Business Commons^™

Firm Ownership Form And Interfirm Rivalry: The Case Of Firms Distributing Tva Power, E. Tylor Claggett Jr.

Southern Business Review

E. Tylor Claggett, Jr. is an Assistant Professor of Management, Babcock Graduate School of Management at Wake Forest University.

Implementing An Insolvency Framework For Micro And Small Firms, Aurelio Gurrea-Martinez

Research Collection Yong Pung How School Of Law

Micro-, small-, and medium-sized enterprises (MSMEs) represent the vast majority of businesses in most countries around the world. Despite the economic relevance of these firms, most insolvency jurisdictions do not provide adequate responses to MSMEs. Moreover, with a few exceptions, the academic literature on insolvency law has not traditionally focused on the treatment of MSMEs in insolvency. This article seeks to contribute to the debate by exploring the primary features and problems of MSMEs in insolvency as well as the weaknesses of the ordinary insolvency framework to deal with MSMEs. It also provides a general overview of the primary reforms …

Assessing The Financial Mechanisms For Innovation Support In The Republic Of Uzbekistan: A Comparative Analysis Of Enablers And Constraints To Innovation Across Two Industries, Ravshan Rakhmonovich Khaydarov

Doctoral

Innovation is fundamental not only to individual firms but ultimately to a country's economic growth and stability. Innovation Systems assert that innovation depends not only on how individual firms and external actors operate, but also on the dynamics of their interaction as part of the system. While funding for innovation is a central theme of Innovation Systems models, there is a gap in the literature on this topic, particularly in regard to the role played by government in transition economies (Bruton, Su, & Filatotchev, 2018). The majority of the research has focused on micro/meso-level support, but there is a significant …

When To “Make” And When To “Buy”: A Contingency Theory Of Making Versus Buying Managerial Human Capital, Dhuha Abdulsallam

Theses and Dissertations

When should firms build talent, and when should they buy? There is theoretical consensus that internal hires would exceed externals in performance because of their firm-specific human capital. However, by integrating the creativity and innovation literature, I present a non-traditional theoretical view which argues that in creative environments with a time-lag on related expectations and outputs, externally hired managers would exceed internally promoted managers in several different performance- related outcomes. I also explore the social influence associated with the hiring origin of middle managers by integrating psychology and economic rationale to study the impact of managerial hiring origin decisions on …

Firms Beware! Your Response Matters, Nicole Dilg Beachum

Association of Marketing Theory and Practice Proceedings 2019

On April 9, 2017, security personnel dragged a doctor off United Airlines Flight #3411 when he refused to give up his seat on an overbooked flight. Another passenger videotaped the entire incident, sharing it on social media. The video went viral on Twitter with over 87,000 shares and more than 6.8 million views in less than 24 hours. The following day, the CEO of the company responded to the public’s criticism in a statement and internal email to the company (that later went public). His remarks included an apology, but he also attempted to justify how the encounter was handled, …

Innovation Behavior Of Agri-Food Small And Medium-Sized Enterprises: Emerging Countries, Gaukhar B. Kussainova

Theses and Dissertations--Agricultural Economics

This paper examines the innovative behavior of agri-food firms located in Central and Eastern Europe. In the literature, empirical analyses on innovation activities of firms focus on various case studies from around the world. However, very few studies explored the innovation of small and medium sized enterprises (SMEs) from Central and Eastern Europe’s agri-food sector. The analysis uses the logit estimation method and firm-level data, which are obtained from ERBD-World Bank Business Environment and Enterprise Performance Survey (BEEPS). Results suggest that firms that spent some proportion of their financial budget on research and development (R&D), had workforce training programs and …

Are Accounting Firms Breaching The Age Discrimination Act With The Inclusion Of Mandatory Retirement Provisions, Emily Haggard

Marketing Undergraduate Honors Theses

Age is just a number. This phrase has been murmured time after time in history. From famous movie scenes, song lyrics, pages in books, and wisdom from mothers, everyone has heard this at least once in their lives. Some joke that age only matters in wine and cheese. Some argue that age is all a limitation that the mind gives you. People are taught to never ask a woman how old she is, and as a society we celebrate certain ages such as twenty-one and sixteen, yet shun and deny those such as thirty and fifty. There are rules for …

Survival Drivers Of Post-Incubated Start-Ups: The Effect Of Academic Governance, Simone Scagnelli, Lorenzo Vasile, Mico Apostolov

Research outputs 2014 to 2021

Incubators, spin-offs, industrial networks and consortiums are some of the examples to build-up university–industry links in fostering innovation. University incubators are well known for supporting the growth of start-ups by providing knowledge and research, as well as, sustaining entrepreneurship by the direct involvement of their faculty. In this regard, the aim of this paper is to examine the influence of faculty members on the financial performance of a sample of new technology based firms which have been previously incubated by different Italian University Incubators. Essentially, the results on the presence of academic governance in relation to the financial performance of …

