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The link between SME performance, growth and development is well established; however, the characteristics of SMEs that allow firms to be successful in the long run in an underdeveloped country context, i.e. Pakistan, are still unclear. This paper aims to bridge this gap by identifying the SMEs’ characteristics that set them apart from their rivals and become successful.

This study uses Storey’s development framework to identify the SMEs’ characteristics. Data is gathered using the case study method from SMEs with a metropolitan context in Pakistan. A narrative methodological framework was used during the data gathering and analysing stages.

Findings of this study indicate that the prosperity of SMEs in Pakistan is dependent on a combination of characteristics, including entrepreneurial characteristics of owner–managers, knowledge of business operating models, social networks and relationship building and innovation in business style. Additionally, other factors such as governance structure, strategic planning of market diversification and export characteristics also influence the prosperity of an SME. These findings may have several important implications for key stakeholders, including entrepreneurs, SMEs and policymakers in the government.

This research provides evidence about factors that can help an SME to become successful in uncertain situations surrounding a business environment. Theoretically, the contribution of this research is that it demonstrates that entrepreneurial characteristics and the effective leadership style of owner–managers can help SMEs achieve prosperity in external unforeseeable situations.

This study aims to examine the gender pay gap in organizational leadership positions in China. The author seeks to analyse how much of the gap is explained by differences in individual characteristics and how much is explained by firm characteristics.

This study estimates pay functions based on a unique data set from a survey of private firms and top managers in Liuzhou, Guangxi, China.

Female managers receive much lower pay than male managers in China. A larger portion of the gender earnings gap can be attributed to firm‐level characteristics than individual characteristics. Female managers tend to have fewer firm‐level characteristics that are associated with higher pay, and when they do, they tend to receive a smaller pay premium for those characteristics. This is especially the case for the firm size variable where female managers are less likely to be employed in higher paying large firms, and when they are, they receive a smaller firm‐size premium.

This study uses a sample of small and medium‐sized enterprises (SMEs) in China. As such, the gender pay gap in larger firms or firms in large cities (e.g. Beijing or Shanghai) may not be represented by the findings of this study.

This study offers insights on how women executives are paid after they cross the “glass ceiling” and enter the managerial ranks in China. Female executives should be aware of the effects of firm characteristics on gender differences in compensation.

This study adds to the limited empirical literature on the gender pay gap among top executives using a matched establishment‐manager data set in China.

This paper has two purposes. First, it evaluates the extent to which different failure processes are present in failed UK SMEs, by considering non-financial metrics including director characteristics, in addition to the financial ones. Second, it analyses the determinants of the transition to failure in relation to the different failure processes that have been identified.

The study is based on a sample of failed UK SMEs. The data covers financial ratios, board characteristics, the macroeconomic environment, sectoral details and regional information. First, failure processes are identified using a combination of factor analysis and cluster analysis. Second, the determinants of firms' transition to failure for the whole sample and in the individual failure clusters are analysed using panel data analysis.

Four different firm failure processes were identified. Director characteristics differ between firm failure processes. We find evidence that director characteristics including director age and board gender structure, affect the transition to failure of UK SMEs. We also find that different factors affect the different failure processes.

The paper is the first to analyse the reasons for failure of UK SMEs in the firm failure process context by considering non-financial metrics such as the characteristics of the firms' directors. In addition the paper also identifies a number of different determinants that affect the various failure processes. This finding is important because it suggests that policies designed to reduce the incidence of firm failure should take account of the different failure processes.

Daniel and Titman (1997) contend that the Fama‐French three‐factor model’s ability to explain cross‐sectional variation in expected returns is a result of characteristics that firms have in common rather than any risk‐based explanation. The primary aim of the current paper is to provide out‐of‐sample tests of the characteristics versus risk factor argument. The main focus of our tests is to examine the intercept terms in Fama‐French regressions, wherein test portfolios are formed by a three‐way sorting procedure on book‐to‐market, size and factor loadings. Our main test focuses on ‘characteristic‐balanced’ portfolio returns of high minus low factor loading portfolios, for different size and book‐to‐market groups. The Fama‐French model predicts that these regression intercepts should be zero while the characteristics model predicts that they should be negative. Generally, despite the short sample period employed, our findings support a risk‐factor interpretation as opposed to a characteristics interpretation. This is particularly so for the HML loading‐based test portfolios. More specifically, we find that: the majority of test portfolios tend to reveal higher returns for higher loadings (while controlling for book‐to‐market and size characteristics); the majority of the Fama‐French regression intercepts are statistically insignificant; for the characteristic‐balanced portfolios, very few of the Fama‐French regression intercepts are significant.

