Director Industry Expertise and Voluntary Corporate Disclosure

2020 ◽  
Vol 10 (03) ◽  
pp. 2050012
Author(s):  
Natasha Burns ◽  
Kristina Minnick ◽  
Kartik Raman
Keyword(s):  
Supply Chain ◽  
Instrumental Variables ◽  
Poor Performance ◽  
Board Composition ◽  
Corporate Disclosure ◽  
Voluntary Disclosures ◽  
Corporate Transparency ◽  
Exogenous Shocks ◽  
Earnings Uncertainty ◽  
Industry Expertise

We examine if firms with directors with related industry expertise (DRIs), or directors that are supply chain partners, exhibit a greater propensity to forecast earnings, and improve the specificity and accuracy of forecasts. Using instrumental variables to mitigate endogeneity, we find that DRIs and supply chain partners possess unique insights which improve managerial forecasts especially when there is greater earnings uncertainty (innovations along the supply chain, poor performance, operating in volatile industries). We use director deaths as exogenous shocks to board composition and confirm results. Results indicate that DRIs play an informational role in enhancing voluntary disclosures and improving corporate transparency.

scholarly journals Taming the Hydra: Funding the Lithium Ion Supply Chain in an Era of Unprecedented Volatility

2020 ◽  
Author(s):  
Chris Berry
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Lithium Ion ◽  
Chemical Conversion ◽  
Raw Material ◽  
Battery Cell ◽  
Exogenous Shocks ◽  
China Trade ◽  
The Us ◽  
Difficult Challenge

The lithium ion supply chain is set to grow in both size and importance over the coming decade due to government-led efforts to decarbonize economies and declining costs of lithium ion batteries used in electronics and transportation. With forecasts of demand for lithium chemicals alone forecast to grow by three times later this decade, at least $10B USD is needed to flow into the upstream supply chain to ensure an efficient and timely build-out. Significant additional capital is needed for other portions of the supply chain such as other raw materials, cathode or anode production, and battery cell manufacturing. Recent exogenous shocks such as the US-China trade war and coronavirus disease 2019 (COVID-19) pandemic have made securing adequate capital for the supply chain a difficult challenge. Without the steady stream of funding for new mine and chemical conversion capacity, widespread adoption of electric vehicles (EVs) could be put at risk. This paper discusses the current structure of the lithium ion supply chain with a focus on raw material production and the need for and challenges associated with securing adequate capital in an industry that has, to date, not experienced such a robust growth profile.

scholarly journals Do economic effects of the anti-COVID-19 lockdowns in different regions interact through supply chains?

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0255031
Author(s):  
Hiroyasu Inoue ◽  
Yohsuke Murase ◽  
Yasuyuki Todo
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Economic Effect ◽  
Economic Loss ◽  
Policy Coordination ◽  
Economic Effects ◽  
Economic Activities ◽  
Agent Based ◽  
Exogenous Shocks ◽  
Flow Components

To prevent the spread of COVID-19, many cities, states, and countries have ‘locked down’, restricting economic activities in non-essential sectors. Such lockdowns have substantially shrunk production in most countries. This study examines how the economic effects of lockdowns in different regions interact through supply chains, which are a network of firms for production, by simulating an agent-based model of production using supply-chain data for 1.6 million firms in Japan. We further investigate how the complex network structure affects the interactions between lockdown regions, emphasising the role of upstreamness and loops by decomposing supply-chain flows into potential and circular flow components. We find that a region’s upstreamness, intensity of loops, and supplier substitutability in supply chains with other regions largely determine the economic effect of the lockdown in the region. In particular, when a region lifts its lockdown, its economic recovery substantially varies depending on whether it lifts the lockdown alone or together with another region closely linked through supply chains. These results indicate that the economic effect produced by exogenous shocks in a region can affect other regions and therefore this study proposes the need for inter-region policy coordination to reduce economic loss due to lockdowns.

