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1 – 10 of over 33000Rokhsaneh Yousef Zehi and Noor Saifurina Nana Khurizan
Uncertainty in data, whether in real-valued or integer-valued data, may result in infeasible optimal solutions or unreliable efficiency scores and ranking of decision-making…
Abstract
Purpose
Uncertainty in data, whether in real-valued or integer-valued data, may result in infeasible optimal solutions or unreliable efficiency scores and ranking of decision-making units. To handle the uncertainty in integer-valued factors in data envelopment analysis (DEA) models, this study aims to propose a robust DEA model which is applicable in the presence of such factors.
Design/methodology/approach
This research focuses on the application of fuzzy interpretation of efficiency to a mixed-integer DEA (MIDEA) model. The robust optimization approach is used to address the uncertain integer-valued parameters in the proposed MIDEA model.
Findings
In this study, the authors proposed an MIDEA model without any equality constraint to avoid the arise problem by such constraints in the construction of the robust counterpart of the conventional MIDEA models. We have studied the characteristics and conditions for constructing the uncertainty set with uncertain integer-valued parameters and a robust MIDEA model is proposed under a combined box-polyhedral uncertainty set. The applicability of the developed models is shown in a case study of Malaysian public universities.
Originality/value
This study develops an MIDEA model equivalent to the conventional MIDEA model excluding any equality constraint which is crucial in robust approach to avoid restricted feasible region or infeasible solutions. This study proposes a robust DEA approach which is applicable in cases with uncertain integer-valued parameters, unlike previous studies in robust DEA field where uncertain parameters are generally assumed to be only real-valued.
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Recent studies on the securities market’s differential pricing of earnings components have shown that cash flow from operations is more highly valued than total accruals and that…
Abstract
Purpose
Recent studies on the securities market’s differential pricing of earnings components have shown that cash flow from operations is more highly valued than total accruals and that moderate cash flow from operations has higher valuation than extreme total accruals. An interesting question that follows is whether these findings hold regarding the differential valuations of cash flow and current accruals. This study aims to extend prior research by addressing this issue in two ways. First, the authors examine the incremental information content of cash flow from operations beyond working capital from operations. Second, the authors assess the effect of extreme working capital from operations on the incremental information content of cash flow from operations. This study aims to extend prior research by addressing this issue in two ways.
Design/methodology/approach
This study adopts market-based accounting research to test its hypotheses and to achieve its objectives. Specifically, this study uses statistical associations between accounting data and stock returns to examine the incremental information content (value relevance) of cash flow and working capital from operations and the effect of extreme working capital from operations on the incremental information content of cash flow.
Findings
The results show that cash flow from operations is not more highly valued than current accruals (both being valued equivalently). However, moderate cash flow from operations has higher valuation than extreme current accruals (each is valued differently). Overall, these research findings indicate that cash flow becomes more important for valuation as accruals get “extreme”.
Practical implications
As accruals are unlikely to persist to be permanent across the years, these results can be interpreted as indicating that cash flow and accruals information are used jointly by investors, with one being more important than the other depending on the relative “extremeness” of each. Therefore, both are of value to the investor and both should be reported.
Originality/value
The paper contributes to the UK research on determining the preferred level of disaggregation of earnings components, i.e. operating cash flow, current accruals and non-current accruals. This would help investors to improve their investment and credit decisions.
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This paper gives a model of collusion formation and a method of measuring the degree of it among the traders/bidders in the agricultural commodity markets in India. The important…
Abstract
Purpose
This paper gives a model of collusion formation and a method of measuring the degree of it among the traders/bidders in the agricultural commodity markets in India. The important assumption is that the bidding is repetitive with a set of common bidders. The theory has been derived based on the behavior of the wholesale market of agricultural commodities in India. The paper is based on full information in the collusion formation. The paper first derives the theoretical structure of the bidders' behavior and thereafter derives a measure of collusion formation with the help of real-life data.
Design/methodology/approach
The paper used the standard theory of optimization and the theory of auction and probability statistics.
