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11 – 20 of over 126000Kuo-Ting Huang, Laura Robinson and Shelia R. Cotten
This paper makes a significant contribution to the growing field of digital inequality research by developing an operational definition of emotional costs. To examine this…
Abstract
Purpose
This paper makes a significant contribution to the growing field of digital inequality research by developing an operational definition of emotional costs. To examine this understudied aspect of digital inequalities, we build on Van Dijk’s concept of mental access. We define emotional costs as anxiety toward using information and communication technologies instigated by a lack of prior technology experience and limited computer access.
Methodology/approach
We examined the influence of emotional costs on lower-income students’ technology efficacy, academic efficacy, and computer application proficiency in the context of a computing intervention. Specifically, we examined the relationship between home and school computer usage with self-perceived technology efficacy, computer application proficiency, and academic efficacy. Data from surveys of 972 students were analyzed in order to better understand the importance of technology access on our outcome variables. We also investigated the possible mediation effects of emotional costs on our outcome variables.
Findings
The results revealed that home computer usage was a determinant of students’ self-perceived technology efficacy while shared school access was not. After conducting mediation tests, the results further indicated that emotional costs mediate the effects of home computer usage on technology efficacy.
Originality/value
We conclude that emotional costs might help explain why access inequalities lead to skill inequalities in the context of computing interventions and offer a replicable operational definition for future studies.
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Using Nigeria, as a point of reference, this study aims to explore the applicability of climatic variables as analytically valid factors for conceptual cost estimation. This is in…
Abstract
Purpose
Using Nigeria, as a point of reference, this study aims to explore the applicability of climatic variables as analytically valid factors for conceptual cost estimation. This is in view of the vastness and topographical alignment of Nigeria's landmass, which makes it a country of extreme climatic variability from north to south. As construction costs in Nigeria, similarly, tend to show a north-south alignment, the study's objective is to establish cost-estimating relationships (CERs) between the variability of climatic elements and the variance in construction cost, to arouse interest in the concept.
Design/methodology/approach
Deploying correlation analysis and multiple regression analysis, significant associations/relationships between meteorological variables and building cost for selected locations, following a North-South transect of the major climatic zones, are sought, to explain climate-induced construction cost variance. Validation of the regression model was carried out using variance analysis and the Mean Absolute Percentage Error of a different dataset.
Findings
Climatic indices of atmospheric moisture exhibited strong direct and partial correlations with construction costs, while sunshine hours and temperature were inversely correlated. The study further establishes statistically significant CERs between climatic variables and building cost in Nigeria, which accounted for 47.9% of the variance in construction cost across the climatic zones.
Practical implications
The study outcome provides a statistically valid platform for the development of more elaborate analytical costing models, for prototype buildings to be cited in disparate climatic settings.
Originality/value
This study establishes the statistical validity of climatic variables in constituting CERs for predicting construction costs in disparate climatic settings.
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Anna Bottasso and Maurizio Conti
This chapter examines the main methodological issues involved in the comprehension of the cost structure of the airport industry and suggests considerations for future airport cost…
Abstract
This chapter examines the main methodological issues involved in the comprehension of the cost structure of the airport industry and suggests considerations for future airport cost analyses. Such understanding has become a crucial concern for policy makers, regional planners, and managers in order to deal with optimal market design (e.g., regulation and market configuration) and airport strategies (e.g., pricing, investments, and alliances). An in-depth analysis of the economics of cost functions is presented, together with a description of the relevant multi-output cost economies measures (average incremental costs, scale and scope economies, and cost complementarities). We also discuss the assumptions underlying estimates of total versus variable cost functions and the importance of estimating a sufficiently flexible functional form. Moreover, we provide a critical survey of the international empirical literature on the cost structure of the airport industry, which highlights how econometric estimates strongly depend on the sample choice and the empirical model considered. Indeed, while econometric studies on international samples based on long-run cost function estimates show that long-run scale economies are never exhausted, single country studies mostly estimate variable cost functions and find lower values for scale economies at median sample points that tend to decrease with size. We discuss why we believe that studies based on the estimation of short-run variable cost functions offer more reliable results, given the reasonable assumption of airport overcapitalization in the short run. We conclude our work by noting that underlying policy issues related to planning and regulation, as well as to the optimal market structure of the airport sector, need to take into account the role played by vertical relationships between airports and airlines.
