scholarly journals Does Corporate Financial Architecture of Innovative Companies Differ? The Evidence From USA

2018 ◽  
Vol 12 (4) ◽  
pp. 7-28 ◽  
Author(s):  
Irina Ivashkovskaya ◽  
Sergei Evdokimov
Keyword(s):  
Corporate Governance ◽  
Risk Sharing ◽  
Business Models ◽  
Manufacturing Companies ◽  
Publicly Traded ◽  
Financial Architecture ◽  
Innovative Firms ◽  
Knowledge Intensive ◽  
Distinct Features

Each company operates within the framework of interrelated structures: ownership, corporate governance and capital structure. The particular combination of these dimensions determines the corporate financial architecture of the company. Despite the growing body of literature on the challenges of the knowledge economy to the structural dimensions of companies, still little is known about the financial architecture of innovative firms. At the same time it is widely recognized that such companies substantially differ from traditional types of businesses in their business models and dynamics. Meanwhile, the financial architecture of a company generates the distribution of the incentives to enhance innovations affecting interests and risk-sharing among stakeholders. To address the lack of research into the interaction of corporate structures and their distinct features in innovative companies, this paper aims at identifying the robust financial architecture patterns of innovative companies. Using a sample of more than 1,300 publicly traded US-based manufacturing companies, we use an agglomerative hierarchical clustering method to identify relevant patterns and compare them to the firms which are not considered to be ‘knowledge intensive’. The empirical results allow the identification of seven robust financial architecture patterns within innovative companies. Our findings show that the first major difference between the financial architecture of innovative and non-innovative firms is in the higher role of activist institutional investors in the ownership. The second notable difference is related to CEO-duality, which plays a significant role in corporate governance only in innovative firms. Moreover, innovative companies are less leveraged than non-innovative firms. In addition, mature innovative companies demonstrate better financial performance.

scholarly journals The role of corporate governance in emerging market: Tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency

2020 ◽  
Vol 9 (3) ◽  
pp. 8-26 ◽  
Author(s):  
Amrie Firmansyah ◽  
Gitty Ajeng Triastie
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Tax Avoidance ◽  
Investment Efficiency ◽  
Manufacturing Companies ◽  
Corporate Social ◽  
Risk Disclosures

This study aims to examine the effect of tax avoidance, corporate social responsibility disclosures, and risk disclosures on investment efficiency. This study also examines the role of corporate governance in the association between tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency. This study uses multiple linear regression with panel data. The sample uses 43 manufacturing companies listed on the Indonesian Securities Exchange from 2014 up to 2017 so that the total sample in this study amounted to 172 firm-years. The result suggests that tax avoidance is negatively associated with investment efficiency. However, corporate social responsibility disclosures and risk disclosures do not affect investment efficiency. Furthermore, another result suggests that corporate governance failed to moderate the effect of tax avoidance on investment efficiency. Besides, corporate governance can weaken the negative influence of corporate social responsibility disclosures on investment efficiency as well as corporate governance drives the negative effect of risk disclosures on investment efficiency.

The Effect of Profitability and Financial Leverage on Cost of Debt Moderated Earnings Management

2021 ◽  
Vol 26 (1) ◽  
pp. 35
Author(s):  
Herman Ruslim, Renny Muspyta
Keyword(s):  
Earnings Management ◽  
Cost Of Debt ◽  
Manufacturing Companies ◽  
Financial Leverage ◽  
Publicly Traded ◽  
Return On Equity ◽  
Publicly Traded Companies ◽  
Negative Effect ◽  
The Cost

This study aims to determine the effect of profitability and Financial Leverage on the Cost of Debt, and the role of Earnings Management as a moderating variable. In this study, profitability is measured by the ratio of return on equity, financial leverage is measured by the proxy debt ratio, earnings management as measured by discretionary accruals, and cost of debt is measured by the ratio of interest expense divided by the average total debt. The population in this study are publicly traded companies listed on the IDX, and the sample used is manufacturing companies listed on the IDX for the 2016-2019 period. Based on the purposive sampling method, the samples obtained were 69 manufacturing companies and 276 observations. The results showed that profitability has a negative effect on the cost of debt, while financial leverage has no effect on the cost of debt, earnings management cannot weaken the negative effect of profitability on the cost of debt and earnings management cannot weaken the negative effect of financial leverage on the cost of debt.

