The measurement of the impact of non-financial capitals on company value within the context of integrated reporting (IR) has remained an elusive empirical and practitioner question. The IR framework ...was designed to provide an improved corporate reporting approach to different stakeholders. However, the framework falls short of providing a tool that practitioners and stakeholders could use to determine how company value has changed over time. Objectives: The main objective of this research was to produce an enhanced IR framework through an Augmented Integrated Reporting Model (AIRM). Methods: The model tested the relationship of five capitals (financial, manufactured, intellectual, human, and social and relationship capitals) to company value. The study used quantitative research methodology that utilised panel data fixed effects regression analysis in EViews software. Results: The AIRM demonstrates that social and relationship capital have a positive impact on market share price, EVA and TobinQ, while association to share price at book value is negative. Human capital has a positive relationship to market share price and a negative influence on EVA, TobinQ and share price at book value. Intellectual and manufactured capital have positive associations with the four dependent variables of company value. Conclusions: This research implies that a contribution has been made in resolving the challenge of quantifying and measuring non-financial capitals and how they impact company value. The study recommends that IR report preparers, report analysts, investors, academics, and other relevant stakeholders use the AIRM to measure and manage the various capitals in the process of company value creation.
Capital is not enough Boudreaux, Christopher J.; Nikolaev, Boris
Small business economics,
10/2019, Volume:
53, Issue:
3
Journal Article
Peer reviewed
We examine how economic institutions, measured by the Economic Freedom of the World (EFW) index, affect the relationship between capital—human, social, and financial—and opportunity-motivated ...entrepreneurship (OME). To do this, we develop a multilevel model that connects theories of human and social capital at the micro-level to institutional theories at the macro-level. Using data from the Global Entrepreneurship Monitor (GEM), we then test the predictions of our model and find evidence that economic institutions play a crucial role in the relationship between these three distinct types of capital and OME. Our results are somewhat counter-intuitive—as the quality of the institutional environment improves, human and financial capitals become less important determinants of entrepreneurship while the relationship between social capital and entrepreneurship substantially strengthens.
Rapid changes in the business environment require reconfiguration of organizational processes, and process innovation is considered as a source of competitiveness. However, despite its recognized ...economical value, process innovation has received less attention than product innovation. Especially in the industries related to services, where the simultaneity of production and consumption is pronounced, process innovation and product innovation are closely related, and therefore, process innovation efforts are essential. In this paper, based on the case of the lodging industry, service process innovation is reconsidered from the perspective of service capability. Through joint research between industry and university on the implication of technology into customer contact points, service process innovation was realized in accordance with the intended objectives. It is suggested that service process innovation requires integrated capital utilization and that joint research between industry and academia contributes to the capability.
Given variance in entrepreneurs’ capital endowments, the question of sufficient (or insufficient) starting conditions enabling a pathway to survival is critical in entrepreneurship. Drawing on the ...subjectivist theory of entrepreneurship (STE), we adopt a configurational approach. Our results show how combinations of human and social capital are related to survival while overreliance on financial capital is not. From a subjectivist perspective, we reveal a potential gap between identifying and exploiting an opportunity. The findings provide some novel insights that help reframe conflicting results as to whether capital endowments are substitutes or complements.
In rural Bangladesh, patriarchal gendered norms aggravate the vulnerability of women to disasters such as floods because of male dominance in access to resources and decision-making. Furthermore, ...these processes can render invisible women's vital roles in flood preparedness, response, rehabilitation, and recovery. A first step in addressing such gender-based inequalities in disaster contexts is to recognise and acknowledge the varied contributions made by women when a flood strikes. This paper sets out a framework to document women's roles in building adaptive capacity and resilience to floods in rural Bangladesh, using testimony evidence from 20 Focus Group Discussions in the highly flood-prone area of Sirajganj District in north-western Bangladesh. These FGDs consisted of both men and women, providing an inclusive arena for participants to express their perspectives on the roles of women during flood conditions. Responses were coded within the categories of human, social and financial capital, informed by Sustainable Livelihoods Analysis. In human capital terms, women's formal and informal education and skills were identified as critical community assets. With regards to social capital, bonding, bridging and, to a lesser extent, linking forms of social capital were recognised and valued by FGD participants. In terms of financial capital, women were identified as contributing to household capacity in flood times through livelihood diversification and the protection of household financial assets. These results highlight the need for a more formal and prominent acknowledgement of women's role in disaster policy.
•Male headed Bangladeshi household talked about women's role.•Men acknowledged the women's contribution to flood adaptation.•Women's access to human, social and financial capital facilitated adaptive capacity.
