Value Drivers Research Articles

Effective Property Management in Increasingly Urbanized Cities

Properties are important to how people live, work and recreate, the increasing pace of urbanization has therefore further necessitated effective management of properties in the midst of limited resources and the need to optimize returns. This current study has focused on the effectiveness of property management in urbanized Nigerian cities with a case study of Ibadan. The survey approach was adopted. Data was drawn from professionals practicing in the city with frequency tables and weighted mean score used to present data findings. Findings revealed that; the inherent facilities and services within individual properties and the neighborhood are key drivers of rental values. Further results showed that urbanization has increased the rental value of properties in the market, increased market activities and clients are now more sophisticated in their needs. The challenges identified by the study include; difficulty in tenant section, poor sanitation and unsanitary environment, subletting and conversion of properties as being key challenges on property management foisted by urbanization. The study has been able to map a nexus between property management and urbanization and the need to adopt a proactive approach towards property management. The study concluded by advocating that property managers should enhance their skills by embarking on capacity development programs through training to better prepare themselves and meet client expectations.

The impacts of openness and global value chains on the performance of Turkish sectors

Regarding the dynamics of the contemporary world economy, success in a domestic economy cannot be achieved without effective integration policies for goods/services and capital flows. To evaluate this proposition, we utilize many openness measures for two periods, 1995-2009 and 2000-2014, for the Turkish sectors. The empirical findings suggest that domestic value added in export is a major driver of sectoral value added. While import and backward linkages appear to be stimulators for total factor productivity (TFP) in manufacturing industries, they have no significant impact on sectoral value added. Trade barriers in the form of tariff rates, which primarily stemmed from manufacturing industries, have a considerable detrimental impact on Turkish sectoral performance. Higher tariffs not only make it more difficult for Turkish businesses to enter overseas markets but also raise the costs for importers. The initial impact of this protection is inexorably exacerbated by global value chains (GVCs), with negative consequences felt in nearly every economy. Given the increased backward GVC involvement of some manufacturing industries, such as machinery and equipment, Turkish sectors should be prepared for external shocks by diversifying importer origins, stocking up, and boosting transparency in their operations. Overall, designing and implementing trade policies to effectively integrate into the GVCs is an important task for Turkey.

Cheating in the evaluation. An expedient to estimate the impact of intangibles on the enterprise value of the high-growth start-ups

This study investigates the effect of investments in intangible fixed assets and human capital on the Enterprise Value (EV) of Italian high-growth startups (HGSs). To test our hypotheses, we conducted several Ordinary Least Squares (OLS) regression analyses on a dataset comprising 782 HGSs. The EV was esti-mates using the Discounted Cash Flow (DCF) method. Our findings reveal a posi-tive and statistically significant relationship between investments in intangible as-sets and EV. However, investments in human capital and highly skilled workers show a negatively relationship with EV. Lastly, a positive and statistically signifi-cant relationship between value-added per employees and the EV of HGSs has been identified. This study offers valuable insight into the process through which new firms gener-ate value. By strategically investing in intangible assets and human capital, startups not only enhance their probability of survival but also improve their growth potential. This allows these companies to overcome the challenges of the early stage and embark on a sustainable growth process. To spotlight the unique value drivers of these companies, unlike prior studies, we manually estimate the EV. We have employed the DCF method by playing the cards face up: we used the actual cash flows realized by the HGSs during the study period instead of rely-ing on forecasts. We have therefore "cheated" to measure the value created by the HGSs. This research can be considered a pioneering study that significantly con-tributes to the ongoing debate on the value creation process in fast growing startups.