Findings
This is a complete information model of cartel formation. The bidding is repetitive and continues forever in discrete time. Hence bidders behavior is observable. Using the proposed method, if the APMC measures for each market and publishes on a periodic basis, say weekly basis, then it will be easier to break the collusion in the market where relative collision is present. For example, if a farmer has three options to sell in three different markets, then the published data would help them to select the market where the degree of collusion is relatively lower. Moreover, the undesirable loss can be avoided based on the right choice of market. As a result, transaction costs will be optima.
Originality/value
The paper first derives the theoretical structure of the bidders' behavior and thereafter derives a measure of collusion formation with the help of real-life data.
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Prosun Mandal, Srinjoy Chatterjee and Shankar Chakraborty
In many of today’s manufacturing industries, such as automobile, aerospace, defence, die and mould making, medical and electrical discharge machining (EDM) has emerged as an…
Abstract
Purpose
In many of today’s manufacturing industries, such as automobile, aerospace, defence, die and mould making, medical and electrical discharge machining (EDM) has emerged as an effective material removal process. In this process, a series of discontinuous electric discharges is used for removing material from the workpiece in the form of craters generating a replica of the tool into the workpiece in a dielectric environment. Appropriate selection of the tool electrode material and combination of input parameters is an important requirement for performance enhancement of an EDM process. This paper aims to optimize an EDM process using single-valued neutrosophic grey relational analysis using Cu-multi-walled carbon nanotube (Cu-MWCNT) composite tool electrode.
Design/methodology/approach
This paper proposes the application of grey relational analysis (GRA) in a single-valued neutrosophic fuzzy environment to identify the optimal parametric intermix of an EDM process while considering Cu-MWCNT composite as the tool electrode material. Based on Taguchi’s L9 orthogonal array, nine experiments are conducted at varying combinations of four EDM parameters, i.e. pulse-on time, duty factor, discharge current and gap voltage, with subsequent measurement of two responses, i.e. material removal rate (MRR) and tool wear rate (TWR). The electrodeposition process is used to fabricate the Cu-MWCNT composite tool.
Findings
It is noticed that both the responses would be simultaneously optimized at higher levels of pulse-on time (38 µs) and duty factor (8), moderate level of discharge current (5 A) and lower level of gap voltage (30 V). During bi-objective optimization (maximization of MRR and minimization of TWR) of the said EDM process, the achieved values of MRR and TWR are 243.74 mm3/min and 0.001034 g/min, respectively.
Originality/value
Keeping in mind the type of response under consideration, their measured values for each of the EDM experiments are expressed in terms of linguistic variables which are subsequently converted into single-valued neutrosophic numbers. Integration of GRA with single-valued neutrosophic sets would help in optimizing the said EDM process with the Cu-MWCNT composite tool while simultaneously considering truth-membership, indeterminacy membership and falsity-membership degrees in a human-centric uncertain decision-making environment.
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Augustine Tarkom and Xinhui Huang
Recognizing the severity of COVID-19 on the US economy, the authors investigate the behavior of US-listed firms towards leverage speed of adjustment (SOA) during the pandemic…
Abstract
Purpose
Recognizing the severity of COVID-19 on the US economy, the authors investigate the behavior of US-listed firms towards leverage speed of adjustment (SOA) during the pandemic. While prior evidence (based on an international study) shows that firm leverage increased during the pandemic leading to a higher SOA toward leverage ratios, leverage for US firms during the same period reduced drastically. Yet there is a dearth of empirical studies on the behavior of US-listed firms' SOA during the pandemic. The authors fill this void.
Design/methodology/approach
The study includes US-listed non-financial and non-utility firms for the period 2015Q1-2021Q4, covering a total sample of 45,213 firm-quarter observations. The authors’ empirical strategy is based on the generalized method of moments (GMM) and firm-fixed effect methodology, controlling for firm- and quarter-fixed effects.
Findings
Three main findings are established: (1) while the SOA toward book target increased during the pandemic, SOA toward market target increased significantly only for less valued and cash-constrained firms; (2) firms in states most impacted by the pandemic adjusted faster towards target ratio; and (3) while the emergence of the pandemic and the overall firm-level risk increased (decreased) the deviation from book (market) target, firm-level risk partially mediated the effect of the pandemic on how far firms deviated from target ratio.
