Search Results (105)

Strategic mergers and acquisitions (M&A) can support sustainable business models by enabling firms to adapt their capabilities and competitive positions as conditions change. This study examines how target listing status (public vs. private) and acquirer size shape short-term shareholder wealth in Korean SMEs (Small- and medium-sized enterprise), and links announcement reactions to subsequent operating outcomes. Using an event study and multivariate regressions on 155 M&A announcements by KOSDAQ-listed SMEs (Korean Securities Dealers Automated Quotations) (2016–2020), we find that smaller acquirers earn significantly higher announcement-period cumulative abnormal returns (CAR)—i.e., smaller firm size is positively associated with superior market-adjusted performance around M&A events. Although acquisitions of privately held targets and diversifying deals show higher unadjusted means, their effects become statistically insignificant once firm fundamentals and size are controlled for. To connect M&A strategy with business-model sustainability, we operationalize sustainability as the alignment between short-term market expectations (CAR) and realized operating performance over 1–2 years, measured by return on operating cash flow (ROCF); medium-term checks indicate that the short-run “size effect” attenuates, underscoring the role of execution and scale in longer-run outcomes. Overall, the evidence highlights the primacy of firm-specific fundamentals, strategic fit, and integration capacity in guiding M&A decisions that advance both near-term performance and longer-term resilience. The Korean SME setting—marked by concentrated ownership, resource constraints, and a chaebol-influenced market and policy environment—provides a stringent context for these tests. Full article

Amidst global imperatives for environmental sustainability, this study investigates the nexus between carbon emissions reduction (CER), ownership structures, and total factor productivity (TFP) in Chinese enterprises—recognized as vital economic drivers facing carbon emissions pressures. Based on the theoretical frameworks of innovation offsets, agency cost theory, and upper echelons theory, with data from CSMAR (2009–2023), we proposed a positive effect of CER on TFP while examining the moderating roles of ownership structure metrics: chairman shareholding ratio, manager shareholding ratio, and ownership–control separation ratio. TFP estimation employed dual approaches: mean consolidation (TFP-Mean) and entropy weighting (TFP-Entropy) methods. The results confirmed CER exerts significantly positive impacts on TFP, with ownership structures demonstrating statistically significant yet directionally heterogeneous moderation effects. Heterogeneity analysis reveals heightened TFP sensitivity to carbon emission initiatives among private enterprises, foreign-owned enterprises, and small enterprises. Notably, the entropy weighting method exhibits substantial comparative advantages in TFP measurement. These findings underscore that advancing TFP necessitates simultaneously optimizing carbon emissions efficiency and ownership governance. Full article

Environmental, Social, and Governance (ESG) management has global relevance, yet its effects differ across contexts. In Korea, with concentrated ownership, family-controlled conglomerates, and evolving governance norms, the ESG–firm performance link offers unique insights. This study examines 620 publicly listed firms in Korea over the 2020–2022 period to assess the effects of ESG performance on firm value (Tobin’s q) and financial performance (operating return on assets). Three governance-related variables that reflect the distinctive features of Korea’s corporate governance—CEO (chief executive officer) tenure, the shareholding ratio of the largest shareholder, and foreign ownership ratio—are included in the analysis as moderating variables. Results show that ESG performance positively affects both firm value and financial performance. Also, CEO tenure and foreign ownership significantly strengthen the ESG–firm value relationship, whereas the shareholding ratio of the largest shareholder enhances the ESG–financial performance link. These findings extend stakeholder, legitimacy, and institutional theories to an East Asian context and offer practical guidance for managers and policymakers aiming to enhance corporate outcomes through ESG strategies in Korea’s distinctive governance environment. Full article

