Omar Habimana and Côme Nahimana
This study uses a descriptive casual design and survey random sampling from 115 observations from five-star, four-star and three-star hotels due to the fact that they provide…
Abstract
This study uses a descriptive casual design and survey random sampling from 115 observations from five-star, four-star and three-star hotels due to the fact that they provide employee staff feeding or complimentary service. The Pearson correlation and multiple regression were used to test the direct and mediating effects for linear relationships between income tax and financial performance. Tax on adjusted net income has a significant effect on net income and non-significant effect on return on asset (ROA). This means that the level of income tax paid by the hotels after reintegration of non-deductible charges including complimentary staff feeding and other allowances reduced their assets and turnover in general thus slowing reinvestment. The findings reveal that firm liquidity had a significant effect on ROA. This indicates that the income tax pay-out decreases hotels’ cash flow resulting on loan diversification leverage. Shareholders are therefore forgoing their shares for reinvestment in different businesses other than hotels. The findings also reveal a significant effect of firms’ age on income tax on hotels’ financial performance. Simply paying income taxes is not lowered by the hotels’ age thus endorsing the concept of paying tax when income is available and vice versa when there is no income. Since Rwanda promotes investment and doing business for the private sector, the tax base increases the tax collection amount instead of collecting a small amount on a few number of tax paying hotels. This commends the tax administration review and frequently harmonised the tax procedures to hospitality sector and is the key development of their financial performance, which had been used by the hotels of the developed countries like the USA and Europe. This will improve Rwanda’s competitiveness in hotel induction and sustain hospitality business investment with tax base for government. It was pragmatic that hotels may directly deduct all related expenses before income tax calculation while others assimilate them into other similar expenditures. There is no formal way for accounting these hotel expenses, whereas the category of staffs benefitting are mainly junior staffs who, in turn, are low-wage holders. This does not leave space for hotel owners to take out incentives therefore leaving out hotels’ darkness in their earnings returns and staff welfare. This chapter presented the directorial policy, philosophy and practices in tourism or hospitality (hotel) sector in Africa. It has become relevant for harmonisation of financial performance while including all life cycle practices of hotels like staff feeding or complimentary service. This chapter is classified as an empirical study.
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V. Macián, B. Tormos, J.M. Salavert and S. Ballester
The purpose of this paper is to develop a methodology for audit maintenance strategies and processes focused in urban transport fleets.
Abstract
Purpose
The purpose of this paper is to develop a methodology for audit maintenance strategies and processes focused in urban transport fleets.
Design/methodology/approach
In response to this purpose, the main objective is to identify the strengths and the weaknesses of the maintenance system in order to establish actions that minimize the weaknesses and maximise the strengths. To audit properly, a well‐structured methodology is required, in which analyses will be performed, from general to more specific plans and procedures.
Findings
It was found that the evaluation of other related aspects is also necessary. Aspects such as: facilities, personnel, computerised information systems and the accurate management of the information derived from the proper maintenance activities.
Practical implications
Using the methodology described in this paper will make it easier for the company to evaluate real maintenance performance and possible improvements.
Originality/value
By using this methodology, a detailed situation of the fleet's maintenance is illustrated, and consequently different operations can be taken into account to achieve the established improvement objectives
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Stefano Elia, Gezim Hoxha and Lucia Piscitello
This study aims at investigating the effect of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) on corporate financial performance (CFP) in firms…
Abstract
This study aims at investigating the effect of corporate social responsibility (CSR) and corporate social irresponsibility (CSI) on corporate financial performance (CFP) in firms headquartered in developed versus emerging countries. Drawing upon stakeholder and legitimacy perspectives, the authors argue that the CSR/CSI–CFP relationship differs depending on the home-countries’ level of economic development as this reflects their different sensitivity to sustainability. Indeed, as emerging economies are normally characterized by weaker regulations, they are likely to place lower pressures on companies for superior CSR practices. Therefore, the authors expect the effect of CSR on CFP to be more positive for firms headquartered in advanced than in emerging countries. At the same time, the authors propose a more negative relationship between CSI and CFP for firms headquartered in developed countries due to the higher overall sustainability expectations required to gain legitimacy. The empirical analyses, run on a sample of 1,971 publicly listed firms between 2010 and 2020 from developed and emerging economies, support the expectations, thus confirming that country-specific contextual factors do play a role in shaping both the positive and the negative impact of CSR and CSI on CFP, and that the reactions of stakeholders to responsible and irresponsible behavior are stronger when their sensitivity to sustainability is higher.
