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1 – 10 of 18Puja Aggarwal Gulati and Sonia Garg
This paper attempts to examine the impact of merger on the stock returns and economic value added (EVA) of acquiring firms to know if the mergers are successful corporate…
Abstract
Purpose
This paper attempts to examine the impact of merger on the stock returns and economic value added (EVA) of acquiring firms to know if the mergers are successful corporate restructuring strategies for the firms.
Design/methodology/approach
In total, 108 Indian firms are studied using paired sample t-test and Wilcoxon signed rank test for comparing the EVA of acquiring firms in short, medium and long term after merger. The effect of merger announcements on stock returns is analyzed by way of event study. An event window of −20 to +20 is taken and an estimation window of 256 (-276 -20) days is used in the study.
Findings
The authors find that mergers lead to significant improvement in the EVA of acquiring firms. However, the increase in financial performance and EVA is witnessed only in long term. The authors did not find any significant impact of merger announcement on the stock returns of acquiring firms.
Originality/value
The study is a first of study's kind, which evaluates both short-term (using event study methodology) and long-term (using EVA) impact of value addition to an acquirer after Merger & Acquisition (M&A). The study contributes to existing literature on the signaling theory of announcement of M&As and synergy gain theory of completed M&As by providing evidence from the context of an emerging market like India.
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ABM Fazle Rahi, Jeaneth Johansson and Catherine Lions
This study aims to examine the factors that influence the relationship between sustainability and financial performance (FP) of the European listed companies.
Abstract
Purpose
This study aims to examine the factors that influence the relationship between sustainability and financial performance (FP) of the European listed companies.
Design/methodology/approach
This study analyzed data from 795 companies in 21 European countries by applying linear mixed-effects multilevel regressions, a two steps system generalized method of moments and quantile regression models to uncover the links between sustainability and FP.
Findings
The past four decades have witnessed abundant research to determine the relationship between corporate sustainability and FP. Thus, conducting further research in 2023 could be seen as “reinventing the wheel.” Yet, earlier research considered firms as isolated entities with sustainability and FP being dependent only on that firm’s actions. By contrast, with the help of network governance theory, this study shows that a firm’s sustainability and FP depend on an interplay among interorganizational actors, such as institutional qualities, macroeconomic factors and an embrace of sustainability. Here, large firms play an essential role. Three significant findings are drawn. First, sustainability performance has a significant impact on FP in the European context. Second, the institutional quality (IQ) of the rule of law and control of corruption plays a crucial role in enhancing sustainability and FP, and finally the interaction of IQ and economic growth helps to increase companies’ market value (Tobin’s Q). The consistent and empirically robust findings offer key lessons to policymakers and practitioners on the interplay among multiple actors in corporate sustainability and FP.
Practical implications
A synergetic multifaced relationship between governmental institutions and corporations is inevitable for ensuring sustainable development. The degree of intimacy in the relationship, of course, will be determined by the macroeconomic environment.
Originality/value
In this research, this study theoretically and empirically identified that corporate sustainability and FP are not solely dependent on corporate operation. Rather, it is transformed, modified and shaped through an interaction of multiple actors’ trajectories in the macro business environment.
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Marcello Cosa, Eugénia Pedro and Boris Urban
Intellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its measurement remains complex. To better navigate these challenges, the authors…
Abstract
Purpose
Intellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its measurement remains complex. To better navigate these challenges, the authors propose the Integrated Intellectual Capital Measurement (IICM) model, an innovative, robust and comprehensive framework designed to capture IC amid business uncertainty. This study focuses on IC measurement models, typically reliant on secondary data, thus distinguishing it from conventional IC studies.
Design/methodology/approach
The authors conducted a systematic literature review (SLR) and bibliometric analysis across Web of Science, Scopus and EBSCO Business Source Ultimate in February 2023. This yielded 2,709 IC measurement studies, from which the authors selected 27 quantitative papers published from 1985 to 2023.
Findings
The analysis revealed no single, universally accepted approach for measuring IC, with company attributes such as size, industry and location significantly influencing IC measurement methods. A key finding is human capital’s critical yet underrepresented role in firm competitiveness, which the IICM model aims to elevate.
Originality/value
This is the first SLR focused on IC measurement amid business uncertainty, providing insights for better management and navigating turbulence. The authors envisage future research exploring the interplay between IC components, technology, innovation and network-building strategies for business resilience. Additionally, there is a need to understand better the IC’s impact on specific industries (automotive, transportation and hospitality), Social Development Goals and digital transformation performance.
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Nancy Duxbury, Fiona Eva Bakas and Cláudia Pato Carvalho
Culture is increasingly recognized as a key component of local development, but this attention is largely focused on large cities. This paper aims to focus on the ways in which…
Abstract
Purpose
Culture is increasingly recognized as a key component of local development, but this attention is largely focused on large cities. This paper aims to focus on the ways in which the innovative, participatory action-research (PAR) methods of IdeaLabs and community intervention workshops are used by two projects with solidarity economy enterprise (SEE) participants to activate place-based cultural resources for local development in small communities.
Design/methodology/approach
An in-depth reflexive analysis undertaken by researchers involved in the two projects, taking a feminist ethics of care perspective, demonstrates the ways in which these two PAR methods promote local development with the goal of fighting against the economic, social and cultural degradation of small cities and rural areas.
Findings
The PAR methods used by the two projects examined stimulate place-based local development initiatives through collaboration and knowledge co-production among participants and researchers. The projects go beyond an instrumental view of the use of culture and the arts for local development to innovate and demonstrate new methodologies for more participatory approaches.
