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Purpose This paper aims to analyse a current theme of international interest regarding the increasing role of institutional investors in corporate governance. The role of institutional investors is getting elevated in world’s corporate market day by day due to their large shareholdings and having expertise in investment matters. However, their role and importance has not yet been accepted and explored in Pakistan. Therefore, this paper fills this gap and explores their role in Pakistan’s corporate governance by using a comparative study as to the role of institutional investors in the UK’s corporate governance. This paper identifies the failures of corporate governance in Pakistan and explores how institutional investors can help to overcome these issues.Design/methodology/approach This research paper uses a comparative approach based on documentary analysis. It conducts a comparative study of the role of institutional investors and the related code of corporate governance in Pakistan with that of the UK. It analyses the existing studies and the data relating to the role of institutional investors in Pakistan’s corporate governance and formulate recommendations to enhance the role of institutional investors for the betterment of corporate governance practices in Pakistan.Findings This paper finds that the role of institutional investors in Pakistan’s corporate governance is under-developed and the fund industry is immature. Though there is a considerable scope for them to work in Pakistan’s business market and play their role in the development of corporate governance in the listed companies of Pakistan. For this purpose, the guidance can be taken form the “Combined Code of the UK”. A number of recommendations have been formulated through which the role of institutional investors can be enhanced for the development of corporate governance practices in the business market of Pakistan.Originality/value This paper analyses the role of institutional investors in Pakistan to formulate recommendations through which this role may be enhanced for the development of corporate governance principles and practices in Pakistan. This paper fills a gap in the existing literature relating to the role of institutional investors in Pakistan, as there is a dearth of research in Pakistan concerning this issue. Further, it contributes to the on-going debate on the increasing role of institutional investors in corporate governance more widely. [ABSTRACT FROM AUTHOR]

Purpose: To the best of the authors' knowledge, this paper is a first attempt to deal with the phenomenon of new venture failure from the business network perspective of the Industrial Marketing and Purchasing (IMP) Group. In particular, this study aims to explore the post-failure phase of a new venture to investigate what happens to the new venture's resources and relationships in the aftermath of its failure and the role of the entrepreneur in this process. Design/methodology/approach: The paper builds on an explorative multiple case study of two failed new ventures, unfolding the failure and post-failure phase: evidence from both cases is confronted and discussed. Findings: This study shows that the post-failure is a complex phase of recombination of activities and residual resources that may lead to new business opportunities. It is discussed that residual resources influence the direction and extent of post-failure activities in terms of restrictions as well as opportunities to restart new projects or ventures. It is also shown how the entrepreneur deals with the "business remains". Originality/value: While much attention has been devoted to new ventures' failure, the paper focuses on the post-failure phase, an almost neglected topic in industrial marketing research. This study sheds some new light upon the journey through which entrepreneurs come to develop the set of resources, activities and relationships that are not only key to the establishment of the venture but also relevant in the complex and intricate trajectories of post-failure. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the external factors that lead Western firms to fail in the Chinese market, proposing to reveal the main challenges they face in this market, such as culture, guanxi or others. Based on network theory, the authors propose to group failure attributes and actions to predict business failure. Design/methodology/approach: Qualitative research based on in-depth interviews is conducted, with a sample of 21 individuals, from former/current managers that did or are currently doing business in China and a person from the Chinese Government. This research resorts to inductive reasoning and to Atlas.ti software to perform the analysis. Findings: The findings reveal that it is possible to cluster seven distinct categories of external factors. Additionally, Chinese culture, local partnerships and the "catching-up effect" by Chinese firms are also external factors to be considered. The role of guanxi in China is changing, taking another format, and international companies in the Chinese market must take this into account. Research limitations/implications: Several limitations arise in this research, such as information availability and time constraints, sample size and the characteristics of Chinese society (i.e. type of government). This study also proposes further confirmatory research to test the seven clusters proposed. Practical implications: Managers can understand patterns of business failures when targeting the Chinese market and use the seven clusters as a tool to address this market appropriately in the future. Originality/value: This paper intends to shed light on Western firms' business failure in the Chinese market. The authors argue that several external factors linked to network surroundings contribute to Western firms failing in this market and that network failure attribution is still an understudied topic. [ABSTRACT FROM AUTHOR]

Purpose: The objective of this paper is to develop a map of the contours of the phenomenon of retailer failure by aggregating, parsing and extracting known findings regarding business failure in marketing, business and other streams of inquiry to provide a comprehensive understanding of research on the topic. Defined as the converse of retailer performance, an understanding of retail failure is expected to yield insights for performance measurement and benchmarking studies. Design/methodology/approach: The paper includes a systematic literature review, employing state-of-the-art tools such as VOSViewer. Findings: The analysis reveals patterns in the intellectual structure of the research on retail failure, as well as patterns of influence. While the discipline of marketing has been surprisingly limited in the study of retail failure, study of retail failure has been pursued by other branches of the business discipline, and even some disciplines other than business. Originality/value: This paper provides a comprehensive and systematic literature review on the topic of retail failure. [ABSTRACT FROM AUTHOR]

Purpose The setting of private finance companies that failed in New Zealand during 2006-2012 was characterized by weaker corporate governance and enforcement of securities law. This paper aims to explore audit failure in this setting and examine whether auditors erred in their audits of the failed finance companies and whether the audit failure rate of Big N auditors was different from that of non-Big N auditors.Design/methodology/approach This paper adopts the archival research method and uses three sets of evidence to assess audit failure – the frequency of going concern opinion (GCO) prior to failure, misstatements in the last audited financial statements, and the violation of the Code of Ethics.Findings The study finds that only 41 per cent of the sample companies received the GCO in their last audit prior to failure and provides evidence of material misstatements in the financial statements of a number of failed finance companies that received clean audit opinions prior to failure and breaches of the Code of Ethics by a number of auditors. These results strongly indicate audit failure for a number of failed finance companies. The audit failure rate, however, appears less for Big N auditors than for non-Big N auditors.Practical implications The study draws attention of the stock market regulator and the accounting profession to an area, the audit of private finance companies, that needs better quality audits.Originality/value This paper provides systematic evidence of audit failure in failed finance companies in New Zealand. It also furnishes preliminary evidence of Big N auditors compensating for weaker corporate governance. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to provide a comprehensive overview of the sphere of corporate failure in Mauritius. The causes are explained and urge to take preventive measures is justified therein. Recommendations are finally proposed to prevent corporate failure in Mauritius.Design/methodology/approach The methodology used is based on a mixture of the legal research method and case study analysis. This paper analyses every legal instrument such as enactments, binding rules, regulations and guidelines relevant to the Financial Services Commission (FSC) and the insurance sector in Mauritius.Findings The prudential approach by the FSC is on the basis of any attempt for preventing corporate failure in Mauritius. However, there is still room for improvement with amendments that can be brought to various stages, such as the licensing, compliance and regulation stage.Research limitations/implications In terms of research limitation, this is an area that is quite new in Mauritius, implying that literature would mostly be indirect in nature. However, it has a high implication as it positions itself as one of the first pieces of literature on the issue of corporate failure in Mauritius. It can be the beginning of a long and required series of literature much needed in the field.Practical implications The effectiveness of the regulatory power of the FSC is essential for the financial sector’s future of Mauritius. The amendments that are proposed thought this study would help to immediately improve the health of this essential sector.Social implications It posits the business world as an area in which the social impacts are significant. The social implications would be towards researchers, students, practitioners and policymaker. Also, it is a piece of research that would be important for investors who would want to invest in the financial sectors in Mauritius.Originality/value This paper will be highly instrumental to policymakers, regulatory authorities, international investors and local businessmen wishing to enter the financial services sector to have a better idea of how this very important pillar of the economy of Mauritius can be shielded better against failure and how it can be enhanced to promote the economic growth of Mauritius. [ABSTRACT FROM AUTHOR]

