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Prior studies examining the relation between the shareholdings by institutional investors and firm value have produced mixed results. These studies have assumed that a linear relation exists between corporate value and institutional shareholdings. The purpose of this study is to further investigate the nature of this relationship and by partitioning institutional investors into institutions that have appointed a representative to the board of directors of the firms in which they have a block investment and institutions with a similar holding but without a representative on the board of directors.

The study is based on a sample of 123 firms with available financial and institutional ownership data. A cross‐sectional regression analysis is used to test the relation between corporate value and institutional ownership with and without board representation.

The results of the study suggest that share ownership by investors with board representation is positively related to the value of the firm at lower levels of ownership. However, as the share ownership increases, the impact on the value of the firm becomes negative, giving rise to a non‐linear relation. The extent of shareholding by institutions without board representation, on the other hand, is not related to the value of the firm.

The findings show that institutions with board representation have greater incentives to monitor management, and therefore their presence should have a positive influence on firm value. However, at high levels of ownership, institutional investors with board representation may induce boards of directors to make sub‐optimal decisions.

The study provides a deeper understanding of the relationship between firm value and institutional ownership. That is, the effect of shareholding by institutions with board representation is likely to have a non‐linear relation with firm value.

The purpose of this paper is to assess how investment, financing and dividend policies may affect firm value.

The paper develops a system dynamics‐based model by using “financial management approach,” “capital structure approach,” “resource‐based approach,” and “sustainable growth approach” to identify investment, financing and dividend policies that may help maximize the firm value.

Adequate investment in productive assets is the first step to achieve value maximization objective. Low debt capital structure plays a dominant role to maximize the firm value, contrary to the suggestions generally found in corporate finance literature. Rather insignificant role of firm's short‐term financing policy is observed. A consistently stable dividend policy is also a prerequisite of firm value maximization.

The limitations of this study include: the competitors' actions are not modeled; human resources and other intangible resources are not modeled; instead of market debt, debt is assumed to be bank debt. Future studies may bring in the competitors' actions, intangible assets including human resources, and may also consider to model debt as market debt.

The firms operating in favorable product market conditions should keep their operating and financial risks low which will also maximize their firm value. On the other hand, the firms facing unfavorable product market conditions have to make a trade‐off to minimize operating risk vs financial risk.

Usually the studies test one policy in isolation. However, this may probably be the first study that simultaneously tests various combinations of investment, financing and dividend policies that may help maximize the firm value.

Two stylized facts emerge from cash flow literature. One explores the link between free cash flow (FCF) to firm value (Jensen, 1986) and establishes that FCF increases firm value. The other posits FCF may be value decreasing as firms tend to over invest when there is high level of FCF (Richardson, 2006). Two camps have opposing views yet together they establish that FCF is value relevant. If FCF or cash flow, in general, is value relevant then managers will be motivated to present forecasts to investors. The paper aims to discuss these issues.

The authors hand collect data from each firm’s press releases and earnings announcements and perform an event study around this date to see how firm forecast and disclosure policies affect firm value.

The analysis demonstrates that disclosures and forecasts do have significantly positive relation with tech firms suggesting that firms in the technology industries are more forthcoming with cash flow disclosures and forecasts in their earnings announcements. The authors further show that these disclosures and forecasts negatively affect the firm value of tech firms.

This paper contributes to the literature that there is empirical evidence that cash flow disclosures and forecasts matter to the value of the firm. Further, it posits that unlike understanding the existing views as opposing each other, may be the authors will be better served if they view both of them as right depending on the optimality of forecasts. The future efforts will be directed toward exploring the optimality of cash flow disclosures.

While an operation's unlevered value is objective, the value of the debt tax shield is subjective since it depends on the capital structure policy of the firm that owns the operation. The purpose of this paper is to explore the implications of this subjective nature of debt tax shield value for corporate investment decisions.

The study develops a simple theoretical model.

The paper shows that even a low probability of selling a project in the future to a firm with a different tax shield value can significantly affect a project's weighted average cost of capital (WACC) and total value.

Managers should be aware of this issue when making corporate investment decisions.

This is the first study to address the implication of the subjective nature of debt tax shield value.

Outlines the three theories which link multinationality to share value (internalization, imperfect capital markets and managerial objectives), reviews the relevant research and hypothesizes that a multinational’s degree of internalization is positively related to its accounting value (q‐value). Tests this using 1994‐1998 data on French listed companies and presents the results which support the hypothesis, the existence of a size effect (smaller firms have higher q‐values) and leverage effect (higher debts are linked with lower q‐values), but sow no significance in the proportion of intangible assets; i.e. they support the imperfect capital markets theory but not the internalization theory. Considers consistency with other research and opportunities for further research.

