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Article
Publication date: 29 December 2023

Keunbae Ahn, Gerhard Hambusch, Kihoon Hong and Marco Navone

Throughout the 21st century, US households have experienced unprecedented levels of leverage. This dynamic has been exacerbated by income shortfalls during the COVID-19 crisis…

Abstract

Purpose

Throughout the 21st century, US households have experienced unprecedented levels of leverage. This dynamic has been exacerbated by income shortfalls during the COVID-19 crisis. Leveraging and deleveraging decisions affect household consumption. This study investigates the effect of the dynamics of household leverage and consumption on the stock market.

Design/methodology/approach

The authors explore the relation between household leverage and consumption in the context of the consumption capital asset pricing model (CCAPM). The authors test the model's implication that leverage has a negative risk premium by transforming the asset pricing restriction into an unconditional linear factor model and estimate the model using the general method of moments procedure. The authors run time-series regressions to estimate individual stocks' exposures to leverage, and cross-sectional regressions to investigate the leverage risk premium.

Findings

The authors show that shocks to household debt have strong and lasting effects on consumption growth. The authors extend the CCAPM to accommodate this effect and find, using various test assets, a negative risk premium associated with household deleveraging. Looking at individual stocks the authors show that the deleveraging risk premium is not explained by well-known risk factors.

Originality/value

This paper contributes to the literature on the role of leverage in economics and finance by establishing a relation between household leverage and spending decisions. The authors provide novel evidence that households' leveraging and deleveraging decisions can be a fundamental and influential force in determining asset prices. Further, this paper argues that household leverage might explain the small, persistent, and predictable component in consumption growth hypothesised in the long-run risk asset pricing literature.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Open Access
Article
Publication date: 21 December 2023

Arissara Suratanon Weiler and Bhumiphat Gilitwala

The growth of the internet has transformed digital infrastructure in Thailand over the past two decades, with the widespread use of e-commerce, digital money and online services…

Abstract

Purpose

The growth of the internet has transformed digital infrastructure in Thailand over the past two decades, with the widespread use of e-commerce, digital money and online services becoming a daily norm for all ages. The COVID-19 restrictions, which limited in-person business operations, boosted demand for takeout and delivery services and fueled the expected steady growth of the online food delivery market in Thailand. The pandemic also resulted in a shift towards online ordering and delivery, reflecting changes in customer behavior. This study focuses on exploring the factors that have driven Bangkokians to use online food delivery services after the COVID-19 restrictions were lifted in June 2022.

Design/methodology/approach

Data were collected from 398 participants who had ordered food delivery services after the announcement.

Findings

The findings showed that perceived usefulness, time saving benefit and price saving benefit have a significant impact on the intention of customers to use online food delivery services, while food safety risk perception had no effect.

Practical implications

Bangkokians favor online food delivery services due to convenience and time-saving, indicating high demand post-pandemic. Businesses should invest in improving their platforms to meet evolving consumer behavior.

Originality/value

The result of this study offers valuable insights into the attitudes and behaviors of Bangkokians towards online food delivery services and could be beneficial for businesses in the industry to improve their services, enhance customer satisfaction as well as increase their competitiveness.

Book part
Publication date: 5 April 2024

Feng Yao, Qinling Lu, Yiguo Sun and Junsen Zhang

The authors propose to estimate a varying coefficient panel data model with different smoothing variables and fixed effects using a two-step approach. The pilot step estimates the…

Abstract

The authors propose to estimate a varying coefficient panel data model with different smoothing variables and fixed effects using a two-step approach. The pilot step estimates the varying coefficients by a series method. We then use the pilot estimates to perform a one-step backfitting through local linear kernel smoothing, which is shown to be oracle efficient in the sense of being asymptotically equivalent to the estimate knowing the other components of the varying coefficients. In both steps, the authors remove the fixed effects through properly constructed weights. The authors obtain the asymptotic properties of both the pilot and efficient estimators. The Monte Carlo simulations show that the proposed estimator performs well. The authors illustrate their applicability by estimating a varying coefficient production frontier using a panel data, without assuming distributions of the efficiency and error terms.

