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Open Access
Article
Publication date: 23 October 2018

Diego Asensio-López, Laura Cabeza-García and Nuria González-Álvarez

The purpose of this paper is to present a review of the literature on two lines of research, corporate governance and innovation, explaining how different internal corporate…

23090

Abstract

Purpose

The purpose of this paper is to present a review of the literature on two lines of research, corporate governance and innovation, explaining how different internal corporate governance mechanisms may be determinants of business innovation.

Design/methodology/approach

It explores the theoretical background and the empirical evidence regarding the influence of both ownership structure and the board of directors on company innovation. Then, conclusions are drawn and possible future research lines are presented.

Findings

No consensus was observed regarding the relation between corporate governance and innovation, with both positive and negative arguments being found, and with empirical evidence not always pointing in the same direction. Thus, new studies trying to clarify this relationship are needed.

Originality/value

Over recent years, interest has grown in the influence of governance mechanisms on innovation decisions taken by the management. Innovation efforts and results depend on factors that are influenced by corporate governance, such as ownership structure or the functioning of the board of directors. Thus, the paper shows an updated state of the art in this field proposing future lines for empirical research.

Details

European Journal of Management and Business Economics, vol. 28 no. 3
Type: Research Article
ISSN: 2444-8494

Keywords

Open Access
Article
Publication date: 3 March 2023

Megan Chapman Cook and Steven J. Karau

The global spread of coronavirus brought the economy to a screeching halt as entrepreneurs faced constraints in their ability to transact business. Mandatory shutdowns of…

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Abstract

Purpose

The global spread of coronavirus brought the economy to a screeching halt as entrepreneurs faced constraints in their ability to transact business. Mandatory shutdowns of businesses, travel restrictions and other measures were taken. This study aimed to explore adaptations of small businesses for surviving in such a turbulent environment.

Design/methodology/approach

The authors conducted exploratory research with detailed interviews with 15 small business owners from various industries in rural communities in the Midwestern United States.

Findings

The study revealed a variety of strategic responses and highlighted creativity and flexibility in coping with uncertainty. Business owners adapted their strategies regarding processes, products and target customers to remain flexible and reallocate resources to meet ever-changing demands. Some created and strengthened relationships with other business owners, clients, customers and the community. Several showed optimism for the long-term, whereas others viewed survival as contingent on a speedy return to normalcy.

Research limitations/implications

A modest sample of fifteen small business owners were interviewed in similar communities in the Midwest using snowball sampling. With a larger sample size and more variance in age and gender, interview responses may be more diverse and potentially more generalizable. However, the current research may provide some unique insights for younger, up-and-coming entrepreneurs in smaller cities and communities regarding some effective small business and community response to uncertainty and change.

Originality/value

The coronavirus pandemic provided a unique environment to gain insight into entrepreneurial adaptation to unpredictable crisis situations and highlights the importance of assessing and adjusting business strategies to constantly changing demands. The authors also present an emergent theoretical process model of small business adaptive responses to uncertainty that summarizes the major themes derived from the interview responses.

Details

Innovation & Management Review, vol. 20 no. 2
Type: Research Article
ISSN: 2515-8961

Keywords

Open Access
Article
Publication date: 9 July 2018

Jabir Al-Sulaiti, A.A. Ousama and Helmi Hamammi

This paper aims to examine the compliance of disclosure with the financial accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions’…

9413

Abstract

Purpose

This paper aims to examine the compliance of disclosure with the financial accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions’ (AAOIFI) related to Islamic financing products by Islamic banks in Bahrain and Qatar.

Design/methodology/approach

The study measures compliance using disclosure indexes. The disclosure indexes include the three financial accounting standards of Murabaha, Mudaraba and Musharaka. The data are collected from the annual reports of 24 Islamic banks in Bahrain and Qatar over a period of 2012-2015.

