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Article

Zerayehu Sime Eshete and Peter Kiko Kimuyu

The Ethiopian economy is characterized by erratic and poor performance with negative growth rates, seven times over the period 1981-2010. This trapped per capita income at…

Abstract

Purpose

The Ethiopian economy is characterized by erratic and poor performance with negative growth rates, seven times over the period 1981-2010. This trapped per capita income at 358 USD in 2010 staying far away from middle-income country status. A lot of unsolved debates regarding perpetual growth, structural change and sectoral allocation of resource emerged overtime. The purpose of this paper is to examine the alternative effects of induced sectoral total factor productivity and makes comparisons of various sectoral growth options.

Design/methodology/approach

This study uses a recursive dynamic computable general equilibrium model based on neoclassical-structuralist thought. It also calibrates coefficients that capture the impacts of openness, imported capital and liberalization on sectoral total factor productivity growth using a model of vector auto-regressive with exogenous variables.

Findings

Future economic growth rate is expected to grow at a declining trend and to be dominated by the service sector. If it keeps growing on the current path it will expose the economy to a severe structural change burden problem. Openness induced agricultural total factor productivity highly improves the welfare of households while imported capital goods induced industrial total factor productivity is also better in fostering structural change of the economy. The broad-based growth option that combines the induced total factor productivity of all sectors also enables the economy to achieve more sustainable growth, rapid structural change and welfare gain at the same time.

Originality/value

There are intensive and charged debates regarding alternative sectoral growth options. However, the debate does not derive from a rigorous analysis and holistic economy-wide approach. It is rather affiliated with politics. Therefore, the paper is original and investigates these issues meticulously.

Details

African Journal of Economic and Management Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2040-0705

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Article

Kelly Smith and Martin Beasley

This paper aims to investigate the factors that influenced seven graduates in the creative and digital industries to start their own businesses in Barnsley, South…

Abstract

Purpose

This paper aims to investigate the factors that influenced seven graduates in the creative and digital industries to start their own businesses in Barnsley, South Yorkshire, UK – an area with lack of employing establishments and locally registered businesses.

Design/methodology/approach

Questionnaires and semi‐structured interviews identified the constraining and enabling factors graduates may encounter when attempting to start a business, and explored the impact of support provided.

Findings

Perceived constraining factors were: lack of general business knowledge, contradictory advisory support from external agencies, lack of sector‐specific mentors, lack of finance, and experience of familial entrepreneurship. Perceived enabling factors were: co‐mentoring from business partners, course content, financial gain, creativity and innovative ideas, control and risk taking, and the overarching package of support. Linkages between internal and external support could be improved.

Research limitations/implications

The study provided insights into constraints and enablers to self‐employment for a small cohort of recent graduates looking to start‐up in the creative and digital industries. Further studies are required to explore the suggested effect of the “creative identity”, and of sector‐specific family entrepreneurial background.

Practical implications

The support provided by universities can facilitate the transition from early stage ideas to actual graduate business start‐up. Issues such as provision of specialist advice and links with external parallel and follow‐on support need to be considered.

Originality/value

University start‐up units provide an important contribution to the development of graduate entrepreneurs and their role in the growth of national and global economy. Suggestions for improvements in performance, such as closer links with external business development agencies and support providers, are discussed.

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Article

Harish Kumar Singla and Pradeepta Kumar Samanta

This paper aims to examine the determinants of the dividend policy of the construction companies in India.

Abstract

Purpose

This paper aims to examine the determinants of the dividend policy of the construction companies in India.

Design/methodology/approach

Data from 2011 to 2016 (six years) of 45 listed construction companies in India are collected, and a strong balanced panel is created. Dividend per share is dependent variable, and profitability, unstable earnings, institutional holding, cash flow, tangibility, liquidity, growth opportunities, age of the firm, life cycle, leverage, size of firm and taxation are explanatory variables. The panel is tested for stationarity and finally fixed and random-effect panel regression model with robust estimation option is performed.

Findings

The random effect model is found fit with an R2 of 62 per cent, and profitability, life cycle and size of the firm show a significant positive effect on dividend payment. Cash flow shows a negative significant relationship, indicating the presence of agency problem. Rest of the variables indicated an insignificant relationship.

Research limitations/implications

The study is carried out on a small sample of 45 companies with data of only six years. Further, there may be behavioral and psychological factors that drive the decision to declare dividend. Those factors have not been considered in present study. Despite considerable efforts, the author could not find more studies specific to the construction sector. Hence, the variables identified in the present study are more generic, even though a few sector-specific studies have been included.

