Sustainable Enterprise Value Creation

This Open Access book provides a practical guide to the creation of sustainable enterprise value and implementation of the principles of stakeholder capitalism for corporate boards and management teams. The authors argue that business leadership is on the threshold of a new era driven by major shifts in technology, society, political economy and climate change. They set this transition in international and historical context and outline a comprehensive leadership agenda for fully integrating environmental, social, governance (ESG) and data stewardship risks and opportunities into corporate governance, strategy, reporting and partnerships. This systematic approach is illustrated with good practices by leading companies and includes an explanation of how sustainability reporting is making the leap into formal accounting standards set by the same body that oversees international financial accounting standards and what companies should do to prepare. The book’s combination of scholarly analysis and practical guidance make it a valuable resource for anyone seeking to navigate the new business context, whether from the perspective of a board director, C-suite executive, manager, policymaker, scholar or student. This is an open access book

Efficacia nelle valutazioni del metodo dei multipli di mercato. Una verifica empirica sul mercato Italiano

The purpose of this paper is twofold. First, test on a sample of companies listed on the Milan stock exchange, the effectiveness of the main multiples (price/earnings, price/book value, price/sales, enterprise value/sales, enterprise value/book value, enterprise value/EBIT, enterprise value/EBITDA, enterprise value/free cash flow) in determining of firm value. Secondly, analyze how factors such as sector, size and year bias this outcomes. The results show that the multiple based on cash flows are almost always significant; the multiple based on earnings are more significant in industrial sectors and in particular for small firms and with many intangible asset; the multiples on book value appear more effective for non-industrial firms

Lean Enterprise Value (LEV) Simulation

The Lean Enterprise Value (LEV) simulation is a unique tool for demonstrating the value, and challenges, of implementing lean principles and practices at the enterprise level. It currently comprises four modular simulations developed on a foundation of insights gained through more than 11 years of intensive research and Lean Aerospace Initiative consortium real-world experience. It is a complete, flexible simulation of a complex enterprise, which allows hands-on lessons in lean improvement

Capitalisation of research and development investment and enterprise value: a study on the threshold effect based on level of financialisation

This study uses a mathematical model to explore how enterprises’ financialisation levels affect the role of research and development (R&D) investment capitalisation in enterprise value. We construct a mathematical model involving the financialisation level, capitalised R&D investment, and enterprise value. The sample comprises A-share listed companies that disclosed the capitalisation of R&D investment in the Shanghai and Shenzhen stock markets from 2014 to 2020. The results suggest that R&D investment capitalisation positively impacts enterprise value, especially in the current phase. With financialisation level as the threshold variable, R&D investment capitalisation has a double threshold effect on enterprise value in the current and next phases. Additionally, corporate financial investment behaviour has a timely impact on capitalised R&D investment but does not significantly impact enterprise value in a future phase. Enterprises evidently choose financial investment to enhance enterprise value by increasing capitalised R&D investment. These results can help enterprises formulate financial asset investment strategies and promote their development from virtual to real. The government should standardise enterprises’ financial investment behaviour, prevent excessive financialisation, and promote high-quality development of the real economy

Carbon information disclosure of enterprises and their value creation through market liquidity and cost of equity capital

Purpose: Drawing on asymmetric information and stakeholder theories, this paper investigates two mechanisms, namely market liquidity and cost of equity capital, by which the carbon information disclosure of enterprises can benefit their value creation. Design/methodology/approach: In this research, web crawler technology is employed to study the link between carbon information disclosure and enterprises value creation，and the carbon information data are provided by all companies listed in Chinese A-share market Findings: The results show that carbon information disclosure have significant positive influence on enterprise value creation, which is embodied in the relationship between carbon information disclosure quantity, depth and enterprise value creation, and market liquidity and cost of equity capital play partially mediating role in it, while the influence of carbon information disclosure quality and concentration on enterprise value creation are not significant in statistics. Research limitations/implications: This paper explains the influence path and mechanism between carbon information disclosure and enterprise value creation deeply, answers the question of whether carbon information disclosure affects enterprise value creation or not in China.Practical implications: This paper finds that carbon information disclosure contributes positively to enterprise value creation suggests that managers can reap more financial benefits by disclosing more carbon information and investing carbon emissions management. So, managers in the enterprises should strengthen the management of carbon information disclosure behavior. Originality/value: The paper gives a different perspective on the influence of carbon information disclosure on enterprise value creation, and suggests a new direction to understand carbon information disclosure behavior.Peer Reviewe

Carbon information disclosure of enterprises and their value creation through market liquidity and cost of equity capital

Purpose: Drawing on asymmetric information and stakeholder theories, this paper investigates two mechanisms, namely market liquidity and cost of equity capital, by which the carbon information disclosure of enterprises can benefit their value creation. Design/methodology/approach: In this research, web crawler technology is employed to study the link between carbon information disclosure and enterprises value creation，and the carbon information data are provided by all companies listed in Chinese A-share market Findings: The results show that carbon information disclosure have significant positive influence on enterprise value creation, which is embodied in the relationship between carbon information disclosure quantity, depth and enterprise value creation, and market liquidity and cost of equity capital play partially mediating role in it, while the influence of carbon information disclosure quality and concentration on enterprise value creation are not significant in statistics. Research limitations/implications: This paper explains the influence path and mechanism between carbon information disclosure and enterprise value creation deeply, answers the question of whether carbon information disclosure affects enterprise value creation or not in China.Practical implications: This paper finds that carbon information disclosure contributes positively to enterprise value creation suggests that managers can reap more financial benefits by disclosing more carbon information and investing carbon emissions management. So, managers in the enterprises should strengthen the management of carbon information disclosure behavior. Originality/value: The paper gives a different perspective on the influence of carbon information disclosure on enterprise value creation, and suggests a new direction to understand carbon information disclosure behavior.Peer Reviewe

Cost management implementation based on the balanced scorecard

The problem of raising the value of the machine-building enterprises, as the basic industry of the national economy has become vital. The article discusses the implementation of the concept of cost management based on the Balanced Scorecard. Integrating value-based management concept with a balanced scorecard becomes more effective due to the formalization of the strategy of financial and non-financial indicators of enterprise value creation. In the process of implementation of strategy aimed at increasing enterprise value, using balanced scorecard and factor models, enterprise value indicators are forecasted

Effectiveness of Internal Control, Financing Constraints and Corporate Value

Internal control plays an important role in corporate governance, and it will have an important impact on enterprise value. This paper chooses 16362 samples from 2009 to 2016 in Shanghai and Shenzhen as the research object, discusses the influence mechanism of the effectiveness of internal control on the enterprise value, and explores the effect path of the effectiveness of internal control on enterprise value from the perspective of financing constraints. The results show that: first, the effectiveness of internal control contributes to the value creation of enterprises, after using 3SLS and fixed effects model to control possible endogeneity problems, the conclusions are still robust; second, financing constraints are effective paths for the effectiveness of internal control to influence enterprise value. The effectiveness of internal control can help enterprises achieve value growth by easing the financing constraints of enterprises. This paper enriches the theory of the internal control of the economic consequences, reveals the governance effectiveness of financing constraints in the effectiveness of internal control ,and provides useful inspiration for promoting China's internal control construction. Keywords: Effectiveness of Internal Control, Enterprise Value, Financing Constraints, Function Path