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Public social spending, government effectiveness, and economic growth: an empirical investigation
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Japan, the sustainable society: the artisanal ethos, ordinary virtues, and everyday life in the age of limits
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Multi-stakeholder networks as learning settings towards pro-environmental entrepreneurship: Learning through the diversity and policy–practice interface
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
The article explores the value of stakeholder diversity for learning towards pro-environmental entrepreneurship in multi-stakeholder networks (MSNs). Networks are viewed as entrepreneurial learning settings where stakeholder diversity frames the access to knowledge, practice and stakeholder dialogues. A qualitative case study research design is used to explore the experiences of learning towards pro-environmental entrepreneurship across 15 organisations as part of a well-established MSN with over 140 members operating in the Midlands. Stakeholder dialogues are identified as a significant feature of the MSN and reveal the policy–practice interface. The article shows how learning in MSNs is informed by the policy–practice interface, and as such expose the policy–practice gap and orient entrepreneurial behaviour. A view of an MSN as a dynamic learning system that brings together, often conflicting, agendas of environmental stakeholders and supports development of pro-environmental entrepreneurshipas a pathway to sustainable regional development is argued. Policy makers and business support agencies are advised to pay a close attention to MSNs as mechanisms for the development of entrepreneurial activity which is policy attuned, practice informed and environmental sustainability oriented.
The article explores the value of stakeholder diversity for learning towards pro-environmental entrepreneurship in multi-stakeholder networks (MSNs). Networks are viewed as entrepreneurial learning settings where stakeholder diversity frames the access to knowledge, practice and stakeholder dialogues. A qualitative case study research design is used to explore the experiences of learning towards pro-environmental entrepreneurship across 15 organisations as part of a well-established MSN with over 140 members operating in the Midlands. Stakeholder dialogues are identified as a significant feature of the MSN and reveal the policy–practice interface. The article shows how learning in MSNs is informed by the policy–practice interface, and as such expose the policy–practice gap and orient entrepreneurial behaviour. A view of an MSN as a dynamic learning system that brings together, often conflicting, agendas of environmental stakeholders and supports development of pro-environmental entrepreneurshipas a pathway to sustainable regional development is argued. Policy makers and business support agencies are advised to pay a close attention to MSNs as mechanisms for the development of entrepreneurial activity which is policy attuned, practice informed and environmental sustainability oriented.
Exit as governance: The effect of stock liquidity on firm productivity
Abstract
This study examines the effect of stock liquidity on firm productivity. Our findings indicate that stock liquidity positively affects firm productivity. Our study provides several pieces of evidence to show that stock liquidity enhances firm productivity through facilitation of corporate governance by shareholders and stock price efficiency. Additionally, we confirm that the impact of stock liquidity on productivity is more pronounced for firms with lower attendance at shareholder meetings, with less financial constraints and that are state-owned enterprises. This study makes a valuable contribution to the existing literature by presenting novel evidence regarding the influence of stock liquidity on firm productivity in emerging markets.
Influence of the cash conversion cycle on firm’s financial performance: Evidence from publicly traded firms in the Latin American context
Abstract
This study investigates the relationship between the cash conversion cycle (CCC) and the financial and market performances of publicly traded” firms in six Latin American (LatAm) countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The analysis covers the period from 2000 to 2018. The results indicate that increases in CCC negatively impact the generation of operating cash flows and long-term investments, and increase financial risk. Other findings suggest that the mechanisms through which CCC affects a firm's financial performance can provide a satisfactory explanation of its market performance. The evidence is consistent with the hypothesis that CCC is a relevant driver of value in working capital management in undeveloped or emerging economies.
Transparency or ambiguity? Voluntary IFRS adoption and earnings management in Japan
Abstract
This study examines the mechanism of voluntary IFRS adoption on earnings management in Japan. Limited research clarifies how IFRS adoption influences earnings management. Using data from listed firms between 2011 and 2018, the multivariate regression results suggest that voluntary IFRS adoption in Japan increases the extent of discretionary accruals. Furthermore, the relation becomes more pronounced when firms have greater accounting opportunities and stronger cost incentives. The main findings hold after various robustness tests. This study fills the gap in the literature by investigating the mechanism that IFRS adoption enhances opportunities and motivation for earnings management through accounting ambiguity.
