Pub Date : 2020-12-21DOI: 10.1108/ajb-08-2020-0135
P. D. Gadi, D. Kee
PurposeDespite the concentrated study on turnover intention (TI), slightly is known on the subject in what manner work engagement intervenes the link connecting workplace bullying (WPB) and TI is varied across sectors, and how WPB and TI implications are viewed among academicians of public universities in Nigeria. The aim of this article is to explore in what way the association between WPB and TI is mediated by work engagement (WE) in public universities in Nigeria.Design/methodology/approachThe paper applied judgmental sampling to gather 400 data from academic staff that must have worked for a minimum of six months in the current university. The present study used SmartPLS software 3.2.9 for the estimation of the hypothesis.FindingsThe result confirmed that work engagement intervenes the outcome of WPB and HRM on TI.Research limitations/implicationsThe current study presents validation for the mediating impact of work engagement on the relationships connecting WPB and HRM on TI in Nigeria universities. Outcomes from findings encompassing all employees in the universities and other service sectors would offer further significant and practical implications for administrators.Originality/valueThe research furthers our knowledge of the intervening effect of work engagement in the link among WPB and TI across academicians in public universities in Nigeria. To reduce turnover intention among academic staff, administrators must have a good insight into how WE mediates the correlation linking WPB and TI.
{"title":"Workplace bullying, human resource management practices, and turnover intention: the mediating effect of work engagement: evidence of Nigeria","authors":"P. D. Gadi, D. Kee","doi":"10.1108/ajb-08-2020-0135","DOIUrl":"https://doi.org/10.1108/ajb-08-2020-0135","url":null,"abstract":"PurposeDespite the concentrated study on turnover intention (TI), slightly is known on the subject in what manner work engagement intervenes the link connecting workplace bullying (WPB) and TI is varied across sectors, and how WPB and TI implications are viewed among academicians of public universities in Nigeria. The aim of this article is to explore in what way the association between WPB and TI is mediated by work engagement (WE) in public universities in Nigeria.Design/methodology/approachThe paper applied judgmental sampling to gather 400 data from academic staff that must have worked for a minimum of six months in the current university. The present study used SmartPLS software 3.2.9 for the estimation of the hypothesis.FindingsThe result confirmed that work engagement intervenes the outcome of WPB and HRM on TI.Research limitations/implicationsThe current study presents validation for the mediating impact of work engagement on the relationships connecting WPB and HRM on TI in Nigeria universities. Outcomes from findings encompassing all employees in the universities and other service sectors would offer further significant and practical implications for administrators.Originality/valueThe research furthers our knowledge of the intervening effect of work engagement in the link among WPB and TI across academicians in public universities in Nigeria. To reduce turnover intention among academic staff, administrators must have a good insight into how WE mediates the correlation linking WPB and TI.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"29 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87842701","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}
Pub Date : 2020-12-10DOI: 10.1108/ajb-03-2020-0033
Amirreza Konjkav Monfared, A. Mansouri, Negar Jalilian
PurposeBuyers of luxury clothing products usually place great importance on design because they can satisfy their personal needs. However, the underlying motivation for buying luxury products has not been fully understood. Therefore, identifying the factors influencing the choice of luxury products and brand loyalty can provide useful information to a better understanding of the customers' needs of these brands. In fact, in this article, we are trying to determine how personality traits (including the need for uniqueness and self-monitoring) and social traits (including self-expression and self-presentation) influence the importance of design and brand loyalty.Design/methodology/approachA questionnaire was used to collect data. The questionnaire was answered by 386 buyers of luxury clothing brands in Iran. Structural equation modeling was also used for data analysis. Data were analyzed by SPSS 19.0 and AMOS 24.0 software.FindingsThe results of this study show that people who need to be unique pay more attention to the specific designs by expressing their self-expression in their surrounding community, while self-monitors seek acceptance in the community by using common designs. Finally, the results show that the importance of design reduces customer loyalty to the brand.Originality/valueTo the best of the authors' knowledge, this study is the first one to investigate the effect of personality and social traits on the importance of luxury clothing design and brand loyalty using statistical data analysis tools in Iran.
