Review of Business Management

The contestability of multiple large shareholders and bank debt Evidence from China

2025-02-04T13:11:14-03:00

Purpose – This paper explores the role of multiple large shareholders to provide evidence of their influence on a firm’s bank debt.

Theoretical framework – We introduce agency theory to support our study.

Design/methodology/approach – Empirical research (including the FE model, PSM method, and IV method) is used in our study. Moreover, this paper selects the non-financial A-share companies listed in the Shanghai and Shenzhen stock markets from 2007 to 2022 as the sample.

Findings – We find that bank debt is positively and significantly related to tunneling, and negatively and significantly related to Tobin’s Q. Moreover, it is found that multiple large shareholders’ contestability reduces firms’ bank debt. Furthermore, we document that the influence of multiple large shareholders on bank debt would be reduced in state-owned firms.

Practical & social implications of research – Our findings contribute to the literature by highlighting the role of multiple large shareholders, who can reduce the agency cost of a firm’s bank debt.

Originality/value – This study contributes to the literature in several important ways. First, it adds to the research on the governance role of multiple large shareholders. Second, this paper offers the first attempt to examine the impact of the contestability of multiple large shareholders on bank debt, and we find a negative relationship between them.

Intellectual Capital Readiness and the Performance of Village-Owned Enterprises in Indonesia: Mediation through Entrepreneurial Knowledge

2025-02-04T15:00:00-03:00

Purpose – This study investigates the impact of intellectual capital readiness on the performance of village-owned enterprises. The study discovered a new index to measure intellectual capital readiness and also looked into whether the relationship is mediated by entrepreneurial knowledge.

Theoretical framework – The relationship between intellectual capital readiness and the performance of village-owned enterprises is still rare.

Design/methodology/approach – This research used a quantitative study with 148 management respondents from village-owned enterprises in Indonesia. The data were collected using an online survey.

Findings – The findings show significant results. First, the Intellectual Capital Readiness Index (ICRI) shows a reasonable level of readiness. Second, the performance of village-owned enterprises is influenced by intellectual capital readiness. Third, entrepreneurial knowledge has a positive impact on the performance of village-owned enterprises. Finally, entrepreneurial knowledge moderates the impact of intellectual capital readiness on the performance of village-owned enterprises.

Practical & social implications of research – The development of the ICRI offers a valuable tool for managers and policymakers to evaluate and improve the readiness of these enterprises to effectively leverage their intellectual capital.

Originality/value – This research brings a fresh perspective to the field by introducing innovative methods and concepts to assess and enhance the performance of village-owned enterprises.

The Organizational Value of Humility: Proposing a Typology of Culture Maturity

2025-02-13T14:19:17-03:00

Purpose – Although virtuous practices enhance organizational excellence, the virtue and culture of humility are little studied in the field of management due to their conceptual challenges. In order to cover this gap, and considering that the virtue of humility is increasingly evolving as a cultural value, this study proposes a typology of humility culture maturity (THCM) that signals a progressive path of this virtue as a value in organizations.

Theoretical framework – This theoretical-exploratory study is derived from Schein's (2010) organizational culture models, Galbraith's (1983) concepts, Maldonado et al.'s (2018) organizational humility model, and Owens et al.'s (2013; 2015) individual humility model.

Design/methodology/approach – The typology design is based on the procedures for configuring culture maturity models, such as those of Parker (2006) and Rocha et al. (2023).

Findings – The combination of these theories makes it possible to propose a continuum of five stages of culture maturity: rhetorical, embryonic, stimulated, full and virtuous, with each stage reflecting different behavioral regimes respectively, progressing from unconcerned, reactive, obligatory, voluntary to unconscious, where humility practices are performed in an organic way and internalized in virtuous actions, in a demonstration of culture maturity.

Practical & social implications of research – The study broadens the understanding of the humility culture, making its analysis more useful, since it indicates specific descriptions and behaviors of humility related to each stage of cultural progression towards maturity. This theoretical study makes the examination of humility in organizations more utilitarian, opening space for further design and empirical testing of both functional models of organizational culture and humility culture maturity, which are instrumentally lacking in the literature and so important for organizational excellence.

Originality/value – The THCM represents an original proposal that fills a gap in the literature in management studies dedicated to organizational humility and humility culture maturity.

