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1 – 10 of 31António Miguel Martins and Cesaltina Pacheco Pires
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Abstract
Purpose
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Design/methodology/approach
The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.
Findings
The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.
Practical implications
This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.
Originality/value
The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.
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The study examines the IPO resilience grounded on the firm’s intrinsic factors.
Abstract
Purpose
The study examines the IPO resilience grounded on the firm’s intrinsic factors.
Design/methodology/approach
We examine the association of IPO performance and post-listing firm’s performance with issuers' pre-listing financial and qualitative traits using panel data regression.
Findings
IPOs floated in the Indian market from July 2009 to March 31, 2022, evince the notable influence of issuers' pre-IPO fundamentals and legitimacy traits on IPO returns and post-listing earning power. Where the pandemic’s favorable impact is discerned on the post-listing year earning power of the issuer firms, the loss-making issuers appear to be adversely affected by the Covid disruption. Perhaps, the successful listing equipped the issuers with the financial flexibility to combat market challenges vis-à-vis failed issuers deprived of desired IPO proceeds.
Research limitations/implications
High initial returns followed by a declining pattern substantiate the retail investors to be less informed vis-à-vis initial investors, valuers and underwriters, who exit post-listing after profit booking. Investing in the shares of the newly listed ventures post-listing in the secondary market can shield retail investors from the uncertainty losses of being uninformed. The IPO market needs stringent regulations ensuring the verification of the listing valuation, the firm’s credentials and the intent of utilizing IPO proceeds. Healthy development of the IPO market merits reconsidering the listing of ventures with weak fundamentals suspected to withstand the market challenges.
Originality/value
Given the tremendous rise in the new firm venturing into the primary market and the spike in IPOs countering the losses immediately post-opening, the study examines the loss-making and young firms IPOs separately, adding novelty to the study.
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Wenjing Wang, Moting Wang and Yizhi Dong
The paper's purpose is to investigate the effects of digital finance on the risk of stock price crashes and the underlying transmission mechanisms, and to provide suggestions to…
Abstract
Purpose
The paper's purpose is to investigate the effects of digital finance on the risk of stock price crashes and the underlying transmission mechanisms, and to provide suggestions to inhibit the stock crash risk (CR).
Design/methodology/approach
This paper selects all companies that were listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2011 to 2020. It then uses the two-way fixed effect model and the intermediary effect model to verify such effects.
Findings
The overall outcomes demonstrate such a result that the CR of listed companies in China can be significantly reduced by the development of digital finance, and the overall transparency of business financial information and the equity pledge of controlling shareholders are the two underlying transmission mechanisms that digital finance can cause effects on the CR of stocks.
Research limitations/implications
The main limitations are that there may exist some problems in the method for evaluating the CR of stocks. And there may be a problem of endogeneity caused by the empirical model cannot control all correlation variables.
Practical implications
This paper would provide policy implications, for different roles, to inhibit the stock CR and to make the development of the economy more stabilize.
Social implications
Digital finance can promote economic development while restraining financial risks at the same time. Therefore, although this study is based on the relevant data from China, it can also provide a reference for other economies with different basic conditions from China, to promote the overall development of the world economy.
Originality/value
The current academic research on digital finance or stock price CR has been relatively sufficient, but there are few papers that combined both. By combining digital finance with stock CR, this paper researches the influence of digital finance on the CR of stocks through empirical analysis. So, this paper would provide new research ideas and evidence for potential influence factors of the CR of stocks, fill the gap in this research field and provide certain help for subsequent scholars to conduct relevant research.
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Luigi Nasta, Barbara Sveva Magnanelli and Mirella Ciaburri
Based on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and…
Abstract
Purpose
Based on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and governance practices and CEO compensation.
Design/methodology/approach
Utilizing a fixed-effect panel regression analysis, this research utilized a panel data approach, analyzing data spanning from 2014 to 2021, focusing on US companies listed on the S&P500 stock market index. The dataset encompassed 219 companies, leading to a total of 1,533 observations.
