Discretionary Income Research Articles

Idiosyncratic risk and stock price crash risk: The moderating role of discretionary income smoothing

Given the growing significance of the capital market, investors tend to steer clear of stock price crashes. This study aims to examine how idiosyncratic risk affects the likelihood of a stock price crash and how discretionary income smoothing affects the relationship between them. This study uses a data panel to empirically examine the hypothesis. This study uses a data panel to empirically examine the hypothesis, using 1,203 firm-year observations from non-financial companies publicly traded on the Indonesia Stock Exchange from 2019 to 2021. The results show that firms with greater idiosyncratic risk do not significantly generate higher stock price crash risk. Nevertheless, this study also discovered that managing discretionary income smoothing is essential to increasing the risk of crashes. The test shows that the coefficient of discretionary income smoothing is 0.153 and significant with a t-value of 2.104. Moreover, the investigations also indicate that greater use of discretionary income smoothing can amplify the impact of idiosyncratic risk on the likelihood of stock price crashes. This is shown from the results where the moderation of the two variables has a positive coefficient of 0.087 and is significant at 10% with a t-value of 1.446. Based on the findings, this study concludes that the presence of idiosyncratic risk by itself may not substantially impact the probability of stock market crashes. However, combined with discretionary income smoothing, it can worsen the potential negative consequences. It implies that how a firm reports its income can affect its susceptibility to stock price crashes.

Understanding changing patterns in travel behaviour to support domestic tourism recovery and resilience

ABSTRACT The COVID-19 pandemic has severely impacted the tourism sector, disrupting travel and centralising a shift towards domestic tourism. This study examines the changing preferences and demands of travellers to promote the recovery and sustainability of domestic tourism. The research conducted 1 034 online surveys with the general public to analyse their travel behaviours and preferences concerning domestic tourism activities willing to participate in. The findings indicate that despite limited disposable income, a significant portion of the South African population possesses discretionary income and is interested in participating in tourism activities. Travel preferences are influenced by various socio-economic and demographic factors. Changing patterns in destination choices and activities are also noted, which influence travel behaviour and related tourism consumption/ demand for products and experiences, marketing and impacts. Respondents are knowledgeable of and attracted to many domestic tourism products in South Africa, with social and nature-based tourism being prominent. Monitoring domestic tourism trends can inform marketing strategies and product development. Additionally, awareness and communication strategies should be improved, and incentives should be provided to encourage local travel.

Heterogeneity in the pass-through from oil to gasoline prices: A new instrument for estimating the price elasticity of gasoline demand

We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily driven by the cost of producing and distributing gasoline, which varies with states’ access to oil and gasoline transportation infrastructure, refinery technology, and environmental regulations, creating cross-sectional gasoline price shocks in response to an aggregate oil price shock. Time-varying estimates do not support the view that the gasoline demand elasticity has declined in absolute value to near zero since the 1980s. The elasticity was stable near −0.3 until the end of 2014. It rose to about −0.2 in 2015–16, but has remained stable since 2016. Gasoline demand is more responsive in states with lower personal income, higher unemployment rates and lower urban population shares. There is no evidence for an asymmetry in the elasticity with respect to positive and negative gasoline price shocks. We illustrate how these elasticity estimates inform the recent policy debate about the impact of gasoline tax holidays on consumers’ discretionary income and about the demand destruction from the spike in gasoline prices after the invasion of Ukraine.

Older the better: senior tourists’ curiosity towards the home-sharing platform

PurposeSenior tourist is a salient segment of the tourism sector. This segment reflects a robust ageing population with discretionary income and an appetite for tourism activities. However, to date, there has been a paucity of empirical insight on how the combination of intrinsic and extrinsic motivations may influence senior tourists’ connectedness and booking intentions towards home-sharing accommodation. Thus, this study aims to investigate how senior tourists’ curiosity and social interaction may influence their connectedness towards Airbnb and subsequently booking intention.Design/methodology/approachA conceptual model was developed and tested using partial least squares structural equation modelling to analyse data collected from a sample of 195 senior tourists in Malaysia.FindingsThe results showed that intrinsic (curiosity) and extrinsic (social interaction) motivations positively influence senior tourists’ connectedness towards platform accommodation, which in turn positively affects the outcome variable. Furthermore, this study found that a sense of connectedness is crucial in linking motivators and booking intentions.Research limitations/implicationsThis research was carried out in Malaysia; therefore, cross-national studies are encouraged to establish whether the findings described in this study can be extrapolated to other cultures/countries.Practical implicationsFrom a practitioner’s perspective, this study reinforces the need to address and understand senior tourists’ curiosity and how it may invoke their connectedness and behavioural actions towards the Airbnb platform. More importantly, this study gives home-sharing practitioners practical leverage on how combined intrinsic and extrinsic motivations may deduce senior tourists’ booking intentions.Originality/valueThe study contributes to the literature on senior tourism and the home-sharing sector by demonstrating the role of curiosity and social interaction in shaping senior tourists’ connectedness towards Airbnb and behavioural intentions.