Findings

The paper found that Islamic banks in Bahrain and Qatar comply with AAOIFI financial accounting standards related to Murabaha, Mudaraba and Musharaka. However, there was a level of non-compliance in both countries. In addition, it found that the extent of compliance had increased over the 2012-2015 period. Also, the Murabaha standard had the highest mean of compliance. Moreover, the results showed that the Islamic banks in Qatar tend to have more compliance of overall Murabaha and Mudaraba disclosures compared to the Islamic banks in Bahrain.

Research limitations/implications

The findings are preliminary and highlight that the issue is of high interest to Islamic banks and AAOIFI. Hence, it requires a detailed follow-up to form a complete picture that would assist AAOIFI and regulators gear their policies toward better quality disclosure by Islamic financial institutions. Even though the findings are encouraging, future research is recommended to enforce compliance with the AAOIFI financial accounting standards.

Originality/value

This is a pioneer empirical study that focuses on the level and trend of compliance with AAOIFI financial accounting standards related to the Islamic financing products of Murabaha, Mudaraba and Musharaka standards, especially in Qatar. Additionally, it is the first study comparing between the only two Gulf Cooperation Council (GCC) countries, i.e. Bahrain and Qatar, that mandatory apply the AAOIFI standards.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Open Access
Article
Publication date: 30 November 2015

Jun Ho Hwang

This paper shows the momentum strategies that selected stocks based on their returns from a past 1 week generate long lasting significant abnormal returns. I observe the negative…

29

Abstract

This paper shows the momentum strategies that selected stocks based on their returns from a past 1 week generate long lasting significant abnormal returns. I observe the negative momentum profit from 1 week momentum portfolio and it disappears when the holding period is longer than 22 week.

In addition, I empirically shows that the weekly momentum strategies are able to generate negative profits also after the financial crisis. it is opposite result with literature, reported positive momentum after the financial crisis, I realize this result due to the characteristic of short term weekly momentum and market adjust returns. The price limit is one of the big features of Korean stock market. I consider the set of sample period by change of price limit. I find the positive momentum profits only in the period of narrow price limit range. For the check on the relation between liquidity and profit of momentum strategy, I employ the illiquid measure of Amihud (2002). I find that the strong and long lasting negative momentum profit from illiquid stock portfolio. This result implied that liquidity enhances the profit of momentum.

Details

Journal of Derivatives and Quantitative Studies, vol. 23 no. 4
Type: Research Article
ISSN: 2713-6647

Keywords

Open Access
Article
Publication date: 29 June 2021

Myounghwa Sim and Hee-Eun Kim

The authors investigate the effect of a short-term stock return reversal on the term structure of momentum profits in the Korean stock market following Goyal and Wahal (2015)…

1375

Abstract

The authors investigate the effect of a short-term stock return reversal on the term structure of momentum profits in the Korean stock market following Goyal and Wahal (2015). Their empirical findings show that the term structure of momentum is more pronounced when a return reversal lasts up to two months but is substantially weakened when past performance over the last two months is not taken into account for portfolio formation. Their evidence suggests that the term structure of momentum profitability arises primarily from a carryover of the return reversal from the previous two months.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. 29 no. 3
Type: Research Article
ISSN: 1229-988X

Keywords

Open Access
Article
Publication date: 8 March 2021

Aamir Nazir, Muhammad Azam and Muhammed Usman Khalid

The purpose of this study is to investigate the relationship between the listed firms' debt level and performance on the Pakistan Stock Exchange (PSX) during a five-year period.

15315

Abstract

Purpose

The purpose of this study is to investigate the relationship between the listed firms' debt level and performance on the Pakistan Stock Exchange (PSX) during a five-year period.

Design/methodology/approach

This study uses pooled ordinary least squares regression and fixed- and random-effects models to analyse a cross-sectional sample of 30 Pakistani companies operating in the automobile, cement and sugar sectors during 2013–2017 (N = 150).

