bluuebunny/crossref_metadata_2025_split huggingface dataset:
The impact of changes in firm performance and risk on director turnover
Authors: Asthana Sharad , Balsam Steven 
Published: August 2010

PurposeThe purpose of this paper is to show that director turnover varies in predictable and intuitive ways with director incentives.Design/methodology/approachThe paper uses a sample of 51,388 observations pertaining to 13,084 directors who served 1,065 firms during the period 1997‐2004. The data are obtained from RiskMetrics, Compustat, Execu‐Comp, CRSP, IBES, and the Corporate Library databases. Portfolio analysis, logit, and GLIMMIX regression analysis are used for the tests.FindingsThe paper provides evidence that directors are more likely to leave when firm performance deteriorates and the firm becomes riskier. While turnover increasing as firm performance deteriorates is consistent with involuntary turnover, directors are also more likely to leave in advance of deteriorating performance. The latter is consistent with directors having inside information and acting on that information to protect their wealth and reputation. When inside and outside director turnover is contrasted, the association between turnover and performance is stronger for inside directors.Research limitationsSince data are obtained from multiple databases, the sample may be biased in favor of larger firms. The results may, therefore, not be applicable to smaller firms. To the extent that the story is unable to differentiate between voluntary and involuntary director turnover, the results should be interpreted with caution.Originality/valueEven though extant research has looked extensively at the determinants of CEO turnover, little has been written on director turnover. Director turnover is an important topic to study, since directors, especially outside directors, possess a significant oversight role in the corporation.
The value relevance of a non‐GAAP performance metric to the capital markets
Authors: Albring Susan M. , Cabán‐García María T. , Reck Jacqueline L. 
Published: August 2010

PurposeThe study is driven by concerns raised by standard setters and others about the usefulness of performance reporting under generally accepted accounting principles (GAAP). Of primary interest is whether explicitly defining what information should be included in earnings results in an earnings measure that is more relevant than operating earnings computed according to current GAAP. The purpose of this paper is to explore whether reducing management discretion in the reporting of performance adds to the value relevance of the performance measures reported to capital markets.Design/methodology/approachThe value relevance of this non‐GAAP earnings measure is examined by estimating market valuation and returns models for 518 US firms included in the Standard & Poor's 500 Index over the time period 2002‐2007.FindingsResults show that the explicitly defined non‐GAAP measure used is significantly associated with equity market values and returns and is significantly more value‐relevant than the GAAP measure.Originality/valueThe paper contributes to accounting literature assessing the relevance of earnings in setting equity market value. More specifically, it provides evidence consistent with prior results that non‐GAAP performance measures are more useful in valuation than GAAP earnings. However, in contrast with prior studies, the more explicit performance measure the paper examines removes some of the classificatory discretion pervasive in other non‐GAAP earnings metrics.
The wealth effects of investing in information technology
Authors: Jory Surendranath R. , Peng Jacob , Ford Caroline O. 
Published: August 2010

PurposeSection 404 of the Sarbanes‐Oxley Act of 2002 (SOX 404) requires auditors to attest to, and report on, management's assessment and effectiveness of the company's internal control systems. This paper aims to examine investor reaction to companies' announcements of new information technology (IT) or improved existing IT to satisfy requirements of Section 404 of the Sarbanes‐Oxley Act of 2002.Design/methodology/approachUsing a sample of 124 SOX‐related IT announcements from 2003 to 2007, an event study measuring market reactions using average cumulative abnormal return is undertaken. Additionally, the cross‐sectional variation in the marketplace is analyzed to test the effect of firm‐specific factors on market responses.FindingsThe empirical results suggest that the stock market reacts favorably to corporations that invest in SOX 404‐related IT. The reaction is more favorable toward companies without prior reported internal control deficiencies/weaknesses. Additionally, the results marginally support the notion that firms with higher risk and poorer financial reporting quality can demonstrate their commitment to improve internal control over financial reporting by investing in IT for SOX 404 compliance.Originality/valueThe findings will influence companies' IT investment decisions, particularly IT decisions that are SOX Section 404‐related. Potential benefits of SOX 404 IT investments include favorable market returns. Additionally, the study contributes to a deeper understanding of SOX for standard‐setting and regulation bodies examining past rulings and preparing for future regulation.
The value impact of analyst coverage
Authors: Dhiensiri Nont , Sayrak Akin 
Published: August 2010

