Search results

1 – 10 of over 10000
To view the access options for this content please click here
Article
Publication date: 29 May 2020

Jianyu Zhao, Anzhi Bai, Xi Xi, Yining Huang and Shanshan Wang

Malicious attacks extremely traumatize knowledge networks due to increasing interdependence among knowledge elements. Therefore, exposing the damage of malicious attacks…

Abstract

Purpose

Malicious attacks extremely traumatize knowledge networks due to increasing interdependence among knowledge elements. Therefore, exposing the damage of malicious attacks to knowledge networks has important theoretical and practical significance. Despite the insights being offered by the growing research stream, few studies discuss the diverse responses of knowledge networks’ robustness to different target-attacks, and the authors lack sufficient knowledge of which forms of malicious attacks constitute greater disaster when knowledge networks evolve to different stages. Given the irreversible consequences of malicious attacks on knowledge networks, this paper aims to examine the impacts of different malicious attacks on the robustness of knowledge networks.

Design/methodology/approach

On the basic of dividing malicious attacks into six forms, the authors incorporate two important aspects of robustness of knowledge networks – structure and function – in a research framework, and use maximal connected sub-graphs and network efficiency, respectively, to measure structural and functional robustness. Furthermore, the authors conceptualize knowledge as a multi-dimensional structure to reflect the heterogeneous nature of knowledge elements, and design the fundamental rules of simulation. NetLogo is used to simulate the features of knowledge networks and their changes of robustness as they face different malicious attacks.

Findings

First, knowledge networks gradually form more associative integrated structures with evolutionary progress. Second, various properties of knowledge elements play diverse roles in mitigating damage from malicious attacks. Recalculated-degree-based attacks cause greater damage than degree-based attacks, and structure of knowledge networks has higher resilience against ability than function. Third, structural robustness is mainly affected by the potential combinatorial value of high-degree knowledge elements, and the combinatorial potential of high-out-degree knowledge elements. Forth, the number of high in-degree knowledge elements with heterogeneous contents, and the inverted U-sharp effect contributed by high out-degree knowledge elements are the main influencers of functional robustness.

Research limitations/implications

The authors use the frontier method to expose the detriments of malicious attacks both to structural and functional robustness in each evolutionary stage, and the authors reveal the relationship and effects of knowledge-based connections and knowledge combinatorial opportunities that contribute to maintaining them. Furthermore, the authors identify latent critical factors that may improve the structural and functional robustness of knowledge networks.

Originality/value

First, from the dynamic evolutionary perspective, the authors systematically examine structural and functional robustness to reveal the roles of the properties of knowledge element, and knowledge associations to maintain the robustness of knowledge networks. Second, the authors compare the damage of six forms of malicious attacks to identify the reasons for increased robustness vulnerability. Third, the authors construct the stock, power, expertise knowledge structure to overcome the difficulty of knowledge conceptualization. The results respond to multiple calls from different studies and extend the literature in multiple research domains.

Details

Journal of Knowledge Management, vol. 24 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 12 February 2020

Mohamed Dawood Shamout

By drawing on knowledge-based view, this paper aims to test causal model linking supply chain analytics, innovation, robustness capability and firm age. More specifically…

Abstract

Purpose

By drawing on knowledge-based view, this paper aims to test causal model linking supply chain analytics, innovation, robustness capability and firm age. More specifically, the mediating role of supply chain innovation on supply chain analytics and robustness capability link and the moderating role of firm age.

Design/methodology/approach

Survey data were procured from companies operating in the United Arab Emirates using a simple random sampling technique. The obtained data were analyzed with variance-based structural equation modeling (PLS-SEM).

Findings

The findings from PLS-SEM revealed that supply chain innovation fully mediate supply chain analytics and robustness capability associations. Findings from multi-group analysis (MGA) denote that firm age did not moderate any of the paths of the research model. Suggesting that the associations are similar for old, mid-aged and younger firms.

Originality/value

This work demonstrates that supply chain analytic is valuable tool that can foster innovation and robustness in supply chain. This work is among the first to scrutinize the variation among old, mid-aged and younger firms in supply chain analytics research stream. The paper concludes with implications for theory and practice.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 51 no. 1
Type: Research Article
ISSN: 2059-5891

Keywords

To view the access options for this content please click here
Book part
Publication date: 30 August 2019

Joshua C. C. Chan, Liana Jacobi and Dan Zhu

Vector autoregressions (VAR) combined with Minnesota-type priors are widely used for macroeconomic forecasting. The fact that strong but sensible priors can substantially…

Abstract

Vector autoregressions (VAR) combined with Minnesota-type priors are widely used for macroeconomic forecasting. The fact that strong but sensible priors can substantially improve forecast performance implies VAR forecasts are sensitive to prior hyperparameters. But the nature of this sensitivity is seldom investigated. We develop a general method based on Automatic Differentiation to systematically compute the sensitivities of forecasts – both points and intervals – with respect to any prior hyperparameters. In a forecasting exercise using US data, we find that forecasts are relatively sensitive to the strength of shrinkage for the VAR coefficients, but they are not much affected by the prior mean of the error covariance matrix or the strength of shrinkage for the intercepts.