Findings
The analysis identified that environmental scores significantly impact CEO equity-linked compensation, unlike social and governance scores. Additionally, it was found that institutional ownership acts as a moderating factor in the relationship between the environmental score and CEO equity-linked compensation, as well as the association between the social score and CEO equity-linked compensation. Interestingly, the direction of these moderating effects varied between the two relationships, suggesting a nuanced role of institutional ownership.
Originality/value
This research makes a unique contribution to the field of corporate governance by exploring the relatively understudied area of institutional ownership's influence on the ESG practices–CEO compensation nexus.
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Mai T. Said and Mona A. ElBannan
The purpose of this study is to examine the impact of firm environmental, social and governance (ESG) rating scores on market perception and stock behavior from 2017 to 2021 while…
Abstract
Purpose
The purpose of this study is to examine the impact of firm environmental, social and governance (ESG) rating scores on market perception and stock behavior from 2017 to 2021 while controlling for COVID-19 severity score.
Design/methodology/approach
The authors used panel regression models with robust standard errors based on cross-country and cross-industry sample of 1,324 ESG firms from 25 emerging countries across four regions. Four separate regression analyses are used. Hausman test is used to determine whether fixed-effect (FE) or random-effect approaches should be used in regression models. Lagrange multiplier test is used to test for time FEs, and F-test for individual effects to choose between pooled ordinary least squares model and FE. Two-unit root tests are conducted to check stationarity. Heteroskedasticity and serial correlation were controlled through a robust covariance matrix estimation.
Findings
The authors provide evidence that the stakeholder theory persists in emerging countries. Overall, the results suggest that firms’ stock behavior is positively associated with the level of environmental and social performance in the region. However, the results do not provide empirical evidence to support the link between ESG performance and stock market perception proxied by the price-to-sales ratio. The results suggest that Refinitiv and Bloomberg ESG rating scores have a positive impact on stock performance in emerging markets, albeit the Bloomberg rating score is insignificant.
Practical implications
Favorable impact of environmental and social performance on stock performance suggests that policymakers should take initiatives to raise awareness toward investments in ESG projects. Evidence shows that ESG stock performance in emerging markets does not insulate firms from the COVID-19 severity. Furthermore, this study highlights the inconsistency in calculating the ESG ratings, therefore, a more standardized approach is recommended to support investors seeking sustainable investments.
Social implications
The findings have social implications for investors with proenvironmental preferences and nonpecuniary motives for ethical investments. Asset fund managers should develop ESG investment strategies to promote investor preferences that are linked to the proenvironmental and prosocial attitudes by increasing their investments in stocks of firms that behave ethically and support the environment. Furthermore, the findings show that investors pay a price for ethical and socially responsible investments as they are evaluating the environmental and social activities, hence, the firm ESG profile influences equity valuation and risk assessment.
Originality/value
The study extends the literature and provides evidence from the unique setting of emerging markets by analyzing the relationship between ESG rating scores and the COVID-19 severity scores on one hand, and stock behavior and market perception on the other.
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Yoo Na Youm, Jin Young Lee and Chong Kyoon Lee
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to…
Abstract
Purpose
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to examine what factors influence a firm’s decision in its scope of CSR. In exploring what factors influence CSR scope, the authors examine the relationship between a firm’s prosocial orientation and CSR and further examine its boundary conditions by the existence of CSR department.
Design/methodology/approach
This study uses a data set – the Social Value Survey – administered by the Center for Social Value Enhancement Studies based in the context of Korean firms. Based on 86 firm responses, statistical models were performed to test hypotheses.
Findings
The findings show that a firm’s prosocial orientation is positively associated with CSR scope. Further, this study shows that there is a negative moderating effect of the CSR department for the relationship between the prosocial orientation and CSR scope.
Originality/value
This study attempts to contribute to the extensive line of work on the antecedents of CSR by exploring the simultaneous existence of various drivers of CSR and the interplay between the drivers. And this study enhances the understanding on what factors influence the decision of CSR scope within a complex system of diverse stakeholder relationships. Additionally, this study has potentially shed light on the role of CSR departments to determine CSR scope.