Originality/value

The dividend policy determinants for the construction sector in India are investigated, and a comprehensive model based on 12 explanatory variables is tested to find the drivers of dividend payout in Indian construction companies. From the investor’s point of view, the sector has immense potential in terms of dividend as well as capital appreciation. Therefore, the study can be useful to the investors to understand the drivers of dividend payout in the construction sector. It can also be crucial for companies to create an appropriate dividend policy so as to attract and retain investors. The study contributes significantly to the existing body of knowledge by recommending the salient drivers of dividend payout in the construction sector based on a comprehensive dataset and using robust methodology.

Details

Journal of Financial Management of Property and Construction, vol. 24 no. 1
Type: Research Article
ISSN: 1366-4387

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Book part

Liang-Wei Kuo, Hsin-Yu Liang and Yung-Jang Wang

Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source…

Abstract

Building upon the framework of the tradeoff model of capital structure and motivated by the equity market timing theory, we examine whether equity misvaluation is a source of adjustment “costs” that will affect a firm’s leverage adjustment speed toward target. We also investigate whether the quality of a firm’s long-term growth options will influence the decisions of managers to exploit the mispriced equity to converge to the optimum. Using a sample of listed Taiwanese firms during 1992–2014 and employing the market-to-book decomposition as developed by Rhodes-Kropf, Robinson, and Viswanathan (2005), we find that overleveraged and overvalued firms demonstrate faster adjustment speed than overleveraged but undervalued firms. Furthermore, controlling for the misvaluation status, high-growth firms converge to target faster than their low-growth counterparts. The effect of growth options on the relation between equity mispricing and adjustment speed does not mirror the effect of financing deficits. With the detailed financial information of the local companies across a rather long time series, this study provides incremental inputs to the literature of capital structure from the determinants of target leverage, the estimation of leverage adjustment speeds, to the identification of the sources of adjustment costs in an emerging market where institutional environment is strikingly different from the US.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-78756-446-6

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Article

Julian Blake, Sonja Fourie and Michael Goldman

Sponsorship is a major contributor to income in the South African sports arena, and is a critical component allowing sports unions to remain financially viable and…

Abstract

Purpose

Sponsorship is a major contributor to income in the South African sports arena, and is a critical component allowing sports unions to remain financially viable and sustainable. Sports sponsoring companies, however, have long questioned the financial returns generated from these ventures. The purpose of this paper is to understand whether financial returns of companies with sports sponsorship in South Africa are significantly different to those without. This research was conducted on Johannesburg Stock Exchange (JSE) listed companies that sponsored sport consistently between 2000 and 2015 for a period of two years. A quantitative methodology was employed whereby share price, revenue and earnings growth were analysed, comparing firms that did not adopt strategies involving sports sponsorships to those that did.

Design/methodology/approach

A quantitative methodology was employed, whereby share price, revenue and earnings growth were analysed, comparing firms that did not adopt strategies involving sports sponsorships to those that did. South Africa is an emerging market and a member of the BRICS Forum ranked 14th in the sport sponsorship market globally (Sport Marketing Frontiers, 2011), becoming increasingly dominant in the global sports industry (Goldman, 2011). The population consisted of JSE-listed Main Board and alternative exchange companies that participated in any form of consistent sports sponsorship in the given time frame: 2000-2015, where the company’s share price, revenue and earnings per share (EPS) data for the period were available from the INET BFA database. The JSE is ranked 17th in terms of market capitalisation (over $1 trillion) in the world, being the largest stock exchange on the African continent with over $30bn being traded on average monthly. Multiple journals today publish research done on the JSE, for example the International Journal of Sports Marketing and Sponsorship, Investment Analysts Journal and the South African Journal of Accounting Research. This stock exchange is 125 years old and has over 400 listed companies of which 358 are domestic (Kruger et al., 2014).

Findings

Results show that companies involved in sports sponsorship during the period analysed did not experience enhanced share price or revenue growth in excess of those companies not involved in sports sponsorship. As a whole, sports sponsoring companies did however experience greater income growth (EPS) than those companies not involved in sports sponsorship. Enhanced revenue growth was found in the consumer services sector, indicating that sport sponsorship in this sector drives brand image and recall resulting in enhanced revenues. These results though indicate that a multitude of differing objectives may exist for companies engaging with sports sponsorship, with increased sales not the singular objective. In general it is concluded that sports sponsorship is considered to achieve a broad spectrum of outcomes that are likely to contribute to increased profitability.

