This paper aims to examine the association between earnings quality and firm-specific return volatility for a large sample of Japanese manufacturing firms.
Abstract
Purpose
This paper aims to examine the association between earnings quality and firm-specific return volatility for a large sample of Japanese manufacturing firms.
Design/methodology/approach
This archival research uses idiosyncratic volatility and asynchronicity as two analogous proxies for firm-specific return volatility to investigate its association with earnings quality.
Findings
Using idiosyncratic volatility and asynchronicity as two comparable proxies for firm-specific return volatility, the author finds contradictory results. The author relates this contradiction to another debate in accounting and finance literature about whether firm-specific return volatility captures firm-specific information or noise. Initially, the author obtains conflicting results because the systematic risk, one of the components of asynchronicity, is highly correlated with earnings quality. After controlling for the systematic risk, the author finds that higher earnings quality is associated with lower firm-specific return volatility. This finding is consistent with the noise-based explanation of firm-specific return volatility. The author also separates earnings quality into an innate component driven by economic fundamentals and a discretionary component driven by managerial discretionary behavior and finds that both components have significant impact on firm-specific return volatility but the innate component has significantly stronger effect than the discretionary component.
Originality/value
This is the first research study presenting evidence on the association between earnings quality and firm-specific return volatility in the Japanese setting. The findings of this paper are likely to contribute to the resolution of a well-known debate on whether firm-specific return volatility captures more firm-specific information being impounded in stock prices or noise in stock prices.
Details
Keywords
Bishnu Kumar Adhikary, Ranjan Kumar Mitra and Mohammad Rajon Meah
This study aims to investigate the earnings management practices of the listed manufacturing firms in Bangladesh and assess the impact of corporate governance mechanisms on such…
Abstract
Purpose
This study aims to investigate the earnings management practices of the listed manufacturing firms in Bangladesh and assess the impact of corporate governance mechanisms on such earnings management behavior.
Design/methodology/approach
The study applies the real earnings management (REM) model developed by Dechow et al. (1998) and implemented by Roychowdhury (2006) and modified Jones model (1991) for the proxy of accrual-based earnings management (AEM). It uses a pooled ordinary least square regression model corrected with robust standard errors for empirical analysis.
Findings
The study finds that firms with small positive earnings per share are engaged in AEM to avoid losses. Also, firm managers craft discretionary expenses to manage real earnings. For governance factors, the institutional shareholders tend to play a significant role in limiting both REM and AEM embedded in generally accepted accounting principles or International Financial Reporting Standards. Also, factors such as foreign ownership and board size significantly restrict REM, whereas director ownership encourages the same. The paper does not reveal any significant monitoring role for other governance factors in curbing either REM or AEM practices by Bangladeshi firms.
Research limitations/implications
The paper studies the monitoring role of governance mechanisms on listed manufacturing firms’ earnings management. A study of separating the listed firms into family and non-family ones could be interesting for future research.
Practical implications
The paper unveils earning management techniques used by firms in Bangladesh and provides critical policy implications to the corporate governance mechanisms that effectively limit earnings management practice.
Social implications
The social significance is to aware constituents of financial reporting about the earnings management behavior by firms in emerging economies.
Originality/value
The study adds to evidence that the manufacturing firms in Bangladesh adopt both REM and AEM techniques to avoid losses. Simultaneously, the paper highlights some critical governance factors that can restrict misleading earnings management behavior by firms in an emerging economy to assist in policymaking.
Details
Keywords
Prachi Mishra and Deb Kusum Das
This paper aims to examine the relationship between trade liberalization and wages in India.
Abstract
Purpose
This paper aims to examine the relationship between trade liberalization and wages in India.
Design/methodology/approach
This paper uses an empirical approach based on the “mandated wage equations”.
Findings
The main result in the paper is that trade reforms have been associated with a rise in the relative wages of medium‐skilled workers (defined as having completed secondary schooling). The authors do not find any evidence for trade reforms to be associated with an increase or decrease in wage inequality between low and high‐skilled workers. The results are consistent with the predictions of the Stolper‐Samuelson theorem.