Slow food and the slow food movement: a case study of consumer activism in Turkiye

PurposeThe slow food movement has become increasingly widespread globally in recent years. This paper focuses on explaining how Turkish cuisine, which has a deep-rooted history, meshes with the slow food movement and how this movement affects consumer behavior.Design/methodology/approachBased on expert opinion analysis with academics knowledgeable about the food industry and gastronomy, this paper explores how the slow food movement in Turkiye is evolving and how consumers perceive it. Content analysis was applied to the data obtained from the personal interviews.FindingsThe authors find that the slow food movement creates a strong brand image for businesses that rely on emphasizing the responsibility to the ecological system while appealing to the five senses of consumers. It already shows great potential even in emerging markets where typical household discretionary income is modest.Practical implicationsBased on key theories regarding all sales activism cases, the authors have offered insights into the dynamics, motivations and techniques of the case. Ensuring the preservation of the slow food movement, framing and creating associations need to be examined.Originality/valueSlow food is a movement that emerged against the standard, fast, tasty, but unhealthy products of the fast-food industry. It entails product variety, local flavors and preference for the single-flavor focus embedded in the fast-food movement. The movement started with considerations of gastronomy and later was institutionalized as a social movement phenomenon. Later, it expanded its base to activism, targeting various social issues.

Radiology trainee retirement programs: Options and participation

BackgroundFinancial security and retirement planning are essential for all medical professionals including radiology residents. Given the available discretionary income during residency it is crucial to have insights into investment. We aimed to assess the prevalence of retirement plans offered to radiology residents, the available choices, and their degree of participation. MethodsTwo surveys were created using Qualtrics platform, one targeting program directors and another one oriented to radiology residents with items focused on demographic, financial status, offered plans, and participation. Analysis was performed using chi square whenever appropriate using Qualtrics platform. P values less than 0.05 were considered statistically significant. Results199 radiology residents (72.6% attending university-based programs) responded to the survey. 83.7% participated in retirement plans; university-based programs had the highest rate of offering plans; 82.8% vs 70% and 53.8% for university, community and hybrid programs respectively. The most frequently offered retirement plan was a 403(b). Most of the residents (94.3%) started investment in the retirement program as early as PGY1 and PGY2. A considerable proportion of programs lacked formal training on retirement plans; however, residents emphasized the significance of financial education during their residency. ConclusionRadiology residents are more likely to participate in a retirement plan if it is offered by their program. Providing proper guidance by incorporating financial education into radiology residency curricula can optimize residents’ decision making and economical planning, leading to a more secure financial future.

The Dubious Nature of the Buying Power and Discretionary Income of the Multicultural Marketplace: The Case and a Model for Multicultural Spending

The Dubious Nature of the Buying Power and Discretionary Income of the Multicultural Marketplace: The Case and a Model for Multicultural Spending

Mitigating Trendy Cheap Fast Fashion's Negative Impact

Three studies are carried out in an attempt to provide a picture of clothing consumption and knowledge of fast fashion among young consumers, and investigate possibilities for more sustainable choices through analyses of the second-hand clothing market. The first study collects data from different second-hand clothing markets, whether direct from owner or through a second seller. Savings are calculated by scraping original and sale prices on regular markets. Content analyses of second-hand markets show a wide variation in discounts depending upon the type of clothing and channel used to purchase. We find independent resellers offer significant savings on higher quality clothing, but reselling used fast-fashion is not an attractive option due to its initial low price point. The second and third studies assess the attitude, behavior, and knowledge of fast fashion among young consumers and the possibility of education to decrease fast fashion consumption. These studies document the desire for fashionable clothing and expose the limited budget among young consumers. Some respondents spend all their discretionary income on clothing, and many times, purchased items are never worn. There is some indication that educating young consumers about real environmental impacts might shift purchases from quantity to quality, but educating consumers about the harm of fast fashion may be a slow difficult task.

