Search

This study examines the role of growth opportunities on stock buybacks and provides evidence on the importance of signaling and agency theories in explaining stock buybacks. Both theories are required to fully explain stock buybacks. As per the signaling theory, we find that the announcement period returns are positive for stock buybacks, which indicates that the buyback firms' stock is undervalued. Furthermore, consistent with agency theory, we also find that the announcement period returns are higher for firms with low growth opportunities and high free cash flow. We also examine buyback firms' long-run stock price performance for 12 months, 24 months, and 36 months following the buyback. We use the Fama–French five-factor model to study the long-run stock performance of buyback firms because of its better explanatory power than the three-factor model. Low growth-high free cash flow firms tend to outperform their benchmark portfolios during this period. Recent regulations such as the Stock Buyback Tax can discourage low growth firms from conducting stock buybacks, which could increase agency costs. [ABSTRACT FROM AUTHOR]

Relations between REIT CEO compensation, firm stock performance and risk, after FASB accounting changes and additional SEC compensation disclosure requirements in 2006, are examined. Total compensation becomes more weighted to bonus payments and stock grants and away from options and salary. The majority of REIT CEO compensation comes from bonus payments and stock grants. REIT CEO compensation is found to be positively correlated with lagged firm stock performance, but not lagged firm risk measures. A new metric related to the REIT dividend requirement, dividends paid to CEOs from share ownership, is positively related to CEO total compensation, and the positive relation is driven by a strong association between cash dividends to CEOs and their equity-based compensation. These findings suggest that REIT CEOs trade-off certainty in cash compensation for equity-based wealth and related cash flows. Most important, our results suggest that REIT CEOs are paid for performance and are less likely to earn windfalls that have been associated with the use of options and mis-priced firm risk in non-REIT firms. [ABSTRACT FROM AUTHOR]

Ecological psychology regards culture as a response to the demands of the environment. As rice farming in history has significantly influenced the formation of human cultural consciousness, we investigate how the rice culture of a chairperson's birthplace affects a firm's CSR activities. Our main finding reveals a positive and significant correlation between a chairperson's rice culture and CSR activities. Further analysis demonstrates that this positive relationship is particularly pronounced in private firms and family firms. We also examine the incremental effect of individual management heterogeneity and find that the positive relationship is strengthened when the chairperson has a shorter tenure or higher level of education. Additionally, more developed regions help enhance this positive relationship. To address the endogeneity concerns, we adopt an instrumental variable approach and exogenous event analysis based on chairperson turnover. The results are robust to a set of additional tests. Overall, our findings document the benefits of a chairperson's rice culture in developing countries like China and reveal how this benefit is priced into CSR performance. [ABSTRACT FROM AUTHOR]

We examine how social diversity and inclusiveness on corporate boards affect corporate performance and monitoring in Sri Lanka, a country subject to decades of polarization, civil war, and even genocide. Barely more than a decade after the civil war, we find that board social diversity on the basis of ethnicity, religion, language, gender, and nationality of the board members is positively related to corporate performance, both in terms of stock market performance and accounting returns, and to corporate financial stability. The main positive effects of social diversity derive from ethno-linguistic inclusiveness. The results are confirmed by an instrumental variable approach that addresses endogeneity issues. We find no evidence that inter-personal and moral conflicts or communication problems among board members negatively affect firm performance. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze the impact of various dynamic capabilities (Innovation (IN), entrepreneurial leadership (EL), Social media (SM), and digital technology (DT)) on Business performance (BP). This study also analysis the mediating impact of talent management(TM), and Entrepreneurial orientation (EO) between EL, and Business performance. The reason for this is that in the handicraft industry SM, DT TM, and SR impact on business performance are still not fully understood. We have adopted a survey-based methodology from 410 handicraft artisans or entrepreneurs. Data was empirically analyzed to test the theoretical model of mediation through Smart partial least square method (SMART PLS-SEM) software. The study's findings prove entrepreneurial EL improves Business performance whereas the association between Social media (SM) and BP is insignificant. The mediating impact of Talent management, EO, and strategic resilience was statistically positive and significant and proved that bridging between BP and all three mediators supports and makes stronger EL for boosting business performance. Innovation, and digital technology, positively affect Business performance. This study explores artisans' formal entrepreneurial EL style. This study is unique because the Dynamic capability theory (DCT) as an extension of the resource-based view (RBV) has been used for critical business factors like EL, strategic resilience, Business performance, digital technology, innovation, and talent management in the handicraft sector will be extended. This study also proposes a new Digital capability view (DCV) for future study. This study will explore the theoretical and practical understating of (DCT) with managerial use of EL, Innovation, and TM for boosting Business performance. [ABSTRACT FROM AUTHOR]

This study investigates the effect of sustainable leadership on environmental performance, specifically examining how employee well-being and innovation mediate this relationship, and how organizational resilience moderates this relationship within the information technology sector in Denmark. Utilizing a cross-sectional design and drawing on sustainable leadership theory and social exchange theory, the research employed PLS-SEM analysis. Hypotheses were tested, exploring the variables' direct, moderated and mediated relationships. The results support all hypotheses, revealing positive relationships between sustainable leadership and environmental performance, employee well-being, and innovation. Furthermore, employee well-being and innovation mediate the relationship between sustainable leadership and environmental performance. Organizational resilience moderates the association between sustainable leadership and environmental performance. This research offers valuable insights into the dynamics of sustainable leadership in the IT sector, emphasizing its positive impact on environmental performance and organizational outcomes. The study suggests practical implications for leaders and identifies avenues for future research. This study extends the understanding of sustainable leadership by empirically examining its multifaceted impact in the specific context of Denmark's information technology sector. Incorporating both sustainable leadership theory and social exchange theory enriches the theoretical framework, contributing to the originality of the research. [ABSTRACT FROM AUTHOR]

