Search results

This chapter analyzes how the industry environment determines corporate dividend decisions. First, common participants in the product market are competitors, suppliers, and customers. These micro-stakeholders create competitive pressures on firms and thus affect their current and future performance. Competitors influence dividend decisions through three mechanisms, namely predation threat, corporate governance, and imitation. Predation threat reduces firms' incentives to pay dividends when facing high rivalry. Competition helps firms improve corporate governance. However, strong corporate governance may increase or decrease dividend payments since dividend policy may be the outcome of strong corporate governance or the substitute for weak corporate governance, respectively. Besides, firms tend to imitate their industry peers in dividend policy. Second, as a financial policy, dividend policy is also affected by participants in the financial market like investors, creditors, and auditors. These financial stakeholders' behaviors are important to stock prices. Due to the agency problem, creditors have high incentives to restrict firm's dividend payments in order to protect their benefits. On the other hand, creditors are effective external monitors who help firms improve their corporate governance. Outside investors affect corporate dividend policy through their valuation. Firms pay more dividends if investors prefer dividends to capital gains. Auditors play the role of a third-party monitor, and thus, they help firms reduce managers' expropriation of shareholders and improve the quality of accounting information. Furthermore, we also investigate dividend policy of regulated industries in both financial sector (banking, insurance, and real estate) and utilities sector (energy, telecommunications, and transportation).

The purpose of this study is to examine the association between the combined roles of chief executive officer (CEO)-chairman titles (CEO duality) and investment efficiency, defined as a lower deviation from expected investment for targeted S-curve firms used to propel an innovation-driven economy. This study also aims to investigate the moderating effect of financial reporting quality on this association.

This paper focuses on the ten targeted S-curve industries – under the definition of the Thailand 4.0 model – listed on the Stock Exchange of Thailand (SET) from 2000 to 2019. Data related to CEO/chairman titles and investment supports were manually collected from the annual reports, the SET market analysis and reporting tool database and the company websites. Financial data used to estimate investment behaviors and discretionary accruals were extracted from 1999. The study analyzes unbalanced panel data using fixed-effects regressions. Additional tests embrace replacing the sample with nontargeted firms, partitioning into granted and nongranted firms, adding CEOs’ demographic moderators, using alternative variable measures and analyzing for lagged independent variables.

The main findings show that CEO duality reduces overinvestment but worsens underinvestment in targeted firms. Financial reporting quality (FRQ) appears to strengthen CEO duality in mitigating extreme spending but has no impact on the association between CEO duality and underinvestment. Additional results, for example, conclude that CEO duality has no association with both over- and underinvesting at nontargeted firms, but its effect becomes positively significant on overinvestment when financial reporting quality is high. The negative association between CEO duality and overinvestment is found only in government-granted and targeted firms. FRQ encourages CEO duality in lowering overinvestment among targeted firms without grants. CEOs’ female and serviced early years appear to elevate those main findings.

These findings assist innovative corporations in choosing a proper leadership structure to cope with investment inefficiency. The research gives the government and regulatory bodies an insight into the qualifications of the leadership structure and financial information that helps them put forward effective policies.

To the best of the author’s knowledge, this study is among the first to establish the association between CEO duality and investment efficiency for innovation-driven firms in a transforming economy. The study fills the gap in the literature on management, accounting and finance by unveiling the interplay between dual leadership and financial reporting in affecting the efficiency of investments.

The worldwide imposition of lockdown measures to control the 2020 coronavirus disease 2019 (COVID-19) outbreak has shifted most executive communications with external stakeholders online, resulting in quick responses from stakeholders. This study aims to understand how presentational styles exhibited in online communication induce immediate audience responses and empirically test the effectiveness of reactive impression management tactics.

The authors analyze presentational styles using MP3 files containing executive utterances during earnings call conferences held by S&P 100-listed firms after June 2020, the quarter after the World Health Organization declared the COVID-19 outbreak a pandemic on March 11, 2020. Using timestamps, the authors link each utterance to a 1-minute interval change in the ask/bid prices of the stocks that occurs a minute after the corresponding utterance begins.

Exhibiting an informational presentation style in earnings calls leads to positive and immediate audience responses. Managers tend to increase their reliance on promotional presentation styles rather than on informational ones when quarterly earnings exceed market forecasts.

