scholarly journals OWNERSHIP, COMPENSATION AND BOARD DIVERSITY AS INNOVATION DRIVERS: A COMPARISON OF U.S. AND CANADIAN FIRMS

2020 ◽  
pp. 2150025
Author(s):  
GAMAL ATALLAH ◽  
CLAUDIA DE FUENTES ◽  
CHRISTINE A. PANASIAN
Keyword(s):  
Board Members ◽  
Board Diversity ◽  
Compensation Contracts ◽  
Innovation Activities ◽  
Economic Downturns ◽  
The 2008 Financial Crisis ◽  
Innovation Intensity ◽  
Institutional Owners ◽  
D Investment

Using a large sample of North American firms, from 1999 to 2016, we investigate the effect of corporate governance structures, specifically ownership, board characteristics, and executive compensation contracts on innovation intensity and output. We consider both R[Formula: see text]D expenditures and patents as innovation proxies and evaluate consequences of the economic downturns of 2000 and 2008. We find that R[Formula: see text]D investment increases with ownership by institutional blockholders and with the number of institutional owners, confirming the key role institutions play in innovation activities of firms. We observe higher R[Formula: see text]D levels for firms with more independent boards, more females board members and more outside directorships held by directors. We report that firms with CEO/chair of the board duality have lower R[Formula: see text]D intensity, as do firms with higher ownership by directors and with a higher mean board age. Innovation is negatively related to CEO salary levels, but positively related to the ratio of incentives to total compensation, confirming that incentives contribute to aligning shareholders and management interests, which leads to better long-term decisions. However, those incentives reduce the number of patents. We do not find any systematic changes in R[Formula: see text]D for the 2000 recession, however there is an increase for the 2008 financial crisis.

Corporate innovation and innovation efficiency: does religion matter?

2016 ◽  
Vol 7 (2) ◽  
pp. 150-191 ◽  
Author(s):  
Dan Huang ◽  
Dong Lu ◽  
Jin-hui Luo
Keyword(s):  
Stochastic Frontier Analysis ◽  
Alternative Measure ◽  
Content Type ◽  
Frontier Analysis ◽  
Less Is More ◽  
Chinese Firm ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
Innovation Intensity ◽  
D Investment

Purpose The purpose of this paper is to examine whether and how the extent of religion in a firm’s social environment affects corporate innovation and innovation efficiency from the perspectives of religion-related risk aversion and religion-based social norms. Design/methodology/approach Using a sample of 8,601 Chinese firm-year observations from 2007 to 2012, this paper examines the relationship between religion and innovation intensity, as well as innovation efficiency. A battery of checks, that is, adopting Heckman selection model, using a province-level measure of religiosity and an alternative measure of innovation intensity, and taking the stochastic frontier analysis method to capture corporate innovation efficiency, are conducted to alleviate the concern of self-selection and to guarantee the robustness of the findings of this paper. Findings This paper finds strong evidence that firms registered in more religious regions, that is, regions with more Buddhist monasteries within a certain radius, undertake fewer innovation activities as measured by the ratio of R&D investment over total sales income but achieve higher innovation efficiency reflected by the value-relevance of R&D investment. Originality/value This paper complements the existing literature by suggesting that religion can serve as an informal social mechanism and performs a “less is more” effect in disciplining corporate innovation activities.

scholarly journals Specifics of Management of Enterprise Innovation Activities in the Czech Republic – The Decision-Making Mechanism

2018 ◽  
Vol 26 (3) ◽  
pp. 137-142
Author(s):  
Jindra Peterková ◽  
Jiří Franek
Keyword(s):  
Decision Making ◽  
New Technologies ◽  
Innovation Management ◽  
Analytic Hierarchy ◽  
The Czech Republic ◽  
Innovation Activities ◽  
Enterprise Innovation ◽  
Technical Solutions ◽  
Hierarchy Process

