Business Commons^™

Endogenous Market Choice, Listing Regulations, And Ipo Spread: Evidence From The London Stock Exchange, Hafiz Hoque, John Doukas

Finance Faculty Publications

This study examines the endogenous market choice and its impact on underwriter spread if Alternative Investment Market (AIM) IPOs that meet Main Market (MM) listing requirements had issued equity in the MM during the 1995–2021 period. We find that the spread is 1.33% higher in the AIM than the MM for IPO listings that meet the MM listing requirements. This finding suggests that AIM companies, meeting the MM listing requirements, could have saved more than £100 million by going public through the MM than the AIM market. We also find that this spread differential is attributed to the issuing firms' …

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 …

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, …

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 …

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 …

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 …

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. …

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

Accounting Faculty Research and Publications

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 …

Adopting An Open Innovation Paradigm: Managerial Perceptions And The Innovation Value Chain, Anushree Priyadarshini, Yuhui Gao, Colm O'Gorman

Conference papers

This study explores the adoption of open innovation (OI) practices in medium-sized and large firms in a sector characterised by low levels of external collaborations. Many firms struggle to adopt OI practices (O'Connell, 2011); the processes that lead to the adoption of OI practices are unclear (Mortara and Minshall, 2011); and the degree of open innovation, as measured by the number of external collaborations, in Irish firms is low (Vahter et al., 2012). This inductive study is based on case studies of a significant innovation in four medium-sized (€50m to €500m) and four large (Revenue above €500m) firms from the …

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

Faculty of Business - Papers (Archive)

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 …

Theories To Define And Understand Family Firms, Mary Barrett

Faculty of Business - Papers (Archive)

My earlier chapter in this volume on the four phases of learning in family firms relies on some important theories about the nature of family firms and how they differ from non-family firms. This chapter explains them briefly.

Internationalization Of Malaysian Firms And The Effects Of Major External Economic Crises, Ah Ba Sim

Faculty of Business - Papers (Archive)

This paper examines and analyzes the internationalization of international firms from Malaysia over two time periods of major external economic crises, the Asian financial crisis and the global economic crisis based on a study of four case firms. The findings indicate variations and changes in strategies during early and continued internationalization over the 11 year time studied. These findings and their research implications are examined and discussed.

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

Faculty of Business - Papers (Archive)

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.

Dynamic Forecasts Of Financial Distress Of Australian Firms, Maria Kim, Graham Partington

Faculty of Business - Papers (Archive)

Dynamic forecasts of financial distress have received far less attention than static forecasts, particularly in Australia. This study, therefore, investigates dynamic probability forecasts for Australian firms. Novel features of the modelling are the use of time-varying variables in forecasts from a Cox model. Not only is this one of relatively few studies to apply dynamic variables in forecasting financial distress, but to the authors' knowledge it is the first to provide forecasts of survival probabilities using the Cox model with time-varying variables. Forecast accuracy is evaluated using receiver operating characteristics curves and the Brier Score. It was found that the …

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

Faculty of Business - Papers (Archive)

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 …

The Puzzle Of Negative Association Of Earnings Quality With Corporate Performance: A Finding From Chinese Publicly Listed Firms, Shiguang Ma

Faculty of Business - Papers (Archive)

Introduction

- Earnings management - Accounting data management. - Real earnings management.

- Earnings quality - Financial statement accurately and unbiased reports corporate operating status and financial position. - Earnings quality as the degree to which earnings persists or sustains into next period.

- Corporate performance - Low earnings quality leads to low corporate performance. - Theoretically approved, but empirical evidences are not consistent.

- The Puzzle of Negative Association of Earnings Quality with Corporate Performance in China - Probably, it is rational in an emerging market.

Innovation In Small And Medium-Sized Wood-Furniture Firms In Central Java, Indonesia, Amie Kusumawardhani, Grace Mccarthy

Sydney Business School - Papers

The aim of this paper is to explore the perception of innovation within Indonesian SMEs in the wood-furniture industry in Central Java, Indonesia. Qualitative research was employed by interviewing SMEs managers/owners. The study showed that SMEs' perception of innovation was not necessarily related to 'newness' or 'novelty' as suggested by some scholars. The innovation carried out by the majority of SMEs in this study is likely to be considered as incremental innovation. The characteristics of the wood-furniture industry and SMEs are believed to contribute to the different perspectives concerning innovation than those reported in the literature. Even so, they are …

Aligning Strategy And Talent In Creative Professional Service Firms, Deirdre Canavan, Pamela Sharkey Scott, Vincent Mangematin

Articles

Purpose – Reliance on individual talent and motivation renders creative professional service firms (PSFs) highly dependent on their ability to attract and mobilise the right individuals. This paper aims to build an integrated framework showing firstly how creative industry PSFs can differ in their strategy for growth, and secondly how these alternative strategies for growth can influence the firm's approach to organising and the type of talent required.