Encouraging Water Protection through Donation: Examining the Effects of Intention to Engage in Personal Water Conservation Behaviors on Donation Behaviors

In many parts of the world, water scarcity is increasing due to climate change and the deterioration of the quantity and quality of water sources. In the southeastern U.S., water conservation is of particular concern because of the decades-long water war between the states of Florida, Georgia, and Alabama over two shared river basins. Individuals can only do so much to conserve water in their home, but different forms of donations can contribute to larger efforts resulting in greater environmental impact. Using a conceptual framework connecting self-identity to water conservation contribution engagement, the purpose of this study was to determine if personal water conservation behavioral intent impacted contributions to organizations supporting water conservation so effective communication strategies can be developed. Previous studies connected self-identity and intention to engage in pro-environmental behaviors, but there is a lack of research on the connection to water conservation donation behavior. Respondents were recruited to take an online survey using non-probability opt-in sampling. Self-reported intent to engage in water conservation behaviors, current contribution behaviors (if they donate to an organization that protects water, are a member of a water conservation organization, own a specialty license plate that supports water conservation, and volunteer for water conservation events), and total family income in the past year were obtained. Data were analyzed using point-biserial correlations and binary logistic regressions. The results indicated personal water conservation behavioral intent was positively correlated to water conservation contribution behaviors. Personal water conservation behavioral intent and income level were significant predictors of contribution behaviors. Environmental communicators and educators should encourage those who identify as conservationists to increase their self-identity through contributing to organizations. Future research should be conducted to determine if actual versus perceived discretionary income and/or time is a predictor of contributions.

Patterns of Everyday Exchange: Big Historical Data and the Case of the Basel Advertisement Paper, 1729–1844

Abstract With concepts like the consumer revolution or the industrious revolution, the changing behaviour of private households in the 18th and early 19th centuries has become of great interest. The article suggests a new way to observe intentions and decisions, by utilizing a database of 850,000 classified ads from the Basel Avisblatt over a span of 116 years. Changes in food prices constantly altered the discretionary income of households, which forced budget-related decisions. By cross-correlating indicators of discretionary income with the changing number of different types of ads, patterns of utilizing the Avisblatt can be identified, and strategies to stabilize discretionary income deduced.

Reusable period products: use and perceptions among young people in Victoria, Australia

BackgroundReusable menstrual products have expanded the choices available for menstrual care and can offer long-term cost and environmental benefits. Yet, in high-income settings, efforts to support period product access focus on disposable products. There is limited research to understand young people’s product use and preferences in Australia.MethodsQuantitative and open-text qualitative data were collected through an annual cross-sectional survey of young people (aged 15–29) in Victoria, Australia. The convenience sample was recruited through targeted social media advertisements. Young people who reported menstruating in the past 6 months (n = 596) were asked questions about their menstrual product use, use of reusable materials, product priorities and preferences.ResultsAmong participants, 37% had used a reusable product during their last menstrual period (24% period underwear, 17% menstrual cup, 5% reusable pads), and a further 11% had tried using a reusable product in the past. Reusable product use was associated with older age (age 25–29 PR = 3.35 95%CI = 2.09–5.37), being born in Australia (PR = 1.74 95%CI = 1.05–2.87), and having greater discretionary income (PR = 1.53 95%CI = 1.01–2.32). Participants nominated comfort, protection from leakage and environmental sustainability as the most important features of menstrual products, followed by cost. Overall, 37% of participants reported not having enough information about reusable products. Having enough information was less common among younger participants (age 25–29 PR = 1.42 95%CI = 1.20–1.68) and high school students (PR = 0.68 95%CI = 0.52–0.88). Respondents highlighted the need for earlier and better information, challenges navigating the upfront cost and availability of reusables, positive experiences with reusables, and challenges for use, including cleaning reusables and changing them outside the home.ConclusionsMany young people are using reusable products, with environmental impacts an important motivator. Educators should incorporate better menstrual care information in puberty education and advocates should raise awareness of how bathroom facilities may support product choice.