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Luis de Enrique Arnau and María José Pinillos-Costa
This paper aims to analyze the thematic content of research addressing the relation between board of directors (BoD) and business transformation (BT) to obtain better…
Abstract
Purpose
This paper aims to analyze the thematic content of research addressing the relation between board of directors (BoD) and business transformation (BT) to obtain better understanding of status and to derive future areas of study.
Design/methodology/approach
This paper reviews literature through a bibliometric analysis based on co-occurrence of articles published in Web of Science Core Collection ™ (WoS) between 1990 and 2022, identifying key concepts, setting network of relations and identifying the strategic importance of clusters of concepts. Findings and implications are discussed, future lines of research are presented and limitations are noted.
Findings
Thematic research on boards addressing transformation shifted from the analysis of individuals' traits to an organizational approach with majority of research centered on the role of boards under different theories and the consequences of strategic changes on firm's performance. Further research is around gender diversity, sustainability and the moderating role of ownership structure and business culture.
Research limitations/implications
Some limitations are also noted. This analysis considered articles indexed by WoS for Q1+Q2 publications as source of literature, while including others such as Scopus would increase knowledge base. Also, to identify main streams of research, the authors considered keywords with cumulative occurrence spanning from 30% to 40% while increasing this percentage would add terms that might improve precision to the connections among keywords. Other techniques could have been used such as co-citation or bibliographic coupling, although the authors find these as better suited to investigate the basic structure behind the foundational knowledge of the topic while the authors’ intention was to understand the positioning of study fields regarding the degree of research progress.
Practical implications
This paper presents some practical implications for future researchers. Those who wish to leverage previous evidence to address new research questions might look into principal themes covering BoD dynamics and composition to exert CG, and the relation between strategic decisions and performance measured by different variables. Those who wish to position their research as new findings to shed light on dilemmas, might find opportunities in the fields of climate change-sustainability, R&D for growth and innovation under the perspective of intangible assets.
Originality/value
This paper, is the first to the best of the authors’ knowledge, to identify research clusters for the intersection of boards and transformation and to determine their stage of development.
研究目的
本文旨在分析探討董事會與業務轉型之間的關係的學術研究的專題內容,以能對有關課題的研究狀況有更深入的了解,並擬從分析中取得未來可供研究的範疇。
研究設計/方法/理念
本文透過科學計量分析法來進行文獻探討。方法乃基於在1990年至2022年期間在Web of Science Core Collection 刊載的學術論文的共現分析而進行; 透過這個研究方法,研究人員建立了聯繫的網絡,並確認了各個概念群組的策略重要性。在本文中,研究結果和研究結果帶來的啟示會被討論,未來的研究領域和方針也會得到說明,研究的局限也會被認定和記錄下來。
研究結果
探討董事會而又涉及業務轉型的專題研究,由當初集中探討董事個人的特質、轉移到現在研究整體的組織理念和處事取向,而就後者來說,大部份的研究都集中於在不同的理論框架裡董事會所扮演的角色,以及因策略上的改變而為公司的業績帶來的影響。進一步的學術研究都是圍繞著性別多元化、可持續性、所有權結構所扮演的緩和角色和商業文化的研究。
研究的原創性/價值
盡我們所知,本文乃為首篇學術論文,去鑑定關於董事會與業務轉型之間的關聯的研究集群,也是首篇學術論文,去確定這些研究集群的發展階段。
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Parveen Siwach and Prasanth Kumar R.
This study aims to outline the research field of initial public offerings (IPOs) pricing and performance by combining bibliometric analysis with a systematic literature review…
Abstract
Purpose
This study aims to outline the research field of initial public offerings (IPOs) pricing and performance by combining bibliometric analysis with a systematic literature review process.
