Technological breadth and depth of knowledge in innovation: the role of mergers and acquisitions in biotech

We analyze the diffusion and integration of external knowledge by distinguishing between the depth and breadth of technological knowledge in combination with the type of partner and channel of exchange. Using a latent variable structural equation model with a sample of 202 US biotechnology firms between 1990 and 2009, we investigate the extent to which the mergers and acquisitions with different partners contribute to the depth and breadth of the focal firm's knowledge base. Our analysis also addresses potential endogeneity issues and shows that acquisitions of related firms mainly increase the depth of knowledge, while acquisitions of unrelated firms develop the breadth of knowledge

Gender inequality and disabled inclusivity in accounting higher education and profession during financial crisis

In this paper, we find that during financial crises, the wage gap between female and male accounting professionals reduces and affects gender inequality in higher education. In addition, less support and lower wages for disabled accounting professionals demotivate disabled students in accounting higher education. Because of budget cuts during financial crisis, universities limit their support to women and the disabled. We consider 104 universities from the UK Higher Education Statistic Agency (HESA) database for 2005– 2011. The theoretical and empirical findings of this paper establish the positive growth in female students and the negative growth in disabled accounting students during the recent financial crisis. The established link between higher education and the accounting profession enriches the existing accounting literature and assists policymakers in identifying a better strategy to enhance equality and inclusion of disabled students in accounting higher education to address inequality and non-inclusivity in the accounting profession, especially during financial crisis

Post Covid-19 and business analytics

This paper highlights the way companies can apply artificial intelligence (AI) in the post Covid-19 period. We show that how the AI can be advantageous to develop an inclusive model and apply to the businesses of various sizes. The recommendation can be beneficial for academic researchers to identify several ways to overcome the obstacles that companies may face in post Covid-19 period. The paper also addresses few major global issues, which can assist the policy makers to consider developing a business model to bounce back the world economy after this crisis is over. Overall, this paper enhances the understanding of stakeholders of business about the importance of application of the AI in businesses in a volatile market in post Covid-19 period

Innovation and family ownership: empirical evidence from India

Manuscript Type Empirical Research Question/Issue This study examines the direct effect of family ownership on innovation in emerging markets by using data from Indian family-controlled publicly listed firms as its sample. In particular, we study (1) the direct effects of family ownership on innovation and (2) the influences of business group affiliation on these family firms. Research Findings/Insights Using an unbalanced panel of 395 Bombay Stock Exchange (BSE) listed Indian firms during the years 2001 and 2008, we found that the impact of family ownership on innovation productivity is positive (after controlling for possible endogeneity). We further emphasized the business group affiliation of family firms and distinguished between the innovation activities of group-affiliated and stand-alone family firms. We found that affiliating with top 50 business groups increases the innovation activities of these family firms. Theoretical/Academic Implications Theoretically, we complement agency theory by incorporating both the institutional perspective and the external resourcing perspective to provide a more robust framework for examining the impact of family ownership on innovation in emerging markets. Methodologically, we adopted a more rigorous econometrics method by providing a panel analysis that used a system GMM estimator and addressed the endogeneity issue thoroughly, which represented a significant improvement over the shortcomings of the methodologies found in the existing literature. Practitioner/Policy Implications Our findings suggest that the Indian government should provide support for affiliating family firms with business groups while improving policies on information disclosures; it should also establish a proper corporate governance mechanism for private and public family business. The findings further suggest that a corporate governance code should encourage family firms to have an independent professional CEO

Lessons from COVID-19 and a resilience model for higher education

In this article, the authors first highlight major challenges that higher education institutions (HEIs) are facing during the Covid-19 pandemic. They then consider the challenges HEIs should expect in the post-Covid period. In practice, HEIs s are keen to maintain their core activities during the pandemic and in this context the authors examine how institutions can continue their activities efficiently by addressing issues related to the potential socio-psychological damage to stakeholders in higher education. To answer this question, they recommend the application of an all-inclusive resilience model at the beginning of the recovery period to withstand the shock of the pandemic and show how an HEIs can apply the antifragile model for the advancement and betterment of the experience of individuals associated with it. The recommendations of the study contribute to the literature related to HEIs and the coronavirus and constitute practical guidance for a post-Covid model that may be followed by HEIs around the world

