Purpose: This paper aims to examine the impact of price movements in 52-week highs on a 52-week high momentum strategy. This study refers to the upward or downward movement in 52- week highs as an updating effect and determines how this effect influences the profitability of the original 52-week high momentum strategy. Design/methodology/approach: This paper decomposes the ratio of stock price to 52-week high into denoted two components: price change and updating components. We construct two momentum strategies, each focusing on adjusting either the price change or the updating component. Additionally, we employ a portfolio approach and Fama-MacBeth regression analysis to investigate the profitability of each proposed momentum strategy. Findings: The empirical results reveal that removing the price change component (updating component) from the original 52-week high measure can increases (decreases) the momentum profit, implying that the updating component dominates the price change component. Moreover, our analysis shows that when a high ratio of stock price to 52-week high is driven by a downward updating event, the subsequent positive momentum for a winner portfolio is more substantial. Research limitations/implications: This paper investigates the influence of 52-week highs movement on momentum strategies, utilizing data from Taiwan stock market. The findings reveal that accounting for the updating effect of 52-week highs can enhance the profitability of the original momentum strategy. However, it is important to note that this conclusion is currently limited to relatively inefficient stock markets. The impact on relatively efficient markets remains an area that requires further research for a comprehensive understanding. Originality/value: The finance literature widely acknowledges the 52-week high price as a reference point that can impact investors' trading psychology. Numerous empirical studies have confirmed the profitability of the 52-week high momentum investing strategy. However, these studies have not thoroughly explored the implications and effects of price movements within the scope of a 52-week high momentum strategy. Taking behavioral perspectives into account, this paper considers that the updating of 52-week high prices can influence investors' attention and subsequently impact the profitability of the momentum strategy.
{"title":"The Effect of the Movement in 52-Week High on Momentum Profit: The Evidence from Taiwan","authors":"Li-Chuan Liao, Tzu-Pu Chang, Ping-Huang Wang","doi":"10.25103/ijbesar.161.07","DOIUrl":"https://doi.org/10.25103/ijbesar.161.07","url":null,"abstract":"Purpose: This paper aims to examine the impact of price movements in 52-week highs on a 52-week high momentum strategy. This study refers to the upward or downward movement in 52- week highs as an updating effect and determines how this effect influences the profitability of the original 52-week high momentum strategy. Design/methodology/approach: This paper decomposes the ratio of stock price to 52-week high into denoted two components: price change and updating components. We construct two momentum strategies, each focusing on adjusting either the price change or the updating component. Additionally, we employ a portfolio approach and Fama-MacBeth regression analysis to investigate the profitability of each proposed momentum strategy. Findings: The empirical results reveal that removing the price change component (updating component) from the original 52-week high measure can increases (decreases) the momentum profit, implying that the updating component dominates the price change component. Moreover, our analysis shows that when a high ratio of stock price to 52-week high is driven by a downward updating event, the subsequent positive momentum for a winner portfolio is more substantial. Research limitations/implications: This paper investigates the influence of 52-week highs movement on momentum strategies, utilizing data from Taiwan stock market. The findings reveal that accounting for the updating effect of 52-week highs can enhance the profitability of the original momentum strategy. However, it is important to note that this conclusion is currently limited to relatively inefficient stock markets. The impact on relatively efficient markets remains an area that requires further research for a comprehensive understanding. Originality/value: The finance literature widely acknowledges the 52-week high price as a reference point that can impact investors' trading psychology. Numerous empirical studies have confirmed the profitability of the 52-week high momentum investing strategy. However, these studies have not thoroughly explored the implications and effects of price movements within the scope of a 52-week high momentum strategy. Taking behavioral perspectives into account, this paper considers that the updating of 52-week high prices can influence investors' attention and subsequently impact the profitability of the momentum strategy.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135567705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maria Argyropoulou, Wynne Aprilia, Rachel Argyropoulou, Dionisia Tzavara
Purpose: Employees in any workplace around the world should feel motivated to achieve optimal results. Older and more recent research in this area demonstrates the importance of motivation to employee productivity and organizational performance. This research aims to determine not only the role of work motivation on employee performance but also the magnitude of its impact, both theoretically and practically. Design/methodology/approach: Quantitative data were gathered by using a questionnaire with 27 close-ended questions. Data was collected from 150 employees in Indonesia with at least one year of work experience. The analysis of this study is carried out with the program SPSS 26. Findings: The results of this study show a positive relationship between employee motivation and employee performance, which supports previous research findings and underscores the importance of motivation as an effective tool for today's managers who must respond to unprecedented challenges in a rapidly changing environment. The most important finding from this research is that financial awards is not a statistically significant predictor of employee performance which supports the theory that intrinsic rewards play the most important role in motivational strategy. Research limitations/implications: Data from respondents in Indonesia were used for this study. Further research in other international locations is needed to generalise the findings globally. The results of this research suggest that companies, especially those with a majority of employees between the ages of 18 and 29, should strengthen mutual relationships within the company, involve employees in the decision-making process, and provide more opportunities for career advancement, promotions, and employee participation to improve the performance of their employees. Originality/value: This study contributes to theory by going a step further and examining the impact of three specific factors on employee performance: financial factors, career aspirations, and mutual relationships.
