Company's Decision Research Articles

Navigating diverse information environments on environmental sustainability: information practices of decision-makers in Finnish high-tech companies

Navigating diverse information environments on environmental sustainability: information practices of decision-makers in Finnish high-tech companies

Demand Information Forecasting and Sharing in a Remanufacturing Closed‐Loop Supply Chain

ABSTRACTWe delve into the incorporation of demand information forecasting and the subsequent information sharing in a closed‐loop supply chain (CLSC). We consider the competition between an original equipment manufacturer (OEM) and an independent remanufacturer (IR). The OEM autonomously determines whether to forecast demand information and further considers whether to disseminate the realized demand signal to the IR. We find that the IR adopts either a partial‐ or a full‐remanufacturing strategy to compete with the OEM. The OEM shares negative demand signals with the IR, as such signals decrease the retail prices and increase the production quantity of all‐new products. Additionally, the sharing of negative demand signals helps alleviate the cannibalization effect caused by the introduction of remanufactured products. When examining the optimal sharing strategy in equilibrium, the OEM only invests in forecasting demand if the forecasting cost is relatively low. Furthermore, the numerical studies reveal that, in equilibrium, the OEM does not necessarily benefit from possessing more precise demand information. Additionally, we assess the influence of consumers' environmental awareness on the production decisions of both companies. The findings indicate that heightened environmental awareness prompts the IR to adopt a full‐remanufacturing strategy, and the information management strategies remain robust.

The Impact of Managerial Accounting Techniques on Short-term Decisions

This study aims to determine the importance of managerial accounting in the process of short-term decision-making. Since managerial accounting is a crucial component of the financial information system and is crucial in making decisions in big companies or SMEs, while managerial accounting is only briefly discussed in the majority of economic units, there are some organizations where certified public accountants view managerial accounting as an optional component of the business. Financial data was collected from one of the SME companies in KRG/Sulaimani governorate, which is Mariwan Gallery, located in Bazian. The results indicate that managerial accounting has a significant effect on the process of short-term decision-making. This study recommends that all businesses, including small shops, hire accountants in order to make critical financial decisions. This helps businesses perform better, and it also provides more job opportunities for society.

Capital structure decisions in the energy transition: Insights from Spain

The renewable energy transition depends heavily on capital structure decisions of energy firms. Most previous research has focused on the decisions of oil companies. This study investigates the financing of new investment in the Spanish renewable energy sector, including decisions about: i) equity versus debt, ii) short versus long-term debt, and iii) equity issuances versus retained earnings for new investment. Our analysis is based on data from over 22,000 energy firms from 2008 to 2021 and shows that these firms prefer debt over equity (more than 90% of changes in assets are financed through increasing debt) and have extended the term of the debt over the period studied (reaching a maximum of almost 73% long-term debt in 2021). The deployment of retained earnings is less usual than raising new equity capital. Our analysis points to a generalized use of project finance to support new investments. Policymakers should focus on increasing financing through equity and thus diversifying the financial risk of the energy transition. In addition, a supportive fiscal policy and a stable regulatory environment are desirable for achieving this goal.

Employee participation at company level: institutions, articulation and challenges

Employee participation at company level is one of the core institutions of what can be called the ‘European social model’, based on national regulations and regulations at EU level, such as the directives on European Works Councils (EWCs) and the Societas Europaea (SE). This process of institutionalisation coincides with fundamental changes in the current era of globalisation and transformation, which increase the importance of the company level for employee participation. We argue that this development highlights the problem of articulation within the multi-level system of employee participation. By comparing institutions of participation at national – we include the cases of France, Germany, Spain and Sweden – and at EU level we analyse whether and how these institutions create opportunities to influence company decisions by giving voice to workers’ representatives. In doing so we identify good practices and, on that basis, develop policy recommendations to strengthen the articulation of employee representation at company level.

A strategic optimizing carbon neutrality within profit and emission reduction efficiency: a stackelberg game analysis under a cap-and-trade scheme.

Carbon emissions (CO2e) are a main problem, and many countries are committed to reducing CO2e to attain carbon neutrality. To narrow this gap, this research considers green technology implementation (GTI) and CO2e quota in dual green gaming. The objective is to explore the integration of GTI and CO2e quotas into optimal production and pricing decisions in emission-generating companies (EGCs). To achieve this, a two-party simulation Stackelberg game model involving the CO2e strategy of EGCs and governments is proposed. We formulate a mathematical model and experimental methods to optimize EGCs' decision-making using neutral indicators. EGCs optimize production quantity, achieving CO2e reduction through ERE maximization. EGCs exhibit a strong commitment to ERE enhancement practices, enhancing profit and carbon-neutral goals. Our findings demonstrate the effectiveness of CO2e quotas and GTI as carbon-neutral indicators in EGCs, contributing to global CO2e reduction. Our research provides both literature and inspiration for global CO2e reduction efforts. Moreover, it aids governments in exploring optimal incentives and decisions for pricing and production. Last, this work enables EGCs to maximize profits and move toward a carbon-neutral environment.

