Showing papers in "Journal of Applied Business Research in 2012"
TL;DR: In this article, a systematic and structured review of literature provides insights into the conceptualization and research methodological background of the SCM field, and a critical examination of existing conceptual frameworks for understanding the relationships between the SCRes concept and its identified formative elements, is taking place.
Abstract: The objective of this paper is to conceptualize Supply Chain Resilience (SCRes) and identify which supply chain capabilities can support the containment of disruptions and how these capabilities affect SCRes. Through a systematic and structured review of literature, this paper provides insights into the conceptualization and research methodological background of the SCM field. A total of one hundred and thirty four carefully selected refereed journal articles were systematically analyzed leading to the introduction of a novel definition for SCRes, which the authors view as the as the ability to proactively plan and design the Supply Chain network for anticipating unexpected disruptive (negative) events, respond adaptively to disruptions while maintaining control over structure and function and transcending to a post-event robust state of operations, if possible, more favorable than the one prior to the event, thus gaining competitive advantage. Finally, a critical examination of existing conceptual frameworks for understanding the relationships between the SCRes concept and its identified formative elements, is taking place.
243 citations
TL;DR: In this paper, the potential effects of Islamic banking on economic growth are investigated and it is shown that Islamic banking positively contributes to country's macroeconomic stability and that Islamic banks are a main channel of economic growth.
Abstract: Many previous studies have focused on the impact of finance on economic growth. However, few studies have examined the impact of Islamic banking on economic growth. To fill this gap in literature, this paper investigates the potential effects of Islamic banking on economic growth. The paper has two main results. The first result is that previous studies show mixed support for the hypothesis that Islamic banking is a main channel of economic growth. The second result is that previous studies on the impact of Islamic banking on growth are single-country studies and their findings are difficult to generalize. In addition, the results of this paper point to several implications for policy. One of its implications for policy is that Islamic banking positively contributes to countrys macroeconomic stability.
62 citations
TL;DR: In this article, the authors analyze whether there is a significant difference among widely used Higgins model and Van Horne model and whether these two competing sustainable growth rate models (SGR) estimate divergences in ways that are systematically related to variations in common financial characteristics.
Abstract: The objectives of this paper are to analyze whether there is a significant difference among widely used Higgins model and Van Horne model and whether these two competing sustainable growth rate models (SGR) estimate divergences in ways that are systematically related to variations in common financial characteristics. We find that Higgins SGR when used as continuous and dichotomous variables is more affected by variations in financial characteristics than Van Hornes model. This study confirms that Higgins and Van Hornes models are qualitatively and approximately the same in relation to most common financial characteristics of a firm. However, if the Higgins model is used to compute SGR, it would give higher SGR for more profitable firms than Van Hornes. A firm with higher leverage is given higher SGR in Van Hornes than Higgins. Variations of liquidity, debt maturity and financial distress are trivial in economic sense. Finally, we find that the both Higgins and Van Hornes models result in approximately same (less than 4%) loss in sample size and not induce more sample-selection bias. We suggest that Higgins and Van Hornes models are equally preferable from both the managers and researchers point of view.
58 citations
TL;DR: In this paper, the influence of audit committee personal characteristics on the firms earnings management behavior using Chinas publicly traded firms during 2004-2010 was investigated, which indicated that audit committees several personal characteristics, such as age, gender, education level, and working experience, are associated with earnings management.
Abstract: This study investigates the influence of audit committees personal characteristics on the firms earnings management behavior using Chinas publicly traded firms during 2004-2010. Overall, our findings suggest that audit committees several personal characteristics, such as age, gender, education level, and working experience, are associated with earnings management, which in turn may affect the quality of financial reporting. The results are robust after controlling the size, independence, meeting frequency of audit committee, and other firm specific characteristics. The results are consistent with the predictions based on the Upper Echelons Theory. The contributions to the earnings management literature and implications for regulators and investors are also discussed.
54 citations
TL;DR: In this article, the authors investigated the macroeconomic determinants of stock market prices in Namibia using a VECM econometric methodology and revealed that Namibian stock market price is chiefly determined by economic activity, interest rates, inflation, money supply and exchange rates.
