Gary C. Biddle, Robert M. Bowen and James S. Wallace
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits…
Abstract
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits. Compares EVA’s ability to explain stock returns with that of earnings before extraordinary items (EBEI) and cash flow using 1984‐1993 US data; and finds EBEI is most closely related. Examines EVA’s incentive effects on management investing, financing and operating decisions and shows that, although EVA users decreased new investment, increased dispositions of assets, increased share repurchases, used assets more intensively and increased residual income, market reactions to this were weak. Suggests possible reasons for this and concludes that EVA may align management incentives with shareholders’ interests but this does not necessarily increase shareholder value.
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Jasvir S. Sura, Rajender Panchal and Anju Lather
The main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures…
Abstract
Purpose
The main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures, i.e. profit after tax (PAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE) and return on investment (ROI) in the Indian manufacturing sector and at the same time, give empirical facts. It also tests and examines the information content of various performance measures and their relationship with stock returns.
Design/methodology/approach
The paper uses the sample of 534 Indian manufacturing companies from the Bombay Stock Exchange (BSE) during the period 2000–2018. Multiple regression models are applied to examine the information content of EVA and traditional performance measures in explaining shareholders’ returns.
Findings
Relative information content tests revealed that traditional accounting-based measures such as EPS, ROE and ROA performed better than EVA in explaining the returns of Indian manufacturing companies. Incremental information content of EVA adds little contribution to information content above traditional performance measures. The claim of superiority of EVA over accounting-based measures in association with shareholder returns is proved invalid in Indian manufacturing companies.
Originality/value
This study concludes that EVA has no superiority over traditional accounting-based financial performance measures in explaining stock returns of Indian manufacturing companies. To achieve heftiness in outcomes, panel data are tested by using Breusch–Pagan–Godfrey (BPG) test for heteroskedasticity, Hausman’s test for fixed and random effect, variance inflation factor (VIF) test for multicollinearity and Durbin–Watson test for autocorrelation.
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Margaret K. Hogg and Pauline Maclaran
The purpose of this paper is to examine how consumer researchers working in the interpretivist tradition go about composing well founded theorized storylines, in order to convince…
Abstract
Purpose
The purpose of this paper is to examine how consumer researchers working in the interpretivist tradition go about composing well founded theorized storylines, in order to convince audiences of the soundness of the theory‐building which emanates from their studies.
Design/methodology/approach
An analytical framework was derived from Golden‐Biddle and Locke's study of organizational ethnographers to see how they made their accounts convincing to their audiences. Golden‐Biddle and Locke's analysis revealed 3Ds – authenticity, plausibility and criticality (each with a variety of sub‐dimensions) – that played key rhetorical roles in convincing readers.
Findings
Using this analytical framework (summarized in three tables), examples from a variety of authors' work in Journal of Consumer Research ( JCR) were drawn upon to illustrate how interpretivist consumer behaviour authors tackled these three key dimensions: authenticity, plausibility and criticality.
Research limitations/implications
Only a limited set of JCR studies out of an extensive field of qualitative research in consumer behaviour were analyzed.
Originality/value
Little attention has been paid hitherto to the actual practices of writing qualitative research within the marketing field. The more basic writing techniques involved in qualitative research tend to be regarded as implicit, skills that are acquired by osmosis rather than being formally taught or made explicit. This can make it particularly difficult for less‐experienced interpretivist researchers to learn the tools of their qualitative trade, which are often taken for granted by longer standing researchers. The paper seeks to make some of these writing practices more transparent and some of the rhetorical devices more explicit for authors who may wish to improve their own writing styles or strengthen their ability to use rhetoric.
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Donald K. Clancy and Denton Collins
The purpose of this study is to review the capital budgeting literature over the past decade.
Abstract
Purpose
The purpose of this study is to review the capital budgeting literature over the past decade.
Design/methodology
Specifically, over the years 2004–2013, we review works appearing in the major academic journals in accounting, finance, and management. Further, we review the specialized academic journals in management accounting. We examine the frequency of articles by journal and year published, the type of research method applied, and the topic area studied. We then review the research findings by topic area.
Findings
We find 110 articles appearing in the selected journals. While the articles increase in frequency, the research methods applied are predominantly analytical and archival in nature with relatively few experiments, case studies, or surveys. Some progress is observed for capital budgeting techniques and new methods for structuring uncertainty. The studies find that the size of capital budgets is about right for companies with high financial reporting quality, for liquid companies, during periods of normal cash flow, when the budget is financed by equity, for companies when they first go public or first go private. Tax rates and financial reporting methods for depreciation and tax expenses distort capital budgets. Organization structure and performance measurement can distort capital budgeting. Individual differences, especially optimism and honesty, can influence capital budgeting decisions.
Limitations and Implications
This review is limited to the major journals in accounting, finance, and management; and the specialized journals in management accounting. There is much research to be done on capital budgeting, especially case studies of actual practice and experiments related to individual and group decision processes.
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Florian Ritter, Anja Danner-Schröder and Gordon Müller-Seitz
In this study, the authors applied a routine dynamics perspective to examine how agile routines enhance efficiency while allowing flexibility in a world of flux. Hence, the…
Abstract
In this study, the authors applied a routine dynamics perspective to examine how agile routines enhance efficiency while allowing flexibility in a world of flux. Hence, the authors conducted an ethnographic case study in the IT sector, following a scrum team. The findings indicate that agile routines create affordances for addressing temporal orientations toward the past, present, and future. Within the scrum framework, each routine has a designed temporal orientation, such that the planning meeting is oriented toward the future. Actors enacted this single, temporal orientation through temporal demarcating patterns. However, in some instances, other temporal orientations conflicted with the dominant one. In those cases, actors enacted temporal integrating patterns that embraced multiple temporal orientations. The authors contribute to research on routine dynamics by demonstrating how (1) temporal demarcating enables organizational benefits, (2) temporal integrating enables learning from and anticipating problems, and (3) temporal spaces emerge within routine enactments to solve problems at hand.
