Corporate Viability Research Articles

Corporate Viability and the Duty to Consider the Interests of Creditors in the United Kingdom and the European Union

This article contrasts the recent UK Supreme Court case of BTI 2014 LLC v Sequana and the EU Preventive Restructuring Directive, which both examine the duty of directors to consider the interests of the company’s creditors once the company entersfinancial distress. This article firstly contrasts how the two frameworks trigger creditor consideration and what they require of directors. Then it explores how both frameworks utilise the concept of corporate viability either as a framing device for creditor paramountcy or as an independent guide for directorial judgment. The article details how deference towards directorial judgment is facilitated in either framework, particularly in relying on the commercial nature of corporate viability as distinguished from legal insolvency. It also explores how corporate viability positions the interests of different interest holders, namely in how it affects the balance between the interests of shareholders and creditors. The article furthermore explores the extent to which the consideration of broader stakeholders is facilitated by allowing directors to emphasise the importance of corporate viability. Finally, the article explores the broader implications of corporate viability and the creditor duty from the perspective of entity-based theories of corporate form and entity maximisation approaches towards the company’s interests.

ESG risks and Corporate Viability: Insights from Default Probability Term Structure Analysis <br>

ESG risks and Corporate Viability: Insights from Default Probability Term Structure Analysis <br>

Models and Methods of Applied Mathematics in Supply Chain Management and Optimization

Abstract Amidst the swift expansion of the global trade economy, enterprises are confronted with escalating competition within their industries. Enhancing market competitiveness to boost economic efficiency emerges as a pivotal strategy for ensuring corporate viability. This study employs applied mathematics to refine the optimization of supply chain management, thereby offering a novel approach to augmenting management efficacy in enterprise supply chains. Initially, the research adopts mathematical models tuned to the traditional structure of enterprise supply chains, addressing prevalent profiling issues. Subsequently, it introduces a two-tier planning model to facilitate multi-objective decision-making in supply chain management. This model is rigorously applied to resolve various decision-making scenarios. An empirical analysis is conducted using Company M as a case study. Post-optimization, Company M's inventory exhibited only one instance of material shortfall, involving 132 items. The capital tied up in inventory was significantly reduced to 214,092 yuan—a decrease of 36,319 yuan compared to the capital occupied under traditional supply chain management methods. Furthermore, the optimized supply chain management system demonstrated a notable increase in the average inventory turnover rate to 12.3507%, marking an improvement of 3.6923% over the traditional model. The findings underscore the efficacy of the proposed optimization in enhancing the economic efficiency of enterprise supply chain management. This optimization not only streamlines operations but also provides robust support for the ongoing development of enterprise supply chains.

Institutional dynamics and corporate innovation: A pathway to sustainable development

AbstractModern corporate success is primarily reliant on a perfect balance of institutional effectiveness, innovation, and sustainability. Therefore, the primary goal of this research is to evaluate the impact of institutional frameworks on corporate innovation in developing countries. To achieve the said objective, we use firm and country data from multiple sources, and the final dataset consists of 24,166 observations from 41 developing countries during 2014–2018. For the analysis, we employ ordered probit and instrumental variable ordered probit regression models. According to the results, the success of corporate innovation in developing countries hinges on the strength of legal, financial, administrative, political, and religious institutions. Moreover, such associations stand out more clearly in nations with strong and stable institutional frameworks. The regression results show that innovative enterprises are more prevalent in strong institutional environments compared to those in poor institutional environments. These results also indicate that a strong rule of law, protection of property rights, easy access to financing, developed financial markets, an ethical environment, control of corruption, a stable political system, a democratic government, religious diversity, and freedom all contribute to corporate innovation. Moreover, institutional efficiency and corporate viability fuel the engine of corporate innovation, encouraging enterprises to create game‐changing products and services. These results contribute to the field of innovation management by considering institutional settings for sustainable development. The results have practical applications for building robust institutions and a creative culture.

