John Theis and Amitabh S. Dutta
The purpose of this paper is to examine the Dickens et al. model of bank holding company dividend policy. They identified five explanatory factors in a sample of bank holding…
Abstract
Purpose
The purpose of this paper is to examine the Dickens et al. model of bank holding company dividend policy. They identified five explanatory factors in a sample of bank holding companies (BHCs). Banking companies typically pay larger dividends and more often than industrial firms. Investors often look at the dividends as being important return variables.
Design/methodology/approach
In this study, a sample of 99 firms with 2006 data from governmental reports and Yahoo is used in regression equations to test the relationship of the five identified variables with dividend yields. The analysis is extended to investigate non‐linearities between dividend yield and insider ownership.
Findings
The paper finds that the original model is robust, but not all variables keep their significance. Insider holdings have a non‐linear relationship with dividend yields.
Practical implications
The significant factors affecting bank dividend policy help dividend seeking investors find BHCs that return higher dividend yields.
Originality/value
This paper reveals a non‐linear link between insider holdings and dividend yields among BHCs.
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James W. Wansley, M. Cary Collins and Amitabh S. Dutta
Recent studies have shown that the level of insider holdings and firm value are related in a nonlinear manner. Other studies find that the level of debt in a firm's capital…
Abstract
Recent studies have shown that the level of insider holdings and firm value are related in a nonlinear manner. Other studies find that the level of debt in a firm's capital structure declines with increases in its growth options. The principal‐agent relationship maintains that an increase in the equity stake of insiders reduces the agency costs of issuing debt. Extension of this premise suggests, however, that the agency costs of debt rise with extremely high levels of insider holdings as insiders consume perquisites to the detriment of outside stakeholders, revealing a nonlinear relation attributable to agency costs. We examine the relation between debt financing and insider holdings for 1894 firms at the end of 1989. In keeping with the hypothesized relation, the cross‐sectional regressions of leverage on insider holdings reveal significant nonlinearities. Leverage first rises with insider holdings and then declines. The positive relation between leverage and insider holdings returns as inside ownership approaches 100 percent. These results hold for two different measures of leverage and after controlling for industry differences in leverage, tax shields, firm size, growth options, and earnings or return volatility. The results also hold when regulated firms are excluded from the analysis.
Reviews previous research on the relationship between ownership structure, debt structure and dividend policy within the context of agency theory, which has usually excluded…
Abstract
Reviews previous research on the relationship between ownership structure, debt structure and dividend policy within the context of agency theory, which has usually excluded regulated firms from the samples. Explores the links between insider holdings, dividends and debt using 1994‐1997 data from a sample of 136 US bank holding companies and a simultaneous equations regression framework. Finds the level of insider holdings, as expected, is not related to debt ratio but, contrary to expectations that it is strongly related to the level of dividends. Considers possible explanations for this and promises further research.
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Tanusree Dutta, Subhadip Roy, Soumya Sarkar and Sudipa Nag
This study aims to investigate the nuances of celebrity spokesperson effectiveness in business-to-business (B2B) advertising. Specifically, the study addresses the question of…
Abstract
Purpose
This study aims to investigate the nuances of celebrity spokesperson effectiveness in business-to-business (B2B) advertising. Specifically, the study addresses the question of endorser effectiveness in the presence of product complexity (high vs low) and how this effect is moderated by endorser gender. In addition, the study also explores whether the way an endorser is placed in the advertisement (product-facing vs audience-facing) would have differential effects on the buyer.
Design/methodology/approach
The present study uses experimental design to fulfil the study objectives. Two experiments are conducted (total n = 201) on employees in a purchasing role in organisations, with the dependent variable being dwell time (captured using an eye-tracking device).
Findings
Major findings indicate that celebrity gender has a moderating effect depending on the product complexity. Results also indicate a significant effect of how the celebrity is placed in the advertisement on the buyer.
Research limitations/implications
The findings emphasise the role of the spokesperson in B2B advertising using neuro-behavioural data. It also contributes to the theoretical nuances of spokesperson gender in B2B advertising and the role of kinesics in advertising using spokespersons.
Practical implications
The study provides guidelines on the choice of the spokesperson and their physical posture in the advertisement for B2B advertisers that may lead to communication effectiveness.
Originality/value
The present study is in a domain that is scarcely researched in B2B and adds novelty as it uses physiological data instead of self-reported measures.
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Amitabh Anand, Elena Sinitsyna, Sándor Takács and Sergey Kazakov
This study aims to develop and validate the scales on the dark side of internal communication (IC) that capture a more nuanced perception of ineffectiveness, manipulation and…
Abstract
Purpose
This study aims to develop and validate the scales on the dark side of internal communication (IC) that capture a more nuanced perception of ineffectiveness, manipulation and miscommunication from the employee perspective. This study also examines this scale's effects on employee outcomes (such as employee loyalty and quiet quitting).
Design/methodology/approach
The authors developed the dark side of the IC scale through qualitative interviews and a review of relevant literature. Statistical techniques such as exploratory and confirmatory factor analysis, convergent validity and nomological validity were performed on the newly produced scales. The authors also examined the predictive validity effects of these scales on employee loyalty and quiet quitting using participants from Hungary.
Findings
The scale development resulted in a 15-item measuring three dimensions of the dark side of IC. After several statistical examinations, the scale exhibited robust psychometric properties and is reliable and valid.
Originality/value
This study empirically supported the new phenomenon of studying the dark side of IC, and the scale can be used to measure employee outcomes, the effectiveness of organizational communication, etc.