This chapter reflects on how global value chain resilience can be achieved in the aftermath of recent crises. Drawing on the view that globalization is not linear, and that contextualization is an important part of the international business discipline, the author argues that global value chain resilience needs to also be viewed from the perspective of emerging market supplier firms. Building resilience from international production restructure to create more flexibility may enhance multinational lead firms’ resilience in the aftermath of recent crises. But they may not be viable options for emerging market supplier firms that are location- and activity-bound. Building resilience from supplier firms’ perspective may have more to do with increasing operational efficiency in their value chain. Contextualizing resilience from the perspective of emerging market firms should contribute to ongoing discussions and debate on future global value chain resilience.

This study examines the value implications of oil price uncertainty for investors in diversified firms using a sample of 922 USA firms from 2001 to 2019.

Our study employs a panel dataset to examine the value implications of oil price uncertainty for diversified firm investors. We consider several alternative specifications to account for unobserved factors and measurement errors that could potentially bias our results. In particular, we use alternative measures of the excess value of diversified firms and oil price uncertainty, additional control variables, fixed-effects models, the Oster test, impact threshold for confounding variable (ITCV) analysis, two-stage least square instrumental variable (2SLS-IV) analysis and the system-GMM model.

We find that the excess value of diversified firms, relative to a benchmark portfolio of single-segment firms, increases with high oil price uncertainty. The impact of oil price uncertainty is asymmetric, as corporate diversification is value-increasing for diversified firm investors only when the volatility is due to positive oil price changes and amidst supply-driven oil price shocks. The excess value increases irrespective of diversified firms’ financial constraints and oil usage. Diversified firms become conservative in their internal capital allocations with high oil price uncertainty. Such conservatism is value-increasing for diversified firm investors, as it supports higher performance in response to oil price uncertainty.

Our study has three important implications: first, they are relevant to investors in understanding the portfolio value implications of oil price uncertainty. Second, they are helpful for firm managers while comprehending the value-relevant implications of internal capital allocations. Finally, our findings are policy relevant in the context of the future of diversified firms in developed markets.

Prior studies mostly tested the association between carbon emissions and firm value in certain contexts. This study aims to advance the existing literature by concentrating on three indicators of greening in corporations namely resource use, emissions and eco-innovation, and examining their value relevance in the stock market at the global level. Furthermore, we deepen the investigation by exploring the moderating role of eco-innovation and the CSR committee between greening in corporations and market value.

The data for the study were retrieved from the Thomson Reuters Eikon database for the years between 2002 and 2019 and contain 17,961 firm-year observations which are analyzed through fixed-effects regression.

The results reveal that while resource usage is viewed as value-relevant by the market, the emissions and eco-innovation are not. However, despite eco-innovation per se not being value-relevant, its interaction with resource usage and emissions is value-relevant. Furthermore, CSR committees undertake a very critical role in translating greening practices into market value.

While the results for emissions support the cost-concerned school, the findings for resource usage confirm the value creation school. Furthermore, the interaction effect of eco-innovation and CSR committee confirms the resource-based theory and stakeholder theory, respectively.

Investors regard eco-innovation-induced pro-environmental behaviors as value-relevant. These results propose firms replace eco-innovation at the focal point in developing environmental strategies and connecting other greening efforts to it. Moreover, CSR committees are critical to corporations in translating greening practices into firm value by developing and implementing disclosure and communication strategies.

The study’s originality stems from investigating the synergetic effect that eco-innovation and CSR committees generate in translating greening practices to greater market value at a global scale.

This paper proposes a value configuration approach for managing information technology in enterprises.

This conceptual research paper is concerned with industrial management and data systems from the perspective of value configurations. The value configuration approach consists of value shop, vale chain and value network.

The contingent approach to information technology management can be applied to value configurations.

Traditionally, data systems in industrial management have been supporting value chains. Recently, alternative value configurations have emerged. Specifically, the value shop and the value network are alternative value configurations. This paper makes an important contribution to insights into information systems depending on value configurations. The final section of this paper suggests that industrial management might expand from value chain management to value shop management, as firms become electronic businesses.

This research aims to examine the effects of corporate digital transformation on firm value, with a particular focus on the mediating roles played by cost leadership and differentiation strategies.

This study employs word frequency analysis to create corporate digital transformation indicators and determine how corporate digital transformation impacts firm value. The data used in the analysis comes from 2,056 listed manufacturing enterprises in China between 2010 and 2019.

This study demonstrates that digital transformation has a favorable impact on firm value, and that cost leadership strategy and differentiation strategy significantly mediate the relationship between both of them.

This study utilized word frequency analysis to assess the state of corporate digital transformation. It lacked a more thorough description of internal production processes, operational efficiency, and the pace of digital transformation.

The results of this study can not only promote the digital transformation and firm value, but also provide a theoretical basis for enterprises to choose a reasonable competitive strategy in the digital transformation.

This study contributes significantly to the field of firm value research by including digital transformation as a fundamental component. Furthermore, it investigates how cost leadership strategy and differentiation strategy play mediating roles, providing a new perspective and explanatory mechanism for understanding the influence of digital transformation on firm value.