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In 1986 a study was carried out in a number of small companies in the UK that manufacture to customer requirements. The primary objective was to assess the relevance and importance to industry of ideas developed in earlier research at Lancaster University, relating the order quotation process to production and sales. However, in the course of the study a great deal was learnt about the industrial sectors examined.

The purpose of this paper is to first examine whether intellectual capital (IC) information is considered in firm valuation. Next, to examine two issues: financial analysts' investment recommendations when faced with different combinations of performance levels (i.e. above or below industry average) of financial and IC measures, and the role of financial and IC measures with different performance levels and holding periods (i.e. short‐term vs long‐term) for the investment on analysts' recommendations.

The first part of the paper used secondary (both archival and survey) data. The second part was an experiment.

The findings in the first part show that, after controlling for the effect of financial performances on firm value, measures of IC are still significant explanatory variables (of firm value). The second part shows that the financial and IC measures affect financial analysts' investment recommendations differently depending on the measures' levels of performance and the time horizon for holding the investments.

The limitations of the paper are as follows: the use of secondary data from a single country limits its generalizability; and the results of the experiment are parameterized by the research design such as the amount of information provided to the financial analysts. Extending the analyses to other settings and using time‐series data represent future research opportunities.

The research makes three contributions to the IC literature. First, it extends the studies on the relevance of IC in capital market research by broadening its scope to include measures of IC other than R&D intensity. Next, it provides evidence of the informativeness of IC measures in market valuation of firms and analysts' recommendations, thus lending credence to the arguments of reports and researchers for more external communication of IC information. Finally, this study is one of the first to examine a broader scope of IC in the capital market context and the use of IC by sophisticated market participants. With policy‐makers and standard‐setting bodies considering proposals to enhance information on IC in financial reports, it is important to broaden the scope of IC metrics and understand their role in enhancing firm value to develop a framework for reporting IC.

Further understanding of how stakeholder marketing explains firm performance through greater customer satisfaction, innovation, and reputation of a firm.

Grounded in stakeholder theory, the study provides a conceptualization of stakeholder orientation based on cultural values that is distinctive from stakeholder responsiveness and examines the relationship of stakeholder responsiveness to firm performance. The study determines the mediating role of marketing outcomes on the impact of stakeholder responsiveness on firm performance. Multiple regression analysis tests hypotheses using a data set consisting of qualitative data obtained from corporate documents and quantitative data from respected secondary sources.

Our findings provide support for stakeholder marketing creating a strong relationship to organizational outcomes. There exists a positive relationship between stakeholder responsiveness and firm performance through customer satisfaction, innovation, and reputation.

Our definition implies that stakeholder responsiveness is acting in the best interests of the stakeholder as a responsible business. This study shows that stakeholder marketing may not always represent socially responsible marketing. Further research could explore how and why firms may not respond ethically and responsibly to stakeholders.

We further the discussion whether stakeholder marketing equates to sustainability. Marketers can build on expertise of managing customer relationship and generating customer value to develop a stakeholder marketing approach that addresses the economic, social, and environmental concerns of multiple stakeholders.

We further the discussion whether stakeholder marketing equates to sustainability. Marketers can build on expertise of managing customer relationship and generating customer value to develop a stakeholder marketing approach that addresses the economic, social, and environmental concerns of multiple stakeholders.

Purpose – The global surge in institutional investors in the past decade or so has aroused interest in the role institutions play, or should play, in regard to the monitoring of the company financial performance. This study explores the nature of the relationship that exists between institutional ownership, corporate governance, and company financial performance.

Methodology/approach – Using Ordinary Least Squares (OLS) regression technique on 391 company-year observations between 2005 and 2010 to examine the nature of the relationship that exists between firm performance (PER) and ownership variables, and test whether this relationship is significant.

Findings – Our evidence provides support for the view that top five institutional shareholders take a longer-term view and are more involved with governance suggesting that the size of shareholdings has an effect when it comes to monitoring managerial decisions.

Research limitations/implications – Due to the small sample size, caution should be exercised when interpreting the results of this study. Also, it is to be noted that this study is based on a small country with an open capital market where there is high proportion of institutional ownership.

Practical implications – The results provide useful insights into the role different types of institutional investors play in terms of enhancing both governance and firm performance. Our analyses suggest that in mitigating principal-agent conflicts, size of ownership has an influence.