Shareholder primacy or stakeholder governance?

Externalities happen largely in the private sector and cannot be fully separated from production decisions. Decision-making in companies thus co-determines the degree of sustainability of an economy. Advances in impact valuation allow us to express the stakeholder interests in finance and valuation terms. We can thus compare investment decisions and payout decisions for three types of models: the shareholder value model, the shareholder welfare model, and the stakeholder model. Our results show that stakeholder-driven companies are better able to pursue a sustainable economy. Corporate governance should be adjusted accordingly.

The Relationship Between Chief Financial Officer Gender and Investment Efficiency

Objective: This study aims to examine the relationship between the gender of the chief financial officer (CFO) and the efficiency of corporate investment, especially over-investment. Methods: The independent variable is the gender of the CFO and the dependent variable is over-investment. The research method is correlation type and multivariate regression using panel data with a logistic regression model approach. The data of manufacturing companies in the Tehran Stock Exchange has been collected from 2017 to 2021. Results: The findings of the research show that the presence of a female financial manager is significantly related to the reduction of the company's over-investment level, so gender plays a role in the economic decision-making and investment of companies. Conclusion: Female chief financial managers are more risk-averse compared to male chief financial managers and consider the interests of shareholders in the company’s economic decisions. Therefore, companies should pay special attention to gender diversity at the level of company managers in making decisions and economic investments.

The Role of Competitive Intelligence in Strategic Decision-Making: A Literature Review

Competitive Intelligence (CI) is an important element in a company's strategic decision-making in the midst of increasingly fierce business competition. In business literature, CI has been recognized as a vital tool for understanding a company's external environment and analyzing competitors' strategies. However, there is still debate regarding the role and effectiveness of CI in strategic decision-making. This study aims to explore the role of CI in strategic decision-making through a comprehensive literature review. The research method used is a qualitative method by analyzing various articles and journals related to CI and strategic decision making. The discussion in this study includes the importance of CI in providing relevant information, the methods used in CI implementation, and its impact on the company's strategic decisions. The results show that a deeper understanding of the role of CI in the context of strategic decision making, as well as providing recommendations to improve the effectiveness of CI in supporting corporate strategic decisions. The implication of this research is to provide valuable insights for business practitioners and researchers in understanding the contribution of CI to the strategic decision-making process. This research is also expected to be a reference for companies in optimizing CI implementation to strengthen competitive advantage in the market.

The impact of business intelligence on promoting decision-making in Jordanian business companies

This research aims to investigate the impact of business intelligence on promoting decision-making in Jordanian business companies. The research Methodology is quantitative. It adopts an analytical case study approach, employing the analytical descriptive method, which is deemed appropriate for investigating social phenomena. The construction of the scale for this study relies on two variables that align with its objectives. This scale includes ten items that cover the main research question. The study’s target population includes all Jordanian business companies, with a sample size of 30 managers randomly selected from these companies. Several guidelines are adhered to when selecting a research instrument. The findings show that there is a positive impact of using business intelligence on promoting decision-making in Jordanian business companies. The employees of the companies have sufficient skills in the field of enhancing business intelligence since they actually use it in their workplace.

Shareholder Proposal Rights: Balance Between Protection of Minority Shareholders’ Rights and Efficiency of Company Decision-Making–Article 115 of PRC Company Law

Shareholder Proposal Rights: Balance Between Protection of Minority Shareholders’ Rights and Efficiency of Company Decision-Making–Article 115 of PRC Company Law

Faktor-Faktor Penentu Keputusan Etis Konsultan Pajak di PT Mitra Manajemen Internasional

Ethics is very important in the business world, business ethics refers to the principles and values ​​that influence a company's actions and decision making. As an important part of tax compliance, tax consultants must understand tax regulations and make decisions in accordance with ethics to maintain the integrity of the profession and public trust. A number of large cases of tax evasion and bribery show that tax consultants engage in unethical actions, which can hinder business growth. Tax consultants are responsible for providing tax input in accordance with regulations and liaising with the tax authorities. The difference in interests between consultants and clients causes ethical conflicts. PT Mitra Manajemen Internasional uses policies that support the ethical decision making of tax consultants. This research aims to find factors that influence the ethical decisions of tax consultants at PT Mitra Manajemen Internasional. It is hoped that this research can provide deeper insight and help develop better policies and programs to support ethics in the tax consultant profession through interviews and participant observation.

