101
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Khatatbeh IN, Moosa IA. Financialisation and income inequality: An investigation of the financial Kuznets curve hypothesis among developed and developing countries. Heliyon 2023; 9:e14947. [PMID: 37151674 PMCID: PMC10161372 DOI: 10.1016/j.heliyon.2023.e14947] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 09/09/2022] [Revised: 03/11/2023] [Accepted: 03/22/2023] [Indexed: 03/30/2023] Open
Abstract
The Financial Kuznets Curve (FKC) is a variant of the renowned Kuznets Curve and a counterpart to the Environmental Kuznets Curve. In this paper, we examine the financial Kuznets curve hypothesis-based on annual data for 20 developed and developing countries-using the Phillips and Hansen (1990) fully modified ordinary least square (FMOLS) and the unobserved components model (UCM). The results correspond to the current divergence in the empirical literature and show support for the inverted U-shaped curve as well as the U-shaped curve, in more than half of the sample countries. The estimated turning points differ significantly across countries and depending on the measure of financialisation used. Overall, the findings of this research suggest that there is no uniform effect of financialisation on income inequality. The results vary according to the level of economic development, financial structure, and potentially other factors that have not been considered in the empirical analysis provided in this paper.
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102
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Gajda J, Grzesiek A, Wyłomańska A. Ornstein - Uhlenbeck Process Driven By $$\alpha$$-stable Process and Its Gamma Subordination. Methodol Comput Appl Probab 2023; 25:9. [DOI: 10.1007/s11009-023-09999-w] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/04/2023]
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103
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Ko E, Jeong K, Oh H, Park Y, Choi J, Lee E. A deep learning-based framework for predicting pork preference. Curr Res Food Sci 2023; 6:100495. [PMID: 37026021 PMCID: PMC10070177 DOI: 10.1016/j.crfs.2023.100495] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 02/07/2023] [Revised: 03/20/2023] [Accepted: 03/22/2023] [Indexed: 03/29/2023] Open
Abstract
Meat consumption per capita in South Korea has steadily increased over the last several years and is predicted to continue increasing. Up to 69.5% of Koreans eat pork at least once a week. Considering pork-related products produced and imported in Korea, Korean consumers have a high preference for high-fat parts, such as pork belly. Managing the high-fat portions of domestically produced and imported meat according to consumer needs has become a competitive factor. Therefore, this study presents a deep learning-based framework for predicting the flavor and appearance preference scores of the customers based on the characteristic information of pork using ultrasound equipment. The characteristic information is collected using ultrasound equipment (AutoFom III). Subsequently, according to the measured information, consumers' preferences for flavor and appearance were directly investigated for a long period and predicted using a deep learning methodology. For the first time, we have applied a deep neural network-based ensemble technique to predict consumer preference scores according to the measured pork carcasses. To demonstrate the efficiency of the proposed framework, an empirical evaluation was conducted using a survey and data on pork belly preference. Experimental results indicate a strong relationship between the predicted preference scores and characteristics of pork belly.
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Affiliation(s)
- Eunyoung Ko
- Dodram Pig Farmers Cooperative Company, Icheon, 17405, Republic of Korea
| | - Kyungchang Jeong
- Department of Computer Science, Chungbuk National University, Cheongju, 28644, Republic of Korea
| | - Hongseok Oh
- Department of Computer Science, Chungbuk National University, Cheongju, 28644, Republic of Korea
| | - Yunhwan Park
- Department of Animal Science, Chungbuk National University, Cheongju, 28644, Republic of Korea
| | - Jungseok Choi
- Department of Animal Science, Chungbuk National University, Cheongju, 28644, Republic of Korea
- Corresponding author.
| | - Euijong Lee
- Department of Computer Science, Chungbuk National University, Cheongju, 28644, Republic of Korea
- Corresponding author.
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104
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Ahmad K, Irshad Younas Z, Manzoor W, Safdar N. Greenhouse gas emissions and corporate social responsibility in USA: A comprehensive study using dynamic panel model. Heliyon 2023; 9:e13979. [PMID: 36895412 PMCID: PMC9988493 DOI: 10.1016/j.heliyon.2023.e13979] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 10/19/2021] [Revised: 02/13/2023] [Accepted: 02/16/2023] [Indexed: 02/24/2023] Open
Abstract
This study addresses the issues of Greenhouse Gas Emission and corporate social responsibility of firms in USA. This paper estimates various econometrics estimations varying from multivariate regression, static panel modes and dynamic panel models. Finally, to control the endogeneity problem dynamic panel model is preferred to capture the relationship of greenhouse gas emissions and corporate social responsibility. The result of the study shows a positive and significant relationship between greenhouse gas emission and corporate social responsibility. Further, it is also observed that firms with better corporate social responsibility performance can reduce greenhouse gas emissions. This is the first research that attempts to explore two-way relationships between greenhouse gas emission and corporate social responsibility by using various estimation techniques varying from multivariate, OLS to dynamic panel GMM. From a policy point of view, corporate social responsibility plays an important role in managing and reducing greenhouse gas emissions, ultimately creating a secure environment for all parties while improving business performance. Policymakers should create policies to control greenhouse gas emissions and enhance corporate social responsibility.
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Affiliation(s)
| | - Zahid Irshad Younas
- Lecturer at Berlin School of Business and Innovation, Potsdamer Street, 180-182, Berlin, Germany
| | - Wajiha Manzoor
- Department of Economics, COMSATS University Islamabad Campus, Pakistan
- Corresponding author.
| | - Nabeel Safdar
- National University of Sciences and Technology, NUST Business School, Sector, H-12, Islamabad, Pakistan
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105
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Bénézet C, Gobet E, Targino R. Transform MCMC Schemes for Sampling Intractable Factor Copula Models. Methodol Comput Appl Probab 2023; 25:13. [DOI: 10.1007/s11009-023-09983-4] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/07/2023]
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106
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Knudsen ES, Hage FP, Vethe MB. The more, the merrier: Performance effects of cash over the business cycle. Scandinavian Journal of Management 2023. [DOI: 10.1016/j.scaman.2022.101255] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 12/24/2022]
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107
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Yuanyuan Z, Kumari S, Ilyas M, Bhayo MUR, Marwat J. Media coverage and stock market returns: Evidence from China Pakistan economic corridor (CPEC). Heliyon 2023; 9:e14204. [PMID: 36923889 PMCID: PMC10009534 DOI: 10.1016/j.heliyon.2023.e14204] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 07/26/2022] [Revised: 02/18/2023] [Accepted: 02/23/2023] [Indexed: 03/05/2023] Open
Abstract
The primary source of investor interest that disrupts the financial markets is news that reflects the macroeconomy. This study intends to track changes in investors' positive and negative market attention and their effects on stock market returns by examining the print media portrayal of the China-Pakistan economic corridor (CPEC). We access the daily and weekly coverage of the CPEC by national and international newspapers from the Bloomberg database over the period from January 2015 to December 2019. Using the Harvard psychological dictionary, we categorize the news headlines into positive and negative news sentiments. We then relate the news sentiment to the stock market returns, using quintile analysis, ordinary least squares (OLS), and vector autoregressive (VAR) models. The results show that investors react quickly and significantly to positive news. They pay more for the same stock if the positive news stream increases; hence, the stock market return also increases. In contrast, investors do not react with the same passion to an increase in negative news. These findings are in line with the theoretical rationale of the disposition effect. These outcomes may be useful for active investors and practitioners to devise investment strategies in the presence of the hype surrounding the CPEC in the print media.