INTERCONNECTION OF DIVERSIFICATION AND VALUE BASED MANAGEMENT IN SMALL WHOLESALE BUSINESS

In the paper, we found out types of diversification suitable for small wholesale business in Ukraine in wartime. The most suitable types of diversification are: service, product, financial and geographic diversification. Also, horizontal, vertical, conglomerate and concentric types of diversification can be applied, taking into account their benefits and potential pitfalls defined in this paper.We also considered diversification as a value-creating strategy, outlined its main benefits and pitfalls. It offers several benefits, such as risk reduction by spreading investments across industries, thus reducing dependence on one market. It allows for synergies in related diversification through shared resources and expertise, enhancing efficiency and profitability. Additionally, diversification enables portfolio optimization, balancing performance across various sectors. However, it entails challenges like integration difficulties, potential overextension, and the risk of not realizing expected synergies. Effective diversification requires a clear strategic rationale, meticulous execution, and continuous monitoring, with willingness to divest from underperforming areas to sustain value creation.We suggested using Value Chain Analysis for choosing the most effective strategy of diversification for small wholesale business and developed Value Chain of a Small Wholesale Business (particularly, with heating equipment wholesale as a main type of activity).By understanding how each activity affects customer value, businesses can tailor their strategies to enhance customer satisfaction and loyalty. This might involve improving product quality, customer service, or any other activity directly impacting the customer experience.Value Chain Analysis is a strategic lens through which a business can view its activities and make informed decisions about where to focus its resources to maximize value creation.The next step of choosing the most effective value-creating strategy is building a Value Drivers Tree for each strategy considered and choosing the one creating the highest value of business.

Value co‐creation in cultural heritage information practices: Literature review and future agenda: An Annual Review of Information Science and Technology (ARIST) paper

AbstractValue co‐creation as a research topic has been a critical proposition of interest to a wide range of disciplines. In recent years, the field of cultural heritage has also developed a range of information practices to promote different forms of value co‐creation. While the body of literature has begun to accumulate, we still lack a comprehensive understanding of conceptual foundations and how value co‐creation is implemented in cultural heritage information practices. This paper conducted a hermeneutic literature review to understand and conceptualize the core aspects of value co‐creation in various cultural heritage information works. In particular, this paper provides a research mapping of the genres of co‐creation in cultural heritage information practices, the actors, and the roles played by the stakeholders. Further, this review provides an overview of the dominant value co‐creation models in the cultural heritage field. It distills the drivers of value co‐creation and the core value consequences that arise from a process perspective. Finally, this paper puts forward a thematic, theoretical, and methodological agenda for future work based on these findings. The review contributes to the literature by proposing an integrated conceptual framework that summarizes the core elements of value co‐creation in cultural heritage information practices. The framework also serves as a call for action, providing a general understanding of the conceptual foundation for future research.

Interconnecting financial and sustainability information: does the multi-capital approach explain adherence to the IIRC framework?

ABSTRACT Integrated Reporting (IR) is a major innovation encompassing both financial and sustainability information. The multi-capital approach that characterises the International Integrated Reporting Council (IIRC) framework aligns with resource dependency theory. On this basis, we design a disclosure index to assess adherence to the IIRC framework in Down Jones Sustainability Europe Index (DJSEI) company reports, and examine whether the value drivers embedded in the capitals explain it. We posit that integrated corporate thinking drives business practices and is reflected in the communication strategy through IR. Results confirm a high degree of use of the framework. Regarding the multivariate analysis, natural capital has a significant and positive association with the level of adherence; but human-related capital is negatively associated, mainly due to intellectual capital. Firms that state following the IIRC guidelines adhere more to the framework. This highlights the need for framework clarification to prevent IR misuse as an impression management tool.

The effect of industrial robot adoption on firm value: Evidence from China

This study examines the effect of automated production technology on firm value. Examining evidence from listed Chinese manufacturing companies from 2012 to 2019, our findings show that industrial robot adoption increases firm value, and the effect is more pronounced in labor-intensive industries, private companies, and firms with executive shareholding. Possible mechanisms include operating performance improvement, effective tax rate reduction, net profit margin increase, and agency cost mitigation. This study contributes to a comprehensive evaluation of the overall impact of automation on firms and deepens the understanding of the productivity innovation drivers of firm value.

Based On The Value Chain Analysis Of China's Private Vocational Universities, Proposed For The Construction And Implementation Of The Business-Finance Integration Information Platform Framework

China's higher education has entered the stage of popularization, the competition tends to encourage, the use of information technology means to strengthen the integration of higher education business and finance, and play the role of finance to support business in a timely and effective way, is getting the attention of universities. In view of the situation of self-financing, lack of superior supervision in internal control, lack of information integration in various business systems and need to improve personnel digital literacy, private vocational colleges need to concentrate limited funds and resources on the key value drivers of the value chain, and build an information platform framework that integrates industry and finance. Suggestions on optimizing organizational structure, perfecting financial management system, strengthening communication between finance and business departments, and strengthening asset management and supervision are put forward to provide reference for the research on the path of Business-Finance Integration in China's private vocational universities.

