Value Maximization Research Articles

A Truthful Reverse Auction Mechanism for Federated Learning Utility Maximization Resource Allocation in Edge–Cloud Collaboration

Federated learning is a promising technique in cloud computing and edge computing environments, and designing a reasonable resource allocation scheme for federated learning is particularly important. In this paper, we propose an auction mechanism for federated learning resource allocation in the edge–cloud collaborative environment, which can motivate data owners to participate in federated learning and effectively utilize the resources and computing power of edge servers, thereby reducing the pressure on cloud services. Specifically, we formulate the federated learning platform data value maximization problem as an integer programming model with multiple constraints, develop a resource allocation algorithm based on the monotone submodular value function, devise a payment algorithm based on critical price theory and demonstrate that the mechanism satisfies truthfulness and individual rationality.

“What is Design Worth?” Narrating the Assetization of Design

This article explores how financial logics and investment rationalities are intersecting with and shaping the expert discourse and practice of professional design. It uses “assetization” as a conceptual category to make sense of recent efforts to account for the value of design in financial terms. Specifically, the article provides a narrative-semiotic analysis of a report on “The Business Value of Design” published by McKinsey & Company, unfolding how design is valued in terms of its capacity to deliver future earnings for shareholders, and thus made to acquire the asset form. The article foregrounds how can the assetization of design be understood not only as evidence of the gradual spread of financialized valuations, but also as an organizing act underpinned by a script that activates characters and defines frames of action around the use of design in firms. It shows how this script entangles the coordinated expansion and monitoring of design activities within firms with the fervor for shareholder value maximization and capital gains, drawing a convenient line of causation between them as a near certainty. The article contributes to our understanding of how the cultural condition that makes the spread of assetization possible is to an important extent established in the ongoing and everyday work of striving to systematize and increase creativity in organizations.

Shareholder value maximization via corporate ESG performance: evidence from mergers and acquisitions in China

ABSTRACTThis study investigates the role of environmental, social, and governance (ESG) performance in shaping shareholder value during mergers and acquisitions (M&A) processes. Drawing on data from Chinese publicly traded companies, we demonstrate that firms with robust ESG performance exhibit a heightened ability to fulfill their commitment to maximizing shareholder value. These findings align with stakeholder theory, which posits that organizations prioritizing ESG considerations are more likely to generate greater returns for their shareholders. Moreover, our analysis reveals that the positive impact of high ESG performance on valuation is magnified in cases where the acquiring firm is either a non-family business or a state-owned enterprise (SOE). Additionally, we find that the influence of corporate ESG performance on value creation becomes more pronounced when the acquiring firm boasts higher levels of transparency and a favourable reputation. This research contributes to the limited body of literature exploring the connection between ESG initiatives and M&A practices, as well as enriches our understanding of firm investment behaviour and value creation, particularly within emerging markets.

Exploring the method of calculating the amount of overlapping enjoyment of enterprise income tax benefits

Abstract The adjustment of enterprises’ stacked enjoyment of preferences in the revision of the 2021 corporate income tax return is a highlight. This paper takes the cost of capital use model as the basis to study the maximization of the net value of capital obtained by adopting the same optimal capital accumulation, and the utility mechanism of the reduced tax rate preferences and the halved levy preferences are studied, respectively. Finally, with high-tech enterprises as the main object of empirical research, we studied the effect mechanism of superimposed enjoyment of enterprise income tax concessions on R&D and analyzed the calculation process of the amount of superimposed enjoyment of income tax concessions. The results show that to tax-adjusted income of 60 million yuan to calculated through the original method of filing method to enjoy 1 million yuan of preferences, while the use of superimposed enjoyment of tax breaks and preferences amounted to 1,335,200 yuan. In this paper, the calculation of tax benefits enjoyed by using stacking is more accurate to reflect policy requirements and maintain the tax interests of high-tech and other enterprises.

Corporate Governance and Firm Performance: A Review of Theories and Models

The need for good corporate governance derives from expectation gap when the behaviours and goals of managers and other employees fall short of those of their principals and other stakeholders. In view of this, several theories and models have been put forward to explain the relationship among the parties and how their conflicting views, goals, behaviours and actions should be aligned to achieve the ultimate goal of the owners of the firm – value maximisation. This study provides elaborate perceptions into the most prominent theories and models that underpin studies relating governance mechanisms and corporate performance. Thus, academic researchers as well as students can, depending on their research objectives, use, build up or develop their theoretical underpinning(s) from these thorough frameworks.