Abstract The majority of Czech managers are aware that the long-term competitiveness of the company depends primarily on the use of innovative technical solutions and investments in new technologies. Despite awareness of the importance of innovation, many companies do not know how to manage, implement, and evaluate them. Empirical research showed that most innovation firms implement, but do not systematically manage the implementation of innovative projects and the allocation of funds. There is a contradiction between companies’ ability to orientate themselves in the approaches available in the area of innovation management and the existence of a large number of approaches that can be used to address a particular type of innovation problem. A set of innovation concepts has been created to solve those challenges. Practical steps of the decision-making mechanism for selecting innovation concepts have been proposed. The decision-making mechanism is based on the analytic hierarchy process (AHP) and serves primarily for managers of medium and large enterprises.

scholarly journals Population of Puerto Rico not displaced by Hurricanes (for now): It’s the economy

2019 ◽  
Author(s):  
Matt Kaneshiro ◽  
Collin McCarter ◽  
Mario Marazzi ◽  
Alexis R Santos-Lozada
Keyword(s):  
Puerto Rico ◽  
Population Change ◽  
Population Decline ◽  
Data Sources ◽  
Quality Data ◽  
Economic Data ◽  
High Quality Data ◽  
Economic Downturns ◽  
Employment Trends

In September 2017, Hurricane Maria made landfall on Puerto Rico and caused 102 billion worth of damages, demolishing the electric grid and severely affecting essential daily services that continued as of the second half of 2019. Amidst the chaos, analysts were expected to provide stakeholders with impact estimates immediately following the hurricane. Unfortunately, this strong need for fast information after the disaster coincided with limited options for high-quality data sources to help stakeholders address challenges such as resource allocation and bond-pricing. Given the stabilization of data sources since the hurricanes, this paper examines historical demographic and economic data to give a long-term view of population change in Puerto Rico. First, we juxtapose population, employment, hurricanes and significant economic events to make the argument that the clearest driver of population decline in Puerto Rico is simply the economic health of the island (i.e. employment). Second, we focus on Pre- and Post-Hurricane Irma/Maria migration estimates to highlight the spike in outmigration following the hurricanes, as well as the, return immigration in the first half of the first half of 2018. Finally, we study historical net outmigration and employment trends to illustrate the short-lived outmigration impacts of hurricanes while also highlighting the long-term outmigration impacts of economic downturns. In short, we argue that the primary reason people are leaving Puerto Rico is the struggling economy and not hurricane-related destruction. The hurricanes simply exacerbated the economic-related outmigration trends and we believe that any serious plans for Puerto Rico’s restoration must include special attention to stimulate the economy.

scholarly journals The Impact of Green Credit on the Green Innovation Level of Heavy-Polluting Enterprises—Evidence from China

2022 ◽  
Vol 19 (2) ◽  
pp. 650
Author(s):  
Zhifeng Zhang ◽  
Hongyan Duan ◽  
Shuangshuang Shan ◽  
Qingzhi Liu ◽  
Wenhui Geng
Keyword(s):  
Natural Experiment ◽  
Double Difference ◽  
Credit Policy ◽  
Green Innovation ◽  
Innovation Activities ◽  
Corporate Credit ◽  
Credit Financing ◽  
The Cost ◽  
The Impact

This article uses the “Green Credit Guidelines” promulgated in 2012 as an example to construct a quasi-natural experiment and uses the double difference method to test the impact of the implementation of the “Green Credit Guidelines” on the green innovation activities of heavy-polluting enterprises. The study found that, in comparison to non-heavy polluting enterprises, the implementation of green credit policies inhibited the green innovation of all heavy-polluting enterprises. In the analysis of heterogeneity, this restraint effect did not differ significantly due to the nature of property rights and the company’s size. The mechanism test showed that green credit policy limits the efficiency of business investment and increases the cost of financing business debt. Eliminating corporate credit financing, particularly long-term borrowing, negatively impacts the green innovation behavior of listed companies.

scholarly journals Corporate Board Diversity and Financial Performance: The Nigerian Insurance Sector’s Perspective