Details

Essays in Honor of Subal Kumbhakar
Type: Book
ISBN: 978-1-83797-874-8

Keywords

Book part
Publication date: 5 April 2024

Emir Malikov, Shunan Zhao and Jingfang Zhang

There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework…

Abstract

There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This chapter extends the Gandhi, Navarro, and Rivers (2020) proxy variable framework for structurally identifying production functions to a more general case when latent firm productivity is multi-dimensional, with both factor-neutral and (biased) factor-augmenting components. Unlike alternative methodologies, the proposed model can be identified under weaker data requirements, notably, without relying on the typically unavailable cross-sectional variation in input prices for instrumentation. When markets are perfectly competitive, point identification is achieved by leveraging the information contained in static optimality conditions, effectively adopting a system-of-equations approach. It is also shown how one can partially identify the non-neutral production technology in the traditional proxy variable framework when firms have market power.

Open Access
Article
Publication date: 5 March 2024

Adel Mohammed Ghanem, Khaled Nahar Alrwis, Othman S. Alnashwan, Mohamad A. Alnafissa, Said Azali Ahamada and Ibrahim bin Othman Al-Nashwan

This research aimed to maximize the value of date exports for the Kingdom of Saudi Arabia.

Abstract

Purpose

This research aimed to maximize the value of date exports for the Kingdom of Saudi Arabia.

Design/methodology/approach

To achieve its objective, this study relied on secondary data and quantitative economic analysis represented by the Linear programming model.

Findings

This study showed that Saudi Arabia exports dates to the United Arab Emirates, Yemen, Kuwait, Turkey, Somalia, Jordan, Oman, India, Indonesia, Bangladesh Morocco, Lebanon, and others. The geographical concentration coefficient for the quantity and value of date exports was 35.05% and 34.74%, respectively, during the study period. Saudi Arabia exported a quantity of dates amounting to 83.08 thousand tons, representing 40.57% of the average total amount of Saudi dates exports during the study period, to Yemen, Somalia, India, Indonesia, Bangladesh, Egypt, China, Djibouti, Bahrain, and Ethiopia, at prices lower than the average export price of 1200.31 dollars/ton, and therefore the export policy needs to restructure the geographical distribution of date exports. Based on the models of geographical distribution, Saudi date exports value can be increased by 32.76–127.12 million dollars, meaning can be increased by 13.77% – 53.44%. In light of the results of the proposed models, this study recommends the need to restructure the geographical distribution of Saudi date exports so that the value of Saudi date exports can be increased by 127.12 million dollars from the current situation for the period 2017–2021.

Originality/value

The paper’s original contribution lies in its proposal to restructure the geographical distribution of Saudi date exports to increase the value of exports.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 6 November 2023

Javad Behnamian and Z. Kiani

This paper aims to focus on a medical goods distribution problem and pharmacological waste collection by plug-in hybrid vehicles with some real-world restrictions. In this…

Abstract

Purpose

This paper aims to focus on a medical goods distribution problem and pharmacological waste collection by plug-in hybrid vehicles with some real-world restrictions. In this research, considering alternative energy sources and simultaneous pickup and delivery led to a decrease in greenhouse gas emissions and distribution costs, respectively.

Design/methodology/approach

Here, this problem has been modeled as mixed-integer linear programming with the traveling and energy consumption costs objective function. The GAMS was used for model-solving in small-size instances. Because the problem in this research is an NP-hard problem and solving real-size problems in a reasonable time is impossible, in this study, the artificial bee colony algorithm is used.

Findings

Then, the algorithm results are compared with a simulated annealing algorithm that recently was proposed in the literature. Finally, the results obtained from the exact solution and metaheuristic algorithms are compared, analyzed and reported. The results showed that the artificial bee colony algorithm has a good performance.

Originality/value

In this paper, medical goods distribution with pharmacological waste collection is studied. The paper was focused on plug-in hybrid vehicles with simultaneous pickup and delivery. The problem was modeled with environmental criteria. The traveling and energy consumption costs are considered as an objective function.

Details

Journal of Modelling in Management, vol. 19 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 25 December 2023

Fatima Harbate, Nouh Izem, Mohammed Seaid and Dia Zeidan

The purpose of this paper is to investigate the two-phase flow problems involving gas–liquid mixture.

