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1 – 10 of over 1000The development of online brand communities employed by marketers to maintain consumer relationships and brand building is increasing. This study aims to explore how value…
Abstract
Purpose
The development of online brand communities employed by marketers to maintain consumer relationships and brand building is increasing. This study aims to explore how value co-creation practices can cultivate consumers' brand loyalty.
Design/methodology/approach
Using partial least squares modeling, the hypotheses testing involves the utilization of and data collection from 599 Chinese consumers who actively engage in brand communities in China.
Findings
Value co-creation practices in brand communities cultivate consumers' affective commitment and psychological brand ownership, which in turn can further contribute to consumers' brand loyalty.
Originality/value
By offering a more comprehensive insight into how affective commitment and psychological brand ownership act as intermediaries between value co-creation practices and consumers' brand loyalty, this research enhances the existing knowledge on value co-creation and brand management.
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Joern Schlimm, Sebastiano Mereu and Christoph Breuer
Over the past years, non-fungible tokens (NFTs) have sparked growing interest in the sport industry. NFTs are unique digital assets verified using blockchain technology. Each NFT…
Abstract
Purpose
Over the past years, non-fungible tokens (NFTs) have sparked growing interest in the sport industry. NFTs are unique digital assets verified using blockchain technology. Each NFT has a distinct identifier that sets it apart from other tokens, documenting its uniqueness and ownership. NFTs promise innovative growth opportunities by generating revenue via novel products such as digital collectibles which can be owned and traded on dedicated platforms. Despite this promising outlook, it currently seems unclear how sports NFTs should be designed and which features they should offer to align with consumer values, effectively meet their needs and ultimately drive Purchase Intention. This study will therefore attempt to answer the following research question: Which consumer values and consumer needs have a positive impact on PI of sports NFTs? Based on the results, the study seeks to offer advice on concrete characteristics sports NFTs should possess in order to foster mainstream adoption.
Design/methodology/approach
To address the current gap in the literature and provide an answer to the research question, this paper uses structural equation modelling exploring the impact of consumer values and consumer needs or wants on purchase intention regarding sports NFTs.
Findings
The results of this study indicate that social needs or wants (SNW) have the strongest impact on purchase intention, as well as on experiential and functional needs or wants. NFTs should therefore possess characteristics that foster community, interaction and connection with other team or athlete supporters while enhancing the overall consumer experience. Incorporating these elements into future NFTs can help sports organizations tap into the social SNW of consumers by providing opportunities for connection, interaction and collective experiences within supporter communities.
Research limitations/implications
Due to the low response rate of Baby Boomers, the results of the study cannot be applied to this cohort. Additional research, potentially using physical in-stadium surveys and targeted specifically at the BB cohort may shed light on their particular values, needs or wants and impact on sports NFT purchase intention. Moreover, Generation Z respondents may statistically be underrepresented in the sample due to the fact that only respondents aged 18 and older were included in the study. Hence, the part of Generation Z, which was born after March 2006 and had not yet come of age at the time of this research, was explicitly excluded from the survey. Results should be applied carefully to the population of sports team or athlete supporters due to the method of data collection which was based on convenience sampling and may therefore not be representative. Since the survey was exclusively administered online, people with no Internet access are not represented in this research.
Practical implications
Sports organizations and marketers can leverage the strong impact of SNW identified in this study to position their NFT portfolio accordingly. Using athletes themselves or other influencers as product ambassadors may trigger purchase intention of consumers. Additionally, it is crucial that socializing agents, such as family, friends, colleagues and other team supporters with a strong influence on consumers own or promote NFTs. Marketers can support this adoption process by encouraging testimonials, reviews and user-generated content that showcase how NFTs have positively impacted others. Reaching a critical mass of adoption among supporters as a first step will ultimately impact consumers’ desire to satisfy ENW and FNW as well. Consumers may then recognize the benefits of using NFTs to enhance their overall consumer experience and to make their lives easier, for instance by using NFTs as season tickets or to collect loyalty points they can redeem later.
Originality/value
This study is the first attempt to determine the relationship between consumer values, consumers’ needs or wants and their impact on purchase intention regarding sports NFTs.
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Akila Anantha Krishnan and Angan Sengupta
This study aims to understand investors’ reactions to news on fraud and pecuniary and regulatory action in privately owned and government-owned banks.
