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Book part
Publication date: 28 November 2024

Patricia Ahmed, Rebecca Jean Emigh and Dylan Riley

A “state-driven” approach suggests that colonists use census categories to rule. However, a “society-driven” approach suggests that this state-driven perspective confers too much…

Abstract

A “state-driven” approach suggests that colonists use census categories to rule. However, a “society-driven” approach suggests that this state-driven perspective confers too much power upon states. A third approach views census-taking and official categorization as a product of state–society interaction that depends upon: (a) the population's lay categories, (b) information intellectuals' ability to take up and transform these lay categories, and (c) the balance of power between social and state actors. We evaluate the above positions by analyzing official records, key texts, travelogues, and statistical memoirs from three key periods in India: Indus Valley civilization through classical Gupta rule (ca. 3300 BCE–700 CE), the “medieval” period (ca. 700–1700 CE), and East India Company (EIC) rule (1757–1857 CE), using historical narrative. We show that information gathering early in the first period was society driven; however, over time, a strong interactive pattern emerged. Scribes (information intellectuals) increased their social status and power (thus, shifting the balance of power) by drawing on caste categories (lay categories) and incorporating them into official information gathering. This intensification of interactive information gathering allowed the Mughals, the EIC, and finally British direct rule officials to collect large quantities of information. Our evidence thus suggests that the intensification of state–society interactions over time laid the groundwork for the success of the direct rule British censuses. It also suggests that any transformative effect of these censuses lay in this interactive pattern, not in the strength of the British colonial state.

Details

Elites, Nonelites, and Power
Type: Book
ISBN: 978-1-83797-583-9

Keywords

Article
Publication date: 14 July 2023

Qin Chen, Jiahua Jin, Tingting Zhang and Xiangbin Yan

The success of online health communities (OHCs) depends on maintaining long-term relationships with physicians and preventing churn. Even so, the reasons for physician churn are…

Abstract

Purpose

The success of online health communities (OHCs) depends on maintaining long-term relationships with physicians and preventing churn. Even so, the reasons for physician churn are poorly understood. In this study, an empirical model was proposed from a social influence perspective to explore the effects of online social influence and offline social influence on physician churn, as well as the moderating effect of their online returns.

Design/methodology/approach

The empirical data of 4,145 physicians from a Chinese OHC, and probit regression models were employed to verify the proposed theoretical model.

Findings

The results suggest that physicians' churn intention is influenced by online and offline social influences, and the offline social influence is more powerful. Physicians' reputational and economic returns could weaken the effect of online social influence on churn intention. However, physicians' economic returns could strengthen the effect of offline social influence on churn intention.

Originality/value

This research study is the first attempt to explore physician churn and divides the social influence into online and offline social influences according to the source of social relationship. The findings contribute to the literature on e-Health, user churn and social influence and provide management implications for OHC managers.

Details

Aslib Journal of Information Management, vol. 76 no. 6
Type: Research Article
ISSN: 2050-3806

Keywords

Open Access
Article
Publication date: 15 November 2024

Mohamed Ismail Mohamed Riyath, Debeharage Athula Indunil Dayaratne and Athambawa Jahfer

This study aims to comprehensively examine the relationship between initial public offering (IPO) activities and macroeconomic factors in Sri Lanka.

Abstract

Purpose

This study aims to comprehensively examine the relationship between initial public offering (IPO) activities and macroeconomic factors in Sri Lanka.

Design/methodology/approach

This study uses principal component analysis (PCA) and autoregressive distributed lag (ARDL) techniques to examine the relationship between IPO activities and macroeconomic factors. Ten macroeconomic variables are transformed into principal components (factors) using PCA. Then, ARDL is applied to investigate the long- and short-term relationships between IPO activities and the transformed macroeconomic factors.

Findings

The empirical investigation identifies three principal factors from the ten macroeconomic variables, of which two factors have a significant long-run association with IPO activities: “return on investment (RTOI)” and “economic and market development (ECMD).” In the short run, “trade openness and banking sector development (TOBD)” and RTOI are significantly associated with IPO activities.

Research limitations/implications

The study was based on 30 years of observations, which passed all diagnostic tests but may be insufficient for generalizing the findings. Future studies could use high-frequency data (monthly or quarterly) to increase the number of observations and repeat the method and analysis. Also, while the symmetrical ARDL method was used in this study, an asymmetrical ARDL method may provide more insightful results and interpretations.

Practical implications

The study highlights the importance of considering both long- and short-term associations when analyzing the impact of macroeconomic variables on IPO activities.

