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The purpose of this chapter is to characterize fictitious capital and fictitious profits as extreme expressions of the fetishism of capital. Considering the incessant search for valorization and allowing for fictitious forms of capital, the subject of this study is at the center of the dynamics of recent capitalist accumulation, especially when we take into account the capitalist crises over the last four or five decades. Its mechanism of fictitious valorization (M – M′), a decisive dimension of contemporary capitalism, is contradictory, based on the growing obstacles to the extraction of surplus value on an expanded scale, and therefore the real valorization of capital. At the same time, we support the idea that this mass of overaccumulated capital produces profits unrelated to surplus value, that is fictitious profits, further intensifying the fetishistic and contradictory nature of capitalism.

Based on resource-based theory and intellectual capital theory, this paper aims to investigate the impact of digital investment on enterprise value and the mediating role of intellectual capital. Additionally, it explores the heterogeneous impacts of digital investment on enterprise value and intellectual capital.

The study utilizes a sample of listed companies in Chinese A-shares from 2013 to 2020. The entropy-weighted method is applied to measure digital investment from two dimensions: scale and increment. Finally, the research hypotheses are tested through multiple regression analysis.

The empirical results demonstrate that digital investment significantly and positively impacts enterprise value. From the channel mechanism test, digital investment can enhance enterprise value by influencing intellectual capital through human, structural and relational capital. Of these, the mediating effect of human capital is the most significant. Moreover, the impacts of digital investment on enterprise value and intellectual capital are related to the industry sectors. In the agricultural sector, digital investment has adverse effects. In the industrial and service sectors, digital investment promotes intellectual capital and enterprise value. However, in the service sector, the impact on relational capital is not significant, and the mediating effect of relational capital does not hold.

This research has a limited potential for generalization due to the lack of standard measurement models for the exploration of digital investment.

The research findings are valuable for assessing the economic effects of digital investment comprehensively and providing essential information for policy formulation and strategy implementation.

This study represents the first attempt to evaluate the relationship between digital investment and enterprise value using the entropy-weighted method. In addition, this study investigates the mediating role of intellectual capital.

This study aims to examine the effect of corporate social responsibility (CSR) on banks’ capital, value and risk by investigating its impact on capital inflows and asset quality. The authors aim to investigate the value-protective characteristics of socially responsible performance.

This study uses a two-stage least squares approach with instrumental variables, with bank and year fixed effects to address concerns regarding endogeneity, specifically reverse causality and unobservable factors.

The results confirm a positive association of CSR with capital adequacy, including higher quality Tier 1 Capital. The authors find strong evidence that banks with higher CSR scores are associated with greater bank value and lower risk. The extended analyses find that the improvement in capital is from annual growth in capital and lower risky assets.

The research advances the field by providing new empirical evidence of a positive association between CSR and capital, including high-quality Tier 1 Capital. This study complements the prior research by simultaneously examining the dynamic links between CSR and capital, bank risk and bank value. The findings are consistent with the view that there is a dynamic link in which CSR affects the operations of banks.

The aim of this study is to understand a family firm's choice of related-party transaction (RPT) types and analyze their value impacts to separate the abusive from benign RPTs.

It uses a 10-year panel of BSE-listed 378 family (and 200 non-family) firms. The fixed effects, logit and difference-in-difference (DID) models help examine value effects, propensity and persistence of harmful RPTs.

Loans/guarantees (irrespective of counterparties) destroy firm value. Capital asset RPTs decrease the firm value but enhance value when undertaken with holding parties. Operating RPTs increase firm value and profitability. They improve asset utilization and reduce discretionary expenses (especially when made with controlled entities). Family firms have larger loans/guarantees and capital asset volumes but have smaller operating RPTs than non-family firms. They are less likely to undertake loans/guarantees (and even operating RPTs) and more capital RPTs vis-à-vis non-family firms. Family firms persist with dubious loans/guarantees but hold back beneficial operating RPTs, despite RPTs being in investor cross-hairs amid the Satyam scam.