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Yanfei Hu and Claus Rerup
James March argued that irrational approaches to problem solving and foolishness can be useful for addressing complex problems. Grand challenges are complex problems that often…
Abstract
James March argued that irrational approaches to problem solving and foolishness can be useful for addressing complex problems. Grand challenges are complex problems that often involve “guarded societal institutions” – societal beliefs and practices guarded by political or commercial powers. To explain how organizations with impossible goals dismantle such institutions by mobilizing irrationality and foolishness, we develop a process model which is illustrated with the case of People for the Ethical Treatment of Animals. Our main contribution is to expand James March’s ideas on logics of action and organizational intelligence to advance a novel perspective for tackling big societal problems. We argue that foolishness is not only a means for finding distant solutions to complex problems but also a means for generating sustained motivation, well-being, and ideas that spark debate and lead to the questioning of taken-for-granted societal beliefs.
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The modern concept of labor hoarding emerged in early 1960s, and soon became a standard part of mainstream economists’ explanation of the working of labor markets. The concept…
Abstract
The modern concept of labor hoarding emerged in early 1960s, and soon became a standard part of mainstream economists’ explanation of the working of labor markets. The concept represents the convergence of three important elements: an empirical finding that labor productivity was procyclical; a framing of this finding as a “puzzle” or anomaly for the basic neoclassical theory of the firm, and a proposed resolution of the puzzle based on optimizing behavior of the firm in the presence of costs of hiring, firing, and training workers. This paper recounts the history of each of these elements, and how they were woven together into the labor hoarding concept. Each history involves people associated with various research traditions and motivated by an array of questions, many of which were unrelated to the questions that the modern labor hoarding concept was ultimately created to address.
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Arthur P. Preston and Gary Biddle
Proposes that there are fundamental differences between the roles ofprofessionals and managers which affect career choices in complexorganizations. Career choice difficulties are…
Abstract
Proposes that there are fundamental differences between the roles of professionals and managers which affect career choices in complex organizations. Career choice difficulties are compounded by the reality that only a very small percentage of individuals actually consciously plan their careers, the remainder often expecting organizations to manage their careers for them. Contends that most career programmes use only static processes and diagnostics, rather than a more dynamic action learning process. Reports the successful use of an action learning career programme with professionals. Contends that the power of the programme derived from the synergistic combination of traditional diagnostic approaches with an action learning phase, with the traditional inputs providing information which was synthesized and made relevant to career direction during the action learning phase.
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Gary Waller and Saeid Abbasian
The purpose of this study is to gain a deeper understanding on if and how hotel senior managers (HSMs) in four-star chain hotels in London and Stockholm implemented crisis…
Abstract
Purpose
The purpose of this study is to gain a deeper understanding on if and how hotel senior managers (HSMs) in four-star chain hotels in London and Stockholm implemented crisis management techniques (CMTs) as a response to the economic impacts of the COVID-19 pandemic in 2020.
Design/methodology/approach
Qualitative questionnaires were sent to 30 HSMs in London and Stockholm. From the feedback, this paper assesses, using thematic analysis, differences in CMTs used, past and present, alluding to COVID-19’s economic impacts on hotels.
Findings
Results determined that crises broadly economically impacted destinations similarly through loss of travellers and thus revenue. However, with a more intricate and specific assessment, destinations are impacted differently; thus, CMTs must alter. Findings show many CMTs can be implemented to reduce crises’ economic impacts. The literature review and empirical results allude to many previous and current CMTs, although these must be relevant and specific to the crisis, hotel and/or destination.
Practical implications
This paper has theoretical implications for academics on, among other things, theory building. Practically, it supports hotels in developing and determining CMTs to reduce the economic impacts of crises, to be better prepared when another pandemic emerges and contributes to the tourism and hospitality industry’s knowledge of management strategy within crises.
Originality/value
To the best of the authors’ knowledge, this is the first Swedish study focusing on post-COVID-19 crisis management in hotels in London and Stockholm.
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Gary Pan, Poh-Sun Seow, Venky Shankararaman and Kevin Koh
One of the main obstacles facing project-based learning (PBL) adoption relates to a lack of understanding by teachers and students in the roles they are required to play in the…
Abstract
Purpose
One of the main obstacles facing project-based learning (PBL) adoption relates to a lack of understanding by teachers and students in the roles they are required to play in the learning process. This study aims to address this obstacle, so as to better promote regular adoption of PBL pedagogy in educational institutions.
Design/methodology/approach
The strategy was to undertake an in-depth case study of PBL courses taught in UNI-X’s undergraduate curriculum. The case study approach is particularly appropriate for this exploratory study because it allows to capture the organizational dynamics of the phenomenon better and also its ability to explain the phenomenon based on interpretation of data.
Findings
This paper presents an empirical study on the role perspective of PBL in a collaborative project environment. By drawing upon a case study of UNI-X, the authors argue that a teacher plays the roles of a designer, champion, facilitator and manager in a PBL course. To ensure that learning is effective, students should play the roles of a self-directed learner and a warrior when completing their projects. It is clear that role ambiguity and role conflict could occur in PBL courses and might even impact the effectiveness of student learning.
Originality/value
For researchers, this paper contributes to the PBL literature by introducing a role perspective of PBL. This study identifies a list of roles a teacher and a student could potentially play in a PBL setting. Such understanding could serve as a reminder for a teacher and a student for the roles they need to play in achieving learning outcomes of a PBL course.