm credit quality. On the one hand asset sales could signal increased credit risk resulting from distress or on the other hand…

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Abstract

Purpose

Asset sales can have opposing effects on firm credit quality. On the one hand asset sales could signal increased credit risk resulting from distress or on the other hand they could improve internal liquidity and hence credit quality. Therefore the impact potential asset sales can have on credit quality is an empirical question and one that has previously not been examined in the literature. The paper aims to discuss these issues.

Design/methodology/approach

Using credit ratings as a measure of firm credit quality, in ordered probit regressions, this study finds evidence consistent with the internal liquidity view of the asset sales-credit risk relationship.

Findings

Results from ordered probit regressions of credit ratings show that the likelihood of higher credit ratings is increasing in industry-level turnover of real assets

Originality/value

Credit-rating agencies often cite the impact of asset sales on firm credit quality as a motivation for their rating assignments. Distress-driven asset sales could reduce firm credit quality whereas other asset sales could result in increased internal firm liquidity and hence improve firm credit quality. This bi-directional expectation leaves the question of how asset sales affect credit quality to be answered empirically and has not been previously tested in the literature.

Details

Managerial Finance, vol. 40 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 11 February 2014

Claudia E. Halabí and Robert N. Lussier

– This study aims to develop an ordered probit model to explain and predict small business relative performance in Chile, South America.

2067

Abstract

Purpose

This study aims to develop an ordered probit model to explain and predict small business relative performance in Chile, South America.

Design/methodology/approach

The design is survey research. The sample includes 403 small businesses classified as 158 failed firms, 101 mediocre firms and 144 successful firms within all economic sectors. The model variables are: internet, starting with adequate working capital, managing good financial and accounting records, planning, owner formal education, professional advice, having partners, parents owning a business, and marketing efforts.

Findings

The eight-variable model, tested with ordered probit, is a significant predictor of the level of performance at the 0.000 level. Also, six of the eight variables are significant predictors at the 0.05 level: internet, starting with adequate working capital, managing good financial and accounting records, owner, professional advice, having partners, parents owning a business, and marketing efforts. Two of the variables – i.e. planning and formal education – were not significant. ANOVA test of differences were run for each of the eight variables based on the level of performance were also run and results reported.

Practical implications

The model does in fact predict relative performance, so the model can be used to improve the probability of success. Thus, an entrepreneur can use the model to gain a better understanding of which resources are needed to increase the probability of success, and those who advise entrepreneurs can help them use the model. Investors and creditors can use the model to better assess a firm's potential for success. There is an extensive public policy implications discussion regarding how to use the model to assist entrepreneurial ventures so that society can benefit in direct and indirect ways via the allocation of limited resources toward higher potential businesses. Entrepreneurs and small business educators can use the model's variables to influence future business leaders, public policy makers, and their practices.

Originality/value

This study improves the Lussier 15 variable success versus failure prediction model by adding the use of the internet and taking out highly correlated variables. While Lussier and others ran logistic regression with only two levels of performance, this study uses the more robust ordered probit model with three levels of performance. It presents public policy with implications for Chilean institutions to promote entrepreneurship. Finally, it contributes to the literature because, to date, no empirical success versus failure studies have been found that were conducted in Chile or any small, open economies in Latin America

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 29 April 2021

Samia Satti Osman Mohamed Nour and Eltayeb Mohamedain Abdalla

This paper aims to discuss the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS). We use the…

Abstract

Purpose

This paper aims to discuss the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS). We use the measurement of HFIAS and use new primary data from a food security household survey in Kassala state (2019).

Design/methodology/approach

This paper focuses on the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS), using new primary data from a food security household survey in Kassala state (2019) and using the multinomial logistic regression analysis and both ordered logit and ordered probit regression to examine the determinants of food security.

