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The purpose of this paper is to develop a more comprehensive understanding of the consequences of retaliations and our evidence indicates that retaliations are beneficial for firms with supranormal earnings by making their higher earnings more persistent, but harmful for firms with subnormal earnings by slowing the recovery of their earnings.

This paper use annual Compustat files based on Fama-French 48 industry. The time-varying competitive reactions (CRs) for each firm are captured using quarterly rolling-window estimation across 41 windows with five years (i.e. 20 observations) in each window. This paper measure earnings persistence as the slope coefficient (ß1) from regressing future earnings on current earnings. The result remains qualitatively similar to the main findings when alternative measures of earnings persistence.

Abnormal earnings are expected to dissipate in the long run owing to competitive forces, but this paper show that more retaliatory CRs increase earnings persistence. This is good news for supranormal firms as they can sustain high profitability. However, it will be harder to revert subnormal earnings to the industry mean if such firms conduct more retaliatory CRs. This paper also show that these associations are stronger for less competitive industries.

First, high earnings persistence per se would not be a major consideration in the firm’s strategic decisions but a natural by-product of such decisions spanning an extended period of operations. Second, though this paper focus on the period of 2004–2018 that includes the rebound after financial crisis in 2008, an extension of the observation period over a longer economic cycle would verify our results.

CRs are regarded as an evolving portfolio of dynamic marketing decisions and tools for strategic decisions in our study. It helps how firms manage competition over time to lengthen the superior performance. Also it helps the low-profitability firms attempting to improve profitability by showing nonretaliation may be a more appropriate strategy than retaliation.

Firms in financial distress suffer from illiquidity, survival of firms is contingent on meeting their financial obligations, thus need for turnaround decisions. However, retaliations under financial distress can mitigate the effect of such turnaround decisions and thereby aggravate the situation.

Greater persistence extends the benefits of superior earnings, thus increasing the opportunities for value exploitation, but it may also restrict earnings recovery. This paper finds that the way that firms react within the competition explain the differences in earnings persistence. Although a large body of research has examined the static drivers (e.g. firm size and diversification) of the differential persistence of earnings, there has been little research on dynamic drivers that explicitly recognize the erosion process for earnings.

This study aims to examine the effects of agency cost on auditor choice. This paper also deals with the moderating role of the board’s financial expertise (Bfe) and the status of the internal control (Intecon) system on the relationship between agency cost and auditor selection.

This study’s sample consists of 1,040 firm-year observations of Iranian nonfinancial companies listed on the Tehran Stock Exchange from 2012 to 2019. The information required for this research is mainly extracted from Comprehensive Database of All Listed Companies (in Iran Stock Exchange). Data from 130 companies were obtained during the research period. This study used logistic regression to test the hypotheses.

The findings indicate that companies with higher agency costs choose the auditor from lower classes. As the proportion of financial expert members on the board increases, the intensity of this relationship will be reduced. Companies with higher agency costs choose the auditor from the lower classes, but the higher the ratio of financial expert board members, the more these companies will choose high-quality auditors. However, findings showed that the status of the Intecon system has no moderating effect on the relationship between agency costs and auditor selection.

The results of this study can expand the existing literature on the relationship between auditor selection and agency costs and the factors affecting this relationship, especially the Bfe and Intecon. This research has significant suggestions for regulators, stakeholders, shareholders and analysts in emerging economies that may encounter similar contextual implications.

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.

Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.

The results are potentially challenged by relatively small sample size.

Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.

This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.