Rent extractability and counterparty incentives supplement each other. (1) The higher extractability of related-party loans and guarantees (RPLGs) dominates the lower extraction incentives of controlled parties. (2) Holding parties' bringing assets, providing a growth engine and adding value dominate their higher extraction incentives (3) The big gains to the operational efficiency come from operating RPTs with controlled parties, generally operating companies in the family house. (4) Dubious RPTs seem more integral to family firms' choices than non-family firms. (5) Counterparty incentives behind the divergent use of RPTs deserve more research attention. Future studies can give more attention to how family characteristics affect divergent motives behind RPTs.

First, the study does not single out family firms for dubious use of all RPTs. Second, investors, auditors or creditors must pay close attention to RPLGs as a special expropriation mechanism. Third, operating RPTs (and capital RPTs with holding parties) benefit family firms. However, solid procedural safeguards are necessary. Overall, results may help clarify the dilemma Indian regulators face in balancing the abusive and business sides of RPTs.

The study fills the gap by arguing why some RPTs may be dubious or benign and then shows how RPTs' misuse depends on counterparty types. It shows operating RPTs enhance operating efficiencies on several dimensions and that benefits may vary with counterparty types. It also presents the first evidence that family firms favor dubious RPTs more and efficient RPTs less than non-family firms.

This study is an analysis that aims to understand the rationale behind the concept of value creation contained in the integrated reporting (IR) framework. As such, the authors examined the quality of the disclosures made in integrated reports by measuring the level to which the six capitals (6Cs) have been integrated into disclosures on value creation.

The IR framework’s value creation model focuses on six content elements and three guiding principles. Hence, the present analysis combines content analysis with quantitative measures in the form of a bespoke Integrated Disclosure Index. The index measures the level of integration found in the disclosures instead of the mere presence or absence of mentioned capitals, content elements and guiding principles in isolation. The present sample comprised the 2016 integrated/sustainability reports for 184 listed companies sourced from the Integrated Reporting Examples Database.

The 6Cs are well disclosed in form but only partially disclosed in substance. Further, overall levels of integration between the capitals, the content elements and the guiding principles are higher than average. Disclosures on materiality, business models and stakeholder relationships are somewhat lacking, as are the related medium- and long-term disclosures on outlook.

The paper contributes to the academic debate on IR by building a case for holistically assessing the substance of integrated reports. Considering that the IR value creation model can underpin and align with the 17 UN sustainable development goals, the authors show how the fundamental concept of the 6Cs sustaining value creation is understood and implemented differently across the various elements and principles of the IR framework.

This research also provides guidance for overcoming some of the practical hurdles associated with assessing the quality of reports because the authors provide tools for spotlighting the substance of disclosures over their form.

This paper delves into the substance of integrated reports by assessing how well the 6Cs have been integrated into disclosures on the content elements and guiding principles of the IR framework. In contrast to previous IR research that has mainly analysed capital, elements and principles in isolation, the authors develop an index assessing the integration of these three fundamental concepts of IR.

This chapter introduces Marx's theory of the determination of profit rates. It contrasts this theory with what happened in the late nineteenth century to British profit rates with a detailed statistical account. It identifies missing features in the standard presentation and contrasts these with the overaccumulation hypothesis that he presents elsewhere. A formal mathematical model using the overaccumulation hypothesis is then given and tested against modern empirical data.

This study investigates the relationship between working capital investment (WCI) and firm value for Indian manufacturing firms using excess net working capital (NWC) and Tobin's Q as a measure of WCI and firm value, respectively. The study also examines whether firms use the cash released from excess investment in working capital to make long-term investments.

The sample comprises 834 Bombay Stock Exchange (BSE) listed Indian manufacturing firms whose data from April 2010 to March 2020 are analyzed using a fixed-effect panel regression analysis approach.

