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1 – 10 of over 9000Nilupa Herath, Colin Duffield and Lihai Zhang
School infrastructure is one of critical factors that significantly contribute to the educational outcomes, and therefore, maintaining the high quality of school infrastructure…
Abstract
Purpose
School infrastructure is one of critical factors that significantly contribute to the educational outcomes, and therefore, maintaining the high quality of school infrastructure becomes of critical importance. Due to the ageing of school assets over time in combination with budget constraint and rapid growth of student enrolment, many public schools are currently struggling to maintain the required standard for long term. However, to date, the goal of providing the best maintenance practices to public schools has not been achieved.
Design/methodology/approach
The present study focuses on studying the balance between the asset and maintenance management strategies and the funding model through conducting state-of-the-art literature review and qualitative analysis in the context of public schools in Australia and other developed countries around the world. Review of journal articles, different government reports and other available resources were used to collect and analyse the data in this study.
Findings
As part of this review, significant under investment in maintenance and asset renewals were identified as main challenges in asset management in public school facilities. Although different maintenance strategies were used in school infrastructure, adequate funding, adequate robust asset management plans (AMPs) and the involvement of private sectors have been identified as the key factors that govern the success in school infrastructure maintenance. It also shows that funding of approximately 2–3% of asset replacement value (ARV) on school infrastructure is required to maintain school facilities for long-term. Further, the procurement methods such as public private partnership including private finance initiatives (PFIs) have shown great improvements in maintenance process in school infrastructure.
Originality/value
The study provides a review of different AMPs and funding models in school infrastructure and their efficiencies and shortcoming in detail. Different states and countries use different maintenance models, and challenges associated with each model were also discussed. Further this study also provides some conclusive evidence for better maintenance performance for school buildings.
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XiaoXiao Han, Skander Lazrak and Samir Trabelsi
The purpose of this study is to investigate whether the organizational form of an investment management firm affects the performance of the mutual funds under its operation. More…
Abstract
Purpose
The purpose of this study is to investigate whether the organizational form of an investment management firm affects the performance of the mutual funds under its operation. More explicitly, this study aims to test whether funds managed by publicly listed firms achieve different risk-adjusted performance when compared with funds operated by privately held investment firms.
Design/methodology/approach
This study uses Jensen's alpha to measure funds’ performance based on the Carhart’s (1997) benchmarks and market timing factors. The researchers test the relation between fund performance and organizational form using regressions. It alleviates the reverse causality and endogeneity using propensity score matching (PSM) methodology. The study investigates the difference in performance of funds managed by public firms on the post- vs pre- initial public offering (IPO) basis. Alternatively, this study tests the performance change post-public listing of the parent firm. It computes the difference for a matched sample of funds managed by private firms that were likely to go public but did not. The researchers match funds using PSM methodology.
Findings
This paper provides robust evidence that publicly traded management companies administer relatively under-performing mutual funds in comparison to those managed by privately held firms. To the best of the authors’ knowledge, this is the first paper that confirms that organizational decision is endogenous to performance. The study finds that after a privately held company goes public, the performance of their mutual funds and the performance of the matched group funds, whose companies remained private at the same time, tends to decline, compared with companies prior to the public offering. However, the decline in mutual fund performance is larger for the companies who chose to pursue their IPO.
Originality/value
The contribution of this study to the literature is twofold. First, while there is a wealth of literature on the impact of ownership structures on corporate performance, there are very few studies focused on mutual fund markets, despite the evidence that supports a generally mixed effect. This study confirms that the performance of mutual funds managed by publicly traded investments firms is lower than that of funds managed by privately held firms. Second, the organizational decision (private vs public) is not exogenous but depends on the actual funds’ performance.
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Samir Trabelsi and Amna Chalwati
This paper examines the relationship between poison pills, real earnings management and initial public offering (IPO) failure.
Abstract
Purpose
This paper examines the relationship between poison pills, real earnings management and initial public offering (IPO) failure.
Design/methodology/approach
The authors sampled 2,997 IPO firms that went public during 1993-2015.
Findings
The authors find that IPO firms manipulate earnings upward using real earnings management. The authors also find that IPO firms exhibiting a higher level of real earnings management have a higher probability of IPO failure. In addition, the authors find that weak shareholders' governance is positively associated with IPO failure.
Practical implications
These results suggest that poor governance structures in failed firms open the door to manipulating real activities and increasing operational risk.
Originality/value
The study findings are of most significant interest to potential investors and other stakeholders affiliated with a firm going public, an auditor, an underwriter, the lawyers who consult with the firm and employees or executives who might consider joining that firm.
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Rustanto Nanang, Connie Susilawati and Martin Skitmore
Governments in developing countries manage their considerable state assets for public service delivery directly. In Indonesia, the Directorate of State Asset Management…
Abstract
Purpose
Governments in developing countries manage their considerable state assets for public service delivery directly. In Indonesia, the Directorate of State Asset Management responsible for developing the national strategy for state asset optimization requires the determination of key elements and prioritization tools. The purpose of this paper is to show that a simple calculation using the combination of the balanced scorecard (BCS) and analytical hierarchy process (AHP) will help in the prioritization of strategy development.