Gratitude in the workplace can enhance work achievements and promote individual well‐being in organizational contexts. Although the Gratitude at Work Scale (GAWS) was developed in the USA, it has not been corroborated in the Persian culture. The purpose of this study was to validate the Persian version of the Gratitude at Work Scale (GAWS). Scale validation procedures included linguistic validation and face and content validity assessment by experts and analysis. There was a correlation of approximately 0.592 between two subscales of GAWS-MW and GAWS-SWE, indicating a moderate level of association. Scale validity analysis demonstrated a positive correlation between GAWS and measures gratitude (GQ6), gratitude toward God, subjective happiness and satisfaction with life scales. The Gratitude at Work Scale exhibited good psychometric properties in assessing the sense of gratitude at work in our population. This may contribute to improving overall individual and organizational performance. [ABSTRACT FROM AUTHOR]

While prior research has found that leaders tend not to abuse subordinates equally, empirical studies exploring the differentiation phenomenon of abusive supervision still remain limited. Drawing on relative deprivation theory, the differentiation of abusive supervision is defined as the two operational indicators of relative abusive supervision and abusive supervision variability according to the dual influence this differentiation imposes on both individuals and groups. How the interactive effect of relative abusive supervision and abusive supervision variability impacts employees' behaviors is examined and the solution to the abusive supervision differentiation dilemma is explored. The results of a two-wave empirical study including 254 employees from 84 groups demonstrate that focal employee relative abusive supervision negatively influences task performance and organizational citizenship behavior via relative deprivation. This effect is amplified when the group has lower levels of abusive supervision variability. This study contributes to a better understanding of abusive supervision in groups. [ABSTRACT FROM AUTHOR]

Are some daily job stressors good for employees? The challenge-hindrance stressor framework (CHSF) attempts to shed light on this question by categorizing stressors according to their ability to facilitate (challenge stressors) or inhibit (hindrance stressors) growth and achievement. According to the CHSF, challenge stressors should be associated with increased performance, but also with increased strain which subsequently hurts performance. Conversely, hindrance stressors should be associated with reduced performance both directly and indirectly via strain. Prior meta-analytic investigations have focused on more stable job stressors (using cross-sectional or longitudinal primary studies), and found contradicting resulted in support of the CHSF predictions. In the current meta-analysis, we tested the validity of the CHSF using a more dynamic view of stressors, by applying it to short-term, daily experiences of stressors, strains, and performance outcomes. Results from 78 unique samples indicated that at the within-person level, hindrance stressors have both a direct and an indirect (via strain) short-term effect on performance. Challenge stressors have a positive direct effect on performance but a negative indirect effect via strain. Furthermore, we examined two performance indicators separately: task performance and organizational citizenship behaviors (OCB). The results revealed that challenge stressors have a stronger positive association with OCB than with task performance. Hindrance stressors exhibited the opposite pattern, a stronger negative association with task performance than with OCB. The results of this study suggest that all daily stressors result in strain, which negatively relates to performance, though challenge stressors also have some positive effects on daily performance. [ABSTRACT FROM AUTHOR]

According to international entrepreneurship scholars, the success of Born Globals (BGs) depends on their capacity to develop an organizational ambidexterity perspective, i.e. a dual function of simultaneous knowledge exploration and exploitation. In this respect, it has been pointed out that ambidexterity can be associated with the ability to balance the development of different strategic orientations (SOs), namely, entrepreneurial orientation (EO), market orientation (MO), and learning orientation (LO). While several authors have investigated the impact of MO, EO and LO on BGs' performance, the results of such research are often inconsistent. Based on the resource orchestration view, we assume that the combined – rather than the single – contribution of resources and capabilities provided by EO, MO, and LO, ultimately result in a superior export performance. Such an indicator is typically adopted to evaluate international performance, especially for micro and small companies. More specifically, the study aims to verify the significance of dyadic (namely, MO*EO, EO*LO, and MO*LO) and triadic (MO*EO* LO) interactions of the SO typologies on BGs' export performance. Moreover, the paper aspires to verify if some of these interactions are more relevant than others. We test our hypotheses on a sample of 100 Italian hi-tech BGs located inside a technological cluster near Rome through a longitudinal analysis. Our findings show that all the investigated interactions positively and significantly impact on the BGs' export performances, independently of the adopted measurement variable. However, a certain type of hierarchy emerges among the different impacts of the investigated interactions among the three SO typologies. [ABSTRACT FROM AUTHOR]

This paper sheds new light on the dynamic effects of inter-firm network agreements on firm performance and investigates whether the specific combination of partner profiles triggers heterogeneous causal effects. Using a staggered difference-in-differences design, we find that participation in network agreements has a persistent impact on firms' revenues, value added, and EBITDA that is amplified at least through the third year of collaboration. Our results show that micro firms benefit more from collaboration in network agreements, especially when they enter into relationships with larger partners. In addition, companies benefit more from network ties when most of their partners belong to the same travel-to-work area. Plain English Summary: Participating in a network agreement is a valuable solution for improving long-term revenues and operating margins. Our analysis shows that network agreements introduced into the Italian legal system in 2009 yield increasing benefits that become larger in the third year of cooperation and stabilize thereafter. Moreover, the interaction of partners' characteristics affects the magnitude of the effects. Micro firms benefit more from formal networks, especially when they collaborate with larger partners. Moreover, network agreements are highly beneficial when most network members operate in the same area. The Italian policy on network agreements has proven to be a "best practice" under the Small Business Act. However, since it takes some time for the results of network agreements to reach their peak, institutional communication should be improved to raise the right expectations about their potential. From a management perspective, partner selection is a critical step, as a good match of partner characteristics can increase the value creation potential of formal networks. [ABSTRACT FROM AUTHOR]

This paper conducts quasi-experiment design with Chinese listed companies microdata to investigate the effect and mechanism of corporate participation in carbon emission trading market on firm financial performance by using the staggered difference-in-differences method. We show that: a) corporate participation in carbon emission trading market can enhance firm financial performance; b) an increase in green innovation ability and a decrease in strategic choice variance both partially mediate the relationship between carbon emission trading and firm performance; c) executive background heterogeneity and external environmental uncertainty moderate the relationship between carbon emission trading and firm performance in different directions; d) our further study indicates that carbon emission trading pilot policy has a spatial spillover effect on firm financial performance in the neighboring provinces. Therefore, we recommend that the government and enterprises make an effort to further stimulate the vitality of corporate participation in carbon emission trading market. [ABSTRACT FROM AUTHOR]