The objective of this study is to examine the impact of Chief Executive Officer (CEO) attributes on corporate performance in Jordan, a representative frontier market. The analysis focuses on four key CEO attributes, comprising two socio-demographic variables—age and educational—and two corporate governance-related ones—tenure and origin. Return on assets (ROA) and return on equity (ROE) are used as proxies for firm performance. Using a sample of 416 firm-year observations from companies listed on the Amman Stock Exchange (ASE) during 2015–2023, the study employs the system GMM methodology to estimate dynamic panel data models, addressing potential endogeneity and capturing the dynamic nature of firm performance. The results show that CEO age has a positive but insignificant effect, whereas CEO education and tenure significantly enhance firm performance. Conversely, CEO origin has a statistically negative impact on firm performance, reflecting the value of insider CEOs. The significant effects of CEO education, tenure, and origin—observed within the models that also incorporated firm- and country-level controls—reflect their incremental contribution to firm performance in frontier markets. Robustness checks, including controls for the COVID-19 pandemic and industry effects, confirm these findings. The study contributes to the literature by demonstrating the applicability of established theories—namely Upper Echelons, Stewardship, Resource Dependence, and Human Capital Theories—while identifying the CEO traits that drive success in frontier markets. It also offers practical guidance for shareholders, board directors, and policymakers in designing effective leadership and governance strategies. Full article

This study examines the causal impact of China’s New Energy Demonstration City construction policy on corporate energy consumption. The results demonstrate that this policy effectively reduces corporate energy consumption. The policy significantly decreases the consumption of coal, natural gas, and diesel. Although the policy significantly reduces energy consumption in both local state-owned enterprises (SOEs) and non-SOEs, its effect does not show statistically significant variation across different types of controlling shareholders. The energy-saving effect is particularly pronounced in the following industries: Manufacturing, Electricity, Heat, Gas, and Water Production & Supply, Wholesale & Retail Trade, Information Technology Services, Leasing & Business Services, and Water Conservancy, Environment, and Public Infrastructure Management. The policy operates through multiple channels: internal mechanisms including direct innovation effect, accelerated green M&As effect as well as digital empowerment effect, and external moderators including marketization level and green finance environment. The findings yield important insights for scholars, policymakers and corporate stakeholders. Full article

Against the backdrop of increasingly severe global carbon emissions and China’s commitment to achieving carbon peaking by 2030, accelerating the transition to a low-carbon economy has become an urgent priority. As fundamental microeconomic entities, enterprises play a crucial role in the national governance of carbon emissions. This study uses panel data on Chinese A share listed companies from 2019 to 2023 and employs fixed effects models that control for firm, year, and industry effect to analyze how ESG performance influences carbon emissions and through which mechanism. The findings indicate that improvements in ESG ratings significantly reduce firms’ carbon emissions. This effect operates primarily through the following two channels: (1) promoting green technological innovation, thereby enhancing environmental performance, and (2) increasing the attention of financial analysts, which strengthens external monitoring. The heterogeneity analysis further reveals that the mitigating effect of ESG improvement on carbon emissions is more pronounced in firms with a lower proportion of institutional ownership, while this effect is relatively weaker in firms with higher institutional ownership. This suggests that in contexts where institutional investors hold a smaller share, firms may place greater emphasis on the policy pressure and social responsibility expectations associated with ESG performance, thereby exhibiting stronger commitment to emission reduction actions. In contrast, in firms dominated by institutional investors, the implementation of ESG policy objectives may be partially compromised due to the investors’ short-term profit orientation. This study provides empirical evidence for firms to fulfill their environmental and social responsibilities and offers actionable insights for investors aiming to promote sustainable development. From a policy perspective, the findings also offer theoretical support for developing differentiated regulatory strategies based on variations in ownership and shareholding structures. Full article

This paper investigates the financial performance and corporate governance variables that influence firm valuation. This study analyzes 91 Spanish small and medium-sized enterprises (SMEs) listed on BME Growth using a fixed effects panel data model based on 5760 observations. This study covered a period of five years from 2015 to 2019. This study concludes that profitability, capital structure and ownership concentration are key value drivers, while liquidity and efficiency are not statistically significant and require further contextual examination. Regarding corporate governance, the presence of controlling shareholders was found to have a significant positive impact on firm value, reinforcing the importance of ownership concentration in reducing agency conflicts and enhancing oversight. Other governance frameworks, such as firm structure and managerial concentration, did not exhibit significant effects. Full article

