Industry-specific Factors Research Articles

Wage-differentials and Their Determinants Across Industries in the Organized Manufacturing Sector of India

This article calculates the magnitude of wage differentials across industries in the organized manufacturing sector of India and identifies the major determinants of wage differentiation among the industries. Using data from Annual Survey of Industries in India for the period from 2000–2001 to 2015–2016, this study shows that mean wage is less in labour-intensive industries compared to the capital-intensive industries. The results of panel regression of annual average wage on various industry-specific factors show that productivity of labour is the most important factor in wage determination, and productivity largely depends on capital–labour ratio. The other significant factors in this regard are farm size, amount of profit and proportion of casual and female workers in total employment. Important policy implication of this study is that regulatory wage fixation and wage bargaining outcomes are not as significant as productivity differentials in explaining wage gaps across industries.

Determinants of Turkish female labour force participation: an analysis with manufacturing firm-level data

ABSTRACT Compared to other developing countries, Turkey has a very low female labour participation rate. Previous studies usually focus on the labour supply side of female employment. Unlike the previous literature, this paper investigates firm-level determinants of female employment in manufacturing firms using a unique micro data set constructed using different sources. After controlling for geographical variation, firm, and industry-specific factors, our results show that larger firms, exporter firms, firms with higher part-time worker ratio, and foreign-owned firms have higher female employment rate whereas younger firms, firms with higher labour productivity, and firms with long working hours have lower female employment rate.

Building a Conceptual Framework of Corporate Social Responsibility: An Experience of Qualitative Approach in Vietnam

ABSTRACTThis study uses qualitative approach to examine the relationship between corporate social responsibility (CSR) determinants (financial performance, industry specific factors, corporate objective, manager’s attitude toward CSR, legal environment, stakeholder requirements and competition), CSR practices and competitive advantage. By using qualitative approach, the researchers have learnt valuable experience in conducting interviews in Vietnam. In-depth interviews with six cases of CSR-oriented firms were conducted to determine the relationship between these factors. The study gained twofold results in terms of valuable experience of qualitative method and its result of building a conceptual framework for academic reference.

Factors of Investment Attractiveness of Mining Industries: Methodology Identification and Assessment

In this study, we consider the highly relevant and, to a large extent, the debatable problem of the investment attractiveness of the subsoil use sphere and, above all, the investment attractiveness of mining enterprises. At the same time, attention is drawn to the fact that the development of mineral resources, unlike any other type of production activity, has its own specifics. It consists primarily in the fact that, along with such factors of production as capital and labor, which constitute the material basis of all production, the most important factor of production inherent in subsoil use is the subsoil itself. And it is their qualitative condition that determines to a large extent the results of the economic activity of mining enterprises. It is clear that without a comprehensive theoretical analysis of the role of the natural factor in the production process, as well as other objective and subjective factors, it is practically impossible to create a reliable theoretical basis for the development of practical measures, the implementation of which could significantly improve the investment attractiveness of extractive activities. Particular attention is paid to the methodology and methods for identifying and differentiating by specific signs specific barrier and restrictive factors that are considered in the investment process in the form of an unsystematic component of investment risk. It is shown that the results of a study of the nature of the influence of industry-specific factors on investment attractiveness are the basis for the development of specific measures to eliminate or minimize barriers to investment.

Determinants of Interest Rate Spreads In Uganda’s Commercial Banking Sector: A Panel Data Analysis

Uganda’s interest rate spreads have persistently remained high despite the financial liberalisation undertaken in the 1990s. Using data for 24 banks, we assess the determinants of interest rate spreads in Uganda’s commercial banking sector for the period 2005-2015. Results show that, among the bank-specific factors, interest rate spreads increase with increase in credit risk, liquidity risk, and capital adequacy ratio. Contrary to most studies and a priori expectations, non-interest income is shown to be positively related to bank spreads. Bank size is shown to be negatively related to interest rate spreads. For industry-specific factors, foreign bank participation in loans markets is associated with higher spreads. For macroeconomic factors, high inflation rates are shown to translate into high spreads, whilst high real GDP growth rates and broad money supply are associated with lower spreads. Contrary to theory and most literature, exchange rate volatility is associated with lower bank spreads. Going forward, banks and government should devise mechanisms to encourage loan repayment, and banks should be encouraged to reduce on holding excess liquid assets. At a macro-level, the Bank of Uganda should maintain its stance on curbing inflation. Economic growth and financial development should as well be encouraged.
 JEL Classifications: C23; E43; E44; G21; L11