Green Accounting and Corporate Viability of Selected Oil Industry Firms in Nigeria

The study was carried out to examine the relationship between green accounting practices and corporate viability of selected oil industry firms in Nigeria. Components of green accounting practices used include restoration cost, redemption cost and compensation cost, while return on investment was used to represent corporate viability. The study adopted the ex-post facto research design using secondary data collected from published annual reports of sampled firms (Oando, Shell, Agip, Conoil, and Alcon Oil) from 2010 to 2022. Data gathered was analyzed using the Ordinary Least Square (OLS) methods with the aid of E-views version 9 computer software. The results of the empirical analysis showed that restoration cost, redemption cost and compensation cost all had positive but not statistically significant association with return on investment (the measure of corporate viability) of selected oil industry firms in Nigeria. The study concluded that green accounting has positive influence on corporate viability of the selected oil industry firms in Nigeria. It was recommended that publicly quoted firms should adopt uniform green accounting reporting and disclosure standards for the purpose of control and measurement of viability.

Companies Could Benefit When They Focus on Employee Wellbeing and the Environment: A Systematic Review of Sustainable Human Resource Management

Purpose: We reviewed the scholarly literature that examines the role of sustainable practices for employee health and the environment. The study also examined the negative impact of the workplace on the wellbeing of employees and its indirect effect on Sustainable Development Goals (SDGs). Design/methodology/approach: This was a literature review with data from the Scopus scholarly database. We found 65 results from 2008 to 2022. After eliminating duplicates and other search fields, we were left with 30 final documents. Findings: The study provided evidence that sustainable practices in the workplace increase the wellbeing of employees and reduce pollution in the environment, while also benefiting company viability. Research limitations/implications: Using other database sources besides Scopus and Web of Science could yield additional results. Practical implications: The study highlighted the need for organizations to develop sustainable HRM practices to minimize the negative effects on employee wellbeing and capitalize on the savings that are generated through sustainable initiatives. This finding could contribute to better corporate practices and the further development of research in this field. Originality/value: The HRM literature revealed the importance of having employee wellbeing practices which increase work productivity and engagement. This also empirically proved the positive impact of companies that implement sustainable HRM practices. This research provided a theoretical model that depicts the interrelation between corporate viability, employee wellbeing, and sustainable human resource management.

Α fuzzy-set Qualitative Comparative Analysis Approach for the evaluation of corporate viability

Α fuzzy-set Qualitative Comparative Analysis Approach for the evaluation of corporate viability

Family Firm Governance and Long-term Corporate Survival: Evidence from Korean Listed Firms

Purpose - This study aims to examine whether family firm governance is related to long-term corporate survival. To find out whether and why family firms have higher chances of long-term survival compared to non family firms, this study analyzes the relationship between some governance characteristics that are prevalent in family firms and corporate long-term viability. Design/methodology/approach - This study utilizes a sample of 285 family firms listed on the Korea Stock Exchange (KSE) to probe the influence of governance characteristics on corporate survival. This study conducts Cox proportional hazard regression analysis to estimate the influences on the survival duration. Findings - The results indicate that firms with particular governance characteristics show higher long-term survivability. Specifically, the probability of firm’s long-term survival is increased when the CEO is the largest shareholder, which may be related to CEO’s stewardship attitudes. Research implications or Originality - This study has significance in that it examines the direct causal variables that enhance long-term corporate viability through a large scale empirical examination. Also, the study findings provide some clues as to why certain family firms outlive non-family firms.

Corporate viability and sustainability: A case study in a Mexican corporation

AbstractThis paper reports on preliminary testing of the “Self‐Transformation Methodology” (STM) to rebalance an organisational structure in order to improve the effectiveness of corporate sustainability (CS) strategy implementation. It presents the results of a pilot study where it was possible to align CS strategy and organisational structure, clarifying the required adapting and learning organisational processes and closing the learning loop by continuously monitoring sustainability indicators during this process. Additionally, it reflects on the learning and needs for further developments of the methodology. This research contributes to CS and system thinking literature with an approach to address the challenges of integrating CS initiatives into the operation of a firm. The STM methodology has shown good potential for creating a more effective context for CS strategy implementation. The research scope is limited, and in consequence, more action research is required to fully apply the adjusted methodology to further corroborate the initial findings.

