Shuming Bai, Kai S. Koong and Yanni Wang
China adopted its new Accounting Standards for Business Enterprises No. 6 in 2007, which substantially converges with the International Financial Reporting Standards. It…
Abstract
Purpose
China adopted its new Accounting Standards for Business Enterprises No. 6 in 2007, which substantially converges with the International Financial Reporting Standards. It stipulates that firms operating in China shall capitalize development costs provided specific criteria have been met. This paper aims to examine the effects of the new accounting policies of R&D on the value-relevance and stock performance of 36,299 Chinese firms-years from 2007 to 2020.
Design/methodology/approach
A comprehensive multi-stage analysis was conducted. Multiple linear regressions were performed on the pooled cross-sectional time-series total R&D, capitalized expenditures, expensed costs and other key financial factors to test for the effects of R&D on the stock prices, contemporaneous stock returns and subsequent stock returns for the full sample, capitalizer sample and expenser sample, respectively.
Findings
First, majority of Chinese firms (about 80% of those reported) elect to adopt expensing R&D approach, while about 20% deploys capitalization treatment. Second, key attributes such as size, profitability, leverage and R&D intensity are highly associated with capitalization propensity. Third, current capitalization affects the contemporaneous stock prices and stock returns (priced-in) with yearly volatility. Finally, intertemporal association exists between firms’ expensing costs and subsequent returns due to a delayed reaction.
Originality/value
As the world largest emerging economy, the results show that research and development information adds value, and capitalizers outperforms expensers in the area of stock performance. This strategy works irrespectively of economic development stage or capital market maturity. The findings call for more capitalization.
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Yanni Yu and Yongrok Choi
The purpose of this paper is to investigate the mediating effect of organizational trust on the relationship between perceived corporate social responsibility (CSR) practices and…
Abstract
Purpose
The purpose of this paper is to investigate the mediating effect of organizational trust on the relationship between perceived corporate social responsibility (CSR) practices and firm performance.
Design/methodology/approach
A total of 674 questionnaires were sent randomly to Chinese firms to obtain a total of 168 reliable responses. A confirmatory factor analysis was conducted for a validity test, and structural equation modeling was employed to test the mediating effect of organizational trust.
Findings
The empirical results show that perceived CSR practices of firms had significant direct effects on employee well-being and organizational performance and that organizational trust partially mediated the relationships of CSR practices to employee well-being as well as to organizational performance.
Research limitations/implications
The data may not fully represent a generalized survey of all industries with CSR management. In this regard, future research should focus on a specific Chinese industry. The results suggest that firms should more actively promote the role of employees in CSR strategies to better build organizational trust.
Originality/value
Previous CSR studies have generally focused on customers’ perceptions, paying little attention to employees’ viewpoints. This study provides the first empirical analysis of the relationship between CSR and firm performance from the perspective of employees in Chinese firms. In addition, the study examines the mediating role of trust in CSR, which has been rarely considered in the context of Chinese firms.
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Yanni Wang and Weiguo Fan
The purpose of this paper is to investigate how different research and development (R&D) accounting choice (capitalization and expensing) affects the value of the listed companies…
Abstract
Purpose
The purpose of this paper is to investigate how different research and development (R&D) accounting choice (capitalization and expensing) affects the value of the listed companies under the new Chinese Accounting Standards (CAS) background. According to new CAS, R&D expenditure can either be expensed as incurred as a whole or partly capitalized and partly expensed from 2007.
Design/methodology/approach
The paper takes the form of an empirical study using a hand-collected sample of 3,664 observations from Chinese listed companies over 2007–2012 timeframe.
Findings
It is found that different methods of reporting R&D investments do affect the value of listed firms in China. Specifically, the firms that chose to capitalize their R&D investments have higher stock price and return. On the contrary, the companies that select to expense their R&D expenditures have lower stock price and return. It is also found that capitalized R&D investments are positively connected to stock price, while expensed R&D expenditures are negatively related to stock prices.
Research limitations/implications
This paper researches and finds the value relevance of R&D capitalization and expensing from the accounting report method itself. This explores some interesting research questions. Does choice of accounting method for R&D expenditure affect firm valuation? Do different methods of reporting R&D investments transfer different signal to investors? Does expensed R&D carry a negative signal to investors? So it can expand the existing R&D area of research.
Practical implications
This paper can provide empirical evidence and decision support for corporate managers, R&D policy makers and investors in a non-mandatory disclosure market of R&D expenditure. Because different R&D accounting choice has different market reactions, managers can choose a favorable method of reporting R&D investments to raise their firm’s stock price. Policy makers should standardize accounting treatment of R&D expenditure, strengthen the disclosure of R&D information and develop a detailed, workable R&D capitalization accounting policies and procedures. Investors can make the right judgment and decision on business innovation capability and future development only by getting more R&D investment information.