{"title":"Exploring the Impact of Financial and non-Financial Motives on Employee Performance. A Survey of Indonesian Employees.","authors":"Maria Argyropoulou, Wynne Aprilia, Rachel Argyropoulou, Dionisia Tzavara","doi":"10.25103/ijbesar.161.04","DOIUrl":"https://doi.org/10.25103/ijbesar.161.04","url":null,"abstract":"Purpose: Employees in any workplace around the world should feel motivated to achieve optimal results. Older and more recent research in this area demonstrates the importance of motivation to employee productivity and organizational performance. This research aims to determine not only the role of work motivation on employee performance but also the magnitude of its impact, both theoretically and practically. Design/methodology/approach: Quantitative data were gathered by using a questionnaire with 27 close-ended questions. Data was collected from 150 employees in Indonesia with at least one year of work experience. The analysis of this study is carried out with the program SPSS 26. Findings: The results of this study show a positive relationship between employee motivation and employee performance, which supports previous research findings and underscores the importance of motivation as an effective tool for today's managers who must respond to unprecedented challenges in a rapidly changing environment. The most important finding from this research is that financial awards is not a statistically significant predictor of employee performance which supports the theory that intrinsic rewards play the most important role in motivational strategy. Research limitations/implications: Data from respondents in Indonesia were used for this study. Further research in other international locations is needed to generalise the findings globally. The results of this research suggest that companies, especially those with a majority of employees between the ages of 18 and 29, should strengthen mutual relationships within the company, involve employees in the decision-making process, and provide more opportunities for career advancement, promotions, and employee participation to improve the performance of their employees. Originality/value: This study contributes to theory by going a step further and examining the impact of three specific factors on employee performance: financial factors, career aspirations, and mutual relationships.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135567706","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The main aim of the study was to investigate the impact of parental financial socialisation on financial knowledge of young black African adults in rural and low-income area in South Africa. This study was guided by family financial socialisation theory which is cognisant of the various family characteristics, such as family size and socioeconomic status, as predictors of financial outcome through their association with family socialisation process. Design/methodology/approach: The study used quantitative approach and survey design. Primary data on parental financial socialisation was collected from structured questionnaires. A survey was carried out on 500 young black African adults in Fetakgomo Tubatse and Intsika Yethu municipalities. The research hypotheses were tested using structural equation modelling (SEM) analysis. Findings: The study found that parental financial behaviour, parental financial discussion, parental financial communication, and parental financial teaching had significant positive impact on financial knowledge. It is observed that parental financial communication had the strongest impact on financial knowledge. Parental financial monitoring had a significant negative impact on financial knowledge. Thus, the overall results showed that parental financial socialisation has an impact on financial knowledge of young black African adults in rural and low-income area in South Africa. Research limitations/implications: Due to the low levels of general literacy among the respondents, which negatively affected data collection; some young adults did not understand the questionnaire and withdrew from participating in the study. Furthermore, even though confidentiality and anonymity were guaranteed, respondents were reluctant to participate in the study. They feared exposing their financial position and displayed a lack of trust. Originality/value: The current study contributed to the body of knowledge differently to the previous studies because it focused on parental financial socialisation of young black African adults in rural and low-income area. There is no study which has been conducted on parental financial socialisation impact on financial knowledge in rural and low-income area in South Africa. This makes this study so important and warrant that it should be carried out to provide the much-needed results that could help to improve the level of financial knowledge of young black African adults.