Purpose: Guar Gum (GG) is used in Shale oil exploration. Excessive price increase in the Guar futures market had a spillover impact on Guar spot prices and affected Guar export from India as Shale oil producers started exploring alternate sources. In this paper, the role of excessive speculation in the futures market, and its adverse impact on the guar-based agri-business ecosystem have been empirically explored. Design/methodology/approach: Volatility spillover dynamics between WTI crude oil and Guar futures have been explored using bivariate-Granger Causality, BEKK–GARCH models with Wavelet multi-resolution analysis. The wavelet-based models capture the multi-scale features of mean and volatility spillover to identify the effect of heterogenous investment behavior in the time and frequency domain. Findings: The results provide evidence that excessive speculation in futures markets increases spot market volatility. The results also suggest that the excess presence of short-term investors can destabilize the futures market. Research limitations/implications: The purpose of the commodity futures market is to support price discovery and risk management. However, speculative practices can destabilize these purposes leading to the failure of the business ecosystem. Originality/value: The novelty of this paper is twofold. First, it explores the economic linkages between the spot and futures market and tests whether the presence of heterogeneous traders affects the economic linkages. Second, it models the impact of short-term speculative investment on the destabilization of the spot market. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to review the existing literature systematically so as to contribute towards a better understanding of methodological problems of the classical statistical techniques, artificially intelligent expert systems and theoretical approaches to solve the corporate failure syndrome. Design/methodology/approach – This paper presented a systematic review of 83 articles reporting 137 prediction failure models published within 1966-2012 in scholarly reviewed journals in four main disciplines, namely, accounting, finance, banking and economics. The authors performed the systematic literature review with five main sources, namely, Science Direct, Google Scholar, Wiley Interscience, Metalib, Web of Science and Business Source Complete of the Social Sciences. The review modified the approaches used by Aziz and Dar (2006), Ravi and Ravi (2007) and Balcaen and Ooghe (2006). Findings – The results indicate significant body of prior literature on prediction of corporate failure, but a theoretically sound, highly accurate, simple and widely used corporate failure prediction model for stakeholders has yet to be developed. Originality/value – This paper contributes towards a systematic understanding of the methodological problems associated with the statistical, artificially intelligent expert systems and theoretical approaches to solve the corporate failure prediction problems faced by firms in 11 countries. [ABSTRACT FROM AUTHOR]

Purpose: Given the unique nature of Indian family firms and the recent failure of many business houses (Bhushan Steel Ltd., Hotel Leela Ventures Ltd. etc.) it is important to understand the relationship between the earnings management practices of the family firms and the debt. In this paper an attempt towards this has been made. Design/methodology/approach: This study makes use of an empirical approach to understand the relationship between earnings management and debt in the Indian context. This study was conducted by considering a large sample data of 16,629 family firm years spread across nine years. This study makes use of fixed effects and Generalized Method of Moments (GMM) regressions to test our hypothesis. Findings: First and foremost, this research supports the socioemotional wealth theory. It indicates that maintaining the control of the business is one of the socioemotional factors for the Indian family business and Indian family businesses ladened with debt engage in earnings management to protect their socio emotional wealth (control of the business). Evidence for higher earnings management practices for firms with above average debt has also been documented. Further, the fact that real activity earnings management is the preferred earnings management choice over the accrual-based earnings management as majority of debt is from the banks and financial institutions has also been demonstrated. Finally, the analysis indicates that accrual-based earnings management and real activity earnings management are complementary to each other. However, real activity earnings management can also act as a substitute for the accrual-based earnings management but the reverse is not true. Even among the real activity earnings management, cost-based real activity earnings management was preferred over the revenue-based real activity earnings management as the former is more elusory. Research limitations/implications: This research is limited to the listed family firms of India. Since the family firms around the world are heterogeneous the findings from this research might not be extended to other economies. Practical implications: The study has meaningful insights for policy making and monitoring of the family firms. It also aides the investors in taking investment decisions with respect to family firms in India. Originality/value: The study is unique as it integrates the family firms, debt and various types earnings management. Previous studies have focused mainly on accrual-based earnings management. The study also provides insights on the relationship between earnings management practices and debt covenants at various levels of family holdings. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to reflect on the paper “Service failure and loyalty: an exploratory empirical study of airline customers” published 18 years ago. It positions it in the evolving literature on relationship marketing and suggests directions for further research and developments in the area.Design/methodology/approach A review of key contributions of the paper to the study of relationship marketing and the effects of service failures on relationships identifies emerging strands of research.Findings The concept of a “relationship lifecycle” is now widely used in marketing for identifying customer segments. Different points in the lifecycle are associated with differing sets of relationship expectations and levels of tolerance to service failure. Customer relationship management has tended to morph into customer experience management where principles of relationship lifecycles have been applied to mapping customer “journeys” through a service process.Practical implications The original study informed practices of managing relationship expectations and handling failed expectations, depending on a customer’s length of relationship with a company. Although relationship marketing was originally conceived as an integrator of marketing cues, its emphasis on cognitive evaluations may have been too limiting and customer experience management has since introduced additional affective dimensions.Originality/value The original paper had been widely cited and generated discussion and important further research. It has value as part of the emerging landscape of services marketing research. This retrospective analysis locates this historical development with reference to currently popular issues of customer experience management. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to help the financial institutions improve the predictability of business failure of supply chain finance (SCF) clients with the use of external big data set. Design/methodology/approach – A prediction model for the business failure of SCF clients was built upon different theoretical perspectives. Logistic regression method was deployed to test the model. Findings – The authors develop a model that illustrates several key determinants to predict the probability of business failure of SCF clients based on several theoretical perspectives. The results show that taxable sales revenue, frequency of making value added tax (VAT) payment, number of counterparty for VAT invoice issuance, frequency of VAT invoice issuance and firm age are negatively correlated with business failure of SCF clients while the VAT paid and industry clockspeed are positively correlated with their business failure. Practical implications – This paper shows how financial institutions can effectively leverage the external information sources through “unconventional” predictor variables in order to reduce the credit risks associated with business failure of SCF clients. Originality/value – This paper is one of the first to focus on the potential use of financial big data set from external sources to improve of predictability of financial institutions on the business failure of SCF clients. In addition, this paper is a pivotal study on the financial client risk assessment based on taxpaying behaviors, tax amount, firm and industry characteristics. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this study is to explore three paradoxes of service innovation and provide a way forward for fresh thinking on the topic. Design/methodology/approach – Through a conceptual model of service innovation research, the authors challenge the “pro-change” bias and explore what can be learnt from the duality of service innovation. Findings – This paper suggests that research moves beyond a firm perspective to study service innovation on multiple levels of abstraction. A conceptual model based on two dimensions, level (individual, organization and society) and outcome (success, failure), is used to pinpoint and explore three dualities of service innovation: adopt–reject, change–static and good–bad. Originality/value – By challenging the traditional perspective on service innovation, the authors present new avenues for fresh thinking in research on service innovation. In this paper, the authors encourage researchers and managers to learn from failures and to acknowledge the negative effects of service innovation. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine the dynamics of human capital accumulation and human capital depletion in the processes leading to business failure.Design/methodology/approach Building on the human capital theory, strategic human resource and business failure literature, this paper develops a conceptual framework which links the inward and outward dimensions of human capital flows in the business failure process.Findings The analysis sheds light on why some highly skilled individuals may opt to flee declining firms to avoid being stigmatised whilst others become motivated to joint such firms.Research limitations/implications The paper suggests that understanding the nature and dynamics of both flows are essential when seeking to avert collapse.Originality/value In spite of a growing body of research on business failure and intense competition for top talent, much of the existing literature has circumvented the relationship between them. This study develops a unified model towards enhancing our understanding of the human capital flows. [ABSTRACT FROM AUTHOR]