Originality/value
Different from present studies focusing on the value relevance of R&D investment, this paper explores an interesting topic showing how different methods of reporting R&D investment in China affect the value of the firms.
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Shuochen Wei, Lifang Wang, Taiwen Feng and Yanni Gao
This study explores the antecedent configurations shaping ambidextrous environmental strategy (AES) and the subsequent performance outcomes. The lack of literature from the…
Abstract
Purpose
This study explores the antecedent configurations shaping ambidextrous environmental strategy (AES) and the subsequent performance outcomes. The lack of literature from the configurational perspective and inconsistent performance results suggest that this study has significant implications for practitioners, policymakers and the public. Therefore, this study aims to investigate how different antecedent conditions interact to shape AES and subsequent performance outcomes.
Design/methodology/approach
To achieve the research aims, the current research utilize research techniques based on technology–organization–environment framework and configurational perspective. This study collects data from 317 Chinese manufacturing enterprises and tests the theoretical framework using fuzzy set qualitative comparative analysis and propensity score matching.
Findings
Perceived institutional pressure, green supply chain integration and digital technology adoption form four paths that lead to the existence of AES. There are four sets of replaceable conditions between distinct paths. In addition, except for configuration P3, all other configurations promote environmental, operational and financial performance.
Research limitations/implications
Our results provide new insights for enterprises to shape AES and achieve multiple performances, and new ideas for promoting environmental policies and public environmental awareness.
Originality/value
This study adds literature on AES and confirms multiple drivers, revealing their interaction mechanisms and key antecedent conditions. In addition, this study promotes the performance practice of AES by examining different AES configurations that achieve triple performance and insignificant operational performance.
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Zoi Patergiannaki and Yannis A. Pollalis
The purpose of this study is to explore the discrepancies between the services provided by municipalities through e-Government portals and the services sought by residents in the…
Abstract
Purpose
The purpose of this study is to explore the discrepancies between the services provided by municipalities through e-Government portals and the services sought by residents in the context of smart cities.
Design/methodology/approach
This research investigates the information and services delivered by municipalities via e-Government portals and the services that residents wish to access through these portals. A mind map representation of ideas from 707 participants is used to visually illustrate the proposed e-Government portal structure based on user recommendations.
Findings
The findings reveal that existing e-Government portals fall short in offering a comprehensive range of e-services desired by residents. The results highlight the need for municipal e-Government websites to grant residents access to a diverse array of services and information. It is crucial to note that the specific services may fluctuate over time and between cities, reflecting the evolving needs of residents and the capabilities of municipalities.
Originality/value
This study is original in its focus on bridging the gap between existing e-Government portals and residents’ preferences, using a mind map representation to visually illustrate the proposed portal structure based on user recommendations. The research emphasizes the importance of considering residents’ needs in terms of services and functionalities and adapting websites accordingly.
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John N. Ivan and Karthik C. Konduri
Purpose – This chapter gives an overview of methods for defining and analysing crash severity.Methodology – Commonly used methods for defining crash severity are surveyed and…
Abstract
Purpose – This chapter gives an overview of methods for defining and analysing crash severity.
Methodology – Commonly used methods for defining crash severity are surveyed and reviewed. Factors commonly found to be associated with crash severity are discussed. Approaches for formulating and estimating models for predicting crash severity are presented and critiqued. Two examples of crash severity modelling exercises are presented and findings are discussed. Suggestions are offered for future research in crash severity modelling.
Findings – Crash severity is usually defined according to the outcomes for the persons involved. The definition of severity levels used by law enforcement or crash investigation professionals is less detailed and consistent than what is used by medical professionals. Defining crash severity by vehicle damage can be more consistent, as vehicle response to crash forces is more consistent than that of humans. Factors associated with crash severity fall into three categories – human, vehicle/equipment and environmental/road – and can apply before, during or after the crash event. Crash severity can be modelled using ordered, nominal or several different types of mixed models designed to overcome limitations of the ordered and nominal approaches. Two mixed modelling examples demonstrate better prediction accuracy than ordered or nominal modelling.
Research Implications – Linkage of crash, roadway and healthcare data sets could create a more accurate picture of crash severity. Emerging statistical analysis methods could address remaining limitations of the current best methods for crash severity modelling.
Practical Implications – Medical definitions of injury severity require observation by trained medical professionals and access to private medical records, limiting their use in routine crash data collection. Crash severity is more sensitive to human and vehicle factors than environmental or road factors. Unfortunately, human and vehicle factor data are generally not available for aggregate forecasting.
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Konstantinos Rotsios, Nikolaos Sklavounos and Yannis Hajidimitriou
The purpose of this study is to examine the effect of the Greek partners' prior international joint venture (IJV) experience on partner compatibility, knowledge transfer (KT) and…
Abstract
Purpose
The purpose of this study is to examine the effect of the Greek partners' prior international joint venture (IJV) experience on partner compatibility, knowledge transfer (KT) and trust in their IJVs.
