scholarly journals Moderation of directors' education on board busyness-firm efficiency

2020 ◽  
Vol 58 (7) ◽  
pp. 1397-1423
Author(s):  
Khar Mang Tan ◽  
Fakarudin Kamarudin ◽  
Amin Noordin Bany-Ariffin ◽  
Norhuda Abdul Rahim
Keyword(s):  
Practical Implication ◽  
Asia Pacific ◽  
Firm Efficiency ◽  
Content Type ◽  
Extant Literature ◽  
Upper Echelons Theory ◽  
Parametric Data ◽  
The Impact ◽  
The Relationship ◽  
New Framework

PurposeThe purpose of this paper is to enhance the understanding of the long-debated impact of board busyness within a new framework of firm efficiency in the selected developed and developing Asia–Pacific countries, by assessing the moderation of directors' education towards the relationship between board busyness and firm efficiency. The extant literature on board busyness demonstrates to a lack of clarification of the relationship between board busyness and firm efficiency.Design/methodology/approachThe sample for this paper comprises a panel data of 800 firms in a cross-country context of the selected developed and developing Asia–Pacific countries during the recent period of 2009–2015. This paper performs a non-parametric Data Envelopment Analysis to measure firm efficiency and panel regression analysis to examine the moderation of directors' education.FindingsThis paper provides support for the busyness hypothesis by documenting that the busy boards are likely to reduce firm efficiency. Moreover, this paper renders support to the upper-echelons theory by demonstrating that the impact of board busyness on firm efficiency is likely to turn positive in the presence of directors' education.Practical implicationThis paper highlights practical implication for managers especially in the Asia–Pacific region who seek to enhance firm efficiency, which is essential for firms in attaining the primary goal of profit maximization.Originality/valueThis paper builds on the extant literature by providing a contemporary research path regarding the moderation of directors' education to explain the long-debated impact of board busyness within a new framework of firm efficiency, based on a recent and significant sample of Asia–Pacific countries.

scholarly journals Investigation on firm efficiency: evidence from selected Asia-Pacific countries

2018 ◽  
Vol 25 (8) ◽  
pp. 3062-3080 ◽  
Author(s):  
Khar Mang Tan ◽  
Fakarudin Kamarudin ◽  
Amin Noordin Bany-Ariffin ◽  
Norhuda Abdul Rahim
Keyword(s):  
Technical Efficiency ◽  
Small Firms ◽  
Banking Sector ◽  
Profit Maximization ◽  
Asia Pacific ◽  
Scale Efficiency ◽  
Scale Level ◽  
Firm Efficiency ◽  
Content Type ◽  
Parametric Data

Purpose The purpose of this paper is to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) in the selected developed and developing Asia-Pacific countries. Design/methodology/approach The sample consists of a sum of 700 firms in selected developed and developing Asia-Pacific countries over the period from 2009 to 2015. The non-parametric data envelopment analysis under the production approach is used to investigate firm efficiency. Findings On average, this paper discovers that the firms in selected Asia-Pacific countries are moderately efficient. Scale inefficiency (SIE) is found to be the dominant source of firms’ technical inefficiency. The analysis of return to scale shows that the large firms tend to operate at decreasing return to scale level, while the small firms tend to operate at increasing return to scale level. Practical implications The findings from this paper provide significant insights to the policy makers and firm managers in promoting the efficient firms of Asia-Pacific countries. Originality/value The present paper conducts a critical analysis on return to scale in the firms sector of Asia-Pacific context, which is ignored by the past studies on firm efficiency since the analysis of return to scale is mostly emphasized on banking sector. The precise nature of SIE is important for a firm to be efficient in achieving the firm’s primary goals of profit maximization and sustaining market competitiveness.

Prescribing originality: investigating the impact of original knowledge on patent quality in the pharmaceutical sector

2021 ◽  
Vol 10 (1) ◽  
pp. 78-97
Author(s):  
Kristie Briggs
Keyword(s):  
Market Value ◽  
Pharmaceutical Sector ◽  
Market Exclusivity ◽  
Optimal Length ◽  
Content Type ◽  
Patent Quality ◽  
Extant Literature ◽  
New Drug ◽  
The Impact ◽  
The Relationship

