Search Results (86)

The rapidly evolving business landscape, driven by stringent energy conservation policies, compels construction firms to adopt energy-efficient project-centric structures, particularly in modern construction projects. These firms face a complex, multi-mode, resource-constrained, multi-project scheduling problem characterized by dynamic project arrivals and multiple resource constraints, including global, local, and non-renewable capacities. This environment pressures managers to simultaneously optimize the conflicting objectives of minimizing total project duration and total energy consumption. To address this challenge, we propose a novel multi-objective Smart Raccoon Family Optimization (SRFO) algorithm. The SRFO, a hybrid evolutionary approach, is designed to enhance global exploration and local exploitation. Its performance is boosted by integrating a non-dominated sorting mechanism, a dedicated energy-efficient search strategy, and enhanced genetic operators. The SRFO simultaneously optimizes two conflicting objectives: minimizing the total project duration and total energy consumption. This approach effectively integrates the unique constraint of off-site component production and on-site assembly within an intelligent scheduling framework. Empirical validation across benchmark problems and a real-world case study is conducted, comparing the SRFO with existing multi-objective approaches, such as NSGA-III, MOABC, and MOSMO. Performance is assessed using convergence and distribution metrics, augmented by TOPSIS-based multi-criteria decision-making. Results conclusively demonstrate that the proposed SRFO significantly outperforms existing approaches and offers a robust, high-quality solution for project management in energy-constrained environments. Full article

The opportunistic use of insider information generates adverse effects on capital markets, making its mitigation through robust corporate governance practices. This research analyzes the corporate governance mechanisms that reduce the signs of opportunistic insider trading, grounded in the assumptions of information asymmetry and opportunistic behavior. The hypotheses posit that firms listed on the Novo Mercado or Level 2 of Corporate Governance, with more independent boards of directors and greater female representation, active fiscal councils, consolidated ESG practices, non-family ownership structures, robust audit committees, and audits not conducted by Big Four firms, are less prone to opportunistic conduct. The sample comprises 237 firms, representing 51% of companies listed on [B]3 between 2010 and 2021, resulting in a total of 2175 firm-year observations. Panel data analysis supports the proposed hypotheses. The findings indicate that higher levels of corporate governance practices are associated with a lower incidence of opportunistic insider trading in the Brazilian capital market. This study contributes to the literature by highlighting the specific features of the largest stock market in Latin America and emphasizing the role of transparency, formal monitoring, and informal mechanisms, such as social and reputational pressure on insiders, in shaping ethical behavior and curbing the misuse of privileged information. Full article

This study aims to examine whether family firms differ from nonfamily firms in their propensity to save cash, particularly in response to new investment opportunities, and to assess how investors value the cash holdings of family versus nonfamily firms in light of potential agency concerns. The study uses the context of Jordan—a small emerging market characterized by weak investor protection and the dominance of family-managed firms, a setting that exacerbates principal–principal conflicts. Employing treatment effects and propensity score matching estimation techniques to address the endogeneity between family control and firm cash holdings, this study finds that family enterprises maintain significantly higher cash reserves than their nonfamily counterparts. Moreover, the analysis finds that family firms do not exhibit a significantly greater propensity to save cash in response to new investment opportunities, implying that financial flexibility concerns are not significantly different between family and nonfamily firms. However, the results further demonstrate that investors assign a higher valuation to cash held by nonfamily firms, suggesting that investors associate family control with potential agency conflicts regarding the deployment of cash reserves. Full article