Assessment of Risks in Information Technology Projects

The risk associated with information technology is quite big especially when it comes to using, own, operate, and select information technology systems for an organization. The risk associated with information technology is possibly termed as a business risk. It includes IT-related prospects that may affect businesses. This can be achieved with both a questionable relapse and scale which threatens the alignment of key objectives and goals. The study is based both on empirical studies and on true case analysis. The study found that top management understands the essential part of technology development in organizations that are infamous for corporate viability and efficiency because of the use of IT hardware and computer software.

Understanding the Conceptual Evolutionary Path and Theoretical Underpinnings of Corporate Social Responsibility and Corporate Sustainability

To unlock the potential for corporations to play a more proactive role in sustainable development, it is critical to have a fundamental understanding of the pathways leading to a responsible and sustainable business. This study explores contributions of theories of the firm in explicating why and how integrating corporate social responsibility (CSR) and corporate sustainability (CS) into business strategic decisions and operation processes helps to improve the viability of corporations. The research objective is addressed through a narrative review of relevant literature by following the developmental and evolutionary sequences in business responsibility and sustainability while contemplating the connections between CSR and CS through the lens of the dominant theoretical perspectives underpinning the concepts. The study posits an integrative theoretical framework that offers supports for embedding CSR and CS into a corporate business strategy. It discusses that corporate choice of CSR and CS actions and policies is supported by dual internal and external mechanisms based on resource-based theory and institutional theory. This is to meet the interests and expectations of internal and external stakeholders, the basis upon which stakeholder theory is constructed. Findings from this review corroborate the proposition that the three theories of resource-based, institutional, and stakeholder could be used as the primary approach to explain corporate recognition of the need for CSR and CS, and further build a coherent platform to support corporate choice and adoption of CSR and CS in business strategy.

Medical Value as a New Strategy to Increase Corporate Viability: Market Chances and Limitations in the Diagnostic Industry

Study background: While the strategic advantage of Medical Value (MV) products is widely accepted in developed markets, it remains unclear if varying societal wealth influences the perception of customers on MV products. Methods: 231 of 240 Internal Medicine physicians from 8 countries participated in a survey with 5 multiple choice questions on MV. Responses from countries have been allocated to income levels according to world-bank data. Three groups have been defined (high-income countries: Canada, Norway and Switzerland=developed markets, upper-mid income markets: Argentina, China, Mexico and Turkey, lower-mid income counties: India=emerging markets). Answers have been statistically analyzed in subgroups (emerging markets vs. developed markets). Results: The majority of physicians believed that reliable and clinically validated treatment algorithms should accompany a product qualifying for MV. Algorithms should be created, predominantly for existing markers. Emphasis has been given to the discovery of better markers for well-known diseases in developed markets. Physicians` answers on pivotal factors for MV products yielded highest emphasis for generalizability (global technical standardization and data comparability). Technical excellence was given lower priority in developed markets comparing to emerging markets. Cost control was emphasized mainly in high-income markets. Conclusion: Both developed and emerging markets demand more clinical trials to establish algorithms for diagnostic tests. The prove of clinical utility is a pivotal factor for sustainable business success.

The relationship between organizational culture and market orientation in the Greek telecommunication companies

The modern business environment is characterized by intense competition, which has led telecommunication companies to a continuous race towards gaining and maintaining a competitive advantage. In order to succeed, telecommunication companies "cultivate" market orientation and market oriented cultures as non-imitable characteristics, capable to ensure long---term corporate viability and growth. This paper provides an insight into the Greek telecommunication industry by: a) revealing the coordination between market orientation strategies with corresponding culture, b) the relationship between extrovert-type cultures with performance and c) how special traits of telecommunication providers (size and age) influence the degree of market orientation and the dominant culture type (introvert or extrovert). The paper contributes: a) to the creation of national cultural profile in the telecommunication industry, which can become a starting point in a wider trial to create a European industry profile, b) to the empirical testing of the correlation between culture and market orientation and c) to the examination of the extent to which background factors (such as firms' age and size) should be taken into account during the implementation of a business strategy.