Findings

The results indicate that both short- and long-term debt have negative and significant impacts on firm performance in profitability. This suggests that agency issues may lead to a high-debt policy, resulting in lower performance. However, both sales growth and firm size have positive effects on the profitability of non-financial sector companies.

Research limitations/implications

This study suggests that when debt financing significantly and negatively influences firm profitability, company owners and managers should focus on finding a satisfactory debt level. However, this study is limited to the automobile, cement and sugar sectors of Pakistan. Future studies could address other sectors, such as textiles, fertilizers and pharmaceuticals.

Originality/value

This study focusses on enhancing the existing empirical knowledge of debt financing's influence on the PSX's major sectors' profitability.

Details

Asian Journal of Accounting Research, vol. 6 no. 3
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 29 September 2022

Kumiko Nemoto

Building on the institutional theory perspective on corporate governance change and based on interviews with investor relations (IR) managers in large Japanese companies, this…

2748

Abstract

Purpose

Building on the institutional theory perspective on corporate governance change and based on interviews with investor relations (IR) managers in large Japanese companies, this study aims to examine Japanese IR managers’ perceptions of the influence of foreign shareholders on Japan’s corporate governance reform and stakeholder-based system. The paper examines tensions, conflicts and collaborations among different stakeholders involved in corporate governance changes in Japan, especially in the areas of firm ownership, employment relations and boards of directors. The paper explains why convergence does not happen in some large Japanese companies by investigating Japanese managers’ responses to and perceptions of foreign shareholders in multiple corporate contexts.

Design/methodology/approach

The author conducted in-depth interviews with ten IR managers at large, listed Japanese companies in Kyoto and Tokyo and two managers at foreign investment banks in Tokyo, between 2018 and 2021.

Findings

This paper explores five themes that emerged from my interviews: Chief executive officers’ (CEOs’) mixed perceptions of foreign investors, the effectiveness of CEO compensation and outside directors, managers’ reluctance to accept stock price-driven business strategies, foreign investors’ engagement vs investments in index funds and gender patterns, including the effectiveness of token female outside directors. The Japanese companies the author looked at incorporated foreign shareholders as consultants and adopted a few major shareholder-based customs, such as CEOs communicating with investors, having outside directors, increasing CEO compensation and slimming down unprofitable parts of the business via restructuring and downsizing. Simultaneously, they resisted a few major shareholder-based practices. Foreign shareholders’ pressure revealed tensions and contradictions between the Japanese stakeholder system and shareholder primacy-based customs.

Originality/value

This paper is one of the few qualitative studies that explores Japanese IR managers’ responses to and perceptions of foreign shareholders in corporate governance reform, with a particular focus on ownership, employment relations and board members. This paper provides examples of tension, conflict and cooperation between Japanese managers and foreign investors, as seen through the eyes of Japanese IR managers. Examining changes in Japan’s stakeholder-based system of corporate governance reform enables us to better understand the processes by which, with vigorous pressure from government and foreign shareholders, a non-western country like Japan may adopt shareholder-based customs and how such a change may also lead to institutional changes.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 10 December 2021

Conglai Fan, Xinlei Cai and Jian Lin

Starting from the theoretical mechanism of profit sharing between finance and the real economy, this paper reviews and analyzes the profitability of China's banking industry and…

Abstract

Purpose

Starting from the theoretical mechanism of profit sharing between finance and the real economy, this paper reviews and analyzes the profitability of China's banking industry and makes a horizontal comparison with the banking industry of the United States, Japan, and Germany.

Design/methodology/approach

Based on the panel threshold model, it is found that there is a dual-threshold asymmetric effect between banking profit and the growth of real economy. When the net profit rate of the banking industry is lower than 0.491%, the increase in banking profitability will inhibit the growth of real economy due to profit grabbing; when the rate falls within the range of 0.491–0.801%, the increase in bank profitability is conducive to the growth of real economy.

