Osaretin Kayode Omoregie, John Agyekum Addae, Stanley Coffie, George Oppong Appiagyei Ampong and Kwame Simpe Ofori
The increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the…
Abstract
Purpose
The increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.
Design/methodology/approach
In order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.
Findings
Results from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.
Research limitations/implications
The current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.
Originality/value
This paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.
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Charles Blankson, Stavros P. Kalafatis, Stanley Coffie and Markos H. Tsogas
The purpose of this paper is to undertake a comparative examination of the media types used in projecting positioning strategies of service brands, and to establish whether there…
Abstract
Purpose
The purpose of this paper is to undertake a comparative examination of the media types used in projecting positioning strategies of service brands, and to establish whether there is evidence of congruence/fit between managerial decisions, adopted communications and target audience perceptions of positioning strategies of the brands. The relative congruence among intended, conveyed and perceived brand positions is an important research task. Also, how to ensure such synergy and minimize incongruence is an important research question both to theory and to practice.
Design/methodology/approach
Following extensive review of the literature, triangulation research method (face-to-face long interviews, survey and content analysis) characterized this study.
Findings
The findings reveal that overall parity between the three media (TV; newspaper; and pamphlets, leaflets, brochures and billboards) is evident in terms of failure to translate managerial decisions into corresponding positioning messages. The findings also show that fit or congruence between managerial decision and communicated message fails to deliver the desired message in 19 per cent of the observations. Further 23 per cent of the adopted strategies are neither present in communications nor perceived by the target audience. Irrespective of a positioning strategy being adopted or not, there is total congruence/fit between messages in newspapers and target audience’s perceptions, while the corresponding results for TV and other media are moderate. Moreover, channels for positioning offerings can be multifaceted and they do not strictly have to occur via communications. Only “brand name” positioning strategy demonstrates total fit, while “top of the range” shows high frequency of failure to translate managerial decisions into appropriate communication messages.
Originality/value
This paper offers useful insights into the overall differences between the three media (TV; newspaper; and pamphlets, leaflets, brochures and billboards) in the positioning of service brands. The study is a step forward in the diagnosis of the congruence/fit or coherence in the positioning activities between managers, firm practices and consumers’ perceptions. Without this knowledge, executives may encounter difficulties and challenges in their efforts at establishing, maintaining or reframing market “positions” for their offerings.
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William Coffie and Osita Chukwulobelu
Purpose – The purpose of this chapter is to examine whether or not the Capital Asset Pricing Model (CAPM) reasonably describes the return generating process on the Ghanaian Stock…
Abstract
Purpose – The purpose of this chapter is to examine whether or not the Capital Asset Pricing Model (CAPM) reasonably describes the return generating process on the Ghanaian Stock Exchange using monthly return data of 19 individual companies listed on the Exchange during the period January 2000 to December 2009.
Methodology/approach – We follow a methodology similar to Jensen (1968) time series approach. Parameters are estimated using OLS. This study is designed to measure beta risk across different times by following the time series approach. The betas of the individual securities are estimated using time series data of the excess return version of the CAPM.
Findings – Our test results show that although market beta contributes to the variation in equity returns in Ghana, its contribution is not as significant as predicted by the CAPM, and in some cases very weak. Our results also reject the strictest form of the Sharpe–Lintner CAPM, but we found positive linear relationship between equity risk premium and market beta. Instead, our evidence uphold the Jensen (1968) and Jensen, Black, and Scholes (1972) versions of the CAPM.
Research limitations/implications – This study is limited to the single-factor CAPM. Future studies will extend the test to include both size and BE/ME fundamentals and factors relating to P/E ratio, momentum and liquidity.
Practical implications – Our results will make corporate managers to be cautious when using CAPM as a basis to determine cost of equity for investment appraisal purposes, and fund managers when evaluating asset and portfolio performance.
Originality/value – The CAPM is applied to individual securities instead of portfolios, since the model was developed using information on a single security.
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Anand Kumar, Tatiana King and Mikko Ranta
This study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms’ engagement in environmental…
Abstract
Purpose
This study aims to conduct a comprehensive literature review to examine the relationship between corporate governance characteristics and firms’ engagement in environmental, social and governance (ESG) activities. The review focuses specifically on academic papers published in ranked accounting and finance journals.
