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I develop a model revealing the interplay between a stock's liquidity and the policies and value of the issuing firm. The model shows that bid-ask spreads increase not only the firm's cost of capital but also the opportunity cost of cash, then lowering cash reserves, increasing liquidation risk, and reducing firm value. These outcomes are stronger when internalized by liquidity providers, simultaneously leading to a wider bid-ask spread. A two-way relation between the firm and the liquidity of its stock arises, implying that shocks arising within the firm or in the stock market have more complex implications than previously understood. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Behaviour-based pricing (BBP) is commonly observed in the information goods industry. Information goods providers typically sell multi-version products and have implemented different BBP strategies for their products. However, previous research on BBP is mostly limited to single-version products, which may not effectively guide practical decision-making regarding multi-version products. This gap sparks interest in how BBP can be applied to multi-version information goods. We show that the equilibrium pricing strategy depends on the quality gap between the products and how much consumers and the firm value future benefits. The firm should implement BBP for both high- and low-quality products if it values future benefits more than consumers do. If consumers value future benefits more than the firm, the firm should not implement BBP for either product. Moreover, when the firm and consumers value future benefits equally, the firm should only practice BBP for the low-quality product. Our calculations of consumer surplus and social welfare reveal that the absence of BBP doesn't always lead to the maximum benefits for consumers and society. Interestingly, if the firm values future benefits more than its consumers do, applying BBP only to high-quality products or both products may lead to higher consumer surplus and social welfare. [ABSTRACT FROM AUTHOR]

Existing studies indicated that firm debt holders can use the credit default swap (CDS) market to hedge their credit risk, and thus they would reduce their monitoring of the firms, leading to largely distressed firms shirking and increasing positive abnormal earnings accruals. Besides providing insurance, however, the CDS spreads also perform price discovery of credit risk information sought by trade creditors and potential lenders who are not protected. High absolute abnormal discretionary accruals or bad earnings quality, especially negative abnormal accruals, would lead adverse CDS price signals that are very costly to the firm. This compels the firm under nondistressed conditions to be able to improve cash holdings, cash flows, working capital, and earnings reporting quality. Our new results indicate that the channels of improvement in earnings quality are through a firm's large accounts payable and low cash holdings related to trade credit exposures. In the longer run, this leads to higher profitability and improved firm value. Thus, the generation of public information via the CDS market reduces information asymmetry and can enforce greater discipline in discretionary accounts reporting. [ABSTRACT FROM AUTHOR]

After digital platforms have become successful in the information technology (IT) industry, incumbents from traditional industries increasingly implement digital platform strategies. However, there is mixed evidence on whether these incumbents benefit from digital platform strategies. To provide systematic insights, we focus on the banking industry. With the emergence of open banking, banks have begun implementing digital platforms to unlock the innovative power of third-party developers. We conducted an event study based on the announcement of digital platform strategies in a global sample of 165 banks. We show that, on average, investors react positively to the announcements. Contrary to our expectations, this effect is more substantial for banks from emerging markets than those from developed markets. Prior artificial intelligence (AI) orientation only partly contributes to investors' favorable perception of a digital platform strategy. These results point to the complex interplay of AI orientation and digital platform strategies, yielding questions for future research. [ABSTRACT FROM AUTHOR]

Celebrity endorsement is a common advertising strategy, yet, as well-known scandals show, it is not without risk. Studies at the marketing–finance interface investigate how negative publicity surrounding a celebrity endorser affects firm value, though without determining how such events might spill over to the sponsor firms' competitors and their stock prices. To address this research gap, the authors assess the impact of celebrity endorser scandals on competitor stock returns with an event study approach. The unique sample of 121 celebrity scandals over a 35-year period reveals a contagion effect, such that competitor firms experience negative stock returns on average, though not to the same extent. According to univariate and regression analyses, the more negative the event affects the sponsor company and the more homogeneous the industry, the stronger the negative spillover effect from a scandal. These findings show that a contagion effect is a likely scenario and offer recommendations for managers regarding how they should adapt their risk management processes and communicate with their boards and shareholders. [ABSTRACT FROM AUTHOR]

