Corporate governance, enterprise risk management, and inter-temporal risk transfer

This work is an initial attempt to describe the interconnections among corporate governance, enterprise risk management, and the phenomena of inter-firm risk transfer that occurs in combination with firms’ income smoothing. Corporate governance is conceived as a set of rules according to which a firm is managed and governed by its top managers. Extant literature on corporate governance has pointed out the benefits of the adoption, at a firm level, of a comprehensive enterprise risk management process. We note that, although such an adoption favors the smoothing of a firm’s income, in smoothing the income a firm, it also gives rise to an inter-temporal transfer of risk from the firm itself to its stakeholders, specifically to suppliers and employees. Such transfer of risk depends on the strength of a firm contractual power and on the structural relationships established by a firm with its stakeholders. We therefore argue that larger-sized organizations affiliated with a business group are likely to smooth income to a greater extent than smaller-sized organizations unaffiliated with a business group. The paper also offers some discussions of the findings and points out some important issues to be addressed in future studies

Enterprise Risk Management, Corporate Governance And Systemic Risk: Some Research Perspectives

The general goal of Enterprise Risk Management (ERM) processes is to generate economic value through the coverage of firm business risk, on the one hand, and by exploiting the positive side of uncertainty conditions, on the other hand. The increasing attention attributed to ERM in the creation of economic value has led to even greater interactions between risk management mechanisms and the corporate governance system. In other words, in the last two decades, the relationships between corporate governance and ERM increased since the ERM processes have been considered more and more as critical drivers to combine strategic objectives with relative low volatility of company performance. The basic idea is that a good corporate governance system must deal about specific risks along with their interactions and, at the same time, the firm’s business risk as a whole. Moreover, an efficient and effective ERM system provides clear information about linkages between strategic opportunities and risk exposure and offers tools able to manage in an optimal way the negative side of business risk (or downside risk) as wellas its positive side (or upside risk). Accordingly, extant studies concerning the relationships between ERM and corporate governance have been focusing on a micro-level of analyses (i.e., the individual organization) and, specifically, on a firm’s benefits that stem from the adoption of proper ERM processes that are consistent with corporate governance goals and are able to sustain the increase of economic value while maintaining a bearable business risk over time. From our initial analyses, a gap in literature arises. We argue that the interdependence between ERM and corporate governance may be analyzed from a broader point of view as well (i.e., the firm and its task environment composed by its suppliers, customers, and partners). In particular, our research idea is to enlarge traditional studies about interrelations between corporate governance and ERM taking into account whether such interrelations could be a driver of risk transfer from the focal organization to other organizations that belong to its task environment. Moreover, this study aims to deepen the mechanisms by which the transfer of risk from a focal organization to its task environment may foster the emergence of systemic risk, i.e., a macro risk coming from domino and/or network effects. Therefore, our paper aims to find new research areas by combining micro and macro issues tied to corporate governance, ERM and systemic risk. The starting point of our work is the three following assumptions: 1) The compliance of a firm to ERM processes as well as to corporate governance rules implies the reduction as much as possible of firm business risk; 2) The reduction of the firm business risk leads to externalizing the firm business risk through risk-sharing mechanisms; 3) The risk-sharing may arise like a driver of systemic risk especially in those industries featured by strong network interrelations. Starting from the above assumptions, the paper goal is to open a new research area which combines four academic fields (ERM, corporate governance, corporate finance, and macro-finance). So far, our initial findings tell us that the following research questions arise: RQ1: What are the conditions under which the transfer of business risk towards organizations that belong to a firm task environment is likely to become a source of systemic risk in a specific industry? RQ2: How does the capital structure of a focal firm affect its propensity to transfer business risk not only to commercial but also to financial stakeholders included in firm task environment? RQ3: How does the transfer of business risk influence the capital cost of the focal firm as well as of the organizations that absorbed such risk

Protective Effects of Quercetin on Rat Pial Microvascular Changes during Transient Bilateral Common Carotid Artery Occlusion and Reperfusion