Tobacco Industry Efforts Undermining Evidence Linking Secondhand Smoke With Cardiovascular Disease

The scientific consensus that secondhand smoke (SHS) increases cardiovascular disease (CVD) risk by 30% is based on epidemiological and biological evidence. The tobacco industry has contested this evidence that SHS causes CVD, but how and why they have done it has not been described. About 50 million pages of tobacco industry documents were searched using general keywords and names of industry consultants and scientists. Tobacco industry-funded epidemiological analyses of large data sets were used to argue against an epidemiological association between SHS and CVD and smoke-free regulations, but these analyses all suffered from exposure misclassification problems that biased the results toward the null. More recent industry-funded publications report an increased risk of CVD associated with SHS but claim a low magnitude of risk. When early tobacco industry-funded work demonstrated that SHS increased atherosclerosis, the industry criticized the findings and withdrew funding. RJ Reynolds focused on attacking the biological plausibility of the association between SHS and CVD by conducting indirect platelet aggregation studies, exposure chamber experiments, and literature reviews. Although these studies also suffered from exposure misclassification problems, several produced results that were consistent with a direct effect of SHS on blood and vascular function. Instead, RJ Reynolds attributed these results to an unproven epinephrine-related stress response from odor or large smoke exposure, which supported their regulatory and "reduced-harm" product development efforts. Philip Morris' recent "reduced-harm" efforts seem supportive of a similar corporate agenda. The tobacco industry attempted to undermine the evidence that SHS causes CVD to fight smoke-free regulations while developing approaches to support new products that claim to reduce harm. The industry interest in preserving corporate viability has affected the design and interpretation of their cardiovascular studies, indicating the need for great caution in current debates about future tobacco industry regulation and development of reduced-harm tobacco products.

Is it Better to be Naughty or Nice?

Investment analysts are trained that the primary responsibility of managers in public companies is to maximize shareholder wealth by raising the value of their stock holdings without regard for any greater societal good. Only recently have analysts begun to recognize the influence of various external stakeholders on the financial viability of corporations that violate ethical norms. The result is an increasing interest in socially responsible investing, defined as the process of integrating personal values and societal concerns into investment decision making. This orientation to the issue considers both academic research and popular press treatments. Careful selection of socially responsible investments over broader market investments may actually represent a value-maximizing strategy. Financial analysts will need to move beyond a laundry list of mutual funds in their dealings with investors.

The Use of Decision Criteria in Selecting Information Systems/Technology Investments

In a competitive environment, selecting and effectively pursuing the right information systems/technology (IST) investments can be a key factor in sustaining corporate viability and prosperity. This study examines the criteria used by 80 organizations in allocating strategic IST resources. Senior executives were asked to indicate which of 15 criteria they use in deciding among competing projects. They also identified how frequently the criteria are used and ranked them by importance. The results indicate that criteria such as the support of explicit business objectives and response to competitive systems are now important in selecting IST investments. Although financial criteria are used by most organizations, the extent of analysis and application appears to leave room for improvement.

The Liquidation/Merger Alternative: Some New Evidence

Since the seminal work of Altman (1968), a large number of researchers have developed statistical models, derived from accounting data, with the aim of predicting corporate failure as evidenced by the event of “bankruptcy”. Such models are now apparently widely and successfully used by credit/investment analysts as an aid to assessing corporate viability (see Altman 1983; Taffler, 1984). However, an area which has received little attention in the management literature, but one of much import to the analyst, is whether it is possible to discriminate between those financially distressed firms which fail, and those where a timely merger appears to serve as a viable alternative to corporate bankruptcy.

INFLATION, INFLATION ACCOUNTING, AND THE CORPORATE VIABILITY CONDITION

Journal of Business Finance & AccountingVolume 3, Issue 3 p. 117-117 INFLATION, INFLATION ACCOUNTING, AND THE CORPORATE VIABILITY CONDITION D.T. NGUYEN, D.T. NGUYEN The author is Lecturer in Economics at the University of Lancaster.Search for more papers by this author D.T. NGUYEN, D.T. NGUYEN The author is Lecturer in Economics at the University of Lancaster.Search for more papers by this author First published: September 1976 https://doi.org/10.1111/j.1468-5957.1976.tb00492.x AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume3, Issue3September 1976Pages 117-117 RelatedInformation