{"title":"The influence of personality and social traits on the importance of brand design of luxury brands and brand loyalty","authors":"Amirreza Konjkav Monfared, A. Mansouri, Negar Jalilian","doi":"10.1108/ajb-03-2020-0033","DOIUrl":"https://doi.org/10.1108/ajb-03-2020-0033","url":null,"abstract":"PurposeBuyers of luxury clothing products usually place great importance on design because they can satisfy their personal needs. However, the underlying motivation for buying luxury products has not been fully understood. Therefore, identifying the factors influencing the choice of luxury products and brand loyalty can provide useful information to a better understanding of the customers' needs of these brands. In fact, in this article, we are trying to determine how personality traits (including the need for uniqueness and self-monitoring) and social traits (including self-expression and self-presentation) influence the importance of design and brand loyalty.Design/methodology/approachA questionnaire was used to collect data. The questionnaire was answered by 386 buyers of luxury clothing brands in Iran. Structural equation modeling was also used for data analysis. Data were analyzed by SPSS 19.0 and AMOS 24.0 software.FindingsThe results of this study show that people who need to be unique pay more attention to the specific designs by expressing their self-expression in their surrounding community, while self-monitors seek acceptance in the community by using common designs. Finally, the results show that the importance of design reduces customer loyalty to the brand.Originality/valueTo the best of the authors' knowledge, this study is the first one to investigate the effect of personality and social traits on the importance of luxury clothing design and brand loyalty using statistical data analysis tools in Iran.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"7 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81063066","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}
Pub Date : 2020-11-02DOI: 10.1108/ajb-01-2020-0008
Marcus M. Doxey, R. Ewing
PurposeChanges in external auditing over four decades motivates a historical investigation of how client employees' perceptions of auditors have changed across this period.Design/methodology/approachThis paper uses a longitudinal quasi-experiment to compare current client employees' perceptions of the auditor with results from 1972.FindingsChanges in client employees' perceptions of the audit, its usefulness and of auditor-client conflict suggest increases in auditor independence. However, this paper also finds that despite decades of efforts to strengthen auditor independence and skepticism, the primary analogy client employees apply to the external auditor remains “consultant”.Practical implicationsThe findings contribute to the discussion of whether regulatory and standard changes in the audit environment have changed aspects of client employees' perceptions of auditors.Originality/valueThe paper contributes by presenting a unique approach to partially replicating a historic study using a quasi-experimental research design.
{"title":"Have changes in audit standards altered client perceptions of auditors?","authors":"Marcus M. Doxey, R. Ewing","doi":"10.1108/ajb-01-2020-0008","DOIUrl":"https://doi.org/10.1108/ajb-01-2020-0008","url":null,"abstract":"PurposeChanges in external auditing over four decades motivates a historical investigation of how client employees' perceptions of auditors have changed across this period.Design/methodology/approachThis paper uses a longitudinal quasi-experiment to compare current client employees' perceptions of the auditor with results from 1972.FindingsChanges in client employees' perceptions of the audit, its usefulness and of auditor-client conflict suggest increases in auditor independence. However, this paper also finds that despite decades of efforts to strengthen auditor independence and skepticism, the primary analogy client employees apply to the external auditor remains “consultant”.Practical implicationsThe findings contribute to the discussion of whether regulatory and standard changes in the audit environment have changed aspects of client employees' perceptions of auditors.Originality/valueThe paper contributes by presenting a unique approach to partially replicating a historic study using a quasi-experimental research design.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"3 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2020-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85442698","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}
Pub Date : 2020-10-15DOI: 10.1108/ajb-06-2019-0035
Mervat Elsaied
This study aimed to examine the effect of inclusive leadership (IL) on job embeddedness (JE) by developing a moderated mediation model. The model focuses on the mediating role of the organizational identification (OID) that underpins the relationship between IL and JE, as well as the moderating influence of person–supervisor fit (P–S fit) on the mediation.,Data were collected from 364 employees working in 25 five-star hotels in Hurghada, Egypt. Statistical methods such as hierarchical regression, correlation analysis and a bootstrapping test were used to analyze the data.,The results indicated that OID fully mediated the positive relationship between IL and JE. It also found that P–S fit moderated the mediated relationship between IL and JE via OID. This resulted in the mediated relationship becoming stronger for employees who perceive higher P–S fit rather than who perceive lower P–S fit with their leaders.,This study is the first to consider the effect of OID (a mediator) on the relationship between IL and JE. It also extends our understanding of the mechanism linking IL and JE by testing the mediating influence of OID and the moderating influence of P–S fit.