[Display omitted] • The effects of GFRP policy are examined. • GFRP policy promotes environmental investment, reflecting in source prevention. • GFRP policy contributes to improving environmental quality and enterprise value. • This study employed the DID model. Responding to China's green finance policy with enterprise environmental investment (EEI) constitutes a crucial link in achieving environmental governance objectives, exerting crucial influence on the nation's green transformation and high-quality development. Taking the pilot policy of China's Green Finance Reform and Innovation Experimental Zone (GFRP) in 2017 as a quasi-natural experiment, this study systematically evaluates the effect of GFRP policy on the decisions of EEI and further explore whether the investments are used for passive end-of-pipe treatment (EOP) or positive source prevention (SP) by using firm-level data. The results indicate that GFRP policy can significantly promote EEI, and mainly reflected in SP, rather than EOP. Through potential mechanism analysis, it can be concluded that GFRP policy facilitates EEI by alleviating financial constraint, reducing agency cost, and enhancing environmental information disclosure. Heterogeneity analysis suggests that there exists asymmetry in policy effects, with greater impacts in high green finance development areas, low concentration industries and large-scale enterprises. Furthermore, micro-level performance consequences examination reveals that the enterprises' decision to increase EEI under GFRP policy not only effectively realizes energy conservation and emission reduction but also contribute to facilitating enterprise value, to achieve green transformation. This study holds significant policy implications, providing empirical evidence to policymakers for the refinement and dissemination of green finance policy, and offering valuable insights for enterprise investment and management decisions. [ABSTRACT FROM AUTHOR]

Under the background of sustainable development and high-quality development in China, it is of great significance to actively promote enterprises to practice ESG development concepts and digital transformation. This study uses a sample of state-owned companies in the Chinese capital market during the period from 2014 to 2020. The results of the research show that there is a U-shaped relationship between ESG performance and the value of state-owned enterprises. And digital transformation plays a positive moderating role in the relationship. The result of a further mechanism study indicates that ESG performance affects enterprise value by reducing the financing constraints. This study also examines the results using a dynamic panel model and endogeneity test method. Therefore, this study provides references to promote ESG practices and offers new insight into the role of digital transformation in state-owned companies. In order to pursue sustainable development and high-quality economic development, ESG practices and digital transformation should also be paid attention to in enterprises. [ABSTRACT FROM AUTHOR]

In their recent article, Theissen et al. (2023) re-examined the seminal study of Kim and Bettis (2014) on the positive relationship between firms' cash holdings and firm value. Theissen et al. (2023) improved on the original Tobin's q measure used to capture firm value and found that—in contrast to the results of Kim and Bettis (2014) –there are not decreasing but increasing returns to holding cash. Separately, Souder et al. (2024) made various methodological improvements and developed a new measure of forward-looking firm value, ultimately finding no relationship between cash holding and value at all. In this article, we combine all methodological refinements made after the original study of Kim and Bettis (2014) into a single analysis. We find that Kim and Bettis' (2014) original results are correct, despite the numerous limitations of their method. [ABSTRACT FROM AUTHOR]

We exploit Employment Non‐Discrimination Acts, Paid Family Medical Leave Acts, and Lilly Ledbetter Fair Pay Act as quasi‐natural experiments to study the value of talents. Our findings suggest that firms with larger capacity to secure and maintain talent pipelines enjoy higher valuations. We further identify a channel through which talents increase firm value: innovation. The value of talents is more significant among high innovation intensity industries in which talents exhibit their value most evidently. Our findings also indicate that talents are costly to obtain and replace. [ABSTRACT FROM AUTHOR]

We use decimalization of the tick size, which exogenously increases stock liquidity and thereby heightens blockholder governance, to identify its effect on corporate social responsibility (CSR). We find that enhanced blockholder governance after decimalization leads to lower excessive CSR performance and higher firm value. Compared to active blockholders, passive blockholders, relying on the threat of selling shares and exiting, drive our results. The inverse relationship between blockholder governance and CSR is more pronounced for firms with poor corporate governance prior to decimalization. Our evidence suggests that blockholder exit threat can serve as a governance device to alleviate agency‐driven CSR. [ABSTRACT FROM AUTHOR]