Strategic rearrangement of retail shelf space allocations: Using data insights to encourage impulse buying

Brick-and-mortar retailers are struggling to compete with online retailers, who increasingly use customer-generated data to provide highly customized experiences for their patrons to drive impulse purchases. Although brick-and-mortar retailers cannot offer such customization, they must identify innovative ways to transform their own point-of-sale transaction data into increased customer impulse buying. We propose a shelf allocation-relocation scheme for rearranging storewide product allocations over time to maximize impulse buying behavior. The proposed method provides a roadmap for optimally allocating shelf space when routine rearrangements of a retail store take place per store policy. To the best of our knowledge, this represents one of the first periodic storewide rearrangement studies to use customer tendencies with the current shelf arrangement as the basis for the subsequent one. We also introduce a novel approach for incorporating past transaction data insights of cross-selling elasticity into the Shelf Space Allocation Problem (SSAP) to encourage long-term new business creation through impulse purchases. The method applies insights from association rule mining to group highly affine and profitable product pairs, optimize the assignment of departments to store aisles, and determine the optimal within-aisle space allocations for the products of each department. Our major finding is that, based on the potential of generating multiple forms of impulse purchasing (visibility-driven purchasing, present-shelf impulse, and past-aisle impulse), our strategic rearrangement technique consistently outperforms visually rearranging shelf space allocations and several existing allocation techniques that utilize multi-level association rule mining, while, in many instances, exceeding the profit potential of a more traditional unchanged (one-time optimal) shelf space arrangement, depending on the nature of a retailer’s target market. Our results also highlight the importance of a retailer selecting the most appropriate shelf space rearrangement strategy that fits the characteristics of its customers, especially their discretionary income level and their familiarity with the store layout.

Collegiate social class and connectedness: class in a transitional period of life

PurposeThis research study set out to answer the following question: How does social class relate to social connectedness in college?Design/methodology/approachThe authors operationalized a nonexperimental, cross-sectional and analytical study design to analyze 271 survey responses.FindingsThis study illustrates that discretionary income has the most dramatic practical significance on the social connectedness of undergraduate students at the research site. As the body of knowledge regarding effective measures of social class for collegians increases, institutions should consider more innovative measures like discretionary spending, perceived social class and others during this unique transitional period of life.Originality/valueA widened perspective of social class in college could aid in supporting the university and college goals of student success and social well-being.

The impact of fractional trading on risk aversion for non-professional investors

We study the impact of fractional trading (FT) on non-professional investors' decision-making under uncertainty. Using the expected utility framework, we show that with the recent easiness to trade in stock markets and with the option to buy or sell a fraction of a share of a stock or ETF (exchange-traded fund), the risk appetite of non-professional investors might have gone up, increasing market participation and demand for stocks. Furthermore, we show that this change in the non-professional investor's risk aversion behavior varies by household income levels. Based on constructed probabilities, we estimate that approximately 83 billion dollars have been newly invested in stock market post-FT. Our results suggest that easy access to trade stocks and FT allows households with lower discretionary income a new tool to diversify their portfolio and participate in the stock markets by investing in different stocks and ETFs while at the same time having a significant impact on the stocks' price levels and price dynamics observed in the markets.

Exploring the role of discretionary income as a social determinant of health.

The object of this study is to explore the impact of discretionary income on the overall well-being of Americans. The data source used for this study was 2017 Behavioral Risk Factor Surveillance System data comprising 12 states that used the Social Determinants of Health (SDOH) module. Multivariable logistic regression models were used to analyze the relationship between discretionary income and self-reported health status after adjusting for common SDOH measures, sociodemographic factors, chronic conditions, and perspectives and experiences of respondents regarding specific aspects of their health. Average marginal effects (AME) were reported. Not applicable. At all income levels, those with discretionary income at the end of the month were 6-7 percentage points more likely to report better than average health than those with none, controlling for other factors (AME: 0.07, 95% CI: 0.02-0.12). Our study suggests that discretionary income has a role to play in overall health and well-being that goes beyond that of disposable income and may be an important resource for diverse communities.