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Affiliation(s)
| | - Sonia Kumari
- Department of Business Administration, Sukkur IBA University, Sukkur, 65200, Pakistan
| | - Muhammad Ilyas
- Department of Business Administration, Sukkur IBA University, Sukkur, 65200, Pakistan
| | - Mujeeb-U-Rehman Bhayo
- Department of Business Administration, Sukkur IBA University, Sukkur, 65200, Pakistan
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108
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Cheng WH, Chen Y, Huang P, Ni Y, Liang MC. The impact and profitability of day trading following the relaxation of day trading restrictions in Taiwan. Heliyon 2023; 9:e14939. [PMID: 37064456 PMCID: PMC10102421 DOI: 10.1016/j.heliyon.2023.e14939] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 10/31/2022] [Revised: 03/13/2023] [Accepted: 03/23/2023] [Indexed: 03/29/2023] Open
Abstract
The relaxation of day trading restrictions in Taiwan at the start of 2016 resulted in a significant increase in day trading volume, which piqued our interest in researching the impact and profitability of day trading, expected (unexpected) day trading, and day trading at high (low) levels of VIX using time series models, with the following key findings. First, we show that a high market trading volume triggers a high day trading volume resulting from liquidity markets that day traders prefer, but a high day trading volume does not trigger a high market trading volume resulting from speculative markets that other market participants don't prefer. Second, contrary to our perception, while the VIX index rises, day trading would be more profitable after the relaxation. We infer that a high VIX index may be accompanied by a volatile market, which may generate profits by widening the intraday spread of a day-tradable stock. Third, as compared with unexpected market trading volume, we reveal that unexpected day trading volume may be more unexpected than market trading volume, being more likely to enhance market volatility and stock returns. These impressive and interesting findings may not be disclosed before the relaxation, which may contribute to the existing literature.
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109
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Zhang TW, Lee YC. Effects of proxy solicitation and director ownership on directors’ career consequences. Heliyon 2023; 9:e14471. [DOI: 10.1016/j.heliyon.2023.e14471] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 07/31/2022] [Revised: 03/04/2023] [Accepted: 03/07/2023] [Indexed: 03/12/2023] Open
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110
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Kryzanowski L, Liu J, Zhang J. Effect of COVID-19 on non-performing loans in China. Financ Res Lett 2023; 52:103372. [PMID: 36164498 PMCID: PMC9494920 DOI: 10.1016/j.frl.2022.103372] [Citation(s) in RCA: 1] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Received: 08/02/2022] [Revised: 09/19/2022] [Accepted: 09/21/2022] [Indexed: 05/24/2023]
Abstract
We examine the resilience of Chinese banks during the COVID-19 pandemic by investigating non-performing loan (NPL) ratios. We find that despite the reduction in the growth rate of total bank lending, bank NPL ratios significantly increase during the COVID-19 crisis. Banks with high-quality capital are more effective in controlling their NPL ratios during the Crisis. Big Five banks, state-owned banks and domestic banks have lower NPL ratios than their counterparts during the Crisis.
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Affiliation(s)
- Lawrence Kryzanowski
- John Molson School of Business at Concordia University, 1455 De Maisonneuve Blvd West, Montreal, QC, H3G 1M8 Canada
| | - Jinjing Liu
- School of Business and Economics, Moravian University, 1200 Main St, Bethlehem, PA 18018 USA
| | - Jie Zhang
- Trent School of Business at Trent University, 1600 West Bank Drive, Peterborough, Ontario, K9L 0G2 Canada
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111
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Polat O, Khoury RE, Alshater MM, Yoon SM. Media Coverage of COVID-19 and Its Relationship with Climate Change Indices: A Dynamic Connectedness Analysis of Four Pandemic Waves. Journal of Climate Finance 2023. [PMCID: PMC10062728 DOI: 10.1016/j.jclimf.2023.100010] [Citation(s) in RCA: 1] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 04/01/2023]
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112
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Detthamrong U, Chansanam W. Do the trade credit influence firm performance in agro-industry? Evidence from Thailand. Heliyon 2023; 9:e14561. [PMID: 36950577 PMCID: PMC10025902 DOI: 10.1016/j.heliyon.2023.e14561] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 11/15/2022] [Revised: 03/03/2023] [Accepted: 03/09/2023] [Indexed: 03/16/2023] Open
Abstract
This paper aims to examine the relationship between trade credit and corporate performance. Empirical evidence on the impact of trade credit investment on firm performance remains unclear. For agro firms, the implications of this relationship have not been thoroughly discussed. Using a panel sample consisting of publicly listed agro firms in Thailand for 2001-2020. The sample set consists of 51 Thai-listed firms with 708 firm-year observations. We employ panel ordinary least squares (OLS) regressions and GMM regressions to obtain the estimation results. We find that going to invest in trade credit increases operating performance significantly, which is what the commercial, financing, and transaction theories of trade credit predicted would happen. Furthermore, cost-benefit analysis should serve as a guide for firms' trade credit investment decisions. In particular, firms should be aware of the extra cost of trade credit investment and weigh it against the benefits of improved performance.
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Key Words
- Agro firms
- Corporate performance
- FSIZE, Firm size
- GDP, economic growth
- GMM, generalized method of moments
- LEV, Financial leverage
- LQD, liquidity
- OLS, ordinary least squares
- ROA, Return on Assets
- ROE, Return on Equity
- SGR, sales growth
- SMEs, small and medium-sized enterprises
- TC, Trade credit
- TC2, The square of trade credit
- Thailand
- Trade credit
- Trade credit investment
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Affiliation(s)
- Umawadee Detthamrong
- Department of Business and Innovation Management, Faculty of Business Administration, Chaiyaphum Rajabhat University, Chaiyaphum, Thailand
| | - Wirapong Chansanam
- Department of Information Science, Faculty of Humanities and Social Sciences, Khon Kaen University, Khon Kaen, Thailand
- Corresponding author.
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113
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Xu X, Yang J. Does managerial short-termism always matter in a firm's corporate social responsibility performance? Evidence from China. Heliyon 2023; 9:e14240. [PMID: 36950626 PMCID: PMC10025896 DOI: 10.1016/j.heliyon.2023.e14240] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 06/01/2022] [Revised: 02/23/2023] [Accepted: 02/27/2023] [Indexed: 03/18/2023] Open
Abstract
Using data on Chinese A-share listed firms from 2008 to 2017, we explore how corporate social responsibility (CSR) performance is affected by managerial short-termism and what factors influence the association between the two. First, by employing text analysis in conjunction with machine learning, we construct a new managerial short-termism indicator. Using panel fixed models, we find that managerial short-termism has an adverse impact on CSR performance, and the results are consistent in a series of robustness checks. The heterogeneous test results show that the negative effect is significant only for firms with lower internal corporate governance, for firms in less competitive industries, for firms with less analyst attention, and for state-owned enterprises (SOEs). Additionally, a better institutional environment weakens the negative impact of managerial short-termism on CSR performance. The findings shed light on policy implications for emerging countries.
