Search Results (546)

This study investigates how skilled labor influences the development of the secondary sector in emerging economies, using China as a case study. We focus on the transitional process in which manufacturing growth shifts from labor-intensive expansion toward productivity-driven industrial upgrading. Using provincial-level data from 2000 to 2023, we evaluate the role of skilled labor across different stages of development by applying fixed-effects panel regressions, a difference-in-differences framework, and multiple robustness checks. Our findings reveal that skilled labor does not significantly contribute to secondary sector performance in the early phase, when growth relies primarily on low labor costs and rapid urbanization. However, once regions accumulate sufficient economic capacity and technological readiness, skilled labor becomes an important driver of value added and export performance. Stricter environmental policies further widen regional differences: developed regions benefit from green upgrading supported by skilled workers, while less developed regions face firm exits and weakening industrial output. These results highlight the importance of aligning human capital investments with industrial and environmental policies to promote more balanced and sustainable economic development in emerging markets. Full article

Building Information Modelling (BIM) has increasingly transformed global architectural and construction practices by enhancing collaboration, design accuracy, and project efficiency. However, BIM adoption remains slow in several developing countries, including Nigeria, where architectural firms play a critical role in driving digital transformation across the wider construction sector. This study investigates the current level of BIM implementation within Nigerian architectural practices and identifies key factors that either enable or constrain its uptake. Survey findings (77 responses; 77% response rate), analysed using SPSS 26.0 and the Relative Importance Index (RII), reveal that although some firms have begun integrating BIM tools, many still rely heavily on traditional 2D CAD (Computer-Aided Design) workflows. Major barriers include high software acquisition and maintenance costs, limited technical expertise, and insufficient organisational readiness. The results highlight the urgent need for government incentives, targeted capacity-building programmes, and industry-wide digital skill development to accelerate BIM diffusion among architectural firms, whose early adoption is essential for sector-wide modernisation. Future research should explore how socio-technical alignment can reshape BIM-enabled workflows to generate measurable value for clients, contractors, and end users. Examining collaborative data environments, information exchange standards, and participatory design practices will be crucial for demonstrating BIM’s long-term return on investment and establishing sustainable digital transformation pathways within Nigeria’s architectural and construction industries. Full article

This study investigates the relationship between Environmental, Social, and Governance (ESG) performance and the financial performance of startups in emerging economies. We posit that strong ESG practices serve as a critical signal of quality and legitimacy, helping to alleviate the liability of newness by mitigating information asymmetries for external stakeholders. Analyzing a longitudinal dataset of startups, we find a positive main effect of ESG on financial performance. Further, we demonstrate that this relationship is contingent on factors at multiple levels. The positive effect of ESG is weakened in contexts of high firm digitalization, greater analyst coverage, and developed regional institutions, as these factors act as substitutes by providing alternative sources of credible information, thereby reducing the unique signaling value of ESG. Conversely, intense industry competition amplifies the ESG advantage, as the signal becomes more critical for differentiation. Our findings contribute by shifting the ESG discourse to the entrepreneurial context and offering a nuanced, multi-level understanding of when a firm’s sustainable investment is most pivotal as a strategic asset for startups navigating institutional voids. Full article

Data quality is known as the fitting degree of data content and formats to functions and it plays a crucial role in firms’ digital transformation. This study focuses on Industry 5.0, draws on Deming’s Profound Knowledge System on quality, and identifies four key influencing factors on data quality that align with Industry 5.0 concepts, i.e., data variation, employee resilience, system integration, and digital variation knowledge management. A structural model among these factors was established to support the digital transformation. An empirical study with a 301-participant questionnaire survey was adopted to test the model using SEM. The results show the following: (1) employee resilience and system integration each exert a positive effect on data variation and digital variation knowledge management; (2) data variation and digital variation knowledge management both positively affect digital transformation; and (3) employee resilience mediates system integration’s effects on data variation and digital variation knowledge management. Based on the results, this paper proposes a novel approach to enhancing data quality in digital transformation with a sustainable view: (1) employee resilience and system integration should be bundled, and emphasis should be put on the mediating role of employee resilience, forming a resilient firm capability and (2) digital variation knowledge management safeguards data variation, can prevent and respond to data quality variation risks, and helps firms form a better decision-making capacity. The proposed model can convert resource identification into capabilities generation and then to value creation with the resource orchestration view. It can help firms achieve more sustainable development during digital transformation. Full article