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This paper aims to revisit the relationship between sales growth and profitability by exploring the direct and indirect effects of cost stickiness in the growth process. Cost…
Abstract
Purpose
This paper aims to revisit the relationship between sales growth and profitability by exploring the direct and indirect effects of cost stickiness in the growth process. Cost stickiness refers to asymmetric variations of costs associated with increases and decreases in sales. Cost stickiness is analyzed as a strategic liability that negatively affects profitability because it contributes to organizational rigidity that causes opportunity costs.
Design/methodology/approach
The empirical design is based on a large sample of 65,599 French firms drawn from the Amadeus database and it covers the period 2010 to 2019. The authors take advantage of the presentation of expenses made by nature in Amadeus to calculate cost stickiness in a more direct way than what is commonly done in the literature. The authors use various regression models to test the hypotheses.
Findings
For firms that experience rapid growth in sales, cost stickiness has a positive moderating effect on the relation between sales growth and profitability because of a higher asset turnover efficiency. However, for firms that experience slow growth, no growth or a decrease in sales, cost stickiness plays a negative moderating effect on the relation between sales and profitability.
Originality/value
This work contributes to the discussion about the conditions under which high growth is associated with greater profitability and conceptualizes cost stickiness as a strategic liability. The empirical context, privately held firms, has been overlooked by previous research.
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Seong-Jong Joo, Hokey Min and Carlo Smith
The purpose of this paper is to help shippers determine a negotiation yardstick for transportation price and formulate wise transportation outsourcing strategies by examining the…
Abstract
Purpose
The purpose of this paper is to help shippers determine a negotiation yardstick for transportation price and formulate wise transportation outsourcing strategies by examining the presence of freight rate differentials for shippers and identifying their main causes. This paper also develops a framework for benchmarking freight rates based on the actual data.
Design/methodology/approach
This paper proposes an additive dummy regression model to determine a statistical significance in shipping charges between different shippers. Unlike the traditional least square analysis, the proposed model is designed to avoid a biased assessment of the impact of an explanatory variable.
Findings
Through a series of empirical data analysis and hypothesis tests, the authors discovered that the fixed portion (minimum base charge) of shipping charges differed depending on the shipper’ individual contract, while the variable portion (fuel or accessorial charge) of shipping charges remained the same regardless of the shipper’s individual contract. As such, shippers who are unaware of flexible but unpredictable transportation pricing practices and unprepared for freight rate negotiation can suffer from higher shipping costs as compared to their peers. Thus, the authors conclude that the success of transportation outsourcing, carrier selection, and freight rate negotiation strategies tends to rest on the shipper’s ability to understand transportation cost structures and then determine the benchmark freight rate considered “fair” and “reasonable” for a given service.
Originality/value
This paper is one of the first to examine shipping cost differentials between different shippers and determine what causes such differentials. In doing so, this paper attempted to assess the potential impact of freight rate negotiation and carrier selection strategies on shippers’ transportation costs in current deregulatory environments where shippers were given a greater freedom to negotiate freight rates with carriers and an increased opportunity to save their transportation costs.
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M. Oberholzer and J.E.E. Ziemerink
Cost behaviour classification and cost behaviour structures of manufacturing companies. The purpose of this paper is to determine the cost structures of companies that formed part…
Abstract
Cost behaviour classification and cost behaviour structures of manufacturing companies. The purpose of this paper is to determine the cost structures of companies that formed part of an empirical investigation. Further aspects were investigated to determine why manufacturing companies classify cost behaviour into fixed and variable components and to determine how these companies classify specific cost items. It was found that there is a significant negative relationship between the fixed cost of a company and its degree of technological development. This means that labour intensive companies have more fixed cost as part of total costs and therefore a higher operating risk than technologically developed companies. It was also found that manufacturing companies classify cost items differently and this study provides some guidelines how to manage cost behaviour.
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Leslie Monplaisir, Christopher Malikane and Kalu Ojah
We study the performance attributes of an international production form that is designed for success in an increasingly global marketplace‐global product design and development…
Abstract
We study the performance attributes of an international production form that is designed for success in an increasingly global marketplace‐global product design and development. We find that firms elicit higher returns from their global product development when they compete in strategic complements than when they compete in strategic substitutes. These firms are most likely to compete in strategic complements if they have higher free cash flows, but are most likely to compete in strategic substitutes if they are more dominant in their industry. Importantly, global product development reduces cost largely via variable cost reduction. Moreover, we find that global product development contributes to the firm’s growth potential when pursued in conjunction with high multinationalism, aggressive competitive strategy, and high cost saving.
