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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.

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.

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.

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 study aims to examine the impact of digital transformation on firms’ value and explore the mediating impact of ESG performance and moderating impact of information interaction.

Data was collected from companies listed on the Shanghai and Shenzhen stock exchange between 2012 and 2020 with 21,488 observational samples, featuring a selection of 3,348 companies. Panel data regression techniques were used to test the mediating role of ESG performance and the moderating role of information interaction.

The study found that digital transformation can improve firms’ ESG performance, which in turn positively affects their value. The firms that engage in more interaction with outsiders benefit more from digital transformation and have a higher value.

This study provides new theoretical insight into improving firms’ value through digital transformation and ESG performance. It is the first to discuss and study the moderating role of information interaction in the relationship between digital transformation and firms’ value.

Section 177 of the Company Act 2013 and Regulation 18 of the Listing Obligations and Disclosure Requirements 2015 allow the audit committee to invite firm executives to participate in the audit committee meetings. In this study, we investigate the negative impact of the presence of invitees in the audit committee on firm value.

The study uses the Propensity Score Matching and Difference-In-Difference methodology (henceforth, PSM-DID) to establish a causal relationship between the presence of invitees and firm value. The final sample consists of 24,232 firm-year observations representing 4,493 distinct firms from 2016 to 2021. We also address the endogeneity and autocorrelation issues using the system-generalized method of moments (henceforth, GMM) as a robustness test.

We find that the presence of invitees in the audit committee decreases the firm value because investors consider this an alarming signal. We further find that the firms, audited by the Big 4, do not experience a decrease in firm value due to higher audit quality, whereas the firms with high promoter ownership experience a decrease due to the presence of agency cost.

We contribute to the literature on firm value and strengthen the literature on the importance of good governance in a developing nation using the signalling theory. This study adds to the understanding of firm value. The findings have implications for management literature and are valuable for policymakers and standard setters in evaluating the impact of disclosures in the capital market. The managerial implications emphasize the need for careful consideration of invitees in audit committees, considering industry, regulatory environment, and firm goals. Firms are advised to assess the benefits and costs, monitor the impact regularly, and strengthen internal controls.

Porter's value chain has been a keystone of strategic analysis. However, because of processes associated with economic globalization: outsourcing, brand marketing and “knowledge economy” phenomena, value drivers have changed dramatically over the last 20 years. The added‐value chain provides an expanded mental model for practitioners and academics to develop and communicate strategies for value creation.

The expanded set of activities in the added‐value chain was developed based on experience using the value chain in real world situations and analyzing leading business and strategy models that are commonly used by firms today.

The added‐value chain incorporates new sources of value creation such as the firm's brand, reputation and “social capital” or goodwill in addition to profit margin. The Added‐Value Chain also adds three primary activities.

Managers performing value‐chain analysis need to take into account newly important business drivers.

Expanding the value chain ensures that no potential strategic activity is forgotten and no opportunity for enhancing value is over‐looked.

With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This study aims to examine the relationship between Environmental, Social, Governance (ESG) Index and firms’ value. Moreover, this study also examines how the controversy score influences the company’s value. The authors employ a dataset of 1.356 companies from 22 countries in Asia which representing the Asian market from 2014 to 2018. This study shows that ESG index score and controversy score are statistically significant, affecting the firms’ value, measured by Tobin’s Q. From the individual tests, the findings of this study indicate that ESG-environmental, ESG-social, and ESG-governance, individually affect the firms’ value. This study suggests that providing disclosure on ESG aspects is essential, not only to increase company value but also to show the company resilience and sustainability. On the other hand, ESG controversy score surprisingly indicates a positive relationship with the company value. The result implies that controversies provide a positive signal to the investor because controversies could provide a signal to the public of companies’ willingness to have transparency and accountability.