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1 – 10 of over 1000Somchai Supattarakul and Sarayut Rueangsuwan
Prior research on meeting or beating earnings thresholds documents that firms with earnings momentum are awarded with valuation premiums. However, it is unclear from this strand…
Abstract
Purpose
Prior research on meeting or beating earnings thresholds documents that firms with earnings momentum are awarded with valuation premiums. However, it is unclear from this strand of literature why this is the case. Therefore, this study aims to investigate the effects of time-varying earnings persistence on earnings momentum and their pricing effects.
Design/methodology/approach
This study exploits a firm that reports earnings momentum as research setting to examine whether earnings persistence is significantly higher for firms with consecutive earnings increases. In addition, it investigates a relation between earnings momentum and fundamentals-driven earnings persistence and estimates return associations of earnings momentum conditional on economic-based persistence of earnings.
Findings
The empirical evidence suggests that firms with earnings momentum reflect higher time-varying earnings persistence. It further reveals that longer duration of earnings momentum is associated with higher fundamentals-driven earnings persistence. More importantly, valuation premiums are exclusively assigned to earnings momentum determined by strong firm fundamentals, not momentum itself.
Originality/value
This study provides new empirical evidence that valuation premiums accrued to firms with earnings momentum are conditional on time-varying earnings persistence. The research implications are relevant to investors, regulators and auditors, as the results bring conclusions that earnings momentum reflects successful business models not poor accounting quality. This leads to a more complete view of earnings momentum and helps allocate resources when evaluating earnings-momentum firms.
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The purpose of this paper is to investigate the relationship between tax avoidance and earnings persistence in the light of a developing economy, with the main focus on China.
Abstract
Purpose
The purpose of this paper is to investigate the relationship between tax avoidance and earnings persistence in the light of a developing economy, with the main focus on China.
Design/methodology/approach
In the analysis, the author conducts a survey on the tax avoidance situation of Chinese listed companies from 2012 to 2020. Then, a multivariate regression analysis is performed in order to analyse the relationship between corporate tax avoidance and earnings persistence.
Findings
The findings of the present study show that tax avoidance has a significant positive effect on earnings persistence. However, when the degree of tax avoidance is high, the “risk effect” of tax avoidance exceeds the “value effect”, and tax avoidance will reduce the persistence of earnings. This conclusion is even more prominent when the company is non-state-owned. Further research shows the increase of institutional investors’ shareholding ratio can improve “value effect” of tax avoidance, lessen “risk effect” of tax avoidance, and positively affect the relationship between tax avoidance and earnings persistence.
Practical implications
This study provides evidence for investors to understand the dual effect of tax avoidance on earnings persistence. The results may have implications for regulatory bodies. They can provide a better understanding of the corporate governance role of institutional investors in curbing opportunistic tax avoidance.
Originality/value
This study enriches the research on tax avoidance effects by analysing the impact of tax avoidance on earnings persistence. This study also compensates for the shortcomings of analysing earnings persistence mainly from the perspective of tax differences in the past, and promotes the study of the corporate governance effects of institutional investors under different levels of tax avoidance.
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Francesco Salomone Marino and Maria Berrittella
The main aim of this study is to investigate the role of fathers and mothers in the intergenerational educational persistence for sons and daughters under two dimensions that…
Abstract
Purpose
The main aim of this study is to investigate the role of fathers and mothers in the intergenerational educational persistence for sons and daughters under two dimensions that characterize the clusters of countries: redistributive policy and governance.
Design/methodology/approach
Data from the Global Database of Intergenerational Mobility (GDIM), hierarchical cluster analysis on principal components and panel regression are used in this study to estimate intergenerational educational correlation and to investigate its determinants related to the parents’ and descendants’ education variables in 93 countries grouped in four clusters. The empirical analysis is differentiated by gender combinations of parents and descendants.
Findings
In the clusters of countries characterized by high inequalities and poor governance, our findings show that the role of the fathers is stronger than that of the mothers in educational transmission; fathers and mothers are more influential for the daughters rather than for the sons; parental educational privilege is the main driver of intergenerational educational persistence; there is an inverse U-curve in the association between educational inequality of the parents and educational correlation for the sons. Differently, in the countries characterized by high income, low redistributive conflict and better governance, the role of the mothers is stronger and education mobility for the daughters is higher than that for the sons.
Social implications
The authors’ results remark on the importance of social welfare policies aimed to expand a meritocratic public education system including schooling transfers for lower social class students and narrowing the gender gap in educational mobility between daughters and sons. Social welfare policies should also be oriented to spread high quality child care systems that help to foster greater women equality in the labor market, because the strength of educational persistence depends on the position of the mother in the economic hierarchy.
