Search results

1 – 10 of 25
Click here to view access options
Article
Publication date: 10 October 2016

Elena Shakina and Angel Barajas

This study explores the strategies adopted by companies during the economic crisis of 2008-2009. It investigates whether it is reasonable for companies to intensify their…

Abstract

Purpose

This study explores the strategies adopted by companies during the economic crisis of 2008-2009. It investigates whether it is reasonable for companies to intensify their investment in intangibles during recession periods. The purpose of this paper is to find empirical evidence that companies with clear intangible-intensive profiles are likely to outperform those without a clear strategy.

Design/methodology/approach

This paper explores the intangible-intensive strategies of companies in terms of their dynamics during the pre-crisis, crisis and post-crisis periods. Through dummy regression applied to data from more than 1,600 European companies involved in the empirical analysis, the paper aims to show moderating effects from intangible-intensive strategies on company performance, expressed in terms of economic value added and market value added.

Findings

The results established in this study shed some light on the global economic crisis in 2008-2009. The findings of this study demonstrate that companies with a conservative profile towards intangibles outperform both those without a defined profile and those with an innovative one. However, an innovative profile enables faster recovery after a crisis.

Originality/value

This paper contributes to the literature on the strategic management of companies, and highlights the particular importance of intangible-intensiveness when markets experience systematic distresses. It is emphasized that lessons learned during the recent global economic crisis must be taken into account in the strategic vision of any company.

Details

Journal of Intellectual Capital, vol. 17 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

Click here to view access options
Article
Publication date: 29 January 2021

Elena Shakina, Iuliia Naidenova and Angel Barajas

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the…

Abstract

Purpose

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the intangible resources of companies obtaining their shadow prices.

Design/methodology/approach

The paper adapts a hedonic-pricing methodology developed primarily for markets in real estate and secondhand cars to define how much intangibles may contribute to companies' market value. A certain calibration of the original tool has been developed to make this methodology appropriate for interpretation and practical use. The main advantage of this approach is that it allows for an evaluation of the shadow prices of intangible resources. These prices can be interpreted as the market value of the intangible resources which are not reflected on the balance sheet.

Findings

The results of this study demonstrate that hedonic pricing with a self-selection correction generates robust estimates. As one can see, the positive contribution of a high endowment of intangibles for all shadow prices is confirmed through estimations using two different techniques. Meanwhile, the negative effect of a low endowment is even more evident for the baseline model. This model shows consistent negative shadow prices for the majority of underinvested intangibles. Brands have the highest shadow prices in the introduced models; human capital, as measured by the qualification of top management and investments in employees, has likewise demonstrated high prices. However, most structural resources seem to be not reflected to a large degree in companies' market value.

Practical implications

This paper brings new opportunities to obtain the monetary value of intangible resources based on estimated market prices of a corporation's resource portfolio. These prices may be used for several purposes – for example, benchmarking for performance management, capital budgeting or knowledge-management practices. Moreover, by having methodological value, this study opens ways to evaluate any other intangibles which are not explicitly discussed in the empirical test of this particular study.

Originality/value

This study primarily contributes to the methodological advancement of evaluation of corporate intangible resources. It departs from the conventional hedonic-pricing mechanism to identify cogent estimates to intangibles in monetary terms. Importantly, this mechanism implies individual shadow prices for specific intangible resources which makes the contribution of this study unique for the existing literature, both within resource-based and value-based views.

Details

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

Keywords

Click here to view access options
Article
Publication date: 18 April 2017

Elena Shakina, Mariia Molodchik and Angel Barajas

This study aims to explore value creation through intangibles in corporations, taking into consideration the endogenous nature of managerial decisions. It is stated that…

Abstract

Purpose

This study aims to explore value creation through intangibles in corporations, taking into consideration the endogenous nature of managerial decisions. It is stated that intangibles bring extra information asymmetry into a company and make managers and investors’ goals less aligned.

Design/methodology/approach

A theoretical model is elaborated and empirically tested on the assumption that managers, while investing in intangibles, simultaneously make a company competitive and attractive to investors. The authors use a conceptual model of endogenous value creation to test how intangibles affect outperforming of a company and provoke the expectations of investors. The research is carried out on a sample of more than 1,650 European companies covering the period from 2004 to 2011. Structural equation modelling is applied for the purposes of empirical analysis.

Findings

The authors reveal a diverse impact of intangibles on outperforming of a company measured by economic value added and its ability to create market value. The study discovers that managers are prone to indicate positive signals to investors rather than create sustainable competitive advantages.

Practical implications

This research emphasizes on the particular importance of awareness of policymakers, namely, companies’ top managers, about the outcomes of their decisions. Decision-making in public companies should involve as much deliberation as possible about the potential impact of what is decided.

Originality/value

This work contributes primarily to the field of corporate finance in companies that use intangibles. The endogenous process of value creation is modelled and tested. As a result, a number of essential problems in agent relationships in intangible-intensive corporations are discovered.

Details

Management Research Review, vol. 40 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

Click here to view access options
Article
Publication date: 20 March 2017

Elena Shakina, Angel Barajas and Mariya Molodchik

The paper aims to explore factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap…

Abstract

Purpose

The paper aims to explore factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness.

