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Article
Publication date: 1 March 2006

Farshid Navissi and Vic Naiker

Prior studies examining the relation between the shareholdings by institutional investors and firm value have produced mixed results. These studies have assumed that a…

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3576

Abstract

Purpose

Prior studies examining the relation between the shareholdings by institutional investors and firm value have produced mixed results. These studies have assumed that a linear relation exists between corporate value and institutional shareholdings. The purpose of this study is to further investigate the nature of this relationship and by partitioning institutional investors into institutions that have appointed a representative to the board of directors of the firms in which they have a block investment and institutions with a similar holding but without a representative on the board of directors.

Design/methodology/approach

The study is based on a sample of 123 firms with available financial and institutional ownership data. A cross‐sectional regression analysis is used to test the relation between corporate value and institutional ownership with and without board representation.

Findings

The results of the study suggest that share ownership by investors with board representation is positively related to the value of the firm at lower levels of ownership. However, as the share ownership increases, the impact on the value of the firm becomes negative, giving rise to a non‐linear relation. The extent of shareholding by institutions without board representation, on the other hand, is not related to the value of the firm.

Research limitations/implications

The findings show that institutions with board representation have greater incentives to monitor management, and therefore their presence should have a positive influence on firm value. However, at high levels of ownership, institutional investors with board representation may induce boards of directors to make sub‐optimal decisions.

Originality/value

The study provides a deeper understanding of the relationship between firm value and institutional ownership. That is, the effect of shareholding by institutions with board representation is likely to have a non‐linear relation with firm value.

Details

Managerial Finance, vol. 32 no. 3
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 16 August 2021

Qian Long Kweh, Irene Wei Kiong Ting, Wen-Min Lu and Hanh Thi My Le

Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus…

Abstract

Purpose

Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus aims to further the debate on the relationship between IC and corporate performance from the perspectives of nonlinearity, the capital values of IC and the use of a holistic measure of corporate performance.

Design/methodology/approach

Using 1,395 firm-year observations derived from Vietnamese listed companies from 2010 to 2018, this study focuses on (1) presenting an IC model benchmarked on value-creating expenses; (2) using a directional distance function (DDF)-based stochastic nonparametric envelopment of data (StoNED) framework to scrutinize multiple performance indicators and the capital values of people, structures and relationships simultaneously; and (3) adopting firm-year cluster-robust regressions to analyze the nonlinear association between IC and corporate performance empirically with an appropriate U test.

Findings

Results suggest that human capital (HC), structural capital (SC) and relational capital (RC) are the main contributors of high corporate efficiency, whereas only HC and RC contribute to high corporate profitability. These results are absent when this study employs the conventional data envelopment analysis (DEA), which is also a multidimensional framework, as the dependent variable. More importantly, IC and its components can improve corporate performance, namely, both corporate efficiency and corporate profitability up to a critical point, after which the effects would drop.

Practical implications

Overall, this study highlights not only the need to invest in IC but also its associated costs. That is, policymakers also need to note the marginal cost of investing in IC, which may in the end outweigh the benefits from IC.

Originality/value

This study extends IC-related studies by investigating the nonlinear relationship between IC and corporate performance. Moreover, the value of this study also lies in the multidimensional DDF-based StoNED framework.

Details

Journal of Intellectual Capital, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 8 September 2020

Maria Palazzo, Agostino Vollero and Alfonso Siano

Increased public scrutiny and stakeholder pressure have given more importance to strategic corporate social responsibility (SCSR) and its three dimensions – orientation…

Abstract

Purpose

Increased public scrutiny and stakeholder pressure have given more importance to strategic corporate social responsibility (SCSR) and its three dimensions – orientation, process and value creation. At the same time, they provide banks the inspiration needed to pursue business goals, attain positive performances and communicate their social responsibility efforts. This paper analyses whether and how companies in the banking sector use corporate websites to communicate SCSR dimensions.

