"Stakeholding" is a term laden with many meanings. In this paper we attempt to put some order on the discourse by confining attention to the corporation. We assess the origins and the intellectual ...foundations of the "shareholder versus stakeholder" debate. We ask whether and how "stakeholding" might be a more logical or rational system, a fairer or more democratic system, and one that provides better performative outcomes. Each of these claims is assessed in respect to the micro firm perspective and the macro economy-wide perspective. One of the most difficult and neglected areas in the stakeholding debate concerns the practicalities of its implementation. The paper tackles this issue directly, at both the domestic and the international level. We ask not only how stakeholding might be sensibly introduces within a national context but also what it means to discuss stakeholding in respect to transnational enterprises. PUBLICATION ABSTRACT
Purpose
The purpose of this paper is to help exporting companies to increase the performance of their exporting activities through collecting sound export information and using it effectively. ...Specifically, the research objective is to determine the effects of the export information sources, information types, export research methods and the way the export information is used within the company on the measures of export company performance, namely export sales, export growth and export profitability.
Design/methodology/approach
The study focuses on the above objectives and aims at enlightening them by testing some hypotheses. A structured questionnaire was sent to 350 Turkish exporting companies through the mail, and 102 responses were received.
Findings
The research determined that companies collect export information from different sources and use it for various purposes in their decision making. The research also clearly indicated that the differences in export information sources and information types employed, and information usage in decision making, have different effects on their export performance, mainly measured in terms of sales, market share and profitability.
Originality/value
Although some of the studies in the literature have focused specifically, and in a piecemeal fashion, on the determination, acquisition and utilization of export information into export information systems, there is a lack of studies integrating all the elements into export marketing information systems and investigating the effects of companies' export marketing information systems on company performance. The paper tries to bring all the elements of the export information system in a model and tests the effects of the export information elements on export performance. It is hoped that, the findings will help managers and policy makers.
Purpose
Initial public offerings (IPOs) underpricing is a world-wide phenomenon in the stock market. It is generally explained with asymmetric information and risk. In this paper, we complement these ...traditional explanations with a theory where investors also worry about the after-market illiquidity that may result from asymmetric information after the IPO
Design/methodology/approach
Our model blends such liquidity concerns with adverse selection and risk as motives for underpricing and liquidity. The model’s predictions are supported by evidence for 798 French IPOs realized between 1995 and 2008. Using various measures of liquidity, we find that expected after-market liquidity and liquidity risk are important determinants of IPO underpricing.
Findings
We find evidence that less liquid the aftermarket is expected to be, and the less predictable its liquidity, the larger will be the IPO underpricing.
Practical implications
The study provides empirical evidence that shares outstanding and author IPO characteristics play a vital role on post-IPO liquidity. According to the results obtained, three IPO characteristics, that is, relative size, blockholder and underpricing of offering have an explanatory for the liquidity and trading activity of the shares outstanding. It should be noted that this explanatory power is much greater before isolating the market effect. Nevertheless, given the evidence to show that these operations are executed during upmarket periods when trading volume is high, the non-exclusion of the market effect may attribute these variables with more explanatory power than they actually possess. Be that as it may, even after eliminating the market effect, their explanatory capacity is still considerable.
Originality/value
We have found that underpricing is negatively related to the breadth of shareholders but positively related to institutional shareholders after the IPO. When a company is underpriced, it is likely, on average, to have a higher breadth of shareholder base and lower concentration of large outside investors
Executive pay became a much discussed issue during the recent global financial crisis. Substantial research has been done in the United States and United Kingdom, while research in Australia is still ...limited, especially in terms of using the data for the financial crisis. This paper will investigate the relationship between Australian executives’ remuneration and their companies’ performance during the global financial crisis. Two approaches were used to examine the relationship: firstly, an investigation of the pay-for performance relationship that existed during the global financial crisis; and secondly, checking the robustness test by using one year before-and-after data. The sample is taken from the Top 200 companies from the Australian Stock Exchange (ASX) list for 2007 and 2008. In order to achieve a better understanding of this relationship, a conceptual model has been developed. Results show that Australia’s business reward system is quite effective because executives’ remuneration were reduced by their respective companies when they underperformed during this particular crisis.
Overall, this study concludes that there is a positive and significant relationship between executives’ remuneration and company performance during the global financial crisis, with higher sensitivity to market-based performance measures than accounting-based performance measures.
Purpose - The purpose of this paper is to investigate the effect of ownership concentration on CEO compensation and firm performance relationship in New Zealand.Design methodology approach - The ...paper applies regression analysis to data from New Zealand listed companies from 2001 to 2005.Findings - The study finds a non-linear effect of ownership concentration on CEO compensation-firm performance relationship, that is CEO compensation is negatively (positively) related to firm performance in firms with high (low) concentrated ownership structure respectively.Research limitations implications - Results provide evidence for the proposition that ownership concentration at a high level in New Zealand does not constrain excessive management power, but exacerbates agency problems associated with executive pay. A highly concentrated ownership structure provides potential explanation for the misalignment between CEO compensation and firm performance in New Zealand. The positive effect of a low ownership concentration level on CEO compensation-firm performance relationship suggests that monitoring the efficiency of large shareholders works better at a low ownership concentration level.Originality value - By exploring the non-linear interaction between two governance mechanisms - CEO compensation and ownership concentration - the findings of the study make contributions to the current compensation and ownership literature mainly in two ways: although the non-linearity between ownership concentration and firm value has attracted extensive research interest, little attention is given to the non-linear effect of large shareholding on the CEO compensation contract in prior studies; and, in the context of a developed country with a small financial market, there are low regulatory "drag" and virtual absence of a litigation threat to organisations, as in New Zealand. This study suggests concentrated ownership as an underlying explanation for the misalignment between CEO compensation and firm performance.
