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Open Access
Article
Publication date: 13 July 2022

Cathy Zishang Liu, Xiaoyan Sharon Hu and Kenneth J. Reichelt

This paper empirically examines whether the order of liability and preferred stock accounts presented on the balance sheet is consistent with how the stock market values their…

Abstract

Purpose

This paper empirically examines whether the order of liability and preferred stock accounts presented on the balance sheet is consistent with how the stock market values their riskiness.

Design/methodology/approach

This paper measures a firm’s riskiness with idiosyncratic risk and employs the first-difference design to test the relation between idiosyncratic risk and the order of current liabilities, noncurrent liabilities and preferred stock, respectively. Further, the paper tests whether operating liabilities are viewed as riskier than financial liabilities. Finally, the authors partition their sample based on the degree of financial distress and investigate whether the results differ between the two subsamples.

Findings

The paper finds that current liabilities are viewed as riskier than noncurrent liabilities and preferred stock is viewed as less risky than current and noncurrent liabilities, consistent with the ordering on the balance sheet. Further, the paper finds that operating liabilities are viewed as riskier than financial liabilities. Finally, the authors find that total liabilities and preferred stock (redeemable and convertible classes) are viewed as riskier for distressed firms than for nondistressed firms.

Originality/value

The authors thoroughly investigate the riskiness of several classes of claims and document that the classification of liabilities and preferred stock classes is relevant to common stockholders for assessing their associated risk.

Details

China Accounting and Finance Review, vol. 24 no. 3
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 10 April 2023

Simon Andersson

This study aims to identify problems connected to information classification in theory and to put those problems into the context of experiences from practice.

1134

Abstract

Purpose

This study aims to identify problems connected to information classification in theory and to put those problems into the context of experiences from practice.

Design/methodology/approach

Five themes describing problems are discussed in an empirical study, having informants represented from both a public and a private sector organization.

Findings

The reasons for problems to occur in information classification are exemplified by the informants’ experiences. The study concludes with directions for future research.

Originality/value

Information classification sustains the basics of security measures. The human–organizational challenges are evident in the activities but have received little attention in research.

Details

Information & Computer Security, vol. 31 no. 4
Type: Research Article
ISSN: 2056-4961

Keywords

Open Access
Article
Publication date: 6 March 2017

Christina Scholten and Hope Witmer

This paper aims to reveal gendered leadership constructs that hinder a competency-based view of leadership in Swedish-based global companies and the implications for leadership…

6046

Abstract

Purpose

This paper aims to reveal gendered leadership constructs that hinder a competency-based view of leadership in Swedish-based global companies and the implications for leadership recruitment and development to top management positions.

Design/methodology/approach

The paper is based on qualitative semi-structured interviews, which have been analyzed using a gender analytic framework to identify how senior management, Human resource management and leadership trainees are discussing leadership and career development.

Findings

Three themes were identified as clouding the issue of gender-equal leadership practices thereby creating an opaque gendered lens of who is defined as eligible for leadership positions. The three themes were: symbols as gendered images, counting heads – preserving the existing system and illusive gender inclusion.

Research limitations/implications

Recruitment practices were identified as contributors to homosocial practices that perpetuate male-dominated leadership representation. However, specific recruitment practices were not fully explored.

Practical implications

The potential use of gender equality as a sustainable management practice for competitive organizations to recruit and develop talented people.

Social implications

To create resilient and gender-equal recruitment and leadership development practices.

Originality/value

This research offers an original perspective on gender representation at the senior management level in global companies by revealing gendered leadership constructs in the leadership recruitment and development process as antecedents to unequal gender representation in senior management positions.

Details

Gender in Management: An International Journal, vol. 32 no. 1
Type: Research Article
ISSN: 1754-2413

Keywords

Open Access
Article
Publication date: 12 December 2023

Tarcisio da Graca

This paper aims to address the question: What is the distribution of value (in pounds) created in a sample of domestic takeovers in the United Kingdom from 2013 to 2020 among…

Abstract

Purpose

This paper aims to address the question: What is the distribution of value (in pounds) created in a sample of domestic takeovers in the United Kingdom from 2013 to 2020 among acquirer and target stockholders?

Design/methodology/approach

The author employs a traditional event study methodology to calculate the percentage excess returns of companies on the announcement date. These returns are then converted into pound-denominated excess returns using the companies' market capitalizations. This allows the author to estimate the synergies of the mergers and acquisitions (M&As) and how they are allocated between acquirers and targets. This innovative transformation from percentage to pound excess returns establishes a new ratio methodology for addressing the paper's objective.