Research limitations/implications

The relatively small size of 40 firms on the JSE in the South African sports sponsorship market is a limitation for this research. The purely quantitative approach limited the ability to gain the required level of insight into those sectors with small samples, which a qualitative study would reveal. SABMiller as example could not be analysed against its sector peers, given that it is one of the most prominent and consistent sports sponsors in South Africa across all major sporting codes. The telecommunications sector was represented entirely by companies that were involved in sports sponsorship and, hence, no in-depth comparison could be conducted within this sector. Vodacom, a major sponsor of sport in South Africa, could not be compared with its peers utilising purely financial and statistical methods. Cell C is one of the most prominent sponsors of rugby in South Africa, through its title sponsorship of the Cell C Sharks, and was not included in this study as it is not listed on the JSE. It is suggested that such companies should be included in a qualitative study approach.

Practical implications

The results of the Mann-Whitney U test for the consumer services and financial sectors confirm no significant difference in EPS growth for companies utilising consistent sports sponsorship as part of their marketing mix to those that do not. The consumer services sector has seen above-average revenue growth from sports sponsorship compared with its sector peers; however, the sector was unable to convert this increased revenue growth into increased profits, suggesting that the cost of sponsoring, as well as the operating costs associated with sports sponsorship, counteract any growth in revenue.

Social implications

The sample of sports-sponsoring companies experienced a larger annual mean EPS growth rate of 30.6 per cent compared to the remaining JSE Main Board companies which grew EPS annually at 27.4 per cent. The results of the Mann-Whitney U test confirm a significant difference in EPS growth for companies utilising consistent sports sponsorship as part of their marketing mix. From a practical interpretive perspective, this result reveals that those companies in South Africa involved in sports sponsorship consistently attain greater than market-related profit growth. This poses some interesting points for discussion, given that revenue growth was not statistically different, which suggests that many sponsors are utilising the sponsorships for purposes other than sales growths that result in a profitable outcome. The potential range of options is large but would likely comprise the creation of stronger supplier relationships, resulting in optimised business inputs. Sponsors might be utilising sponsorships to improve corporate social status, which assists them in creating regulatory compliance, in some instances. Additionally, these sponsorships may be utilised to maintain key client relationships that provide the highest levels of profitability, and whilst this might not grow revenue through new business acquisition, it may result in higher profitability as a result of a loyal and stable customer base.

Originality/value

Much of the available research focusses on the sponsorship of specific sporting events and the share price impact thereof at specific occasions like the announcement, renewal and termination. Where research is conducted across a multitude of sporting events and codes, this predominantly focusses on share price performance only, with varying and somewhat inconclusive results. There is little research focussing on wider, more comprehensive sets of sponsored events and sporting codes, and that seeks to provide an understanding of financial returns for sponsoring properties. In a study of more than 50 US-based corporations it was found that, as a group, corporations which consistently invested in sports sponsorships outperformed market averages, and that those with higher sponsorship spend achieved higher returns (Jensen and Hsu, 2011). The study utilised descriptive statistics. More analysis, utilising detailed statistical analysis, is required to better understand the effects of sponsorship on the wider set of variables analysed. In this case, a five-year compound annual growth rate was calculated for stock price appreciation, total revenue, net income and EPS, and analysed descriptively with only means and standard deviation. Measurement of such variables assists with an understanding of the materialized results of sponsorship as opposed to much of the work in this field, which analyses market reactions to sponsorship announcements.

Details

International Journal of Sports Marketing and Sponsorship, vol. 20 no. 1
Type: Research Article
ISSN: 1464-6668

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Article

Mundia Muya, Andrew D.F. Price and Francis T. Edum‐Fotwe

As the development agenda for sub‐Sahara Africa (SSA) gains momentum, it has become necessary to refocus attention on effective and sustainable human resource development…

Abstract

Purpose

As the development agenda for sub‐Sahara Africa (SSA) gains momentum, it has become necessary to refocus attention on effective and sustainable human resource development strategies for the construction sector in the region that include craft skills. Aims to provide insight into the availability and quality of construction craft skills in Zambia, and the SSA region in general.

Design/methodology/approach

Using Zambia as a country case study, results of a survey that was designed to assess the construction industry's perceptions of the quality and availability of construction craft skills in Zambia are presented. The surveyed contractors' support for the introduction of a sector‐specific training levy in Zambia was also investigated and is reported.

Findings

Findings point to both poor quality and shortage of construction craft skills in Zambia. Results suggest that construction sector‐specific training levy would be the most viable, sustainable and industry‐wide supported option for supplementing government funding in the training of construction craft skills in Zambia, and probably in the SSA region.

Research limitations/implications

The survey was exploratory in nature and depth, and SSA is a vast and diverse region. The results of the case study may not correctly reflect construction skills exigencies across the whole SSA region.