Abstract: This paper investigates the macroeconomic determinants of stock market prices in Namibia. The investigation was conducted using a VECM econometric methodology and revealed that Namibian stock market prices are chiefly determined by economic activity, interest rates, inflation, money supply and exchange rates. An increase in economic activity and the money supply increases stock market prices, while increases in inflation and interest rates decrease stock prices. The results suggest that equities are not a hedge against inflation in Namibia, and contractionary monetary policy generally depresses stock prices. Increasing economic activity promotes stock market price development.
39 citations
TL;DR: In this paper, an exploratory study utilizes a sample of Saudi Arabian firms' managers to assess the extent of their awareness of CSR, its role within their organizations, and extent of integration in their corporate policies, and the nature and scope of these firms' CSR activities.
Abstract: There is an increasing recognition within the developed economies across the world that today, CSR is not an optional extra; i.e., firms can no longer look at CSR as a luxury or an indicator of their goodwill toward society. Firms, in today’s context, are seeking to integrate CSR in their corporate policies and strategies. Developing countries’ firms, however, are still in the early stage of their awareness and integration of CSR activities within their corporate policies and strategies. The present exploratory study utilizes a sample of Saudi Arabian firms’ managers to assess the extent of their awareness of CSR, its role within their organizations, the extent of CSR integration in their corporate policies, and the nature and scope of these firms’ CSR activities. Results indicate that there is a reasonable level of CSR awareness as well as a moderately positive attitude toward the concept. However, most CSR activities in Saudi Arabia seem to focus on the local communities in which these firms operate. Discussion of the results and their implications are provided.
39 citations
TL;DR: In this paper, the authors discuss issues related to lookism and lookphobia as a real challenge for managers who are recruiting, attracting, interviewing, hiring, appraising, and promoting employees.
Abstract: This article focuses on appearance and attractiveness discrimination in the American workplace. As such, this article discusses issues related to lookism and lookphobia as a real challenge for managers who are recruiting, attracting, interviewing, hiring, appraising, and promoting employees. The article provides a discussion of societal norms concerning attractiveness, the existence of appearance discrimination in employment, the presence of preferring the pretty, and then the authors examine important civil rights laws that relate to such forms of discrimination. Finally, recommendations for employers and managers are provided for fair and non-discriminatory hiring and promotional practices.
37 citations
TL;DR: In this article, the determinants of corporate web-based investor relations (IR) activities for companies listed on Amman Stock Exchange were examined using a multi-theoretical approach.
Abstract: Using a multi-theoretical approach, this study seeks to examine the determinants of corporate web-based investor relations (IR) activities for companies listed on Amman Stock Exchange. Jordan provides an interesting context to pursue the objectives of this study because it provides insights into how listed companies are voluntarily responding to recent government and financial market regulators’ initiatives to encourage the use of the internet and to keep financial market participants informed about corporate activities. A survey analysis is conducted to examine online reporting practices of Jordanian listed companies. The explanatory analysis relies on logistic, ranked and normal scores ordinary least squares (OLS) regression analyses and identifies ten explanatory variables that may affect the existence and level of web-based IR disclosure; company size, profitability, government ownership, institutional ownership, number of shareholders, growth prospects, age, industry type, auditor type, and equity need. Results reveal that the existence of web sites is positively related to company size and industry (Financials) while the extent of webbased IR disclosure is significantly positively related to size, governmental ownership, institutional ownership, number of shareholders, and industrial type (Financials); however, it is negatively related to company age.
35 citations
TL;DR: In this article, the authors propose a conceptual and normative framework for reputation continuity, which enhances the ability of organizations to preserve their reputation, instead of working for its recovery in the post-crisis period.
Abstract: As Corporate Reputation (CR) evolves into an important asset for organizations, crises, disasters and other supply chain disruptive events, stand as threats to the preservation of the reputation capital since they usually result to negative projections to their audiences and to problematic evaluations by their stakeholders. Viewing CR as the accumulated trust and positive evaluations of the stakeholders, this paper proposes a conceptual and normative framework for Reputation Continuity, which enhances the ability of organizations to preserve their reputation, instead of working for its recovery in the post-crisis period. In our approach, we propose a process of maintaining trusted links, instead of restoring them and establishing a reputation resilient organization, instead of one struggling to recover from reputation losses, after the crisis has emerged. Working closely with stakeholders during the crisis, injecting a sense of normality continuity through effective leadership and mitigating image problems are seen as critical concerns, alongside a set of managerial practices to be followed. Ultimately, it is argued that, the value-based and strategically integrated view of Business Continuity must be enhanced and supported by Reputation Continuity activities.