This paper first documents the impacts of property age on the operational efficiency, portfolio risk and market valuation of REITs. Based on the findings, we examine three possible explanations why REITs own older properties. Using a comprehensive property-level data set of U.S. equity REITs from 1995 to 2020, we construct a firm-level property age measure based on the age of individual properties held by REITs. Controlling for important firm characteristics, we find that REITs holding more older properties exhibit lower operational efficiency, lower firm value and higher firm risk than their counterparts. Moreover, while the stockholders do not enjoy higher stock returns, we find evidence that managers of REITs that carry more aged properties in their portfolios earn significantly higher compensation. This is consistent with agency cost associated with managerial opportunism. Furthermore, REITs that own more properties in the same locations as their headquareters and those with higher geographic concentration of properties tend to hold older properties. This finding is consistent with the hypothesis based on geographic locations of older properties. We, however, do not find evidence supporting the growth hypothesis associated with core-plus or value-add investment strategies. [ABSTRACT FROM AUTHOR]

Integrating signaling research with the institutional perspective on capital markets, we argue that, in conditions of radical technological change, investor perceptions about firm value are enhanced by the CEO's orientation toward digital technologies that exceeds the firm's industry peers. This base relationship is moderated by board characteristics so that the board members' digital expertise and knowledge diversity enhance the effect of the CEO's relative digital technology orientation on firm value. Furthermore, the monitoring power of independent board members who do not have digital expertise negatively moderates our baseline hypothesis, whereas board monitoring exerted by independent board members with digital expertise has a positive moderating effect. To test our theory, we use advanced natural language processing techniques to develop the CEO's relative digital technology orientation construct combined with a unique, hand-collected set of measures associated with board members' digital expertise and knowledge diversity in a sample of S&P 500 companies. Our article offers novel insights on how technology-related signals associated with the CEO's communications to shareholders interact with board characteristics in determining investor perceptions of the firm's value in conditions of high technological uncertainty. [ABSTRACT FROM AUTHOR]

This study investigates whether investors assign more value to actions or words when evaluating firms' digitalization efforts, with a focus on publicly listed companies in emerging Chinese stock markets over the sample period from 2007 to 2021. We employ a text-based proxy – the frequency of digital-related keywords in annual reports – and a direct measure of digital investments. Our findings indicate that while the frequency of digital-related keywords (words) does not significantly impact firm value, digital investments (actions) are positively and significantly associated with Tobin's Q. Robustness checks, using the two-stage least squares (2SLS) instrumental variable regression, Heckman two-step method, propensity score matching (PSM), firm-fixed effects, and difference-in-differences (DiD) analysis, strongly support the causal effects of digital investments on firm value. These results suggest that investors place higher value on firms' actual digital investments over mere disclosures of digital efforts, reinforcing the principle that actions speak louder than words. Consequently, we recommend that corporate managers prioritize investments in digital intangible assets to enhance their firms' market valuations. [ABSTRACT FROM AUTHOR]

