Eva Liljeblom, Benjamin Maury and Alexander Hörhammer
State ownership has been common especially in industries with restricted competition. In Russia, state-controlled firms represent around 41 percent of the market value of all…
Abstract
Purpose
State ownership has been common especially in industries with restricted competition. In Russia, state-controlled firms represent around 41 percent of the market value of all listed firms (Deloitte, 2015). Yet, there is a significant gap in the literature regarding the effects of various forms of government control in listed firms. The purpose of this paper is to fill this gap by exploring the impact of the complexity of state ownership and competition on the performance of Russian listed firms.
Design/methodology/approach
The sample consists of data for 72 firms (360 firm-years) in the Russian MOEX broad market index during 2011–2015. The complexity of state ownership is captured by studying forms of state control including majority/minority, direct/indirect, federal/regional, mixed structures and golden shares.
Findings
The authors find significant differences in performance relating to different forms of state ownership. State control is negatively related to firm valuation and the sales/employees ratio. Performance is weakest when state ownership takes the form minority, regional or direct ownership. State control through golden shares typically outperforms other state-controlled firms. The authors find indications of employment prioritization beyond the economical optimum. In addition, the relation between state ownership and profitability becomes positive in sectors where state firms appear to enjoy lower competition.
Originality/value
While the effects of state ownership have been studied on many markets, there is a lack of studies on the effects of different forms, or the complexity, of state ownership beyond direct and indirect ownership. The authors contribute to the literature on the performance effects of state ownership by studying a multitude of forms of governmental ownership as well as the role of competition in Russia. Especially the profitability of state-controlled firms is significantly affected by industry characteristics. Implications of the results are discussed both from firm and policy maker perspectives.
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Alex Lundqvist, Eva Liljeblom, Anders Löflund and Benjamin Maury
The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within…
Abstract
Purpose
The cultural and legal differences between foreign acquirers and African target firms can be substantial. There is also a large variation in cultures and legal systems within Africa. However, there is limited research on merger and acquisition (M&A) performance by foreign firms in Africa. The purpose of this paper is to fill this gap by exploring the “spillover by law” hypothesis (Martynova and Renneboog, 2008) that focuses on the influence of the external environment on the governance and performance of foreign M&As in Africa.
Design/methodology/approach
The data set covers 415 M&A transactions by foreign firms in Africa during the period of 1999–2016. Dynamic data covering the country’s legal, cultural and political environment are collected from the World Bank, the Heritage Foundation and Transparency International.
Findings
The authors find that the legal environment significantly affects the returns of bidders on African firms. For complete acquisitions, bidder returns are significantly higher when the bidder’s country has higher shareholder protection and higher creditor protection compared with the target firm’s country. The results show that the effects are significant when there is a full control change (including a change in the target firm’s nationality) but not in the case of partial control transfers. The results are consistent with the “spillover by law” hypothesis.
Originality/value
The authors contribute to the literature on cross-border M&As by separately studying the valuation effects of full, majority and minority changes in control; by being the first study of the legal spillover effects in Africa; and by being the most extensive study of the legal determinants of the valuations of non-African acquirers of African firms.
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Earlier studies have found that the country characteristics play important role in measuring the corporate transparency. The purpose of this paper is to examine whether the…
Abstract
Purpose
Earlier studies have found that the country characteristics play important role in measuring the corporate transparency. The purpose of this paper is to examine whether the firm-level determinants play an important role in corporate transparency measured as the quality of disclosed earnings across transitional Europe and what role an overall transparency measured by the Corruption Perception Index plays in it. This paper further tests if the market reacts similarly to discretionary and non-discretionary components of earnings across different groups of countries with respect to transparency.
Design/methodology/approach
The financial and ownership data of listed companies in ten European countries is obtained from Amadeus. The transparency ratings are obtained from Transparency International. The sample consists of a panel of 2001 listed companies and modified Jones model of Dechow et al. (1995) is used to measure the quality of earnings.
Findings
This paper shows that the firm-level determinants (except firm size) of the quality of earnings are different among different groups made on the basis of transparency ratings. However, the determinants of the quality of earnings are not different within each group. The ownership structure of companies plays important role in determining the quality of earnings in most transparent countries whereas financial factors play significant role in least transparent countries. The markets respond positively to earnings quality in most transparent group of countries.
Research limitations/implications
The results of this study provide interesting basis for future research on economic and social integration of Europe. Although the policy makers are trying to integrate the countries through common Laws and decrees but examining the firm-level factors such as size, growth and ownership are still important. The regulators should address the issue of corporate transparency in Europe by looking at the importance of these factors with respect to overall transparency.
Originality/value
This study extends the knowledge, not only for academicians and investors but for policy makers as well. This study re-emphasizes the role of country-level transparency and firm-level determinants of the corporate transparency within Europe.
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Adreanne Ormond and Martyn Reynolds
The tertiary environment in Aotearoa New Zealand presents challenges that can affect the wellbeing of Māori students, members of the Indigenous peoples of Aotearoa New Zealand…
Abstract
The tertiary environment in Aotearoa New Zealand presents challenges that can affect the wellbeing of Māori students, members of the Indigenous peoples of Aotearoa New Zealand. This is because the values and practices that are normative in the tertiary environment do not always sit well with Māori, who also, in tertiary spaces, are in a numeric minority. Māori leadership and wellbeing are holistically intertwined so that changes that address issues of Māori leadership can support Māori wellbeing and consequently lead to valued outcomes. This chapter describes one change-making endeavor in which Māori leadership is normalized and developed as the “Academy Space.” The Academy Space is approached through one of its research and development arms, the video project Telling It Like It Is.