29 citations
TL;DR: Triple bottom-line reporting (TBL) as mentioned in this paper was coined by John Elkington in his 1997 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business, which aims to explicitly consider not only the economic performance of a firm but also the companys environmental and social performance as well.
Abstract: Organizations struggle to tell their stories, to communicate the good - and sometimes the bad - they do in the marketplace, in the community, to and for the environment, and in society. Quite clearly, the challenge of telling the companys story is not being met by current corporate reporting practices. In particular, criticism has been directed at the failure of annual reports or other regulatory filings to tell anything about a company's environmental and social performance. Triple bottom-line (TBL) reporting, a term coined by John Elkington in his 1997 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business, aims to remedy this shortcoming by explicitly considering not only the economic performance of a firm but also the companys environmental and social performance as well. This article gives an overview of the TBL concept and how it is changing the way in which corporations tell their story.
27 citations
TL;DR: The goal of extending the Competitive Profile Matrix using the forced ranking of important organizational factors when evaluating an organization’s relative competitive position against major competitors was successfully realized.
Abstract: Internal Factor Evaluation and External Factor Evaluation matrices allow an organization to visualize their strengths, weaknesses, opportunities, and threats while a Competitive Profile Matrix utilizes critical success factors to allow an organization to compare itself to other competitors. The authors wondered if substituting basic internal strengths and weaknesses categories, and external opportunities and threats classifications for the conventional CSFs in a forced ranking method could extend the Competitive Profile Matrix to allow additional strategic understanding. The goal of extending the Competitive Profile Matrix using the forced ranking of important organizational factors when evaluating an organization’s relative competitive position against major competitors was successfully realized. An External Competitive Profile Matrix (ECPM) and an Internal Competitive Profile Matrix (ICPM) better draw awareness to internal and external categories that need an organization’s attention.
TL;DR: In this paper, the effect of CSR disclosure and MO on firm performance was examined based on content analysis of 242 Malaysian public listed companies � annual reports for 2006, 2007 and 2008.
Abstract: This study examines the effect of CSR disclosure and MO on firm performance as well as the mediating effect of CSR on the relationship between MO and firm performance. These relationships are examined based on content analysis of 242 Malaysian public listed companies � annual reports for 2006, 2007 and 2008. Results of this study provide evidence that CSR activities communicated in corporate annual reports are important business strategy in creating continuous superior performance for organisations. The results also indicate that MO companies are integrating CSR activities into their business strategies. However, the insignificant mediating effect of CSR on the relationship between MO and firm performance indicates that MO and CSR strategies have not been effectively integrated in creating a synergistic effect that can bolster firm performance. Overall, findings in this study indicate the strategic value of CSR in creating economic sustainability for organizations even in an environment characterised by concentrated ownership structure where the companies may be less market focused.
TL;DR: In this article, the authors found that when employees feel that under-fulfillment of psychological contract occurs, they may leave the organization or the current job for one another by in the same organization, but did not consider leaving the profession.
Abstract: Empirical research supports the idea that the perception of under-fulfillment of psychological contract (ie, breach and violation) increases the willingness to leave the employer via turnover cognitions (ie, available alternatives and search a job) Further research indicates that employee turnover is not only restricted to the notion of an employee leaving an employer to join another employer To go beyond this restriction, data were collected among a sample of professional employees The results suggest that when employees feel that under-fulfillment of psychological contract occur, they may leave the organization or the current job for one another by in the same organization, but did not consider leaving the profession Findings are discussed in light of relevant literature
TL;DR: In this article, the authors examined the impact of inflation on financial development in Zambia during the period between 1980 and 2011 and found that there is a distinctively negative relationship between inflation and financial development.