Details

Topics in Identification, Limited Dependent Variables, Partial Observability, Experimentation, and Flexible Modeling: Part A
Type: Book
ISBN: 978-1-78973-241-2

Keywords

To view the access options for this content please click here
Article
Publication date: 3 December 2018

Jamal Abu-Serdaneh

The purpose of this paper is to investigate if Jordanian banks using provision accounts as a technique to smooth income, manage capital ratio, signal future earning and…

Abstract

Purpose

The purpose of this paper is to investigate if Jordanian banks using provision accounts as a technique to smooth income, manage capital ratio, signal future earning and test other determinants affecting provision accounts.

Design/methodology/approach

The study was conducted on all Jordanian listed banks, and it covers the period 2005-2014. Different models are applied to test the dependent variables (loan loss provision [LLP] accounts) and its effects on different explanatory variables by using several statistical techniques (e.g. multiple regression).

Findings

The results show that there is no conclusive evidence supports that Jordanian banks used provision to smooth income, manage capital ratio or engage in pro-cyclical behavior. However, a positive and significant effect between one year ahead change in earnings and loan loss allowance, indicating that banks may use provisions to signal future positive changes in earnings. In addition, the results show that loan-to-asset ratio and beginning loan loss allowance have positive effect on provision accounts.

Practical implications

The results of this study are useful in assisting the regulators (e.g. US Securities and Exchange Commission, central bank) in efforts toward improving the quality of the reported financial reporting in the banking industry and focus on LLP management motivations. This study gives shareholders further insight which enables them to better understand the actions of managers and thus increase their control over their investments. Additionally, auditors should be aware of different incentives for using LLP as a tool of earnings management to be able to detect eventual manipulation of accounting earnings.

Originality/value

Banking in is one of the most stringently regulated of sectors and, furthermore, has a major impact on other sectors and on economic growth in general. In view of such importance, this study focuses on the banking industry and contributes to the literature in several ways. First, it represents the first known study, to the best of author knowledge, which examines if Jordanian banks use LLP accounts as a tool to smooth income and/or to manage capital. Second, unlike most existing research, which usually studies one aspect of LLP, this study focuses on four main motivations influencing provision accounts in the banks of Jordan. Third, additional tests were carried out to check the robustness of results, for example, sensitivity analysis is used to examine the change of findings by repeating of tests after using different proxies. Fourth, as a difference from other studies, this study investigates the effects of global financial crisis of 2008 on income smoothing behavior of Jordanian banking sector. Fifth, this paper provides a timely contribution to the continuous debate of the effect of LLP on earnings management in a poorly exploited setting, emerging market context.

Details

Journal of Financial Reporting and Accounting, vol. 16 no. 4
Type: Research Article
ISSN: 1985-2517

Keywords

To view the access options for this content please click here
Article
Publication date: 3 October 2019

Stephan Fuhrmann

This paper aims to unite firm- and country-level drivers of the disclosure of integrated reports. It creates a synopsis of voluntary disclosure, signaling, proprietary…

Abstract

Purpose

This paper aims to unite firm- and country-level drivers of the disclosure of integrated reports. It creates a synopsis of voluntary disclosure, signaling, proprietary cost, legitimacy, stakeholder and institutional theory.

Design/methodology/approach

The empirical analyses build on a logistic regression model examining the disclosure decisions for integrated reports published between 2012 and 2016 by the 2,000 largest listed companies worldwide.

Findings

The results indicate that the disclosure of integrated reports by large listed companies is explained in parallel by multiple theories, operationalized by the firm-level characteristics of lower profitability, a higher market-to-book value, lower leverage, lower level of industry concentration and higher social performance. Additionally, the country-level characteristics of civil law setting and lower investor protection, lower power distance and lower masculinity coincide with the disclosure of integrated reports.

Originality/value

The inferences emphasize that a single theoretical framework cannot explain the decision to disclose an integrated report. Rather, a set of economic firm characteristics may lead to different disclosure decisions in different socio-economic and institutional environments.

