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1 – 10 of 992Nwaeze and Kalelkar (2023) examine the association between the functional background of the compensation committee chair (CC chair) and CEO compensation using S&P 500 firms from…
Abstract
Purpose
Nwaeze and Kalelkar (2023) examine the association between the functional background of the compensation committee chair (CC chair) and CEO compensation using S&P 500 firms from 2008 to 2018. They find that the CC chair's functional background is positively associated with the adoption of performance measures that are more aligned with such background. This discussion starts with Nwaeze and Kalelkar's (2023) incremental contribution, and offers suggestions on two areas for improvement. First, the authors could provide a more focused discussion of the conceptual framework. Second, the authors could improve their empirical design and interpretation of results. Avenues for future research are also suggested.
Design/methodology/approach
This discussion suggests methods and model specifications that may strengthen the research design, facilitate the interpretation of results, and provide additional insights.
Findings
The discussed paper could improve the reliability and rigor of the empirical tests and the conclusions by providing more contextual and granular information on firms' actual CEO compensation arrangements, using more careful testing procedures, and enhancing clarity in the writing.
Originality/value
Researchers could be interested in alternative perspectives and richer analyses of non-agency model based determinants of CEO compensation.
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Nadia Yusuf, Inass Salamah Ali and Tariq Zubair
This study investigates the impact of US dollar volatility and oil rents on the performance of small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC…
Abstract
Purpose
This study investigates the impact of US dollar volatility and oil rents on the performance of small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC) region, with an emphasis on understanding how these factors influence SME financing constraints in economies with fixed currency regimes.
Design/methodology/approach
Employing a random effects panel regression analysis, this research considers US dollar volatility and oil rents as independent variables, with SME performance, measured through the financing gap, as the dependent variable. Controls such as trade balance, inflation deltas and gross domestic product (GDP) growth are included to isolate their effects on SME financing constraints.
Findings
The study reveals a significant positive relationship between dollar volatility and the financing gap, suggesting that increased volatility can exacerbate SME financing constraints. Conversely, oil rents did not show a significant direct influence on SME performance. The trade balance and inflation deltas were found to have significant effects, highlighting the multifaceted nature of economic variables affecting SMEs.
Research limitations/implications
The study acknowledges potential biases due to omitted variables and the limitations inherent in the use of secondary data.
Practical implications
Findings offer pertinent guidance for SMEs and policymakers in the GCC region seeking to develop strategies that mitigate the impact of currency volatility and support SME financing.
Originality/value
The research provides new insights into the dynamics of SME performance within fixed currency regimes, which significantly contributes to the limited literature in this area. The paper further underscores the complex connections between global economic factors and SME financial health.
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Xiang Shen, Kai Zeng, Liming Yang, Chengyong Zhu and Laurent Dala
This paper aims to study passive control techniques for transonic flow over a backward-facing step (BFS) using square-lobed trailing edges. The study investigates the efficacy of…
Abstract
Purpose
This paper aims to study passive control techniques for transonic flow over a backward-facing step (BFS) using square-lobed trailing edges. The study investigates the efficacy of upward and downward lobe patterns, different lobe widths and deflection angles on flow separation, aiming for a deeper understanding of the flow physics behind the passive flow control system.
Design/methodology/approach
Large Eddy Simulation and Reynolds-averaged Navier–Stokes were used to evaluate the results of the study. The research explores the impact of upward and downward patterns of lobes on flow separation through the effects of different lobe widths and deflection angles. Numerical methods are used to analyse the behaviour of transonic flow over BFS and compared it to existing experimental results.
Findings
The square-lobed trailing edges significantly enhance the reduction of mean reattachment length by up to 80%. At Ma = 0.8, the up-downward configuration demonstrates increased effectiveness in reducing the root mean square of pressure fluctuations at a proximity of 5-step height in the wake region, with a reduction of 50%, while the flat-downward configuration proves to be more efficient in reducing the root mean square of pressure fluctuations at a proximity of 1-step height in the near wake region, achieving a reduction of 71%. Furthermore, the study shows that the up-downward configuration triggers early spanwise velocity fluctuations, whereas the standalone flat-downward configuration displays less intense crosswise velocity fluctuations within the wake region.
Practical implications
The findings demonstrate the effectiveness of square-lobed trailing edges as passive control techniques, showing significant implications for improving efficiency, performance and safety of the design in aerospace and industrial systems.
Originality/value
This paper demonstrates that the square-lobed trailing edges are effective in reducing the mean reattachment length and pressure fluctuations in transonic conditions. The study evaluates the efficacy of different configurations, deflection angles and lobe widths on flow and provides insights into the flow physics of passive flow control systems.
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Lisa H. Rosen, Linda J. Rubin, Savannah Dali, Daisie M. Llanes, Ahissa Lopez, Ashton E. Romines and Samantha A. Saunders
The COVID-19 pandemic dramatically altered daily life for Gen Z. The purpose of this study was to examine parental perceptions of the pandemic’s effects on their children’s peer…
Abstract
Purpose
The COVID-19 pandemic dramatically altered daily life for Gen Z. The purpose of this study was to examine parental perceptions of the pandemic’s effects on their children’s peer relationships. As children sought peer connection during the pandemic, technology usage soared. The second purpose of the current study was to assess how greater time on social media affected adjustment among Gen Z and whether this effect was mediated by experiences of cyber victimization.
