Bruce Pfau, Denis Detzel and Andrew Geller
The lack of close attention to internal supplier‐customer relationships can jeopardize external customer satisfaction. Companies must ensure that all customers are satisfied—both…
Abstract
The lack of close attention to internal supplier‐customer relationships can jeopardize external customer satisfaction. Companies must ensure that all customers are satisfied—both within and outside of the firm.
Van Son Lai, Duc Khuong Nguyen, William Sodjahin and Issouf Soumaré
We identify a novel concept of discretionary idiosyncratic volatility proxied by the idiosyncratic volatility component not related to the non-systematic industry volatility as a…
Abstract
We identify a novel concept of discretionary idiosyncratic volatility proxied by the idiosyncratic volatility component not related to the non-systematic industry volatility as a source of agency problems that have implications for firms’ cash holdings and their investment decisions. We find that firms with low discretionary idiosyncratic volatility, which likely captures discretionary effort and risk-taking by managers, have smaller cash reserves. Moreover, while high discretionary idiosyncratic volatility firms spend cash internally (internal capital building), low discretionary idiosyncratic volatility firms use it for external acquisitions, consistent with the “quiet life” hypothesis. Our findings thus indicate a need for reinforcement of existing regulations and corporate laws to control for agency costs, which could in turn reduce firm risk and the probability of financial meltdown at the aggregate level.
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Vikash Ramiah, Imad Moosa, Ben O'Neill, Milica Backulja, Amel Yacoub, Terry Hallahan and John Vaz
The structure of the Malaysian fund market presents a unique setting in which to examine behavioural and cultural differences in the performance of fund managers. The purpose of…
Abstract
Purpose
The structure of the Malaysian fund market presents a unique setting in which to examine behavioural and cultural differences in the performance of fund managers. The purpose of this paper is to utilise Taylor's extension of the tournament model of Brown et al. who argued that using an exogenous (endogenous) benchmark induces losing (winning) managers to gamble. This presents two competing testable hypotheses that are investigated in the current study.
Design/methodology/approach
The authors use a sample of Malaysian unit trusts covering the period 1982 to 2010, applying the non‐parametric cross‐product ratio methodology to test all Malaysian funds and determine whether there is empirical evidence of tournament behaviour. The authors separate Malaysian funds into two main categories (conventional and Islamic) to find out whether different fund types affect the behaviour of the funds as a whole.
Findings
Overall, Taylor's theory does not hold in the Malaysian fund market, as conventional funds display tournament behaviour regardless of the benchmark used. However, Islamic funds do not display any significant tournament behaviour.
Originality/value
The current study uses a non‐parametric approach to look for evidence of tournament (gaming) behaviour in the performance of fund managers in Malaysia. In doing so, the authors extend the tournaments literature by examining the performance of three data sets pertaining to the performance and evidence of tournament behaviour in: all managed funds in Malaysia; Islamic funds; and conventional funds. A major motivation for choosing the Malaysian data of unit trusts is to investigate and examine the behaviour of funds operating in an economy that is an emerging market in the rapidly expanding Asian economy; is a market that has a reporting period in line with the calendar year; and is an economy with a strong presence of Islamic funds (Shariah) and Muslim population.
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Andreas Beckmann, Uthayasankar Sivarajah and Zahir Irani
Circular economy is presented as an approach to economic growth that is in line with sustainable development. However, the recent literature has highlighted the limits of the…
Abstract
Purpose
Circular economy is presented as an approach to economic growth that is in line with sustainable development. However, the recent literature has highlighted the limits of the concept in terms of environmental sustainability. The study examines the relationship between circular economy and conservation of ecosystems, using a case study on the implications of a circular economy for Slovak forests and forest sector.
Design/methodology/approach
This study adopts a qualitative methodology through a focused review of the relevant literature on circular economy and sustainable development and primary data gathered through semi-structured interviews with 15 experts and practitioners in the forest sector, forest conservation and circular economy context, both from within as well as outside of Slovakia.
Findings
The study finds that the forestry sector has an important role to play in a shift to a circular economy in Slovakia, with significant opportunities for improved efficiency as well as substitution of wood for non-renewable resources. There is also growing potential for ecosystem stewardship and restoration. However, the increased application of biomass could crowd out other needs, including for biodiversity. Safeguarding these services depends ultimately on good governance.
Originality/value
The study highlights that circular economy taken in a narrow focus on resource efficiency is insufficient to ensure environmental sustainability but rather needs to be set within the broader environmental and social context.