The aim of this study was to assess the in vivo effects of quercetin on pial microvascular responses during transient bilateral common carotid artery occlusion (BCCAO) and reperfusion. Rat pial microcirculation was visualized by fluorescence microscopy through a closed cranial window. Pial arterioles were classified in five orders of branchings. Capillaries were assigned order 0, the smallest arterioles order 1, and the largest ones order 5. In ischemic rats, 30 min BCCAO and 60 min reperfusion caused arteriolar diameter decrease (by 14.5 ± 3.3% of baseline in order 2), microvascular leakage [0.47 ± 0.04, normalized gray levels (NGL)], leukocyte adhesion in venules (9 ± 2/100 μm venular length, v.l./30 s), and reduction of capillary perfusion (by 40 ± 7% of baseline). Moreover, at the end of BCCAO and reperfusion there was a significant increase in reactive oxygen species (ROS) formation when compared with baseline. Quercetin highest dose determined dilation in all arteriolar orders (by 40 ± 4% of baseline in order 2) and prevented microvascular permeability (0.15 ± 0.02 NGL), leukocyte adhesion (3 ± 1/100 μm v.l./30 s) as well as ROS formation, while capillary perfusion was protected. Inhibition of endothelial nitric oxide synthase (NOS) prior to quercetin reduced arteriolar dilation (order 2 diameter increase by 10.3 ± 2.5% of baseline) and caused permeability increase (0.29 ± 0.03 NGL); inhibition of neuronal NOS or inducible NOS did not affect quercetin-induced effects. Inhibition of guanylyl cyclase prior to quercetin reversed the quercetin’s effects on pial arteriolar diameter and leakage. In conclusion, quercetin was able to protect pial microcirculation from ischemia–reperfusion damage inducing arteriolar dilation likely by nitric oxide release. Moreover, quercetin scavenger activity blunted ROS formation preserving the blood–brain barrier integrity

Letteratura e prospettive emergenti sul rapporto fra innovazione e competizione fra imprese

L'obiettivo del lavoro è di identificare e argomentare i contributi più significativi pubblicati nelle riviste Research Policy e European Journal of Innovation Management, rilevanti ai fini di una interpretazione del rapporto tra innovazione e competitività. Alcuni principali temi emersi dallo studio sono: 1) l'evoluzione da innovazione di prodotto a innovazione di mercato; 2) i requisiti per l'implementazione dell'innovazione; 3) i fenomeni di "conservazione" nell'impresa; 4) l'innovazione come "solution provider"; 5) "solution innovation" come nuovo paradigma per la competitività; 6) gli orientamenti all'innovazione. L'analisi dei contributi permette di individuare alcune interessanti ambiti per future ricerche

Rat Pial Microvascular Responses to Transient Bilateral Common Carotid Artery Occlusion and Reperfusion: Quercetin’s Mechanism of Action

The aim of the present study was to assess quercetin’s mechanism of action in rat pial microvessels during transient bilateral common carotid artery occlusion (BCCAO) and reperfusion. Rat pial microcirculation was visualized using fluorescence microscopy through a closed cranial window. Pial arterioles were classified in five orders of branchings. In ischemic rats, 30 min BCCAO and 60 min reperfusion caused arteriolar diameter decrease, microvascular leakage, leukocyte adhesion in venules, and reduction of capillary perfusion. Quercetin highest dose determined dilation in all arteriolar orders, by 40 ± 4% of baseline in order 2 vessels, and prevented microvascular permeability [0.15 ± 0.02 normalized gray levels (NGL)], leukocyte adhesion, and capillary failure. Protein kinase C (PKC) inhibition exerted by chelerythrine prior to quercetin attenuated quercetin-induced effects: order 2 arterioles dilated by 19.0 ± 2.4% baseline, while there was an increase in permeability (0.40 ± 0.05 NGL) and leukocyte adhesion with a marked decrease in capillary perfusion. Tyrosine kinase (TK) inhibition by tyrphostin 47 prior to quercetin lessened smaller pial arterioles responses, dilating by 20.7 ± 2.5% of baseline, while leakage increased (0.39 ± 0.04 NGL) sustained by slight leukocyte adhesion and ameliorated capillary perfusion. Inhibition of endothelium nitric oxide synthase (eNOS) by NG-nitro-L-arginine-methyl ester (L-NAME) prior to PKC or TK reduced the quercetin’s effects on pial arteriolar diameter and leakage. eNOS inhibition by L-NAME reduced quercetin effects on pial arteriolar diameter and leakage. Finally, combined inhibition of PKC and TK prior to quercetin abolished quercetin-induced effects, decreasing eNOS expression, while blocking ATP-sensitive potassium (KATP) channels by glibenclamide suppressed arteriolar dilation. In conclusion, the protective effects of quercetin could be due to different mechanisms resulting in NO release throughout PKC and TK intracellular signaling pathway activation