Ecophysiographic study as a value driver in terms of environmental protection requirements in spatial planning at the municipal level

This article contains analisis on legal character of ecophisiografic descriptions and their meaning for the process of creating planning and development local acts as well as on the values that by these documents in this process are obtained. The aim of the article is to describe the legal provisions creating this institution as well as the position of the doctrine and jurisprudence on this field and after that – to assess whether existing law fulfills the aims which on the field of planning and development law ecophisiografic descriptions exercise and if not – what kind of amendments would be necessary.

People get ready! A new generation of Alzheimer's therapies may require new ways to deliver and pay for healthcare.

The development of disease-modifying therapies (DMTs) for Alzheimer's disease (AD) has progressed over the last decade, and the first-ever therapies with potential to slow the progression of disease are approved in the United States. AD DMTs could provide life-changing opportunities for people living with this disease, as well as for their caregivers. They could also ease some of the immense societal and economic burden of dementia. However, AD DMTs also come with major challenges due to the large unmet medical need, high prevalence of AD, new costs related to diagnosis, treatment and monitoring, and uncertainty in the therapies' actual clinical value. This perspective article discusses, from the broad perspective of various health systems and stakeholders, how we can overcome these challenges and improve society's readiness for AD DMTs. We propose that innovative payment models such as performance-based payments, in combination with learning healthcare systems, could be the way forward to enable timely patient access to treatments, improve accuracy of cost-effectiveness evaluations and overcome budgetary barriers. Other important considerations include the need for identification of key drivers of patient value, the relevance of different economic perspectives (i.e. healthcare vs. societal) and ethical questions in terms of treatment eligibility criteria.

Which factors can be used to persuade managers to start workplace physical activity programmes and what motivates employees to participate? A Hungarian study on goals, effects and motivations

PurposePhysical activity (PA) has been widely studied for its individual and societal benefits, but research on how organisations can effectively promote workplace physical activity (WPA) programmes is lacking. This article aims to examine the organisational-level benefits and value drivers of corporate PA programmes whilst also exploring the factors that motivate employees to participate in these programmes.Design/methodology/approachThe authors used the self-determination theory (SDT) and the Hungarian Sport Motivation Scale (H-SMS) – which was modified and validated from the original English SMS scale, which is one of the six most highly cited motivation questionnaires in sports – to assess employees' motivation towards sports. In conjunction, in-depth interviews with company representatives were conducted to create a mind map outlining the impacts and advantages of WPA programmes. The study involved interviews with 13 managers in Hungary and a survey completed by 728 employees.FindingsThe findings of the authors' study indicate that WPA programmes had positive effects on employee engagement, turnover reduction and absenteeism. However, the authors' results also revealed that employee motivation to participate in these programmes was primarily driven by external factors, such as identified and introjected regulators, indicating a low level of intrinsic motivation for sports in the workplace. It is important to classify employees based on their motivation and behaviour to design and promote effective PA programmes in the workplace and to increase participation rates.Originality/valueThe authors' findings indicate the importance of aligning WPA programme promotion with employee motivation. This can encourage organisations to initiate their programmes, address participation challenges and strive for higher engagement rates. Further research on employee motivation can support the development of more effective communication strategies for companies in this context.

Tail risks and private equity performance

We examine the drivers of private equity in response to the fully exogenous Covid-19 shock, employing listed private equity as a proxy for traditional non-listed private equity. This approach enables us to reliably measure firm characteristics and performance in real-time. Listed private equity firms, on average, underperformed significantly during the crisis, with a performance drop ranging from 9.2 % to 43.6 %, depending on the model used. However, there is substantial cross-sectional variation driven by unique firm-level attributes including access to capital, liquidity, transparency, and ownership structure. Listed private equity with better access to capital and higher transparency shows resilience during the crisis, while higher illiquidity and opacity exacerbate the negative effects. This study offers early evidence on Covid-19′s impact on private equity firms, highlighting value drivers and performance dynamics of this alternative asset class during a period of extreme tail risk.