This review examines corporate sustainability research in marketing, using a perspective that encompasses the environmental and social, as well as economic, aspects of firm performance (i.e., the "Triple Bottom Line"). The authors describe major trends in the strategy-level corporate sustainability literature over several generations. Prior research has mostly focused on the organizational level, noting how firms have engaged with sustainability, while largely ignoring markets and the global economic system. Trends in economic, environmental, and social focus are highlighted, with environmental issues being of relatively greater importance in the nascent stages of corporate sustainability research. However, a growing preference for economic and social issues is observed over time. More recent research examines the tension between sustainability and profitability, examining potential trade-offs between bottom line financial results and achieving the sustainability goals of social and environmental progress. The paper concludes with an agenda for future research in strategic marketing sustainability. [ABSTRACT FROM AUTHOR]

Innovation is often seen as crucial for firm survival and as a way for firms to differentiate themselves from their rivals. However, innovation studies are vague about the actual importance of different innovation strategies. In this study, we distinguish between pure product, process, organizational, and marketing innovations and their combinations. We use a (balanced) panel data set with more than 15,000 firm-year observations for manufacturing firms to analyze the performance of firms with different innovation strategies. Additionally, we investigate from a societal perspective whether innovation facilitates less efficient firms to catch up, or whether firms already utilizing best practices are the main beneficiaries. Using Data Envelopment Analysis (DEA), we find the highest increase in firms' performance among the firms with innovation strategies that combine product innovation with other innovation types. This finding applies to both the short and the longer term. We also conclude that catch-up is strongest among the firms adopting pure process innovation, whereas the other innovation strategies are primarily associated with frontiers shifts. [ABSTRACT FROM AUTHOR]

This study aimed to explore the effect of enterprise resource planning (ERP), innovation (IN), and strategic planning (SP) on the organizational performance (OP) of large industrial companies in Saudi Arabia, with the mediating role of strategic decision-making (SDM). To this end, data was collected from 358 participants and analyzed using structured equation modeling (SEM) via SmartPLS 4. The findings confirmed that ERP positively affects both SDM and OP. Likewise, IN positively affects SDM but does not directly affect OP. On the contrary, SP positively affects both SDM and OP. These results emphasized the important role of SDM as a mediator. Theoretical implications highlight the integration of ERP, IN, SDM, and SP into a coherent model that explains OP dynamics. In practical terms, organizations can leverage these insights to enhance SDM processes aimed at improving operational processes. Overall, this study contributes to the literature by providing a nuanced understanding of how ERP, IN, SDM, and practices collectively drive operational processes in industrial contexts, particularly in Saudi Arabia. [ABSTRACT FROM AUTHOR]

Researchers have long been interested in how owners affect firms' corporate social responsibility (CSR) performance. However, owners face diverging ethical preferences between funding and potentially benefiting from their firms' CSR performance. To better understand owners' influence on firms' CSR performance, we focus on ultimate controlling owners with the highest control rights over their firms. We theorize that ultimate controlling owners with more control rights have stronger motivations and greater decision-making power to promote firms' CSR performance to demonstrate that they are responsible owners and gain legitimacy and goodwill from their stakeholders. Moreover, we explore how this positive relationship is strengthened when ultimate controlling owners and their firms share similar corporate names and receive increased financial analyst coverage, as these conditions increase the likelihood of gaining legitimacy and goodwill through their firms' improved CSR performance. We test our theory using a sample of 852 publicly listed Chinese firms from 2008 to 2017. Our findings support our theoretical predictions and contribute to a more nuanced understanding of how differences in ownership structure and owner type associated with ultimate controlling owners shape their motives and power to affect CSR performance in their firms. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) activities have become increasingly prevalent in retail settings. In franchised organizations, franchisors typically design and coordinate these activities, leaving operational execution to franchisees. Meanwhile, franchisors may introduce new corporate-led CSR activities over time. Even though changes to CSR activities may refocus outlets' attention on a CSR initiative, they may also disrupt an outlet's ongoing CSR routines. Using a longitudinal, secondary dataset consisting of an eight-year panel for a national, franchised restaurant chain, we examine CSR performance dynamics in the presence of two distinct types of CSR activities: an ongoing CSR routine and a distinct, temporary CSR campaign. We find that, when resuming the CSR routine after a temporary CSR campaign, outlets' performance in CSR routines drops significantly (i.e., immediate decay), then improves gradually (i.e., protracted recovery). We also consider the moderating role of an outlet's experience, finding that experience stabilizes these decay and recovery cycles. Our findings represent a first step in developing a longitudinal understanding of how a firm's short-term CSR campaigns may impact ongoing CSR routines, thus contributing to the knowledge of CSR activity development and routinization. [ABSTRACT FROM AUTHOR]

Whether firms in transition economies undertake corporate social responsibility (CSR) is an important research topic in business ethics. Applying the middle-status conformity perspective, this study uses listed companies in the transition economy of China from 2010 to 2020 to assess the influence of social status on CSR conformity. The empirical findings revealed an inverted U-shaped relationship between social status and CSR conformity. That is, firms with low- or high-level status were less inclined to adopt CSR practices than the firms with a more middling status. Moreover, performance expectation gaps strengthened, while managerial ability flattened, the aforementioned inverted U-shaped relationship. This study sheds new light on the complicated motives for firms in transition economies to adopt CSR practices and further substantiates the boundary conditions of the curvilinear relationship between social status and CSR conformity. [ABSTRACT FROM AUTHOR]

This paper investigates the influence of firm-level political risk on the firm's supply of trade credit. Using a novel measure of firm-level political risk developed by Hassan et al. (2019), we find that firm-level political risk has a positive impact on the firm's trade credit extension. We also demonstrate that our results are not driven by macro financial and political events, firm-level political sentiment and non-political risks, and macro-level economic and political factors. Our result continues to hold after addressing the potential endogeneity concern. Additionally, we find that the positive impact of political risk on trade credit extension is more pronounced for firms selling differentiated goods and services. Furthermore, we demonstrate that extending trade credit enhances firm value when a firm faces higher political risk. This paper highlights the importance of considering firm-level heterogeneity in political risk. It also contributes to the literature on the determinants of trade credit extension and deepens our understanding of the relationship between political risk, trade credit, and corporate performance. [ABSTRACT FROM AUTHOR]

