Firm Position Research Articles

The Impact of M&As on the Competitive Positioning of European Energy Firms and Market Power Concentration on EU National Energy Markets

By studying M&A deals completed by European energy and power companies between 2002 and 2021, the paper inquires into the impact of corporate consolidation on the competitive positioning of individual energy firms and the concentration of market power on the national energy markets in the EU countries. Our evidence suggests that the European energy market may be moving towards a greater concentration of market power as market leaders are shown to primarily acquire their peers from national markets, while outsiders are more likely to diversify into non-energy sectors, which may further endanger their competitive positioning in the future. We also find that M&As allow energy and power companies to substantially increase their market share within national markets. The said impact is stronger in case of cross-border deals, including those within and outside of the EU. At the same time, only cross-border deals are associated with sufficiently strong revenue growth to advance firms’ relative positioning within national markets. The relative positioning of firms in the EU market remains unaffected by M&A activities, which may be indicative of extreme rigidity and segmentation of the EU market. While at the country level, M&As are found to contribute to a reduction in market concentration measured by a number of indicators, this negative link is documented to be entirely driven by non-core acquisitions involving targets from non-energy industries.

Foreign exchange exposure and analysts’ earnings forecasts

This study examines how movements in a firm’s exposure to foreign exchange (forex) rates affect the properties of analysts’ earnings forecasts. Our results suggest that analysts’ forecast errors and dispersion increase with an increase in forex exposure within firms. These findings are robust to a wide range of robustness tests, including a quasi-experimental setting based on the sudden unpegging of the U.S. Dollar against the Chinese Yuan. Additional tests reveal that analysts spend more effort forecasting when firms experience an increase in forex exposure. Consistent with an increase in uncertainty of firm outcomes representing the primary channel through which forex exposure affects analysts’ forecasts, we find that the effect of forex exposure is heightened in the presence of greater volatility in the U.S. Dollar. However, we also find that more readable annual reports and higher media coverage can help improve the quality of analysts’ forecast properties for firms with increasing forex exposure. We also present evidence of some benefits analysts can realize from coverage of high forex exposure firms through generating greater stock trading and securing positions in more prestigious brokerage firms.

Specialist CEOs versus Generalist CEOs: CEO Type and Firm Performance Following Initial Public Offerings on the Chinese Market

This study focuses on the effect of Chief Executive Officer (CEO)-level characteristics on a firm’s survival following initial public offerings (IPOs). Specifically, it looks at the impact of generalist CEOs between July 2009 and July 2021 on the likelihood of firm failure and IPO survival. This study uses principal component analysis to create a generalist skills index based on CEO work experience, including the number of roles that the CEO has held, the number of firms in which the CEO has worked, the number of industries in which the CEO has worked, whether the CEO has taken a CEO position in other firms, whether the CEO has worked in a conglomerate, and whether the CEO holds a professional title. The results of the Cox proportional hazards model reveal that companies with a generalist CEO have a higher probability of failing than companies with a specialist CEO, which suggests that generalist CEOs pursue higher salaries and higher reputations through switching between different industries and firms. Performance-related compensation and CEO turnover in companies with generalist CEOs explain the higher probability of firm failure. The main results still hold after controlling for CEO power, board and firm characteristics, and testing using the logit model. This research on the connection between generalist CEOs and a firm’s failure risk also offers insight into a company's CEO hiring choice and job market activities.

Issue of allocation of overheads - the practice of the Hungarian hotel industry

As a result of the changing business environment, decision-makers need more and more information. For businesses to successfully compete in our globalized world, an in-depth analysis of their business processes and product structure is the basis for their decisions. Competition to meet consumer expectations forces managers to constantly monitor the cost of their products and services, changes in the cost structure, and review their pricing policies. The value of available information about the company's internal processes, products, and service characteristics has increased among the company's external and internal stakeholders as well. After the First World War, there was a need for a uniform accounting system to be put together by the participants of the sector with specific characteristics. As a result of these efforts, the Uniform System of Accounts for the Lodging Industry (USALI) was created, which serves to satisfy the information needs of managers involved in the hospitality industry. The document builds on the content framework of cost accounting, but at the same time, it does not take a firm position on the question of the distribution of overheads. This study explores the issue and practice of the distribution of overheads among participants in the Hungarian hotel industry. The basic population of the primary research was represented by hotels with a legal relationship with members of the Hungarian Hotel and Restaurant Association (HHRA). Data collection was carried out using a questionnaire, ended in December 2016 with the participation of 74 respondents. At the time of the closing of the questionnaire survey, the number of hotel units with HHRA membership was 398. The willingness to answer was, therefore, 18.59% among the members. Consequently, the proportion of the sample population is 7.75% compared to 955 operating hotels. To refresh the conclusions from the survey, a repeated questionnaire was carried out in May 2022 within the focus group formed by the management of AHHR (president, general secretary) and the six prominent regional leaders. A total of 6 people participated in the repeated survey through written or oral responses. The results of empirical research with a sample show that the participants of the Hungarian hotel industry mainly rely on the traditional cost allocation methods to formulate the practice of dividing overheads, but at the same time, they seem to be in the direction of adapting modern procedures efforts made.

