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The purpose of this paper is to investigate the effect of financial constraints on innovation in developing countries. It also examines how the effect of financial constraints varies by sector and with main firm characteristics such as size and age.

The study utilizes matched firm-level data from two sources; the World Bank Enterprise Survey and the Innovation Follow-Up Survey. From 11 African countries, 4,720 firms have been included in the sample. A recursive bivariate probit model is used.

The result shows that financial constraints adversely affect a firm’s decision to engage in innovative activities and the likelihood to have product innovation and process innovation. The results point out that the extent of the adverse effect of financial constraints on innovation differs across the sectors, firm size and age groups. A firm’s innovation is also explained by firm size, R&D, cooperation/alliance, the human capital of the firm, staff training, public financial support and export. At last, the probability of encountering financial constraints is explained by firms’ ex ante financing structure, amount of collateral, accounting and auditing practices and group membership.

Managers should strengthen the internal and external financing capacity to reduce financing constraints and their adverse effect on innovation.

A pending policy task for African leaders is to design and evaluate reforms that reduce the adverse effects of financial constraints on innovation.

This study contributes to the existing literature on financing of innovation by examining how and to what extent financial constraints affect innovation across various sectors, size and age groups.

The purpose of this study is to investigate the effect of investment efficiency on cost of equity capital.

Prior research indicated that any governance mechanism which reduces the agency conflict reduces the cost of equity capital. This study provides empirical evidence that investment efficiency represents such governance mechanism which reduces agency conflict and hence cost of equity. The authors use price earning growth ratio (Easton, 2004) and Ohlson and Juettner-Nauroth (2005) model for the measurement of cost of equity while investment efficiency measure of Biddle et al. (2009) have been employed to examine the association. We also use Chen et al. (2013) measure of investment efficiency for robustness.

The results show that investment efficiency is negatively associated with cost of equity. It was also found that there is a strong relationship of investment efficiency with cost of equity for non-state-owned enterprises (NSOEs), while no significant relationship is found for state-owned enterprises. Furthermore, overinvestment is significantly associated with cost of equity capital. However, no significant relationship was found between underinvestment and cost of equity.

The results provide empirical support to the argument that investment efficiency acts as a mechanism which represents lower agency conflict. Moreover, the findings provide evidence that government act as “deep pocket” while NSOEs are punished by investors for inefficient resource allocation. This study also proposes that there is a positive relationship between overinvestment and cost of equity.

The purpose of this paper is to examine the interaction between competition and corporate payout policy and more specifically to answer the question that whether competition mitigates the principal–principal agency conflicts and influences firms to distribute dividends to shareholders in Chinese corporations.

This research models measures of competition with scaled measures of dividends and analyzes a sample of 16,730 firm-year observations from Chinese-listed manufacturing firms for the period spanning 2003 to 2016. Further, this research uses the Tobit model (a censored regression) to empirically test the proposed hypotheses.

This research finds that intense competition not only mitigates agency problems and forces firms to disgorge cash but also increases a firm’s likelihood to pay dividends and weakens the negative association between agency conflicts and dividends.

The results show an important policy implication for the industry. As the principal–principal agency conflict restrains the dividends, the regulatory authorities could encourage a competitive environment and a more diverse ownership structure to induce a higher dividend rate and protect the minority shareholders. In addition, this study also has implications for other emerging markets characterized by concentrated ownership and principal–principal agency problems.

This study adds to the literature related to the disciplinary role of competition and identifies competition as a significant determinant of corporate payout policy. Furthermore, this research extends earlier research on corporate payout decisions that besides firm-level corporate governance and country-level legal system, industry-level competition also influences corporate payout decisions, significantly.

The purpose of this paper is to build a framework that intends to help organizations define, implement and control their corporate social responsibility (CSR) strategies. Based on the stakeholder perspective, this paper proposes a sustainability management control system (SMCS) specifically made for the definition and implementation of CSR strategy, by linking the firm’s material topics to its key stakeholders, thus, allowing our model to be dynamic to different business environments.

