This study investigates the influence of taxation on ownership chains and specifically on the location decision for intermediate holding companies. By examining the effect of the introduction of a ...cross-border group taxation regime in Austria in 2005 on ownership chains of European multinational firms, I find evidence that foreign parent companies already invested in Austria restructured their ownership chains in order to meet the requirements of the group taxation regime. This effect is larger for foreign parent companies with loss-generating subsidiaries. Collectively, the empirical findings suggest that, when evaluating the effect of cross-border group taxation regimes, companies follow a detailed tax planning strategy that takes tax-base effects into account.
Abstract In the global world where competition is increasing constantly, efficient use of resources is becoming more important for the textile industry. In this study, the efficiency scores and ...inefficiency effects of the textile industry in selected Eastern European countries were investigated using stochastic frontier analysis. The results indicate that age has a negative impact on inefficiency in the Czech Republic and Hungary. The current ratio decreases the inefficiency in Slovakia, Poland and Hungary, while time decreases that in Slovakia, the Czech Republic and Hungary.
In this paper, we consider an abstract market model for demand response where a supply function bidding is applied to match power supply deficit or surplus. We characterize the resulting equilibria ...in competitive and oligopolistic markets and propose distributed demand response algorithms to achieve the equilibria. We further show that the equilibrium in competitive market maximizes social welfare, and the equilibrium in oligopolistic market has bounded efficiency loss under certain mild assumptions. We also propose distributed demand response algorithms to achieve the equilibria.
•The post-crisis regulations emphasize the business complexity of banks.•Complexity weakens banks’ risk management, as evidenced by operational risk events.•These risk management weaknesses affect ...both banking and nonbanking activities.•Complexity does not significantly improve performance.•Managerial failure caused by complexity offsets the benefits of strategic risk taking.
Recent regulatory proposals tie a financial institution’s systemic importance to its complexity. However, little is known about how complexity affects banks’ risk management. Using the 1996–1999 deregulations of U.S. banks’ nonbanking activities as a natural experiment, we show that banks’ business complexity increases their operational risk. This result is driven by banks that had been constrained by regulations, compared with other banks and also with nonbank financial institutions that were never subject to these regulations. We provide evidence that managerial failure underlying these events offsets benefits of strategic risk taking.
The purpose of this paper is to analyze the main aspects of non-financial reporting in companies. The main objectives considered were the presentation from a theoretical point of view of the concept ...of non-financial reporting, the need for integrated reporting at international and national level, the sustainability report. We will analyze the case study on non-financial reporting within OMV Petrom.
We seek insights into potential benefits for firms adopting strategies to improve business sustainability in a carbon-constrained future. We investigate whether lenders incorporate a firm's exposure ...to carbon-related risk into lending decisions through the cost of financing, and if so, importantly whether firms can mitigate the penalty by demonstrating an awareness of their carbon risks. We use a sample of 255 firm-year observations from eight industries over the period 2009-2013. We measure carbon-related risk exposure as the firm's historical carbon emissions and our primary measure of carbon risk awareness is based on the firm's willingness to respond to the Carbon Disclosure Project (CDP) survey. We document a positive association between cost of debt and carbon risk for firms failing to respond to the CDP. Further, this association is economically meaningful, with a one standard deviation increase in carbon risk mapping into between a 38 and 62 basis point increase in the cost of debt. Equally, we find that this penalty is effectively negated for firms exhibiting carbon risk awareness. Our results are robust when we consider alternate measures of carbon awareness—disclosure through alternative medium to the CDP and firms' annual cash investment in new capital assets using "cleaner" technology. Our results highlight not only the importance of carbon awareness as a business strategy for polluting firms, but also its importance to lenders exposed to their clients' default and reputational risk. The debt market appears to incorporate historical carbon emissions and forward-looking indicators of carbon performance.