This study investigates the repercussions of substantial workforce reductions on the performance of publicly traded US tech firms from 2020Q1 to 2023Q1, being robust to multiple proxies across four performance parameters. Findings reveal decreased investment and operating performance during layoff quarters, accompanied by elevated payout and financing activities. However, a marginal enhancement in operating performance is observed in one quarter following dismissals, with reduced investments, payout, and financing performance. Furthermore, this study delves into the cash-holding behavior of firms during both downsizing quarters and the immediate subsequent quarters, while exploring the moderating role of prior firm performance within layoff quarters. [ABSTRACT FROM AUTHOR]

Open innovation, characterized by the collaborative sharing and management of knowledge and technologies, is posited to be a strategic tool for corporate resilience during crises. To empirically assess the validity of this proposition, this paper employs a text analysis technique to construct the open innovation variable and analyzes its impact on the performance of publicly listed Chinese firms during the COVID-19 pandemic. In the event study, we find that firms actively engaging in open innovation before the pandemic experienced fewer losses in the stock market when the pandemic broke out. Utilizing a difference-in-differences framework, we provide evidence that the positive impact of open innovation on firm performance is more pronounced during the pandemic compared to normal periods. We also suggest that firms with higher absorptive capacity and those practicing moderate levels of open innovation can benefit more from open innovation during the pandemic. The results of our study underscore the strategic importance of open innovation, particularly during bad times, and contribute to the broader understanding of innovation management under adverse conditions. [ABSTRACT FROM AUTHOR]

Firms' strategies and business model themes (BMTs) entail choices that create a configuration of interdependent elements that ultimately affect a firm's performance. So far, extant studies on BMTs (i.e. novelty, efficiency, complementarity and lock-in) have neglected an explorative analysis of how configurations of BMTs and the choices of a firm's strategy (namely, the source of the competitive advantage and the market scope) are associated with a firm's performance in small and medium enterprises (SMEs). We address this limitation by analysing a sample of 96 small firms using a configurational approach. We identified four equifinal configurations leading to high performance and five equifinal configurations associated with low performance. Overall, our results suggest that in small firms, it is essential to combine a differentiation strategy with either consistent pairs of BMTs or the search for new avenues of value creation and capture, while featuring too many BMTs might be detrimental to their growth. Our study contributes to the scholarly debate about the relationship between business models and strategy. [ABSTRACT FROM AUTHOR]

This study aims to examine the mediating role of professional commitment in the relationship between technostress and organizational stress, individual work performance, and independent audit quality. Participants included 120 independent auditors (76.7% men, 23.3% women) who completed measures of personal technostress, personal commitment, organizational stress, individual work performance, and independent audit quality. The results indicated that technostress had a direct effect on professional commitment, organizational stress, individual work performance, and independent audit quality. Also, the professional commitment had a direct effect on organizational stress, individual work performance, and independent audit quality. Furthermore, the results showed that personal commitment mediated the association between technostress and organizational stress, individual work performance, and independent audit quality. These results suggest that personal commitment plays an important role in understanding the underlying mechanism between technostress and organizational stress, individual work performance, and independent audit quality. [ABSTRACT FROM AUTHOR]

This research examines the correlation between corporate green innovation and its positive impacts by analyzing firm-level data from the S&P 500 spanning the years 2001 to 2022. Drawing on previous studies, this research employs rigorous methodologies and measures to assess the influence of green innovation. The study investigates the drivers of green innovation and assesses its potential effects on firm performance and risk reduction. Firstly, it explores the factors that contribute to the adoption of green innovation. Secondly, it examines how green innovation affects firm performance and mitigates risks. The findings of the study demonstrate that implementing green innovation leads to a reduction in firm volatility and credit risk, while also enhancing firm value and emission performance. The robustness tests conducted further reinforce these conclusions, thereby contributing to the existing body of literature that highlights the crucial role of corporate characteristics in promoting sustainable business practices through green innovation. These insights hold significant value for investors, policymakers, and regulators, providing them with valuable information for making informed decisions regarding green investments and the formulation of policies that foster sustainability through green innovation. [ABSTRACT FROM AUTHOR]

ESG performance has become vital for business in recent years. Consumers, stakeholders and investors alike seek companies that can show that they are environmentally and socially responsible, especially in periods of uncertainty. Using a new measure of uncertainty, the Climate Policy Uncertainty Index developed by Gavriilidis (Measuring climate policy uncertainty, 2021), this study investigates environmental, social and governance (ESG) performance, firm performance and carbon dioxide emission performance in the context of major developments related to climate policy and events. Further, the study provides insights into how ESG performance moderates the impact of climate policy uncertainty on firm performance and carbon dioxide emission performance. Finally, this paper examines how investor sentiment influences ESG performance during periods of high uncertainty. Based on a large sample of 2640 firms (6462 firm-year observations) from the US Fortune 1000 list covering the years 2008–2018, the empirical results demonstrate that climate policy uncertainty positively affects ESG performance and negatively affects firm performance and carbon dioxide emission performance. In addition, we find that firms enhance their ESG performance when investors are pessimistic, especially during periods of high uncertainty. Finally, we show that ESG performance does not moderate the effects of climate policy uncertainty on firm performance and carbon dioxide emission performance. These findings may help managers and policymakers to boost ESG performance to reap the benefits of ESG activities during periods of uncertainty related to changes in climate policy. Further, the results identify a promising channel via investor power that the government and ESG reporting advocates can utilise to encourage firms to act responsibly during periods of uncertainty. [ABSTRACT FROM AUTHOR]

Following the knowledge-based and intellectual capital-based view of firms, where knowledge is at the center of corporate strategic management, this paper aims to examine the role of Green Intellectual Capital (GIC) in the environmental and financial dimensions of corporate performance. To do so, a methodological framework was developed to evaluate the progress of GIC and corporate environmental performance by utilizing information and data from sustainability reports. Also, the Return of Equity (ROE) indicator was used to assess corporate financial performance. The proposed methodology was applied in a sample of 80 firms to examine the mediator role of GIC in the relationship between financial and environmental performance. The findings show a positive relationship between GIC (as a result of Green Relational Capital (GRC) and Green Organizational Capital (GOC)) and financial performance (ROE), as well as a significant positive relationship between environmental performance and the components of Green Intellectual Capital. Finally, a nonlinear U-shaped relationship between environmental and financial performance is identified. [ABSTRACT FROM AUTHOR]

