Chen Zheng (Jerry) and Henry Tsai
This study aims to empirically examine the relationship between industrial diversification and firm performance and the moderating effects exerted on that relationship by board…
Abstract
Purpose
This study aims to empirically examine the relationship between industrial diversification and firm performance and the moderating effects exerted on that relationship by board size and family representation on the board.
Design/methodology/approach
Secondary financial data were collected for hotel firms listed on the Hong Kong Stock Exchange during the period 2005-2016. Subsequently, a bivariate correlation and a fixed-effects panel regression analysis were performed on the data.
Findings
The empirical results showed that diversification positively influenced firm performance until firms reached an optimal level of diversification (0.34); beyond that level, the effect was negative. In addition, firms with a larger board tended to show better performance when the level of diversification increased from medium to high, and firms with lower family representation on the board tended to exhibit better performance when the level of diversification increased from low to medium.
Practical implications
Theoretical and managerial implications are suggested in terms of balancing the size of a firm’s board and with regard to family representation on a board from the perspectives of resource dependence theory (RDT) and socioemotional wealth (SEW), the diversification of hotel firms and future research.
Originality/value
A limited number of studies have considered diversification as a corporate-level strategy in the hospitality field and in the unique context in which a service-oriented economy is dominant, such as in Hong Kong. The role of board composition on the diversification–performance relation has rarely been investigated theoretically and empirically. Apart from providing managerial implications for corporate governance, this study also offers theoretical generalizability, from the perspectives of RDT and SEW, to examine the moderating roles of board size and family representation on the diversification–firm performance relation.
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This study examines the impact of the International Financial Reporting Standard (IFRS) 15 on revenue and earnings quality in China.
Abstract
Purpose
This study examines the impact of the International Financial Reporting Standard (IFRS) 15 on revenue and earnings quality in China.
Design/methodology/approach
This study employs a difference-in-differences design with a treatment group and a control group, both listed in stock exchanges in China from 2015 to 2019. Entropy balancing is employed to mitigate any imbalanced distribution effects caused by the inherent difference within our sample.
Findings
This study reveals an enhancement in the quality of revenue and earnings accruals after implementing IFRS 15 in China. However, adopters tend to engage in more real earnings management, and their revenue and earnings exhibit less persistence. Additional analysis shows that the new revenue standard substitutes for firm-level control factors in shaping the trade-off between accrual-based and real earnings management in jurisdictions with weak legal enforcement.
Research limitations/implications
This study focuses on the staggered implementation of IFRS 15 in the Chinese setting; hence, the findings of this study might not be generalised to other countries.
Practical implications
The findings of this study will be of interest to investors, given its focus on the revenue and earnings quality of companies that have adopted IFRS 15. Additionally, it holds implications for standard-setting organisations, particularly regarding post-implementation reviews, to comprehend how managers adjust their earnings management strategies in response to the enactment of IFRS 15.
Originality/value
To the best of our knowledge, our study is one of the few to investigate the impact of mandatory adoption of new IFRS standards within jurisdictions using a difference-in-differences design. In addition, we provide evidence that the new revenue standards substitute for firm-level control factors in shaping the trade-off between accrual-based and real earnings management in jurisdictions with weak legal enforcement, addressing a gap in the literature.
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This study aims to investigate the equity market reaction to sustainability disclosure measures derived from firms' inaugural sustainability reports following the implementation…
Abstract
Purpose
This study aims to investigate the equity market reaction to sustainability disclosure measures derived from firms' inaugural sustainability reports following the implementation of mandatory sustainability reporting in Singapore.
Design/methodology/approach
This study explores the equity market reaction to first-time sustainability reports of mandatory adopters and compares the reactions between voluntary and mandatory adopters. To mitigate any imbalanced distribution effects, entropy balancing techniques are employed.
Findings
The author observes a significant equity market reaction when mandatory adopters adhere to a reporting framework and release sustainability reports as standalone documents. Additionally, the study indicates that government regulation amplifies the equity market reaction for companies that include a board statement within their sustainability reports and present them as standalone publications.
Research limitations/implications
The lack of quantitative information disclosed in the first-time sustainability reports may restrict the generalizability of the findings.
Practical implications
The findings provide valuable insights for organizations and managers to evaluate the market's response to sustainability disclosures and improve communication effectiveness with investors. Furthermore, the study has direct policy implications for global standard-setting organizations in sustainability reporting. The findings support the notion that investors value market-led and investor-focused sustainability disclosures.
Originality/value
The study contributes to the limited body of research that examines the capital market effects of mandatory sustainability disclosures. To the author’s knowledge, this is among a few studies to directly investigate the equity market reaction to mandatory sustainability disclosures at the firm level.