Originality/value

This study is the first to comprehensively examine the relationship between IPO activities and macroeconomic variables using PCA and the ARDL technique. The study provides insight into the macroeconomic factors that influence IPO activities in Sri Lanka and highlights the importance of considering long- and short-term associations.

Details

LBS Journal of Management & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-8031

Keywords

Article
Publication date: 25 November 2024

Richard Kent, Wenbin Long, Yupeng Yang and Daifei Yao

We adopt an information risk view and argue that higher levels of pledge risk incurred by insiders incentivize opportunistic financial disclosure and impair the quality of…

Abstract

Purpose

We adopt an information risk view and argue that higher levels of pledge risk incurred by insiders incentivize opportunistic financial disclosure and impair the quality of information available to analysts to forecast firm performance.

Design/methodology/approach

We sample Chinese listed companies from 2010 to 2022. Following the literature, we apply established models to measure and test analysts’ forecasting accuracy/dispersion related to controlling shareholders pledging equity and the amount of margin call pressure. Analyst characteristics and nonfinancial disclosures proxied by CSR reports are also examined as factors likely to influence the relationship between pledge risk and analysts’ forecast quality.

Findings

We find that analysts’ earnings predictions are less accurate and more dispersed as the proportion of shares pledged (pledge ratio) increases and in combination with greater margin call pressure. Pledge ratios are significantly associated with several information risk proxies (i.e. earnings permanence, accruals quality, audit quality, financial restatements, related party transactions and internal control weaknesses), validating the channel through which equity pledges undermine analysts’ forecast quality. The results also demonstrate that forecast quality declines for a wide variety of analysts’ attributes, including high- and low-quality analysts and analysts from small and large brokerage firms. Importantly, nonfinancial disclosures, as proxied by CSR reporting, improve analysts’ forecasts.

Originality/value

We extend the literature by demonstrating that incremental pledge risk increases non-diversifiable information risk; all non-pledging shareholders pay a premium through more diverse and less accurate earnings forecasts. Our study provides important policy implications with economically significant costs to investors associated with insider equity pledges. Our results highlight the benefits of nonfinancial disclosures in China, which has implications for the current debate on the global convergence of CSR reporting.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

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Article
Publication date: 18 November 2024

Esmaeil Aliabadi, Ali Ebrahim Nejad and Mahdi Heidari

The purpose of our study is to examine the functioning of internal capital markets (ICMs) within business groups in Iran. We document how the ultimate owner's economic interests…

Abstract

Purpose

The purpose of our study is to examine the functioning of internal capital markets (ICMs) within business groups in Iran. We document how the ultimate owner's economic interests in affiliated firms influence their investment and dividend policies.

Design/methodology/approach

Using hand-collected data on the ownership structures of Iranian firms, we first identify group-affiliated firms using Almeida et al.’s (2011) method. Having identified business groups, we test a number of hypotheses concerning the dynamics of the ICMs and the implications of the ultimate owner’s incentives for affiliated firms’ behavior.

Findings

We first demonstrate that investments of group-affiliated firms are less sensitive to their own cash flow (as compared to stand-alone firms) but are sensitive to the cash flows of other firms affiliated with the same group near or at the bottom of the ownership structure. We next find significant variation in dividend policy within groups, with notably higher dividends for firms close to the ultimate owner. Furthermore, we find that higher investments by firms close to the owner lead to lower dividends by firms positioned far from the owner, but the reverse does not hold.

Originality/value

We are the first to examine the effect of group-affiliated firms’ investments on the dividend policies of other firms based on their position within the group. Our findings illuminate how business groups prioritize funding investments in their closely held firms over paying dividends to outside investors in firms positioned farther from the group owner.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 1 November 2024

Ziqian Li, Deborah Cotton, Kathleen Walsh and Jing Xu

Firms with gender diverse boards have been shown to have increased transparency and disclosure, resulting in reduced information asymmetry, which is a key factor influencing stock…

Abstract

Purpose

Firms with gender diverse boards have been shown to have increased transparency and disclosure, resulting in reduced information asymmetry, which is a key factor influencing stock liquidity. This paper explores the influence of information asymmetry resulting from board gender diversity on stock liquidity. We examine the impact of gender diverse firms on stock liquidity in US listed firms from 2006 to 2022, capturing 28,280 firm-year observations across 4,349 firms. Using mediation models, we distinguish between direct and mediated effects to examine the impact of gender diverse boards on three dimensions of stock liquidity. We find a positive and significant relation between board gender diversity and stock liquidity, and our findings highlight the substantial mediating role of information disclosure in this association. To address concerns of endogeneity, we use instrumental variables regression, and our conclusions remain robust to a range of alternatives.

