Vol. 6, No.2, June 2022, 7-35
Received: 02.02.2022, Revised: 04.04.2022, Accepted: 22.05.2022
Developing Case Writing in Smaller Universities Olga KANDINSKAIA
Author: Olga KANDINSKAIA
CIIM – Cyprus International Institute of Management, Cyprus
Abstract: Study programmes in economics and management should be more focused on developing students’ critical thinking skills and the capabilities to solve practical problems. Case method is admittedly one of the best techniques to accomplish these goals. Thus, disseminating the benefits of case method in academic teaching as well as supporting case writing among scholars is of great importance. Despite the many proven benefits of the case method and the growing use of cases in teaching management and economics, it seems that the writing of cases is undertaken by not so many academics. There is evidence of the lack of support at smaller schools to potential case writers from administrators, in terms of motivation, recognition, training, time, and funding, and on the other hand, there is little awareness among faculty about international scholarships, available peer-reviewed publishing opportunities for cases, and peer support via international case conferences. This paper attempts to fill in the existing information gap and offer helpful guidance to faculty and school administrators.
Aim: The aim of this paper is to support the development of case writing in the management and economics subjects by faculty of smaller universities where typically the local peer support is limited or non-existent, while the value of such academic research activity may be underestimated by school deans. The paper offers practical guidance on how to get international support while developing teaching cases.
Design / Research methods: This paper is a policy analysis type of research. It is based on secondary sources as well as primary sources such as personal observations and experience of the author who has been teaching finance and business since 1995, has published the first case in 2015, has authored 10+ cases by early 2022, has received 3 international case writing awards, and has been elected to the Board of NACRA, the leading case research association in the U.S.
Conclusions / findings: The use of case method in teaching management and economics has multiple benefits, including its virtuous role in school accreditations and industry-academia collaboration, as well as its powerful boost to the professional development of faculty. Faculty involvement however will remain limited unless the school deans and the accrediting bodies apply proper motivation to support academic case writing. The paper lists specific policy recommendations for promoting case research and case writing, which are feasible to implement in small universities with a limited budget.
Originality / value of the article: There are currently no papers that present such an overview of the current academic case writing scene, case conferences, funding, peer-reviewed case publication opportunities, as prepared by the author based on the personal experience as finance professor and case writer. It is a unique and valuable practical guidance for faculty members who are looking to get involved in case writing or for deans who are thinking of feasible measures to promote case writing and case research by tapping into the existing global resources and opportunities.
Keywords: case method, peer-reviewed case journals, case research conferences, case writing workshops, scholarships for new case writers, case research associations, NACRA, The Case Centre, rankings of case journals
JEL: A21, A22, A23
Vol. 6, No.2, June 2022, 37-70
Received: 23.03.2022, Revised: 20.06.2022, Accepted: 20.06.2022
Shared value creation and sustainable development: developing a causal model by analyzing energy cooperatives in different institutional contexts
Authors: Ireen GERRITS, Barjan PENNINK
University of Groningen, The Netherlands
Aim: A theoretical understanding of the process, causal linkages, and dynamics of creating shared value (CSV) is largely missing in the field of shared value creation and sustainable development. Hence, this research is explorative by nature and aims to contribute to theory building in this field. First, we collect empirical data and analyze it, to better understand how the shared value creation process in energy cooperatives works. Second, we present a first causal model of the dynamics and relationships between values, actors and cooperation, which needs to be further tested and refined.
Design: First, we collect empirical data and analyze it, to better understand how the shared value creation process in energy cooperatives works. Second, we present a first causal model of the dynamics and relationships between values, actors and cooperation, which needs to be further tested and refined. This research was executed by conducting eight case studies in Belgium and Dutch energy cooperatives. Stemming from different countries, they are all moving towards new business models and provide insights about different institutional contexts.
Findings: The findings show how a variety of values, more actors, and increased cooperation lead to (more) shared value creation. However, these relations are moderated by members’ differing needs, the involvement of the members, and characteristics of the organizational context. Additionally, new influential variables are discovered: professionalization and institutional context.
Limitations: More (experimental) research is needed to exclude alternative causal explanations, as well as and to test and refine the model.
Implications: This study provides a direction for testing the causal linkages found with other research designs and methods or in other organizational contexts. Additionally, the causal model could give practitioners and researchers insights into which variables to manipulate to get more or less shared value.
Contributions: This study uniquely contributes to the knowledge of the concept of shared value creation to ultimately reach sustainable development by combining detailed insights into the value creation process with a comprehensive ready-to-test causal model.
