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Article
Publication date: 1 February 2004

Panikkos Poutziouris and Yong Wang

This empirical research paper draws evidence from a database of UK independent private companies (n=250) and reports on the financial aspirations of owner‐managers of

Abstract

This empirical research paper draws evidence from a database of UK independent private companies (n=250) and reports on the financial aspirations of owner‐managers of family firms with respect to the flotation route. Following a brief review of the literature, the paper proceeds with an introduction of the UK survey into the financial development of private SMEs. Then evidence is presented on the perceived factors that influence the decision of owner/directors of family companies to consider the flotation option. Phase A employs univariate statistical analysis to contrast financial philosophies of the owner‐managing directors (OMDs) of family firms against those of their mainstream private counterparts. Phase B employs cluster analysis to categorise sample family companies into four generic groups that evidently highlight that the PLC route is not always tailored to financial issues. The empirical results demonstrate that the financial strategies of family companies are more or less in line with the behavioural issues shaping all private companies irrespective of family control. Finally, the paper concludes with a set of tentative policy implications. To encourage the public equity development of smaller privately held companies, particularly family firms, there is scope for more policy initiatives that are tuned to the “socio‐behavioural‐cultural” ethos of private‐OMDs as they master their corporate and entrepreneurial odyssey.

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International Journal of Entrepreneurial Behavior & Research, vol. 10 no. 1/2
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 1 June 1987

The role of the lawyer is as fundamental to the success of a company flotation as that of the sponsor, the stockbroker and the accountant. Pinsent & Co, who have been…

Abstract

The role of the lawyer is as fundamental to the success of a company flotation as that of the sponsor, the stockbroker and the accountant. Pinsent & Co, who have been involved in new issues since 1897, have published a booklet Company Flotations — The Lawyers Role which outlines legal duties and responsibilities. It has been written by senior partner David Cooke, who says:

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Education + Training, vol. 29 no. 6
Type: Research Article
ISSN: 0040-0912

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Article
Publication date: 1 March 2006

Deborah Allcock and Christopher Pass

The purpose of this paper is to use a sample of UK entrepreneurial initial public offering (IPO) companies to investigate whether they change their compensation strategies

Abstract

Purpose

The purpose of this paper is to use a sample of UK entrepreneurial initial public offering (IPO) companies to investigate whether they change their compensation strategies as they undertake the crucial transformation of the business from private to public status.

Design/methodology/approach

The paper uses the agency perspective to underpin an examination of the changes within the compensation packages of companies at the stage of the initial public offering, particularly with regard to the use of executive director incentive schemes, and compares this to “best practice” guidelines issued within the UK.

Findings

The paper discovers that even though incentive schemes are adopted, the majority are unconditional and requiring only an improvement in share price and the executive to remain employed in order for gains to be made. The general finding is that before IPO most companies did not have an incentive pay scheme in place, and those that did, operated unconditional option schemes. However, after IPO most companies introduced an incentive pay scheme, but the majority were unconditional rather than conditional (i.e. schemes requiring executives to meet pre‐determined performance criteria – as recommended by “best practice” guidelines).

Originality/value

The paper exposes that, contrary to “best practice” guidelines and regulations, many of these schemes reward executives unconditionally with the only factor being them remaining in employment over the vesting period. Despite “best practice” and regulations, firms still appear to be defensive and protect the executives from rigorous scrutiny by shareholders.

Details

Corporate Governance: The international journal of business in society, vol. 6 no. 2
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 16 October 2007

Manto Gotsi and Constantine Andriopoulos

While the corporate rebranding momentum is accelerating, corporate decisions are not currently informed by strong theory and academic research in this area. To broaden the…

Abstract

Purpose

While the corporate rebranding momentum is accelerating, corporate decisions are not currently informed by strong theory and academic research in this area. To broaden the understanding, the purpose of this paper is to generate empirical insights into the key pitfalls in the corporate rebranding process.

Design/methodology/approach

An exploratory qualitative study included 14 personal semi‐structured in‐depth interviews with executives involved in the corporate rebranding of a leading telecommunications firm, and a review of relevant archival materials.

Findings

The analysis highlighted common reports of four key pitfalls in corporate rebranding. These are: disconnecting with the core; stakeholder myopia; emphasis on labels, not meanings; one company, one voice: the challenge of multiple identities.

Research limitations/implications

This presents a single case study but one which provides empirical insights that advance theoretical thinking in corporate rebranding, and highlights interesting avenues for further research.

Practical implications

This study highlights: the importance of marketing and organisational research in designing new corporate brands; the value of engaging staff in the rebranding process from a very early stage; the need to ensure that internal processes and systems encourage employees to endorse the new corporate brand values through their attitudes and behaviours.

Originality/value

Corporate rebranding campaigns are not only expensive exercises, but also critical for sustaining competitive advantage in light of changing corporate priorities. This is one of very few papers that provide insights on the pitfalls in the corporate rebranding process.

Details

Corporate Communications: An International Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 15 May 2009

Nicholas O'Regan and Abby Ghobadian

The purpose of this paper is to present the views of Rod Aldridge OBE on building the strategy of a FTSE 100 company.

Abstract

Purpose

The purpose of this paper is to present the views of Rod Aldridge OBE on building the strategy of a FTSE 100 company.

Design/methodology/approach

The paper takes the form of an interview.

Findings

The interview with Rod Aldridge brings to life a number of key strategy concepts. The first is the importance of the external environment and the ability of an organisation to create a fit with the environment. Rod also alludes to the importance of finding the “sweet spot” of strategy – a position in a product market where there is a strong customer demand, little competition, and where the organisation has distinctive capabilities. The interview also gives credence to the argument that distinctive competencies that are the source of success can equally become a potential source of the organisation's demise.

