Search results

Venture capitalists typically use discount rates in the range of 30-70 percent. During the startup stage of venture-capital financing, discount rates between 50 and 70 percent are common. The discount rate decreases from the first through fourth stage: from 60 to 30 percent. These rates of return are high compared to historical returns on common stocks or small stocks (12.1 and 17.8 percent, respectively). Such high discount rates cannot also be explained in the context of any existing asset pricing theory; that is, any reasonable risk-adjusted discount rates are not consistent with discount rates in the order of 30-60 percent. The paper provides a rational economic explanation why venture capitalists (VC) use such high discount rates. The paper aims to discuss these issues.

Let the discount rate of a venture project be 15 percent; this discount rate depends on the systematic risk of the cash flows from the project given that the project is successful. Using the procedure, a VC who estimates the probability of eventual success of the project between 60 and 40 percent will impose a discount rate between 42 and 74 percent. These discount rates are quite similar to the discount rates charged by VC in their startup and first stages.

The high rates of return charged by VC reflect the fact that not all their projects succeed in that they have no net cash-inflows. Adjusting for the probability of success of the project provides estimates of discount rates comparable.

The paper argues that reported rates of return of common stock are relevant for projects that have succeeded in that they have net cash-inflows.

This research uses accounting information to supplement abnormal returns evidence in order to gauge the performance of greenmailed firms. Our results support the management entrenchment hypothesis; target firm earnings are poor relative to industry in the years surrounding the greenmail event, and earnings do not significantly improve as would be expected under the shareholders' interest hypothesis. This result holds after adjusting for greenmail premia net of tax effects. Evidence on investment spending suggests firms that pay greenmail differ substantially from their industries, but in a negative direction. In contrast, the industry‐adjusted earnings of non‐greenmail repurchasing firms are significantly greater than the earnings of greenmailed firms. Together, these results are consistent with the contention that greenmailed firms are not managed in shareholders' interests; they underperform their industry, the poor operating results are not attributable to higher investment outlays associated with a long‐term strategic focus, and performance does not improve. This is consistent with observed negative abnormal returns being attributable to both a lost takeover premium and a lost opportunity for improved corporate performance.

As there is inclusive evidence on relationship between board characteristics and firm performance in the Thai context, and mixed findings of this relationship are usually reported from previous studies, this study tries to clarify a reason for the mixed finding by determining the impact of board structures on different quantile levels of firm performance. Building on extant literature and using a developed econometric technique, the Quantile Analysis, on a sample of 446 listed firms in Thailand for a 15-year period ranging from 2000 to 2014, empirical evidence is provided which is consistent with prior studies that some characteristics of the board as the core mechanisms of corporate governance, i.e., board independence, board size, board meeting frequency, and dual role leadership on board, have significant influence on performance of Thai firms. In particular, when considering different quantile levels of firm performance, board structures are found to have different effects across quantile of performance distribution. Board independence and dual role leadership on board are found to have a significant influence on only moderate-performing firms, while board size and board meeting frequency are revealed as having significant impact on only firms with high-performance which need more effectiveness of the board in overseeing and supervising decision-making of the executives. Thus, these findings indicate that considering different quantile levels of firm performance for the board structures and performance relationship should be a reason of previous mixed findings. Moreover, the findings should be important information in encouraging better understanding an optimal governance system in Thailand for related stakeholders such as policymakers, corporate firms, and investors.

This study aims to investigate the effects of corporate board and audit committee characteristics and ownership structures on market-based financial performance of listed firms in Thailand.

It applies system GMM (generalized method of moments) as the baseline estimator approach, and ordinary least squares and fixed effects for robustness checks on a sample of 452 firms listed on the Thai Stock Exchange for the period 2000-2016.

Relying mainly on the system GMM estimator, the empirical results indicate some emerging trends in the Thai economy. Contrary to expectations for an emerging market and prior research findings, ownership structures, particularly ownership concentration and family ownership, appear to have no significant influence on market-based firm performance, while managerial ownership exerts a positive effect on performance. Moreover, as expected, board structure variables such as board independence; size; meeting and dual role; and audit committee meeting show significant explanatory power on market-based firm performance in Thai firms.

These findings are important for policymakers in constructing an appropriate set of governance mechanisms in an emerging market context, and for corporate entities and investors in shaping their understanding of corporate governance in the Thai institutional context.

Unlike previous literature on the Thai market, this study is the first to use the more advanced econometric method known as system GMM estimator for addressing causality/endogeneity issues in governance–performance relationships. The findings indicate new trends in the explanatory power of ownership structure variables on market-based firm performance in Thai-listed firms.