Purpose Financial distress is a socially and economically important problem that affects companies the world over. Having the power to better understand – and hence aid businesses from failing, has the potential to save not only the company, but also potentially prevent economies from sustained downturn. Although Islamic banks constitute a fraction of total banking assets, their importance have been substantially increasing, as their asset growth rate has surpassed that of conventional banks in recent years. The paper aims to discuss these issues.Design/methodology/approach This paper uses a data set comprising 101 international publicly listed Islamic banks to work on advancing financial distress prediction (FDP) by utilising cutting-edge stochastic models, namely decision trees, stochastic gradient boosting and random forests. The most important variables pertaining to forecasting corporate failure are determined from an initial set of 18 variables.Findings The results indicate that the “Working Capital/Total Assets” ratio is the most crucial variable relating to forecasting financial distress using both the traditional “Altman Z-Score” and the “Altman Z-Score for Service Firms” methods. However, using the “Standardised Profits” method, the “Return on Revenue” ratio was found to be the most important variable. This provides empirical evidence to support the recommendations made by Basel Accords for assessing a bank’s capital risks, specifically in relation to the application to Islamic banking.Originality/value These findings provide a valuable addition to the limited literature surrounding Islamic banking in general, and FDP pertaining to Islamic banking in particular, by showcasing the most pertinent variables in forecasting financial distress so that appropriate proactive actions can be taken. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine whether firms use different earnings management approaches when facing financial difficulties and the effects of industry-specialist auditors in constraining those choices. The empirical results suggest that (1) firms with lower risk of business failure but with stronger incentives to adjust earnings upward tend to use real earnings management (REM) income-increasing approaches while (2) at the same time, using discretionary accruals for income-decreasing earnings management, due to constraints imposed by specialist auditors on the use of accrual-based earnings management (AEM). This is consistent with the findings of Chi et al., and the authors do not find similar evidence for the firms with higher risk of failure. Also, (3) regardless of the level of failure risk, firms turn to REM while interestingly, such REM behavior is effectively curbed by industry-leading specialist auditors (specialist auditors with the highest client market share) on financially distressed firms. These results extend the findings of Chi et al. (2011), suggesting that industry-specialist auditors have different tolerance levels for earnings management approaches by firms with different levels of business failure risk. That is, when auditing clients with higher risk of failure, specialist auditors are more likely to maintain higher audit quality through more stringent audit testing and use of more audit staff time to prevent an occurrence of audit failure. Design/methodology/approach: The authors examine earnings management behavior across firms in Taiwan with different levels of business failure risk and the effects of audit partner industry specialization in constraining that behavior. Chi et al. (2011) studied low-risk firms with incentives to adjust earnings upward and found firms use REM when the auditors constrain AEM. The authors extend the work of Chi et al. and observe firms with different levels of failure risk. Findings: The authors find (1) lower risk firms may use discretionary accruals to adjust earnings downward while the authors find no similar evidence for financially distressed firms, (2) lower risk firms may use REM when their industry-specialist auditors curb AEM and (3) the industry leaders among specialist auditors do the same for the financially distressed firms. The results demonstrate the extent to which industry-specialist auditors apply different tolerance levels for earnings management behaviors across firms with different levels of failure risk. Originality/value: The study contributes to the literature in the following three ways: first, the authors fill a gap in the existing literature by comparing firms with higher risk of business failure to firms with lower risk of business failure to explore the possible difference in the two different kinds of earnings management behavior; second, the authors extend the findings of Chi et al. (2011) and examine whether specialist auditors, when auditing firms with higher risk of business failure, will input more audit effort to constrain their clients' use of REM and third, since business failures have a significant impact on the capital markets and any associated audit failures can have an even greater negative impact on investor confidence, the study provides information useful to auditors and regulators in the formation of salient policy regarding the use of REM by firms experiencing high risk of business failure. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the specific causes of failure among Malaysian female entrepreneurs who were provided with financial services by the microfinance institution: Amanah Ikhtiar Malaysia (AIM) to start up their own businesses. Design/methodology/approach: This paper adopts a qualitative-based case study design approach, with data collected from a total of 18 female entrepreneurs who had failed to develop their businesses. In-depth personal interviews were conducted, coupled with personal observation via purposive cum snowball sampling. Findings: Thematic analysis revealed a pattern-based outcome which discloses a variety of causes affecting the failure of Malaysian female entrepreneurship. These causes ranged from inter-related external factors which were perceived as beyond their control, such as personal life events, intensive competition and loan inflexibility to internal causes, which were related to lack of resources, poor financial management and personal dissatisfaction with their own business performance. Research limitations/implications: The findings of this study provide valuable information for Malaysian economic policymakers in how to practically address the objectives of the National Women's Policy (NPW) and improve the innovative quality of their products and services. A thorough understanding of the specific obstacles facing female entrepreneurs in Malaysia is essential if policymakers are to improve opportunity exploitation efficiency and assist in mitigating the external and internal causes of business failure among Malaysian females. Originality/value: Studies in this field have demonstrated that most new "start-ups" fail within three years of their establishment. While determinist, emotive and voluntarist theories can often provide an adequate explanation for the causes of business failure, it is clear that no single factor is usually responsible. Rather, multiple interrelated factors are found to be at play. This study, therefore, provides an integrative model for causes of business failure among small-business female entrepreneurs. It also represents one of only a few such studies in the literature and, to the best of knowledge at the time of writing, is the first such study that used an integrative approach to explain the causes of business failure in the Malaysian context. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to identify the configurations of working capital and customer and supplier diversification employed by successful small and medium-sized enterprises (SMEs) before and during the COVID-19 pandemic. Design/methodology/approach: This study employed a combinatory methodology to analyze how 124 Brazilian SMEs configured – before and during the pandemic – the size of their working capital and their levels of dependency on clients and suppliers. Findings: High levels of working capital and supplier diversification were found to be key to SMEs' ability to thrive before and during the pandemic. However, while SMEs that were growing prior to the pandemic depended on a few major customers, firms flourishing during this time have divided their sales among many clients. Research limitations/implications: This study focuses on what configurations SMEs have adopted during the crisis. Qualitative studies are needed to identify how SMEs reconfigure themselves in the face of a major crisis. Practical implications: The results of this study indicate that SMEs hit by the pandemic should avoid retrenchment strategies. They might have better chances of success if they embrace their vulnerability and take risks to foster growth. Social implications: The results of the study can help SMEs respond to the economic crisis caused by COVID-19, which has already caused the failure of millions of businesses worldwide. Originality/value: This is the first empirical investigation of SMEs that are weathering the pandemic, and in this study, the authors have analyzed the three aspects of their operations, which have been struck the hardest by the crisis. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to study the self and vicarious learning patterns of organizations through operational success and benchmark failure experiences. The study is specific to the Indian telecom sector.Design/methodology/approach This study uses published data of four major telecom firms in India reported by Telecom Regulatory Authority of India (TRAI) and analyzed the influence of aspiration performance discrepancy on organizational learning by hypotheses testing. Feasible generalized least square model with year fixed effects is used to run panel data regression.Findings In the case of operating experience for performance above aspiration, firms fail to learn from their own experience as well as from others' experiences. For benchmark failure experience under positive discrepancy, firms learn from their own experience. For performance below aspiration, no significant result was found. These insights allow managers to reconfigure their learning orientation and to develop an effective mechanism for absorbing crucial knowledge from themselves and peer firms.Practical implications Practitioners should take into account that their knowledge repertoire is essential for learning in good times. This study also motivates managers involved in operating activities to make use of publicly disclosed reports, engage in vicarious learning or form a coalition for developing coping mechanism under negative discrepancy scenarios.Originality/value This paper presents a unique context by studying operational success, and failure experiences of telecom sector in India wherein benchmark for failure was decided by the governing regulatory body, TRAI, unlike other studies where success and failures reference points are intrinsically selected. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to provide an ethical perspective that goes beyond best practice in performance measurement systems in the public sector to help minimise unintended and unethical effects.Design/methodology/approach The paper draws on the ethical concepts of bounded ethicality, ethical blind spots and ethical fading to help illuminate the dark side of performance measurement in public sector organisations.Findings An understanding of the psychological tendencies that create unethical behaviours will assist compliance with ethics and morality and is a way forward towards minimising the unintended consequences of performance measurement in the public sector.Practical implications The findings will assist public sector managers by providing a greater understanding of why so many unethical acts occur and how to overcome ethical failures in the design and use of performance measurement systems.Originality/value The study adds value by contributing to performance measurement literature on the need to recognise the limitations of the human mind and innate psychological processes that make people systematically and unknowingly engage in unethical behaviour. The ethical concepts proposed in this paper go beyond the best practice notions of performance measurement and extend the toolkit of performance measurement techniques in the public sector. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to study the information content of about 3,300 global bank rating changes before and after the Lehman bankruptcy in September 2008 to assess if differences in stock market reactions for small and big banks emerge. Design/methodology/approach – The analysis of the stock market reactions of rating changes (upgrades and downgrades) and bank’s size (small and big) is conducted by an event study approach. Findings – The authors find that while upgrades are not associated with significant abnormal bank stock returns, downgrades have a significantly negative effect. This result holds for both small and big banks, while negative abnormal returns are considerably stronger for the former. For small banks, the authors observe an increase in negative cumulative abnormal returns post-Lehman. The lack of a reaction to large banks’ rating downgrades in the narrow [−1,+1] event window indicates that their stock prices may, to some extent, be insulated from negative rating information even post-Lehman, which the authors attribute to an implicit “too big to fail” subsidy anticipated by equity investors. Originality/value – This paper provides insights to the differences in the information content of changes in small and big banks’ credit rating on stock returns that is unrelated to the well-known size effect. Compared to small banks, big banks seem to some extent be insulated from negative rating changes even post-Lehman – contributing to the on-going too big to fail debate. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to provide researchers with an overview of the service quality and delivery domain, focussing on the inclusion of customer co-production and customer integration. Specifically, this paper concentrates on service quality (including quality measurement), the service environment, controls and their consequences.Design/methodology/approach A comprehensive review of the literature is conducted, analysed and presented.Findings The review shows that service delivery is both complex and challenging, particularly when considering the unique characteristics of services and the high level of customer involvement in their creation. The facilitation, transformation and usage framework identifies how failures can occur at each stage of service delivery, beginning with the characteristics of the service environment, while control theory offers insights into the formal and informal controls that may be applied in the facilitation and transformation stages, which may reduce the likelihood or extent of such failures.Originality/value Despite the fact that it is widely accepted that service quality is an antecedent to customer satisfaction, it is surprising that this customer co-creation aspect has been largely neglected in the extant literature. As such, the role that customer co-production plays in service quality performance has been examined in this paper. It is hoped that this examination will enhance both theoretical and practical understanding of service quality. It would be useful to find modern tools that can help in improving service quality performance. [ABSTRACT FROM AUTHOR]