Abstract

Purpose

The purpose of this paper is to investigate the two-phase flow problems involving gas–liquid mixture.

Design/methodology/approach

The governed equations consist of a range of conservation laws modeling a classification of two-phase flow phenomena subjected to a velocity nonequilibrium for the gas–liquid mixture. Effects of the relative velocity are accounted for in the present model by a kinetic constitutive relation coupled to a collection of specific equations governing mass and volume fractions for the gas phase. Unlike many two-phase models, the considered system is fully hyperbolic and fully conservative. The suggested relaxation approach switches a nonlinear hyperbolic system into a semilinear model that includes a source relaxation term and characteristic linear properties. Notably, this model can be solved numerically without the use of Riemann solvers or linear iterations. For accurate time integration, a high-resolution spatial reconstruction and a Runge–Kutta scheme with decreasing total variation are used to discretize the relaxation system.

Findings

The method is used in addressing various nonequilibrium two-phase flow problems, accompanied by a comparative study of different reconstructions. The numerical results demonstrate the suggested relaxation method’s high-resolution capabilities, affirming its proficiency in delivering accurate simulations for flow regimes characterized by strong shocks.

Originality/value

While relaxation methods exhibit notable performance and competitive features, as far as we are aware, there has been no endeavor to address nonequilibrium two-phase flow problems using these methods.

Details

International Journal of Numerical Methods for Heat & Fluid Flow, vol. 34 no. 3
Type: Research Article
ISSN: 0961-5539

Keywords

Abstract

Details

Understanding Intercultural Interaction: An Analysis of Key Concepts, 2nd Edition
Type: Book
ISBN: 978-1-83753-438-8

Article
Publication date: 29 March 2024

Zhuang Qian, Charles X. Wang and Haiying Yang

This research aims to empirically investigate the impacts of product and international diversification strategies on firm-level inventory performance.

Abstract

Purpose

This research aims to empirically investigate the impacts of product and international diversification strategies on firm-level inventory performance.

Design/methodology/approach

This study empirically examines the associations between product and international diversification strategies and inventory performance based on a sample of 64,124 observations across 7,367 US publicly traded firms between 1989 and 2019 from the COMPUSTAT Segment, Fundamental Annual and Fundamental Quarterly data files. We employ both linear and nonlinear regression models to perform our empirical analysis.

Findings

This research provides strong evidence that there exists a U-shaped relationship between unrelated product diversification and inventory level and a partially inverted U-shaped relationship between international diversification and inventory level. We also find a positive impact of related product diversification on inventory level, but there is no significant curvilinear relationship between related product diversification and inventory level.

Practical implications

Our research findings offer important insights into top management’s strategic planning for diversification strategies and operations manager’s inventory control policies to achieve the strategic fit between corporate diversification and inventory management.

Originality/value

Product and international diversification strategies not only play an essential role in the firm’s competitive advantage, but also have a significant influence on operations manager’s inventory decision. This research is among the first to systematically investigate how top management’s related product, unrelated product and international diversification strategies may have complex nonlinear impacts on inventory performance.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 15 January 2024

Michael O'Connell

The author examines the impact these efficient factors have on factor model comparison tests in US returns using the Bayesian model scan approach of Chib et al. (2020), and Chib…

Abstract

Purpose

The author examines the impact these efficient factors have on factor model comparison tests in US returns using the Bayesian model scan approach of Chib et al. (2020), and Chib et al.(2022).

Design/methodology/approach

Ehsani and Linnainmaa (2022) show that time-series efficient investment factors in US stock returns span and earn 40% higher Sharpe ratios than the original factors.

Findings

The author shows that the optimal asset pricing model is an eight-factor model which contains efficient versions of the market factor, value factor (HML) and long-horizon behavioral factor (FIN). The findings show that efficient factors enhance the performance of US factor model performance. The top performing asset pricing model does not change in recent data.

Originality/value

The author is the only one to examine if the efficient factors developed by Ehsani and Linnainmaa (2022) have an impact on model comparison tests in US stock returns.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

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