Purpose - The purpose of this study is to investigate the value of analyst coverage on the covered firms.Design methodology approach - To isolate the value impact of analyst coverage, the study ...focuses on a unique set of firms that receive analyst coverage for the first time after having been traded in an exchange for at least one year. Event study and ordinary least square regressions are used to test the hypotheses.Findings - There is a significant and positive price reaction at the time of the announcement of analyst coverage initiations. However, unlike the coverage initiations around the initial public offers (IPOs), the price impact is not related to the reputation of the analyst firm, the exchange listing or whether the analyst firm is also the IPO underwriter. The sample firms do not experience significant reduction in the level of information asymmetry but experience a significant increase in liquidity. The increase in liquidity only occurs after the coverage initiations. The increase in liquidity is not explained by the increase in institutional investors' interest. Finally, the price impact around a coverage initiation is positively related to the change in liquidity.Practical implications - The findings suggest that firms benefit from analyst coverage through an improvement in liquidity.Originality value - This is the first study to focus on the analysts' first-time coverage initiations. It argues that focusing on the first-time coverage initiations provides a better analysis of the effects of analyst activities on the firm value.
The research objective is to examine empirically the relationship marketing and its successful implementation in Turkish Beverage Companies. Three scales were used to generate the data. Relationship ...marketing scale, environmental factors scale and company performance scale. Some of the variables in questionnaire used as control variables that reflect company-specific characters namely, company size, business type and sales volume. First the main effect of relationship marketing orientation on company performance was assessed, and then the moderating effect of environmental factors on the relationship between relationship marketing orientation and company performance was estimated by using multivariate techniques.
Good to great: lessons for managers Filbeck, Greg; Gorman, Raymond; Parente, Diane ...
Management research review,
11/2010, Volume:
33, Issue:
12
Journal Article
Peer reviewed
Purpose - Jim Collins' Good to Great is but one of many popular press books on management. In his book, Collins discusses the keys to success for today's corporations. Many managers flocked to ...bookstores to discover what they might be missing in making their organization great. This paper aims to use methodologies more commonly found in the finance literature to validate the results of Collins' study.Design methodology approach - This paper uses methodologies more commonly found in finance literature (e.g. event study methodology, Fama-French three-factor model with momentum, buy-and-hold abnormal returns) to validate the results of Collins' study.Findings - The results show that the Good to Great firms had unexceptional performance when compared to other benchmark lists of firms, on an ex-ante or ex-post basis.Practical implications - From a management perspective, the advice that one might obtain from Good to Great should be carefully examined by managers before they implement it, only to find that great is not really so great.Originality value - The paper is original in its methodological design and is valuable to managers who are seeking advice for opportunities that enhance shareholder wealth.
Purpose
The aim of this paper is to determine whether the effort invested by service companies in employee training has an impact on their economic performance.
Design/methodology/approach
The study ...centres on an intensive labor sector, where the perception of service quality depends on who renders this service. To overcome the habitual problems of transversal studies, the time effect has been considered by measuring data over a period of nine years, to give panel data treatment with fixed effects.
Findings
The prepared models give clear empirical support to the hypothesis that training activities are a positive influence on company performance.
Research limitations/implications
The results obtained contribute empirical evidence about a relationship that, hitherto, has not been satisfactorily demonstrated. However, there may be some limitations related to the use of a training indicator based on effort and not on results obtained, with low representation of what happens in the smaller companies that lack structured training policies, or with no differentiation between generic or more specific training.
Practical implications
The results obtained can contribute towards increased manager awareness that training should be treated as an investment and not considered as an expense.
Originality/value
The main contributions can be resumed in three points: a training measurement has been used, based on three dimensions, which presumes to be an improvement on the more frequent method of measuring this variable. A consistent methodology was used that previously was not applied in the analysis of this relationship, and clear empirical evidence has been obtained concerning a relationship that, frequently, is mentioned with theoretical arguments, but which needs more empirical evidence.
Purpose - The purpose of this paper is to provide a descriptive analysis of Balanced Scorecard (BSC) usage among companies on the Thai stock exchange; and to assess the performance effects of this ...BSC use.Design methodology approach - Sample organisations were surveyed through a questionnaire and the results used to examine whether the extent and manner of BSC use are significantly associated with satisfaction with financial performance and whether higher types of BSC usage result in higher satisfaction with financial performance.Findings - Around 33 per cent of companies that had implemented the BSC did not employ cause-and-effect relationships. The study found no significant association between types of BSC usage and company size. There were no significant differences in satisfaction and perceived benefits gained from using different types of BSC. Also, the extent of BSC use is not significantly different between different types of BSC usage. Further, the extent and manner of BSC use are not significantly associated with all performance variables.Research limitations implications - Owing to the small sample size, the results from the study make generalisation difficult. Future research may replicate the study using a larger sample size, testing financial performance implications with stock returns.Originality value - The paper examines whether BSC use actually results in the claimed benefits and positive performance effects.
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