Purpose In business, the failure to engage difficult conversations productively can prevent winning in the market and invite the competition to forge ahead. This study aims to identify areas in business where avoiding difficult conversations can put winning out of reach and present guidelines for handling difficult conversations in these domains.Design/methodology/approach This is a conceptual paper that presents guidelines on how to manage difficult conversations effectively.Findings This study shows how to manage difficult conversations with regards to the areas of compensation, performance, strategy and implementation.Originality/value This paper catalogs sources of lost value. Furthermore, this study outlines what is needed to capture such value, and briefly explains the principles for how to transform an organization to build such capability as a core competence. [ABSTRACT FROM AUTHOR]

Purpose: Based on theories related to coopetition, the purpose of this paper is to examine the patterns of business-to-business digital referrals inscribed in businesses' digital content. Design/methodology/approach: A complete industry-wise digital data set is formed by extracting digital referrals in all the content pages. The authors outline how digital referrals are strategically used among peer businesses in the peer-to-peer digital network and in the augmented digital network, taking into consideration geographical framing and physical distance. Findings: The authors reveal how geographical framing and physical distance influence peer-to-peer referral patterns in the digital space. Quite counter-intuitively, businesses are more likely to give digital referrals for peers residing in the same region, as well as for peers located in closer proximity. Further, results from the augmented digital network show that peer businesses in closer proximity exhibit greater strategic similarity in their digital referring strategy. Research limitations/implications: The findings extend the understanding of business-to-business coopetition to the digital space and suggest that geographical framing and physical distance can induce reciprocated relationships between peers by offering each other digital referrals. Practical implications: The findings shed light on the formation of a business-to-business digital coopetition strategy using digital referral marketing. Originality/value: This study highlights the impact of digital referrals in business-to-business relationship management, especially in the digital coopetition context. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to examine the characteristics of banks that were the target of intervention in the form of bailout or failure during the financial crisis and, of those subjected to intervention, what characteristics distinguish those that received bailout funds from those that were deemed failures.Design/methodology/approach The study estimates a series of logit regressions in an effort to identify the causes of regulatory intervention while controlling for bank-level characteristics and the economic and regulatory environment.Findings The empirical results indicate that many of the same characteristics associated with banks receiving bailout funds are similar to the characteristics associated with failed banks. However, non-performing loans increased the likelihood of failure, but reduced the likelihood of a bank receiving Capital Purchase Program (CPP) funds, suggesting that regulatory authorities discriminated in their use of CPP funds based on the quality of a bank’s asset portfolio. Further, those banks located in states with limits on de novo branching and those banks that are part of a multi-bank holding company structure were less likely to fail but were more likely to receive CPP funds.Originality/value This paper provides a comprehensive analysis of regulatory intervention in the banking industry during the late 2000s financial crisis and the impact of different banking organizational structures, economic circumstances, and financial fragility on the likelihood of a bank failing or receiving bailout funds. [ABSTRACT FROM AUTHOR]