Modal Intelektual Dan Kepemilikan Manajerial Pada Biaya Modal: Manajemen Laba Sebagai Moderasi

This study aims to examine and analyze empirically the effect of managerial ownership and intellectual capital on the cost of capital moderated by earnings management. The population is manufacturing companies listed on the Indonesia Stock Exchange (IDX) and the sample is determined by purposive sampling. The sample used consisted of 73 companies during the 2016-2019 period. All variables are measured by their respective ratios, earnings management is measured by Stubben's discretionary income model, this research hypothesis is tested using multiple regression using eviews 9 as an analysis tool. The results of the first hypothesis show that managerial ownership has no significant effect on capital either positively or negatively. The results of the second hypothesis that intellectual capital has a negative effect on the cost of capital have been proven because in addition to being significant in this study, it is also in accordance with the hypothesis that the researcher made. The results of the third hypothesis of earnings management strengthen the effect of managerial ownership on the cost of capital, it is not proven because earnings management as a moderating variable in the study has no effect. The results of the fourth hypothesis that earnings management weaken the influence of intellectual capital on the cost of capital are not proven because earnings management in this study as a moderating variable in this study has no effect.

HSD12 Assessing the Changes of Spa Hotel Demand in Hungary between 2012 and 2019

In general, the demand for medical tourism is influenced by several factors. The first is an aging population with a growing health problem and discretionary income and leisure. The second is changes in health behaviours that focus on disease prevention. Research seeks the answer to the changes in the demand for medical tourism in recent years in spa hotels.

Nominal and discretionary household income convergence: The effect of a crisis in a small open economy

Regional economic imbalances have considerable negative effects on society that might be amplified during an economic recession. We study changes in the cross-regional household income imbalance in the small open economy of Slovakia before and during an economic recession. Apart from the usual nominal income, we study discretionary income, which accounts for consumption of necessity goods. Our analysis uses household budget survey data from January 2004 until December 2012 with 43,188 overall observations. Our main results are based on the σ-convergence framework, and we observe that only nominal regional household income converged before the economic recession. However, during the crisis, neither nominal nor discretionary household income converged. The β-convergence framework shows that only discretionary income converged during both periods. These results support the hypothesis of Stiglitz et al. (2009) that income and consumption need to be evaluated jointly to assess (regional) economic imbalances and inform the design of appropriate policies.

Impact of an Innovative Endowed Chair Program on Medical Educator Recipients.

Rarely do faculty members receive endowed chairs as recognition for their work as educators. In addition to the title, endowed chairholders have traditionally received discretionary income to pursue value-added work. This study assessed the impact on recipients of receiving an endowed chair for education. The authors conducted a qualitative thematic analysis between 2018 and 2020, interviewing University of California, San Francisco, School of Medicine chairholders who had completed at least one 5-year term. Authors double-coded all transcripts, reconciled codes, applied social cognitive career theory during analysis, and identified themes through an iterative consensus-building approach. Twenty-three of 24 (96%) eligible faculty members from 16 departments participated. Themes identified were symbolism, resources, education and educator credibility, development, and impact. The chair was a symbol that brought recognition, indicated quality, and amplified visibility and status within the institution and externally. Receiving an endowed chair conferred credibility on recipients and empowered them in the educational domain. The resources allowed chairholders the flexibility to undertake activities that were of value to them, to mentees, and to the organization. Holding the chair facilitated professional development for self and others. Chair recipients reported impact that persisted long after their term(s) concluded. A model of impact emerged, suggesting that simply possessing the chair title led to visibility and gravitas, which, combined with resources, allowed the holder to leverage opportunities in education. The endowed chair is an important strategy for career development in education for the chairholder and enhances the position of education institutionally. Having a plan sharpens the focus on activities, results, and impact.

The emerging role of dark berry polyphenols in human health and nutrition

AbstractDark berry fruits are one of the top 10 richest sources of dietary polyphenols and have been examined for their pharmacokinetic benefits in the human body related to absorption, digestion, metabolism, and excretion (ADME). With the expansion of the world wide web and rise of discretionary income in Europe and North America impacting the global food trade during the 21st century, several species of berries have become available for general consumption that may have previously been out of reach of the average consumer. Compared to their commercial counterparts, these berries contain many of the same polyphenols, and the possibility exists for the discovery of novel phenolic compounds that may affect the ADME process in a host‐beneficial way. Several species have demonstrated antioxidant, antiobesogenic, antimicrobial, and anti‐inflammatory properties through in vitro, animal studies, and human clinical trials. This review examines the available chemical compositions of several dark berries and their effect on the ADME process, their implication in host health effects, and the potential of these emerging species to suggest areas for future research.