Design/methodology/approach

A content analysis was performed based on the corporate websites of leading banks included in the Dow Jones Sustainability World Index and the Hang Seng Corporate Sustainability Index to assess the prominence of SCSR communication.

Findings

The study shows that banks give less prominence to SCSR on corporate websites differently from companies belonging to other sectors, as they are less likely to expose their orientation to SCSR and pay slightly less attention to value creation than other companies.

Practical implications

The paper provides theoretical insights into SCSR dimensions and how they are communicated on corporate websites. From a practical standpoint, the study provides guidance for managers in the banking sector aimed at improving their communication efforts, avoiding decoupling issues and adopting a consistent value creation perspective.

Originality/value

Few studies have used a value creation perspective to differentiate between the dimensions of a SCSR approach. The paper fills this gap by assessing the communication efforts adopted by banks and insurance companies in this area.

Details

International Journal of Bank Marketing, vol. 38 no. 7
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 2 September 2020

I. Wayan Widnyana, I. Gusti Bagus Wiksuana, Luh Gede Sri Artini and Ida Bagus Panji Sedana

This study aims to analyze and explain the effect of financial architecture (with three dimensions: ownership structure, capital structure and corporate governance) and…

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1090

Abstract

Purpose

This study aims to analyze and explain the effect of financial architecture (with three dimensions: ownership structure, capital structure and corporate governance) and intangible assets on performance financial and corporate value in the Indonesian capital market.

Design/methodology/approach

This research was conducted on nonfinancial sector companies that were registered in the Indonesian capital market, namely Indonesia Stock Exchange (IDX) in 2015. This study used quantitative data and used secondary data sources, meaning that data were obtained, collected and processed from other parties. In this study, the hypothesis testing of the effect of financial architecture (included the dimensions of ownership structure, capital structure and corporate governance) and intangible assets on financial performance and corporate value using path analysis was performed.

Findings

The results of this study have provided findings that follow the research model that has been built (1) This research has been able to provide a theoretical model of the influence of financial architecture (with dimensions of ownership structure, capital structure and corporate governance), intangible assets, board processes on financial performance and company value in the Indonesian capital market. (2) To develop a theoretical model about the effect of corporate governance on financial performance in accordance with the two-tier system adopted by Indonesia. (3) An empirical study of the concept of financial architecture put forward by Myers (1999).

Originality/value

This research update lies in the research variable, which determines one value of the financial architecture variable comprehensively, combines the financial architecture variable and intangible assets to then be tested for its effect on company value and the use of the financial process variable as a board process as an intervening variable.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 7
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 27 May 2020

Sena Ozdemir, Suraksha Gupta, Pantea Foroudi, Len Tiu Wright and Teck-Yong Eng

This study aims to fill a gap in branding literature concerning the effect of corporate brand relationships on brand value through the case study method in a…

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1222

Abstract

Purpose

This study aims to fill a gap in branding literature concerning the effect of corporate brand relationships on brand value through the case study method in a business-to-business (B2B) context. The objectives of this study can be framed in the following three questions: what are the main constituents of a corporate brand; how does a corporate brand generate tangible and intangible brand value for their business customers; and how do tangible and intangible brand benefits influence relationship initiation and management practices of the case companies?

Design/methodology/approach

The study adopts a qualitative multiple cases study design by using archival data and both in-depth telephone and online interviews with senior representatives of the case study companies to investigate corporate branding and associated issues in a B2B context.

Findings

From a managerial perspective, this study reveals that corporate business culture, brand relationships, products and corporate identity and personality as the main constituents of a corporate brand in a B2B context. The results show that a corporate brand can generate intangible and tangible brand value benefits for business customers. The findings also note the importance of brand value in enhancing relationship initiation.

Originality/value

The study contributes to the branding literature by developing a conceptual model that explains the development and role of the corporate brand in a B2B context with its associated value creation and brand management outcomes. The findings advance brand management literature on business relationships, which addresses a gap in B2B contexts rather than mainly about product brand management and value creation in business-to-consumer contexts.