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Hee-Joon Ahn, Jun Cai and Yan-Leung Cheung
This paper focuses on execution costs as liquidity measure. Execution costs are related to volatility and are an important component of a firm’s cost of capital. The purpose of…
Abstract
Purpose
This paper focuses on execution costs as liquidity measure. Execution costs are related to volatility and are an important component of a firm’s cost of capital. The purpose of this paper is to examine whether emerging market firms have lower execution costs when they face less restrictions on foreign investment and when they have more foreign shareholders.
Design/methodology/approach
The authors begin by documenting the cross-sectional behavior of execution costs. The authors then obtain preliminary evidence on the interaction between execution costs, the investability index and actual foreign investment. These results foreshadow those the authors obtain with the regression analysis. The ordinary least square results show that more investable firms have lower execution costs after the authors control for firm size, stock price, return volatility, industry effects and country effects. This evidence is very robust and highly significant. Direct foreign ownership (FO) in emerging market firms also appear to be associated with lower execution costs. The economic benefit from lowering the investability index on trade execution costs is highly significant.
Findings
Using a large cross-sectional sample from 23 emerging markets, the authors show that firms with more ex ante restrictions on FO, measured by the investability index, have lower execution costs, such as quoted spreads (QS) and effective spreads (ES), after the authors control for firm size, stock price, return volatility, industry factors and country effects. In addition, direct FO in emerging market firms appears to be associated with lower execution costs. However, ex ante restrictions on FO dominate the influence of direct FO. For a 0.5 increase in the investability index in the range of 0–1, the QS will be reduced by 17 percent of the mean QS, and the ES will be reduced by 12 percent of the mean ES from the sample stocks.
Originality/value
There are important differences between the approach and most of the financial liberalization studies. First, whereas most of the earlier studies are conducted at the level of country or market analysis, the investigation is at the level of individual stocks. Second, the authors focus on a cross-sectional association that avoids a criticism leveled at time series analyses. Over-time studies often use specific time points to represent financial liberalization watersheds. This approach can be misleading when financial liberalizations are viewed as processes that unfold over time. Third, the proxies for financial openness are available not only for individual firms across markets, but the authors also make a distinction between potential and actual foreign investment. The authors further categorize actual foreign investment into direct and indirect FO.
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Michael De Martinis, Mehdi Khedmati, Farshid Navissi, Mohammed Aminu Sualihu and Zakiya Tofik-Abu
The purpose of this paper is to examine whether and how firm's agency costs played a role in the voluntary adoption of the eXtensible Business Reporting Language (XBRL) under the…
Abstract
Purpose
The purpose of this paper is to examine whether and how firm's agency costs played a role in the voluntary adoption of the eXtensible Business Reporting Language (XBRL) under the SEC's voluntary filing program (VFP) that encouraged the voluntary adoption of the XBRL.
Design/methodology/approach
This study employs a logistics regression and a sample of 140 firms that voluntarily participated in the VFP during its entire existence in the United States, and 140 matched-pair counterparts that did not voluntarily adopt the XBRL to investigate the role of agency costs in the voluntary adoption of XBRL-based financial reporting.
Findings
We find evidence consistent with the conjecture that a firm's low magnitude of agency costs plays a significant motivating role in the voluntary adoption of XBRL-based financial reporting. Our results continue to hold after using an alternative measure of agency costs and conducting two-stage least squares regressions. Supplementing these results, the study also shows that the level of agency costs of voluntary XBRL adopters remains statistically unchanged after the adoption while the level of agency costs associated with the firms that did not participate in SEC's VFP significantly decline after the adoption during the XBRL mandate.
Practical implications
The findings of this study suggest that based on a firm's level of agency costs, regulators and policymakers, especially those in countries that are yet to mandate XBRL reporting, can, in advance, identify firms that are more likely to comply with their new financial reporting initiatives.
Originality/value
This paper provides first evidence on the role of agency costs in the voluntary adoption of XBRL using data from the United States.
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