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21 – 30 of over 50000Adnan Muhammad Shah, Wazir Muhammad and KangYoon Lee
This study examines how service feedback and physician popularity affect physician demand in the context of virtual healthcare environment. Based on the signaling theory, the…
Abstract
Purpose
This study examines how service feedback and physician popularity affect physician demand in the context of virtual healthcare environment. Based on the signaling theory, the critical factor of environment uncertainty (i.e. disease risk) and its impact on physician demand is also investigated. Further, the research on the endogeneity of online reviews in healthcare is also examined in the current study.
Design/methodology/approach
A secondary data econometric analysis using 3-wave data sets of 823 physicians obtained from two PRWs (Healthgrades and Vitals) was conducted. The analysis was run using the difference-in-difference method to consider physician and website-specific effects.
Findings
The study's findings indicate that physician popularity has a stronger positive effect on physician demand compared with service feedback. Improving popularity leads to a relative increase in the number of appointments, which in turn enhance physician demand. Further, the impact of physician popularity on physician demand is positively mitigated by the disease risk.
Originality/value
The authors' research contributes to a better understanding of the signaling transmission mechanism in the online healthcare environment. Further, the findings provide practical implications for key stakeholders into how an efficient feedback and popularity mechanism can be built to enhance physician service outcomes in order to maximize the financial efficiency of physicians.
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This paper examines the dynamic determinants of signaling firm’s market value. The underlying assumption is that when a firm changes its capital structure, it actually changes the…
Abstract
This paper examines the dynamic determinants of signaling firm’s market value. The underlying assumption is that when a firm changes its capital structure, it actually changes the relative position and the market values of its capital suppliers’ securities holdings. As for the determinants of capital structure, the paper examines a comprehensive number of factors that have been examined or pointed out in the literature. The paper utilizes the properties of partial adjustment model where the desired (or target) level of market value is adjusted according to both of the changes in actual market values and changes in firm’s capital structure. The results indicate that firm’s market value is not affected by neither factors of tradeoff theory nor free cash flow theories of capital structure. If firm’s liquidity position is taken as a source of short‐term financing, the results indicate that factors of pecking order theory do exist. The premises of dividend irrelevancy and information asymmetry do exist with a negative estimate of the dividend payout ratio. The results also indicate that firms’ financial‐agency signaling is affected by eight factors. These factors are (1) debt financing, (2) bankruptcy risk, (3) type of industry, (4) size, (5) financial flexibility, (6) liquidity position, (7) interest rate and (8) transaction costs of borrowing or paying off debt.
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Laura Lucia-Palacios, Victoria Bordonaba-Juste, Melih Madanoglu and Ilan Alon
The purpose of this paper is to demonstrate how signaling support services and contractual arrangements that create value for incumbent franchisees can help to create value for…
Abstract
Purpose
The purpose of this paper is to demonstrate how signaling support services and contractual arrangements that create value for incumbent franchisees can help to create value for the whole network by attracting prospective franchisees.
Design/methodology/approach
Using data from Bond's Franchising Report the study analyses franchisors operating between 1994 and 2008 via a Generalized Method of Moments (GMM) model for an unbalanced panel of 2,474 franchisors.
Findings
Training, financial assistance, sub-franchising and restrictions against passive ownership, and the use of area development agreements are found to be valuable for prospective franchisees. Experience and the number of company-owned and franchised units also attract prospective franchisees.
Research limitations/implications
Our findings imply that not all value-creating services and contractual arrangements are interpreted in the same way by prospective franchisees. Franchisors should offer training and financial assistance to new franchisees in the early stages of a franchise. They should also allow sub-franchising but restrict passive ownership and offer the possibility for area development agreements as contractual arrangements to appeal to new franchisees. Franchisors should focus not only on expansion, but should view the chain in a holistic manner by sustaining and growing both franchised and company-owned units.
Originality/value
The findings contribute to the franchising literature by providing new evidence on how offering and signaling some contractual arrangements and support services can help franchisors create value for incumbent franchisees and can attract new franchisees. Our research shows that value in franchising is created differently depending on whether the franchisees are incumbent or prospective.
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The chapter explores how different theoretical traditions address the gaps between talk (symbolic communication practices) and actions (substantive performance) in organisations…
Abstract
The chapter explores how different theoretical traditions address the gaps between talk (symbolic communication practices) and actions (substantive performance) in organisations. The chapter details the main theoretical approaches in greenwashing research, namely legitimacy theory, attribution theory, institutional theory, signaling theory, impression management approaches and constructivist approaches. Among these latter, Communicative Constitution of Organizations (CCO) challenges the dominant view in literature and suggests abandoning the traditional dichotomy of talk versus action. The different approaches to studying greenwashing are presented along with main questions and research methods used in each field and sub-field of study. For each theoretical approach the main research trends and novel research questions are proposed. Researchers, doctoral and post-graduate students may appreciate this as standalone contribution to guide their future studies in this area, by designing their research avenues based on the best practices in the field.
