Search results

With the accelerated technological advancement, innovation has become a critical factor, which affects the core competitiveness of a company. However, studies about the relationship between internal stock option mechanisms and innovation productivity remain limited. Therefore, this paper aims to examine the impact of stock options and their elements design on innovation output from an internal mechanism perspective.

Using a sample of 302 stock option incentive plans announced and implemented between 2006 and 2016, this study uses the propensity score matching and difference-in-difference model to find out whether the implementation of stock options improves the innovation outputs of enterprises.

Based on the statistical analysis, it is concluded that: stock options can stimulate corporate innovation; a stock option may drive innovation outputs through two ways, performance-based incentives and risk-taking incentives, with the latter one playing a more dominant role and the risk-taking incentives of stock options, could be optimised when the non-executives granting proportion is larger, the granting range is limited, the incentive period is longer, the exercisable proportion is increasing, the price-to-strike ratio is lower and relatively loose performance assessment criteria are applied.

The conclusion reached in the study may provide valuable information to listed firms in designing and implementing the stock option plans.

The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial performance on the influence of GCG on corporate value.

This study was an explanatory study. The unit of analysis was the companies listed in LQ45 in Indonesian Stock Exchange and the sources of data were ICMD, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies listed in LQ45 in Indonesian Stock Exchange between 2010 and 2016.

The higher GCG, independent commissioners proportion, institutional managerial and public ownerships resulted in higher corporate value. MBE and PER stock return is a moderating variable in the influence of GCG on corporate value. Financial performance is moderating variable in the influence of GCG on corporate value.

Based on the previous studies, it may be concluded that there is a gap between the influence of GCG on corporate value and the influence of stock return on financial performance, and moderating variable is needed to evaluate the influence of GCG on company performance, more particularly stock return and financial performance. This discrepancy creates opportunity for conducting an in-depth study on those variables. Its novelty is correlation between stock return and financial performance as moderation. Previous studies used these as mediating variables. This study is going to generate different finding as it is conducted in different setting (country where this study is conducted), type of industry, research period and using different method of analysis.

This study attempts to conduct a comparative analysis between dynamic and static asset allocation to achieve the long-term target return on asset liability management (ALM). This study conducts asset allocation using the ex ante expected rate of return through the outlook of future economic indicators because past economic indicators or realized rate of returns which are used as input data for expected rate of returns in the “building block” method, most adopted by domestic pension funds, does not fully reflect the future economic situation. Vector autoregression is used to estimate and forecast long-term interest rates. Furthermore, it is applied to gross domestic product and consumer price index estimation because it is widely used in financial time series data. Based on asset allocation simulations, this study derived the following insights: first, economic indicator filtering and upper-lower bound computation is needed to reduce the expected return volatility. Second, to reach the ALM goal, more stocks should be allocated than low-yielding assets. Finally, dynamic asset allocation which has been mirroring economic changes actively has a higher annual yield and risk-adjusted return than static asset allocation.

This paper investigates why bancassurance coexists with alternative insurance distribution channels in the long run, considering the bank channel is known to involve lower costs than traditional distribution systems. It tests the product-quality hypothesis that maintains that the higher costs of some distribution systems represent expenses associated with producing higher product quality, greater service intensity and/or skills to solve principal-agent conflicts.

An analysis is conducted on firms operating in the life segment of the Spanish insurance industry over an eight-year sample period. First, the author estimates cost efficiency and profit inefficiency using data envelopment analysis. Cost efficiency enables one to evaluate if the use of the banking channel increases cost efficiency. Profit inefficiency is addressed to identify the existence/absence of product-quality differences. The performance implications of using bancassurance are analyzed by applying Heckman's two-stage random-effects regression model.

The results support the product-quality arguments. The use of banking channel was found to increase cost efficiency. However, the distribution channel/s utilized did not affect profit inefficiency.

A regulatory environment that supports the development of bancassurance enables this and alternative distribution channels to be sorted into market niches, where each system enjoys comparative advantages in order to minimize insurer costs and maximize insurer revenues. There is no single optimal insurance distribution system.

This is the first study to investigate why bancassurance coexists with alternative insurance distribution channels.

The authors analyze the equilibrium effects of non-tradable assets on optimal policy portfolios. They study how the existence of non-tradable assets impacts optimal asset allocation decisions of investors who own such assets and of investors who do not have access to non-tradable assets.

In this theoretical analysis, the authors analyze a model with tradable and non-tradable asset classes whose cash flows are jointly normally distributed. There are two types of investors, with and without access to non-tradable assets. All investors have constant absolute risk aversion preferences. The authors derive closed form solutions for optimal investor demand and equilibrium asset prices. They calibrated the model using US data for listed equity, bonds and private equity. Further, the authors illustrate the sensitivities of quantities and prices with respect to the main parameters.

The study finds that the existence of non-tradable assets has a large impact on optimal asset allocation. Investors with (without) access to non-tradable assets tilt their portfolios of tradable assets away from (toward) assets to which non-tradable assets exhibit positive betas.

The model provides important insights not only for investors holding non-tradable assets such as private equity but also for investors who do not have access to non-tradable assets. Investors who ignore the effect of non-tradable assets when reverse-engineering risk premia from asset covariances and market capitalizations might severely underestimate the equity risk premium.

