Roshan and Niti Nandini Chatnani
This study investigates the relationship between working capital investment (WCI) and firm value for Indian manufacturing firms using excess net working capital (NWC) and Tobin's…
Abstract
Purpose
This study investigates the relationship between working capital investment (WCI) and firm value for Indian manufacturing firms using excess net working capital (NWC) and Tobin's Q as a measure of WCI and firm value, respectively. The study also examines whether firms use the cash released from excess investment in working capital to make long-term investments.
Design/methodology/approach
The sample comprises 834 Bombay Stock Exchange (BSE) listed Indian manufacturing firms whose data from April 2010 to March 2020 are analyzed using a fixed-effect panel regression analysis approach.
Findings
The empirical results show that excess NWC influences firm value negatively and significantly. However, the nature of the relationship becomes nonlinear upon dividing the sample into positive excess NWC and negative excess NWC. The findings from the study also reveal that firms redistribute cash freed from positive excess NWC for long-term investments to improve their value without impacting the corresponding risk.
Practical implications
Overall, the results suggest that firms with positive excess NWC can enhance their valuations by building adequate long-term investments from surplus WCI funds.
Originality/value
To the authors’ best knowledge, studies on this issue have primarily focused on developed economies. No study seems to have been done on this subject in the emerging South Asian economies. The present study is the first to bridge the research gap by investigating the relationship between excess WCI and firm value for manufacturing firms in India. Moreover, it examines whether a positive excess NWC reduction translates into corporate investments (CI).
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Samiha Siddiqui, Sujood, Naseem Bano and Sheeba Hamid
Ukraine hosts thousands of international students for educational tourism, of which more than 18,000 Indian medical students were compelled to escape Ukraine under emergency…
Abstract
Purpose
Ukraine hosts thousands of international students for educational tourism, of which more than 18,000 Indian medical students were compelled to escape Ukraine under emergency conditions of war. This paper aims to examine their intention to return to Ukraine to complete their education based on an integrated theory of planned behaviour (TPB) framework with added constructs, i.e. risk perception, career anxiety, rescue and relief memory.
Design/methodology/approach
The data were collected from 26 February 2022 to 30 June 2022 in two phases and two modes. It was ensured that the respondents were strictly confined to Indian medical students who had travelled to Ukraine for educational tourism. SPSS 25 and AMOS 23.0 were used to analyse the data. The hypotheses proposed were statistically tested.
Findings
The analysis reveals that the extended TPB model resulted in a strong model and the empirical findings corroborate that the students’ attitude, subjective norms, perceived behavioural control and career anxiety significantly and positively influence the students’ revisit intention (RI) while risk perception and rescue and relief memory have a negative influence on the RI.
Research limitations/implications
The study provides timely insights and implications to the Ukrainian tourism industry, particularly educational tourism business and medical institutions under the present turmoil, which can also act as blueprint research for destinations with a similar unstable political background.
Originality/value
The primary value of this research work is that it provides an understanding of the intention of medical students (educational tourists) towards revisiting the war-hit destination of Ukraine.
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Paulo M. Gama and Elsa Pedroso
Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large…
Abstract
Purpose
Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large firms. Our paper aims to provide a comprehensive analysis of the impact of societal trust on short-term financial policies of SMEs, namely working capital management and cash holdings.
Design/methodology/approach
We rely on a sample of 14,711 privately owned medium-sized manufacturing firms from 26 European countries with a sample period between 2014 and 2020. For estimation, we use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption.
Findings
We show a positive relationship between trust and working capital requirements investment and a negative relationship between trust and the level of cash holdings. Moreover, we show that trust attenuates the negative impact of being a financially constrained firm and the positive impact of national perceptions of corruption. Finally, in higher trustworthy environments, firms operate with relatively higher inventories and relatively lower trade credit granted and obtained.
Research limitations/implications
Results suggest that policies supporting societal trust may also foster business development and that when dealing with clients or suppliers from different trustworthy environments, firms may have to adapt their business models to incorporate trust differences between business environments.
Originality/value
Firstly, the comprehensive analysis of the impact of trust on working capital management and cash holdings while controlling for different firm-level and country-level known determinants of short-term financial management. Secondly, it addresses a European sample of unquoted, medium-sized firms. Thirdly, it studies the combined effect of trust and financial constraints and trust and corruption.
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Paula Hearn Moore, Ben Le and Donna L. Paul
This paper examines how manufacturing firms impacted by the nitrogen oxides (NOx) Budget Trading Program (NBP) strategically managed working capital to release funds for increased…
Abstract
Purpose
This paper examines how manufacturing firms impacted by the nitrogen oxides (NOx) Budget Trading Program (NBP) strategically managed working capital to release funds for increased costs and mitigate the negative impact on firm performance.
