Konstantinos P. Vergos, John Mylonakis and Apostolos G. Christopoulos
The purpose of this paper is to investigate the effect of macroeconomic factors in income growth, as defined by IS‐LM, and the relation between these factors and economic cycles…
Abstract
Purpose
The purpose of this paper is to investigate the effect of macroeconomic factors in income growth, as defined by IS‐LM, and the relation between these factors and economic cycles. More precisely, the paper aims to investigate how the demand and supply factors affect income growth, while the relation between these factors and economic cycles is also examined.
Design/methodology/approach
The sample under examination is the annual US data for 1928‐2007, using the official data as released in the US Bureau of Economic Analysis, while for the crises the used data have been provided by the National Bureau of Economic Research, Graduate Center of the City University of New York. The Business Cycles were examined, using the methodology developed by the National Bureau of Economic Research, Graduate Center of the City University of New York.
Findings
The research findings imply that government consumption expenditure growth is the most important factor that affects Gross Domestic Product growth positively. A change of 10 percent in Government consumption leads to 1.65 percent Gross Domestic Product growth. Also, the duration of crises is affected by lowering interest rates, while being also affected by government and personal consumption. Overall, the empirical findings of the study indicate that the role of private investments for Gross Domestic Product growth may be overrated among policy makers, given the low contribution of this factor to Gross Domestic Product growth.
Research limitations/implications
The model used has some limitations. First, it does not examine the effect of a policy over Gross Domestic Product growth in longer time‐spans. Second, it does not investigate factor inter‐reactions. It could also be argued that other factors that would stimulate growth or affect crisis are not accounted for, such as wars, tax policies, international trade and population growth. Finally, the model investigates only the US economy; therefore, it could be argued that the findings may not coincide with findings from other economies.
Originality/value
The paper contributes to the economics literature by adding a further insight into the possible mix of policy that could be followed by regulatory authorities and governments for both the boost of economy and the finalization of economic crises.
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Irene Kamenidou, John Mylonakis and Konstantina Nikolouli
The purpose of this study is to examine the reasons that Greek consumers purchase imported high fashion apparel over Greek designers high fashion apparel. The objective of the…
Abstract
Purpose
The purpose of this study is to examine the reasons that Greek consumers purchase imported high fashion apparel over Greek designers high fashion apparel. The objective of the research is to detect the underlying factors that affect their purchasing behaviour.
Design/methodology approach
Qualitative research was conducted through discussions with consumer focus groups, all purchasers of imported high fashion apparel. Quantitative research was undertaken by means of a questionnaire with 28 items referring to the reasons for purchasing imported high fashion apparel. The sample consisted of 200 high fashion consumers from the city of Larissa, Greece. Data analysis includes descriptive statistics, reliability, as well as factor analysis by principal component analysis with Varimax rotation.
Findings
Results indicate that the consumers perceive that the imported high fashion apparel have better aesthetics, a better line and are produced from quality textiles, compared to the domestic high fashion apparel. Four factors derived underpinned the purchasing reasons of imported high fashion apparel: “status and image”, “quality of the product”, “marketing reasons” and “in fashion”.
Research limitations/implications
This research was exploratory in nature and employed a non‐probability sampling method. Future research should be carried out to confirm the findings of the current study.
Practical implications
This study provides a useful source of information, which can be used by Greek high fashion apparel designers regarding the reasons why Greek customers of high fashion apparel purchase imported over domestic ones. This paper suggests which elements Greek designers of high fashion apparel should focus upon in order to gain a larger market share.
Originality/value
This study is important in terms that it is the first one to explore the reasons for purchasing imported high fashion apparel over domestic ones in Greece. It highlights 28 reasons (items) derived from qualitative research. In addition it suggests appropriate quality and marketing actions to be undertaken by Greek high fashion apparel designers.
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Pinelopi Athanasopoulou, Dora Kalogeropoulou and John Douvis
The purpose of this study is to identify the antecedents and dimensions of relationship quality (RQ) between customers and providers of athletic services.
Abstract
Purpose
The purpose of this study is to identify the antecedents and dimensions of relationship quality (RQ) between customers and providers of athletic services.