Design/methodology/approach
The analysis combines a structured literature review with citation analysis, topic modeling using a machine learning (ML) approach and a manual review of selected articles published between 2000 and 2021.
Findings
This paper contributes to corporate governance and ESG literature by conducting an in-depth review, offering a comprehensive analysis of the existing findings and identifying future research directions. From the reviewed literature, this paper proposes the following thematic areas: board characteristics, ownership structure and their impact on a company’s engagement in ESG activities; CEO characteristics and their influence on a company’s involvement in ESG activities; corporate governance and ESG as sources for transparency and legitimacy; internal and external assurance of a company’s involvement in ESG activities; and gender diversity and a company’s involvement in ESG activities.
Originality/value
The study provides a comprehensive understanding of corporate governance and ESG literature. The innovative combination of methods, including ML and manual techniques, enhances the ability to identify key research topics and uncover research directions in the field. Moving forward, this paper suggests several promising directions for future research, including examining the influence of emerging technologies on ESG reporting and assessing the impact of regulatory changes and context on the link between corporate governance and firms’ involvement in ESG practices.
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Jelena Stankevičienė and Dovilė Valtoraitė
Purpose: This chapter identifies performance factors that have the strongest impact on companies’ sustainable outcomes and compares the obtained results across different sectors…
Abstract
Purpose: This chapter identifies performance factors that have the strongest impact on companies’ sustainable outcomes and compares the obtained results across different sectors.
Methodology: About 3,384 observations were gathered from 2015 to 2022 from companies in communication services, energy, financials, real estate, and utilities sectors that comprise the ‘STOXX Global ESG Leaders Select 50’ index. The multiple regression model is constructed with companies’ ESG scores as dependent variables and independent variables representing operational, financial, and market performance.
Findings: Companies that tend to have higher operational and financial performance in the financial sector are more likely to have higher ESG performance. The financial performance results of companies showed the strongest statistically significant relationship with environmental and the weakest with governance scores.
Implications: Results benefit private and institutional investors aiming to create more sustainable portfolios. The obtained results indicate that these investors should focus on companies operating in the financial and energy sectors with higher performance results. Better ROE, ROA, and Tobin’s Q may have a negative impact on sustainable outcomes for companies operating in the real estate and utility sectors.
Limitations: Firstly, not all ESG index providers disclose information about their index constituents. Secondly, within the chosen ‘STOXX Global ESG Leaders Select 50’ index, not all constituents had complete ESG data available on the Bloomberg platform. When selecting the analysis period, it was observed that the accessible ESG data on Bloomberg covers a relatively short time span, only from 2015 onwards.
Future research: A larger number of companies by choosing a more comprehensive available ESG index.
This study aims to examine the effects of audit quality on earnings management and cost of equity capital (COE) considering the impact of two owner types: government ownership and…
Abstract
Purpose
This study aims to examine the effects of audit quality on earnings management and cost of equity capital (COE) considering the impact of two owner types: government ownership and foreign ownership.
Design/methodology/approach
The study uses a panel data set of 236 Vietnamese firms covering the period 2007 to 2017. Because the two main dependent variables of the COE capital and the absolute value of discretionary accruals receive fractional values between zero and one, the paper uses the generalised linear model (GLM) with a logit link and the binomial family in regression analyses. The paper uses numerous audit quality measures, including hiring Big 4 auditors or the industry-leading Big 4 auditor, changing from non-Big 4 auditors to Big 4 auditors or the industry-leading Big 4 auditor, and the length of Big 4 auditor tenure. Big 4 companies include KPMG, Deloitte, EY and PwC, whereas the non-big 4 are the other audit companies.
Findings
The study finds a negative relationship between audit quality and both the COE capital and income-increasing discretionary accruals. The effects of audit quality on discretionary accruals and the COE capital depend on the ownership levels of two important shareholders: the government and foreign investors. Foreign ownership is negatively associated with discretionary accruals; however, the effect is more pronounced in the sub-sample of state-owned enterprises (SOEs), the firms where the government owns 50% or more equity, than in the sub-sample of Non-SOEs.