Findings

This paper reveals that in UK takeovers, 40 percent of the synergies in pounds are allocated to the stockholders of acquiring companies, while 60 percent go to the stockholders of target companies. In other words, acquirers retain a significant portion—more than half—of the synergies generated in these domestic deals. This original finding is statistically significant at the one percent level and strongly contradicts the hypothesis that acquirers, at best, merely break even.

Originality/value

The evidence that UK takeovers distribute value gains nearly equally between domestic deal parties challenges the enduring conventional insight in the M&A literature. This conventional wisdom suggests that the value created by business combinations is entirely distributed to target company stockholders. Consequently, this reexamination may have broader implications, offering an alternative perspective on the motives behind business combinations. This perspective differs from the “managerial hubris hypothesis,” which aligns with the prevailing conventional insight but receives limited support in the original finding reported here.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 1 August 2019

Alex Lundqvist, Eva Liljeblom, Anders Löflund and Benjamin Maury

The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within…

1849

Abstract

Purpose

The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within Africa. However, there is limited research on merger and acquisition (M&A) performance by foreign firms in Africa. The purpose of this paper is to fill this gap by exploring the “spillover by law” hypothesis (Martynova and Renneboog, 2008) that focuses on the influence of the external environment on the governance and performance of foreign M&As in Africa.

Design/methodology/approach

The data set covers 415 M&A transactions by foreign firms in Africa during the period of 1999–2016. Dynamic data covering the country’s legal, cultural and political environment are collected from the World Bank, the Heritage Foundation and Transparency International.

Findings

The authors find that the legal environment significantly affects the returns of bidders on African firms. For complete acquisitions, bidder returns are significantly higher when the bidder’s country has higher shareholder protection and higher creditor protection compared with the target firm’s country. The results show that the effects are significant when there is a full control change (including a change in the target firm’s nationality) but not in the case of partial control transfers. The results are consistent with the “spillover by law” hypothesis.

Originality/value

The authors contribute to the literature on cross-border M&As by separately studying the valuation effects of full, majority and minority changes in control; by being the first study of the legal spillover effects in Africa; and by being the most extensive study of the legal determinants of the valuations of non-African acquirers of African firms.

Details

International Journal of Emerging Markets, vol. 14 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 3 May 2023

Grainne Dilleen, Ethel Claffey, Anthony Foley and Kevin Doolin

This paper aims to investigate how actors in the farmer’s network influence the adoption of smart farming technology (SFT) and to understand how social media affects this adoption…

1859

Abstract

Purpose

This paper aims to investigate how actors in the farmer’s network influence the adoption of smart farming technology (SFT) and to understand how social media affects this adoption process, in particular focusing on the influence of social media on trust in knowledge dissemination within the network.

Design/methodology/approach

The methodology used a two-stage process, with semi-structured interviews of farmers, augmented by a netnographic approach appropriate to the social media context.

Findings

The analysis illustrates the key role of the farmer network in the dissemination of SFT knowledge, bringing insight into an important B2B context. While social media emerges as a valuable way to connect farmers and promote discussion, it remains underused in knowledge dissemination on SFT. Also, farmers exhibit more trust in the content from peers online rather than from SFT vendors.

Originality/value

Novel insights are gained into the influence of the farming network on the accelerated adoption of SFT, including the potential role of social media in mitigating the homophilous nature of peer-to-peer interactions among farmers through exposure to more diverse actors and information. The use of a social network theory lens has provided new insights into the role of trust in shaping social media influence on the farmer, with variances in farmer trust of information from technology vendors and from peers.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 8 April 2021

Lucrezia Coletta, Milena Vainieri, Guido Noto and Anna Maria Murante

This study aims to systematically review the literature on the use of customer value for the evaluation of inter-organizational performance, with a wide perspective embracing…

3085

Abstract

Purpose

This study aims to systematically review the literature on the use of customer value for the evaluation of inter-organizational performance, with a wide perspective embracing different contexts and settings.

Design/methodology/approach

Searching within the Scopus and ISI Web of Science databases, a systematic literature review has been conducted analyzing 41 papers published between 1991 and 2020.

Findings

Categorization of customer value and inter-organizational performance measures were developed and the main differences among different settings were discussed.

Practical implications

The results presented in this study may be helpful for practitioners and managers who, in the completion of their activities, have to maintain strong and frequent relationships with other organizations. In fact, practitioners and managers interested in enhancing customer value and measuring inter-organizational performance may find an innovative perspective linking the two dimensions. They could find the categorizations presented in this study as a starting point for developing a performance evaluation framework suitable for evaluating their present business relationships. In fact, the categorizations provide a panorama of how scholars have measured until now inter-organizational performance through customer value, and therefore, they could choose the measures more appropriate for their situation.

