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1 – 10 of 173Radwan Alkebsee, Ahsan Habib and Junyan Li
This paper aims to examine the association between green innovation and the cost of equity in China. This study relies on the investors’ base perspective and shareholders’…
Abstract
Purpose
This paper aims to examine the association between green innovation and the cost of equity in China. This study relies on the investors’ base perspective and shareholders’ perceived risk perspective to investigate the relation between green innovation and the cost of equity in China.
Design/methodology/approach
The paper uses firm-fixed effect regression for a sample of Chinese public companies for the period 2008–2018.
Findings
The authors find a negative relationship between green innovation and the cost of equity capital. This negative association is found to be more pronounced for less financially constrained firms, during periods of high economic policy uncertainty, and for firms with a strong internal control environment. Finally, the paper shows that the negative association became more pronounced after the passage of the Environmental Protection Law of China in 2012. The results remain robust to possible endogeneity concerns.
Originality/value
This study contributes to the green innovation literature by documenting that shareholders favorably view firms implementing green innovation policies. The study also has policy implications for Chinese regulators in improving the green credit policy.
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Mohammadreza Tavakoli Baghdadabad
We propose a risk factor for idiosyncratic entropy and explore the relationship between this factor and expected stock returns.
Abstract
Purpose
We propose a risk factor for idiosyncratic entropy and explore the relationship between this factor and expected stock returns.
Design/methodology/approach
We estimate a cross-sectional model of expected entropy that uses several common risk factors to predict idiosyncratic entropy.
Findings
We find a negative relationship between expected idiosyncratic entropy and returns. Specifically, the Carhart alpha of a low expected entropy portfolio exceeds the alpha of a high expected entropy portfolio by −2.37% per month. We also find a negative and significant price of expected idiosyncratic entropy risk using the Fama-MacBeth cross-sectional regressions. Interestingly, expected entropy helps us explain the idiosyncratic volatility puzzle that stocks with high idiosyncratic volatility earn low expected returns.
Originality/value
We propose a risk factor of idiosyncratic entropy and explore the relationship between this factor and expected stock returns. Interestingly, expected entropy helps us explain the idiosyncratic volatility puzzle that stocks with high idiosyncratic volatility earn low expected returns.
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Mostafa Monzur Hasan and Adrian (Wai Kong) Cheung
This paper aims to investigate how organization capital influences different forms of corporate risk. It also explores how the relationship between organization capital and risks…
Abstract
Purpose
This paper aims to investigate how organization capital influences different forms of corporate risk. It also explores how the relationship between organization capital and risks varies in the cross-section of firms.
Design/methodology/approach
To test the hypothesis, this study employs the ordinary least squares (OLS) regression model using a large sample of the United States (US) data over the 1981–2019 period. It also uses an instrumental variable approach and an errors-in-variables panel regression approach to mitigate endogeneity problems.
Findings
The empirical results show that organization capital is positively related to both idiosyncratic risk and total risk but negatively related to systematic risk. The cross-sectional analysis shows that the positive relationship between organization capital and idiosyncratic risk is significantly more pronounced for the subsample of firms with high information asymmetry and human capital. Moreover, the negative relationship between organization capital and systematic risk is significantly more pronounced for firms with greater efficiency and firms facing higher industry- and economy-wide risks.
Practical implications
The findings have important implications for investors and policymakers. For example, since organization capital increases idiosyncratic risk and total risk but reduces systematic risk, investors should take organization capital into account in portfolio formation and risk management. Moreover, the findings lend support to the argument on the recognition of intangible assets in financial statements. In particular, the study suggests that standard-setting bodies should consider corporate reporting frameworks to incorporate the disclosure of intangible assets into financial statements, particularly given the recent surge of corporate intangible assets and their critical impact on corporate risks.
Originality/value
To the best of the authors' knowledge, this is the first study to adopt a large sample to provide systematic evidence on the relationship between organization capital and a wide range of risks at the firm level. The authors show that the effect of organization capital on firm risks differs remarkably depending on the kind of firm risk a particular risk measure captures. This study thus makes an original contribution to resolving competing views on the effect of organization capital on firm risks.
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Weihua Liu, Di Wang, Shangsong Long, Xinran Shen and Victor Shi
The purpose of this paper is to provide an overview of the evolution of service supply chain management from a behavioural operations perspective, pointing out future research…
Abstract
Purpose
The purpose of this paper is to provide an overview of the evolution of service supply chain management from a behavioural operations perspective, pointing out future research directions for scholars.
Design/methodology/approach
This study searched five databases for relevant literature published between 2009 and 2018, selecting 64 papers for this review. The selected literature was categorised according to two dimensions: a service supply chain link perspective and a behavioural factor perspective. Comparative analysis was used to identify gaps in the literature, and five future research agendas were proposed.