Drawing on organizational genre theory, this research identifies the discrepancy between the presentation styles that audiences positively respond to and those that managers tend to exhibit in earnings calls and provides a reactive impression management typology for immediate responses from online audiences.

Although social media has gained prominence as a communication and marketing tool in various sectors, its adoption and utilization within the construction industry remain relatively underexplored. Therefore, this study fills this gap by evaluating the level of awareness and the extent of adoption of social media within the Nigerian construction industry, shedding light on its current status and potential impact.

This objective was attained via a quantitative research approach that utilized a structured questionnaire to obtain responses from construction professionals such as architects, builders, engineers, quantity surveyors and estate managers. Frequencies and percentages and the mean item score (MIS) were used to analyze the questionnaire responses and assess the overall awareness and adoption of social media among construction professionals. Additionally, the Kruskal–Wallis H-test provided valuable insights into the variations in social media adoption levels among different professional categories within the construction industry.

The results indicate that construction professionals possess a generally high level of awareness regarding various social media platforms. However, despite this awareness, the extent of adoption does not align with the level of awareness, suggesting that adoption rates are not as widespread as anticipated.

The findings of this study underscore the importance of not just awareness but also effective adoption and utilization of social media platforms. While awareness is a crucial first step, construction firms should focus on implementing strategies to encourage greater adoption and integration of these platforms into their daily operations. This can go a long way in bridging the awareness – adoption gap which was revealed in this study.

While the limited existing research on social media in the construction industry has predominantly concentrated on areas such as marketing, addressing the root causes of fatalities, data environment tools and business branding, none have undertaken a thorough evaluation of social media awareness and adoption within the sector. This study fills a critical gap by narrowing its focus to the adoption dynamics and the technology’s potential impact on communication, collaboration and knowledge sharing among construction professionals.

The behavioural theory adds a new paradigm of analysis with the assumptions of the decision maker’s cognitive biases and their repercussions on financing decisions. The aim of the study is to analyse the repercussions of these biases on the adjustment speed of firm’s capital structure toward the optimal level.

Based on a partial adjustment model, the study uses the Dynamic Panel Fractional estimator to analyse panel data from 4,990 Portuguese entrepreneurial firms.

The results show that the cognitive overconfidence bias impacts the entrepreneurial firm’s capital structure. In fact, the firms run by overconfident managers adjust more slowly than their counterparts. Furthermore, the findings suggest that entrepreneurial firms make relatively fast adjustments toward the optimal debt level and follow a hierarchical financing order in the funding process.

The results of this paper are not only interesting to the academia, but also contain practical implications for corporate, institutional and business policy and governance. First, the paper introduces a new measure of cognitive bias in optimistic managers, which is useful for current and future academic research. Also, in practical terms, the findings of the paper reveal that when a company is contemplating hiring a manager, it should consider whether they need an optimistic or non-optimistic manager based on the company's present life cycle or situation.

The current analysis extends the existing literature. The study suggests that financial classical and behavioural paradigms should not be separated, which can provide evidence to help narrow the gap between these two major perspectives.

External institutional policy and its impact on corporate social responsibility (CSR) have been widely discussed by researchers, but its effect still remains controversial. This study aims to use the minimum wage policy as an illustrative example to analyze its impact on the corporate social responsibility (CSR) of tourist enterprises. Furthermore, the research seeks to examine the boundary conditions that influence the minimum wage’s effect on CSR.

This paper takes the data of 42 listed tourism companies from 2010 to 2020 in China as samples and uses the mixed OLS regression method and the fixed effects panel model to examine the effect of the minimum wage on CSR.

Findings show that increasing wages has a significantly negative impact on their total CSR investment. Also, low-operating-capacity enterprises and private enterprises will react more adversely when faced with increasing minimum wages. And found that the increase of minimum wage has no significant negative impact on the strategic social responsibility of tourism enterprises; however, it has a significantly negative impact on their tactical social responsibility. In addition, as far as employees’ rights and interests are concerned, the minimum wage increase has effectively increased employee salaries, but the nonsalary benefits of the employees have significantly decreased.

The contribution of this paper not only expands the research on the antecedents and boundary mechanisms of CSR but also clarifies the specific effect of the rise of the minimum wage on corporate social responsibility; it further deepens the impact of institutional policy factors on CSR, which also opens new perspectives for policy evaluation and provides a theoretical basis for government policymakers.