Design/methodology/approach
In total, 250 U.S. parent-child dyads participated in the study. Parents reported on their children’s social media use and described how they believed the pandemic affected their children’s peer relationships. Child participants were transitioning to middle school and reported on cyber victimization and adjustment.
Findings
Thematic analysis of parental reflections revealed three themes: children spent more time online since the onset of the pandemic, there were negative implications of increased time online and there were positive and protective implications of being online. Analysis also indicated significant indirect effects of social media use on internalizing and externalizing problems through victimization.
Originality/value
Parents reported Gen Z continues to use electronic forms of communication and social media at high rates even after pandemic-related restrictions eased with some suggesting that their children prefer digital over face-to-face communication because they have become accustomed to this way of connecting and may find it easier than in-person interaction. Current findings highlight concerns about this increased time online as social media use negatively affected adjustment via cyber victimization.
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Leandro Pinheiro Vieira and Rafael Mesquita Pereira
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Abstract
Purpose
This study aims to investigate the effect of smoking on the income of workers in the Brazilian labor market.
Design/methodology/approach
Using data from the 2019 National Health Survey (PNS), we initially address the sample selection bias concerning labor market participation by using the Heckman (1979) method. Subsequently, the decomposition of income between smokers and nonsmokers is analyzed, both on average and across the earnings distribution by employing the procedure of Firpo, Fortin, and Lemieux (2009) - FFL decomposition. Ñopo (2008) technique is also used to obtain more robust estimates.
Findings
Overall, the findings indicate an income penalty for smokers in the Brazilian labor market across both the average and all quantiles of the income distribution. Notably, the most significant differentials and income penalties against smokers are observed in the lower quantiles of the distribution. Conversely, in the higher quantiles, there is a tendency toward a smaller magnitude of this gap, with limited evidence of an income penalty associated with this habit.
Research limitations/implications
This study presents an important limitation, which refers to a restriction of the PNS (2019), which does not provide information about some subjective factors that also tend to influence the levels of labor income, such as the level of effort and specific ability of each worker, whether smokers or not, something that could also, in some way, be related to some latent individual predisposition that would influence the choice of smoking.
Originality/value
The relevance of the present study is clear in identifying the heterogeneity of the income gap in favor of nonsmokers, as in the lower quantiles there was a greater magnitude of differentials against smokers and a greater incidence of unexplained penalties in the income of these workers, while in the higher quantiles, there was low magnitude of the differentials and little evidence that there is a penalty in earnings since the worker is a smoker.
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Hsiao-Ting Tseng, Shizhen (Jasper) Jia, Tahir M. Nisar, Nick Hajli and Haseeb Shabbir
The recent proliferation of social media platforms has witnessed a growth in social commerce by using social media to facilitate interactivity between customers and vendors. While…
Abstract
Purpose
The recent proliferation of social media platforms has witnessed a growth in social commerce by using social media to facilitate interactivity between customers and vendors. While emergent studies on social commerce are growing, their focus tends to be on millennials and cross-age groups. Given the growth of digital natives in shaping the online shopping experience of the future, we deemed an application to Generation Z necessary and overdue.
Design/methodology/approach
We draw on the existing literature and develop a framework to understand social commerce dynamics for digital natives. We employ PLS and CB-SEM to test our proposed model.
Findings
Our findings demonstrate the importance of social commerce information sharing activities in facilitating social support, a sense of warmth and belongingness, and online trust for Generation Z platform users. We also investigate the roles of online trust and perceived risk on intention to purchase and find support for both relationships. Finally, we discuss the findings in terms of theoretical and managerial contributions and conclude the study with limitations and future research directions.
Originality/value
This research is unique by using social commerce theory to explore Gen Z platform users. The finding will contribute to information system literature by expanding the social commerce research stream.
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Ernest N. Biktimirov and Yuanbin Xu
The purpose of this study is to compare market reactions to the change in the demand by index funds between large and small company stocks by examining the transition of the S&P…
Abstract
Purpose
The purpose of this study is to compare market reactions to the change in the demand by index funds between large and small company stocks by examining the transition of the S&P 500, S&P 400 MidCap and S&P 600 SmallCap indexes from market capitalization to free-float weighting. This unique information-free event allows not only avoiding confounding information signaling and investor awareness effects but also comparing the effect of the decrease in demand on stocks of different sizes.
Design/methodology/approach
This study uses the event study methodology to calculate abnormal returns and trading volume around the full-float adjustment day. It also tests for significant changes in institutional ownership and liquidity. Multivariate regressions are used to examine the relation of liquidity changes and price elasticity of demand to the cumulative abnormal returns around the full-float adjustment day.
