Search results
1 – 10 of over 2000Setiawan Setiawan, Sugeng Wahyudi and Harjum Muharam
This research attempts to examine bank dividend policy in Indonesia by applying the life cycle theory of dividends.
Abstract
Purpose
This research attempts to examine bank dividend policy in Indonesia by applying the life cycle theory of dividends.
Design/methodology/approach
This research used secondary data gotten from two sources: banks’ annual financial statements from 2005 to 2019 and the number of observation samples was 510 from 42 banks. Random Effects Logit Model (RELM) is used to detect the influence of independent variables on Propensity to Pay Dividends (PPD) and Random Effects Tobit Model (RETM) is used to test the influence of independent variables on Dividend Payout Ratio (DPR).
Findings
The RELM results show that Retained Earnings to Total Equity (RE/TE), Retained Earnings to Total Asset (RE/TA) and bank age have a positive impact on the propensity to pay dividends (PPD) while bank growth (GRW) has a negative impact. The RETM results reveal that RE/TE, ROA and bank size have a positive impact on the dividend payout ratio (DPR) while GRW has a negative impact. This analysis also discovers that the capital adequacy ratio (CAR) and Non-performing Loans (NPL) is one important factor considered by banks in Indonesia in determining their dividend policy.
Research limitations/implications
This study contributes to enriching literature in finance, especially in the life cycle theory of dividends. Also, it can be a guide to consider by investors before deciding to put their shares in banks in Indonesia.
Originality/value
Research on bank-specific life cycle theory is very difficult to find, especially in the Indonesian context, so this research can enrich the body of knowledge on dividend decisions.
Details
Keywords
Gökberk Can, Rezart Demiraj and Hounaida Mersni
The purpose of the article is to examine the effect of life cycle stages on capital expenditures, using Borsa Istanbul-listed companies.
Abstract
Purpose
The purpose of the article is to examine the effect of life cycle stages on capital expenditures, using Borsa Istanbul-listed companies.
Design/methodology/approach
The panel data estimation procedure was used as the primary method to test the hypothesis. The authors used four additional analyses to check the robustness of the results. The model was tested for endogeneity using the generalized method of moments (GMM) estimation. Quantile regression was utilized for the non-parametric test of the model. In the third robustness test, the sample was divided into two using financial constraints with the Size-Age (SA) Index proposed by Hadlock and Pierce (2010). The last analysis removed the global financial crisis (GFC) years from the sample.
Findings
Borsa Istanbul-listed companies tend to invest less as they move forward in their life cycle stages. The results show that market capitalization, operating cash flow levels and leverage positively affect capital expenditure investments. The empirical evidence also revealed that cash holding levels have a negative effect on capital expenditure decisions. Robustness tests support the results.
Practical implications
The findings are potentially useful for investors and managers. Having the information that decreasing capital expenditures signals that the company is in the last stages of its life would be a sign for managers to improve their investment strategies to avoid getting out of business and survive. They need to find options and solutions to propel their companies back on a path of growth. Additionally, the same information could be vital for investors' investment decisions.
Originality/value
This paper contributes to the literature by providing evidence about the effect of life cycle stages on capital expenditures from an emerging market. To the best of the authors’ knowledge, it is the first paper to investigate empirically how moving forward in the life cycle stages affects capital expenditures in an emerging market.
Details
Keywords
Kalyani Mulchandani, Ketan Mulchandani and Megha Jain
The study examines the influence of a firm's life cycle on the cash flow classification of Indian firms.
Abstract
Purpose
The study examines the influence of a firm's life cycle on the cash flow classification of Indian firms.
Design/methodology/approach
The study employs Dickinson's (2011) cash flow patterns to classify firm years under various life-cycle stages. Cash flow classification is employed to measure a firm's classification shifting (CS) practices. The study includes Indian firms listed on the Bombay Stock Exchange during 2012–2020, an ordinary least squares regression model, a fixed-effect model and a panel corrected with standard error regression method.
Findings
Firms face different opportunities and challenges at different stages of the firm's life cycle and therefore adopt cash flow CS. The results show that firms adopt cash flow CS during introduction, growth and decline stage of life cycle either to boost or to reduce operating cash flows.
