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This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys.

This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models.

The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations.

The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.

This paper aims to demonstrate that Facebook likes affect outcomes in nonprofit settings. Specifically, Facebook likes influence affinity to nonprofits, which, in turn, affects fundraising outcomes.

The authors report three studies that establish that relationship. To examine social contagion, Study 1 – an auction field study – relies on selling artwork created by underprivileged youth. To isolate signaling, Study 2 manipulates the number of total Facebook likes on a page. To isolate commitment escalation, Study 3 manipulates whether a participant clicks a Facebook like.

The results show that Facebook likes increase willingness to contribute in nonprofit settings and that the process goes through affinity, as well as through Facebook impressions and bidding intensity. The total number of Facebook likes has a direct signaling effect and an indirect social contagion effect.

The effectiveness of the proposed mechanisms is limited to nonprofit settings and only applies to short-term effects.

Facebook likes serve as both a quality signal and a commitment mechanism. The magnitude of commitment escalation is larger, and the relationship is moderated by familiarity with the organization. Managers should target Facebook likes at those less familiar with the organization and should prioritize getting a potential donor to leave a like as a step leading to donation, in essence mapping a donor journey from prospective to active, where Facebook likes play an essential role in the journey. In a charity auction setting, the donor journey involves an additional step of bidder intensity.

The approach the authors study is shown effective in nonprofit settings but does not appear to extend to corporate social responsibility more broadly.

To the best of the authors’ knowledge, this study is the first investigation to map Facebook likes to a seller’s journey through signals and commitment, as well as the only investigation to map Facebook likes to charity auctions and show the effectiveness of this in the field.

Education system stimulates the development of human capital and provides informative signaling allowing to differentiate productivity of individuals. If education system is efficient then higher levels of education usually associated with greater returns on labor market. To evaluate the efficiency of Russian education system we aim to estimate the effect of vocational education and different levels of higher education on wages.

We use data on 8,764 individuals in the years 2019–2021. Our statistical approach addresses two critical issues: nonrandom selection into employment and the endogeneity of education choice. To tackle these problems, we employed Heckman’s method and its extension that is a structural model which addresses the issue of self-selection into different levels of education.

The results of the analysis suggest that there is a significant heterogeneity in the returns to different levels of education. First, higher education, in general, offers substantial wage premiums when compared to vocational education. Specifically, individuals with specialist’s and bachelor’s degrees enjoy higher wage premiums of approximately 23.59–24.04% and 16.43–16.49%, respectively, compared to those with vocational education. Furthermore, we observe a significant dis-parity in returns among the various levels of higher education. Master’s degree provides a substantial wage premium in comparison to both bachelor’s (19.79–20.96%) and specialist’s (12.64–13.41%) degrees. Moreover, specialist degree offers a 7.16–7.55% higher wage premium than bachelor’s degree.

We identify a hierarchical pattern in the returns associated with different levels of higher education in Russia, specifically “bachelor-specialist-master.” These findings indicate that each level of education in Russia serves as a distinct signal in the labor market, facilitating employers' ability to differentiate between workers. From a policy perspective, our results suggest the potential benefits of offering opportunities to transition from specialist’s to master’s degrees on a tuition-free basis. Such a policy may enhance access to advanced education and potentially lead to higher returns for individuals in the labor market.

There are many studies on returns to higher education in Russia. However, just few of them estimate the returns to different levels of higher education. Also, these studies usually do not address the issue of the endogeneity arising because of self-selection into different levels of education. Our structural econometric model allows addressing for this issue and provides consistent estimates of returns to different levels of education under the assumption that individuals with higher propensity to education obtain higher levels of education.

Based on dual information asymmetry, the two-stage segmented compensation mechanism for technological innovation of civilian enterprises’ participation in military (CEPIM) has been discussed.

On the basis of the traditional principal-agent problems, the incentive compatibility condition is introduced as well as the hybrid incentive compensation model is established, to solve optimal solution of the compensation parameters under the dynamic contract condition and the validity is verified by numerical simulation.

The results show that: (1) The two-stage segmented compensation mechanism has the functions of “self-selection” and “stimulus to the strong”, (2) It promotes the civilian enterprises to obtain more innovation benefit compensation through the second stage, (3) There is an inverted U-shaped relationship between government compensation effectiveness and the innovation ability of compensation objects and (4) The “compensable threshold” and “optimal compensation threshold” should be set, respectively, to assess the applicability and priority of compensation.

