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The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in European context. Specifically, this paper aims to empirically examine how CSR moderates the sensitivity between investment spending and firm internal funds.

The Euler equation technique approach is applied to test the sensitivity of investment to internally generated funds for a panel data set of 398 European companies listed in the STOXX Europe 600 during 2009-2014. Furthermore, a mediated moderation model is developed in order to examine the moderating role of CSR in the investment-cash flow sensitivity, as well as the mediating role of agency costs on the moderation effect of CSR.

The results show that CSR performance weakens the sensitivity of investment to internal funds; agency costs of free cash flow mediate the negative moderating effect of CSR on investment-cash flow sensitivity. Thus, this study demonstrates empirically that firms with socially responsible practices are better positioned to obtain financing in the capital markets through reducing market frictions as well as agency costs.

Firms are invited to engage more in CSR activities that reduce agency conflicts between management and shareholders.

The originality of this paper consists in proposing the establishment of both direct and indirect link between CSR and investment-cash flow sensitivity.

The object of this paper is to understand how central–local relations and internal technical characteristics contribute to performance reporting delays at the local level in a Global South context.

The paper develops and tests four propositions using a combination of secondary data analyses and semistructured interviews with 30 local government officials.

The findings indicate that delays in performance reporting are generally high in pre-election years because leadership commitments at the local level largely shift toward national politics (campaigning for re-election of the president). Additional reporting delays were found to be the result of low financial capacity to maintain appropriate data collection and management systems, lack of highly trained monitoring and evaluation experts at the local level and lack of sanctions for noncompliance.

The fact that some types of Districts (large municipalities and metro areas with access to large financial resources) were excluded from the analysis induces some bias to the findings. The choice of 30 out of a total 260 local governments limits the analyses to only 12% of views and perceptions of local government reporting delay. Additionally sourcing responses from a few monitoring and evaluation (M&E) personnel out of hundreds of mid- to upper-level employees limited the breath of discussions that could have resulted from a broader study.

The results of this paper suggest that any attempt at imposing sanctions on late reporting may not be very successful since national party politics, which lie outside the control of municipalities, is one of the main factors that drive reporting delay. Rather than imposing sanctions, government should consider incentivizing the reporting process. On the other hand, since internally generated funds (IGF) and the M&E team are factors that lie within the control of the municipality, any attempt to decrease reporting delay should first focus on improving local revenues and strengthening municipal M&E capacity building.

This paper adds to the existing literature by offering directions for approaching performance reporting delay in two ways. First, it emphasizes central–local relations as an important political determinant of performance reporting delay. Second, it explores reporting delay in Ghana's local governments and therefore provides useful insights from a Global South perspective.

The purpose of this paper is to discuss property taxation and examine the extent of its contribution to financing urban infrastructure/services in Ghana. Dwelling on existing literature, it analyses the contribution of property tax to local level internally generated funds (IGF) and expenditure on urban infrastructure/services financed from IGF.

Using a case study approach with a combination of both quantitative and qualitative research, this research was carried out in the Sekondi-Takoradi metropolis in the Western region, Ghana based on its economic and social diversity, business and economic opportunities and different land tenure systems. Data were collected through expert interviews and questionnaires, with a baseline study from 2006 to 2013. To check the veracity of data, triangulation of data were adopted.

The study revealed that property rate accounted for 28 per cent of IGF of the Sekondi-Takoradi Metropolitan Assembly (STMA). This revenue was expended mostly on waste management, education, social services, street lights and health facilities. For the period between 2006 and 2013, property rates revenue alone was able to finance not less than 84 per cent of total expenditure from IGF. It was estimated that if the challenges to property taxation were resolved in Ghana, the tax could finance the entire annual IGF budget of the STMA on urban infrastructure and services over and above the expended expenditure with a surplus margin of 13 per cent.

This paper makes available empirical evidence of property tax contribution to IGF of STMA that could stimulate and enhance revenue mobilisation of other local government authorities. Debate on property tax revenue contribution towards financing urban infrastructure/services is also stimulated.

There exist many researches on property tax, however, none of these studies have examined the exact contributions of property rating revenue in financing urban infrastructure and services. This paper is the product of the original research conducted in Sekondi-Takoradi metropolis.

During the last ten years, strategic planning models have become increasingly popular among large, diversified companies as an aid in making strategic resources allocation decisions. In general, these models classify the business units that comprise a company into one of four categories according to the unit's market share and the growth rate of the industry in which the unit competes. For each of the four categories into which a business unit may fall, a strategy is automatically prescribed:

This study provides a large sample comparison of research and development (R&D) spending intensity in private and public firms and the extent to which these firms' unique characteristics affect their R&D spending rate.

The study compares both private and public data from UK firms for the period 2006–2016, generating a total matched 232,029 firm-year observations, and applies a probability model technique to our large panel datasets.

The authors uncover that private firms show lower R&D spending intensity compared to their public counterparts. The authors evidence also shows that privately owned firms in the technological (non-technological) sector display higher (lower) probability of R&D spending intensity. Compared with public firms, the authors further observe that the intensity of private firms' R&D spending increases with higher internal cash flow, leverage and industry information quality. The authors results remain robust to alternative econometric models.

Despite the findings of this study, the authors would like to point out that the use of a single country's data limits the generalisability of our findings. Thus, future studies may also consider extending this study across multiple countries.

A key implication of our study is that private firms are more likely to finance R&D intensity from the internally generated cash flow compared to the public ones. This stems from the fact that private firms are more likely to experience higher costs in raising external finance for innovative activities than public firms. Thus, easy access to funding for private firms is vital for enhancing R&D activities of the private firms.