In this paper, the authors constructed their model based on a review of selective relevant studies about CSR and SMCSs. This paper also went through different practical concepts from leading sustainability guidelines and stakeholder’s engagement manuals, discussing the stakeholder identification and prioritization, to re-center the debate to the strategic importance of the stakeholder perspective in defining and implementing CSR strategy, as well as its importance in how organizations can define proxies to assess the performance of their CSR initiatives.

Adopting the stakeholder theory as a key lens to re-frame, organize and guide the debate over the performance consequences of CSR has the potential to overcome the simplistic and (eventual) misleading conceptions of CSR strategy implementation, thus fostering the move toward more effective and efficient CSR strategies, by developing management control system (MCS) typical for CSR issues.

The full process of the model outlined in this paper aims to provide a comprehensive and forward-looking tool for CSR and sustainability strategy implementation and assessment. Our model could help companies to gain an overview and an understanding of the relative importance of the material topics of their business activities that should be addressed and how they are related to the key stakeholders, thus, eventually leading to more equitable and sustainable social development by giving those who have a right to be heard the opportunity to be considered in the sustainability decision-making and strategy processes, in the aim of making valuable contributions to social, economic and environmental spheres.

The paper answers the call for research for developing novel theoretical foundations to design MCSs for CSR implementation. Therefore, the paper suggests an innovative model of SMCS for CSR strategy definition, development and implementation and helping organizations to define and develop key sustainability indicators specific to their business environment. The model also presents an opportunity to rethink and advance the understanding of how managers can prioritize competing stakeholders’ claims, which are constrained by the company’s business activities impacts.

The purpose of this paper is to investigate how firms in developing countries finance innovation. Notably, the study seeks to investigate whether innovative firms exhibit financing patterns different from those of non-innovative ones. It also examines the effect of financing sources on firm’s probability to innovate.

The study utilizes firm-level data from the World Bank Enterprise Survey. From 28 African countries, 11,173 firms have been included in the sample. A statistical t-test is used for two independent samples and logistic regression models.

The results show that innovative firms, specifically innovative small- and medium-size firms exhibit financing patterns different from non-innovative peers. Further analysis indicates that there is no statistically significant difference between the financing patterns of innovative and non-innovative large firms. In Africa, innovation is mostly financed using internal sources and bank finance. Equity finance and bank finance have shown a higher effect followed by internal finance, finance from non-bank financial institutions and trade credit finance on firms’ probability to innovate.

The management of innovative firms should reduce dependency on short-term and retained earning financing and increase the use of long-term instruments improve innovation performance.

A pending policy task for African leaders is to design and evaluate reforms to create a strong financial sector that willing to support the innovation process.

This study contributes to the existent literature on finance of innovation by examining how firms finance innovation activities in developing countries. This study provides evidence on how innovative firms exhibit financing patterns different from non-innovative ones from developing countries.

The purpose of this paper is to investigate the relevance of credit supply for corporate capital structure decisions of manufacturing firms in Pakistan.

The implicit assumption in much of the work on capital structure is that for a firm, the availability of incremental capital depends solely on its characteristics. However, the capital market frictions suggest that suppliers of credit may also affect firms’ ability to borrow. The authors investigated this intuition by employing dynamic panel data estimators using 8,984 firm-year observations for the period 1990-2010.

The results show that short-term debt is a major source of financing in these firms. Further, credit supply plays a significant role in these firms’ capital structure decisions and hence, they increase their short-term debt (main financing source) with an increase in credit supply in the market while payoff their long-term debt with internal funds.

The findings of this study can enhance the practitioners’ and analysts’ understanding of capital structure of manufacturing firms in a bank dominated financial system, like Pakistan. Also, it can provide them more insight in understanding the alternative choices of financing and the reasons why firms prefer one over the other.

To the authors’ best knowledge, this is the first study in Pakistan that considers both supply-side as well as demand-side factors of capital structure and applies dynamic panel data techniques.