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114
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Armah M, Bossman A, Amewu G. Information flow between global financial market stress and African equity markets: An EEMD-based transfer entropy analysis. Heliyon 2023; 9:e13899. [PMID: 36895379 PMCID: PMC9988586 DOI: 10.1016/j.heliyon.2023.e13899] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 10/18/2022] [Revised: 02/07/2023] [Accepted: 02/15/2023] [Indexed: 02/24/2023] Open
Abstract
The flow of information between markets is important to guide investors and policymakers in the effective allocation of assets and proactive market regulation, respectively. This study examines the impact of information flow from global financial market stress on the African stock markets using the daily US financial stress index (USFSI) and other advanced economies' financial stress index (OAEFSI) to proxy the global financial stress index. To understand the information flow dynamics across various investment horizons, the ensemble empirical mode decomposition (EEMD)-based transfer entropy is employed. Our findings reveal that African equity markets are highly risky for information flow from global financial market stress. However, we identify diversification prospects based on market conditions for Ghana and Egypt in the short term and Tanzania, Cote D'Ivoire, and Egypt in the medium term. Empirical results also show that the information flow from global financial stress to African stock markets depends on time scales, economic relations, and the state of global financial markets. The findings are important for investors, portfolio managers, practitioners, and policymakers.
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Affiliation(s)
- Mohammed Armah
- Department of Accounting and Finance, School of Business, Ghana Institute of Management and Public Administration (GIMPA), Achimota, Ghana
| | - Ahmed Bossman
- Department of Finance, School of Business, CC-191-7613, University of Cape Coast, Cape Coast, Ghana
| | - Godfred Amewu
- Department of Finance, School of Business, University of Ghana, Legon, Ghana
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115
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Sariyer G, Kahraman S, Sözen ME, Ataman MG. Fiscal responses to COVID-19 outbreak for healthy economies: Modelling with big data analytics. Struct Chang Econ Dyn 2023; 64:191-198. [PMID: 36590330 PMCID: PMC9793960 DOI: 10.1016/j.strueco.2022.12.011] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 09/15/2021] [Revised: 12/19/2022] [Accepted: 12/23/2022] [Indexed: 06/17/2023]
Abstract
Fiscal responses to the COVID-19 crisis have varied a lot across countries. Using a panel of 127 countries over two separate subperiods between 2020 and 2021, this paper seeks to determine the extent that fiscal responses contributed to the spread and containment of the disease. The study first documents that rich countries, which had the largest total and health-related fiscal responses, achieved the lowest fatality rates, defined as the ratio of COVID-related deaths to cases, despite having the largest recorded numbers of cases and fatalities. The next most successful were less developed economies, whose smaller total fiscal responses included a larger health-related component than emerging market economies. The study used a promising big data analytics technology, the random forest algorithm, to determine which factors explained a country's fatality rate. The findings indicate that a country's fatality ratio over the next period can be almost entirely predicted by its economic development level, fiscal expenditure (both total and health-related), and initial fatality ratio. Finally, the study conducted a counterfactual exercise to show that, had less developed economies implemented the same fiscal responses as the rich (as a share of GDP), then their fatality ratios would have declined by 20.47% over the first period and 2.59% over the second one.
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Affiliation(s)
- Gorkem Sariyer
- Department of Business Administration, Yaşar University, Izmir, Turkey
| | | | - Mert Erkan Sözen
- Budget Planning and Information Responsible, Izmir Metro Company, Izmir, Turkey
| | - Mustafa Gokalp Ataman
- Department of Emergency Medicine, Izmir Bakırçay University Çiğli Training and Research Hospital, Izmir, Turkey
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116
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Yang G, Deng F. Can digitalization improve enterprise sustainability?–Evidence from the resilience perspective of Chinese firms. Heliyon 2023. [PMID: 36994388 PMCID: PMC10040516 DOI: 10.1016/j.heliyon.2023.e14607] [Citation(s) in RCA: 3] [Impact Index Per Article: 3.0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 01/06/2023] [Revised: 03/11/2023] [Accepted: 03/13/2023] [Indexed: 03/17/2023] Open
Abstract
The implementation of digitalization has gradually become an important strategy for many enterprises to improve sustainability. The text mining and principal component analysis methods were used to measure enterprise digitalization and the level of enterprise resilience from 2011 to 2019, respectively. This study then explored the impact of digitalization on enterprise resilience. This research comes to three conclusions. (1) Digitalization can improve enterprise resilience significantly, but beyond the threshold, it inhibits enterprise resilience. In other words, there is an inverted U-shaped relationship between digitalization and enterprise resilience, and the steepness of this inverted U-shape shows a marginal increasing trend. (2) Notably, Resource allocation efficiency and information accessibility play a mediating effect in the impact of digitization on enterprise resilience. Further analysis found that the improvement of enterprise resilience is not only conducive to the growth of total factor productivity but also conducive to the high-quality development of the manufacturing industry. (3) The influence of digitization on enterprise resilience in areas with a high level of marketization, labor-and technology-intensive industries, and eastern and coastal areas is more obvious. The impact of digitization on the sustainable development of small and medium-sized enterprises, and private and foreign-funded enterprises is more significant. Finally, corresponding policy suggestions are proposed.
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117
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Sánchez-García E, Marco-Lajara B, Martínez-Falcó J, Poveda-Pareja E. Cognitive social capital for knowledge absorption in specialized environments: The path to innovation. Heliyon 2023; 9:e14223. [PMID: 36923853 DOI: 10.1016/j.heliyon.2023.e14223] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 12/13/2022] [Revised: 02/23/2023] [Accepted: 02/27/2023] [Indexed: 03/06/2023] Open
Abstract
The purpose of this research is to empirically analyze how regional specialization influence innovation in enterprises, as well as the mediation effect of absorptive capacity and cognitive social capital, as knowledge diffusion mechanisms. A questionnaire was developed and distributed, obtaining a sample of 197 energy firms in Spain. For the assessment of this data, the PLS-SEM technique, a multivariate analytical approach, has been used. The results show a positive and significant direct effect between the degree of regional specialization and the innovative performance of firms. In addition, the cognitive social capital and absorptive capacity variables show a positive and significant mediation effect in the relationship proposed, as well as between them, thus constructing a double mediation and proving to be relevant mechanisms for knowledge diffusion. Then, it is concluded that cognitive and geographical proximity matters, since enable firms to obtain resources for knowledge upgrading and innovation. Thus, it is crucial for firms to develop their capacity to absorb new external knowledge, as has been evidenced as a key factor to leverage the opportunities of the context in which firms are located. This paper has important implications for the long-standing complex debates about whether regions should develop, primarily whether they should do so through specialization or diversification.
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118
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Kirkpatrick AK, Radicic D. Pension accounting information and firm value: An analysis of FTSE 100 companies. Heliyon 2023; 9:e14989. [PMID: 37064480 PMCID: PMC10102413 DOI: 10.1016/j.heliyon.2023.e14989] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 09/19/2022] [Revised: 03/14/2023] [Accepted: 03/23/2023] [Indexed: 03/31/2023] Open
Abstract
This study is among the first to take known results in pension accounting and use a sample of UK listed FTSE 100 companies to show that the results are mostly the same as in previous research (on the US companies) into associations between pension accounting information and firm value. We investigate the association between published pension accounting information and the market value of a sample of UK listed FTSE 100 companies in the ten-year period 2006 to 2015. We analyse UK listed firms that report under the IFRS accounting framework (IAS 19), which is a contribution to earlier literature that concentrated on US listed firms that report under the US (FASB) accounting framework that has significantly different pension accounting rules to the IFRS accounting framework. Moreover, the analysis is conducted on a sample of firms that used the method of immediate recognition of actuarial gains and losses in other comprehensive income (or the 'Fair Value OCI method') even before mandatory adoption of this method from 2013. We employ a static panel regression analysis on a sample of 70 companies. Empirical findings suggest that there is an association between pension accounting information and firm value, but in some cases, there is less association than there is between other types of accounting information and firm value. Core earnings are value relevant but overall pension earnings (net) are not value relevant although pension costs, pension interest expense and pension income have an association with firm value. Balance sheet numbers have less association with firm value than is the case for core earnings, pension costs, pension interest expense or pension income.