Portraits of Women Founders and Leaders in the North of Portugal: Do Academic Qualifications Matter in the Cultural Patterns of Family Firms?

Abstract This paper aims to discuss continuities and ruptures carried out by women in leadership in family firms (FFs). Despite female underrepresentation on top positions in firms broadly speaking, our findings gathered from the project “Roadmap for Portuguese Family Businesses” (NORTE-02-0853-FEDER-000018) reveal an ongoing transformation regarding intergenerational management succession in family firms. In fact, while it is recognizable that micro, meso and macro-structural gender barriers remain, family businesses have been the scene of intergenerational changes with a notable presence of women in management and corporate responsibility careers. To what extent have female founders and successors expressed significant changes in the cultural patterns of family businesses, especially when they have high academic qualifications and professional experience? To answer this research question, nine in-depth, semi-structured interviews were conducted with business women/ managers of family businesses regarding their career experiences compared with those of male counterparts. This paper finds that the “masculinist” perspective is shifting due to the crucial role of the qualifications and professional competence of family firms’ female founders and leaders. Likewise, the increase in the academic level of women in today's society is one of the factors that is at the root of the emergence of shifting in the cultural patterns of family businesses with impact in the intergenerational succession. (JEL: L2)

Portraits of Women Founders and Leaders in the North of Portugal: Do Academic Qualifications Matter in the Cultural Patterns of Family Firms?

Abstract This paper aims to discuss continuities and ruptures carried out by women in leadership in family firms (FFs). Despite female underrepresentation on top positions in firms broadly speaking, our findings gathered from the project “Roadmap for Portuguese Family Businesses” (NORTE-02-0853-FEDER-000018) reveal an ongoing transformation regarding intergenerational management succession in family firms. In fact, while it is recognizable that micro, meso and macro-structural gender barriers remain, family businesses have been the scene of intergenerational changes with a notable presence of women in management and corporate responsibility careers. To what extent have female founders and successors expressed significant changes in the cultural patterns of family businesses, especially when they have high academic qualifications and professional experience? To answer this research question, nine in-depth, semi-structured interviews were conducted with business women/ managers of family businesses regarding their career experiences compared with those of male counterparts. This paper finds that the “masculinist” perspective is shifting due to the crucial role of the qualifications and professional competence of family firms’ female founders and leaders. Likewise, the increase in the academic level of women in today's society is one of the factors that is at the root of the emergence of shifting in the cultural patterns of family businesses with impact in the intergenerational succession. (JEL: L2)

ФОРМИРОВАНИЕ ТВОРЧЕСКОЙ ЛИЧНОСТИ МОЛОДОГО ПОКОЛЕНИЯ В СОВРЕМЕННОЙ ХУДОЖЕСТВЕННО-ОБРАЗОВАТЕЛЬНОЙ СРЕДЕ ВУЗА

The purpose of the study is to study the phenomenon of art in the formation of a creatively developed personality of the younger generation in the system of art education of higher education in the conditions of an information digital society. The methodological basis of the. The process of transformation of the educational space in the conditions of an information digital society involves the use of a systemic transdisciplinary approach based on the presence of a cultural code as an invariant in all disciplines and aspects studied, value-orientation, personal, communicative-activity, dialectical approaches. The research is based on the concepts of humanistic, personality-oriented education, individual development of students for the formation of a developing, creative personality of students in an artistic environment.   Research results. In general, the society and specialists of the higher school were given the state goal of becoming a personality of the younger generation − an educated, creative personality, oriented in information flows, with a firm civic position, brought up on cultural traditions[1]. In the context of the formation of the information society and the developing system of digital education, the problem of the formation of creative abilities of students in the conditions of humanistic development of this process arises. The digital environment contains risks and problems. At the same time, the use of new technologies creates additional prospects: informational, technological, related to saving time on the creative process. Which also contributes to the formation of a student's creative personality in new conditions. The digital environment participating in the educational space contains a certain base and capabilities that are already being successfully used at the university to optimize learning within the framework of forms of education: full-time, distance and additional. The system of training sessions should be organized taking into account the use of digital technologies in their maximum application for artistic specialties. Prospects of the study. The content of the scientific and methodological base and the variety of visual information provides a full-fledged learning process and creative realization of the personal potential of the student of the art direction and designer. In our opinion, the use of project activities in several variants is of great importance in the creative development of a student: author's, group and accompanied by university partners. This creates additional motivation for learning the cultural values of society, familiarity with new opportunities in creativity and a new creative environment.     [1] National project "Education" / State administration – URL: https://strategy24.ru/rf/education/pro jects/natsionalnyy-proekt-obrazovanie (date of application: 02.08.2022).