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Jialin Snow Wu, Shun Ye, Chen Jerry Zheng and Rob Law
To better understand how to retain hospitality customers in the fierce competition among mobile applications, this study aims to propose and empirically validates an integrative…
Abstract
Purpose
To better understand how to retain hospitality customers in the fierce competition among mobile applications, this study aims to propose and empirically validates an integrative framework, which elaborates how conscious and subconscious factors, together with affective factors, may induce app loyalty and how brand viscosity moderates such effects.
Design/methodology/approach
The authors conducted an online survey to collect data and received a total of 268 valid responses. This study splits the data into two groups (brand viscosity vs non-viscosity). Then, the authors performed a multi-group structural equation modeling with Chi-square difference tests to compare the model between the two groups.
Findings
The findings support the integrative model and reveal that the influence of app satisfaction on loyalty is stronger for app users who do not stick to one brand across the website and mobile app channels. Moreover, for those with brand viscosity, habit and switching cost are two significant determinants that exert positive effects in inducing app loyalty.
Research limitations/implications
Brand viscosity across different channels matters for the effects of habit and switching costs in shaping app loyalty. E-commerce managers should elaborate on brand management among various booking channels and establish effective digital marketing strategies to facilitate the formation of usage habits and switching costs and to enhance brand viscosity across channels.
Originality/value
This research advances the knowledge of app loyalty in hospitality by providing a comprehensive explanatory framework from affective, conscious and subconscious lenses. This research is among the first to unveil the impact of brand viscosity on the links between loyalty and its determinants.
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Alka Gupta, Jerry Chen and Vishal K. Gupta
Studies of entrepreneurial orientation tend to merge its three components‐proactiveness, risk-taking, and innovativeness‐into a monolithic construct and analyze its relationship…
Abstract
Studies of entrepreneurial orientation tend to merge its three components‐proactiveness, risk-taking, and innovativeness‐into a monolithic construct and analyze its relationship with firm outcomes at one point in time. This has resulted in knowledge voids related to the relative importance of the different components, their specific effect on value created by the firm, and their evolution over time. The present study links each component of entrepreneurial orientation to economic value creation using a longitudinal dataset. Results provide support for hypothesized relationships. Implications and avenues for future research are discussed.
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This paper seeks to provide the international reader with an insight into the mind of the young consumer from Singapore, one of the vibrant hubs of youth consumerism in Asia. This…
Abstract
This paper seeks to provide the international reader with an insight into the mind of the young consumer from Singapore, one of the vibrant hubs of youth consumerism in Asia. This paper combines observations derived, informal interviews with peers as well as self experience of the writer who is both a young marketer and a young consumer who is involved in the youth volunteerism circles as well. During the course of writing the paper, insights such as the rise of the coffeehouse culture, being spaces, extended family syndromes were observed, as well as viewpoints on the insipid marketing by fast food giants in the country from a young consumer’s perspective was discussed. This insight will provide a sound platform for in depth qualitative and quantitative research in the future. The value of this paper is it’s varied perspectives and observations derived uniquely from the authors’ personal involvement in these fields of interest.
Jerry C. Ho, Ting-Hsuan Chen and Jia-Jin Wu
The authors investigate the association of the constructed corporate social responsibility (CSR) measures with the banks’ profitability, social contributions and CSR spending as…
Abstract
Purpose
The authors investigate the association of the constructed corporate social responsibility (CSR) measures with the banks’ profitability, social contributions and CSR spending as well as the market reaction to CSR spending.
Design/methodology/approach
Using textual analysis of the CSR reports of banks listed on the Chinese market, the authors construct CSR measures in six domains: business, environment, human rights, corporate governance, charity and social capital. Our textual-based CSR measures contain substantial and valuable information beyond what Rankins CSR ratings offer.
Findings
The findings suggest that banks with stronger engagements and interests in the business-related CSR domain experience higher profitability, while those that are more committed to the corporate governance and charity-related domains create larger social contributions. Banks tend to incur higher CSR spending when they are more active in corporate governance. Although the stock market reacts positively to CSR expenditures, the reaction is less favorable for banks with CSR expenditures above the industry norm.
Practical implications
This study offers insights to policymakers of the regulatory bodies and the banks in China. To enhance the financial safety and soundness of the banking system, the regulatory bodies should encourage banks to strategically allocate corporate resources to achieve higher CSR ratings and engage more business-related CSR activities. To create larger social values, bank management should invest more in philanthropic CSR initiatives such as corporate governance and charity activities. To pursue higher corporate profits, they should engage more in self-centered business-related CSR activities. However, according to the reaction of the market, they should not over-invest in CSR activities.
Originality/value
While the use of textual analysis to evaluate CSR disclosure has recently emerged in the literature, few studies focus on banks in China. Using the term frequency–inverse data frequency (TF-IDF) method, the authors constructed a score for each of the six CSR domains: business (BUS), environment (ENV), human rights (HR), corporate governance (GOV), charity (CHY) and social capital (SCAP). To the best of our knowledge, no studies have adopted the textual approach to evaluate social reporting quality and CSR activities in the context of the banking industry in China.
