The COVID-19 pandemic resulted in millions of lives lost. Beyond its devastating impact, did it also hurt consumer financial well-being? Consumer bankruptcy is often seen as a…
Abstract
Purpose
The COVID-19 pandemic resulted in millions of lives lost. Beyond its devastating impact, did it also hurt consumer financial well-being? Consumer bankruptcy is often seen as a sign of experiencing extremely overextended debt burdens. This study aimed to identify factors associated with bankruptcy risks, specifically focusing on insolvency (when total debt exceeds total assets) and debt delinquency (being late in debt payments for 60 or more days).
Design/methodology/approach
Data were from the US 2022 Survey of Consumer Finances. Two bankruptcy risk variables included insolvency and debt delinquency. Potential influencing factors included in the analyses were COVID-19-induced shocks, financial capability, ownership of various debts and demographics. Logistic regression models were used to detect potential factors associated with bankruptcy risks.
Findings
First, a COVID-19-induced shock variable, new work schedule, reduced the risk of insolvency and four shock variables (COVID infection with serious persistent symptoms, work disruption due to childcare responsibilities, work reduction and work increase) increased the risk of debt delinquency. Second, financial capability factors played a crucial role. Desirable financial behavior reduced both risks of insolvency and debt delinquency. Subjective financial knowledge only reduced the risk of debt delinquency. Third, the types of debts held mattered. Holding credit card debt, student loans and other debts increased the risks of both insolvency and debt delinquency. Interestingly, holding auto loans reduced the risk of insolvency.
Research limitations/implications
The data are limited to cross-sectional so that findings are only correlational. The data are from one developed economy, and the results may not be generalized to other economies, especially developing economies. Also, due to the lack of direct measure of consumer bankruptcy, only bankruptcy risks are measured in the study, but the findings can still be informative for understanding consumer bankruptcy behavior.
Practical implications
The results of this study have practical implications for government, business and nonprofit organizations to help consumers reduce the bankruptcy risks. The results suggest that when facing external shocks such as the COVID-19 pandemic, any work-related adjustments may help workers maintain income levels and reduce consumer bankruptcy risks, especially debt delinquency risk. Also, consumers should be encouraged to engage in desirable financial behaviors, such as spending within their income, seeking information before making financial decisions, using financial professionals and planning ahead, to reduce both insolvency and debt delinquency risks.
Originality/value
This study is the first to examine COVID-19-induced factors on bankruptcy risks, enriching the literature of COVID-19 impacts on consumers. Bankruptcy risks are used as negative indicators of consumer well-being, expanding the literature of consumer well-being. The study also examines if financial capability has the potential to reduce bankruptcy risks, an advancement in the literature of financial capability.
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Yamin Xie, Zhichao Li, Wenjing Ouyang and Hongxia Wang
Political factors play a crucial role in China's initial public offering (IPO) market due to its distinctive institutional context (i.e. “economic decentralization” and “political…
Abstract
Purpose
Political factors play a crucial role in China's initial public offering (IPO) market due to its distinctive institutional context (i.e. “economic decentralization” and “political centralization”). Given the significant level of IPO underpricing in China, we examine the impact of local political uncertainty (measured by prefecture-level city official turnover rate) on IPO underpricing.
Design/methodology/approach
Using 2,259 IPOs of A-share listed companies from 2001 to 2019, we employ a structural equation model (SEM) to examine the channel (voluntarily lower the issuance price vs aftermarket trading) through which political uncertainty affects IPO underpricing. We check the robustness of the results using bootstrap tests, adopting alternative proxies for political uncertainty and IPO underpricing and employing subsample analysis.
Findings
Local official turnover-induced political uncertainty increases IPO underpricing by IPO firms voluntarily reducing the issuance price rather than by affecting investor sentiment in aftermarket trading. These relations are stronger in firms with pre-IPO political connections. The effect of political uncertainty on IPO underpricing is also contingent upon the industry and the growth phase of an IPO firm, more pronounced in politically sensitive industries and firms listed on the growth enterprise market board.
Originality/value
Local government officials in China usually have a short tenure and Chinese firms witness significantly severe IPO underpricing. By introducing the SEM model in studying China IPO underpricing, this study identifies the channel through which local government official turnover to political uncertainty on IPO underpricing.