Penerapan Etika Pemasaran Bisnis Syariah Dalam Melaksanakan Bisnis Online Shop yang Sesuai dengan Syariat Islam

Indonesia is a country where the majority of the people are Muslims. As the country with largest economy in Southeast Asia and also one of the emerging market economies in the world, businessman should balance it with knowledge of marketing ethics in order to usher in newer and better economic era. These days increasingly fierce business competition and lack of knowledge about marketing ethics can be a deviation in the conduct of the business. In this current era what community wants and needs continue to increase, making businessman carry out all marketing strategies that often violate established marketing norms and ethics. Doing online business can bring many advantages and conveniences for the community, but if these conveniences and advantages are not accompanied by a firm attitude and law, there will be deception, tyranny and cheating each other. Therefore in Islam there is a goal to protect mankind from all injustice. Because when we enter the world of online business, there are many challenges, not just about getting profits but also about maintaining how to do business by always sticking to the principles of Islamic law.
 Keywords: Marketing, Business, Economy

Negation of Sanctions: The Personal Effect of Political Contributions

AbstractWe show that political contributions are associated with reduced civil and criminal sanctions for fraudulent executives. These managers benefit more from contributions if their firm also gained from the fraud, if they occupy top positions in firms with weak boards, or if they contribute to powerful politicians. Political contributions reduce budgetary resources for government enforcers and lengthen the Securities and Exchange Commission’s case time-to-resolution. They also facilitate penalty transfer from fraudulent managers to the firm, resulting in their entrenchment and long-term destruction of shareholder value. Our findings highlight an agency cost of political contributions and a mechanism undermining the disciplining effect of regulations.

The relationship between cyberbullying victimization and cyberbullying perpetration: The role of social responsibility.

Previous studies have found some influencing factors of cyberbullying. However, little is known about how cyberbullying victimization and social responsibility influence college students' cyberbullying perpetration or about the mediating and moderating mechanisms underlying these relationships. Social responsibility involves not only individuals' deep cognition and special emotional identification of social responsibility but also their firm attitude and responsible actions. The purpose of this study is to investigate the relationship between college students' cyberbullying victimization and cyberbullying perpetration and whether this relationship is moderated by social responsibility. The study sample consisted of 1,016 Chinese college students (425 males) ranging in age from 19 to 25 (mean age 22). All participants completed questionnaires on cyberbullying victimization, cyberbullying perpetration and social responsibility. The results indicated that cyberbullying victimization is positively related to cyberbullying perpetration and that this relationship is mediated by social responsibility. This study highlights the harmful impact of cyberbullying victimization on college students, more notably, the underlying mechanisms between cyberbullying victimization and cyberbullying perpetration are explored, revealing that social responsibility can reduce the promoting effect of cyberbullying victimization on cyberbullying perpetration.

Impact of eco-embeddedness and strategic flexibility on innovation performance of non-core firms: The perspective of ecological legitimacy

For non-core firms, the key to achieving innovation performance and building sustainable competitive advantage is accessing innovation resources and strengthening capabilities through eco-embeddedness. Based on innovation ecosystem theory, this study empirically explores the impact of innovation eco-embeddedness on the innovation performance of non-core firms and the mechanisms of strategic flexibility and ecological legitimacy among them. Using questionnaire data from 354 ecological non-core firms in China, the research results demonstrate that both eco-embeddedness position and eco-embeddedness relation have significant positive effects on the innovation performance of non-core enterprises. Furthermore, strategic flexibility partially mediates the relationship among the eco-embeddedness position, eco-embeddedness relation, and innovation performance of non-core firms. Moreover, ecological legitimacy plays a positive moderating role in the eco-embeddedness position and eco-embeddedness relation, promoting the strategic flexibility of non-core companies. This study contributes a non-core perspective to ecosystem research by revealing the complex process mechanism of innovation performance enhancement in ecological non-core firms and provides a theoretical basis and practical guidance for how Chinese firms can leverage innovation eco-embeddedness to promote innovation and realize growth.