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Barry Barnes, John H. Humphreys, Jennifer D. Oyler, Stephanie S. Pane Haden and Milorad M. Novicevic
Although communal forms of leadership are being called for to provide contemporary organizations with more responsive leadership platforms, the paper can find no compelling…
Abstract
Purpose
Although communal forms of leadership are being called for to provide contemporary organizations with more responsive leadership platforms, the paper can find no compelling description as to how such leadership might develop in a world of hierarchy. The purpose of this paper is to fill this void.
Design/methodology/approach
Attempting to comprehend the sharing of leadership will require contemplation of unconventional approaches in opposition to the dominant logic associated with conventional organizational leadership. One current example of such unorthodox deliberation is the emerging awareness of the Grateful Dead's influence on business management and leadership. Accordingly, the paper examined and interpreted the experiences and expressed beliefs of Jerry Garcia of the Grateful Dead to offer a conceptualization of how shared leadership could emerge in traditional organizational settings.
Findings
The analysis indicates that Jerry Garcia exhibited aspects of transformational leadership, servant leadership, and authentic leadership that allowed him to influence the environment needed for the emergence of shared leadership.
Research limitations/implications
As a single case study, the primary limitation is one of generalizability. The paper accepts the trade-off, however, due to the significant conceptual insights available with a case methodology.
Practical implications
Without greater understanding of how shared leadership might unfold practitioners will assume the construct of shared leadership is laudable but naïve. The paper must begin developing plausible conceptualizations if the notion of sharing leadership is to be taken more seriously in organizations.
Originality/value
The paper offers a counterintuitive, counterculture conceptualization of how shared leadership could emerge and flourish in traditional hierarchical settings.
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Haley Paluzzi, Haozhe Chen, Michael Howe, Patricia J. Daugherty and Travis Tokar
This paper aims to introduce the concept of consumer impatience, empirically explore how it relates to time-based logistics performance (delivery speed and delivery timeliness…
Abstract
Purpose
This paper aims to introduce the concept of consumer impatience, empirically explore how it relates to time-based logistics performance (delivery speed and delivery timeliness) and discuss its impact on consumer satisfaction. This research argues that gaining insights related to delivery performance from a consumer’s perspective can help the development of more effective time-based logistics strategies for e-commerce home deliveries.
Design/methodology/approach
Hypotheses in this study are developed using attribution theory and tested with empirical data collected through an online behavioral consumer experiment. Middle-range theorizing is used to develop an understanding of the mechanisms that impact the relationship between time-based logistics performance and consumer satisfaction.
Findings
Findings indicate that consumer impatience with delivery speed and delivery timeliness play an essential role in the relationship between time-based delivery performance and consumer satisfaction. Issues with delivery timeliness are shown to have a more negative impact on consumer satisfaction than issues with delivery speed, while delivery communication is demonstrated to have a positive relationship with consumer satisfaction.
Originality/value
This empirical study adds to existing time-based competition literature by taking a consumer-centric perspective and bringing a largely overlooked but critical concept – consumer impatience – into the logistics and supply chain management setting. Middle-range theorizing allows for a conceptualized understanding of consumers’ delivery experiences that can help companies develop proactive actions in their time-based competition initiatives.
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Jerry Chati Tasantab, Thayaparan Gajendran, Toinpre Owi and Emmanuel Raju
Conventional lecture-based educational approaches alone might not be able to portray the complexity of disaster risk management practice and its real-life dynamics. One…
Abstract
Purpose
Conventional lecture-based educational approaches alone might not be able to portray the complexity of disaster risk management practice and its real-life dynamics. One work-integrated learning practice that can give students practical work-related experiences is simulation-based learning. However, there is a limited discourse on simulation-based learning in disaster risk management education at the tertiary level. As tertiary education plays a crucial role in developing capabilities within the workforce, simulation-based learning can evoke or replicate substantial aspects of the real world in a fully interactive fashion. This paper aims to present outcomes of simulation-based learning sessions the authors designed and delivered in a disaster risk management course.
Design/methodology/approach
The authors developed a framework to illustrate simulation-based learning in a disaster risk management programme. It was then used as a guide to design and execute simulation-based learning sessions. An autoethnographic methodology was then applied to reflectively narrate the experiences and feelings during the design and execution of the simulations.
Findings
The evaluation of the simulation sessions showed that participants were able to apply their knowledge and demonstrate the skills required to make critical decisions in disaster risk reduction. The conclusion from the simulation-based learning sessions is that making simulation-based learning a part of the pedagogy of disaster risk management education enables students to gain practical experience, deliberate ethical tensions and practical dilemmas and develop the ability to work with multiple perspectives.
Originality/value
The simulated workplace experience allowed students to experience decision-making as disaster risk management professionals, allowing them to integrate theory with practice.