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Article
Publication date: 27 July 2020

Gretha Steenkamp and Nicolene Wesson

Share repurchases are increasingly employed in South Africa. Disclosure on share repurchases in annual reports is poor, and a high percentage of share repurchases are not…

Abstract

Purpose

Share repurchases are increasingly employed in South Africa. Disclosure on share repurchases in annual reports is poor, and a high percentage of share repurchases are not announced in real time on the Johannesburg Stock Exchange (JSE). A comprehensive database of share repurchases by JSE-listed companies has been created up to 2009, but post-recession repurchase behaviour is not known. This study aims to examine South African share repurchase behaviour (activity, repurchase entity, repurchase type and transparency) in the post-recession period and compare this to the 2000–2009 period.

Design/methodology/approach

Comprehensive share repurchase data for all JSE-listed companies (excluding those in the basic materials and financial industries) were obtained by scrutinising annual reports and JSE announcements.

Findings

The repurchasing of shares reached a peak during the financial recession of 2008/2009, with share repurchases stabilising at a lower level post-recession. Repurchases executed by subsidiaries have decreased post-recession, probably owing to the introduction of dividends tax. However, 45% of the share repurchase value was not announced via the JSE (compared to 22% in 2000–2009).

Practical implications

Real-time JSE announcements of all share repurchases are required to improve transparency.

Originality/value

Owing to low announcement rates, a lack of transparency relating to share repurchases was observed in South Africa post-recession. Enhanced corporate governance requirements could improve transparency.

Details

Journal of Accounting in Emerging Economies, vol. 10 no. 3
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 19 July 2013

Biju Varkkey and Randhir Kumar

The Indian diamond cutting and polishing (CPD) industry enjoys a global leadership position, but at the same time is vulnerable to economic shifts in the global market…

Abstract

Purpose

The Indian diamond cutting and polishing (CPD) industry enjoys a global leadership position, but at the same time is vulnerable to economic shifts in the global market. Historically, such shocks have resulted in shake down of the industry, including closures, bankruptcies, job losses and labour unrest. Most recently, the vulnerability was experienced during the economic recession of 2008, which impacted both entrepreneurs and diamond workers alike. The shock elicited different adaptation strategies from individual firms. The paper aims to understand the adaptation strategies of large and formally organized diamond enterprises in Surat, India, with particular reference to “labour hoarding” as a strategy for workforce management.

Design/methodology/approach

Using case studies of four large CPD firms, the paper investigates patterns in managerial decision making pertaining to workforce management and adaptation strategies taken during recession. The authors also traced the subject companies' performance post‐recession. The tool used for data collection was semi‐structured, in‐depth interviews with entrepreneurs and human resource managers. For additional inputs and triangulation of findings, content analysis of news reports, along with interactions with several knowledgeable persons from both industry and government, were conducted.

Findings

The authors' study of the sample firms neither supports the popular notion of “workforce retention by large diamond enterprises, in spite of recession” nor the generalized statements about “massive lay‐offs by all”, as reported in popular media. The authors found that, due to recessionary pressure, there was a deep managerial dilemma in the companies about how to strike the right trade‐off between workforce retention (labour hoarding) and downsizing. The paper argues that, post‐recession, the companies whose decisions were pro‐labour retention (hoarding) oriented were able to come back in business stronger and perform better.

Originality/value

The diamond industry of India is ethno‐bound in its functioning, where community and regional/linguistic affiliations of both workers and entrepreneurs traditionally played a vital role. Therefore, the employee management practices adopted do not strictly fall within the general realm of western management practices or popular HRM frameworks. The study shows that context‐dependent employee management strategies, suiting the need for maintaining the traditional ethno‐bound values even during recessionary pressure, created long‐term positive effects for the firm.

Details

International Journal of Organizational Analysis, vol. 21 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 2 September 2014

Sheilagh Resnick, Carley Foster and Tony Woodall

– The purpose of this paper is to explore the relationship between service quality, the service encounter and the retail experience within a changing UK retail environment.

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Abstract

Purpose

The purpose of this paper is to explore the relationship between service quality, the service encounter and the retail experience within a changing UK retail environment.

Design/methodology/approach

Data were gathered from 40 customers and 20 staff of an established UK health and beauty retailer with a long-standing reputation for personal customer service. A qualitative analysis was applied using both a service quality and a customer value template.

Findings

Customers focused more on the utilitarian features of the service experience and less on “extraordinary” aspects, but service staff still perceived that the customer encounter remained a key requisite for successful service delivery.

Research limitations/implications

Recent environmental developments – involving customers, markets and retail platform structure – are challenging traditional service expectations.

Practical implications

Retailers may need to reassess the role of the service encounter as part of their on-going value proposition.

Originality/value

Limited research to date on the perception of shoppers to the service encounter in a changing retail environment and to the evolving notions of effort and convenience.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 October 2019

Saji Thazhugal Govindan Nair

The purpose of this paper is to investigate the recession effects in market efficiency of natural rubber futures contracts traded in India.