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Keith James Kelley and Yannick Thams
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we…
Abstract
In this chapter, we explore the multilevel nature of reputation from a shared value perspective. Building on a large body of literature surrounding corporate reputation, we discuss how the creation of reputational value at the firm level may also lead to value shared by the industries and countries in which a firm operates, and vice versa. In examining the recursive and dynamic relationships, strategic implications emerge with regard to managing reputations globally. We argue that the value of reputation is determined by the ability to meet the expectations of stakeholders with respect to what they as an audience perceive as important. Stakeholders’ expectations and perceptions of what is valuable fluctuate across different markets and the more heterogeneous the markets in which a firm diversifies internationally, the more difficult it will be to manage all these expectations. By building on our understanding of firm, industry, and country reputation, and the recursive relationships between them, we contend that creating shared value (CSV), as part of the global reputation management process (GRM), is likely to be easier when there is contextual similarity and limited product diversification. Building on previous frameworks, and employing signaling theory, we create a simplified model of GRM that highlights CSV in the form of multilevel reputation. Distinctions are drawn between being efficient and effective as part of the GRM process and a corresponding typology is created. The chapter concludes with a discussion of strategic implications, alongside a few recommendations, and possible directions for future research.
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Weihua Liu, Wanying Wei, Cheng Si, Dong Xie and Lujie Chen
This study empirically examines the impact of announcements on supply chain strategic collaboration (SCSC) on companies' shareholder value.
Abstract
Purpose
This study empirically examines the impact of announcements on supply chain strategic collaboration (SCSC) on companies' shareholder value.
Design/methodology/approach
This study analyzes changes in shareholder value of companies listed in China based on data of 208 SCSC announcements. The signaling theory is applied to determine correlation among SCSC announcements and the market. An event study is used to estimate the stock market reaction to SCSC announcements. The common market model estimates stock abnormal returns after the event. The least squares method and regression model calculate the model parameter value.
Findings
There is a positive and statistically significant relationship between SCSC announcement and shareholder value. Market reaction to product development collaboration is significantly higher than to technology-sharing collaboration, market collaboration, and other SCSC types. The market reacts more positively to suppliers and companies with greater supply chain control power than to buyers and companies with lower control power. Announcements from the service supply chain can lead to stronger market reactions than those from manufacturing supply chains.
Practical implications
The findings provide a systematic assessment of how SCSC announcements contribute to firms' shareholder value. The result provides a benchmark of value promotion that can be expected from SCSC announcements.
Originality/value
This study fills the research gap that using secondary data to assess changes in companies’ shareholder value caused by SCSC announcements and firstly examines these changes by constructing the signaler–signal–receiver progress based on signaling theory. The research results provide a new reference and inspiration for deeper understanding of the impact mechanism of SCSC. Furthermore, this study contributes to the development of the signaling theory using an empirical study in an emerging market, China.
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Mohammad Alamgir Hossain, Shams Rahman, Tamgid Ahmed Chowdhury, Caroline Chan, Xiaoyan Yang and Qingxin Su
A major transformation in retail logistics over the few years is backed by enormous improvements in internet technologies. It is now easy for e-retailers to entertain delivery…
Abstract
Purpose
A major transformation in retail logistics over the few years is backed by enormous improvements in internet technologies. It is now easy for e-retailers to entertain delivery progression, or consumers can share use-experience with future customers and thereby reducing information asymmetry. The purpose of this paper is to investigate the effect of different signals on consumer behavior in the presence of information asymmetry, in the context of online group buying (OGB) markets in China.
Design/methodology/approach
Based on the lemon market theory (LMT) and signaling theory, the study develops a research model of the OGB consumers’ context in China, which is validated using data from an online survey. A total of 528 responses are used for data analysis applying structural equation modeling technique.
Findings
The findings of the study show that perceived vendor quality (PVQ) and perceived product quality (PPQ) have significantly positive effects on intention to purchase from OGB websites. PVQ is associated with perceived reputation and perceived trustworthiness (PT) of vendor, and the determinants of PPQ are quality assurance information of products, and information about mer-chants. Further, PT has a mediating effect, while asymmetry of information has a moderating effect.