Originality/value
To the best of the knowledge, no prior similar study exists that used the GLM with a logit link and the binomial family regression. Global investors may be interested in understanding how unique institutional settings and capital markets of each country impact the financial reporting quality and cost of capital. Further, policymakers of developing markets may have incentives to improve the quality of financial reporting and reduce the cost of capital which should result in attracting more foreign investments.
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This paper aims to analyze and give directions for advancing research in stock market volatility highlighting its features, structural breaks and emerging developments. This study…
Abstract
Purpose
This paper aims to analyze and give directions for advancing research in stock market volatility highlighting its features, structural breaks and emerging developments. This study offers a platform to research the benchmark studies to know the research gap and give directions for extending future research.
Design/methodology/approach
The author has performed the literature review, and, reference checking as per the snowballing approach. Firstly, the author has started with outlining and simplifying the significance of the subject area, the review illustrating the various elements along with the research gaps and emphasizing the finding.
Findings
This work summarizes the studies covering the volatility, its properties and structural breaks on various aspects such as techniques applied, subareas and the markets. From the review’s analysis, no study has clarified the supremacy of any model because of the different market conditions, nature of data and methodological aspects. The outcome of this research work has delivered further magnitude to research the benchmark studies for the upcoming work on stock market volatility. This paper has also proposed the hybrid volatility models combining artificial intelligence with econometric techniques to detect noise, sudden changes and chaotic information easily.
Research limitations/implications
The author has taken the research papers from the scholarly journal published in the English language only and the author may also consider other nonscholarly or other language journals.
Originality/value
To the best of the author’s knowledge, this research work highlights an updated and more comprehensive framework examining the properties and demonstrating the contemporary developments in the field of stock market volatility.
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Bekir Bora Dedeoğlu, Caner Çalışkan, Tzu-Ling Chen, Jacek Borzyszkowski and Fevzi Okumus
This study investigates the relationship between feelings of loneliness in the workplace, life satisfaction, affect, hope and expressivity among hotel employees.
Abstract
Purpose
This study investigates the relationship between feelings of loneliness in the workplace, life satisfaction, affect, hope and expressivity among hotel employees.
Design/methodology/approach
The research model was tested via structural equation modeling based on the empirical data collected from hotel employees in Antalya, Turkey.
Findings
The research findings suggest that emotional deprivation and social companionship have a significant impact on life satisfaction, that life satisfaction has a significant impact on positive and negative emotions, and that positive and negative emotions have the same impact on pathways and agencies.
Originality/value
The research findings should assist researchers and practitioners to understand the behaviors of hotel employees in continuous interaction and relationship with individuals to motivate them while providing more effective services.
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Juman Iqbal, Shameem Shagirbasha, Madhan Kumar and S.A. Mufeed
Elucidating on the theoretical framework of conservation of resource and social identity theories, we aim to explore the association between work-family conflict (bidirectional…
Abstract
Purpose
Elucidating on the theoretical framework of conservation of resource and social identity theories, we aim to explore the association between work-family conflict (bidirectional, i.e. work-to-family conflict (WFC) and family-to-work conflict (FWC)) and affective commitment (AC) via emotional exhaustion (EE). Besides, the buffering effect of organizational identification (OI) in the bi-directional work-family conflict and EE relationship and perceived interactional justice (PIJ) between EE and AC were also tested.
Design/methodology/approach
A multi-time study was conducted in which data from 675 doctors working in different public hospitals across India were gathered at three-time intervals (T1, T2 and T3). The collected data were then analyzed using statistical software tools, namely AMOS 24 and SPSS v23.
Findings
It was indicated that WFC and FWC have a significant negative association with AC. EE was shown to mediate the relationship between bi-directional work-family conflict and AC. Additionally, OI buffered the relationship between WFC, FWC and EE. Moreover, PIJ was established as a moderating factor in the relationship between EE and AC.
Originality/value
This paper provides a new insight into the work-family conflict-AC relationship by examining it through the mediating role of EE. It offers a nuanced understanding by establishing the buffering effects of OI in the bi-directional WFC and EE. To our knowledge, this research represents the inaugural attempt to investigate the moderating influence of PIJ in the relationship between EE and AC.