{"title":"Parental Financial Socialisation and Financial Knowledge: A Structural Equation Modelling Analysis","authors":"Adam Ndou","doi":"10.25103/ijbesar.161.03","DOIUrl":"https://doi.org/10.25103/ijbesar.161.03","url":null,"abstract":"Purpose: The main aim of the study was to investigate the impact of parental financial socialisation on financial knowledge of young black African adults in rural and low-income area in South Africa. This study was guided by family financial socialisation theory which is cognisant of the various family characteristics, such as family size and socioeconomic status, as predictors of financial outcome through their association with family socialisation process. Design/methodology/approach: The study used quantitative approach and survey design. Primary data on parental financial socialisation was collected from structured questionnaires. A survey was carried out on 500 young black African adults in Fetakgomo Tubatse and Intsika Yethu municipalities. The research hypotheses were tested using structural equation modelling (SEM) analysis. Findings: The study found that parental financial behaviour, parental financial discussion, parental financial communication, and parental financial teaching had significant positive impact on financial knowledge. It is observed that parental financial communication had the strongest impact on financial knowledge. Parental financial monitoring had a significant negative impact on financial knowledge. Thus, the overall results showed that parental financial socialisation has an impact on financial knowledge of young black African adults in rural and low-income area in South Africa. Research limitations/implications: Due to the low levels of general literacy among the respondents, which negatively affected data collection; some young adults did not understand the questionnaire and withdrew from participating in the study. Furthermore, even though confidentiality and anonymity were guaranteed, respondents were reluctant to participate in the study. They feared exposing their financial position and displayed a lack of trust. Originality/value: The current study contributed to the body of knowledge differently to the previous studies because it focused on parental financial socialisation of young black African adults in rural and low-income area. There is no study which has been conducted on parental financial socialisation impact on financial knowledge in rural and low-income area in South Africa. This makes this study so important and warrant that it should be carried out to provide the much-needed results that could help to improve the level of financial knowledge of young black African adults.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135568730","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The main aim of this study was to determine the intrinsic factors (total equity, trade receivable turnover, working capital turnover, long term debt, current ratio, debt to total assets ratio, debt to equity ratio, net sales revenue trend, total operating revenue trend, shareholders' equity trend, cash to total assets, current liabilities to total liabilities) that influence the financial performance of the Hotel Industry in select Central and Eastern European Union countries. Return on Assets (ROA) was used in this study as measure of financial performance. Design/methodology/approach: The paper uses panel data fixed effects model to examine dependent variable ROA as measure of the financial performance of select Tourism and Leisure Industry companies from Central and Eastern EU member states. The intrinsic factors were applied as independent variables. The applied panel data fixed effects model in the study was utilised to determine the impact of the intrinsic factors on financial performance. The data were obtained from EMIS data base. Overall data encompassed 614 companies from select eight Central and Eastern EU member states for the period 2015-2022. Findings: The model performed in this study discovered that intrinsic factors including total equity, trade receivable turnover, current ratio, debt to total assets ratio, as well as cash to total assets had a significant impact on the ROA. Total equity, current ratio, cash to total assets have positive impact as opposed to the trade receivable turnover debt to total asset, while years 2020 and 2021 had negative impact on the ROA. Research limitations/implications: This study was limited just on the select eight central and eastern European Union countries; moreover, the database EMIS used for this study lacks certain variables that are frequently used in similar studies. Result confirmed the importance of intrinsic factors and their influence on the financial performance of the leisure industry. Originality/value: This study contributes to the existing body of theory on financial performance through research on the new practitioners’ perception of the intrinsic factors relative to financial performance. There are very few empirical studies which examine financial performance variables in the Central and Eastern European leisure industry. Consequently, this study aims to bridge the gap between the available literature and body of research.
{"title":"Exploring the Intrinsic Factors Influencing Return on Assets: A Case Study of the Hotel Industry in Selected EU Countries","authors":"Goran Karanovic","doi":"10.25103/ijbesar.161.05","DOIUrl":"https://doi.org/10.25103/ijbesar.161.05","url":null,"abstract":"Purpose: The main aim of this study was to determine the intrinsic factors (total equity, trade receivable turnover, working capital turnover, long term debt, current ratio, debt to total assets ratio, debt to equity ratio, net sales revenue trend, total operating revenue trend, shareholders' equity trend, cash to total assets, current liabilities to total liabilities) that influence the financial performance of the Hotel Industry in select Central and Eastern European Union countries. Return on Assets (ROA) was used in this study as measure of financial performance. Design/methodology/approach: The paper uses panel data fixed effects model to examine dependent variable ROA as measure of the financial performance of select Tourism and Leisure Industry companies from Central and Eastern EU member states. The intrinsic factors were applied as independent variables. The applied panel data fixed effects model in the study was utilised to determine the impact of the intrinsic factors on financial performance. The data were obtained from EMIS data base. Overall data encompassed 614 companies from select eight Central and Eastern EU member states for the period 2015-2022. Findings: The model performed in this study discovered that intrinsic factors including total equity, trade receivable turnover, current ratio, debt to total assets ratio, as well as cash to total assets had a significant impact on the ROA. Total equity, current ratio, cash to total assets have positive impact as opposed to the trade receivable turnover debt to total asset, while years 2020 and 2021 had negative impact on the ROA. Research limitations/implications: This study was limited just on the select eight central and eastern European Union countries; moreover, the database EMIS used for this study lacks certain variables that are frequently used in similar studies. Result confirmed the importance of intrinsic factors and their influence on the financial performance of the leisure industry. Originality/value: This study contributes to the existing body of theory on financial performance through research on the new practitioners’ perception of the intrinsic factors relative to financial performance. There are very few empirical studies which examine financial performance variables in the Central and Eastern European leisure industry. Consequently, this study aims to bridge the gap between the available literature and body of research.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135567710","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The article aims to highlight the concept of risk management in maritime transportation accidents in the specialized literature on the Web of Sciences database through existing materials. Design/methodology/ approach: The keyword study identifies several keywords as they have been set in this study and as they appear in the Web of Science database. Using VOSviewer our main concern is to identify and highlight the most essential and questioned words associated with the “maritime accidents” and “other issues related with maritime accidents” concept. We extracted 456 articles, underlined 259 keywords with the similar meaning to the keywords we have selected in the previous stage. Findings: We found that the maritime transportation accidents (MTA) topic has limited expansion in the literature. The gaps are considerably big leaving space for further research. The analysis of the keywords proves an interconnection between the MTA, the risk models, safety, management organization and more. Research limitations/implementations: Although there has been an increased interest in this field especially among countries with the shipping sector highly developed (maritime universities in China, London Poland, etc.), we have noticed that the related studies are still at the beginning, especially if we consider the accounting side of this subject. Originality value: The present article can only be the beginning of a set of studies in MTA, given that the issue has an increasing interest in academia. For future research, we can consider using a larger sample, more keywords, and additional databases.