PurposeThe purpose of this study is to investigate the value of analyst coverage on the covered firms.Design/methodology/approachTo isolate the value impact of analyst coverage, the study focuses on a unique set of firms that receive analyst coverage for the first time after having been traded in an exchange for at least one year. Event study and ordinary least square regressions are used to test the hypotheses.FindingsThere is a significant and positive price reaction at the time of the announcement of analyst coverage initiations. However, unlike the coverage initiations around the initial public offers (IPOs), the price impact is not related to the reputation of the analyst firm, the exchange listing or whether the analyst firm is also the IPO underwriter. The sample firms do not experience significant reduction in the level of information asymmetry but experience a significant increase in liquidity. The increase in liquidity only occurs after the coverage initiations. The increase in liquidity is not explained by the increase in institutional investors' interest. Finally, the price impact around a coverage initiation is positively related to the change in liquidity.Practical implicationsThe findings suggest that firms benefit from analyst coverage through an improvement in liquidity.Originality/valueThis is the first study to focus on the analysts' first‐time coverage initiations. It argues that focusing on the first‐time coverage initiations provides a better analysis of the effects of analyst activities on the firm value.
Weather derivatives, price forwards, and corporate risk management
Authors: Wang Mulong , Wen Min‐Ming , Yang Charles C. 
Published: August 2010

PurposeThe paper aims to examine theoretically valuation of weather derivatives and their hedging roles in corporate risk management.Design/methodology/approachThe paper introduces an extended financial market model in which the weather risk is included as an independent random process and examines the effectiveness of weather derivatives and traditional price forwards in a unified theoretical framework. It also provides a no‐arbitrage approach to price weather derivatives, which theoretically combines the actuarial and financial paradigms.FindingsThe results document that corporate leverage level is an essential factor determining the choice between price forwards and weather derivatives. In some cases; weather derivatives outperform price forwards, while in some other cases; a joint use of both instruments is optimal, depending on the firm's risky leverage level. Interestingly, the paper identifies the case when the leverage level is very high, the positive roles of both instruments diminish and the firm is unhedgeable.Originality/valueThe paper provides important insights to investors and hedgers and extends the literature on corporate risk management.
Transferring home price risk to investors from individual borrowers
Authors: Sharma Dhruv 
Published: August 2010

PurposeThe purpose of this paper is to outline a new approach to risk management that will create an innovative marketplace mechanism to deal with risk.Design/methodology/approachThe paper discusses current risk management practice and proposes a novel new approach to risk management with an example.FindingsThis paper proposes the creation of a restructured mortgage product to transfer the home price volatility risk explicitly to investors and portfolio managers.Originality/valueThis paper proposes product innovation to transfer risk. The idea is original and is a conceptual viewpoint aimed at urging the industry to implement the concept. The recent credit crisis highlights the problem of unhedged home price volatility born by individual borrowers. As borrowers are not equipped to hedge this risk, it is important to restructure the mortgage to explicitly transfer the risk of home price volatility to investors and mortgage lenders.
Towards an integrative reflexivity in organisational research
Authors: Tomkins Leah , Eatough Virginia 
Published: August 2010

PurposeThe purpose of this paper is to offer a more integrative and inclusive conceptualisation of reflexivity as a way of identifying, understanding and managing some of the risks associated with reflexivity's potentially solipsistic “inward turn”.Design/methodology/approachThe paper draws on the authors' experience of empirical qualitative research with working carers. This experience is grounded within the traditions of interpretative phenomenology and critical epistemology.FindingsTwo reflexive risks: an unintended focus on researcher rather than participant; and process at the expense of substance are discussed and the first of these, reflexive narcissism, is associated with the recognition of biographical similarity between researcher and participant, and the second, a kind of reflexive “process‐ism”, with certain research designs involving meta‐reflection with participants on the research experience. The paper advocates the use of multiple reflexivities and an intrinsic sensibility to reflexive possibility throughout the duration of a research programme.Research limitations/implicationsThe paper offers an alternative model of reflexivity and some practical guidelines, which may be of value to researchers working across a range of different qualitative methodologies.Practical implicationsThe paper makes some preliminary observations about the phenomenon of the working carer, which may be of value to organisational practitioners.Originality/valueThe approach to reflexivity outlined in this paper helps to clarify some of the issues and difficulties associated with the reflexive thesis, and in particular, will help less experienced qualitative researchers to avoid some common pitfalls of reflexive practice.
Advancing a pragmatist epistemology in organisational research
Authors: Ruwhiu Diane , Cone Malcolm 
Published: August 2010

