Yuxuan Chang and Xiaoyang Zhao
This paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in…
Abstract
Purpose
This paper examines whether technological changes that promote communications between investors and managers help bridge the gap in the cost of equity capital among firms in different regions.
Design/methodology/approach
We use the online interaction platforms of listed firms in China and utilize brokerage presence (BP) to capture the geographic distribution of financial factors. We explore whether online interactions would reduce the cost of equity to a greater extent for firms located in low brokerage presence regions (hereafter “low-BP firms”) than those in high brokerage presence regions (hereafter “high-BP firms”).
Findings
We find low-BP firms benefit more from an improved information environment created by online interactions. We also find that posts about low-BP firms are more value-relevant and useful in processing corporate disclosures. Further, a higher number of interactions significantly enhances more informational efficiency for low-BP firms, and the effect of reducing the gap in financing costs is more pronounced when corporate information is complex.
Originality/value
We conclude that online interactions alleviate geography-induced information frictions and create a relatively level playing field for firms located in all regions.
Details
Keywords
Yishuai Yin, Yuxuan Zhang and Pengfei Zhang
Idiosyncratic deals (i-deals) are designed to benefit both the employees and employers. While plenty of previous studies uncover the outcomes of i-deals, little research has…
Abstract
Purpose
Idiosyncratic deals (i-deals) are designed to benefit both the employees and employers. While plenty of previous studies uncover the outcomes of i-deals, little research has explored what drives organizations to adopt i-deals in the first place. Drawing on transaction cost economics theory, this paper aims to investigate how employee–employer exchange characteristics affect different types of i-deals.
Design/methodology/approach
Based on a two-wave questionnaire study of 385 employees from information technology industry in China, hierarchical regression analysis was conducted to test the hypotheses.
Findings
The authors found that human asset specificity and task interdependence are positively related to developmental i-deals, and task interdependence was negatively related to flexible i-deals. Furthermore, environmental uncertainty positively moderates the impact of human asset specificity and task interdependence on developmental i-deals.
Originality/value
This paper contributes to research on i-deals by providing a theoretically more comprehensive and balanced analysis of why and when i-deals are adopted in organizations.
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Metin Kırkın, Adnan Aktepe and Bilal Toklu
The aim of this study is to develop a new multidimensional index to measure export potential of textile firms by using firm-level data.
Abstract
Purpose
The aim of this study is to develop a new multidimensional index to measure export potential of textile firms by using firm-level data.
Design/methodology/approach
After a conceptual model, a structural equation model is developed with five dimensions and 27 observed variables based on resource-based view theory. The measurement model is solved by Linear Structural Relations (LISREL) with maximum likelihood algorithm by using data collected from 454 textile firms in Türkiye.
Findings
In this study, a new multidimensional index that measures export potential of textile firms is developed. With the proposed model, the export potential of textile firms can be calculated numerically with the five dimensions: Resources, Dynamism, Knowledge, Innovation and Sustainability. The comparison of the output of the proposed model with the control variable, firm’s actual export values, shows a significantly high success ratio of 90.76%.
Research limitations/implications
The model is applicable for textile firms at different export levels, regions and sub-sectors. The Export Potential Index for Textile Industry model is verified by using Turkish textile industry data. The robustness of the model may be increased by verifying the model by using some other countries data. This model can be implemented to other industrial sectors with some modification of the dimensions and variables.
Practical implications
The proposed model will contribute to the firms by calculating their export potential in five dimensions with their own variables numerically. The model will help firms to develop strategies to increase their export potential and to the governmental and industrial organizations to develop incentives policies.
Originality/value
This paper fills the gap in the literature by proposing a multidimensional index that determines a firm’s export potential numerically by using firm-level data.