Originality/value of chapter – Our study adds to the literature by focusing on the role institutional investors’ play in New Zealand. Our study adds to the theory by showing that ownership type is important for mitigating agency conflicts.

This chapter employs multiple frameworks to establish the need for and the promise of culturally inclusive science literacy strategies for urban United States contexts. Relevant frameworks for inclusive science education include (but are not limited to) science literacy by discourse norms found in Next Generation Science Standards (NGSS), American Association for the Advancement of Science (AAAS) and National Research Council (NRC) reform documents and Culturally Responsive Pedagogy. Science education research has demonstrated that traditional notions of literacy have historically led to exclusion of diversity among successful science students. In part, an assessment driven narrow representation of science in schools has led to a growing opportunity gap for children of colour, particularly in urban settings in the United States. Culturally based best practices in teaching science literacy can aid in the achievement of underrepresented science students as research continues to demonstrate the need for culturally relevant curriculum materials which recognise diverse cultural perspectives and contributions in science.

Current attempts to produce a satisfactory definition of programmed learning are sometimes interpreted as a sign that programming has not lived up to its early promise. Why else, it is argued, should there be this uncertainty about its distinguishing characteristics? Ten years ago, there was none of this concern with what did or did not constitute a programme. It was a self‐in‐structional system, usually presented by some kind of teaching machine, and designed in accordance with one of two apparently opposing models of how human beings learned.

The purpose of this article is to examine whether the design of chief executive officer (CEO) compensation generates incentives to engage in managerial behavior that enhances customer satisfaction and whether these incentives, in turn, lead to higher firm value.

A unique dataset combining customer satisfaction and executive compensation data was used, and the relationship between option sensitivity, customer satisfaction and performance was modeled using simultaneous equations modeling with industry and year fixed effects.

Findings suggest that CEO compensation plays an important role in explaining the variation in customer satisfaction and firm value. Specifically, CEO short-term compensation (salary or bonus) has no affect on customer satisfaction or firm value; the sensitivity of CEO wealth from long-term incentive compensation to stock price changes is positively related and also exhibits an inverted U-shaped relationship with customer satisfaction; the sensitivity of CEO wealth from long-term incentive compensation to stock price changes interacts negatively with CEO longevity and industry concentration but positively with advertising expenses in affecting customer satisfaction; the sensitivity of CEO wealth from long-term incentive compensation to both stock price changes and customer satisfaction positively affect firm value; and the sensitivity of CEO wealth from long-term incentive compensation to stock price changes interacts positively with customer satisfaction to affect firm value.

This study suffers from several limitations. First, the sample is limited to firms with ACSI scores available. Second, this study is limited to only publicly traded firms, which limits our ability to generalize regarding customer satisfaction, option sensitivity and firm value.

This study has several important implications for researchers and managers. The first is that the corporate board appears to view investment in customer satisfaction as similar to an investment in other intangible assets or technology, in that they reward managers with a nonlinear payoff profile. To encourage managers to invest discretionary funds wisely, incentive compensation is important. Second, compensation committees of corporate boards should not allow the option sensitivity to reach extreme levels because, at some point, managers’ incentives appear to shift more toward short-term earnings objectives and away from investment in intangibles, which have a longer-term payoff. Third, if boards are concerned about customer satisfaction and market value, when designing compensation packages, they should shift their focus from the structure of pay to the sensitivity of pay to performance. The exception to this is that for CEOs with very long tenures (or for those close to retirement), high levels of option sensitivity may distort incentives away from a focus on customer satisfaction. Finally, our results indicate that strategies that enhance customer satisfaction provide an incremental benefit in terms of firm value, beyond incentive compensation strategies.

The results indicate that a “stakeholder focus” which includes customers is value adding for shareholders as well. The results also imply that perhaps using a “balanced scorecard” approach to assessing performance in terms of customer satisfaction outcomes, or at least acknowledging the drives of customer satisfaction explicitly, could be an alternative to using highly sensitive incentive-based compensation when such compensation schemes are less desirable.

Prior research has found that the structure of fixed versus incentive-based compensation impacts customer satisfaction. However, this is one of the first papers to investigate the relationship between the sensitivity of CEO compensation and customer satisfaction. Findings have important implications for boards who seek to structure CEO pay so that CEOs have incentives to enact policies that benefit customers and, in turn, firm performance.