Design/methodology/approach
Data collection involved in‐depth, personal interviews of fitness centre customers and year‐ticket holders of football clubs in order to determine the similarities and differences between the two contexts. RQ is approached from the point of view of the customer since no other study has investigated that part of the dyad. Data were analysed with thematic content analysis.
Findings
In fitness clubs, RQ is perceived as a relationship that involves trust, customer satisfaction and commitment; social bonds with employees; effective cooperation and communication, and adaptation of services to suit customers’ needs. In contrast, the relationship of football club year‐ticket holders is simpler and is perceived as trusting; satisfying for customers and one where customers feel committed to the team. The antecedents of RQ identified do not differ between the two types of relationship studied and include the quality of the servicescape; the power of entertainment; the quality of personnel; customer experience and knowledge; customer relationship orientation; relationship duration, and circumstantial or personal factors such as free time shortage, family obligations or bad weather conditions. Based on these findings a conceptual framework is developed for analysing RQ and its antecedents in athletic services.
Research limitations/implications
The study extends findings regarding RQ in athletic services. However, it is qualitative in nature. Future research should quantify the constructs identified and test them in quantitative studies.
Practical implications
The implications of the study are wide and include appropriate methods of selecting and training staff; the effective management of service portfolios; customer training; providing an entertaining experience for customers, and designing a good quality servicescape.
Originality/value
The conceptual framework developed can serve as a guide for sport managers in enhancing the value of relationships with customers.
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Mohamed Ismail Mohamed Riyath, Narayanage Jayantha Dewasiri, Mohamed Abdul Majeed Mohamed Siraju, Athambawa Jahfer and Kiran Sood
Purpose: This study investigates internal/own shock in the domestic market and three external volatility spillovers from India, the UK, and the USA to the Sri Lanka stock market…
Abstract
Purpose: This study investigates internal/own shock in the domestic market and three external volatility spillovers from India, the UK, and the USA to the Sri Lanka stock market.
Need for the Study: The external market’s internal/own shocks and volatility spillovers influence portfolio choices in domestic stock market returns. Hence, it is required to investigate the internal shock in the domestic market and the external volatility spillovers from other countries.
Methodology: This study employs a quantitative method using ARMA(1,1)-GARCH(1,1) model. All Share Price Index (ASPI) is the proxy for the Colombo Stock Exchange (CSE) stock return. It uses daily time-series data from 1st April 2010 to 21st June 2023.
Findings: The findings revealed that internal/own and external shocks substantially impact the stock price volatility in CSE. Significant volatility clusters and persistence with extended memory in ASPI confirm internal/own shock in the market. Furthermore, CSE receives significant volatility shock from the USA, confirming external shock. This study’s findings highlight the importance of considering internal and external shocks in portfolio decision-making.
Practical Implications: Understanding the influence of internal shocks helps investors manage their portfolios and adapt to market volatility. Recognising significant volatility spillovers from external markets, especially the USA, informs diversification strategies. From a policy standpoint, the study emphasises the need for robust regulations and risk management measures to address shocks in domestic and global markets. This study adds value to the literature by assessing the sources of volatility shocks in the CSE, employing the ARMA-GARCH, a sophisticated econometrics model, to capture stock returns volatility, enhancing understanding of the CSE’s volatility dynamics.
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The purpose of this paper is to measure service productivity using the Service Enterprise Productivity in Action (SEPIA) model. The research operationalises only one of the five…
Abstract
Purpose
The purpose of this paper is to measure service productivity using the Service Enterprise Productivity in Action (SEPIA) model. The research operationalises only one of the five stakeholder groups, the customer interface which incorporates service complexity (SC), customer interactions, customer channel, customer loyalty (CL) (new) as inputs, and CL (referred and repeat) and willingness to pay as output measures.
Design/methodology/approach
The research extends our understanding of existing service productivity models with the development of the SEPIA model. Data were collected from 14 organisations operating in the Australian travel and tourism industry, which was analysed using a data envelopment analysis input oriented variable return to scale method as applied to the SEPIA model customer interface.