Originality/value
The main contribution of this paper is to add to the debate on trade reforms and inequality in India by focusing on the variation in skill categories.
Details
Keywords
Bita Afsharinia and Anjula Gurtoo
The COVID-19 pandemic, starting in early 2020, has significantly compromised global commitment to the 2030 Agenda for Sustainable Development Goals, notably affecting areas like…
Abstract
The COVID-19 pandemic, starting in early 2020, has significantly compromised global commitment to the 2030 Agenda for Sustainable Development Goals, notably affecting areas like food security (SDG 2) and the economy (SDG 8). Informal economy platform employees have been among the most impacted. In India alone, 7.7 million workers in the informal economy have suffered, with nearly 90% of unskilled and semi-skilled workers experiencing income loss. The widespread income loss among a significant portion of the workforce has led to disruptions in demand and supply mechanisms, thereby worsening food insecurity. This study investigates the determinants of the food consumption score (FCS) to serve as an indicator of food security within informal-economy households. A longitudinal survey of 2,830 unskilled and semi-skilled employees, including drivers, domestic workers, delivery personnel, beauticians, street vendors, small business owners, and self-employed individuals, was conducted. The findings show a significant shift towards borderline household FCS during the pandemic, with a sharp decline in daily consumption of dairy products and non-vegetarian items, indicating reduced protein intake. Consuming two or fewer meals per day increases the likelihood of poor FCS, highlighting the need for systematic interventions to ensure three regular meals per day. Moreover, insufficient government support for adequate food intake in informal economy households calls for redesigned assistance programs. Policymakers should prioritize practical solutions, such as community-based food distribution centers and mobile food vans, to ensure the delivery of nutritious food to vulnerable populations in Bangalore.
Details
Keywords
Naveen Donthu, Satish Kumar, Chatura Ranaweera, Debidutta Pattnaik and Anders Gustafsson
Journal of services marketing (JSM) is a leading journal that has published cutting-edge research in services marketing over the past 34 years. The main objective of this paper is…
Abstract
Purpose
Journal of services marketing (JSM) is a leading journal that has published cutting-edge research in services marketing over the past 34 years. The main objective of this paper is to provide a retrospective of the thematic structure of papers published in JSM over its publication history.
Design/methodology/approach
This study uses bibliometric methods to present a retrospective overview of JSM themes between 1987 and 2019. Using keywords co-occurrence analysis, this paper unveils the thematic structure of JSM’s most prolific themes. Bibliographic coupling analysis uncovers the research trends of the journal.
Findings
Leading authors, leading institutions, authors’ affiliated countries and critically, the dominant themes of JSM are identified. As its founding, JSM has published approximately 40 papers each year, with 2019 being its most productive year. On average, lead JSM authors to collaborate with 1.30 others. Keywords co-occurrence analysis identifies nine prominent thematic clusters, namely, “marketing to service”, “quality, satisfaction and delivery systems”, “service industries”, “relationship marketing”, “service failure, complaining and recovery”, “service dominant logic”, “technology, innovation and design”, “wellbeing” and “service encounters”. Bibliographic coupling analysis groups JSM papers into four clusters, namely, “brand & customer engagement behaviour”, “service co-creation”, “service encounters & service recovery” and “social networking”.
Research limitations/implications
This study is the first to analyse the thematic structure of JSM themes over its history. The themes are analysed across time periods and then compared to dominant themes identified in contemporary service research agendas. Recommendations are made based on the gaps found. This retrospective review will be useful to numerous key stakeholders including the editorial board and both existing and aspiring JSM contributors. The selection of literature is confined to Scopus.
Originality/value
JSM’s retrospection is likely to attract readership to the journal. The study’s recommendations regarding which areas have matured and which are still ripe for future contributions will offer useful guidelines for all stakeholders.
Details
Keywords
The purpose of this paper is to benchmarking the governance performance of Indian states.