This paper aims to propose a system for generating actionable knowledge from Big Data and use this system to construct a comprehensive knowledge base (KB), called GrandBase.

In particular, this study extracts new predicates from four types of data sources, namely, Web texts, Document Object Model (DOM) trees, existing KBs and query stream to augment the ontology of the existing KB (i.e. Freebase). In addition, a graph-based approach to conduct better truth discovery for multi-valued predicates is also proposed.

Empirical studies demonstrate the effectiveness of the approaches presented in this study and the potential of GrandBase. The future research directions regarding GrandBase construction and extension has also been discussed.

To revolutionize our modern society by using the wisdom of Big Data, considerable KBs have been constructed to feed the massive knowledge-driven applications with Resource Description Framework triples. The important challenges for KB construction include extracting information from large-scale, possibly conflicting and different-structured data sources (i.e. the knowledge extraction problem) and reconciling the conflicts that reside in the sources (i.e. the truth discovery problem). Tremendous research efforts have been contributed on both problems. However, the existing KBs are far from being comprehensive and accurate: first, existing knowledge extraction systems retrieve data from limited types of Web sources; second, existing truth discovery approaches commonly assume each predicate has only one true value. In this paper, the focus is on the problem of generating actionable knowledge from Big Data. A system is proposed, which consists of two phases, namely, knowledge extraction and truth discovery, to construct a broader KB, called GrandBase.

Conventional electric heaters mostly use U-shaped electric heating tubes and the hollow tube electric heaters are new type ones that rely on the heat transfer tubes as heating elements. However, in the original design, the fluid flows through the annular gaps between the shell wall and the supporting plates, the chambers between supporting plates are generally stagnant zones. The purpose of study is to overcome these deficiencies.

A modified approach is proposed in which the heating tubes are surrounded by holes on the supporting plates, thus the stagnant flow zone can be eliminated and the heating surfaces of both inside and outside the tube can be fully used. Numerical simulations were carried out on four schemes of hollow tube electric heaters, i.e. plate blocked, countercurrent, parallel and split. The results show that the two schemes of parallel and split can reduce the temperature difference between the two sides of the fixed tube plate, and thus reduce thermal stress and prolong the service life.

The split scheme of electric heater has the highest comprehensive index, moderate heat transfer coefficient and minimum pressure drop on the shell side. Its average heat transfer coefficient and comprehensive index are, respectively, 15.7% and 52.9% higher and its average pressure drop and tube wall temperature are, respectively, 57.6% and 19 K lower than those of the original plate blocked scheme, thus it can be recommended as the best scheme of the hollow tube electric heaters.

Based on the original design of hollow tube electric heater with plate blocked scheme, three plate perforated schemes were proposed and investigated. The thermal and flow features of the four schemes were compared in terms of heat transfer coefficient, pressure drop and comprehensive index h_o·Δp_o^−1/3. The split scheme can reduce the temperature difference between two sides of the fixed tube plate with reduced thermal stress. It has moderate tube wall temperature and heat transfer coefficient, the smallest shell side pressure drop and the highest comprehensive index h_o·Δp_o^−1/3, and it can be recommended as the optimal scheme.

The main purpose of this paper is to enhance the control performance of the robotic arm by the controller of fuzzy neural network (FNN).

The robot system has characters of high order, time delay, time variation and serious nonlinearity. The classical PID controller cannot achieve satisfactory performance in control of such a complex system. This paper combined the fuzzy control with neural networks and established the FNN controller and applied it in control of the robot.

The experimental results showed that the FNN controller had excellent performances in position control of the rehabilitation robotic arm such as fast response, small overshoot and small vibration.

This work is focused on the static FNN algorithm by updating the second and fifth layers of the membership functions. The performance can be improved further if the third layer (reasoning layer) can be updated online.

Based on a hierarchical structure of the FNN controller, this paper designed the FNN controller and applied it in control of the rehabilitation robot driven by pneumatic muscles.