Purpose – This article focuses on the lessons that can be learnt from the bankruptcy of Kingfisher airlines (KFA). Design/methodology/approach – The paper explores the key reasons behind the failure of KFA. It follows the strategic decisions and actions that KFA took over its lifespan. It highlights the key mistakes that it made and how these ultimately contributed to its demise. It recommends the strategies that other companies can follow to avoid the same fate as KFA. Findings – KFA made many strategic blunders. It frequently and needlessly changed its business model. It unnecessarily spent on providing offerings that customers did not value. It was strategically blinded by the flamboyance of its owner. In addition, it took too long to read the writing on the wall. Even when clear signals were available of the impending crisis it faced, KFA showed limited urgency to resolve the issues. Practical implications – Companies need to focus on a sharp business model and not try to be everything for everyone. Companies that gain valuable insight of what its customers value and design their business model to satisfy these requirements have higher chance of survival. Social implications – It concedes that airlines need to balance the interests of multiple stakeholders. These include its owners, managers, employees, customers, regulators and suppliers. KFA was unable to do this consistently and hence could not survive in the dynamic airlines industry in India. Originality/value – The paper considers the context of the highly dynamic airline industry in India. It is an industry where new competitors are entering, regulatory changes are frequent and industry profitability is low. In such a scenario, companies such as KFA who do not have a consistent and coherent strategy find it difficult to survive. It provides insights into the challenges faced and recommends strategies for the companies to follow so as to improve their chances of long-term survival. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study was to examine entrepreneurs' learning before, during and after entrepreneurial failure and understand the relationship between learning and recovery from failure. Design/methodology/approach: A qualitative multiple case study was carried out based on entrepreneur interviews who have experienced the failure of their businesses. Findings: The study finds that entrepreneurs learn both during the company's lifespan and post-failure, with distinct types and intensities of learning at different life cycle phases. It highlights the link between learning and emotions during the failure process, revealing entrepreneurs' limited awareness of their knowledge gaps, particularly during successful business phases, and shows the difference between women and men. Research limitations/implications: One limitation of this study is that the companies are all located in northern and central Portugal, and the number of entrepreneurs starting new ventures post-failure is limited. Another is a lack of comprehensive measurement of the economic impact, especially on the health of individuals who have experienced the impact of failure. The absence of concrete data hampers understanding and the development of targeted support mechanisms for these individuals. Originality/value: This study stands out for its unique approach, thoroughly exploring the intricate, profound and significant experiences during a crisis, such as a business failure, from the entrepreneurs' perspective. It delves into their learning processes before, during and after the failure, providing a comprehensive understanding. This study evidence that significant learning occurs during the operation of the business, and not during or after failure, due to the limitations imposed by the pain and disorientation it causes. Therefore, if recovery does not occur, learning does not happen either. It also highlights the differences between women and men in their learning experiences, adding a new dimension to the research. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to develop a corporate financial distress model for Indian listed companies using financial and non-financial parameters by using a conditional logit regression technique. Design/methodology/approach: This study used a sample of 96 companies, of which 48 were declared sick between 2014 and 2016. The sample was divided into a training sample and a testing sample. The variables for the study included nine financial variables and four non-financial variables. The models were developed using financial variables alone as well as combining financial and non-financial variables. The performance of the test sample was measured with confusion matrix, sensitivity, specificity, precision, F-measure, Types 1 and 2 error. Findings: The results show that models with financial variables had a prediction accuracy of 85.19 and 86.11 per cent, whereas models with a combination of financial and non-financial variables predict with comparatively better accuracy of 89.81 and 91.67 per cent. Net asset value, long-term debt–equity ratio, return on investment, retention ratio, age, promoters holdings pledged and institutional holdings are the critical financial and non-financial predictors of financial distress. Originality/value: This study contributes to the financial distress prediction literature in different ways. First, there have been, until now, few studies in the area of financial distress prediction in the Indian context. Second, business failure studies in the past have used only financial variables. The authors have combined financial and non-financial variables in their model to increase predictive ability. Thirdly, in most earlier studies, variable institutional holdings were found to affect financial distress negatively. In contrast, the authors found this parameter to be positively significant to the financial distress of the company. Finally, there have hitherto been few studies that have used promoter holdings pledged (PHP) or pledge ratio. The authors found this variable to influence business failure positively. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine variables influencing resort hotels' survival in Spain, which had not previously been analysed. In this country, determining whether the reasons resort hotels close are different from other hotels could be imperative to resort hotels' survival. Design/methodology/approach: The survival analysis used Cox's semi-parametric proportional hazards regression to determine which variables influence hotel closure and how much each variable increases risk of closure. Findings: Resort hotel closure depends on hotel size, location, executive management and the business cycle. Survival is not affected by hotel type or financial structure. Research limitations/implications: While this methodology is common in business survival analyses, it has seldom been applied to hotels and has never been used to study the survival of resort hotels. Practical implications: Companies need to rethink the location of new hotels. For already-built facilities, good management practices are strategically important for resort hotels' survival. Originality/value: This paper explores the reasons why resort hotels survive. The study's selection of variables and methodology and its conclusions are unique. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine how decision-maker attributes unfold to precipitate organisational failure. The analysis brings to light how key attributes such as information-processing capabilities and human capital decay interact to bring about business decline and exit. Design/methodology/approach – The study is based on an integrated review and conceptualisation of the literature. Findings – The study articulates how a set of attributes of decision makers, i.e. human capital obsolescence, powerlessness, meaninglessness and institutional linkages, contributes to organisational failure. Research limitations/implications – The paper concludes by setting out an array of strategies of learning from others’ failures. Originality/value – In spite of a growing body of research on organisational failure, scholars have placed overwhelming emphasis on ecological explanations and business failure prediction models. The study moves beyond the ecological explanations to offer a more fine-grained analysis of firm-level factors that precipitate business failure. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this cross-national study is to evaluate the communality and differences in experiences and policy responses in the run up to the 2007-2009 credit crisis and during its critical early stages in Germany, Ireland and the UK. The importance of shared cognitive illusions regarding the power and stability of financial markets is emphasised. Design/methodology/approach – A multiple case study approach is used which draws on publicly available information to trace developments leading up to bank failures (or near failures) and the evolution of government responses drawing upon alternative paradigms used to justify State intervention. Findings – Findings emphasise the role of state regulatory bodies and their response to the crisis as a primary source of the “rules of the game” in financial markets, here it is the “game of bank bargains” and a potential source of repair. Given the degree of interconnectedness, opacity and complexity of financial markets investors/politicians/regulators will fall victim to cognitive biases which affect their decisions. Research limitations/implications – This case study method allows identification of patterns in decision-makers’ behaviour and yields richer insights than a quantitative approach but is limited in its generalisability. Practical implications – This paper offers practical implications in suggesting that a pivotal step in effective crisis management requires directly addressing sources of uncertainty, namely, time pressure, complexity and opacity of underlying cause–effect relationships, empowering decision-makers to act responsibly. Originality/value – This paper is novel in its illustration of the collective cognitive paradigm for justifying regulatory action across three countries using six case studies. [ABSTRACT FROM AUTHOR]