Abstract: This study examines the impact of inflation on financial development in Zambia during the period between 1980 and 2011. The study attempts to answer two critical questions: 1) Is there a longrun relationship between inflation and financial sector development in Zambia? 2) Does inflation in Zambia have any negative effect on financial sector development? The study uses the recently developed ARDL-bounds testing approach to examine this linkage. In order to address the problem of omission of variable bias, the study incorporates other variables, such as government expenditure, trade volume and GDP per capita in the financial development model, alongside inflation – thereby, creating a simple multivariate model. Using the domestic credit to the private sector as a proxy for financial development, the study finds that there is a long-run relationship between inflation and financial development in Zambia. The study also finds that there is a distinctively negative relationship between inflation and financial development. The results apply, irrespective of whether the model is estimated in the short run or in the long run.
TL;DR: In this article, the authors examined the relative performance of a number of popular measures in predicting stock returns and to test the relative efficacy of a hybrid approach using a panel of investor sentiment measures, which combines direct and indirect sentiment measures.
Abstract: Recently, investor sentiment measures have become one of the more widely examined areas in behavioral finance. A number of measures have been developed in the literature without having been fully validated, and therefore leaving in question which measure should be used for empirical exploration. The purpose of this study is to examine the relative performance of a number of popular measures in predicting stock returns and to test the relative efficacy of a hybrid approach. Using a panel of investor sentiment measures, we develop a new measure of sentiment which combines direct and indirect sentiment measures. Our results show that our composite sentiment index affects the returns of stocks hard to value and difficult to arbitrage consistent with the predictions of noise trader’s models. Finally, we find that our composite index has a better predictive ability than the alternative sentiment measures largely used in the literature.
TL;DR: In this paper, the authors argue that distributive justice may influence employees' job satisfaction through social exchange, and they develop a moderatedmediation model of the psychological processes linking distributive fairness and job satisfaction and test it on a sample of 101 employees working in 27 non-profit organizations.
Abstract: We argue that distributive justice may influence employees' job satisfaction through social exchange. Based on social exchange and organizational justice theories, we develop a moderatedmediation model of the psychological processes linking distributive justice and job satisfaction and test it on a sample of 101 employees working in 27 small non-profit organizations. Results of hierarchical regressions analyses provide support for the model. We found that distributive justice was positively related to job satisfaction and also that perceived organisational support mediates this relationship. We further found that group commitment moderated the relationship between perceived organisational support and job satisfaction and that this interaction effect, in turn, mediates the distributive justice – job satisfaction relationship.
TL;DR: In this article, a MANOVA analysis is conducted to examine the relationship between the calculated transparency levels and financial ratios and the results reveal that transparency level has statistical differences among the group means of return on asset, total debt/ total assets, long-term debt / total assets and corporate governance index variables.
Abstract: Even though several years have passed since the large corporate scandals of 2001 and 2002, corporate governance continues to remain an area of concern and focus in the global economy, and especially in the emerging markets. Corporate governance refers to the quality, transparency, and dependability of the relationships between the shareholders, board of directors, management, and employees that define the authority and responsibility of each in delivering sustainable value to all the stakeholders. The importance of the issue has been growing at an international level and the quality of corporate governance practices, which is deemed to be as important as financial performance in investment decisions, has become a subject of more serious consideration. In recent years the issue of corporate governance and their impacts on corporate performance have continued to gain widespread prominence in the capital market economy. Higher compliance with the corporate governance standards means more accountable and transparent companies for investors. In this framework, firstly, the transparency levels of financial information disclosures in corporate governance reports and annual reports are calculated by establishing a transparency checklist for the year 2010. MANOVA analysis is conducted to examine the relationship between the calculated transparency levels and financial ratios. The results reveal that transparency level has statistical differences among the group means of return on asset, total debt / total assets, long-term debt / total assets and corporate governance index variables.
TL;DR: Wang et al. as discussed by the authors examined the relationship between the leaders big five personality traits and upward trust with 274 respondents in Chinese culture and found that extraversion and Neuroticism have negative influence on upward trust, Agreeableness impact is insignificant, Conscientiousness has a positive influence and Openness to experience has a negative impact on affect-based trust.
Abstract: Scholars have researched trust for many decades and almost the entire body of empirical research on how personality traits affect upward trust is based on studies conducted in countries other than China. Taking an inductive approach, we examined the relationship between the leaders big five personality traits and upward trust with 274 respondents in Chinese culture. The empirical results confirm that Extraversion and Neuroticism have negative influence on upward trust, Agreeableness impact is insignificant, Conscientiousness has a positive influence and Openness to experience has a negative impact on affect-based trust. Results suggested that the degree to which the leaders big five personality traits affect upward trust differs from that of the West.