Equity Mispricing, Firms' Innovation And Institutional Investors, Hamid Sakaki

Theses and Dissertations

First essay has two primary objectives. First, I investigate the relation between institutional investors and firms’ innovation activities and second, the impact of different types of institutional investors on firms’ innovation by classifying institutional investors into five groups. After controlling for other determinants of innovation, the results show that higher institutional ownership stability boosts innovation activities measured by the number of patents and citations. The results also indicate that banks, insurance, and investment companies have a positive and significant effect on firms’ innovation, while investment advisors could affect innovation activities negatively. Moreover, when I classify the institutional investors based on …

Macroconstants Of Development: A New Benchmark For The Strategic Development Of Advanced Countries And Firms, Andrey Bystrov, Vyacheslav Yusim, Tamilla Curtis

Dr. Tamilla Curtis

This research proposed a new indicator of countries’ development called “macroconstants of development”. The literature review indicates that the concept of "macroconstants of development" is not used at the moment in neither the theory nor the practice of industrial policy. Research of longitudinal data of total GDP, GDP per capita and their derivatives for most countries of the world was conducted. An analysis of statistical information has been done by employing econometric analyses.

Based on the analysis of the statistical data, which characterizes the development of large, technologically advanced countries in ordinary conditions, it was identified that the average acceleration …

The Geography Of Learning: Ferrari Gestione Sportiva 1929-2008, Mark Jenkins, Stephen Tallman

Management Faculty Publications

This article considers the mechanisms that permit and enhance the movement of highly tacit component (technical) knowledge and geographically sticky architectural knowledge across borders and between clusters and firms. We address a number of critical research questions that relate to intra- and inter-locational knowledge transfer. We use a theory-driven, longitudinal, single case study to develop a conceptual framework to examine and describe how shifting the geography of knowledge sourcing can facilitate architectural change by following the transformation of one business unit within a specialist global organization through a series of evolutionary steps that involved internalizing new component knowledge from other …

Macroconstants Of Development: A New Benchmark For The Strategic Development Of Advanced Countries And Firms, Andrey V. Bystrov, Vyacheslav N. Yusim, Tamilla Curtis

Publications

This research proposed a new indicator of countries’ development called “macroconstants of development”. The literature review indicates that the concept of "macroconstants of development" is not used at the moment in neither the theory nor the practice of industrial policy. Research of longitudinal data of total GDP, GDP per capita and their derivatives for most countries of the world was conducted. An analysis of statistical information has been done by employing econometric analyses.

Based on the analysis of the statistical data, which characterizes the development of large, technologically advanced countries in ordinary conditions, it was identified that the average acceleration …

Narcissism In Public Accounting Firms, Michael D. Akers, Don E. Giacomino, Jill Weber

Michael D. Akers

Similar to other characteristics, narcissism is a personality trait that varies by individuals. While the management literature has examined narcissism, there is limited research of narcissism of professionals in public accounting firms. Using the Narcissistic Personality Inventory (NPI), we assess the level of narcissism in practitioners of public accounting firms by examining differences by gender, age, practice area and position. We also compare our results with a prior study that examined narcissism of accounting majors. Our findings show there are differences between accounting students and accounting professionals for certain traits and gender. We also find there are differences for professionals …

Audit Firms And Disclaimers: Is The Bar Set Too Low?, Keith Hooper, Jing Wang

Faculty of Business - Papers (Archive)

This paper makes the case for the greater regulation of auditors. It argues that the courts are too sympathetic to the use of disclaimers to escape liability to investors, individual shareholders and third parties. The approach is to review the relevant court cases which established the concept of "opinions" and disclaimers as a means of protection and argue for greater recognition of the wider impact of the audit role. The paper finds that the best explanation as to why auditors use disclaimers is Social Darwinism. The application of professional ethics as adumbrated in various codes is not relevant to this …

Corporate Opacity And Cost Of Debt For Family Firms, Liangbo Ma, Shiguang Ma, Gary G. Tian

Faculty of Business - Papers (Archive)

This paper uses a sample of Chinese firms to examine the impact of corporate opacity on the relationship between family control and firms' cost of debt. We find that family control is associated with a lower cost of debt on average, and a negative impact exists mainly in firms with relatively low corporate opacity. We further provide evidence that the moderating effect of corporate opacity becomes more pronounced when investors' perception of controlling families' moral hazard of expropriation is higher. Our results are robust to alternative opacity proxies and controlling for endogeneity of family control using the instrumental variable method. …

How Do Broad-Based Stock Option Grants Affect Firms’ Overall Future Productivity?, Wenjing Ouyang, Menghistu Sallehu

