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This paper aims to look at the three areas of corporate governance, intellectual capital and strategic business valuation from the perspective of a long‐term value investor.

The paper begins by briefly laying out the investment tenets of a long‐term value investor and then proceeds to align long‐term value investing with long‐term stewardship of economic resources. The paper is a transcript of a keynote presentation delivered at the 1st McMaster World Congress on Strategic Business Valuation.

In the area of intellectual capital the paper points out that the concept of intellectual capital falls far short of the fuller and more necessary view on intellectual knowledge which should be replaced or at least augmented with the notion of wisdom.

Any notion of strategic valuation or pricing of assets based on their economic value will be significantly impacted by one's investment principles and time horizon. The paper mentions two examples of inefficiencies in the market due to divergent time horizons. The two examples discussed are income trusts and principal protected notes.

One's investment philosophy or principles which largely determine time horizon will have a significant impact on how one approaches the important areas of corporate governance, intellectual capital and strategic business valuation. The concern of the paper is to the extent that we have become more short‐term in our investment principles; this will have serious long‐term negative impacts on the capital markets.

The purpose of the study is to explore the board of directors in leveraged buyouts (LBOs) as a distinct source of value creation and to conceptually investigate the going‐private transaction via LBO as a response to deficient governance structures as well as the post‐buyout board restructuring.

The paper provides a review of the literature on LBOs boards, and relies on agency theory and the resource dependence perspective to develop testable propositions. The work suggests that the board as a particular source of efficiency gains in LBOs warrants further empirical research.

The paper gives strong credence to the argument that boards represent a unique source of value creation in LBOs. Previous agency‐theoretic work is complemented by focusing on the monitoring function of the board, but resource dependence theory introduced to suggest the importance of a strategic service and support function. The work is conceptual in nature and thus requires subsequent empirical testing to verify assertions set forth in this study.

The paper shows that incentives of managerial equity participation and the discipline of debt are gradually losing their distinctiveness in today's buyout industry. To compete in an increasingly crowded environment, LBO specialists need to identify new sources of value to generate attractive returns for their investors.

The paper extends the existing LBO literature by introducing resource dependent as a complementary framework. Given that the traditional LBO literature examines the discipline of debt and managerial ownership that explain their efficiencies, the role of LBO boards as a distinct value creation mechanism in buyouts is introduced.

Colombia presents with one of the largest armed conflicts in the world. Children exposed directly or indirectly to armed conflicts live the emotional footprints left by war. This paper aims to identify mental health problems among children survivors of Colombia’s armed conflict and associated factors.

A cross-sectional study with (n = 80) children aged 7 to 11 years (M = 9.8 years; SD = 1.4) was conducted using the Child Behavior Checklist, Family APGAR and MOS social support survey adaptation to children. Linear regression analyses were also performed with emotional and behavioral problems as the outcomes and related factors as the predictors.

Clinical levels of emotional and behavioral problems were found in 56.3% of children. Internalizing problems (63.7%) were more common than externalizing problems (51.2%). Older children had greater emotional problems at the trend level, and those with higher functioning families had lower emotional problems. Children with higher perceived social support had lower behavior problems at the trend level.

This study includes a sample facing multiple risks and uses a holistic approach to consider family and social resources that may support children who are survivors of the armed conflict in Colombia. These results provide a foundation for future promotion and prevention programs related to children’s mental health problems to support peacebuilding within the framework of the Colombian post-conflict process.

To the best of authors’ knowledge, this is the first study to collect empirical data on the mental health of children survivors of Colombia’s armed conflict focused in the Atlantic Department.

The purpose of this paper is to draw lessons to investors from the conduct of a hedge fund manager who according to the Securities and Exchange Commission (SEC) complaint made false and misleading statements before and after an auditor’s reports, misappropriated for personal benefit over $1m, misappropriated clients’ assets, failed to conduct due diligence on third-party buyer, instructed an employee to mislead investors and satisfied some investors’ redemptions with other investors’ subscriptions (Ponzi scheme) without disclosing it to investors. Ironically, the scheme was unveiled by the economic crises and not the investors, their advisers or third-party hedge fund vendors. Corey Ribotsky set up the investment adviser NIR Group to manage four AJW Funds that invested in private equity in public companies in 1999. Through manipulation of financial statements, he also managed to collect about $136m in management and incentive fees over an eight-year period. The SEC complaint alleged the AJW Funds’ assets to be $876m in 2007, yet this figure was not verified, and no assets were traced. Ribotsky did not pay any monies to SEC, as ordered by court settlement, and hence the victims did not recover any of their monies. The SEC could not produce criminal charges; hence, Ribotsky did not go to jail. This case highlights sterility of law enforcement when confronted with brazen fraud.

Investors fail to monitor hedge fund managers. Fraud was detected late and not through investors. Fraud was unraveled by the economic crises of 2008. The SEC had sued the fund manager. The fund manager consented to making payment to the SEC but did not make any payments. The SEC could not bring evidence to criminally charge the fund manager.

The findings based on the case study are valuable to investors and hedge fund industry stakeholders. The findings are not based on an empirical study.

