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1 – 10 of 113
Book part
Publication date: 19 December 2012

Jingjing Yang and Timothy J. Vogelsang

We analyze Lagrange Multiplier (LM) tests for a shift in trend of a univariate time series at an unknown date. We focus on the class of LM statistics based on…

Abstract

We analyze Lagrange Multiplier (LM) tests for a shift in trend of a univariate time series at an unknown date. We focus on the class of LM statistics based on nonparametric kernel estimates of the long run variance. Extending earlier work for models with nontrending data, we develop a fixed-b asymptotic theory for the statistics. The fixed-b theory suggests that, for a given statistic, kernel, and significance level, there usually exists a bandwidth such that the fixed-b asymptotic critical value is the same for both I(0) and I(1) errors. These “robust” bandwidths are calculated using simulation methods for a selection of well-known kernels. We find when the robust bandwidth is used, the supremum statistic configured with either the Bartlett or Daniell kernel gives LM tests with good power. When testing for a slope change, we obtain the surprising finding that less trimming of potential shift dates leads to higher power, which contrasts the usual relationship between trimming and power. Finite sample simulations indicate that the robust LM statistics have stable size with good power.

Article
Publication date: 16 February 2021

Navendu Prakash, Shveta Singh and Seema Sharma

The purpose of this study is to explore and evaluate potential nonmonotonicity in the determinants of profit efficiency, specifically IT and R&D investments in the Indian…

Abstract

Purpose

The purpose of this study is to explore and evaluate potential nonmonotonicity in the determinants of profit efficiency, specifically IT and R&D investments in the Indian commercial banking sector.

Design/methodology/approach

The study employs an alternative stochastic profit efficiency framework and introduces nonmonotonic effects by parameterizing the location and scale parameters of the inefficiency component on an unbalanced panel data set of 72 commercial banks in the 2008–2019 period. Marginal effects across quartiles are calculated using a bias-corrected and accelerated bootstrap procedure of 500 simulations. The study disaggregates across ownership and size for gauging the impact of structure on the associations between determinants of profit efficiency.

Findings

The study partially rejects the productivity paradox as it discovers a negative association of IT and R&D with profit inefficiency. However, the observed nonmonotonicity of IT is of significance for bank managers, as the study concludes that overinvestment in IT is detrimental to a bank’s profit-maximizing interests. Further, bank size, loan default and credit risk depict a nonmonotonic relationship across the sample with large banks, high NPAs and high credit risk associated with reducing profit efficiency. In addition, higher margins and greater diversification are related positively to efficiency, and banks with cost-heavy structures or having high liquidity risk associated negatively with efficiency.

Originality/value

To the best knowledge of the authors, the study is perhaps the first to acknowledge and incorporate nonmonotonic associations of IT investments amidst other exogenous determinants under a stochastic profit efficiency framework.

Details

International Journal of Emerging Markets, vol. 17 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 12 December 2012

Ruixue Jia and Pinghan Liang

We develop a multiperiod contest theory model to formulate the role of decentralization in coups decision and outcome. In our model the coup plotter chooses between…

Abstract

We develop a multiperiod contest theory model to formulate the role of decentralization in coups decision and outcome. In our model the coup plotter chooses between carrying out a coup and subordination, the central government responds by fighting against the plotter, and the local government chooses whether to confront the military government after a successful coup. The model shows that more decentralized countries will experience longer military regime after a successful coup, but the relationship between decentralization and the risk of coups is nonmonotonic. We suggest that there may exist negative consequences of decentralization: Depending on the initial conditions, decentralization may increase the coup risks and jeopardize political stability.

Details

Cooperation for a Peaceful and Sustainable World Part 1
Type: Book
ISBN: 978-1-78190-335-3

Article
Publication date: 21 November 2008

Mengchi Liu

The purpose of this paper is to describe a novel XML schema language called DTD Schema that solves major limitations of document type definition (DTD) and supports…

Abstract

Purpose

The purpose of this paper is to describe a novel XML schema language called DTD Schema that solves major limitations of document type definition (DTD) and supports features that XML Schema supports in a simple and concise way.

Design/methodology/approach

DTD Schema is designed based on DTD and data definition language of object‐oriented and object‐relational databases. It extends DTD with namespaces, richer built‐in types and user‐defined subtypes, local elements and attributes, complex types with nonmonotonic multiple element and attribute inheritance with overriding, blocking, conflict handling, and polymorphism.