A System Thinkingbased Framework for Sustainable Governance in Healthcare

This study emphasises the importance of thinking beyond the constrictive perspective of shareholder profit maximisation and putting stakeholder value maximisation front and centre in healthcare. This study uses system thinking approaches to understand the pitfall of the narrow approach of shareholder profit maximisation in healthcare organisations. The study further performs stakeholder analysis to identify each stakeholder’s interests, needs, expectations, and level of influence and power over the health systems and policy. The study used multi-criteria decision analysis approach to identify the priority of the stakeholder organisations. The criteria used for the prioritisation are levels of interest, influence, and impact. Contrary to belief pharmaceutical companies were found to be the most significant player in driving the outcomes of the healthcare system. The study also emphasises the role of government and regulators in the achievement of the same. Stakeholder analysis done in the study also concurs with these findings. Finally, the study uses the grounded theory approach to suggest a framework for the achievement of objectives and providing sustainable governance. This study concludes that by thinking beyond shareholder profit maximisation, healthcare organisations can prioritise patient-centred care, social responsibility, and innovation, ultimately leading to better outcomes for patients and society.

Does economic liberalization foster corporate investment? Theory and evidence from US and Canadian firms

Prior studies have largely debated and demonstrated the positive effect of economic liberalization on economic growth, but they have not clarified how and to which extent economic liberalization affects corporate investment, the main driver of a country's economic growth. This paper investigates the relationship between economic liberalization and corporate investment by modelling the microeconomic channels through which economic liberalization affects corporate investment. Our theoretical framework extends the standard neoclassical model of firm value maximization to incorporate the effect of economic liberalization on corporate investment via several microeconomic channels. We test the theoretical predictions of our model by using a large and heterogeneous sample of non-financial US firms for the period 2000–2019. The empirical results support our hypotheses that economic liberalization positively affects corporate investment both directly and indirectly through different channels. These effects hold, although with different intensity, for all dimensions of economic liberalization.

Development and testing of lean simulation game on set-based design

Purpose Set-based design (SBD) is a lean tool widely adopted for improving design processes and providing value maximization to clients. The purpose of this paper is to present the development and testing of a lean simulation game that incorporated point-based and SBD principles. The objective of the game was to enhance learning of lean design management among construction students. Design/methodology/approach After a thorough and comprehensive literature review consisting of secondary data in journal papers, books, thesis references and primary data in the form of interviews with lean practitioners, the simulation game prototype was developed. The testing of the game was carried out with a study group. Data were collected during the gameplay with the help of a questionnaire survey on a confidence scale and Likert scale and assessed using the Wilcoxon signed-rank test, histogram, one-sample t-test and false discovery rate (Benjamini–Hochberg) correction method. Findings The data collected both pre- and post-simulation showed an increase in average confidence in understanding from 3.33 to 3.89, a 16.7% rise. The data was further interpreted by using Wilcoxon signed-rank test, indicating that the post-simulation learning experience was significantly better than the pre-simulation one. Promising positive results were obtained for the questions on game design, engagement and understanding of point-based design and SBD concepts. Originality/value The simulation game helps bridge the gap between knowledge building and real-life by effectively imitating the process. The game facilitates a dynamic and critical approach toward developing new educational simulation games and their successful incorporation in propagating lean principles in the construction industry.

Impact of Intellectual Capital on Financial Performance of Listed Oil and Gas Firms in Nigeria

This paper examines the impact of intellectual capital on financial performance of listed firms in Nigeria. To achieve this objective; quantitative research design was employed. Data were generated from the annual reports and accounts of the sampled listed oil and gas companies from 2016-2020. The period is chosen and believes to be adequate in providing insight on the inflationary trends which the industry experienced. Similarly, the period of five years selected is in line with the studies of Muhammad and Rashid, 2015 as well as Iyande, 2018. Intellectual Capital as independent variable was measured by its components (HCE, SCE and CEE) while financial performance being the dependent variable was measured by NPM and ROE. Regression technique was used as tools of data analysis and the findings establish that the independent variables (HCE, SCE and CEE) have significant positive impact on the oil and gas companies’ Financial Performance proxies by NPM and ROE. The regression results show R-square of 86.1% and 59.4% for NPM and ROE models respectively. This implies that the model is fit and the explanatory variables are properly selected and account for the substantial value of the corporate profitability. Hence, the paper recommends that listed oil and gas companies in Nigeria should improve their efforts to boost the value of their intellectual capital for its crucial impact on NPM and ROE. This can be achieved through maximization of market value created, intellectual capital return and more investment in intellectual capital components, particularly human, structural and relational/customer capital.

