Search results

Convertible instruments are financial instruments embedded with conversion rights such as convertible bonds or convertible preferred stocks. Under the Korean International Financial Reporting Standards (K-IFRS), the embedded conversion rights with certain conditions (i.e., a refixing clause) are recognized as derivative liabilities and are recognized at fair value in issuer’s financial statements. Since the value of convertible rights varies with the underlying stock value, an increase in the issuers’ stock price causes the issuers of convertible instruments to announce large derivative valuation losses. Using disclosures under the title of ‘Loss from Derivatives Trading’ from the KOREA EXCHANGE (KRX) during January 2016 through December 2019, this study examines market reactions to the disclosure of valuation losses on conversion rights embedded in convertible instruments. We find the following results. First, abnormal stock returns on the loss announcement date are significantly negative. Second, abnormal trading volumes peak on the loss announcement date. Third, abnormal stock returns persist in the long-term. Collectively, our findings suggest that investors perceive the loss disclosures as negative news, but fail to impound the information into issuer’s stock prices effectively. This study emphasizes the importance of education on convertible instruments and improvement in the disclosure requirements on valuation losses of conversion rights embedded in convertible instruments by providing evidence that investors face difficulty in understanding the related disclosures.

This study aims to examine whether auditors who specialize in research and development (R&D) activities help reduce managers’ opportunistic adjustment of R&D expenditure for real earnings management (REM).

Using a sample of US firms during the 2001–2017 period, the authors identify auditors’ R&D specialization as their prior experience of auditing R&D expenses spent by each client’s peers. The authors measure R&D-based REM as the negative deviation from the predicted level of R&D expenditure.

The authors find that clients of R&D specialist auditors are less likely to engage in REM through a discretionary reduction of R&D expenditure. This effect is more pronounced when clients face higher competition, have larger investment opportunities and entail higher audit risks.

This study shows that auditors’ specialized knowledge can facilitate stronger monitoring of clients’ real decisions, providing implications for auditors’ knowledge acquisition and transfer in specific types of transactions.

This study contributes to the literature by documenting the governance role played by R&D specialist auditors in clients’ real economic decisions. Moreover, the study identifies R&D as a distinct area of auditor specialization.

This study aims to examine whether debt financing creates incentives for private firms to engage in earnings management via classification shifting. Especially, the authors examine whether debt-induced financial reporting incentives differ depending on the type of debt (i.e. public bonds versus private loans) and whether such incentives are influenced by the characteristics of external auditors (i.e. initial audits and auditor size).

The study uses data on 93,427 Korean private firms from 2001 to 2016. Classification shifting is measured by the positive correlation between non-core expenses and unexpected core earnings estimated with ordinary least squares.

The empirical analyses reveal that private firms engage in classification shifting as do public firms. Importantly, classification shifting is observed only in private firms that have outstanding debt, but not in private firms without debt. Among debt-financing private firms, classification shifting is more prevalent for firms that issue public debt than for firms that only use private debt. In addition, classification shifting of debt-financing private firms is more successful when they are audited by new auditors that are one of the non-Big 4 firms.

The study provides evidence of classification shifting in private firms, which is novel to the literature. However, the inferences in the study depend on the validity of the model for detecting classification shifting.

This study helps lenders enhance their understanding on the financial reporting behaviors of borrowing firms. The results in this study suggest that lenders should be cautious in using core earnings for their investment decisions.

This study contributes to the literature by providing novel evidence of classification shifting in private firms. In addition, the authors contribute to the literature on debt-induced incentives for financial reporting.

This study employed the commitment–trust theory in social psychology and relationship marketing to explore female customers' perception of channel integration quality in omnichannel retailing and its influence on their relationship commitment to and trust in the relationship with retailers, and thus on their stickiness. Channel integration quality consists of two dimensions: channel service configuration (channel choice breadth and channel service transparency) and integrated interactions (content consistency, process consistency and perceived fluency).

The study was carried out via a questionnaire survey, to which 868 valid responses were collected. The partial least squares technique was used to test the hypotheses.