Eberhardt School of Business Faculty Articles

We investigate the impact of broad-based stock option grants on future firm productivity using a sample of U.S. firms from 1990-2006. We focus on stock option grants predominantly to rank-and-file employees (broad-based stock options) because a significant amount of stock options are granted to rank-and-file employees other than the top five named executives. This study documents that the extent of broad-based stock option grants are negatively associated with future firm productivity. Further tests show this negative relation is attenuated by a firm's financial constraints and stock price informativeness but is exacerbated in "new economy" industry firms. We interpret these results …

Does Banks' Dual Holding Affect Bank Lending And Firms' Investment Decisions? Evidence From China, Xiaofei Pan, Gary Tian

Gary Tian

This study investigates the effect of banks' dual holding on bank lending and firms' investment decisions using a sample of listed firms in China. We find that dual holding leads to easier access to bank loans, a result that is more pronounced for non-state-owned enterprises (non-SOEs) than SOEs. We also find that dual holding distorts banks' lending decisions and harms the investment efficiency for SOEs, while resulting in optimal lending decisions and enhanced investment efficiency for non-SOEs. For non-SOEs, further analysis suggests that optimal lending decisions and efficient investment can be achieved for firms with higher ownership concentration, and firms …

Corporate Venturing In Family Business: The Effects On The Family And Its Members, Gaia Marchisio, Pietro Mazzola, Salvatore Sciascia, M. Miles, Joseph Astrachan

Gaia Marchisio

Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the determinants of CE and presents conflicting results on its effects on firm-level performance. We argue that previous studies have overlooked the idea of FBs being complex social systems comprising three components, controlling families, business entities and individual family members; and any business activity in a FB should also be studied with respect to its effects on the family and individual family members, which ultimately impacts the performance. Moreover, previous FB literature addresses CE as a monolithic concept and does not separate its two primary types: corporate venturing …

The Effect Of Financial Status On Earnings Quality Of Chinese-Listed Firms, Feng Li, Indra Abeysekera, Shiguang Ma

Indra Abeysekera

This article investigates the relation between accounting-based earnings quality attributes and the financial status of Chinese companies listed in Shanghai and Shenzhen stock exchanges from 2005 to 2007 by classifying them as either "healthy" or "bankrupt" firms. The authors find that accruals quality, earnings predictability, and earnings smoothness are significantly different between healthy and bankrupt firms, but not earnings persistence. Additional analysis undertaken indicates that firm categories (healthy, financially distressed, and bankrupt) based on financial status does not indicate distinct differences in earnings quality attributes.

Family Firms And Entrepreneurship: Contradiction Or Synonym?, Sascha Kraus, Justin Craig, Clay Dibrell, Stefan Mark

Justin B. Craig

Extract: This Journal of Small Business and Entrepreneurship (JSBE) Special Issue was motivated by increasing intellectual curiosity from within the entrepreneurship academic community to study entrepreneurial phenomenon in a family business context. Family enterprises dominate the commercial landscape in all economies, and interest in the unique challenges facing this business genre is growing. In many family firms, ownership and management are maintained across several generations, and a key challenge for long-term survival is to sustain the entrepreneurial spirit of the founding generation of entrepreneurs (Littunen and Hyrsky, 2000). All firms regularly need to renew their way of doing business in …

Valuation Of Family Firms: The Limitations Of Accounting Information, Tim Hasso, Keith Duncan

Keith Duncan

This conceptual paper explores the extent to which reported accounting information captures unique family firm decision-making and intangible asset factors that impact financial value. We review the family firm valuation-relevant literature and identify that this body of research is predicated on the assumption that accounting information reflects the underlying reality of family firms. This research, however, fails to recognise that current accounting technology does not fully recognise the family firm factors in the book value of the firm or the implications for long-run persistence of earnings. Thus, valuation models underpinning the extant empirical research, which are predicated on reported accounting …

The Anti-Competitive Music Industry And The Case For Compulsory Licensing In The Digital Distribution Of Music, Ankur Srivastava

Touro Law Review

No abstract provided.

Do Venture Capitalists Play A Monitoring Role In An Emerging Market? Evidence From The Pay-Performance Relationship Of Chinese Entrepreneurial Firms, Jerry Cao, Qigui Liu, Gary Tian

Qigui Liu

This paper investigates venture capitalists' monitoring of managerial behaviour by examining their impact on CEO pay-performance sensitivity across various controlling structures in Chinese firms. We find that the effectiveness of venture capitalists' monitoring depends on different types of agency conflict. In particular, we find that venture capital (VC) monitoring is hampered in firms that experience severe controlling-minority agency problems caused by disproportionate ownership structures. We provide further evidence that VC is more likely to exert close monitoring in firms that have greater managerial agency conflict, and thus require more direct monitoring. However, controlling-minority agency problems have a greater impact on …

Do Venture Capitalists Play A Monitoring Role In An Emerging Market? Evidence From The Pay-Performance Relationship Of Chinese Entrepreneurial Firms, Jerry Cao, Qigui Liu, Gary Tian