Findings

Our results are in support of our hypothesis that the significant determinants of household food insecurity are family-owned production (that negatively affects the probabilities of household being food insecure), household income (that negatively affects HFIAS). We observe that the effects of family-owned production on household food insecurity are particularly significant in the case of mildly and moderately food insecurity. We explain that the other factors that affect the household food insecurity include improvement in the level of agricultural services, marketing, banking services and road characteristics that reduce HFIAS. We find a gender gap related to food security in the sense that male-headed households produce more food compared to female-headed households and also families headed by males are more likely food secure. Therefore, the major policy implication from our results is the importance of increasing households income and enhancing family own production of food to eliminate food insecurity.

Originality/value

This paper provides a significant contribution to the Sudanese and international literature because it discusses the determinants of food security in Kassala state. Different from the two other accompanying papers that focused on the incidence of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS) and the determinants of production of food and consumption of food in Kassala state, this paper focuses on the determinants of food security in Kassala state using the measurement of HFIAS and using new primary data from a food security household survey in Kassala state (2019). We fill the gap in the Sudanese literature because we provide a more interesting analysis of the determinants of food security in Kassala state. Our analysis is useful from policy perspective since we provide useful policy recommendations to enhance food security through agricultural development in Kassala state.

Details

World Journal of Science, Technology and Sustainable Development, vol. 18 no. 3
Type: Research Article
ISSN: 2042-5945

Keywords

Open Access
Article
Publication date: 6 November 2020

Anthony Amoah and Kofi Korle

This study seeks to provide a robust piece of evidence of forest depletion in Ghana and its associated driver intensities to inform national policy decisions towards…

3683

Abstract

Purpose

This study seeks to provide a robust piece of evidence of forest depletion in Ghana and its associated driver intensities to inform national policy decisions towards achieving Sustainable Development Goal (SDG) 15 and beyond.

Design/methodology/approach

Using a representative sample size of 733 households, which was obtained with the aid of a structured questionnaire, a descriptive analysis is used to show the evidence of forest depletion. For robustness purposes, the geographic information system (GIS) is used to provide a piece of remote sensing evidence to substantiate the claim. In addition, an ordered probit regression model is estimated given the ranked nature of the responses to determine the drivers of forest depletion.

Findings

The results provide evidence that the urban forests in the Greater Accra Region (GAR) of Ghana have been depleted. Overall, 44% argued that the depletion of the forests is high, 30% indicated that the depletion is moderate, while 26% indicated that the depletion is low. Consistent with the literature, the ordered probit regression results show that human behaviour, climate change and institutional failure are the driver intensities of forest depletion in the Region. Besides, the authors find an increasing order effect for all three drivers. Using a descriptive analysis, majority of the respondents posited that human behaviour is the main driver intensity, followed by climate change and then institutional failure. This study recommends the need for education and advocacy, community participation, law enforcement, resource mobilization, modern adaptation strategies and internalization of externalities as a way of controlling the drivers of forest depletion.

Originality/value

The study uses remote sensing techniques to provide empirical evidence of protected forest depletion in the GAR, Ghana. In addition, an ordered probit regression is used to identify the driver intensities that explain the depleted protected forests in the region.

Details

Forestry Economics Review, vol. 2 no. 1
Type: Research Article
ISSN: 2631-3030

Keywords

Article
Publication date: 14 February 2022

Richard Kwasi Bannor, Helena Oppong-Kyeremeh, Bismark Amfo and Ada Adoley Allotey

The authors investigate cocoa farmers' willingness and motivation to participate in agritourism entrepreneurship in Ghana.

Abstract

Purpose

The authors investigate cocoa farmers' willingness and motivation to participate in agritourism entrepreneurship in Ghana.

Design/methodology/approach

Primary data were obtained from 583 cocoa farmers. Contingent valuation method, ordered probit and truncated regressions were employed.

Findings

Cocoa farmers' willingness to participate in agritourism was high. The minimum fee farmers were willing to charge per tourist per day ranged from US$0.870 to US$6.957. Agritourism products farmers were willing to offer to tourists are interaction with rural folks, indigenous cuisine, quality locally stored drinking water, indigenous primary healthcare and on-site restrooms. Cocoa farmers' motivations to participate in agritourism are income generation, alternative livelihood strategy and education. Education, being a native, farm size, motorable roads to farm, and distance to farm influence minimum fee farmers were willing to accept to participate in agritourism.