{"title":"A moderated mediation model for the relationship between inclusive leadership and job embeddedness","authors":"Mervat Elsaied","doi":"10.1108/ajb-06-2019-0035","DOIUrl":"https://doi.org/10.1108/ajb-06-2019-0035","url":null,"abstract":"This study aimed to examine the effect of inclusive leadership (IL) on job embeddedness (JE) by developing a moderated mediation model. The model focuses on the mediating role of the organizational identification (OID) that underpins the relationship between IL and JE, as well as the moderating influence of person–supervisor fit (P–S fit) on the mediation.,Data were collected from 364 employees working in 25 five-star hotels in Hurghada, Egypt. Statistical methods such as hierarchical regression, correlation analysis and a bootstrapping test were used to analyze the data.,The results indicated that OID fully mediated the positive relationship between IL and JE. It also found that P–S fit moderated the mediated relationship between IL and JE via OID. This resulted in the mediated relationship becoming stronger for employees who perceive higher P–S fit rather than who perceive lower P–S fit with their leaders.,This study is the first to consider the effect of OID (a mediator) on the relationship between IL and JE. It also extends our understanding of the mechanism linking IL and JE by testing the mediating influence of OID and the moderating influence of P–S fit.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"18 1","pages":"191-210"},"PeriodicalIF":0.8,"publicationDate":"2020-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75046728","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}
Pub Date : 2020-10-09DOI: 10.1108/ajb-09-2019-0068
Samuel Ogbeibu, Abdelhak Senadjki, J. Gaskin
PurposeThis study seeks to investigate how leader ability and diverse organisational cultures (OC) act to influence employee creativity in manufacturing organisations. By leveraging the multifaceted nature of the competing values framework (CVF), this study examines the growing deterioration of employee creativity through the lens of four OC quadrants within the Nigerian manufacturing industry and further investigates how distinct OCs and leader ability can aid to bolster employee creativity. The CVF is a model used to assess organisational cultures, irrespective of their industry, for the overarching purpose of improving organisational performance.Design/methodology/approachThe target population consists of employees of research and development (R&D) and information technology (IT) in the headquarters of 21 manufacturing organisations. Our useable sample consisted of 439 responses from the Nigerian manufacturing industry.FindingsResults indicated that leader ability and adhocracy OC have positive effects on employee creativity. Market and clan OC have negative effects on employee creativity. Likewise, leader ability dampens the effects of adhocracy OC on employee creativity and reinforces the market OC effect on employee creativity.Originality/valueThis study provides novel insights that challenges several controversial and contemporary postulations of extant research which theorise the OC–employee creativity relationships. By leveraging the construct of leader ability, unique contributions are also made to provoke congruence.
{"title":"Organisational cultures and the evoked effects of leader ability on employee creativity","authors":"Samuel Ogbeibu, Abdelhak Senadjki, J. Gaskin","doi":"10.1108/ajb-09-2019-0068","DOIUrl":"https://doi.org/10.1108/ajb-09-2019-0068","url":null,"abstract":"PurposeThis study seeks to investigate how leader ability and diverse organisational cultures (OC) act to influence employee creativity in manufacturing organisations. By leveraging the multifaceted nature of the competing values framework (CVF), this study examines the growing deterioration of employee creativity through the lens of four OC quadrants within the Nigerian manufacturing industry and further investigates how distinct OCs and leader ability can aid to bolster employee creativity. The CVF is a model used to assess organisational cultures, irrespective of their industry, for the overarching purpose of improving organisational performance.Design/methodology/approachThe target population consists of employees of research and development (R&D) and information technology (IT) in the headquarters of 21 manufacturing organisations. Our useable sample consisted of 439 responses from the Nigerian manufacturing industry.FindingsResults indicated that leader ability and adhocracy OC have positive effects on employee creativity. Market and clan OC have negative effects on employee creativity. Likewise, leader ability dampens the effects of adhocracy OC on employee creativity and reinforces the market OC effect on employee creativity.Originality/valueThis study provides novel insights that challenges several controversial and contemporary postulations of extant research which theorise the OC–employee creativity relationships. By leveraging the construct of leader ability, unique contributions are also made to provoke congruence.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"41 1","pages":"153-173"},"PeriodicalIF":0.8,"publicationDate":"2020-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85417121","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}
Pub Date : 2020-10-02DOI: 10.1108/AJB-04-2020-0046
M. Lehrer, L. Segal
The paper explores the nature and facilitating conditions of “stewardship organizations,” that is, organizations in which stewardship behavior rather than principal–agent behavior defines the operative principles of management.,The paper falls into two parts: the first part of the analysis develops a theory of the stewardship organization, and the second part develops a contingency framework concerning the feasibility of stewardship organizations.,Stewardship organizations are characterized by three interlocking traits: (1) the overall mission of the organization, (2) the organization's internal control systems and (3) the “motivational environment” of the stewardship organization. Since stewardship organizations cannot be identified on the basis of stated mission alone, it is necessary to determine whether the mission involves a higher calling that has been internalized by organizational members to the point of constituting a vital part of how the organization runs on a day-to-day basis.,One key role of leadership in such organizations is to manage mission drift and to reduce the ambiguity of the mission and organization goals.,Litmus tests are proposed for identifying an authentic stewardship organization in contradistinction to those whose socially minded values are ancillary or a marketing ploy.,This is the first systematic attempt to characterize the stewardship organization. After providing three specific examples of such organizations, the contribution identifies key markers of bona fide stewardship organizations.