Design/methodology/approach
The study uses over three decades of IPO publication records (1989–2020) from Scopus and Web of Science databases. An analysis of keyword co-occurrence and bibliometric coupling was used to gain insights into the evolution of IPO literature.
Findings
The study categorized the IPO research field into four primary clusters: IPO pricing and short-run behaviour, IPO performance and influence of intermediaries, venture capital financing and top management and political affiliations and litigation risks. The results offer a framework for delineating research advancements at different stages of IPOs and illustrate the growing interest of researchers in IPOs in recent years. The study identified future research potential in the areas of corporate governance, earning management and investor sentiments related to IPO performance. Similarly, the study highlighted the opportunity to test multiple theoretical frameworks on alternative investment platforms (SME IPO platforms) operating under distinct regulatory environments.
Originality/value
To the best of the authors’ knowledge, this paper represents the first instance of using both bibliometric and systematic review to quantitatively and qualitatively review the articles published in the area of IPO pricing and performance from 1989 to 2020.
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Iffat Sabir Chaudhry and Angela Espinosa
Despite being a seminal explanation of the workforce emotional experiences, capable of mapping the path from the antecedents to consequences, affective events theory (AET) only…
Abstract
Purpose
Despite being a seminal explanation of the workforce emotional experiences, capable of mapping the path from the antecedents to consequences, affective events theory (AET) only offers a “macrostructure” of a working environment. To date, little is known about the universal features of the work environment that may guide the understanding of imperative work aspects triggering employees’ emotions at work. Hence, the study proposes and validates that Stafford Beer’s viable system model (VSM) can provide a holistic view of the organizational work environment, enabling a comprehensive understanding of work events or factors triggering workforce emotions.
Design/methodology/approach
First, the VSM structural layout is used to fill in the “macrostructure” of the “working environment” in AET to diagnose the functional and relational aspects of the work and the related work events occurring within. Using a deductive approach, 31 work events were adopted to determine the impact of VSM-based work environment events on the employees’ emotional experiences and subsequent work attitudes (job satisfaction) and behaviors (citizenship behavior). To field test the proposed nexus of VSM and AET, the survey was conducted on two hundred and fifteen employees from 39 different organizations. PLS-SEM tested the explanatory power of the suggested VSM’s systemic approach for understanding the affective work environment in totality.
Findings
The findings confirmed that the VSM metalanguage provides a holistic view of the organizational functioning and social connectivity disposing of affective work events, helpful in assessing their aggregate influence on employees’ emotions and work-related outcomes.
Practical implications
The findings identify how employees' emotions can be triggered by everyday work operations and social relations at work, which can affect their extra-role behaviors and necessary work-related attitudes.
Originality/value
The study utilized Beer’s VSM framework based on the systemic principle of “holistic view” for ascertaining the affective work environment and its related features holistically, which filled in well the macrostructure of “work environment features” with micro-structures of organizational inter-related aspects which are yet to be known in AET – a seminal explanation for managing workforce emotions.
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Gender-diverse people experience unique cultural and interpersonal stigma in mainstream society and sometimes within their own communities; they face allegations of inauthenticity…
Abstract
Gender-diverse people experience unique cultural and interpersonal stigma in mainstream society and sometimes within their own communities; they face allegations of inauthenticity based on their nonconformity to either cisnormative or transnormative gender regimes. Based on 21 in-depth life history interviews, we unveil the intricate interactional process of negotiating identity and authenticity in the biographical work of gender-diverse individuals. In this study, gender-diverse people engaged in a “gender audit” with their gender-diverse interviewer. Gender audits yield verbal performances of gender with oneself and others. Ambiguity was “accounted for” or “embraced and created” in their biographical work to organize their life stories and undermine binary essentialism – a discourse that was “discursively constraining.” Gender audits took place in participants' day-to-day lives, either through self-audits, questioning from others, or both. In the final analysis, we assert that we all engage in gender auditing. Gender audits are intersubjective sites of domination, subordination, resistance, and social change. Gender diversity, then, can be viewed as a product of gender in flux.
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