1,721,008 research outputs found
The use of corporate derivatives: effects on firm value in the Italian market
Full text linkIt is an empirical question whether the use of derivatives hedging among firms actually contributes to enhancing firm performances. Despite the increasing use of derivatives by non-financial firms, existing literature still debates about their effect, especially in countries with peculiar corporate governance mechanisms. By using a sample of non-financial Italian firms listed from 2007 to 2018, this paper investigates if the use of several types (currency, interest rate, and commodity) of financial derivatives can affect the value of a company. For measuring the impact of the derivatives and in order to address any possible endogeneity problem, besides using the conventional methodologies applied by previous literature (fixed-effect regression models and system GMM estimators), we run a random forest model, a machine learning technique not yet applied before in this field, and calculate the relative importance of each independent and control variable. Differently from other European countries, findings show that the use of derivatives does not affect the firm value in the Italian market. Therefore, our results confirm the role of corporate governance mechanisms on the relationship between firm value and the use of derivatives and that their impact is country-specific
The impact of CEO turnover on firm performance and insolvency risk - A global analysis
No full textThis research examines the impact of CEO change on company performance by analyzing a global sample of publicly listed firms. The findings demonstrate a significant positive association between CEO change and improvement in a company's Z-Score, indicating the strategic change that a new CEO can bring all over the world regardless of the corporate governance model adopted and cultural differences. The study also finds that the positive impact of CEO turnover on firm performance is present only in the short term (first two years) and are more evident for companies in crisis
Managing for resilience through social sustainable human resource approach: the effect on organisational performances
Full text linkPurpose – The aim of the study is to assess a model that examines the impact of various aspects of socially
sustainable human resource management (SSHRM), such as enhancing employees’ well-being, maintaining a
healthy and safe workplace, and ensuring work-life balance, on the financial performance of organisations
during the COVID-19 pandemic.
Design/methodology/approach – By utilising an Italian sample of 132 listed companies, the study employs
several methodologies, including panel data analysis with fixed effects and OLS, to test the different traits of
SSHRM on the financial results of companies.
Findings – The study reveals that companies who prioritise the well-being of their employees outperform their
peersin terms of market valuation and accounting metrics, which highlights the critical importance of investing
in human resources. Additionally, we find that health, safety and employee turnover positively impact
accounting performances. However, implementing policiesto promote work–life balance does notseem to have
a relevant effect on accounting and market performances.
Originality/value – Our study makes a theoretical contribution to the field of SSHRM literature and
underscores the importance of integrating SSHRM strategies into organisational frameworks
ESG prioritization: the impact of sustainability on mitigating bankruptcy risk
No full textThis research analyzes the intricate dynamics of how ESG factors influence bankruptcy likelihood within global listed com-
panies. Utilizing a comprehensive dataset and a combination of fixed effect models along with a machine learning technique,
the study confirms the assertion that corporations with robust corporate social responsibility practices are less likely to incur
bankruptcy. The findings align with the stakeholder theory, advocating for companies to accord importance to all stakeholders'
interests. Intriguingly, all three dimensions of ESG demonstrate a positive overall influence on the Z-
Score, emphasizing their
financial significance. However, a complexity emerges: while ESG positively impacts a company's Z-
Score in the short term, this
effect may disappear over longer time periods except for the governance factor which retains lasting relevance. Notably, work-
force management, emissions control, and efficient overall management surface as critical variables in diminishing bankruptcy
likelihood. This research underscores the intricate relationship between ESG and financial performance, highlighting the need
for companies to prioritize authentic and enduring ESG initiatives harmonized with their strategic objectives and values, to foster
stakeholder trust and promote long- term financial stability
ESG dynamics: assessing the link between sustainability practices and the cost of capital
No full textThis paper investigates the relationships between environmental, social, and governance performance and the cost of capital
in the European context. Using data from 489 publicly listed companies in the STOXX Europe 600 index over an 8- year period
(2015–2022), comprising 3317 firm- year observations, we analyze variations in this relationship over time. Our findings indi-
cate that companies with strong ESG performance tend to enjoy lower costs of debt, reflecting favorable borrowing conditions
perceived by debt financiers. Conversely, we observe a positive relationship between ESG performance and the cost of equity,
suggesting higher expected returns for equity investors due to perceived long- term risk. Furthermore, temporal analysis reveals
that the relationship between ESG performance and the cost of capital became more pronounced from 2020 to 2022, potentially
driven by heightened attention to sustainability practices and regulatory interventions. This study contributes to the theoretical
understanding of the evolving role of sustainability in financial markets and its implications for corporate finance decision
The relation between cash flows and economic performance in the digital age: An empirical analysis
Full text linkCash flows analysis plays an increasingly important role in the study of business dynamics since cash flows play a key role in the company's economic performance, not only from a standpoint but also in predictive terms. The literature on the subject is poor in number and depth of research, the samples analyzed so far are limited and the statistical tools are weak. Retracing the steps of past research, we studied the relationships between cash flows of several management areas and economic performance, using a complete sample of Italian listed companies in the 2008-2017 period with more solid statistical tools compared to previous studies. The database used to collect all the balance sheet data necessary to conduct our research is Amadeus of the Bureau Van Dijk platform, which already shows reclassified and easily comparable financial statements. Correlation and multiple regression analysis were used to assess if our cash flow proxies could be strong predictors of future cash flow and, consequently, of business performance. The flows for investments and the ability to generate cash, where the latter is positively correlated with future profitability, manage to explain, together with the net cash generation of the company, a large part of the variability of the operating income produced in subsequent periods. The flows from investments seem to be the most suitable for correctly classifying the most profitable companies in the medium-long term, while cash generation, deriving from the characteristic activity, contributes to providing answers, about corporate profitability, on shorter time horizons
Consolidation process in the wealth management industry in the UK, US, and Switzerland: an empirical study on the drivers of change in the asset under management post-M&A
No full textDelving into the influence of sustainability strategy: exploring the influence of sustainability committees on company performance
Full text linkThis research delves into the connection between companies' adoption of sustain-
ability strategies and the consequent effects this has on their overall performance.
Based on a global panel of companies listed between 2015 and 2021, utilizing panel
data analysis with fixed effects regression, the findings indicate that a genuinely
implemented sustainable strategy significantly contributes to the enhancement of
firm performance. Moreover, the efficacy of the sustainable strategy is shaped by its
incorporation into ownership structures characterized by dispersed ownership,
highlighting the pivotal role of board independence in fostering value creation. The
study reveals variations specific to each sector, challenging the applicability of a uni-
versal approach across all industries. The findings highlight the importance of these
approaches in cultivating favorable environmental results, emphasizing the vital links
between environmentally sustainable business practices, strategic decision-making,
and their impact on the environment
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