Can we have it all? Sustainability trade-offs and cross-insurance mechanisms in supply chains

2020 ◽  
Vol 40 (9) ◽  
pp. 1339-1366 ◽  
Author(s):  
Mauro Fracarolli Nunes ◽  
Camila Lee Park ◽  
Ely Laureano Paiva
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Industry ◽  
Poor Performance ◽  
Content Type ◽  
Trade Offs ◽  
Typical Food ◽  
Retail Chains ◽  
Second Tier ◽  
Insurance Mechanism

PurposeThe study investigates the interaction of sustainability dimensions in supply chains. Along with the analysis of sustainability trade-offs (i.e. prioritizing one dimension to the sacrifice of others), we develop and test the concept of cross-insurance mechanism (i.e. meeting of one sustainability goal possibly attenuating the effects of poor performance in another).Design/methodology/approachThrough the analysis of a 20-variation vignette-based experiment, we evaluate the effects of these issues on the corporate credibility (expertise and trustworthiness) of four tiers of a typical food supply chain: pesticide producers, farmers, companies from the food industry and retail chains.FindingsResults suggest that both sustainability trade-offs and cross-insurance mechanisms have different impacts across the chain. While pesticide producers (first tier) and retail chains (fourth tier) seem to respond better to a social trade-off, the social cross-insurance mechanism has shown to be particularly beneficial to companies from the food industry (third tier). Farmers (second tier), in turn, seem to be more sensitive to the economic cross-insurance mechanism.Originality/valueAlong with adding to the study of sustainability trade-offs in supply chain contexts, results suggest that the efficiency of the insurance mechanism is not conditional on the alignment among sustainability dimensions (i.e. social responsibility attenuating social irresponsibility). In this sense, empirical evidences support the development of the cross-insurance mechanism as an original concept.

scholarly journals Performance Analysis of the Cement Industry Based on Green Supply Chain Management

2021 ◽  
Vol 328 ◽  
pp. 08001
Author(s):  
Almaash Putridewi ◽  
Reda Rizal ◽  
dan Santika Sari
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Performance Indicators ◽  
Poor Performance ◽  
Cement Industry ◽  
Green Supply Chain ◽  
Performance Measurement System ◽  
Chain Management ◽  
Performance Conditions ◽  
Hierarchy Process

This study aims to provide information to companies regarding the latest performance conditions of environmentally friendly supply chain management through the design of the green supply operation reference and analytical hierarchy process (AHP) performance measurement system model, as well as to assess the company's GSCM performance which is then used to formulate recommendations for improving performance indicators that are considered inadequate good. The results of this study identified 18 performance indicators from 5 appropriate processes used in measuring the performance of PT XYZ's GSCM. Overall, the company's GSCM performance got a score of 77 which was included in the good category, but there were five indicators that had poor performance scores and recommendations for improvement were needed.

scholarly journals Corporate Governance Mechanisms and Voluntary Disclosure

2020 ◽  
Vol 11 (2) ◽  
pp. 82
Author(s):  
Erwin Saraswati ◽  
Alfizah Azzahra ◽  
Ananda Sagitaputri
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Family Firms ◽  
Stock Exchange ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Governance Mechanisms ◽  
Voluntary Disclosures ◽  
Corporate Governance Mechanisms ◽  
New Evidence

Corporate disclosure and corporate governance are two inseparable instruments of investor protection. This research sought to find evidence on how corporate governance mechanisms affect the extent of voluntary disclosures. Voluntary disclosures were measured using content analysis on published annual reports. The sample of this research consisted of 81 firm-year observations from 27 firms of consumer goods sector listed on Indonesian Stock Exchange from 2016 to 2018. Using multiple regression method, the result has shown that board size and board independence increase voluntary disclosures, indicating that the commissioners have effectively represented the interests of shareholders by monitoring and encouraging the management to increase disclosure. This research provided new evidence that family ownership increases voluntary disclosure, suggesting that family firms are more concerned by the costs of non-disclosure. Meanwhile, institutional ownership does not significantly affect voluntary disclosure. 