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This paper aims to address the notion that the relationship between being indigenous and business success is inconclusive because there are tensions between indigenous values and…
Abstract
Purpose
This paper aims to address the notion that the relationship between being indigenous and business success is inconclusive because there are tensions between indigenous values and business success. The research questions are: How do indigenous entrepreneurs define success? Does the third space create a different meaning of success in the indigenous context?
Design/methodology/approach
A qualitative approach was adopted for this study because the ability to define success requires subjective meanings. Participants’ lived experiences and stories were the main sources of information. Open conversational-style interviews were used because they allow participants to freely share their stories.
Findings
A defining line is that not all indigenous entrepreneurs have the same view of success. The homogeneity that emanates from sharing indigeneity does not equal unity in views, but shows that people from the same group can view success differently. However, the meaning and views formed are also connected to the wider community, relationships and predominant values that characterise the social cultural context of the entrepreneur.
Research limitations/implications
This study focuses on one indigenous group; more studies need to be conducted to gain wider variation on the meaning of success in indigenous entrepreneurship and how indigenous subculture alters these meanings.
Practical implications
The findings of this study show that success for indigenous entrepreneurs should be defined based on individual philosophy. Hence, practitioners should endeavour to clarify what success means from the initial stage of the business to avoid misconception and make this clear to others that are connected to the business.
Originality/value
This paper suggests a different view of success in an indigenous context using the hybridity viewpoint to explain why success can be perceived using the in-between space without opposite binary.
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Rachel Strimas, Michelle M. Dionne, Stephanie E. Cassin, Susan Wnuk, Marlene Taube-Schiff and Sanjeev Sockalingam
Evidence suggests high rates of psychiatric disorders in bariatric surgery candidates (e.g. Mitchell et al., 2012), although no rigorous studies have examined the prevalence in a…
Abstract
Purpose
Evidence suggests high rates of psychiatric disorders in bariatric surgery candidates (e.g. Mitchell et al., 2012), although no rigorous studies have examined the prevalence in a Canadian sample. Improved understanding of the prevalence of psychopathology among female patients is an important area of study, as females comprise approximately 80 percent of surgical candidates (Martin et al., 2010; Padwal, 2005). The purpose of this paper is to assess the prevalence of Axis I disorders and associations with quality of life in a Canadian sample of female bariatric surgery candidates.
Design/methodology/approach
Female patients (n=257) were assessed using a structured psychodiagnostic interview and completed a health-related quality of life questionnaire.
Findings
Results indicated that 57.2 percent of patients met DSM-IV-TR criteria for a lifetime psychiatric disorder and 18.3 percent met criteria for a current psychiatric disorder. Major depressive disorder was the most common lifetime psychiatric disorder (35.0 percent) and binge eating disorder was the most prevalent current psychiatric disorder (6.6 percent). Patients scored significantly lower than Canadian population norms on all domains of the SF-36 (all p's<0.001). Patients with a current Axis I disorder also reported significantly worse functioning on four mental health domains and one physical health domain (p's<0.01) compared to patients without a current Axis I disorder.
Originality/value
Results confirm high rates of psychiatric disorders in Canadian female bariatric surgery candidates and provide evidence for associated functional health impairment. Further study is needed to elucidate how pre-operative psychopathology may impact female patients’ post-operative outcomes.
Francesc Fusté-Forné and Asif Hussain
This case study urges the future of visitor economy to rely on regenerative tourism to make tourism systems resilience in the long run.
Abstract
Purpose
This case study urges the future of visitor economy to rely on regenerative tourism to make tourism systems resilience in the long run.
Design/methodology/approach
The paper draws on published research and industry reports to discuss the future visitor economy and its impact on all dimensions of well-being focused on the case of Aotearoa New Zealand.
Findings
Results show that post-pandemic tourism transformation must protect and promote local identities, and enhance and enrich visitor experiences with a focus on cultural and natural heritage.
Originality/value
The recovery of tourism must not implement regenerative tourism as a new specific type of tourism but as a holistic understanding of tourism futures that encompasses communities and the environment, and where visitors are committed to preserve and protect our natural and socio-cultural environment.
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Samuli Laato, Nobufumi Inaba, Mauri Paloheimo and Teemu Daniel Laajala
This study investigates how game design, which divides players into static teams, can reinforce group polarisation. The authors study this phenomenon from the perspective of…
Abstract
Purpose
This study investigates how game design, which divides players into static teams, can reinforce group polarisation. The authors study this phenomenon from the perspective of social identity in the context of team-based location-based games, with a focus on game slang.
Design/methodology/approach
The authors performed an exploratory data analysis on an original dataset of n = 242,852 messages from five communication channels to find differences in game slang adoption between three teams in the location-based augmented reality game Pokémon GO. A divisive word “jym” (i.e. a Finnish slang derivative of the word “gym”) was discovered, and players' attitudes towards the word were further probed with a survey (n = 185). Finally, selected participants (n = 25) were interviewed in person to discover any underlying reasons for the observed polarised attitudes.
Findings
The players' teams were correlated with attitudes towards “jym”. Face-to-face interviews revealed association of the word to a particular player subgroup and it being used with improper grammar as reasons for the observed negative attitudes. Conflict over (virtual) territorial resources reinforced the polarisation.
Practical implications
Game design with static teams and inter-team conflict influences players' social and linguistic identity, which subsequently may result in divisive stratification among otherwise cooperative or friendly player-base.
Originality/value
The presented multi-method study connecting linguistic and social stratification is a novel approach to gaining insight on human social interactions, polarisation and group behaviour in the context of location-based games.