Findings

XML Schema is recommended by W3C as the schema language for XML. It uses a set of predefined XML tags to define the schema, which is often a long, intricate specification, full of details and concepts and its verbose syntax often doubles or triples the document length. It is so complicated that even XML experts do not find it human‐readable, mostly due to the XML‐based syntax.

Research limitations/implications

The only limitation is that DTD Schema is not in XML. But for the same reason, it is simple and concise.

Practical implications

DTD schema is halfway between DTD and XML Schema and thus it is less complex and much easier for human to use than XML Schema.

Originality/value

DTD Schema supports all functionalities of XML Schema and also the best of object‐oriented features including multiple inheritance, overriding, blocking, conflict handling and polymorphism. Therefore, it is much more expressive than XML Schema.

Details

International Journal of Web Information Systems, vol. 4 no. 4
Type: Research Article
ISSN: 1744-0084

Keywords

Book part
Publication date: 26 October 2021

Chengwei Liu and Chia-Jung Tsay

Chance models – mechanisms that explain empirical regularities through unsystematic variance – have a long tradition in the sciences but have been historically…

Abstract

Chance models – mechanisms that explain empirical regularities through unsystematic variance – have a long tradition in the sciences but have been historically marginalized in management scholarship, relative to an agentic worldview about the role of managers and organizations. An exception is the work of James G. March and his coauthors, who proposed a variety of chance models that explain important management phenomena, including the careers of top executives, managerial risk taking, and organizational anarchy, learning, and adaptation. This paper serves as a tribute to the beauty of these “little ideas” and demonstrates how they can be recombined to generate novel implications. In particular, we focus on the example of an inverted V-shaped performance association centering around the year when executives were featured in a prominent listing, Barron’s annual list of Top 30 chief executive officers. Our recombination of several chance models developed by March and his coauthors provides a novel explanation for why many of the executives’ exceptional performances did not persist. In contrast to the common accounts of complacency, hubris, and statistical regression, the results show that declines from high performance may result from the way luck interacts with these executives’ slow adaptation, incompetence, and self-reinforced risk taking. We conclude by elaborating on the normative implications of chance models, which address many current management and societal challenges. We further encourage the continued development of chance models to help explain performance differences, shifting from accounts that favor heroic stories of corporate leaders toward accounts that favor their changing fortunes.

Details

Carnegie goes to California: Advancing and Celebrating the Work of James G. March
Type: Book
ISBN: 978-1-80043-979-5

Keywords

Article
Publication date: 7 January 2022

Ahmed Hassanein, Jamal Ali Al-Khasawneh and Hany Elzahar

Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term…

Abstract

Purpose

Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term horizon, high failure rate and uncertain outcomes. This study aims to explore the extent to which managerial ownership influences R&D expenditure decisions.

Design/methodology/approach

Apart from the linear regression models, this study uses a semi-parametric quantile regression analysis for a sample of German non-financial firms throughout 2009–2018.

Findings

This study finds a nonmonotonic sensitivity of R&D spending to the level of managerial ownership over various quantiles of R&D distribution. That is, managerial ownership increases the expenditure on R&D at low R&D intensity firms. However, it decreases the expenditure on R&D at high R&D intensity firms. These results suggest the presence of a maximum level of R&D expenditure, after which owner-managers would be unwilling to spend on R&D.

Practical implications

The results confirm the importance of corporate ownership structure for firm R&D and innovation activities. It provides an implication for corporate policymakers to reform the corporate ownership structures to encourage corporate managers and owners to invest in R&D projects.

Originality/value

This study offers two distinct contributions study. First, it provides the first German shred of evidence on the nonlinear relationship between managerial ownership and R&D expenditure decisions by distinguishing between high and low R&D intensity firms. Second, unlike prior research, it uses a semi-parametric quantile regression analysis. This method is more efficient than least-squares estimators and produces robust estimators to heteroscedasticity of the residuals.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 31 December 2020

Honghong Zhang and Xiushuang Gong

This study aims to empirically investigate how susceptibility to social influence in new product adoption varies with one’s structural location in a social network.

Abstract

Purpose

This study aims to empirically investigate how susceptibility to social influence in new product adoption varies with one’s structural location in a social network.

Design/methodology/approach

The social network data were collected based on a sociometric network survey with 589 undergraduate students. Social network analysis and ordinary least squares regression analyses were used to test the hypotheses.

