Corporate governance during financial distress – an empirical analysis

2016 ◽  
Vol 58 (5) ◽  
pp. 486-506 ◽  
Author(s):  
Marjan Marandi Parkinson
Keyword(s):  
Corporate Governance ◽  
Empirical Research ◽  
Financial Distress ◽  
Legal Theory ◽  
Case Study Research ◽  
Theory And Practice ◽  
Positive Contribution ◽  
Content Type ◽  
Financially Distressed

Purpose The traditional form of legal research with its predominant emphasis on doctrinal and theoretical analysis is now increasingly augmented by empirical research that seeks to document actions and decisions and draw broader conclusions. This relatively new research tradition is arguably making a positive contribution to legal theory and practice, particularly in the USA [for a general discussion see SJ Lubben, “Do Empricial Bankruptcy Studies Matter?” (2012) 20 ABI L Rev 715]. The paper aims to report on the use of empirical research to examine corporate governance in the context of financially distressed UK public companies. Design/methodology/approach The paper uses statutory corporate filings and mandatory stock exchange reports to document the process of informal debt resolution prior to the company’s entry into administration or Company Voluntary Arrangement. The findings are presented in an innovative way as a series of case studies focusing on process, participants and outcomes of informal debt resolution. Findings The paper concludes that it is possible to use case study research as a means to explore corporate governance in the context of financially distressed companies. Although such an approach is challenging in various ways, there are some advantages that complement more traditional research approaches. The findings show how directors’ attention shifts away from shareholders’ interests to those of creditors at times of financial distress and challenges conventional models of governance that stress shareholder value. Originality/value The distinctive features of the research are the development of a case-study based approach that draws on publicly available data sources, a process based analysis and a synthesis of corporate governance and law.

Benefits; drawbacks and boundaries to deliver JIT

2015 ◽  
Vol 22 (6) ◽  
pp. 1081-1095 ◽  
Author(s):  
Emma Jayne Dinsdale ◽  
David Bennett
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Case Study Research ◽  
Theory And Practice ◽  
Social Implications ◽  
Supply Network ◽  
Content Type ◽  
Study Research ◽  
Automotive Supply

Purpose – The purpose of this paper is to carry out case study research to analyse the current situation at a world class vehicle manufacturer (VM), the main case organisation. This paper aims to conclude whether there is scope for further inbound JIT supply focus to the case study organisations within this research. Design/methodology/approach – The data and vision for this paper comes from a literature review and practitioner papers and case studies to survey inbound supply of JIT theory and practice in a UK automotive supply network. Primary data are collected through case study research and site visits. Findings – This paper presents the findings of recent research into a UK automotive industry supply network and identifies the benefits, drawbacks and boundaries of delivering JIT. The sub-element of this paper identifies whether there is scope to make a more focus inbound supply JIT into the main VM case study organisation. Research limitations/implications – This research looks at one network over three tiers of a supply chain. However this research creates a case study hub and looks at whether there is potential to increase the level on inbound and outbound JIT supply to and from the main case organisation. Practical implications – This case study research directly gains primary research form operational supply organisations working in a supply hub network in the UK automotive industry. Social implications – Social implications here allow an improved understanding of efficient JIT and supply chain issues. Originality/value – This research considers the enhanced relationship amongst automotive supply chain members to ensure a clear understanding and position the importance of a JIT; lean and agile approach in practice.

A little help from my friends: how purchasing gains influence in complex business-to-business services: the case of legal

2017 ◽  
Vol 32 (2) ◽  
pp. 206-217 ◽  
Author(s):  
Wendy L. Tate ◽  
Lisa M. Ellram ◽  
Ulrich Schmelzle
Keyword(s):  
Supplier Management ◽  
Positive Contribution ◽  
Business Service ◽  
Case Study Method ◽  
Business Services ◽  
Content Type ◽  
Additional Costs ◽  
Service Procurement ◽  
Business To Business

Purpose The purpose of this research is to develop an understanding of how purchasing can become meaningfully involved in complex business-to-business service purchases. Design/methodology/approach A single in-depth case study method of an exemplar organization was applied to better understand the purchasing function’s role in adding to the value proposition in complex, non-traditional business-to-business service purchases. Findings Powerful allies or advocates can mediate purchasing involvement in service procurement. However, once the involvement is initiated, purchasing must make a positive contribution with respect to the specific needs and expectations of the budget owner to retain its influence. Research limitations/implications This research extends institutional theory to show how powerful allies or advocates can mediate purchasing involvement in the complex services spend. Practical implications This study describes the potential impact of purchasing’s involvement in complex services spend and highlights the opportunities for purchasing managers to improve supplier management and drive out additional costs. Originality/value For the business practitioner, this research provides evidence regarding how individual functions can gain influence in the organization. A conceptual model describes the meaningful involvement of purchasing in complex business-to-business service purchases.