PurposeThis paper examines the relationship between the originality of a pharmaceutical innovation and its patent quality. Greater patent quality has been shown in the extant literature to enhance market value, which better enables firms to recoup research and development (R&D) expenditures incurred during the innovation process. Understanding how originality improves patent quality can assist policymakers, when determining the optimal length of pharmaceutical patent protection and/or market exclusivity.Design/methodology/approachThe relationship between originality and patent quality is empirically investigated using a tobit, as well as a zero-inflated negative binomial, estimation approach to account for prevalence of patents receiving zero forward citations. Moderating effects of joint innovation, innovation by a university researcher and innovation by an established innovator on originality are also considered.FindingsThere is a robust and positive relationship between patent originality and quality in the pharmaceutical sector. This relationship is positively moderated by joint patent ownership with a university. As such, innovators that target originality in new drug development (especially those collaborating with universities) should, according to extant literature, see greater increases in their market value.Originality/valuePolicymakers can use information on the originality of a new drug to discern the optimal length of market exclusivity needed to enable the innovator to recoup expenditures related to R&D. Better predictions of the timing for which firms can recoup R&D expenditures will equip policymakers with knowledge about the appropriate timing to introduce competition into the market, which is critical to reducing the price of pharmaceuticals to consumers.

Moderation of Doing and Mastery orientations in relationships among justice, commitment, and trust

2015 ◽  
Vol 22 (1) ◽  
pp. 42-67 ◽  
Author(s):  
Zhou Jiang ◽  
Paul J. Gollan ◽  
Gordon Brooks
Keyword(s):  
Cultural Differences ◽  
Cultural Context ◽  
Cross Cultural ◽  
Value Orientations ◽  
Cultural Value ◽  
Asia Pacific ◽  
Content Type ◽  
Justice Research ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to examine whether and how two individual value orientations – Doing (the tendency to commit to goals and hold a strong work ethic) and Mastery (an orientation toward seeking control over outside forces) – moderate: the relationship between organizational justice and affective organizational commitment, and the mediation role of organizational trust in this relationship. Design/methodology/approach – The authors collected data from 706 employees working in 65 universities across China, South Korea, and Australia. Multi-group confirmatory factor analyses were employed to examine the cross-cultural equivalence of the measures. Hierarchical regressions were performed to test moderating effects of the two cultural value orientations. Findings – Results from the full sample showed that Doing and Mastery moderated the distributive justice-commitment relationship and the procedural justice-trust relationship. Comparisons between countries demonstrated limited cross-cultural differences. Practical implications – The present study adds to the understanding of the impact of individual and cultural differences on the relationship between justice and commitment, helping managers understand how employees’ reactions to justice are influenced by cultural value orientations. Originality/value – This study is a pioneer in empirically integrating the value orientation framework (e.g. Doing and Mastery orientations) and justice research in a cross-cultural context based in the Asia Pacific region. It also advances cross-cultural justice research through using a mediation-moderation combination.

The impact of multimarket contacts on bank stability in Vietnam

2019 ◽  
Vol 31 (3) ◽  
pp. 336-357 ◽  
Author(s):  
Tu DQ Le ◽  
Son H. Tran ◽  
Liem T. Nguyen
Keyword(s):  
Risk Taking ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Bank Stability ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to investigate the impact of multimarket contacts on bank stability in the Vietnamese banking system between 2006 and 2015. Design/methodology/approach The system generalized method of moments proposed by Arellano and Bover (1995) is used to examine the relationship between multimarket contacts and bank stability. Findings The findings show that multimarket contacts among Vietnamese commercial banks improve bank stability. In addition, more x-efficient banks appear to be more stable. The same is true for banks with less holding liquid assets, for those with less excessive lending, for smaller banks, for those with the greater level of intermediation and for those with a higher level of foreign ownership. Listed banks are found to be less-risk taking than unlisted banks. Originality/value This study is the first attempt to examine the relationship between multimarket contacts and bank stability in an emerging market in the Asia-Pacific region.

How does top management team composition matter for continual growth? Reinvestigating Penrose’s growth theory through the lens of upper echelons theory

2019 ◽  
Vol 57 (1) ◽  
pp. 41-70 ◽  
Author(s):  
Wein-Hong Chen ◽  
Min-Ping Kang ◽  
Bella Butler
Keyword(s):  
Top Management Team ◽  
Management Team ◽  
Asia Pacific ◽  
Growth Theory ◽  
Top Management ◽  
Upper Echelons ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Penrose Effect ◽  
The Impact

