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Article
Publication date: 30 January 2019

Anh Ngo, Oscar Varela and Xie Feixue

This paper aims to examine the effects of lines of credit on a firm’s market timing behavior and the pricing of its seasoned equity offerings (SEOs). It shows that firms with…

275

Abstract

Purpose

This paper aims to examine the effects of lines of credit on a firm’s market timing behavior and the pricing of its seasoned equity offerings (SEOs). It shows that firms with lines of credit are more likely to time the equity market and receive less underpricing for their SEOs. It also shows that the propensity of firms with lines of credit to time the market is particularly significant for financially unconstrained firms. The results are robust to different measures of market timing and financial constraint, and these fill the gap in the literature that, to the best of the authors’ knowledge, has not examined the relation between lines of credit, market timing and value creation as related to equity offerings.

Design/methodology/approach

The paper first investigates the relationship between lines of credit and the probability of a firm issuing SEOs using a logistic model. The paper then investigates whether firms with lines of credit engage in market timing behavior using ordinary least square regressions with two-way cluster-robust standard errors (standard errors that are robust to simultaneous correlation along two dimensions, such as firms and time) with two measures of market timing and two measures for financial constraints. Finally, the paper examines the relationship between lines of credit and SEO underpricing.

Findings

It was found that firms with lines of credit are more likely to time the equity market, perhaps driven by the financing flexibility resulting from the existence of their lines of credit. This finding comes mainly from financially unconstrained firms, as such an effect is not observed among financially constrained firms with lines of credit. It is further shown that firms with lines of credit are more likely to experience less severe equity underpricing, perhaps owing to market timing behavior. The results provide evidence on how lines of credit may create value to a firm through its market timing.

Originality/value

The paper sheds new light on how lines of credit may create value to a firm through the market timing channel.

Details

Review of Accounting and Finance, vol. 18 no. 1
Type: Research Article
ISSN: 1475-7702

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Article
Publication date: 13 July 2015

Hong Kim Duong, Anh Duc Ngo and Carl B. McGowan

– The purpose of this paper is to examine the role of industry peers in shaping firm debt maturity decisions.

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Abstract

Purpose

The purpose of this paper is to examine the role of industry peers in shaping firm debt maturity decisions.

Design/methodology/approach

The authors use idiosyncratic equity shocks as instruments to disentangle industry fixed and peer effects. The authors also employ a three-stage least squares regression (3SLS) model to capture the correlation among thee (short, medium, and long) debt maturity decisions.

Findings

The authors find that a one standard deviation change in peer short (medium, long) maturity debt leads to a 50 percent (37 percent, 23 percent) change in firm corresponding maturity debt and that these mimetic behaviors are statistically significant within, but not between, firm size groups. The findings also reveal that firms that mimic the short and medium (long) debt maturity structure of their peers tend to increase (decrease) firm performance as measured by profitability, return-on-assets, and stock returns.

Research limitations/implications

First, given the research design, the authors are constraint from pinpointing the exact date of the mimicking behaviors. This limitation prevents the authors from establishing the causality of the mimicking behavior and firm performance. Future research can extend the findings by solving this problem. Second, it should be interesting to address the question of whether mimicking behavior is good or bad for firm performance. The authors only compare the performance of Close Followers and Loose Followers; however, it would be more precise to compare the performance of mimicking firms with the performance of non-mimicking firms.

Originality/value

First, the findings extend the debt maturity structure literature by providing empirical evidence that an important determinant of firm debt maturity is industry peer debt maturity. Since debt maturity directly influences firm risk and performance, it is important for debt and equity holders to know how firms choose their debt maturity so that they can estimate their investment risk precisely. Second, the paper provides new empirical evidence supporting the information acquisition and principal-agent theories in demonstrating that firm performance increases when managers herd over short and medium debt maturity decisions and decreases when managers herd over long debt maturity decisions.

Details

Managerial Finance, vol. 41 no. 7
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 20 November 2017

Chun Wang, Baiyi Li, Baizhan Li and Andrew Baldwin

The purpose of this paper is to present a detailed case study on the methods and organisational structure used for controlling the time schedule for a large and complex project…

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Abstract

Purpose

The purpose of this paper is to present a detailed case study on the methods and organisational structure used for controlling the time schedule for a large and complex project. The paper discusses the use of “project controlling”, a term used to describe project control by a third-party organisation.

Design/methodology/approach

The researchers used action research to collect data for the case study. A member of the research team was a “participant-observer” on the project on a day-to-day basis for a period of 18 months collecting and analysing data which were subsequently analysed by a mixed methods approach.

Findings

The use of a “Project Controlling Unit” operated by an independent adviser organisation has significant advantages over traditional methods. It can provide timely, consolidated, independent guidance to the client and assistance to other participating organisations.