目的:本文旨在通过现有资料，突出Web of Sciences数据库中专业文献中的海上运输事故风险管理概念。设计/方法/方法:关键字研究确定了本研究中设置的几个关键字以及它们出现在Web of Science数据库中的几个关键字。使用VOSviewer，我们主要关注的是识别和突出与“海上事故”和“与海上事故相关的其他问题”概念相关的最重要和最受质疑的词语。我们提取了456篇文章，划出了259个与上一阶段选择的关键词意义相似的关键词。研究结果:我们发现海上运输事故(MTA)的主题在文献中扩展有限。差距相当大，为进一步研究留下了空间。对关键词的分析证明了MTA、风险模型、安全性、管理组织等之间的联系。研究限制/实施:尽管对这一领域的兴趣越来越大，特别是在航运业高度发达的国家(中国的海事大学，伦敦，波兰等)，但我们注意到相关研究仍处于起步阶段，特别是如果我们考虑到这一主题的会计方面。原创性价值:鉴于学术界对MTA问题的兴趣日益浓厚，本文只能是一系列MTA研究的开始。对于未来的研究，我们可以考虑使用更大的样本、更多的关键字和更多的数据库。
{"title":"Maritime Transportation Accidents: A Bibliometric Analysis","authors":"Vicky Zampeta, Gregory Chondrokoukis","doi":"10.25103/ijbesar.161.02","DOIUrl":"https://doi.org/10.25103/ijbesar.161.02","url":null,"abstract":"Purpose: The article aims to highlight the concept of risk management in maritime transportation accidents in the specialized literature on the Web of Sciences database through existing materials. Design/methodology/ approach: The keyword study identifies several keywords as they have been set in this study and as they appear in the Web of Science database. Using VOSviewer our main concern is to identify and highlight the most essential and questioned words associated with the “maritime accidents” and “other issues related with maritime accidents” concept. We extracted 456 articles, underlined 259 keywords with the similar meaning to the keywords we have selected in the previous stage. Findings: We found that the maritime transportation accidents (MTA) topic has limited expansion in the literature. The gaps are considerably big leaving space for further research. The analysis of the keywords proves an interconnection between the MTA, the risk models, safety, management organization and more. Research limitations/implementations: Although there has been an increased interest in this field especially among countries with the shipping sector highly developed (maritime universities in China, London Poland, etc.), we have noticed that the related studies are still at the beginning, especially if we consider the accounting side of this subject. Originality value: The present article can only be the beginning of a set of studies in MTA, given that the issue has an increasing interest in academia. For future research, we can consider using a larger sample, more keywords, and additional databases.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135568729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This is a critical review of the empirical literature on earnings management ethicality and its application in public sector organizations in the Kenyan context. Design/methodology/approach: Semi-systematic review approach and thematic/content analysis technique were utilized in forming opinions on deductions of the study by reviewing previous publications between 2008-2022. Findings: Outcomes of this study portray that the main factors influencing the management of earnings include; a conducive environment that permits practicing creative accounting without stakeholders’ knowledge, dodging declaring losses in the economic reports, meeting analyst predictions, circumventing submission of higher taxes, to qualify access to debt, contracting motivations, and to accomplish perks knotted to performance. Moreover, there is legitimate and illegitimate management of earnings since there is no consensus in regard to the ethicality of earnings management. Further, this review evidences that both accrual and real earnings management techniques are practiced by managers during reporting. Additionally, there are mixed results as to whether creative accounting is practiced in the public sector or not, and with reference to Kenya, no studies on earnings management ethicality have ever been conducted. Research limitations/implications: There are limited studies on earnings management ethicality in the public sector both in Kenya and globally. Besides, this is a qualitative study that depended on the previously published data in its entirety. This then, implies that all the findings here are not first-hand and are purely dependent on the findings of other studies that had been published. The researcher, therefore, had no control in regard to ascertaining the accuracy of the previous data analyzed. In mitigating these limitations, the majority of the publications included in this study were from high ranked journals. The bulk of the literature reviewed was from research work already conducted in other countries. Originality/value: This study contributes to accounting theory as an area of study. It depicts the deductive approach of research which can then be embraced by other graduate accounting students in furthering accounting research. Besides, it contributes to strategy makers like the Kenya Accounting Standards Board in the formulation and implementation of accounting principles. It also forms a basis for further research in the management of earnings and its ethicality among public sector firms. That is, no other study has been done in Kenya and just a few studies have been carried out globally.
