Narrow Results

In this study we used Japanese firm-level data in order to explore the productive impact of organizational capital by isolating the effect of other intangibles like R&D, brand, human and social capital. Fixed-effect and random-effect panel methodology are proposed to assess specific-organizational capital at firm level. Our results suggest that in monetary terms the value of firm-specific organizational capital stock is significant when compared to traditional assets. Findings suggest that firms building up higher stocks of organizational capital not only increase their productivity but also their value.

Using firms across 95 countries, the paper finds that a higher percentage of females on the boards is associated with better corporate governance practices concerning the proportion of independent directors, governance disclosure, employee Corporate Social Responsibility (CSR) training, existence of a CSR committee, and board age diversity. Propensity score matching finds that a higher representation of females on the boards can improve board independence, disclosure, CSR training, and firm value. Based on instrumental variable analysis, the findings show that more female directors positively and significantly affect the board age diversity, independent directors, governance disclosure (with GDI annual), and market value.

Over the past decades, the diffusion of new technological innovations has transformed the economies. In particular, the strategic emphasis shifted from efficient management of tangibles assets to innovation and effective usage of intangible assets. In this study we explore how the various combinations of sort of intangibles assets, like firm-specific organizational capital (FSOC), technology, brand, human and social capital affect the firm's corporate performance. The results suggest that regardless of the firms' type, those with higher stocks of FSOC, human and social capital outperform firms with higher stocks in only one dimension, suggesting a high degree of complementarity between them. The results also indicate that intangibles like FSOC and human and social capital are more likely to impact on productivity, whereas R&D and advertising are more likely to impact on the firm's value.

Technological innovation has played a fundamental role in the economic prosperity of firms and countries. Despite several studies on their effects on firms and markets, it is still necessary to assess how introducing technological innovation as innovative products, processes, and services will face extant market forces and transform them. This paper introduces a model for evaluating the potential economic effects of technological innovations based on three dimensions: technological paradigm, market value, and impact on extant industries. Based on the combination of these three dimensions, eight configurations of technological innovations are presented from an intertemporal perspective, considering their impact on the economy. This model has been validated by assessing several academic patents and helps evaluate the market potential of new technologies.

More and more consumers base their buying decision process on online reviews. Not surprisingly, researches show that online reviews have an actual impact on revenues. As a result, a new product can disappear even before it makes it to the market. How to make sure that the new product will get positive online reviews before it goes to market? By evaluating the market value of a new product before and after Crowdsourcing, we offer the proof-of-concept that crowd-wisdom pertaining to new-product idea generation improves its market value significantly, both in term of ratings and comments after just one integration of the crowd into the new product development process. The improvement took place before a large investment was done. More surprisingly, this market value after Crowdsourcing is the same for the Crowd involved in the Crowdsourcing process than for the potential customers of the new product created by using this process.

Patent ownership Fragmentation following the U.S. pro-patent shifts has built overlapping intellectual property rights or patent thickets. This has made the use of others’ innovations costlier due to transaction costs, licensing fees, and hold-up. Using panel data on 2,441 public U.S. manufacturing firms for 1976–2002, I find that patent thickets lower firms’ expected profit and their market value. I also find that firms with a large patent portfolio experience a smaller effect, likely because stronger bargaining position lowers the hold-up likelihood. There is no systematic time effect from patent thickets on firms’ market value with a large patent portfolio size.

We investigate how exogenous corporate governance changes in terms of anti-takeover provisions affect the innovation and market value of the firm. Consistent with our conjecture, using triple difference-in-differences models, we find that the unexpected changes in the interpretation of the case law cause a decrease in innovation for Delaware firms with classified boards, entrenched managers, and in less competitive industries. We also show that after the case rulings for Delaware firms, lower (higher) innovation activities are associated with lower (higher) market values. Our results are robust to inclusion of conventional governance measures, alternative model specifications, and different measures of innovation.