The purpose of this paper is to test the competing explanations of stated preferences for firm characteristics, optimism and overconfidence for trading activities in a single framework.

A survey methodology is followed to collect the data among retail investors in Malaysia using simple random sampling.

The findings show simultaneous identification of stated preferences for firm characteristics, optimism and overconfidence as determinants of trading activities. Preferences for firm’s profitability characteristics, management and product-related attributes and risky characteristics are likely to decrease investors’ trading activities. On the other hand, preferences for firm’s liquidity and trading volume characteristics with relative financial-domain optimism, personal investment optimism and better-than-average aspect of overconfidence are likely to increase investors’ trading activities.

This finding implies that investors should be careful not only in assessing firm’s characteristics but also need to understand the effects of optimism and overconfidence in trading decisions.

The study considers various aspects of optimism and overconfidence, and the stated preferences for firm characteristics, unlike one aspect of these behavioral biases and indirect observation of preferences for firm characteristics. Furthermore, the study considers trading frequency, annual portfolio turnover and trading intention, whereas earlier studies considered only one or two of these trading decisions.

The direct nexus between board characteristics, earnings management (EM) practices and dividend payout is examined in this study, followed by an examination of the indirect mediation impact of EM practices in the nexus between board characteristics and dividend payout. It aims to provide new empirical evidence from the Jordanian market, which is an emerging market.

The study population consists of all service firms that were listed on the Amman Stock Exchange (ASE) between 2012 and 2019. Due to the lack of availability of their complete data during the period, four service firms were omitted from the population; hence, a sample of 43 service firms was acquired over the time frame (2012–2019), yielding a total of 344 firm-year observations. Moreover, panel data analysis was employed in this study, and data for the study were acquired from yearly reports as well as the ASE's database.

Based on the GMM estimator findings, board size and independence have a negative and significant influence on the EM, but CEO/chairman duality has a positive and significant impact. Simultaneously, the impacts of female representation on the board of directors and the number of board meetings were both positive but insignificant. The findings also found that four board characteristics, including board size, female representation on the board of directors, CEO/chairman duality and the number of board meetings, had a significant negative or positive effect on dividend payout, while board independence did not. Additional findings show that EM practices have a direct negative insignificant effect on dividend payout, whereas EM practices partially mediate the relationship between board characteristics and dividend payout.

The current study's limitation is that it only searched in Jordanian service firms listed on ASE from 2012 to 2019 to fulfill the study's objectives; thus, we urge that future work explores the study models for other sectors, whether in Jordan or other growing markets such as the Middle East and North Africa.

The findings of this study may be utilized by analysts, investors and other strategic decision-makers to enhance Jordan's financial market's efficiency and efficacy. These findings will improve policymakers' willingness to impose appropriate constraints, perhaps boosting Jordan's financial market performance and efficacy. These findings may also help investors make more enlightened judgments by utilizing board characteristics and EM factors that predict firm dividend policy.

Contradictions in the results of earlier investigations inspired the current study, with the findings filling a gap in the existing literature. This study differs from previous studies by constructing a novel research model and analyzing the mediating influence of EM in the nexus between board characteristics and dividend payout.

This work has three main objectives – to analyse whether the strategic vision of the top management team (TMT) directly affects firms' innovation performance; to shed some light on which of the intrinsic characteristics of work teams proposed in the literature influence innovation; and to analyse the joint effect that the TMT's vision and the work team's characteristics may exert on innovation performance.

The sample for this study was chosen from the Dun & Bradstreet database. The population consists of firms with more than 50 employees belonging to the three sectors of the Spanish economy with the largest number of registered patents according to statistics from the Spanish Office of Patents and Brands (960 firms).

The results indicate that the TMT's strategic vision alone does not explain companies' innovation performance. Innovation also requires the existence of diverse, cohesive, and autonomous work teams whose members engage in fluent informal communication.

The empirical evidence demonstrates the complexity of the innovation performance that has to be encouraged by the TMT, but also supported by the existence of teams with specific characteristics.

These results offer relevant implications for R&D managers about the way teams should be formed to increase innovation. The paper derives some conclusions about the key characteristics of work teams that, in combination with the view of the TMT, can affect innovation in firms.