Value creation and appropriation from the use of machine learning: a study of start-ups using fuzzy-set qualitative comparative analysis

This study focuses on how start-ups use machine learning technology to create and appropriate value. A firm’s use of machine learning can activate data network effects. These data network effects can then create perceived value for users. This study examines the interaction between the activation of data network effects by start-ups and the value that they are able to create and appropriate based on their business model. A neo-configurational approach built on fuzzy-set qualitative comparative analysis (fsQCA) explores how the design of a firm’s business model interacts with various aspects to explain value creation and appropriation using machine learning. The study uses a sample of 122 European start-ups created between 2019 and 2022. It explores the system of interactions between business model value drivers and value creation factors under the theory of data network effects. The findings show that start-ups primarily activate the efficiency and novelty elements of value creation and value capture.

Mapping the value for money of precision medicine: a systematic literature review and meta-analysis.

This study aimed to quantify heterogeneity in the value for money of precision medicine (PM) by application types across contexts and conditions and to quantify sources of heterogeneity to areas of particular promises or concerns as the field of PM moves forward. A systemic search was performed in Embase, Medline, EconLit, and CRD databases for studies published between 2011 and 2021 on cost-effectiveness analysis (CEA) of PM interventions. Based on a willingness-to-pay threshold of one-time GDP per capita of each study country, the net monetary benefit (NMB) of PM was pooled using random-effects meta-analyses. Sources of heterogeneity and study biases were examined using random-effects meta-regressions, jackknife sensitivity analysis, and the biases in economic studies checklist. Among the 275 unique CEAs of PM, publicly sponsored studies found neither genetic testing nor gene therapy cost-effective in general, which was contradictory to studies funded by commercial entities and early stage evaluations. Evidence of PM being cost-effective was concentrated in a genetic test for screening, diagnosis, or as companion diagnostics (pooled NMBs, $48,152, $8,869, $5,693, p < 0.001), in the form of multigene panel testing (pooled NMBs = $31,026, p < 0.001), which only applied to a few disease areas such as cancer and high-income countries. Incremental effectiveness was an essential value driver for varied genetic tests but not gene therapy. Precision medicine's value for money across application types and contexts was difficult to conclude from published studies, which might be subject to systematic bias. The conducting and reporting of CEA of PM should be locally based and standardized for meaningful comparisons.

Mayday! Mayday! The airlines stock returns are failing. Analysis of the impact of Russia–Ukraine war

PurposeThis paper investigates the short-term market impact of the beginning of the military conflict between Russia and Ukraine (February 24, 2022) on a set of airline stocks listed.Design/methodology/approachThis study uses an event study methodology, cross-section analyses and interaction effects to study the effect of the war on airline stock prices and firm-specific characteristics that explain the cumulative abnormal return.FindingsThe authors observe a negative and statistically significant stock price reaction at and around the beginning of the military conflict between Russia and Ukraine, for 74 listed airlines. These results are consistent with investment portfolio rebalancing and asset pricing perspective. Moreover, this study's results show a higher negative stock market reaction for airlines based in Europe. Empirical evidence suggests the existence of a “proximity penalty” for European companies. Finally, this study's results provide insights into which airline-specific characteristics emerge as value drivers. Larger, well-capitalized (high liquidity and low debt) and profitable airlines firms with less institutional ownership have superior stock market returns and show more able to handle with the losses resulting from the war.Originality/valueThis paper fills a gap in the literature about the impact of the Russia–Ukraine war on the airline industry.

Firm climate change risk and financial flexibility: Drivers of ESG performance and firm value

This study investigates how a firm's climate change risk (FCCR) and financial flexibility (FIFL) affect its value and environmental, social, and governance (ESG) performance. We use data from publicly listed US firms for 2012–2021. We employed four estimation methods: bootstrap quantile regression, feasible generalised least squares, a generalised method of moments, and fixed effects with Driscoll-Kraay standard errors. Our main findings indicate that climate change risk has a negative effect on firm value and a positive effect on ESG performance and that financial flexibility moderates these effects by reducing risk and enhancing value. These results are robust against alternative measures and estimation techniques. Our study provides novel insights into the influence of climate risk and financial flexibility on firm value and ESG performance. We also discuss the implications of our results for academics, practitioners, and policymakers.