Originality/value
The distinctiveness of the paper can be found in the fact that this study investigates the parental role differentiating by gender and coupling hierarchical cluster analysis on principal components with panel regression models. This allows us to have a sample of 93 countries aggregated in four groups defined in two dimensions: redistributive policy and governance. Amongst the determinants of educational transmission, we consider not only education’s years of the parents but also other determinants, such as educational inequality and privilege of the parents. We also identify the effects of investment in human capital and educational inequalities for the descendants on education mobility.
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Chukwuemeka Christian Onwe, Vitalis Chinedu Ndu, Michael Onwumere and Monday Icheme
The purpose of this study was to explore the relationship between entrepreneurial passion for founding firms (EPFF) and persistence in venture start-ups and to examine the…
Abstract
Purpose
The purpose of this study was to explore the relationship between entrepreneurial passion for founding firms (EPFF) and persistence in venture start-ups and to examine the mediating role of searching and scanning alertness, association and connection alertness and evaluation and judgment alertness (i.e. entrepreneurial alertness).
Design/methodology/approach
Using a three-way parallel mediation involving searching and scanning alertness, association and connection alertness and evaluation and judgment alertness, on data from 342 serial entrepreneurs from Nigeria, the authors examined the influence of EPFF on persistence in venture start-ups, through a parallel mediation involving searching and scanning alertness, association and connection alertness and evaluation and judgment alertness.
Findings
The authors find that EPFF was not significantly related (positive) to persistence in venture start-ups, but that searching and scanning alertness, association and connection alertness and evaluation and judgment alertness mediated the path through which EPFF impacts persistence in venture start-ups. Thus, entrepreneurial alertness is relevant in explaining the relationship between EPFF and persistence in venture start-ups in Nigeria.
Originality/value
The findings of this study highlight the relevance of EPFF and alertness in explaining persistence in venture start-ups in Nigeria.
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Alejandra Parrao, Tomás Reyes, Alfonso Cruz and Kristel Schön Molina
Previous evidence has shown a generally positive relationship between continuously developed innovation, known as innovation persistence and employment growth in firms. This study…
Abstract
Purpose
Previous evidence has shown a generally positive relationship between continuously developed innovation, known as innovation persistence and employment growth in firms. This study investigates whether firm size moderates this relationship and how, considering persistent product and process innovation.
Design/methodology/approach
The authors studied the influence of firm size on the relationship between innovation persistence and employment using a 10-year panel database of firms based on national innovation surveys. The authors consider firm size as sales and measure innovation persistence through the hazard rate of innovation spells. To assess the main model, they use a system generalized method of moments (GMM) estimator.
Findings
The authors' main findings indicate that firm size negatively moderates the relationship between persistent innovation and employment growth. These results suggest that the positive effects of product and process persistent innovation on employment growth decrease as firm size increases. The authors also find evidence indicating that the moderator role of firm size is greater when firms innovate more persistently. Robustness tests with different specifications confirm the results.
Originality/value
The authors show that firm size negatively affects the strength of the relationship between innovation persistence and employment growth in product and process innovations. The authors also show that the moderator role of firm size is greater when firms are more persistent in generating product and process innovation. Additionally, using a panel dataset, they provide evidence from a sample of firms in a developing country where no studies on this matter have previously been conducted.
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Mohsen Ali Murshid, Zurina Mohaidin, Mohammad Zayed, Mohammed Alawi Al-Sakkaf and Mohammed A. Al-Hakimi
Although there is evidence that the efforts of pharmaceutical marketing exert a positive and significant influence on physician prescription decisions, the specific mechanisms by…
Abstract
Purpose
Although there is evidence that the efforts of pharmaceutical marketing exert a positive and significant influence on physician prescription decisions, the specific mechanisms by which this impact occurs remain uncertain. To address this issue, this study aims to investigate whether the physician’s habit persistence may explain the relationship between marketing efforts such as brand attributes and drug promotion and prescribing behavior. This study also explores whether there was any significant difference between specialists and general practitioners (GPs) regarding the effect of brand attributes and drug promotion on physician’s habit persistence, which influences prescribing behavior.
Design/methodology/approach
A survey instrument was administered to physicians, encompassing specialists in a particular field and GPs who provide primary care services. A nonparametric partial least squares multigroup analysis was used to analyze 393 valid responses using partial least squares-structural equation modeling.
Findings
The results indicate that the decision to prescribe the drug may be affected by the physician’s habit persistence in the presence of vital brand attributes and drug promotion. The relationship between physician’s habit persistence and prescribing behavior is significant in GPs and specialist groups. The findings also reveal that brand attributes are the most influential and significant determinant of physician’s habit persistence in the GPs group. In addition, physician specialists are more aware of the influence of drug promotion initiatives than GPs. Furthermore, this study discovered that the relationship between drug promotion and physician’s habit persistence indicates a significant difference between specialists and GPs.
Originality/value
Although several marketing scholars discuss the factors influencing prescribing behavior, a few studies have shown the role of brand attributes and drug promotion and their effect on physician’s habit persistence. This study will specifically contribute by examining the mediating role of physician’s habit persistence between marketing efforts and prescribing behavior. In addition, so far, no studies have effectively made a comparative analysis across physicians regarding the effect of marketing efforts on physician’s habit persistence and prescribing behavior.
