Albert Danso, Samuel Adomako, Joseph Amankwah-Amoah and Theophilus Lartey
Building on the upper echelons theory and sustainability orientation (SO) literature, this paper aims to examine the possibility that the relationship between chief executive…
Abstract
Purpose
Building on the upper echelons theory and sustainability orientation (SO) literature, this paper aims to examine the possibility that the relationship between chief executive officers’ (CEOs’) SO and venture growth might be mediated by levels of corporate social responsibility (CSR) implementation.
Design/methodology/approach
The authors used data obtained from 211 new ventures operating in Ghana. Multiple regression analysis was used to test the hypotheses.
Findings
The authors found that CSR implementation mediates the relationship between SO and venture growth. In addition, the authors found that, at higher levels of financial slack, the effect of SO on CSR implementation is attenuated. However, the results show that, at higher levels of CEO power, the influence of SO on CSR implementation is amplified.
Originality/value
To the best of the authors’ knowledge, this study is among the first to examine the mediating role of CSR implementation in the relationship between SO and venture growth and also examines two internal contingency factors (i.e. CEO power and financial slack) on this association.
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Emmanuel Adu-Ameyaw, Albert Danso, Linda Hickson and Theophilus Lartey
This study provides a large sample comparison of research and development (R&D) spending intensity in private and public firms and the extent to which these firms' unique…
Abstract
Purpose
This study provides a large sample comparison of research and development (R&D) spending intensity in private and public firms and the extent to which these firms' unique characteristics affect their R&D spending rate.
Design/methodology/approach
The study compares both private and public data from UK firms for the period 2006–2016, generating a total matched 232,029 firm-year observations, and applies a probability model technique to our large panel datasets.
Findings
The authors uncover that private firms show lower R&D spending intensity compared to their public counterparts. The authors evidence also shows that privately owned firms in the technological (non-technological) sector display higher (lower) probability of R&D spending intensity. Compared with public firms, the authors further observe that the intensity of private firms' R&D spending increases with higher internal cash flow, leverage and industry information quality. The authors results remain robust to alternative econometric models.
Research limitations/implications
Despite the findings of this study, the authors would like to point out that the use of a single country's data limits the generalisability of our findings. Thus, future studies may also consider extending this study across multiple countries.
Practical implications
A key implication of our study is that private firms are more likely to finance R&D intensity from the internally generated cash flow compared to the public ones. This stems from the fact that private firms are more likely to experience higher costs in raising external finance for innovative activities than public firms. Thus, easy access to funding for private firms is vital for enhancing R&D activities of the private firms.
Originality/value
By combining both private and public firms' datasets, the authors are able to provide new evidence to suggest that the intensity of private firms' R&D spending is dependent on internal cash flow, leverage and the industry information level. In fact, to the best of the authors’ knowledge, this is the first study that explores these relationships.
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Albert Danso, Theophilus A. Lartey, Daniel Gyimah and Emmanuel Adu-Ameyaw
This paper contributes to the capital structure literature by examining the impact of financial leverage on firm performance and also the extent to which firm size and crisis…
Abstract
Purpose
This paper contributes to the capital structure literature by examining the impact of financial leverage on firm performance and also the extent to which firm size and crisis matter in the leverage -performance relationship.
Design/methodology/approach
Using data from 2403 Indian firms during the period 1995–2014, generating a total of 19,544 firm-year observations, panel econometric methods are employed to test the leverage-performance relationship.
Findings
Drawing insights from agency theory and using Tobin's Q (TQ) as our main measure of performance, the authors uncover that financial leverage is negatively and significantly related to firm performance. The authors also observe that the impact of financial leverage on firm performance is lower for smaller firms than larger ones. Finally, the authors show that the 2007/08 financial crisis had no significant impact on the relationship between financial leverage and firm performance.
Originality/value
The paper provides fresh evidence on the impact of leverage on performance, particularly from the Indian context. This study is also among the first studies to examine the role of firm size and financial crisis in the leverage-performance relationship.
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Albert Danso, Theophilus Lartey, Samuel Fosu, Samuel Owusu-Agyei and Moshfique Uddin
This paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as…
Abstract
Purpose
This paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.
Design/methodology/approach
The paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.
Findings
Drawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.
Originality/value
This paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.
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Srinivasa Rao Kareti, Vivek Singh Rajpoot and Hari Haran Ramar
The purpose of this study was to develop a suitable module for digital conservation of traditional knowledge of medicinal plants (MPs) used by tribal communities living in the…
Abstract
Purpose
The purpose of this study was to develop a suitable module for digital conservation of traditional knowledge of medicinal plants (MPs) used by tribal communities living in the Anuppur district of Madhya Pradesh, Central India.
Design/methodology/approach
The research used a qualitative approach to gather the data of MPs through the use of literature review and field survey. Based on the acquired data, a prototype digital learning system was constructed and assessed. This study used digital learning technologies to assess the requirements for transmitting traditional knowledge of important MPs used by tribal communities so that people can absorb and conserve them.
Findings
Over time, the focus on the digital conservation of traditional MP’s knowledge has progressively increased globally. Despite the rise in this field of study, information technology methods to preserve and distribute traditional knowledge of MPs have remained a few. When adopting digital learning to maintain traditional knowledge of MPs, it was discovered that it would be necessary to engage with relevant knowledge keepers, use multimedia, and provide content in local languages.
Research limitations/implications
This study helps in conservation of important MP species that are having biologically important therapeutic compounds meant for treating various ailments. Older generations of various tribal communities mainly hold traditional knowledge of important MPs, and unless it is preserved, it will perish along with its caretakers.
Originality/value
It is worth looking at a digital platform that can help future generations to maintain traditional knowledge of MPs, as it is a dynamic and ever-changing, it must involve a digital tool for its future conservation. Current methods for maintaining traditional knowledge of MPs were ineffective and constrained by space and time.