Design/methodology/approach
A questionnaire survey of 131 multistakeholder respondents to identify the most important key elements and the best alternative for asset optimization was done in this study.
Findings
The respondents agree on the most important key elements, and that the best alternative for asset optimization is the efficient maintenance of assets. Competitive human resources comprise the recommended second key element, and that improvements in asset performance and value will improve public service as the second-highest alternative. This study also shows the importance of the integration of asset optimization in existing government strategic instruments supported by a comprehensive data set related to public assets and their performance.
Originality/value
This paper provides a new contribution to integrating asset optimization strategies as the core of the organization’s performance and prioritization strategies. Additional BSC perspectives are suggested, with the inclusion of AHP for prioritization. In addition, this study includes the opinions of all the stakeholders, from external users to the central management. The flexibility of the tools to adapt to the existing strategic framework will allow their application by different agencies and in different countries.
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Mario Glowik, Waheed Akbar Bhatti and Agnieszka Chwialkowska
Against the background of sustainable finance, this study aims to address whether global asset management firms started transforming toward more environmentally friendly…
Abstract
Purpose
Against the background of sustainable finance, this study aims to address whether global asset management firms started transforming toward more environmentally friendly investment policies according to the Agenda for Sustainable Development launched by the United Nations General Assembly in 2015.
Design/methodology/approach
The authors apply qualitative, explorative research methods through the development of the case study of BlackRock, Inc. (USA). Addressing sustainable finance, the authors compare the opposite to the editorial page (op-eds) communication strategy of BlackRock against real life for the period from 2015 until today.
Findings
The op-eds communication strategy by BlackRock is multi-faceted targeting to develop a leading sustainable reputation supported by fine-grained relationships to business and policy makers. This study empirically proves that there is a discrepancy between BlackRock’s op-eds communication contends concerning sustainable finance and the reality. Among others this study found that BlackRock still invests in fossils and increasingly launches passively managed funds with limited transparency standards in terms of sustainable finance.
Research limitations/implications
This study contributes to the corporate social responsibility literature focusing on fossil energy and sustainable finance. As BlackRock did not reply to the authors’ requests for conducting interviews, the authors rely on a broad range of secondary sources including material provided by non-governmental organizations. This study proposes that research should be amplified by further empirical studies among various sustainable finance stakeholders based on the research propositions the authors have developed as a result of this study.
Practical implications
This research provides empirical evidence for business executives and policy decision-makers involved in the energy industry, corporate ethics and global financial asset management.
Social implications
This study provides insights toward sustainable finance policies of BlackRock with corresponding outcomes related to global climate change and its impact on societies.
Originality/value
This study delivers empirical evidence on the energy transformation from fossils toward renewables against the background of sustainable finance strategies of large asset management enterprises such as BlackRock which is rare to find in the literature.
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Chen Liu and Yan Wendy Wu
The authors investigate how a gender-diverse board, a gender-diverse executive team, or a female chief executive officer (CEO) impact bank balance sheet and equity risk.
Abstract
Purpose
The authors investigate how a gender-diverse board, a gender-diverse executive team, or a female chief executive officer (CEO) impact bank balance sheet and equity risk.
Design/methodology/approach
Using panel data of U.S. bank holding companies over the period of 1992–2019, the authors conduct panel regressions with bank and year-fixed effects to analyze how female directors, female executives, and female CEOs impact a wide range of bank risk measures, controlling for the bank, board and executive characteristics.
Findings
The authors find female directors significantly reduce all types of risk. Female executives reduce some balance sheet risk but have an insignificant effect on bank equity risk. However, the presence of female CEOs does not significantly reduce bank risk-taking. During financial crises, female CEOs even increase equity risk.
Social implications
The findings are important to shed light on the ongoing debate on how gender quota policy could be efficiently used to balance the need for gender diversity while ensuring corporate performance. It could also improve social welfare by guiding proper public policy to ensure the efficient use of social labor capital and curb banks' excessive risk-taking incentives.
Originality/value
The authors provide the first empirical evidence demonstrating that female directors and female executives in the banking industry have different impacts on bank risk-taking. The authors also provide the first empirical evidence that female leaders have a different impact on two different types of risks: balance sheet and equity risk. The study is also the first to analyze the impact of female executives over multiple financial crises.
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Paul Adjei Kwakwa, Solomon Aboagye, Vera Acheampong and Abigail Achaamah
The desire for a sustainable environment has led to the need to reduce carbon dioxide emissions and increase renewable energy usage. Empirical evidence generally shows that…
Abstract
Purpose
The desire for a sustainable environment has led to the need to reduce carbon dioxide emissions and increase renewable energy usage. Empirical evidence generally shows that financial development has a significant effect on these two variables. However, little is known about how the financial strength of financial institutions influences them in the fight against climate change. This study aims to assess the effect of the financial strength of listed financial institutions on renewable energy consumption and carbon dioxide emissions in Ghana.
Design/methodology/approach
Regression analyses were used to estimate the effect of asset quality, credit management, return on equity/asset and firm size on renewable energy consumption and carbon dioxide emissions for data covering from 2009 to 2018.