Originality/value
This study is one of its kind to study the influence of a firm's life cycle on the cash flow classification of Indian firms.
Details
Keywords
Godwin Musah, Daniel Domeher and Imhotep Alagidede
The purpose of this paper is to investigate investor herding behaviour and the effect of presidential elections on investor herding behaviour in African stock markets at the…
Abstract
Purpose
The purpose of this paper is to investigate investor herding behaviour and the effect of presidential elections on investor herding behaviour in African stock markets at the sector level.
Design/methodology/approach
The study segregates listed firms into financial, consumer goods, consumer services and basic materials sectors and uses the cross-sectional absolute deviation approach as a metric of detecting herding in each of the sectors. The authors extend the model to tease out the effect of presidential elections on investor herding behaviour.
Findings
The study reveals that sectoral differences are fundamental to the evolution of herding. Herding is prominent in a financial services sector dominated by banks. The phenomenon also prevails in markets with smaller consumer goods and services sectors. A post-presidential election effect on investor herding is found for the consumer goods and services sectors of Ghana and a pre-presidential election effect is documented in Nigeria's consumer services sector. The authors conclude that post-presidential election effect is as a result of political connections whilst a pre-presidential election effect is attributable to political business cycles.
Research limitations/implications
The study is based on four African countries due to data constraints. Nonetheless, the study is the first in Africa to the best of the authors' knowledge, and the results are very solid and have a lot of practical and policy implications.
Practical implications
The study has implications for investors as it guides investment behaviour in pre- and post-presidential election periods.
Originality/value
Past studies on investor herding behaviour in African stock markets have largely concentrated on the aggregate market. Knowledge on sectoral differences in investor herding is almost non-existent for African stock markets. Furthermore, premised on the fact that stock markets react to presidential elections, there is no known study that have attempted to examine the effect of presidential elections on investor herding behaviour. This paper contributes to the literature by providing evidence on sectoral differences in investor herding behaviour and the effect of presidential elections on sectoral herding behaviour.
Details
Keywords
Lu Zhang, Pu Dong, Long Zhang, Bojiao Mu and Ahui Yang
This study aims to explore the dissemination and evolutionary path of online public opinion from a crisis management perspective. By clarifying the influencing factors and dynamic…
Abstract
Purpose
This study aims to explore the dissemination and evolutionary path of online public opinion from a crisis management perspective. By clarifying the influencing factors and dynamic mechanisms of online public opinion dissemination, this study provides insights into attenuating the negative impact of online public opinion and creating a favorable ecological space for online public opinion.
Design/methodology/approach
This research employs bibliometric analysis and CiteSpace software to analyze 302 Chinese articles published from 2006 to 2023 in the China National Knowledge Infrastructure (CNKI) database and 276 English articles published from 1994 to 2023 in the Web of Science core set database. Through literature keyword clustering, co-citation analysis and burst terms analysis, this paper summarizes the core scientific research institutions, scholars, hot topics and evolutionary paths of online public opinion crisis management research from both Chinese and international academic communities.
Findings
The results show that the study of online public opinion crisis management in China and internationally is centered on the life cycle theory, which integrates knowledge from information, computer and system sciences. Although there are differences in political interaction and stage evolution, the overall evolutionary path is similar, and it develops dynamically in the “benign conflict” between the expansion of the research perspective and the gradual refinement of research granularity.
Originality/value
This study summarizes the research results of online public opinion crisis management from China and the international academic community and identifies current research hotspots and theoretical evolution paths. Future research can focus on deepening the basic theories of public opinion crisis management under the influence of frontier technologies, exploring the subjectivity and emotionality of web users using fine algorithms and promoting the international development of network public opinion crisis management theory through transnational comparison and international cooperation.
Details
Keywords
Chor Foon Tang and Salah Abosedra
The purpose of this study is to examine empirically the impacts of gender differences, telecommunication technology (ICT) and other determinants on private savings in 28 selected…
Abstract
Purpose
The purpose of this study is to examine empirically the impacts of gender differences, telecommunication technology (ICT) and other determinants on private savings in 28 selected Asia–Pacific countries.
