Market Value Research Articles

Food safety in consumer relations: the influence of personal values

Purpose: The aim of this article is to analyze the relationship between food safety and personal values in light of consumer behavior theory. Method: In this theoretical essay, this relationship is examined through a discussion on how consumers' subjective perceptions are influenced by their personal values in various contexts involving food safety. Findings: The debate addresses social, cultural, economic and environmental factors, considering that values are shaped through the interaction of these variables. By outlining their positioning strategies based on segments of values that are relevant to consumers, organizations are more likely to evoke favorable attitudes towards product acquisition. This includes considering external factors because they shape the formation of personal values and thus influence individuals' choices related to food and their perception of food safety. Originality: This work enriches the theory of personal values in the field of consumer behavior related to food safety by exploring the complex interplay between personal, cultural and market values. Considering personal values as a central element, the analysis presented provides insights for the development of more targeted marketing actions, effective public policies and food supply chain management approaches that meet consumers' expectations in terms of food safety.

A STUDY OF DIGITAL MARKETING TRENDS IN INDIA

In order to better understand the shifting landscape of digital marketing trends in India, the goal of this study is to conduct an analysis. Additionally, it provides insights on key changes and new practices that are having an impact on the industry. The purpose of this study is to analyze and evaluate significant trends in digital marketing strategies, platforms, and technologies that have been utilized by businesses in India. For the purpose of carrying out this evaluation, a comprehensive analysis of industry reports, case studies, and the opinions of industry experts is carried out. A number of the most important areas of attention that are now being addressed include the growing significance of mobile marketing strategies, the adoption of data-driven marketing approaches, the advent of influencer marketing, and the expanding value of social media marketing. In addition, the purpose of this study is to analyze the impact that alterations in rules, advancements in technology, and shifting consumer behaviors have had on digital marketing techniques in the Indian market. These findings not only contribute to a more in-depth understanding of digital marketing trends in India, but they also give major insights that can be exploited by firms, governments, and marketers as they navigate the rapidly changing digital world. In other words, the findings of this study offer substantial insights. Keywords: digital marketing, trends, India, social media marketing, influencer marketing, data-driven marketing, mobile marketing, regulatory changes, consumer behavior.

Digitalization of corporate finance and firm performance: global evidence and analysis

Purpose As of now, the digitization of corporate finance presents a paradigm shift in business strategy, innovation, financing and managerial capability around the globe. However, the prevailing finance scholarly works hardly document the impact of the digitalization of corporate finance on firm performance with global evidence and analysis. Hence, the contemporary debate on whether firm performance is genuinely stimulated because of the digitalization of corporate finance or not has been a pressing issue in the relevant literature. Therefore, the purpose of this study is to identify a data-driven, concise response to an unaddressed finance issue if the performance of high-digitalized firms (HDFs) outperforms that of their counterpart peers for wealth maximization. Design/methodology/approach The first stage test models examine the firm performance of relatively high-digitalized firms as opposed to low-digitalized firms based on the system GMM. The second stage test of the probabilistic (logit) model infers that the probability of being HDFs explores because of better performance. Then, the authors execute robust checks based on the different quantile regressions and Z-score-based system GMM. In addition, the authors recheck and present the test results of the fixed effect and random effect to capture time-invariant individual heterogeneity. Finally, the supplementary test findings of firms’ credit strength by using Altman five- and four-factor Z-score models are presented. Findings By using cross-country panel analysis as 15 years’ test bed for HDFs and low digitalized firms (LDFs), the test results indicate that the overall firm performance of a digitalized firm is significantly better than that of a non-digitalized firm. The global evidence documents that HDFs are exposed to higher values and are financially more persistent as compared to their counterparts. The finding is remarkably concomitant across several possible subsample analysis, such as country–industry–size–period analysis. Practical implications This study can be remarkably effective in encouraging managers, policymakers and investors to acknowledge the need for adopting the required digitalization. Overall, this original study addresses a core research gap in the corporate finance literature and remarkably provides further direction to rethink the assumptions of firm digitalization on additive value and thereby identify optimal decisions for wealth maximization. The findings also imply that investors require an additional risk premium if they invest in relatively LDFs, which have relatively lower market value and weaker firm performance. Originality/value From an investors point of view, the academic novelty contributes to an innovative and unsettled issue on the impact of digitization of corporate finance on firm performance because there is a new question of high or low digitization of corporate finance in the global market. Hence, this academic novelty contributes to sharing global evidence of the digitalization of corporate finance and its effect on firm performances. In addition, an intensive critical review analysis is conducted based on the most recent and relevant scholarly works published in the top-tier journals of finance and business stream to fix the hypothesis. Overall, this study addresses a core research gap in the corporate finance literature; notably provides further direction to rethink firm digitalization; and thereby identifies optimal decisions for shareholders’ wealth maximization.

