Aulia Fuad Rahman and Norman Mohd‐Saleh
Prior research identifies free cash flow (FCF) as one source of agency problems between managers and shareholders. Managers of firms with high FCF and of low growth opportunity…
Abstract
Prior research identifies free cash flow (FCF) as one source of agency problems between managers and shareholders. Managers of firms with high FCF and of low growth opportunity tend to invest in marginal or even negative NPV project and use income increasing discretionary accruals to camouflage the effects of non‐wealth‐maximizing investments. Therefore, the objective of this study is to assess the value relevance of earnings and book value and the effect of agency problem caused by FCF, on the value relevance of earnings and book value. As predicted, results show that earnings and book value are value relevant and agency problem caused by FCF, reduces the value relevance of earnings and book value. However, the effect is not stable across sample years Firms with FCF agency problem do not have lower earnings (book value) coefficient than other firms in year 2002 (2004). Investigation into specific event that may have driven the difference in result is subject to further research.
Details
Keywords
Waseem Khan, Asif Akhtar, Saghir Ahmad Ansari and Aruna Dhamija
This study aims at identifying a set of determinants that affect halal food purchase intention and measures the relative ranks of these determinants in purchasing halal food among…
Abstract
Purpose
This study aims at identifying a set of determinants that affect halal food purchase intention and measures the relative ranks of these determinants in purchasing halal food among Muslim consumers in India.
Design/methodology/approach
Interpretive structural modeling (ISM) approach has been employed in the research, which is an expert opinion-based approach. The opinions of experienced academicians and marketing professionals have been recorded for reaching to the conclusions. Matrice d' impacts croises multiplication appliqué an classement (MICMAC) analysis has also been applied to examine the driving and dependent power of these determinants.
Findings
Driver power–dependence matrix reveals that although knowledge of halal and attitude are weak drivers, yet they are strongly dependent upon other determinants. These two variables are at the top of the ISM digraph hierarchy. Food safety and halal labeling have strong driving power, as well as strong dependence. Three determinants, namely brand origin, religiosity and price, have strong driving powers and weak dependence. These variables lay at the bottom level of the ISM model.
Practical implications
This study provides a better understanding of the determinants of halal food purchase intention. This will help the marketers for making appropriate and effective product design and other marketing strategies suited to the needs of the consumer.
Originality/value
This is the first study that examines the interrelationships between determinants and relative rank of these determinants in halal food purchase, using ISM approach and MICMAC analysis.