TL;DR: In this paper, the authors investigated the relationship among demographic characteristic, cultural values, and travel motivations in regards to understanding the context of tourist's motivation and how cultural values impact the travel motivation.
Abstract: The purpose of this study was to investigate the relationship among demographic characteristic, cultural values, and travel motivations in regards to understanding the context of tourist’s motivation and how cultural values impact the travel motivation. The study was limited to the tourists who came to the attractive city of Chiang Mai during the research time period. The results indicated that demographic characteristic is a source of cultural values and cultural values impact the travel motivations of the tourists. Also, no significant relationship was found between demographic characteristic and travel motivations. Data analysis and implications are discussed and recommendations are provided.
TL;DR: In this paper, the effect of visual merchandising displays on consumer perceptions was investigated and evaluated in a focus group and a naive sketch-based study, and the main conclusions that can be drawn from this research are that the perceptions of visual product displays are subliminal in creating an interest and desire to further peruse the merchandise and aesthetically to beautify the store.
Abstract: Retailing per se has been with us since the beginning of time. Over the years retailing methods and techniques have been adapted and changed in order to meet the demands of the market. In the same way the in store activities aimed at the consumer has been evolving and changing. At first the focus was on merchandising per se, but even merchandising has become more focussed and professional and specialised. This has led to this study focussing on visual merchandising and its effect – or not - on consumer spending. Much has been said about visual merchandising displays and the effect it has on consumer perceptions. Consumers’ perceptions towards visual merchandising displays are investigated and evaluated in this study. The primary research question that was posed in this study was to determine the effect of visual merchandising displays on consumer perceptions. Explorative research was performed and qualitative data were collected by means of focus groups and naive sketches. The data was analysed by means of a thematic analysis process. The main conclusions that can be drawn from this research is that the perceptions of visual merchandising displays are subliminal in creating an interest and desire to further peruse the merchandise and aesthetically to beautify the store.
TL;DR: In this paper, an online survey questionnaire was used to gather information about accountants and auditors level of knowledge of XBRL and their perceptions about the importance of providing assurance and the level of assurance needed.
Abstract: The purpose of this study is to gather information about accountants and auditors level of knowledge of XBRL and their perceptions about the importance of providing assurance and the level of assurance needed. An online survey questionnaire was used to gather data from CPAs at all levels of experience and was open from December 2009 through February 2010. The survey gathered information about the participants level of knowledge and awareness about XBRL, and their perceptions about the importance, relevance, and need for assurance on XBRL financial information. The results suggest that accountants and auditors believe that assurance on XBRL financial statements is important and will improve the accuracy and reliability of the XBRL tagged financial statements. Participants were also asked to rank the importance of assurance criteria on XBRL financial statements such as assurance on the accuracy, completeness, existence, proper taxonomies, proper extensions, valid extensions and validity and well-formedness. The results show that participants ranked assurance on the accuracy and completeness assertions as being most important and assurance on validity and well-formedness being the least important. The findings have important implications for the audit profession, as the implementation of XBRL has the potential to not only expand the role of the auditor to include auditing their clients application of XBRL tags, but might also influence the cost and time involved to conduct audit services.
TL;DR: In this article, the impact of environment friendly practices on restaurants in attracting customers was examined empirically through empirical analysis and it was shown that the dimension Sustainability is easily identified by the customers and does bring customers back to the restaurants.
Abstract: This paper empirically examines the impact of environment friendly practices on restaurants in attracting customers. The restaurant industry is witnessing the green movement. Restaurant owners adopt green practices to their properties with the purpose of creating a distinctive image that can differentiate them from their competitors. Therefore, restaurateurs strive to get this competitive advantage by introducing green practices into their restaurants. However, little research has been done in the service sector to prove whether or not organic and sustainable service businesses such as restaurants can have a competitive advantage based on the organic and sustainability factors alone. The purpose of this research is to unfold these relationships through empirical analysis. The results of this research show that the dimension Sustainability is easily identified by the customers and does bring customers back to the restaurants. The results also indicate that restaurant industry need to do better job in creating awareness among their customers about the environment friendly practices used in their businesses.
