•The nonlinear dependence structure of volatility is examined in seven Bitcoin markets.•Fractional long-range memory and inherent stochasticity is detected under four diverse distributional ...assumptions.•The values of measured entropy indicate a high degree of randomness in the series.•Bitcoin markets are highly disordered and risky, hence they cannot be considered suitable for hedging purposes.•Our results provide strong evidence against the efficient market hypothesis in Finance.
We investigate the nonlinear patterns of volatility in seven Bitcoin markets. In particular, we explore the fractional long-range dependence in conjunction with the potential inherent stochasticity of volatility time series under four diverse distributional assumptions, i.e., Normal, Student-t, Generalized Error (GED), and t-Skewed distribution. Our empirical findings signify the existence of long-range memory in Bitcoin market volatility, irrespectively of distributional inference. The same applies to entropy measurement, which indicates a high degree of randomness in the estimated series. As Bitcoin markets are highly disordered and risky, they cannot be considered suitable for hedging purposes. Our results provide strong evidence against the efficient market hypothesis.
Integrated reporting is a new reporting tool that includes financial and nonfinancial information, which represents a natural evolution of the corporate reporting movement. Although this practice has ...gained increasing attention in recent years, both from an academic and professional perspective, the quality of the reports still represents a critical aspect due to inadequate investigation. Only a few studies have focused on integrated reporting quality, and contributions on the effects of quality have been even rarer. This study aims to investigate on the impact of integrated reporting quality on the firm's cost of equity capital, owing to the paramount importance of this parameter for firms and investors. Our results highlight that integrated reporting quality has a significantly negative association with the cost of equity capital, suggesting that integrated reporting quality represents an innovative way to reduce the cost of equity. To our knowledge, this is the first study that examines the relationship between integrated reporting quality and a firm's cost of equity.
PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work ...examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.
In the past decade, digitalisation has gained the attention of both professionals and academics. Investors are increasingly taking into account information on firm digitalisation in their ...decision-making. However, this information is poorly captured through corporate disclosure. A scarcity of this information has further increased its value in investment choices. Dissemination of information about digitalisation can be a signal that companies send to investors with the hope of a positive effect on firm value. Despite its relevance, there are no studies on the relationship between information about digitalisation and firm value. This study aims to fill this gap by analysing the impact of the information about digitalisation provided directly or indirectly by companies through their website on firm value. The regression analysis, conducted on a sample of 114 international firms, shows the existence of a positive relationship, demonstrating how information about digitalisation is a means for companies to increase their value.
•Integrated reporting represents a new solution for companies to share intellectual capital information.•No studies examine the relationship between IC disclosure and firm value in the integrated ...reporting context.•Empirical findings provide support for the notion that a high quality of IC disclosure in integrated reports improves firm value.•The breakdown of the higher level of analysis further demonstrates that this positive impact is not exclusively tied to the overall quality of IC disclosure but also to the quality of every single type of IC information.
Due to the transition from a manufacturing-based to a knowledge-based economy, the relevance of intellectual capital (IC) in firm value creation processes has significantly increased. Considering that traditional financial disclosures do not contain IC-related information, various stakeholders have long asked companies to voluntarily disclose their intellectual resources for those to be incorporated into firm performance considerations and valuations. The advent of integrated reporting provides managers with an innovative tool to address IC disclosure. Nevertheless, despite research already focused on IC information in integrated reporting, knowledge regarding the benefits that companies enjoy through divulging IC-related information in integrated reports remains limited. To fill this gap, this study empirically analyses the impact of IC disclosure quality on firm value in the context of integrated reporting. Based on a sample of 110 companies, findings suggest a significantly positive relationship between all three components of IC (structural, human, social and relationship) and firm value, generating multiple implications for reporting entities, investors, regulators, and managers.
