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21 – 30 of over 76000Sees the objective of teaching financial management to be to helpmanagers and potential managers to make sensible investment andfinancing decisions. Acknowledges that financial…
Abstract
Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.
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Peter J. McGoldrick, Erica J. Betts and Kathy A. Keeling
In spite of their importance within pricing strategies, “seasonal sales” have received little attention within the literature. The recent interest in “high‐low” pricing has…
Abstract
In spite of their importance within pricing strategies, “seasonal sales” have received little attention within the literature. The recent interest in “high‐low” pricing has, however, increased the attention given to temporal shifts in store‐wide, rather than item level, prices. Following a brief review, this paper draws upon two case studies of leading retailers of apparel in the UK. Evidence is also presented from audits of pricing and markdown activities over a three‐year period, illustrating some contrasts between stated strategies and actual pricing activities. A cost‐benefit analysis of high‐low pricing requires knowledge of consumer preferences and attitudes. Results are drawn from a study of over 2,600 “sale” shoppers, indicating stated preferences for markdown frequency, depth and coverage. In general “sale” shoppers appear to prefer a variety of markdown levels, increasing their scope to succeed as bargain hunters.
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Woei-Chyuan Wong, Janice Yim Mei Lee, MD Nasir Daud and Pooi Leng Ng
The purpose of this paper is to examine the determinants of property sale probability and sale price at auction in Kuala Lumpur, Malaysia.
Abstract
Purpose
The purpose of this paper is to examine the determinants of property sale probability and sale price at auction in Kuala Lumpur, Malaysia.
Design/methodology/approach
A two-stage Heckman sample selection model is used for this research. The first stage involves the estimation of a probit model on a successful sale. The second stage introduces an additional selection variable, the inverse Mills ratio, as an explanatory variable to the sale price estimation equation.
Findings
The authors find that Chinese-owned auctioned properties have higher sale probability and are sold at higher prices as compared to Indian and Malay-auctioned properties. Properties auctioned by the largest auction house outperformed other smaller auctioneers. Auction characteristics such as proximity to the city center, number of previous auction attempts and number of online viewers are positively related to sale price and sale probability.
Social implications
The findings on the substantially lower sale price obtained by Malay and Indian borrowers compared to their Chinese counterparts imply that it is much harder for these borrowers to be relieved from financial distress. The two plausible explanations offered in this paper for this price differential, i.e. racial residential segregation and ownership restriction, warrant further study.
Originality/value
First, the authors consider the explanatory power of seller ethnicity, number of online viewers and auctioning route which are new to the literature. Second, they use a Heckman model that addresses possible selection bias of sold properties. This methodology is unexplored in the auction literature.
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Fumiyo N. Kondo and Genshiro Kitagawa
Access to daily store level scanner data has been increasingly easier in recent years in Japan and time series analysis based on a sales response model is becoming realistic…
Abstract
Access to daily store level scanner data has been increasingly easier in recent years in Japan and time series analysis based on a sales response model is becoming realistic. Introduces a new method of combining time series analysis and regression analysis on the price promotion effect, which enables simultaneous decomposition of store level scanner sales into trend (including seasonality), day‐of‐the‐week effect and explanatory variable effect due to price promotion. The method was applied to daily store level scanner sales of milk, showing evidence of the existence of day‐of‐the‐week effect. Further, a method of incorporating several kinds of price‐cut variables in regression analysis and the analyzed results were presented.
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Paul Gallimore and Marvin Wolverton
Explains that bias in human problem‐solving behaviour may sometimes conflict with the assumptions that underlie normative models of valuation. Possibilities include faulty…
Abstract
Explains that bias in human problem‐solving behaviour may sometimes conflict with the assumptions that underlie normative models of valuation. Possibilities include faulty perceptions of the task, routinized valuation procedures that rely heavily on pending sale price‐knowledge and reliance on innate and distorting problem‐solving heuristics. Describes an experiment conducted with appraisers in the USA and valuers in the UK to investigate the impact of price knowledge on the process of valuation and the search and selection of comparable sales. Concludes that both appraisers and valuers can be subject to price‐knowledge bias, reflected in the choice of the less than “best” comparables and in the actual value estimate. Discusses how cultural differences in the appraisal and valuation processes, especially in the transparency of comparables adjustments, help to explain these effects.
