Ayuko Komura - Graduate student, Graduate School of Business Administration, Meiji University, Tokyo
Titre / Title
Impact of the Number of Transactions on Sales Stability : Two Analyses Based on the Data from a Japanese Hotel Chain
number of transactions ; stability of sales amount ; customer relationship ; customer satisfaction ; revenue management
Résumé / Abstract
Measuring the stability of sales amounts requires that the factors that stabilize them be identified. One of these factors, the strength of the customer relationship, is the focus of this study. This study uses the number of transactions (NOT) as a variable reflecting the customer relationship to examine its impact on the stability of sales amounts using data of a hotel chain (HC) in Japan. First, we investigate the impact of the NOT on the ratio of sales change. Then, we determine the impact of the NOT on the inertia of the sales amount. The results indicate that the NOT has a positive impact on the sustainability of the sales amount. The first analysis shows that the NOT has a positive effect on sales stability, and the second indicates inertia in the sales of the customer segment of the large NOT. This research suggests that the NOT could be used to forecast sales amounts. Categorizing customer segments based on the NOT produces two sales groups—sustainable and not-sustainable sales. Sustainable operating cash flow can be calculated based on the sustainable sales amount, providing information that could improve investment decision making.
In this study, we investigate the credit substitution between bank loan and five alternative financing sources including leasing arrangement, trade credit, credit cards, equity and informal finance by small and medium firms. We use an international dataset of 41 developed and developing countries compiled from two enterprise surveys led by World Bank in 2005. We examine credit substitution across size, categories of constrained firms and institutional development. Our results show that credit cards and informal finance are the most significant substitutes for firms denied on bank loan. On the other hand, differences in the credit substitution or complementarity exist across firm size and categories of discouraged firms. We find evidence on the lender’s monitoring advantage in collateral value through leasing and trade credit for medium firms. While discouraged firms due to burdensome procedures of bank loan increase trade credit and credit cards, discouraged firms due to high interest rates are likely to rely less on alternative sources more expensive. Overall, small and micro enterprises are more likely to substitute expensive financing sources for bank loan. The results also indicate that legal protection and financial development facilitate constrained firms in using alternative sources to fund suitable financing purposes.
credit substitution, bank loan, alternative financing, legal protection, financial development
This paper revisits the question of the impact of dividend announcements on the stock market. In particular, it examines 841 variations of dividend announcements of 112 french companies during the whole period of 2004 to 2012. Its interest is due to the fact that the financial crisis of 2007-2009 was taken into consideration. Using an event study methodology, we realized a comparative analysis for three-years periods before, during and after the last financial crisis. Overall, we observe that investors are sensitive to variations of dividend announcements. But, the market is more sensitive to dividend increases than either form of variation over the period after the crisis. This finding may conflict with many existing works showing that the market is more sensitive to the dividend reductions announcements. However, the market reacts more to dividend cuts announcements during the period of financial crisis ; but instead, these reactions are significantly positive. This rather contradicts the information signaling hypothesis which assumes that unfavourable informations like dividend cuts might be associated with negative abnormal returns. Moreover, the most significant market reactions observed over the financial crisis period are concentrated on days before the dividend announcements dates. Finally, we also found that the market reactions can be explained by the recent financial crisis through the asymmetry of information phenomenon.
dividend, market reactions, financial crisis, information asymmetry, event study
Michel Magnan - John Molson School of Business, Concordia University, Stephen A. Jarislowsky Chair in Corporate Governance
Titre / Title
Dirty Surplus Accounting and Dividend Payout in the Banking Industry
coauteurs / co-authored with
Michele Fabrizi - University of Padova
Elisabetta Ipino - John Molson School of Business
Antonio Parbonetti - University of Padova
Résumé / Abstract
This paper investigates whether the fair value accounting for available-for-sale (AfS) securities and the capital regulation permit to shift risk from shareholders to creditors. Using a sample of 5,510 firm-year observations generated from 754 unique U.S. banks from 1998 to 2013, we find that banks realize gains on available-for-sale securities to distribute resources to shareholders in the form of dividends, while keeping loss-making assets in the balance sheet. Banks experiencing a decline in earnings or regulatory capital appear to rely on realized gains to pay dividends to a larger extent than banks that do not show a decline in earnings or regulatory capital. Our findings indicate that to counterbalance the increased risk banks change their lending behavior.
« Impacts financiers de la démarche RSE, enjeux et mesures »
Armin Schwienbacher - Univ. Lille Nord de France - SKEMA Business School
Titre / Title
« Entrepreneurial risk-taking in Crowdfunding Campaigns »
Résumé / Abstract
This paper investigates sources of risk-taking in « reward-based » (« pre-purchase ») crowdfunding campaigns. While crowdfunding helps entrepreneurs to obtain feedback on market demand (next to raising money), it may lead to project discontinuation if not enough money is raised during the campaign. This often leads entrepreneurs to raise more money to minimize project discontinuation. This effect is exacerbated when there is a risk that the idea is quickly replicated by others, leading to even higher fundraising goals but also to fewer projects offered on platforms. Conversely, the presence of professional investors (business angels, venture capitalists) reduces the entrepreneurs’ incentives in their crowdfunding campaign, in part « crowding out the crowd » from the platforms, and thus affecting risk of failure. The optimal funding structure turns out to be a co-investment model that combines the crowdfunding and professional investors, supporting the notion that crowdfunding can complement rather than substitute existing investors.