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Elahe Hosseini, Milad Ebrahimi and Aidin Salamzadeh
This study explores the impact of the residents' voice and social media brand engagement on coopetition in tourism destinations with the mediating role of knowledge sharing. The…
Abstract
This study explores the impact of the residents' voice and social media brand engagement on coopetition in tourism destinations with the mediating role of knowledge sharing. The study's statistical population includes tourists who visited Iran. The sample was 243 tourists who visited Iranian tourist different villages in the spring of 2023. This empirical study adopted a descriptive correlational method and used PLS3 for data analysis. The effects of residents' voices, knowledge sharing, and engagement with social media improve cooperation between tourism destinations, help create platforms for creativity and innovation in this industry, and ensure the promotion of sustainability and attractiveness of tourism. Therefore, the mutual analysis of the effects of different factors in rural tourism in Iran is valuable in providing a new method to improve the tourism experience in this field.
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Muzammil Hussain, Trong Tuan Luu and Timothy Marjoribanks
Healthcare is a service industry where fulfilling the needs of patients (customers) is challenging. Various factors, including cost, system complexity, staffing behaviours and…
Abstract
Purpose
Healthcare is a service industry where fulfilling the needs of patients (customers) is challenging. Various factors, including cost, system complexity, staffing behaviours and technological advances, play vital roles. Drawing upon social exchange theory, this study seeks to determine how paternalistic leadership (authoritarianism, benevolence and morality) influences employee service innovative behaviour and counterproductive work behaviour via perceived supervisor support in the healthcare sector. Additionally, the study investigates the role of the public service motivation of individuals as a moderating factor in this relationship.
Design/methodology/approach
A pilot study and a main study were conducted to test the hypotheses. We collected data from healthcare professionals in Pakistan’s large public, private and semi-government hospitals. We applied bootstrapping with 5,000 replications and structural equation modelling to analyse the data.
Findings
Results indicate that authoritarianism was negatively associated with service innovative behaviour, whereas benevolent and moral behaviours were positively associated with service innovative behaviour via perceived supervisor support (mediation). Our findings shed light on the moderating role of public service motivation.
Originality/value
This empirical quantitative study has several theoretical and practical implications. Findings of our study provide evidence that a paternalistic leadership style can influence both positive (service innovative behaviour) and negative (counterproductive working behaviour) working behaviours simultaneously via perceived supervisor support at an individual level in the service (healthcare) industry. This study also highlights the moderating role of public service motivation as an individual motivation factor.
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Lin Ma, Chenghong Hu, Zhenlin Lv, Xi He, Rui Dong and Mingjin Fan
This study aims to develop synthetic ester lubricating oil using renewable sinapic acid as raw material, to explore the structural design and selection of raw materials for green…
Abstract
Purpose
This study aims to develop synthetic ester lubricating oil using renewable sinapic acid as raw material, to explore the structural design and selection of raw materials for green, high-performance synthetic ester oils.
Design/methodology/approach
A series of the sinapate ester oils were synthesized through esterification and alkoxylation reactions using renewable source sinapic acid as the raw material. The molecular structures of the oils were characterized by nuclear magnetic resonance spectroscopy, Fourier transform infrared spectroscopy spectroscopy and elemental analysis. The oils were evaluated for safety, viscosity-temperature properties, thermal and oxidative stability, as well as friction reducing and anti-wear characteristics.
Findings
Compared to commercial base oil tris (2-ethylhexyl) trimellitate (Phe-3Ci8), the bio-lubricant exhibits superior antifriction and anti-wear properties. Notably, the JCi8-C12 sample performed exceptionally well, reducing the friction coefficient by 11.42% and wear volume (WV) by 54.44% in steel/steel tribo-pairs. In steel/aluminum tribo-pairs, the friction coefficient decreased by 27.48%, while WV was reduced by 85.81%. Mechanistic studies reveal that the introduction of short-chain methoxy groups and stable conjugated systems (aromatic rings and double bonds) inhibit oxidation and decomposition at elevated temperatures. The p-p stacking effect enables lubricant molecules to arrange stably on friction surfaces, forming a durable lubricating film.
Originality/value
The utilization of biomass resources to develop green synthetic lubricating oil with excellent performance not only enhances the added value of waste from agricultural processing but also offers significant benefits in terms of both economic and environmental sustainability.
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The profound impact of the COVID-19 pandemic on the film industry has underscored the growing significance of online movies. However, there is limited research available on the…
Abstract
Purpose
The profound impact of the COVID-19 pandemic on the film industry has underscored the growing significance of online movies. However, there is limited research available on the factors that influence the viewership of online films. Therefore, this study aims to use the signaling theory to investigate how signals of varying qualities affect online movie viewership, considering both signal transmission costs and prices.
Design/methodology/approach
This study uses a sample of 1,071 online movies released on the iQiyi from July 2020 to July 2022. It uses OLS regression and instrumental variable method to examine the impact of various quality indicators on the viewership of online movies, as well as the moderating effect of price.
