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This paper examines how a firm's hierarchical complexity, which is determined by the way it organizes its subsidiaries across the hierarchical levels, can impact its stock price crash risk.

The authors employ a measure of hierarchical complexity that captures the depth and breadth of how subsidiaries are organized within a firm. This measure is calculated using information about firms' subsidiaries extracted from the Bureau van Dijk (BvD) database that allows the authors to construct each firm's hierarchical structure. The data sample includes 2,461 USA firms for the period from 2012 to 2017 (11,006 firm-year observations). Univariate tests and panel regression are used for the main analysis. Two-stage-least-squares (2SLS) instrumental variable regression and various other tests are employed for robustness check.

The results show a positive relationship between hierarchical complexity and stock price crash risk. This relationship is amplified in firms with a greater number of subsidiaries that are hierarchically distanced from the parent company as well as in firms with a greater number of foreign subsidiaries in countries with weaker rule of law.

This paper is the first to investigate the impact hierarchical complexity has on crash risk. The results highlight the role that a firm's organizational structure can have on asset pricing behavior.

This study aims to explore the intention–action relationship of small and medium-sized (SMEs) firms with knowledge capital that declare their intention to internationalize from their inception.

The authors apply the theory of planned behavior and hand-collect a database of Chinese born globals, purely domestic firms and traditional exporting firms. The authors’ hypothesis is that Chinese born globals [or young aspiring globals (YAGs)] will strive to acquire domestic and international patents at an early stage to institutionally protect their knowledge-capital via intellectual property rights as they enter the competitive global marketplace.

The results confirm that knowledge-focused YAGs apply for patents at an earlier stage than purely domestic and traditional exporting firms. However, in the long run, these firms are neither demonstrating increased knowledge capital by being more innovative nor producing more valuable innovations than their counterparts.

This study tests the intention–action relationship in the context of SMEs internationalization. It contributes to the internationalization literature by identifying the internationalization pattern of born globals (YAGs) from emerging markets and providing an explanation for what happens to these firms as they mature.

This article examines the relationship between financial risk management and succession planning in family businesses. Motivated by the Theory of Planned Behaviour, we hypothesize that the use of professional risk management practices is associated with an increased likelihood that businesses adopt professionalized approaches to succession planning. We then investigate if succession planning professionalization is, in turn, positively related to the financial performance of family businesses.

We apply binary probit and ordered dependent variable regressions to unique data generated from a survey sample of Australian family businesses. To check the robustness of our results to potential endogeneity concerns we apply difference tests to propensity score matched sub-samples from our original cohort of respondents.

The results show that, in contrast to verbal or absent succession arrangements, formal written succession plans are both positively associated with the use of financial risk management practices and with superior financial performance in family businesses.

Our arguments and findings suggest that active financial risk management provides a platform for planning succession in family businesses, and that this links with improved short-term financial performance. In light of the critical role that succession plays in ensuring long-term business sustainability, our findings provide important and novel insights into the conditions under which family businesses are most likely to use formal professionalized succession planning.

This paper aims to advance research and practice on value, and more specifically value-in-use, by enhancing knowledge of not only positive but also negative value-in-use facets in a complex relational context, developing a psychometrically sound measure of these facets and evaluating their effect on various outcome measures across different customer segments.

A three-stage study was undertaken in the professional service context of financial planning. Following a qualitative stage identifying positive and negative facets of value-in-use, a measurement scale was developed and tested, and extended analysis was undertaken through two quantitative stages.

The findings provide converging evidence that clients in the study context realise value-in-use, defined in this study at a benefit rather than outcome level, through nine core facets, four positive (expertise, education, motivation, convenience) and five negative (monetary, time and effort, lifestyle, emotional [financial planner], emotional [situation]). While all nine facets impact on at least one of the investigated outcomes, results show that, overall, positive value-in-use facets outweigh the negative ones, with the impact of facets varying depending on client factors (such as customer participation and time to retirement).

The primary contributions of this paper lie in the conceptualisation and measurement of both positive and negative value-in-use facets and their interplay in generating customer outcomes, as well as in the development of a psychometrically sound measure of this construct. Negative value-in-use facets have not been explored to date, despite consumers being sometimes more concerned with risks than gains. Furthermore, the research offers novel insight into the impact of both positive and negative value-in-use on relevant outcomes, while also offering evidence as to the importance of segmentation dimensions in this context.

Given the mixed findings in the literature, this paper aims to re‐examine the relationship that the securitised property market has with both the fixed income and general stock markets in the UK and Australia from July 1998 to June 2006.