Design/methodology/approach

To investigate the association between board gender diversity and stock liquidity and the underling mechanism that drives the relation, we utilize a dataset comprising 4,349 listed US firms from 2006 to 2022. We adopt a comprehensive approach to measure stock liquidity that spans three dimensions: Amihud illiquidity (LIQ) as a representation of price impact, the quoted spread (SPREAD) to gauge transaction costs and the stock turnover (TURNOVER) to assess trading frequency. To evaluate board gender diversity, we examine female directors and female independent directors, utilizing both the percentage and the presence (as a binary variable).

Findings

The results of our analysis reveal not only a statistically significant effect of board gender diversity on liquidity but also demonstrate its economic significance. One standard deviation increase in the percentage of female directors (12% more female directors) is associated with a 5.8% decrease in price impact, a 5.1% reduction in transaction costs and a 3% increase in trading frequency. These findings highlight the material economic importance of the relationship, which stands in contrast to previous studies reporting only a 1% change in average stock liquidity in the Australian stock markets (Ahmed and Ali, 2017). To further investigate the underlying mechanism driving the association between board gender diversity and liquidity, we employ mediation models to separate the direct and mediated channels. Our results indicate that the effects of the percentage of female directors are mediated on liquidity (LIQ, SPREAD, and TURNOVER) through information disclosure, albeit with a relatively small magnitude (mediation proportion is 18.2, 3.9 and 22.9%, respectively).

Research limitations/implications

We include a comprehensive set of variables in our analysis and adopt an instrumental approach to mitigate endogeneity concern. However, we acknowledge the possibility of omitted variable biases or reverse causality in our empirical analysis.

Practical implications

Our study contributes to the understanding of the association between board gender diversity and stock liquidity, focusing on the underlying mechanisms. Gender diversity on boards enhances corporate governance, leading to reduced managerial opportunism (Adams and Ferreira, 2009; Nielsen and Huse, 2010). This, in turn, increases information transparency and results in increased stock liquidity. By exploring the empirical evidence of the impact of gender diverse boards on stock liquidity through the information channel, we provide valuable insights to the existing literature. Our study uses US data to examine this association, addressing the small sample concerns of prior research that may have contributed to inconsistent findings.

Social implications

This research can drive both economic and social transformations as it provides evidence that gender diverse boards lead to improved market outcomes.

Originality/value

Our study differs from previous research by incorporating all three dimensions of liquidity, ensuring a comprehensive analysis. Through our investigation, we aim to deepen understanding of how gender diversity on corporate boards shapes market dynamics and contributes to understanding of corporate governance and market efficiency. Our study investigates how the impact occurs by employing mediation models to separate the direct and mediated channels of impact. We show that the effects of gender diverse boards on liquidity are mediated through information disclosure.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 19 November 2024

Dagnu Haile Tessema, Figen Yesilada, Iman Aghaei and Japheth Nuhu Ahmed

The primary purpose of this research is to examine the influence of perceived service quality (PSQ) on word-of-mouth (WOM) directly and through the mediating role of brand trust…

Abstract

Purpose

The primary purpose of this research is to examine the influence of perceived service quality (PSQ) on word-of-mouth (WOM) directly and through the mediating role of brand trust (BTR) and student satisfaction (SAT) at private universities located in the Turkish Republic of Northern Cyprus (TRNC).

Design/methodology/approach

A structured questionnaire and convenience sampling were utilized to collect data from 350 students enrolled in selected private universities in the TRNC. Data analysis was conducted using SmartPLS 4.

Findings

This study found that PSQ has a significant influence on WOM. BTR and SAT have a direct and significant effect on WOM. We also found that BTR and SAT mediate the link between PSQ and WOM.

Practical implications

These findings can serve as a guide for university administration to enhance the quality of services offered to students, as well as to enhance existing policies and procedures.

Originality/value

This paper’s originality lies in the use of cognitive-affective behavioural (CAB) to support the relationship between student perceptions of service quality, brand trust, student satisfaction and WOM.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

Keywords

Article
Publication date: 28 August 2024

Kithsiri Samarakoon and Rudra P. Pradhan

This study investigates the mispricing dynamics of NIFTY 50 Index futures, drawing upon daily data spanning from January 2008 to July 2023.

Abstract

Purpose

This study investigates the mispricing dynamics of NIFTY 50 Index futures, drawing upon daily data spanning from January 2008 to July 2023.

Design/methodology/approach

The study employs both a single regime analysis and a tri-regime model to understand the fluctuations in NIFTY 50 Index futures mispricing.