{"title":"Earnings Management Ethicality and Application in the Kenyan Public Sector: A Critical Review","authors":"Robert Odek, Kalundu Kimanzi","doi":"10.25103/ijbesar.161.06","DOIUrl":"https://doi.org/10.25103/ijbesar.161.06","url":null,"abstract":"Purpose: This is a critical review of the empirical literature on earnings management ethicality and its application in public sector organizations in the Kenyan context. Design/methodology/approach: Semi-systematic review approach and thematic/content analysis technique were utilized in forming opinions on deductions of the study by reviewing previous publications between 2008-2022. Findings: Outcomes of this study portray that the main factors influencing the management of earnings include; a conducive environment that permits practicing creative accounting without stakeholders’ knowledge, dodging declaring losses in the economic reports, meeting analyst predictions, circumventing submission of higher taxes, to qualify access to debt, contracting motivations, and to accomplish perks knotted to performance. Moreover, there is legitimate and illegitimate management of earnings since there is no consensus in regard to the ethicality of earnings management. Further, this review evidences that both accrual and real earnings management techniques are practiced by managers during reporting. Additionally, there are mixed results as to whether creative accounting is practiced in the public sector or not, and with reference to Kenya, no studies on earnings management ethicality have ever been conducted. Research limitations/implications: There are limited studies on earnings management ethicality in the public sector both in Kenya and globally. Besides, this is a qualitative study that depended on the previously published data in its entirety. This then, implies that all the findings here are not first-hand and are purely dependent on the findings of other studies that had been published. The researcher, therefore, had no control in regard to ascertaining the accuracy of the previous data analyzed. In mitigating these limitations, the majority of the publications included in this study were from high ranked journals. The bulk of the literature reviewed was from research work already conducted in other countries. Originality/value: This study contributes to accounting theory as an area of study. It depicts the deductive approach of research which can then be embraced by other graduate accounting students in furthering accounting research. Besides, it contributes to strategy makers like the Kenya Accounting Standards Board in the formulation and implementation of accounting principles. It also forms a basis for further research in the management of earnings and its ethicality among public sector firms. That is, no other study has been done in Kenya and just a few studies have been carried out globally.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135606110","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The purpose of this paper is to shed the light on board evaluation for following analyses that will explore whether and how does credit rating agencies react to board performance evaluation. Design/methodology/approach: To test our research questions, we hand-collect board evaluation information for Taiwan publicly firms from annual reports and firm websites for the years 2019 to 2021. Then, we use the ordered probit model to examine our research questions. Finding: First, our results show that there is a relationship between family firms and unfavorable ratings. However, effective board evaluation was shown to strengthen transparency and accountability in internal governance environment, thereby moderating such negative relationships. Second, when family firms are mandated to establish audit committees or change auditors, they are more likely to receive unfavorable ratings. Specifically, effective board evaluation moderates’ negative effects on ratings and positively impacts rater perceptions. Third, rating agencies assign a more unfavorable rating to family firms that ignore gender diversity on audit committees, however, effective audit committee’s evaluation could moderate the concern whether gender diversity on audit committees affect the effectiveness of corporate governance. Research limitations/implications: First, we focus on the context of family governance to examine the effect of board evaluation on credit ratings. Therefore, our findings may not be applicable to non-family firms. Second, we are not able to directly observe the mechanism of board evaluation because our study uses hand-collected data of board evaluation obtained from publicly available MOPS reports and website news. In addition, our sample period is limited from 2019 until 2022 due to the significantly higher hand-collecting cost of using board evaluation data. Third, with respect to our extended analyses on audit changes, we didn’t consider the types of auditor changes because it is difficult to distinguish between auditor resignations and dismissals. Finally, although we include control variables consistent with prior studies, our research models may have not fully captured variables associated with credit ratings. Originality/value: First, our results contribute to the family firm literature on the relationship between corporate governance and economic consequence by focusing on the importance of board evaluation. Second, our findings can be useful to regulators and policy-makers in making governance policies aiming to mandate the establishment of audit committees’ complementary rules by encouraging family firms to fulfill the board evaluation for improving the quality of governance environment. Third, our findings not only contribute to the auditing literature but also imply that the board’s performance evaluation plays a positive factor in credit raters’ considerations. Fourth, our findings contribute to the audit committee literature examining the effects
