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Businesses

Businesses is an international, peer-reviewed, open access journal on business published quarterly online by MDPI.

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All Articles (258)

  • Article
  • Open Access

This study examines whether a persistent firm-specific component of financial performance, estimated only from a 2011–2017 training window, remains informative out of sample and whether it is associated with later ESG ratings in Korean listed firms. The component (PFPC) is the firm fixed effect from a two-way fixed-effects model. In a chronologically separated 2019–2025 holdout, PFPC outperforms firm-mean benchmarks and, for Tobin’s Q, a training-fitted covariates model, but not that model for ROA, and it does not outperform the latest observed outcome for either measure; Tobin’s Q holdout accuracy decays to zero by 2022–2025. Using one observation per firm, mean ESG is negatively associated with ROA-based PFPC and positively associated with Tobin’s Q-based PFPC (one-standard-deviation differences of −0.21 and +0.48 standard deviations of PFPC). Two-stage firm-bootstrap intervals exclude zero for Tobin’s Q, whereas the ROA interval includes zero at its upper end and the ROA sign reverses under alternative winsorization. Because the data are current-vintage extracts, the exercise is a chronological holdout, not a real-time forecast. The evidence supports a bounded evaluation framework, not a universal predictive or causal ESG claim.

Businesses

11 November 2026

Annual holdout prediction errors for the PFPC model and latest-outcome benchmark, 2019–2025. Note: Root-mean-squared error (RMSE) by test year, 2019–2025, for the PFPC model with covariates and for the latest-observed-outcome benchmark, computed on identical firm-year samples (the common core-sample rows of Table 4b). PFPC and control coefficients are fixed from the 2011–2017 training window and are not re-estimated in any test year. Lower values indicate smaller errors. For ROA, the PFPC model has lower error in 2019 and 2021 and higher error in the other years; for Tobin’s Q, it has higher error in every year.
  • Review
  • Open Access

China’s revised Environmental Protection Law, adopted in 2014 and effective on 1 January 2015, strengthened the institutional framework for environmental governance. This article integrates bibliometric mapping with a systematic literature review to assess the law’s economic, business, environmental and financial consequences. A PRISMA-informed search of the Web of Science Core Collection identified 70 English-language journal articles in relevant fields available through 1 August 2026. This English-language, WoS-indexed evidence base is concentrated on listed firms, so the synthesis describes that literature rather than the full population of businesses affected by the law. Publication statistics, word frequency analysis, a six-topic Latent Dirichlet Allocation (LDA) model, VOSviewermapping (1.6.21), and article-level synthesis were applied. Studies report higher ESG scores, green investment, disclosure, patenting, and biodiversity risk attention in some settings. However, ESG improvements may concentrate in the environmental pillar, patent quantity may rise as quality declines, and disclosure responses vary with political protection. These corporate indicators do not themselves demonstrate lower emissions or ecological recovery. Financial and economic findings concern leverage, financialization, profitability, risk, capital costs, employment, labor-income shares, productivity, outward investment, and political behavior. Outcomes vary with firm characteristics, local enforcement, financing capacity, measurement, and research design. Overall, the evidence concerns multiple adjustment channels rather than a common net policy effect. Future research should measure realized enforcement, separate overlapping policies, connect corporate indicators to environmental outcomes, and broaden coverage beyond continuously listed heavily polluting firms.

Businesses

10 November 2026

PRISMA-2020-informed study selection process.
  • Article
  • Open Access

This paper examines how senior executives perceive the conditions under which an organization becomes data driven, and how those perceptions can be organised, through an explicit procedure, into candidate strategic orientations. An exploratory descriptive survey of twenty-five items built on five pillars of the data-driven organization was completed by fifty executives across ten sectors. Frequencies are read as indicating the prevalence of a reported perception within this purposive panel, not as measures of capability, importance or effect; factors are selected and classified under written rules, with every judgement reported alongside its alternative. The conditions most widely reported were descriptive analytics, cloud or hybrid infrastructure, training and awareness programmes, and data being available daily or in real time; the constraints most often reported were a data strategy not strongly aligned with the business strategy, data accuracy problems, resistance to change, a shortage of qualified talent, and data fragmentation. Respondent-level comparisons qualify two of the study’s own interpretations. Crossing these conditions through the TOWS matrix yields four candidate orientations; because the external quadrants are thinly evidenced, the two that cross the single threat are the most provisional. The output is a perception-based conceptual framework that distinguishes what respondents reported, what the researchers coded, what was inferred and what remains to be validated, and it requires external validation.

Businesses

6 November 2026

Elements of the data-driven organization.
  • Article
  • Open Access

Who Owns Granularity? Brand Data, Decision Rights, and Interdepartmental Conflict in Multinational Consumer Goods Firms

  • Almudena Recio-Román,
  • Manuel Recio-Menéndez and
  • María Victoria Román-González

In multinational fast-moving consumer goods firms, marketing, legal and IT depend on the same brand data but need it at different levels of detail. Marketing needs it by variant and territory to measure campaign returns; legal to prove valid territorial licensing; IT prefers aggregation to cut cost. No framework names an owner, so IT decides by default, on an objective that excludes the costs it imposes. We model the conflict as a non-cooperative game grounded in property rights and transaction cost economics, show that aggregation is strictly dominant, and explain why negotiation fails: the decisions are frequent and individually small, their value is privately known, and their cost is realised quarters later. A Monte Carlo simulation of 100,000 paired iterations, calibrated on public benchmarks and a listed multinational’s accounts, evaluates two archetypes differing 90-fold in size. Under the assumed parameters, reassigning the decision is worth about half a percent of sales almost regardless of size, of which 91–93 percent comes from restoring lost detail. Centralised governance outperforms negotiation, chargeback and veto rights, and that ordering survives removing the assumed revenue response to detail, which the magnitudes do not. We also supply a protocol for measuring detail already lost.

Businesses

2 November 2026

The two states. Panel (a): under decentralized decision rights IT’s dominant strategy governs the 
  
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 of domains where governance has not overridden it, and the resulting externalities—marketing performance that cannot be measured locally, a broken licence audit trail for legal, and reconstruction of detail outside central infrastructure—fall on the two consuming departments. Panel (b): a logical abstraction layer over an atomic master-data store decouples storage optimization from semantic visibility, so resolution can be restored without imposing IT’s original cost. Solid arrows show the direction in which a decision is imposed; the dashed arrows in panel (a) show the externalities that decision creates for the departments that did not take it.

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Businesses - ISSN 2673-7116