PurposeThe purpose of this paper is to explore the utility of a pragmatist epistemology as a viable methodological avenue for addressing the challenges associated with the normative models of science that dominate organisational management. At the same time, theorisation of a paradigm grounded in a pragmatic epistemology is presented.Design/methodology/approachThe paper seeks to explore the different assumptions guiding a pragmatist epistemology, based on the development of an alternative philosophic framework, such as an indigenous paradigm that draws its logic from a Māori worldview. In doing so, it counters the ideological tension created by the disjunction of applying an epistemological perspective that aligns with what we conceptualise as a mainstream Western view of knowledge creation and maintaining the integrity of taking an indigenous worldview.FindingsIn the paper, we argue that kaupapa Māori research, as an indigenous paradigm draws from a pragmatist epistemology, providing a platform for a culturally attuned response to mainstream organisational research.Originality/valueThe paper is of use to qualitative researchers, in and beyond indigenous contexts, as it grounded in a methodological approach that draws from a pragmatic epistemology offering insightful, more richly contextualised research avenues in organisation and management.
Understanding and meeting the needs of students from low socioeconomic status backgrounds
Authors: Ramburuth Prem , Härtel Charmine E.J. 
Published: August 2010

PurposeThe purpose of this paper is to highlight factors that facilitate or hinder the entry and academic achievement of students from low socioeconomic status into higher education, and facilitate understanding about how such students can be supported in their learning at university.Design/methodology/approachThe authors draw on the literature on social inclusion, social exclusion, social identity and education, and link key aspects to the access, participation and learning success of students from low socioeconomic status backgrounds in higher education.FindingsThe paper identifies socioeconomic factors that impact on student learning and provides a comprehensive framework for understanding, supporting and addressing the needs of students from the target group.Practical implicationsThe findings and discussion will contribute to the knowledge and teaching resource base required for institutions, academic and support staff to formulate and implement effective strategies for increased participation in higher education by students from low socioeconomic status backgrounds.Originality/valueMost discussion and research on social inclusion and exclusion tends to relate to factors that lead to social disadvantage in general, but there is a growing need to consider the disadvantage in terms of access to higher education and the creation of learning opportunities that lead to success and educational advancement.
Integrating geospatial technologies, action research, and curriculum theory to promote ecological literacy
Authors: Agnello Mary Frances , Carpenter Penny 
Published: August 2010

PurposeThe purpose of this paper is to examine and report on the impact of integrating geospacial technology and ecological literacy into an educational leadership Master's class block comprised of action research and curriculum theory.Design/methodology/approachAction and teacher research informed by environmental issues framed an action research and curriculum theory course block in a Master's Educational Leadership program. A phenomenological study captured what transpired at a rural campus in Summer 2009. Teachers in Cohort VII investigated environmental relationships through observation, data collection, and analysis. The use of geospatial technologies built on place‐based educational pedagogies through the experience of kayaking on the Llano River to examine ecological social contexts as they relate to environmental issues.FindingsData reveal great interest in geospatial technologies but need for more professional development.Practical implicationsThis action research engaged future school administrators in considering how to integrate spatial technology building on local geographic resources to enhance ecological literacy.Originality/valueResearch in the area of education administrators and public school students utilizing geospatial technology is very limited. The value added to the curriculum with geospatical technology is embraced by the masters students. They also began to comprehend how environmental literacy, as well as outdoor educational experiences, can be integrated into the school curriculum effectively.
Online advertising effectiveness: a cross‐cultural comparison
Authors: Brettel Malte , Spilker‐Attig Andrea 
Published: August 2010

PurposeThe internet has gained enormous importance as an advertising medium. At the same time, the question of marketing accountability has become one of the top areas of research for researchers and practitioners who aim at optimal marketing budget allocations. This paper aims to show that national culture has an impact on how consumer behavior is influenced by online advertising.Design/methodology/approachThe paper compares the effectiveness of internet advertising in the USA and France by analyzing a real data sample with more than 1.2 million transactions using partial least squares and structural equation modeling.FindingsIt is found that on‐demand channels have a stronger effect on short‐term success than push‐channels and that this effect is strongly moderated by the culture. It is recommended that spending and efforts in the various advertising channels be adjusted to reflect the product offered and the customers to whom it is offered, as customers in both countries should be targeted by advertising in different ways. The channel effectiveness of affiliate price comparison sites and search engines has significantly different impacts on customer behavior in the USA and France.Originality/valueUntil now, most companies have utilized a suboptimal allocation of resources to advertising channels because of missing and misleading data. Focusing on this problem, the paper suggests that advertisers apply the methodology to identify the total effect of clicks in each advertising channel. Combining these total effects with the associated costs allows practitioners to optimize their online advertising spending.
E‐formity: consumer conformity behaviour in virtual communities
Authors: Park JungKun , Feinberg Richard 
Published: August 2010