Mastering Market Movements: Technical Indicators in IDX30 Stock Selection

This study aims to analyze the role of trading volume, foreign money flows, and technical chart patterns in shaping investment decisions for IDX30 companies. Utilizing descriptive quantitative research, data was collected from Stockbit and IPOT, focusing on stock price charts, trading volume, and broker summaries from January 1, 2020, to December 31, 2022. The findings reveal that purchase decisions were made when stock prices broke out of a chart pattern, accompanied by increased trading volume and foreign accumulation. Conversely, sell decisions occurred when stock prices broke down from a pattern, followed by increased volume and foreign distribution. These results underscore the importance of technical analysis in guiding informed investment decisions, helping investors avoid irrational practices and potential losses. The study highlights the practical need for investors to integrate technical indicators, such as volume and foreign flows, into their decision-making processes to enhance investment outcomes.

THE INFLUENCE OF AUDIT DELAY, SIZE OF PUBLIC ACCOUNTING FIRM, AUDIT OPINION, AND MANAGEMENT CHANGE ON AUDITOR SWITCHING

This study explores the impact of audit delay, the size of public accounting firms, audit opinions, and management changes on auditor switching among companies listed on the Indonesia Stock Exchange. The research aims to identify the key factors that influence a company's decision to switch auditors. Using logistic regression analysis and secondary data from financial reports, the study introduces a unique approach by simultaneously analyzing four independent variables, which is rarely done in prior studies. The results reveal that audit delay and management changes significantly affect auditor switching, while the size of public accounting firms and audit opinions do not have a significant impact. The findings suggest that operational and managerial factors play a more critical role in auditor switching decisions compared to financial factors. Theoretically, the study supports the relevance of agency theory in explaining auditor switching, particularly in addressing conflicts of interest between management and shareholders. Practically, these results provide valuable insights for company management when deciding to switch auditors and highlight the importance for regulators to implement policies that enhance transparency and audit quality, strengthening corporate governance practices in Indonesia.

Unjust: Publishing Black and African American Children’s Books and School Availability

Traditional book publishing has a pronounced and unjust deficiency of Black and African American voices. White culture, thoughts, and rules are the standard in traditional publishing. Black and African American authors are not typically picked up by white-dominated publishing companies. In traditional publishing, mostly white literary agents are gatekeepers and acquisition editors shut the doors too frequently to non-white authors. Aspiring Black authors then resort to hybrid or vanity press companies that often use unscrupulous practices, charge exorbitant fees, accomplish little or low-quality work, and deny authors’ agency and full rights in the final disposition of a book. Because a majority of traditionally published children’s books featuring Black or African American stories or characters are written by or illustrated by non-Black people, the wide possibilities of adventure, celebrations, discovery, and friendship stories are not published for Black children. Instead, publishers favor stories about slavery, the civil rights movement, famous Black people, and hair tales as well as racially ambiguous characters. Regrettably, Black and African American culturally relevant stories written and illustrated by Black or African Americans are not readily available to children in school and library settings consistent with schools’ community or student demographics. This article shares research findings and viewpoints of Kathy Anderson and Karen Bowlding, two Black children’s book writers and publishing consultants who are also parents. Black and African American students encounter education and cultural injustice because of the practices of traditional publishing companies, educators, and librarians. Parents and guardians can ameliorate these issues with discernment and action. Foremost, publishing company decision-makers must acknowledge their own racial biases that deny representation and authenticity to all children in our US classrooms.

Dancing between threats and conflicts: How Chinese energy companies invest amidst global geopolitical risks

Utilizing Chinese A-share listed energy companies from 2002 to 2021, we investigate the relationship between global geopolitical risks (GPR) and corporate investment through panel fixed effects and attempt to elucidate its channel. The main findings are as follows: Different types of GPR have varied impacts on corporate investment; global geopolitical acts (GPRA) significantly promote investment in Chinese energy companies, while global geopolitical threats (GPRT) substantially inhibit it. Channel analysis indicates that the capital hedging effect can explain the impact of GPR on the investment of Chinese energy companies. Moreover, the interactions between GPR and factors such as companies' commercial credit capability, valuation, operational risk, and degree of internationalization are statistically significant. These factors interact with GPRA and GPRT, jointly affecting the investment of Chinese energy companies. After employing a series of robustness tests, our results remain valid. Our research deepens a better understanding of how geopolitical risks influence the investment decisions of energy companies.