Design/methodology/approach – The findings are based on a series of interviews with managing directors, senior management and practitioners of architectural organisations in a single country, combined with an extensive literature review.

Findings …

Social Recruiting: The Role Of Social Networking Websites In The Hiring Practices Of Major Advertising And Public Relations Firms, Keri Cook

Senior Honors Theses

The purpose of this study is to determine the role that professional networking websites, such as LinkedIn, play in the hiring decisions of talent recruiters at major advertising and public relations firms. A study of literature relating to social media, traditional recruitment techniques and legal implications regarding the use of networking websites in the hiring process provided a foundation for the study. Primary research, in the form of online surveys distributed to hiring managers at some of the largest international advertising and public relations firms, was conducted to set a foundation for understanding the use of networking websites in the …

The Globalization Of Chinese Enterprises, Christoph Lattemann, Ilan Alon, Marc Fetscherin, John Mcintyre, Julian Chang

Faculty Publications

The question of how and why Chinese firms globalize is one of the most pressing issues for businesses today. China's globalization process is nothing less than remarkable. The twenty-first century will feature a developing country as the leader of the global economy by 2020, when, by most estimates, China's purchasing power parity (PPP) gross domestic product (GDP) surpasses America's. With China's new role on the world's stage, global economic and political institutions are likely to change. China's foray into Latin America, for example, has changed the traditional role that America has played in its “backyard.” While the Chinese government was …

Survive Or Die? An Empirical Study On Chinese St Firms, Yanran-Annie Zhou, Maria H. Kim, Shiguang Ma

Faculty of Business - Papers (Archive)

A number of listed firms that are experiencing financial distress have had a Special Treatment (ST) 'cap' imposed on them by the China Securities Regulatory Commission. The ST 'cap' can be removed if the firms survive financial distress by becoming profitable. Alternatively, a ST firm which goes bankrupt is delisted from the market. Using a sample of 441 ST firms tracked from 1998 to 2011, this paper employs Cox's proportional hazards model to predict turnaround probability for a distressed firm to remove the ST 'cap'. The predictor variables incorporate: (1) accounting-driven ratios, (2) market-driven variables, and (3) information on ownership …

A Comparative Case Study Of The Internationalization Strategies Of Malaysian, Singaporean And Taiwanese Firms, Ah Ba Sim

Faculty of Commerce - Papers (Archive)

Comparative empirical research on the internationalization strategies of Asian multinational enterprises (MNEs) from countries at different levels of development is lacking. This paper examines and analyzes the internationalization characteristics and strategies of MNEs from three Asian countries at two different levels of development. Primary data from matched sample firms from Malaysia (a fast developing economy) and Singapore and Taiwan (representing newly industrialized economies) in the textile and electronics industries are used for this study. The findings indicate some differences among the Malaysian, Singaporean and Taiwanese MNEs. These differences and their implications are examined. The empirical findings, particularly the contextual aspects …

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

Faculty of Business - Papers (Archive)

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

Faculty of Business - Papers (Archive)

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. …

Board Structure And Survival Of New Economy Ipo Firms, Nongnit Chancharat, Chandrasekhar Krishnamurti, Gary G. Tian

Faculty of Commerce - Papers (Archive)

Research Question/Issue: This study examines the relevance of currently accepted best practice recommendations regarding board structure on the survival likelihood of new economy initial public offering companies. We argue that industry context determines governance outcomes.Research Findings/Insights: We study 125 Australian new economy firms listed between 1994 and 2002. Each firm is tracked until the end of 2007 for monitoring their survival. We find that board independence is associated with an increase in the likelihood of corporate survival. We also find that the benefits of board independence increase at a decreasing rate.Theoretical/Academic Implications: The standard best practice recommendation of board independence …

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

Faculty of Commerce - Papers (Archive)

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 …

Disproportional Ownership Structure And Pay–Performance Relationship: Evidence From China's Listed Firms, Jerry Cao, Xiaofei Pan, Gary Tian

Faculty of Commerce - Papers (Archive)

This paper examines the impact of ownership structure on executive compensation in China's listed firms. We find that the cash flow rights of ultimate controlling shareholders have a positive effect on the pay–performance relationship, while a divergence between control rights and cash flow rights has a significantly negative effect on the pay–performance relationship. We divide our sample based on ultimate controlling shareholders' type into state owned enterprises (SOE), state assets management bureaus (SAMB), and privately controlled firms. We find that in SOE controlled firms cash flow rights have a significant impact on accounting based pay–performance relationship. In privately controlled firms, …