PurposeThe paper aims to explore the structure of both normative and informational consumer conformity in an online virtual community. The purpose of this paper is to develop and test a conceptual model of e‐formity in virtual communities.Design/methodology/approachData were collected online from consumers who belonged to at least one virtual community. A total of 2,000 customers were drawn from a list of online consumer panels maintained by an online research company. Overall, 14.8 percent of those invited replied to the survey and were analyzed with structure equation modelling.FindingsThe results from the analysis indicate that both dimensions of conformity are distinct and have separate antecedents. Normative consumer conformity is influenced by internal consumer characteristics, whereas informational consumer conformity is related to external virtual community characteristics.Research limitations/implicationsAlthough this paper found evidence for e‐formity, the full nature and scope of e‐formity must be held to the classic findings of experimental versions of conformity research. There are broad implications for e‐formity in consumer behaviour and retailing. Retailers or manufacturers must realize that virtual communities and consumers' e‐formity behaviour are a valuable source of helping or hurting the sale and promotion of their products.Practical implicationsAt the very least, the influence of e‐formity suggests that it is crucial for them to monitor closely the purposeful and nonpurposeful influences these virtual communications may have.Originality/valueGiven the scarcity of literature in the online conformity research area, this paper shows conformity in virtual communities does not change its influences on consumers' behaviour. As in the studies of traditional communities, e‐formity has found influence on virtual communities within two aspects. Virtual communities not only have inherited the social functions of traditional communities, but also have differences in antecedents.
Sources of brand equity for online companies
Authors: Rios Rosa E. , Riquelme Hernan E. 
Published: August 2010

PurposeThe purposes of this paper are to test sources of brand equity for online companies and to examine the role of selective internet marketing activities on the brand equity sources.Design/methodology/approachThese objectives were pursued by testing the nomological validity of the model using structural equation modelling.FindingsThe paper finds evidence for the proposed sources of brand equity for online companies based on brand awareness and recognition, brand association (trust) and loyalty. The investigated antecedents namely functionality, fulfilment and customer service on line, significantly influence the sources of brand equity.Research limitations/implicationsThe study is cross‐sectional, the dimensions to measure sources and antecedents of brand equity may not be comprehensive enough. The stimuli represent only a few online retailers.Practical implicationsBusinesses are well advised to invest resources in creating brand recognition, customer loyalty and trust. Both of these can be achieved by developing internet marketing efforts around functionality, fulfilment of the promise and customer service support.Originality/valueThe nomological validity of the measurement and structural models for companies that operate on the internet, constitute a modest contribution. It is believed that a model, which integrates both, creates a more systemic view of brand equity. Apart from this one, there is no other study measuring the impact of internet marketing activities on brand equity sources.
E‐service quality perceptions: a cross‐cultural comparison of American and Korean consumers
Authors: Kim Jung‐Hwan , Kim Chungho 
Published: August 2010

PurposeThe purpose of this paper is to compare the e‐service quality perceptions of US and South Korean consumers in relation to overall e‐service quality, e‐satisfaction, and e‐loyalty to understand geographic and cultural differences in relation to the international expansion of e‐business.Design/methodology/approachThe data for the study were collected from college‐age internet users in the USA and Korea. A total of 361 questionnaires were deemed as usable for data analysis. Regression analyses were used to test the conceptual model.FindingsPrivacy and efficiency significantly affected overall e‐service quality and e‐satisfaction for respondents in both Korea and the USA. As for Korean respondents, system availability and fulfillment were significant factors that affected overall e‐satisfaction. The relationships among overall e‐service quality, e‐satisfaction, and e‐loyalty were positively significant between the two countries.Practical implicationsUsing two sets of data from the USA and Korea, the paper examined important e‐service quality dimensions in producing overall e‐service quality and e‐satisfaction which in turn influence e‐loyalty based on respondents' actual shopping experience. The dimensions identified in the study are based on a full assessment of an e‐service experience. Global e‐retailers can use the dimensions identified by the paper to better assess their service performance on an international level.Originality/valueThe paper is unique in that it is one of the first cross‐cultural examinations of how consumers in two different countries perceived e‐service quality using e‐SQ scale developed by Parasuramanet al.