Research limitations/implications

Agritourism could be considered in rural and tourism development policies of developing countries.

Originality/value

The authors investigate cocoa farmers' participation in agritourism, motivations and determinants of willingness to participate.

Details

Agricultural Finance Review, vol. 82 no. 5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 21 August 2007

Harriet Stranahan and Dorota Kosiel

This study aims to explore patterns in e‐tail spending across different demographic groups and to predict which households are the most frequent shoppers and highest…

3026

Abstract

Purpose

This study aims to explore patterns in e‐tail spending across different demographic groups and to predict which households are the most frequent shoppers and highest spenders. Further, it aims to investigate which households are least likely to purchase from unfamiliar online stores.

Design/methodology/approach

Using a random sample of Florida households, the study is the first to use probit and ordered probit models to study Internet purchasing behavior.

Findings

Younger, college educated, higher income households living in suburban, rural and small towns spend and shop the most online. Caucasians purchase online more often than African Americans and Hispanics but spend about the same amount. The study also finds that male, Hispanic, college educated and younger consumers are more willing to purchase from unfamiliar online stores.

Originality/value

This study provides new evidence on factors affecting household online spending and buying decisions. Previous studies have not used an ordered probit to model different levels of spending and this new specification provides information about which demographic groups are the most (or the least) frequent buyers as well as which demographic groups are the highest (or the lowest) e‐tail spenders. This study also investigates which demographic groups are most likely to shop only at stores with whom they are already familiar.

Details

Internet Research, vol. 17 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 21 August 2017

Nurul Shahnaz Mahdzan, Rozaimah Zainudin, Rosmawani Che Hashim and Noor Adwa Sulaiman

This study aims to investigate the association between Muslim individuals’ portfolio allocation choice and Islamic religiosity (levels and dimensions), controlling for…

Abstract

Purpose

This study aims to investigate the association between Muslim individuals’ portfolio allocation choice and Islamic religiosity (levels and dimensions), controlling for risk tolerance and sociodemographic factors.

Design/methodology/approach

The study uses primary data collected via survey questionnaires from a sample of 751 Muslim working individuals in Kuala Lumpur, Malaysia. Owing to the ordinal nature of the dependent variable, which reflects the levels of proportions of risky assets in portfolios, the data were analyzed using an ordered probit regression model.

Findings

The findings reveal that Islamic religiosity levels in general were insignificantly related to portfolio allocation, but that two dimensions of religiosity (virtue and obligation) significantly impact the allocations of risky assets in the portfolio. The higher the level of virtue, the lower the propensity to allocate risky assets into the portfolio. On the contrary, the higher the level of obligation, the higher the propensity to allocate risky assets in the portfolio. Meanwhile, individuals with higher risk tolerance, income and education levels show greater propensity to allocate risky assets in the portfolio.

Research limitations/implications

The sample is restricted to Muslims in Kuala Lumpur; hence, the findings are not easily generalized to Muslim investors in general. Findings may differ between Muslims across the world, so future research needs to expand from a country specific to an international analysis. In addition, future studies could include other determinants of portfolio allocation, such as financial literacy.

Practical implications

The findings of this study may assist financial planners and policymakers to better understand the drivers of portfolio allocation among their Muslim clients.