In the context of increasing carbon emissions and strengthening regulatory measures, an increasing number of stakeholders are paying more attention to corporate carbon information. To further explore the relationship between the quality of carbon information disclosure and enterprise value, this study uses a sample of companies listed on the Shanghai and Shenzhen stock exchanges from 2013 to 2021. The aim is to investigate the link between the quality of carbon information disclosure and enterprise value, while also analyzing the role of green innovation in this relationship. The empirical results show that the quality of carbon information disclosure can significantly enhance enterprise value, with green innovation playing a mediating role in this effect. After robustness checks, including replacing the measurement variables and addressing endogeneity issues, the conclusions remain valid. Further analysis reveals that the effect of carbon information disclosure quality on enhancing enterprise value is more pronounced in non-high-pollution industries, non-state-owned enterprises, and firms located in eastern regions. This study provides valuable insights for future policy optimization related to carbon information disclosure and the promotion of low-carbon development in enterprises. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This paper aims to examine the effect of dividend policy on firm value for financial sector in an emerging country. Furthermore, it examines the moderating effect of IFRS adoption and the abolishment of mandatory dividend payment policy with considering the Lintner model of dividend smoothing. Design/methodology/approach: Data were collected from 111 firms listed on Borsa Istanbul in the financial sector in Turkey over 1995–2017. Using an explanatory research design, this study performs various multivariate regression techniques to investigate the proposed relationships. Findings: The outcomes demonstrate a positive and significant association between dividend policy and firm value. In addition, the relationship has strengthened after IFRS adoption, indicating that accounting information such as dividend-based ratios prepared under IFRS is more value relevant. The empirical outcomes supported the Lintner model, which is persistent with the signalling hypothesis. Moreover, the findings state that the abolishment of mandatory dividend payment in 2009 strengthened the association between dividend policy and firm value for financial institutions in Turkey. Practical implications: These results provide an insight to the investors and managers that the effect of IFRS adoption and other policy changes could be greater on the association between dividend policy and firm value. The study empirically tests Lintner model of dividend smoothing for financial firms in an emerging economy. Originality/value: This study contributes to the literature through providing vital insights on the relationship between dividend policy and firm value and empirically revisiting the Lintner model for financial sector in a developing economy, specifically Turkey. Furthermore, it addresses the influence of IFRS implementation on the association between dividend policy and firm value. These findings are robust to alternative sampling methods and to controlling for other factors which influence firm value. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to examine the relationship between Chinese female executives and corporate risk-taking the contingencies that affect this relationship. Design/methodology/approach: A integrated theoretical framework was established, on the basis of which theoretical hypotheses were developed and tested using 20,315 firm-year observations collected from China's publicly listed companies during the period 2005–2020. Data were collected from China's Shanghai and Shenzhen A-share Stock Exchanges and analyzed using a moderated regression analysis, PSM, 2SLS-IV and PSM-DID model. Findings: The empirical results indicate a negative effect of the ratio of female executives in top management team on corporate risk-taking, and this negative effect can be weakened by the social capital of board directors and the regional marketization. Research limitations/implications: The paper contributes to research on the relationship between female executives and risk-taking by considering the effect of eastern culture on female executives' business decision-making and examining the moderating factors inside and outside the firm. Practical implications: The paper illustrates the active steps that corporations can take to enhance female executives' willingness and capacity to take firm-related risks so as to improve the firm value in the long run. Originality/value: The paper explores how Chinese culture and Chinese traditional value affect female executives' decision-making on risky projects or uncertain investments. In addition, our study for the first time examines the moderating effect of board social capital as an internal factor and marketization as an external one on the relationship between Chinese female executives and corporate risk taking. The research examines the gender inequality in the work and competitive environment facing female executives in the areas of different marketization level, which would affect female executives' cognition and motivation in corporate risk taking. [ABSTRACT FROM AUTHOR]

The purpose of this study is to investigate the firm value associated with profitability and liquidity trade-off. This study is different from previous studies that focus on the trade-off between liquidity and profitability, as well as the relationship between liquidity and profitability, partially with firm value. This study examines the liquidity and profitability trade-off and is associated with firm value in one model by adding the role of sales growth to the liquidity and profitability trade-off. The data used is data from manufacturing companies listed on the Indonesia Stock Exchange, with an observation period from 2016 to 2023. The results showed that liquidity has a partial and negative impact on profitability, profitability has a positive impact on firm value, increased sales moderate the trade-off of profitability and profitability, and profitability mediates liquidity on firm value when the liquidity and profitability trade-off is moderated by sales growth. The practical implications of this study are that in making decisions regarding liquidity, sales growth is an important aspect to consider; increasing company productivity, as indicated by sales growth, is an ideal condition to increase liquidity, which means the company uses internal funding rather than external funding, which is difficult to obtain and costly, so that profitability increases and company value will increase. [ABSTRACT FROM AUTHOR]