Investors need to carefully vet all hedge fund managers before allocating and funds and understand how managers make money through the claimed strategy. Also, there are limitations to law enforcement even with confronted with profound fraud schemes.

The case was built up from public sources to benefit investors considering making allocations to hedge fund managers. The public information about the case is of either legalistic or journalistic in nature.

This case study was prepared through secondary research. The secondary data was collected in electronic format from the internet. Archived data from the company sources as well as other resources available online was used. Financial reporting about Pfizer Inc. (Pfizer) was done using data from the company’s annual reports.

This case discusses US-based pharmaceutical giant Pfizer’s successful rollout of the Covid-19 vaccine under the leadership of its Chief Executive Officer Albert Bourla (Bourla). In March 2020, when the World Health Organization declared Covid-19 a pandemic, leaders of pharmaceutical giants worldwide were in no way prepared to find a cure for the disease caused by the novel coronavirus. On the other hand, Bourla stood up like a true leader and sought to do something to address the problem. Bourla’s huge gamble paid off. In December 2020, the Food and Drug Administration approved the Covid-19 vaccine developed by Pfizer. Pfizer was ready with 50 million vaccine doses for global distribution.

This case is intended for use in MBA/MS level programs as part of the curriculum on Effective Leadership and Decision-making, and Crisis Management.

What information do members of Congress (politicians) use when they trade stocks? The purpose of this paper is to attempt to answer this question by investigating the relationship between an aggregate measure of trading by members of Congress (aggregate congressional trading) and future stock market returns.

The authors follow the empirical framework used in academic work on corporate insiders. In particular, they aggregate 61,998 common stock transactions by politicians over the 2004–2010 period and estimate time series regressions at a monthly frequency with heteroskedasticity and autocorrelation robust t-statistics.

The authors find that aggregate congressional trading predicts future stock market returns, suggesting that politicians use economy-wide (i.e. macroeconomic) information in their stock trades. The authors also present evidence that aggregate congressional trading is related to the growth rate of industrial production, suggesting that industrial production serves as a potential channel through which aggregate congressional trading predicts future stock market returns.

To the best of the authors’ knowledge, this study is the first to document a relationship between aggregate congressional trading and stock market returns. The media and scholarly attention on politicians’ trades have mostly focused on the question of whether politicians have superior information on individual firms. The results from this study suggest that politicians’ informational advantage may go beyond individual firms such that they potentially have superior information on the overall trajectory of the economy as well.

The purpose of this study is to underline the impact that globalization of financial markets has on national punishment policies. The US financial crisis has strongly affected consumers’ lives, but the focus of this research is on the national provisions against the illegal and unfair behaviour of economic actors, with special regard to a phenomenon that took place abroad, but whose effects came to light in many different countries.

Different methodological approaches, both deductive and inductive, are combined in the present paper, together with comparative and philosophical insights on national Court decisions and scholar writings.

As European Union (EU) member States experts are discussing about a lex mercatoria for the financial markets to govern the EU integration process, this study highlights some questions concerning mainly three aspects: the level of censorship; forms and nature of responsibility; punitive models and their micro- and macro-economic effects.

The study offers insights into the possible answers in terms of criminal and private law remedies to fight financial market abuse in a global dimension, through the use of general principles of contractual and tort law, which are common among EU member State, as culpa in eligendo, culpa in vigilando, duty of information, duty of care, ecc […] .

Agency theorists diagnosed the economic malaise of the 1970s as the result of executive obsession with corporate stability over profitability. Management swallowed many of the pills agency theorists prescribed to increase entrepreneurialism and risk-taking; stock options, dediversification, debt financing, and outsider board members. Management did not swallow the pills prescribed to moderate risk: executive equity holding and independent boards. Thus, in practice, the remedy heightened corporate risk-taking without imposing constraints. Both recessions of the new millennium can be traced directly to these changes in strategy. To date, regulators have proposed nothing to undo the perverse incentives of the new “shareholder value” system.

The purpose of this study is to examine how servicescapes impact well-being and satisfaction of both hospital customers (patients) and health care professional service providers.

The study investigates how a hospital servicescape impacts two critical outcomes – well-being and satisfaction – of both hospital patients (customers) and health care professionals, who are immersed in that environment.

The hospital servicescape had a greater impact on physical, psychological and existential well-being for professionals than for patients. However, the reverse was true for satisfaction. The new servicescape enhanced the satisfaction and physical and psychological well-being of professionals but only the satisfaction of customers.

The study implications for health care policy suggest that investment in health care-built environments should balance the needs of health care professionals with those of customers to benefit their collective well-being and satisfaction.

Based on the findings, the authors propose that servicescape investments should focus on satisfying the physical needs of patients while also placing emphasis on the psychological needs of professionals.

Health care spending on physical facilities should incorporate careful cost-benefit analysis, ensuring that beneficial features for both user groups are included in new hospital designs, omitting features that are less supportive of well-being.

To the best of the authors’ knowledge, this study is the first to compare the impact of the same real-life servicescape on the satisfaction of both customers and service providers (professionals) and considers the critical health outcome of well-being.