Hongyan Sheng, Taiwen Feng and Lunming Liu
According to sociotechnical systems theory, this study examines the configurational effects of modularity (product and process modularity), supply chain integration (information…
Abstract
Purpose
According to sociotechnical systems theory, this study examines the configurational effects of modularity (product and process modularity), supply chain integration (information, operational and relational integration) and the characteristics of customer need (customer need tacitness and diversity) on MCC and the impact of high MCC generated by different configurations on economic performance.
Design/methodology/approach
This study tests the model by combining fuzzy set qualitative comparative analysis (fsQCA) with propensity score matching methods based on data from 277 Chinese manufacturers.
Findings
The authors identify four equifinal configurations sufficient for high MCC and categorize them into three types: modularity + integration oriented, integration + customer need oriented, modularity + integration + customer need balance. The results further indicate that the high MCC triggered by three types of configuration affects economic performance in different ways.
Practical implications
The results deliver an important message to manufacturing enterprises that high MCC can be achieved through multiple equally-effective combinations. Moreover, managers should focus on the fit between multiple conditions and choose the appropriate pathway to enhance economic performance.
Originality/value
From a configurational perspective, these findings enrich the literature on enablers and performance outcomes of MCC by introducing an integrated model.
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Social bots are prevalent on social media. Malicious bots can severely distort the true voices of customers. This paper aims to examine social bots in the context of big data of…
Abstract
Purpose
Social bots are prevalent on social media. Malicious bots can severely distort the true voices of customers. This paper aims to examine social bots in the context of big data of user-generated content. In particular, the author investigates the scope of information distortion for 24 brands across seven industries. Furthermore, the author studies the mechanisms that make social bots viral. Last, approaches to detecting and preventing malicious bots are recommended.
Design/methodology/approach
A Twitter data set of 29 million tweets was collected. Latent Dirichlet allocation and word cloud were used to visualize unstructured big data of textual content. Sentiment analysis was used to automatically classify 29 million tweets. A fixed-effects model was run on the final panel data.
Findings
The findings demonstrate that social bots significantly distort brand-related information across all industries and among all brands under study. Moreover, Twitter social bots are significantly more effective at spreading word of mouth. In addition, social bots use volumes and emotions as major effective mechanisms to influence and manipulate the spread of information about brands. Finally, the bot detection approaches are effective at identifying bots.
Research limitations/implications
As brand companies use social networks to monitor brand reputation and engage customers, it is critical for them to distinguish true consumer opinions from fake ones which are artificially created by social bots.
Originality/value
This is the first big data examination of social bots in the context of brand-related user-generated content.
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Dawei Jin, Jianghui Liu, Liuling Liu and Desheng Yin
– The purpose of this paper is to investigate the quality of financial reporting by banks in China, and the profit hiding behavior of banks in particular.
Abstract
Purpose
The purpose of this paper is to investigate the quality of financial reporting by banks in China, and the profit hiding behavior of banks in particular.
Design/methodology/approach
Reported profit is compared with actual profit using multiple regression analysis. The identification strategy allows the authors to quantify the degree of profit hiding in banking institutions.
Findings
Profit hiding exists in the whole banking sector in China regardless of the ownership structure of individual banks, though joint-stock banks have higher degree of profit hiding. Banks that are more financially constrained hide more profit than those less constrained ones. The competition in the banking industry competition impacts the extent of profit hiding, with higher competition being associated with lower degree of profit hiding.
Research limitations/implications
This paper documents the prevailing behavior of profit hiding in Chinese banks. It raises issues regarding the conventional methods of measuring bank efficiencies using accounting information reported by banking institutions.
Originality/value
This paper empirically examines the profit hiding behavior of banks in a transitional country.
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Lei Liu, Shaohui Wu and Guoliang Cai
Product presentation plays a critical role in influencing consumers’ purchasing decisions in online shopping. The purpose of this study is to examine the effects of text-image…
Abstract
Purpose
Product presentation plays a critical role in influencing consumers’ purchasing decisions in online shopping. The purpose of this study is to examine the effects of text-image information on online product presentation pages on sales. This study also specifically explores the moderating role of celebrity endorsements in the relationship between text-image presentation information and sales.
Design/methodology/approach
This study is based on regression analysis using data sets from the largest online book retailer in China, Dangdang.com.
Findings
The results of this study show that there is an inverse U-shaped relationship between word count and book sales. Conversely, image quantity has a positive linear effect on book sales. Furthermore, celebrity endorsements moderate the relationship between word count and sales in two distinct ways. First, the positive effect of increasing word count from low to medium is enlarged by increasing the number of celebrity endorsers. Second, the turning point of the inverse-U relationship between word count and sales rank moves to the right as the number of endorsers increases.
Originality/value
To the best of the authors’ knowledge, this study is among the first to examine the effects of text-image quantity on sales across the full continuum. This study adds understanding on how information load might have distinct consequences on the processing performance of text and images. Furthermore, this study investigates how sales are impacted by the quantity of celebrity endorsers in relation to textual and pictorial information in online shopping contexts, extending our knowledge of the effectiveness of celebrity endorsements.