Purpose: This article proposes to develop a territorial, historical, dynamic, open and plural analytical framework, referring to mining companies operating in the State of Bahia. Theoretical ...Framework: Through socioeconomic, ecological and historical analyses, we clarify multiple relationships between past and contemporary facts, based on the theoretical and conceptual perspectives of the cartographic exercise of New Social Cartography, developed by professor Alfredo Wagner. Method: The methodological instrument is New Social Cartography, through which we seek to highlight companies, agents of mineral exploration, highlighting phenomena inherent to their activities. Using methods that involve the leading roles of communities in the construction of knowledge. Results and conclusions: We observed that in Bahia, as, generally speaking, in Brazil, sophisticated models of mining colonization were established, with embryonic approvals from the Kandir Law, one of the legal provisions that must be urgently questioned and repudiated, in the name of freedom and lives. Research implications: Exposure and elucidation of global policies involving mining processes, presenting a worrying dynamism, with major ruptures and structural transformations (economic, political, cultural and mental). Originality/value: we contrast political categories and reified legal norms, demystifying them, presenting immeasurable losses inherited by human populations, their sociocultural frameworks, living organisms and the abiotic environments of ecosystems.
Current theory on foreign subsidiary autonomy is insufficient to examine a situation where a multinational lacks experience to organize global operations, and yet intends to compete extensively with ...established multinational enterprises (MNEs) from advanced economies. By building on theoretical perspectives developed for emerging-market multinational enterprises (EMNEs), we advance the idea that foreign subsidiary autonomy is a strategic mechanism to overcome the EMNE's weaknesses in managing globally dispersed businesses and their home-country disadvantages after foreign entry. Subsidiary autonomy delegation assists in performing the learning functions necessary for overcoming resource and capability voids, as well as for distancing the subsidiary administratively from the parent's negative home-country institutional heritage. Analyses of survey data collected from headquarter senior executives of 240 Chinese MNEs suggest that subsidiary autonomy delegation is higher among firms relying on foreign markets as a springboard to acquire strategic assets, whose top managers at the headquarters perceive high domestic institutional constraints, and which do not count on government assistance to expand internationally. Further, we demonstrate that these relationships are strengthened with greater inward foreign direct investment cooperative experience, and with the use of merger and acquisition entry modes. These findings have important implications for theories on subsidiary autonomy.
In this study, we explore how top executives affect the well-being of multiple stakeholders and long-run organizational outcomes. In the context of the 2008 global financial crisis (GFC), we examine ...how CEO greed impacts firms’ stance toward corporate social responsibility (CSR) prior to the onset of the GFC and how this, in turn, shapes firms’ fate during and after the GFC. We argue that CEO greed will be negatively associated with CSR, because in their unbridled pursuit of personal wealth, greedy CEOs are more likely to exhibit myopic behaviors and neglect investment in CSR. We also adopt a person-pay interactionist logic to theorize that the willingness of greedy executives to invest in CSR will be especially sensitive to different types of pay instruments. Next, we build on recent findings from research on CSR that suggest that stakeholder engagement is a defining feature of resilient organizations. We expect that, due to low CSR investment, firms led by greedy CEOs will experience greater losses in the short run and will take longer time to recover from the 2008 GFC. For a sample of 301 CEOs of public U.S. organizations, we analyzed the stock prices and found general support for our hypotheses.
At present, more and more attention is paid to the sustainable development of enterprises. In particular, in the context of frequent financial crises and COVID‐19 pandemic, how the performance of ...listed companies' environmental, social, and governance (ESG) affects the company's market value has attracted widespread attention. Different from existing studies, this paper takes financial performance as a mediating variable and constructs linear regression model and mediating effect model based on analyzing the relationship between ESG performance, financial performance, and company market value and their influencing mechanism. The ESG rating data of Chinese listed companies newly developed by SynTao Green Finance from 2014 to 2019 were selected for empirical test. The results show that the improvement of ESG performance of listed companies can improve the market value of the company, and the financial performance of the company presents an obvious mediating effect. At the same time, operational capacity is an important mediating way for ESG performance to affect the company's market value. Further research shows that ESG performance of state‐owned listed companies exerts a stronger mediating effect on corporate operating capacity. Finally, this paper provides relevant suggestions for regulators, listed companies, and investors.
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