Findings
Four key findings from the research include: customer choice and their ability to pay is a determinant of service productivity; service productivity is a two stage process when measured; SC is not categorical; and quality business systems do impact service productivity.
Research limitations/implications
A limitation of this research is that only one (customer) of the five key stakeholders, customer, employee, manager, supplier and shareholder, was operationalised in this research paper.
Practical implications
The operationalisation of the SEPIA customer interface using transactional data and measuring non-financial, intangible factors of productivity provide managers with insights on what services to offer, when to invest in or promote the use of technology and whether to spend marketing effort on customer acquisition or customer retention.
Originality/value
The SEPIA model positions service firms within a social and service value network and provides a range of customer measures that extend the current capital (K), labour (L), energy (E), materials (M) and service (S), KLEMS measure of productivity and can be used to show the impact customers have on service productivity.
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Ahmed Hassan Ahmed, Mohamed Elmaghrabi, Bruce Burton and Theresa Dunne
The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the…
Abstract
Purpose
The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt.
Design/methodology/approach
The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens.
Findings
The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with great variations evident among the sampled companies in this regard. Such variations were chiefly dependent on the changing institutional actors over the two time frames. Additionally, the findings show that the time factor is particularly important for a given institutional field to induce a sufficient diffusion of corporate practices, especially in periods with drastic institutional change.
Practical implications
The evidence presented reflects the voluntary nature of CIR practices and the absence of a reinforced regulatory framework for organizing and monitoring such practices, with companies having discretion in terms of the amount and type of information disclosed via their websites. The results should, therefore, provide useful guidelines for regulators and standard-setters in identifying best practices, which, in turn, should allow CIR practices to become more consistent, making them easier to monitor and govern.
Originality/value
To the best of the authors’ knowledge, this is the first study that examines CIR practices at two points in time using a comprehensive disclosure index and a modern institutional theory lens.
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Ranjit Tiwari and Harish Kumar Singla
Being a developing nation with huge opportunity of growth prospects the assessment of valuation models becomes important to have a more realistic value estimate. The purpose of…
Abstract
Purpose
Being a developing nation with huge opportunity of growth prospects the assessment of valuation models becomes important to have a more realistic value estimate. The purpose of this paper is to empirically examine the comparative accuracy and explanatory performance of discounted cash flow (DCF) and residual income model (RIM) valuation models for the Indian chemical industry and come up with a composite valuation model.
Design/methodology/approach
To achieve the objective of the study the authors first determine the intrinsic values using both the models. Comparisons of the models are based on prediction errors and the explanatory performance of market value on value estimates. The study uses panel regression to forecast estimates of earnings and measure explanatory performance. The authors examine the ability of the value estimates to explain cross-sectional variation in the observed market values. The study also uses GMM method for deriving robust estimators. Variables for the study are collected from the CMIE’s prowess data base (release 4). The authors consider all 1,075 BSE listed chemical companies for the purpose of the study. The study uses annual data points starting from 31 March 2002 to 31 March 2011.
Findings
The comparative framework shows that both Residual Income model and Composite Valuation model are superior to Discounted cash flow model and are equally likely. But since composite value estimates considers all bonafide informations of individual models, the estimates of Composite Valuation model becomes more reliable.
Research limitations/implications
The study only compares and combines the two most widely used valuation models around the world. Future studies can be conducted using the third widely used valuation models, i.e. multiples and see the level of accuracy of individuals as well as the composite model.
Originality/value
As a concern very few research has been conducted in this area in India. This paper provides practitioners with a snapshot of the applicability of DCF and RIM valuation models. And also shows how a composite value estimate can improve accuracy.
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Ketan Mulchandani, Kalyani Mulchandani and Rekha Attri
The problem of differentiation and creating a unique selling proposition is higher in the banking sector, as, any new service or product introduced is very quickly imitated by the…
Abstract
Purpose
The problem of differentiation and creating a unique selling proposition is higher in the banking sector, as, any new service or product introduced is very quickly imitated by the competitors. The benefits of advertising have been seen to have long-term effects on the firm’s performance and debate is still on whether the expenses of advertising should be amortized or expensed immediately has been the area of concern for many years. The purpose of this paper is to carry out a comparative analysis of advertising effectiveness on private and public sector banks in India.
