1,721,417 research outputs found
The value relevance of firms’ anti-bribery and corruption efforts the Italian evidence
No full textIn this paper, we utilized a sample of Italian companies to explore the influence of firms’ Anti-Bribery and Corruption efforts on firm value. On a sample of 47 Italian listed companies followed by Asset4 (Thomson Reuters business collecting corporate social responsibility data) during period 2002 to 2013, we investigate the relevance of information related to firms’ Anti-Bribery and Corruption efforts in explaining stock price through the accounting-based valuation model developed by Ohlson (1995). Results corroborate empirical evidence of a positive correlation between efforts made by firms in avoiding bribery and corruption during operations (i.e., whether a company describes, claims to have or mentions processes in place to avoid Bribery and Corruption practices at all its operations) and stock price
Neuroscience evidence for economic humanism in management science: Organizational implications and strategy
No full textGlobalization phenomena and Information & Communication Technology (ICT) are producing deep changes worldwide. The economic environment and society where firms both cooperate and compete with each other are rapidly changing leading firms towards recognizing the role of intangible resources as a source of fresh competitive advantage. Experience, innovation and the ability to create new knowledge completely arise from the act of human resources inviting firms to focus on how to generate and shape knowledge. Therefore, the future of firms depends greatly on how managers are able to explore and exploit human resources. However, without a clear understanding of the nature of human beings and the complexity behind human interactions, we cannot understand the theory of organizational knowledge creation. Thus, how can firms discover, manage and valorize this "human advantage"? Neuroscience can increase the understanding of how cognitive and emotional processes work; in doing so, we may be able to better understand how individuals involved in a business organization make decisions and how external factors influence their behavior, especially in terms of commitment activation and engagement level. In this respect, a neuroscientific approach to business can support managers in decision-making processes. In a scenario where economic humanism plays a central role in the process of fostering firms' competitiveness and emerging strategies, we believe that a neuroscience approach in a business organization could be a valid source of value and inspiration for manager decision-making processes
Firms’ borrowing costs and neighbors’ flood risk
Full text linkThis study examines whether Italian firms exposed to physical climate risks incur additional borrowing costs due to spatial spillovers. Using a sample of 419,040 firm-year observations from 2016 to 2019, we find a positive relationship between a firm's cost of debt and its neighborhood's average exposure to climate risk. According to our findings, the costs associated with neighborhood climate risk are as relevant as those associated with a firm's direct risk, with small businesses being the only ones affected by spillover effects. These results may be explained by small enterprises' lack of financial diversification, poor bargaining power, and strong reliance on credit from financial intermediaries.Climate change promises to be massively expensive, which is already altering the financial landscape for businesses in many countries. Prior investigations into the effects of climate-induced phenomena (e.g., floods and severe weather) on borrowing costs have revealed that firms in flood-prone zones are subjected to heightened loan expenses. The burden is disproportionately heavier on smaller enterprises, which are more adversely affected by the economic repercussions associated with proximity to high-risk areas. With a focus on Italy, this study highlights the financial strain climate change imposes on businesses, emphasizing how smaller companies-crucial to local economies-face amplified risks, which could exacerbate economic inequality in areas vulnerable to climate threats. There is a pressing need for precise policy measures to safeguard and aid these at-risk businesses. Implementing such policies is vital for fostering more resilient local economies that are better prepared to navigate the financial complexities induced by climate change
Value Relevance of Stakeholder Engagement: The Influence of National Culture
No full textOur study investigates whether stakeholder engagement is associated with a firm's valuation and the value relevance of accounting earnings. Since prior literature posits that the economic consequences of such practices may depend on the specific environment in which they are adopted, we also explore whether these associations are affected by the cultural traits of the country in which a firm operates. Based on a worldwide sample of firms for the period 2002 to 2014, we document that stakeholder engagement positively influences market-to-book value of equity, without enhancing the value relevance of firm's accounting earnings. Drawing on Schwartz's cultural framework, we show that the results hold only in countries with a low (high) level of embeddedness and hierarchy (mastery). Our study contributes to the literature exploring the economic consequences of non-financial information and the importance of institutional characteristics for economic outcomes. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment
Family businesses in Eastern European countries: How informal payments affect exports
No full textThis article investigates the effect of corruption on the export share of family firms in Eastern European countries. Using the Business Environment and Enterprise Performance Survey and panel data methods, we find that, in contrast to non-family firms, family firms are rather sensitive to corruption. In particular, the export share of family firms is positively associated with informal payments that aim to facilitate business operations. There are at least three compelling explanations for these results. First, if family firms are more risk averse than non-family firms, informal payments may represent additional export risk insurance. Second, informal payments may help family firms compensate for the lack of managerial capabilities to export. Finally, when institutional inefficiencies obstruct business, corruption may be a tool for family firms to protect their socioemotional wealth
ENTREPRENEURIAL CULTURE, FAMILY BUSINESS AND NEW INTERNATIONAL MARKETS. THE IMPORTANCE OF INSTITUTIONS STRATEGY AS ATTRACTION FOR VENTURE CAPITALIST
No full textThis paper wants to investigate whether Institution strategy enforced during financial crisis have been able to attract venture capitalist. Furthermore we study the potential impact of an active venture capital market over family business firms’ growth overall in international perspective.
Due to the global economy crisis, the persisting financial difficulties of Euro area, the weak recovery in several other advanced economies (e.g. United States), the expected slowdown in economic growth in China, India, as well as the other elements composing the BRIC’s acronym due to the high volatility among financial markets, policy maker are still facing the following question: “which regions can drive growth and employment creation in the short to medium term?” (The Global Competitiveness Report: 2012/2013).
For this reason governments tried to encourage entrepreneurship in order to boost economic growth and job creation; however young entrepreneurial firms have difficulties in rising funds from equity investors and banks, due to the high level of conflicts of interest among the two categories.
Since an active venture capital market can boost economic growth and solve asymmetric information problems, we can understand immediately the potential link between those three categories
The value relevance of “assured” environmental disclosure: The Italian experience
No full textPurpose – This paper aims to provide insight into how environmental information is reflected in the market value of listed Italian companies. In particular, it investigates the value relevance of voluntary environmental information disclosed by companies and the influence of environmental policies assurance. Design/methodology/approach – The method used is the accounting-based valuation model used by Cormier and Magnan (2007), analogue to the one developed by Ohlson (1995), which considers market value of equity as a function of book value, accounting earnings and environmental indicators as provided by Bloomberg. The analysis in this paper is based on the environmental disclosure score (i.e. proxy of a company’s transparency in reporting environmental information) and the assurance practice (i.e. whether or not the company’s environmental policies were subject to an independent assessment for the reporting period). Findings – Results partially support initial conjectures, i.e. the environmental voluntary disclosure represents value-relevant information positively correlated with firms’ market value. Furthermore, when such information is subject to an independent assessment for the reporting period, an incremental benefit deriving from the assurance of such information cannot be found. This is similar to the findings of Cho et al. (2014), i.e. the market perceptions on assurance may need to be developed before the environmental report assurance market in Italy can develop. Research limitations/implications – Limitations are related to the small sample located in a single country, meaning that results may not be generalisable. The implications are that other methods may provide further value, but these may need to be based either on different data or larger samples (i.e. cross-country analysis). Originality/value – The increasing importance of environmental issues for economic decision-making and the presence of ethical investors create incentives for environmental information disclosure, which is becoming increasingly significant for comprehensive firm valuation. However, for this information to serve its role, disclosure must be credible. Hence, there are many companies that resort to voluntary assurance of environmental policies, motivated by a need to demonstrate credibility with external stakeholders. Notwithstanding, the influence of verification practice over environmental disclosure on a low regulation country has not yet been completely explored. This paper aims to fill this gap
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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