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119
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Xiang Y, Zhao Y, deng S. Asset-return momentum prediction through pattern recognition. Knowl Based Syst 2023. [DOI: 10.1016/j.knosys.2023.110443] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 03/08/2023]
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120
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Abstract
We choose the sample data in Chinese capital market to compare the measurement effect of earnings management with Deep Belief Network, Deep Convolution Generative Adversarial Network, Generalized Regression Neural Network and modified Jones model by performance. We find that Deep Belief Network has the best effect, while Deep Convolution Generative Adversarial Network has no significant advantage, and the measurement effect of Generalized Regression Neural Network and modified Jones model have little difference. This paper provides empirical evidence that neural networks based on deep learning technology and other artificial intelligence technologies can be widely applied to measure earnings management in the future.
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Affiliation(s)
- Jia Li
- Normal University, School of Economics and Management, No. 688 Yingbin Avenue, Jinhua City, Zhejiang Province, China
| | - Zhoutianyang Sun
- Suzhou City University, The Department of Business Administration, No. 1188, Wuzhong Avenue, Wuzhong District, Suzhou City, Jiangsu Province, China
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121
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Hsu WT, Chen HL. Top and middle management characteristics and internationalization speed. LODJ 2023. [DOI: 10.1108/lodj-04-2022-0176] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 03/01/2023]
Abstract
PurposeThis study aims to bridge the gap between firms' internationalization speed research and the emerging study of the interface of a top management team (TMT) and a middle management team (MMT). Accordingly, this study examines the effect of TMT output function and the moderating effect of similarity between TMT and MMT in functional background and international experience on internationalization speed.Design/methodology/approachA two-way fixed-effects approach is used to analyze a dataset of 1,040 observations.FindingsThe results suggest that an output-oriented TMT tends to promote rapid internationalization and that MMT members who are similar with TMT members in functional backgrounds and international experience may be more inclined to support and facilitate internationalization speed advocated by TMT.Originality/valueThis study highlights the importance of demographic similarity between TMT and MMT in speeding up a firm's international expansion, thus advancing the notion that demographic similarity may align the perspectives and perceptions among multi-echelons, leading to consensus on strategy development.
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122
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Bishwal JP. Le Cam–Stratonovich–Boole theory for Itô diffusions. Random Operators and Stochastic Equations 2023; 0. [DOI: 10.1515/rose-2023-2004] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 03/02/2023]
Abstract
Abstract
We connect the theory of local asymptotic normality (LAN) of Le Cam to
Boole’s approximation of the Stratonovich stochastic integral by estimating the
parameter in the nonlinear drift coefficient of an ergodic
diffusion process satisfying a homogeneous Itô stochastic
differential equation based on discretely spaced dense observations of the process.
The asymptotic normality and local asymptotic minimaxity (in the
Hajek–Le Cam sense) of approximate maximum likelihood estimators,
approximate maximum probability estimators and approximate Bayes
estimators based on Itô and Boole’s approximations of
the continuous likelihood are obtained under an almost slowly
increasing experimental design (ASIED) condition (
T
n
6
/
7
→
0
{\frac{T}{n^{6/7}}\to 0}
as
T
→
∞
{T\to\infty}
and
n
→
∞
{n\to\infty}
, where T is the length of the observation time and n is the number of observations) through the weak convergence of the approximate likelihood ratio random fields.
Among other things, the Bernstein–von Mises type theorems concerning the
convergence of suitably normalized and centered approximate
posterior distributions to normal distribution under the same design
condition are proved. Asymptotic normality and asymptotic efficiency
of the conditional least squares estimator under the same design
condition are obtained as a by-product. The log-likelihood
derivatives based on Itô approximations are martingales, but the
log-likelihood derivatives based on Boole’s approximations
are not martingales but weighted averages of forward and backward
martingales. These new approximations have faster rate of
convergence than the martingale approximations. The methods would have advantages over Euler and Milstein approximations for Monte Carlo simulations.
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123
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de Carvalho Pereira V, Pereira AG, de Oliveira JSC. Influence of ownership structure on the choice of Big Four independent auditors. Int J Discl Gov 2023. [DOI: 10.1057/s41310-023-00175-7] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 03/04/2023]
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124
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Barbulescu R, Bonet R. Looking for Greener Grass? Prior Status and Exploration-Exploitation Decisions in Job Search. Organization Science 2023. [DOI: 10.1287/orsc.2023.1663] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 03/01/2023]
Abstract
Research on the returns to specialist versus generalist careers has largely neglected what drives individuals’ motivations to build different career profiles in the first place. Although specialization is widely associated with benefits, generalist careers are seen as more at risk except in certain mitigated conditions. At the same time, given the uncertainty in labor markets, future returns to specialization cannot simply be assumed. We introduce in this paper a novel mechanism behind the formation of generalist careers, opportunity-enhancing generalism, whereby workers willingly give up the benefits to specialization to dissociate from a past expertise considered to yield relatively poor future prospects. On the premise that one’s prior experience provides the basis for exploration-versus-exploitation decisions, we argue that aspects of one’s previous jobs, including status, will importantly affect decisions about whether to continue specializing. Specifically, negative feedback about prospects for advancement in their prior jobs will increase workers’ motivation to search for jobs in new areas of expertise. Focusing on managerial workers’ job search decisions, we predict that individuals who come from low-status firms, low-status work domains, or both will be more likely to search for jobs in a new area than job seekers coming from high-status firms and work domains. Using data on job searches in a Master in Business Administration labor market, we find support for our prediction and suggestive evidence for the opportunity-enhancing mechanism we propose. Funding: This work was supported by the French National Research Agency [Grant “Investissements d’Avenir” Labex Ecodec/ANR-11-LABX-0047] and the Spanish Ministry of Science and Innovation [Grant MCIN/AEI/10.13039/501100011033]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.1663 .
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Affiliation(s)
- Roxana Barbulescu
- Management and Human Resources Department, HEC Paris, 78350 Jouy en Josas, France
| | - Rocio Bonet
- Organizational Behavior and Human Resource Management Department, IE Business School, IE University, Madrid 28006, Spain
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125
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Chatzopoulou E, Lioukas S, Voudouris I. HQ controls, agency costs, and procedural justice. Global Strategy Journal 2023. [DOI: 10.1002/gsj.1473] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 03/03/2023]
Affiliation(s)
| | - Spyros Lioukas
- Department of Management Science and Technology Athens University of Economics and Business Athens Greece
| | - Irini Voudouris
- Department of Management Science and Technology Athens University of Economics and Business Athens Greece
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126
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Luo H, Luo X, Gu S. How Have the COVID-19 Pandemic and Market Sentiment Affected the FX Market? Evidence from Statistical Models and Deep Learning Algorithms. INT J COMPUT INT SYS 2023; 16:19. [DOI: 10.1007/s44196-023-00194-w] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/26/2023] Open
Abstract
AbstractThis paper attempts to investigate the impact of the COVID-19 pandemic and market sentiment on the dynamics of USD/JPY, GBP/USD, and USD/CNY. We compose the market sentiment variable and incorporate the newly confirmed COVID-19 cases and sentiment variable into the traditional exchange rate forecasting model. We find that confirmed COVID-19 cases and sentiment variables in the US, Japan, UK, and China in the period of January 23rd, 2020 to September 14th, 2021 are significant in explaining the bilateral exchange rate movement. Recurrent neural network (RNN) and long short-term memory (LSTM) models outperform the other deep learning models and vector autoregressive (VAR) model in forecasting the bilateral exchange rate movement during the COVID-19 pandemic period. Further analysis using high-frequency intraday data and ensemble models shows that ensemble models significantly improve the accuracy of exchange rate prediction, as they are better at coping with the nonlinear and nonstationary features of exchange rate time series.