Bad Realism

Bad Realism

민주화 이후 ‘민주주의와 성장’에 대한 언론의 담론지형 연구

This article will analyze the shape and the discursive terrain formed on the ‘relationship between democracy and growth’ in the media field after democratization in Korea. In addition, it will be to compare and verify the path dependence of the discourse on growth paradigm stipulated in each media company between the progressive and conservative governments. The results are as follows. First, JoongAng Ilbo's discourse on 'democracy and growth' during the progressive government is the epitome of neoliberalism, which puts the value of corporate activities first and ordered a small government that minimizes regulation and interference. Also, it was found that the Hankyoreh's discourse on 'democracy and growth' during this period mainly criticized polarization and neoliberalism. Second, it was confirmed that the JoongAng Ilbo’s discourse on ‘democracy and growth’ during the Lee Myung-bak and Park Geun-hye regime implemented a perpetuation strategy that glorified and rationalized the dictatorship. In contrast, the Hankyoreh newspaper's discourse on 'democracy and growth' during this period directly contradicted the logic of Park Chung-hee's re-evaluation, which had appeared in the conservative media and civil society since the previous period. In conclusion, the positioning of the two newspapers, showing the opposite practice about growth paradigm discourse, which occupies a firm dominant position in our society, explicitly reveals the spatiality as a public domain where historical reality and ideological value orientation collide.

Membaca Konflik: Problematika dan Refleksi atas Kehidupan Beragama Masyarakat Aceh Singkil

Aceh is a region in Indonesia that implements a special autonomy policy based on Islamic law. In that special autonomy, one of the things that are regulated is the freedom of religion that has been enshrined in the qanun. Qanun is a local regulation that regulates the government and lives of people in Aceh Province. In the qanun, the religious freedom of the people of Aceh has been guaranteed and protected. However, there are some conflicts between religious groups that have the potential to cause disharmony. One such region is Singkil. This article aims to describe the problems and reflections on the religious life of the people of Aceh Singkil. The research method used in this study is qualitative with a literary study approach. The results showed that there are factors that encourage the emergence of conflicts, namely the lack of tolerance and cynicism toward a difference in society. Therefore, it is necessary to realize inclusive community attitudes and strengthen the literacy of moderation of religious life through various humanist approaches. In addition, a firm attitude of the government is needed in setting a fair policy that accommodates all groups.

Local ICT Firms’ Perspective on Planning Cooperation With City Government for Innovations

Local ICT firms can play an important role in creation of innovations which could support a smart city concept realization in a city. The topic of the paper is to present details of local ICT firms' perspective on cooperation with city government for production of innovations important in a smart city concept realization. There is a research gap in up-to-date studies concerning such a topic. Motivation of the author in preparing the paper was to make a step forward to fill this research gap through realizing the article’s main objective which was to answer the following question: ‘What is the perspective of local ICT firms and what are their expectations in the mentioned cooperation to result in production of innovations useful for the city?’ An additional question was ‘What is the attitude of local ICT firms towards inviting big international leaders in smart city projects for cooperation in the ICT industry?’ Critical research of the paper is first of all of empirical and qualitative nature. A review of the current international literature was of preliminary nature. The review was carried out in respect of a smart sustainable city, ICT innovations and public management, ICT innovations and their sustainability. The study concentrated on the case of the Polish city of Częstochowa. Semi-structured interviews were carried out with managers of six ICT local firms or units located in Częstochowa. The findings of the paper include a set of expectations of local ICT firms useful for city governments in planning cooperation with ICT firms for innovations. In analyzing the perspective of local ICT firms an important element was their attitude towards inviting big international leaders in the ICT industry in smart city for cooperation by the city government. The boundaries of the paper of the above nature limited its scope to the perspective of local ICT firms leaving outside e.g. the analysis of the city government perspective. In the future, the studies should be developed on: creating a comprehensive model of strategic planning of the cooperation between city government and ICT firms for Smart City sustainable innovations.

Does environmental regulation enhance firm's position in dual value chain? An analysis based on environmental information disclosure

Climbing the dual value chain (DVC) of parallel development in global and domestic value chains is an important channel to get rid of bottom solidification. Based on the data of international input-output tables after embedding provinces and decomposing value-added flow during 2003–2012, this article provides measurement for downstream or upstream embedding and division position indexes of A-listed firms. Then, theoretical framework of environmental regulation affecting DVC embeddedness is constructed, and the Environmental Information Disclosure (EID) trial implemented in 2008 is regarded as a quasi-natural experiment. The results show that EID enhances corporate division position in DVC by weakening downstream embeddedness and increasing upstream embeddedness, domestic firms are gradually transforming from low-end manufacturers to high-end designers. The effect works with a year lag in downstream embeddedness and lags 2 years in others. Heterogeneity analysis confirms that enhancement of division position is more sensitive in resource-rich cities with high marketization or labor-intensive firms and manufacturing or service sectors. Besides, we find that environmental regulation such as EID induces technological innovation for process upgrade, product improvement for quality upgrade and allocation optimization for function upgrade to transform the role and degree of firms embedding DVC.