The evaluation of the economic value of the ecological environment can provide a vigorous support for protecting the ecological environment. The authors introduce several methods for the evaluation of economic value that are commonly used in the international community and their relevant applications; these include two methods for the evaluation of market value — the averting behavior/preventive expenditure method and the replacement cost/restoration cost method — as well as four methods for the evaluation of non-market value — the contingent valuation method, the choice experiment method, the hedonic price method and the travel cost method; moreover, they also introduce the application of the usually overlooked differential land rent theory in this field. Though these methods are widely applied, many matters need to be noted. At present, domestic research on evaluating the economic value of urban and suburban ecological environments remains extremely scarce. Regarding the preparation of the natural resource balance sheet that China is attempting to compile, only the overall economic value of the ecological environment across the country or in a specific large region is meaningful. The application of the methods for the evaluation of economic value in analyzing these issues can bring about many valuable research achievements. A combination of the mainstream foreign value evaluation methods with the Marxist differential land rent theory is conducive to evaluating the overall economic value of the ecological environment.

The study adds new mechanism of earnings management which explores the mediation between financial policies and market value of firms. A comparative study conducted on manufacturing sectors in which sample of 857 companies for China and 150 companies for Pakistanis taken from lists of Stock Exchanges during the period 2012 to 2016. Discretionary accruals have been calculated using the modified Jones Model (1995) and finally Panel analysis was used to analyze the data. Result discloses that in both countries, managers’ Earning Management practices could significantly mediate between these financial policies and firm’s value as measured by Tobin’s Q and stock return. This is the first empirical evidence that make available importance of financial policies which could efficiently influenced by earnings management and ultimately influences the firm’s performance.

There is possible to develop plans and programs of firms in future via increasing R&D programs and policies and this issue can have effect on financial performance and market value of firms. Based on the argument, the present research tries to study the moderating role of ownership structure on R&D expenditure policies on accounting performance and market value of firms. For this purpose, two approaches including investmentizing R&D expenditures and R&D intensity were used to measure R&D policy. The research hypotheses were analyzed using a sample with 73 firms listed on Tehran Stock Exchange from 2011 to 2015 using multivariate regression model based on panel data technique. The results of the research indicated that there is a positive significant relationship between investmentizing R&D expenditures with performance and market value of firms and also there is a positive relationship between R&D intensity with performance and market value of firms. Finally, it was determined that institutional ownership of firms can the effect of R&D intensity on performance and market value of firms sustain negatively.

The competitive process of creating blocks in blockchains — the technological backbone of cryptocurrencies — is computation intensive and consumes a large amount of energy. However, its environmental impact may not be significant, or at least not significant enough to undermine the application of digital currency as both a medium of exchange and a store of value. This chapter uses a unique dataset from the United States Environmental Protection Agency (EPA) to compare the carbon footprints of various industry sectors in the US with that of Bitcoin. Overall, the equivalent amount of greenhouse gas emissions from the Bitcoin network in 2020 is about one-third of the amount emitted by the entire mining sector in the US. In cross-sectional analysis, Bitcoin has a significantly larger carbon footprint than many companies and even industries after controlling for the economic value created. What is alarming is the rate of increase in Bitcoin’s energy consumption since 2017 and the possibility that its carbon footprint may eventually surpass all industries in the near future.

This chapter analyzes stock return behavior following initial public offering (IPO) events in the pharmaceutical sector and examines factors that could have an impact on this behavior.

The results of the research indicate a positive Cumulative Average Abnormal Return (CAAR) of 3.03% in the 20 days following the IPO until the end of the quiet period for all firms under examination, and a decline of tens of percent in the 18 months post-IPO. When the sample is divided into two subsamples according to firm size, a market value (MV) of US$500 million can be identified as a threshold for positive or negative post-IPO yields. Companies with an MV below this threshold experience a positive but not significant CAAR in the first 20 days post-IPO and a significant negative CAAR from day 31 onwards. In contrast, companies above this US$500 million threshold show a significant positive CAAR 20 days post-IPO, followed by a consistent increase in CAAR for the next few months. The results also indicate that MV, IPO proceeds, shareholder dilution and clinical phases are critical factors determining post-IPO returns. In conclusion, we suggest that investors recognize a US$500 million market value of a firm as a confidence threshold when investing in newly issued pharmaceutical companies. We postulate that firms valued above this amount attract more attention and gain greater investor confidence than do firms below this threshold. Lower-valued firms shares can be considered “lottery stocks,” as their IPO ignites a period of enthusiasm until the quiet period ends, where after investors’ attention to such firms gradually diminishes, and their focus moves on to their next potential lottery-like opportunity.