Using a sample of manufacturing firms listed in China between 2007 and 2019, first, this paper aims to examine whether peer firms influence corporate trade credit supply. Next…
Abstract
Purpose
Using a sample of manufacturing firms listed in China between 2007 and 2019, first, this paper aims to examine whether peer firms influence corporate trade credit supply. Next, the authors examine the channels through which peer firms influence corporate trade credit supply by testing the predictions of rivalry and information theories. Furthermore, the authors examine the heterogeneity of the industry peer effect on corporate trade credit supply. Finally, the authors examine the economic consequences of the industry peer effect on corporate trade credit supply.
Design/methodology/approach
The sample includes all manufacturing firms listed on both the Shanghai and Shenzhen securities exchanges for the sample period from 2007 to 2019, and the data come from the China Stock Market & Accounting Research database. The authors use the fixed effects method to examine the industry peer effect on trade credit supply. The results are robust to a series of robustness tests. To address the potential endogeneity problem, the authors adopt appropriate instruments by estimating instrumental variable models (two-stage least square). The authors use Heckman’s two-stage model to mitigate the sample selection bias.
Findings
The authors provide strong empirical evidence showing that the industry peer effect on trade credit supply exists in the manufacturing sector. It is also found that both competitive rivalry-based and information-based theories can provide explanations of the industry peer effect on trade credit supply. This process is both active imitation and passive reaction. Additional analysis suggests that the industry peer effect on trade credit supply is more pronounced for state-owned firms, firms with low customer concentration and firms with high geographical proximity. The amplification effect and spillover effect are the economic consequences of the industry peer effect on trade credit supply. In other words, the trade credit supply based on peer effect will not only increase the liquidity risk of the firm per se but also induce and increase the liquidity risk of the industry.
Originality/value
The study makes some important contributions. First, the authors find robust evidence that peer firms’ trade credit supply is an important factor in explaining corporate trade credit supply, which extends the literature by connecting the firm’s trade credit supply with the peer effect. Second, the study provides a new micro-perspective for understanding that firms use trade credit supply as a tool of competition, which proves the importance of rivals’ decision-making as a determinant of corporate decisions. Third, the authors examine the industry peer effect on trade credit supply, which not only helps to guide firms to pay more attention to the potential risk and spillover effects of the trade credit supply decision-making relevance but also helps to clarify the industry interaction phenomenon of corporate decision-making behavior. It is an important practical significance to play a role as a bridge between the microlevel of the firm and the meso-level of the industry. Finally, the study provides inspiration for the formulation of industry norms and policies.
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Yu Wang, Mingli Zhang and Yaxin Ming
The purpose of this paper is to understand the factors influencing content generation and community initiative in PESCs. Taking advantage of an emerging PESC – Xiaohongshu APP…
Abstract
Purpose
The purpose of this paper is to understand the factors influencing content generation and community initiative in PESCs. Taking advantage of an emerging PESC – Xiaohongshu APP, the study identifies three antecedent resources, including customer-owned knowledge, harmonious passion to shopping and perceived information usefulness, that affect content generating and further community initiative.
Design/methodology/approach
Based on the service-dominant (S-D) logic model and resource integration related work, the authors proposed a conceptual framework empirically tested using data of a survey and the real content-generating behavior from 347 respondents.
Findings
This paper identifies three resource antecedents of content generating behavior with significant influence. Furthermore, there is a moderating effect of perceived information usefulness among these three resources, which echoes the concept of resource integration. Content generating has a significant and positive influence on community initiative.
Originality/value
First, the paper identified customer and platform resources promoting the prosperity of PESCs, enhancing the research on antecedents of community prosperity. Second, the paper empirically quantifies the process and outcome of resource integration conceptual model. Third, it enriches the understanding of C2C interaction by investigating the value creation process on PESCs. Moreover, findings in the study provide insights for community managers to improve the operation of PESCs.
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Zhangxiang Zhu, Yaxin Zhao and Jing Wang
This study aims to explore the relationship between the content characteristics of destination online reviews and travel intention under three individual circumstances: temporal…
Abstract
Purpose
This study aims to explore the relationship between the content characteristics of destination online reviews and travel intention under three individual circumstances: temporal distance, social distance and experiential distance.
Design/methodology/approach
Based on construal-level theory (CLT), this study divides online travel reviews into concrete and abstract reviews. Three experiments were conducted to test the moderating effects of temporal distance, social distance and experiential distance on the influence of review content characteristics on tourists' travel intentions.
Findings
The results show that abstract reviews would lead to higher travel intentions than concrete reviews. Furthermore, tourists' travel intentions differed depending on social distance and were significantly affected by reviews posted by reviewers similar to review recipients. In addition, the study contributes by discovering that the moderating effects of temporal distance, social distance and experiential distance were not significant, which differs from most of the previous research conclusions.
Originality/value
This study focused on review content characteristics, which provided a novel perspective for constructing online travel reviews. Furthermore, this research defined the concept of experiential distance in the context of online travel and expanded the research on psychological distance.
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Toritseju Begho, Kehinde Odeniyi and Olusegun Fadare
Future foods such as plant-based meat alternatives (PBMA) are a means to achieving a more sustainable food system. However, there is a gap in what is known about PBMA from the…
Abstract
Purpose
Future foods such as plant-based meat alternatives (PBMA) are a means to achieving a more sustainable food system. However, there is a gap in what is known about PBMA from the consumer side, considering it is a relatively new food. Therefore, the paper aims to examine whether trust and perception could explain the intention to consume PBMA among Chinese adults.
Design/methodology/approach
The paper elicited the level of trust and perceptions related to PBMA. Then logistic regressions and mediation analysis were estimated to determine the associations between consumption intentions towards PBMA and a range of trust and perception variables.
Findings
The results indicate that most respondents trust food safety regulators and the labelling and composition standards. A comparison of the perception of meat and PBMA revealed that the majority of respondents perceive meat as tastier than PBMA while PBMA as being better for the environment. Regarding the effect of trust and perception on consumption intention, respondents that perceive PBMA as being better for the environment and having lower food safety risks are more likely to eat PBMA. Also, consumption intentions for PBMA are higher among respondents who trust safety regulators and independent promoters.
Practical implications
The finding on both the intention to try and the potential for sustained consumption is a prerequisite to predicting future demand. These findings are also crucial to guiding market orientation.
Originality/value
This paper focuses on drivers/barriers of consumer consumption intention – a shift from studies which examine product attributes and sensory or marketing determinants of consumption decisions.