Do the firm characteristics moderate the nexus between the firm's sustainable practices and financial performance?

AbstractThe paper explores the partial and integrated influence of corporate sustainability practices on the financial execution of Indian‐listed firms. The study considered a sample of 569 listed firms, and the study period spans from 2010 to 2022. Using estimates of feasible generalized least square and quintile regression, the study finds a positive association between the environmental, social, and governance (ESG) score and the financial performance of firms. All the individual dimensions of the ESG score positively affect the firm's internal and external values. Environmental practices have the highest impact on improving balance sheet values through return on asset (ROA). In contrast, social practices have the highest impact on creating market value through Tobin's Q (TQ) compared with other dimensions. However, for large firms, excess investment in ESG may not support their balance sheet through ROA but generates market value through TQ. ESG disclosers negatively impact the internal earnings of firms that are financially inflexible but, in the aggregate, support the firm's market value. In addition, the study finds a significant moderating effect of size, earnings, value, and financial flexibility on the association between ESG scores and the financial performance of the firms.

Experimental Investigation on Gallium and Germanium Migration in Coal Gangue Combustion

Gallium (Ga) and germanium (Ge) critical elements have a wide range of applications and market value. Extracting critical elements from coal gangue and combustion products can alleviate pressures on primary mining resources. Understanding the transformation behavior of Ga and Ge during coal gangue combustion processes is significant for resource utilization and environmental protection. Coal gangue from Xing’an League, Inner Mongolia, was chosen to explore how combustion temperatures (600 °C to 1000 °C) and particle sizes (50, 80, 10, 140, and 200 mesh) influence Ga and Ge migration during combustion. Techniques such as ICP-MS, XRD, XRF, SEM, TG-DSC, and sequential chemical extraction were employed to analyze the transformation of minerals and to quantify the contents and occurrence forms of Ga and Ge. Smaller gangue particle sizes were associated with higher concentrations of Ga and Ge. Approximately 99.19% of Ga and Ge in coal gangue were found in the residual, organic/sulfide-bound, and metal-oxide-bound modes. High temperatures promoted element volatilization and changed the reactions and interactions between elements and minerals. As combustion temperatures rose from 600 °C to 1000 °C, Ga and Ge contents in the products declined progressively. Under high temperatures, minerals like kaolinite, illite, and pyrite in gangue converted to silicate glass phases, mullite, and hematite. Minerals like kaolinite, calcite, and pyrite melted, leading to increased cohesion and agglomeration in the products. Over 90% of Ga and Ge in the combustion products existed in the residual, organic/sulfide-bound, and metal-oxide-bound forms. Moreover, Ga was enriched in combustion products, with its content exceeding critical extraction levels. The results may provide a useful reference for developing critical elements enrichment, extraction, and separation technologies from coal gangue.

The Effect Of Added Market Value On Stock Pricing Efficiency According To The Sharpe Model

The main objective of the research is to study the effect of added market value on the efficiency of stock prices according to the Sharpe model for pricing corporate stocks, according to what emerged from the literature review at the theoretical level, including previous studies, and to deduce its trends associated with the power of interpretation predicted by the research hypotheses in their content related to the impact of value. Added market value to the efficiency of stock prices of the companies studied at the level of the industrial sector in the Iraqi Stock Exchange. A sample was tested using a purposive sampling method that included (13) thirteen industrial companies contributing to the Iraqi Stock Exchange out of (21) twenty-one industrial companies. Over the time horizon of the research, which is (13) thirteen years (2010-2022), then the variables were measured and analyzed at the financial and statistical levels, described and interpreted using the double data method (panel data) to show the impact of the time series, as well as using description and inference tools. Statisticians, including measures of central tendency and dispersion in relation to the results of statistical description, correlation and regression as far as interpretation and inference are concerned, and after conducting mathematical analyzes of the studied company data and testing the research hypothesis in the selected sample, a number of results were reached, including the effect of the added market value owned by the companies Directly with the company's stock prices according to the use of the Sharpe model for stock pricing, and companies that have an added market value have high stock prices as a result of their possession of a high market value and thus a distinctive position among other competitors. Also, companies that have an added market value achieve large profits, and it is Then the research came out with a number of recommendations, paying attention to the availability and measurement of the added market value of Iraqi industrial companies contributing to the Iraqi stock market, which contributes to maximizing the companies’ stock prices. The research also came up with a number of future studies that require other designs in the way of scientific investigation and an attempt to improve the theory. . Paper type: Research paper

Analysis of Trace Impurities in Lithium Carbonate.

