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Article
Publication date: 1 October 2006

Sajeev Varki, Sanjiv Sabherwal, Albert Della Bitta and Keith M. Moore

The paper seeks to show that marketing and psychology literature can shed light on why investors exhibit preferences for certain price ends. The perspective adopted is…

Abstract

Purpose

The paper seeks to show that marketing and psychology literature can shed light on why investors exhibit preferences for certain price ends. The perspective adopted is that the stock market is a marketplace in which investors, as consumers, buy and sell (i.e. exchange) financial products such as stocks.

Design/methodology/approach

The paper analyzes trading data from the stock exchanges to empirically test propositions about investor behavior vis‐à‐vis certain price ends of interest derived from the marketing and psychology literature.

Findings

Investors, as consumers, favor price‐ends of 0 and 5 more than price‐ends of 9, in that they trade more frequently and more aggressively at these price ends. Further, even price ends of 0 are favored more than odd price ends of 5.

Practical implications

The results of the study shed light on how the cognitive bias of the consumer thwarts the otherwise efficient functioning of the financial market.

Originality/value

The paper uses market‐level data to gain insights into the cognitive process of the individual investor, in addition to teasing out specific biases that have not been identified earlier in the literature. It extends the study of consumer behavior to non‐traditional, but consequential, marketplaces such as the stock market.

Details

Journal of Product & Brand Management, vol. 15 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

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Book part
Publication date: 1 November 2018

Bobby Alexander, Stephen P. Ferris and Sanjiv Sabherwal

This study examines whether dividend payout, an internal corporate governance mechanism, is a substitute for or an outcome of product market competition, an external…

Abstract

This study examines whether dividend payout, an internal corporate governance mechanism, is a substitute for or an outcome of product market competition, an external corporate governance mechanism. The sample includes firms in six of the world’s most prominent economies. We find that firms in more competitive industries pay less in the way of dividends to their shareholders, which is consistent with the notion that dividends and competition are substitutes. We also determine that the above negative relationship is weaker in countries with stronger regulation protecting minority shareholders against corporate self-dealing. Furthermore, the relationship has attenuated following the passage of the Sarbanes-Oxley Act that increased regulation and enhanced governance standards. Collectively, our findings provide consistent evidence across countries that the two corporate governance mechanisms examined in the study are substitutes, and greater regulation weakens the substitution effect. Our empirical findings are robust to alternative measures of dividend payout, industry definition, and shareholder protection.

Details

International Corporate Governance and Regulation
Type: Book
ISBN: 978-1-78756-536-4

Keywords

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Book part
Publication date: 9 December 2013

Hyung-Suk Choi, Stephen P. Ferris, Narayanan Jayaraman and Sanjiv Sabherwal

To determine what role overconfidence plays in the forced removal of CEOs internationally.

Abstract

Purpose

To determine what role overconfidence plays in the forced removal of CEOs internationally.

Design/Methodology

The study makes use of the Fortune Global 500 list.

Findings

We find that overconfident CEOs face significantly greater hazards of forced turnovers than their non-overconfident peers. Regardless of important differences in culture, law, and corporate governance across countries, overconfidence has a separate and distinct effect on CEO turnover. Overconfident CEOs appear to be at greater risk of dismissal regardless of where in the world they are located. We also discover that overconfident CEOs are disproportionately succeeded by other overconfident CEOs, regardless of whether they are forcibly removed or voluntarily leave office. Finally, we determine that the dismissal of overconfident CEOs is associated with improved market performance, but only limited enhancement in accounting returns.

Originality/Value

This study is unique with its examination of overconfidence among global CEOs rather than being limited to U.S. chief executives. It also provides insight into how overconfidence is related to national cultures, legal systems and corporate governance mechanisms.

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

Keywords

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Article
Publication date: 9 May 2008

Sanjiv Sabherwal, Salil K. Sarkar and Ying Zhang

The purpose of this paper is to examine stocks that are most actively discussed by online posters and see if the messages posted about these stocks have information or if…

Abstract

Purpose

The purpose of this paper is to examine stocks that are most actively discussed by online posters and see if the messages posted about these stocks have information or if they are just noise.