Design/methodology/approach
The study uses a panel data set including 11,302 manufacturing firm-year observations listed on the US exchanges during the period 2000–2008. The authors use Tobin's Q to proxy for firm performance, and cash holding, cash conversion cycle (CCC), days sales outstanding (DSO), days sales inventory (DSI) and days payable outstanding (DPO) for working capital management (WCM). The empirical analysis is conducted using both ordinary least squares (OLS) and propensity score matching (PSM) regressions.
Findings
The authors find that firms respond to the higher utility costs imposed by the NBP by decreasing CCC, DSO and DSI. This active WCM response partially mitigated the impact of increased compliance costs on performance for firms affected by the NBP. Results are robust in PSM regressions.
Research limitations/implications
Climate change is a global issue that has attracted increasing attention in recent years. This study shows how firms can adjust short-term financing strategies to address the costs of compliance with climate change regulation.
Originality/value
The paper contributes to the emerging literature on corporate finance and climate policy actions. The authors use the unique experimental setting of the NBP to examine the regulatory impact on corporate financial management. The authors demonstrate how firms used active WCM to mitigate the negative performance impact of regulatory compliance with the NBP, providing novel insight on the implication of compliance with climate change legislation.
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Isma Zaighum, Qaiser Abbas, Kinza Batool, Shehar Bano and Syed Murtaza Sajjad
Intellectual capital (IC) plays a pivotal role in determining corporate risk profiles in the contemporary knowledge era. Consequently, this study aims to analyze the impact of IC…
Abstract
Purpose
Intellectual capital (IC) plays a pivotal role in determining corporate risk profiles in the contemporary knowledge era. Consequently, this study aims to analyze the impact of IC on firm risk (FR) among the manufacturing companies listed on the Pakistan Stock Exchange (PSX).
Design/methodology/approach
The authors have adopted the modified value-added intellectual model which combines human capital efficiency, structural capital efficiency, efficiency of capital employed and relational capital efficiency. FR has been used as the dependent variable, measured as the standard deviation of the daily stock prices. The study has used panel data from a sample of 40 manufacturing companies listed in the KSE-100 Index from 2015 to 2021.
Findings
The results suggest that IC has a significant impact on the FR of manufacturing companies listed on the benchmark index of PSX. Moreover, this relationship is direct; thus, an increase in IC would also increase FR measured by the change in stock prices.
Research limitations/implications
The current study has only used linear techniques. Future researchers may consider investigating the impact of IC at varying levels of FR using nonlinear techniques.
Practical implications
This study provides corporate managers and policymakers valuable insight into the need to strike a balance between investment in IC and their FR, particularly in an emerging market context.
Originality/value
IC is frequently associated with firm performance. However, the relationship between IC and FR has generally been underexplored. This study adds to the strand of limited IC literature by investigating the impact of a modified IC model on FR in an emerging economy.
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Mariam Ben Hassen, Sahbi Zahhaf and Faiez Gargouri
Addressing integrity, flexibility and interoperability challenges in enterprise information systems (EISs) is often hindered by the “three-fit” barrier, which encompasses…
Abstract
Purpose
Addressing integrity, flexibility and interoperability challenges in enterprise information systems (EISs) is often hindered by the “three-fit” barrier, which encompasses vertical, horizontal and transversal fit problems. To overcome these obstacles, we propose solutions aimed at defining the business view of EIS. This study addresses these issues by proposing solutions tailored to the business view of EIS. Specifically, it introduces the core ontology of sensitive business processes (COSBP), a conceptual framework designed to formalize and define the multidimensional dimensions of sensitive business processes (SBPs). By providing a unified structure of central concepts and semantic relationships, COSBP enhances both knowledge management (KM) and business process management (BPM) in organizational contexts.
Design/methodology/approach
This paper adopts the design science research methodology covering the phases of a design-oriented research project that develops new artifacts, such as the COSBP ontology, based on SBP modeling requirements. Following a formal multi-level, multi-component approach, COSBP is structured into sub-ontologies across different abstraction levels. Built upon the Descriptive Ontology for Linguistic and Cognitive Engineering (DOLCE) foundational ontology, COSBP integrates and extends core concepts from core domain ontologies in business processes. The framework specifies six key modeling dimensions of SBPs – functional, organizational, behavioral, informational, intentional and knowledge – each represented as a distinct class of ontological modules (OMs).
Findings
COSBP offers a semantically rich and precise framework for modeling SBPs, addressing complexity and ambiguity in conceptual modeling. It supports the creation of expressive and effective SBP models while enabling consensus-driven representation at a generic level. Additionally, COSBP serves as a foundation for extending modeling notations and developing tools that align with these notations. Its application in enterprise environments improves the integration, adaptability and interoperability of EISs, ultimately enhancing organizational processes and decision-making.