Design/methodology/approach
This study employs the panel data from 2010 to 2017 across 28 selected Asia–Pacific countries. To enhance robustness and address the possibility of endogeneity issue, the present study utilises the fixed effect instrumental variable (IV) estimator to estimate the private savings model for Asia–Pacific region.
Findings
The present study finds that private savings is positively related to disposable income and ICT, but it is negatively associated with the degree of dependency. However, the association between interest rates and private savings are inconclusive as both positive substitution and negative income effects on private savings were observed. Moreover, the results also indicate that working females tend to save less than working males and that of the educated female, despite their impacts are varied across educational attainment levels.
Originality/value
This study provides a novel insight into private savings patterns by focussing upon the gender differences and ICT aspects. In stark contrast to previous literature on the issue, the authors find that working and educated females negatively impact private savings in Asia–Pacific economies due to income inequality and consumption habits. However, the results show that ICT accelerates private savings as it provides easy access to financial services and the requisite frameworks, such as e-business platforms, for generating passive income as well as provide the modalities for more cost-efficient shopping such as price and product comparison frames that yield costs savings which can then be potentially channelled into private savings.
Details
Keywords
Abstract
Purpose
Emotions, understood as evolving mental states, are pivotal in shaping individuals“' decision-making, especially in ambiguous information evaluation, probability estimation of events, and causality analysis. Public–private partnership (PPP) projects represent a confluence of “economic–environmental–social” dimensions, wherein stakeholder behavior follows the sequential progression of “cognition–emotion–action.” Consequently, comprehending the effects of emotional shifts on stakeholder's decision-making processes is vital to fostering the sustainability of PPP projects.
Design/methodology/approach
The paper utilizes rank-dependent expected utility and evolutionary game theory to systematically examine the influence of emotional factors on stakeholders' behavior and decision-making processes within PPP projects. The paper integrates three emotional state functions—optimism, pessimism and rationality—into the PPP framework, highlighting the intricate interactions among the government, private sector, surrounding public and the media. Furthermore, the paper amalgamates the evolutionary pathways of environmental rights incidents with the media's role. Through equilibrium analysis and numerical simulation, the paper delves into the diverse interplay of emotions across different phases of the environmental rights incident, assessing the impact of these emotions on the evolutionary game's equilibrium results.
Findings
Emotions significantly influence the microlevel decisions of PPP stakeholders, adapting continually based on event dynamics and media influences. When the private sector demonstrates optimism and the surrounding public leans toward rationality or pessimism, the likelihood of the private sector engaging in speculative behavior escalates, while the surrounding public refrains from adopting a supervisory strategy. Conversely, when the private sector is pessimistic and the public is optimistic, the system fails to evolve a stable strategy. However, when government regulation intensifies, the private sector opts for a nonspeculative strategy, and the surrounding public adopts a supervisory strategy. Under these conditions, the system attains a relatively optimal state of equilibrium.
Originality/value
The paper develops a game model to examine the evolutionary dynamics between the surrounding public and private sectors concerning environmental rights protection in waste incineration PPP projects. It illuminates the nature of the conflicting interests among project participants, delves into the impact of emotional factors on their decision-making processes and offers crucial perspectives for the governance of such partnerships. Furthermore, this paper provides substantive recommendations for emotional oversight to enhance governance efficacy.
Details
Keywords
Jawad Abdul Ghaffar, Muhammad Sualeh Khattak, Tazeem Ali Shah and Mahad Jehangir
This study examines the role of the big five personality traits: conscientiousness, openness, extroversion, neuroticism and agreeableness in financial planning.
Abstract
Purpose
This study examines the role of the big five personality traits: conscientiousness, openness, extroversion, neuroticism and agreeableness in financial planning.
Design/methodology/approach
The research design is a quantitative approach. The study has used structured questionnaires to collect data from 403 business students. The hypotheses were tested through structural equation modeling using AMOS.
Findings
The findings revealed that extroversion of personality traits have a significant negative influence on financial planning, neuroticism and conscious personalities have a significant positive effect on financial planning. However, two personality traits, namely openness and agreeableness, have no significant influence on financial planning. The study confirmed that out of five, three personality traits have significant impact on financial planning.