In this paper, through numerical simulation, the optimal solution for two-stage segmented compensation, segmented compensation coefficient, expected returns for all parties and excess expected returns have been verified under various information asymmetry. The results show that the mechanism of two-stage segmented compensation can improve the expected returns for both civilian enterprises and the government. However, under dual information asymmetry, for innovation ability of the intended compensation candidates, a “compensation threshold” should be set to determine whether the compensation should be carried out, furthermore an “optimal compensation threshold” should be set to determine the compensation priority.

The purpose of this study is to explore the effect of managerial ability on voluntary environmental, social and governance (ESG) disclosure and assurance. By focusing on managerial ability, this study provides a more nuanced understanding of the factors influencing a firm’s ESG disclosure and assurance practices. This study contributes to a relatively unexplored area of study regarding the role of top management in promoting ESG reporting.

This study draws on a sample of publicly listed firms from 2014 to 2019 in Taiwan and applies the data envelopment analysis method to measure managerial ability. Heckman’s (1979) two-step model is used to estimate the primary models to prevent the results from being affected by possible bias because of self-selection.

The empirical evidence suggests that managerial ability is positively related to voluntary ESG disclosure and intention to seek third-party assurance of the report. Overall, managerial ability determines whether a firm will use voluntary ESG disclosure and assurance as a corporate strategy to respond effectively to stakeholders’ needs. The findings are robust after using alternative measures of managerial ability.

Investors and other stakeholders keen on seeking ESG information offered by companies could find the findings of this study valuable. By better comprehending how managerial competence impacts voluntary ESG disclosure and assurance, stakeholders may be better equipped to hold companies responsible for their ESG disclosure practices and make informed investment decisions.

In the ESG decision-making process, managers with better abilities have a higher tendency to use voluntary disclosure and assurance as a part of the company’s sustainable policy.

Unlike previous studies of the determinant factors of ESG disclosure, which mainly explore factors at the national or corporate level, this study focuses on factors at the individual level (i.e. managerial ability) to fill the gap in the literature. This study also presents empirical evidence that corroborates the idea that managerial competence can influence not only ESG disclosure but also the voluntary assurance of ESG information.

This study assessed the heterogeneous impact of the Anchor Borrower Program (ABP) on the welfare distribution of rice farming households in Nigeria.

Self-selection bias and treatment endogeneity were accounted for by employing the Instrumental Variable Quantile Regression (IVQR) model. The estimates obtained from the IVQR model were further compared with those from the conventional quantile regression, and quantile regression using Propensity Score Matching. This was to highlight the extent to which endogeneity bias has been purged from the treatment, in order to establish a consistent causal link between participation in the ABP and the welfare of a cross-section of rice farming households.

ABP farmers had significantly higher rice yields across all quantiles of the yield distribution under treatment exogeneity assumption, and in only two quantiles upon controlling for observable confounders. However, this yield gain did not translate to higher Per capita Consumption Expenditure (PCE). The estimates of the more robust IVQR model provided further evidence that the rice yield and PCE of ABP farmers are not statistically different from that of non-ABP farmers across all quantiles of the welfare distribution.

The negligible impact of ABP was relatively higher for lower-yielding households. Thus, implying that, although the ABP is a pro-poor development intervention, the program has not been sufficiently implemented to significantly improve the welfare of the dominant resource-poor farming households in Nigeria.

This study assessed the impact of ABP beyond the conventional potential mean outcome framework by accounting for heterogeneity in treatment effect.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0083

The purpose of this paper is to investigate the role of cross-listing in overcoming liability of origin (LOO) facing emerging economy corporations (EECs).

This paper takes Chinese firms' cross-listing in Hong Kong and the firms' establishment of international joint ventures (IJVs) with foreign partners as the research setting. This is an empirical study using Heckman's self-selection model as the primary econometric technique and two-stage least square (2SLS) regressions as the supplementary estimation procedure.

Cross-listing in developed economies can serve as a signal for EECs to overcome the LOO. In addition, the regional institutional voids of emerging economies (EEs) and state ownership are prominent boundary conditions shaping this effect.

Only Chinese firms and the firms' cross-listing in Hong Kong are considered for the empirical context as a result of data availability.

This paper provides a practical solution for EECs whose internationalisation tends to be hindered by the LOO.

This study is of high importance in that it centres on a distinctive and challenging problem faced with EECs—the LOO. Besides, it ascribes this liability to a matter of information asymmetries and explores how cross-listing can serve as a signal to cope with this challenge.

This study aims to examine the relationship of Indonesia’s Sharia Stock Index (ISSI) firms on environmental, social and governance (ESG) disclosure. This study is interesting because ISSI firms are supposed to comply with Islamic values as this has been reflected in good corporate governance activities, demonstrating responsibility to others and participating in preserving nature/environmental activities.