This study examines the adoption of artificial intelligence (AI) among micro and small hospitality enterprises in Slovenia, a small EU economy where digital transformation remains limited. It explores how organisational characteristics and managers’ attitudes toward AI are related to its adoption and firms’ operating revenues. Data were collected from 286 accommodation and food-and-beverage enterprises through a structured questionnaire completed by managers or owner–managers, complemented by secondary official financial data. Using ordinary least squares regression, the analysis examined associations among organisational characteristics, managerial attitudes, AI use intention and adoption, and financial performance. The results indicate that firm size and structural features alone are not closely linked to digital transformation. AI adoption shows stronger associations with managers’ positive attitudes and with factors such as non-family ownership and smaller firm size. The overall General Attitudes toward AI Scale (GAAIS) score showed no direct relationship with revenue, but two specific items—enthusiasm for AI and recognition of business opportunities—were positively associated with higher revenues. Among AI tools, only smart text editors and CRM systems were statistically associated with revenues, suggesting that better-performing firms are more likely to use simpler, more affordable technologies. The study provides contextual evidence on behavioural and organisational dimensions of AI adoption in resource-constrained hospitality SMEs. Full article

We examine how firms finance deficits when cash is tight, focusing on French private family firms and the COVID-19 period. In an under-studied, bank-based setting (France, 2003–2024), we reassess whether pecking-order behavior is stronger under family control and whether the gap with non-family firms widened after 2020. We find that family firms consistently use debt to bridge shortfalls, whereas comparable non-family firms rely less on new borrowing; this difference increases post-COVID, in line with policy-driven easing of bank credit and the importance of relationship lending. The amplification is stronger in credit-intensive sectors and for firms with deeper bank ties. The results, presented without strong causal claims, connect control preservation and intermediation to marginal financing choices and highlight a policy trade-off between short-run stabilization and later deleveraging. Full article

This research investigates the factors influencing organizational participation in Sustainable Development Goals (SDGs), specifically examining the role of Chief Executive Officer (CEO) attributes and the moderating influence of stakeholder pressure. Utilizing fuzzy-set Quantitative Comparative Analysis (fsQCA) on a dataset of 220 Chinese firms, this study identifies that high SDG engagement arises from multiple, equally effective configurations of CEO characteristics (age, education, experience, CEOs in family and non-family firms, digital and financial literacy) and shareholder pressure as a moderator. Our research shows three distinct configurational paths towards participation in SDGs. Young–Skilled–Pressured (Path A): Younger, highly educated CEOs with strong financial and digital literacy, operating under significant stakeholder pressure, are more likely to participate in SDGs. Older–Experienced–Family–Pressured (Path B): Older, experienced family CEOs, supported by at least one form of literacy (financial or digital), and facing strong stakeholder pressure, tend to participate in SDGs. Professionalized Non-Family (Path C): Highly educated CEOs in non-family firms with robust financial and digital literacy, who are also under strong stakeholder pressure as moderators, participate in SDGs. Crucially, strong pressure from external stakeholders is found to be a near-constant prerequisite (quasi-necessary condition) for achieving high SDG participation. This study contributes to Upper Echelons Theory by demonstrating the conjunctural nature of CEO attributes in impacting strategic outcomes. It also reinforces Stakeholder Pressure Theory by confirming its critical and moderating role in driving sustainable practices. Practically, the findings suggest that boards should strategically design leadership teams and foster robust stakeholder engagement, as this external pressure is nearly always required to enhance SDG participation. Full article

The agony of medical negligence for all involved is well documented. Health practitioners involved in harm events are described in the literature as “second victims”. Injured patients report that clinical negligence litigation is traumatic, slow, expensive, and does not meet their needs. Clinical negligence lawyers have complained that healthcare injury cases are so complex and expensive that many firms do not accept these cases. This article uses a qualitative case study research design to analyse two cases from the United States of America (US) to explore the promise of an alternative resolution process: the communication-and-resolution program (CRP). CRPs involve the hospital disclosing the healthcare injury, investigating and explaining what happened, apologising and, sometimes, offering compensation to injured patients and families. In the US, CRPs have not replaced tort law. The two case studies analysed in this article offer a rare insight into the accounts of those who have experienced clinical negligence and an alternative non-litigation approach. The case study approach delves into the detail, providing an in-depth glimpse into the complexity of healthcare injuries in their real-life context. The case studies provide valuable lessons for reshaping resolution processes to better meet injured patients’ needs. Full article

