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1 – 10 of over 64000Purpose – This study examines whether a firm’s investment efficiency is impacted by having an outside director who experiences investment efficiency at one of his/her other board…
Abstract
Purpose – This study examines whether a firm’s investment efficiency is impacted by having an outside director who experiences investment efficiency at one of his/her other board seats.
Methodology – Archival data is used to examine the research question.
Findings – The results indicate that firms have higher levels of investment efficiency when they have an outside director who also sits on the board of another firm that has high investment efficiency. The result is most prevalent for the subsample of firms with a powerful CEO or with low information quality.
Implications – An implication of this finding is that boards may look to the investment-related experiences that a director has through his/her other board service when deciding to add a new director. Moreover, the results imply that firms will know to look for these informed directors when they have information problems or a powerful CEO.
Originality/Value – Investments require a firm to determine how it will allocate resources. Such important decisions require management to obtain the approval of the board of directors. This paper reveals that the investment-related experience that the directors obtain from their other board service is associated with efficient investment outcomes at the home firm.
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The purpose of this paper is to determine the effects of corporate social responsibility (CSR) on financial performance in firms in the Korean manufacturing industry. In addition…
Abstract
Purpose
The purpose of this paper is to determine the effects of corporate social responsibility (CSR) on financial performance in firms in the Korean manufacturing industry. In addition, the authors examine the moderating role of differentiation and outside investment in the same relationship.
Design/methodology/approach
The mixed methods are used in this study. The authors first take an analytical modeling approach, in which the authors assume that CSR has a positive effect on consumer perceptions, which in turn can improve firm performance. Subsequently, the authors verify the propositions with data from the Korean manufacturing industry. Additionally, the authors explore the moderating roles of various factors in the CSR-financial performance relationship.
Findings
The results of the analysis demonstrate that the positive relationship between CSR and financial performance depends on the levels of product differentiation and outside investment. Specifically, these contingent variables magnify the effects of CSR on financial performance.
Practical implications
This study is particularly useful to supply chain managers. According to the results, CSR may provide benefits for both manufacturers and retailers. As brand reputations can be source for competitive advantage, the analytical model suggests that products made by socially responsible firms are attractive to consumers.
Originality/value
To the authors’ knowledge, there are few studies that examine the multiple moderating effects of differentiation and outside investment on the relationship between CSR and financial performance (return on assets). The authors thus provide a clearer understanding of the effects of CSR activity on firm profitability using these business strategies.
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Wildcat Capital Investors is a small real estate private equity company. Its MBA intern, Jessica Zaski, is asked to develop a financial model for the purchase of Financial…
Abstract
Wildcat Capital Investors is a small real estate private equity company. Its MBA intern, Jessica Zaski, is asked to develop a financial model for the purchase of Financial Commons, a 90,000 square foot office building in suburban Chicago. By simple metrics, the property seems to be a good value, but with credit conditions tight, Jessica must consider whether outside investors would be comfortable with the risks of investing in the midst of a severe commercial real estate downturn. Wildcat is designed to give students exposure to both the quantitative and qualitative aspects of investing in commercial real estate through a private equity structure. Beyond the numbers, the case allows for a discussion of the process of finding suitable real estate investments. The importance of the simultaneous negotiations that Wildcat must have with the seller, the lender, and the outside investor can be emphasized.
By working through the financial models, students will take a given set of assumptions and analyze the cash flows expected to be received by the equity partners of Financial Commons. With a given deal structure, the students can then model the cash flow to both outside equity investors and Wildcat, learning the mechanics of private equity. The model will allow students to investigate how the variations in the underlying assumptions affect returns to the property and to the investors.
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Paul Gallimore, J. Andrew Hansz and Adelaide Gray
The literature on investor decision‐making behaviour in property investment is sparse, loosely integrated and focused principally upon large, institutional investors. It reflects…
Abstract
The literature on investor decision‐making behaviour in property investment is sparse, loosely integrated and focused principally upon large, institutional investors. It reflects rational, normative models that treat investor behaviour as highly structured and formalised. By contrast, behavioural psychology suggests that individuals frequently act sub‐optimally. These ideas have been explored in financial decision making and have been found in the actions of property valuers and property lenders. This paper addresses this neglected area of property investment decision‐making. Semi‐structured interviews were conducted with a sample of property investment directors of smaller property companies. The interviews investigate the decision‐making structures in these companies, the process by which investment strategy is formulated, the investment “screening” process and the determinants of purchase/sell decisions. The findings are discussed and related to the literature on decision making under uncertainty.