Originality/value
This paper addresses a gap in social economy literature, presenting methods that can be used in PAR projects to catalyse the use of culture as a local development tool by local SEEs.
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Syed Quaid Ali Shah, Fong Woon Lai, Muhammad Tahir, Muhammad Kashif Shad, Salaheldin Hamad and Syed Emad Azhar Ali
Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in…
Abstract
Purpose
Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role.
Design/methodology/approach
The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique.
Findings
The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan.
Practical implications
Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE.
Originality/value
The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.
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Luuk Mandemakers, Eva Jaspers and Tanja van der Lippe
Employees facing challenges in their careers – i.e. female, migrant, elderly and lower-educated employees – might expect job searches to have a low likelihood of success and might…
Abstract
Purpose
Employees facing challenges in their careers – i.e. female, migrant, elderly and lower-educated employees – might expect job searches to have a low likelihood of success and might therefore more often stay in unsatisfactory positions. The goal of this study is to discover inequalities in job mobility for these employees.
Design/methodology/approach
We rely on a large sample of Dutch public sector employees (N = 30,709) and study whether employees with challenges in their careers are hampered in translating job dissatisfaction into job searches. Additionally, we assess whether this is due to their perceptions of labor market alternatives.
Findings
Findings show that non-Western migrant, elderly and lower-educated employees are less likely to act on job dissatisfaction than their advantaged counterparts, whereas women are more likely than men to do so. Additionally, we find that although they perceive labor market opportunities as limited, this does not affect their propensity to search for different jobs.
Originality/value
This paper is novel in discovering inequalities in job mobility by analyzing whether employees facing challenges in their careers are less likely to act on job dissatisfaction and therefore more likely to remain in unsatisfactory positions.
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José Manuel López-Agulló Pérez-Caballero, Belén Ávila Rodríguez-de-Mier and Fernando García-Chamizo
The aim of this research is to analyze the territorialization strategy developed by the Spanish brewing company Cruzcampo through its campaign #ConMuchoAcento (#With a strong…
Abstract
Purpose
The aim of this research is to analyze the territorialization strategy developed by the Spanish brewing company Cruzcampo through its campaign #ConMuchoAcento (#With a strong accent) launched in January 2021.
Design/methodology/approach
The work is framed within the case study methodology. Semiotics will be the discipline used to establish the set of cultural units or signs that the company puts into play in its campaign #ConMuchoAcento.
Findings
Cruzcampo beer makes use of place branding by highlighting the Andalusian accent as a way of creating a unique positioning strategy. By doing so, the brewing company faces the issue of being associated with the negative Andalusian stereotype, sometimes regarded as if it were uneducated and low class. The use of dialectic must be seen as a step further in place branding strategy since it brings locality to the commercial message.
Social implications
The social effects of the cultural units brought into play by the #ConMuchoAcento campaign remain to be analyzed, that is, the political dimension of this exercise of signifying agency of Andalusian culture. In other words, it remains to be seen how the accent represents that romantic Andalusian ideal of “authenticity” as that form of subjectivity at the margins of the cultural and rational organization of modern global capitalism.
Originality/value
This study is one of the first to be conducted on the multi-award-winning #ConMuchoAcento campaign. Furthermore, it will analyze the place branding strategy carried out by the brand from a semiotic perspective.
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This paper aims to explore the dimensions that foster the effectiveness of artificial intelligence (AI) within a business strategy.
Abstract
Purpose
This paper aims to explore the dimensions that foster the effectiveness of artificial intelligence (AI) within a business strategy.
Design/methodology/approach
The paper reviews recent contributions to AI and business success and identifies the key pillars that support the achievement of good results.
Findings
The paper proposes that there are four critical dimensions for developing an effective business strategy with AI. This research finds that AI has the potential to drive significant development when it is leveraged along four main axes: a focused strategy for AI, knowledge of the customers, effective interactions with customers and effective implementation of AI. These four dimensions are essential for nurturing the critical dimensions of AI that enable successful integration with the business strategy. To achieve this integration, the business strategy must take advantage of the insights and capabilities provided by AI while also understanding and deeply knowing the customers through effective interactions with them. The development is structured in an organizational alignment where AI helps employees and learns from them. By continuously learning from the exploitation of knowledge and big data, the organization can enrich its use of AI.
Research limitations/implications
The paper identifies four pillars of AI integration with the development of business strategy as areas for further empirical analysis by business researchers.
Practical implications
This paper offers strategies for managers and professionals to effectively integrate AI into business strategy.
Originality/value
The authors provide a novel perspective on using AI in business strategy by identifying four key axes of success in the current business landscape.
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Abdelmoneim Bahyeldin Mohamed Metwally and Ahmed Diab
In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from…
Abstract
Purpose
In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from institutional studies, this study aims to examine the multiple institutional pressures surrounding an entity and influencing its risk-based management control (RBC) system – that is, how RBC appears in an emerging market attributed to institutional multiplicity.
Design/methodology/approach
The authors used qualitative case study research methods to collect empirical evidence from a privately owned Egyptian insurance company.
Findings
The authors observed that in the transformation to risk-based controls, especially in socio-political settings such as Egypt, changes in MAC systems were consistent with the shifts in the institutional context. Along with changes in the institutional environment, the case company sought to configure its MAC system to be more risk-based to achieve its strategic goals effectively and maintain its sustainability.
Originality/value
This research provides a fuller view of risk-based management controls based on the social, professional and political perspectives central to the examined institutional environment. Moreover, unlike early studies that reported resistance to RBC, this case reveals the institutional dynamics contributing to the successful implementation of RBC in an emerging market.
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