Consumer reactions towards femvertising: a netnographic study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ana Marina Lima ◽  
Beatriz Casais
Keyword(s):  
Design Methodology ◽  
Case Study Research ◽  
Female Empowerment ◽  
Women Consumers ◽  
Cultural Changes ◽  
Content Type ◽  
Online Comments ◽  
Consumer Reactions ◽  
Corporate Social

PurposeThis paper identifies consumer reactions towards female empowerment in advertising in order to explore the supporting arguments for criticisms of lack of authenticity and the figuring of sexist stereotypes.Design/methodology/approachThe authors conducted a multi-case study research with content analysis of 905 coded online comments in a video hosting website towards four femvertising campaigns.FindingsResults indicate that femvertising plays an important role in the emotional connection between women and brands, but consumers may react negatively to femvertising when brands do not show knowledge about the real feminist values, maintaining sexist stereotypes. Consumers also blame companies of hypocrite and exploitation to sell products if there is not authenticity and brand-cause fit.Originality/valueFemvertising appears as a consequence of cultural changes and corporate social responsibility in order to engage women consumers. This paper contributes with explanations to sustain the dichotomic reactions towards femvertising, showing evidence of why some people react favourably and other people react negatively.

Using action research in innovation project management: building legitimacy and organizational learning in an SME during a merger process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constance Elizabeth Kampf ◽  
Charlotte J. Brandt ◽  
Christopher G. Kampf
Keyword(s):  
Project Management ◽  
Organizational Learning ◽  
Action Research ◽  
Management Practices ◽  
Innovation Process ◽  
Theory And Practice ◽  
Organizational Level ◽  
Content Type ◽  
Innovation Project

PurposeThe purpose is to explore how the process of action research (AR) can support building legitimacy and organizational learning in innovation project management and portfolio practices in merger contexts.Design/methodology/approachMeta-reflection on method issues in Action Research through an action research case study with an innovation group during an organizational change process. This case demonstrates an example of an action research cycle focused on building practitioner legitimacy rather than problem-solving.FindingsKey findings include (1) demonstrating how AR can be used for building legitimacy through visualizing the innovation process, and embedding those visuals in top management practices of the organization; and (2) demonstrating how AR can work as an organizational learning tool in merger contexts.Research limitations/implicationsThis study focuses on an action research cooperation during a two-and-a-half-year period. Thus, findings offer the depth of a medium term case study. The processes of building legitimacy represent this particular case, and can be investigated in other organizational contexts to see the extent to which these issues can be generalized.Practical implicationsFor researchers, this paper offers an additional type of AR cycle to consider in their research design which can be seen as demonstrating a form of interplay between practitioner action and organizational level legitimacy. For practitioners, this paper demonstrates a connection between legitimacy and organizational learning in innovation contexts. The discussion of how visuals were co-created and used for building legitimacy for an innovation process that differs from the standard stage gate model demonstrates how engaging in AR research can contribute to developing visuals as resources for building legitimacy and organizational learning based on connections between theory and practice.Originality/valueThis case rethinks AR practice for innovation project management contexts to include legitimacy and organizational learning. This focus on legitimacy building from organizational learning and knowledge conversion contributes to our understanding of the soft side of innovation project management. Legitimacy is demonstrated to be a key concern for innovation project management practices.

scholarly journals The Impact of Interplay Between Formal and Informal Institutions on Corporate Governance Systems: a Comparative Study of CEECs

2018 ◽  
Vol 21 (4) ◽  
pp. 85-104
Author(s):  
Małgorzata Godlewska ◽  
Tomasz Pilewicz
Keyword(s):  
Corporate Governance ◽  
Deductive Reasoning ◽  
Case Study Research ◽  
Individual Case ◽  
Informal Institutions ◽  
Comparative Case Study ◽  
Governance Systems ◽  
Formal And Informal Institutions ◽  
The Impact

The central point of this paper is to present the results of comparative case study research concerning the impact of the interplay between formal and informal institutions in the corporate governance systems (CGS) of Central and Eastern European Countries (CEEC). Particular focus was put on the values of the corporate governance codes (CGC) of CEECs, as well as on transparent ownership structures, transactions with related parties, the protection of minority shareholders, independent members of supervisory boards, and separation between the CEO position and the chairman of the board of directors. The main subject of interest concerns two research areas: the character of the relationship between formal and informal institutions, as well as whether the interplay between them is relevant to the CGSs of CEECs. Moreover, the author investigates whether the CGCs of CEECs consist of regulations that are compatible with the values set up in preambles using research methods such as individual case study or deductive reasoning. The conclusion presented in the paper was drawn on the basis of a review of the literature and research on national and European corporate governance regulations, as well as the CGC of CEECs. The primary contribution this article makes is to advance the stream of research beyond any single country setting, and to link the literature on the interplay between formal and informal institutions related to CGSs in a broad range of economies in transition (‘catch up’ countries) like CEECs. This paper provides an understanding of how the interplay between formal and informal institutions may influence the CGCs of CEECs.