The empirical results show that excess NWC influences firm value negatively and significantly. However, the nature of the relationship becomes nonlinear upon dividing the sample into positive excess NWC and negative excess NWC. The findings from the study also reveal that firms redistribute cash freed from positive excess NWC for long-term investments to improve their value without impacting the corresponding risk.

Overall, the results suggest that firms with positive excess NWC can enhance their valuations by building adequate long-term investments from surplus WCI funds.

To the authors’ best knowledge, studies on this issue have primarily focused on developed economies. No study seems to have been done on this subject in the emerging South Asian economies. The present study is the first to bridge the research gap by investigating the relationship between excess WCI and firm value for manufacturing firms in India. Moreover, it examines whether a positive excess NWC reduction translates into corporate investments (CI).

Through a juxtaposition of social capital with two other forms of intellectual capital – human capital and organizational capital – the author proposes and tests a framework that sets social capital apart as the main driver of innovations that contribute subsequent technical value to the innovating organization.

This study uses data collected from the United States Patent and Trademark Office (USPTO) for measurement of the key variables. Specifically, the analysis includes all 117 innovations patented under the thermal inkjet printing subclass that were issued in the twenty years following the establishment of that specific subclass in 1980. The author also collected additional data on the individuals and organizations listed on each patent.

The results of the analysis show that all intellectual capital is not the same and that social capital resulting from collaborative relationships among inventors has significantly more positive influence on the retained technical value of an innovation than organizational or human capital.

Rather than tout the primacy of individual intelligence to the generation of valuable innovation, this research suggests that it is preferable to bring together a group of inventors with narrow individual scientific expertise who instead rely on broad collaboration networks as a flexible source of diverse knowledge.

This research addresses an area of innovation research that has not been adequately explored – how do different forms of intellectual capital affect the value the resulting innovation has to the innovating organization?

The purpose of this paper is to examine the role of green intellectual capital in fostering societal sustainability. Also, this study investigated how co-creational customer capital mediates the relationship between green intellectual capital and societal sustainability. The paper draws attention to co-creating customer capital and understanding its impact on societal sustainability in high-contact service startups.

Data were collected from responses from 376 high-contact service startup firms headquartered in the Indian subcontinent, particularly emerging markets. The proposed conceptual model was analyzed using the partial least squares structural equation modeling (PLS-SEM) approach. The analysis is based on primary data obtained from strategic-level employees.

The results highlight the impact of co-creational customer capital in the Green Intellectual Capital – Societal Sustainability (GICS) model. Green intellectual capital components significantly influence societal sustainability outcomes in the existence of co-created customer values. It establishes customer capital as an essential factor that mediates the relationship between green intellectual capital and societal sustainability.

This research provides conceptualization and subsequent investigation of customer value creation in service-led startups. The construct co-creation is more appropriate for the service industry in common.

This paper establishes co-created customer capital as an enabler in transforming underlying components of green intellectual capital into societal sustainability measures. Firms may generate higher customer value by pooling green human and relational capital along with active customer response and shared knowledge. This creates an organizational asset termed co-created customer capital specific to service industries.

The article proposes a novel way to analyze customer value in service organizations. To the best of the authors’ knowledge, no study has looked at how co-creational customer capital could act as a mediator between green intellectual capital and societal sustainability in the service industry context, particularly for SMEs and startups from emerging economies. Co-created customer capital may be used as an instrument to overcome managerial challenges in the context of transforming green intellectual capital into societal capital.

Chapter 4 addresses the importance of internal knowledge cultures. It provides a deeper dive into how internal knowledge cultures can contribute to a company’s performance. The authors explain how knowledge culture shapes practical knowledge processes and fosters intellectual capital. The authors also provide insights into a critical knowledge paradox and discuss the interplay of knowledge paradoxes and cultural collisions. The chapter is supported by practical use cases that illustrate the points in the chapter.