Research limitations/implications

The research has confirmed the effectiveness of the method on the project under study.

Practical implications

The findings provide guidance for enhanced project control on large complex infrastructural projects that will be of interest to other researchers, other clients and other construction organisations both within China and internationally.

Social implications

Organisations that seek to develop Project Controlling Units to implement the methods described in this paper will need to review their recruitment and training strategies to ensure that appropriate and experienced staffs are engaged.

Originality/value

The paper extends the knowledge relating to “project controlling” method. The findings provide additional insights to progress reporting and the management of construction production on HOPSCA and other large infrastructural projects.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 6
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 29 April 2024

Yaqi Diao, Jihui Wang, Renhong Song, Xue Fei, Zhichang Xue and Wenbin Hu

The purpose of this paper is to prepare a multifunctional nanocomposite that is slow-release and resistant to seawater corrosion and biofouling corrosion and to explore the…

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Abstract

Purpose

The purpose of this paper is to prepare a multifunctional nanocomposite that is slow-release and resistant to seawater corrosion and biofouling corrosion and to explore the synergistic effect between the two corrosion inhibitors.

Design/methodology/approach

The morphology, structure and release properties of CAP@HNTs, BTA@HNTs and CAP/BTA@HNTs were investigated by scanning electron microscopy, transmission electron microscopy, Fourier transform infrared spectroscopy, specific surface area analysis and UV spectrophotometry. The corrosion resistance and antimicrobial properties were investigated by electrochemical measurements and bioinhibition rate tests, and the synergistic effect between the two corrosion inhibitors was explored by X-ray photoelectron spectroscopy.

Findings

The CAP/BTA@HNTs are responsive to acidic environments and have significantly improved antibacterial and corrosion resistance compared with CAP@HNTs and BTA@HNTs. CAP and BTA have a positive synergistic effect on anticorrosion and antifouling.

Originality/value

Two types of inhibitors, anticorrosion and antifouling, were loaded into the same nanocontainer to prepare a slow-releasable and multifunctional nanocomposite with higher resistance to seawater corrosion and biocorrosion and to explore the synergistic effect of CAP and BTA on corrosion resistance.

Details

Anti-Corrosion Methods and Materials, vol. 71 no. 4
Type: Research Article
ISSN: 0003-5599

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Article
Publication date: 25 July 2022

Changzheng Gao, Juepin Hou and Jian Gong

Abundance of cultural resources is a typical feature of traditional villages. It is particularly important to explore the development path of traditional villages from the…

364

Abstract

Purpose

Abundance of cultural resources is a typical feature of traditional villages. It is particularly important to explore the development path of traditional villages from the perspective of cultural resources.

Design/methodology/approach

Based on symbiosis theory, establish a symbiotic development mechanism of traditional village characteristic cultural elements and use grey relation analysis (GRA) to evaluate the resource advantages of different cultural attributes. This paper proposes the traditional village development model of different symbiotic units in the county. An empirical study is conducted in conjunction with the national historical and cultural city of Xunxian County, Henan, China.

Findings

The results show that (1) according to the different attributes of humanistic cultural resources, artificial cultural resources and natural cultural resources in traditional villages, different symbiotic units can be divided, and advantageous resources can be shared through the symbiotic interface; (2) using GRA to calculate the grey relational degree between cultural resources sequence of different attributes and the sum of cultural resources sequence in the county and define as the active degree of humanistic culture, the inheritance degree of artificial culture and the integrity of natural cultural resources are shown to reflect the status of the inheritance of humanistic cultural resources, the existence of artificial cultural resources, and the protection of natural cultural resources; and (3) a comparative analysis of the active degree, inheritance, and integrity of each symbiotic unit leads to the proposal of three symbiotic models of folklore vitality, characteristic space, and natural ecology, all of which are beneficial to promote the formation of a symbiotic environment.

Originality/value

The main innovation of this paper is to put forward the research scale of symbiosis theory in the field of urban and rural planning at the county level, delimit the symbiosis units of traditional villages at the county level, complete the quantitatively evaluate cultural resources in different symbiotic units with GRA, revealing the symbiotic development mechanism of cultural resources characteristic elements in traditional villages.

Details

Grey Systems: Theory and Application, vol. 13 no. 1
Type: Research Article
ISSN: 2043-9377

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Article
Publication date: 25 July 2024

Moncef Guizani and Chouayb Larabi

This study aims to examine the relationship between CEO characteristics and the value of excess cash holdings from the perspective of resource-based view (RBV) theory in the…

88

Abstract

Purpose

This study aims to examine the relationship between CEO characteristics and the value of excess cash holdings from the perspective of resource-based view (RBV) theory in the context of Malaysia.