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The purpose of this paper is to capture the dynamic variations in sales of a product based upon the dynamic estimation of the time series data and propose a model that imitates…
Abstract
Purpose
The purpose of this paper is to capture the dynamic variations in sales of a product based upon the dynamic estimation of the time series data and propose a model that imitates the price discounting and promotion strategy for a product category in a retail organization. A modest attempt has been made in the study to capture the relationship between the sales promotion, price discount and the batch procurement strategy of a particular product category to maximize sales volume and profitability.
Design/methodology/approach
Time series data relating to sales have been used to model the sales estimates using moving average and proportional and derivative control; thereafter a sales forecast is generated to estimate the sales of a particular product category. This provides valuable inputs for taking lot sizing decisions regarding procurement of the products that considerably impact the sales promotion and intelligent pricing decisions. A conceptual framework is developed for modeling the dynamic price discounting strategy in retail using fuzzy logic.
Findings
The model captures the lag effect of sales promotion and price discounting strategy; other strategies have been formulated based upon the sales forecast that was done for taking the lot sizing decisions regarding procurement of products in the selected category. This has helped minimize the inventory cost thereby keeping the profitability of the retail organization intact.
Research limitations/implications
There is no appropriate empirical data to verify the models. In light of the research approach (modeling based upon historical time series data of a particular product category) that was undertaken, there is a possibility that the research results may be valid for the product category that was selected. Therefore, the researchers are advised to test the proposed propositions further for other product categories.
Originality/value
The study provides valuable insight on how to use the real-time sales data for designing a dynamic automated model for product sales promotion and price discounting strategy using fuzzy logic for a retail organization.
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To determine if the ancient Chinese tradition of Feng Shui affects residential property prices in a Western setting (“Western” and “the West” refers to the cultures and peoples of…
Abstract
Purpose
To determine if the ancient Chinese tradition of Feng Shui affects residential property prices in a Western setting (“Western” and “the West” refers to the cultures and peoples of the mainlands Europe, the Americas, Australia, and New Zealand.)
Design/methodology/approach
Two approaches were adopted to measure the impact of Feng Shui design principles on property prices. First, a case study approach using a paired sales analysis was adopted to compare sales transaction prices of Feng Shui designed condominiums with sales prices of condominiums that were built without this design feature. Second, sales transaction data were analysed using multiple regression analysis in a hedonic pricing framework.
Findings
The results were mixed but provide preliminary evidence that Feng Shui impacts positively on property prices in the West.
Research limitations/implications
Firstly, the units were sold as “designer ready”. Prices for these units exclude floor coverings, painting, kitchen and bathroom fittings, appliances, counter tops and plumbing fixtures. A more precise adjustment was not able to be made as the actual build‐out cost for each unit was not available. However, it was felt that the average rate was a reasonable proxy for the cost of a build‐out. Secondly, the case study includes sales of Feng Shui designed units in only one building. A more reliable result would have been achieved had the data set included several buildings constructed using the principles of Feng Shui.
Practical implications
With the rise in popularity of the use of Feng Shui design in Western homes, understanding the effects of this on property values is important to both property valuers and investors of such property.
Originality/value
Research on the impact of cultural beliefs on residential property values in the West is limited. This paper provides a contribution to understanding the value affects of such beliefs, specifically those relating to Feng Shui.
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Joe T.Y. Wong and Eddie C.M. Hui
The purpose of this paper is to examine the behavior of buyers and sellers in making housing decision and analyses the mechanisms of the seller‐buyer interaction affecting house…
Abstract
Purpose
The purpose of this paper is to examine the behavior of buyers and sellers in making housing decision and analyses the mechanisms of the seller‐buyer interaction affecting house sale prices.
Design/methodology/approach
The research methodology relies on a cross‐sectional telephone survey and the statistical analysis of housing transactions in Hong Kong.
Findings
The list price is unimportant to the formation of the sale price. Rather buyer‐seller interactions affect housing prices. The list price is positively related to the number of revisions, and the size of reduction, in the list price, and the list period, but negatively related to the sale‐to‐list‐price ratio. Overpriced properties trigger larger price reductions, noticeably, in the first round of negotiation, and stay on the market longer. Short negotiation periods and time‐till‐sale, and a sale at a marginal reduction in the list price is expected by market participants and conforms with the historical sales data. Hence, market expectations are generally fulfilled and support rationality in a steady market.