Commercial Bank Performance and Credit Risk in Albania

Abstract The banking sector is a complex system composed of a large number of stakeholders that interacts in a non-simple way continuously and which plays the key role in economic development of each country. The economies of developing countries like Albania are characterized by high demand for credit due to increasing investment. The revenues are even higher when the risk is greater. Of the high related risk, crediting leads to high returns. Credit risk is one of the most important types of risk in the banking sector that affect the bank performance, as it exhibits loss probability because of the failure of debtor to fulfill its obligations to bank. In June 2016, the level of non-performing loans in Albania appears in 24.4% of total loans, representing the major obstacle to the development and performance of the banking sector in Albania. The purpose of the estimable model outlined in this section is to capture the effects of macroeconomic, bank specific factors and Herfindahl-Hirschmann index (HHI) in the industry of bank performance. We also include a range of bank-specific variables that have been used in previous empirical studies that examine drivers of bank performance. A recent decline in revenue was observed due to higher provisioning expenses, which reduce banks’ profits. To identify factors affecting bank profitability, we have got to study those factors like bank-specific (internal) factors, industry specific and macroeconomic (external) factors. The internal factors that influence profitability are expressed in terms of efficiency, productivity, competition, concentration, soundness, safety and profitability. Industry specific factor is market concentration, while macroeconomic factors are Gross Domestic Product (GDP), Inflation Rate, and Real effective exchange rate (REER). In this paper, we will test whether lending decisions of all banks operating in Albania exhibit moral hazard. The study carried out an empirical investigation of the quantitative effect of credit risk on the performance of 16 commercial banks in Albania organized quarterly over the period of 14 years (2002-2015).

Robotics and automated systems in construction: Understanding industry-specific challenges for adoption

The construction industry is a major economic sector, but it is plagued with inefficiencies and low productivity. Robotics and automated systems have the potential to address these shortcomings; however, the level of adoption in the construction industry is very low. This paper presents an investigation into the industry-specific factors that limit the adoption in the construction industry. A mixed research method was employed combining literature review, qualitative and quantitative data collection and analysis. Three focus groups with 28 experts and an online questionnaire were conducted. Principal component and correlation analyses were conducted to group the identified factors and find hidden correlations. The main identified challenges were grouped into four categories and ranked in order of importance: contractor-side economic factors, client-side economic factors, technical and work-culture factors, and weak business case factors. No strong correlation was found among factors. This study will help stakeholders to understand the main industry-specific factors limiting the adoption of robotics and automated systems in the construction industry. The presented findings will support stakeholders to devise mitigation strategies.

Measuring Investment Opportunities Using Financial Statement Text

We show that firms’ investment opportunity sets (IOS) are multidimensional. Analyzing Form 10-K texts, we identify 445 unique keywords that predict firms’ future investments during 1995-2009 and combine them into 43 underlying factors. Industry-specific factors include Bio-Pharma, Banking, Information Technology, Oil & Gas and Retail Stores, while more general factors include Equity Intensity, Debt Intensity, Lease, Going Concern and Acquisition. These factors form our multidimensional measures of IOS. They outperform Tobin’s Q and/or industry fixed effects, in predicting out-of-sample (2010-15) investments and related corporate policies, and even inform incrementally over lagged dependent variables. We trace the factors’ improved predictive power to their multidimensional nature, which captures IOS-related variation within and between industries, and stability in IOS that allows 10-K texts to be more informative.

Rating of oil companies by level of tax burden susceptibility to macroeconomic and industry-specific factors

Rating of oil companies by level of tax burden susceptibility to macroeconomic and industry-specific factors

Heterogeneous dividend behaviors: The role of restaurant franchising

The so called “dividend puzzle” has prompted many researchers to examine industry-specific factors in order to explain the dividend behaviors of various industries. However, due to the unique differences in characteristics between franchise and non-franchise restaurants, it may not be appropriate to view the restaurant industry as one entity displaying homogenous dividend behaviors. In this regard, this study investigated the role of franchising in explaining the dividend behaviors of the restaurant industry. The results of this study demonstrate that the dividend behaviors of franchise restaurants are a function of the size of institutional holdings and prior dividend payments, while those of non-franchise restaurants depend on the degree of growth opportunity and financial leverage. The findings further imply that franchise restaurants with higher free cash flows and the resulting information asymmetry closely follow agency theory and signaling theory, whereas non-franchise restaurants with insufficient internal cash strictly follow the pecking order theory.