TL;DR: Wang et al. as mentioned in this paper examined the impact of political connection on family-controlled listed firms' philanthropic giving activities toward the 2008 Wenchuan Earthquake in China, and stock price reactions to such activities.
Abstract: This paper examines the impact of political connection on family-controlled listed firms’ philanthropic giving activities toward the 2008 Wenchuan Earthquake in China, and stock price reactions to such activities. Using the 542 Chinese listed companies controlled by private owners as the sample, it was found that firms with political connection are more likely to donate. Besides, focusing on the 244 donating firms, it was found that there is a positive impact of the donation amount on stock price response. What’s more, the positive stock price reactions toward the donation announcement made by firms with political connection are not as strong as that of firms without such connection. Regression results indicate that although family-controlled firms with political connection are more likely to donate, their activities can not generate as much positive stock price effect as their no-political connection counterparts. These results reveal that both political interferences and market mechanisms have critical impact on corporate philanthropic behavior in China.
TL;DR: In this article, the authors examined the use of capital budgeting and cost of capital estimation methods in Swedish listed companies in 2005 and 2008 and investigated the relation between company characteristics and choice of methods, and both within-country longitudinal and cross-country comparisons are made.
Abstract: In this paper Swedish listed companies’ use of capital budgeting and cost of capital estimation methods in 2005 and 2008 are examined. The relation between company characteristics and choice of methods is investigated and both within-country longitudinal and cross-country comparisons are made. Larger companies seem to have used capital budgeting methods more frequently than smaller companies. When compared to U.S. and continental European companies, Swedish listed companies employed capital budgeting methods less frequently. In 2005 the most common method for establishing the cost of equity was by asking the investors what return they required. By 2008 CAPM was instead the most utilised method, which could indicate greater sophistication. The use of project risk when evaluating investments also seems to have gained in popularity, while the use of company risk declined. Overall, the use of sophisticated capital budgeting and cost of capital estimation methods seem to be rising and the use of less sophisticated methods declining.
TL;DR: In this article, the authors examine three situations in the accounting/auditing profession in which conflicts of interest arise and conclude that these three inherent conflicts are likely to persist within the auditing profession.
Abstract: In this paper, we critically examine three situations in the accounting/auditing profession in which conflicts of interest arise. Specifically, we describe conflicts of interest that occur (1) because audit fees are paid by the very companies being audited, (2) due to the tension built into accountants’ codes of professional ethics between the responsibility to maintain client confidentiality and the need to serve the public trust, and (3) because of most auditors’ perspective of who is their primary client. Based on our analysis, we conclude that these three inherent conflicts of interest, in the absence of some unforeseen revolutionary changes, are likely to persist within the auditing profession. We also conclude that attempts to mitigate some of these conflicts of interest through the Sarbanes-Oxley legislation have only been moderately successful. We therefore propose that audit professionals must learn to identify and manage the conflicts of interest that will likely remain a part of the profession for the indefinite future.
TL;DR: In this paper, the authors investigated whether segment reconciliation differences affect stock prices and whether abnormal returns can be earned using information about two components of earnings: aggregated segment earnings and segment earnings reconciliations.
Abstract: While SFAS No. 131 is intended to increase the transparency of financial reporting using a “management approach,” it may reduce shareholders’ ability to interpret segment disclosures relative to the ‘industry approach’ employed under SFAS No.14. This study investigates whether segment reconciliation differences affect stock prices and whether abnormal returns can be earned using information about two components of earnings: aggregated segment earnings and segment earnings reconciliations. We compute reconciliations as the difference between firm-level consolidated earnings and aggregated segment-level earnings. Firms that report negative SERs have greater sales and profitability, greater return on equity, as well as more operating cash flows and firm growth. This suggests that firms that report aggregated segment earnings greater than firm-level consolidated earnings may be better off financially. Our findings show that mispricing does occur when firms report positive SERs by the market, underestimating the segment earnings reconciliation component of earnings persistence. Investors can also earn positive abnormal returns when investors take a long (short) position with the portfolio with the highest (lowest) absolute SERs. On the contrary, we find investors earn negative abnormal returns when firms report negative SERs. Collectively, this study provides evidence that mispricing occurs and that investors over/underestimate the importance and/or persistence of segment earnings reconciliations.