The United Nations Sustainable Development Goals emphasize the need to assist developing countries in achieving long-term debt sustainability. Global corporate debt has repeatedly reached record levels, and the associated financial costs pose a significant threat to sustainable development. This study uses panel data from Chinese listed companies for regression analysis. The findings show that ESG reduces the interest-bearing debt ratio, the equity pledge of controlling shareholders, and the deviation from the target debt ratio, all of which contribute to improved debt management. Climate risk further strengthens the impact of ESG on debt management. Additionally, green credit policies help reduce the interest-bearing debt ratio in high-pollution industries through ESG practices. Full article

The primary objective of this study is to investigate the intricate relationship between different ownership structures, such as family, institutional, managerial, and foreign ownership, and tax avoidance practices. It also seeks to explore the moderating influence of female board members in shaping these relationships. This study utilizes balanced panel data from 72 industrial and service firms listed on the Amman Stock Exchange during the period of 2018 to 2023. The Generalized Method of Moments (GMM) was employed to estimate the results. The results indicate that family and foreign ownership positively influence tax avoidance practices, suggesting that families may engage in tax avoidance to benefit from rent extraction, while foreign investors may pressure managers to manipulate tax liabilities or shift profits across countries to minimize taxes. In contrast, the presence of female directors as well as institutional and managerial ownership is associated with a reduction in tax avoidance. Female directors play a moderating role in the relationship between ownership structure and tax avoidance. Their presence in interaction with institutional ownership reduces tax avoidance by focusing on tax compliance strategies. However, this effect changes in family and foreign-owned firms, where control over decision-making lies with the families or foreign shareholders, limiting the impact of female directors in promoting compliance and aligning their role with the tax avoidance strategies preferred by the controlling owners. Full article

Using 2010–2019 data from 404 listed construction companies in China, we explore the relationship between perception of economic policy uncertainty (PEPU) and energy consumption intensity (ECI) based on a fixed effects model controlling for company, year, and city fixed effects, with standard errors clustered at the industry level. The results show that the perception of economic policy uncertainty reduces construction enterprise energy consumption intensity, and this result holds after a series of robustness and endogeneity tests. Further, this effect is stronger in firms with more green shareholders, environmental information disclosure, and external attention. Moreover, mechanism analysis indicates that internal control enhancement and green innovation improvement, including quantity and quality, are the underlying channels through which the perception of economic policy uncertainty influences energy consumption intensity. Full article

This article examines to what degree organizations use strategies that focus on maximizing shareholder value (Theory E) as opposed to strategies emphasizing the development of organizational capability (Theory O). Our main goal is to investigate the extent to which cognitive biases influenced strategic decision-making pertaining to organizational change. Strategic decision-making and organizational change both have a great impact on collaborative behavior. A survey was developed that measured different aspects of the cognitive perspective in strategic decision-making. It was distributed to managers of several medium-sized organizations in Scandinavia (n = 119). The results indicate that managers used mixed strategies (Theory E and O). The results also reveal that illusions of control together with beliefs about change processes skewed the application of strategies towards Theory E. The theoretical and practical implications of the results were finally discussed, expanding the cognitive perspective in strategic decision-making. Full article