Findings
In terms of the perspective of service supply chain link, extant literature primarily focuses on service supply and service co-ordination management, and less on service demand and integration management. In terms of the behavioural factor’s perspective, most focus on classic behaviour factors, with less attention paid to emerging behaviour factors. This paper thus proposes five research agendas: demand-oriented management and integrated supply chain-oriented behavioural research; broadening the understanding of the scope of behavioural operations; integrating the latest backgrounds and trends of service industry into the research; greater attention to behavioural operations in service sub-industries; and multimethod combination is encouraged to be used to dig into the interesting research problems.
Originality/value
This study constitutes the first systematic review of service supply chain research from a behavioural perspective. By categorising the literature into two dimensions, the state of existing research is evaluated with an eye towards future research avenues.
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Abstract
Purpose
Coastal zone ecological restoration project is of great significance to alleviate marine ecological degradation. Evaluating the effect of coastal ecological restoration projects and identifying the obstacle factors affecting their restoration level can provide an empirical basis for future Marine ecological restoration projects.
Design/methodology/approach
However, due to the initial stage of coastal zone ecological restoration projects, the actual monitoring data of coastal zone ecological restoration is relatively lacking. Based on the CRITIC-TOPSIS (combination of CRITIC method and TOPSIS method) method, combined with the subjective perception of the public and the actual data of the restoration project, this paper proposes an evaluation method of the coastal zone ecological restoration effect to obtain the specific implementation effect of the coastal zone ecological restoration project. The main obstacle factors affecting the evaluation of coastal ecological restoration effect are identified by using the obstacle degree model.
Findings
This paper conducted an empirical study on the restoration of sandy shoreline and coastal wetland in Qinhuangdao city. Based on the data of restoration projects and the subjective perception of ecological restoration by the public in Qinhuangdao city, the research results showed that the coastal zone ecological restoration effect of Qinhuangdao city was general. The quality of the restoration project and the public perception have an important influence on the evaluation of the restoration effect. Improving the quality of the restoration project, strengthening the public's participation in ecological restoration and allowing the public to better participate in the ecological restoration of the coastal zone can improve the effect of ecological restoration of the coastal zone in an all-round way.
Originality/value
The research results of this paper have a guiding role in the ecological restoration of coastal cities in the future, and also have a demonstration and reference role for the assessment of the effect of ecological restoration of coastal zones.
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Abstract
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Afzal Mohammad Khaled and Yong Jin Kim
Logistical facility location decisions can make a crucial difference in the success or failure of a company. Geographical Information Systems (GIS) have recently become a very…
Abstract
Logistical facility location decisions can make a crucial difference in the success or failure of a company. Geographical Information Systems (GIS) have recently become a very popular decision support system to help deal with facility location problems. However, until recently, GIS methodologies have not been fully embraced as a way to deal with new facility location problems in business logistics. This research makes a framework for categorizing empirical facility location problems based on the intensity of the involvement of GIS methodologies in decision making. This framework was built by analyzing facility location models and GIS methodologies. The research results revealed the depth of the embracement of GIS methodologies in logistics for determining new facility location decisions. In the new facility location decisions, spatial data inputs are almost always coupled with the visualization of the problems and solutions. However, the usage of GIS capability solely (i.e. suitability analysis) for problem solving has not been embraced at the same level. In most cases, the suitability analysis is used together with special optimization models for choosing among the multiple alternatives.
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Zhuo (June) Cheng and Jing (Bob) Fang
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Abstract
Purpose
This study aims to examine what underlies the estimated relation between idiosyncratic volatility and realized return.
Design/methodology/approach
Idiosyncratic volatility has a dual effect on stock pricing: it not only affects investors' expected return but also affects the efficiency of stock price in reflecting its value. Therefore, the estimated relation between idiosyncratic volatility and realized return captures its relations with both expected return and the mispricing-related component due to its dual effect on stock pricing. The sign of its relation with the mispricing-related component is indeterminate.
Findings
The estimated relation between idiosyncratic volatility and realized return decreases and switches from positive to negative as the estimation sample consists of proportionately more ex ante overvalued observations; it increases and switches from negative to positive as the estimation sample consists of proportionately more ex post overvalued observations. In sum, the relation of idiosyncratic volatility with the mispricing-related component dominates its relation with expected return in its estimated relation with realized return. Moreover, its estimated relation with realized return varies with research design choices and even switches sign due to their effects on its relation with the mispricing-related component.
Originality/value
The novelty of the study is evident in the implication of its findings that one cannot infer the sign of the relation of idiosyncratic volatility with expected return from its estimated relation with realized return.
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