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Kavita Sharma and Emmanuel Elioth Lulandala
COVID-19 preventive measures disrupted the media and entertainment business ecosystem, increased over the top (OTT) consumption, brought new OTT players, thus increased…
Abstract
Purpose
COVID-19 preventive measures disrupted the media and entertainment business ecosystem, increased over the top (OTT) consumption, brought new OTT players, thus increased competition, and shaped consumer behaviour and habits. Despite this knowledge, in-depth insights into OTT's consumer behaviour, new usage habit and strategies used by subscription-based OTT platforms to maintain resilience during the COVID-19 pandemic are unknown. This paper aims to fill the two gaps in the extant OTT literature.
Design/methodology/approach
This study used Eisenhardt's multiple case studies approach to derive the strategies used by the top-performing subscription-based OTT platforms in India. Moreover, a purposive semi-structured Google survey was used to explore consumers' OTT experience during the pandemic. This study analysed data using NVivo 12 (survey) and MS Excel 2010 (case studies).
Findings
This study derived seven resilient OTT strategies; competitive low pricing, enhancing customer experience, launching innovative service plans, content localisation, strategic collaboration, flexibility in technology adoption and proactive sales promotion. Consequent to adopting these strategies, consumers' usage of OTT evolved from occasional to habitual. Convenience, ease of accessibility, risk of contracting COVID-19, variety and quality of content, online reviews and affordability drive consumer preference for OTT. Also, this study revealed consumers' varied OTT experiences.
Originality/value
The contribution is two-fold; the derived strategies for maintaining resilience and the in-depth insights into habit formation and consumer behaviour during and after the COVID-19 pandemic. This study is valuable for media and entertainment stakeholders like streaming service providers, OTT services, cable operators, etc.
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Aleksandra Selezneva, Anna Veselova and Amitabh Anand
The paper presents a systematic literature review on business model transformation (BMT). The aim of the study is to determine the main research streams in BMT literature, develop…
Abstract
Purpose
The paper presents a systematic literature review on business model transformation (BMT). The aim of the study is to determine the main research streams in BMT literature, develop a conceptual model on BMT research, and identify potential directions for future research.
Design/methodology/approach
The authors use systematic literature review approach and provide a detailed protocol to meet reliability requirements. The study is based on the multilayer in-depth analysis of 92 articles published in leading international journal in general management, international business, strategy, innovation, and organization studies.
Findings
The paper identifies a crucial importance of further research on BMT with regards to the context specificity of a company's country of origin, transformation of value delivery and value capture blocks of BMs, entrepreneurial techniques of BMT management, and international aspects of BMT.
Originality/value
By a means of systematic literature review, the paper envisages the current state of knowledge about BMT, traces the development of BMT research, classifies it, and identifies potential directions for future inquiries.
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Santosh Kumar and Arunaditya Sahay
The case study “Maruti Suzuki – toward cleaner mobility” has been written keeping in view the requirements in the field of strategic management. The key learning objectives are as…
Abstract
Learning outcomes
The case study “Maruti Suzuki – toward cleaner mobility” has been written keeping in view the requirements in the field of strategic management. The key learning objectives are as follows:• Analysis of business environment.• Product development strategy – creating market segment to gain competitive advantage by leveraging available organizational capabilities.• Strategic decision-making – understanding strategic decision-making process in a complex and highly competitive business scenario.
Case overview/synopsis
Maruti Suzuki, a leader in Indian automotive market with around 50% market share in passenger cars, was likely to face intense competition because of disruption by electric vehicles. As electric vehicles adoption was increasing globally in developed countries, automotive companies shaped their strategy accordingly to stay relevant. Maruti Suzuki was yet to be ready with electric vehicles and approached this space differently than other competitors. However, with Indian Government pushing toward cleaner mobility, it was yet to be seen how the company would manage to comply with legislations and compete effectively in marketplace. Indian Auto major, Maruti Suzuki, was on the edge to decide future strategy on electric vehicles to sustain its leadership position. The Indian automotive sector was going through the transformation where auto original equipment manufacturers were bringing electric vehicles and supporting policies from government likely to accelerate its adoption. Maruti Suzuki was striving to counter the competition with available resources to create competitive advantage in changing environment and continue to remain profitable with leadership position in Indian automotive market. The company had successfully maintained its leading position over three decades and transformed the automotive space with its strategies ahead of the curve. Now the company was standing at crossroads with regard to future technology on cleaner mobility. Mr Bhargava had to decide whether to throw the hat in EV ring or wait for other alternate technology disruption.
Complexity academic level
Management studies and executive development programs.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy
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Abhishek Narain Singh, M.P. Gupta and Amitabh Ojha
Despite many technically sophisticated solutions, managing information security has remained a persistent challenge for organizations. Emerging IT/ICT media have posed new…
Abstract
Purpose
Despite many technically sophisticated solutions, managing information security has remained a persistent challenge for organizations. Emerging IT/ICT media have posed new security challenges to business information and information assets. It is felt that technical solutions alone are not sufficient to address the information security challenge. It has been argued that organizations also need to consider the management aspects of information security. Consequently, literature, especially in the last decade, has witnessed various scholarly works in this direction. Therefore, a synthesis exercise is required to bring clarity on categorizing the issues of organizational information security management (ISM) to take the research forward. The purpose of this paper is to identify management factors that address organizational information security challenges.
Design/methodology/approach
Using a mix method approach, the paper adopts the qualitative (keyword analysis and experts’ opinion) and quantitative (questionnaire survey) research routes. Exploratory factor analysis is conducted to find out the key factors of organizational ISM.
Findings
The paper categorizes various organizational ISM functions into ten factors. Spanning across three levels (strategic, tactical and operational), these factors cover various management issues of organizational ISM.
Originality/value
The paper takes the ISM literature forward by statistically validating the key management factors of organizational ISM. The study outcome should help to draw the attention of organizations toward the managerial challenges of organizational ISM.