Research limitations/implications
The research model is valid as a generic OGB model that can be investigated in other contexts to understand the generalizability of the findings. Future research is needed to incorporate additional relevant factors (e.g. price, advertising activity/investments) that may help increase the acceptability of the model to a wide range of e-commerce contexts. Two of the control variables (gender and prior internet experience) were found to be significant; this could be further examined in future studies to determine the relative impact on each causal relationship.
Originality/value
Whereas prior studies in the domain of consumer service proposed different signaling mechanisms that were believed to eliminate information asymmetry from a market, the study sheds light on the effectiveness of the signals in the OGB context. This is a unique effort that applies and extends LMT and signaling theory in OGB context by theorizing the associated dimensions and their causal effects.
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Investigates the effectiveness of corporate name change signaling in the services industry. Argues that previous studies on the subject are lacking because they failed to…
Abstract
Investigates the effectiveness of corporate name change signaling in the services industry. Argues that previous studies on the subject are lacking because they failed to distinguish between the services and manufacturing sectors. Uses the trend analysis method and examines the movement of price‐earning ratios during a five‐year period before and after the name change. Evaluates the effectiveness of the name change signaling strategy by testing the difference in means of the “before and after” P/E ratios. Finds that firms who announce name change together with other managerial decisions and regularly release news on other firm‐specific activities fared much better than firms which did not release such information.
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He Wan, Jialiang Fu and Xi Zhong
Although the impact of environmental, social and governance (ESG) on firms' innovation has attracted attention, the existing research findings diverge. The authors believe that…
Abstract
Purpose
Although the impact of environmental, social and governance (ESG) on firms' innovation has attracted attention, the existing research findings diverge. The authors believe that failure to consider both innovation input and output is an important reason for the divergence of conclusions in the extant literature when discussing the impact of ESG and firm innovation. Thus, based on signaling theory, this study aims to reconcile these divergent findings by examining the impact of ESG performance on firms' innovation efficiency.
Design/methodology/approach
To seek empirical evidence to support the authors’ theoretical view, the authors conduct an empirical test based on the Tobit model using 8 years of data from Chinese listed companies.
Findings
Although ESG performance effectively improves firms' innovation efficiency, the institutional-level signaling environment (including state-owned firms and regional market development) weakens the positive effect of ESG performance on firms' innovation efficiency. Further tests suggest that financing constraints partially mediate the relationship between ESG performance and firms' innovation efficiency.
Originality/value
By systematically revealing whether, how and under what circumstances ESG performance improves firms' innovation advantages, this study bridges the gap in the existing literature and highlights important implications to suggest how firms can better capture the value associated with ESG.
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Tera L. Galloway and Douglas R. Miller
This paper aims to examine the impact of a firm’s governance characteristics on the signals released during the initial public offering (IPO) process. This paper focuses on the…
Abstract
Purpose
This paper aims to examine the impact of a firm’s governance characteristics on the signals released during the initial public offering (IPO) process. This paper focuses on the role of the firm’s founder and how different signals convey or diminish agency issues of adverse selection and moral hazard prior to IPO. This study also explores the performance impact (underpricing) of firm founder involvement on signal effectiveness.
Design/methodology/approach
This paper examines 122 firms during the IPO process to determine the influence that the founder’s presence, position and ownership has on signaling behaviors as well as on firm performance.
Findings
The authors find that founders influence how often the firm files amendments to the prospectus. Furthermore, the results suggest that agency-reducing signals are complicated and can interact to enhance either positive or negative signals that impact underpricing at IPO.
Research limitations/implications
The findings offer insights concerning how signalers can more effectively manage multiple signals that may interact negatively with firm characteristics. This study also provides contributions to both signaling and agency theories, discusses implications for practitioners and suggests opportunities for future research.
Practical implications
This has important implications for founders and managers of firms approaching IPO. The results suggest that founders are better off filing fewer addendums to their S-1 during the IPO process as this decreases underpricing. Underwriters and investors will be interested in these outcomes as identifying signals is an important factor when pricing firm valuation. Similarly, investors seek to identify firms that have a higher likelihood of underpricing because underpricing increases investor recognition and subsequent long-term impact on performance.
Originality/value
The findings offer insights concerning how signalers can more effectively manage multiple signals that may interact negatively with firm characteristics. The authors extend research in entrepreneurship and marketing by exploring indirect ways firms can communicate to investors using signaling, to increase value during the IPO process. This study provides contributions to both signaling and agency theories, discusses implications for practitioners and suggests opportunities for future research.
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