{"title":"The stewardship organization: essential characteristics and conditions of feasibility","authors":"M. Lehrer, L. Segal","doi":"10.1108/AJB-04-2020-0046","DOIUrl":"https://doi.org/10.1108/AJB-04-2020-0046","url":null,"abstract":"The paper explores the nature and facilitating conditions of “stewardship organizations,” that is, organizations in which stewardship behavior rather than principal–agent behavior defines the operative principles of management.,The paper falls into two parts: the first part of the analysis develops a theory of the stewardship organization, and the second part develops a contingency framework concerning the feasibility of stewardship organizations.,Stewardship organizations are characterized by three interlocking traits: (1) the overall mission of the organization, (2) the organization's internal control systems and (3) the “motivational environment” of the stewardship organization. Since stewardship organizations cannot be identified on the basis of stated mission alone, it is necessary to determine whether the mission involves a higher calling that has been internalized by organizational members to the point of constituting a vital part of how the organization runs on a day-to-day basis.,One key role of leadership in such organizations is to manage mission drift and to reduce the ambiguity of the mission and organization goals.,Litmus tests are proposed for identifying an authentic stewardship organization in contradistinction to those whose socially minded values are ancillary or a marketing ploy.,This is the first systematic attempt to characterize the stewardship organization. After providing three specific examples of such organizations, the contribution identifies key markers of bona fide stewardship organizations.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"61 1","pages":"175-190"},"PeriodicalIF":0.8,"publicationDate":"2020-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77157209","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}
Pub Date : 2020-08-21DOI: 10.1108/ajb-09-2019-0069
Jessica Zeiss, Leslie C Carlson, E. Harvey
PurposePrior research has examined the sociopolitical force as simply a part of all types of environmental pressures, yet we argue that this force calls for a unique examination of marketing's role in firm responses to sociopolitical pressures. Understanding the degree to which firms attempt to manage forces and pressures in the external business environment is key to understanding marketing's role in impeding vs aiding public policy initiatives, and is the problem this research investigates.Design/methodology/approachUsing structural equation modeling, data from 71 firms demonstrate that managing the sociopolitical force is, in fact, distinct from managing the other four market-based forces – consumer demand, supplier power, competition and technological shifts. Managing the sociopolitical force is shown to require fundamentally different skills and resources.FindingsResults suggest that firm sociopolitical receptivity drives attempts to influence this unique external business environmental force, in turn limiting marketplace sociopolitical receptivity. Furthermore, attempts to influence such a unique force relies on resource-light marketing resources, which limits resource-heavy marketing.Originality/valueManaging a political force with marketplace ramifications involves strategy that utilizes marketing, but is driven by relationships with social and political agents. This is truly an environmental management concept distinct from the management of the other four market-based forces. The analysis in this study demonstrates that managing another environmental force (i.e. competition force) involves different receptivity influences and marketing tactic outcomes.