Abstract

Purpose

The purpose of this paper is to investigate the recession effects in market efficiency of natural rubber futures contracts traded in India.

Design/methodology/approach

The research draws inferences from Granger causality and Engle–Granger cointegration tests, which are administered separately on 14 year daily price data spanning into two distinct, non-overlapping time series of 2004–2008 and 2009–2017.

Findings

Analysis shows that rubber futures market is informationally efficient in price discovery. The results of cointegartion tests indicate that a long-term relationship does exist between futures and spot prices of the natural rubber in India. The recession effects in the market efficiency of rubber futures contracts are evident from the increase in optimal hedge ratios estimated with the cointegration methodology.

Research limitations/implications

The study pursues a simple cointegration methodology to assess the causal relations between spot and futures market prices in the Indian context. Future studies investigating the long-run causal relations, with error correction framework, between spot and future prices of rubber from other leading rubber producing countries can validate the findings more on this issue.

Practical implications

The research expects to pass on vital information inputs on the implications of future contracts to rubber traders for managing their portfolios. The study of this kind definitely will be a great help to farmers and exporters who are potentially interested in gaining access to a hedging vehicle.

Originality/value

The paper is unique in terms of understanding the effects of economic recession in information efficiency of futures market. Moreover, a limited number of studies have explored the functional utilities of rubber futures in emerging market context.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 5 January 2010

Scott F. Latham and Michael R. Braun

In this paper, the authors build a prescriptive framework for managers to help assess potential shifts in consumer behavior during economic recession. The framework offers a guide

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Abstract

Purpose

In this paper, the authors build a prescriptive framework for managers to help assess potential shifts in consumer behavior during economic recession. The framework offers a guide to help evaluate the extent of customer attrition risks, and to devise customer‐centric strategies to stabilize businesses in light of recessionary demand shocks.

Design/methodology/approach

The framework is built based on insights gained from surveying approximately 500 small, medium‐sized, and large businesses during the 2001‐2002 and 2007‐present recession. The executives surveyed worked in a wide array of industries, at organizations that varied in size from one person to thousands of employees.

Findings

The framework suggests that the interaction between two consumer behavior dynamics – lock‐in and utility specificity – determines the extent of customer retention and attrition to businesses experiencing recession. As such, all organizations need to assess the likelihood that their customers will alter their purchases in response to recessionary pressures. The authors provide measures to help managers anticipate shifts in buying behavior and formulate appropriate responses for customer retention and acquisition.

Originality/value

Research on effective management strategies for coping with recessions remains one of the most important but nevertheless overlooked areas in strategic management. In most instances, prescriptions fall under two broad categories – i.e. seek out inefficiencies and reduce costs. The authors contend that for companies to successfully navigate recessionary environments they need to reach beyond efficiency measures to also adopt strategies minimizing customer loss during the recession and luring back buyers post‐recession. The authors offer insights to help managers evaluate customer acquisition and retention recession.

Details

Journal of Business Strategy, vol. 31 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 17 August 2015

Pankaj Sinha and Shalini Agnihotri

This paper aims to investigate the effect of non-normality in returns and market capitalization of stock portfolios and stock indices on value at risk and conditional VaR…

Abstract

Purpose

This paper aims to investigate the effect of non-normality in returns and market capitalization of stock portfolios and stock indices on value at risk and conditional VaR estimation. It is a well-documented fact that returns of stocks and stock indices are not normally distributed, as Indian financial markets are more prone to shocks caused by regulatory changes, exchange rate fluctuations, financial instability, political uncertainty and inadequate economic reforms. Further, the relationship of liquidity represented by volume traded of stocks and the market risk calculated by VaR of the firms is studied.

Design/methodology/approach

In this paper, VaR is estimated by fitting empirical distribution of returns, parametric method and by using GARCH(1,1) with Student’s t innovation method.

Findings

It is observed that both the stocks, stock indices and their residuals exhibit non-normality; therefore, conventional methods of VaR calculation are not accurate in real word situation. It is observed that parametric method of VaR calculation is underestimating VaR and CVaR but, VaR estimated by fitting empirical distribution of return and finding out 1-a percentile is giving better results as non-normality in returns is considered. The distributions fitted by the return series are following Logistic, Weibull and Laplace. It is also observed that VaR violations are increasing with decreasing market capitalization. Therefore, we can say that market capitalization also affects accurate VaR calculation. Further, the relationship of liquidity represented by volume traded of stocks and the market risk calculated by VaR of the firms is studied. It is observed that the decrease in liquidity increases the value at risk of the firms.

Research limitations/implications

This methodology can further be extended to other assets’ VaR calculation like foreign exchange rates, commodities and bank loan portfolios, etc.

Practical implications

This finding can help risk managers and mutual fund managers (as they have portfolios of different assets size) in estimating VaR of portfolios with non-normal returns and different market capitalization with precision. VaR is used as tool in setting trading limits at trading desks. Therefore, if VaR is calculated which takes into account non-normality of underlying distribution of return then trading limits can be set with precision. Hence, both risk management and risk measurement through VaR can be enhanced if VaR is calculated with accuracy.