Perusing the ways to drive sustainable business performance is at the forefront of research. However, recent studies call for deeper research into evolving phenomena of 'sustainability' to provide ultimate contribution in the UNESCO sustainability agenda, 2030. Therefore, the current study attempts to identify the role of green constructs (consists of green motives, sustainability-oriented values, green dynamic capabilities, and green practices) in creation of sustainable business performance through the mediation of green value co-creation and green innovation. Moreover, the study is intended to identify the moderating role of top management support and knowledge sharing to strengthen the direct association of green constructs and sustainable business performance. Quantitative research approach was used to collect the data from employees (executive level) of manufacturing organizations located in Pakistan. Following the positivism paradigm, the survey technique (close-ended questionnaire) was cast off to obtain 449 valid responses (showing an 87% response rate) from the targeted sample. PLS-SEM was used to test the hypothesis about direct and indirect association of green constructs and sustainable business performance. Results acquiesced that green capabilities are the significant and imperative facets of manufacturing organizations that enable them to co-create value for their ultimate stakeholders and green innovation, which in turn leads to sustainable business performance. To theoretically corroborate our empirical findings, the study unified the comprehensive moderated mediation framework of top management support and knowledge sharing, because neither standpoint alone can elucidate an extant research model. [ABSTRACT FROM AUTHOR]

Despite the prevalence and importance of humor in interpersonal communication, the disclosure literature is silent on the use of humor in the context of corporate communication. Using a sophisticated machine learning algorithm, we identify managers' successful uses of humor during public earnings conference calls. When managers use humor on an earnings call, stock market returns and analyst forecast revisions following the call are more positive, primarily because of a muted response to negative earnings news. Consistent with managers' successful use of humor being a favorable signal of future firm performance, we find no evidence of a return reversal over the subsequent quarter, and managers' use of humor predicts more favorable news at the subsequent quarter's earnings announcement. Our study provides new evidence on the use of humor in corporate disclosures, and our findings indicate that humor can meaningfully influence the market response to public earnings conference calls. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of digital marketing and cluster membership on the entrepreneurship and performance of dental clinics in Colombia. The use of different digital marketing tools in dental clinics is evaluated, and the effect of these tools on the creation of new markets, and clinics' services and general performance, are analyzed. In addition, the cluster effect on the learning and implementation of digital tools in individual clinics is studied. The results show the most effective digital tools to create new markets, as well as the tools that improve clinics' performance through the Internet image and online visibility. The combined use of corporate Facebook and Instagram, a robust website with wide online visibility and YouTube develops the image of companies on the Internet in the most effective way. In addition, the importance of belonging to a cluster in the learning and implementation of digital tools in individual clinics was verified. [ABSTRACT FROM AUTHOR]

This study examines the effect of the 2012 introduction of the "Green Credit Guidelines" on the Environmental, Social, and Governance (ESG) performance of polluting enterprises listed on the Chinese A-share market from 2009 to 2019. Using a quasi-natural experiment framework, we employ a difference-in-differences model to evaluate the effectiveness of this green credit policy. Our analysis suggests that the green credit policy significantly hinders the ESG performance of polluting enterprises due to the "crowding out effect." Further investigation reveals that a notable decrease in green innovation, especially in its quality, impedes ESG improvements for these enterprises. Notably, the negative effects are more pronounced for non-state-owned enterprises. Our study provides valuable insights into the dual effects of the green credit policy, highlighting its potential to restrict financing options for polluting enterprises but crowd out resources allocated for environmental projects. To address these challenges, we propose practical strategies aimed at transforming the dual effects into dual benefits, optimizing both economic and environmental effects, and enhancing the overall effectiveness of the policy. [ABSTRACT FROM AUTHOR]

Our study delved into an analysis of 128 public companies in Ghana, Kenya, and Nigeria to explore the influence of diversified board expertise on firm performance. We also investigated the impact of firm size and age on this relationship. Our results indicate that a varied blend of professional experts on corporate boards significantly boosts a company's ROA, although there is no significant effect when Tobin's Q measures firm performance. Nevertheless, we discovered that combining firm size and age negatively impacts the correlation between board expertise diversity and firm performance. Our findings support the significance of integrating agency, resource dependence, and convergence theories, implying that businesses can improve their financial performance by including an appropriate mix of expertise on their boards, especially for relatively younger small-sized firms. In contrast, more prominent and ageing firms may not see the same financial benefits. Consequently, we recommend that corporate executives and practitioners consider implementing board expertise diversity to enhance their firms' financial performance. [ABSTRACT FROM AUTHOR]

In the present digital environment, a data-driven organizational culture has become a vital emerging driver of organizational growth. This data-driven culture has assumed an advanced shape due to adoption of artificial intelligence (AI) integrated business analytics tools in the organization. Data-driven culture in the organization could considerably impact product innovation strategy as well as organizational process alteration. In this context, the aim of this study is to investigate how an organization's data-driven culture impacts process performance and product innovation that led to enhanced organizational overall performance and higher business value. Methodologically, supported by relevant extant literature and inputs from the resource-based view and dynamic capability theories (organizational context), a conceptual model and a set of hypotheses are initially developed. These are subsequently statistically validated through a survey involving 513 usable responses from employees of different organizations using business analytics tools embedded with AI capability. The findings demonstrate that an organizational data-driven culture has considerable moderating impact on product innovation and process improvement, which ultimately enhance business value through improved organizational overall performance. [ABSTRACT FROM AUTHOR]

