John C. Gardner and Carl B. McGowan
The objective of this paper is to analyze the five largest companies in the soft drink industry in the context of the regional triad theory as presented in Rugman and Brain (2003…
Abstract
The objective of this paper is to analyze the five largest companies in the soft drink industry in the context of the regional triad theory as presented in Rugman and Brain (2003) and later in Rugman and Verbeke (2004b, 2007). We find that of the five largest companies in the soft drink industry, only Coca‐Cola meets the definition of a global company as defined by regional triad theory. National Beverage is a strictly domestic company and Cadbury, Cott, and Pepsi are bi‐regional MNEs with sales in the NAFTA and European triad regions. Coca‐Cola reports sales in five major geographic regions, which fits the criteria of a global firm
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Carl B. McGowan, Henry W. Collier and Colin M. Young
The objective of this paper is to demonstrate how to use the Elton, Gruber, and Padberg [1978] model to construct optimal portfolios and to facilitate the use of this paradigm by…
Abstract
The objective of this paper is to demonstrate how to use the Elton, Gruber, and Padberg [1978] model to construct optimal portfolios and to facilitate the use of this paradigm by providing an example of how the technique is used. The EGP model uses the risk‐adjusted, excess return for an asset to determine the optimal portfolio for a given risk‐free rate of return. This paper shows exactly how to calculate the optimal portfolio and provides a True Basic@ program to do so. The data used are constructed from Capital International Indexes taken from various issues of Barrons from March 1978 to December 1986.
Carl B. McGowan and William Dobson
This paper presents a new research design to test the efficacy of the Arbitrage Pricing Theory of Ross [1976], similar to that applied by Christofi, Christofi and Philippatos…
Abstract
This paper presents a new research design to test the efficacy of the Arbitrage Pricing Theory of Ross [1976], similar to that applied by Christofi, Christofi and Philippatos [1993]. In particular, we use a combination of factor analysis and canonical correlation to test the underlying relationships between APT factors developed using factor analysis and unanticipated changes in five macro‐economic variables that have been shown to be related to stock returns. The results of this paper indicate that the first factor of industry returns is strongly related to the S&P 500 while the remaining four factors are highly correlated with the term structure of interest rates, the rate of inflation, the default premium, and the industrial production, respectively.
B.T. Matemilola, A.N. Bany-Ariffin and Carl B. McGowan
– This paper aims to test the significance of unobservable firm-specific effects on a capital structure model.
Abstract
Purpose
This paper aims to test the significance of unobservable firm-specific effects on a capital structure model.
Design/methodology/approach
The paper employs the restricted least squares method to test the significance of unobservable firm-specific effects in a fixed effects model that includes unobservable effects against a pooled ordinary least squares model that excludes unobservable effects.
Findings
The empirical findings indicate that models that include unobservable firm-specific effects are correctly specified.
Research limitations/implications
The limitation of this study comes from lack of data to measure unobservable effects such as managerial ability or managerial skills. Future research can develop index measures of managerial ability or managerial skills and borrow from management theory to explain the connection between managerial ability or managerial skills and firms' capital structure.
Practical implications
The findings imply that a capital structure model that excludes firm-specific effects could be mis-specified because such a model does not control for unobservable firm-specific factors such as managerial ability or managerial skills which have significant effects on firms' capital structure decisions.
Originality/value
The findings are important because the paper applies the restricted least squares method to test the significance of unobservable firm-specific effects. This technique has not been applied previously. The paper contributes to capital structure research in the fast growing South Africa.
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Hong Kim Duong, Anh Duc Ngo and Carl B. McGowan
– The purpose of this paper is to examine the role of industry peers in shaping firm debt maturity decisions.
Abstract
Purpose
The purpose of this paper is to examine the role of industry peers in shaping firm debt maturity decisions.
Design/methodology/approach
The authors use idiosyncratic equity shocks as instruments to disentangle industry fixed and peer effects. The authors also employ a three-stage least squares regression (3SLS) model to capture the correlation among thee (short, medium, and long) debt maturity decisions.
Findings
The authors find that a one standard deviation change in peer short (medium, long) maturity debt leads to a 50 percent (37 percent, 23 percent) change in firm corresponding maturity debt and that these mimetic behaviors are statistically significant within, but not between, firm size groups. The findings also reveal that firms that mimic the short and medium (long) debt maturity structure of their peers tend to increase (decrease) firm performance as measured by profitability, return-on-assets, and stock returns.
Research limitations/implications
First, given the research design, the authors are constraint from pinpointing the exact date of the mimicking behaviors. This limitation prevents the authors from establishing the causality of the mimicking behavior and firm performance. Future research can extend the findings by solving this problem. Second, it should be interesting to address the question of whether mimicking behavior is good or bad for firm performance. The authors only compare the performance of Close Followers and Loose Followers; however, it would be more precise to compare the performance of mimicking firms with the performance of non-mimicking firms.
Originality/value
First, the findings extend the debt maturity structure literature by providing empirical evidence that an important determinant of firm debt maturity is industry peer debt maturity. Since debt maturity directly influences firm risk and performance, it is important for debt and equity holders to know how firms choose their debt maturity so that they can estimate their investment risk precisely. Second, the paper provides new empirical evidence supporting the information acquisition and principal-agent theories in demonstrating that firm performance increases when managers herd over short and medium debt maturity decisions and decreases when managers herd over long debt maturity decisions.