Findings

This study finds that consumers with high degree centrality (i.e. hubs) who have a large number of connections to others and consumers with high betweenness centrality (i.e. bridges) who connect otherwise distant groups in social networks are both less sensitive to informational influence from others. More importantly, the authors find evidence that consumers with moderate levels of degree/betweenness centrality are more susceptible to normative influence and status competition than those with low or high degree/betweenness centrality. The inverse-U patterns in the above relations are consistent with middle-status conformity and anxiety.

Research limitations/implications

This research complements social influence and new product diffusion research by documenting important contingencies (i.e. network locations) in consumer susceptibility to different types of social influence from a social network perspective.

Practical implications

The findings will assist marketers to leverage social influence by activating relevant social ties with effective messages in their network marketing strategies.

Originality/value

This research provides a better understanding of the mechanisms driving susceptibility to social influence in new product diffusion.

Details

European Journal of Marketing, vol. 55 no. 5
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 2 August 2013

Ana Paula Matias Gama and Cecília Rodrigues

Combining ownership and management might lead concentrated shareholders, such as families, to wealth expropriation. The lack of external monitors and disciplinary agents

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Abstract

Purpose

Combining ownership and management might lead concentrated shareholders, such as families, to wealth expropriation. The lack of external monitors and disciplinary agents potentially permits them to pursue this path. Thus, monitoring activity is one of the major drawbacks in family controlled firms. The purpose of this paper is to provide an integrated analysis of the governance roles of various block‐holders, institutional investors and corporate boards in firm performance in the context of publicly‐listed family‐controlled firms.

Design/methodology/approach

Using a multi‐industry data set of 208 firms listed on the Milan Stock Exchange (MSE), this study employs the generalized method of moments (GMM) to address the issue of endogeneity on panel data over the period 200‐2006.

Findings

The results show that family firms have better accounting performance than non‐family firms. So, active family involvement in management positions seems to reduce managerial opportunism. However, higher accounting performance does not translate into an increase in valuation levels, and thus might not accrue to minority shareholders. Additionally, the results also show an alignment incentive between a coalition of large shareholders (two families) and firm value.

Research limitations/implications

This study provides empirical evidence consistent with a block‐holder coalition framework that sustains an incentive alignment effect of the coalition of large shareholders (two families) and the firm value. Additionally, the results also support evidence that board dominance is another channel through which families can extract private benefits.

Originality/value

This study contributes to understanding that the family firm performance depends on the efficiency of various governance mechanisms. Thus, it offers insights to policy makers to verify board appointment mechanisms used by family firms. Since external board members might be vetted and approved by the family or other dominant block‐holders, what is the extent of their independence from the dominant owners?

Details

Corporate Governance: The international journal of business in society, vol. 13 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Book part
Publication date: 30 October 2004

David A. Kravitz and Stephen L. Klineberg

Affirmative action and diversity management are complementary efforts to achieve an inclusive workforce. Research on attitudes toward affirmative action can therefore…

Abstract

Affirmative action and diversity management are complementary efforts to achieve an inclusive workforce. Research on attitudes toward affirmative action can therefore contribute to an understanding of reactions to diversity programs. Using data from two studies, we assess the extent to which the strength of the affirmative action plan (AAP) influences the relationship between attitudes and individual difference predictors. The relation of attitudes with the respondents’ race and perceived self-interest increased monotonically with AAP strength, whereas measures of racial prejudice and political orientation best predicted attitudes toward AAPs of intermediate strength. We explore the implications of these findings for the theory and practice of diversity management.

Details

Diversity in the Work Force
Type: Book
ISBN: 978-0-76230-788-3

Article
Publication date: 1 May 1997

Chong M. Lau, Liang C. Low and Ian R. C. Eggleton

Examines the three‐way interaction between budget emphasis, participation and task difficulty affecting managerial performance within the framework suggested by Harrison…

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Abstract

Examines the three‐way interaction between budget emphasis, participation and task difficulty affecting managerial performance within the framework suggested by Harrison (1992) with a sample of 197 functional heads from Singaporean and Australian manufacturing companies. The results support a three‐way interaction between budget emphasis, budgetary participation and task difficulty affecting managerial performance and second, cultural differences between Singapore and Australia (pertaining to power distance) which interact neither with budgetary participation nor budget emphasis. The results also suggest that high budgetary participation (regardless of budget emphasis) in high task difficulty situations and high budget emphasis (regardless of budgetary participation) in low task difficulty situations are associated with improved managerial performance in Singapore and Australia.

Details

Accounting, Auditing & Accountability Journal, vol. 10 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

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