Practical implications
This study enhances our understanding of leverage adjustment during the crisis and shows that risk avoidance motive and the market value of firms are key determinants of convergence rate during the crisis and further demonstrates that market leverage is more sensitive to market dynamics. As such, caution must be taken when dealing with and interpreting market leverage SOA.
Originality/value
Although prior evidence based on international study provides insights into how firms behave toward their leverage ratios because of the pandemic, little is known about how US firms react to the pandemic in terms of the target ratios, particularly (1) since the USA is one of the severely affected countries and (2) firms in the USA reduced their leverage ratios as against what prior evidence shows. The authors provide evidence to explain how and why US firms reacted toward their SOA during the pandemic.
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Noel Scott and Ana Claudia Campos
Authenticity has been studied from a variety of disciplinary perspectives, leading to a rich but confused literature. This study, a review, aims to compare the psychology and…
Abstract
Purpose
Authenticity has been studied from a variety of disciplinary perspectives, leading to a rich but confused literature. This study, a review, aims to compare the psychology and sociology/tourism definitions of authenticity to clarify the concept. From a psychological perspective, authenticity is a mental appraisal of an object or experience as valued leading to feelings and summative judgements (such as satisfaction or perceived value). In objective authenticity, a person values the object due to belief in an expert’s opinion, constructive authenticity relies on socially constructed values, while existential authenticity is based on one’s self-identity. The resultant achievement of a valued goal, such as seeing a valued object, leads to feelings of pleasure. Sociological definitions are similar but based on different theoretical antecedent causes of constructed and existential authenticity. The paper further discusses the use of theory in tourism and the project to develop tourism as a discipline. This project is considered unlikely to be successful and in turn, as argued, it is more useful to apply theory from other disciplines in a multidisciplinary manner. The results emphasise that it is necessary for tourism researchers to understand the origins and development of the concepts they use and their various definitions.
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M'Hamed El-Louh, Mohammed El Allali and Fatima Ezzaki
In this work, the authors are interested in the notion of vector valued and set valued Pettis integrable pramarts. The notion of pramart is more general than that of martingale…
Abstract
Purpose
In this work, the authors are interested in the notion of vector valued and set valued Pettis integrable pramarts. The notion of pramart is more general than that of martingale. Every martingale is a pramart, but the converse is not generally true.
Design/methodology/approach
In this work, the authors present several properties and convergence theorems for Pettis integrable pramarts with convex weakly compact values in a separable Banach space.
Findings
The existence of the conditional expectation of Pettis integrable mutifunctions indexed by bounded stopping times is provided. The authors prove the almost sure convergence in Mosco and linear topologies of Pettis integrable pramarts with values in (cwk(E)) the family of convex weakly compact subsets of a separable Banach space.
Originality/value
The purpose of the present paper is to present new properties and various new convergence results for convex weakly compact valued Pettis integrable pramarts in Banach space.
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Pouyan Mahdavi-Roshan and Seyed Meysam Mousavi
Most projects are facing delays, and accelerating the pace of project progress is a necessity. Project managers are responsible for completing the project on time with minimum…
Abstract
Purpose
Most projects are facing delays, and accelerating the pace of project progress is a necessity. Project managers are responsible for completing the project on time with minimum cost and with maximum quality. This study provides a trade-off between time, cost, and quality objectives to optimize project scheduling.
Design/methodology/approach
The current paper presents a new resource-constrained multi-mode time–cost–quality trade-off project scheduling model with lags under finish-to-start relations. To be more realistic, crashing and overlapping techniques are utilized. To handle uncertainty, which is a source of project complexity, interval-valued fuzzy sets are adopted on several parameters. In addition, a new hybrid solution approach is developed to cope with interval-valued fuzzy mathematical model that is based on different alpha-levels and compensatory methods. To find the compatible solution among conflicting objectives, an arithmetical average method is provided as a compensatory approach.