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Paul K. Asabere, Carl B McGowan Jr. and Sang Mook Lee
The purpose of this paper is to explore the link between mortgage financing and economic development for African countries, as there is a gap in the literature regarding this…
Abstract
Purpose
The purpose of this paper is to explore the link between mortgage financing and economic development for African countries, as there is a gap in the literature regarding this topic. The development of mortgage markets is important for the overall development of a country. Policymakers and international institutions like the World Bank have been promoting the expansion of Africa’s nascent mortgage markets as a logical stimulus to economic growth and development. Specifically, the authors analyze the link between the size of the mortgage market and the gross national income (GNI) per capita for African countries. They found a significant positive correlation between the size of the mortgage market and GNI per capita. A plausible interpretation is that mortgage financing can induce growth and development.
Design/methodology/approach
The authors examine the relationship between mortgage financing and GNI per capita for African countries using the hedonic framework.
Findings
The authors found a significant positive correlation between the size of the mortgage market and the level of GNI per capita, as hypothesized for this study.
Practical implications
An economically plausible interpretation is that the availability of mortgage financing leads to a more efficient financial system, which, in turn, produces growth and development.
Social implications
These findings provide empirical support for the need to pay greater attention to further development and expansion of the emergent mortgage markets of African economies.
Originality/value
There is a gap in the empirical literature regarding this topic with reference to the link between mortgage financing and economic development for African countries.
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Nitjaree Maneerat, Karen Byrd, Carl Behnke, Douglas Nelson and Barbara Almanza
This study aimed to determine the factors affecting consumers’ perceptions and intention to purchase home meal kit services (HMK), a convenient home-cooked meal option…
Abstract
Purpose
This study aimed to determine the factors affecting consumers’ perceptions and intention to purchase home meal kit services (HMK), a convenient home-cooked meal option, considering the moderating effects of monetary restriction, through the lens of the theory of planned behaviour (TPB).
Design/methodology/approach
This cross-sectional study used an online, self-administered survey to collect data from 374 US adults. Results were tested for variable associations via multiple linear regression and moderation analyses.
Findings
HMK adoption intention was positively associated with attitude and subjective norms but negatively associated with perceived behavioural control. Consumers’ HMK attitude demonstrated a significant positive relationship with food safety concerns and perceived time constraints. Income and financial constraints were significant moderators of the associations between TPB determinants and HMK intention. The findings emphasised the possibility of using HMK as a foodservice option for time-challenged consumers with food safety concerns.
Originality/value
This study addressed the limited research on HMK, a competitive meal option that foodservice businesses could implement to boost revenue. The study establishes the contribution in understanding the motivators and barriers that potentially affect consumers’ HMK behaviour through the lens of TPB. The results expand the scope of the TPB application in food-related research, providing a deeper understanding of antecedents and other factors on consumers’ HMK behavioural attitudes. Understanding this information will enable practitioners to develop strategies that meet consumers’ concerns when embracing this service to promote HMK.
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Suzaida Bakar and Bany Ariffin Amin Noordin
Dynamic predictions of financial distress of the firms have received less attention in finance literature rather than static prediction, specifically in Malaysia. This study…
Abstract
Dynamic predictions of financial distress of the firms have received less attention in finance literature rather than static prediction, specifically in Malaysia. This study, therefore, investigates dynamic symptoms of the financial distress event a few years before it happened to the firms by using neural network method. Cox Proportional Hazard regression models are used to estimate the survival probabilities of Malaysian PN17 and GN3 listed firms. Forecast accuracy is evaluated using receiver operating characteristics curve. From the findings, it shown that the independent directors’ ownership has negative association with the financial distress likelihood. In addition, this study modeled a mix of corporate financial distress predictors for Malaysian firms. The combination of financial and non-financial ratios which pressure-sensitive institutional ownership, independent director ownership, and Earnings Before Interest and Taxes to Total Asset shown a negative relationship with financial distress likelihood specifically one year before the firms being listed in PN 17 and GN 3 status. However, Retained Earnings to Total Asset, Interest Coverage, and Market Value of Debt have positive relationship with firm financial distress likelihood. These research findings also contribute to the policy implications to the Securities Commission and specifically to Bursa Malaysia. Furthermore, one of the initial goals in introducing the PN17 and GN3 status is to alleviate the information asymmetry between distressed firms, the regulators, and investors. Therefore, the regulator would be able to monitor effectively distressed firms, and investors can protect from imprudent investment.
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Tessa Withorn, Jillian Eslami, Hannah Lee, Maggie Clarke, Carolyn Caffrey, Cristina Springfield, Dana Ospina, Anthony Andora, Amalia Castañeda, Alexandra Mitchell, Joanna Messer Kimmitt, Wendolyn Vermeer and Aric Haas
This paper presents recently published resources on library instruction and information literacy, providing an introductory overview and a selected annotated bibliography of…
Abstract
Purpose
This paper presents recently published resources on library instruction and information literacy, providing an introductory overview and a selected annotated bibliography of publications covering various library types, study populations and research contexts.
Design/methodology/approach
This paper introduces and annotates English-language periodical articles, monographs, dissertations, reports and other materials on library instruction and information literacy published in 2020.
Findings
The paper provides a brief description of all 440 sources and highlights sources that contain unique or significant scholarly contributions.
Originality/value
The information may be used by librarians, researchers and anyone interested in a quick and comprehensive reference to literature on library instruction and information literacy.