This study examines the impact of Environmental, Social, and Governance (ESG) disclosures on the firm valuation of non-financial firms listed in South Africa, using Tobin’s Q as a firm value proxy. Using a panel data approach of 642 firm-year observations from 2017 to 2022, the study applies Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimators to address possible endogeneity concerns. The results consistently show that, for the whole sample, ESG disclosures are positively and significantly related to firm value, thus supporting the view that markets reward transparency and sustainability initiatives. Firm size and liquidity also have positive impacts, while financial leverage has an inverse relationship with firm value. Subgroup regression analysis shows significant sectoral differences: ESG disclosure in non-manufacturing companies has a positive and significant relationship with firm value, in line with stakeholder and signaling theories, emphasizing the premium for intangible assets like reputation and trust. However, in manufacturing companies, ESG disclosure is negatively and significantly associated with firm value, implying concerns among investors regarding compliance costs, strategic misalignment, or possible “greenwashing.” The study contributes to the emerging-market literature by (i) introducing a PCA-based ESG index specific to JSE-listed non-financials, (ii) triangulating results across static and dynamic specifications to ensure robustness, and (iii) uncovering sectoral heterogeneity that has been largely overlooked. The research also has practical implications for corporate managers, policymakers, and investors on the alignment of ESG practices to industry attributes for long-term value optimization. Full article

Following and imitating others’ digital innovation decisions is not always grounded in rational judgment; it may also arise from blind conformity, reflecting a “herding behavior”. Drawing on a panel dataset of Chinese listed firms from 2010 to 2022, this study takes firms in the same industry as the reference group to investigate the existence, driving mechanisms, and economic consequences of corporate digital innovation convergence. The findings show that both breakthrough and incremental digital innovation exhibit convergence at the firm level and are jointly driven by information transmission, market competition, and resource dependence. However, the economic consequences of these two types of innovation convergence differ significantly. The convergence of breakthrough digital innovation enhances firms’ total factor productivity, return on equity, and capital market value, representing a positive peer effect, whereas the convergence of incremental digital innovation weakens these core indicators, reflecting a herding behavior. The heterogeneity analysis indicates that breakthrough digital innovation convergence is more pronounced in regions with stronger intellectual property protection and in industries with higher technology intensity, while incremental digital innovation convergence is more pronounced among private firms and in industries with lower technology intensity. Our findings provide valuable insights into the interactive dynamics of corporate digital innovation decisions and carry important implications for both theory and practice. Full article

Accurately predicting asset returns remains a central challenge in finance, with significant implications for portfolio optimization and risk management. In response to the challenge, this study evaluates the predictive performance of machine learning algorithms in estimating excess returns of U.S. industry portfolios, within the out-of-sample prediction framework of the Fama–French three-, four-, five- and six-factor asset pricing models. In the analysis, Support Vector Regression, Multilayer Perceptron, Linear Regression, and k-Nearest Neighbor were employed using monthly return data from 1992 to 2022, covering 5-, 10-, 12-, 17-, 30-, 38-, 48-, and 49-portfolio configurations composed of NYSE, AMEX, and NASDAQ-listed firms. The findings reveal that support vector regression achieved the highest number of top-ranked results, producing the most successful outcomes in 305 out of 836 model–portfolio combinations. However, multilayer perceptron achieved the best fit in the largest number of portfolios, ranking first in all groups except the 5-industry configuration. Furthermore, the Fama–French five-factor model outperformed other specifications across all groupings, confirming the value of incorporating profitability and investment information. Predictive performance also varied by industry, as wholesale and manufacturing sectors exhibited strong alignment, whereas utilities and energy-related sectors, likely constrained by structural or regulatory features, remained less responsive and exposed to long-term risks. Full article