Abstract
Purpose
This study aims to understand investors’ reactions to news on fraud and pecuniary and regulatory action in privately owned and government-owned banks.
Design/methodology/approach
To examine the role of ownership holdings, this study deploys event study methodology and cross-sectional regression to analyze the abnormal returns and the intergroup dynamics. Event study methodology studies the abnormal return on stock prices on days when fraud, pecuniary actions and regulatory news were reported for 36 banks that are listed on the NSE. Data on news has been collected from Reuters for 110 months. Cross-sectional regression analyses are done to examine whether selected variables on bank characteristics influence the abnormal returns. Exploring the intergroup dynamics between government and privately owned banks helps to accentuate how stakeholders influence investor responses.
Findings
Private and government-owned banks display an anomalous return pattern during the events, though to varying degrees and for a longer duration. The sharp downturn observed in private banks in response to pecuniary and regulatory actions related to news can be attributed to the associated risk of these banks. Intergroup dynamics further demonstrate that the effect of such news regarding government-owned bank stocks is more pronounced on privately owned banks compared to the effect of news related to privately owned banks on public banks.
Originality/value
The study shows how ownership structure variedly impacts investors’ response to news related to fraud, and pecuniary and regulatory actions on Indian banks, which may eventually ask for customized investment approaches for government-owned and privately owned banks.
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Sonia M. Strano, Isabel C. Botero, Tomasz A. Fediuk and Vincenzo Pisano
Mergers and acquisitions (M&As) are a critical time for organizations and their consumers. For the company, there are many financial and non-financial risks. For customers, it…
Abstract
Purpose
Mergers and acquisitions (M&As) are a critical time for organizations and their consumers. For the company, there are many financial and non-financial risks. For customers, it requires deciding whether or not to continue the relationship that they had with the previous firm. This paper explores the extent to which communicating the family business (FB) brand, and the previous reputation of the acquirer affects customer perceptions and intentions after an M&A event.
Design/methodology/approach
Data for this study were collected from 159 Italian participants. We used a 2 (Communication of FB brand: Yes vs. No) by 3 (Reputation: positive, neutral, negative) between subjects’ experiment to test how the communication of the FB brand and the reputation of the acquirer affected perceived trustworthiness and service quality, and how this, in turn, influenced customer purchase intentions.
Findings
We find that communicating the FB brand does not influence consumer perceptions and intentions toward the acquired company. However, the previous reputation of the acquiring firm is critical in influencing consumer perceptions and intentions to buy.
Originality/value
Our study continues the growing research on M&A in family firms. It also increases our understanding of the boundary conditions of the FB brand effects, and the relevance that the previous reputation of a family firm can have in M&A scenarios. Finally, our study introduces the “Halo” and “Velcro” effects into the FB literature.
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Margaret MacQueen, Michael Lawson and Wen-Nyi Ding
In the UK, responses to intense weather events regarding national and regional level perils include the support of a General Insurance policy at the address level as part of…
Abstract
Purpose
In the UK, responses to intense weather events regarding national and regional level perils include the support of a General Insurance policy at the address level as part of private residential and other insurance policies covering the key risks of flooding, subsidence and windstorm. In respect of the subsidence peril, dry summers can lead to many thousands of properties on shrinkable clay soils suffering differential downward movement as water is abstracted from the soil by vegetation. These events are forecast to increase in frequency and severity due to climate change, with costs for a dry event year of more than £500m to UK insurers. Assessing the character of these event years can inform government, local government, insurers and their agents as to the typical characteristics of an event year and its impacts. The purpose of this paper is to provide a comprehensive overview of the 2018 UK subsidence event year as it relates to trees and low rise buildings.
Design/methodology/approach
The research material is taken from claims that originated within the period commencing in the Summer of 2018, which in the UK was dry and with high levels of claim notification, and is from the private database of Property Risk Inspection Limited, one of the largest UK specialist subsidence claims handling businesses.
Findings
The data clearly illustrates the wide range of vegetative species causing or contributing to claims in the UK, their age ranges, sizes and conditions, management options and the range of land uses and statutory controls that exist in relation to title and other boundaries.
Originality/value
There have been various small-scale studies looking at individual cases of subsidence and the impacts of vegetation, but there have been no detailed investigations of large-scale claims-driven events such as the 2018 surge. The importance of this population-level investigation will only increase given the modelling for increased hot and dry summers over the coming decades.
