157 research outputs found
Corporate Governance, Managers’ Independence, Exporting And Performance Of Firms In Transition Economies
Using data on 157 large companies in Poland and Hungary this paper employs a Bayesian structural equation modeling to examine interrelationships between corporate governance, managers’ independence from owners in terms of strategic decision-making, exporting and performance. It is found that managers’ independence is positively associated with firms’ financial performance and exporting. In turn, the extent of managers’ independence is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm’s board. We interpret these results as an indication that (i) concentrated owners tend to constrain managerial autonomy at the cost of the firm’s internationalization and performance, (ii) board participation of foreign stakeholders, on the other hand, enhances the firm’s export orientation and performance by encouraging executives’ decision-making autonomy.corporate governance, strategic independence, exporting, performance
Keynes and the cotton industry: a reappraisal
The paper reinterprets Keynes’s analysis of the crisis in the Lancashire cotton industry in the 1920s. It presents empirical evidence showing that syndicates of local shareholders, but not the banks, were an important brake on firms exiting, at a time when exit barriers were otherwise unproblematic in this competitive industry. Moreover, syndicates milked firms of any profits through dividends, thereby limiting reinvestment and re-equipment possibilities. The case shows that where laissez-faire fails in response to a crisis, the associated response may need to assess both ownership structure and its relationship to competitive industry structure.
Finance and the multinational compangy: Building bridges between finance and global strategy research
This paper argues for, and contributes
to, a stronger integration of research on finance and
international business/global strategy. We perform bibliometric
analysis of journal publications between 2010 and
2016 and show that papers published in the two domains
relate to very different underlying literatures which, so far, have had a limited overlap. We further argue based on a
qualitative review of the literature that both fields offer substantial
novel perspectives, models, and theories to each
other that have the potential to enrich our theoretical understanding
of relevant research questions in both domains. We
map various pathways for further integration of international
business/global strategy and finance fields and discuss different
ways how to better connect the two fields and their
different research perspectives and research methodologies.
Managerial Summary: In this paper we, first, find that
publications from the field of finance and from the area of
international business/global strategy relate to very different
literatures. Second, we show that both fields would
indeed offer substantial and relevant novel perspectives to
each other. Third, we develop various pathways for a more
intense integration of both literatures. Given the relevance
of both international business/global strategy and finance
perspectives for business practice, we strongly believe that
a more intense integration also bears substantial implications
for managers. This is as much of the knowledge
developed in international business/global strategy and
finance did not fully transfer into the respective other field
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Extraction of private benefits of control by families: tunnelling and trading in a private information environment
Using a sample of Hong Kong listed companies we investigate how private benefits of control are extracted by a family via tunnelling and trading in shares. We find that family ownership is associated with entrenchment/liquidity-using effects, leading to tunnelling and trading by families. Family board overrepresentation is associated with entrenchment/liquidity-restricting effects, facilitating tunnelling but limiting market scrutiny via informed trading. Family board leadership leads to monitoring/liquidity-promoting effects that prevent tunnelling and promote the price discovery process. These effects differ between founder and heir-families. Tunnelling and trading are two independent mechanisms of rent extraction even after controlling for endogeneity
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Market Orientation, Growth Strategy, and Firm Performance: The Moderating Effects of External Connections
This study examines the mediating effect of growth strategy (including market and product expansion strategies) on the linkage of market orientation (MO) to firm performance and the moderating effects of a firm's external connections (including political and business ties) on the relationship between MO and growth strategy. It finds that both market and product expansion strategies are key conduits through which MO improves firm performance. In addition, the relationship between MO and market expansion strategy is positively moderated by political ties but negatively moderated by business ties, while the linkage of MO to product expansion strategy is moderated negatively by political ties but positively by business ties. By combining mediating and moderating effects in a framework that integrates MO, growth strategy, external connections, and firm performance, this study enriches our knowledge on the implications of MO and provides insight into factors that facilitate firm growth
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Ownership characteristics as determinants of FDI location decisions in emerging economies
Building on agency theory and international business research, this paper explores how parent firm and subsidiary ownership factors affect FDI location decisions in emerging economies. Our analysis suggests that ownerships of block-shareholders in the parent firm (i.e., controlling family, non-family TMT members and institutional investors) and equity stake in a subsidiary owned by the parent company are positively associated with FDI location decisions in less-explored and risky areas. However, the effects of parent firm and subsidiary ownership factors may substitute for each other with respect to their integrated effect on dealing with risks associated with FDI location decisions
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Ownership, financial strategy and performance: the Lancashire cotton textile industry, 1918–1938
This article assesses the validity of John Maynard Keynes' claim that the Lancashire cotton industry failed to restructure because the banks as debt holders prevented firms exiting the industry, creating persistent over-capacity. Using case studies from a substantial sample of Lancashire firms, the article explores archival evidence to establish their financial characteristics, to examine their equity and debt finance and the governance roles of directors and outside ownerhip groups. On the basis of this review the article develops hypotheses to suggest alternatives to the view that bank debt was the dominant explantion of firm level behaviour and industry failure. Applying these to a statistical dataset, results show that syndicates of local shareholders, not banks, were an important impediment to the exit of firms. Moreover, syndicates milked firms of any profits through dividends, thereby limiting reinvestment and re-equipment possibilities. Our results show that where laissez-faire fails in response to a crisis, incumbent investors, particularly block-holders, can be an important impediment to corporate restructuring
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