Findings
The interval-valued fuzzy sets approach proposed in this paper is denoted to be scalable, efficient, generalizable and practical in project environments. The results demonstrated that the crashing and overlapping techniques improve time–cost–quality trade-off project scheduling model. Also, interval-valued fuzzy sets can properly manage expressions of the uncertainty of projects which are realistic and practical. The proposed mathematical model is validated by solving a medium-sized dataset an adopted case study. In addition, with a sensitivity analysis approach, the solutions are compared and the model performance is confirmed.
Originality/value
This paper introduces a new continuous-based, resource-constrained, and multi-mode model with crashing and overlapping techniques simultaneously. In addition, a new hybrid compensatory solution approach is extended based on different alpha-levels to handle interval-valued fuzzy multi-objective mathematical model of project scheduling with influential uncertain parameters.
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Mostafa Abd-El-Barr, Kalim Qureshi and Bambang Sarif
Ant Colony Optimization and Particle Swarm Optimization represent two widely used Swarm Intelligence (SI) optimization techniques. Information processing using Multiple-Valued…
Abstract
Ant Colony Optimization and Particle Swarm Optimization represent two widely used Swarm Intelligence (SI) optimization techniques. Information processing using Multiple-Valued Logic (MVL) is carried out using more than two discrete logic levels. In this paper, we compare two the SI-based algorithms in synthesizing MVL functions. A benchmark consisting of 50,000 randomly generated 2-variable 4-valued functions is used for assessing the performance of the algorithms using the benchmark. Simulation results show that the PSO outperforms the ACO technique in terms of the average number of product terms (PTs) needed. We also compare the results obtained using both ACO-MVL and PSO-MVL with those obtained using Espresso-MV logic minimizer. It is shown that on average, both of the SI-based techniques produced better results compared to those produced by Espresso-MV. We show that the SI-based techniques outperform the conventional direct-cover (DC) techniques in terms of the average number of product terms required.
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Recent studies on the securities market's differential pricing of earnings components indicate that cash flows from operations are valued more highly than extreme total accruals…
Abstract
Purpose
Recent studies on the securities market's differential pricing of earnings components indicate that cash flows from operations are valued more highly than extreme total accruals. However, no previous study has examined whether cash flows from operations have a higher valuation than moderate total accruals. Therefore, this study examines the securities market's differential pricing of cash flows from operations and both moderate and extreme total accruals.
Design/methodology/approach
The study's sample is divided into two sub-samples: a moderate total accruals sub-sample; and an extreme total accruals sub-sample. To evaluate whether cash flows have a higher valuation when compared to total accruals, for the entire sample and for each of the two sub-samples, the study examines the statistical significance of the difference between slope coefficients of cash flows and total accruals for regression of returns on both unexpected cash flows from operations and unexpected total accruals.
Findings
Consistent with prior research, results from the entire sample show a differential higher valuation of cash flows when compared to total accruals. Another finding, consistent with recent studies, is that cash flows from operations have a higher valuation when compared to extreme total accruals. However, there is no higher differential valuation of cash flows over moderate total accruals. These findings support the decomposition of earnings into the components of cash flows from operations and total accruals only when total accruals are extreme (rather than moderate).
Practical implications
A possible explanation for these results is that since accruals predict cash flows, total accruals – when moderate (i.e. not extreme) – are priced similarly to cash flows. These results reveal that when total accruals are moderate, earnings are a better proxy for the underlying cash flows (over the entire future horizon, not just the current period) than is cash flows. However, since total accruals are unlikely to persist in a permanent way over the years, these results indicate that the decomposition of earnings into the components of cash flows from operations and total accruals is consistent with the information set used to value equity securities. Therefore, separate disclosure of cash flows is value relevant. In addition, users of financial statements certainly need the cash flows information as an ex-post validation of the prior earnings.
Originality/value
This study's contribution stems from its determination of the preferred level of disaggregation of earnings components (i.e. operating cash flows and total accruals). This is expected to help investors in their attempt to enhance the outcome of their informed investment and credit decisions.
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