The relationship of tax instruments and performance indicators of companies to ensure the environmental component of sustainable development in Russia

The article lists the categories that can be considered as taxation instruments. It is proposed to regard tax burden as the main instrument of tax policy for realising sustainable development of the country. It is concluded that in practice the consequences of its increase and decrease can be difficult to predict. One of the reasons lies in the fact that financial decisions of companies are influenced not so much by the size of the tax burden as by the change in profitability provoked by it. The comparison of the tax burden and profitability indicators for all sectors of the Russian economy has been conducted. The correlation of the profitability (profitability of goods sold and profitability of assets) and the tax burden indicators by industries of the Russian economy has been calculated. The results are ambiguous: it is concluded that there is no connection between the environmental friendliness of the type of activity and the interdependence between the industry indicators of the tax burden and profitability. It has been found that not only the tax burden, but also the level of profitability are differentiated by industry. The classification of economic activities by the degree of environmental friendliness is proposed: directly affecting the environment, associated with the impact on it, associated with indicators of environmental safety, activities that have no direct connection with the environment.

Going Further in Combating Transnational Bribery: Voluntary Disclosure and Federal Transparency in America's Foreign Corrupt Practices Laws

The purpose of this research is to analyze the role of incentives and mitigation strategies related to voluntary reporting in enforcing anti-corruption laws, especially in the context of the Foreign Corrupt Practices Act (FCPA) in the United States. This study shows that voluntary disclosures made by companies in anti-corruption law enforcement, based on an in-depth literature review, play an important role in facilitating effective collaboration between business and government entities. This study shows that voluntary disclosures made by companies in anti-corruption law enforcement, based on an in-depth literature review, play an important role in facilitating effective collaboration between business and government entities. A company's decision to voluntarily report Foreign Corrupt Practices Act (FCPA) violations is a complex strategic move influenced by legal incentives, cost-benefit calculations, reputational risks, and financial impacts. Further research is needed regarding longitudinal studies to examine the long-term impact of voluntary reporting on corporate reputation and financial performance. This research underscores the importance of this study and its relevance in a global context that increasingly demands corporate transparency and accountability.

Moderating Effects of Dividend Policy Consistency and ROA on Firm Performance in M&A

The occurrence of a positive abnormal return is the dream of every investor in dealing with the decisions taken by the company, because it can provide its own benefits for stakeholders. Therefore, what can create positive abnormality around the announcement of company decision-making, especially Merger and Acquisition (M&A) decisions? To reveal several factors that can create positive abnormal returns around M&A announcements, this study aims to determine the effect of dividend-paying firms on short-term M&A performance which is moderated by the consistency of dividend policy and Return on Assets (ROA) and controlled by size. company using multiple linear regression model. The data used in this research comprises companies in Indonesia that conducted M&A during the period 2002-2021. The total number of observations in this study is 150, and the research employs the Ordinary Least Squares (OLS) technique for analysis. The results of this study indicate that dividend-paying firm has a significant positive effect on short-term M&A performance. The consistency of dividend policy cannot strengthen the positive relationship between dividend-paying firms and short-term M&A performance, but the firm's performance as reflected in ROA, strengthen the positive effect of dividend-paying firms on short-term M&A performance.

The impact of board characteristics on executive compensation: evidence from Jakarta Islamic Index Company

Purpose – This study aims to examine the effect of board characteristics on CEO compensation. The board characteristics examined in this study include board independence and gender diversity consisting of woman on board and independent woman board on CEO compensation.Design/methodology/approach – The population in this study is a company belonging to the Jakara Islamic Index (JII) at the Indonesian Stock Exchange for the period 2012 - 2016. The sample in this research was determined by purposive sampling method with a total sample of 75 annual reports.Findings – The results show that independent board gender diversity consisting of female boards and independent female boards has no effect on CEO compensation.Research limitations/implications – The sample of this study is a company with shares included in the Jakarta Islamic Index on the Indonesian Stock Exchange (IDX) with an observation period of 2012-2016. Hypothesis testing in this study using multiple linear regression analysis.Practical implications – Boards to oversee and control the actions of opportunists manager, and define the most important decisions of companies, one of which compensation for the CEO, so that corporate objectives can be achieved. With the larger board size will increase oversight function of the board to act opportunistically manager so control oversight of CEO compensation more stringent design and can be defined more precisely.Originality/value – Research on the role of women in board composition is gaining attention, but not much has been explored in a country with a strong patriarchal culture like Indonesia.