The combination of certain economic policies and a positive external situation contributed to high growth rates of the Argentine economy and a lower external debt during the first years of ...post-convertibility. The objective of this paper is to verify if the financial capital kept a central position in the Argentine economic process in the first decade of post-convertibility, by analysing the relations between the financial capital and the different areas of the economic dynamics. This central position was characterized by the ability of the financial capital to condition policy making decisions, partial disconnection with productive activity and high profitability. The study was carried out through a historical structural approach, limiting the areas of economic dynamics to its most relevant variables in the explanation of the functioning of Argentine economy.
From the need to understand the systematic presence, in the most different media of scientific dissemination, of the figuration of the human being as being ontologically equal to other animals, ...mainly because of their molecular biological characteristics, such as genetic ones. This work seeks to put on the scene a critical theoretical approach about how the social construction of biotechnologies and the scientific discourses that underpin them are biased by subordination to the financial market, making in contemporary society the social relations between science and ideology are resignification. In this sense, through a literature review of the specialized literature and the discourse analysis of central characters of the techno-scientific field on screen, we defend as central argument that the development of the economy around biotechnologies and, underlying it, the emergence of a “market of promises” have made scientific discourses begin to function ideologically as vehicles of capital accumulation.
The purpose of this work is to study the current state and trends in the financial market of Ukraine. Methodology. The following methods of scientific research were used: analysis and synthesis; ...theoretical generalization; abstraction and comparison; systematic approach. Results. The article reports that the financial market of Ukraine is in the process of formation, which is due to the uneven spatial dynamics of financial capital in the course of market reforms; heterogeneity of economic and financial space of the country; fundamental asymmetry between regions in terms of financial capacity; localization of financial institutional infrastructure; level of investment attractiveness, etc. It was found that the main problem of the financial market of modern Ukraine is the inability to provide an effective redistribution of financial resources needed to meet the challenges of modernizing the domestic economy and create an innovative impetus to the reproductive processes. Practical implications. To improve Ukraine's financial sector and boost economic growth, it is necessary to create an effective mechanism for improving banks' lending policies. To develop bank lending and create financial stability in this period it is necessary to make banking services of higher quality to improve their competitiveness; to set maximum interest rates on loans within the framework of state acts and monitor their implementation; to encourage commercial banks to lend to innovative projects; to increase the size of main assets of state banks, increase their number and strengthen their role in the financial and credit market of Ukraine, etc. Value/originality. It has been researched that the structure of the financial market is dominated by the number of companies engaged in the provision of loans, loans, financial leasing, the provision of guarantees; carrying out factoring, currency exchange and money transfer operations. For the development of bank lending it is necessary to improve banking services to improve their competitiveness; set maximum interest rates on loans within state acts and monitor their implementation; stimulate lending by commercial banks to innovative projects; increase capital resources of state banks, increase their number and strengthen their role in the financial and credit market of Ukraine, etc. These measures will contribute to the recovery of the national economy and increase the level of financial efficiency of the domestic banking system.
This study examines the role of financial capital in mediating the relationship between accounting capability and Micro-, Small- and Medium-Sized Enterprises' (MSME) financial performance. Using ...Yamane formula, the samples are 407 MSMEs in Central Java Province. Data was collected from questionnaires that distributed to and filled by owners of the sample MSME. WarpPLS was used to analyased the research data. This study found that accounting capability and financial capital have a positive influence on financial performance. Financial capital mediates the relationship between accounting capability and financial performance. Thus, this study confirms the importance of accounting capability to increase financial capital and financial performace of MSME.
Does a country's stock of financial capital affect its ability to achieve energy transitions? This paper uses data for up to 137 countries for the period 1998–2013 to investigate the importance of ...financial capital for changes in the use of each energy type. I find that financial capital supports transition to more capital-intensive energy types. For high-income countries, financial capital facilitates transitions from fossil fuels to modern renewable energy sources, especially wind. Both private credit from banks and domestic private debt securities support greater shares of wind energy. For lower-income countries, financial capital supports progression from biomass towards fossil fuel energy sources such as coal. I also find that countries with larger stocks of financial capital are more likely to move to more capital-intensive electricity generation systems.
•Financial capital supports transitions towards more capital-intensive energy types.•For lower-income countries, financial capital contributes to increases in coal share of energy.•For high-income countries, financial capital contributes to increases in wind share of energy.•Bank credit and domestic private debt both support transitions towards wind energy.
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