This study investigates the influence of Environmental, Social, and Governance (ESG) scores on the clustering and community formation of companies within various network models. Using daily closing prices of 78 companies operating in the Borsa Istanbul Sustainability Index, we constructed correlation, mutual information (both continuous and discrete), and causality (both linear and nonlinear) networks to analyse intercompany relationships. We performed community detection using the Leading Eigenvector and Girvan–Newman methods, which revealed that companies within the same sector, particularly in the financial and manufacturing sectors, tend to form tight-knit communities. These intra-sectoral clusters reflect strong market behaviour correlations driven by sector-specific factors. Additionally, mixed-sector communities highlighted the presence of significant inter-sector dependencies. To assess the impact of ESG scores on these communities, nonparametric tests such as the Kruskal–Wallis, Conover, and log-rank were applied. Results showed that specific ESG factors, including emission, CSR strategy, innovation, and human rights, significantly influenced community formation. For instance, companies with strong performance in emission reduction and CSR strategies were found to form more cohesive communities, emphasizing the role of sustainability in shaping financial networks. Study findings underscore the critical role of ESG factors in financial market dynamics, promoting sustainable investment practices by highlighting the importance of integrating ESG considerations into investment decisions. These results suggest that sustainability metrics not only affect individual company performance but also contribute to the formation of interconnected communities with shared sustainability practices. [ABSTRACT FROM AUTHOR]

Today, it is becoming increasingly common for companies to harness the spirit of play in order to increase worker engagement and improve organizational performance. This paper examines the ethics of play in a business context, focusing specifically on the phenomenon of workplace gamification. While critics highlight ethical problems with gamification, they also advocate for more positive, transformative, and life-affirming modes of organizational play. Gamification is ethical, on this view, when it allows users to reach a state of authentic happiness or eudaimonia. The underlying assumption, here, is that the 'magic circle' of play—a sphere that exists entirely for its own sake—should be protected in order to secure meaningfulness at work. However, we argue that this faith in play is misguided because play, even at its most autotelic, is ethically ambivalent; it does not lead inexorably to virtuous work environments, but may in fact have an undesirable impact on those who are playing. Our study thus contributes to research on the 'dark side' of organizational play, a strand of scholarship that questions the idea that play always points toward the good life. [ABSTRACT FROM AUTHOR]

In the context of China's rapid economic development, corporate pollutant emissions are increasing, underscoring the imperative for further enhancement of corporate environmental performance. Given the significance of high-tech enterprises in the environmental domain, this study examines the impact of investor attention on the corporate environmental performance of Chinese high-tech enterprises. This study utilized data from 463 high-tech enterprises in mainland China from 2011 to 2022 and employed the dynamic panel generalized method of moments (GMM) technique. The findings indicate that investor attention has a negative impact on the corporate environmental performance of high-tech enterprises. This research also finds that both media attention and coverage sentiment mitigate the negative relationship between investor attention and environmental performance of high-tech firms. Heterogeneity analysis reveals that in the sample of IT service industry, heightened media attention exacerbates the negative impact of investor attention on corporate environmental performance, and media coverage sentiment exhibits no significant moderating effect. Within samples of non-polluting and state-owned enterprises, increased media coverage sentiment amplifies the negative impact of investor attention on corporate environmental performance. This paper suggests that policymakers should foster a media environment that supports accurate and thorough environmental reporting while businesses should proactively engage with media to align investor perceptions with sustainable environmental practices. [ABSTRACT FROM AUTHOR]

As society continues to develop, a growing body of research is focusing on how informal institutions, such as culture, influence corporate behavior and economic outcomes. The aim of this study is to explore the impact of cultural inclusiveness, as a non-formal institution, on firm performance. Using Chinese A-share listed firms as our sample, we employ econometric methods to analyze the relationship between cultural inclusiveness and firm performance. Our findings reveal that cultural inclusiveness enhances firm performance, particularly evident in regions with higher levels of cultural inclusiveness, where firms tend to exhibit higher return on equity. To address concerns of endogeneity, instrumental variable regression using regional topographical changes is employed. Mechanism testing indicates that cultural inclusiveness primarily improves firm performance by reducing financial constraints and optimizing employee structure. Additionally, the study finds that cultural inclusiveness has a more pronounced impact on firms with higher corporate social responsibility (CSR) performance as well as those with greater investment in research and development (R&D). This study provides a comprehensive empirical explanation of how cultural inclusiveness influences the sustainable operation of businesses. [ABSTRACT FROM AUTHOR]

We study the influence of locally-rooted directors (LRDs)—board members with personal ties to a company's geographic location—on firm performance. On the one hand, LRDs may provide valuable local know-how and access to local networks. On the other hand, as their appointments may go back to social ties with insiders (e.g., corporate directors, top executives, or large shareholders), LRDs may be used to extract rents and lack relevant experience, business skills, and independence. Using the directors' alma mater as a proxy for local roots, LRDs turn out to be heavily overrepresented, making up 30% of all directors in our sample. We show that LRDs are negatively related to Tobin's Q. However, this finding does not apply to domestically-oriented companies, i.e., firms without material foreign sales, and firms in regulated industries. Thus, while the results indicate that LRDs harm firm performance on average, their presence may be optimal in some cases. [ABSTRACT FROM AUTHOR]

This paper investigates how the environmental performance of firms impacts their participation in global value chains (GVC). The analysis is based on a dataset of 15,922 firms located in 32 European, Central Asian, Middle Eastern, and North African countries, with information on firm-level environmental practices provided by the recent Green Economy module of the World Bank Enterprise Surveys. We propose the Firm Environmental Performance Index (FEPI), a new index measuring firms' adoption of environmental actions. The index is used in a two-part instrumental variable approach to estimate the impact of FEPI on both the probability and the intensity of GVC participation, while addressing reverse causality concerns. The results indicate that a one-standard deviation increase in the FEPI increases the probability of participation by 6.4 percentage points, a result consistently observed in all regions and sectors. The effects on the intensity of participation are mostly non-significant. However, a negative effect is observed in exceptional cases, namely for firms that are importers only, have low-technology practices, and are located in less developed regions. The results are robust to alternative definitions of GVC participation, inclusion of alternative instruments, and to partial violations of the exclusion restriction. All in all, they suggest that complying with environmental regulations could lead to higher integration in global markets, albeit with adverse effects in some particular cases. [ABSTRACT FROM AUTHOR]