Originality/value

While other studies have tended to focus on the impact of religiosity on the holdings of specific financial assets, such as Islamic bank accounts or Takaful, the present study explores the effect of Islamic religiosity dimensions on the allocations of risky assets in the portfolio. The study also develops an ordinal measure of portfolio allocation and makes a methodological contribution by using an ordered probit regression analysis.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 10 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Book part
Publication date: 19 November 2019

Weihao Li, Ying Chen and J. Ryan Lamare

This chapter aims to answer whether foreign multinational corporations (MNCs) operating within the Chinese context differ from indigenous firms on several essential labor…

Abstract

This chapter aims to answer whether foreign multinational corporations (MNCs) operating within the Chinese context differ from indigenous firms on several essential labor standards indicators: white- and blue-collar salaries, pension insurance, and working hours. In drawing upon neo-institutional and organizational imprinting theories and applying these to the Chinese context, the study addresses competing arguments regarding the expected effects of ownership type on these indicators. We employ seemingly unrelated regressions (SURs) to empirically examine a novel national survey of 1,268 firms in 12 Chinese cities. The regression results show that foreign MNCs do not provide uniquely beneficial labor practice packages to workers when compared with various indigenous firm types, including state-owned enterprises (SOEs), affiliate businesses of Hong Kong, Macau, and Taiwan, and domestic private enterprises (DPEs). Specifically, although MNCs provide relatively higher wage rates, they underperform relative to SOEs concerning social insurance. However, DPEs consistently underperform relative to MNCs across most indicators. The mixture of the results contributes important nuances to the application of neo-institutional and organizational imprinting theories to the Chinese context.

Details

Advances in Industrial and Labor Relations
Type: Book
ISBN: 978-1-83909-192-6

Keywords

Article
Publication date: 7 January 2014

Ariel Atzil and Eli Feinerman

– Enabling decision-makers in Israel to better assess the prospects of government policies aimed at changing inter-generation income distribution for the benefit of the retirees.

Abstract

Purpose

Enabling decision-makers in Israel to better assess the prospects of government policies aimed at changing inter-generation income distribution for the benefit of the retirees.

Design/methodology/approach

Based on a comprehensive data set, the paper utilizes multivariate ordered-probit regression for empirical investigation of the motivations for support between parents and children in Israel.

Findings

The main finding is that child-parent support in Israel is usually driven by a combination of exchange and altruistic motives, rather than altruism alone.

Practical implications

Child-parent support will not reduce the impact of governmental policies aimed at redistributing income among different generations. If the Government of Israel raises the income level of its citizens aged 65 and over, the improvement in this population's condition will most probably be bigger than that caused directly by the amount the government has added to their income.

Originality/value

Empirical evaluation of the motivations for support given by children to their retired parents in Israel. Israel is a multicultural, immigrant country, home to people originating from all over the world, which provides an interesting cross-cultural perspective. In addition, the underlying database used in this study includes much more information than most databases utilized by earlier studies.

Details

International Journal of Social Economics, vol. 41 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 January 2022

Nusirat Ojuolape Gold and Fauziah Md. Taib

Following the unceasing pressure on companies to adopt sustainable business practices to mitigate climate effect, this study aims to examine corporate governance (CG…

Abstract

Purpose

Following the unceasing pressure on companies to adopt sustainable business practices to mitigate climate effect, this study aims to examine corporate governance (CG) attributes and role of activist investors in influencing extensive sustainability practice for firms in the developed and emerging climes.

Design/methodology/approach

Using a panel ordered probit regression analysis for 368 companies over 2016 to 2019, the study examined CG attributes that drive extensive corporate sustainability practice. The study addressed endogeneity bias using STATA Extended panel ordered probit regression model with endogenous covariates.

Findings

The result showed CG attributes is critical for firms, and activist investors play a critical role in driving extensive sustainability practice. Findings further reveal the extent of adoption is relatively low in the emerging climes but showed sign of improvement over the years examined.

Research limitations/implications

The study focused mainly on larger firms operating in different sectors globally. Hence, findings cannot be generalized for small sized entities.

Practical implications

The study provides an insightful explanation regarding the extensive sustainability practices and the vital role assumed by activist investors.

Social implications

The increasing number of companies responding to Carbon Disclosure Project and consequent improvement in scores indicates a corporate commitment to ensuring a sustainable future.

Originality/value

This research offers significant insights to the extent discussion on attributes of CG critical for sustainability practice. The findings ascertain useful tools to aid the continued adoption of sound sustainability practices around the globe.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

Keywords

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