Findings

The study reveals a complex interplay between various market factors and mispricing, including forward-looking volatility (measured by the NIFVIX index), changes in open interest, underlying index return, futures volume, index volume and time to maturity. Additionally, the relationships are regime-dependent, specifically identifying the regime-dependent nature of the relationship between forward-looking volatility and mispricing, the impact of futures volume on mispricing, the effect of open interest on mispricing, the varying influence of index volume and the influence of time to maturity across the three distinct regimes.

Practical implications

These findings offer valuable insights for policymakers and investors by providing a detailed understanding of futures market efficiency and potential arbitrage opportunities. The study emphasizes the importance of understanding market dynamics, transaction costs and timing, offering guidance to enhance market efficiency and capitalize on trading opportunities in the evolving Indian derivatives market.

Originality/value

The Vector Autoregression (VAR) and Threshold Vector Autoregression Regression (TVAR) models are deployed to disentangle the interrelationships between NIFTY 50 Index futures mispricing and related endogenous determinants.

Research highlights

 

This study investigates the Nifty 50 Index futures mispricing across three distinct market regimes.

We highlight how factors like volatility, futures volume, and open interest vary in their impact.

The study employs vector auto-regressive and threshold vector auto-regressive models to explore the complex relationships influencing mispricing.

We provide valuable insights for investors and policymakers on improving market efficiency and identifying potential arbitrage opportunities.

Details

Managerial Finance, vol. 50 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 18 January 2024

Kléber Formiga Miranda and Márcio André Veras Machado

This study examines the investment horizon influence, mediated by market optimism, on earnings management based on accruals and real activities. Based on short-termism, the…

Abstract

Purpose

This study examines the investment horizon influence, mediated by market optimism, on earnings management based on accruals and real activities. Based on short-termism, the authors argue that earnings management increases in optimistic periods to boost corporate profits.

Design/methodology/approach

The authors analyzed non-financial Brazilian publicly traded firms from 2010 to 2020 by estimating industry-fixed effects of groups of short- and long-horizon firms to compare their behavior on earnings management practices during bullish moments. For robustness, the authors used alternate measures and trade-off analyses between earning management practices.

Findings

The findings indicate that, during bullish moments, companies prioritize managing their earnings through real activities management (RAM) rather than accruals earnings management (AEM), depending on their time horizon. The results demonstrate the trade-off between earnings management practices.

Research limitations/implications

This study presents limitations when using proxies for earnings management and investor sentiment.

Practical implications

Investors and regulators should closely monitor companies' operations, especially during bullish market conditions to prevent fraud.

Originality/value

The study addresses investor sentiment mediation in the earnings management discussion, introducing the short-termism approach.

Details

Journal of Applied Accounting Research, vol. 25 no. 5
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 25 October 2024

Shruti Singh and Anindita Chakraborty

This study aims to investigate the antecedents of social interaction among Indian retail investors and fund managers to understand how these factors influence investment…

Abstract

Purpose

This study aims to investigate the antecedents of social interaction among Indian retail investors and fund managers to understand how these factors influence investment decisions. By identifying and examining these antecedents, the study aims to shed light on the social dynamics that shape investment behavior in the Indian financial market.

Design/methodology/approach

The researchers have mainly adopted an interpretive strategy for the present study. Qualitative data elicited through semistructured interviews with six retail investors and two fund managers were subjected to qualitative thematic analysis.

Findings

Our research found several factors that make Indian retail investors and fund managers connect and make financial decisions. Peers can improve a person’s investing performance through social facilitation, and discussing investment suggestions and lessons learned can affect a group’s investment behavior. Social norms also influenced investors’ financial decisions, demonstrating compliance. Investor closeness increased information sharing. Finally, the fear of missing out (FOMO), a psychological phenomenon where people fear missing out on rewarding experiences, encouraged social engagement as investors sought appealing prospects.

Research limitations/implications

The researchers interviewed eight carefully selected interviewees across the divide between retail investors and fund managers. Adopting other grouping criteria, conducting a focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviors of Indian retail investors and fund managers.

Practical implications

The findings have far-reaching consequences, from deepening our knowledge of investors’ motivations and actions to directing individual savers, informing the development of financial literacy initiatives, influencing fund management practices and inspiring additional research in this study area.

Originality/value

This research, including retail investors and fund managers, significantly contributes to the literature on investment decisions and behavioral finance, particularly in the context of Indian investors and managers. This study’s unique perspective and comprehensive approach make it a valuable addition to the field, sparking interest and further exploration among academics, practitioners and investors alike.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

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