Design/methodology/approach

The framework of resources-based view is used to examine causality between the resources used and competitiveness measured by economic value added (EVA). Controlling for the most relevant factors, the authors place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behavior of companies, foreign investments and corporate networks. The data set of more than 1,000 Russian companies benchmarked to the data set of more than 1,600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward.

Findings

Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, such as enterprise resource planning (ERP) systems and other intangible assets, are considered positive factors that reduce gaps in EVA.

Originality/value

The paper introduces original approach for studying the gap in performance caused by the gap in used resources.

Details

Measuring Business Excellence, vol. 21 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Click here to view access options
Article
Publication date: 9 January 2017

Elena Shakina, Angel Barajas, Petr Parshakov and Aleksei Chadov

This study explores company strategies for intangibles. The authors investigate whether it is reasonable for companies to intensify intangibles when the current strategy…

Abstract

Purpose

This study explores company strategies for intangibles. The authors investigate whether it is reasonable for companies to intensify intangibles when the current strategy is not intangible-intensive. The purpose of this paper is to elaborate a theoretical model to describe the strategic decision making in companies.

Design/methodology/approach

The authors use the Bellman-equation framework to find the conditions under which a change in strategy for intangibles is reasonable.

Findings

The results determine the parameters of returns on intangibles in different strategies, the optimal intangible stock and the influence of external economic shocks. The findings of the study demonstrate that many requirements have to be met to make intangible-intensive strategy beneficial for a company. Moreover negative shocks of crises force a company to postpone a new strategy on intangibles.

Practical implications

This research provides an insight into strategic behavior of companies under uncertainty. The theoretical findings demonstrate under which conditions companies should decide to switch to a strategy more intangible-intensive. This model can be used to empirically test parameters of different investment strategies of companies using structural estimation techniques.

Originality/value

This work contributes to the theory of managerial economics giving closed form solutions for the dynamic optimization of company behavior. The findings also show how this behavior might change when economic crises are faced or expected.

Details

Journal of Economic Studies, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Click here to view access options
Article
Publication date: 8 January 2018

Petr Parshakov and Elena Anatolievna Shakina

The purpose of this paper is to address the issue of efficiency of corporate universities. An efficiency is defined in relative terms: as having relatively better…

Abstract

Purpose

The purpose of this paper is to address the issue of efficiency of corporate universities. An efficiency is defined in relative terms: as having relatively better performance in comparison to other companies. Different indicators of performance were employed in order to analyze short-term and long-term efficiency. A comparative analysis of European companies and emerging Russian companies is performed in order to understand if there are country differences in the efficiency of corporate universities.

Design/methodology/approach

To avoid potential omitted variable bias, fixed effect within estimator is employed. This estimator enables controlling for a firm-specific time-constant effect which conditions company’s performance and is responsible for other individual traits. The rest of the characteristics are controlled with a proxy, which are traditional for corporate finance studies.

Findings

There are contradictory results for the efficiency of a corporate university; for the European companies, a corporate university brings positive effect for the short-term performance, nevertheless, as the authors have found that it destructs value in long term. A company with a corporate university has 70 percent less market value added than an average company. There is a negative short-term synergy while the long-term synergy is positive. The results for the Russian sample are very consistent: corporate universities have negative or neutral effect on the performance.

Originality/value

This study contributes to the literature about strategic management and human resources management. It addresses the issue on efficiency of corporate universities in companies considering this as one of the key strategic investment in human resource policy. It appears that the corporate university is not a panacea for all companies to develop their human development policy.

Details

Journal of Intellectual Capital, vol. 19 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Click here to view access options
Article
Publication date: 7 April 2020

Petr Parshakov and Elena Shakina

This study suggests an alternative to confirmatory content analysis (CA) and empirically demonstrates that explorative CA enables new insights into the mechanism of…

Abstract

Purpose

This study suggests an alternative to confirmatory content analysis (CA) and empirically demonstrates that explorative CA enables new insights into the mechanism of intellectual capital (IC) disclosure. In so doing, this research contributes to both methodological and empirical advancements in IC disclosure research.

Design/methodology/approach

Employing the assumptions of positive accounting theory and taking book value of intangible assets as a reference, our research design utilizes well-established text-mining (TM) tools based on a least absolute shrinkage and selection operator regression. We assume that the degree of cohesion between officially disclosed and evaluated intangible assets on balance sheets and those contextually delivered in narrative form may affect how IC is ultimately disclosed in annual reports.

Findings

Our main finding is in line with the results and criticism of previous studies. We show that companies do not extensively disclose IC in their annual reports. However, some narrative forms for IC disclosure are identified and confirmed by several robustness checks.

Research limitations/implications

First, the findings provide internal validity only for large US enterprises. These firms have similar, well-structured reporting requirements. This analysis might be enriched by an examination and a comparison of different institutional contexts, such as emerging countries. Second, following previous studies, annual reports serve as the source of data. Consequently, the findings are relevant only for mandatory and voluntary disclosure of IC, mitigating the relevance of this study for contexts of involuntary disclosure.