Originality/value

The results provide information and advice for both policy makers and contractors concerned with construction crafts skills issues in Zambia, and SSA in general.

Details

Engineering, Construction and Architectural Management, vol. 13 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

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Article

Nandeesh V. Hiremath, Amiya Kumar Mohapatra and Anil Subbarao Paila

The digital learning and learning & development (L&D) at workplaces in corporates is having a significant challenge, where only about 1% of the week is spent on L&D by the…

Abstract

Purpose

The digital learning and learning & development (L&D) at workplaces in corporates is having a significant challenge, where only about 1% of the week is spent on L&D by the employees. There are an array of recent L&D reports–by Deloitte, 2019; Skillsoft's, 2019; LinkedIn Workplace Learning Report-2019; UK L&D Report-2019; FICCI-NASSCOM and EY “Future of Jobs” Report-2017–which have clearly been indicating that the digital learning is fast-emerging as one of the realistic option. The employees invest their time and energy for skilling/up-skilling/re-skilling for remaining relevant to the emerging business context under volatility, uncertainty, complexity and ambiguity (VUCA) world and also coronavirus disease 2019 (COVID-19) is being researched.

Design/methodology/approach

The L&D interventions have primary objective of enhancing skills, competencies and career growth among employees, and the learning engagement styles/ systems are undergoing dramatic paradigm shifts. There is dire need to understand the impact of sweeping changes with Industry 4.0 and HR 4.0; however, there are only a few industry-centric studies that are available to assess the impact of technology on L&D with digital learning. Hence, there is a need to study the factors influencing various segments of workforce in large corporates, where the learning engagement with digital learning is fast-emerging among corporates.

Findings

Given the digital learning / L&D context in corporates, this research paper has attempted to review and analyse the opportunities, challenges and emerging trends with respect to leveraging technology and innovation to enhance L&D to deliver the business goals, under the 70:20:10 framework, with case analysis of ten different corporates (across different industry sectors) viz., Genpact, Nexval, Airbus, Siemens, AstraZeneca Pharma, HPCL, HGS (BPM), HP, Flipkart and IBM. The A-to-Z of Talent Management and Leadership Development (adopted version from India Leadership Academy, Publicis Sapient, 2019) best practices are analysed, summarized and presented to indicate emerging trends in Industry 4.0 era.

Research limitations/implications

This study has been carried out for just ten major corporates/ multinational companies (MNCs) operating in various sectors. The sample size used is relatively less; therefore, the study can be carried out with a larger sample size and deeper data analysis and insights across countries/continents. At present, this can be considered as a base-research for undertaking deep-dive analysis. The sectoral analysis and cross-industry perspectives require consideration in next studies. To address the sector-specific issues, the research can be undertaken for either a particular sector such as manufacturing, automotive, IT/ITeS, telecom, aviation, agri-tech and pharmaceutical, knowledge-based industries, etc. or comparative analysis across few related sectors required.

Practical implications

This research has provided/shall provide a basis to understand the various factors that influence the L&D and digital learning ecosystem in large corporates. It is expected to provide a practical and also strategic perspective towards effective usage of digital learning systems (both in-house and open systems) for enhancing the effectiveness of L&D in the context of VUCA World and HR 4.0 around us. The proposed hypothesis of “The Digital Learning is the “Future of HR”, especially for the L&D in large Corporate Academies (in the context of Industry 4.0)” stands justified.

Social implications

The clear shift from training culture to “Learning Culture” is possible and feasible with strategically planned digital learning/ L&D interventions, which benefits the corporates, employees, customers and the society at large.

Originality/value

To the best of our knowledge, probably this is one of the first paper in the analysing the industry best L&D/Digital learning practices from an practitioners and academic perspective, as we live in the era of bit-sized and byte sized micro-learning. This study contributes to the academics by providing insights on possible digital learning policies that can be practiced by large corporates, where the “ownership of learning and career growth” is transferred onto the employees. The result of this study complements the evolving digital learning trends, in line with science of self-driven and lifelong learning principle.

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Article

Harsh Vardhan, Pankaj Sinha and Madhu Vij

The purpose of this paper is to demonstrate importance of usage of sector indices which provides insight for sector specific investment strategies and direction for…

Abstract

Purpose

The purpose of this paper is to demonstrate importance of usage of sector indices which provides insight for sector specific investment strategies and direction for suitable policy formulation for the Indian industry. It investigates long run, short run and causality relationships between eight identified sector indices and Sensex for the post subprime period.