Firm and industry specific determinants of capital structure: Evidence from the Australian market

We demonstrate the importance of firm-specific and industry-specific factors in the leverage decision on a sample of Australian publicly listed companies from 1999 to 2012. Empirical findings show that some firm-specific factors vary across industries, whereas, several previous studies find an equal impact of these factors. In addition, we find that industry-specific factors have direct and indirect impacts on the formation of the capital structure of Australian firms, but the results of some industry-specific factors are subject to the choices of leverage ratios. Overall, we conclude that industry-specific factors are important in terms of corporate capital structure formation.

Parameters of Profitability: Evidence From Conventional and Islamic Banks of Bangladesh

This paper evaluates the commercial banks of Bangladesh in terms of profitability dimension of performance and also examines the impact of selected determinants and banking system on this dimension of performance. Evaluation of trend in profitability of listed commercial banks of Bangladesh reveals that, on an average, profitability is exhibiting a decreasing trend over the selected period; however, the profitability performance of Islamic banks remained rather high compared to Conventional banks. Profitability measured by Return on Asset is found to be significantly affected by the bank-specific factors, industry-specific factor and the banking system. However, macro-economic factors evidently have no significant impact on profitability of commercial banks of Bangladesh.

Factors potentially linked with the occurrence of antimicrobial resistance in selected bacteria from cattle, chickens and pigs: A scoping review of publications for use in modelling of antimicrobial resistance (IAM.AMR Project).

Antimicrobial resistance is a complex issue with a large volume of published literature, and there is a need for synthesis of primary studies for an integrated understanding of this topic. Our research team aimed to have a more complete understanding of antimicrobial resistance in Canada (IAM.AMR Project) using multiple methods including the literature reviews and quantitative modelling. To accomplish this goal, qualitative features of publications (e.g., geographical location, study population) describing potential relationships between the occurrence of antimicrobial resistance and factors (e.g., antimicrobial use; management system) were of particular interest. The objectives of this review were to (a) describe the available peer-reviewed literature reporting potential relationships between factors and antimicrobial resistance; and (b) to highlight data gaps. A comprehensive literature search and screening were performed to identify studies investigating factors potentially linked with antimicrobial resistance in Campylobacter species, Escherichia coli and Salmonella enterica along the farm-to-fork pathway (farm, abattoir (slaughter houses) and retail meats) for the major Canadian livestock species (beef cattle, broiler chicken and pigs). The literature search returned 14,966 potentially relevant titles and abstracts. Following screening of titles, abstracts and full-text articles, the qualitative features of retained studies (n=28) were extracted. The most common factors identified were antimicrobial use (n=13 studies) and type of farm management system (e.g., antibiotic-free, organic; n=8). Most studies were conducted outside of Canada and involved investigations at the farm level. Identified data gaps included the effect of vaccination, industry-specific factors (e.g., livestock density) and factors at sites other than farm along the agri-food chain. Further investigation of these factors and other relevant industry activities are needed for the development of quantitative models that aim to identify effective interventions to mitigate the occurrence of antimicrobial resistance along the agri-food chain.