Findings
After conducting a thorough analysis of this study, it can be deduced that the varying impacts on online movie viewership are attributed to disparities in signal transmission costs. Specifically, star influence and rating exhibit a positive effect on the viewership of online movies, whereas the number of raters has a detrimental impact. Furthermore, there exists an “inverted U-shaped” relationship between the number of reviews and online movie viewership. Additionally, within the consumer decision-making process, both price-cost and price-quality relationships coexist. This is evident as prices negatively affect online movie viewership but positively moderate the relationship between rating, number of reviews and online movie viewership.
Originality/value
The research findings of this study offer valuable insights for online film producers to effectively leverage quality signals and pricing, thereby capturing market attention and enhancing film profitability.
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Kaiyi Li, Hafez Salleh and Rui Wang
The exponential growth of the construction sector exerts considerable pressure on the environment, and the circular economy (CE) concept has recently gained traction as a means of…
Abstract
Purpose
The exponential growth of the construction sector exerts considerable pressure on the environment, and the circular economy (CE) concept has recently gained traction as a means of alleviating such environmental issues. In order to propose solutions to the phenomenon of contractors being hesitant to participate in CE implementation in developing countries, this paper aims to comprehensively explore the enabling factors that motivate contractors to implement CE.
Design/methodology/approach
This study is based on the push-pull-mooring (PPM) theory and extends it by introducing information provision (IP) as a trigger on contractors’ intrinsic subjective initiative states on CE implementation. The study considers what and how positive pull, negative push and neutral mooring factors influence the contractors’ CE transition. The framework was validated by questionnaires collected from contractors in China, and the data were analyzed using the structural equation modeling method.
Findings
The findings indicate that all factors from the PPM framework exert a positive influence on CE intention, with push factors demonstrating a greater average impact. Furthermore, this study confirms the influence of the IP on contractors’ CE intentions by influencing their intrinsic status. The impact of the IP is most pronounced in terms of contractors’ perceived usefulness and environmental concerns.
Originality/value
This study contributes to the existing body of knowledge in the CE transition studies by extending the PPM theory into the construction industry through the lenses of contractors in developing countries. The results highlight the trigger impacts of the IP on contractors’ psychological status regarding CE transition. Furthermore, it offers insights into government management in the CE transition by providing the government with novel approaches to facilitate the CE transition in the construction sector.
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Tianye Ling, Rui Zhao and Hyungshim Jang
Drawing on self-determination theory, a person-centered approach was used to investigate how the satisfaction and frustration of the basic psychological needs of autonomy and…
Abstract
Purpose
Drawing on self-determination theory, a person-centered approach was used to investigate how the satisfaction and frustration of the basic psychological needs of autonomy and competence produce adaptive vs maladaptive consumer behavior during the online shopping experience.
Design/methodology/approach
We collected questionnaire data from 1,399 respondents engaged in online shopping, including 65% females with an average age of 29.9. Latent profile analysis tested the hypotheses, using Mplus 8.3.
Findings
The online shopping experience sometimes satisfies and sometimes frustrates consumers’ basic psychological needs for autonomy and competence. This research used latent profile analysis to identify two profiles of the online shopping experience: “satisfied-dominant” and “moderately satisfied/frustrated.” Online shoppers who experienced only need satisfaction showed adaptive consumer behavior in terms of positive word-of-mouth and high loyalty, while online shoppers who experienced both moderate need satisfaction and frustration showed maladaptive consumer behavior.
Originality/value
An online shopping experience of need satisfaction vs frustration explains consumers’ adaptive vs maladaptive behavior. Specifically, when online shoppers experience only autonomy and competence need satisfaction, they engage in positive word-of-mouth and show high loyalty.
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Xiaoli Li, Zihan Peng and Kun Li
This study aims to explore the mechanism of boundary-spanning search on firm’s innovation performance under environmental dynamics from the perspective of strategic knowledge…
Abstract
Purpose
This study aims to explore the mechanism of boundary-spanning search on firm’s innovation performance under environmental dynamics from the perspective of strategic knowledge integration.
Design/methodology/approach
A survey was conducted among Chinese firm managers and R&D personnel, resulting in the collection of 315 valid samples. Hierarchical regression analysis was mainly adopted to demonstrate the hypothesized relationships, while the Sobel test and bootstrap method were used to further validate the mediating effects.
Findings
The results demonstrate that boundary-spanning search in different dimensions is a critical factor in the improvement of firm innovation performance (FIP). Two types of strategic knowledge integration are the main factors causing FIP and mediate the influence of boundary-spanning search on FIP. Furthermore, environmental dynamics moderate the relationship among boundary-spanning search, strategic knowledge integration and FIP.