As the fashion industry accelerates its digital and sustainable transformation, the European Union’s policy development on Digital Product Passports (DPPs) has attracted growing attention. However, there is still a lack of systematic research into whether consumers, particularly those outside Europe, are willing to adopt this emerging technology for greater transparency. To address this, this study develops an extended Technology Acceptance Model (TAM) by integrating three individual-level consumer variables, Ethical–Sustainability Orientation (ESO), Circular Value Orientation (CVO), and Technological Awareness (TA), to examine how these factors work in concert to shape consumers’ intentions to accept Digital Product Passports (DPPs). Data were collected from US consumers through an online survey, yielding 425 valid responses. Participants were recruited from a professional consumer panel managed by a market research firm. Structural equation modeling was conducted to test the proposed research model and hypotheses. The results reveal that Perceived Usefulness (PU) emerges as the most influential determinant of consumers’ acceptance of Digital Product Passports. Both Ethical–Sustainability Orientation (ESO) and Circular Value Orientation (CVO) demonstrate significant direct effects on adoption intention and indirect impacts through PU. Technological Awareness (TA) exhibits only a modest direct effect, suggesting that its role in shaping adoption behavior is comparatively limited. This study broadens the geographic and cultural scope of existing research on Digital Product Passports (DPPs) by providing empirical evidence on consumer acceptance in a non-European context. The findings advance the theoretical understanding of DPP adoption while offering practical implications for fashion brands and policymakers seeking to facilitate the global implementation of DPP systems within the fashion industry. Full article

Stock valuation models can be used to guide the investment decisions of institutions or individuals. In the traditional approach, the investor will use a valuation model to calculate a stock’s intrinsic value as a function of the estimated future cash flows the firm will distribute to its shareholders. The investment decision will hinge on how the estimated intrinsic value compares to the current stock price. This approach is appropriate when the investor has access to the detailed company-specific information required to forecast future cash flows. In an alternative approach, the process is reversed, and stock valuation models can be used to identify the cash flow expectations supporting a firm’s current stock price. Depending on whether or not these expectations are reasonable—in light of current and expected firm-specific, industry, and macroeconomic conditions—the investor can decide whether to buy, sell, or hold the stock. This approach is appropriate for external investors who do not have access to detailed company-specific information. This entry discusses the uses and limitations of the most prominent stock valuation models when used in the traditional framework, and explains how to identify and evaluate the expectations embedded within a current stock price. Full article

Wind power has become a strategic cornerstone of China’s renewable-energy transition and industrial upgrading, making it essential to understand how policy interventions shape the behaviour of its industry chain. This study examines how major wind power policies issued between 2015 and 2024 transmit shocks across nine upstream, midstream, and downstream sectors. Using four contagion tests based on higher-order co-moments, combined with a policy sensitivity index, the analysis identifies distinct transmission patterns across policy types. The results show that market-mechanism reforms induce the strongest and most systemic contagion effects, reflecting their ability to align financial incentives with renewable-integration objectives. Upstream sectors—particularly equipment and key material industries—exhibit the highest responsiveness, while midstream construction and downstream operation and maintenance display more moderate and delayed adjustments. Development and construction policies generate broader but less intensive contagion, whereas industry-support measures trigger selective, sector-specific responses. These findings offer practical guidance for improving policy coordination, investment planning, and industrial upgrading within China’s wind power value chain. Future research could extend the analysis by incorporating firm-level data, longer policy cycles, and interactions with other structural shocks such as electricity-market reforms and climate-related risks. Full article

This study investigates the relationship between emission performance, environmental disclosure, and firm value in Southeast Asia, where climate-related risks are increasingly shaping corporate strategies and investor decisions. Using a sample of 206 listed firms from Indonesia, Malaysia, Singapore, and Thailand over 2022–2023, the analysis applies a 12-item environmental disclosure index and emission scores from Refinitiv LSEG, with firm value measured by the price-to-book ratio. Structural Equation Modeling (SEM) is employed to test causal pathways, complemented by ANOVA to explore cross-country and cross-industry differences. The results show that emission performance significantly enhances environmental disclosure, consistent with signaling theory and the resource-based view, where superior performance motivates firms to communicate credibility and differentiate themselves. However, environmental disclosure does not exert a significant direct effect on firm value, highlighting a disclosure–value gap in emerging markets where reporting remains heterogeneous and less valued by investors. Country-level differences suggest stronger performance in Indonesia, Singapore, and Thailand compared to Malaysia, while industry-level analysis shows that health care, energy, and financial firms lead in both emission management and disclosure. The findings provide implications for regulators, firms, and investors by underscoring the need for stronger ESG reporting frameworks and more credible disclosure practices to strengthen value relevance. Full article

