Rama K. Jayanti and S.V. Jayanti
The purpose of this paper is to explore the influence of bankruptcies on the market share effects of rival firms in the airline industry.
Abstract
Purpose
The purpose of this paper is to explore the influence of bankruptcies on the market share effects of rival firms in the airline industry.
Design/methodology/approach
Employing event study methodology, the authors examine the impact of bankruptcies on major and minor airlines by analyzing four different types of events: filing for bankruptcy by major carriers; coming out of bankruptcy by major carriers; shutdown by major carriers; and filing of bankruptcy by minor carriers.
Findings
Empirical results indicate that filing for bankruptcy by major carriers and shutdown by major carriers resulted in positive abnormal returns around the announcement dates for rival firms, while coming out of bankruptcy by major carriers resulted in negative impact. As expected, the last type of events involving filing for bankruptcy by minor carriers resulted in insignificant abnormal returns.
Originality/value
The results point to the importance of systematically incorporating bankruptcies by competitive firms in estimating and forecasting market demand. The results provide a diagnostic tool to evaluate what kind of contingencies necessitate planning for unexpected spikes in market share.
Details
Keywords
Rama K. Jayanti, Mary K. McManamon and Thomas W. Whipple
Memory impairments in the elderly have been widely studied in the past. This study focuses on the effects of these memory impairments on the ability of mature consumers to respond…
Abstract
Memory impairments in the elderly have been widely studied in the past. This study focuses on the effects of these memory impairments on the ability of mature consumers to respond to brand attitude scales. An experimental study investigates the impact of age and type of measurement scale on responses to brand attitude scales. Groups of seniors within the elderly market (55‐65, 66‐75, and over 75) are investigated as opposed to contrasting two extreme points on the continuum, namely the elderly versus the young. Three commonly used attitude scales were manipulated to determine how age interacts with the form of scale to generate response bias. Three types of response bias; extremity response, acquiescence, and item non‐response were investigated. Results indicate a significant interaction between age and type of scale. Implications of these results for those involved in marketing to seniors are highlighted.
Details
Keywords
Stephen L. Vargo, Robert F. Lusch, Melissa Archpru Akaka and Yi He
Tanushree Sharma and Rama Krishna Mandan
The case pertains to entrepreneurship and the struggles of microentrepreneurs in raising adequate funds. It highlights the insufficiencies in implementation of government’s…
Abstract
The case pertains to entrepreneurship and the struggles of microentrepreneurs in raising adequate funds. It highlights the insufficiencies in implementation of government’s financing schemes for microenterprises. The case also throws light on the difficulties faced by microentrepreneurs in raising capital through banks and more so if the entrepreneur happens to be a woman. This case revolves around a young woman microentrepreneur, from a humble background, who is determined to expand her orthopaedic-support manufacturing unit. It brings out the enormous difficulties faced by her in obtaining an adequate financing through banks despite many laid out government policies to provide relief and stability to microenterprises. The ardent pursuit and the innovatively designed marketing strategy helped the entrepreneur achieve a reasonable success, in spite of the lack of capital. Her revenue for the financial year 2014–2015 rose to Rs. 9 lakhs/per annum. Her projected revenue for 2015–2016 was Rs. 24 lakhs. The ambitious target seemed difficult if additional funds were not forthcoming. With no help from the banks, the entrepreneur was in a dilemma where to raise the funds from. Her long-term plans for growth would be badly affected.
Details
Keywords
Partha Mohapatra, Dina F El-Mahdy and Li Xu
The purpose of this study is to develop a research agenda on internal controls for offshored accounting processes. It further develops a linkage between internal controls of…
Abstract
Purpose
The purpose of this study is to develop a research agenda on internal controls for offshored accounting processes. It further develops a linkage between internal controls of offshored accounting processes and auditing of the organization. Offshoring of accounting processes has become a common business practice, pursued by firms to reduce costs and focus on core competencies. However, our understanding about internal controls of these offshored processes is limited.
Design/methodology/approach
Grounded in theory that is supported by prior literature and interviews with practitioners, this paper attempts to develop a research agenda on internal controls for offshored accounting processes.
Findings
The main findings of our study suggest that while offshoring saves costs and allows the clients to focus on their core competencies, it also poses risks to the clients’ organizations. To mitigate these risks and comply with the regulatory requirements of the countries where the clients are located, clients and their offshore vendors need to effectively establish adequate internal controls for offshored business processes. Clients should seek those vendors who have appropriate processes in place and are willing to provide Service Organization Control (SOC) reports (or at least are capable of getting a SOC report in the near future). Moreover, clients should avoid offshoring the processes that would exist in defective internal control systems. Similarly, vendors should avoid undertaking those processes for which they are incapable of maintaining efficient internal controls.
Practical implications
Our study has implications for academicians as well as practitioners on understanding the determinants and consequences of internal control for offshored processes.
Originality/value
While internal controls for offshored accounting process and related regulatory changes have been increasingly important topics, little research has been devoted to explore their implications on accounting and auditing literature. We attempt to bridge this gap by synthesizing prior research on internal controls and auditing, and further developing a set of research questions for academic research. Our hope is to spur a new area of research that has not been explored before.