Findings
This study finds significant decreases in stock price accompanied with significant increases in trading volume on the full-float adjustment day, and significant gains in quasi-indexer institutional ownership and liquidity. The main finding is that cumulative abnormal returns around the event period are related to changes in the number of quasi-indexer and transient institutional shareholders, not to changes in liquidity or price elasticity of demand.
Originality/value
This study provides the first comprehensive comparison analysis of stock market reactions to the decline in demand between large and small company stocks. As an important implication for future studies of the index effect, changes in institutional ownership should be considered in the analysis.
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Carla Ramos, Adriana Bruscato Bortoluzzo and Danny P. Claro
This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer…
Abstract
Purpose
This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer performance (low- versus high-performance customers) and to reconcile past contradictory results in this marketing-related topic. To this end, the authors propose and validate the method of quantile regression as an unconventional, yet effective, means to proceed to that reconciliation.
Design/methodology/approach
This study collected data from 4,934 customers of a private pension fund firm and accounted for both firm- and customer-initiated relational communication channels (RCCs) and for customer lifetime value (CLV). This study estimated a generalized linear model and then a quantile regression model was used to account for customer performance heterogeneity.
Findings
This study finds that specific RCCs present different levels of association with performance for low- versus high-performance customers, where outcome customer performance is the dependent variable. For example, the relation between firm-initiated communication (FIC) and performance is stronger for low-CLV customers, whereas the relation between customer-initiated communication (CIC) and performance is increasingly stronger for high-CLV customers but not for low-CLV ones. This study also finds that combining different forms of FIC can result in a negative association with customer performance, especially for low-CLV customers.
Research limitations/implications
The authors tested the conceptual model in one single firm in the specific context of financial services and with cross-sectional data, so there should be caution when extrapolating this study’s findings.
Practical implications
This study offers nuanced and precise managerial insights on recommended resource allocation along with relational communication efforts, showing how managers can benefit from adopting a differentiated-customer performance approach when designing their MRCS.
Originality/value
This study provides an overview of the state of the art of MRCS, proposes a contingency analysis of the relationship between MRCS and performance based on customer performance heterogeneity and suggests the quantile method to perform such analysis and help reconcile past contradictory findings. This study shows how the association between RCCs and CLV varies across the conditional quantiles of the distribution of customer performance. This study also addresses a recent call for a more holistic perspective on the relationships between independent and dependent variables.
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Yingjie Ju, Jianliang Yang, Jingping Ma and Yuehang Hou
The objective of this study is to explore the impact of a government-supported initiative for operational security, specifically the establishment of the national security…
Abstract
Purpose
The objective of this study is to explore the impact of a government-supported initiative for operational security, specifically the establishment of the national security emergency industry demonstration base, on the profitability of local publicly traded companies. Additionally, the study investigates the significance of firms' blockchain strategies and technologies within this framework.
Design/methodology/approach
Using the differences-in-differences (DID) approach, this study evaluates the impact of China's national security emergency industry demonstration bases (2015–2022) on the profitability of local firms. Data from the China Research Data Service (CNRDS) platform and investor Q&As informed our analysis of firms' blockchain strategy and technology, underpinned by detailed data collection and a robust DID model.
Findings
Emergency industry demonstration bases have notably boosted enterprise profitability in both return on assets (ROA) and return on equity (ROE). Companies adopting blockchain strategies and operational technology see a clear rise in profitability over non-blockchain peers. Additionally, the technical operation of blockchain presents a more pronounced advantage than at the strategic level.
Originality/value
We introduced a new perspective, emphasizing the enhancement of corporate operational safety and financial performance through the pathway of emergency industry policies, driven by the collaboration between government and businesses. Furthermore, we delved into the potential application value of blockchain strategies and technologies in enhancing operational security and the emergency industry.
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This study explores the variance in investor responses to the corporate social responsibility (CSR) performance of firms, as influenced by information sources and investor types.
Abstract
Purpose
This study explores the variance in investor responses to the corporate social responsibility (CSR) performance of firms, as influenced by information sources and investor types.
Design/methodology/approach
This study applies a short-term event study and cross-sectional analysis with unique CSR datasets obtained from newspaper articles and the Dow Jones Sustainability Index.
Findings
Investor reactions are significantly shaped by their sources of information. Individual investors are found to predominantly respond to accessible news announcements, whereas institutional investors show heightened sensitivity to adverse news from both scrutinized sources. Foreign investors, mirroring institutional investors' patterns, uniquely react positively to index additions.
Research limitations/implications
Investors’ assessment of CSR activities varies due to the differing sources of information obtained; further, it is affected by the type of investor.
Practical implications
The findings guide public relation managers in strategizing CSR communication toward diverse investor types. This includes recommending targeted approaches for Japanese individual investors through newspapers and TV, exercising caution in disseminating adverse news to Japanese institutions, and promoting and justifying CSR actions to foreign investors. It underscores the need for a strategic investor relations frameworks that considers accessibility, literacy, and investors' interests.
Originality/value
This study examines the relationship between sources of information for CSR activities and investors’ responses, an area under-represented in the literature. The author uses CSR announcement data, collected from newspapers to make the results more accurate and relevant.
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