Channel service transparency and perceived fluency influence relationship commitment; content consistency, process consistency and perceived fluency all have significant effects on trust. Interestingly, although less influential than integrated interactions, channel service configuration is the foundation of channel integration quality, testifying to its significant role.

This study provides strong evidence on how channel integration quality affects customer stickiness. Moreover, this study replicates the finding of significant relationships among relationship commitment, trust and stickiness in omnichannel retailing.

This study aims to examine how auditors respond to the revelation of clients’ corporate fraud.

This study uses an ordinary least squares estimation to examine how audit fees and audit turnover change after the revelation of corporate fraud.

After a client discloses fraudulent activities, average audit fees significantly increase due to an increase in audit hours, rather than in audit premiums. Both new and continuing auditors increase audit hours for fraud firms, but only new auditors charge higher audit fees for the increased effort. In addition, when auditors are designated by regulators following the revelation of fraud, audit fees and premiums increase, but audit hours do not. Finally, auditor turnover becomes more frequent after the revelation of fraud. Overall, the findings suggest that auditors update their assessment of audit risks after fraud revelation and, thus, adjust their audit pricing and client acceptance decisions.

The study provides regulators and audit practitioners with insights into how to audit contract characteristics and regulatory intervention (auditor designations) affect auditors’ response to increased audit risks.

The study contributes to the auditing literature and practice by providing evidence on how auditors respond to the revelation of fraudulent activities and how their response depends on their ability to determine audit fees. Moreover, we provide novel evidence that audit contracting characteristics and regulatory requirements result in different responses of auditors toward changes in audit risks.

This study aims to examine the extent to which customers’ perceptions of restaurant authenticity facilitate the establishment’s customer-based brand equity (CBBE) – both directly and indirectly – via customer satisfaction. The study also analyzes whether restaurant type moderates the antecedent relationships of CBBE formation.

Two restaurants of different types were selected for the study: a mid-scale and a moderate/casual restaurant. Based on a final total sample of 402 customers of both restaurant types, a moderated mediation regression model was used.

It was found that the level of authenticity perceived by the restaurant visitor during the gastronomic experience is an antecedent of restaurant brand equity formation, both directly and indirectly, via customer satisfaction. Furthermore, these antecedent relationships were found to be partially moderated by restaurant type.

Only two restaurants were used for the study. This study could be replicated by comparing other types of restaurants with differentiated characteristics to test whether the results obtained for these two types can be extrapolated to the rest.

There is no empirical evidence in the literature regarding the possible moderating effect of restaurant type on brand equity formation, so the particular note is the simultaneous application of CBBE measurement to the analysis of two different types of restaurant and the differences in their brand equity formation. On the other hand, there are few studies that use moderated mediation regression analysis as a methodological technique in the field of restaurants, so this is an interesting methodological contribution.

The study of sustainability in retail has experienced an exponential interest in recent years as a result of greater awareness on the part of consumers of the negative effects of the current way of producing and consuming on society and the environment. This work examines the heterogeneous evaluation based on behavioural variables in retail trade and how consumer perceptions towards sustainable practices implemented in stores can influence the overall store equity.

The authors propose a theoretical model based on the literature, tested through a mixed regression model in a sample of 510 customers of food retail establishments.

The dimensions of sustainability are postulated as driving forces of brand equity towards the retail establishment. Specifically, social sustainability shows a greater impact on consumer perception, being the main factor in the development of the store's brand equity. Furthermore, the analysis of unobserved heterogeneity identifies three latent classes in which the effects of perceptions on sustainable retail activities vary across consumer segments.

The study analyses in a single model the effect of sustainability dimensions on store equity from the consumer's perspective, analysing the differences between these relationships as a consequence of the unobserved heterogeneity of consumers.

For better mapping the path of intellectual capital (IC) research, the purpose of this paper is to selectively review empirical studies of IC published, and identify theories, components and three dimensions of analysis: national IC (NIC), regional IC (RIC) and organizational IC (OIC).