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Mohamed M. Sraieb and Ahmet Akin
We investigate the relationship between gender diversity on corporate boards and environmental performances of firms. Our central focus is the extent to which a country's economic…
Abstract
We investigate the relationship between gender diversity on corporate boards and environmental performances of firms. Our central focus is the extent to which a country's economic status (developed, developing) can shape such a relationship. We find evidence that gender diversity is positively correlated to environmental performances of firms. Interestingly, this correlation is not only stronger in developing countries but also increasing in gender diversity. These findings have considerable importance in terms of policy.
Promotion of gender diversity in developing countries, where abatement costs are the lowest, would improve global environmental quality in a cost-effective way. This is best achieved through building institutions and strengthening them. The benefits of such policy go beyond developing countries frontiers, particularly when global environmental problems (pollution, global warming, ozone layer depletion, loss of biodiversity, etc.) are concerned. These benefits can be a leverage for an efficient implementation of the United Nations Sustainable Development Goals (UN-SDGs) both as gender diversity stands as a goal by itself and also because it facilitates achieving other environmental-related SDGs.
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The present study aims to demonstrate that providing a free gift upon purchase may induce consumers to devaluate the main product promoted with the offer. The mediating role of…
Abstract
Purpose
The present study aims to demonstrate that providing a free gift upon purchase may induce consumers to devaluate the main product promoted with the offer. The mediating role of persuasion knowledge and the moderating role of consumer shopping orientation are also examined.
Design/methodology/approach
Three studies with between-subject designs are conducted to test the influence of product–gift fit on evaluations of the promoted product.
Findings
When a low-fit gift (vs a high-fit gift) is provided as a promotional offer, consumers’ evaluations of the promoted product are undermined. These negative effects are driven by consumers’ activation of persuasion knowledge on the company’s ulterior motive to entice consumers to make a purchase. Such devaluation effects occur especially for consumers with a task-focused shopping orientation, whereas they are mitigated for consumers with an experiential shopping orientation.
Research limitations/implications
This research extends the conceptualization of product–gift fit and challenges the common claim that free gift promotions maintain the value of the promoted product. By instigating a mechanism underlying consumers’ objections toward low-fit gifts, this research implies that consumers may think of an implicit cost to a free offer based on their knowledge of companies’ tactics.
Practical implications
Marketers should be aware of the fact that a certain gift may come at a cost for companies and bring about negative inferences regarding the main product. They need not only to select a gift that drives sales but also to be cautious about the gift’s influence on perceptions of the main product. Marketers should ensure that the gift has a good fit with the product while trying to discover a unique gift for consumers. Marketers should also provide an offer that matches shopping orientation of the target consumers.
Originality/value
This research reveals counterevidence to prior research claiming that free gift promotion does not hurt the perceived value of the promoted product. It enhances a theoretical understanding of devaluation effects and provides useful implications for designing and targeting free gift promotion.
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Stefanie App and Marion Büttgen
The purpose of this paper is to investigate whether both perceived sustainable organizational and supervisor support, which represent a sustainable human resource management (HRM…
Abstract
Purpose
The purpose of this paper is to investigate whether both perceived sustainable organizational and supervisor support, which represent a sustainable human resource management (HRM) approach, can induce commitment to the employer brand.
Design/methodology/approach
This study includes a diverse sample of 3,016 employees drawn from various German organizations. To test the developed hypotheses, a structural model that included all the hypothesized effects was built, using Mplus 7.
Findings
Perceived sustainable supervisor support (PSSS) has a direct effect on brand commitment, whereas perceived sustainable organizational support (PSOS) only generates brand commitment indirectly, mediated by brand prestige, brand distinctiveness, and brand trust. The findings further underline that, compared with PSOS, PSSS has a stronger impact on trust in respect of the employer brand.
Originality/value
By considering current employees and their commitment to the employer brand, this study takes an insider view and sheds new light on how an employer brand based on sustainable HRM can achieve commitment, as well as how several mediators affect this link.
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The purpose of this study is to explore the relationship between brand trust and consumer doubts towards new products in the Egyptian mobile phone market. The study controls for…
Abstract
Purpose
The purpose of this study is to explore the relationship between brand trust and consumer doubts towards new products in the Egyptian mobile phone market. The study controls for the effects of age differences and risk aversion.
Design/methodology/approach
The study applies a questionnaire methodology that consists of measures adopted from existing and tested scales on a randomly selected sample of Egyptian mobile phone users. It applies multiple regression analysis in order to predict the hypothesized relationships.
Findings
The research findings reveal that brand reliability is negatively associated with consumer doubts towards the perceived risks and the relative advantage of new products. On the other hand, brand intentions are negatively associated with doubts towards the performance risk of a new product. Besides, age and risk aversion do not control the hypothesized relationships.