Growth ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 20-25
Author(s):  
Gbarato, Ledum Moses
Keyword(s):  
Financial Performance ◽  
Gender Diversity ◽  
Negative Influence ◽  
Least Square ◽  
Insurance Companies ◽  
Board Members ◽  
Board Composition ◽  
Corporate Board ◽  
Board Size ◽  
Board Diversity

The presence of appropriate gender diversity, board size and board composition does not only promote favourable organizational ambience but also offers meaningful upsurge in the financial position of an organization relatively. It is on this premise that prompted the essence to examine the relationship between corporate board diversity and financial performance of insurance companies in Nigeria for the period 2014 to 2018. Secondary data from Cornerstone Insurance Plc. and Lasaco Assurance Plc. were employed in the study. Using the Panel least Square regression technique, the results reveal that gender diversity, board size and board composition exert insignificant influence on profit before tax as the measure of financial performance. However, while gender diversity exerts negative influence, board size and board composition exert positive influences on profit before tax of insurance companies. The study concludes that employment of appropriate number of directors and also in suitable composition as board members have positive effect on the financial performance of insurance firms. Therefore, the study recommended among others, that: appropriate ratio of executive to independent non-executive directors should be maintained among board members for better decision-making at the interest of all stakeholders. Also, the ratio of gender diversity (female to male directors) should be increased as the role of women in resource management cannot be relegated to the background especially in financial performance of insurance companies.

scholarly journals Project management in manufacturing enterprises

2021 ◽  
Vol 16 (2) ◽  
pp. 341-353
Author(s):  
Jaroslav Vrchota ◽  
Petr Řehoř
Keyword(s):  
Project Management ◽  
Detailed Examination ◽  
Project Managers ◽  
Current Time ◽  
Organization Management ◽  
Manufacturing Enterprises ◽  
Innovation Activities ◽  
Trial And Error Method ◽  
Short Time

Current time of turbulent changes is related to the necessity of innovation, of both the products and the entire organization management system. However, innovation activities must be implemented in a short time. Unfortunately, most of the organizations struggle with insufficient costs and the lack of creative and active human resources. All of this might lead to a loss of market position and a decrease in competitiveness. If an organization wants to succeed on the market and survive in the long term, the trial and error method is ruled out. The project management is a possible way of dealing with the issue. Project management is characterized by a detailed examination of all the aspects of the project, their detailed planning, culminating in the implementation of the change and innovation. Therefore, the current managers need to define the precise goals, the responsible persons, and deadlines, allocate the tasks, costs and define the procedures crucial for project management clearly. Only in this way an organization is able to react to major changes quickly and without any mistakes. The aim of the paper is to evaluate the factors, important for the manufacturing enterprises in the projects, and to find out the relations of such factors. The research was carried out in 2019 in 116 manufacturing enterprises in the Czech Republic. The project managers often focus their attention on customer satisfaction and cost magnitude in evaluating of the projects.

R&D Activities in Family Firms

2015 ◽  
pp. 330-351 ◽  
Author(s):  
Inna Sousa Paiva ◽  
Isabel Costa Lourenço
Keyword(s):  
Empirical Study ◽  
Family Firms ◽  
Superior Performance ◽  
Family Ownership ◽  
Entrepreneurial Success ◽  
D Investment ◽  
Business Orientation

This chapter investigates R&D investment in publicly listed family firms, and highlights the distinctions between these and non-family firms. The empirical study draws on data on German firms and their level of R&D expenditure between 2001 and 2012. The study finds that family firms spend more on R&D than non-family firms, confirming findings from the literature that long-term business orientation, superior performance and entrepreneurial success are characteristics of family firms. The research helps explain the differences between the R&D investment activities of family and non-family firms and contributes to the understanding of R&D activities of family firms, suggesting that family ownership is responsible for their strong entrepreneurial and innovation orientation.

scholarly journals How director identification shapes accountability and scope of contribution

2020 ◽  
Vol 33 (8) ◽  
pp. 1815-1834
Author(s):  
Natalie Elms ◽  
Gavin Nicholson
Keyword(s):  
Board Members ◽  
Specific Knowledge ◽  
Data Set ◽  
Content Type ◽  
Role Identification ◽  
Optimal Outcomes ◽  
Analysis Process ◽  
Self Interest ◽  
Rich Data