•A holistic approach to explain the key determinants of premia paid by acquirers, addressed by distinct literature streams, using a sample of 403 acquisition completed globally between 2007 and ...2015.•Higher premia are justified for larger-sized, high-growth targets, non-conglomerate acquisitions, and when the consideration is paid in stock.•Overconfident, cash-generating acquirers overpay the targets.•Acquirers accept to offer a higher price for related targets and lower premia on conglomerate acquisitions, which confirms that the era of conglomerates is definitely over.•As operational synergies explain a fraction of the premia offered to target shareholders, acquirers are aware of the value creation potential of rationally driven acquisitions.•Cost synergies, more reliably achieved in post-merger integration, are easy to disclose and price.•Revenue synergies, requiring exceptional managerial capabilities, are of longer-term nature but more uncertain, thus leading acquirers to precautionarily withhold them in premium pricing.•Financial synergies, arising from combining weakly or negatively correlated businesses, are not typically priced upfront.
Our empirical analysis of 403 acquisitions completed globally between 2007 and 2015 uses a holistic approach to explain the key determinants of premia paid by acquirers, addressed by distinct literature streams. Our results show that overconfident, cash-generating acquirers overpay the targets. Higher premia are justified for larger-sized, high-growth targets, non-conglomerate acquisitions, and when the consideration is paid in stock. Acquirers embed expected operating synergies in premia offered to target shareholders. However, while cost-cutting synergies, more reliably achieved in post-merger integration, are easy to disclose and price, revenue enhancement synergies, requiring exceptional managerial capabilities, are of longer-term nature but more uncertain, thus leading acquirers to precautionarily withhold them in premium pricing. Financial synergies, arising from combining weakly or negatively correlated businesses, are not typically priced upfront.
Drawing on the stewardship theory (ST) and socio-emotional wealth (SEW) perspective, this study investigates the role of sustainable activities within family firms (FFs) and the effect of marketing ...strategic decisions in improving their corporate social responsibility performance. To achieve the research aims, we analysed a sample of 730 American and European listed companies from 2015 to 2020. The results show that family businesses are more socially responsible than non-family businesses due to the presence of stewards. However, strategic marketing decisions have unclear effects in achieving these outcomes. This study expands the literature on ST and SEW in FFs, integrating them with sustainable principles. We also contribute to the sustainability debate and marketing literature related to FFs.
Purpose
The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector.
...Design/methodology/approach
The authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis.
Findings
The findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP.
Originality/value
Despite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.
Abstract In the current business setting, companies must adopt new practices to remain competitive due to complex products, changing market demands, and stakeholder pressures. Many successful ...businesses are turning to sustainability‐oriented innovations as a means of both increasing their growth potential and engaging in corporate social responsibility practices. This approach benefits both the company and society. However, the full potential of implementing sustainability practices through open innovation has yet to be fully explored, and the impact on firm value is unclear. Additionally, there is currently a lack of international standards for representing sustainability as an open innovation approach. This study aims to shed light on the potential benefits of adopting sustainable practices through the open innovation approach. We highlight the value that sustainable innovation can create and analyze a sample of European‐listed companies from the STOXX Europe 600 Index from 2011 to 2020. Our findings show that the ESG score best represents sustainability as an open innovation approach. Moreover, we demonstrate that adopting sustainability as an open innovation approach practice positively impacts firm value. This suggests that companies can enhance their value and promote sustainable innovation success by embracing this approach. Overall, this paper contributes to the literature on sustainability and open innovation, specifically within the legitimacy theory framework. It emphasizes that stakeholder pressure to build a more sustainable and ethical economic system presents a challenge that can also be an opportunity for companies.
PurposeThe purpose of this study is to examine the impact of intellectual capital disclosure on the cost of equity capital in the context of integrated reporting, which represents the ultimate ...frontier in the field of corporate disclosure.Design/methodology/approachThe authors employ content analysis to measure intellectual capital disclosure levels along with a panel analysis on a sample of 164 integrated reports.FindingsEmpirical outcomes indicate that intellectual capital disclosure levels have a significantly negative association with the cost of equity capital.Originality/valueThis study's major contribution lies in its originality in terms of empirical examination of the relationship between intellectual capital disclosure in integrated reports and the cost of equity capital.
