João Graça, Lisa Roque, David Guedes, Lúcia Campos, Monica Truninger, Cristina Godinho and Markus Vinnari
Recent reviews and reports have highlighted the need for integrated, context-specific efforts to enable sustainable food transitions. This study aimed to identify pathways to…
Abstract
Purpose
Recent reviews and reports have highlighted the need for integrated, context-specific efforts to enable sustainable food transitions. This study aimed to identify pathways to promote healthier and more environmentally friendly food practices in school contexts, with a focus on increased plant-based eating.
Design/methodology/approach
The study used a systemic approach with data collected from relevant stakeholders in an EU country (Portugal) at diverse levels of influence in the school meals system (i.e. proximal, intermediate, distal; from end-consumers to food providers, market actors, civil society organizations, and policy and decision-makers). Data from individual interviews (N = 33) were subjected to thematic analysis.
Findings
Meat-centric cultural perceptions of a ‘proper meal’ can be a socio-emotional barrier for sustainable food transitions in schools. Main pathways identified to unlock these transitions included: (1) Levering orientations toward ethical and environmentally beneficial consumption; (2) Improving and increasing the offer of plant-based meals; and (3) Mobilizing local communities and society.
Originality/value
The current findings suggest that promoting healthier and more environmentally friendly food practices in schools requires systemic, integrated approaches which focus on food consumption, food provision, and the broader political and sociocultural environment.
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Diego Asensio-López, Laura Cabeza-García and Nuria González-Álvarez
The purpose of this paper is to present a review of the literature on two lines of research, corporate governance and innovation, explaining how different internal corporate…
Abstract
Purpose
The purpose of this paper is to present a review of the literature on two lines of research, corporate governance and innovation, explaining how different internal corporate governance mechanisms may be determinants of business innovation.
Design/methodology/approach
It explores the theoretical background and the empirical evidence regarding the influence of both ownership structure and the board of directors on company innovation. Then, conclusions are drawn and possible future research lines are presented.
Findings
No consensus was observed regarding the relation between corporate governance and innovation, with both positive and negative arguments being found, and with empirical evidence not always pointing in the same direction. Thus, new studies trying to clarify this relationship are needed.
Originality/value
Over recent years, interest has grown in the influence of governance mechanisms on innovation decisions taken by the management. Innovation efforts and results depend on factors that are influenced by corporate governance, such as ownership structure or the functioning of the board of directors. Thus, the paper shows an updated state of the art in this field proposing future lines for empirical research.
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Osama EL-Ansary and Aya M. Ahmed
This study aims to analyze how cultural variations impact the relationship between long-term debt use and managerial overconfidence. Investigate into how the relationship between…
Abstract
Purpose
This study aims to analyze how cultural variations impact the relationship between long-term debt use and managerial overconfidence. Investigate into how the relationship between growth prospects and the utilization of long-term debt is moderated by managerial overconfidence. In addition, the research explores the moderating effect of managerial overconfidence on cash flow levels.
Design/methodology/approach
The study used long-term debt as the dependent variable and used generalized method of moments–instrumental variables regression analysis to examine data from 356 firms across 11 Middle East and North Africa (MENA) countries and 5 industries between 2013 and 2021.
Findings
CEO overconfidence moderately boosts the link between long-term debt maturity and growth potential, particularly for firms with limited internal funding. Cultural factors, such as masculinity and uncertainty avoidance, play a significant role in moderating the relationship between managerial overconfidence and debt maturity choices.
Practical implications
To understand the impact of managerial overconfidence on a company’s debt maturity decision, it is essential for boards and shareholders to consider and monitor the CEO’s behavioral traits, particularly for growing companies. Regulators and policymakers must also be wary of the risk of internal control weakening due to overconfident managers, especially in MENA markets.
Originality/value
The authors’ contribution to the literature lies in exploring how managerial overconfidence moderates the agency conflict between shareholders and debtholders in MENA region firms, which has received minimal attention in previous studies. This study expands the knowledge of the impact of managerial overconfidence on emerging economies and provides evidence that national culture plays a vital role in determining debt financing decisions.