Development of Industry-Specific Physical Job Evaluation Tool

Background According to Washington State workers’ compensation data, construction as an industry ranked first in its compensable claims rate of work-related musculoskeletal disorders (WMSD) injuries (Anderson, Adams, Bonauto, Howard, & Silverstein, 2015). Many current physical job assessment tools available for ergonomics practitioners to evaluate work-related musculoskeletal disorder risks of the back, shoulder, hand/wrist and knee are mostly of general purposes. This project sought to identify risk factors pertinent to given industries. The construction industry is used as an example in this demonstration. Approach Four hundred thirty-six construction employees from sixteen companies in the State of Washington were observed and evaluated using commonly used exposure assessment tools: Washington State Checklists (Washington State Department of Labor and Industries, 2004a, b), Strain Index (Moore & Garg, 1995), American Congress of Governmental Industrial Hygienists Lifting Threshold Limit Values (ACGIH, 2005), Liberty Mutual Manual Materials Handling Guidelines (Snook & Ciriello, 1991), Quick Ergonomics Checklist (David et al, 2005; David et al, 2008), and the European Union Vibration Directives (EU, 2002). The physical risk factors that were evaluated are those that have been associated with WMSDs. These risk factors included: awkward postures of the back, shoulder, hand/wrist; lifting; pushing, pulling, carrying; high hand forces (pinching, griping); highly repetitive motions of the hand/wrist; repeated impacts of the hand or knee; vibration (whole body, hand); and any specific tasks with potential WMSD risks but were otherwise not covered in any of the common assessment tools. Following the results of the exposure assessments, a comprehensive physical job evaluation checklist was created by retaining items sensitive to differentiate levels of risks within jobs in the construction industry. From our job evaluations, WMSD risk factors may not be the same between industry groups and as such, industry-specific tools may simplify the evaluation process by focusing on unique exposures. The final Physical Job Evaluation Checklist is currently presented in the form of a spreadsheet available for download and use ( www.lni.wa.gov/Safety/Research/Wmsd/WMSD2010.asp ). Accompanying reference guide is also available to provide instructions how data fields can be obtained or measured. The user can print out a paper form first, record the assessment at a job site, then enter the necessary data into the spreadsheet. The algorithm then generates all the evaluation reports and highlight areas that should receive attention. The goals are to raise general awareness of industry-specific physical factors that contribute to work-related musculoskeletal disorders (WMSDs), and help identify specific aspects of the job that pose a risk for back, shoulder, hand/wrist and knee injury common in the construction industry. Using the Physical Job Evaluation Checklists can help prioritize injury prevention efforts by identifying the jobs, or the aspects of the job that pose the greatest risk of injury. It is also possible to evaluate the impact that proposed jobsite changes have on WMSD risk (before and after exposures). And finally, it is possible to compare exposures between workers performing the same or different tasks. Limitation Due to the study design, the Physical Job Evaluation Checklist IS NOT intended to predict the occurrence of WMSDs or to provide guidance or suggestions on how to mitigate exposure to risk factors of WMSDs.

First Time Reporting of Key Audit Matters (KAM) by Malaysian Auditors

This paper reports on the early first cohort of Audit Reports issued by external auditors in response to the requirement of ISA 701, Communication of Key Audit Matters (KAM) in the Auditor’s Report, which became effective for audits of financial statements on or after 15 December 2016. Based on 15 Audit Reports of financial statements for year ending 31 December 2016 available in early 2017, this paper reports that only one out of 15 had a disclaimer and no KAM reported for the audit as ISA 701 specifies that no KAM should be reported following a disclaimer. The other fourteen audit reports were all clean reports with the number of KAMs reported ranging from one to five. The highest most significant audit matter reported was revenue recognition and inventory valuation followed by asset impairments of both tangible and intangible assets. Justifications by auditors of matters considered most significant ranged from no additional information (it is most significant because it is material) to articulate explicit link with business model and industry specific factors thus compliance with disclosure of KAM may be compliance de jour rather than compliance de facto. Despite the additional requirement to disclose KAM, this study finds no evidence of audit delays. All KAMs disclosed are elaborations of and related to a client’s significant accounting policies choice. From KAM disclosures, readers of audit reports now are informed of the audit risk areas where estimates were made and judgments prevailed challenging auditors to exercise greater skepticism. This preliminary finding provides pointers for greater research into the cost benefits and communicative value of KAM disclosure in the Audit Reports of Listed companies in Malaysia.

Regional Competition in US Banking – Trends and Determinants

Competition in the US banking industry as measured by the Lerner Index has on average increased substantially during the last decade. At the same time, regional differences in competition on the state level have decreased considerably. Based on a dynamic panel framework we find that these developments are mainly driven by industry specific factors such as the costs to income ratio. The empirical evidence indicates that inefficiency and the Lerner index are significant negatively correlated. Macroeconomic conditions appear to have supported these trends in competition, however, to a somewhat lesser extent.