Findings
The results revealed that return on equity reduces renewable energy consumption and increases carbon dioxide emissions. It is also found that credit risk management and asset quality positively influence renewable energy consumption but reduce carbon dioxide emissions in Ghana.
Practical implications
Policymakers need to identify profitable but less polluting ventures and draw the attention of financial institutions in the country. This may cause banks and other lending-giving institutions to desist from giving credits to support environmentally harmful ventures.
Originality/value
The paper assessed the effect that the financial strength of financial institutions has on renewable energy consumption and carbon dioxide emissions.
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The purpose of this study is to measure mutual funds' manager performance by attributing it to their abilities to choose better securities (selectivity effect) and to allocate…
Abstract
Purpose
The purpose of this study is to measure mutual funds' manager performance by attributing it to their abilities to choose better securities (selectivity effect) and to allocate these securities better than their benchmarks (allocation effect). The study enables the authors to examine the relative contributions of the commonly known asset-pricing factors in mutual funds' performance.
Design/methodology/approach
To examine managers' ability to steer funds' returns, the authors conduct a two-dimensional holdings-based analysis using factor-specific decomposition of funds' excess returns into their ability to select and allocate securities better than their benchmarks. Subsequently, the authors conduct an analysis of the covariance (ANCOVA) due to these factors in explaining funds' excess returns over time.
Findings
While managers' ability to choose better securities than the benchmarks (the selectivity effect) appears modest, some funds (especially the winners) allocate securities in their portfolios better than their benchmarks (the allocation effect) based on their exposures to certain factors (e.g. the momentum factor for the winner funds). However, although funds consistently gain through their ability to predict the size and value factors well, they do not consistently possess the skills to predict the momentum factor.
Research limitations/implications
Although the paper analyzes all the available diversified funds, the sample excludes several other categories, such as thematic and international funds. Further, the analysis is based on equity-oriented Indian funds. Broader studies of changes in factor exposures and the inclusion of more factors apart from those conventionally used may shed more light on the managers' ability to maneuver these factors.
Practical implications
The results show that mutual fund managers lack persistence in their performance, even though some of them could predict specific factors well. Since the activity in active mutual funds could not lead to superior performance over time, investors could be better off by selecting cheaper passive funds for their long-term investments.
Originality/value
The paper presents a novel approach to studying funds' performance by conducting a two-dimensional holdings-based analysis to capture the relative contributions of common asset-pricing factors in the cross-section as well as over time.
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The purpose of this study is to examine the impact of industry specialization of audit partners and audit committee members on the level of tax avoidance in Australian banks.
Abstract
Purpose
The purpose of this study is to examine the impact of industry specialization of audit partners and audit committee members on the level of tax avoidance in Australian banks.
Design/methodology/approach
This study uses a multivariate regression analysis based on hand-collected data consisting of 180 observations from Australian domestic banks between 2010 and 2018.
Findings
The primary results of the empirical analysis indicate that audit partner industry specialization is negatively associated with the level of tax avoidance in Australian banks. Regarding the audit committee, the proportion of industry specialists among audit committee members reduces the magnitude of tax avoidance. These results are robust, as they hold the same for alternative measures of tax avoidance and industry specialization of audit partner and audit committee members. Results from supplementary analysis reveal that the interactive effect of both audit firm and audit partner industry specialization strengthens the auditors’ effectiveness in reducing the level of tax avoidance.
Practical implications
As this study highlights the importance of the industry specialization in decreasing tax avoidance, it can be beneficial for policymakers to assess the impact of good governance on the level of tax avoidance in the banking industry.
Originality/value
Even though the existing studies examine the link between the governance actors’ industry specialization and tax avoidance in nonfinancial firms, this paper explores the banking industry that differs from nonfinancial firms in among others; accounting and fiscal regulations. This study further provides unique evidence indicating that industry specialization of the audit partner constitutes a significant determinant of minimizing the bank’s level of tax avoidance.
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Guangkuan Deng, Jianyu Zhang and Ying Xu
Considering the emergence of e-commerce platforms and their integration into marketing channels, this paper aims to investigate how artificial intelligence (AI) resources – both…
Abstract
Purpose
Considering the emergence of e-commerce platforms and their integration into marketing channels, this paper aims to investigate how artificial intelligence (AI) resources – both technological and human – possessed by e-commerce platforms can enhance their channel power by acquiring market-based assets (relational and intellectual).
Design/methodology/approach
Based on resource-based theory and resource orchestration theory, the authors developed a framework tested using survey data gathered from the sellers, which incorporated six key variables: the e-commerce platform’s AI technology resources and human resources, rational and intellectual market-based assets, intraplatform competition and channel power. The analyses are performed using the regression analysis technique.
Findings
The empirical findings indicate that both technological and human AI resources are crucial in building channel power. In addition, market-based assets serve as a mediator in this relationship, while intraplatform competition moderates the effect of intellectual market-based assets on channel power negatively.
Originality/value
This study contributes to the existing literature by exploring how e-commerce platforms’ AI resources affect their channel power. The results offer valuable guidance to managers and researchers on optimizing AI resources to improve channel power.
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