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127
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Hu MR, Li X, Shi Y, Zhang X(M. Numerological Heuristics and Credit Risk in Peer-to-Peer Lending. Information Systems Research 2023. [DOI: 10.1287/isre.2023.1202] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/26/2023]
Abstract
People often use heuristics as mental shortcuts when making financial decisions. Although the literature typically considers heuristics as behavior biases, we explore how different types of heuristics differ from one another. Through peer-to-peer lending data, we observe that borrowers who use limited attention when applying for loans tend to choose round loan amounts, simplifying the decision-making process but compromising accuracy. This round-number heuristic decreases their funding success rate and increases the probability of default. On the other hand, some borrowers select loan amounts in “lucky numbers” that superstitious lenders favor. This lucky-number heuristic caters to the lenders’ preference, thus increasing the borrowers’ funding success rates and reducing the likelihood of default. Our paper demonstrates that borrowers select heuristics based on their motives, leading to varying consequences. We also show that heuristics are not all the same, and people’s choice of heuristics provides insight into their characteristics and can predict decision outcomes. For instance, factoring in heuristic usage information improves default prediction accuracy in our setting. Our findings can be beneficial to practitioners in refining the underwriting and screening of borrowers and loans.
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Affiliation(s)
- Maggie Rong Hu
- The Chinese University of Hong Kong Business School, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong
| | - Xiaoyang Li
- School of Accounting and Finance, PolyU Business School, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong
| | - Yang Shi
- Department of Finance, Faculty of Business and Economics, The University of Melbourne, Melbourne, 3010 Victoria, Australia
| | - Xiaoquan (Michael) Zhang
- Department of Management Science and Engineering, School of Economics and Management, Tsinghua University, Shenzhen 518055, China
- The Chinese University of Hong Kong Business School, The Chinese University of Hong Kong, Hong Kong
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128
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Jiang K, Wang S. Survival tactics for distressed firms in emerging markets. Asia Pac J Manag 2023. [DOI: 10.1007/s10490-023-09873-w] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 02/26/2023]
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129
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Zhao P. Robust high-dimensional alpha test for conditional time-varying factor models. STATISTICS-ABINGDON 2023. [DOI: 10.1080/02331888.2023.2180003] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/25/2023]
Affiliation(s)
- Ping Zhao
- School of Statistics and Data Science, Nankai University, Tianjin, People's Republic of China
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130
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Lee Y, Rheinländer T. On the cumulant transforms for Hawkes processes. J Appl Probab 2023. [DOI: 10.1017/jpr.2022.96] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/25/2023]
Abstract
Abstract
We consider the asset price as the weak solution to a stochastic differential equation driven by both a Brownian motion and the counting process martingale whose predictable compensator follows shot-noise and Hawkes processes. In this framework, we discuss the Esscher martingale measure where the conditions for its existence are detailed. This generalizes certain relationships not yet encountered in the literature.
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131
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Di Bari A, Santoro D, Tarrazon-Rodon MA, Villani G. The impact of polarity score on real option valuation for multistage projects. Qual Quant 2023; 58:1-20. [PMID: 36852094 PMCID: PMC9947453 DOI: 10.1007/s11135-023-01635-6] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Grants] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Accepted: 02/08/2023] [Indexed: 02/25/2023]
Abstract
In most cases, the valuation of the investments characterized by various stages with a high level of uncertainty is done through the compound real option valuation (ROV). This decision making support can consider various types of uncertainty that can affects these investment phases, such as that linked to technology. Specifically, within the category of uncertain investments there are the broadband opportunities that can be valued as real options in order to quantify the risks associated with the investment. However, since ROV theory has no definitive way to determine model parameters based on market information, we propose one that can adjust them dynamically. In this paper, to include this aspect in the project valuation, we have unified the ROV with the sentiment analysis, a natural language processing technique that allows us to quantify the polarity of expressions in natural language numerically. In particular, the inherent risks related to the different phases of the project can be extracted from the information present in the surrounding environment and published in newspapers. From there, we obtain a sentiment score which, through appropriate manipulations, manages to modify the evaluation of the success probabilities of each stage. Then, we embed these success probabilities in the ROV in order to provide a valuation methodology that includes the impact of information on the investment decision.
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Affiliation(s)
- Antonio Di Bari
- Department of Economics and Finance, University of Bari, Largo Abbazia S. Scolastica, 53, 70124 Bari, Italy
| | - Domenico Santoro
- Department of Economics and Finance, University of Bari, Largo Abbazia S. Scolastica, 53, 70124 Bari, Italy
| | - Maria Antonia Tarrazon-Rodon
- Business Department, Universitat Autònoma de Barcelona, Campus de Bellaterra, 08193 Bellaterra, Cerdanyola del Vallès, Spain
| | - Giovanni Villani
- Department of Economics and Finance, University of Bari, Largo Abbazia S. Scolastica, 53, 70124 Bari, Italy
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132
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Zhang B, Pan G, Yao Q, Zhou W. Factor Modelling for Clustering High-dimensional Time Series. J Am Stat Assoc 2023. [DOI: 10.1080/01621459.2023.2183132] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/24/2023]
Affiliation(s)
- Bo Zhang
- Department of Statistics & Finance, International Institute of Finance
- School of Management, University of Science and Technology of China
| | - Guangming Pan
- School of Physical & Mathematical Sciences, Nanyang Technological University
| | - Qiwei Yao
- Department of Statistics, London School of Economics and Political Science
| | - Wang Zhou
- Department of Statistics & Data Science, National University of Singapore
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133
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Teti E, Dallocchio M, Filippone L, Mariani G. Round duration and equity injection in venture capital. An empirical analysis in the medtech sector. Technology Analysis & Strategic Management 2023. [DOI: 10.1080/09537325.2023.2182613] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/24/2023]
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134
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Chen LY, Lai JH. Board diversity and post-IPO performance: the case of technology start-ups. Technology Analysis & Strategic Management 2023. [DOI: 10.1080/09537325.2023.2182154] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/23/2023]
Affiliation(s)
- Li-Yu Chen
- Department of Business Administration, Soochow University, Taipei, Taiwan (R.O.C)
| | - Jung-Ho Lai
- Department of Finance, National Taipei University of Business, Taipei, Taiwan (R.O.C.)
