Regional Environmental Supervision And Corporate Environmental Investment: From The Perspective of Ecological Damage Compensation

Based on the “Pilot Reform of the Compensation System for Ecological and Environmental Damage” launched in 2015 and a research sample of listed companies in China's heavy pollution industry from 2014 to 2017, this paper uses a difference-in-differences model to empirically test the impact of the compensation system on corporate environmental investment, as well as the moderating effect of market degree and firm ownership. The result shows that the implementation of the compensation system has significantly promoted corporate environmental investment, and the market degree has a moderating effect, but the supervision effect remains the same due to firm ownership. Local government’s strict environmental supervision on local enterprises is the important channel to ensure the function of ecological damage compensation system. This research provides a reference for the national government to formulate specific and effective environmental policies, stimulate the environmental governance motivation of local governments, and encourage enterprises to assume environmental responsibilities, to achieve green and sustainable development.

Making of an innovative economy: a study of diversity of Chinese enterprise innovation

PurposeThis research examines the effects of firm ownership and size on innovation capability using data from the World Bank China Enterprise Survey (WBCES), which provides directly measurable innovation-related variables. Key consideration is given to the role and innovation capability of state-owned enterprises (SOEs) compared with domestic and foreign private enterprises in the Chinese economy.Design/methodology/approachIn its quest for technological self-reliance and a new developmental path, China is focusing on its enterprise innovation capability.FindingsThe findings suggest that SOEs and domestic private enterprises are similar in terms of innovation participation but differ in terms of innovation diversification, which implies ownership-specific innovative advantages. In general, the authors find that SOEs are more innovative with respect to processes innovation but less so with respect to product, management and promotion innovations. Foreign-owned enterprises are superior in all types of innovation except product innovation.Research limitations/implicationsThe authors also find that size is an important determinant of innovation capability, with the effect varying depending on location and industry. Moreover, the joint effect of firm ownership and size on innovation declines with increasing size. These findings provide new insights into the evaluation of China's major policies.Originality/valueThis research examines the effects of ownership and size on enterprise innovation capability, using the WBCES (2013) data, which include direct measurable innovation related variables.

Firm Ownership Characteristics and Long-run Return on Equity Issued: A Case of the Nairobi Securities Exchange

This investigation looked at the link between firm ownership characteristics and long-run return on firms that issued equity at the Nairobi Securities Exchange (NSE) in Kenya. The study covered 12 firms that issued shares in the NSE market from 2006-2008. Ownership characteristics included (state ownership, institutional Ownership, foreign Ownership, big five shareholders, market capitalization, age of the firm and Leverage of the firm) in relation to the average return. The study tested whether each of the firm ownership characteristics influenced long-run performance. Annual return for these companies was based on market return for five years after the firm’s equity shares were issued. The long-run performance was compared with three benchmarks, namely, NSE index, CAPM and Matching firms. Seven hypotheses were developed for the study. Simple-liner and multi-linear regression analyses based on panel data were carried out to relate the extended run return on shares issued. The result of the survey showed that issuing firms performed better than non-issuing firms. These issuing firms also performed better in comparison to CAPM. However, the issuing firms performed worse than NSEI. In conclusion, the long-run performance of equity issued at the NSE does not necessarily underperform relative to non-issuing establishments.

Foreign- and domestic firm ownership and its impact on wages. Evidence from Poland

This study concentrates on the effect of foreign ownership of companies on worker wage distribution. Using an innovative methodological approach that combines the Oaxaca–Blinder decomposition and the modified DiNardo et al. reweighting approach, we estimate the wage gap between domestic-owned and foreign-owned firms. The study confirms that firm ownership (domestic or foreign) influences the wage distribution of workers, as a worker employed in a foreign-owned firm earns, on average, 5 percent more than a matched worker in a domestic-owned firm with similar characteristics. We link that gap with an origin of foreign capital. This analysis demonstrates that the origin of capital has an impact on wage distribution in the firm and may affect wages in the whole section.

Impact of family succession on financial performance: empirical evidence from Bangladesh

PurposeAcademic research on the transgenerational performance differences among family firms in Bangladesh is still in its infancy. This paper delves into this issue to answer whether the financial performance of family firms run by second-generation family members is different from their predecessors and nonfamily firms.Design/methodology/approachThe study employs panel data analysis that attempts to conceptualize the performance difference, quantified in terms of profitability and return, between founder- and second-generation-run public companies in Bangladesh. Moreover, cross-sectional regressions extend the research paradigm to investigate and validate whether heir-controlled family firms perform differently than nonfamily firms or firms that are yet to experience ownership succession within a family.FindingsThe study indicates that family firms perform better when founding family members are in control compared to second-generation-run family firms. Moreover, further analysis suggests that heir-controlled family firms do not show a significant difference in performance compared to firms that never had a family succession in its managerial positions. The implications are that there could be nonfinancial family-centric motivations for family business ownership transition.Practical implicationsFamily succession of firm ownership is venerated without necessarily a validation of its financial merit. In Bangladesh, this is too often a de facto transfer of leadership within family firms. This study can act as a reference point to understand that family succession of firm ownership in Bangladesh may not necessarily be in the best financial interest of a firm.Originality/valueThe literature on family firms propounds a plethora of vacillating conclusions and opinions. This paper adds this body of empirical literature into an exercise of formal logic. Such an empirical investigation into the financial performance of Bangladeshi family firms, visualized through the lens of leadership transfer to a second-generation family member, has not been extensively studied in contemporary literature.

Network Analysis for Economics and Finance: An Application to Firm Ownership

In this chapter, we introduce network analysis as an approach to model data in economics and finance. First, we review the most recent empirical applications using network analysis in economics and finance. Second, we introduce the main network metrics that are useful to describe the overall network structure and characterize the position of a specific node in the network. Third, we model information on firm ownership as a network: firms are the nodes while ownership relationships are the linkages. Data are retrieved from Orbis including information of millions of firms and their shareholders at worldwide level. We describe the necessary steps to construct the highly complex international ownership network. We then analyze its structure and compute the main metrics. We find that it forms a giant component with a significant number of nodes connected to each other. Network statistics show that a limited number of shareholders control many firms, revealing a significant concentration of power. Finally, we show how these measures computed at different levels of granularity (i.e., sector of activity) can provide useful policy insights.