Practical implications
Managers need to strengthen the boundary-spanning search for market and technical knowledge, which will promote firm innovative performance. Managers also need to implement strategic knowledge integration, which specifically includes using planned strategic knowledge integration to compensate for knowledge deficiencies, thereby achieving predetermined objectives; and using emergent strategic knowledge integration to update their understanding of internal and external environments, and to reset strategic objectives. In dynamic environments, managers should emphasize strategic knowledge management activities more.
Originality/value
From a strategic management perspective, this study categorizes strategic knowledge integration into planned and emergent forms. By applying the logic of knowledge acquisition, integration and creation, it explores how boundary-spanning search affects FIP through strategic knowledge integration as the intermediary and the boundary conditions of environmental dynamics. This not only provides a deeper understanding of the nature and effects of boundary-spanning research but also enhances the theory of strategic knowledge management.
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Sandy Harianto and Janto Haman
The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory…
Abstract
Purpose
The purpose of our study is to investigate the effects of politically-connected boards (PCBs) on over-(under-)investment in labor. We also examine the impacts of the supervisory board (SB)’s optimal tenure on the association between PCBs and over-investment in labor.
Design/methodology/approach
We constructed the proxy for PCBs using a dummy variable set to 1 (one) if a firm has politically-connected boards and zero (0) otherwise. For the robustness check, we used the number of politically-connected members on the boards as the proxy for PCBs.
Findings
We find that the presence of PCBs reduces over-investment in labor. Consistent with our prediction, we found no significant association between PCBs and under-investment in labor. We also find that the SB with optimal tenure strengthens the negative association between PCBs and over-investment in labor. In our channel analysis, we find that the presence of PCB mitigates over-investment in labor through a higher dividend payout ratio.
Research limitations/implications
Due to the unavailability of data in firms’ annual reports regarding the number of poorly-skilled and highly skilled employees, we were not able to examine the effect of low-skilled and high-skilled employees on over-investment in labor. Also, we were not able to examine over-(under-)investment in labor by drawing a distinction between general (generalist) and firm-specific human capital (specialist) as suggested by Sevcenko, Wu, and Kacperczyk (2022). Generally, it is more difficult for managers to hire highly-skilled employees, specialists in particular, thereby driving the choice of either over- or under-investing in the labor forces. In addition, in the firms’ annual reports, there is no information regarding temporary employees. Therefore, if and when such data become available, this would provide another avenue for future research.
Practical implications
Our study offers several practical implications and insights to stakeholders (e.g. insiders or management, shareholders, investors, analysts and creditors) in the following ways. First, our study highlights significant differences between capital investment and labor investment. For instance, labor investment is considered an expense rather than an asset (Wyatt, 2008) because, although such investment is human capital and is not recognized on the firm’s balance sheet (Boon et al., 2017). In addition, labor investment is characterized by: its flexibility which enables firms to make frequent adjustments (Hamermesh, 1995; Dixit & Pindyck, 2012; Aksin et al., 2015), its non-homogeneity since every employee is unique (Luo et al., 2020), its direct impact on morale and productivity of a firm (Azadegan et al., 2013; Mishina et al., 2004; Tatikonda et al., 2013), and its financial outlay which affects the ongoing cash flows of a firm (Sualihu et al., 2021; Khedmati et al., 2020; Merz & Yashiv, 2007). Second, our findings reveal that the presence of PCBs could help to reduce over-investment in labor. However, if managers of a firm choose to under-invest in labor in order to obtain better profit in the short-term through cost saving, they should be aware of the potential consequences of facing a financial loss when a new business opportunity suddenly arises which requires a larger labor force. Third, our findings help stakeholders to re-focus on the labor investment. This is crucial due to the fact that labor investment is often neglected by those stakeholders because the expenditure of labor investment is not recognized on the firm’s balance sheet as an asset. Instead, it is written off as an expense in the firm’s income statement. Fourth, our findings also provide insightful information to stakeholders, suggesting that an SB with optimal tenure is more committed to a firm, and this factor plays an important role in strengthening the negative association between PCBs and over-investment in labor.
Social implications
First, our findings provide a valuable understanding of the effects of PCBs on over-(under-)investment in labor. Stakeholders could use information disclosed in the financial statements of a publicly-listed firm to determine the extent of the firm’s investment in labor and PCBs, and compare this information with similar firms in the same industry sector. Second, our findings give a better understanding of the association between investment in labor and political connections , which are human and social capital that could determine the long-term survival and success of a firm. Third, for shareholders, the appointment of board members with political connections is an important strategic decision to build political capital, which is likely to have a long-term impact on the financial performance of a firm; therefore, it requires thoughtful consultation with firm insiders.
Originality/value
Our findings highlight the role of PCBs in reducing over-investment in labor. These findings are significant because both investment in labor and political connections as human and social capital can play an important role in determining the long-term survival and success of a firm.