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Corporations face new imperatives to reduce occupancy costs for both investment and corporate properties and to eliminate redundancies in their holdings. After mergers or…
Abstract
Corporations face new imperatives to reduce occupancy costs for both investment and corporate properties and to eliminate redundancies in their holdings. After mergers or acquisitions pressure to ‘rationalise’ the corporate portfolio are even more intense. This paper will explore an Eight Step Strategic Plan to evaluate alternative structures for corporate assets which are no longer contributing to return on equity or which may be considered surplus. It will also recommend a Special Purpose Vehicle to move assets off the corporate balance sheet.
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Singapore does not have a welfare State. Instead it has full employment, rapid growth, affordable education and equality of opportunity. It also has the Housing Development Board…
Abstract
Purpose
Singapore does not have a welfare State. Instead it has full employment, rapid growth, affordable education and equality of opportunity. It also has the Housing Development Board and the Central Provident Fund. Public housing and compulsory savings are the subject of this paper. The purpose of the study is to investigate the nature of the symbiosis and the strategy.
Design/methodology/approach
The paper collects evidence on housing and superannuation to establish the precise link between them.
Findings
It is established that a great deal of Singaporeans' savings and wealth is locked up in their flats and houses. It shows that the relationship is risky in view of a rapidly ageing population and an increasing life‐expectancy in the post‐earning years.
Practical implications
Singapore is used as a case study to derive lessons for other countries wishing to combine good housing with adequate retirement provisions.
Originality/value
The paper seeks to show that housing and superannuation are both valuable elements in responsible public policy, but that, when combined, it is possible to have too much of a good thing.
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Reports a recent international study trip (a group of universityprofessors and scholars) giving an opportunity to experience first‐handthe changes involved in unifying the two…
Abstract
Reports a recent international study trip (a group of university professors and scholars) giving an opportunity to experience first‐hand the changes involved in unifying the two Germanies, and extending the realm of capitalism and a free‐market system to Russia and to witness examples of the systematic gap between East and West caused by decades of social, political and economic value systems. The visit included the German Chamber of Commerce, a tour of a former East German machine tool factory, Treuhandanstalt – the government organization responsible for privatizing East German businesses, the Free University and Humboldt University, and numerous talks by educational and governmental leaders. Outlines the findings and adds comments from speakers, further analysis on the unification progress to date, and information on future challenges.
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Yong Cao, Li Zhao and Rensong Chen
The purpose of this paper is to understand different institutional mechanisms for promoting effective innovation diffusion and maximizing spillovers from fruitfulness of…
Abstract
Purpose
The purpose of this paper is to understand different institutional mechanisms for promoting effective innovation diffusion and maximizing spillovers from fruitfulness of university‐industry linkages.
Design/methodology/approach
The approach involved the content analysis of university documents and in‐depth interviews with university personnel. The paper investigated the types of changes which had been instituted by selected universities in regards to the management of invention disclosure and patent licensing procedures, policies for new business startups by faculty and graduates. The paper then studies how university incentive structures have been reshaped to encourage and facilitate engagement with industry.
Findings
The types of changes have been instituted by select universities enhance research commercialization capacity in regards to the management of invention disclosure and patent licensing, policies for new business startups by faculty and graduates, and provision of seed capital, training and incubator facilities, especially the relationship between technology transfer offices and university administration, as well as faculty; how university incentive structure has been reshaped to encourage and facilitate engagement with industry; how gross royalties and/or net royalty income are distributed between university and faculty.
Originality/value
This paper describes the important role of institutional underpinnings for building commercial linkages. It also explores what university policies and institutions shape the nature and fruitfulness of innovation diffusion in China.
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