The impact of supply chain relationship quality on performance in the maritime logistics industry in light of firm characteristics

PurposeAnchoring on configuration theory, the purpose of this paper is to evaluate how supply chain relationship quality (SCRQ) differs across firm characteristics (FC) in the maritime logistics industry. In addition, it utilises transactional cost theory to establish the relationship between SCRQ and supply chain performance (SCP).Design/methodology/approachThe data were obtained from a survey with 205 maritime logistics service players (shipping firms, shippers and freight forwarders) in Singapore. MANOVA and t-test analyses are used to examine the difference in SCRQ (i.e. trust and commitment) across FC which includes firm types and ownership types. Thereafter, structural equation modelling is employed to examine the influence of SCRQ on SCP.FindingsThe results indicate that the effects of trust and commitment on SCRQ vary significantly. It was also found that trust as an aspect of SCRQ has a significant impact on SCP, whereas commitment does not.Research limitations/implicationsAs the field data were obtained from only one industry, future replication of the findings to other industries should consider industry-specific factors, if applicable.Practical implicationsIt is suggested that maritime logistics service players should carefully manage trust and commitment to simultaneously enable SCP. By identifying the various aspects of FC that contribute to SCRQ, maritime logistics service providers could devise appropriate strategies for different customer segments more effectively.Originality/valueThis study expands current supply chain research by linking two dimensions of SCRQ in relationship marketing with SCP in supply chain management. It is also one of the first empirical attempts to explore the role of FC in the linkage between SCRQ and SCP in the maritime logistics industry.

New perspectives on psychosocial safety climate in healthcare: A mixed methods approach

The psychological safety of frontline healthcare workers receives less attention in policy and from management than either physical safety or productivity goals. In other industries, Psychosocial Safety Climate (PSC) has been used to better understand how management values shape job design and the health and wellbeing of workers. Our study looks at how PSC theory manifests in healthcare on a day-to-day basis, aiming to explore the factors shaping that climate from the perspective of the frontline worker. A grounded theory approach was used in content analysis of semi-structured interviews with staff from three government hospitals (N = 27), including nursing, medical, allied health, and administrative employees. Findings suggest that PSC theory might at a broad level be applicable to a wide range of industries, such as through key themes like ‘Communication’ and ‘Group Expectations’. However it is important to acknowledge industry-specific factors in how PSC is manifested, such as the major role that PSC plays in the management of systemic risks in healthcare like balancing the ‘Conflicting Pressures’ of staff personal safety versus delivering quality patient care. In addition, practical implications of our study include three methods by which management and Australian policy makers can mitigate psychosocial risks, enacting a positive change in safety climates that better value frontline worker psychological health.

The Early Days of Swatch: Birth of the Fast Fashion Watch Business Model

Purpose – The purpose of this study is to investigate the application of the fast fashion business model outside the apparel industry. The study reviews the business history of Swatch and investigates its business model at the time when the brand was introduced to the market. Swatch repositioned the watch as an accessory or a fashion item, rather than a timepiece, initiating a dramatic strategic shift within a rigid and traditional Swiss watch industry.Design/Methodology/Approach – Due to the limited availability of studies researching applications of the fast fashion business model outside the apparel industry, this study is explorative in its nature and utilizes the case study method. The data necessary for developing a case study originates from secondary sources and from a series of in-depth interviews.Findings and implications – Swatch developed a completely new business model to the watch industry. As the case analysis discusses, this model consisted of several elements commonly related to the fast fashion business model. This extended the fast fashion model across the traditional boundaries of the apparel industry. Limitations – Due to a focus on one case study, which assumes industry specific factors, generalization of findings are limited. Originality – Fast fashion related research is primarily focused on the apparel industry, as the environment in which the model was originally developed. This study extends fast fashion as a concept with valid applications outside its traditional industry.

The Anatomy of Sustainable Growth Rate of Indian Manufacturing Firms

An important parameter to gauge the reasons behind success (failure) of a firm in the form of sustainable growth rate provides useful insights to managers and investors. This research analyzes the variations in calculations and suitability of method of calculating this growth rate using two different formulas. It also intends to examine the extent to which these variations in sustainable growth rate are explained by some of its important determinants. Using panel data regression by decomposing return on equity into net profit margin, asset turnover and financial leverage, results suggest that four key ratios are robust in capturing the variations in sustainable growth rate even after introducing industry-specific factors like industrial growth and inflation in the regression equations. Sustainable growth rate calculated only on the basis of percentage change in book value of equity provides an aggregate view depicting that any changes in sustainable growth rate across industries are random. Further analysis provides evidence that net profit margin drives the sustainable growth of firms in the Indian manufacturing sector.