The systematic literature review (SLR) subject to analysis is based on empirical studies made between 1960 and 2016, and focuses on three dimensions of analysis: NIC, RIC and OIC. Four research questions were designed, using the following databases, namely, Web of Science, Scopus and Google Scholar, for data collection purposes.

The SLR unveils a multidimensional taxonomy for measuring and classifying the type of IC applicable to the different levels of analysis and provides some recommendations for future studies of NIC, RIC and OIC, by outlining the need for clear definitions of components and measures of IC and identifying strengths, limitations and future research avenues.

In order to fill the gap found in the literature and the non-existence of a study clarifying the multiple dimensions of analysis of IC, this SLR makes a twofold, original contribution to the literature on management: providing an SLR of the main empirical studies dealing with different units of analysis; and identifying a multidimensional taxonomy for measuring and classifying the type of IC applicable to the different levels of analysis.

The aim of this study is to analyse the moderating roles of restaurant type and client long-term orientation (LTO) on the loyalty building process. In addition, this analysis delves into the role of customer satisfaction and delight in the dining experience on the development of loyalty to a restaurant.

This study advances a moderator mediation model stemming from self-administered online questionnaires presented to clients subsequent to their gastronomic experiences. The analysis comprised a sample of 250 customers of moderate restaurants and 290 of midscale restaurants.

The results reveal that customer satisfaction and delight are two key antecedents to the process of building loyalty towards restaurants and that the responses depended on restaurant type and client LTO.

The study advances recommendations to restaurant managers and gastronomic marketing specialists. Moderate restaurants should satisfy the customer without offering additional services while medium-scale establishments should design actions perceived as an extra that surprise the client. Moreover, it is more important to offer delight to short-term oriented clients than to long-term oriented clients.

The global character of the hospitality industry implies that achieving customer loyalty requires going further than generating favourable attitudes. This has led the academic world to place more interest on the issue of delight perceived by the client. In this sense, the present study examines exclusively the long-term cultural dimension due to the little attention it has received in hospitality literature. Finally, the advances offered by the PROCESS software in analysing indirect conditional effects renders it possible to identify the different levels of customer LTO towards different types of restaurants.

This study aims to discern emerging trends and provide a longitudinal perspective on merchandising research by identifying relationships between merchandising-related subdomains/themes.

This study sourced 657 merchandising-related articles published since 1960, from the Scopus database and 425 from Web of Science. After processing and normalizing the data, this study performed co-word and thematic network analyses. Taking a text mining approach, this study used topic modeling to identify a set of coherent topics characterized by the keywords of the articles.

This study identified the following merchandising-related themes: branding, retail, consumer, behavior, modeling, textile and clothing industry and visual merchandising. Although visual merchandising was the first type of merchandising to be used in-store, only recently has it become an emerging topic in the academic literature. There has been a further trend over the past decade to understand the adoption of simulation technology, such as computer-aided design, particularly in supply chain management in the clothing industry. These and other findings contribute to the discussion of the merchandising concept, approached from an evolutionary perspective.

The conclusions of this study hold implications at the intersection of merchandising, sectors, new technologies, research methodologies and merchandising-practitioner education. Research trends suggest that, in the future, virtual reality and augmented reality using neuroscientific methods will be applied to the e-merchandising context.

The different dimensions of merchandising can be used to leverage store managers’ decision-making process toward an integrated store-management strategy. In particular, by adopting loyalty merchandising tactics, the store can generate emotional attachment among consumers, who will perceive its value and services as unique, thanks to merchandising items designed specifically with that aim in mind. The stimulation of unplanned purchases, the strategic location of products and duration of each merchandising activity in the store, the digitalization of merchandising and the application of findings from neuroscience studies are some of the most relevant practical applications.

This study provides the first-ever longitudinal review of the state of the art in merchandising research, taking a holistic perspective of this field of knowledge spanning a 60-year period. The work makes a valuable contribution to the development of the marketing discipline.