Originality/value

This paper is considering the joint issue of non-normality in returns and effect of market capitalization in VaR estimation.

Details

Journal of Indian Business Research, vol. 7 no. 3
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 4 January 2016

Binita Tiwari and Usha Lenka

– The purpose of this paper is to illustrate the role of psychological safety in engaging employees at times of economic recession.

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Abstract

Purpose

The purpose of this paper is to illustrate the role of psychological safety in engaging employees at times of economic recession.

Design/methodology/approach

Review of literature.

Findings

On perceiving a psychologically safe environment, employees freely share their knowledge, learn, and take risks to build their intrapreneurial abilities that would facilitate their level of engagement toward organization.

Originality/value

Focuses on employee engagement by taking into consideration the key measurements of psychological safety in post-recession.

Details

Development and Learning in Organizations: An International Journal, vol. 30 no. 1
Type: Research Article
ISSN: 1477-7282

Keywords

Article
Publication date: 15 August 2018

Sedefka V. Beck and Donka Mirtcheva Brodersen

The purpose of this paper is to examine wealth dynamics through the Great Recession along a dimension previously not studied, religious affiliation. Specifically, this paper…

Abstract

Purpose

The purpose of this paper is to examine wealth dynamics through the Great Recession along a dimension previously not studied, religious affiliation. Specifically, this paper analyzes wealth differentials and relative wealth losses among religious groups at the mean and along the wealth distribution before and after the Great Recession.

Design/methodology/approach

Drawing on data from the Panel Study of Income Dynamics and including a wide array of control variables, the paper analyzes the impact of religious affiliation groups on wealth pre- and post-Recession, using OLS, generalized least squares and quantile regression models.

Findings

The findings show that wealth differentials among religious groups exist both before and after the Recession and that wealth disparities are greater for people at the low end of the wealth distribution, who lost disproportionately more wealth across religious groups.

Social implications

The results suggest that the Great Recession further increased wealth inequality yet along another dimension, religious affiliation. These findings imply that in order to decrease wealth inequality and minimize other harmful effects of adverse macroeconomic events, religious institutions may provide education on financial management strategies, especially to those at the low end of the wealth distribution.

Originality/value

This paper is the first of its kind to build upon two bodies of literature: the research on religion and wealth and the research on wealth losses and the Great Recession. It is also the first paper to explore the religion–wealth relationship after the Great Recession and along the wealth distribution.

Details

International Journal of Social Economics, vol. 45 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 March 2011

Adèle Gritten

A paradigm shift in consumer confidence has taken place with the worst recession on record forcing people to evaluate their personal and household finances. This paper seeks to…

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Abstract

Purpose

A paradigm shift in consumer confidence has taken place with the worst recession on record forcing people to evaluate their personal and household finances. This paper seeks to explore the extent to which consumer confidence has been tarnished, and how it has evolved post‐recession. It aims to take both retrospective and prospective views on what has changed in the British psyche since the credit crunch, looking at where new confidences have been found and where old confidences have been lost, and hypothesising about the extent to which consumer behaviour will remain constant or further change against a likely backdrop of continuing financial instability.

Design/methodology/approach

This paper is based on a variety of proprietary quantitative research surveys conducted by YouGov plc.

Findings

This paper provides new insights into consumer confidence, including, but not limited to: demonstrating the harsh realities of more people being in financial difficulty now than 18 months ago, and its impact on confidence; looking at which aspects of household expenditure and budgets have been hardest squeezed, and what that means for short‐ and medium‐term futures; analysing the extent to which the generally lower level of available credit makes consumers more or less reliant on borrowing as a way of life, and the associated impact on confidence and decision making/financial planning prioritisation; exploring the real fears and concerns people have about their future finances; and exploring consumer financial hopes and aspirations in a post‐recessionary climate.

Originality/value

Findings from bespoke research offer hitherto unpublished and statistically valid results on the extent to which consumers have coped with and embraced the aftermath of the recession, and, moreover, how that might manifest itself in terms of future consumer confidence in financial services.

Details

International Journal of Bank Marketing, vol. 29 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Open Access
Article
Publication date: 13 April 2023

James Peoples, Muhammad Asraf Abdullah and NurulHuda Mohd Satar

Health risks associated with coronavirus disease 2019 (COVID-19) have severely affected the financial stability of airline companies globally. Recapturing financial stability…

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Abstract

Health risks associated with coronavirus disease 2019 (COVID-19) have severely affected the financial stability of airline companies globally. Recapturing financial stability following this crisis depends heavily on these companies’ ability to attain efficient and productive operations. This study uses several empirical approaches to examine key factors contributing to carriers sustaining high productivity prior to, during and after a major recession. Findings suggest, regardless of economic conditions, that social distancing which requires airline companies in the Asia Pacific region to fly with a significant percentage of unfilled seats weakens the performance of those companies. Furthermore, efficient operations do not guarantee the avoidance of productivity declines, especially during a recession.

Details

Emerald Open Research, vol. 1 no. 4
Type: Research Article
ISSN: 2631-3952

Keywords

1 – 10 of 258