This paper examines the influence of investment opportunities on firm performance and evaluates corporate governance practices in the United Arab Emirates (UAE) to determine whether corporate governance quality moderates that influence.

A fixed-effects regression was employed to examine the influence of investment opportunities on firm performance and the role of corporate governance quality as a moderator for all listed firms on the Abu Dhabi Stock Exchange (ADX) and the Dubai Financial Market (DFM). We examined 501 firm-year observations for the period when the corporate governance code in the UAE was coming into force, from 2008 to 2012.

The regression results indicate that investment opportunities have a negative influence on firm performance. The corporate governance index used here shows that the level of corporate governance practiced in the UAE is weak. We also find that strong corporate governance ameliorates the negative influence of investment opportunities, which supports our hypotheses. The sub-indices of corporate governance that matter the most for moderating investment opportunities are board functioning and ethics.

The results of this paper reflect the need to examine corporate governance in the context of the external environment represented by investment opportunities in our study. The findings could raise awareness of the importance of strong corporate governance practices, not only to directly improve firm performance but also through its influence on external variables. Legislators, regulators and other interested parties could use these results to examine practices in the UAE following the implementation of the corporate governance code.

This study contributes to the literature by evaluating the role that corporate governance quality and its components could play in firm performance and indirectly moderating other external factors (such as investment opportunities).

Spiritual tourism is becoming a significant growth area of the Indian travel market, with more Indians opting to go on pilgrimage to popular religious cities. There are many spiritual destinations where some of this life's essences can be sought to enjoy harmony and peace. The study aims to prioritize motivators driving the intentions of the tourists to visit the spiritual destination.

The current study applied the analytical hierarchical process, a multi-criteria decision-making technique, on the sample of visitors from all the six spiritual destinations to rank the motivational factors that drive the intentions of the tourist to visit a spiritual destination.

The study's results postulated that spiritual fulfillment motives and destination atmosphere are the top prioritized motivations, while destination attributes and secular motives emerged as the least prioritized.

The research study provides valuable insights to the spiritual tourism industry stakeholders to target the tourists' highly prioritized motivations to augment the visits to a particular spiritual destination.

Previous research has explored the motivations and modeled their relationships with tourists' satisfaction and intentions. But, the present study has applied a multi-criteria decision-making technique to add value to the existing knowledge base.

Massive open online courses (MOOCs) are among the most recent e-learning initiatives to gain widespread acceptance among universities. However, despite MOOCs' “much-documented” benefits, many questions are being raised late regarding the long-term sustainability of the open online teaching e-learning model. With high dropout rates in MOOCs courses, recent research has focused on the challenges limiting MOOCs’ growth. But most of the research is directed toward students’ perspectives, leaving the instructors’ perspective. One of the most important aspects of instructors’ perspective is the motivation for MOOCs' development and delivery.

The present study collected the data from 25 MOOC developers of Indian origin. To prioritize or rank the motivational factor behind developing a MOOC, a fuzzy-analytical hierarchical process (F-AHP) technique was applied to the data set. The primary motivational factors considered for the study were professional development, altruism, personal development, institutional development, intrigue, monetary benefits and peer influence.

The results showed that professional development and personal development are two prime motives that drive MOOCs development. Monetary benefits and peer influence were the least important factors among all the factors considered for the study.

Previous studies have identified and modeled the motivational factors that contribute toward developing MOOCs. However, there was little knowledge about the hierarchy among the motivating factors. The present study fills this gap by establishing the ranking of motivational factors responsible for MOOCs development.

The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-04-2021-0205.

The emergence of virtual reality (VR) has the potential to revolutionize various industries, including tourism, as it delivers a simulated environment that closely emulates real-life experiences. Therefore, this study aims to explore how the factors, i.e. enjoyment, emotional involvement, flow state, perceived privacy risk, physical risk and cost, influence the customers’ intention to use VR for tourism.

This study integrates the technology acceptance model, hedonic consumption theory with other factors, including cognitive response, authenticity, perceived privacy risk, perceived physical risk, perceived cost and perceived presence. Partial least squares structural equation modelling approach was used to test the proposed research model.

The finding based on the sample of 252 respondents revealed that authenticity is the most influential factor impacting behavior intention followed by perceived cost, attitude, cognitive response and enjoyment. Also, the study supported the moderating impact of personal innovativeness between attitude and behavioral intention to use VR for tourism.

The findings of the study offers practical implications for service providers, site managers, destination marketers, tourist organizations and policymaker to develop more effective strategies for offering VR services for tourism.

This study enriches the current understanding of VR adoption in context of tourism with empirical evidences.

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity.

On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses.

The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident.

Given the handicap of small firms vis-à-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities.

The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.