Online Shopping Experience Drives of Online Shopping Intention: Role of Omnichannel Shopping Trust

2025-02-18T14:50:25-03:00

Purpose – This study proposes a model in which online shopping intention is a consequence of the online shopping experience in an omnichannel environment.

Theoretical framework – The experience is formed through the interaction between a consumer's cognitive and emotional experiences, with omnichannel shopping trust playing a crucial mediating role in the relationship between online shopping experience and shopping intention. The theoretical model is based on the Stimulus-Organism-Response (S-O-R) framework.

Design/methodology/approach – Data analysis was performed using structural equation model analysis. Systematic random probability sampling was used to recruit 600 consumers, all with experience with omnichannel shopping in Chilean retail settings.

Findings – Online shopping intention results from the interaction between cognitive and emotional experiences. Omnichannel shopping trust partially mediates the online shopping experience's effect on shopping intentions.

Research Practical & Social implications – This study has important implications for digital platform managers and retailers who want to deliver an optimal omnichannel experience.

Originality/value – In an omnichannel environment, the retailer needs to establish a close link through the cognitive and emotional experience of the shopper.

Enhancing Portfolio Performance: Incorporating Parameter Uncertainties into Zero-Beta

2025-02-11T14:51:17-03:00

Purpose – This study examines a zero-beta portfolio strategy that accounts for the uncertainties in expected returns and betas, with the goal of improving investment performance by incorporating parameter uncertainty into the optimization process.

Theoretical framework – The research is grounded in modern portfolio theory and robust optimization, drawing on the multifactor asset pricing model of Chen, Roll, and Ross (1986). It leverages the Kalman filter to estimate dynamic betas and their uncertainties, and incorporates analysts' forecasts to assess expected returns and their associated uncertainties.

Design/methodology/approach – The study constructs two types of zero-beta portfolios: a long-short stochastic portfolio that maximizes the ratio of expected return to parameter uncertainty, and a long-short normal portfolio that focuses solely on maximizing expected return. Portfolio performance is evaluated using data from 2015 to 2022.

Findings – The results indicate that the long-short stochastic portfolios outperform the normal portfolios on several performance metrics. Specifically, they exhibit higher realized returns, lower drawdowns, and a superior realized Sharpe ratio. In addition, the stochastic approach yields more accurate predictions with a significantly lower root mean square error.

Practical & social implications of research – The findings provide insights for investors, fund managers, and practitioners seeking to improve portfolio stability and performance under uncertainty. However, reliance on analysts' estimates should be approached with caution, as deviations from expected values can still occur.

Originality/value – This study contributes to the existing literature by empirically validating the benefits of incorporating parameter uncertainty into portfolio optimization.

The Impact of Perceived Financial Security in Neobanks on Customer Retention and the Cost of Switching to a Traditional Bank: The Mediating Role of Trust in Neobanks

2025-01-09T13:09:48-03:00

Purpose – This research had two objectives: first, to analyze the effect of perceived financial security of neobanking applications on trust, customer retention, and the cost of switching to a traditional bank; second, to analyze the mediating role of trust in neobanks between perceived financial security in the application and customer retention, as well as between trust and the cost of switching to a traditional bank.

Theoretical framework – This research used the stimulus-response (S-R) and stimulus-organization-response (S-O-R) models to study perceived financial security in the application as a stimulus and its effect on trust as an organism and customer retention and switching costs as behavioral responses.

Design/methodology/approach – A quantitative cross-sectional study was conducted. Online surveys were used to collect data from 305 neobank customers in Mexico. Furthermore, the partial least squares approach and bootstrapping resampling method were used to test seven hypotheses.

Findings – The results supported six hypotheses and confirmed that perceived financial security in the neobank application affected customer trust and retention, but did not affect the cost of switching to a traditional bank. In addition, trust was found to play a mediating role between perceived financial security and both customer retention and switching costs.

Practical & social implications of research – This study shows that neobanks need to ensure and communicate to customers the perceived security of their applications for financial transactions, as it has a direct impact on customer retention. Moreover, the development of mechanisms that increase customer trust is key to retaining customers and building barriers to prevent the loss of users to traditional banking.

Originality/value – This research contributes to the advancement of knowledge in the field of neobank management, as it deepens the understanding of perceived financial security and trust as key aspects of customer retention and switching costs.