Lithium carbonate (Li2CO3) is a critical raw material in cathode material production, a core of Li-ion battery manufacturing. The quality of this material significantly influences its market value, with impurities potentially affecting Li-ion battery performance and longevity. While the importance of impurity analysis is acknowledged by suppliers and manufacturers of battery materials, reports on elemental analysis of trace impurities in Li2CO3 salt are scarce. This study aims to establish and validate an analytical methodology for detecting and quantifying trace impurities in Li2CO3 salt. Various analytical techniques, including X-ray diffraction (XRD), scanning electron microscopy-energy-dispersive X-ray spectroscopy (SEM-EDX), X-ray photoelectron spectroscopy (XPS), and inductively coupled plasma optical emission spectroscopy (ICP-OES), were employed to analyze synthetic and processed lithium salt. X-ray diffraction patterns of Li2CO3 were collected via step-scanning mode in the 5-80° 2θ range. SEM-EDX was utilized for particle morphology and quantitative impurity analysis, with samples localized on copper tape. XPS equipped with a hemispherical electron analyzer was employed to analyze the surface composition of the salt. For ICP-OES analysis, a known amount of lithium salt was subjected to acid digestion and dilution with ultrapure water. Multielemental standard solutions were prepared, including elements such as Al, Cd, Cu, Fe, Mn, Ni, Pb, Si, Zn, Ca, K, Mg, Na, and S. Results confirmed the presence of the zabuyelite phase in XRD analysis, corresponding to the natural form of lithium carbonate. SEM-EDX mapping revealed impurities of Si and Al, with low relative quantification values of 0.12% and 0.14%, respectively. XPS identified eight potential impurity elements, including S, Cr, Fe, Cl, F, Zn, Mg, and Na, alongside Li, O, and C. Regarding ICP-OES analysis, performance parameters such as linearity, limit of detection (LOD), and quantification (LOQ), variance, and recovery were evaluated for analytical validation. ICP-OES results demonstrated high linearity (>0.99), with LOD and LOQ values ranging from 0.001 to 0.800 ppm and 0.003 to 1.1 ppm, respectively, for different elements. The recovery rate exceeded 90%. In conclusion, the precision of the new ICP-OES methodology renders it suitable for identifying and characterizing Li2CO3 impurities. It can effectively complement solid-state techniques such as XRD, SEM-EDX, and XPS.

The interplay between governance mechanisms of blockchain platforms

The interplay between governance mechanisms of blockchain platforms

Effectiveness of Company Value Creation Based on Excess Market Value-Added Assessment

This article aims to assess the usefulness of excess market value added to equity as an external measure of company value creation from the perspective of meeting shareholder expectations. This measure compares the expected value as an increase in stock exchange capitalisation in relation to return on equity, equivalent to its cost, decreased by this capital, in relation to the actually achieved level of capitalisation. This paper investigates relations with other external and internal measures. This research is based on measuring value creation in WIG30 Warsaw Stock Exchange companies in 2017–2023. The assessment of the research results was based on mathematical statistics tools, the density measure and the taxonomic measure of similarity. The study tested four hypotheses. The results of this research showed that the excess measure does not distort market information and can be used to assess the effectiveness of shareholder value creation, taking into account shareholder expectations. Secondly, the paper pointed to an unsatisfactory level of value creation in WSE WIG30 companies. The negative assessment of value creation management refers both to effectiveness and efficiency. Thirdly, shareholders continue to use classical financial measures despite the existence of a wide spectrum of value measures. Fourthly, the paper points to the lack of theoretical equality between the market value added (an external measure) and capitalised economic value added (an internal measure). The presented research contributes to unbiased assessments of whether or not shareholder value is simultaneously created and realised in increased share prices (capitalisation) to a higher degree than shareholder expectations. Up to now, no such research studies have been conducted for Polish and foreign capital markets. The research methodology has practical applications in expectations-based management.