The study examines economic and non-economic endeavors to explore the association between family involvement and financial decisions within family firms. The non-economic factors of a family drive the need to analyze the impact of socioemotional factors on the financial policies of the family firms. The study explores the impact of family ownership, family management, and family control drawn from agency theory and socioemotional wealth perspectives on the financial decisions of family firms. Our findings in support of the socioemotional wealth perspective show a positive relationship between family ownership and debt financing with a desire to finance growth and avoid control dilution, with an increase in the level of debt. However, the involvement of family members in management and the top management team leads to an adverse relationship between family ownership and debt level, exhibiting the risk-averse behavior of a firm, which drives firms to reduce debt levels. Overall, our findings suggest that the perceptions of the socioemotional wealth theoretical paradigm are important in determining capital structure decisions in family enterprises. The results are resilient to potential endogeneity and heterogeneity difficulties, which may assist scholars and practitioners in assessing capital structure decisions in emerging economies. Full article

This study investigates the influence of corporate governance on reducing financial statement fraud (FSF) in Jordanian service and industrial companies listed on the Amman Stock Exchange from 2018 to 2022. To achieve this, the study employed the Beneish M-score model to assess the likelihood of FSF and logistic regression to examine the influence of corporate governance structure on fraud mitigation. The study identified 13 independent variables, including board size, board director’s independence, board director’s compensation, non-duality of CEO and chairman positions, board diversity, audit committee size, audit committee accounting background, number of annual audit committee meetings, external audit fees, board family business, the presence of women on the board of directors, firm size, and market listing on FSF. The study included 74 companies from both sectors—33 from the industrial sector and 41 from the service sector. Primary data was collected from financial statements and other information published in annual reports between 2018 and 2022. The results of the study revealed a total of 295 cases of fraud during the examined period. Out of the 59 companies analyzed, 21.4% demonstrated a low probability of fraud, while the remaining 78.6% (232 observations) showed a high probability of fraud. The results indicate that the following corporate governance factors significantly impact the mitigation of financial statement fraud (FSF): independent board directors, board diversity, audit committee accounting backgrounds, the number of audit committee meetings, family business involvement on the board, and firm characteristics. The study provides several recommendations, highlighting the importance for companies to diversify their boards of directors by incorporating different perspectives and experiences. 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

Family businesses are a significant part of the global economy, yet defining them and understanding their features remains a topic of debate. Despite the suggestion that family ownership may lead to conservative innovation strategies, recent research indicates that family businesses can embrace strategic risk in innovation. Governance of innovation in family firms is a growing area of interest, with corporate governance influencing R&D and innovation decisions. The role of CEOs in family businesses is critical for innovation strategies, with family CEOs often prioritizing long-term interests. However, research on innovation in Turkish family businesses is lacking, offering an open area for exploration. This article investigates the influence of CEO type (family vs. non-family) on product innovation, innovation management processes, strategic decision-making, risk-taking behaviors, technology adoption, and emotional attachment within Turkish family businesses. A survey methodology was employed, reaching out to Turkish family businesses with a CEO involved in product innovation. The study found that, while family CEOs exhibit a stronger emotional attachment compared to non-family CEOs, there was no significant difference in the perceived influence of CEOs on product innovation. Non-family CEOs were not significantly more likely to implement formal innovation management processes or prioritize long-term strategic goals over short-term profits. Similarly, there was no significant evidence supporting the notion that non-family CEOs are more likely to engage in risk-taking behaviors compared to family CEOs. The study suggests a need for further research using a larger sample and diverse methodologies to deepen understanding of family business dynamics, particularly in the context of innovation. Full article

