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The purpose of this paper was to construct a canonical correlation analysis (CCA) model for the Zimbabwe stock exchange (ZSE). This paper analyses the impact of macroeconomic variables on stock returns for the Zimbabwe Stock Exchange using the canonical correlation analysis (CCA).

Data for the independent (macroeconomic) variables and dependent variables (stock returns) were extracted from secondary sources for the period from January 1990 to December 2008. For each variable, 132 sets of data were collected. Eight top trading companies at the ZSE were selected, and their monthly stock returns were calculated using monthly stock prices. The independent variables include: consumer price index, money supply, treasury bills, exchange rate, unemployment, mining and industrial index. The CCA was used to construct the CCA model for the ZSE.

Maximization of stock returns at the ZSE is mostly influenced by the changes in consumer price index, money supply, exchange rate and treasury bills. The four macroeconomic variables greatly affect the movement of stock prices which, in turn, affect stock returns. The stock returns for Hwange, Barclays, Falcon, Ariston, Border, Caps and Bindura were significant in forming the CCA model.

During the research period, some companies delisted due to economic hardships, and this reduced the sample size for stock returns for respective companies.

The results from this research can be used by policymakers, stock market regulators and the government to make informed decisions when crafting economic policies for the country. The CCA model enables the stakeholders to identify the macroeconomic variables that play a pivotal role in maximizing the strength of the relationship with stock returns.

Macroeconomic variables, such as consumer price index, inflation, etc., directly affect the livelihoods of the general populace. They also impact on the performance of companies. The society can monitor economic trends and make the right decisions based on the current trends of economic performance.

This research opens a new dimension to the study of macroeconomic variables and stock returns. Most studies carried out so far in Zimbabwe zeroed in on multiple regression as the central methodology. No study has been done using the CCA as the main methodology.

This paper attempts to examine a canonical (simultaneous) relationship between service industry CEOs' compensation and corporate performance with respect to accounting‐based and market‐based performance measures. In addition, this study examines the effect of firm size on compensation. The results of this study suggest that executive compensation depends simultaneously on both market‐based and accounting‐based performance measures. EPS, ROA, ROE and Market Rate of Return are positively associated with both cash compensation and long‐term compensation. Firm size is also positively related to the long‐term compensation.

Customer service is often described as consisting of a set of measurable elements. Similarly, market response to customer service may be viewed as consisting of a set of components which are measurable. Most published empirical studies of the relationship between customer service and market response, however, have represented market response through the use of a single measure. The results of an empirical study of interset association between two sets of measures, one representing the elements of customer service (measured in service levels) and the other representing various forms of market response, are reported. Canonical correlation analysis of data collected from 91 grocery channel dyads indicated (as expected) a closer association of market response with customer perceptions of customer service than with supplier perceptions of the same. Also presented, is the contribution of individual measures to the close association between market response and customer perceptions of customer service.

This paper aims to identify empirically the influence of learning mechanisms provided by organizations on knowledge sharing in the organizational environment.

A quantitative study was developed in which a sample of 268 individuals from civil and military organizations of the Federal Direct Administration was researched. The questionnaire used was composed of the Organizational Learning Mechanism Scale, which was adapted at the time of the present study, in addition to a scale on knowledge sharing, which was developed within the scope of this research. After performing the factorial analysis for both scales, a canonical correlation analysis was performed between the group of variables associated with the learning mechanisms (independent variables) and the group of variables on knowledge sharing (dependent variables).

The results found in the canonical correlation analysis indicate that the learning mechanisms are responsible for explaining 35 per cent of the variance (R² = 0.352) of the group of variables on knowledge sharing.

The findings of this research can help the researched organizations to increase the knowledge management actions, mainly in relation to the actions that favor social interaction among the individuals in the work environment, making possible the exchange of knowledge and experiences in the internal organizational context, and exploring in a positive way actions related to internal acquisition.

The deeper knowledge about the relationship between organizational actions promoted by top management and knowledge support decision-making in the organizational environment regarding contextual factors that influence social interaction between individuals. In relation to the sharing of knowledge, a high correlation of knowledge absorption and reproduction aspects with the knowledge sharing phenomenon was perceived, so that the possibility of organizations thinking in ways that provide the individual with formal and informal environments can be foreseen.

The main contributions of this research are to measure the intensity of the relationship between learning mechanisms and knowledge sharing; and to test the predictive effect of learning mechanisms on knowledge sharing. Regarding the methodological aspects, it was opportune to approach the phenomenon through a little used lens in the context of administration research: the analysis of canonical correlation, which represents another look at the influence of the actions of the top management and the interaction of individuals. The discussions and the data analysis carried out in this research allow us to envisage significant contributions of this work to the analysis and theoretical refinement of the study of the variables treated.

To determine the relationship among covariates used in financial distress studies.

The study selects four specific bankruptcy studies and employs canonical correlation analysis to determine the relationship among the different variable sets that these studies used as predictors of financial distress. Canonical correlation analysis identifies the relationship and provides an indication of the amount of redundancy that exists between two variable sets. The four studies are representative of the genre, similar as to choice of statistical technique, and frequently cited by researchers.

The research findings indicate that the relationships between the alternative variable sets are very weak and alternative variable sets do not represent similar financial relationships. Redundancy coefficients suggest that, if one variable set is redundant to another variable set, it is because the redundant variable set, is much smaller than the predictor variable set.

The results suggest that there is not much similarity among the variable sets used in financial distress studies; to the extent that there is any similarity, it is due to variables common to each set or one variable set being larger than the other variable set. Ad hoc variable selection in financial distress studies results in the use of alternative variable sets containing heterogeneous variables unrelated to one another.