PurposeThe purpose of this paper is to explore why different directors feel different levels of accountability toward board tasks.Design/methodology/approachThe paper employs a reflexive three wave data and analysis process culminating in a rich data set of 49 interviews with Australian directors and 15 h of boardroom observations.FindingsDifferences in role identification lead directors to perceive their accountability differently resulting in wide variation in levels of firm specific knowledge, eventually affecting their breadth of contribution to board tasks.Research limitations/implicationsResearchers should question the application of traditional governance theory (such as agency theory) if it fails to account for individual differences in intrinsic self-interest.Practical implicationsSelecting board members for their functional knowledge alone may not always produce optimal outcomes for the board and firm. Board induction processes and ongoing director training are important tools to inform and remind directors of their role and accountabilities on a board.Originality/valueThis paper establishes that the strength of directors' identification with either the director role or expert role affects what they feel accountable for, the development of firm specific knowledge and long-term efficacy as a director.

scholarly journals The Influence of the Knowledge-Based Network Structure Hole on Enterprise Innovation Performance: The Threshold Effect of R&D Investment Intensity

2020 ◽  
Vol 12 (15) ◽  
pp. 6155
Author(s):  
Jiajia Hao ◽  
Chunling Li ◽  
Runsen Yuan ◽  
Masood Ahmed ◽  
Muhammad Asif Khan ◽  
...  
Keyword(s):  
Network Structure ◽  
Positive Impact ◽  
Threshold Effect ◽  
Innovation Performance ◽  
Short Term ◽  
The Sustainable Development ◽  
Knowledge Based ◽  
D Investment ◽  
Positive Effect

The purpose of innovation is to consume fewer natural resources in order to create sustainable performance; therefore, innovation can ease the pressure of the ecological load and promote the sustainable development of the economy. Taking the 269 enterprises listed on the main board of the electronic information industry from 2010 to 2019 as samples, using the threshold panel data model, the nonlinear relationship between the knowledge-based network structure hole and the short-term and long-term innovation performance of the enterprises were studied, and the threshold effect of R&D investment intensity was discussed. When the R&D investment intensity is from 1.96% to 15.96%, the knowledge-based network structure hole has a significant positive impact on short-term innovation performance. When the R&D investment intensity is from 5.72% to 10.64%, the knowledge-based network structure hole has a significant positive effect on long-term innovation performance. Lower R&D investment intensity can make the knowledge-based network structure hole promote the increase of short term innovation performance, but to make the knowledge-based network structure hole have a positive impact on long term innovation performance, the R&D investment intensity should be increased by more than 5.72%. When R&D investment intensity is not higher than 15.96%, the knowledge-based network structure hole has a significant positive impact on short term innovation performance, but to make the knowledge-based network structure hole maintain the positive effect on long term innovation performance, R&D investment intensity should not exceed 10.64%. Therefore, enterprises should be guided to optimize the knowledge-based network structure according to the R&D investment intensity in order to improve the short term and long-term innovation performance of an enterprise. These research results can help enterprises to save resources and promote the sustainable development of the economy.

Corporate Governance and Firm Innovation

2020 ◽  
pp. 155-181
Author(s):  
Mario Ossorio
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Institutional Ownership ◽  
Board Structure ◽  
Firm Innovation ◽  
Theoretical Perspectives ◽  
Key Factor ◽  
Relevant Variables ◽  
D Investment

Innovation is a key factor for firms' competitive advantage in the long-term and for their financial success. Scholars highlight the underinvestment problem with respect of R&D investment. This chapter focuses on two relevant variables of corporate governance that influence firms' innovation performance: firm ownership and board of directors. In the first section, the effect of ownership structure on R&D investment is analyzed. More specifically, the chapter will illustrate the effects of family ownership and institutional ownership on innovation investments. The second section explores the main theoretical perspectives investigating the functions of board of directors and the main board tasks. Lastly, three attributes of board structure and their effect on R&D investments are explored.

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