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This study aims to investigate the motivation of financial analysts issuing forecasts on weekends and the impact of such behavior on forecast accuracy and analysts’ careers.
Abstract
Purpose
This study aims to investigate the motivation of financial analysts issuing forecasts on weekends and the impact of such behavior on forecast accuracy and analysts’ careers.
Design/methodology/approach
Logistic regression and ordinary least squares models with Huber–White standard errors were used in this study.
Findings
This paper first documented the emerging trends of the weekend forecasts after 2000. Longitudinal data from 2002 to 2011 validated that analysts’ conscientious timing of information release in line with their workload and confidence level gives more accurate forecasts. Further, given the same accuracy, analysts exhibiting diffident behaviors (analysts who are predicted to work on weekdays but in fact work on weekends) are not fired or demoted by brokerage houses, but those exhibiting inactive behaviors (analysts who are predicted to work on weekends but did not do so) are more likely to be dismissed or demoted by brokerage houses, indicating that brokerage houses are aware of the negative effect of both behaviors, but treat them differently.
Research limitations/implications
Weekend versus weekday proxies for an analyst’s timing of information release consider only one of many timing options. Other timing proxies, the nature and the composition of the information release of analysts are not examined in this study.
Practical implications
For practitioners, the results indicate that depending on the alignment, capital market can predict analysts’ future forecast accuracy, and hence, respond accordingly. For example, in addition to analyst forecast level or change, investors could pay attention to when the information is released to the market and possible reasons behind the choice of timing. Investors can thus better assess the forecast accuracy of one specific forecast and respond with the right action. Furthermore, analysts can better project their own forecast accuracy and career potential by assessing to what extent their forecasts are released conscientiously.
Social implications
This study examines analysts’ forecast behavior, but generate some insights on linking the analysts and investors in the capital market.
Originality/value
This study is the author’s original work.
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Nan Hu, Rong Huang, Xu Li and Ling Liu
Existing literature in experimental accounting research suggests that accounting professionals and people with accounting backgrounds tend to have a lower level of moral reasoning…
Abstract
Purpose
Existing literature in experimental accounting research suggests that accounting professionals and people with accounting backgrounds tend to have a lower level of moral reasoning and ethical development. Motivated by these findings, this paper aims to examine whether chief executive officers (CEOs) with accounting backgrounds have an impact on firms’ earnings management behavior and the level of accounting conservatism.
Design/methodology/approach
The authors classify CEOs into those with and without accounting backgrounds using BoardEx data. Using discretionary accruals from several different models, they do not find that CEOs with accounting backgrounds are more likely to engage in income-increasing accruals. However, the authors find that CEOs with accounting backgrounds exhibit lower levels of conservatism, proxied by C-scores and T-scores (Basu, 1997). This finding suggests that CEOs with accounting backgrounds recognize bad news more quickly than good news, consistent with the accounting principle of “anticipating all losses but anticipating no gains”.
Findings
The authors show that firms whose CEOs have accounting backgrounds exhibit lower levels of accounting conservatism. However, these firms do not exhibit higher levels of income-increasing discretionary accruals. This study documents the impact of CEOs’ educational backgrounds on firms’ accounting choices and confirms prior findings in experimental accounting research using large sample archival data.
Originality/value
This paper is the first study that investigates the impact of CEOs’ accounting backgrounds on firms’ financial reporting policy. The findings may have some policy implications. If accounting backgrounds of CEOs can make a significant difference on firms’ behavior, it is reasonable to make CEOs accountable for the quality of financial reporting. This paper is one of the first to empirically test inferences drawn by experimental accounting research. There has been a gap between archival and experimental accounting studies. The authors propose that interesting research questions can be addressed by filling in such a gap.
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Wei Qiang Lim, Mutharasu Devarajan and Shanmugan Subramani
This paper aims to study the influence of the Cu-Al2O3 film-coated Cu substrate as a thermal interface material (TIM) on the thermal and optical behaviour of the light-emitting…
Abstract
Purpose
This paper aims to study the influence of the Cu-Al2O3 film-coated Cu substrate as a thermal interface material (TIM) on the thermal and optical behaviour of the light-emitting diode (LED) package and the annealing effect on the thermal and optical properties of the films.
Design/methodology/approach
A layer-stacking technique has been used to deposit the Cu-Al2O3 films by means of magnetron sputtering, and the annealing process was conducted on the synthesized films.
Findings
In this paper, it was found that the un-annealed Cu-Al2O3–coated Cu substrate exhibited low value of thermal resistance compared to the bare Cu substrate and to the results of previous works. Also the annealing effect does not have a significant impact on the changes of properties of the films.
Research limitations/implications
It is deduced that the increase of the Cu layer thickness can further improve the thermal properties of the deposited film, which can reduce the thermal resistance of the package in system-level analysis.