Model of factors affecting to cost-volume-profit analysis application: Research on the Unified Theory of Acceptance and use of Technology

The primary objective of this article is to introduce new model The Unified Theory of Acceptance and Using of Technology (UTAUT). The article shows which factors have the impact on the cost – volume – profit analysis (CVP) applying. CVP is a tool to help manager to make optimal business decision (Fong-Ching Yuan, 2009), in order to achieve the highest aim in finance operation that is business value maximization. Through studying and mastering the CVP relationship, managers can maximize the potential capabilities of the enterprise, use and promote effectively all resources in the enterprise to perform well manufacturing business. However, CVP analysis adaptation in making business decisions in each manufacturing enterprise is different because of many factors. This article mentions the factors based on UTAUT including: perceived usefulness, perceived ease of use, social influence, facilitating conditions.

Sustainability reporting and financial performance of listed financial firms in Kenya

Financial sector stability is vital for the realization of economic development. Failure to incorporate environmental, social and governance (ESG) elements into corporate strategies can lead to corporate failure. Through the adoption of a descriptive research design, this study aims to determine the relationship between sustainability reporting and the financial performance of financial companies listed on the Nairobi Securities Exchange (NSE) in Kenya. Through the census method, the study population of twenty-three listed financial firms was obtained, and secondary data for the period from 2015 to 2021 was extracted through content analysis. Data on predictor variables were obtained through a document check index utilizing a non-refined exploratory factor analysis, while data on the response variable were obtained directly from annual reports. The data were analyzed through descriptive and inferential statistics. Modelling was further adopted through feasible generalized least squares (FGLS) to counter the problem of first order serial correlation. The findings indicate a positive and significant relationship between ESG reporting and the financial performance of listed financial firms in Kenya. The results imply that firms should embrace sustainability since ESG drives corporate strategies and will help firms to improve their performance, which will bring improved resilience. Focus on the triple bottom line enables value maximization for the three Ps – profit, people, and planet – thus facilitating sustainable development. The harmonization of reporting guidelines which is process-driven rather than content-driven will minimize greenwashing by firms. Lastly, industry players should ensure the availability and quality of ESG data.

Charting the evolution of research on the paradoxes in consumer choice—Systematic review and future research agenda

AbstractThe paradoxical findings in consumer choice research have captivated the interest of many scholars from diverse fields and transformed the understanding of consumer decision‐making. This paper is the first attempt to systematically review, synthesize, and integrate the paradoxical findings in consumer choice research. One of the first paradoxical findings was the violations of value maximation models of rational choice. The second important paradox in consumer choice research is the puzzling role of variety in consumer choices. We focus on these two critical paradoxes discovered in consumer choice literature over the last five decades and refer to them as the “paradox of rational choice” and the “paradox of variety.” We conducted a co‐citation cluster analysis to help identify the most significant studies in the domain. The cluster analysis helped eliminate the subjective bias in article selection. We also used inferential analysis to widen the scope of clusters to other relevant and especially recent studies. A review of 233 papers published between 1972 and 2023 reveals the four themes covering the two paradoxes of consumer choice. The first theme covers the first paradox: the paradox of rational choice. It presents research on preference reversals and other violations of value maximization rational choice models due to contextual factors and choice environment. The following three themes cover the second paradox of consumer choice: the paradox of variety. The second theme focuses on the benefits of variety and the natural desire of consumers to seek more variety. Paradoxically, the third theme highlights when and why variety will likely cause harmful psychological consequences for consumers. Finally, the last theme reconciles the opposing ideas of themes two and three by identifying the boundary conditions and suggesting ways to resolve this paradox. We also provide research directions that scholars can consider for future research related to each of these themes.