Details

Meditari Accountancy Research, vol. 28 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

To view the access options for this content please click here
Article
Publication date: 5 November 2020

Imad Jabbouri and Hamza Almustafa

This paper aims to document the impact of corporate cash holdings on firm performance in Middle East and North African (MENA) emerging markets. The authors also examine…

Abstract

Purpose

This paper aims to document the impact of corporate cash holdings on firm performance in Middle East and North African (MENA) emerging markets. The authors also examine how the quality of national governance shapes the interaction between corporate cash holdings and firm performance.

Design/methodology/approach

The authors employ data from non-financial firms listed on the stock markets of twelve MENA countries between 2004 and 2018. The empirical model avoids the shortcomings of the prior literature by applying a dynamic framework to the relationship between cash holdings and firm performance.

Findings

This research reports a significant positive relationship between corporate cash holdings and firm performance. The results appear to be more pronounced in countries with strong national governance and more developed institutional settings. The findings demonstrate that most benefits of corporate cash holdings can be achieved under strong institutional settings. The authors argue that the positive impact that national governance has on individual firms by reinforcing investors' protection and lowering agency problems increases the added value of cash holdings.

Practical implications

The findings should encourage local authorities and policymakers to reinforce the law and instigate new regulations to strengthen the quality of national governance and restore the integrity of local markets.

Originality/value

Prior studies have largely been silent on how national governance can shape the relationship between corporate cash holdings and firm performance. This paper draws attention to this issue within the context of MENA emerging markets. To the authors' best knowledge, this is the first study that explores the interaction between cash holdings, firm performance and national governance in MENA emerging markets.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

To view the access options for this content please click here
Article
Publication date: 31 July 2018

Moataz El-Helaly, Nermeen F. Shehata and Reem El-Sherif

The purpose of this paper is to assess the association between country-level corporate governance and earnings management (EM). It aims to investigate whether the…

Abstract

Purpose

The purpose of this paper is to assess the association between country-level corporate governance and earnings management (EM). It aims to investigate whether the Governance Metrics International (GMI; acquired by Morgan Stanley Capital International in 2014) rating for national corporate governance on a country level is a significant explanatory variable for the country-level EM score or otherwise.

Design/methodology/approach

In a sample of 280 country-year observations during the period from 2000 to 2009, the paper measures national corporate governance quality using GMI ratings scores and whether the corporate governance model is Anglo Saxon or otherwise.

Findings

The findings of this study show that corporate governance is a significant indicator of lower EM levels in a country.

Practical implications

Corporate governance rating firms play a vital role in public markets. GMI provides country-level corporate governance ratings to assess the quality of corporate governance in several countries. The findings of this study show preliminary evidence that GMI ratings of corporate governance provide good guidance to investors on the quality of corporate governance in a country.

Originality/value

This paper is the first empirical attempt to examine the association between country-level corporate governance, GMI ratings for country-level corporate governance and EM.

Details

Asian Review of Accounting, vol. 26 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

To view the access options for this content please click here
Article
Publication date: 30 July 2018

Hong Kim Duong, Michael Schuldt and Giorgio Gotti

The purpose of this paper is to investigate the impact of investor sentiment on timely loss recognition by examining a sample of firms for the period 1988-2015.

Abstract

Purpose

The purpose of this paper is to investigate the impact of investor sentiment on timely loss recognition by examining a sample of firms for the period 1988-2015.

Design/methodology/approach

The authors use the accruals-based model of Ball and Shivakumar (2005) and a sentiment measure in their primary analysis. Supporting analyses include an extension of Simpson (2013) using an abnormal accruals analysis with subsamples of firms with bad news, the use of a Khan and Watts (2009) quarter firm-level measure of conservatism and an investigation of the monitoring role played by financial analysts.

Findings

The study finds that managers strategically report more losses in high sentiment periods than in low sentiment periods. This loss timing behavior results in an average 37.8 per cent increase in the acceleration of loss recognition. This study additionally finds a negative correlation between investor sentiment and abnormal accruals when managers are reporting bad news, and that a greater number of financial analysts following a firm curtails managers’ acceleration of loss recognition in high sentiment periods.

Originality/value

This study contributes to the corporate disclosure literature by showing that managers strategically recognize losses, and such behavior is more prevalent in high sentiment periods. Managers take advantage of prevailing investor sentiment to accelerate losses in high sentiment periods to mitigate market penalties from reporting bad news.