Purpose Penrose’s argument regarding the managerial constraint on continual expansion over two consecutive periods is termed the “Penrose effect,” a relatively less investigated premise in Penrose’s growth theory. The purpose of this paper is to empirically re-examine the Penrose effect from the perspective of upper echelons theory and investigated how top management team (TMT) composition influences the continual growth of a firm. Design/methodology/approach This study empirically tested the hypotheses based on a sample of listed manufacturing firms operating in Taiwan, a newly industrialized economy in the Asia–Pacific region. Moderated hierarchical regression analyses were applied to test hypotheses. Findings The empirical results suggest that low TMT diversity (in terms of educational, functional and team tenure diversity) is likely to engender a situation in which the Penrose effect might occur. Additionally, the results indicate that the proportion of functional executives plays a significant role in influencing the growth trend over two consecutive periods and may soften the impact of the Penrose effect. Practical implications This paper suggests that appropriate structuring of TMTs and appropriate management of their members’ backgrounds and team tenure diversity can help firms overcome the Penrose effect and grow continually. Furthermore, the proportion of functional executives in a TMT is influential. Originality/value This paper uniquely contributes to the theoretical and empirical development of Penrose’s growth theory, upper echelons theory and resource-based view concerning managerial resources.

scholarly journals How interactive marketing is changing in financial services

2016 ◽  
Vol 10 (4) ◽  
pp. 338-356 ◽  
Author(s):  
Merlin Stone ◽  
Paul Laughlin
Keyword(s):  
Customer Service ◽  
Financial Services ◽  
Practical Implication ◽  
Information And Communications Technology ◽  
Dark Side ◽  
Content Type ◽  
Related Information ◽  
Research Article ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to explore the impact of the internet and related information and communications technology developments on how financial services (FS) are distributed and how customers are managed, in particular, not only how companies can differentiate between “good” and “bad” customers and manage them appropriately but also how customers can be “bad” and escape the consequences. It also explores how changes in information asymmetry between suppliers and customers affects who gains or loses from the relationship between them. Design/methodology/approach The data for the article are from the authors’ consulting and conference chairing experience. The article is in the form of a reflection on this, rather than a hypothesis-based research article. Findings One of its findings is that those responsible for controlling damage done to companies by fraudulent or negative value customers (typically those managing underwriting or risk) and those responsible for recruiting, retaining and developing customers (typically marketing, sales and customer service) do not work closely enough together, and this can lead to not only damage to shareholder value but also damage to the customer experience. Research limitations/implications The paper identifies the need for more research covering the processes, data, analysis, systems and strategies required to manage both good and bad customers and the practical problems of implementation. Practical implications The main practical implication is that in designing products and the customer service experience, FS marketers need to take into account much more systematically the “dark side” of customer activity. Originality/value This paper is one of the first to explore its issues in detail.

Non-financial information and cost of equity capital: an empirical analysis in the food and beverage industry

2020 ◽  
Vol 123 (1) ◽  
pp. 49-65 ◽  
Author(s):  
Nicola Raimo ◽  
Elbano de Nuccio ◽  
Anastasia Giakoumelou ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Fixed Effects ◽  
Equity Capital ◽  
Asia Pacific ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Food And Beverage ◽  
The Cost ◽  
The Impact ◽  
The Relationship

PurposeThis study examines the effect that environmental, social and governance (ESG) disclosure generates on the cost of equity capital in the food and beverage (F&B) sector.Design/methodology/approachThis study analyses a sample of 171 international listed firms pertaining to the F&B sector and headquartered in North America, Western Europe and Asia Pacific (developed), forming an unbalanced panel of 1,316 observations, spanning the period 2010–2019. We run a fixed-effects panel regression model to test the relationship between ESG disclosure and the cost of equity capital.FindingsOur empirical outcomes suggest a significant negative relationship between ESG disclosure and the cost of equity capital. We find support for the notion that increased levels of ESG disclosure are linked to an improved access to financial resources for firms.Originality/valueThis is the first study that analyses the impact of ESG disclosure on the cost of equity capital in the F&B sector, taking existing literature a step further into more detailed and specific aspects of the relationship of focus.