Corporate Taxes, Dividend Policy and Firm Performance in Nigeria Quoted `Firms

Purpose: This study examined corporate taxes, transaction cost, and dividend policy in Nigeria quoted firms. The main purpose of this research is to ascertain the relationship between taxes, transaction cost, and the dividend policy of quoted firms in Nigeria. Materials and Methods: The research adopted both statistical and econometric techniques to analyze data obtained from the Nigeria Stock Exchange between 2018 to 2022. The research work employed an ex-post facto research design to obtain, analyze, and interpret the relevant data for hypotheses testing. Simple random sampling and proportionate stratified random sampling was used to select 36 firms quoted in the Nigerian Stock Exchange to ensure all sectors are represented in the sample size. The data was analyzed and presented using E-views 12 statistical software. Using the OLS panel model, the fixed effect OLS model was considered the most appropriate for the empirical modeling and analysis of the equations. Findings: Our findings in this study indicated that dividend payout ratio (DPR) has a negative and insignificant relationship with current income taxes (CIT), deferred taxes (DTL). Company size (SIZE) has positive but not significant relationship with dividend payout while assets growth (GHT) and leverage ratio (LEV) have positive and insignificant relationship with dividend payout (DPR). Also, dividend per share (DPS) has a positive relationship with company income taxes (CIT) but negative relationship with deferred tax liabilities (DTL). Implications to Theory, Practice and Policy: The study was informed by the “Dividend Policy Theory” The debate on whether corporate taxes has impact on dividend payments of companies is unending. The result of the study is consistent with the findings of scholars and researchers with similar interest such as Jensen and Johnson (1995); Miller and Scholes (1982). It is, therefore, recommended that companies should concentrate on other determinants of dividend policy and not corporate taxes and transaction cost, since corporate taxes and transaction cost have no significant effect on dividend policy. Management should design a dividend payout policy that maximizes market value of quoted firms.

Potential of Establishing Industrial Hemp Value Chains in Northern Australia

Globally, industrial hemp offers consumers with over 25,000 value-added products that are valued at approximately US$4.2 billion of current market value and likely to surpass US$26.6 billion by 2025. In Northern Australia, the industrial hemp sector is at infancy stages of development. Given the suitability of certain Northern Australia’s geographical zones in terms of soil, water, and climate, a study was conducted to identify potential industrial hemp value chains. Probable value chains were developed by characterizing the production to market segments of the supply chains to determine the return on investment and analyzing the capacity of the stakeholders in terms of communication and relationships. Consequently, the strengths, weaknesses, opportunities and threats (SWOT) of the developed value chains were analyzed. This study collected data from three complementary sources that included review of the literature, results of variety trials evaluation conducted in Northern Australia, and survey of hemp industry stakeholders. Results suggested that Northern Australia offers conducive growing conditions for hemp that allows for the development of three value chains including seed, fiber and silage. The research recommended ongoing investment in the industry through engagement of public and private sector while focusing on further establishment of the industry.

A Comparative study of the Envisaged and Definite Stock Prices of BSE SMEs Using RNN during the COVID-19 Pandemic

The stock market is unstable, but the use of machine learning algorithms allows to predict its future dynamics before spending. The most popular area of scientific research right nowadays is machine learning, which involves enabling computers to perform tasks that often require human intelligence. The purpose of this paper is to construct a model using a network of Long-Short Term Memory model (LSTM) to forecast future stock market values. The paper presents the advantages and disadvantages of machine learning for assessing and forecasting the stock market. A review of literature on the application of machine learning models in key areas of finance using methodological model assessment and data manipulation is also available. This paper focuses on the losses of the SME sector due to COVID-19 by doing a comparative study using secondary data collection between the predicted closed stock prices and actual stock prices of the BSE SME IPO index for the period from 1 January 2018 to 30 April 2021.The LSTM network of Recurrent Neural Networks (RNNs) most effective deep learning model, is used to predict stock prices. The study provides insight and direction on where lockdown has a massive impact on the stock prices of BSE SME IPOs. The authors developed a model for predicting the future value of stock in the market, the application of which gave some positive results, demonstrating the need for machine learning and how it can change the world of finance. The novelty of the study is that in India, machine learning and deep learning methods in the field of finance are used much less often than in other countries.

Do ESG Ratings Affect Stock Prices? The Case of Developed and Emerging Stock Markets

This paper examines the role of ESG ratings on stock returns. The sample covers 347 companies from 2010 to 2022 from advanced and emerging stock markets. Return on assets, debt to equity, price-to-book ratio, and price-to-earnings ratio were used as control variables, and panel regression analysis was employed. Results revealed that ESG rating and return on assets statistically positively influence stock market performance. When the components of ESG were tested individually, it was observed that E (environmental) and S (social) ratings positively affect the stock prices. However, no significant relationship was found between G (corporate governance) rating and returns. These findings indicate the importance of investing in stocks and prioritising environmental, social, and governmental concerns regarding portfolio selection decisions. Findings also provide new sights and show that firms, especially in emerging markets, might enhance their market values by paying attention to ESG practices.