This research is important for both the academic and business environments due to the extraordinary results obtained. Additionally, the significance of the study is also attributed to the addressed topic, which is intensively studied in the world of corporate finance. The primary aim of this research is to scrutinize a cohort of 66 information and technology (IT) companies, all of which are constituents of the American Standard and Poor's 500 Index (S&P 500). The study period spans two decades, covering the years 2003–2022. To summarize the outcomes, the analytical framework incorporated linear models with both fixed (fe) and random effects (re), as well as quantile regression models. This study's key outcomes highlight that firm size, sales growth, current ratio, long-term debt to capital, free cash flow, asset turnover and receivable turnover, board meeting frequency, female board representation, chief executive officer age, audit committee independence, and the presence of compensation and nomination committees, alongside a pandemic indicator, positively impact firm performance. Conversely, firm age, dividend payout ratio, effective tax rate, board size, chief executive officer duality, and corporate social responsibility committee presence have negative effects on performance. Also, regarding quantile regressions, CEO duality significantly influences companies with high profitability rates, and companies with low to medium profitability rates are more strongly and negatively influenced by board size. The implications of the core policy in this research focusing on corporate governance will consider certain rules and guidelines regarding financial transparency and protecting shareholders' interests. Additionally, it will take into account the independence of the board of directors and the presence of its committees, as well as ethical leadership practices. [ABSTRACT FROM AUTHOR]

Organizations must employ big data analytics to maintain sustained innovation in the highly dynamic and evolving business landscape. Even though BDA has a transformative power to revolutionize how businesses do things and engage with their customers' adopting BDA has faced significant challenges, especially in developing countries. This research aims to create a theoretical framework to understand how organizational readiness for BDA can influence sustainable innovation performance. Sampling errors were mitigated through a time-lagged study design, and the data was collected in three phases. The test results using Partial Least Squares Structural Equation Modeling show that organizational readiness is a critical mediator, establishing a robust chain between BDA skills and sustainable innovation performance. The results of this study imply the need for organizational foundation and alignment, which are critical to the compelling strategic deployment of BDA for sustainability innovation performance. Thus, this study can offer a valuable contribution to this topic in the future and a profound implication of the phenomenon at receptive stages. [ABSTRACT FROM AUTHOR]

The study contributes to understanding the impact of top management team (TMT) member diversity on corporations' performance and value in emerging markets. It examines three dimensions of diversity in TMT: gender, education, and foreign nationalities, providing insights into how these factors influence corporate performance and value. The study's quantitative analysis of 70 non-financial corporations from Brazil, Egypt, India, Russia, Saudi Arabia, South Africa, and Turkey from 2013 to 2022 using cross-sectional unit analyzes helps establish empirical evidence on the relationship between TMT diversity and corporate performance in emerging markets. Study's findings can inform corporations in emerging markets about the importance of promoting diversity in their top management teams to improve performance and value. The study found a significant impact of top management team diversity based on education and foreign nationalities but a non-significant impact on gender on some key performance indicators (KPIs). The study can explain the non-significant impact of gender according to shifting the prevailing theory from sexual selection theory to prospect theory. On the other hand, the study believes that the optimal mass of diversification, or the weight of members with diverse backgrounds, determines whether the impact of diversification is positive (it leads to increased creativity, innovation, problem-solving ability, talent attraction and retention, and employee engagement and productivity) or negative (it leads to increased organizational conflict and communication difficulties). If it is less than this mass, the benefits of diversity are limited, but if the mass is greater than it, the harms of diversity are greater than the benefits. The study also highlights the need for future research in the area of diversity in top management and provides a plan outlining steps to enhance diversity in top management teams. [ABSTRACT FROM AUTHOR]

Textual data are increasingly used to predict firm performance, however extracting useful signals towards serving this goal with a continuously growing repository of financial reports and documents is challenging, even by the state-of-the-art machine learning and natural language processing (NLP) techniques. We propose a novel approach to automatically create a word list from SEC filings (10-K and 8-K reports) using advanced deep learning and NLP techniques and compare their performance against the widely used Loughran–McDonald sentiment dictionaries. We additionally analyze a corpus of 8-K and 10-K documents to evaluate their relative informativeness for firm performance prediction. Since 8-K filings provide corporate updates along a fiscal year, we compare their content against changes in 10-Ks between consecutive years to assess the incremental value of information provided in these regulatory filings. Information effectiveness is examined by predicting six key financial indicators for a set of US banks using ridge regression. Our results positively support sentiment dictionaries expansion by automatically extracting meaning from text and highlight the benefits obtainable from utilizing update filings. [ABSTRACT FROM AUTHOR]

The servitization literature has evolved into a rich field of academic inquiry that today calls for a consolidation of extant knowledge and opens new opportunities for meta-analytic reviews. The present research provides a fine-grained understanding of the servitization–firm performance relationship. We first develop an integrative conceptual framework that systematically ties together factors identified in prior research that affect the relationship. Through a meta-analysis of 379 effect sizes across 85 studies, we then provide broad-based empirical evidence that servitization indeed exerts a positive effect on firm performance. We further examine a broad set of potential moderators affecting the servitization–performance relationship to understand and explain the heterogeneity and, at times, the inconsistency of prior results regarding the relationship's directionality and strength. Finally, we provide guidance for future research, from both a substantive and methodological standpoint, and sketch out an integrative conceptual model for future research. [ABSTRACT FROM AUTHOR]

The study aims to unravel the impact of Environmental Social Governance (ESG) scores on the firm's market performance of polluting companies. Moreover, the study also finds out moderating effect of green initiatives. The study's population consisted of 67 companies that were chosen from the list of polluting companies given by the Central Pollution Control Board of India for the post-COVID-19 timeframe of 2020–2023. Regression analysis was conducted to analyze the relationship between the variables. The results indicate that the performance of ESG will improve the financial performance of the company. In most cases, the results suggest that firms with heightened ESG performances have better market performance. Furthermore, the results show that there is no moderating effect of green initiatives. This study's findings have important implications for stakeholders. The examination's findings should help managers understand the state of ESG and financial market performance after the coronavirus crisis, as well as the relationship between FP and ESG responsibility fulfilment. The study has significant practical implications that may help managers create plans and guidelines for implementing and improving ESG scores to maximize performance. Population was the major limitation of the study. [ABSTRACT FROM AUTHOR]