Abstract
Purpose
The purpose of this paper is to benchmarking the governance performance of Indian states.
Design/methodology/approach
This paper provides a framework to measure governance performance at the state level. Using the data on 28 key indicators, the authors evaluate Indian states on seven broad dimensions of governance quality covering several aspects of public service delivery, regulatory quality and law and order. The empirical methodology involves the application of multi-criteria decision making techniques in two steps. The authors, first develop suitable weights of the identified dimensions and criteria under each dimension by applying the inputs of an expert-based decision-panel in a best-worst framework. Next, using these weights, the authors evaluate ranking of each state using TOPSIS and PROMETHEE-II methods.
Findings
The results indicate wide disparities in the governance performance of Indian states. Based on different indicators, the paper evaluates the rank of all the major Indian states. Results reveal that “Social Service Delivery(S)” is the most influencing dimension for the development of a state. Overall, the authors find Andra Pradesh, NCT of Delhi and Goa to be the leading states in terms of governance quality.
Research limitations/implications
The paper provides policy makers with easy to use operational indicators to analyse the governance performance of Indian states. These would help in better monitoring of these states through competitive goal-setting for continuous improvement.
Originality/value
To the best of the authors’ knowledge, this study is the first formal assessment of governance quality in the Indian states in a multi-criteria framework. To this end, the paper addresses the issue of wide regional disparities in the country. The findings of the paper provide powerful insights to policy makers in setting up appropriate strategies to eliminate these disparities.
Details
Keywords
The chapter discusses how adolescents are moving beyond the dichotomy of biological and linguistic socialization, forming interpretive meanings at home through the reading of…
Abstract
The chapter discusses how adolescents are moving beyond the dichotomy of biological and linguistic socialization, forming interpretive meanings at home through the reading of literature in their mother tongue, Bengali. Involving cultural relevance and non-vulnerability, the chapter conceptualizes “leisure activities” and “leisure pursuits” of reading practice of the IXth and Xth graders from both Bengali and English medium schools in Kolkata. The discussion from the theoretical construction mentions the further conceptualization of reading habits and language choice. This is where adolescents derive their agency. Adolescents from the Indian and especially from the Bengali perspective have a path of colonial discourse. From historical standpoint, the change in Bengali language and its grammar structure has influenced the acceptance of Bengali literature among adolescents in varying degrees through generations. Using mixed methods and content analysis, the chapter focuses on young teenagers’ narration on the way they maneuver curriculum and literature in their respective homes. Authors, for example, Sunil Gangopadhyay, Satyajit Ray, and Bibhutibhushan Bandyopadhyay, form the Bengali identity construction in the present time. Rabindranath Tagore’s, Sarat Chandra Chattopadhyay’s and Bankim Chandra Chatterjee’s works are always prevalent in the Bengali language syllabus. These are considered the foundational modern literary figures of pre-independent India. These are taught from a nationalist and gender discourse perspective. The adolescents in this chapter also read those at a minimum level at home and attempt to juggle the difficult vocabulary involved. The simple language of post-independent literature is much sought after by teenagers compared to pre-independent literature. Sunil Gangopadhyay’s Kakababu series, Satyajit Ray’s Feluda and Professor Shanku series, and Bibhutibhushan Bandopadhyay’s Chander Pahar stand out among the adolescents from both English and Bengali medium unanimously in this chapter.
Details
Keywords
Shankar Chakraborty, Rajeev Ranjan and Poulomi Mondal
A road network provides arterial arrangement to facilitate business, transport, social integration and economic progress of any nation. During the last seven decades after…
Abstract
Purpose
A road network provides arterial arrangement to facilitate business, transport, social integration and economic progress of any nation. During the last seven decades after independence, road transport infrastructure in India has expanded manifold, both in terms of spread (total length and density of road) and capacity (number of on-road registered vehicles, and volume of passenger and freight traffic handled). But, with the enrichment of road transport network in India, the number of traffic accidents and total cost for maintaining the road infrastructure also keeps on increasing. It becomes necessary to evaluate state-wise performance of the Indian roads using some mathematical tools. The paper aims to discuss this issue.