Details

Qualitative Market Research: An International Journal, vol. 23 no. 4
Type: Research Article
ISSN: 1352-2752

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Article
Publication date: 10 July 2017

Torben Juul Andersen

This study aims to analyze how leadership influenced corporate responsible behavior in a complex multinational organization with ethical principles imposed by concrete…

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1382

Abstract

Purpose

This study aims to analyze how leadership influenced corporate responsible behavior in a complex multinational organization with ethical principles imposed by concrete actions on regulatory, environmental and international labor issues. Increasing functional specialization, multinational diversity and business acquisitions challenged the core values and called for more formal enforcement. Core values executed through investment in positive economic externalities enhanced the reputation and facilitated sustainable collaborative solutions.

Design/methodology/approach

This single-case study collects evidence from experienced multinational executives for practitioner-based theory building. The information is interpreted against prevailing theory to gain deeper insights for practice. Observed phenomena are discussed in various managerial audiences and cross-checked against documents, news articles, books and involved external stakeholders. The case material and executive narratives are further assessed from storytelling and retrospective sense-making perspectives.

Findings

The study illustrates how core values were enforced through concrete executive decisions driving corporate reputation and good stakeholder relationships. It provides evidence of positive outcomes as future conflicts are reduced while levering the reputation to deal more effectively with emergent risks. The core values influenced corporate responsible behavior and supported long-term adaptability, but increasing diversification and global expansion also diluted those values.

Originality/value

Corporate responsible behavior is a significant challenge in large organizations with many and diverse multinational stakeholders. Ethical conduct derives from executive morality, but the role of leaders as instigators of responsible behavior has not been studied in the context of multinational enterprise. Hence, this article fills a need for more granular longitudinal studies of complex internationalizing organizations.

Details

International Journal of Organizational Analysis, vol. 25 no. 3
Type: Research Article
ISSN: 1934-8835

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Article
Publication date: 9 October 2019

Pınar Özkan, Seda Süer, İstem Köymen Keser and İpek Deveci Kocakoç

The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation…

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4500

Abstract

Purpose

The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers.

Design/methodology/approach

A model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted.

Findings

The findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation.

Research limitations/implications

The study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results.

Practical implications

The results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions.

Originality/value

The paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

Details

International Journal of Bank Marketing, vol. 38 no. 2
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 28 August 2019

Sri Mangesti Rahayu, Suhadak and Muhammad Saifi

The purpose of this paper is to investigate the reciprocal relationship between profitability and capital structure and its impacts on the corporate values of…

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2339

Abstract

Purpose

The purpose of this paper is to investigate the reciprocal relationship between profitability and capital structure and its impacts on the corporate values of manufacturing companies in Indonesia.

Design/methodology/approach

This research is a quantitative research using the general structural component analysis as the analysis tool. This research involved a number of manufacturing companies registered in the Indonesia Stock Exchange in 2008‒2015 period.

Findings

Profitability has a negative significant influence on capital structure, indicating that profitability is a determining factor upon the corporate capital structure. This finding also implies that the improvement in profitability in the forms of return on investment, return on equity and net profit margin triggers decrease in the proportion of debt within the capital structures of manufacturing companies registered in BEI or Indonesia Stock Exchange.

Originality/value

Previous research only addressed the one-way correlation between profitability and capital structure, whereas this research measured the two-way correlation and reciprocal relationship at the same time. This research measured the influences of profitability and capital structure on the corporate value, in order to find a consistent finding that has not been yet obtained in previous research. This research also attempted to find out whether the use of the same variables within different time and setting (in Indonesia) leads to different results. The inconsistent findings also motivate the researcher to re-explore the reciprocal influence of corporate profitability on corporate capital structure and its effect toward the corporate value.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 2
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 8 November 2018

Xiaoye Chen and Rong Huang

This paper aims to investigate whether corporate social responsibility (CSR) efforts that are oriented toward shared value creation generate any perceptual advantages in…

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1246

Abstract

Purpose

This paper aims to investigate whether corporate social responsibility (CSR) efforts that are oriented toward shared value creation generate any perceptual advantages in terms of consumer product attributes evaluations compared with other types of CSR. The study also uncovers consumers’ pathways that channel the impacts of corporate associations on corporate and product evaluations and purchase intention.