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135
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Horn M. The Influence of ESG Ratings On Idiosyncratic Stock Risk: The Unrated, the Good, the Bad, and the Sinners. Schmalenbach Z Betriebswirtsch Forsch 2023; 75:1-28. [PMID: 36844611 PMCID: PMC9942038 DOI: 10.1007/s41471-023-00155-1] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 03/30/2022] [Accepted: 01/28/2023] [Indexed: 02/23/2023]
Abstract
This study analyzes whether stocks of companies with environmental social governance (ESG) rating show lower idiosyncratic risk. The main analysis covers 898,757 company-month observations of US stocks in the period from 1991 to 2018 and controls for stocks' exposure to liquidity, mispricing, innovations in volatility risk, investor sentiment, and analysts' forecast divergence. The main finding is that the receipt of an ESG rating decreases idiosyncratic stock risk. The effect is stronger for stocks that receive a higher ESG rating. Nevertheless, even when companies receive a lower ESG rating, they show significantly lower idiosyncratic risk than stocks without an ESG rating. Furthermore, stocks subject to a negative screen show lower idiosyncratic risk during recessions than comparable stocks with an ESG rating but without a negative screen. The results support the notion that the receipt of an ESG rating decreases uncertainty regarding future stock risk and return and show that ESG ratings and negative screens individually influence stock risk and, therefore, should be considered separately.
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Affiliation(s)
- Matthias Horn
- Department of Finance, Bamberg University, Kaerntenstraße 7, 96045 Bamberg, Germany
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136
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Kim Y, Jung S, Kim C. The Impact of Capital Structure on the Profitability Performance of ICT Firms. Processes (Basel) 2023; 11:635. [DOI: 10.3390/pr11020635] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/22/2023] Open
Abstract
Information and communication technology (ICT) companies strive for ceaseless innovation to remain competitive while facing the challenge of maximizing firm value (FV) with limited resources, and increasing the interests of shareholders. However, capital structures have a considerable effect on FV, and the literature still disagrees with the optimum structure in specific industries and countries. Therefore, this study evaluates the FV of ICT companies in terms of profitability efficiency using data envelopment analysis. In addition, this study applies a Tobit regression and Kruskal-Wallis one-way ANOVA to identify the impact of leverage, liquidity, and firm size, which are major capital structure factors influencing FV. The analysis yields three main results. First, in the ICT industry, small and medium companies tend to have better profitability efficiency than companies of other sizes. Second, only small and medium ICT manufacturing companies’ profitability efficiency is positively impacted by the current ratio. Third, only mid-sized service companies’ profitability efficiency is positively impacted by the debt-equity ratio. The results have policy and practical implications for improving the FV of ICT companies.
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137
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Jain K, Tripathi P. Mapping the environmental, social and governance literature: a bibliometric and content analysis. JSMA 2023. [DOI: 10.1108/jsma-05-2022-0092] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 02/18/2023]
Abstract
PurposeThis study aimed to quantify and map academic literature of ESG from a bibliometric perspective and to provide a comprehensive review of the recent literature published in the high-rated journal articles.Design/methodology/approachThe study analyzed 867 and 388 documents from Scopus and Web of Science (WoS) data respectively using bibliometric analysis. Biblioshiny and VOSviewer software was used for performance analysis and science mapping respectively. Further, manual content analysis of the 190 research articles published in the last five years was conducted.FindingsThe results demonstrate that ESG is an emerging domain in the field of sustainable finance as the number of publications and total citations are showing an upward trend. The top two journals in terms of productivity are the Journal of Sustainable Finance and Investment and Business Strategy and the Environment. The highest number of publications are from the United States and George Serafeim is the most influential author in the ESG domain. Further, the result of cluster analysis of bibliographic coupling reveals four intellectual themes, (1) ESG investing; (2) ESG disclosures and Integrated Reporting; (3) ESG performance and firm value and (4) Corporate Governance and ESG performance. The content analysis of the 190 high-quality journal articles presents the current 11 areas of research in ESG. The impact of ESG on firm value and ESG investment are the prominent themes, and the effect of ESG on the cost of capital and ESG audit and assurance are the emerging themes in this domain.Research limitations/implicationsThe keyword search is solely focusing on the theme of the study. Further, other keywords such as Corporate Social Responsibility and Corporate sustainability taken along with ESG may provide distinct results.Practical implicationsThe study advances the understanding of the ESG domain by developing new possibilities to discover key research areas.Originality/valueThe present work provides a comprehensive and detailed bibliometric and content analysis of ESG literature. This study delineates the thorough literature review of journal articles published in the recent five years in high-rated journals.
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138
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Loughran T, McDonald B. Management disclosure of risk factors and COVID-19. Financ Innov 2023; 9:53. [PMID: 36811024 PMCID: PMC9935242 DOI: 10.1186/s40854-023-00459-5] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 07/09/2022] [Accepted: 01/20/2023] [Indexed: 06/18/2023]
Abstract
Public companies in the United States are required to file annual reports (i.e., Form 10-K) and disclose, among other things, the risk factors that may harm their stock price. The risk of a pandemic was well-known before the recent crisis, and we now know that the initial impact on many shareholders was significant and negative. To what extent did managers forewarn their shareholders about this valuation risk? We examine all 10-K filings from 2018, before any knowledge of the current pandemic, and find that less than 21% of them contain any reference to pandemic-related terms. Given the management's presumed in-depth knowledge of their business and the general awareness that pandemics have been identified as a significant global risk for at least the past decade, this number should have been higher. We find an unexpectedly positive correlation (0.137) between the use of pandemic-related words in annual reports and realized stock returns during the actual pandemic at the industry level. Some industries most severely impacted by COVID-19 barely mentioned pandemic risk in their financial disclosures to shareholders, indicating that managers were ineffective in highlighting their exposure to pandemic risks to investors.
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139
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Piezunka H, Schilke O. The Dual Function of Organizational Structure: Aggregating and Shaping Individuals’ Votes. Organization Science 2023. [DOI: 10.1287/orsc.2023.1653] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/18/2023]
Abstract
How do organizational structures influence organizational decision making? This article reveals organizational structures’ dual function: they both (1) aggregate and (2) shape individuals’ decisions. What makes this dual function so remarkable is that the two effects are diametrically opposed to one another. Ceteris paribus, a less stringent decision-making structure reduces the amount of support required for a given project to be greenlit at the organizational level, which should result in more investments getting approved. However, we find that this ceteris paribus assumption does not hold, because a less stringent decision-making structure also reduces individuals’ tendency to provide their support for an investment. Our experimental investigation of organizational voting provides evidence for our position that organizational structure plays an important role beyond mere aggregation: voting thresholds also affect individuals’ voting behavior. The combination of both effects explains why the organizational adoption of a new voting threshold may not yield the intended outcome. Funding: This work was supported by a National Science Foundation CAREER Award from the Directorate for Social, Behavioral and Economic Sciences [Grant 1943688] granted to O. Schilke. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2023.1653 .
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140
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Xie X, Zhang F, Liu L, Yang Y, Hu X. Assessment of associated credit risk in the supply chain based on trade credit risk contagion. PLoS One 2023; 18:e0281616. [PMID: 36795729 PMCID: PMC9934404 DOI: 10.1371/journal.pone.0281616] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [MESH Headings] [Grants] [Track Full Text] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 09/18/2022] [Accepted: 01/27/2023] [Indexed: 02/17/2023] Open
Abstract
Assessment of associated credit risk in the supply chain is a challenge in current credit risk management practices. This paper proposes a new approach for assessing associated credit risk in the supply chain based on graph theory and fuzzy preference theory. First, we classified the credit risk of firms in the supply chain into two types, namely firms' "own credit risk" and "credit risk contagion"; second, we designed a system of indicators for assessing the credit risks of firms in the supply chain and used fuzzy preference relations to obtain the fuzzy comparison judgment matrix of credit risk assessment indicators, on which basis we constructed the basic model for assessing the own credit risk of firms in the supply chain; third, we established a derivative model for assessing credit risk contagion. On this basis, we carried out a comprehensive assessment of the credit risk of firms in the supply chain by combining the two assessment results, revealing the contagion effect of associated credit risk in the supply chain based on trade credit risk contagion (TCRC). The case study shows that the credit risk assessment method proposed in this paper enables banks to accurately identify the credit risk status of firms in the supply chain, which helps curb the accumulation and outbreak of systemic financial risks.