scholarly journals Corporate Governance Application, Audit Quality and Audit Report Lag: The Moderating Role of Law Compliance

2019 ◽  
Vol 10 (4) ◽  
pp. 164
Author(s):  
Yenny Dwi Handayani ◽  
Ewing Yuvisa Ibrani
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Audit Quality ◽  
Manufacturing Companies ◽  
Audit Report ◽  
The Relationship ◽  
Moderating Role

This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.

The Role of Corporate Governance and Environmental Committees on Greenhouse Gas Disclosure

2019 ◽  
Vol 9 (7) ◽  
pp. 1403
Author(s):  
Daniel T. H MANURUNG ◽  
Andhika Ligar HARDIKA ◽  
Dini W. HAPSARI ◽  
Minda Maulina SEBAYANG
Keyword(s):  
Corporate Governance ◽  
Greenhouse Gases ◽  
Greenhouse Gas ◽  
Sampling Method ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Manufacturing Companies ◽  
And Gender ◽  
The Impact

The study aims to determine the impact of corporate governance (board of commissioners, directors and gender diversity) and environmental committees in greenhouse gas disclosure. The sampling method in this study using purposive sampling method with a total of 26 manufacturing companies listed in Indonesia Stock Exchange by using multiple regression analysis. The results show that the role of the board of commissioners has not been able to provide control over the reduction of greenhouse gases on the company, the board of directors has no effect on the disclosure of greenhouse gases refuse to make emission gas reduction due to litigation pressure and expenditure, gender diversity has not been able to control the role of women and men in decision-making and risk and environmental committees have been little able to contribute to the disclosure of greenhouse gases as it is expected that the establishment of an environmental committee on the company.

Strategic destruction of the Western commercial aircraft sector: Implications of systems integration and international risk-sharing business models

2007 ◽  
Vol 111 (1119) ◽  
pp. 327-334 ◽  
Author(s):  
D. Pritchard ◽  
A. MacPherson
Keyword(s):  
Risk Sharing ◽  
Business Models ◽  
Systems Integration ◽  
Skilled Workers ◽  
Commercial Aircraft ◽  
International Risk Sharing ◽  
The Us ◽  
The Uk ◽  
Aircraft Production

Abstract This paper offers a critical perspective on the changing organisational structure of the Western commercial aircraft industry. The role of systems integration based on risk-sharing partnerships for new aircraft programmes is explored. We find that build-to-print subcontracting relationships are being replaced by internationally devolved design and engineering tasks for airframe development, signaling a profound change in the geography of commercial aircraft production. While sensible from a financial standpoint, the international outsourcing of design-intensive production entails substantial amounts of technology transfer–including the delivery of proprietary knowledge to risk-sharing partners. For several of the advanced market economies, including Canada, France, Germany, the UK, and the US, the long-range strategic downside is that foreign risk-sharing partners could eventually become competitors. Systems integration on a risk-sharing basis also implies home-country joblosses among skilled workers with expertise in design, engineering, and R&D.

scholarly journals O efeito da competência de tecnologia da informação do conselho de administração no desempenho organizacional percebido

2020 ◽  
Author(s):  
◽  
Rubens Sant'Anna Junior
Keyword(s):  
Corporate Governance ◽  
Organizational Performance ◽  
Board Of Directors ◽  
It Governance ◽  
Positive Influence ◽  
Governance Mechanisms ◽  
Publicly Traded ◽  
Technology Competence ◽  
The Board Of Directors

