Najaf Iqbal, Ju Feng Xu, Zeeshan Fareed, Guangcai Wan and Lina Ma
This study attempts to document the impact of financial leverage on corporate innovation in the Chinese nonfinancial public firms listed on Shenzhen and Shanghai stock exchanges.
Abstract
Purpose
This study attempts to document the impact of financial leverage on corporate innovation in the Chinese nonfinancial public firms listed on Shenzhen and Shanghai stock exchanges.
Design/methodology/approach
The firm-level data are collected from CSMAR database for ten years, ranging from 2007 to 2016. The authors have employed the panel fixed effects model and further system GMM approach for analysis. The sample is segregated on the basis of state (SOE) and nonstate ownership (NSOE) to check for the diverse effects. In total, three different proxies of financial leverage are used to unearth the varying impact of short-time and long-term leverage separately. Further, corporate innovation is divided into input innovation (R&D/Sales and R&D/Assets) and output innovation (patents and inventions).
Findings
The results suggest that financial leverage is detrimental to the input innovation while conducive for the output innovation when measured by the number of patents. Contrarily, leverage has a negative influence over the output innovation when measured by the number of inventions. This implies that leverage is more damaging for the highest form of innovativeness (inventions) in China. Input innovation is more sensitive to the changes in long-term leverage versus short-term leverage. Further, the authors find that innovation in SOEs is more sensitive to the changes in the leverage as compared to the NSOEs. The results are free from the threat of endogeneity and identification problems, as reported by the system GMM model.
Research limitations/implications
The authors did not segregate the sample on the basis of industry/sector.
Practical implications
The firms pursuing a strategy of radical innovation should try to keep their debt levels lower in order to achieve a higher innovation performance. Although, a rise in the leverage may mean an increased access to finance for a firm but such an access comes at a cost in the form of damage to the corporate innovation. However, increased debt financing may not be so bad for the firms that want to achieve a moderate and not the highest level of innovation. Such firms can produce recurring and synergic effects with debt financing and moderate innovation, once they achieve a level of innovation performance that satisfies their financiers.
Originality/value
To the best of authors’ knowledge, this is probably the first study to check the impact of firm-level financial leverage on both input and output innovation in the Chinese public-listed nonfinancial firms' panel data perspective till now.
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Murat Ertuğrul and Mustafa Hakan Saldi
The study is called for to eliminate the noise between the significant macro variables from the perspective of the cause-and-effect approach to indicate why and how the return of…
Abstract
Introduction
The study is called for to eliminate the noise between the significant macro variables from the perspective of the cause-and-effect approach to indicate why and how the return of solar projects is being affected by these.
Purpose
The study aims to investigate the spread between unit selling electricity prices of a monthly production of 250 KW solar project installed in Türkiye and USD/TRY.
Methodology
A relational framework is designed by drawing on the variables determined as crude oil prices, United States (US) 2-year yield, Dollar Index (DXY), USD/TRY, the annual inflation rate of Türkiye, and unit selling electricity prices. Then, a multivariate approach is performed through Matlab to analyse the correlational relationships and structure the curve estimation models.
Findings
The observations show that the gradually rising spread between unit selling electricity price and USD/TRY signals the reduction in return-on-investment rate of solar energy projects because of the particular causes of the European energy crisis by the reason of Russia and Ukraine war and escalating risks in DXY and US treasury yields as a result of federal fund rate hikes against inflationary pressures. Solar energy investments are delicate instruments to global oil shocks and higher DXY in controlling Inflation and currency volatility; therefore, resilient policies should solicit the demand because of environmental and economic reasons to reduce the external dependency of Türkiye.
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Rabia Hassan, Zeeshan Ahmad Arfeen, Mehreen Kausar Azam, Zain ul Abiden Akhtar, Abubakar Siddique and Muhammad Rashid
Material selection, driven by wide and often conflicting objectives, is an important, sometimes difficult problem in material engineering. In this context, multi-criteria…
Abstract
Purpose
Material selection, driven by wide and often conflicting objectives, is an important, sometimes difficult problem in material engineering. In this context, multi-criteria decision-making (MCDM) methodologies are effective. An approach of MCDM is needed to cater to criteria of material assortment simultaneously. More firms are now concerned about increasing their productivity using mathematical tools. To occupy a gap in the previous literature this research recommends an integrated MCDM and mathematical Bi-objective model for the selection of material. In addition, by using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), the inherent ambiguities of decision-makers in paired evaluations are considered in this research. It goes on to construct a mathematical bi-objective model for determining the best item to purchase.