{"title":"Credit Rating and Board Evaluation of Family Firms","authors":"Ya-Fang Wang, Yu-Chu Hsieh","doi":"10.25103/ijbesar.161.01","DOIUrl":"https://doi.org/10.25103/ijbesar.161.01","url":null,"abstract":"Purpose: The purpose of this paper is to shed the light on board evaluation for following analyses that will explore whether and how does credit rating agencies react to board performance evaluation. Design/methodology/approach: To test our research questions, we hand-collect board evaluation information for Taiwan publicly firms from annual reports and firm websites for the years 2019 to 2021. Then, we use the ordered probit model to examine our research questions. Finding: First, our results show that there is a relationship between family firms and unfavorable ratings. However, effective board evaluation was shown to strengthen transparency and accountability in internal governance environment, thereby moderating such negative relationships. Second, when family firms are mandated to establish audit committees or change auditors, they are more likely to receive unfavorable ratings. Specifically, effective board evaluation moderates’ negative effects on ratings and positively impacts rater perceptions. Third, rating agencies assign a more unfavorable rating to family firms that ignore gender diversity on audit committees, however, effective audit committee’s evaluation could moderate the concern whether gender diversity on audit committees affect the effectiveness of corporate governance. Research limitations/implications: First, we focus on the context of family governance to examine the effect of board evaluation on credit ratings. Therefore, our findings may not be applicable to non-family firms. Second, we are not able to directly observe the mechanism of board evaluation because our study uses hand-collected data of board evaluation obtained from publicly available MOPS reports and website news. In addition, our sample period is limited from 2019 until 2022 due to the significantly higher hand-collecting cost of using board evaluation data. Third, with respect to our extended analyses on audit changes, we didn’t consider the types of auditor changes because it is difficult to distinguish between auditor resignations and dismissals. Finally, although we include control variables consistent with prior studies, our research models may have not fully captured variables associated with credit ratings. Originality/value: First, our results contribute to the family firm literature on the relationship between corporate governance and economic consequence by focusing on the importance of board evaluation. Second, our findings can be useful to regulators and policy-makers in making governance policies aiming to mandate the establishment of audit committees’ complementary rules by encouraging family firms to fulfill the board evaluation for improving the quality of governance environment. Third, our findings not only contribute to the auditing literature but also imply that the board’s performance evaluation plays a positive factor in credit raters’ considerations. Fourth, our findings contribute to the audit committee literature examining the effects","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135606112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Given the severity and the length of the crisis caused by the COVID-19 pandemic, information on the financial impact of the pandemic becomes useful to enterprises who wish to arm themselves with strategies and policies, designed to combat the effects of similar crises. Such information is particularly useful to grocery retailers, who may need to know the effects of the pandemic on spending behaviour of different spending power classes of consumers. To that end, the study explores the configuration of (supermarket) consumer spending in Greece in relation to the number of: a) reported COVID-19 infections; b) admissions in hospital intensive care units, and: c) number of COVID-19 reported deaths, for the period betweenFebruary the 26th, 2020 to April 30th, 2021. Design/methodology/approach: Methodologically, the paper focuses on an econometric analysis of daily spending reactions of six distinct spending clustersof consumersof Greek nation -wide supermarket chain, measured against official numbers of COVID-19 related metrics in Greece during the period of February 2020- April 2021. The data used, emerged from daily sales records of a national chain of supermarkets in Greece, consisting of 60 stores. Proven econometric causality techniques were used to analyse the data by applying Hsiao's Optimizing Procedure via the “Stepwise Granger Causality”, for the statistical tests of possible interactions between variables. Findings: The study found a phenomenal effect of the number of reported COVID-19 related deaths on consumers’ supermarket spending in Greece. The study revealed the statistically significant effects of the COVID-19 variables on the 6 buyers’ clusters. These statistically significant effects have a diachronic behaviour which is varied in relation to the covid variables. The findings indicate that the biggest fluctuations in daily consumer reactions (on reported COVID-19 related variables) occurred in lower spending clusters of consumers, diminished over a period of about 15 days. The study also revealed that consumers’ spending reaction on infection case is minimal compared to that of reported deaths, signalling a relative apathy to the number of reported infection cases. Research limitations/implications: One basic constraint was the lack of spending data over a longer period of time which would have included the entire pandemic era. Ideally the researchers would prefer to compare customer spending data of several supermarket chains, yet the availability of such data was scarce. The findings also imply that lower spending clusters react more intensively to COVID-19 outcomes and as such marketing efforts to serve these target markets may need to be customized. Originality/value: The interpretation of the results reveals that the level of panic that drives reactionary spending appears to be lower in higher spending consumers. This study contributes to theory by appreciating the Greek supermarket customers’ psychological reaction to