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Bruvine Orchidée Mazonga Mfoutou and Yuan Tao Xie
This study aims to examine the solvency and performance persistence of defined benefit private and public pension plans (DBPPs) in the Republic of Congo.
Abstract
Purpose
This study aims to examine the solvency and performance persistence of defined benefit private and public pension plans (DBPPs) in the Republic of Congo.
Design/methodology/approach
The authors use the 2 × 2 contingency table approach and the time product ratio (TPR)-based cross-product ratio (CPR) on data covering ten years from 2011 to 2020, with variable funded ratios and excess returns, to determine the solvency and performance persistence of defined benefit pension plans.
Findings
The authors document a lack of solvency and performance persistence in DBPP funds. They conclude that the solvency and performance of DBPP funds are not repetitive. The previous year's private and public defined benefit pension funds’ results do not repeat in the current year. Hence, the current solvency and performance of defined benefit pension funds are not good predictors of future funds' solvency and performance.
Originality/value
To the best of the authors’ knowledge, this study is the first to combine solvency and performance to examine the persistence of defined benefit pension plans in sub-Saharan Africa.
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Swati Alok, Sudatta Banerjee and Navya Kumar
This study aims to identify demographic characteristics, personal attributes and attitudes and social support factors that adversely or favourably affect the likelihood of career…
Abstract
Purpose
This study aims to identify demographic characteristics, personal attributes and attitudes and social support factors that adversely or favourably affect the likelihood of career persistence amongst women workers of the Indian IT sector.
Design/methodology/approach
The research, grounded in the social cognitive career theory, analyses primary data collected from 850 women working in IT via a survey. Based on an original definition of career persistence, the sample was segregated into 427 persistent and 423 non-persistent women. Logistic regression was performed to test for the effect of various determinants on the likelihood of women being career persistent versus non-persistent.
Findings
Being married, having children, as well as high levels of belief in gender disadvantage and work–family conflict lowered the likelihood of career persistence amongst women. While being a manager, possessing high career identity, high occupational culture fit, positive psychological capital and family support boost the likelihood.
Originality/value
The study examines women's actual continuance in an IT career vis-à-vis exit from the workforce/IT field, rather than women's stated intent to persist/quit as previously investigated. It uses logistic regression to identify both hurdles and aids on the path of women's career persistence. The findings can help recognize women more likely to struggle, thus be a first step in targeted organizational interventions to plug a leaky talent pipeline.
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The present study aims to examine the relationship between real earnings management and earnings persistence and also to test how the group affiliation of the firms influences…
Abstract
Purpose
The present study aims to examine the relationship between real earnings management and earnings persistence and also to test how the group affiliation of the firms influences this relationship.
Design/methodology/approach
The study draws the sample of listed non-financial firms in the Indian market from the year 2011 to 2018 and applies panel least squares regression with industry and year fixed effects. Future performance of a firm is measured by one year leading value of return on assets. The interaction term of real earnings management and return on assets is used to measure the impact of real earnings management on earnings persistence. The firm-specific controlling variables are also included in the empirical model. The robustness of the results is tested by sub-dividing the sample into group affiliated and non-group affiliated firms.
Findings
The findings of the study reveal that opportunistic earnings management has a significant impact on earnings persistence when real earnings management is measured through abnormal increase in operating cash flows and abnormal reduction in discretionary expenditure. On the other hand, signalling earnings management has a significant impact on earnings persistence when real earnings management is measured through abnormal increase in the level of production. The results also reveal that REM has more negative implications on group affiliated firms compared to non-group affiliated firms supporting the theory of entrenchment effect.
Originality/value
This is the first study in the Indian context which tests the implications of real earnings management on earnings persistence by using three alternative measures of real earnings management. The study contributes to the existing literature on the implications of real earnings management in emerging markets like India.
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This study examined the students' academic performance through psychological capital, academic engagement and academic persistence. It also investigated the function of…
Abstract
Purpose
This study examined the students' academic performance through psychological capital, academic engagement and academic persistence. It also investigated the function of psychological capital in mediating the relationship between academic engagement, persistence and performance.
Design/methodology/approach
The study utilized a quantitative method and structural equation modeling using PLS-SEM version 3. A total of 900 questionnaires were issued to Chinese university students, and 814 data were analyzed.
Findings
Findings suggest that academic engagement and persistence significantly and positively impact psychological capital. Psychological capital is also mediated between academic engagement, persistence and performance. Additionally, the study made several recommendations for upcoming researchers and industry professionals.
Originality/value
Analyzing the pupils' academic achievement after COVID-19 reopening as it indicates their attention and engagement in the study. Although previous studies explored students' academic performance regarding the post-COVID effect, the role of psychological capital and engagement in academia in the study has been studied in a post-COVID context.
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