Research limitations/implications
There are sample size limitations, which might bias the results and weaken the generalizability. The limited housing transactions may not be representative of the population at large.
Practical implications
When the market conditions are moderate, offering the property for sale at close to its current market value would determine the best possible selling price.
Originality/value
Telephone surveys on home buyer‐seller interactions and critical analysis of sale records are extremely rare in Hong Kong. The paper illustrates how, in times of moderate economic conditions and housing prices, the strategic negotiation process will rationally bring the selling price close to the market value price.
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This study delves into the nuanced implications of short-sale constraints on stock prices within the context of stock market efficiency. While existing research has explored this…
Abstract
Purpose
This study delves into the nuanced implications of short-sale constraints on stock prices within the context of stock market efficiency. While existing research has explored this relationship, inconsistencies persist in their findings. The purpose of this study is to conduct a comprehensive review of literature to elucidate the reasons behind these disparities.
Design/methodology/approach
A systematic review of existing theoretical and empirical studies was conducted following the PRISMA method. The analysis centered on discerning the factors contributing to the divergence in projected stock prices due to these constraints. Key areas explored included assumptions related to expectations homogeneity, revisions, information uncertainty, trading motivations and fluctuations in supply and demand of risky assets.
Findings
The review uncovered multifaceted reasons for the disparities in findings regarding the influence of short-sale constraints on stock prices. Variations in assumptions related to market expectations, coupled with fluctuations in perceived information uncertainty and trading motivations, were identified as pivotal factors contributing to differing projections. Empirical evidence disparities stemmed from the use of proxies for short-sale constraints, varied sample periods, market structure nuances, regulatory changes and the presence of option trading.
Originality/value
This study emphasizes the significance of not oversimplifying the impact of short-sale constraints on stock prices. It highlights the need to understand these effects within the broader context of market structure and methodological considerations. By delineating the intricate interplay of factors affecting stock prices under short-sale constraints, this review provides a nuanced perspective, contributing to a more comprehensive understanding in the field.
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Aimin Wang, Sadam Hussain and Jiying Yan
The purpose of this study is to conduct a thorough empirical investigation of the intricate relationship between urban housing sales prices and land supply prices in China, with…
Abstract
Purpose
The purpose of this study is to conduct a thorough empirical investigation of the intricate relationship between urban housing sales prices and land supply prices in China, with the aim of elucidating the underlying economic principles governing this dynamic interplay.
Design/methodology/approach
Using monthly data of China, the authors use the asymmetry nonlinear autoregressive distributed lag (NARDL) model to test for nonlinearity in the relationship between land supply price and urban housing prices.
Findings
The empirical results confirm the existence of an asymmetric relationship between land supply price and urban housing prices. The authors find that land supply price has a positive and statistically significant impact on urban housing prices when land supply is increasing. Policymakers should strive to strike a balance between safeguarding residents’ housing rights and maintaining market stability.
Research limitations/implications
Although the asymmetric effect of land supply price has been identified as a significant contributor in this study, it is important to note that the research primarily relies on time series data and focuses on analysis at the national level. Although time series data offer a macroscopic perspective of overall trends within a country, they fail to adequately showcase the structural variations among different cities.
Practical implications
To ensure a stable housing market and meet residents’ housing needs, policymakers must reexamine current land policies. Solely relying on restricting land supply to control housing prices may yield counterproductive results. Instead, increasing land supply could be a more viable option. By rationally adjusting land supply prices, the government can not only mitigate excessive growth in housing prices but also foster the healthy development of the housing market.
Originality/value
First, the authors have comprehensively evaluated the impact of land supply prices in China on urban housing sales prices, examining whether they play a facilitating or mitigating role in the fluctuation of these prices. Second, departing from traditional linear analytical frameworks, the authors have explored the possibility of a nonlinear relationship existing between land supply prices and urban housing sales prices in China. Finally, using an advanced NARDL model, the authors have delved deeper into the asymmetric effects of land supply prices on urban housing sales prices in China.
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