{"title":"The Impact of the COVID-19 Pandemic on the Expenditures of Hellenic Supermarket Customers Spending Clusters: An Econometric Analysis","authors":"S. Daskou, Antonis Zairis, Dikaios Tserkezos","doi":"10.25103/ijbesar.152.07","DOIUrl":"https://doi.org/10.25103/ijbesar.152.07","url":null,"abstract":"Purpose: Given the severity and the length of the crisis caused by the COVID-19 pandemic, information on the financial impact of the pandemic becomes useful to enterprises who wish to arm themselves with strategies and policies, designed to combat the effects of similar crises. Such information is particularly useful to grocery retailers, who may need to know the effects of the pandemic on spending behaviour of different spending power classes of consumers. To that end, the study explores the configuration of (supermarket) consumer spending in Greece in relation to the number of: a) reported COVID-19 infections; b) admissions in hospital intensive care units, and: c) number of COVID-19 reported deaths, for the period betweenFebruary the 26th, 2020 to April 30th, 2021. Design/methodology/approach: Methodologically, the paper focuses on an econometric analysis of daily spending reactions of six distinct spending clustersof consumersof Greek nation -wide supermarket chain, measured against official numbers of COVID-19 related metrics in Greece during the period of February 2020- April 2021. The data used, emerged from daily sales records of a national chain of supermarkets in Greece, consisting of 60 stores. Proven econometric causality techniques were used to analyse the data by applying Hsiao's Optimizing Procedure via the “Stepwise Granger Causality”, for the statistical tests of possible interactions between variables. Findings: The study found a phenomenal effect of the number of reported COVID-19 related deaths on consumers’ supermarket spending in Greece. The study revealed the statistically significant effects of the COVID-19 variables on the 6 buyers’ clusters. These statistically significant effects have a diachronic behaviour which is varied in relation to the covid variables. The findings indicate that the biggest fluctuations in daily consumer reactions (on reported COVID-19 related variables) occurred in lower spending clusters of consumers, diminished over a period of about 15 days. The study also revealed that consumers’ spending reaction on infection case is minimal compared to that of reported deaths, signalling a relative apathy to the number of reported infection cases. Research limitations/implications: One basic constraint was the lack of spending data over a longer period of time which would have included the entire pandemic era. Ideally the researchers would prefer to compare customer spending data of several supermarket chains, yet the availability of such data was scarce. The findings also imply that lower spending clusters react more intensively to COVID-19 outcomes and as such marketing efforts to serve these target markets may need to be customized. Originality/value: The interpretation of the results reveals that the level of panic that drives reactionary spending appears to be lower in higher spending consumers. This study contributes to theory by appreciating the Greek supermarket customers’ psychological reaction to ","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45463165","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Zimbabwe has experienced a chronic inflationary crisis whose roots can be traced back to 1997. Various macroeconomic instruments have been suggested to stabilize the country’s prices and foster economic growth but evidence on how they interplay to influence policy is lacking. This study developed a monetary conditions index (MCI) for Zimbabwe during the 10-year dollarization period, 2009 to 2018, and measured its correlation with economic activity. The aim of the MCI is to inform monetary policy making in Zimbabwe. Design/methodology/approach: Using monthly time series data, the MCI series from 2009 to 2018 was calculated using real interest rates and exchange rates. The relationship between the MCI, GDP, inflation, money supply and private sector credit was analysed using the Auto Regressive Distributed Lag (ARDL) model for the long-term relationship and Granger causality for the short term. Findings: Results showed MCI weights of 1:1.54 implying that exchange rates dominate the interest rate in Zimbabwe’s monetary policy. A long run relationship between the MCI and economic variables was statistically significant while short term relationships were established for private sector credit, GDP, and foreign interest rates. Research implications: The study concludes that the MCI is a useful indicator of the central bank’s monetary policy positionfor economic analysts while the central bank can also adopt it for inflation and growth targeting. Originality/value: Unlike previous research which has proffered monetary solutions based on specific variables, this study took into consideration the interplay between interest rates and exchange rates in determining economic activity in Zimbabwe. The constructed MCI captured the interplay between these two key variables and the study established its relationship with economic activity. On this basis, the study recommends the adoption of the MCI in guiding monetary policy in Zimbabwe.