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Sajjad Zaheer and Sweder van Wijnbergen
This study aims to analyze three major defaults on Sukuk since 2007. These case studies make clear that, in most cases, the problems can be traced back to clauses and structures…
Abstract
Purpose
This study aims to analyze three major defaults on Sukuk since 2007. These case studies make clear that, in most cases, the problems can be traced back to clauses and structures that made the Sukuk more like conventional bonds. The case studies highlighted the importance of the legal institutions of the country where ownership rights are likely to be contested. Strict adherence to Shariah (Islamic Jurisprudence) principles would have considerably simplified restructuring because Shariah compliance implies a clear allocation of property rights: in Sukuk, investors will receive full title to the underlying Sukuk assets in distress situations.
Design/methodology/approach
The study follows a qualitative research method base on detailed case studies of the Sukuk defaults occurred in the aftermath of financial crises 2007. The focus in this paper is on the resolution process following default, not on the reasons why the default was triggered to begin with. The authors analyze the Sukuk defaults from an Islamic finance perspective. Specifically, after providing basic information on each Sukuk (issuer, arranger, SPV, term period, rate of return, etc.), the authors present an exposition of the underlying contracts of each Sukuk, their structure, reasons for defaults and restructuring process thereafter. Finally, the authors provide a discussion on the critical issues related to Sukuk structures, namely, ownership of underlying Sukuk assets, rights of the investors including recourse, if any, to core assets in case of distress, risk factors including legal and Shariah risks regarding Sukuk structures, purchase undertakings and credit enhancements.
Findings
The case studies highlighted the importance of the legal institutions of the country where ownership rights are likely to be contested. Interestingly enough, strict adherence to Shariah (Islamic Jurisprudence) principles would have considerably simplified restructuring because Shariah compliance implies a clear allocation of property rights: in Sukuk, investors will receive full title to the underlying Sukuk assets in distress situations. So, the answer to the question the authors asked, is Islamic Finance failing to deliver on its promises, is a qualified no.
Originality/value
The paper provides in depth analysis of the Sukuk defaults and provide the main reasons for that along with recommendations that compliance to Shariah principles of ownership and risk sharing would reduce incidence of defaults and facilitates restructuring.
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Akindele Babatunde Omotesho and Ayodeji Michael Obadire
This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019.
Abstract
Purpose
This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019.
Design/methodology/approach
The study used the estimated expected returns method to identify abnormal returns during the deal announcement period, applying event study analysis with both univariate and multivariate regression models to detect cumulative abnormal returns around the announcement timeframe.
Findings
The results show a short-term positive return increase for acquiring firms, controlling for deal-specific characteristics like target firm location and payment methods. The authors observed a preference for cash financing across domestic and cross-border transactions. Multivariate analysis revealed insignificance between payment methods and deal characteristics like cross-border acquisitions and diversification.
Research limitations/implications
The study’s focus on publicly traded firms in the UK and the absence of a comparative analysis across different regions and markets limits the sample size and may impact the generalizability of findings.
Practical implications
The study proposes three practical implications. Firstly, firms should tailor payment methods to each transaction, aligning with strategic goals to optimize value and mitigate risks. Secondly, decision-makers must prioritize comprehensive due diligence and strategic alignment throughout M&A processes to enhance success and maximize synergies. Finally, analysing broader strategic contexts and regulatory landscapes when structuring transactions enables goal attainment, such as market expansion or value creation.
Social implications
The study’s findings can promote transparency and accountability among corporate decision-makers in M&A transactions. Stakeholders can advocate for transparent decision-making processes, enhancing trust in corporate governance.
Originality/value
This study provides valuable insights into the impact of payment methods on shareholder value in M&A transactions involving UK companies, informing strategic decision-making and contributing to the understanding of corporate finance dynamics.
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Salah Alhammadi, Simon Archer and Dalal Aloumi
Despite the growing prevalence of Sukuk issuances, there remains a significant knowledge gap concerning their specific risk exposures to originators of issuances rather than to…
Abstract
Purpose
Despite the growing prevalence of Sukuk issuances, there remains a significant knowledge gap concerning their specific risk exposures to originators of issuances rather than to investors, particularly compared to conventional bonds, and the implications of this for the corporate governance (CG) of originators. This study aims to examine the risks faced by originators and sponsors of Sukuk issuances, drawing insights from unique Sukuk case studies. The distinct characteristics of Sukuk include legal intricacies and Shari’ah compliance, which pose particular challenges to originators. Effective risk management is a key issue for CG in these areas.