Purpose This study aims to find out whether firm failure processes are age- and size-dependent.Design/methodology/approach The sample consists of 333 bankrupted Estonian firms. Failure processes are detected with consecutive factor and cluster analyses of six financial variables calculated for three pre-failure years. Multinomial logistic regression is applied to study the interconnections between failure processes (dependent variable) and firm size and age (independent variables). In addition, the contingency between detected failure processes and failure causes obtained from court judgements are studied.Findings Three failure processes are detected, of which the predominant one accounting for 55 per cent of cases is a gradual failure process, indicating a step-by-step decline in the values of financial variables. The two minority processes are mixed, meaning that some financial variables are poor for many years before the bankruptcy and others decrease only shortly before bankruptcy declaration. With an increase in firm size, the gradual failure process becomes more common, but in turn, the presence of the gradual failure process is not age-dependent. Failure causes detected by trustees are not associated with failure processes.Originality/value This paper is the first one to specifically outline the age and size dependencies of firm failure processes. In addition, the interconnection of failure causes and firm failure processes detected with financial variables are rarely studied topics. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to examine the existence of related party transactions (RPTs) in failed financial companies in New Zealand when firms have interlocking directors on the board. We also examine the role of auditors in the review of RPTs. We anticipate that inter-company director relationships promote RPTs, while reputable large auditors (i.e. Big4) restrict the practice.Design/methodology/approach This study uses multivariate analysis to examine the determinants of RPTs. We use an unique, hand-collected database of New Zealand finance companies all of which collapsed during the years 2006-2011.Findings Using a sample of 65 firms (including 38 failed finance firms) and 219 firm-year observations, we found that almost half of the failed finance firms were engaged in RPTs. For the failed firms, those that were engaged in RPTs were mostly represented by interlocking directors and were audited by non-Big4 auditors, implying lower monitoring quality may facilitate RPTs. Using a sub-sample, we also found evidence that firms engaged in RPTs were later convicted of questionable accounting and disclosure practices.Practical implications This research is beneficial to regulators and audit professionals in understanding the potential for adverse outcomes associated with interlocking directors and undisclosed RPTs. While interlocking directors could enrich the external connections of a firm which might facilitate capital resourcing, this study suggests regulators might encourage firms to disclose RPTs when the firm has higher interlocked directors.Originality/value This study is the first to examine the association between RPTs and interlocking directors using a sample of failed finance companies. RPTs and lack of disclosure were widely attributed with being the determinants of corporate failure in the finance sector. However, failed finance firms remain widely under-researched because of a lack of available data. This study circumvent this limitation by using print media and business news portals to collate information on RPTs and interlocking directors. While prior research indicates that weak corporate governance leads to poor accounting practice, using the interlocking board as a proxy for weak corporate governance, this study is the first to substantiate the adverse effect of interlocking boards and undisclosed RPTs with corporate failure. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to analyse the performance of Spanish banking entities between 2009 and 2013, a period marked by the reform of the banking system with a large number of mergers and integrations.Design/methodology/approach First, efficiency is measured applying the data envelopment analysis (DEA) methodology and, then, the Malmquist index is calculated to assess its evolution.Findings The results show that most of the entities have improved their performance from the production approach. However, from the intermediation approach, the efficiency of the sample has deteriorated, which raises questions about the sustainability of the traditional banking business when the current credit restriction strategy is long lasting.Practical implications The comparative analysis demonstrates that, after the deep reforms carried out in Spain, the banking entities maintain similar efficiency rankings to those they had at the beginning of the period analysed. This shows that the reform has created new groups that operate adequately, avoiding the closing of institutions. Despite the better rationalisation of the available resources, the outlook for Spanish banks remains unclear in the current macroeconomic context, which does not favour the banking business.Originality/value The study contributes to the literature on the Spanish banking system because it adds new empirical evidence about its restructuring and it applies a DEA model to a sample before and after mergers. The authors discuss theoretical and managerial implications and offer suggestions for future research on this field. [ABSTRACT FROM AUTHOR]

Purpose The aim of this paper is to see how NOT to manage an acquisition through the case study of one of the worst M&As in recent years: Emporiki Bank’s by Crédit Agricole. Although the role of the banks is to manage risk, the acquisition of Emporiki by Crédit Agricole shows how easy it is, when ill prepared, to make one mistake after another and get trapped without a way out. It can even cause to take such desperate decisions as in this case sell an entire bank for one single euro.Design/methodology/approach General review.Findings The paper shows that being a very successful bank does not guarantee in any way good M&As, especially in an unknown market. Preparation, understanding of the whole situation and reactivity is key for a successful M&A. Without it, the consequences can be disastrous.Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Most people taking those first tentative steps in the business world will have been urged to speculate to accumulate. Firms considering new ventures or alliances are similarly counseled. Many will testify that such advice is often invaluable. Others will tell different tales though. Dreams have ended in failure due to a wrong move, wrong market or wrong time. Or to some combination of these factors. Often it’s preparation that has left much to be desired. On the face of things, it would be difficult to accuse East Air India of not doing the necessary groundwork. The new carrier clearly aims to hit the ground running, as it prepares to enter the Indian airline industry. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. [ABSTRACT FROM AUTHOR]

Purpose Information vacuums (IVs) arise from organizational failure to satisfy the stakeholders’ informational demands during crises. The purpose of this paper is to expand Pang’s (2013) study of the phenomenon of IV by investigating its nature, stages, intensifying factors and resolution.Design/methodology/approach Print and social media data of five recent international crises with apparent IVs were analyzed.Findings Poor crisis communications are intensifying factors that induce media hijacks and hypes, distancing, and public confusion. A four-stage model maps the phenomenon into a flow chart describing its development. IV termination begins when organizations either respond with information or provide solutions, results, and/or compensation. Natural and strategic silence were observed and defined.Research limitations/implications The study lays the foundation for future examination of how media literacy, governments, and culture, both societal and organizational, induce or exacerbate the phenomenon.Practical implications Immediate, adequate, transparent, credible, and consistent crisis responses manage the IV and crisis, diminish the intensification of subsequent crises, and potentially reduce image and reputational damages.Originality/value The knowledge of the phenomenon is further developed and new theoretical models are conceptualized to provide researchers and practitioners a clearer understanding of how an IV can develop, persist, deepen, and resolve. [ABSTRACT FROM AUTHOR]