This research examines the function of organizational respect and psychological capital in influencing performance through organization-based self-esteem and perceived organizational membership as mediators. We gathered data from 240 working executives from different industries and employed partial least squares structural equation modeling to test hypotheses. We comprehensively tested the measurement and structural models to understand the relationships among the constructs. We find that organizational respect has a positive impact on organization-based self-esteem and perceived organizational membership and impacts organizational performance positively. Perceived organizational membership partially mediates the relationship between organizational respect and organizational performance. Organization-based self-esteem partially mediates the relationship between respect and perceived organizational membership. Employee's psychological capital facilitates organization-based self-esteem. This study highlights the importance of organizational respect in developing organization-based self-esteem and perceived organizational membership leading to performance. Psychological capital also plays a significant role in enhancing self-esteem and perceived organizational membership. We contribute by presenting one of the first studies establishing the role of organizational respect in enhancing performance through organization-based self-esteem and perceived organizational membership. We highlight that organizations should invest in developing strong employee-organization relationships through respect. This will enable them to cultivate a robust perception of sense of community and belongingness, enhance employees' self-esteem, promote cooperative behaviors and improve collective performance. They should also support the development of psychological capital through developmental training toward the same ends. [ABSTRACT FROM AUTHOR]

Achieving exceptional financial performance is a primary goal for every management team due to its importance in establishing a solid firm structure and facilitating growth. However, several factors consistently hinder the attainment of this objective, resulting in adverse effects on a firm's performance and financial success. Therefore, this study aims to analyze scholarly publications to understand relevant factors influencing the financial performance of firms in the manufacturing industry. Using keywords in the Scopus database, we identified a total of 808 papers published between 1987 and 2022, and ultimately selected 289 for further analysis based on predetermined criteria. The selected literature was then analyzed in two different ways. First, we discerned the crucial factors affecting the financial performance of manufacturing firms. Our systematic review revealed that organizational characteristics (e.g., CSR practices, strategy, board characteristics, innovation & technology, information, decision-making and communication, and environmental and sustainability practices) play a more significant role in determining the financial performance of a firm than external factors (e.g., market economic parameters, government policies & support, and competition). Second, we employed VOSViewer software to dissect the selected publications, including the creation of bibliometric co-word maps and the examination of bibliographic coupling among journals. The results yielded valuable insights into leading nations, notable journals, noteworthy studies, trending keywords, and prominent publications in this field. Moreover, our research emphasizes the multifaceted nature of financial performance-related factors, offering useful insights for future studies exploring the interplay between factors and the performance of manufacturing firms. [ABSTRACT FROM AUTHOR]

This study investigated whether the facial expressions of chief executive officers (CEOs) are associated with corporate performance. A photograph of the CEO or president of each company that appeared on the Fortune Global 500 list for 2018 was taken from the company's official website. The smile intensity and action unit activation in each face were calculated using a pre-trained machine learning algorithm, FACET. The results revealed a positive association between smile intensity and company profit, even when controlling for the company's geographic location (Western culture versus others) and the CEO's gender. Furthermore, when the type of smile was examined with the activation of each action unit, this significant positive association was identified in the dominant smile but not in the reward and affiliative smiles. Relationships among the leader's smile intensity, group strategy, and group performance are discussed. [ABSTRACT FROM AUTHOR]

This paper examined accounting information systems (AIS) as a mediator between small and medium-sized enterprises (SMEs) strategies, including (finance source, administrative innovation, organizational culture, developing capabilities levels of SMEs, information source, development of business managers, and technological innovation) and organizational performance. In this quantitative study, 450 self-administered questionnaires were distributed to the managers and owners of SMEs using purposive sampling. Data were analyzed using the structural equation modeling (SEM) method via SmartPLS3 Software. The study offers empirical findings on the importance of AIS as a mediator, considers various factors, and provides clear strategies for better work performance. The study confirmed that the SMEs' strategy and the use of an AIS significantly and positively affected SMEs' organizational performance, while AIS use partially mediated between SMEs' strategy and organizational performance. This result confirms that an SME can enhance its performance by using AIS. AIS can support organizational performance through an SME strategy, avoid human errors, provide cost-against-time savings, and assist in timely internal decision-making considering long-term benefits. However, the results may not reflect the actual performance situation and cannot be generalized to all provinces or other countries because environments differ. [ABSTRACT FROM AUTHOR]

Political behavior is observed in every organization and is one of the most significant phenomena in organizations. Despite its importance, few studies have been conducted to explore the impact of perceived organizational politics on public organizations. This study examined the direct impact of perceived organizational politics on organizational performance as well as its indirect impact on performance through its influence on two mediating factors, task conflict and relationship conflict, using a data from a survey of New Jersey local government employees. Findings are discussed along with practical considerations and suggestions for future research. [ABSTRACT FROM AUTHOR]

Purpose: This study aimed to present an index (IEP) to evaluate the environmental performance of the sugar-energy industrial process based on the waste generated in manufacturing operations. The residues considered in this study were: vinasse, filter cake, ash and soot, residual waters, and sewage sludge. Methods: The index created was developed to take into account, and to be directly proportional to the environmental impact of each residue generated by the sugar-energy production, to the relative spatial dispersion that each waste can reach, and to the environmental fragility of the hydrographic basin where the plant under evaluation is inserted and works. The lower IEP, the better the company valuation. Results: The index was tested in a real company and exhibited an IEP Total = 1,4.1013 km2.p/yr, which shows weak waste management by the enterprise. Vinasse was responsible for 50% of the IEP Total, while filter cake contributed 45% to it. Ash and soot, residual waters, and sewage sludge were together responsible for 5% of the IEP Total. Conclusion: The theoretical conception used in this study is inspiring for the development of new studies on environmental assessment measurement. The study showed that vinasse is the most problematic waste in environmental terms, a conclusion that is in line with academic studies. Nevertheless, the waste with the greatest potential impact on the environment is filter cake. Despite this, filter cake presented a lower IEP(i) than vinasse, given that its negative impact on the basin is smaller. Both wastes contributed 95% of the IEP Total, which places them among the residues to be managed with greater attention. [ABSTRACT FROM AUTHOR]