Findings

Finance and the real economy are in the most comfortable symbiotic state; when the rate is higher than 0.801%, the continued increase in bank profitability will weaken the promotion effect of finance on the real economy, but bank profitability and the growth of real economy are still in a symbiotic state of positive promotion.

Originality/value

The promotion effect of China's bank profitability to the growth of real economy has shifted from the suboptimal state to the optimal range as a whole, which is attributed to the strong deleveraging and strict supervision of the Chinese government after 2016, the timely and decisive “stepping on the brakes”, pulling the financial sector back from the “illusion” caused by “self-circulated” profits and preventing it from harming the real economy.

Details

China Political Economy, vol. 4 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 9 December 2019

Ahmed Samir Mahdi

The so-called “oil price war” of 2014-2016 took place between several main global oil producers; OPEC (led by Saudi Arabia), Russia and the newcomer; American tight oil or…

8166

Abstract

Purpose

The so-called “oil price war” of 2014-2016 took place between several main global oil producers; OPEC (led by Saudi Arabia), Russia and the newcomer; American tight oil or fracking oil. These oil producers were competing against each other over market shares in the global oil market, by maintaining their high oil production rates, even if this led to a decline in oil prices and a reduction in revenues from oil sales. As energy politics need more coverage in International Political Economy (IPE) theory, this paper aims to argue that Saudi Arabia's policies during the oil price war of 2014-2016 reflected a policy of neomercantilism, which is the IPE equivalent of the school of realism in International Relations (IR).

Design/methodology/approach

This paper tests for neomercantilism by testing three of its main definitional components. The first definitional component is that the state, as the political authority, intervenes in the economic decisions. The second component is the primacy of the state interests over business corporate profits, or the primacy of political and security considerations over short-term economic and corporate profit considerations. The third is the zero-sum or relative gains nature of dealings between states. Afterwards, this paper tests for neomercantilism in the Saudi policy by examining how each of these definitional components is reflected in the Saudi policy during the oil price war.

Findings

As energy politics need more coverage in International Political Economy (IPE) theory, this paper argues that Saudi Arabia's policies during the oil price war of 2014-2016 reflected a policy of neomercantilism, which is the IPE equivalent of the school of realism in International Relations (IR).

Originality/value

As energy politics need more coverage in International Political Economy (IPE) theory, this paper argues that Saudi Arabia's policies during the oil price war of 2014-2016 reflected a policy of neomercantilism, which is the IPE equivalent of the school of realism in International Relations (IR).

Details

Review of Economics and Political Science, vol. 5 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 3 November 2022

Tetsuya Kirihata

This study aims to analyze the contribution of business angels (BAs), defined as wealthy individuals who provide risk capital to entrepreneurial firms without family connections…

Abstract

Purpose

This study aims to analyze the contribution of business angels (BAs), defined as wealthy individuals who provide risk capital to entrepreneurial firms without family connections, in Estonia, an emerging country in Eastern Europe.

Design/methodology/approach

This study compared the data of the financial and non-financial performance of BA-backed firms with that of “twin” non-BA-backed firms, extracted from all Estonian unlisted firms using propensity score matching.

Findings

The results of the comparative analysis showed that BAs were patient enough to allow their investees to spend for future growth rather than squeezing profit from increased sales. This is not patience without options for a BA in a situation in which the investee's sales are deteriorating, but rather deliberate patience in the presence of options for a BA where the investee's sales growth is increasing, contrary to conventional investor behavioral principles. It also showed that BAs' post-investment involvement did not make a direct contribution to their investees' sales, although BAs contributed to the sales increase through BA funding itself.

Originality/value

This study has two unique research contributions. First, it shows that the patience of BAs was not a by-product but was intentional, and adds to the debate on whether BAs are patient investors. Second, there are only a few studies on the contribution of BAs to their investees in emerging countries; this study aims to help fill this research gap using the case of Estonia.

Details

Journal of Capital Markets Studies, vol. 6 no. 3
Type: Research Article
ISSN: 2514-4774

Keywords

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