Nutrition profiles of farm households across different farming systems in Ethiopia: Unpacking the determinants and implications for nutrition‐sensitive interventions

AbstractTackling nutrition insecurity remains a critical challenge in developing countries. In the predominantly rain‐fed and smallholder‐based farming systems of Ethiopia, production diversity and livelihood strategies of the farm households vary across geographic areas. However, the effects of household socioeconomic characteristics, production diversity, and household incomes on nutrition profiles in distinct settings have been inadequately understood. Therefore, this study was undertaken to examine the association of farming system type, sources of income, and household wealth status with household nutrition profiles in three remote locations such as Mennisa, Welmel Tiqa, and Agam Wuha that represent root crops‐based farming, maize‐based semi‐pastoral farming, and teff‐based cereal farming systems, respectively. A combination of qualitative and quantitative data collection techniques was employed. A multistage sampling procedure was used to select a total of 265 smallholder households for the structured survey interviews. Standard statistical tests and Tobit regression analyses were performed after determining the wealth category of each household. Results revealed a diversity of income sources used by each of the farm households with average values of 9 in Mennisa, 10 in Agam Wuha, and 11 in Welmel Tiqa, with the contributions of each income source varying by household wealth category and location. As expected, expenditures on food significantly exceeded those on non‐food categories for poor households and vice versa for rich wealth households. The average total food variety score (FVS) for Welmel Tiqa was twice that for Agam Wuha, confirming the need for site‐specific nutrition profile assessments. Despite the observed differences in household nutrition profiles among wealth categories and locations, the apparent intakes of vitamin A, vitamin B12, vitamin D, and calcium were consistently below the population‐level estimated average requirements across all locations. The number of adequately consumed nutrients by farm households was negatively associated with family size, age of household heads, livestock holdings, wealth categories, and irrigation use, and positively associated with crop production diversity, income diversity, and FVS. The negative association between irrigation use and nutrition security was likely due to the focus on producing crops with a high market value on land under irrigation, coupled with ineffective allocation of generated income for enhancing household nutritional outcomes. Therefore, programs that include irrigated agriculture investments should consider adopting a more integrated nutrition‐sensitive interventions, including consideration of locally adapted nutritious crops, such as orange‐flesh sweet potato, to address critical deficiency of Vitamin A, nutrition training coupled with development of recipes and cooking demonstrations, and marketing and promotion for nutritious crops.

Supply and demand behaviors in the Chinese emission allowances pledge credit market under different value type: An evolutionary game analysis

Chinese Emission Allowances (CEAs) pledge credit provides a new way for banks to reduce green credit risks and for low-carbon enterprises to improve the credit availability. However, insufficient supply and demand is the main dilemma of CEAs pledge credit in China. One of the reasons for this dilemma may be the neglect of the forward value of CEAs in value assessment. This research explores the decision-making behavior of the supply and demand subjects in the CEAs pledge credit market under different value types of CEAs. First, the improved B–S options pricing model with consideration of transaction costs is used in the construction of the payoff matrix to measure the option value of CEAs. The new matrix aims to place both the option value (corresponding to forward value) and the market value (corresponding to spot value) in the CEAs pledge value evaluation framework. Then, based on the new matrix, an evolutionary game model between key emission enterprises (KEEs) and commercial banks (CBs) is built to dynamically analyze the equilibrium state of supply and demand as well as the strategic interaction of participants in CEAs pledge credit market. Finally, numerical simulations demonstrate the driving factors of supply and demand for CEAs pledge credit. The research results show that compared to market value, the option value of CEAs is more conducive to stimulating the supply and demand of CEA pledge credit; and the shorter the remaining valid period of CEAs, the higher the participation enthusiasm of supply and demand parties. Furthermore, reducing low-carbon technology risks and increasing the carbon emissions trading prices at the end of pledge period can significantly improve the supply and demand of CEAs pledge credit, but the loan and deposit interest rates of CEAs pledge credit are ineffective.