Design/methodology/approach

This study uses messages posted on TheLion.com, which reports a real time list of the ten most actively discussed stocks. The stocks in this list at the daily market close during 2005‐2006 are examined. An event study is performed to estimate the daily abnormal returns on these stocks. Contemporaneous and lead–lag regressions of abnormal returns against message posting activities are performed.

Findings

Online posters prefer thinly traded micro‐cap stocks. On average, there is an abnormal return of 19.4 per cent on a stock the day it is one of the ten most talked about stocks. The number of messages posted about a stock on a given day is not only positively related with the stock's abnormal return on that day but it also positively predicts the next day's abnormal return.

Research limitations/implications

It may be interesting to examine if the investor sentiment expressed in online messages has predictive power for micro‐cap stocks.

Practical implications

The results provide evidence to regulators that online talk affects stock prices. They show investors that there are inefficiencies in the stock market. They also suggest that corporate managers, especially of small firms, should monitor the stock message boards.

Originality/value

This study focuses on the micro‐cap stocks favored by online posters and finds that online talk has the power to predict the next‐day returns.

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Book part
Publication date: 9 December 2013

Abstract

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

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Book part
Publication date: 1 November 2018

Abstract

Details

International Corporate Governance and Regulation
Type: Book
ISBN: 978-1-78756-536-4

To view the access options for this content please click here
Book part
Publication date: 9 December 2013

Abstract

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

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Article
Publication date: 4 March 2014

James Campbell Quick, Ann McFadyen and Debra Lynn Nelson

– The purpose of this paper is to develop a theory of preventive health management for high-risk employees, who are the 1-3 percent with a propensity to become dangerous.

Abstract

Purpose

The purpose of this paper is to develop a theory of preventive health management for high-risk employees, who are the 1-3 percent with a propensity to become dangerous.

Design/methodology/approach

The paper reviews the literature and design a prevention model for high-risk employees that relies on primary, secondary, and tertiary surveillance indicators as well as prevention methods. The behaviors of these employees are often not accidental, even if not always intentional.

Findings

Primary prevention through organizational socialization and supervision can reduce emergence of high-risk employees. Early identification through secondary surveillance then prevention of incivility and deviance can deter escalation to violent behavior. When high-risk employees become dangerous and violent, tertiary prevention calls for containment, caregiving, forgiveness, and resilience.

Practical implications

The paper suggests that HR professionals can advance health, well-being, and performance while averting danger and violence by identifying and managing high-risk employees, anticipating their needs, and providing supportive resources and advising.

Originality/value

The paper applies public health prevention to deviant and violent employees.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 1 no. 1
Type: Research Article
ISSN: 2051-6614

Keywords

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Article
Publication date: 6 July 2015

Lew Sook-Ling, Maizatul Akmar Ismail and Yuen Yee-Yen

The purpose of this paper is to propose an inclusive research model to overcome the single perspective issues of the previous research which were looking at either on…

Abstract

Purpose

The purpose of this paper is to propose an inclusive research model to overcome the single perspective issues of the previous research which were looking at either on knowledge management (KM) activity, information technology (IT) applications or information infrastructure capability (IIC) independently.

Design/methodology/approach

This paper reviewed and categorised five knowledge management (KM) frameworks: first, KM foundation studies; second, resource-based view studies; third, IIC studies; fourth, competitive advantage (CA) studies; fifth, organisational information processing theory studies to propose research model. Case studies based on face-to-face interviews were conducted to empirically analyse the proposed research model.

Findings

An inclusive research model was suggested to redress the key limitation of past studies in this research field.

Research limitations/implications

Since Asian countries are at present heading for the creation of a knowledge economy, the present study is important to assist government and researchers to develop the most suitable information infrastructure for effective KM in the organisation. The research model proposed by the present study can also become a key reference to the governments and researchers in other developing countries towards the creation of knowledge economy.

Practical implications

The model proposed by the present study will help organisations to examine the performance of their current information infrastructure towards developing new business processes, techniques and decisions for effective KM in the organisations.

Originality/value

The present study is one of the pioneer studies that integrating important IICs such as the integrating capability, data management capability, security capability, utility capability and collaborating capability in the research framework to assist knowledge-based companies to enhance current KM practices and attain long-term CA.

Details

International Journal of Operations & Production Management, vol. 35 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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