The impact of corporate governance on firm perfomance: a case of CAC 40 Firms

There are several elements in business management that help increase financial efficiency, market positioning and overall firm performance which leads to generate confidence among investors, customers, suppliers and other stakeholders. One of these elements is corporate governance which covers the relationships between directors, the board, its shareholders and all those interested in the firm’s performance and therefore provides the necessary structure to define and execute the strategic objectives of the company as well as the control exercised over said execution. This study presents an assessment model based on supervisory board, investor relations, management team, and disclosure of information and analyses the relationship between different board systems, corporate governance and its characteristics with firm’s performance through the financial results of CAC 40 Firms

a case of CAC 40 Firms

There are several elements in business management that help increase financial efficiency, market positioning and overall firm performance which leads to generate confidence among investors, customers, suppliers and other stakeholders. One of these elements is corporate governance which covers the relationships between directors, the board, its shareholders and all those interested in the firm’s performance and therefore provides the necessary structure to define and execute the strategic objectives of the company as well as the control exercised over said execution. This study presents an assessment model based on supervisory board, investor relations, management team, and disclosure of information and analyses the relationship between different board systems, corporate governance and its characteristics with firm’s performance through the financial results of CAC 40 Firms

Voluntary disclosures as a form of impression management to reduce evaluative uncertainty during M&A

This study develops and tests a set of hypotheses on how to manage investors’ evaluative uncertainty during M&A through a specific form of impression management, namely, interim news events. We suggest that voluntary disclosures are key in influencing investors’ reactions during M&A. Empirical support for our theoretical arguments is shown in a sample of 36,376 deals and 163,023 associated interim news events carried out by NYSE and NSDQ listed organizations over 10 years. Our research contributes to literature on voluntary disclosures, impression management, and managing M&A

Signaling strategic commitment for organizational transition: how to manage potential M&As through voluntary disclosures

To ‘transit or not’ often depends upon winning over investor opinion to large strategic initiatives. M&A is one such major realignment of an organization and yet once a bid for a company has been announced there is a period of uncertainty when the bid may not be completed. This depends on share price movements determined more by investor perceptions than fundamental values. This paper investigates whether these perceptions may be influenced by ‘voluntary’ corporate communications and so link managerial practices to strategic outcomes. Drawing upon two very large M&A data sets (USA and UK) (57,000 deals; 30,000 communications) we argue managerial practice (signaling strategic commitment) shapes market response and demonstrate communication characteristics, and the use of high-reputation intermediaries, play an important role in determining share price reaction

Shareholder Activism and the Role of Marketing: A Framework for Analyzing and Managing Investor Relations

This paper proposes a conceptual framework that shows the role of (the) marketing (function) in managing investor relations. The framework complements existing literature on the marketing-finance interface and explicitly includes investor relationships as market-based assets. The framework provides (the) marketing (function) with tools to analyze and manage investor relations in order to improve companies’ market performance and increase shareholder value by lowering the costs of shareholder activism. Three real-life scenarios of shareholder activism demonstrate the implications of the framework for marketing practice.Strategy;

Workforce participation: developing a theoretical framework for longitudinal research

This paper describes and evaluates an action research project on workforce participation at Viewpoint Research Community Interest Company (CIC). By setting out the research protocols devised by Viewpoint to stimulate and study co-operative management, it is possible to abstract a theoretical framework that emerged from a pilot case study. The paper contributes to theory by highlighting not only the potential of action research to catalyse interest in co operative management but also how to engage theoretically with the paradox of a workforce voting to limit its own participation in ownership, governance and management. In this study, the authors interpreted that participants did not automatically equate participatory management with workplace democracy leading to a theoretical perspective that “democratic management is the propensity and capacity of management systems to respond to members’ desires regarding the scope, depth, level and quality of participation in management”. The paper concludes by evaluating the efficacy of Viewpoint’s action research methodology as a strategy for deepening knowledge on workforce participation in co-operatives and employee-owned businesses

Problems with extending conclusions between Bowman's paradox and Beta's death

This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruefli on the review of Bowman's paradox by Nickel and Rodríguez, published in the February 2002 issue of Omega. In their commentary, the authors describe an article, published in the 1992 issue of Decision Sciences but not covered by the review, and claim that they had previously overcome three of the outstanding problems noted in Nickel and Rodríguez's review. This reply to the commentary proves that the conclusions drawn in the review by Nickel and Rodríguez are relevant in spite of the Brockett et al. arguments against them. In this reply, we show that the paper by Brockett et al. neither explains Bowman's paradox nor resolves its underlying problems. First, the definitions of risk and return measures are mathematically linked, and second, a cross-sectional methodology is used. We also provide our opinion on what would be necessary to bear in mind in order to extend any conclusion from Bowman's paradox to beta's death and vice versa

Managing reputation for ‘good works’ while undertaking commercial activities: Communication best practice guidelines for charities

Charities and not-for-profit organisations have traditionally eschewed commercial operations in favour of direct fund-raising from supporters. Competitive pressures, however, are driving charities to take on ‘dual citizenship’ through activity in both profit (commercial) and nonprofit (voluntary) sectors. There has been little scholarly attention or professional focus on the impact that commercial trading by charities has on relations with key stakeholders, such as supporters, and upon the reputation of the community-focused organisations. This paper reports a case study of a UK charity and explores supporters’ perceptions of the impact of commercial trading upon the organisation’s reputation as well as their relationship and level of engagement with the organisation. It found that donors are in support of commercial activities, as long as these are aligned with the charity’s values. The study, however, also found that commercial activities should not deflect the charity from its perceived and announced mission

Managing reputation for ‘good works’ while undertaking commercial activities - communications best practice guidelines for charities

Charities and not-for-profit organisations have traditionally eschewed commercial operations in favour of direct fund-raising from supporters. Competitive pressures, however, are driving charities to take on ‘dual citizenship’ (Goodall 2000) through activity in both profit (commercial) and nonprofit (voluntary) sectors. There has been little scholarly attention or professional focus on the impact that commercial trading by charities has on relations with key stakeholders, such as supporters, and upon the reputation of the community-focused organisations. This paper reports a case study of a UK charity and explores supporters’ perceptions of the impact of commercial trading upon the organisation’s reputation as well as their relationship and level of engagement with the organisation. It found that donors are overwhelmingly in support of commercial activities, as long as these are aligned with the charity’s values. The study, however, also found that commercial activities should not deflect the charity from its perceived and announced mission

Predicting Performance Of Initial Public Offering (IPO) Firms: Should Human Resource Management (HRM) Be In The Equation?

Population ecology is utilized to understand the role of human resource management (HRM) in enhancing the performance of initial public offering (IPO) companies. This is done by examining the determinants of structural inertia and developing hypotheses on the relationship between HRM and organizational performance. The results indicate that two human resource variables (human resource value and organization-based rewards) predict initial investor reaction and long-term survival. The rewards variable negatively affects initial performance while positively impacting survival