The role of the Troika on the Greek central government accounting reforms

2018 ◽  
Vol 31 (3) ◽  
pp. 316-330 ◽  
Author(s):  
Sandra Cohen ◽  
Sotirios Karatzimas
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Central Government ◽  
Case Study Research ◽  
Extreme Case ◽  
Resource Dependency ◽  
Reform Process ◽  
Content Type

Purpose The purpose of this paper is to explore the role of the Troika’s advent played in the progress of the budgeting and the financial reporting systems reform at the Greek central government level. Design/methodology/approach The approach of an extreme country case study is adopted. The data used in the paper have been identified through document analysis performed on the relevant documents produced by the Troika, the Greek Ministry of Finance, and other relevant sources. The reform process is seen through the lens of the neo-institutional theory and the resource dependency theory. Findings Although both reforms targeted the introduction of best international practices – particularly useful in periods of financial distress and scarce resources – the advent of the Troika affected their progress and changed the priorities. As a result, the reform was redirected toward strengthening the cash budgeting system. Research limitations/implications The study is subject to the limitations of an extreme case study research. Practical implications This is a case where resource dependency changes political priorities and directions and affects the evolvement of state budget and accounting reforms under way. Originality/value The role of external fund providers in public sector financial management reform priority-setting, in the case of a developed Eurozone country, is analyzed. The study contributes to the research agenda on accounting practices in times of austerity.

The “comply or explain” principle in the Republic of Slovenia

2018 ◽  
Vol 18 (5) ◽  
pp. 839-857 ◽  
Author(s):  
Danila Djokic ◽  
Mojca Duh
Keyword(s):  
Case Study Research ◽  
Public Companies ◽  
Gradual Improvement ◽  
Content Type ◽  
Regulatory Frameworks ◽  
The Republic ◽  
The Eu ◽  
Comply Or Explain

Purpose This paper aims to provide an overview of the quality of corporate governance (CG) disclosures in the framework of CGS and the “comply or explain” code principle in Slovenia. It aims to observe the differences among companies of the prime, standard and entry markets in terms of the differences in governance standards and regulatory frameworks. Design/methodology/approach This paper analyzes the historical development, legal approach and methods used in the regulation of the “comply or explain” principle in Slovenia. In the 2014 SEECGAN research – Slovenia, we measured the quality of CG by applying the newly created SEECGAN index methodology covering seven segments of CG and assessing 98 attributes. This paper upgrades the results of this research with additional case study research. Findings The analysis from 2011 to 2014 on the “comply or explain” principle showed a gradual improvement of transparency in Slovenian public companies. The 2014 SEECGAN research – Slovenia revealed that the number of specific and high-quality explanations of deviations has increased. The study in this paper showed that the governance practice in some cases is still not in line with code recommendations and does not disclose the deviations from the code. Originality/value Disclosures of the Slovenian public companies are presented for the period 2004-2018. This paper points out the improvements to be realized to change unsatisfactory practices. The measurement of the quality of CG by the 2014 SEECGAN research – Slovenia introduced a methodology, which could be recognized and improved by the EU and/or its member states.

Indirect financial distress costs in non-financial firms: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Shahzadah Fahed Qureshi ◽  
Zahra Masood Bhutta
Keyword(s):  
Financial Distress ◽  
Intangible Assets ◽  
Emerging Market ◽  
Investment Policy ◽  
Tobin’S Q ◽  
Optimal Model ◽  
Tobin's Q ◽  
Content Type ◽  
Tangible Assets ◽  
Financially Distressed