Constantine – Algeria- informal expansion, private lands value at stake. Towards a preventive approach to informal land use

In this paper, we examine the informal expansion of Constantine from the perspective of land as a property asset and a regulation target and what it involves in terms of stakeholders’ interplays. The study was conducted on the southeastern expansion by drawing a parallel between land use regulation and the actual land use on large private landholdings. A qualitative survey was conducted to investigate the informal production and use of urban land through semi-structured interviews with relevant public and private stakeholders. The study shows that informal land use lies in the conflict between urban planners and landowners over the conversion and allocation of large private landholdings and the financial stakes it involves. Land transactions are engaged in the informal market when land use regulation does not converge with the owner’s logic of land value maximization. The informal land market allows the latter to circumvent land use regulation and to capture land added value on hypothetical uses, whether by informally converting agricultural lands or allocating urban ones. As to the resulting informal land use, it is not limited to housing issues but also meets the needs of private actors for tertiary real estate. It is also pointed out that land use policy and regulations failure in countering the phenomenon lies in ignoring the informal land market upstream of informal land use and urbanization. Finally, the study suggests that a preventive approach should address the conflict over land use with land management oriented towards local approach and consensus seeking with the private stakeholders. In this sense, we propose a tool to assess the likelihood of the emergence of informal land market as a decision aid for urban planners and policymakers in terms of land use.

Unraveling the Relationship between Business Strategy and Shareholder Value Maximization

Purpose: This study aims to explore the relationship between business strategy and shareholder value maximization, focusing on the mechanisms that drive value creation and sustainability in the global marketplace. It seeks to integrate various theoretical perspectives and empirical evidence to enhance understanding in this area. Research Design and Methodology: The thematic analysis and narrative synthesis reveal key themes and theories that contribute to understanding the formulation of business strategy and its impact on shareholder wealth. The findings emphasize strategic consistency, resource endowments, and stakeholder engagement as crucial drivers of financial performance and value creation. Findings and Discussion: The study highlights the need for further research to adapt to emerging trends and practical challenges in strategic management and corporate governance. It contributes to ongoing discussions in the field, providing valuable insights for scholars, practitioners, and organizational leaders, and underscores the practical implications of effectively implementing business strategies for maximizing shareholder value. Implications: The study underscores the importance of continuous adaptation and innovation in accounting practices to navigate evolving business environments successfully. Moreover, technological advancements, globalization, and regulatory reforms significantly impact accounting practices and organizational dynamics, presenting both opportunities and challenges.

Relationship Between Corporate Capital Structure and Company Value Based on the CAPM and APT model and the WACC analysis

The core of financial management and investment activities is to maximize the wealth of the company and shareholders. Company value maximization is inseparable from shareholder value maximization. Due to the fact that the structure of company's capital would influence the level of profit return and the circumstance of cash flow, the management for financial framework is a significant connection between the economic situation of the corporation, by which it can benefit the value. The author briefly analyzed the CAPM since it is not an accurate model, which has unrealistic assumptions and the disadvantages of unrest, by using the APT model to replace the CAPM model to study the arbitrage pricing model and its relationship with the capital asset pricing model (CAPM). From the analysis of these models and the introduction of four capital structure theories, the connection between corporation capital structure and corporate value is further studied.

Design and Analysis of a Low-profile Microstrip Antenna for 5G Applications using AI-based PSO Approach

Microstrip antennas are high gain aerials for low-profile wireless applications working with frequencies over 100 MHz. This paper presents a study and design of a low cost slotted-type microstrip patch antenna that can be used in 5G millimeter wave applications. This research focuses on the effect of ground slots and patch slots which, in turn, affect different antenna parameters, such as return loss, VSWR, gain, radiation pattern, and axial ratio. The working frequency range varies from 24 to 28 GHz, thus falling within 5G specifications. A subset of artificial intelligence (AI) known as particle swarm optimization (PSO) is used to approximatively solve issues involving maximization and minimization of numerical values, being highly challenging or even impossible to solve in a precise manner. Here, we have designed and analyzed a low-profile printed microstrip antenna for 5G applications using the AI-based PSO approach. The novelty of the research is mainly in the design approach, compactness of size and antenna applicability. The antenna was simulated with the use of HFSS simulation software.

Effect of Environmental Disclosure on Shareholders’ Value Maximization: Evidence from Non-Financial firms in Nigeria