Design/methodology/approach

The study uses Vector Error Correction Model (VECM) for econometric analysis. It employs Generalized Impulse Response and Variance Decomposition analysis for developed multivariate framework in order to provide information about precise interplay of the sector indices.

Findings

Long-term relationships between sector indices were determined by the usage of VECM indicating minimal benefits from diversifying investments to different sectors. Limited lead – lag short run relationships between sector indices were observed. Banking index played a predominant and integrating role in moving other indices. During this period of recovery; most sectors were protected and provided marginally better returns due to robust Banking policy. Realty and Metal were other significant drivers influencing remaining sectors contemporaneously. The study for the post subprime crisis period helps to understand the importance and behavior of interrelated sector indices and Sensex in the dynamic economic environment.

Practical implications

The study clearly provides direction for sector specific investment strategies and policy formulation.

Originality/value

The study highlights utility and importance of usage of sector indices. No study using sector indices for the Indian economy have been done earlier employing VAR for the post subprime crisis period.

Details

Journal of Advances in Management Research, vol. 12 no. 1
Type: Research Article
ISSN: 0972-7981

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Article

Nerilee Hing, Vivienne McCabe, Peter Lewis and Neil Leiper

This paper reviews recent trends in major hospitality sectors in the Asia‐Pacific region. Observes that the meetings, incentives, conventions and exhibitions (MICE)…

Abstract

This paper reviews recent trends in major hospitality sectors in the Asia‐Pacific region. Observes that the meetings, incentives, conventions and exhibitions (MICE), backpacker, and bed and breakfast sectors are growing, characterised by burgeoning market demand, proliferation of specialist infrastructure, sector‐specific education and training, and dedicated development and marketing strategies. The casino sector is facing major challenges, seeing declining demand in some areas. Competitive forces are evident in the licensed clubs sector, where a proliferation of gambling options has undermined traditional sources of revenue. Conversely, the hotel and restaurant sectors can be considered mature. There is increased attention to facilities development, asset management, market segmentation and use of new technologies, and the restaurant sector appears focused on product revitalisation. Concludes that the recent economic turmoil in Asia will no doubt produce new challenges, as well as opportunities, in the lead up to the next millennium.

Details

International Journal of Contemporary Hospitality Management, vol. 10 no. 7
Type: Research Article
ISSN: 0959-6119

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Article

Hassan Al Zubaidi and Srour Al Otaibi

Risk identification is an integral part of overall risk management framework of projects. The risks associated with projects and their response planning differs according…

Abstract

Risk identification is an integral part of overall risk management framework of projects. The risks associated with projects and their response planning differs according to the country and the sector specific environment in which they are being implemented. In this paper, the study is carried out to identify the critical risk factors causing delay in Kuwait’s building and infrastructure projects. The preparation of a preliminary list of risks and risk factors is outlined, questionnaire development and survey details are explained, and analysis of survey responses for the identification of delay risk factors in Kuwait is presented. A case study analysis with respect to time‐overrun/delay of about 28 building and infrastructure projects executed in Kuwait is also presented to validate the survey results. Survey and case study results show that the frequency of time‐overrun in KuwaitRisk identification is an integral part of overall risk management framework of projects. The risks associated with projects and their response planning differs according to the country and the sector specific environment in which they are being implemented. In this paper, the study is carried out to identify the critical risk factors causing delay in Kuwait’s building and infrastructure projects. The preparation of a preliminary list of risks and risk factors is outlined, questionnaire development and survey details are explained, and analysis of survey responses for the identification of delay risk factors in Kuwait is presented. A case study analysis with respect to time‐overrun/delay of about 28 building and infrastructure projects executed in Kuwait is also presented to validate the survey results. Survey and case study results show that the frequency of time‐overrun in Kuwait’s construction projects is very high. The five most critical time‐overrun factors identified in Kuwait’s infrastructure and building projects are: delay in government approvals/permits, delay in preparation and approval in variation orders, client induced additional work beyond the original scope, changed engineering conditions from the contract document and decreased labor productivity due to extreme climatic conditions. All the above risk factors are rated as moderately critical to very critical in Kuwaits construction projects is very high. The five most critical time‐overrun factors identified in Kuwait’s infrastructure and building projects are: delay in government approvals/permits, delay in preparation and approval in variation orders, client induced additional work beyond the original scope, changed engineering conditions from the contract document and decreased labor productivity due to extreme climatic conditions. All the above risk factors are rated as moderately critical to very critical in Kuwait.

Details

Journal of Economic and Administrative Sciences, vol. 24 no. 2
Type: Research Article
ISSN: 1026-4116

Keywords

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