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Affiliation(s)
- Xiaofeng Xie
- Innovation Center of Nursing Research, Nursing Key Laboratory of Sichuan Province, West China Hospital, West China School of Nursing, Sichuan University, Chengdu, Sichuan, China
| | - Fengying Zhang
- West China School of Nursing, West China Hospital, Sichuan University, Chengdu, Sichuan, China
- * E-mail: (FZ); (XH)
| | - Li Liu
- Innovation Center of Nursing Research, Nursing Key Laboratory of Sichuan Province, West China Hospital, West China School of Nursing, Sichuan University, Chengdu, Sichuan, China
| | - Yang Yang
- School of Economics Mathematics, Southwestern University of Finance and Economics, Sichuan, China
| | - Xiuying Hu
- Innovation Center of Nursing Research, Nursing Key Laboratory of Sichuan Province, West China Hospital, West China School of Nursing, Sichuan University, Chengdu, Sichuan, China
- * E-mail: (FZ); (XH)
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141
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Mei X, Peng B, Zhu H. Variable selection in heterogeneous panel data models with cross‐sectional dependence. AUST NZ J STAT 2023. [DOI: 10.1111/anzs.12381] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/18/2023]
Affiliation(s)
- Xiaoling Mei
- Department of Finance, School of Economics (SOE) Wang Yanan Institute for Studies in Economics (WISE) Xiamen University Fujian 361005China
| | - Bin Peng
- Department of Econometrics and Business Statistics Monash University VIC 3145Australia
| | - Huanjun Zhu
- Wang Yanan Institute for Studies in Economics (WISE) Department of Statistics & Data Science School of Economics (SOE) MOE Key Laboratory of Econometrics, and Fujian Key Laboratory of Statistical Science Xiamen University Fujian China 361005
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142
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Principale S, Pizzi S. The Determinants of TCFD Reporting: A Focus on the Italian Context. Administrative Sciences 2023; 13:61. [DOI: 10.3390/admsci13020061] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/17/2023] Open
Abstract
The recommendations of the Task Force on Climate Change Disclosure (TCFD) represent fundamental guidelines for managing climate-change-related risks. Indeed, the TCFD outlines good practices for integrated risk management as well as aims to protect investors and stakeholders through a more transparent and complete disclosure on the subject. However, the adoption of the recommendations was slow and differentiated between countries. The study aims to analyze the determinants that have influenced the voluntary choice of companies to adopt the TCFD recommendations. Using a logistic regression on a sample of Italian public interest entities, the results show that the size of the board, the integration of ESG risks, and the size of the company are variables that influenced the managers’ decision to adopt the guidelines.
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143
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Han J, Chen M, Chen Y, Jing Q, Wang S. The study on the relationship between venture capital, tolerance to failure, and enterprise innovation performance. Front Psychol 2023; 14:1133324. [PMID: 36874814 PMCID: PMC9975738 DOI: 10.3389/fpsyg.2023.1133324] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Received: 12/28/2022] [Accepted: 01/24/2023] [Indexed: 02/17/2023] Open
Abstract
Venture capital not only affects enterprise innovation decisions by providing funds, value-added services and allocating control rights, but also the psychological capital of venture capital can enhance its tolerance for failure in innovation activities of enterprises, and thus have a positive impact on innovation performance of enterprises. This paper uses multivariate and negative binomial regression models, propensity score matching method and Heckman treatment effect model to study the impact mechanism of venture capital on enterprise innovation performance, and the mediation role of venture capital's tolerance for innovation failure in the relationship between the above two; this paper studies the moderating effect of the characteristics of heterogeneous venture capital institutions, such as joint investment strategies and geographical proximity, on the relationship between venture capital failure tolerance and enterprise innovation performance. The results show that venture capital can significantly improve its tolerance for enterprise innovation failure by holding shares and occupying seats on the board of directors of enterprises, thereby bring the increase of the innovation performance of enterprises; if joint investment strategy and close investment are selected, the tolerance of venture capital to innovation failure will have a more obvious effect on the promotion of enterprise innovation performance.
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Affiliation(s)
- Jin Han
- School of Business, Xi’an University of Finance and Economics, Xi’an, China,*Correspondence: Jin Han, ✉
| | - Minling Chen
- School of Economics and Management, Xi’an ShiYou University, Xi’an, China
| | - YanXin Chen
- Foreign Languages School, Kunming University, Kunming, China
| | - Qinling Jing
- School of Economils and Management, Kunming University, Kunming, China
| | - ShuangYan Wang
- School of Business, Xi’an University of Finance and Economics, Xi’an, China
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144
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Jia J, Yuan S, Wei L, Tang G. When firms adopt sustainable human resource management: A
fuzzy‐set
analysis. Human Resource Management 2023. [DOI: 10.1002/hrm.22164] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 02/17/2023]
Affiliation(s)
- Junyun Jia
- School of Management Shandong University Jinan China
| | - Shuo Yuan
- Department of Strategy, Entrepreneurship, and Management, Alberta School of Business University of Alberta Edmonton Alberta Canada
| | - Li‐Qun Wei
- Department of Management Hong Kong Baptist University Kowloon Tong, HKSAR China
| | - Guiyao Tang
- School of Management Shandong University Jinan China
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145
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Li W, Pang W. Digital inclusive finance, financial mismatch and the innovation capacity of small and medium-sized enterprises: Evidence from Chinese listed companies. Heliyon 2023; 9:e13792. [PMID: 36865464 DOI: 10.1016/j.heliyon.2023.e13792] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 10/27/2022] [Revised: 02/09/2023] [Accepted: 02/10/2023] [Indexed: 02/15/2023] Open
Abstract
As the main driver of innovation, enterprises can effectively promote the level of social innovation. This paper incorporates digital inclusive finance into the research framework of innovation in Small and Medium-sized enterprises, and investigates the impact of digital inclusive finance on the innovation ability of Small and Medium-sized enterprises through theoretical and empirical analyses. The theoretical analysis finds that digital inclusive finance can compensate for the "long-tail effect" in the financing process and help enterprises obtain financing loans. In terms of empirical analysis, this paper has conducted empirical tests by selecting the innovation data of Chinese A-share listed companies from 2010 to 2021, and the results show that: (1) Digital inclusive finance still has a facilitating effect on the technological innovation capability of Small and Medium-sized enterprises after the robustness test. (2)The mechanism evaluation finds that the digital inclusive finance segmentation indicators, i.e., the depth of use, the breadth of coverage and the degree of digitalization, are also important ways to enhance the technological innovation capability of Small and Medium-sized enterprises. (3)The innovative introduction of financial mismatch variables reveals that the financial mismatch problem in the financial market has a suppressive effect on the technological innovation capability of Small and Medium-sized enterprises. (4)Further analysis of the mediation effect of digital inclusive finance reveals that digital inclusive finance can effectively correct the financial mismatch problem in the traditional financial model and promote the technological innovation capability of Small and Medium-sized enterprises. This paper enriches the analysis of the economic effects of digital inclusive finance, while providing Chinese empirical support for digital inclusive finance to promote the innovation ability of Small and Medium-sized enterprises.