Originality/value
The development of the COSBP ontology holds considerable potential for application in various industries beyond its original focus on business process management and KM. The ontology’s capability to semantically model sensitive, knowledge-intensive and dynamic processes can be extended to other real-life scenarios in other complex domains and sectors – for example, finance and banking, government and public services, insurance, manufacturing and supply chain management, retail, E-commerce, logistics and transportation crisis management, government and public services, higher education and so on. By integrating artificial intelligence (AI) with the COSBP ontology, we aim to enable more intelligent decision-making, process monitoring and improved management of SBPs in knowledge-driven domains.
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Hung Ngoc Phan, Huong Mai Bui and Nguyen Khanh Vu
Bacterial cellulose (BC) is an ideal alternative filtering material. However, current functionalization approaches for BC have not been fully discovered industrially as well as…
Abstract
Purpose
Bacterial cellulose (BC) is an ideal alternative filtering material. However, current functionalization approaches for BC have not been fully discovered industrially as well as academically applying textile processing. This study aims to create a sustainable fabric-like membrane made of BC/activated carbon (AC) for applications in filtration using textile padding method, to protect people from respiratory pandemics.
Design/methodology/approach
Fabric-like BC is first mechanically dehydrated then AC is loaded via a textile padding step. The finishing efficacy, properties of fabric-like BC/AC and NaOH pretreatment are analyzed and characterized by scanning electron microscope (SEM), field emission scanning electron microscope (FE SEM), X-ray diffraction (XRD), CIELab color space, color strength (K/S), nitrogen adsorption-desorption isotherm including Brunauer–Emmett–Teller (BET) specific surface area and Barrett–Joyner–Halenda (BJH) pore size and volume.
Findings
This research results in a fabric-like BC/AC with pore diameters of 3.407 ± 0.310 nm, specific surface area of 115.28 m2/g and an efficient scalable padding process, which uses 8 times less amount of chemical and nearly 30 times shorter treating duration than conventional methods.
Practical implications
Our globe is now consuming an alarming amount of non-degradable disposable masks resulting in massive trash buildup as a future environmental problem. Besides, current disposable masks requiring a significant upfront technological investment have posed challenges in human protection from respiratory diseases, especially for countries with limited conditions. By combining a sustainable material (BC) with popular padding method of textile industry, the fabric-like BC/AC will offer sustainable and practical values for both humankind and nature.
Originality/value
This research has offered an effective padding process to functionalize BC, and a unique fabric-like BC/AC membrane for filtration applications.
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Aaron Atkins, Alexander L. Lancaster and Michael K. Ault
Decisions regarding the termination of organizational members are not only common but also represent difficult actions for managers. Despite their importance and frequency…
Abstract
Purpose
Decisions regarding the termination of organizational members are not only common but also represent difficult actions for managers. Despite their importance and frequency, managers often make or avoid them based on incomplete or faulty decision-making criteria. Previous research suggests that decision-makers are subject to internal influences that play significant roles in their decision-making.
Design/methodology/approach
Using a controlled between-groups experimental design, this study, guided by the heuristic-systematic model, tested to what extent decision-makers rely on heuristic cues versus the systematic processing of more relevant information when making termination decisions.
Findings
Findings suggest the order in which information is presented influences participants’ decision-making and influences the information-processing structure.
Practical implications
Findings suggest practical considerations for managers, management trainees and others who engage in termination decisions as to potential influencing factors.
Originality/value
This research adds to the understanding of the decision-making process in organizational contexts.
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Emma O’Neill, Molly Bird and Simon Riches
Auditory hallucinations (“hearing voices”) are a relatively common experience, which is often highly distressing and debilitating. As mental health services are under increasing…
Abstract
Purpose
Auditory hallucinations (“hearing voices”) are a relatively common experience, which is often highly distressing and debilitating. As mental health services are under increasing pressures, services have witnessed a transformative shift with the integration of technology into psychological care. This study aims to narratively synthesise evidence of technology-enhanced psychological assessment and treatment of distressing voices (PROSPERO 393831).
Design/methodology/approach
This review was carried out according to the preferred reporting items for systematic reviews and meta-analyses. Embase, MEDLINE, PsycINFO and Web of Science were searched until 30th May 2023. The Effective Public Health Practice Project (EPHPP) tool assessed methodological quality of studies.
Findings
Searching identified 9,254 titles. Fourteen studies (two assessment studies, twelve treatment studies, published 2010–2022, n = 1,578) were included in the review. Most studies were conducted in the UK, the USA or Canada. Technologies included avatar therapy, mobile apps, virtual reality, a computerised Web-based programme and a mobile-assisted treatment. Overall, technology-enhanced psychological assessments and treatments appear feasible, acceptable and effective, with avatar therapy the most used intervention. EPHPP ratings were “strong” (n = 8), “moderate” (n = 5) and “weak” (n = 1).
Originality/value
To the best of the authors’ knowledge, this is the first systematic review to investigate these technologies, specifically for distressing voices. Despite the relatively small number of studies, findings offer promising evidence for the clinical benefits of these technologies for enhancing mental health care for individuals with distressing voices. More high-quality research on a wider range of technologies is warranted.