This study examined the effect of environmental disclosure on shareholders’ value maximization. The population of the study is all quoted non financial firms listed in Nigerian Stock Exchange. Sample of 60 companies from different sectors were used for the period of ten years spanning from 2011 to 2020. The study employed ex-post facto and cross sectional research design. The secondary sources of data were collected from annual reports and account of the selected non financial firms quoted in Nigeria stock exchange and three (3) specific objectives and hypotheses were tested and analyzed. The panel data were subjected to preliminary data tests such as descriptive analysis, correlation analysis and Hausman effects tests for the period of ten years. Multiple panel least regression analysis was employed via E-Views 10.Using a sample of 600 firm-year observations, the result of the tested hypotheses revealed that employee health and safety disclosure, and environmental remediation disclosure have positive but insignificant effect on shareholders’ value maximization while environmental waste management disclosure has positive and significant effect on shareholders’ value maximization which was statistically significant at 5% level of significance. The study recommends among others, that managers of non-financial firms should pay more attention to environmental waste management disclosure in their host communities to boost their performance and hence add value to their shareholders’ wealth creation. Moreover, due attention should be paid to environmental remediation disclosure by non financial firms in Nigeria since such disclosure influence strategic decision such as shareholders’ value maximization.

Helping Finance Students Think About the Shareholder Value Maximization Objective

One of the most contentious debates in the field of financial management involves the relative merits of a “shareholder”versus a “stakeholder” focus. While there are often-overlooked common elements in the “shareholder” and “stakeholder”arguments, clearly there are sharp differences between the two as well. Business school professors have the often-difficult taskof describing these differences for their students. This paper describes possible approaches to this issue, both at a surface levelfor an introductory finance course, and in a more applied manner for an advanced course.
 The author proposes an approach of enlightened self-interest, in which corporate management observes its fiduciaryresponsibility to shareholders by pursuing long-term shareholder value maximization, and at the same time realizes that thispursuit is likely to be fruitless if other constituencies are neglected. However, it is hoped that the teaching suggestions offered inthis paper will be helpful, both to those who agree with this approach, and to those who hold a different view.

Corporate Governance Welfarism

Abstract Corporate governance is on the verge of entering a new stage. After the managerialism that dominated the view of the corporation into the 1970s and the shareholderism that supplanted it, we are witnessing the emergence of a new paradigm: corporate governance welfarism. Welfarism rejects the faith that market forces will promote general welfare and lacks confidence in the government’s ability to set proper boundary constraints. By looking to corporations to internalize externalities directly, welfarism thus offers an alternative way to deal with social problems that the political system has failed to address. Welfarism comes in three strands—portfolio welfarism, shareholder welfarism, and direct social welfarism—two of which are consistent with shareholder primacy. The important distinction between welfarism and shareholderism, rather, is that welfarism, by embracing goals that are much broader than shareholder value as a means to promote overall welfare, reflects a departure from the classical liberal economic theory that underpins shareholderism. Welfarism, in turn, departs from managerialism in looking beyond the single firm, in relying on shareholder and stakeholder pressure rather than on managerial discretion to balance firm value maximization and broader objectives, and in embracing a wider set of potential stakeholders. Welfarism is on the rise ideologically. While it is unclear how much welfarism has already affected operations at individual firms, the underlying drivers of welfarism are likely to remain or grow. There are, therefore, good reasons to believe that the push towards welfarism will take hold, grow, and, over time, generate a welfarist turn in corporate governance. Welfarism, however, is subject to two inherent limitations. First, welfarism has its greatest traction for publicly traded companies with dispersed shareholders. By contrast, for companies with a single shareholder, a controlling shareholder, or a small group of shareholders, the welfarist prescriptions will have only a limited impact. Second, the very lack of consensus that impedes political solutions reemerges under and constrains welfarism by generating disagreements among shareholders, impugning its legitimacy, and imposing political barriers to its implementation.

Firm performance & effective mitigation of adverse business scenarios

An important question for firm management and markets is whether superior capabilities to mitigate the impact of adverse business scenarios lead to higher firm valuation and performance. We address this question by identifying empirical hypotheses from a new channel of the shareholder value maximization theory of risk management and evaluate them by using a new broadly applicable methodology based on the insight that effective risk management practices (e.g., financial, operational, strategic hedging) and other “unclassified” activities should result in a “hedging profile” with a lesser frequency of “bad” business outcomes relative to “good” outcomes. We measure the hedging profile of 5105 firms across 53 industries from quarterly earnings-based return on assets reported in Compustat, and relate it to firm performance using panel regressions while controlling for critical firm characteristics including median earnings and fixed effects for firm, industry, and year. The estimation reveals a strong positive effect of the hedging profile on Tobin's Q, excess returns, and return on assets (with R-squares above 74%). The study's empirical and theoretical results show that firms that exhibit greater capability to mitigate downside business risk experience higher valuations consistent with a new mechanism for shareholder value maximization theory of hedging based on skewness in firm earnings-based returns.