TL;DR: In this paper, the authors investigated the factors explaining the franchisor's choice between single-unit and multi-unit franchising based on agency theory and transaction cost theory, and examined the impact of behavioral uncertainty due to shirking and free-riding, franchisees' transaction-specific investments, and environmental uncertainty on the choice of multiunit Franchising.
Abstract: This study investigates the factors explaining the franchisor’s choice between single-unit and multi-unit franchising based on agency theory and transaction cost theory We examine the impact of behavioral uncertainty due to shirking and free-riding, franchisees’ transaction-specific investments, and environmental uncertainty on the franchisor’s choice of multi-unit franchising Our empirical results from the German franchise sector provide strong support of the transaction cost hypotheses and relatively weak support of the agency-theoretical hypotheses This study contributes to the literature by showing that the transaction cost explanation complements the agency cost explanation of multi-unit franchising
TL;DR: In this article, a self-administered survey was conducted whereby questionnaires were handed to restaurant patrons with the restaurant bill folder, and criteria were developed for excellent customer service which can be used as a benchmark for establishing relationships with customers.
Abstract: With the remarkable growth and economic contributions of the services industry, companies are finding that they need to focus on service to keep up with rising customer expectations and to compete effectively. Thus excellent customer service in a restaurant has the potential of differentiating the restaurant from competing ones and could lead to creating a competitive advantage. Thus, if a restaurant becomes well known for its superior customer service, this can be used as a way of outmanoeuvring competing restaurants. This article examines customer service in selected restaurants in the Tshwane area. It is aimed at establishing criteria for excellent customer service in restaurants, which can serve as the basis for building good relationships with customers. An empirical study was conducted to namely to investigate customer service in selected restaurants in the Tshwane Area, with the aim to establish criteria for excellent customer service as a benchmark for establishing relationships with customers, by means of an exploratory study. A self-administered survey was conducted whereby questionnaires were handed to restaurant patrons with the restaurant bill folder. Based on the research results, criteria were developed for excellent customer service which can be used as a benchmark for establishing relationships with customers, by providing customer satisfaction, which leads to customer retention, loyalty and ultimately profitability for an organisation.
TL;DR: In this paper, the authors investigated the contribution of each component of the leadership competency construct through constructing a model incorporating secondary order confirmatory factor analysis and extrapolated to the Kingdom of Thailand.
Abstract: In this study, the researchers investigate the contribution of each component of the leadership competency construct through constructing a model incorporating secondary order confirmatory factor analysis and extrapolated to the Kingdom of Thailand. Developed by Eyde et al (1999) in 1998 this leadership competency model is extrapolated to Thailand and examined for fit. Structural equation modeling (SEM) was used to test the research hypotheses framed for this investigation. The findings support the notion that leadership bears a significant relationship with the competencies of leading change, results driven, leading people, building coalitions/communication and business acumen. The good leader should be able to display these competencies as a coherent ensemble. Thus, it can be said that this study provides excellent guidance to human resource managers, teachers, other educators, researchers and managers striving to develop a competitive firm and organization in the current global business environment.
TL;DR: In this paper, the authors investigate the determinants of managers' segment financial reporting choices and find that firms with higher agency costs and greater accruals are less likely to report segment-to-firm level reconciliations.
Abstract: Under SFAS No. 131, a company is required to provide a reconciliation of the total of the reportable segments profit or loss to the firms consolidated income. This paper investigates these segment disclosures and related determinants of managers segment financial reporting choices. We focus on managers decisions to report segment-to-firm level reconciliations (i.e., segment reconciliations (SERs)) differences between firm-level and aggregated segment-level earnings. On average, we find that SERs are significant when the differences are not equal to zero. Firms with higher agency costs and greater accruals are less likely to report segment reconciliations. However, firms that have a greater number of segments, larger firms, and firms with higher leverage, losses, and greater earnings volatility are more likely to report SER?0. Consistent with managers having some segment reporting discretion, our overall findings suggest a managers segment reporting choice is partly driven by agency costs. Interestingly, among firms with reported segment reconciliations, firms with higher agency costs are more likely to report positive SERs. Consequently, this study documents a relation between proxies for agency costs and managers decisions to report segment reconciliations. Policy implications and suggestions for future research are discussed in the paper.