Design/methodology/approach
The entropy perspective is implemented in this paper to evaluate the weight parameters, while the TOPSIS technique is used to determine the best and worst intermediate pipe materials for automotive exhaust system. The intermediate pipes are used to join the components of the exhaust systems. The materials usually used to manufacture intermediate pipe are SUS 436LM, SUS 430, SUS 304, SUS 436L, SUH 409 L, SUS 441 L and SUS 439L. These seven materials are evaluated based on tensile strength (TS), hardness (H), elongation (E), yield strength (YS) and cost (C). A hybrid methodology combining entropy-based criteria weighting, with the TOPSIS for alternative ranking, is pursued to identify the optimal design material for an engineered application in this paper. This study aims to help while filling the information gap in selecting the most suitable material for use in the exhaust intermediate pipes. After that, the authors searched for and considered eight materials and evaluated them on the following five criteria: (1) TS, (2) YS, (3) H, (4) E and (5) C. The first two criteria have been chosen because they can have a lot of influence on the behavior of the exhaust intermediate pipes, on their performance and on the cost. In this structure, the weights of the criteria are calculated objectively through the entropy method in order to have an unbiased assessment. This essentially measures the quantity of information each criterion contribution, indicating the relative importance of these criteria better. Subsequently, the materials were ranked using the TOPSIS method in terms of their relative performance by measuring each material from an ideal solution to determine the best alternative. The results show that SUS 309, SUS 432L and SUS 436 LM are the first three materials that the exhaust intermediate pipe optimal design should consider.
Findings
The material matrix of the decision presented in Table 3 was normalized through Equation 5, as shown in Table 5, and the matrix was multiplied with weighting criteria ß_j. The obtained weighted normalized matrix V_ij is presented in Table 6. However, the ideal, worst and best value was ascertained by employing Equation 7. This study is based on the selection of material for the development of intermediate pipe using MCDM, and it involves four basic stages, i.e. method of translation criteria, screening process, method of ranking and search for methods. The selection was done through the TOPSIS method, and the criteria weight was obtained by the entropy method. The result showed that the top three materials are SUS 309, SUS 432L and SUS 436 LM, respectively. For the future work, it is suggested to select more alternatives and criteria. The comparison can also be done by using different MCDM techniques like and Choice Expressing Reality (ELECTRE), Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE).
Originality/value
The results provide important conclusions for material selection in this targeted application, verifying the employment of mutual entropy-TOPSIS methodology for a series of difficult engineering decisions in material engineering concepts that combine superior capacity with better performance as well as cost-efficiency in various engineering design.
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Muhammad Sohail and Syed Tehseen Abbas
This study aims to analyze the Prandtl fluid flow in the presence of better mass diffusion and heat conduction models. By taking into account a linearly bidirectional stretchable…
Abstract
Purpose
This study aims to analyze the Prandtl fluid flow in the presence of better mass diffusion and heat conduction models. By taking into account a linearly bidirectional stretchable sheet, flow is produced. Heat generation effect, thermal radiation, variable thermal conductivity, variable diffusion coefficient and Cattaneo–Christov double diffusion models are used to evaluate thermal and concentration diffusions.
Design/methodology/approach
The governing partial differential equations (PDEs) have been made simpler using a boundary layer method. Strong nonlinear ordinary differential equations (ODEs) relate to appropriate non-dimensional similarity variables. The optimal homotopy analysis technique is used to develop solution.
Findings
Graphs analyze the impact of many relevant factors on temperature and concentration. The physical parameters, such as mass and heat transfer rates at the wall and surface drag coefficients, are also displayed and explained.
Originality/value
The reported work discusses the contribution of generalized flux models to note their impact on heat and mass transport.
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Ali Zeb, Majed Bin Othayman, Gerald Guan Gan Goh and Syed Asad Ali Shah
Social exchange and social learning theories are widely used in many disciplines, but there is little research on the relationships between supervisor support and job performance…
Abstract
Purpose
Social exchange and social learning theories are widely used in many disciplines, but there is little research on the relationships between supervisor support and job performance in a developing context. Therefore this study aims to examine the links between supervisor support and job performance with the mediating role of psychological factors; empowerment and self-confidence.
Design/methodology/approach
Data for this study were collected from 364 employees working at Pakistan Telecommunication Company Limited. Partial least square structural equation modeling was used for the analysis.
Findings
The results revealed that supervisor support stimulates job performance. Empowerment and self-confidence both partially mediate the relationships between supervisor support and job performance.
Practical implications
This study adds to the current body of literature by providing insight into the influence of perceived supervisor support on job performance through the mediating role of psychological factors.
Originality/value
To the best of the authors’ knowledge, this is one of the very few studies exploring the relationships between supervisor support and job performance in developing contexts, particularly focusing on the mediating mechanisms of empowerment and self-confidence.