Flávio Cunha, Jose Dinis-Carvalho and Rui M. Sousa
This study aims to identify the perception of people in a Portuguese company regarding the main barriers to the effectiveness of the existing performance measurement system (PMS…
Abstract
Purpose
This study aims to identify the perception of people in a Portuguese company regarding the main barriers to the effectiveness of the existing performance measurement system (PMS) and whether those perceptions are dependent of people’s hierarchical levels, education levels, work shifts, gender and department.
Design/methodology/approach
Primary data was collected through structured interviews (adapted to three levels of interviewees in the company hierarchy) and Likert scale questionnaires. Descriptive statistical analysis of the collected data was performed as well as a chi-square test.
Findings
The results provide an insight on the perception of barriers to the PMS effectiveness in the company. After performing interviews and questionnaires it was possible to identify that the main perceived barriers were: poor communication system and issues on target definition, lack of trained resources, employee involvement, indicators understanding and use for improvement.
Practical implications
This study is the starting point to develop actions aiming to eliminate, or at least mitigate, the impact of the barriers on the PMS effectiveness.
Originality/value
PMSs play an essential role in an organization, so it is essential to identify what hinders its effectiveness. This study opens the discussion by diagnosing the company’s perception of the barriers to PMS effectiveness.
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Rui Falcao, Antonio Carrizo Moreira and Maria João Carneiro
The business angels market dramatically changed the modus operandi and nature of business angels’ activity, evolving from lone investors to angel groups managed professionally…
Abstract
Purpose
The business angels market dramatically changed the modus operandi and nature of business angels’ activity, evolving from lone investors to angel groups managed professionally. This paper aims to analyze the impact of angel perceived career development on angel satisfaction and, consequently, on their intention to continue investing.
Design/methodology/approach
A model was tested through covariance-based structural equation modeling (SEM) using AMOS based on data collected from 336 business angels from seven European countries.
Findings
The results highlight that: the perception of personal development is a decisive factor in pursuing the career of business angel; personal development has a higher explanatory power in angel career development than fostering innovation; and the perception of career development has positive impacts on angels’ job satisfaction and reinvestment intention. The paper ends with implications and guidelines for angels, gatekeepers and entrepreneurs, which may increase satisfaction with the angel experience and contribute to enriching business angel work.
Research limitations/implications
Cross-sectional self-reported data were used to analyze the results of this study.
Originality/value
To paper extends the body of knowledge of business angels’ perceived career development, with implications for business angels, which may increase satisfaction with angel experience and, therefore, contribute to enhancing business angels’ activity. Thus, this study provides a consistent reference for forthcoming studies regarding the career of business angels and their relationship with entrepreneurs.
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Ricardo Roseira Cayolla, Marco Escadas, Rui Biscaia, Timothy Kellison, Joana A. Quintela and Teresa Santos
The purpose of this research is to examine fans' perceptions of pro-environmental sustainability initiatives promoted by a professional sport club and the ensuing effects on a…
Abstract
Purpose
The purpose of this research is to examine fans' perceptions of pro-environmental sustainability initiatives promoted by a professional sport club and the ensuing effects on a triple bottom line (TBL) approach (i.e. fans' socially, environmentally and economically favourable behaviours).
Design/methodology/approach
Data were collected in two different steps using an online self-administered questionnaire (n1 = 1,043; n2 = 2,167) distributed to fees-paying members registered in the club's database. The analysis was carried out though structural equation modelling.
Findings
The results indicate good psychometric properties of the scale used to measure fans' perceptions of a club's pro-environmental sustainability initiatives (perceptions of pro-environmental sustainability initiatives in sports; p-PESIS). Additionally, there is a positive effect of p-PESIS on fans' social behaviours as well as on their daily environmental actions. Furthermore, p-PESIS also shows a positive effect at improving fans' economic activities towards the club.
Originality/value
Extending previous research, the authors tested a scale to measure fans' responses to pro-environmental sustainability initiatives in sport and examined their links to the TBL dimensions. Pro-environmental sustainability initiatives in sport benefit not only the club itself (by reinforcing fans' activities with the club) but also society as a whole, as it can promote fans' conscientiousness and likelihood to behave in environmentally and socially favourable ways.
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The article aims to investigate the effects of ownership and capital structure on postacquisition operating performance.
Abstract
Purpose
The article aims to investigate the effects of ownership and capital structure on postacquisition operating performance.
Design/methodology/approach
The article extends the ongoing literature from an operating loss perspective and provides empirical evidence on the probability of acquirers’ operating loss in relation to ownership and capital structure. The operating performance of publicly listed manufacturing firms in China was tracked up to five years since the completion of the mergers and acquisitions (M&A) during 2003–2014.
Findings
The empirical results show that, in a five-year postacquisition period, state-owned enterprises (SOEs) are more likely to experience operating loss than non-SOEs. The likelihood of the operating loss is negatively associated with ownership concentration, implying that concentrated ownership may serve as an effective corporate governance mechanism in the emerging economy and improve postacquisition performance. The rise in leverage increases the likelihood of postacquisition operating loss, indicating that the costs of debt may outweigh the benefits.
Originality/value
The findings contribute to the literature on ownership, debt governance and post-M&A performance from an emerging economy perspective.