Identification of Some Gem-Quality Red and Green Feldspars

Sunstone is a member of the feldspar group. Natural sunstones from Oregon exhibit unique optical effects and hold significant market value. However, since 2008, there has been a persistent issue of diffused red feldspars masquerading as natural sunstones in the market, severely undermining consumer confidence in purchasing natural sunstones. Fluorescence characteristics under 305–335 nm ultraviolet excitation are considered an effective method for distinguishing copper-diffused red feldspars from natural sunstones. In this paper, through detailed analysis and testing of ten market-acquired red and green feldspar samples, including UV-vis spectra, microscopic characteristics, fluorescence spectra, and chemical compositions, we validate the efficacy of fluorescence characteristics in identifying copper-diffused feldspars. The results verify the widespread prevalence of copper diffusion treatment in market-acquired red and green feldspars, shedding light on their treatment history and providing valuable insights for jewelry consumers. This research not only enhances our understanding of sunstone treatments but also strengthens the reliability and applicability of fluorescence spectroscopy in gemstone identification, offering promising prospects for its broader adoption in the jewelry market.

Analysis of the Correlation between Corporate Dividend Policy and Stock Price

Based on the basic premise and assumption of building a multiple linear regression model and the correlation theory between corporate dividend policy and stock price, this paper adopts the multiple linear regression method of cross-section data to analyze the correlation between corporate dividend policy and stock price of 1458 enterprises from Choice financial terminal after strictly eliminating outliers. It is concluded that the significant positive correlation between dividend per share and stock price is stronger than that between fundamental indicators such as company total market value, return on equity, turnover rate of trading indicators and dividend distribution ratio and stock price, respectively. It is concluded that dividend distribution ratio is helpful to stabilize stock price fluctuations and improve investor return mechanism is beneficial to the healthy development of A-share market.

Innovative Packaging of Local Food Products for Home and Foreign Markets: Case of Dala Foods Nigeria Ltd.

Innovations in packaging has seen significant development due to industrial processing of food and need for instant food due to lack of time to prepare food from fresh ingredients. This study explores the application of packaging in marketing local food products in local and foreign markets with a special focus on an indigenous food processing company; Dala Foods Nigeria Limited, makers of packaged Kunun Tsamiya brand. The study adopts qualitative research approach through case study method in order to have an in-depth exploration of how packaging contributes to the success of Kunun Tsamiya in the market. The selection of participants is made by applying a non-probability sampling technique through convenience sampling. Structured open-ended questions are applied in the interview and the responses are presented using descriptive analysis of the thematic areas covered by the interview. Findings of the study reveal that packaging is a valuable marketing tool as it plays a significant role in food product marketing. Similarly, it contributes immensely towards the marketing and success story of Kunun Tsamiya in both local and foreign markets. Therefore, it is highly recommended that our local companies and individual producers of food products should warmly embrace and use proper packaging in marketing their products without any delay.

Board Gender Diversity, Governance, and Firm Value: An International Evidence

Using firms across 95 countries, the paper finds that a higher percentage of females on the boards is associated with better corporate governance practices concerning the proportion of independent directors, governance disclosure, employee Corporate Social Responsibility (CSR) training, existence of a CSR committee, and board age diversity. Propensity score matching finds that a higher representation of females on the boards can improve board independence, disclosure, CSR training, and firm value. Based on instrumental variable analysis, the findings show that more female directors positively and significantly affect the board age diversity, independent directors, governance disclosure (with GDI annual), and market value.

Strategic Social Value Orientation and Sustainability Performance: A commensuration perspective

Firms increasingly express the strategic importance of creating social value in addition to financial and market value in their communications to investors. Yet, it is unclear what a strategic orientation towards social value creation entails and whether it differentiates firms in terms of their sustainability performance. This article provides a conceptualization of strategic social value orientation (SSVO) consisting of three behavioral components (leading business with purpose, support of stakeholders, focus on consequences) and one shared belief (mutuality). Utilizing a novel linguistic, content-analytic measure of strategic social value orientation, we analyse annual letters to shareholders and sustainability ratings across 1580 firm-year observations, indicating that firms with a stronger strategic social value orientation show greater sustainability performance. The article explores commensurability of strategic attention towards social value creation, suggesting that future research prioritize more fine-grained assessments of social value, sustainability strategies and performance. Our study makes two main contributions. First, we advance theory at the intersection of sustainability and strategic orientation literatures by introducing a new concept of a firm’s strategic orientation toward social value creation (i.e. SSVO). Second, we develop and validate an empirical measure at the firm level for analysing a firm’s strategic social value orientation, making an important contribution to the commensuration of sustainability. Our findings offer guidance to scholars and implications for practitioners.