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Jiang Wei, Xiao Min and You Jiaxing
The purpose of this paper is to empirically analyze the effects of managerial overconfidence on debt maturity structure decisions in terms of liquidity risk and asset match in…
Abstract
Purpose
The purpose of this paper is to empirically analyze the effects of managerial overconfidence on debt maturity structure decisions in terms of liquidity risk and asset match in Chinese listed companies.
Design/methodology/approach
Combining data from CSMAR with some default data collected by hand, this paper selects age, tenure, education, education background and whether the board chair and CEO positions are consolidated in Chinese listed companies as proxies of managerial overconfidence. Thus, the authors acquired needed and credible empirical data.
Findings
It was found that, the younger the CEO, the shorter the tenure, the lower the education, having economics or management education and being chairman concurrently, CEOs have stronger managerial overconfidence. Thus, corporate debt maturity structure is more weakly correlated with debt ratio and asset structure.
Research limitations/implications
The findings in this study suggest that managerial irrationality, especially overconfidence, does have an effect on the financing decisions of firms.
Originality/value
This is the first paper to analyze the effects of managerial overconfidence on debt maturity structure decisions in terms of liquidity risk and asset match. The findings inspire firm risk management policies from managerial overconfidence.
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Kwanglim Seo, Ellen Eun Kyoo Kim and Amit Sharma
This paper aims to find alternative explanations for the use of long-term debt in the US restaurant industry from a behavioral perspective. The three-fold purpose of the present…
Abstract
Purpose
This paper aims to find alternative explanations for the use of long-term debt in the US restaurant industry from a behavioral perspective. The three-fold purpose of the present study is to examine the impact of CEO overconfidence on the use of long-term debt; explore how CEO overconfidence moderates the relationship between growth opportunities and long-term debt; and analyze the moderating role of CEO overconfidence based on cash flow levels in the context of the restaurant industry.
Design/methodology/approach
Using a sample of publicly traded US restaurant firms between 1992 and 2015, this study used generalized methods of moments with instrumental variable technique to analyze the panel data.
Findings
The findings of this study highlight the importance of considering behavioral traits of CEOs, such as overconfidence to better understand the US restaurant firms’ financing behaviors. This study found that overconfident CEOs tend to use more long-term debt when firms have greater growth opportunities and low cash flow.
Practical implications
Given that psychological and behavioral features of CEOs are critical in understanding the variations in corporate financing decisions and capital structure, shareholders and boards of directors of growth-seeking restaurant firms should incorporate the behavioral aspects of overconfident CEOs in the design of long-term debt contracts to mitigate liquidation risk while developing compensation practices that encourage overconfident CEOs to finance growth.
Originality/value
Despite its heavy reliance on long-term debt in the US hospitality industry, prior studies provided mixed findings for the determinants of long-term debt. This study makes a contribution to the literature by offering alternative approaches to examining long-term debt decisions among US restaurant firms.
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The purpose of this paper is to determine whether the strength of corporate governance influences the firm’s ability to retain their key knowledge workers or inventors.
Abstract
Purpose
The purpose of this paper is to determine whether the strength of corporate governance influences the firm’s ability to retain their key knowledge workers or inventors.
Design/methodology/approach
This paper links agency and innovation theory to develop the hypotheses. Agency theory predicts that the interests of employees are counter to those of firm owners. The authors predict that as shareholder power grows as corporate governance strengthens, inventors who are highly productive, and those who pursue risky but valuable exploratory innovation will leave the firm. Given prior scholarship in innovation theory establishing the critical contributions that new knowledge creation and exploratory innovation make to firms’ competitive advantage, the authors consider whether stronger firm-level corporate governance leads to the erosion of the firm’s competitive advantage. The hypotheses are empirically tested using generalized least squares estimation on a data set that combines data on firms, their patents and the governance provisions these firms adopt.