Drawing on an annual dataset of Chinese Shanghai and Shenzhen A-share listed companies covering the years 2011 to 2023, this study employs multiple regression analysis to investigate the impact of ESG information disclosure on corporate environmental performance and its underlying mechanisms. The results indicate that ESG disclosure significantly enhances environmental performance, a relationship mediated by green innovation, media attention, and executive compensation. Furthermore, heterogeneity analysis reveals that this positive effect is more pronounced in state-owned enterprises, firms with high-quality internal controls, and environmentally sensitive industries. This large-sample study provides a new perspective on how ESG disclosure bolsters corporate green competitiveness and long-term value, offering theoretical support for improving environmental governance and informing policy to promote sustainable economic development in China. Full article

In a context where the measurement of economic value is key for financial decision-making, Economic Value Added (EVA) stands out as a relevant indicator for assessing companies’ financial performance efficiency. This research aimed to determine the impact of the Weighted Average Cost of Capital (WACC) and profitability on the EVA of industrial sector companies in Peru. A quantitative approach was used, with a correlational-causal and non-experimental design. The sample included four industrial sector companies listed on the Lima Stock Exchange (BVL). The authors applied the document review technique, and the correlational analysis was carried out using linear regression. Results show that Return on Equity (ROE) is a statistically significant predictor of EVA across all companies analyzed, indicating a direct relationship. In contrast, WACC showed a weak relationship with the variables studied. It is concluded that profitability has a greater influence on EVA than WACC. However, the relationship between WACC, ROE, and EVA differs among companies. The model explains a moderate variability in EVA, suggesting that other factors not considered in the model also affect the generation of economic value. Full article

In this study, the effects of horizontal and vertical cross-ownership on innovation are examined, along with the influence of controlling parties on innovation incentives in cross-ownership firms. Since state-owned enterprises (SOEs) have better resources, the focus question of the study is to understand if SOE-controlled cross-ownership firms have stronger innovation incentives and possess higher efficiency. By using regression methods to analyze the firms listed in Chinese market, the results show that horizontal cross-ownership increases innovation incentives, but vertical cross-ownership decreases them. When firms with cross-ownership are controlled by non-SOE institutions, investments in innovation decrease. However, the environmental protection score of such a firm is higher. Lower investment and greater environmental protection indicate greater efficiency, and cross-ownership provides greater synergy in terms of sustainability. When the firms are SOEs, there is no such effect, indicating a less efficient synergy. However, SOEs attract more research visits from financial institutions. This study provides significant value for understanding the cross-ownership business system in the Chinese market. It demonstrates that the controlling party of cross-ownership can impact the efficiency of joint research and innovation, which is crucial for transitioning from a push-based, digitalization-focused Industry and Society 4.0 to a more pull-based, human-centered Industry and Society 5.0 era. The results show that policymakers should consider initiating policy revisions to further support business sustainability and change SOEs’ leading business norms to support innovation. Full article

Bankruptcy prediction in Slovakia’s industrial manufacturing sector is vital due to its significant role in the national economy. This study aims to develop a predictive model for forecasting corporate bankruptcy within the industrial manufacturing sector in Slovakia. The novelty of this study lies in developing a model tailored to crisis conditions, validated using COVID-19 data, and adapted to the Central European context for greater accuracy and relevance. The model is constructed using financial data extracted from the Orbis database, based on company financial statements from 2020 and 2021, and encompasses firms of various sizes. Employing backwards binary logistic regression, five statistically significant predictors were identified, enabling the model to forecast impending bankruptcy with a one-year lead time. The model was trained on a sample of 1305 companies and achieves an overall prediction accuracy of 83.78%, with an AUC (Area Under the Curve) value of 91.7%, indicating strong discriminative power. The resulting model demonstrates robust predictive capability and may serve as a practical decision-support tool for managers, investors, creditors, and other stakeholders assessing the financial health of firms. Full article