Details

Review of Accounting and Finance, vol. 17 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

To view the access options for this content please click here
Article
Publication date: 29 April 2021

Dongnyoung Kim, Inchoel Kim, Thomas M. Krueger and Omer Unsal

This article aims to examine the influence of chief executive officer (CEO) internal political beliefs on labor relations. Prior research has paid little attention to…

Abstract

Purpose

This article aims to examine the influence of chief executive officer (CEO) internal political beliefs on labor relations. Prior research has paid little attention to channels through which the internal personal value system of managers enhances or deteriorates firm value. The authors provide evidence consistent with CEOs adopting labor policies impacting incumbent management–labor relationships based upon their political ideologies.

Design/methodology/approach

The research design tests the impact of CEO political ideology on labor relation using an individual CEO’s personal information and firm affiliation, employee lawsuit information, financial contributions to candidates and committees, and firm financial information. The authors compiled a sample of 4,354 unique CEOs from 2,558 US firms that are covered by ExecuComp and used 18,404 firm-year observations for the study’s analysis. A Heckman two-stage estimation process is used to address a potential sample selection bias and match the requirements of exclusion and relevance criteria.

Findings

Findings indicate that firms led by Republican-leaning CEOs are more likely to be sued by their employees, especially for violating union rights. Moreover, the findings of the study uncovered that Republican-leaning CEOs have fewer cases dismissed or withdrawn compared to Democrat-leaning CEOs and are also less likely to settle court cases prior to trial. Results indicate that Republican-leaning CEOs are associated with more substantial decreases in firm value compared to Democrat-leaning CEOs when facing labor allegations. The authors further show that firm value is lower for all firms facing litigation, with the magnitude of the decrease being more pronounced for firms with Republican CEOs.

Research limitations/implications

Firm affiliations are identified using ExecuComp, employee lawsuit information from the National Labor Relations Board (NLRB), financial contributions to candidates and committees from the Federal Election Committee (FEC) website, and financial information from Compustat. To the extent that these websites are inaccurate, such as financial contributions being underreported, the findings reported here may understate the relationships reported in this article.

Practical implications

The authors capture CEO political ideology using political contributions. There may be other means, such as physical space and personal effort, by which one could also estimate the party and intensity of CEO political ideology. This information is unavailable.

Social implications

While presidential politics has four-year cycles, managerial finance is a daily activity. While political affiliation is most clearly measurable through monetary contributions, one can see implications of manager political leaning through their relationship with labor throughout the election cycle.

Originality/value

The analyses of this study indicate that labor unions are more likely to sponsor lawsuits and stronger allegations in firms with Republican CEOs and show that withdrawal, settlement or dismissal rates are lower when firms are managed by Republican managers, resulting in higher subsequent legal costs and potentially damaged employee morale. Also, this paper investigates whether lawsuits have a greater negative consequence on firm value when the firm is run by a Republican CEO. The authors find that lawsuits significantly lower Tobin's Q for Republican-led firms compared to companies with Democratic and apolitical CEOs. The authors further show that firm value is lower for all firms facing litigation, with the magnitude of the decrease being more pronounced for firms with Republican CEOs.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Article
Publication date: 11 May 2012

Nandini Chandar, Hsihui Chang and Xiaochuan Zheng

The purpose of this paper is to examine whether audit committee members of the board prove to be better monitors if they are also on the compensation committee, as they…

Abstract

Purpose

The purpose of this paper is to examine whether audit committee members of the board prove to be better monitors if they are also on the compensation committee, as they would be more attuned to compensation related earnings management incentives.

Design/methodology/approach

The paper uses archival data on a sample of nonfinancial S&P 500 firms representing 1,032 firm years over the period 2003‐2005, and discretionary accruals as a proxy for financial reporting quality.

Findings

Firms with overlapping audit and compensation committees have higher financial reporting quality than those without such overlap. In addition, there is an inverted U‐shaped relationship between overlapping magnitude and financial reporting quality, suggesting that there are costs as well as benefits to overlapping committees.

Practical implications

The findings on this paper have implications for recent policy deliberations on the composition of board committees in general and audit committees in particular, as they clarify the benefits of overlapping committee members.

Originality/value

Understanding the costs and benefits of the board committee structure is particularly important as boards typically operate through the use of committees. This paper contributes to this area by considering the effect of overlapping memberships on two of the most active and important board committees – the compensation and audit committees – on the monitoring effectiveness of the audit committee.

Details

Review of Accounting and Finance, vol. 11 no. 2
Type: Research Article
ISSN: 1475-7702

Keywords

1 – 10 of over 10000