Design/methodology/approach
In this paper, using preference ranking organization method for enrichment of evaluations (PROMETHEE) and geometrical analysis for interactive aid (GAIA) approaches, an attempt is made to appraise the state-wise performance of Indian roads based on 12 critically important criteria. A geographic information system method and a hue-saturation-value color coding scheme are also employed to identify the influence of individual criterion on the overall rank of 29 Indian states.
Findings
It is observed that amongst all the considered states, the road conditions in the states of Mizoram and Arunachal Pradesh are really satisfactory, whereas Bihar and Uttar Pradesh are the lagging states requiring governmental intervention and support to enhance their road network infrastructure.
Practical implications
This analysis would help the decision makers to identify the strengths and deficiencies of each Indian state with respect to its road conditions so that proper promotional and growth actions can be implemented.
Originality/value
From the review of the existing literature, it is quite evident that till date, no research work has been conducted in order to evaluate the performance of roads, and their conditions and characteristic features in the Indian context. In this paper, the state-wise performance of the Indian roads is appraised based on several identified parameters using a combined PROMETHEE-GAIA approach.
Details
Keywords
André de Waal and Jeroen de Haas
The purpose of this paper is to evaluate a previously developed framework for creating so-called high performance partnerships (HPPs), which yields a competitive advantage for all…
Abstract
Purpose
The purpose of this paper is to evaluate a previously developed framework for creating so-called high performance partnerships (HPPs), which yields a competitive advantage for all firms in the partnership, in the Asian context.
Design/methodology/approach
The HPP framework is evaluated for a Philippine organization that produces, markets and ships bananas in Asia. The evaluation entailed conducting a questionnaire, statistically redeveloping the framework and organizing several feedback workshops with the partner firms, the latter aiming to discuss and agree to improvements that each partner could implement to achieve high performance in the value chain.
Findings
The results showed that the evaluated HPP framework can be used to score the quality of each partner in the chain and to yield targeted recommendations to improve the performance of each partner firm. The subsequent application of the recommendations derived from applying the HPP framework created substantial profits for the partner firms.
Originality/value
Originally developed in a western context and applied to a value chain of European organizations, the HPP framework was successfully applied for the first time in the Asian context, to evaluate the performance of an Asian value chain and identify areas for improvement of the Asian partner firms. As such, the results contribute both to the HPP literature, filling a gap therein, and to practice, as Asian organizations can use with confidence a framework which has been validated in their context.
Details
Keywords
Nusrat Akber and Kirtti Ranjan Paltasingh
This study examines whether the law of one price (LOP) or price convergence holds during the COVID-19 pandemic for essential food items in India.
Abstract
Purpose
This study examines whether the law of one price (LOP) or price convergence holds during the COVID-19 pandemic for essential food items in India.
Design/methodology/approach
The authors use the daily retail price data of 22 essential food items from 103 Indian markets for two years (2019 as pre-COVID and 2020 as COVID period). Pesaran's (2007) second-generation panel unit-root test has been used to examine the price convergence of essential food commodities across various markets of different zones in the pre-COVID and COVID periods.
Findings
The authors find a tendency toward the convergence of prices across the spatially segregated markets for essential products. But, during the COVID period, there is a weak or no convergence of prices for essential food items. Hence, the LOP does not hold during the pandemic, indicating massive price deviations for food items across Indian markets. This has severe implications for food security as enormous price increases in some markets have been evidenced during the pandemic.
Research limitations/implications
The study calls for immediate policy adoption to restore the disrupted supply chain of essential food items. Along with that, the public authority should strictly prohibit black marketing and unlawful hoarding of essential food items. In addition, farmers should be provided direct cash benefits for restoring their farming activities.
Originality/value
This paper is first study to examine that hypothesis of LOP in the context of COVID crisis.