Design/methodology/approach
The authors conducted a primary research study and collected a total of 50 useable questionnaires from Greek firms with IJV participation.
Findings
The findings show a positive effect of the Greek partner's prior experience in IJV establishment and management on partner compatibility and on successful KT to the IJV.
Practical implications
The results are significant for executives of firms who seek to expand to international markets through IJV formation and for practitioners involved in IJVs, regarding prior IJV experience, partner compatibility and KT to their IJVs.
Originality/value
This study uses a sample of Greek firms with IJV participation to examine the effect of their prior IJV experience on IJV partner relations in the region of South East (SE) Europe. Additionally, it enhances the understanding of the effect of prior experience in the IJV establishment and management in emerging markets and sheds light to the antecedents of partner compatibility, which have been neglected by researchers.
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Yannis Georgellis, Hamid Roodbari, Godbless Onoriode Akaighe and Atrina Oraee
This article examines the relationships between objective overqualification, volunteering as an extra-work activity and job satisfaction.
Abstract
Purpose
This article examines the relationships between objective overqualification, volunteering as an extra-work activity and job satisfaction.
Design/methodology/approach
The study draws on a vast secondary sample of 20,686 British employees across four waves covering the period 2009–2017. The bivariate ordered probit estimate was used to test the study hypotheses in the bioprobit procedure in STATA.
Findings
Our study unravels compelling insights. Overqualified employees experience lower job satisfaction and engage more in volunteering activities. The results emphasised that voluntary work allows the utilisation of skills and fulfils basic psychological needs, leading to enhanced general well-being and higher job satisfaction.
Practical implications
Overqualified employees, by actively engaging in volunteering, not only make valuable contributions to society but also experience positive spillover effects that significantly influence their workplace attitudes and behaviours. This underscores the potential for promoting volunteering as an effective means to mitigate the private and social overqualification.
Originality/value
This study provides valuable insights into the role of overqualification as well as resulting job dissatisfaction, in shaping volunteering decisions. This insight contributes to the overqualification literature and strengthens our understanding of volunteering as an important mechanism in the relationship between overqualification and job satisfaction.
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Wei Zou, Xiaokun Wang and Yiyi Wang
To address the safety concerns generated by truck crashes occurred in big cities, this paper analyzes the zip code tabulation area (ZCTA)-based truck crash frequency across four…
Abstract
To address the safety concerns generated by truck crashes occurred in big cities, this paper analyzes the zip code tabulation area (ZCTA)-based truck crash frequency across four temporal intervals – morning (6:00–10:00), mid-day (10:00–15:00), afternoon (15:00–19:00), and night (19:00–6:00) in New York City in 2010. A multivariate conditional autoregressive count model is used to recognize both spatial and temporal dependences. The results prove the presence of spatial and temporal dependencies for truck crashes that occurred in neighboring areas. Built environment attributes such as various types of business establishment density and traffic volume for different types of vehicles, which are important factors to consider for crashes occurred in an urban setting, are also examined in the study.
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Zoi Patergiannaki and Yannis A. Pollalis
Governments globally are adopting e-Government services to streamline administrative processes and meet citizens' expectations. This study investigates e-Government service…
Abstract
Purpose
Governments globally are adopting e-Government services to streamline administrative processes and meet citizens' expectations. This study investigates e-Government service quality from citizens' perspectives in 50 Greek municipalities, using the technology acceptance model (TAM) and cognitive theory.
Design/methodology/approach
The data from 707 respondents across 50 Greek municipalities are analyzed using structural equation modeling (SEM), ANOVA and moderation analysis. The study assesses the relationships between key factors and citizens' intentions to use e-Government services, examining the impact of demographics and the digital divide.
Findings
The study reveals that perceived attractiveness (PA), perceived usefulness (PU), perceived ease of use (PEOU) and awareness (AWA) significantly influence citizens' behavioral intentions (BINTs) toward municipal e-Government services. Interestingly, PEOU negatively impacts users' intentions, suggesting dissatisfaction with portal attractiveness and utility. The study explores the influence of demographic variables and the digital divide on citizens' BINTs, highlighting economic activity and income as crucial determinants.
Practical implications
The study emphasizes the significance of user-friendly design, PU, PEOU and AWA campaigns for the development of effective e-Government platforms. Strategies to address the digital divide and promote citizen engagement are essential for enhancing user experience, service utility and AWA, ultimately fostering a positive attitude toward e-Government.
Social implications
Addressing demographic differences ensures inclusive e-Government systems, while bridging the digital divide promotes equitable service delivery and citizen engagement.
Originality/value
This research provides insights into factors influencing citizens' BINTs toward e-Government services. The study's examination of demographic attributes and the digital divide enhances understanding, contributing to the development of citizen-centric e-Government services and supporting inclusive digital transformations.