Design/methodology/approach

This study uses a between-subjects experimental design. In all, 274 undergraduate students from a North American university participated in the 2 (low versus high corporate ability levels) × 4 (CSR types) study. The data were analyzed using the methodologies of path analysis and multiple group analysis in the context of structural equation modeling procedure.

Findings

The findings show that in the context of shared-value CSR, CSR image (i.e. consumer judgments on the moral aspect of the company) can spill over to product attributes evaluations, including perceptions of “product innovativeness” and “product social responsibility,” which, in turn, translate to purchase willingness. Meanwhile, perceived corporate trustworthiness mediates the effects of CSR image and corporate ability (CA) image on the overall corporate evaluation, which subsequently influences consumer product evaluation and purchase intention.

Research limitations/implications

The research provides direct evidence showing that companies have the potential to improve their corporate brand and, in turn, their product evaluations by putting a stronger emphasis on the social responsibility components of their image and placing this at the core of their strategic agenda. Importantly, a contribution to the literature by identifying differential effects of CA image versus CSR image on consumer perception of product innovativeness within different CSR categories is made. The limitations of the research are discussed, which include the usage of a fictitious company and brand and a convenience sample.

Practical implications

The study offers guidance to managers in regard to their choice of different CSR practices to fulfill their company’s product-related strategic goals.

Originality/value

The present study takes a critical stance to show that previous experimental work investigating the impact of CSR image on product evaluations relied predominantly on bipolar manipulations of CSR practices (bad versus good) rather than bringing many shades of CSR into consideration. By incorporating a wide array of CSR formats, especially value-creating CSR, current research generates potential implications based on differential effects of various CSR focuses, which have not been captured by previous studies.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 9 September 2013

Chesta Khanna, Theo J. M. van der Voordt and Philip W. Koppels

The purpose of this paper is to show how international companies (can) use real estate as a means to reinforce corporate identity and to express brand values in order to…

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1566

Abstract

Purpose

The purpose of this paper is to show how international companies (can) use real estate as a means to reinforce corporate identity and to express brand values in order to evoke a positive image in today's competitive world.

Design/methodology/approach

A review of literature, seven case studies including analysis of company documents and in-depth interviews with marketing experts and real estate advisors, and a cross-case analysis showing the translation of brand core values in real estate strategies of these multinationals.

Findings

The findings show that brand values are incorporated in the location strategy, building strategy, workplace strategy and at portfolio management level by all companies, but in different ways and with different focus points. Most commonly used brand values are “Green” values, i.e. sustainability, reliability, transparency, innovation and people oriented. Branding policies take into account both internal stakeholders such as the employees and external stakeholders such as customers and investors.

Research limitations/implications

The number of interviews is rather small and limited to Dutch staff members of multinationals. Reliability of the findings was enforced by triangulation through connecting the interview findings to literature and strategic documents. Additional empirical research is needed to further explore which strategic choices can be made and in particular what are the actual costs and benefits of “branding by real estate”.

Practical implications

The different ways to translate corporate brand values in real estate and the conceptual framework that has been developed to describe the step-by-step approach – from defining a vision to translating corporate culture and corporate identity into a well-considered real estate strategy – can be used by policy makers and real estate managers in real estate decision-making on strategic, tactical and operational level.

Originality/value

The paper links findings from corporate real estate management with insights from marketing theory and adding value by real estate.

Details

Journal of Corporate Real Estate, vol. 15 no. 3/4
Type: Research Article
ISSN: 1463-001X

Keywords

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