The majority of earlier studies have analysed theoretically the effect of both variables – the strategic vision of the TMT and the intrinsic characteristics of teams – on innovation, but separately. This paper analyses the joint effects that the intrinsic characteristics of work teams have on innovation, which resolve some contradictions regarding the way some variables affect innovation of the firm. Finally the results offer empirical evidence on how Spanish firms obtain innovation performances.

This paper aims to study gender differences in preferences for firm characteristics across various groups of investors in Malaysia.

Self-declared preferences are elicited through a survey of 520 investors comprising retail, financial professionals and institutional investors in the Malaysian stock market. Non-parametric (Mann-Whitney and Kruskal-Wallis) tests are computed to achieve the stated objective.

Results reveal that female investors display higher preferences for the liquidity of a firm, dividend payments, trading volume of a firm, stock price and firm’s age than male investors across investor’s groups.

Findings imply that the gender gap in investing behaviour can be partly attributed to gender differences in preferences for firm characteristics.

The findings suggest that the gender gap can be mitigated by giving more priority to the choices of female investors with respect to firm characteristics. In turn, this may reduce a part of the gender gap in investing. Moreover, the findings would assist companies to understand and know how their shareholder’s preferences vary with respect to gender and investor’s groups.

This paper provides evidence concerning the gender gap in investor’s self-declared preferences for firm characteristics across retail, financial professionals and institutional investors in Malaysia, which complements previous studies that used equity holdings data and only two groups of investors.

This paper aims to examine the customer-based and supplier-based trade credit gaps for USA firms from 1970 to 2020.

The authors' study examines USA companies from 1970 to 2020. The authors begin with an analysis of the trends in aggregate working capital, the capital's components and the trade credit gaps. Various regression models are used to estimate the impacts of identified firm characteristics and unidentified sources on customer-based and supplier-based trade credit gaps over time. The authors then decompose the impacts of firm characteristics to further understand whether changing firm characteristics and/or changing sensitivity to firm characteristics drive the variation in trade credit gaps.

There is a gradual reduction in the customer-based trade credit gap and a substantial expansion in the supplier-based trade credit gap. Though identified firm characteristics have dominant impacts on observed trade credit gaps, there is evidence of the effects of time and unobservable factors. The main source of changes in customer-based and supplier-based trade credit gaps lies in changes in sensitivity to firm characteristics. In addition, the authors find that firm age is the factor with the largest average effect on both trade credit gaps when examining the full sample period. However, different firm characteristics appear to be the key driver of variations in trade credit gaps over time and across the two types of trade credit gaps. The authors also find that financial distress has the least impact on both customer-based and supplier-based trade gaps. There are variations in the firm characteristics with the largest impacts when evaluating decade-long evaluation periods.

To the authors' knowledge, this is the first paper to examine the customer-based and supplier-based trade credit gaps. The connection between trade credit and the trade credit's corresponding inventory (INV) component extends prior literature on the joint management of trade credit and INV. The authors analyze both identified firm characteristics and unidentified sources in the search for explanations of the trade credit gaps. Furthermore, the authors' study explores the channels through which firm characteristics affect different types of trade credit gaps. The authors' findings help identify relevant and irrelevant risk factors of corporate working capital policy.

The purpose of this study is to explore how food-exporting firms assess the importance of relationship characteristics of the supply chain that impact their performance as well as how it relates to export performance indicators.

An online survey was administered across 83 food firms in Greece, assessing the importance of relationship characteristics of the supply chain by using the best–worst scaling technique.

The most important characteristics relate to the quality of the primary material and the procurement costs and producer prices; these are considered more important by export-oriented food firms compared to non–export-oriented food firms. Characteristics that relate to the relationship between members of the agri-food supply chain and the interorganizational business systems and governance mechanisms are also considered of average importance. Characteristics related to the adoption of differentiation strategies are considered least important.

Producers should emphasize the quality and prices of their product as well as establish collaborations with food firms. Food firms need to emphasize interorganizational business systems and governance mechanisms that reduce procurement costs, instead of trying to reduce producer prices. Public authorities should engage stakeholders of the agri-food supply chain in relationships that will enable food firms to deliver on their quality and price demands.

Primary production and collaborations of it with food firms have not been studied in regards to what extent they relate to food firms' export performance.