Knowledge Creation and Business Process Re-Engineering Outcomes of Financial Services

Purpose - The researcher investigates the extent to which knowledge sharing moderates the relationship between knowledge creation and business process re-engineering (BPR) outcomes of financial services offered by financial institutions in Uganda. Design/Methodology - The study adopted cross-sectional survey design to collect data at one point in time using self-administered questionnaire to examine the relationship between knowledge creation and business processes. The study at first used statistical package for social scientists to establish clusters among the surveyed financial services and later a model was derived using R programming software to test for knowledge creation and business process re-engineering performance outcomes. Findings - The study found a significant conditional effect of knowledge sharing on knowledge creation and business process re-engineering outcomes. Implying that investment in knowledge sharing creates awareness about the financial services outcomes of financial institutions using business process re-engineering to provide financial services. Originality - This study contributes to business process re-engineering literature by advancing the idea that BPR is an important economic resource that enhanced through instituting knowledge creation and sharing practices in a complex environment. Ideally, creating and sharing knowledge is one of the drivers of customer value, efficiency, and effectiveness of financial services in financial institutions. Practical Implications - Managers of financial institutions need to pay keen interest in managing business processes using relevant knowledge and transforming in new products, new processes, and new markets to boost business process re-engineering outcomes by building a strong knowledge creation system through training and development programs for senior managers.

Mask-less Laser Direct Imaging &amp; Adaptive Patterning for Fan-Out Heterogeneous Integration

Mask-less Laser Direct Imaging &amp; Adaptive Patterning for Fan-Out Heterogeneous Integration

Bankruptcy Risk in Discounted Cash Flow Equity Valuation

We investigate the importance of bankruptcy risk in discounted cash flow (DCF) equity valuation. Our analyses first show how bankruptcy risk is incorporated in DCF valuation, where investment risk is captured by cash flow certainty equivalents. Within this general setting, we find that bankruptcy risk can be captured by discounting factors incorporating period-specific bankruptcy probabilities, allowing the numerators in a DCF valuation model to follow a binary random walk. Elaborating a model of this kind, we assess the value of the equity holders’ limited liability right (the equity holders’ right to hand over the firm to its creditors if bankruptcy occurs). Two valuation models commonly used in academic research and professional practice—the Dividend Discount Model (DDM) and the Residual Income Valuation (RIV) model—are addressed specifically. Our analyses show that bankruptcy probabilities are important for the estimation of the value drivers in both models. Even if bankruptcy probabilities are as low as 0.02, equity values might be severely exaggerated if bankruptcy risk is ignored in DDM or RIV. In particular, this holds for firms expected to have high future growth (conditioned on firm survival). For the RIV model to properly capture bankruptcy risk, we identify “bankruptcy event accounting principles” and an additional term that must be included in the model. We also show that bankruptcy risk under certain conditions can be handled through a specific calibration of the discounting rate/-s in all DCF models, allowing the value drivers—i.e., future dividends or residual income—to be forecasted conditioned on firm survival.

Non-financial resources to enhance companies’ profitability: a stakeholder perspective

PurposeThis study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the role of NFRs in value creation.Design/methodology/approachData from 76 organizations from 2017 to 2019 were collected and analyzed. Four primary NFRs and their key value drivers were identified, representing core elements that support different dimensions of a company’s performance. Statistical tests examined the relationship between stakeholders’ NFRs and financial performance measures.FindingsWhen analyzed collectively and individually, the results reveal a significant positive influence of stakeholders’ NFRs on a firm’s profitability. Higher importance assigned to NFRs correlates with a higher return on sales.Originality/valueThis study contributes to the literature by empirically bridging the gap between stakeholder theory and the resource-based view, addressing the intersection of these perspectives. It also provides novel insights into how stakeholders’ NFRs impact profitability, offering valuable implications for research and managerial practice. It suggests that managers should integrate nonfinancial measures of NFRs within their performance measurement system to manage better and sustain companies’ value-creation process.