Leader humility and inter-firm collaboration: the moderating role of firm status and environmental uncertainty

PurposeThe purpose of this paper is to investigate how CEO humility influences inter-firm collaboration (IFC) and the moderating roles of firm status (a firm's relative position in a social order) and environmental uncertainty on such an effect.Design/methodology/approachAs the firms were nested in township clusters, the theoretical model was tested using hierarchical linear modeling to analyze a multisource and multilevel onsite survey from 254 firms in Chinese township clusters. CEO humility was measured using an 18-item scale reported by both the human resource managers and the financial managers. Besides using CEO self-reported ratings as the measurement of IFC, this study employed additional measurements to further validate the findings, including the IFC reported by the administrative managers and two alternative measures for IFC reported by both CEO and the administrative managers of each firm.FindingsThis study found that CEO humility is positively related to IFC (H1), and that this association is marginally more salient when firms have high status (H2) but less salient when firms face a high level of environmental uncertainty (H3).Practical implicationsFindings suggest that firms with humble CEOs may benefit from better inter-firm collaborative relationships, especially when firms have high status (i.e. possess many well-known trademarks), but not when they are in an uncertain environment.Originality/valuePrevious humility studies focused on the influence of leader humility on individual and team outcomes, but little attention has been paid to organizational outcomes. This research extends the implications of leader humility to inter-firm relationships. Moreover, this paper explores the boundary conditions of the influence of CEO humility, thus advancing the contextual understanding of leader humility.

Exemplar Similarity: A Tale of Two Countervailing Mechanisms

In this study, we explore the relationship between firm positioning and performance in dual benchmark settings where audiences can evaluate firms against two distinct reference points: category prototypes and exemplars. We argue that firms benefit from exemplar similarity—positioning near category exemplars—through association with an outstanding firm. However, such benefit comes with the cost of comparison against an exceptionally high-performing firm. We also argue that the impact of exemplar similarity on a firm’s market value depends on firm typicality, i.e., its degree of similarity to category prototypes. An analysis of publicly listed U.S. firms from 1997 to 2018 provides strong support for our predictions. Our findings suggest that firms need to balance between the association benefits and comparison costs of exemplar similarity.

Treble Innovation Firms: Implications for Open Innovation Strategies and Profitability

Manufacturing firms can develop three forms of technological innovation: process, product, and service. While previous research has primarily analyzed service innovation in isolation, this study compares the profit position of firms adopting all technological innovations simultaneously (treble innovation firms) to firms that “only” adopt process and product innovation (dual innovation firms). Drawing on the premises of the resource-based view (RBV), we argue that treble innovation firms can build on innovation cross-fertilization to develop valuable, rare, and inimitable resources that translate into higher profitability. Consistently with the RBV, we also expect treble innovation firms to benefit more from open innovation because they can save considerably more in internal R&D investment while maintaining differentiated supply. We test our hypotheses on a random and representative survey of 423 Spanish manufacturing firms, of which 62% are dual innovators and 22% treble innovators. The results support our hypotheses. Based on propensity score matching and doubly robust estimations, we find causal evidence supporting the conclusion that treble innovation firms are more profitable than dual innovation firms. Our results also confirm that open innovation positively moderates the relationship between treble innovation firms and performance, but this moderation is statistically significant only when internal R&D investment is low.

Firm LGBT-Friendliness and Investor Reaction to Pulse Nightclub Shooting

Firm LGBT-friendliness reflects the attitudes of firms toward their LGBT employees, consumers, and investors. While existing literature has largely documented the positive audience reactions to that such as those from investors (Shan, Fu, & Zheng, 2017) and employees (Hossain, Atif, Ahmed, & Mia, 2020), our study argues that firm LGBT-friendliness can be both celebrity and infamy. Negative audience reactions exist and are significant during LGBT-related exogenous social events. Specifically, we choose the Pulse Nightclub Shooting as an example. The event study results show that investor reactions to firms with high-level and low-level LGBT-friendliness are more positive than reactions to firms with medium-level LGBT-friendliness in the event. The moderating effects of firm size and Twitter announcement are examined. The findings cast new light on understanding firm practices based on social values and social events.