Darwinism, organizational evolution and survival: key challenges for future research

How do social organizations evolve? How do they adapt to environmental pressures? What resources and capabilities determine their survival within dynamic competition? Charles Darwin’s seminal work The Origin of Species (1859) has provided a significant impact on the development of the management and organization theory literatures on organizational evolution. This article introduces the JMG Special Issue focused on Darwinism, organizational evolution and survival. We discuss key themes in the organizational evolution research that have emerged in recent years. These include the increasing adoption of the co-evolutionary approach, with a particular focus on the definition of appropriate units of analysis, such as routines, and related challenges associated with exploring the relationship between co-evolution, re-use of knowledge, adaptation, and exaptation processes. We then introduce the three articles that we have finally accepted in this Special Issue after an extensive, multi-round, triple blind-review process. We briefly outline how each of these articles contributes to understanding among scholars, practitioners and policy makers of the continuous evolutionary processes within and among social organizations and systems

Dalla Crisi dell'impresa-guida alla crisi della rete di impresa: verso un modello di analisi

Obiettivo del presente lavoro è l’analisi degli effetti della crisi dell’impresa guida sulla rete di relazioni da essa governata. In tale ottica, il tema è rilevante sia dal punto di vista teorico, sia in ragione della sua grande attualità. In relazione agli aspetti teorici, il concetto ed il ruolo dell’“impresa guida” sono stati oggetto di diversi studi che hanno efficacemente qualificato una serie di aspetti caratterizzanti il fenomeno. Ci riferiamo, ad esempio, ai concetti di indotto - riferito a quelle unità di business che si collocano funzionalmente “intorno” ad un’impresa centrale secondo un modello strutturale definibile di costellazione (LORENZONI, 1990) - di impresa motrice - che sottolinea il ruolo guida nei processi di sviluppo (PERROUX, 1966) - di unità centrale di governo di un sistema di relazioni interaziendali (DIOGUARDI, 1982), di convinzioni, esperienze, orientamenti di fondo o idee - maturate all’interno dell’impresa guida, secondo cui gli obiettivi, la posizione strategica e il vantaggio rispetto ai concorrenti si realizzano attraverso forme di relazioni forti, di accordi con imprese terze, di assetti organizzativi congruenti (FAZZI, 1982; CODA, 1988; NORMANN, 1979), - di industrial network - che riferisce al peso specifico delle relazioni interaziendali, al loro impatto sulla creazione di informazioni, sui comportamenti innovativi, sui vincoli organizzativi (IMAI, 1986) - di referent organisation - per indicare implicitamente l’esistenza di un punto di riferimento o comunque di nodi di governo delle relazioni che risultano utili, in specie, sotto il profilo progettuale (TRIST, 1983) -. Tali connotazioni rappresentano la base portante e solida del presente contributo in quanto risolvono, dal punto di vista della qualificazione, un accettabile “oggettività” di osservazione. Contestualizzando, tra l’altro, il fenomeno alla realtà del nostro Paese, i dati relativi ai rapporti costi esterni/fatturato e valore aggiunto/fatturato supportano, quantitativamente, il crescente interesse per il fenomeno delle reti e delle relazioni tra imprese: per il primo rapporto, infatti, si è passati dal 72,1% del 1992 all’80% del 2000, mentre per il secondo, si è registrata una flessione, passando dal 33% del 1992 al 26,7% del 2000 (MEDIOBANCA, 2001). La rilevanza che assume il tema oggetto di indagine denuncia alcuni aspetti suscettibili di ulteriore approfondimento. Da un lato, si delinea sempre più la consapevolezza delle piccole imprese, soprattutto quelle che operano localmente, degli enormi vantaggi competitivi conseguibili attraverso l’adesione a network (METALLO, PENCARELLI, 1995). Dall’altro lato la partecipazione ad un network rende, tuttavia, le prestazioni della singola impresa dipendenti da quelle del network nel suo complesso