{"title":"Firm receptivity regarding marketplace vs political ties","authors":"Jessica Zeiss, Leslie C Carlson, E. Harvey","doi":"10.1108/ajb-09-2019-0069","DOIUrl":"https://doi.org/10.1108/ajb-09-2019-0069","url":null,"abstract":"PurposePrior research has examined the sociopolitical force as simply a part of all types of environmental pressures, yet we argue that this force calls for a unique examination of marketing's role in firm responses to sociopolitical pressures. Understanding the degree to which firms attempt to manage forces and pressures in the external business environment is key to understanding marketing's role in impeding vs aiding public policy initiatives, and is the problem this research investigates.Design/methodology/approachUsing structural equation modeling, data from 71 firms demonstrate that managing the sociopolitical force is, in fact, distinct from managing the other four market-based forces – consumer demand, supplier power, competition and technological shifts. Managing the sociopolitical force is shown to require fundamentally different skills and resources.FindingsResults suggest that firm sociopolitical receptivity drives attempts to influence this unique external business environmental force, in turn limiting marketplace sociopolitical receptivity. Furthermore, attempts to influence such a unique force relies on resource-light marketing resources, which limits resource-heavy marketing.Originality/valueManaging a political force with marketplace ramifications involves strategy that utilizes marketing, but is driven by relationships with social and political agents. This is truly an environmental management concept distinct from the management of the other four market-based forces. The analysis in this study demonstrates that managing another environmental force (i.e. competition force) involves different receptivity influences and marketing tactic outcomes.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"35 1","pages":"129-151"},"PeriodicalIF":0.8,"publicationDate":"2020-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79215999","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}
Pub Date : 2020-06-23DOI: 10.1108/ajb-07-2019-0054
A. Akhigbe, Bhanu Balasubramnian, Melinda Newman
PurposeThough exchange-traded funds (ETFs) are similar to mutual funds, we identify several reasons how they are different based on their structure and trading characteristics. Therefore, we argue that the determinants of fund closure decisions for ETFs will not be the same as the mutual funds. We systematically explore those factors.Design/methodology/approachWe use Cox Proportional Hazard model, which is considered a superior method, over the logistic regression models. All previous studies are based on logistic regressions.FindingsWe investigate the closure rate of ETFs over the 1995–2018 sample period. We find that the first three years are the most critical period for the survival of ETFs. Our full sample results show that early fund performance, the investment style of the fund, the expense ratio and fund family size are the most relevant factors influencing the likelihood of closure. When we consider equity-only funds, we find that key factors that influence fund closure are early fund performance, the expense ratio, failure to grow the fund's assets relatively quickly and the equity investment category of the fund.Research limitations/implicationsTracking error could be a significant factor. However, we have several missing values in the data. Therefore, we are forced to drop that variable. However, we use the SD of daily returns in lieu of that. Similarly, we were constrained by the availability of data for the equity style box scores.Practical implicationsOur study suggests that individual investors will be better off by investing in ETFs that are at least three-year to four-year old. If individuals want to invest in ETFs from the date of inception, the probability of survival is higher for an ETF within a larger fund family.Social implicationsHopefully, our research will attract the attention of CFPB and provide a warning to individual investors when they choose to invest in ETFs. More and more ETFs are getting included in retirement savings. So, abrupt ETF closures are likely to have large social implications for the future.Originality/valueWe are the first to use Cox Proportional Hazard model. We base our arguments from latest research on ETFs that the one earlier paper on ETF closure has missed. So, we examine the issue in a more systematic way.
{"title":"Exchange Traded Funds and the likelihood of closure","authors":"A. Akhigbe, Bhanu Balasubramnian, Melinda Newman","doi":"10.1108/ajb-07-2019-0054","DOIUrl":"https://doi.org/10.1108/ajb-07-2019-0054","url":null,"abstract":"PurposeThough exchange-traded funds (ETFs) are similar to mutual funds, we identify several reasons how they are different based on their structure and trading characteristics. Therefore, we argue that the determinants of fund closure decisions for ETFs will not be the same as the mutual funds. We systematically explore those factors.Design/methodology/approachWe use Cox Proportional Hazard model, which is considered a superior method, over the logistic regression models. All previous studies are based on logistic regressions.FindingsWe investigate the closure rate of ETFs over the 1995–2018 sample period. We find that the first three years are the most critical period for the survival of ETFs. Our full sample results show that early fund performance, the investment style of the fund, the expense ratio and fund family size are the most relevant factors influencing the likelihood of closure. When we consider equity-only funds, we find that key factors that influence fund closure are early fund performance, the expense ratio, failure to grow the fund's assets relatively quickly and the equity investment category of the fund.Research limitations/implicationsTracking error could be a significant factor. However, we have several missing values in the data. Therefore, we are forced to drop that variable. However, we use the SD of daily returns in lieu of that. Similarly, we were constrained by the availability of data for the equity style box scores.Practical implicationsOur study suggests that individual investors will be better off by investing in ETFs that are at least three-year to four-year old. If individuals want to invest in ETFs from the date of inception, the probability of survival is higher for an ETF within a larger fund family.Social implicationsHopefully, our research will attract the attention of CFPB and provide a warning to individual investors when they choose to invest in ETFs. More and more ETFs are getting included in retirement savings. So, abrupt ETF closures are likely to have large social implications for the future.Originality/valueWe are the first to use Cox Proportional Hazard model. We base our arguments from latest research on ETFs that the one earlier paper on ETF closure has missed. So, we examine the issue in a more systematic way.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"57 2 1","pages":"105-127"},"PeriodicalIF":0.8,"publicationDate":"2020-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83391900","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}