{"title":"Monetary Conditions Index and Economic Activity in Dollarized Zimbabwe","authors":"Gift Mupunga","doi":"10.25103/ijbesar.152.04","DOIUrl":"https://doi.org/10.25103/ijbesar.152.04","url":null,"abstract":"Purpose: Zimbabwe has experienced a chronic inflationary crisis whose roots can be traced back to 1997. Various macroeconomic instruments have been suggested to stabilize the country’s prices and foster economic growth but evidence on how they interplay to influence policy is lacking. This study developed a monetary conditions index (MCI) for Zimbabwe during the 10-year dollarization period, 2009 to 2018, and measured its correlation with economic activity. The aim of the MCI is to inform monetary policy making in Zimbabwe. Design/methodology/approach: Using monthly time series data, the MCI series from 2009 to 2018 was calculated using real interest rates and exchange rates. The relationship between the MCI, GDP, inflation, money supply and private sector credit was analysed using the Auto Regressive Distributed Lag (ARDL) model for the long-term relationship and Granger causality for the short term. Findings: Results showed MCI weights of 1:1.54 implying that exchange rates dominate the interest rate in Zimbabwe’s monetary policy. A long run relationship between the MCI and economic variables was statistically significant while short term relationships were established for private sector credit, GDP, and foreign interest rates. Research implications: The study concludes that the MCI is a useful indicator of the central bank’s monetary policy positionfor economic analysts while the central bank can also adopt it for inflation and growth targeting. Originality/value: Unlike previous research which has proffered monetary solutions based on specific variables, this study took into consideration the interplay between interest rates and exchange rates in determining economic activity in Zimbabwe. The constructed MCI captured the interplay between these two key variables and the study established its relationship with economic activity. On this basis, the study recommends the adoption of the MCI in guiding monetary policy in Zimbabwe.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44150504","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The major purpose of the paper is to explore, identify and highlight the general and specialized (sector-specific) long-term technology trends following the evolution of technology-intensive sectors in Greece during the last years. In a similar vein, sectoral differentiations have been identified and highlighted (e.g. evolution, growth, size distribution, industrial dynamics) as an analytical dimension of innovative activity across the high-technology sectoral domain. Design/methodology/approach: The paper methodology consists of a systematic review of primary data collected through the Eurostat/SBS database and the SME Performance Review 2022, as one of the major tools the European Commission uses to monitor and assess countries' progress in implementingthe SmallBusinessAct (SBA). The methodological approach of the paper involves the mapping of sector-specific trends in terms of technology-intensive categories, size classes and underlying sectoral characteristics and dynamics trends. Findings: The exploration of detailed and long-term data within the landscape of technology-intensive sectors in Greece, provides a clearer picture for the upward and downward trends, the sector-specific differentiations and the upcoming challenges. High-tech enterprises constitute a considerably important part of the country’s productive base with gradually increasing trends in all relevant categories. This is further motivated by the development of start-ups and spin-offs in several fields of higher technological specialization (‘deep tech’). Research limitations/implications: It is widely accepted that aggregated technology growth is a long-term and multi-level process within an economy. Further research regarding the actual and potential spillover effects of technology sectors across the wider economy constitutes an important area of further research. The paper provides a multi-dimensional analytical framework to identify sector-based technological and industrial underlying dynamics and understand long-term sectoral characteristics and trends within the high-tech industry evolution in Greece. Originality/value: The paper provides an analytical approach to explore the underlying industrial dynamic trends within the technology-intensive sectors in Greece. The exploration of detailed and long-term data within the landscape of technology-intensive sectors in Greece provides an overall view of the underlying technology-intensive sectors’ dynamics, the sector-specific differentiations, the upcoming challenges and the innovation policy implications.
{"title":"Reframing the High-Technology Landscape in Greece: Empirical Evidence and Policy Aspects","authors":"A. Angelakis","doi":"10.25103/ijbesar.152.06","DOIUrl":"https://doi.org/10.25103/ijbesar.152.06","url":null,"abstract":"Purpose: The major purpose of the paper is to explore, identify and highlight the general and specialized (sector-specific) long-term technology trends following the evolution of technology-intensive sectors in Greece during the last years. In a similar vein, sectoral differentiations have been identified and highlighted (e.g. evolution, growth, size distribution, industrial dynamics) as an analytical dimension of innovative activity across the high-technology sectoral domain. Design/methodology/approach: The paper methodology consists of a systematic review of primary data collected through the Eurostat/SBS database and the SME Performance Review 2022, as one of the major tools the European Commission uses to monitor and assess countries' progress in implementingthe SmallBusinessAct (SBA). The methodological approach of the paper involves the mapping of sector-specific trends in terms of technology-intensive categories, size classes and underlying sectoral characteristics and dynamics trends. Findings: The exploration of detailed and long-term data within the landscape of technology-intensive sectors in Greece, provides a clearer picture for the upward and downward trends, the sector-specific differentiations and the upcoming challenges. High-tech enterprises constitute a considerably important part of the country’s productive base with gradually increasing trends in all relevant categories. This is further motivated by the development of start-ups and spin-offs in several fields of higher technological specialization (‘deep tech’). Research limitations/implications: It is widely accepted that aggregated technology growth is a long-term and multi-level process within an economy. Further research regarding the actual and potential spillover effects of technology sectors across the wider economy constitutes an important area of further research. The paper provides a multi-dimensional analytical framework to identify sector-based technological and industrial underlying dynamics and understand long-term sectoral characteristics and trends within the high-tech industry evolution in Greece. Originality/value: The paper provides an analytical approach to explore the underlying industrial dynamic trends within the technology-intensive sectors in Greece. The exploration of detailed and long-term data within the landscape of technology-intensive sectors in Greece provides an overall view of the underlying technology-intensive sectors’ dynamics, the sector-specific differentiations, the upcoming challenges and the innovation policy implications.","PeriodicalId":31341,"journal":{"name":"International Journal of Business and Economic Sciences Applied Research","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43175389","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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