A common criticism of financial distress research is that a theory of corporate failure does not exist. Variable selection is not prompted by economic theory but is based upon suggestions in the literature, the success of variables in earlier studies, or the selection of a large set of variables with an accompanying data reduction procedure. Despite nearly 30 years of research in the area, the absence of an inter‐correlational structure among alternative variable sets highlights the atheoretical nature of financial distress research.

Evaluation of the quality and performance of a tunnel lining during the installation of segments are the main objects of tunneling projects. Because the quality is affected by several attributes, the purpose of this paper is an appropriate multivariate data analysis that is helpful in extracting applicable knowledge of the data collected regarding the related attributes of the initial installed rings.

Principal component analysis (PCA) is used to analyze the data obtained by the quality control team. The authors use canonical correlation analysis (CCA) to extract some linear combinations of the original attributes of the two groups that produce the largest correlations with the second set of variables.

The authors reduce the dimensionality of the original data set for further analyses, and use a small number of uncorrelated variables rather than a larger set of correlated variables to take effective and efficient action to control the quality of the tunnel lining. The authors also explore the correlation structure and relationship between two main groups of characteristics used for assessing the quality of the installed rings. Then, instead of a large number of the original characteristics in the two groups, the authors can easily control these few to attain a reasonable quality for the tunnel lining.

This is a case study, and for each ring selected for inspection, 16 different characteristics are measured and the observations are recorded. The authors use PCA and CCA to analyse the data and interpret the results. Although the methods are not new, applying them to this data results in useful and informative outcomes and interpretation.

Globally, corruption and unethical practices are blamed for financial leakages in construction procurement processes. In literature, there are very few studies that have sought to unravel the connectedness between the ethical and cost performances of projects. This paper aims to report findings on the relationship between unethical tendering practices and cost performance of projects in the Nigerian public sector.

A survey of participants in 119 public projects in Nigeria was conducted. Noting the infrequent use of canonical correlation in construction studies, this study made use of the technique in identifying the significant unethical tendering practices that affect the cost performance of projects.

Findings include three contractor-related variables: C1: Competitors offer bribes to gain access to confidential tendering information, C2: Competitors overstating their capacity, experience and qualification to secure construction contracts, C3: The same owner(s) use different firms to tender for the same project; and four clients/consultants-related variables: T5: Client divulging more information to preferred bidder, T9: Project requirements overstated or tailored to fit a preferred bidder, T14: Criteria for selecting winner not made public, E1: Chief executive of client organization intervenes in tender evaluation and helps his/her preferred tenderer win the contract affect the cost performance of projects.

Chief executives of procuring entities should no longer act as the chairpersons of their organisations’ tenders boards. This role should be given to reputable members of the core construction professional bodies.

This study links ethical performance of projects to their cost performance using the canonical correlation technique.

Analyses customer satisfaction with mail‐order speciality foods in the UK and examines the relationship between satisfaction with eight attributes of mail‐order speciality food and their association with overall satisfaction and likelihood of future purchase. Univariate analysis reveals that a high proportion of mail‐order customers experience satisfaction with each of the eight mail‐order attributes, reflected in a high proportion of customers who are satisfied overall and who intend to repurchase the products in the future. Canonical correlation analysis reveals a statistically significant relationship between one set of variables, overall satisfaction and likelihood of future purchase, and another set of variables, the eight mail‐order attributes. Consequently the results indicate that customer satisfaction is associated with service aspects of mail‐order such as the order process and delivery service as well as physical product attributes such as product quality.

People have unconscious motives which affects their decision-making and associated behavior. The paper describes a study using thematic apperception test (TAT) to measure how unconscious motives influence travelers' interpretations and preferences toward alternative tours and hotels. Using the TAT, the present study explores the relationships between three unconscious needs: (1) achievement, (2) affiliation, and (3) power and preferences for four package tours (adventure, culture, business, and escape tours) and for seven hotel identities (quality, familiarity, location, price, friendliness, food and beverage, and cleanliness and aesthetics). The present study conducts canonical correlation analyses to examine the relationships between unconscious needs and preferences for package tours and hotel identities using data from 467 university students. The study scores 2,438 stories according to the TAT manual to identify unconscious needs. The findings indicate that (1) people with a high need for affiliation prefer an experience based on cultural values and hotels that are conveniently located, (2) individuals with a high need for power indicate a preference for high prices and good value for their money, and (3) people with a high need for achievement prefer a travel experience with adventure as a motivation. The study findings are consistent with previous research of McClelland (1990), Wilson (2002), and Woodside et al. (2008) in exploring impacts of the unconscious levels of human need.

Motivated by massive bank failures during the financial crisis and the remarkable resilience of Islamic banks (IBs), this paper aims to analyze the interdependencies between asset/liability portfolio choices of IBs in emerging markets.

The authors collect data from the financial statements of IBs in the Middle East and North Africa region and Southeast Asia during the period 2002-2012. Using canonical correlation analysis, the authors investigate the degree of interdependencies between the asset/liability accounts unique to IBs and how their ALM models work at times of economic turmoil.

IBs tend to make decisions on sources of finance based on their asset portfolio choices. The interdependencies are stronger for small banks. IBs direct more of their investments to risk-mitigating instruments that share the risk with the borrower/client and are based on the purchase and sale of real goods rather than financial instruments. Additionally, banks tend to rely less on equity to finance their investments during economic boom and increase their equity holdings during economic bust.

This paper contributes to research on an under-researched, globally growing finance sector. It extends research on ALM while providing novel evidence using non-standardized asset/liability accounts unique to IBs.

The analysis of unique accounts has not been discussed in prior studies, which mainly used standardized account balances to compare Islamic and conventional banks. Moreover, the resilience of IBs and whether their ALM models are superior at times of turmoil has remained a black box. The results of this study are relevant to unravel this unanswered question.