Doina C. Chichernea, Anthony D. Holder and Jie (Diana) Wei
The purpose of this paper is to investigate the connection between the accrual quality and the growth/value characteristics (and their return premia) at firm level.
Abstract
Purpose
The purpose of this paper is to investigate the connection between the accrual quality and the growth/value characteristics (and their return premia) at firm level.
Design/methodology/approach
The paper employs a battery of univariate and multivariate cross‐sectional tests. Fama‐MacBeth regressions with main effects and interaction effects are used to identify the relation between accrual quality, book‐to‐market and returns. The analysis is conducted on the overall sample, as well as after conditioning on up and down markets.
Findings
Value (growth) stocks are more likely to be associated with high (low) accrual quality. Value stocks earn higher returns mainly in down markets, while poor accrual quality firms have significantly higher returns during up markets, but significantly lower returns during down markets. There is a significant interaction effect between accrual quality and the value premium, which only exhibits in the down markets (i.e. stocks with poor accrual quality earn a higher value premium in down markets than stocks with good accrual quality).
Originality/value
Results in this paper help disentangle between various explanations proposed for the accrual quality premium and the value premium. These findings are consistent with the idea that the same underlying risk factor generating the value premium also generates the cross‐sectional variation in accrual quality responsible for the accrual quality premium. From the corporate managers' perspective, the results imply that value firms can mitigate their higher costs of capital by providing high quality of accounting information. From an analyst's perspective, the study suggests that considering both accrual quality and growth characteristics can help make better portfolio allocation decisions than when these are considered separately.
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Mauricio Losada-Otálora, Diana Escandón-Barbosa, Jairo Salas-Páramo and Nathalie Peña-García
The purpose of this paper is answering two research questions: What are the trajectories of persistence in exporting followed by different groups of firms? What factors relate to…
Abstract
Purpose
The purpose of this paper is answering two research questions: What are the trajectories of persistence in exporting followed by different groups of firms? What factors relate to each trajectory of persistence in exporting? The authors propose and test a framework that links operational and marketing firms’ capabilities to different trajectories of persistence in exporting.
Design/methodology/approach
Using a dataset of 2,913 firms over 14 years from the annual manufacturing survey in Colombia (AMS), the authors explored the trajectories of persistence in exporting. The authors applied data envelopment analysis to measure operational and marketing capabilities and group-based trajectory modeling to discover and link such trajectories to firms’ capabilities.
Findings
The authors identified four trajectories of persistence in exporting. Also, the authors found that while the interplay between marketing and operational capabilities relates positively to the non-exporting trajectory and negatively to the persistent trajectory, operational capabilities relate positively to the erratic trajectory and negatively to the slow growth trajectory of persistence in exporting. Meanwhile, marketing capabilities do not relate to any trajectory.
Research limitations/implications
Policymakers should help firms develop marketing and operational capabilities to compete globally to motivate them to export and persist in exporting. Policymakers should avoid stimulating firms to reinforce learned and familiar capabilities that cannot leverage desirable trajectories of persistence in exporting.
Originality/value
The authors introduce the trajectories of persistence in exporting, providing a fresh perspective for analyzing exporting behavior over time. The authors have also proposed and tested a unique framework that links operational and marketing firms’ capabilities to these trajectories, thus contributing to the existing body of knowledge on exporting behavior by firms from emerging markets.
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Hui Jin and Zheng Wang
To reveal the effective ways for leaders to motivate employees' innovative behaviour in complex environmental situations, the leadership rapport orientation is subdivided into two…
Abstract
Purpose
To reveal the effective ways for leaders to motivate employees' innovative behaviour in complex environmental situations, the leadership rapport orientation is subdivided into two types of values-based/instrumental rapport orientation. The mechanism of supervisor developmental feedback in mediating between leadership rapport orientation and employees' innovative behaviour and the moderating effect of ambidextrous environments is explored. This paper aims to discuss the aforementioned objective.
Design/methodology/approach
Leadership rapport orientation is divided into value-based and instrumental rapport orientation to reveal effective ways for leaders to motivate employees' innovative behaviour in complex environmental situations.
Findings
The results show that the values-based (instrumental) rapport orientation of leaders impacts employees' innovative behaviour positively (negatively).
Originality/value
Leaders' values-based/instrumental rapport orientation indirectly influences employees' innovative behaviour through supervisor developmental feedback, which positively moderates the relationship between the values-based or instrumental rapport orientation of leaders and employees' innovative behaviour and further moderates the partially mediating role of supervisor developmental feedback between leaders' values-based/instrumental rapport orientation and employees' innovative behaviour.