Findings
Using a 10-year sample of publicly traded US firms, the authors find that stronger corporate governance erodes the very foundation of a firm’s innovation capabilities. Stronger corporate governance reduces management job security, which makes managers more risk-averse. This heightened “managerial myopia” results in increased departures of highly valuable inventors employed by the firm. The authors show that these departing inventors are more productive inventors than those who remain and engage in more exploratory R&D than the remaining inventors at the firm.
Originality/value
The findings raise questions on the appropriateness of the adoption of governance provisions strengthening shareholder rights in firms pursuing innovation.
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This paper examines the effect that the introduction of the FRS 9, the general disclosure standard in New Zealand, has on the level of disclosure of certain unspecified operating…
Abstract
This paper examines the effect that the introduction of the FRS 9, the general disclosure standard in New Zealand, has on the level of disclosure of certain unspecified operating expenses. Generally, a low level of operating expense disclosure was found with no overall improvement recorded after the introduction of FRS 9. In many cases, companies did not disclose any unspecified operating expenses. Firm size and overseas listing/ownership appeared to be positively associated with the disclosure of unspecified operating expenses. Most companies did disclose the mandatory expenses monitored (depreciation, audit and directors' fees). Commentary is provided on the inadequacy of the discretionary aspects of accounting standards such as FRS 9, and the inadequacy of regulatory enforcement. Given the move to international harmonisation, and the level of disclosure seemingly at odds with international practice, the adoption and enforcement of International Accounting Standard 1 (IAS 1) would provide a simple solution.
Mahdi Salehi, Mahmoud Lari DashtBayaz and Samaneh Mohammadi Moghadam
The purpose of this paper is to assess the relationship between some management features (management capability, management entrenchment, agency costs and overconfidence) and the…
Abstract
Purpose
The purpose of this paper is to assess the relationship between some management features (management capability, management entrenchment, agency costs and overconfidence) and the innovation of companies listed on the Tehran Stock Exchange.
Design/methodology/approach
The study carried out during 2009–2015. A total of 125 companies were selected from eight industries as the sample of study using the method of systematic elimination. A descriptive-correlational design was used in this study and panel data regression models were employed for developing the relationship between research variables.
Findings
The obtained results indicated that managerial ability could foster innovation, while managerial entrenchment could stifle innovation and agency costs and overconfidence have no effect on innovation.
Originality/value
The current study is almost the first project which focuses on the management characteristics and firm innovation in developing countries.
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José Guedes and João M. Andrade e Silva
The purpose of this paper is to further understanding of how new information impacts the market value of financial assets.
Abstract
Purpose
The purpose of this paper is to further understanding of how new information impacts the market value of financial assets.
Design/methodology/approach
The paper uses a Bayesian approach to asset valuation, whereby investors use signals conveyed by new information to update their estimate of a structural valuation parameter. The underlying distributions – i.e. the distribution of the information signal and the prior distribution of the valuation parameter – are allowed to exhibit a degree of kurtosis greater than that of the normal distribution.
Findings
The revision in asset value as a function of the realization of the information signal is an S‐shaped function (in the local region centred on the zero‐surprise level of the signal), if the distribution of the information signal features excess kurtosis; conversely, if the prior of the valuation parameter features excess kurtosis, the revision in asset value is an inverted S‐shaped function.
Research limitations/implications
The paper generates clear implications with respect to the shape of the function relating the revision in asset value to the realization of the signal only in the local region centred on the zero‐surprise level of the signal.
Practical implications
The paper helps to shed light on the well‐known empirical result that the stock price reaction to earnings' announcements is an S‐shaped function, centred on the zero‐surprise level of reported earnings.
Originality/value
In the financial accounting literature, the paper helps one to understand the role of the distributional assumptions underlying the stock price reaction to earnings' announcements, namely, the role of excess kurtosis both in reported earnings and in the prior of means earnings.