By combining both private and public firms' datasets, the authors are able to provide new evidence to suggest that the intensity of private firms' R&D spending is dependent on internal cash flow, leverage and the industry information level. In fact, to the best of the authors’ knowledge, this is the first study that explores these relationships.

This paper investigates the role of method of payment in explaining the differences in returns to a bidding firm during the announcement period. The results indicate that the bidding firms’ returns are negative for equity payment bids and positive and significantly larger for cash bids. This is consistent with the view that cash‐offer announcements constitute a revelation by management of favorable new information about a firm’s future cash flows and vice versa for equity offerings. The results from this study provide an explanation of why business executives have been reluctant to issue equity even when they are raising the money to finance profitable projects like acquisitions. Executives relied on internal funds that allowed them to avoid the flotation costs of issuing new shares and the scrutiny by the financial market while limiting growth to that sustainable with internally generated funds.

The aim of this paper is to focus on different compensation structures for real estate mutual fund Management Companies and assess whether management fees paid on either Net Asset Value (NAV) or Gross Asset Value (GAV) generate distorted incentives relative to those generated by performance fees paid on the market value of the fund.

To test whether management fees induce Management Companies to opportunistic behaviors, the relative effect of NAV- and GAV-based fees is compared over time using a plethora of econometric models.

It is found that Management Companies that are paid GAV-based fees start with higher leverage to expand assets under management, then, subsequently, drive leverage and over-investment down as fund maturity approaches to minimize the negative impact of negative NPV investments on the final market value of the fund and therefore on performance fees paid at maturity.

A dataset of Italian listed real estate mutual funds is used. While the Italian market can be considered an ideal setting for an empirical analysis, studies on other countries would make it possible to test implications of the model that are only weakly identified in our setting.

Results could be important when designing managerial contracts.

It is shown that Management Companies actively manage the size of their balance sheet to maximize fees, and that NAV-based fees produce effects similar to market-based fees in terms of managerial incentives.

Purpose – The major question posed in this paper is whether public finance management (PFM) reforms undertaken by development partners (DPs) and the Ministry of Health (MOH) in Ghana were to find solutions to the many PFM challenges or it was merely a façade to pursue latent political interest?

Methodology – Study information was gathered via a desk review of major PFM policy documents, procedures, manuals, guidelines, and findings of commissioned studies covering the period under review. Information generated from the desk review was triangulated via extensive interviews with a sample of policy makers from MOH and DPs.

Findings – The findings suggest that MOH and DPs pursued reforms mostly to address the PFM challenges in the sector. Additionally, the study finds questionable the attitude and posture of the two actors and calls for further investigations to unearth what the said attitude and posture may imply in terms of intentions.

Originality/value – The findings raises fundamental question regarding public sector – DPs collaborations in executing reforms. This could open up new frontiers for further research to better understand DPs/public sector collaboration in the implementation of reforms.

Limitations – The sample used for this study may constrain generalization to other jurisdiction. This limitation does not in any case invalidate the conclusions arrived at.

The purpose of this study is to examine the effect of companies’ Shariah compliance (SC) debt financing decisions, financing with retained earnings (REs), cash holdings, capital expenditures and dividend pay-out policies.

The sample consisted of 1,648 firm-year observations of GCC non-financial firms from various industries. The authors scrutinised the firms over a period of eight financial years from 2012 to 2019. To analyse the research hypotheses, the authors used a panel data model using ordinary least squares and generalised method of moments, depending on historical data.

The results of this study show a negative effect of SC on debt financing decision and dividend pay-out policies but a positive effect on financing decision with REs, cash holdings and the decision on capital expenditures.

This study's findings provide a better understanding of the role of restrictions of financing options in SC companies on financing decisions in the GCC. Whether religious or simply interested in investing in SC companies, investors can benefit from knowing that these companies make financial decisions that may affect their short- and long-term profits for policymakers and regulators. This study may be valuable in evaluating the effect of restrictions imposed by Islamic Shariah on how firms make different financial decisions. Policymakers should encourage the issuance of Islamic financial products and prepare two financial indicators to classify SC firms.

The main contribution of this study is to obtain empirical evidence on the effect of SC on a set of financial decisions. To the best of the authors’ knowledge, this study is the first to focus on non-financial companies committed to Shariah. They do not depend on interest-bearing loans for their financing but are limited to financing by shares, financing with REs and financing using various Islamic financing formulas.

The purpose of this paper is to investigate the importance of the entrepreneur’s quest for independence and control over the firm for governance and financing strategies with a special focus on family firms and how they differ from nonfamily firms.

The analysis is based on 1,000 telephone interviews with Swedish micro and small firms. The survey data are matched with firm-level data from the Bureau van Dijks database ORBIS.

The analysis shows that independence is a prime motive for enterprises, statistically significantly more so for family owners. Family owners are more prone to use either their own savings or loans from family and are more reluctant to resort to external equity capital. Our results indicate a potential “capital constraint paradox”; there might be an abundance of external capital while firm growth is simultaneously constrained by a lack of internal funds.

The main limitation is that the study is based on cross-section data. Future studies could thus be based on longitudinal data.

The authors argue that policy makers must recognize independence and control aversion as strong norms that guide entrepreneurial action and that micro- and small-firm growth would profit more from lower personal and corporate income taxes compared to policy schemes intended to increase the supply of external capital.

The paper offers new insights regarding the value of independence and how it affects strategic decisions within the firm.