Influence of governance bundles and directors' social capital on cash holding in foreign cross-listed firms

This paper provides new evidence on how both governance bundles and directors’ social capital together can help to determine cash holdings for foreign cross-listed firms. Using a large cross-country sample of 1,677 publicly listed firms from 32 countries during the period of 2004 – 2015, we find a positive relationship between governance bundles and cash holdings for foreign cross-listed firms with higher directors’ social capital. We address potential issue of endogeneity. So, our findings are robust to alternative model specifications and instrumentations and alternative measure of social capital. The findings of our study contribute to the inconclusive decision in the academic literature related to cash holdings, governance bundles, and directors’ social capital, especially related to the foreign cross listed firms. In addition, the findings can assist the stakeholders of foreign cross-listed firms to understand the intention of the firms’ cash holdings and allow policy makers to identify the need of modification for governance structure by controlling the opportunistic behaviour of the firm manager

The performance of banks in the MENA region during the global financial crisis

This paper examines the impact of the global financial crisis on the banking sector in the Middle East and North Africa (MENA) region, as well as the main determinants of the profitability of both domestic and foreign banks. The empirical findings suggest that during the crisis the former outperformed the latter in that region. As for the determinants of profitability, size does not appear to play a role, whilst the liquidity ratio and net interest revenues seem to have a negative and positive effect respectively; GDP has a positive effect in the case of domestic banks

How does culture impinge upon managers' demeanor of earnings management? Evidence from cross-country analysis

We examine the impact of national culture on earnings. Specifically, we examine managers’ likelihood of using accrual or real earnings management and the role of culture on various attributes of earnings (accruals quality, persistence, smoothing, and predictability). We measure national culture using Hofstede’s six dimensions of culture (1984, 2001, and 2010). Using data from 36 countries during 1997-2018, we find that managers are likely to use both accruals and real earnings management in high power distance countries. In long-term oriented countries, managers are more likely to use real earnings management. In uncertainty avoidance countries, in high individualist countries, and in higher indulgent versus restraint countries, managers are less likely to use either type of earnings management. In masculine countries, managers tend to use lower accruals management rather and rely on production cost real earnings management. We also find the use of accruals management and the use of real earnings management are substitutes for each other. In addition, we are able to classify countries into four earnings quality groups based on the culture impact on the earnings attributes (primarily driven by accruals quality, predictability, and smoothing). Persistence is generally not significant in classifying countries by earnings attributes. Our findings indicate that a universal set of accounting standards is a challenging goal to achieve given the cultural diversity across countries. To improve the existing corporate governance framework and to ensure high quality and uniform financial statements, the enforcement of standards should be tailored to specific cultures, or at a minimum, corporate boards need to be more culturally diversified

Fair value in the professional valuation: concept and models

The Paper is on the subject of value measurement bases in Professional Valuation and, as such, also has a direct relevance for the field of Accounting Measurements. In this paper we, specifically, consider semantic and methodological features of Equitable/Fair value as a sui generis basis of valuation in the Professional valuation. As used in the field of Professional Valuation, Equitable/Fair value is the logically necessary basis for estimating values-in-exchange for illiquid assets traded on the markets where the operations of “the law of one price” are very weak. Its logical relevance is demonstrated with the aid of a tool based on Venn-diagrammatic approach (VDA). This VDA is also helpful in explaining in detail interrelationships between other valuation bases used in Professional Valuation. In particular, the article analyzes fair value estimating formulas based on the V. Galasyuk's approach and the Transactional Asset Pricing Approach. At the same time, the unavoidable economic and ethical nature of Fair value as used in Professional Valuation is emphasized, which becomes even more pronounced with the renaming of this valuation basis from Fair to Equitable Value in the International Valuation Standards (IVS) 2017 edition. The contribution of the Paper is in analyzing the main aspects of Fair value estimation theories that exist today in terms of where they fall in the normativist/positivist continuum of economic analysis and drawing into relief their distinguishing elements, while the proposed VDA tool can also find an application as a helpful tool for valuation and accounting measurements analyses. It is also hoped that the debates on Equitable/Fair value as they evolved in the field of Professional Valuation and the ensuing respective proposals in this Paper will help provide a new perspective enriching wider debates on Fair Value in the Accounting Measurements world