Originality/value

The paper provides valuable insights into strategy concepts from one of the most respected leaders of the business world.

Details

Journal of Strategy and Management, vol. 2 no. 2
Type: Research Article
ISSN: 1755-425X

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Article
Publication date: 1 January 2004

Shailesh Jaitly

This study investigates the pricing of new issues in the Indian equity market during the period shortly following the deregulation of the market for new issues. We…

Abstract

This study investigates the pricing of new issues in the Indian equity market during the period shortly following the deregulation of the market for new issues. We evaluate the importance of book value and market value estimates in determining issue prices as well as prices on the first day of trading. We also use variables that may reduce uncertainty (age to proxy for awareness of the company) and information asymmetry (the extent of the promoter’s contribution to the new issue) in order to test whether uncertainty and information asymmetry have an impact on pricing of new issues. Results indicate that pricing of new issues appears to be consistent with rational decision‐making. We also examine the extent of underpricing of IPOs in India by calculating the rate of return earned by the subscribers on the first day the shares trade publicly. The first day return is, on average, 72 per cent. We then simulate what this return would have been if the government regulations had still been in place. With government restrictions, the first day’s return would have been 160 per cent. These results are consistent with the expectations that removal of restrictions results in lower returns to subscribers and lower cost of capital for the issuing firm. Finally, we examine whether there are differences in first day returns or other variables for companies that issue shares at a price above the government benchmark and the companies that issues shares at prices below the benchmark. Results indicate that there are no significant differences in first day returns between the two groups of companies. There are, however, significant differences between the two groups with respect to relative size of the issue and the difference between the forecasted and current book value. This indicates that the CCI price might be used as a benchmark, which is, then adjusted upwards or downwards to place greater emphasis on expected performance.

Details

Managerial Finance, vol. 30 no. 1
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 April 1998

Myfanwy Trueman

Notes the importance of innovation with regard to competitiveness but points out that innovation and change management are synonymous with risk. This research presents a…

Abstract

Notes the importance of innovation with regard to competitiveness but points out that innovation and change management are synonymous with risk. This research presents a new design typology which is accessible to managers and can be built into corporate strategy ‐ allowing a facility for controlling and managing innovation.

Details

European Journal of Innovation Management, vol. 1 no. 1
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 1 March 1989

T.P.A. Carey

The revolution experienced in the banking industry over the lastdecade has led to a constant series of changes with banks attempting toadjust their internal organisation…

Abstract

The revolution experienced in the banking industry over the last decade has led to a constant series of changes with banks attempting to adjust their internal organisation to suit the ever‐changing external environment. The author includes edited extracts from his research into this process of strategic formulation and the translation of marketing and planning concepts to meet the needs and character of the corporate market in Britain. Major issues influencing the development of a competitive strategy are examined, topics of strategic formulation, differentiation and the nature of transactions between banks and their customers are discussed, and the findings of market and industry analysis, outlining the practical use to which research findings have been put, is illustrated. Findings reveal that banks have been forced to identify the profitability and content of the constituent parts of their total business, and market segmentation is now seen as a necessary discipline. The current economic environment requires not only a more rapid adjustment to change, but to be effective must create within the organisation a culture which induces managers to act as agents of change.

Details

International Journal of Bank Marketing, vol. 7 no. 3
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 1 January 2004

J.H. von Eije, M.C. de Witte and A.H. van der Zwaan

Mainstream literature on long‐term performance of initial public offerings focuses on long‐term underperformance. Because underperformance is an anomalous phenomenon, many…

Abstract

Mainstream literature on long‐term performance of initial public offerings focuses on long‐term underperformance. Because underperformance is an anomalous phenomenon, many authors search for explanations based on financial market imperfections. More recently, however, the attention shifts from underperformance to long‐term performance in general. This induces the search for other than financial market imperfections in explaining under‐ or outperformance. This article presents the idea that in many companies the preparation for the IPO and the IPO itself may bring organizational change. It searches for IPO‐related organizational change in The Netherlands with interviews of Dutch corporate officers. The research shows that an IPO primarily changes financial management and financial reporting, but that other types of organizational change may also be relevant. Moreover, long‐term stock market performance was on average higher in companies where IPO‐related organizational changes were reported than in companies where the changes were not reported.

Details

Managerial Finance, vol. 30 no. 1
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 1 September 1996

Alan Treadgold

Considers the structure of grocery retailing in Australia and, in particular, presents and contrasts the development strategies being pursued by the three major retailers…

Abstract

Considers the structure of grocery retailing in Australia and, in particular, presents and contrasts the development strategies being pursued by the three major retailers in this highly concentrated market. Woolworth’s, the market leader, is a classic corporate recovery story and is emerging as one of the most impressive food retailers in the world. By contrast, the grocery businesses of Coles Myer, Australia’s leading retailer and one of the largest retailers in the world, are under intense pressure from both a rejuvenated Woolworth’s and the company’s own internal weaknesses, many of which are a legacy of a long period of unchallenged market dominance. Coles now faces the challenge of reinventing itself and is taking an approach quite different to that of Woolworth’s. Franklins is number three in Australian grocery retailing and its origins are as a price aggressive discounter. However, as Franklins’ own market position has come under pressure, the company is responding by moving towards more direct competition with Coles and Woolworth’s.

Details

International Journal of Retail & Distribution Management, vol. 24 no. 8
Type: Research Article
ISSN: 0959-0552

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