The base methodology is the cointegration procedure developed by Inoue in conjunction with the procedure developed by Johansen, Gonzalo and Granger that allows the extraction of permanent and transitory driving factors underlying cointegrated systems. In Australia both listed property trusts (LPTs) and real estate management and development companies (REMDs) are studied, while in the UK the analysis is restricted to REMDs due to the fact that real estate investment trusts were only introduced in 2007, hence providing insufficiently long series.

The Inoue test reveals that ignoring structural breaks in any cointegrating system may lead to erroneous inferences. In both Australia and the UK securitised property is influenced by the general stock market in both the long‐ and short‐term. In Australia the fixed income market does not have a permanent influence on LPTs, despite the fact that LPTs use more long‐term debt than REMDs.

A major contribution of this study clearly points to the relative weightings that portfolio managers may now consider to be appropriate vis‐a´‐vis their holdings of bonds, equities and securitised property (under its different structures as considered here) in their portfolios for both their tactical and strategic asset allocations.

This paper examines whether there was contagion from the Thai securitised real estate market to four other prominent Asia‐Pacific property markets. Based on Forbes and Rigobon's methodology for calculating conditional and unconditional correlations, analysis shows that there was some contagion effect from Thailand to Hong Kong and Singapore during the period between early July and late October 1997. However, if the period includes the stock market crisis of late October 1997, there is little evidence for real estate market contagion, as it would seem that the impact of the equity markets were more relevant thereafter, in affecting other financial markets than the property markets themselves.

This paper introduces readers to the International Journal of Managerial Finance, highlighting its value and scope to the academic and professional community.

This paper provides opinions of the editors on the nature and context of Managerial Finance as a research field.

Managerial Finance incorporates a broad number of subjects and the journal will provide a forum for the timely dissemination of research material in this area.

The International Journal of Managerial Finance will actively promote research in the area of managerial finance and support, through conferences and special issues, the growth and interest in researching the financial decision‐making process.

Research in the area of managerial finance will benefit from a journal committed to enhancing and developing research and professional know‐how for managing financial decisions.

This introduction provides a synopsis of what the International Journal of Managerial Finance is interested in publishing as well as how it intends to support researchers in this area.

The purpose of this paper is to investigate the causal relationship between risk experienced within the real estate industry and that of the overall market in the UK context. The motivation behind this research is to investigate whether the real estate sector transmits risk to the wider marketplace and whether this phenomenon existed, or was exacerbated, during the most recent financial crisis.

The study was undertaken over a 20‐year timeframe, from 1990 to 2010, with special attention being awarded to the global financial crisis (GFC) period from 2008 to 2010. The paper first undertakes graphical modeling of market and industry volatilities in an attempt to identify which industry drives market uncertainty. This is followed by quantitative computation of industry‐specific volatility, which is employed in examining the relationship between these volatilities using block exogeneity/Granger causality tests. Rolling sample analysis and impulse response functions are employed as robustness tests to substantiate the main results.

First, the analysis confirms research that finance industry volatility is a leader in driving market volatility. Second, it expands on these findings to identify the real estate sector as being a key source of this causal relationship. It finds that real estate risk is the one that regularly drives finance industry volatility over the 20‐year sample period. Third, and most importantly, it emerges that the causal link between the real estate sector and market volatility is at its strongest leading up to the most recent financial crisis. More specifically, the real estate investment trusts sub‐sector of real estate industry volatility is the one that has the strongest unidirectional relationship with market‐wide volatility, both directly and indirectly, through driving the finance industry volatility during the GFC.

These findings are significant for market participants, such as pension funds, which need to protect their assets from a stock market crash. Furthermore, anticipating a downturn by observing the trends in real estate sector volatility is highly advantageous in informing their trading strategies now and into the future. Policy makers likewise need a signal of an impending credit crunch and can utilize real estate market statistics to pre‐empt a freezing up of the credit markets.

This paper aims to provide an investigation into whether financial analysts' forecast accuracy differs between the pre‐ and post‐adoption of the international financial reporting standards (IFRS) in the Asia‐Pacific region, namely, for the countries of Australia, Hong Kong and New Zealand. In particular, this study seeks to examine whether the treatment of intangibles capitalized in the post‐IFRS period have positively aided analysts in forecasting future earnings of a firm.

Panel data analysis is applied over a period from 2001 to 2008.

Evidence is found to show intangibles capitalized under the new recognition and measurement rules of IFRS are negatively associated with analysts' earnings forecast errors. The results are robust to several model specifications across each of the countries, suggesting that the adoption of IFRS may indeed provide more value‐relevant information in financial statements for the users of financial reports.

This paper analyzed whether the adoption of IFRS has led to any changes in the accuracy of earnings forecasts. The results will be of help to analysts' earnings forecast activity and those with interest in the subject.