The purpose of this thesis is to examine the relationship between the Board's Information Technology Competence (CTIC) and the perceived organizational performance of the company (DO), and whether this relationship can be mediated by the mechanisms of IT governance (MGTI) and by the IT governance level of the board (NGTIC). The study proposes a conceptual research model built by reviewing the literature on corporate governance and IT management. For this, a quantitative survey was carried out with 204 members of the board of publicly traded and closed Brazilian companies. The results showed that the IT competence of the board has a positive influence in relation to the perceived organizational performance, and that the IT governance mechanisms are important tools of the board of directors, depending on the degree with which they are implemented, and that they are also positively associated to perceived organizational performance. On the contrary, the board's level of IT governance did not show a positive result in influencing perceived organizational performance, requiring the mediation of IT governance mechanisms to achieve some significance in the model. These results signal a gap in the role of monitoring and involvement of corporate governance in IT governance exercised by the members of the board of directors

scholarly journals Does distance really matters? Assessing the role of KIBS proximity in firm´'s servitization capacity: evidence from the Basque Country

2020 ◽  
Vol 48 ◽  
Author(s):  
Marco Opazo-Basáez ◽  
Lorea Narvaiza Cantín ◽  
Jose Antonio Campos
Keyword(s):  
Basque Country ◽  
Geographical Distance ◽  
Manufacturing Companies ◽  
Business Services ◽  
Knowledge Intensive Business Services ◽  
Service Deployment ◽  
Provision Of Services ◽  
Knowledge Intensive ◽  
Depth Interviews

Servitization strategy is increasingly recognized as a key source of value with important competitive and economic potential across the globe. Over the years, it has been proven to contribute to territorial performance through the provision of services to manufacturing businesses. Such contribution, however, has been to a large extent consequential to the configuration of local industrial structures, and most importantly, by interconnectedness between manufacturing firms and knowledge intensive business services (KIBS) firms. Hence, the process of territorial servitization is highly conditioned to the association between manufacturing businesses and KIBS firms. To date, territorial servitization literature mostly describes the implications of KIBS firms for service deployment and service innovation in manufacturing, considering knowledge and technological capabilities as main variables for its success. Nevertheless, the literature is silent on how geographical distance between KIBS firms and manufacturing companies may affect servitization capacity. Therefore, this research attempts to disclose the importance of geographical distance of KIBS firms in manufacturers´ servitization capacity. In doing so, we analyze two manufacturing companies; Alpha and Beta, both located in the Basque country but collaborating with KIBS firms in different geographical areas, “inside” and “outside” the Basque region. Through a qualitative study based on (1) measuring firm’s capacity for servitization, and (2) in-depth interviews, results suggest that geographical distance in terms of proximity plays a key role on the KIBS-Manufacturer relationship for servitization capacity, and require to be considered as an important aspect for successful territorial servitization.

scholarly journals A ROLE A CORPORATE GOVERNANCE AND FIRM’S ENVIRONMENTAL PERFORMANCE: A MODERATING ROLE OF INSTITUTIONAL REGULATIONS

2019 ◽  
Author(s):  
Farheen Akram ◽  
Muhammad Abrar-ul-Haq ◽  
Saqlain Raza
Keyword(s):  
Climate Change ◽  
Corporate Governance ◽  
Environmental Performance ◽  
Global Scale ◽  
Manufacturing Companies ◽  
State Regulations ◽  
Governance Environment ◽  
The Impact ◽  
Moderating Role

Climate change has become one of the biggest issue across the globe as most countries have been bearing the consequences of this phenomenon on a global scale. Countries have been drafting environmental regulations to help mitigate the environmental pollution caused by climate change. Therefore, the implications of environmental policies in various sectors of the economy are dependent on state regulations. The main objective of this study is to investigate the impact of corporate governance on environmental performance. Furthermore, this study examines the impact of institutional regulations on the relationship of corporate governance and firms’ environmental performance. The data was collected from the top 120 manufacturing companies that are based in Pakistan, India, China and Bangladesh. The binary logit regression methodology was employed in this study. The results indicate that the attributes of corporate governance have a positive and significant impact on green performance. In addition, the results were also positive and significant on the moderating role of institutional regulation for corporate governance and firm performance. Hence, based on the empirical findings, this study recommends strict environmental institutional regulations to further enhance environmental performance. Keywords:Green performance, corporate governance, environment, institutional policies

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