Originality/value

No systematic literature review of the use of customer value for assessing inter-organizational performance has previously been undertaken, especially considering different settings.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 28 February 2023

Louise Margaret Prendergast, Gill Toms, Diane Seddon, Carys Jones, Bethany Fern Anthony and Rhiannon Tudor Edwards

The purpose of this paper is to share the learning concerning how services and the paid carers working in them can support people living with dementia (PLWD) and their unpaid…

1009

Abstract

Purpose

The purpose of this paper is to share the learning concerning how services and the paid carers working in them can support people living with dementia (PLWD) and their unpaid carers to overcome social isolation. This learning comes from the key findings from a Social Return on Investment (SROI) evaluation of a Shared Lives (SL) Day support service, known as TRIO.

Design/methodology/approach

SROI is a form of cost-benefit analysis that captures and monetises stakeholder outcomes. The SROI evaluation included a rapid evidence review, an interview study and a questionnaire study. The learning shared is drawn from the interview and questionnaire data that explored the reported outcomes relating to social connection, which included data related to participating in meaningful activities, confidence and independence.

Findings

PLWD who accessed the SL Day support service experienced better social connection, a sense of control over their activities (including their social activities) and community presence. A key foundation of these outcomes was the meaningful relationship that developed between the PLWD, their unpaid carer and the paid carer.

Research limitations/implications

This evaluation was a pilot study with a small, albeit representative sample size.

Practical implications

The learning suggests feasible and effective ways for paid carers to support the social connection of PLWD and their unpaid carers with their wider community.

Originality/value

There has been little exploration of how community-based short breaks (like SL Day support) can enhance social connection. The authors drew on a social relational model lens to illustrate how this service type had supported successful outcomes of community and social inclusion for PLWD.

Details

Working with Older People, vol. 28 no. 1
Type: Research Article
ISSN: 1366-3666

Keywords

Open Access
Article
Publication date: 17 June 2021

Angelo Paletta and Genc Alimehmeti

This paper aims to analyze the ex ante and ex post economic efficiency of the preventive agreement (concordato preventivo) or composition with creditors as defined by the Italian…

Abstract

Purpose

This paper aims to analyze the ex ante and ex post economic efficiency of the preventive agreement (concordato preventivo) or composition with creditors as defined by the Italian Bankruptcy Law. This study examines four possible outcomes of the procedure: homologation (confirmation); the degree of dissent/consent of creditors; the revocation, admissibility or inadmissibility; the declaration of the company bankruptcy in preventive agreement.

Design/methodology/approach

This paper uses data from 728 Italian companies which filed for preventive agreement in 2016. In reference to each of the four possible outcomes, this study applies nine logit regressions to analyze the effects of a series of efficiency variables ex ante (corporate-based drivers) and ex post (procedure-based drivers).

Findings

Results show the relevance of the debt structure, ownership structure and virtuous behavior, corporate governance and management systems, as well as effectivity of the court control on the preventive agreement outcome.

Originality/value

This paper draws on original data of bankruptcy in Italy and gives empirical evidence of the ex ante and ex post factors on the outcomes of the preventive agreement.

Details

International Journal of Law and Management, vol. 64 no. 1
Type: Research Article
ISSN: 1754-243X

Keywords

Open Access
Article
Publication date: 12 November 2019

José Ignacio Conde-Ruiz, Manu García and Manuel Yáñez

The purpose of this paper is to analyze the functioning of a non-sanction “soft” gender quota policy structure (a simple recommendation), using the case of Spain. In the first…

1655

Abstract

Purpose

The purpose of this paper is to analyze the functioning of a non-sanction “soft” gender quota policy structure (a simple recommendation), using the case of Spain. In the first part of the paper, the authors have reported the dismal improvement regarding the increase of female percentage presence in the companies’ boards of members.

Design/methodology/approach

The authors provide a detailed sectorial analysis and a classification of board members by type (executive, proprietary, independent and other external). In the second part, the authors exploit the fact that since 2013, the stock-listed companies are legally obliged to respond to a series of questions on gender diversity issues in their annual reports. Using this requirement, the authors perform an analysis using text processing techniques. The authors find that “self-plagiarism” is common in the responses – i.e. they copy responses from previous years – as well as “plagiarism” – i.e. they copy responses from other companies in previous years.

Findings

The insufficient progress in respect to the goals of the Law of Equality of 2007 (enacted by Spanish authorities) and the lack of interest that can be inferred from the companies’ responses included in their annual reports lead the authors to consider the necessity of changing the law on the corporate policies gender quotas in Spain.

Originality/value

It is the first study that realizes this type of analysis for Spain.

Details

Applied Economic Analysis, vol. 28 no. 82
Type: Research Article
ISSN: 2632-7627

Keywords

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