Purpose This study aims to analyse 508 financially distressed firm-year observations for the period 2010–2018 of Pakistan Stock Exchange (PSX) listed firms to examine the magnitude of indirect financial distress costs (IFDC) and to investigate which firm-specific variable is relatively important in explaining these indirect costs. This will not only enrich empirical literature but also helpful in cross-country comparison. Design/methodology/approach Optimal model selection along with panel data analysis technique is used to select the most optimal model to observe the findings. Financial distress is measure through Altman’s Z-score and firm-specific variables cover leverage, level of intangible assets, investment policy, tangible assets, firm’s size, level of liquid assets and Tobin’s Q of sample firms. Findings The findings of this study show that the average size of IFDC for the sample observations is 6.70%. In addition to this, finding further suggest that leverage, the level of intangible assets and changes in investment policy have positive while the size of the firm and Tobin’s Q have a significant negative impact on IFDC. Further, this paper argues that the level of tangible assets and liquid assets are statistically unimportant in observing the IFDC for PSX financially distressed firm-year observations. Practical implications The findings of this study provide more insight to corporate managers and investors about the association between firm-specific financial characteristics and IFDC concerning Pakistani firms. Furthermore, this study contributes to the existing literature by adding new evidence from developing countries such as Pakistan which are helpful for regulatory bodies and policymakers in the formulation of long-term strategies to manage the financial distress costs. Originality/value The study extends the body of existing literature on IFDC regarding Pakistan. The results suggest that policymakers may pay special attention to the quality of a firm’s capital structure strategies while predicting corporate financial distress costs.

Civics education in Malaysia: a clash between ethics, religion and cultural norms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vishalache Balakrishnan
Keyword(s):  
Case Studies ◽  
Case Study Research ◽  
Project Based Learning ◽  
Cultural Norms ◽  
Digital Citizenship ◽  
Civics Education ◽  
Content Type ◽  
Study Research ◽  
Qualitative Approaches

PurposeTo showcase the importance of digital citizenship in the current era. This article compares the nine features of digital citizen provided by Ribble and Bailey (2007) with a case study conducted in a multicultural setting and identifies the tensions between ethics, religion and cultural norms in that environment.Design/methodology/approachA case study approach has been used in this research. Why case study? Because it is unique and provides in-depth, unique and invaluable findings. Case studies researchers have contributed to the development of case study research from diverse disciplines. Historical examples of case studies go back as far as the nineteenth century with the biography of Charles Darwin (Stewart, 2014). The dominance of positivism in science in the late 1940 and 1950s in social science sidelined qualitative approaches such as case studies. Although case study research was often criticized for its inability to support generalizations, and thus, provided limited validity and value as a research design (Merriam, 2009; Stewart, 2014), case study research provides intensive analysis of an issue. A Case study is intrinsic, instrumental and collective (Stake, 1995, 2006). Case study research encourages the detailed enquiry of a unit of analysis within its context.FindingsFindings show that current society needs to be educated on the nine aspects of digital citizenship. In the current era, changes are so rapid that every now and then, there must be collaboration and cooperation between different agencies to ensure that the tension between religiosity, cultural norms and ethics would be able to find some common ground. With more knowledge and wisdom on human rights, sustainability education and project-based learning in Civics Education, teachers, students, parents and community should often meet to decide on controversial issues and find ways to ensure that each one in society has the knowledge, skills and values for digital citizenship to grow and flourish.Originality/valueThe article is original in nature and has much social impact.

Relational influence on entrepreneurial orientation: an exploratory study of small religious enterprises in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Victor Silva Corrêa ◽  
Julio Araújo Carneiro-da-Cunha ◽  
Vânia Maria Jorge Nassif ◽  
Ernesto Michelangelo Giglio
Keyword(s):  
Data Collection ◽  
Entrepreneurial Orientation ◽  
Case Study Research ◽  
Structured Interviews ◽  
Content Type ◽  
Pentecostal Churches ◽  
Competitive Aggressiveness ◽  
Belo Horizonte ◽  
Restricted Use

Purpose Entrepreneurial orientation (EO) is highly emerging in the management literature. However, recent studies highlight the necessity to associate with reflections on this theme, usually approached from an economic perspective, propositions also derived from relational approaches. This paper aims to investigate associations between EO and social networks, specifically about the still little explored relational coupling/decoupling theme. Design/methodology/approach This paper provides an empirical and qualitative study of religious entrepreneurs. A total of 18 pastors responsible for creating and leading independent neo-Pentecostal churches located in Belo Horizonte/Brazil, selected using the snowball technique, participated in this qualitative, case-study research. Two analysis categories guided data collection: pastors’ EO (behaviors suggestive of their innovativeness, proactivity, competitive aggressiveness, risk-taking and autonomy) and churches’ social framework (the resources and attributes that pastors obtain from their institutional structure). Findings The study concludes that pastors combine attributes representing their EO and their social structure in developing their religious endeavors. Research limitations/implications Among the limitations are the restricted use of semi-structured interviews as a data collection source and the absence of data proving the churches’ performance. Originality/value The paper contributes by showing that entrepreneurs can influence the structure of their networks by using EO; proving that networks influence pastors’ EO; revealing recursivity between EO and networks; emphasizing a relational dimension of the EO construct and presenting new theoretical propositions that can be explored and tested in future investigations.

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