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Cecília Lobo, Rui Augusto Costa and Adriana Fumi Chim-Miki
This paper aims to analyse the effects of events image from host communities’ perspective on the city’s overall image and the intention to recommend the events and the city as a…
Abstract
Purpose
This paper aims to analyse the effects of events image from host communities’ perspective on the city’s overall image and the intention to recommend the events and the city as a tourism destination.
Design/methodology/approach
The research used a bivariate data analysis based on Spearman’s correlation and regression analysis to determine useful variables to predict the intention to recommend the city as a tourism destination. Data collection was face-to-face and online with a non-probabilistic sample of Viseu city residents, the second largest city in the central region of Portugal.
Findings
The findings had implications for researchers, governments and stakeholders. From the resident’s point of view, there is a high correlation between the overall city image and the intention to recommend it as a tourism destination. Event image and the intention to recommend the event participation affect the overall city image. Results point out the resident as natural promoters of events and their city if the local events have an appeal that generates their participation. Conclusions indicated that cities need to re-thinking tourism from the citizen’s perspective as staycation is a grown option.
Originality/value
Event image by host-city residents’ perceptions is an underdevelopment theme in the literature, although residents’ participation is essential to the success of most events. Local events can promote tourist citizenship and reinforce the positioning of tourism destinations, associating them with an image of desirable places to visit and live.
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Márcio Ribeiro Martins and Rui Augusto Costa
Backpackers can be found all over the world, especially in urban areas where the main enclaves are established. The purpose of this paper is to discuss the operationalisation of…
Abstract
Purpose
Backpackers can be found all over the world, especially in urban areas where the main enclaves are established. The purpose of this paper is to discuss the operationalisation of the term “backpacker” and present a proposal to conceptualise backpackers and backpackers’ segments based on the operational criteria available in literature to avoid incongruities among researchers.
Design/methodology/approach
Based on a literature review, this study provides a critical review of the backpacker conceptualisation and operationalisation using a methodology divided into three phases, a quantitative analysis based on the Scopus database and a bibliometric analysis coupled with a manual analysis of documents (content analysis).
Findings
Substantial heterogeneity and complexity regarding the conceptualisation of backpacker tourism and its diversified subsegments were evident. For this reason, this paper argues that backpacker tourism can and should continue to be analysed from different perspectives, suitably framed in the theoretical instrument constructed to identify and distinguish the different subsegments through its operationalisation features.
Originality/value
This study provides a practical contribution to all researchers interested in the topic of backpackers proposing the operationalisation of the term backpacker and it subsegments to avoid disparate results and deviations. This contribution will enable the correct and objective assessment of the operationalisation of this concept for researchers, managers and destination management organisations, identifying exactly what phenomenon is to be studied.
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For Chinese companies that cross-list in Chinese A share and Hong Kong (H share) markets, the H share price has been consistently lower than the A share price by an average of 85…
Abstract
Purpose
For Chinese companies that cross-list in Chinese A share and Hong Kong (H share) markets, the H share price has been consistently lower than the A share price by an average of 85% in recent years. This is puzzling because most institutional differences between the two markets have been eliminated since 2007. The purpose of this study is to explain the puzzle of the price difference of A+H companies.
Design/methodology/approach
Using all A and H share Chinese firms in the period 2007–2013 and a simultaneous equations approach, this study identifies three new explanations for the recent price difference.
Findings
First, utilizing a unique earning quality measure that is directly related to non-persistent components of fair value accounting under International Financial Reporting Standards (IFRS), this study finds that the lower the earnings quality, the lower the H share price relative to the A share price, and hence the greater the price difference. Second, the higher the myopic investor ownership in A share firms, the larger the A share price relative to the H share price. Third, the short-selling mechanism introduced to the A share market since 2010 helps reduce the price difference.
Originality/value
First, this study identifies three new explanations for the puzzle of the AH price difference which remains substantial even after the institutional and accounting standards differences between the two markets were eliminated. Second, we examine the impact of the implementation of fair value accounting under IFRS in an emerging market on the pricing difference of cross-listed shares and reveal that it can induce an unintended negative consequence on the pricing difference of cross-listed shares. Third, this study contributes to the literature on short sales by providing its mitigating role in pricing differences across two different markets. Finally, this study makes improvements in research design, which utilizes a unique measure of earnings quality that is directly related to the implementation of IFRS and a simultaneous equations approach that minimizes endogeneity concern.
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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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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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Bill B. Francis, Xian Sun, Chia-Hsiang Weng and Qiang Wu
The aim of this paper is to examine how managerial ability affects corporate tax aggressiveness.
Abstract
Purpose
The aim of this paper is to examine how managerial ability affects corporate tax aggressiveness.
Design/methodology/approach
The study follows the work of Demerjian, Lev, and McVay (2012) and quantifies managerial ability by calculating how efficiently managers generate revenues from given economic resources using the data envelopment analysis (DEA) approach. The study uses a wide range of measures of tax aggressiveness. Firm fixed-effects regressions and a difference-in-differences approach using information regarding CEO turnover to control for endogeneity are used.
Findings
The study finds a negative relationship between managerial ability and corporate tax aggressiveness. Further tests show that this negative relationship is more pronounced for firms with higher investment opportunities or firms with more reputational concerns.
Originality/value
Given the significant costs associated with tax aggressiveness and the negative effect it can have on managerial reputation if discovered, the results suggest that more able managers invest less effort in aggressive tax avoidance activities. This study furthers the understanding of how managerial personal traits affect corporate decision-making.