The authors provide the first comprehensive analysis of the equilibrium effects of non-tradability of some assets on optimal policy portfolios. Thus, this paper goes beyond analyzing the effects of market imperfections on individual portfolio choices.

This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The samples of this study were 120 manufacturing companies listed in Indonesian Stock Exchange in 2010 – 2013. The hypothesis testing used multiple regression analysis. The result of this study show that audit committee has a positive effect on tax avoidance in partial but the executive compensation, executive character, company size, institutional ownership, boards of commisioners' proportion, audit committee and audit quality have simultaneous effect to define tax avoidance.

This paper analyzes the productivity effects of structural capital such as research and development (R&D) and organizational capital (OC). Innovation work also produces innovation-labor-biased technical change (IBTC) and knowledge spillovers. Analyses use full register-based dataset of Finnish firms for the period 1994–2014 from Statistics Finland.

Intangibles are derived from the labor costs of innovation-type occupations using linked employer-employee data. The approach is consistent with National Accounting and offered as one method in OECD (2010) and applied in statistical offices, e.g. in measuring software. The EU 7th framework Innodrive project 2008–2011 extended this method to cover R&D and OC.

Methodology is implementable at firm-level and offers way to link personnel reporting to intangible assets. The OC-IBTC as well as total resources allocated to OC are relevant for productivity growth. The R&D stock is relatively higher but R&D-IBTC is smaller than OC-IBTC. Public policy should, besides technology policy, account for OC and OC-IBTC and related knowledge spillovers in the industries that are most important among the SMEs (low market-share-firms).

The data are based on remote access to Statistics Finland; the data cannot be disseminated.

Intangible assets are measured from innovation work that encompasses not only R&D work. IBTC is proxied in production function estimation by relative compensations on IA work. The non-competing nature of IAs is captured by IA knowledge spillovers. The sample sizes are much higher than in earlier studies on horizontal knowledge spillovers (such as for SMEs,) thus bringing additional generality to the results.

Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.

The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.

The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.

The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.

This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.

This study aims to propose a theoretical framework and provide empirical evidence on the most successful marketing strategies for obtaining behavioural loyalty in small and medium enterprises (SMEs).

The data are based on 475 telephone surveys conducted among Spanish hairdressers. The authors have used ordinary least squares to estimate the empirical model.

Pricing, services and communication (Web page and in-store communication) are the main drivers of customer loyalty. SMEs have to be cautious with the use of social networks to avoid damaging loyalty. In addition, those positioned at high-price segments should pay more attention to communication on the Web, and all companies should find a balance between in-store communication and the sale of products for use at home.

Further research should try to replicate the findings with data from consumers and firms.

Service managers need to understand the optimal strategy to succeed in the market. The key insights of this study could also apply to other sectors, such as health, personal care and wellness services.

Previous research focussed mainly on large companies, while the role of loyalty in the success of SMEs has been poorly studied, with focus only on the antecedents and the measurement of loyalty. This study contributes to the previous research by analysing the effect of the strategy (price, range of services, communication, size and location) in the achievement of loyalty in SMEs.

Este trabajo propone un marco teórico y aporta evidencia empírica sobre las estrategias de marketing más exitosas en la consecución de lealtad comportamental en PYMEs.

Se ha realizado una encuesta telefónica a 475 peluqueros españoles. El modelo utilizado para la estimación es el de mínimos cuadros ordinarios.

Precio, servicios, y comunicación (página web y comunicación en la tienda) son los principales generadores de lealtad. Las PYMEs tienen que ser cautelosas con el uso de las redes sociales para evitar dañar la lealtad. Además, aquellas posicionados en altos precios deben prestar más atención a la comunicación en la web y todas deben encontrar un equilibrio entre la comunicación en el tienda y la venta de productos para su uso en casa.

Investigaciones futuras podrían replicar este estudio usando datos de consumidores y de empresa.

Los gerentes necesitan entender la estrategia óptima para tener éxito en el mercado. Las ideas claves de este trabajo podrían aplicarse a otros servicios personalizados de salud y bienestar.

La investigación previa se centra principalmente en grandes empresas mientras que el papel de la lealtad en el éxito de las pymes ha sido escasamente investigado y se ha centrado en los antecedentes y la medición de la lealtad. Este estudio realiza una contribución al analizar el efecto de la estrategia (precio, surtido de servicios, comunicación, tamaño y localización) en la consecución de la lealtad en las pymes.

Lealtad; pequeñas y medianas empresas; Pymes; peluqueros; estrategia de marketing; salon

Artículo de investigación

Drawing upon a political economy approach, this article aims to analyze the transformations in the labor market within the context of contemporary capitalism, focusing on the phenomenon of financialization.

Financialization is defined as a distinct wealth pattern marked by a growing proportion of financial assets in capitalist wealth. Within financial markets, corporate performance is continuously assessed, in a process that disciplines management to achieve expected financial results, with consequences throughout corporate management.

We find that this phenomenon has implications for labor management, resulting in the intensification of labor processes and the adoption of insecure forms of employment, leading to the fractalization of work. These two mechanisms, added to the indebtedness of workers, constitute three elements for disciplining labor in contemporary capitalism.

We argue that these forms of discipline constitute a subsumption of labor to finance, resulting in an increase in labor exploitation. This formulation of the relationship between financialization and changes in the realm of labor also contributes to understanding the unrealizing potential of social free time in contemporary capitalism.