Research limitations/implications
The results suggest that all personality traits do not influence financial planning among students. Financial planning is deemed an essential decision in life. Although some people are very conscious about their future expenditures, others are not much concerned. Based on the findings, this study recommends that policymakers may conduct workshops and arrange seminars and conferences for the promotion of financial planning and individual's financial well-being. The government needs to promote financial education that can directly and indirectly enhance the saving planning capabilities of the people.
Practical implications
The results suggest that not all personality traits facilitate financial planning. Financial planning is deemed as a crucial decision in life. Some students are very conscious about their future expenditures, while others are not much concerned. This study recommends that policymakers conduct workshops and arrange seminars and conferences to promote financial planning and individuals' financial well-being. The government of Pakistan needs to promote financial education that can, directly and indirectly, enhance the savings and planning capabilities of the students.
Originality/value
This research contributes to the personality literature, the theory of planned behavior and the life cycle theory by testing the model based on empirical evidence. The current study is the first to focus on the role of the big five personality traits in financial planning among students in Pakistan, an emerging economy.
Details
Keywords
Alexander Kramer, Philipp Veit, Dominik K. Kanbach, Stephan Stubner and Thomas K. Maran
The purpose of this article is to develop an integrative framework of accelerator design to answer the question of what activities accelerators perform and how they function…
Abstract
Purpose
The purpose of this article is to develop an integrative framework of accelerator design to answer the question of what activities accelerators perform and how they function within a structured framework. Research on the functioning of accelerators as a mechanism for startup engagement produced multiple empirical results. However, the comparability of relevant research is strongly limited, currently hindering theoretical developments. Existing accelerator design models often differ and only partially overlap, which leaves extant literature with a fragmented and discordant conceptual understanding.
Design/methodology/approach
Based on a meta-synthesis method using qualitative analysis of 36 accelerator design articles, an integrative framework is developed. After identification of relevant literature, a renowned method for extracting, coding and synthesizing data on individual and cross-study level is applied to identify accelerator design constructs. Eventually, identified accelerator design constructs are integrated into a framework resting on the activity system lens of business model design.
Findings
The article reconciles fragmented knowledge on accelerator design and shows how accelerator design can be holistically conceptualized by 32 key activities clustered in eight design dimensions. The framework is complemented by an initial guideline for measurement. The findings further highlight formerly disregarded aspects of governance and community formation from a processual and structural perspective.
Originality/value
This article is the first to present a comprehensive picture of accelerator design integrating multiple empirical findings of prior research into a single coherent framework. This framework offers a shared foundation for future research exploring the delineations, functioning and impact of accelerators. From a practical perspective, the article provides managers of accelerators a guide to design, review and improve programs according to their value creation goals.
Details
Keywords
Sihang Zhang, Xiaojun Ma, Huifen Xu and Jijian Lu
This paper seeks to investigate the differences in the teachers’ professional development (TPD) by mentorship in workplace. The authors examined the role of mentorship in the PD…
Abstract
Purpose
This paper seeks to investigate the differences in the teachers’ professional development (TPD) by mentorship in workplace. The authors examined the role of mentorship in the PD of teachers and conducted a meta-analysis of pertinent empirical data.
Design/methodology/approach
Using data from over 2,900 individuals, 66 experiments and 12 countries, the authors presented a meta-analysis of the association between workplace mentorship and TPD.
Findings
The authors concluded that mentoring activities could boost the TPD to some extent. It contributes positively to the discipline of science and language, kindergarten, individual mentoring and curriculum research. In addition, the periodicity should not exceed 1 year.
Research limitations/implications
The results of the meta-analysis are restricted to short-term mentorship activities, and the sample size is modest. Building upon the findings from the literature review and meta-analysis, the authors delineated a research agenda for prospective investigations. This includes an imperative for further exploration into the nexus between mentoring and the PD of educators.
Practical implications
Based on the available literature and meta-analysis findings, the authors developed a framework for the “Experts in the classroom” TPD pattern.
Originality/value
This is the first meta-analysis evaluating the association between mentorship and TPD.
Details