Pub Date : 2020-05-28DOI: 10.1108/ajb-07-2019-0050
Gregory G. Kaufinger, Christoph Neuenschwander
The purpose of the study is to evaluate whether the selection of accounting method used to value inventory increases or decreases the probability of a retail firm's ability to remain in existence.,This study employs a binary logistic regression model to predict group membership and the probability of failure. The study utilizes an unbalanced sample of US publicly traded failed and functioning retail firms over a ten-year period.,The results clearly support the conclusion that there is a difference in the probability of retail firm failure with respect to the accounting method used to value inventory. Merchants using a cost-based valuation method were 2.3 times more likely to fail than firms using a price-based method. The results also affirm existing bankruptcy literature by finding that profitability, liquidity, leverage, capital investment and cash flow are factors in retail failures.,The results suggest that traditional merchants cannot simply blame e-commerce or shifts in demographics for the retail Apocalypse; good management and proper valuation of stock still matter.,This study is the first to look at firm failure in the retail sector after the great recession of 2008, in an era known as the “retail Apocalypse.” In addition, this study differs from other firm failure literature by incorporating cost- and price-based inventory valuation methods as a variable in firm failure.
{"title":"Retail Apocalypse? Maybe blame accounting. Investigating inventory valuation as a determinant of retail firm failure","authors":"Gregory G. Kaufinger, Christoph Neuenschwander","doi":"10.1108/ajb-07-2019-0050","DOIUrl":"https://doi.org/10.1108/ajb-07-2019-0050","url":null,"abstract":"The purpose of the study is to evaluate whether the selection of accounting method used to value inventory increases or decreases the probability of a retail firm's ability to remain in existence.,This study employs a binary logistic regression model to predict group membership and the probability of failure. The study utilizes an unbalanced sample of US publicly traded failed and functioning retail firms over a ten-year period.,The results clearly support the conclusion that there is a difference in the probability of retail firm failure with respect to the accounting method used to value inventory. Merchants using a cost-based valuation method were 2.3 times more likely to fail than firms using a price-based method. The results also affirm existing bankruptcy literature by finding that profitability, liquidity, leverage, capital investment and cash flow are factors in retail failures.,The results suggest that traditional merchants cannot simply blame e-commerce or shifts in demographics for the retail Apocalypse; good management and proper valuation of stock still matter.,This study is the first to look at firm failure in the retail sector after the great recession of 2008, in an era known as the “retail Apocalypse.” In addition, this study differs from other firm failure literature by incorporating cost- and price-based inventory valuation methods as a variable in firm failure.","PeriodicalId":44116,"journal":{"name":"American Journal of Business","volume":"54 1","pages":"83-101"},"PeriodicalIF":0.8,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80144501","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}
Pub Date : 2020-05-28DOI: 10.1108/ajb-09-2019-0070
Jaejoo Lim, Jim R. Wollscheid, Ramakrishna Ayyagari
Consumers often encounter issues of perceived ambiguity and performance risk when attempting to evaluate experience goods being offered online. Sellers try to alleviate this knowledge gap often seen in a medium of low naturalness by engaging in effective compensatory adaptation. This research theoretically looks into three primary aspects of compensatory adaption and their potential in securing communication of high-quality information between the online seller and consumer.,Utilizing survey data and structural equation modeling, this study tests the effectiveness of different aspects of compensatory adaption to alleviate the knowledge gap in a medium of low naturalness.,Drawing on media naturalness theory and the tripartite model of attitude, this paper identifies three theoretical components that significantly affect the effectiveness of compensatory adaption. They are information retrieval capability from the cognitive/logical aspect, information richness from the affective/audiovisual aspect and interactivity from the behavioral aspect. The effectiveness of compensatory adaptation proves to have a positive impact on perceived information quality.,To the best of our knowledge, this is the first paper in the information systems literature to examine the compensatory adaptation tools for effective transfer of information. This study contributes to the academics by providing three handles to improve effectiveness of compensatory adaptation toward information quality. We focus on three compensatory adaptation tools in cognitive/logical, affective/audiovisual and behavioral aspects, and this compensation perspective leads to three practical factors that affect effective transfer of information between online sellers and consumers. The result of this study complements the nomological network of the enablers and impediments of e-commerce.
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