Practical implications
The paper suggested that the Cu-Al2O3–coated Cu substrate can be used as alternative TIM for the thermal management of the application of LEDs.
Originality value
In this paper, the Cu substrate has been used as the substrate for the Cu-Al2O3 films, as the Cu substrate has higher thermal conductivity compared to the Al substrate as shown in previous work.
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Ling Liu, Janek Ratnatunga and Lee J. Yao
This study aims to examine the effects of balanced scorecard (BSC) usage on performances in the context of four contingent variables in Singaporean manufacturing firms. The…
Abstract
Purpose
This study aims to examine the effects of balanced scorecard (BSC) usage on performances in the context of four contingent variables in Singaporean manufacturing firms. The results show that firms are more likely to adopt BSC if they are large in size, have products at an early product lifecycle (PLC) stage, operate in highly uncertain environments or adopt differentiation strategies. However, the adoption of BSC improves performance only in firms that are large or have products at an early PLC stage. The results suggest that contingent factors in which a firm operates can exert significant effects on the results of adopting BSC.
Design/methodology/approach
Survey data are collected, then the authors check data correlations, principle components analysis, run regression analysis and ANOVA.
Findings
BSC use is positively and significantly correlated with PLC stage, external environment and performance. Size and strategy are positively correlated with BSC usage, but are not statistically significant. Higher BSC use is found in large firms with products at an early PLC stage or operating in a highly uncertain environment. Companies with a cost leadership strategy are significantly associated with BSC use.
Research limitations/implications
This study has small sample size and uses survey research method. The measurements to capture all aspects of BSC usage are non-exhausting. Future research can use different methodologies, such as field studies, case studies and lab experiments, to examine other industries than manufacturing.
Practical implications
The authors results show the positive association between BSC use and certain firm characteristics. Firms with those characteristics should get insights about the benefit of using BSC and extract the maximum benefit from their investment on the BSC use and those firms which don’t have BSC in implication may think of implementing the BSC use.
Social implications
Firms’ contingent factors affect the value of adopting BSC. With the authors research result, firms will be aware of how to extract the most value out of BSC and improve the social wealth of the manufacturing industries.
Originality/value
The authors paper is the first paper to use survey method to examine the association between BSC and firms’ contingent factors in the Singaporean manufacturing firms setting.
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Nan Hu, Qian Hao, Ling Liu and Lee J. Yao (1958-2012)
– The purpose of this paper is to understand the impact of tenure on earnings management.
Abstract
Purpose
The purpose of this paper is to understand the impact of tenure on earnings management.
Design/methodology/approach
Analytical model; multivariate regression analysis.
Findings
The paper predicts that managers are conservative in managing earnings when they first start to take top managerial positions, and then become aggressive in the next few years. Once they reach the maximum level of earnings management, they will become conservative again and report earnings less aggressively. This inverted U-shaped relationship between tenure and earnings management is confirmed by the data from the Chinese stock market.
Research limitations/implications
It is based on China stock market data. Generalization of the research results to other countries is limited.
Practical implications
With the knowledge of when earnings management is more likely to occur, regulators can set up policies targeting firms and managers with certain characteristics, instead of requiring observances from all firms and managers. This limited scope can greatly reduce the costs of preventing and identifying earnings management, while effectively maintaining the quality of earnings in the meantime.
Social implications
This paper examines the earnings management behavior related to CEO tenure. It is hoped that the research results can improve the overall understanding of earnings management, then social wealth spent on preventing and identifying it could be reduced.
Originality/value
It is an original work.
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Jianhui Huang, Ling Liu and Ingrid C. Ulstad
– The purpose of this study is to investigate the cross-sectional associations between growth options and the peer pay–performance sensitivity of CEO compensation.
Abstract
Purpose
The purpose of this study is to investigate the cross-sectional associations between growth options and the peer pay–performance sensitivity of CEO compensation.
Design/methodology/approach
This study includes analytical analysis and multivariable regression analysis.
Findings
It is predicted in this study that there is a non-linear concave relation between peer pay–performance sensitivity and a firm’s growth options. Results based on the executive compensation data from ExecuComp are consistent with the hypothesis presented in this study.
Research limitations/implications
Future scholars need to consider the non-linear impact of growth options on peer pay–performance sensitivity when they conduct research related to CEO compensation by differentiating the company’s growth options to be at a low, medium and high level. In an industry, when a compensation committee decides on the peers for performance comparison purposes, the committee needs to make sure that the peer firms they select have similar operational environments, for example, they face similar growth options (e.g. low, medium or high) and idiosyncratic variances.
Practical implications
This study contributes to the managerial compensation literature by revealing the important role growth options, as well as idiosyncratic variances, play on peer pay–performance sensitivity. The results of this study have implications for both future researchers as well as industrial practitioners.
Social implications
It gives guidance on designing CEO compensation contracts.
Originality/value
This is an original work from the coauthors listed on this study.