Purpose – This study aims to examine the role the structure of corporate boards plays in the failure of the firm. Specifically, it examines whether the remuneration committee is related to corporate failure in the UK. Design/methodology/approach – The study uses 1,835 firm-year observations for 98 failed and 269 non-failed UK-listed non-financial firms between the periods of 1994 and 2011. This study used pooled cross-sectional, fixed and random effects LOGIT models to estimate whether corporate failure is related to remuneration committee in the UK. Findings – The findings indicate that corporate failure is negatively related to the independence of the remuneration committee chairman and remuneration committee’s effectiveness but not remuneration committee’s presence, size and meetings. However, a positive and significant relationship was observed between corporate failure and remuneration committee independence. Practical implications – The findings of the study provide support for the appropriateness of agency theory as analytical lens through which to study the efficacy of remuneration committee, especially the independence of the remuneration committee chairperson, as a board monitoring device, in the context of corporate failure. Originality/value – The paper adds to existing literature on corporate governance by establishing the likely causes of corporate failure in the UK. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explore the relationship of non-financial and financial factors to firm survival, provide evidence of factors related to financial success and distress for prominent Australian agricultural firms, and improve the predictive capacity of financial failure models. Design/methodology/approach – The paper utilizes mixed method exploratory case studies across four Australian agricultural firms (two successful and two failed) listed on the Australian Securities Exchange. Findings – The authors found that the use of an Integrated Multi-Measured approach provided a higher classification rate for the failed group than those provided by an individual measure. We also discovered that non-financial factors associated with the agricultural organizations studied impacted their success or failure. These factors included managements’ involvement in organizational strategy and the composition of the board of directors. It was also apparent that management decision-making approaches may become frozen, or at best restricted, in the face of impending failure, dependent upon the stress level within the organization and the management skill base. Practical implications – The cases studied indicated that non-financial factors of failure occurred prior to any financial predictors, intuitively indicating a relationship between non-financial and financial factors in Australian agricultural firms. Originality/value – The identification of financial and non-financial factors and sound internal processes which distinguish successful and failing firms can be utilized for the development of an early warning predictor of organizational success or failure. [ABSTRACT FROM AUTHOR]

Purpose -- Bankruptcy is a financial failure of a business or an organization. Different kinds of bankruptcy prediction techniques are proposed to predict it. But, they are restricted as techniques in predicting the bankruptcy and not addressing the associated activities like acquiring the suitable data and delivering the results to the user after processing it. This situation demands to look for a comprehensive solution for predicting bankruptcy with intelligence. The paper aims to discuss these issues. Design/methodology/approach -- To model Business Intelligence (BI) solution for BP the concept of reference model is used. A Reference Model for Business Intelligence to Predict Bankruptcy (RMBIPB) is designed by applying unit operations as hierarchical structure with abstract components. The layers of RMBIPB are constructed from the hierarchical structure of the model and the components, which are part of the reference model. In this model, each layer is designed based on the functional requirements of the Business Intelligence System (BIS). Findings -- This reference model exhibits the non functional software qualities intended for the appropriate unit operations. It has flexible design in which techniques are selected with minimal effort to conduct the bankruptcy prediction. The same reference model for another domain can be implemented with different kinds of techniques for bankruptcy prediction. Research limitations/implications -- This model is designed using unit operations and the software qualities exhibited by RMBIPB are limited by unit operations. The data set which is applied in RMBIPB is limited to Indian banks. Originality/value -- A comprehensive bankruptcy prediction model using BI with customized reporting. [ABSTRACT FROM AUTHOR]

Purpose: This study highlights the business failure experienced in pandemic times, its impact on entrepreneurs' perception of failure and the reciprocal relationship between entrepreneurs' perception of failure and individual ambidexterity. Design/methodology/approach: The study provides empirical evidence on interpreting the long-term outcomes of business failure in pandemic times and develops a deeper insight by utilizing a two-year research design (time 1: 2020 and time 2: first half of 2021). It draws on data from 200 entrepreneurs who experienced business failure in the coronavirus disease 2019 (COVID-19) pandemic times which is a global crisis. Findings: The results revealed that both challenge and hindrance appraisals of failure are associated with individual ambidexterity over time. Self-efficacy and social valuation of re-entry decisions are mediators between hindrance appraisal and individual ambidexterity on both time 1 and time 2. Moreover, there is a positive reciprocal relationship between self-efficacy and ambidexterity throughout the two time periods. In regard to participants' current employment status, hindrance appraisal, self-efficacy and perceptions of ambidexterity linkages were found to be significantly different in terms of unemployment and employment. Originality/value: To the best of the author's knowledge, it is the first time that the individual ambidexterity of failed entrepreneurs was explored after hard times in the pandemic. It comprehensively helps to understand the importance of cognitive appraisal of hard times and identifies the perceptional and behavioral consequences of failure in entrepreneurship. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the present study is to examine the failure factors for the construction firms in a developing nation. Furthermore, the comparison of failure factors for private and government firms are evaluated. Design/methodology/approach: In the present study, comparison between private and government construction firms is done in the context of a construction firm failure. About 60 construction firms were selected in and around the Nashik region for the investigation, where a simple multi-attribute rating technique (SMART) is used for analysis purpose. Findings: It is found that for private firms (private contractors and builders) lack of experience is the major factor for failure of the business as against lack of managerial experience is a critical factor in case of a government contractor. Practical implications: The outcome of the present study will be used to guide the policymakers during the implementation of governmental and private projects in order to lessen the construction project failures. Originality/value: Construction company failure is an important aspect in developing countries like India. The limited studies were available in literature which shows failure factors for government and private firms and distinguished them. Hence, the present study extends the construction company failure literature by focusing on government and private firms. Also, the study provides some theoretical guidelines for management to avoid construction company failure in India. [ABSTRACT FROM AUTHOR]

