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The purpose of this paper is to investigate the relation between a firm's cash conversion cycle and its profitability.

The relation between the firm's cash conversion cycle and its profitability is examined using dynamic panel data analysis for a sample of Japanese firms for the period from 1990 to 2004. The analysis is applied at the levels of the full sample and divisions of the sample by industry and by size.

A strong negative relation between the length of the firm's cash conversion cycle and its profitability is found in all of the authors’ study samples except for consumer goods companies and services companies.

Traditional focus in corporate finance was on the long‐term financial decisions, particularly capital structure, dividends, and company valuation decisions. However, the recent trend in corporate finance is the focus on working capital management. Most of working capital management literature is based on the US experience. This study investigates the relation between the firm's cash conversion cycle and its profitability of Japanese firms where the organizational structure is totally different from that of the US firms; most of the Japanese firms are interconnected and related through corporate groups (keiretsu).

The objective of this paper is twofold: first, to model the value of the firm in the presence of contingent capital and multiple growth options over its life cycle in a stochastic universe to ensure financial stability and recover losses in case of default and second, to clarify how contingent convertible (CoCo) bonds as financial instruments impact the leverage-ratio policies, inefficiencies generated by debt overhang and asset substitution for a firm that has multiple growth options. Additionally, what is its impact on investment timing, capital structure and asset volatility?

The current paper elaborates the modeling of a dynamic problem with respect to the interaction between funding and investment policies during multiple sequential investment cycles simultaneously with dynamic funding. The authors model the value of the firm in the presence of contingent capital that provides flexibility in dealing with default risks as well as growth options in a stochastic universe. The authors examine the firm's closed-form solutions at each stage of its decision-making process before and after the exercise of the growth options (with and without conversion of CoCo) through applying the backward indication method and the risk-neutral pricing theory.

The numerical results show that inefficiencies related to debt overhang and asset substitution can go down with a higher conversion ratio and a larger number of growth options. Additionally, the authors’ analysis reveals that the firm systematically opts for conservative leverage to minimize the effect of debt overhang on decisions so as to exercise growth options in the future. However, the capital structure of the firm has a substantial effect on the leverage ratio and the asset substitution. In fact, the effect of the leverage ratio and the risk-shifting incentive will be greater when the capital structure changes during the firm's decision-making process. Contrarily to traditional corporate finance theory, the study displays that the value of the firm before the investment expansion decreases and then increases with asset volatility, instead of decreasing overall with asset volatility.

The study’s findings reveal that funding, default and conversion decisions have crucial implications on growth option exercise decisions and leverage ratio policy. The model also shows that the firm consistently chooses conservative leverage to reduce the effect of debt overhang on decisions to exercise growth options in the future. The risk-shifting incentive and the debt overhang inefficiency basically decrease with a higher conversion ratio and multiple growth options. However, the effect of the leverage ratio and the risk-shifting incentive will be greater when the capital structure changes during the firm's decision-making process.

The firm's composition between assets in place and growth options evolves endogenously with its investment opportunity and growth option financing, as well as its default decision. In contrast to the standard capital structure models of Leland (1994), the model reveals that both exogenous conversion decisions and endogenous default decisions have significant implications for firms' growth option exercise decisions and debt policies. The model induces some predictions about the dynamics of the firm's choice of leverage as well as the link between the dynamics of leverage and the firm's life cycle.

The article's purpose is to demonstrate how UK artisan entrepreneurs organise entrepreneurial activities within the context of a creative industry organisation. The research asks how artisan entrepreneurs draw on contexts to manage entrepreneurial activities. The article investigates how these entrepreneurs organise collaborative business solutions through the lens of entrepreneurial capitals and their conversion.

The research study employed a phenomenological approach to analyse the situated entrepreneurial activities of artisan entrepreneurs. Ethnographic methods assisted in capturing these activities.

The findings demonstrated the context-dependent collaborative business solutions by artisan entrepreneurs. Such solutions emerge from the interplay of the materiality of buildings, social relations management and personal resources. This materiality facilitates creative forms of social relations management for entrepreneurial activities between artisan entrepreneurs.