Originality/value
This paper examines brand trust from a multi‐dimensional perspective to evaluate consumer doubts towards new products in the Egyptian context.
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Sylvester Senyo Horvey and Jones Odei-Mensah
This study examines the linear and non-linear effects of enterprise risk management (ERM) and corporate governance (CG) on insurers’ risk-taking behaviour.
Abstract
Purpose
This study examines the linear and non-linear effects of enterprise risk management (ERM) and corporate governance (CG) on insurers’ risk-taking behaviour.
Design/methodology/approach
The study employed panel data of 63 insurers from South Africa over the period 2015 and 2019. The study used the generalised method of moments (GMM) to determine the direct relationship, while the dynamic panel threshold technique was utilised to discover whether there is non-linearity in the relationship and the threshold level at which ERM and CG stimulate insurance risk-taking.
Findings
The result from the GMM elicits a positive relationship between ERM and risk-taking, implying that insurers with a robust ERM system are more likely to pursue higher risks. The empirical evidence also suggests that board size and board independence improve insurers’ risk-taking. Contrarily, gender diversity shows an inverse relationship with risk-taking. The dynamic panel threshold regression confirms non-linearities between ERM, CG and risk-taking. The empirical evidence indicates a U-shaped relationship between ERM and risk-taking, implying that a robust ERM system increases insurers’ risk-taking and vice-versa. Further, board size and independence reveal an inverted U-shaped relationship, suggesting that larger boards and a higher proportion of independent directors exhibit lower risk-taking. However, gender diversity presents a negative relationship, demonstrating a strong impact at higher threshold levels. This tells that the presence of females on the board reduces insurers’ risk-taking preferences.
Practical implications
Due to the risk-bearing nature of the insurance business, it is required that they ensure a robust ERM system for prudent risk-taking decisions. This demands strict adherence to ERM principles and allocating sufficient resources for effective implementation. Also, there is a need for strong CG structures that pay more attention to diversity when selecting board members due to their influence in ensuring improved risk-taking choices.
Originality/value
This study contributes to the existing literature by providing insights into the under-researched role of ERM and CG in insurers’ risk-taking behaviour. The study further extends the literature by providing evidence on the non-linearity and threshold levels at which ERM and CG influence insurers’ risk-taking choices. The findings are unique and contribute to the growing body of literature documenting the need for strong ERM and CG systems in insurance companies.
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Filomena Antunes Brás and Lúcia Lima Rodrigues
This paper aims to analyse two competing approaches to accounting for a firm's investment in staff‐training activities: the accounting and labour economics approach (which argues…
Abstract
Purpose
This paper aims to analyse two competing approaches to accounting for a firm's investment in staff‐training activities: the accounting and labour economics approach (which argues that no asset should be recognized from training activity); and the human resources management approach (which advocates recognition of an asset).
Design/methodology/approach
A case study analysis was conducted in two large Portuguese companies where human capital is said to be a critical factor of firm success. The authors used document analysis and interviews to help understand the training phenomenon from a company's point of view. This meant knowing of motivations, training programme curricula, training practices and expected benefits of training.
Findings
The paper identifies and defines two situations concerning a firm's investment in human capital training: one, where no asset (value) is generated; and the other, where the accounting definition of an asset, requiring value generation, is satisfied.
Research limitations/implications
Case studies possess the strength of specific instance detail and interpretation, and the ostensible weakness of interpretation of a small sample. But such research can provide for a reframing of conceptual perspectives. They can stimulate additional efforts to improve accounting and financial reporting.
Practical implications
A guideline system for firm investment in training was developed. This system allows different accounting treatments of a firm's investment in training activity. It proceeds on the basis of perceptions of whether training activity undertaken by a firm generates, or does not generate, value.
Originality/value
This paper provides a much‐needed case‐based empirical analysis of accounting and human capital arguments, and asset recognition arguments. It clarifies the situations in which an asset should be regarded as being generated by training expenditure.
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Lisa Bryant-Kutcher, Denise A. Jones and Sally K. Widener
Economic theory posits that production factors that are both difficult to imitate and capable of creating organizational efficiencies can generate economic rents and sustain…
Abstract
Economic theory posits that production factors that are both difficult to imitate and capable of creating organizational efficiencies can generate economic rents and sustain long-term competitive advantage. Using survey data for 106 firms, we measure four dimensions of strategic human capital and find that the market values strategic human capital that has the capability to create efficiencies in the organization and is also difficult for competitors to imitate. We discuss implications for the reporting of human capital in intellectual capital reports and offer suggestions for future research.