Keywords: Creating Shared Value (CSV), New Business Models (NBMs), Causal model, Energy cooperatives
JEL: B55, L10, M21
Vol. 6, No.2, June 2022, 71-115
Received: 17.02.2022, Revised: 21.03.2022, Revision: 20.04.2022, Revision: 06.06.2022, Accepted: 13.06.2022
Managerial discretions and loan loss provisions in Nigerian banks: empirical IFRS and risk evidence
Authors: Abdulai Agbaje SALAMI, Ahmad Bukola UTHMAN
Al-Hikmah University Ilorin, NIGERIA
Ruth Oluwayemisi OWOADE
Usmanu Danfodiyo University, NIGERIA
Aim: The high level of non-performing exposures and the existing crisis in the Nigerian banking sector is a source of concern. To create a basis for solving the troubles caused by the loan loss crisis, this study investigated the managerial discretionary use of loan loss provisions (LLPs) by Nigerian deposit money banks (DMBs). This is considered in the context of solvency risk and reforms embedded in the adoption of International Financial Reporting Standards (IFRSs).
Design/research methods: Datasets related to the variables of the study were hand-collected from annual reports of a sample of 16 Nigerian deposit money banks over the period of 2007-2017. The analyses were performed using principal components analysis to derive the managerial discretions index (MDI), Prais-Winsten ordinary least square regression to segregate LLP into reported LLPs (TLLP) and discretionary LLPs (DLLP) and appropriate panel data regression models to test the study’s hypotheses subsequent to series of diagnostic tests.
Conclusions/findings: The results revealed that managerial discretions negatively influence TLLP and DLLP represented by absolute value of DLLP (ADLLP). This represents an increase in profitability without manipulating loan loss provisions. However, the reforms embedded in IFRSs revealed the use of LLPs for managerial discretions despite reduction in provisioning level noticeable during IFRS. The situation of Nigerian banks threatened by solvency risk use of LLPs for managerial discretions while attempting to increase profit was exemplified in the increase in ADLLP rather than TLLP. However, improvement was noticeable for risky Nigerian banks during IFRS. The managerial discretionary use of LLPs especially during IFRS was engendered by use of LLPs for capital management and earnings smoothing rather than earnings signalling as further revealed. This shows that adoption of International Financial Reporting Standards reduces reporting quality of Nigerian banks in their loan loss decisions.
Originality/value of the article: The derivation of MDI from measures of earnings smoothing, capital management and earnings signalling is the study’s contribution to accounting for loan losses literature. The adjustments to LLPs to reduce variability of earnings, meet up with minimum regulatory bank capital adequacy ratio and signal strength to absorb future losses encapsulate earnings smoothing, capital management and earnings signalling respectively.
Implications of the research: The discretionary use of LLPs found in this study beckons an increased level of surveillance, oversights and reforms on the part of the regulators for compliance level devoid of managerial opportunistic behaviour to be identifiable with Nigerian banks.
Keywords: Deposit money banks, IFRSs, loan loss provisions, managerial discretions, solvency risk. JEL: D22, G21, G28, L20, M41.
Vol. 6, No.2, June 2022, 117-140
Received: 18.06.2022, Accepted: 22.06.2022
The Effect of Cash Holdings on Financial Performance in German and Dutch Multinationals
Author: Annika POST
University of Groningen, The Netherlands
Abstract:
Aim: A global rise in inflation has sparked a renewed interest in the matter of cash holding decisions in firms. Increasing inflation makes for different cash holding practices, but the effect of cash holdings on firm performance remains unclear. This study aims to determine what the effect of higher cash holdings is on financial performance in German and Dutch multinational corporations (MNCs)
Design / Research methods: The sample consists of 105 MNCs, 69 of which are from Germany, while 36 firms are Dutch. Through a standard OLS regression, financial performance, measured in return on assets, is regressed on cash holdings, measured in a cash-to-assets ratio.
Conclusions / findings: A negative relationship is found between cash holdings and financial performance. This is because agency costs are more considerable when pools of cash become larger. Moreover, the relationship is significantly negative in the German subsample, but not in the Dutch subsample. This could be explained by differences in masculinity in national culture.
Originality / value of the article: The effect of cash holdings on firm performance has been neglected in the literature. By focusing on two similar countries, and introducing national culture into the discussion of cash management, the study is valuable to both management and literature.
Limitations: Research design is rather limited. Findings are preliminary, and need to be verified through the use of more extensive studies.
Keywords: Cash Holdings, Firm Performance, National CultureJEL: G30