The discussed entrepreneurial collaborative solutions are beneficial for many entrepreneurs in fragmented working conditions.

The detailed discussion of how artisan entrepreneurs organise entrepreneurial activities individually and collaboratively sheds light on dynamic microprocesses in context. The lens of entrepreneurial capitals and their conversion for these microprocesses integrates the literature on capital conversions with context as the main contribution to theory. This lens allows to home in on social relations and material environment management adding more fine-grained insights into how these micro-exchange processes work. These insights contribute to the literature on artisan entrepreneurship in the creative industries and entrepreneurship and context.

Change in ownership among U.S. community hospitals has been frequent and, not surprisingly, remains an important issue for both researchers and public policy makers. In the past, investor-owned hospitals were long suspected of pursuing financial over other goals, culminating in several reviews that found few differences between for-profit and nonprofit forms (Gray, 1986; Sloan, 2000; Sloan, Picone, Taylor, & Chou, 2001). Nevertheless, continuing to the present day, several states prohibit investor-ownership of community hospitals. Conversions to investor-ownership are only one of six types of ownership change, however, with relatively less attention paid to the other types (e.g., for-profit to nonprofit, public to nonprofit). This study has two parts. We first review the literature on the various types of ownership conversion among community hospitals. This review includes the rate at which conversions occur over time, the relative frequency in conversions between specific ownership categories and the observed effects of conversion on hospital operations (e.g., strategic direction and decision-making processes) and performance (e.g., access, quality, and cost). Overall, we find that the impact of ownership conversion on the different measures is mixed, with slightly greater evidence for positive effects on hospital efficiency. As one explanation for these findings, we suggest that the impact of ownership conversion on hospital performance may be mediated by changes in the hospital's strategic content and process. Such a hypothesis has not been proposed or examined in the literature. To address this gap, we next study the role of strategic reorientation following hospital conversion in a field study. We conceptualize ownership conversion within a strategic adaptation framework, and then analyze the changes in strategy content and process across sixteen hospitals that have undergone ownership conversions from nonprofit to for-profit, public to for-profit, public to nonprofit, and for-profit to nonprofit. The field study findings delineate the strategic paths and processes implemented by new owners post-conversion. We find remarkable similarity in the content of strategies undertaken but differences in the process of strategic decision making associated with different types of ownership changes. We also find three main performance effects: hospitals change ownership for financial reasons, experience increases in revenues and capital investment post-conversion, and pursue labor force reductions post-conversion. Membership in a multi-hospital system, however, may be a major determinant of both strategy content and decision-making process that is confounded with ownership change. That is, ownership conversion may mask the impact of system membership on a hospital's strategic actions. These findings may explain the pattern of performance effects observed in the literature on ownership conversions.

The study seeks to shed light on the generative principles of enterprising by examining the practices of enterprisers in six lifestyle enterprises in Sweden. It presents a fresh approach to the study of lifestyle enterprises, resolving a nuanced treatment of the concepts of capital and habitus as often drawn upon in studies using the social theory of Pierre Bourdieu.

This study uses a grounded theory approach to examine enterprising practices in six lifestyle enterprises in Sweden. Study materials are derived principally from ethnographic observations and active interviews. The analytical procedure follows that of grounded theory, the analysis proceeding from the first field contacts and developing iteratively as the corpus expanded, with empirical themes giving way to formative concepts and sensitizing to the theoretical architecture of Pierre Bourdieu.

The findings offer insights into lifestyle enterprising, revealing how resourcing practices of capital deployment give shape to its practice. The findings reveal that capital deployment practices are not simply about conversion but may also involve practices, without substantive change to capital forms. Furthermore, the findings highlight that habitus significantly influences capital deployment practices.

Although the findings are limited to the study context, the study offers theoretical implications for study of enterprising. One is to highlight the importance of cultural capital in enterprising practices. Another is to highlight the variable construction of capitals, arising in connection to habitus. In pointing to the central generative role of habitus, the study suggests that cultural capital may underpin the formation of social capital. Overall, the findings indicate that researchers need to consider the mediating effects of habitus when investigating enterprising practices. More widely, this study responds and lends weight to, recent calls for more holistic and integrated treatments using Bourdieu's theory to further understandings of entrepreneurship as practice.