Purpose: In Ghana, even though scholars and experts in the field of economics and finance have expressed their opinions and perceptions on the effect of the pandemic on the Ghana Stock Exchange, there has been no study conducted to that effect. This study, therefore, aimed at examining the impact of COVID-19 on the stock returns on the Ghana stock exchange. This would help policy makers and investors in making efficient decisions. Design/methodology/approach: The outbreak of the novel COVID-19 has been a thorn in the flesh of the world in its entirety, affecting many aspects of life including the stock market. This study, therefore, examined the impact of the outbreak on the stock returns of the Ghana Stock Exchange. The study utilized data from the All Share Prices of the Ghana stock exchange, commonly known as the Ghana stoke exchange composite index (GSECI) for analysis. The data covered the period before the outbreak of COVID-19 and during the outbreak. It was revealed that the Ghana stock exchange experienced better returns on the market before the outbreak of the virus. The outbreak of COVID-19 has led to wide variations in the market increasing the risk of investments. The exponential General Autoregressive Conditional Heteroscedasticity (EGARCH) (1, 1) model also reveals that the outbreak of COVID-19 has a significant negative effect on the returns in the market. The market in these periods of COVID-19 is highly volatile. It is recommended that investors should carefully consider risk mitigation strategies to enable them diversify their investments effectively and efficiently against the high risk associated with the market in this COVID-19 era. Findings: It was revealed that the Ghana stock exchange experienced better returns on the market before the outbreak of the virus. The outbreak of COVID-19 has led to wide variations in the market increasing the risk of investments. The EGARCH (1, 1) model also revealed that the outbreak of COVID-19 had a significant negative effect on stock returns in the market. The market during these periods of COVID-19 was viewed as highly volatile. Research limitations/implications: The outbreak of COVID-19 is hence deduced to have a negative impact on the Ghana stock exchange. However, the knowledge of how the market has been affected by the disease, it is important that financial risk mitigation studies be undertaken. This goes beyond what this study has done. The study can further be expanded to include other important economic variables such as GDP, inflation, exchange rates and the likes in to the model. Practical implications: Investors should carefully consider risk mitigation strategies to enable them diversify their investments effectively and efficiently against the high risk associated with the market in this COVID-19 era. Social implications: It is also important that investors consider diversification of their investments in order to reduce the risk in their investments. It will be more appropriate for most investors to invest with companies such as banks and the telecommunications companies listed on the on the market. This is because most of the telecommunication companies in these times have taken advantage and are making good profit on their businesses. Likewise, some of the financial institutions are considered essential institution in these times. Investing in industries such as manufacturing and the oil and gas sector may be more risky. Originality/value: The decline in economic and financial market indicators could be credited to the failure of most business entities, organizations and firms which are struggling to sustain their operations in these times of COVID-19. These also include firms listed on the Ghana stock exchange with whom investors transact their daily businesses. However, about 70% of the Ghanaian economy heavily depends on these business and firms found in the private and informal sector. According to the Ghana Statistics Service COVID-19 Business Tracker Survey, about 131,000 businesses expressed their uncertainties with the business environment and also faced the challenge of financial accessibility. The study is appropriate to unearth the true effect and offer policy interventions. [ABSTRACT FROM AUTHOR]

Purpose: Framed within the theoretical domain of attribution theory, this study aims to investigate the antecedents of experienced regret following an entrepreneur's business failure (defined as firm discontinuance, closure or bankruptcy) and the impact of regret on personal well-being. Design/methodology/approach: The population of interest was business owners whose businesses had failed within the past five years. The data was collected from 319 failed entrepreneurs using an online survey. Structural equation modelling was used to test the hypotheses presented in this study. Findings: External attribution, including economic uncertainty and contract restrictions, was positively related to feelings of regret. Considering internal attribution, due diligence had a positive effect on regret whereas customer relationship development ability can reduce feelings of regret. Moreover, prevention-focused entrepreneurs were likely to experience higher levels of regret when engaging in extensive consideration in using information. Finally, regret had a detrimental effect on the entrepreneurs' well-being. Research limitations/implications: The research provides fresh perspectives on experienced regret, a relatively unexplored emotion in the entrepreneurship literature. In the context of small business operations, the locus of attribution (associated with business failure) is the key influence on learning following failed business attempts. Practical implications: This study extends current knowledge of regret in the context of entrepreneurial failure, which has a significant catalytic effect on employment and entrepreneurial mobility. Originality/value: This research sheds light on how emotional responses are derived from an entrepreneur's self-assessment of their performance and attribution of blame for failure. [ABSTRACT FROM AUTHOR]

Purpose: Approximately half of all new businesses fail within the first five years of operation. This study was undertaken to understand the behavior of small business (SB) leaders, including their decision-making processes and adaptive leadership practices that enable their organizations to survive during periods of general crisis and intense competition. Design/methodology/approach: In order to understand the lived experiences of our research participants, a constructivist grounded theory approach was used. Thirty-two CEOs and leaders from fifteen organizations were interviewed. Findings: It was determined that successful SB leaders avoid organizational complacency by being continuous learners, who are agile and flexible in determining appropriate management strategies. Additionally, they leverage time management processes, build strong and productive relationship networks and create positive family-oriented workplace cultures to increase their odds of survival. Research limitations/implications: This qualitative study was limited to interviews, observations and analysis of organizational archetypes; therefore, the authors can establish a pattern in behavior but cannot make a causality claim. Practical implications: The findings provide SB leaders with effective concepts, practices and strategies from members of their peer group, which they can test, refine and implement. Social implications: The impact of business failures is often devastating financially and emotionally for the families and employees involved. Learning methods for strategic adaptation that may help avoid business closures could provide a positive societal contribution. Originality/value: There is little empirical research about how SBs strategically adapt during challenging periods. This study helps fill that gap and provides an understanding of how SB leaders adapt to continuous challenges, create value and remain competitive in difficult business environments. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate and analyze the factors affecting the probable failure of rural entrepreneurs so that the most important factors responsible for failure in the business of small and local entrepreneurs are identified. Design/methodology/approach: The present survey was conducted through the descriptive-analytical method by using a researcher-made questionnaire. The statistical population of the study included 1,641 greenhouse owner entrepreneurs in five rural communities. To clarify the key criteria affecting probable failure of greenhouse businesses, LISREL 8.8 computer software was used and the effects of selected indices on the process of probable failure of entrepreneurs were assessed using stepwise regression in the SPSS computer application environment. Findings: According to the results, individual and managerial skills factors, deterrent financial and legal issues, social barriers and infrastructural issues investigated in this study were of the first to the fourth priorities in clarifying factors affecting probable failure of greenhouse businesses. Considering the intragroup relations in these factors, it could be said that individual and managerial skills factors and infrastructural issues had the highest correlation coefficient which could be attributed to individual and management weaknesses of entrepreneurs in understanding infrastructural issues as the most important parameters to be considered in starting businesses. Originality/value: So far, few studies analyzed the failure of rural entrepreneurs and evaluated the probable factors affecting it. Thus, the present study is among the earliest instances in the field and its results could be of great benefit to domestic entrepreneurs and similar cases in other countries. [ABSTRACT FROM AUTHOR]

Purpose This study aims to identify the influences that lead to better memorability of a service by focusing on type of service failure, recovery condition and frequency of occurring.Design/methodology/approach This study used a quasi-experimental design in which customers answered questions about a restaurant they had recently patronized and then evaluated experimentally generated failure and recovery scenarios. Two follow-up contacts were made (by phone and e-mail) to assess their memory of the imagined service failures stimulated by the scenarios. Participants were asked how clearly and vividly they could recollect the service failure and to indicate their behavioral intentions at the time of recall.Findings The type of service failure and the subsequent recovery efforts significantly affect whether negative service experiences are memorable. Specifically, individuals showed a higher likelihood of vividly recalling a core service failure than an interactional one. Moreover, service recoveries were found to be helpful in decreasing the memorability of service failures, and that they were effective in decreasing the resulting negative customer behavioral intentions (i.e. switching behaviors and negative word-of-mouth). However, frequently occurred service failures did not significantly influence the memorability of the failures.Practical implications The current study suggested what characteristics of service failures and situations lead to strong memorability and significantly affect future behavior. Thus, the findings provide important implications for avoiding and handling the failures that trigger strong memorability.Originality/value Previous researchers have emphasized on the importance and urgency of preventing critical service failures. However, it is still unclear what type of service failures and/or factors are critical ones. The current study expands the knowledge by incorporating service failures with memory and investigates the characteristics of memorable service failures, which are likely to be remembered more vividly. [ABSTRACT FROM AUTHOR]