In the modern corporation, understanding sustainable cost management practices is essential for promoting economic resilience and resource efficiency. This study investigates how ownership structures influence the behavior of selling, and general and administrative (SG&A) costs during periods of sales fluctuations in South Korean firms, with particular attention to Chaebols. Drawing upon agency theory and corporate governance perspectives, we examine whether proxies for agency costs, namely, free cash flow, asset utilization ratios, and operating expense ratios, explain variations in SG&A cost responses to changes in revenue. Utilizing a panel dataset of 4279 firm-year observations from KOSPI-listed companies over the period 2011–2021, we employ Pooled Ordinary Least Squares (OLS), Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimations to model SG&A cost behavior. The analysis incorporates regression-based interaction terms that capture asymmetric cost adjustments during sales declines, commonly referred to as cost stickiness. Our findings indicate that firms with concentrated ownership, such as Chaebols, exhibit significantly lower SG&A cost stickiness, reflecting stronger financial discipline and more efficient resource allocation. In contrast, firms with dispersed ownership demonstrate more pronounced cost stickiness, consistent with governance frictions and managerial discretion. These results emphasize the moderating role of ownership structure in cost behavior and highlight its implications for sustainable corporate governance. Our study contributes to the literature on cost management and financial sustainability by offering empirical insights from a distinctive institutional setting. Policy recommendations include enhancing internal controls, promoting transparent cost practices, and encouraging shareholder oversight to reinforce long-term efficiency. Full article

This study empirically examines how Big4 audit firms mediate the relationship between family-controlled enterprises and their earnings management practices. Analyzing a dataset of 61 non-financial family-listed companies listed on the Indonesia Stock Exchange from 2017 through 2019 reveals that family-controlled businesses and Big4 auditors are associated with lower earnings management, resulting in improved financial reporting quality. The study also shows that family-owned enterprises are more inclined to hire a higher-quality auditing firm for their financial statement assessments. Moreover, our results suggest that Big4 auditors partially mediate the relationship between family businesses and their earnings management practices. The additional tests conducted in this study highlight the significant role of family-run firms and Big4 auditors in curbing earnings management, primarily when corporate management is prone to decrease reported earnings. Robustness tests validate the reliability of the conclusions drawn from the primary findings. Our study shows that family managers align their goals with the firm and shareholders, enhancing company financial reporting integrity. Our finding also emphasizes the crucial role of Big4 auditors in minimizing intra-family agency conflicts in family firms, promoting transparency, and aligning family managers’ interests with external stakeholders. Full article

Green credit significantly aids green industry development and energy transformation. However, can green credit incentivize heavy polluting corporations to accelerate their green transformation? To assess this question, this research analyzed how green credit affects green investment efficiency of heavy polluting corporations. A fixed-effects model was applied to explore the impact, followed by a threshold effect model to assess whether there is a nonlinear relationship under the effect of other factors. The study shows that green credit can significantly improve the green investment efficiency of heavy polluting corporations. From an internal control perspective, this improvement is significant for corporations that are state-owned or have low executive shareholding. From an external regulation perspective, the improvement is significant for the areas with low financial and environmental regulation. Green credit is influenced by the corporate asset–liability ratio and executives’ green thinking; both have non-linear, single-threshold effects on corporate green investment efficiency. Full article

This study examines the impact of family directors, family shareholding, and family control on the environmental and social dimensions of ESG in family business governance. Scholars debate whether family businesses prioritize short-term gains over long-term ESG issues or, due to their long-term focus, integrate ESG into their strategies. One group of scholars argues that family businesses tend to focus excessively on short-term financial performance, neglecting long-term non-financial performance. In contrast, another group contends that due to socioemotional wealth considerations, family businesses place particular emphasis on long-term non-financial performance. This study utilizes data from publicly listed companies in Taiwan to conduct relevant research. Furthermore, we incorporate external governance variables to examine their impact on environmental and social performance. The research data come from the TEJ database. The sample is the annual data of listed companies in Taiwan. The sample period covers 2015 to 2022, with a total of 4377 company-year observations. The study finds that the corporate governance mechanisms of family enterprises have a negative and significant impact on environmental and social performance. However, external governance factors, such as higher institutional investor shareholding ratios, third-party-verified sustainability reports, and corporate governance evaluations, help mitigate these negative effects. Future research could extend the study period and explore additional external governance variables or alternative datasets to enhance the robustness and generalizability of the findings. Full article