The authors use sample firms that are listed on the Indonesia Shariah-compliant Stock Index (ISSI) from 2011 to 2020, which also published sustainability reports.

The study found that sharia firms are positively related to ESG disclosure. The authors also found that ESG disclosure of sharia firms is more pronounced in the reporting section of general, economic, environmental and social. Other findings suggest differences in the segments reported in the COVID and pre-COVID periods. This result is also robust by conducting a self-selection bias test with Heckman’s two-stage regression and Coarsened Exact Matching regression.

For policymakers, these results indicate that different characteristics of firms can affect ESG disclosure, and economic conditions will determine which sectors are disclosed the most.

This study provides empirical evidence that Indonesian Shariah-compliant stock index firms carried out their mission to disclose more information about their environmental and social responsibilities and governance issues.

Although the association between sustainability assurance (SA) quality and firm value has been examined in previous studies, the moderating relationship is novel in this study and highlights the effect of corporate environmental sustainability performance (CESP) on the relationship between SA quality and firm value. This study aims to examine whether such an effect is strengthened or weakened by eco-efficiency, as measured by ISO 14001 certification, aggregate CESP score and each individual dimension of CESP (emission reduction [ER], resource reduction [RR] and product innovation [PI]).

The sample includes 40 companies in Euronext Paris with the largest market capitalisations (the Cotation Assistée en Continu 40 [CAC 40] index) from 2010 to 2020. The authors apply the feasible generalised least squares regression technique to estimate all the regression models. Because observed associations may be biased by reverse causation or self-selection, the authors use the instrumental variable approach and Heckman two-stage estimation.

The results show that SA quality had a positive and significant effect on firm value. Second, the authors demonstrate that CESP, as assessed by ISO 14001 certification, has a stronger interaction with assurance quality and acting as a moderator variable. Using the ASSET4 scores, an alternative proxy for CESP, the authors find inconsistent evidence regarding the impact of CESP attributes. The CESP and ER scores are homogeneous and have a positive effect on firm value. However, the PI and RR CESP attributes are not homogenous and do not have the same interactive effect on firm value. The results are robust to the use of an instrumental variable approach and the Heckman two-stage estimation procedure.

Policy implications: Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SA as an investment choice criterion. The insights into and enhanced understanding of the incentives for obtaining high SA quality can help policymakers develop effective policies and initiatives for SA. Considering the possible improvements in sustainability performance when obtaining a high level of sustainability verification, governments need to consider mandating SA.

Firms receive clear confirmation of the importance of investing in SA quality. Financial markets do not evaluate SA dichotomously but reward companies with higher SA quality because of the greater credibility it provides. Firms should allocate a significant percentage of their annual budgets and other relevant resources to environmental training and development programmes to improve and maintain environmental performance. If they care about environmental issues, they must announce this by issuing sustainability reports and seeking assurance of the information disclosed. High-quality assurance not only has a significant effect on investors’ investment reliability judgements but also the perceived credibility of environmental performance fully moderates the effect of assurance on these judgements.

This study has social implications; the authors find that the French market rewards firms that provide a high-quality assurance to guarantee the integrity of their sustainability reports. Therefore, by incorporating environmental sustainability into their financial goals, a better assurance ultimately will urge firms to move from green washing to strategic goals, which is beneficial for society. Further, firms that focus on sustainability as part of their business strategy may attract employees who engage in green behaviours at work and create a friendlier and productive environment because it gives meaning to the work they do and keeps them engaged to the level needed to perform their jobs capably.

This study contributes to the literature by re-examining the relationship between SA quality and firm value. It also provides new evidence on the moderating effect of CESP on the SA quality–firm value nexus. Specifically, it explores the joint effect of credibility and eco-efficiency on market confidence in sustainability information.

This study aims to explore the effects of long-term orientation (LTO) and strategy formation mode on corporate social responsibility. While many researchers have investigated how large businesses address corporate social responsibility (CSR), there is little empirical evidence on how small- and medium-sized businesses implement CSR or what individual drivers shape this process.

The paper surveyed 282 small and medium-sized managers from the United Kingdom. The respondents were recruited using platform Prolific Academic.

The findings reveal that LTO is a prerequisite for developing CSR and shapes strategy formation mode. The findings also suggested that deliberate strategies are positively related to CSR. The results are consistent across different components of LTO (futurity, continuity and perseverance) and CSR types (internal and external).

The results show that all aspects of LTO are relevant for CSR in SMEs. Besides LTO, deliberate strategy formation model is an important factor contributing to CSR. The paper presents as first an empirical contribution to the strategy literature by examining positive relationship between LTO and deliberate strategy formation mode.