Guojin Chen, Aihuan Xu and Xiangqin Zhao
The aim of this paper is to empirically analyze the source of commonality in liquidity change in China's stock market.
Abstract
Purpose
The aim of this paper is to empirically analyze the source of commonality in liquidity change in China's stock market.
Design/methodology/approach
This paper used two‐step test method in Coughenour and Saad and empirically tested the relationship between institutional investors' involuntary trading behaviors and commonality in liquidity change in China's stock market.
Findings
The results showed that to take the open‐end fund as a representative of institutional investors, their involuntary trading behaviors were an important source of commonality in liquidity change in China's stock market.
Originality/value
For a long time, the domestic researchers have ignored the study about the source of commonality in liquidity change in China's stock market. But, this study's conclusion expanded the explanation about the source of commonality in liquidity change in China's stock market from a new point of view that the demand‐side explanation. Because there is no market‐maker trading behaviors in China's stock market, the paper cannot explain the source of commonality in liquidity change in China's stock market from the point of view of the supply‐side explanation.
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Jianjun Wang, Yizhong Ma and Guojin Su
The purpose of this paper is to propose a new method of robust parameter design for dynamic multi‐response system. The objectives are to resolve the correlations among multiple…
Abstract
Purpose
The purpose of this paper is to propose a new method of robust parameter design for dynamic multi‐response system. The objectives are to resolve the correlations among multiple responses and the uncertainty of system with incomplete information.
Design/methodology/approach
First, desirability function is used to measure dynamic system sensitivity and system variation, and principal component analyses on the two indices are conducted. Second, the grey relational grade (GRD) between principal component sequences of the two indices and their respective ideal sequences, gained by grey relational analysis, is converted to an integrated GRD (IGRD) index by means of TOPSIS method, and then the optimal level combination of controllable factors is identified based on the IGRD index.
Findings
It was found that the optimal factor level combination obtained by the proposed method is nearest the ideal solution and farthest from the negative ideal solution. The validity and superiority of the proposed method are confirmed through two illustrative examples.
Research limitations/implications
It should be noted that the proposed method fails to consider the interaction effects between controllable factors and noise factors.
Originality/value
The method proposed in the paper effectively integrates several common methods to optimize a dynamic multiple responses system based on Taguchi's robust parameter design. These methods do not involve complicated mathematical theory, and are therefore easy for practitioners to use in engineering practice.
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The ongoing debate about the effects of bonuses on managers’ performance and the role of reward systems in organizations has still not led to a unanimous conclusion among…
Abstract
Purpose
The ongoing debate about the effects of bonuses on managers’ performance and the role of reward systems in organizations has still not led to a unanimous conclusion among academics and practitioners. Those in favor of bonuses state that applying bonuses and putting emphasis on monetary rewards increases productivity and organizational performance, while those against bonuses claim that use of bonuses and monetary rewards leads to counterproductive results. A key question often overlooked in the discussion is: How important is handing out bonuses for an organization to become and stay successful for a longer period of time? This paper seeks to address these issues.
Design/methodology/approach
This paper describes the results of research into the characteristics of “high performance organizations” (HPOs) and the role of bonuses and reward systems in creating and maintaining HPOs.
Findings
The research results show that use of bonuses or implementation of certain types of reward systems have neither a positive nor a negative effect on organizational performance. This may be explained by the fact that reward systems are a hygiene factor for an organization. If an organization does not have an appropriate reward system (whether or not including bonuses), it will run into trouble with its employees and have difficulty improving its performance. If it does – a situation which employees expect and consider to be normal – it can start working on becoming an HPO.
Originality/value
The results of this study further the discussion about the role of bonuses.
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This paper aims to examine whether corporate social responsibility (CSR) is related to management sales forecast accuracy.
Abstract
Purpose
This paper aims to examine whether corporate social responsibility (CSR) is related to management sales forecast accuracy.
Design/methodology/approach
Use KLD measures of corporate responsibility combined with forecast accuracy regression model, including controls for management skills and expertise.
Findings
Socially responsible firms commit forecast errors of lower magnitude and sales forecast accuracy is positively related to the level of CSR.
Research limitations/implications
A strong motive for research on the field of CSR topic under the scope of reporting quality. Future research could focus on alternative measures of CSR; such as announcements included into the financial statements or separately disclosed expenses. Examine the magnitude of confirmed relation, among different economies worldwide.
Practical implications
CSR effect on manager sales forecasting activity, highlight the impact of brand awareness and customer loyalty, as created by implementing CSR strategies, on firm growth and sales expansion.
Social implications
The research enhances the era towards more socially responsible firms, presenting evidence of such an adoption on corporate fundamentals.
Originality/value
To the knowledge there is no prior research examining the implications of CSR on sales forecast accuracy.