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146
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Beal Partyka R, Lana J, Marcon R. Money pills: corporate political activity effect on mergers and acquisitions. MRR 2023. [DOI: 10.1108/mrr-11-2021-0834] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 02/17/2023]
Abstract
Purpose
This study aims to contribute to the corporate political activities (CPAs) field by suggesting the effect of campaign contributions on the time that firms wait for regulators’ decisions.
Design/methodology/approach
This paper analyzes 358 mergers and acquisitions (M&A) from 2008 to 2017 in Brazil through ordinary least squares regression with robustness control and causal operationalization in a small vote margins treatment.
Findings
Campaign contributions speed up the M&A regulator’s decisions. Campaign contributions amounts proved to be effective in decreasing the waiting time for judgments of M&A deals. Besides, National Development Bank disbursements to companies in M&A deals, served as a moderator to help reduce the waiting time.
Research limitations/implications
The main implication of this paper to the antecedents of CPA research is the estimation of time as an output of the political efforts of firms. Previous research focuses on what firms could get. Here, the authors focus on when. As a limitation, this study analyzes CPA through campaign contributions, as the only reliable source of CPA publicly available. Firms use multiple mechanisms of CPA. It would be expected for new papers to test different CPA mechanisms, such as political connections and lobbying.
Practical implications
This study provides evidence of the use of CPA as a relevant mechanism for firms to avoid institutional risks by getting regulators’ decisions faster. This evidence is useful for firms to grant their competitive advantage in a highly volatile environment, such as an emerging market.
Social implications
What happens in the nonmarket environment interferes within markets. Businesses seek to finance political projects with which they are more aligned, and governments provide capital to businesses in exchange for political support. Whether to expand successfully may also depend on early entrants, who will have acquired enough leadership to dominate the market.
Originality/value
While most of the research on nonmarket strategy focuses on what firms can get as an output for CPA efforts, this study provides here evidence on when firms can get it. As one can cite, in business, time is money.
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147
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Adamba C. Trends in financing of basic education in Ghana – a political economy analysis. IJEM 2023. [DOI: 10.1108/ijem-01-2022-0036] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 02/14/2023]
Abstract
PurposeUsing a political economy framework, this paper examines the financing trend, by investigating three systematic spikes occurring between 2004 and 2016. The study aims to provide a useful review of the interaction of politics, financial decisions and educational outcomes. Additionally it provides a useful guide, especially to academics, to identify political and economic conceptualizations that will predict expenditure decision-making of political actors and to be able to provide policy advice on the future effect of such decisions on availability and accessibility of public goods.Design/methodology/approachThe paper adopts a secondary data analysis approach, drawing upon secondary data sources such as from the Ministry of Education, budget statements from the Ministry of Finance, as well as relevant policy documents. Additional information for the study was also extracted from the manifestos of the two leading political parties in Ghana – the New Patriotic Party and the National Democratic Congress and their viewpoints on financing of education in Ghana.FindingsUsing two epochal years when financing of education peaked (2008 and 2012), which coincided with election years, the trend lends itself to being interpreted as opportunistic spending. It appears to give credence to a conclusion that the increases in spending are more politically directed and nonneutral.Originality/valueThis paper fulfills an identified need to study the trend of basic education financing in Ghana, which will help policy actors make better-informed decisions with the introduction of the novel “adaptive opportunism” framework analysis tool.
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148
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Gao Y, Tang Y, Zhang J. CEO financial background, managerial ownership, and corporate innovation: Insights from imprinting theory. Front Psychol 2023; 14:1126853. [PMID: 36865362 PMCID: PMC9971491 DOI: 10.3389/fpsyg.2023.1126853] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 12/18/2022] [Accepted: 01/30/2023] [Indexed: 02/16/2023] Open
Abstract
The global ecological environment is facing increasingly severe challenges; therefore, it is crucial to implement sustainable development policies and promote corporate innovation. Based on imprinting theory, we examine the relationship between CEO financial background and corporate innovation within the Chinese context. The results confirm that CEOs with a financial background negatively impact corporate innovation, while managerial ownership mitigates this effect. Existing literature has considered the impact of CEO background on corporate innovation; however, it mainly takes up corporate innovation from the perspective of upper-echelon theory. In addition, the mechanism of CEO financial background on corporate innovation is ambiguous in the Chinese cultural context. This study enriches the literature on the relationship between the characteristics of CEO background and corporate behavior, thereby offering guidance for corporate innovation practices.
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Affiliation(s)
| | | | - Jiruo Zhang
- Department of Accounting, Qingdao University, Qingdao, China
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149
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Chen H, Deng W. Interpretable patent recommendation with knowledge graph and deep learning. Sci Rep 2023; 13:2586. [PMID: 36788243 PMCID: PMC9929065 DOI: 10.1038/s41598-023-28766-y] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 11/02/2022] [Accepted: 01/24/2023] [Indexed: 02/16/2023] Open
Abstract
Patent transfer is a common practice for companies to obtain competitive advantages. However, they encounter the difficulty of selecting suitable patents because the number of patents is increasingly large. Many patent recommendation methods have been proposed to ease the difficulty, but they ignore patent quality and cannot explain why certain patents are recommended. Patent quality and recommendation explanations affect companies' decision-making in the patent transfer context. Failing to consider them in the recommendation process leads to less effective recommendation results. To fill these gaps, this paper proposes an interpretable patent recommendation method based on knowledge graph and deep learning. The proposed method organizes heterogeneous patent information as a knowledge graph. Then it extracts connectivity and quality features from the knowledge graph for pairs of patents and companies. The former features indicate the relevance of the pairs while the latter features reflect the quality of the patents. Based on the features, we design an interpretable recommendation model by combining a deep neural network with a relevance propagation technique. We conduct experiments with real-world data to evaluate the proposed method. Recommendation lists with varying lengths show that the average precision, recall, and mean average precision of the proposed method are 0.596, 0.636, and 0.584, which improve corresponding performance of best baselines by 7.28%, 18.35%, and 8.60%, respectively. Besides, our method interprets recommendation results by identifying important features leading to the results.
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Affiliation(s)
- Han Chen
- grid.263785.d0000 0004 0368 7397College of Teacher Education, South China Normal University, Guangzhou, China
| | - Weiwei Deng
- School of Economics and Management, South China Normal University, Guangzhou, China.
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150
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La Rocca M, Fasano F, La Rocca T, Neha N. Women in CEO duality and firm performance in Europe. J Manag Gov 2023. [DOI: 10.1007/s10997-023-09669-6] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 02/15/2023]
Abstract
AbstractThis paper investigates gender dimensions in the relationship between CEO duality and firm performance, combining feminist theories and stewardship arguments. Using a large sample of listed firms from 23 European countries in the 2014–2020 period, we have found that CEO duality has a positive effect on corporate performance when a woman holds both the roles of CEO and board chair. These findings highlight the ‘bright side’ of women in governance, suggesting the presence of women in double leadership positions can amplify benefits and/or limits costs related to CEO duality. Having a woman in CEO-chair leadership could optimize a firm’s use of its resources and more effectively contribute to improving performance. Directions for future research could include a better understanding of women in leadership in the organizational domain. Our results have a number of managerial and political implications.
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