Are co‐opted boards socially responsible?
Abstract
Corporate resolution on environmental, social, and governance (ESG) communication informs firms' environmental commitment, a growing determinant of corporate risk profile perceived by the market. This study examines ESG reporting in the presence of board co-option, a phenomenon that paralyzes the dependency of the board of directors and impairs corporate transparency. Using data from 643 US-listed firms from 2007 to 2018, we investigate the relationship between board co-option and ESG disclosure practices and show that firms with a higher proportion of co-opted directors on board disclose less ESG information, though this relationship diminishes if firms are strong ESG reporters. Further analyses reveal that long-tenure board chairs, high attendance rates at board and audit committee meetings, and independent chairs of audit committees mitigate this adverse effect. In addition, we document an increasing inverse relationship among firms located in more corrupt and Democratic-leaning states and operating in heavy-emitting industries. Our results support the premise that co-opted directors insulate CEOs from ESG reporting pressure and highlight that corporate governance, environmental performance as well as state institutions play significant moderating roles in this relationship.
Value relevance of IFRS 9: The influence of country factors and heterogeneous strengths in the European banking sector
Abstract
This study focuses on investor reactions to financial instrument recognition and measurement in the banking sector under the new International Financial Reporting Standard (IFRS) 9, Financial Instruments. The research tests the combined value relevance of accounting numbers before and after the mandatory transition to IFRS 9 in Europe. Furthermore, we verify the influence of country factors and heterogeneous strengths on the value relevance of the aforementioned standard. To this end, we adopt a sample consisting of 215 banks listed in Europe, for the years 2015–2020. We find a significant change in the explanatory power of value-relevance regressions in 2015–2017 compared to 2018–2020. In addition, we find that accounting numbers have incremental value relevance in countries characterized by “good” governance indicators and high heterogeneous strength, namely investors pay attention to the strength of the bank authority. This study makes three main contributions to the literature. First, it complements the IFRS 9 literature by providing new evidence. Second, its insights can be used to support investment decisions. Last, the findings help regulators and standard-setters to verify the impact of the new measures delineated by the standard.
Does SDG disclosure reflect corporate underlying sustainability performance? Evidence from UN Global Compact participants
Abstract
The 2030 United Nations (UN) Agenda for Sustainable Development has posed unprecedented challenges to businesses to integrate Sustainable Development Goals (SDGs) concerns into their core operations and strategies and improve their transparency on SDG commitment toward investors and other stakeholders. However, prior studies have questioned the significance of firms' SDG disclosure practices, evidencing their inadequacy. Nevertheless, despite the burgeoning SDG disclosure literature, the extent to which SDG disclosure effectively reflects corporate sustainability performance is still unclear. Accordingly, using data from a large panel data set comprising 635 companies from 45 world countries and 8 industry sectors over the period 2016–2020, this study investigates the relationship between corporate environmental, social and governance (ESG) performance and sustainable development goals (SDGs) disclosure. Voluntary SDG disclosure has been measured using a disclosure index based on each company's response to the uniform and well-designed communication on progress (CoP) questionnaire drafted annually by business participants in the United Nations Global Compact (UNGC). Several panel Tobit regressions have been estimated to examine whether the level of SDG disclosure retrieved from the CoPs reflects underlying corporate sustainability performance measured by total and individual ESG scores provided by the Refinitiv Eikon database. The study's findings provide robust empirical evidence that sustainability performance positively affects SDG disclosure, especially through environmental and social channels. Therefore, in line with the voluntary disclosure theory's arguments, this study highlights that superior sustainability performers provide more SDG disclosure to prove their high performance and distinguish themselves in the eyes of investors and other stakeholders.