This study offers implications for policy relating to enterprising practice. In particular, findings suggest that it might be wise to consider the alignment of habitus between those who provide and receive support, or in other words, having providers with the right cultural competence to offer useful help. It may be important for policy agents to be able to relate to the worldviews of those they seek to support.

The study directly responds to recent calls for more holistic and integrated approaches to the nascent line of inquiry using Bourdieu’s theory to gain insight into entrepreneurship as a practice, particularly in relation to the undertheorized phenomenon of lifestyle entrepreneurship. In doing so, the study serves to advance the practice-oriented conceptualization of lifestyle entrepreneurship as lifestyle entrepreneuring. The paper also offers a conceptual framework to assist researchers investigating enterprising practice.

This empirical chapter explores the case of Baltic Creative Community Interest Company (BC CIC), a creative hub that enabled and demonstrated intrapersonal entrepreneurial capitals (Pret et al., 2016) to adapt quickly and develop novel offers for their tenants during an unprecedented period of crisis and change in the wider ecosystem. BCCIC is a community-owned property development company established to regenerate an underused post-industrial area in Liverpool and support the Creative and Digital community. Over the past decade, they have become a creative hub where small, unique micro-businesses thrive alongside more established enterprises.

Using an organisational ethnographic approach, the authors highlight the complexity in the conversion of entrepreneurial capitals and how this has demonstrated resilience and adaptability in the CIC during the global coronavirus pandemic in the 2020s. During the first coronavirus lockdown in 2020, The CIC responded swiftly to tenants by providing a wide variety of business support initiatives. Regular communications on sector-specific COVID-19 operational guidance and a support programme to help tenants apply for Liverpool City Council Small Business Support grants.

The establishment of this hub for creative entrepreneurs prior to the recent disruption proved invaluable. Although they were severely tested, emerging behaviours, such as agility, adaptability, and resilience during periods of crisis, were identified. This chapter offers key insights for scholars and those leading on creative hubs and cluster policy development and economic initiatives for creative sector support regionally, nationally, and internationally.

The purpose of this paper is to create a research framework to scrutinize how individuals' digital technology use produces tangible and intangible outcomes in online (digital) and offline realms.

The paper applies the Bourdieusian e-capital perspective to create a theory-based framework. The framework was used to guide a survey design to explore women's “social media-assisted reuse” at the micro-scale in Helsinki, Finland.

The paper argues that a new form of capital emerges when individuals utilize digital technologies in correspondence to their goals to gain added value that would be impossible or significantly more arduous to gain without the digital realm. The survey indicates that the respondents utilize the digital space – set objectives and gain capital-related outcomes – in correspondence to their differing social, economic and cultural positions and related resources in- and outside of the digital realm.

If digital spaces – due to social inequality and underlying power structures – become increasingly stratified, there will be significant impacts on how individuals from differing backgrounds gain accumulated forms of capital through the digital realm. The question is of great importance for battling inequality.

The paper enhances and synthesizes recent discussions on different forms of capital and outcomes of the use of digital technologies and presents a combined “e-capital–digital divide” framework that offers a more complete agenda for investigating the finely nuanced links between the inputs, outputs and outcomes of digital technology use.

Social entrepreneurship education (SEE) is gaining increasing attention globally. This paper aims to focus on how SEE may be better understood and reconfigured from a Bourdieusian capital perspective with an emphasis on the process of mobilising and transforming social entrepreneurs’ cultural, social, economic and symbolic resources.

Drawing on qualitative research with a sample of social entrepreneurship educators and mentors, the authors generate insights into the significance of challenging assumptions and establishing values and principles and hence that of developing a range of capitals (using the Bourdieusian notion of capital) for SEE.

The findings highlight the significance of developing a range of capitals and their transformative power for SEE. In this way, learners can develop dispositions for certain forms of capitals over others and transform them to each other in becoming reflexive social agents.

The authors respond to the calls for critical thinking in entrepreneurship education and contribute to the field by developing a reflexive approach to SEE. The authors also make recommendations to educators, who are tasked with implementing such an approach in pursuit of raising the next generations of social entrepreneurs.