The effects of customer accountability and knowledge sharing on voluntary organizations’ (VOs) effectiveness

2017 ◽  
Vol 25 (1) ◽  
pp. 146-159 ◽  
Author(s):  
Nurul Hidayana Mohd Noor ◽  
Siti Hajar Abu Bakar Ah ◽  
Mohd Awang Idris
Keyword(s):  
Knowledge Sharing ◽  
Structural Equation ◽  
Practical Implication ◽  
Voluntary Organizations ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine how the relationship between customer accountability and voluntary organizations’ effectiveness is mediated by knowledge sharing. Design/methodology/approach Using a cross-sectional survey and a structured questionnaire, data were collected from 349 employees of Malaysian voluntary organizations (VOs). Baron and Kenny’s (1986) procedures for mediation testing were adopted for the main analysis. Findings Results of structural equation modelling indicated that knowledge sharing partially mediates the relationship between and voluntary organizations’ effectiveness. Research limitations/implications Despite the authors’ contribution on the current academia, this study only investigated 349 employees representing VOs located in a single area, which is the Klang Valley area, Malaysia. Further research could identify a larger sample that would strengthen the inferences and conclusions. Practical implications The main practical implication is that Malaysian VOs need to be aware of the impact of customer accountability upon their voluntary organizations’ effectiveness, and they need to inculcate their employees’ knowledge sharing behaviour to foster the impact of customer accountability on voluntary organizations’ effectiveness. Originality/value This paper is unique in that it is the first attempt to combine the previous direct effect relationship into a new model that shows the effect of customer accountability on voluntary organizations’ effectiveness and the role of knowledge sharing as a mediator in the context of Malaysian voluntary sector.

Islamic financial markets response to uncertainty: an application of quantile-on-quantile approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Saeed Meo ◽  
Kiran Jameel ◽  
Mohammad Ashraful Ferdous Chowdhury ◽  
Sajid Ali
Keyword(s):  
Financial Markets ◽  
Negative Impact ◽  
Asia Pacific ◽  
Dependence Structure ◽  
Government Officials ◽  
Investment Bank ◽  
Content Type ◽  
Asymmetric Impact ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of the research is to analyze the impact of world uncertainty and pandemic uncertainty on Islamic financial markets. For representing Islamic financial markets four different Islamic indices (DJ Islamic index, DJ Islamic Asia–Pacific index, DJ Islamic-Europe index and DJ Islamic-US) are taken.Design/methodology/approachThe study employs quantile-on-quantile regression approach to see the overall dependence structure of variables based on quarterly data ranging from 1996Q1 to 2020Q4. This technique considers how quantiles of world uncertainty and pandemic uncertainty asymmetrically affect the quantiles of Islamic stocks by giving an appropriate framework to apprehend the overall dependence structure.FindingsThe findings of the study confirm a strong negative impact of world uncertainty and world pandemic uncertainty on regional Islamic stock indices but the strength of the relationship varies according to economic conditions and across the regions. However, the world pandemic effect remains the same and does not change. Conversely, pandemic uncertainty has a larger effect on Islamic indices as compared to world uncertainty.Practical implicationsOur findings have significant implications for investors and policymakers to take proper steps before any uncertainty arise. A coalition of the central bank, government officials and investment bank regulators would be needed to tackle this challenge of uncertainty.Originality/valueTo the best of the authors' knowledge, none of the current works has considered the asymmetric impact of world and pandemic uncertainties on Islamic stock markets at both the bottom and upper quantiles of the distribution of data.

scholarly journals Does directors’ experience positively moderate the impact of board busyness on firm efficiency? Evidence from Asia-Pacific

2019 ◽  
Vol 11 (3) ◽  
pp. 232-250 ◽  
Author(s):  
Khar Mang Tan ◽  
A.N. Bany-Ariffin ◽  
Fakarudin Kamarudin ◽  
Norhuda Abdul Rahim
Keyword(s):  
Design Methodology ◽  
Moderating Effect ◽  
Asia Pacific ◽  
Data Envelopment ◽  
Panel Regression ◽  
Firm Efficiency ◽  
Content Type ◽  
Laws And Policies ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of board busyness on firm efficiency in the context of directors’ experience, specifically on directors’ experience that moderates the impact of board busyness on firm efficiency. Directors’ experience is examined by exploring both depth (board tenure) and breadth (number of former listed directorship) of experience. Design/methodology/approach This paper employs data envelopment analysis (DEA) to examine firm efficiency. Then, fixed effect panel regression analysis is applied to test the direct and moderating effect based on a sample of firms in the selected Asia-Pacific countries. Findings Significant positive evidence for the moderating effect of directors’ experience on the impact of board busyness on firm efficiency is documented. Practical implications Findings are essential for managers, country policymakers and potential investors as inputs to improve the current company practices, laws and policies through the notion that directors’ experience does enable the busy board to contribute to improved firm efficiency. Originality/value This paper contributes to the debated perspectives on board busyness by providing initial evidence that directors’ experience positively moderates the impact of board busyness on firm efficiency.

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