Family businesses play a vital role in the global economy as an organizational form that has evolved over time. However, Chinese family firms generally suffer from insufficient investment in research and development. Based on panel data of Chinese listed family firms from 2008 to 2022, this study investigates the impact of government green subsidies on family firms’ green innovation, along with the heterogeneity of such effects under different scenarios. The results show that government green subsidies significantly promote both strategic and substantive green innovation. The moderating effect analysis reveals that economic policy uncertainty weakens the baseline effect. Further analysis confirms that the positive impact of green subsidies is achieved by alleviating firms’ R&D funding constraints. Heterogeneity analysis indicates that green subsidies have a stronger effect on non-heavily polluting firms; they promote substantive green innovation more effectively in firms with low managerial green cognition, and strategic green innovation in those with high cognition. Additionally, the effects vary across the firm life cycle: green subsidies enhance strategic green innovation during the growth and maturity stages, and substantive green innovation during the growth and decline stages. This study reveals the mechanisms through which government green subsidies affect green innovation in family firms and offers policy implications for promoting sustainable development in the family business sector. Full article

The innovation behavior of family firms has long been a focal point in both academic research and practical applications. Based on the socioemotional wealth theory, this study aims to empirically analyze the differences in exploratory innovation between family and non-family firms while exploring how internal and external environmental factors, namely overperformance duration and industrial competition, moderate this relationship. We conducted an empirical analysis using data from manufacturing firms listed on China’s A-share market from 2009 to 2018. The results indicate that family firms exhibited a lower propensity for exploratory innovation compared to that of non-family firms. Furthermore, the negative relationship between family firms and exploratory innovation was more pronounced in relaxed internal environments characterized by overperformance duration, while this negative relationship was alleviated in urgent external environments marked by intense industrial competition. This study contributes a fresh perspective to the literature on family firm innovation and provides valuable insights for policymakers and family firm managers seeking to enhance innovation competitiveness. Full article

This study investigates the relationship between private family control (excluding state and royal) and Environmental, Social, and Governance (ESG) performance among publicly listed firms in the Gulf Cooperation Council (GCC), focusing specifically on the moderating role of firm age. Employing multivariate POLS regression analysis on data from 2016 to 2021 and controlling for established firm-specific variables, we find a robust negative association between private family control and ESG performance, consistent with Socioemotional Wealth (SEW) perspectives where family-centric goals may override broader stakeholder interests. Critically, our results demonstrate that firm age significantly and positively moderates this negative relationship; the detrimental impact of family control on ESG performance attenuates considerably as family firms mature. This attenuation likely reflects the development of sophisticated governance structures, a heightened focus on long-term reputation and SEW preservation, and potential generational shifts towards sustainability values within older firms. Providing the first empirical test of this age moderation effect within the under-researched GCC context, this research extends SEW theory by highlighting the dynamic evolution of family firm sustainability engagement over the lifecycle in a non-Western setting and contributes novel insights to the accounting literature. These findings underscore the need for targeted policies and interventions to foster ESG adoption, particularly among younger private family firms in the GCC, offering valuable insights for regulators, investors, family business owners, and practitioners aiming to foster responsible sustainability practices. Full article

This paper investigates the firm-level determinants of debt policy in private family SMEs. It employs a comparative analysis of two sub-samples of family and non-family SMEs using panel data from 200 Moroccan SMEs over the period from 2018 to 2022. The findings reveal that family SMEs adopt a conservative financing strategy, maintaining lower debt levels compared to their non-family counterparts. This conservative approach appears to be driven by risk considerations related to bankruptcy costs associated with higher debt levels. Indeed, the results show that the financing behaviors of family SMEs align more closely with pecking order theory than trade-off theory. Furthermore, the study suggests that the financing behavior of family SMEs differs slightly from that of non-family SMEs, but this difference is not resistant to changes in debt measures. This study makes several contributions to the literature. First, it identifies the key determinants of debt policy among family SMEs, offering insights into the distinctive financing strategies employed by these firms. Second, it offers evidence supporting the relevance of capital structure theories in explaining the financing decisions of family firms within the context of developing economies. In addition, the study’s findings have practical implications insofar as they can guide policymakers and banking stakeholders, especially those in bank-based economies where debt is the primary financing option for SMEs, in conceiving adapted financing options that align with the characteristics of family firms, thereby fostering their growth and, consequently, the economy’s development. Full article