Originality/value

This study makes two contributions. First, we add to the empirical literature by offering one more piece of evidence on whether and, if so, the extent to which companies disclose IC in their annual reports. Second, we provide further examination of confirmatory CA by proposing a number of statistically validated codes and tokens that are indicators of IC communication by companies.

Details

Journal of Intellectual Capital, vol. 21 no. 6
Type: Research Article
ISSN: 1469-1930

Keywords

Click here to view access options
Article
Publication date: 14 December 2021

Sofia Paklina and Elena Shakina

This study seeks to explore the demand side of the labour market influenced by the digital revolution. It aims at identifying the new composition of skills and their value…

Abstract

Purpose

This study seeks to explore the demand side of the labour market influenced by the digital revolution. It aims at identifying the new composition of skills and their value as implicitly manifested by employers when they look for the new labour force. The authors analyse the returns to computing skills based on text mining techniques applied to the job advertisements.

Design/methodology/approach

The methodology is based on the hedonic pricing model with the Heckman correction to overcome the sample selection bias. The empirical part is based on a large data set that includes more than 9m online vacancies on one of the biggest job boards in Russia from 2006 to 2018.

Findings

Empirical evidence for both negative and positive returns to computing skills and their monetary values is found. Importantly, the authors also have found both complementary and substitutional effects within and between non-domain (basic) and domain (advanced) subgroups of computing skills.

Originality/value

Apart from the empirical evidence on the value of professional computing skills and their interrelations, this study provides the important methodological contribution on applying the hedonic procedure and text mining to the field of human resource management and labour market research.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Click here to view access options
Article
Publication date: 19 September 2019

Angel Barajas, Elena Shakina and Thadeu Gasparetto

The purpose of this paper is to analyse simultaneously the effect of attendance at the stadium on the size of the TV audience, taking into account the effect of price and…

Abstract

Purpose

The purpose of this paper is to analyse simultaneously the effect of attendance at the stadium on the size of the TV audience, taking into account the effect of price and uncertainty of outcome hypothesis on both the TV audience and stadium attendance. The paper assumes that a home-team effect exists and influences potential spectators’ decision to go to the stadium or to stay at home.

Design/methodology/approach

The data set consists of all 228 matches broadcast live and on open air from the Brazilian League across the seasons 2013–2015. The econometric approach of the present paper is based on three simultaneous equations through the Three-Stage Least Square estimator. This method is chosen in order to avoid endogeneity between ticket prices and live attendance and, consequently, with the television audience, too.

Findings

This work finds a correlation between TV audience and attendance at the stadium. However, it has been demonstrated that those matches that are more expensive have a larger TV audience. Scheduling and UO appear to be relevant for TVs and clubs. Scheduling is relevant, as weekend matches have a smaller TV audience but higher attendance at the stadium.

Practical implications

The findings indicate that Brazilian football clubs should find optimal prices for matches in order to maximise both TV audience and attendance.

Originality/value

Analysing simultaneously the effect of attendance at the stadium on the size of the TV audience, taking into account the effect of price on all three of these variables, is new. Another novel aspect is the use of data on audience size to observe a possible substitution effect. The authors also distinguish between home and away matches, assuming that a home-team effect exists and influences potential spectators’ decision to go to the stadium or to stay at home.

Details

Sport, Business and Management: An International Journal, vol. 9 no. 5
Type: Research Article
ISSN: 2042-678X

Keywords

Click here to view access options
Article
Publication date: 4 March 2014

Elena Shakina and Angel Barajas

This paper aims to investigate the production function of firms based on the use of intellectual capital. The authors come up with this problem since believe that the new…

Downloads
1220

Abstract

Purpose

This paper aims to investigate the production function of firms based on the use of intellectual capital. The authors come up with this problem since believe that the new economy conditions require an adjustment and a development of classical firm theory.

Design/methodology/approach

The research question addressed in this study is mainly related to the empirical validation of the function based on companies' intangibles in the Cobb-Douglas framework. This model enables the authors to advocate the idea of the complementarity of intellectual resources as well as simplifies the analysis of intellectual capital features. To accomplish the purpose of the research, the authors design a log-linear model and estimate it on a sample of more than 400 European and American companies.

Findings

Application of Cobb-Douglas framework allowed designing a production function based on intellectual capital. The complementarity of intellectual capital components is justified on the empirical results obtained in this research. The increasing return to scale for intellectual capital was established for the sample examined in this study.

Research limitations/implications

The main shortcoming of the approach implemented in this study is related to the proxy indicators of intellectual capital. Nevertheless, the authors statistically validate the chosen indicators applying hedonic approach.

Practical implications

Practical accomplishment of this research is mainly associated with the conclusion about an increasing return to scale of intellectual capital. This phenomenon appears to be of a particular importance for investment decisions.

Originality/value

The findings of this paper provide a new insight into intellectual resources interrelation that enhances companies' value creation. The authors also hope to assist future research attempts in application of the theory of company's growth driven by its intangible capital.

Details

Journal of Economic Studies, vol. 41 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

1 – 10 of 25