Gary Tian

This paper investigates venture capitalists' monitoring of managerial behaviour by examining their impact on CEO pay-performance sensitivity across various controlling structures in Chinese firms. We find that the effectiveness of venture capitalists' monitoring depends on different types of agency conflict. In particular, we find that venture capital (VC) monitoring is hampered in firms that experience severe controlling-minority agency problems caused by disproportionate ownership structures. We provide further evidence that VC is more likely to exert close monitoring in firms that have greater managerial agency conflict, and thus require more direct monitoring. However, controlling-minority agency problems have a greater impact on …

Political Connection, Founder-Manager And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary G. Tian

Shiguang Ma

Reciprocal relationship, often regarded as mutually beneficial and secure, can actually be destructive and result in inefficiency. We provide evidence of such double-blade by studying the impact of political connection on corporate governance. Private firms in countries where the government controls the allocation of resources have incentives to seek political connections by hiring politicians or ex-politicians as top executives. Such political capital, however, may turn into political constraint when the CEOs fail to perform but use connections to entrench themselves. We take advantage of the unique setting in China to illustrate this argument. We show that politically connected CEOs have …

The Stock Market Implication Of Political Connections: Evidence From Firms' Dividend Policy, Jerry Cao, Sheng Huang, Qigui Liu, Gary G. Tian

Qigui Liu

Political connections are valuable for shareholders of privately-run firms especially in countries with weak legal institutions. We study the effect of a firm's political connections in the public equity market by focusing on its impact on the firms' dividend policy. Prior studies suggest that dividends signal the commitment for proper treatment of minority shareholders and thus high growth firms pay dividends to establish such a reputation for better access to equity market in the future. Using a sample of privately-owned Chinese firms, we find that politically connected firms are less likely to pay dividends and pay less if they pay. …

Actual And Preferred Hrm Practices In Domestic And Foreign Invested Firms, Palli Mulla K A Chandrakumara, H Gunathilake, John Glynn

John J Glynn

This study examines differences between actual and preferred HRM policies and practices in domestic firms (DF) and MNC subsidiaries (MNCs) in Sri Lanka. The paper argues the existence of within-country differences in HRM practices between MNCs and DF. The analysis and findings are based on 487 responses from employees and HR executives of eight manufacturing sector companies. Results indicate that differences exist between MNCs and DF in not only actual HR practices, but also in preferred HRM practices. Within-culture diversity of both employees' preferences for and actual HRM practices between DF and MNCs was evident. The findings contribute to cross-cultural …

Actual And Preferred Hrm Practices In Domestic And Foreign Invested Firms, Palli Mulla K A Chandrakumara, H Gunathilake, John Glynn

Anil Chandrakumara

This study examines differences between actual and preferred HRM policies and practices in domestic firms (DF) and MNC subsidiaries (MNCs) in Sri Lanka. The paper argues the existence of within-country differences in HRM practices between MNCs and DF. The analysis and findings are based on 487 responses from employees and HR executives of eight manufacturing sector companies. Results indicate that differences exist between MNCs and DF in not only actual HR practices, but also in preferred HRM practices. Within-culture diversity of both employees' preferences for and actual HRM practices between DF and MNCs was evident. The findings contribute to cross-cultural …

Complex And Diverse Roles Performed By Non-Executive Directors In The Context Of The Implementation Of The Non-Regulatory Codes Of Corporate Governance: Evidence From Small And Medium Firms In The Uk, H Gunathilake, Palli Mulla K A Chandrakumara

Anil Chandrakumara

This study aims to address two interrelated issues. (1) What is the role of nonexecutive directors (NEDs) of public companies listed in the Alternative Investment Market (AIM) in the UK? (2) Whether AIM listed companies accept the principles and provisions of the Combined Code of Corporate Governance (CCCG)? And, if so, to what extent? The findings indicate that the nature of task of NEDs of AMI listed firms is characterised by multiplicity of tasks and task variation by the type of chair. This study contributes to fill the knowledge gap in the literature with regard to the role of NEDs …

The Effect Of Ownership Structure On Leverage Decision: New Evidence From Chinese Listed Firms, Qigui Liu, Gary Tian, Xiaoming Wang

Qigui Liu

This paper examines the effect of state control and ownership structure on the leverage decision of firms listed in the Chinese stock market. Our results show that state-owned enterprises (SOEs) have higher leverage ratios than non-SOEs, and SOEs in regions with a poorer institutional environment have higher leverage ratios than SOEs in better regions. We also show that the largest shareholding (the percentage of shares held by the largest shareholder) in the SOEs has a negative relationship with the leverage ratio, while the largest shareholding in non-SOEs has a non-linear relationship with the short-term and long-term debt ratios. Finally, this …