Design/methodology/approach

The analyses were made using ordinary least squares across 173 non-financial firms listed in Bursa Malaysia over the period of 2015–2021. The authors address potential endogeneity through the generalized method of moments. The results are also robust to alternative measures of excess cash holdings.

Findings

The results showed that female CEOs and CEOs’ educational level are significantly positively related to the value of excess cash holdings. In contrast, CEO tenure and CEO age negatively affect a firm’s excess cash valuation. The results are robust to measurement error and endogeneity issues.

Practical implications

The empirical results have useful policy implications. For practitioners, firms are recommended to prioritize the selection of female CEOs and CEOs with high education levels within their top management, as this initiative can result in improved value associated with excess cash holdings. In addition, policymakers are recommended to guide programs that attempt to improve educational attainment and gender diversity in business leadership. This study also provides investors with insightful information about the possible relationship between CEO traits and company performance, especially with regard to measures for managing surplus capital.

Originality/value

To the best of the authors’ knowledge, this study is the first to explore the role of CEO characteristics in the value of excess cash holdings based on the RBV theory.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 30 September 2022

Işıl Candemir and Cenk C. Karahan

This study aims to document the time varying risk premia for market, size, value and momentum factors for an emerging market using a sophisticated conditional asset pricing model…

166

Abstract

Purpose

This study aims to document the time varying risk premia for market, size, value and momentum factors for an emerging market using a sophisticated conditional asset pricing model. The focus of this study is Turkish stock market denominated in local currency with its peculiar risk premia.

Design/methodology/approach

The authors employ Gagliardini et al.'s (2016) econometric method that uses cross-sectional and time series information simultaneously to infer the path of risk premia from individual stocks.

Findings

Using this methodology, the authors assess several conditioning information and conclude that local dividend yield, inflation and exchange rates have the most explanatory power. The authors document the time varying risk premia in Turkey over three decades.

Originality/value

Existing studies on dynamic estimation of risk premia lack a consensus as to which state variables should be included and to what extent they impact the magnitude of the premium. The authors extend the conditioning information set beyond the ones existing in the literature to determine variables that are specifically important for an emerging market.

Details

International Journal of Emerging Markets, vol. 19 no. 6
Type: Research Article
ISSN: 1746-8809

Keywords

Available. Content available
Article
Publication date: 3 January 2024

Ralitsa Arnaudova, Evi Viza and Michele Cano

The Scottish economy was experiencing steady growth prior the hit of the COVID-19, with the pandemic causing the government to announce extreme lockdown measures with…

261

Abstract

Purpose

The Scottish economy was experiencing steady growth prior the hit of the COVID-19, with the pandemic causing the government to announce extreme lockdown measures with unprecedented impact on small and medium-sized enterprises (SMEs). Whilst some of the industry sectors in Scotland took a lighter hit, a large part of the organizations had to either adapt or completely disrupt their business. An essential aspect of their survival, risk management (RM) was among the areas requiring the most significant acceleration. This study compared the RM practices implemented by Scottish SMEs prior and after the outbreak as well as examined the attitudes of key decision-makers in the SMEs in relation to risk, including their perceived readiness for another crisis of similar significance.

Design/methodology/approach

An online survey based on ISO 31000 RM guidelines was distributed to 232 Scottish SMEs. Based on the official government reports and existing knowledge on how SMEs around the world have handled crisis events within the past 20 years, the authors developed the hypothesis that crisis events significantly accelerate SMEs' RM implementation. Around 13 items were tested in relation to the hypothesis and responses were tested via two-tailed T-test to establish significant statistical difference.

Findings

The research provides insight into the current state of risk management practices implemented by Scottish SMEs. As expected, SMEs showed significant difference in their RM implementation prior and after the COVID-19 outbreak. Whilst this has been viewed as a positive, motivations, priorities and approaches in managing risk demonstrated by the SMEs is questionable with views to their sustainable long-term recovery. The study highlights the lack of confidence instilled within the SMEs that they can handle another crisis of similar significance and provides directions for further investigation and improvements with the aim of helping the SMEs prepare better to mitigate the consequences of future crisis events.

Originality/value

In academic sense, the study offers a tested universal framework and a detailed questionnaire for assessment of RM strategy, applicable to organisations of various type, size and geography. Several implications with regards to managerial practices have been highlighted, including the neglect of the SMEs’ own internal environments and its significance in their risk strategies, the predominantly reactive approach to RM displayed by most Scottish SMEs as well as the neglect of compliance risk leading to potential quality and customer satisfaction issues preventing SMEs from full post-crisis recovery.

Details

The TQM Journal, vol. 37 no. 2
Type: Research Article
ISSN: 1754-2731

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