Design/methodology/approach
This study has included 33 listed commercial banks out of 41 listed on S&P BSE 500. Out of 33 banks, 14 banks belong to private sector and 19 banks are public sector banks. Data are extracted for a period of 14 years from 2004 to 2017 from Ace Equity. In total, there are 462 firm-year observations. Interest income, operating income and return on assets are the accounting measures considered in this paper. All the variables are deflated by total assets at the beginning of the period. To assess the effect of advertising on financial measures, distributed lag model is used.
Findings
The results of Koyck model suggest that it takes lesser time for private sector banks to see a significant change in interest income and return on assets with a change in advertising expenses whereas in case of operating income, the results achieved are opposite.
Originality/value
This study may be useful from accounting point of view to find out whether advertising creates long-term or short-term impact on financial measures. The study would help in determining the number of years for which advertising expenses can be amortized. With the help of these results, it can be said that advertisement expenses can be capitalized and then expensed over coming years. This means, to some extent advertisement has some long-run impact on financial measures considered in the study. In order to achieve more robust results, this study can be performed on different sectors.
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Maria Palazzo, Agostino Vollero and Alfonso Siano
Increased public scrutiny and stakeholder pressure have given more importance to strategic corporate social responsibility (SCSR) and its three dimensions – orientation, process…
Abstract
Purpose
Increased public scrutiny and stakeholder pressure have given more importance to strategic corporate social responsibility (SCSR) and its three dimensions – orientation, process and value creation. At the same time, they provide banks the inspiration needed to pursue business goals, attain positive performances and communicate their social responsibility efforts. This paper analyses whether and how companies in the banking sector use corporate websites to communicate SCSR dimensions.
Design/methodology/approach
A content analysis was performed based on the corporate websites of leading banks included in the Dow Jones Sustainability World Index and the Hang Seng Corporate Sustainability Index to assess the prominence of SCSR communication.
Findings
The study shows that banks give less prominence to SCSR on corporate websites differently from companies belonging to other sectors, as they are less likely to expose their orientation to SCSR and pay slightly less attention to value creation than other companies.
Practical implications
The paper provides theoretical insights into SCSR dimensions and how they are communicated on corporate websites. From a practical standpoint, the study provides guidance for managers in the banking sector aimed at improving their communication efforts, avoiding decoupling issues and adopting a consistent value creation perspective.
Originality/value
Few studies have used a value creation perspective to differentiate between the dimensions of a SCSR approach. The paper fills this gap by assessing the communication efforts adopted by banks and insurance companies in this area.
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Janet Davey, Lily Schneider and Howard Davey
The purpose of this paper is to examine the nature and extent of intellectual and marketing capital disclosure among fashion companies, specifically to compare intellectual…
Abstract
Purpose
The purpose of this paper is to examine the nature and extent of intellectual and marketing capital disclosure among fashion companies, specifically to compare intellectual capital (IC) disclosure between European and North American fashion companies as well as between fashion industry sectors.
Design/methodology/approach
A coding framework proposed by Guthrie and Petty and adapted by Shareef and Davey was further developed for the fashion context and the top 15 European companies and the top 15 North American companies with accessible 2005 annual reports were analysed.
Findings
The voluntary annual report disclosures confirmed brands as highly valuable capital assets, central to competitiveness and differentiation in this industry. Fashion firm disclosures also reflected organisational change processes and philosophies in several cases. However it is concluded that fashion companies do not value the role of the consumer in the brand value dynamic, customer satisfaction, nor customer loyalty as intellectual capital assets.
Research limitations/implications
The limitations include the subjectivity of the coding process and because many fashion houses remain in private ownership.
Practical implications
Many items of IC are marketing related, however the disclosure of marketing capital and the implications for value adding potential needs better understanding. Traditional accounting practices only partially recognise the value of an organisation's intellectual capital and therefore, the organisation's ability to generate wealth in the future is poorly represented.
Originality/value
The findings contribute to the IC disclosure literature in a fresh and unique way by analysing the fashion industry for the first time.