Design/methodology/approach
A sequential explanatory case study method is employed, utilising the content analysis approach to extract information from various articles, reports and Sukuk case studies, including Tamweel Residential Mortgage Backed Sukuk and Tamweel Sukuk Limited.
Findings
The findings underscore the critical issues for originators in navigating risks within Sukuk structures, particularly concerning Shari’ah non-compliance and default risk. This highlights the importance of managing risks inherent in Sukuk structures, considering both Shari’ah compliance obligations and the sustainability of Sukuk in terms of default risk. Default scenarios raise unique questions regarding stakeholders' interests, specifically those of shareholders, investors and creditors, contingent on the Sukuk issuance's structure and contractual basis of the Sukuk issuance.
Practical implications
The need for a CG framework conducive to the effective management of these risks, thereby ensuring both Shari’ah compliance and long-term viability, which is crucial for the sustainable growth of Sukuk in the financial landscape.
Originality/value
This study offers a unique perspective by focusing on the risks faced by originators of Sukuk issuances, a largely unexplored area, and underscores the importance of effective risk management for CG and sustainability of Sukuk issuances.
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Kai-Yu Wang, Abdul Rehman Ashraf, Narongsak Thongpapanl and Idaf Iqbal
This study proposes a framework that demonstrates how the perceived value of augmented reality (AR) shopping influences the formation of psychological ownership of product and…
Abstract
Purpose
This study proposes a framework that demonstrates how the perceived value of augmented reality (AR) shopping influences the formation of psychological ownership of product and technology. The mediating role of flow experience and the moderating role of perceived control are identified.
Design/methodology/approach
An online survey study recruiting 480 participants who experienced AR shopping was conducted to test the hypotheses.
Findings
Functional value is negatively related to psychological ownership of product and technology whereas emotional value shows opposite effects. Flow experience mediates the relationships between functional/emotional value and psychological ownership of product and technology. Perceived control moderates the relationship between emotional value and flow experience, as well as the relationship between functional/emotional value and psychological ownership of product and technology.
Practical implications
The findings suggest the importance of AR’s functional and emotional values in developing psychological ownership of product and technology. To mitigate the negative effect of functional value, AR designers should focus on creating emotionally engaging apps that induce a flow experience, thereby enhancing psychological ownership. Furthermore, AR apps should be designed to empower users with a sense of control in the AR experience.
Originality/value
This research contributes to the AR and psychological ownership literature. It introduces a model that can explain both the formation of psychological ownership of product and psychological ownership of technology, thereby expanding the current understanding. By adding perceived values as antecedents of psychological ownership, it enriches the psychological ownership literature. Moreover, it enhances the flow experience literature by demonstrating the role of flow experience in the formation of psychological ownership of product and technology.
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Clawback provisions entitle shareholders to recover previously awarded incentive compensation after the discovery of accounting manipulation or misconduct. The author evaluates…
Abstract
Purpose
Clawback provisions entitle shareholders to recover previously awarded incentive compensation after the discovery of accounting manipulation or misconduct. The author evaluates the impact of clawback enforcement heterogeneity on the horizon of executive compensation.
Design/methodology/approach
The author provides empirical tests to evaluate the impact of clawback adoption decisions. The author deals with the endogeneity of clawback adoption decisions through an instrumental variables strategy that exploits the transmission of governance choices within firms’ networks.
Findings
While the author finds that clawback adoption reduces the frequency of accounting manipulation, this reduction is accompanied by heterogeneous effects on the horizon of executive pay across firms. Clawback adopters with high director independence, high leverage, high managerial termination payments and low executive ownership tilt their compensation toward the short-term.
Practical implications
The results, robust to alternative specifications, suggest that clawbacks allow strong-enforcement firms to tilt compensation toward the short-term, offsetting some of the direct manipulation disincentives generated by the clawback. The stock market reacts positively to the adoption in firms with weak enforcement, suggesting that clawbacks significantly reduce the managers’ rent-extraction capacity.
Originality/value
Using a novel empirical and identification approach, the results suggest that clawbacks allow strong-enforcement firms to tilt compensation toward the short-term, offsetting some of the direct manipulation disincentives generated by the clawback.
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