ISSUES IN THE CONSTRUCTION PROCUREMENT PROCESS

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Olanrewaju Abdul Lateef ◽  
Paul Junior Anavhe
Keyword(s):  
Supply Chain ◽  
Planning Process ◽  
Poor Performance ◽  
Value Systems ◽  
Value System ◽  
Procurement Process ◽  
Procurement Method ◽  
Survey Questionnaires ◽  
Procurement Planning

The ability of a completed construction to meet the value systems of its stakeholders depends on the activities and procedure throughout the entire supply chain. Before deciding on a construction development, procurement planning should be comprehensive. We argue that a major problem leading to poor performance of projects is inadequate understanding or engagement with the procurement planning process. This emphasizes the clear need to research procurement planning by assessing its purposes. Through survey questionnaires, 13 purposes for undertaking procurement planning are identified for construction players to evaluate the extent to which procurement planning is undertaken. The results indicate that the immediate reasons for the procurement process include determining the expectations of the clientele, provide a means for the stakeholders’ to interact, and selecting the appropriate procurement method to suit the client’s value system. According to the results of survey, none of the purposes displayed poor results. 95% of the respondents measured that procurement planning are used for construction development. The findings of this paper highlight the importance of systematic procurement planning for improving construction performance.

CEO power and integrated reporting

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isabel-Maria Garcia-Sanchez ◽  
Nicola Raimo ◽  
Filippo Vitolla
Keyword(s):  
Design Methodology ◽  
Financial Constraints ◽  
Chief Executive ◽  
Corporate Disclosure ◽  
Ceo Power ◽  
Integrated Reporting ◽  
Content Type ◽  
Scientific Debate ◽  
Corporate Transparency ◽  
Integrated Information

Purpose This study aims to analyse the role that the chief executive officer (CEO) has on integrated reporting (IR) adoption and whether this role is moderated by incentives to promote corporate transparency, including information asymmetry problems and financial constraints. IR represents the last frontier of corporate disclosure and aims to represent, through the annual integrated report, the ability of an organization to create value over time. Design/methodology/approach This study is based on 10,819 observations (an unbalanced data panel of 1,588 firms for the period 2009–2017). A logistic regression model is used to examine the association between CEO power and disclosure of an integrated report. Findings The results show that CEOs with greater power oppose the disclosure of integrated information, and this behaviour is not modified by firms’ incentives. Furthermore, greater growth opportunities increase CEO opposition to disclosing integrated information on the creation of value, perhaps as a consequence of the possible use of it by competitors. Originality/value This study contributes to the existing literature. First, it expands the scientific debate on the topic of IR. Second, it extends the application field of agency theory, which is seldom used to explain the phenomena related to IR.

Does corporate disclosure policy change financial analysts' behaviour? Evidence from France

2009 ◽  
Vol 5 (3) ◽  
pp. 344-361 ◽  
Author(s):  
Faten Lakhal
Keyword(s):  
Financial Analysts ◽  
Analyst Forecasts ◽  
Simultaneous Equation ◽  
Least Square ◽  
Corporate Disclosure ◽  
Market Uncertainty ◽  
Voluntary Disclosures ◽  
Analyst Coverage ◽  
Content Type ◽  
Disclosure Policy

PurposeThe purpose of this paper is to examine whether financial analysts are sensitive to voluntary earning disclosures.Design/methodology/approachThe paper is based on a literature review of the relationship between analysts' behaviour and corporate disclosures. It is assumed first that analyst coverage both influences and is influenced by voluntary earning disclosures, and that second, French managers are expected to make voluntary disclosures in order to reduce market uncertainty. To test these hypotheses, a simultaneous equation model and an ordinary least square regression framework were estimated on a sample of 154 French‐listed firms between 1998 and 2001.FindingsThe results show that voluntary earning disclosures positively influence analyst coverage decision. They also show that voluntary disclosures improve the accuracy of analyst forecasts and reduce market uncertainty.Research limitations/implicationsThe paper does not cover all forms of corporate voluntary disclosures.Practical implicationsThe findings suggest that corporate disclosure policy is likely to change financial analysts' behaviour. The results are useful to both managers, wishing to meet market expectations and, to investors wishing to invest in richer informational environment firms.Originality/valueThis paper provides original results about the role of analysts in France as information intermediaries. These analysts pay little attention to French firms with a poor information environment in which minority shareholders are less inclined to ask for costly analyst coverage.

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