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

Open Innovation, ambiguity and technological convergence

Objectives. Current paper aims to provide a fresh conceptual framework on the relationship among open innovation, decision ambiguity, and technological convergence. We argue that there is a curvilinear relationship between open innovation and both technological convergence and ambiguity. Contained level of convergence and ambiguity foster open innovation, whilst an excess of them is an impediment to collaboration. Technological convergence further acts as a moderator for ambiguity, in light of the benefits of isomorphism. Methodology. We propose a conceptual framework for open innovation decisions after accurately reviewing the main literature antecedents. Findings. We suggest an inverse u-shaped relationship between open innovation and either ambiguity or technological convergence. Research limits. In future, the theoretical framework proposed by thus study has to be tested with robust and proper statistical techniques on large scale samples. Practical implications. The model offers a heuristic for open innovation decisions under ambiguity. Originality of the study. To the best of our knowledge, the relationship linking open innovation, technological convergence and ambiguity emerges as a literature gap. This study tackles this issue, proposing an interpretation for the analysis of alliances decision in innovation

A view from inside iron-based superconductors

Muon spin spectroscopy is one of the most powerful tools to investigate the microscopic properties of superconductors. In this manuscript, an overview on some of the main achievements obtained by this technique in the iron-based superconductors (IBS) are presented. It is shown how the muons allow to probe the whole phase diagram of IBS, from the magnetic to the superconducting phase, and their sensitivity to unravel the modifications of the magnetic and the superconducting order parameters, as the phase diagram is spanned either by charge doping, by an external pressure or by introducing magnetic and non-magnetic impurities. Moreover, it is highlighted that the muons are unique probes for the study of the nanoscopic coexistence between magnetism and superconductivity taking place at the crossover between the two ground-states.Comment: 28 pages, 18 figure

Critical chain length and superconductivity emergence in oxygen-equalized pairs of YBa2Cu3O6.30

The oxygen-order dependent emergence of superconductivity in YBa2Cu3O6+x is studied, for the first time in a comparative way, on pair samples having the same oxygen content and thermal history, but different Cu(1)Ox chain arrangements deriving from their intercalated and deintercalated nature. Structural and electronic non-equivalence of pairs samples is detected in the critical region and found to be related, on microscopic scale, to a different average chain length, which, on being experimentally determined by nuclear quadrupole resonance (NQR), sheds new light on the concept of critical chain length for hole doping efficiency.Comment: 7 RevTex pages, 2 Postscript figures. Submitted to Phys. Rev.

Evidence for impurity-induced frustration in La2CuO4

Zero-field muon spin rotation and magnetization measurements were performed in La2Cu{1-x}MxO4, for 0<x< 0.12, where Cu2+ is replaced either by M=Zn2+ or by M=Mg2+ spinless impurity. It is shown that while the doping dependence of the sublattice magnetization (M(x)) is nearly the same for both compounds, the N\'eel temperature (T_N(x)) decreases unambiguously more rapidly in the Zn-doped compound. This difference, not taken into account within a simple dilution model, is associated with the frustration induced by the Zn2+ impurity onto the Cu2+ antiferromagnetic lattice. In fact, from T_N(x) and M(x) the spin stiffness is derived and found to be reduced by Zn doping more significantly than expected within a dilution model. The effect of the structural modifications induced by doping on the exchange coupling is also discussed.Comment: 4 pages, 4 figure

Recent advances on the mechanisms regulating cholangiocyte proliferation and the significance of the neuroendocrine regulation of cholangiocyte pathophysiology

Cholangiocytes are epithelial cells lining the biliary epithelium. Cholangiocytes play several key roles in the modification of ductal bile and are also the target cells in chronic cholestatic liver diseases (i.e., cholangiopathies) such as PSC, PBC, polycystic liver disease (PCLD) and cholangiocarcinoma (CCA). During these pathologies, cholangiocytes (which in normal condition are in a quiescent state) begin to proliferate acquiring phenotypes of neuroendocrine cells, and start secreting different cytokines, growth factors, neuropeptides, and hormones to modulate cholangiocytes proliferation and interaction with the surrounding environment, trying to reestablish the balance between proliferation/loss of cholangiocytes for the maintenance of biliary homeostasis. The purpose of this review is to summarize the recent findings on the mechanisms regulating cholangiocyte proliferation and the significance of the neuroendocrine regulation of cholangiocyte pathophysiology. To clarify the mechanisms of action of these factors we will provide new potential strategies for the management of chronic liver diseases