Purpose: This study examines how corporate litigation, both securities-related and not, is affected by hedge fund (HF) activism. Design/methodology/approach: We use a difference-in-differences (DiD) method, along with propensity score matching and firm fixed effects and a comparison of HF and non-HF activists for identification. Findings: We find that companies that are targeted by HFs face operation-related lawsuits, mainly from stakeholders or competitors. This effect does not seem to be caused by targets' higher tendency to settle the cases. Our evidence shows that HF activists increase firm value for the target firms that are prone to litigation. Originality/value: Therefore, our evidence supports the idea that the higher operation litigation risks are unintended consequences of improving firm efficiency through cost savings or restructuring of target firms by the activists. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the performance implications of blockchain implementation in the supply chain and explore how blockchain functions and supply chain processes of blockchain implementation moderate the effect on firm performance. Design/methodology/approach: Using 220 blockchain implementations announced between January 2015 and December 2022, we use the event study methodology to estimate the effects of blockchain implementation on the firm value. Regression analyses are conducted to examine the moderating effects of blockchain functions and supply chain processes. Findings: First, there is a positive and statistically significant relationship between blockchain implementation in the supply chain and firm value. Second, we find that abnormal returns from blockchain implementation are higher when used with blockchain's contract automation function and applied in downstream processes, supporting the moderation effects. Originality/value: The study provides empirical evidence on the effects of the blockchain implementation on firm performance, taking into account the complexity of blockchain functions and supply chain processes. It enriches the current understanding of how blockchain implementation in the supply chain contributes to firm value. [ABSTRACT FROM AUTHOR]

The present study aims to provide valuable insights into the impact of research and development (R&D) spending on firm value, considering both short‐term and long‐term dynamics while also considering any potential asymmetries in this relationship. This work is conducted using a sample of 185 listed Indian manufacturing firms over a time span of 18 years, that is, from 2006 to 2023. Both symmetric and asymmetric autoregressive distributed lag (ARDL) are employed on a final sample of 3330 firm‐year observations to unravel the intricacies of the aforementioned relationship. Based on the empirical findings from the symmetric ARDL model, it is revealed that R&D spending positively impacts the value of firms in the long run while showing no significant effect in the short run. On the contrary, the results from the asymmetric ARDL model present interesting insights. In the short run, positive (negative) changes in R&D spending appear to reduce (increase) the value of firms. However, in the long run, positive (negative) changes tend to increase (reduce) the value of companies. The key differentiator of the study is the identification of the asymmetrical impact of R&D spending on firm value. The paper argues that while R&D spending does influence firm value, the relationship between them is not inherently symmetrical. In particular, the impact of R&D spending changes from being statistically insignificant when using symmetric ARDL estimation to becoming significant when applying asymmetrical estimation methods. The findings remain largely consistent across different subsamples and alternative measurements of variables. [ABSTRACT FROM AUTHOR]

This study investigates the impact of conservative financial reporting on corporate diversification, in order to explore whether accounting policy plays a role in mitigating agency problems associated with corporate decisions. Based on a sample of U.S. publicly listed firms in the period 2000–2017, this study initially reveals that diversification has an adverse effect on firm value. Our findings indicate that the increase in accounting conservatism leads to a subsequent reduction in the degree of corporate diversification. Additionally, the increase in accounting conservatism helps enhance the excess value attributed to diversification, suggesting that conservatism can alleviate the detrimental influence of diversification on firm value. Our results further indicate that the effect of accounting conservatism is more pronounced for firms with higher information asymmetry or poor corporate governance structure. Overall, the findings suggest that conservative accounting plays an effective monitoring role in disciplining management's corporate strategies of diversification, and therefore, benefits shareholders and capital markets. [ABSTRACT FROM AUTHOR]

This research examines how option trading activity reduces information asymmetry through the CEO's and ordinary employee's awareness of firm value and their pay related to firm performance. Our findings demonstrate that companies with more options trading activity have a higher CEO-employee pay ratio, which is consistent with the tournament theory. Option trading illustrates that both CEOs and employees understand their relevant payment based on the precise firm value. This advantage of option trading becomes weak for firms with higher profitability, for employees with more bargaining power, and for CEOs with a higher risk incentive. [ABSTRACT FROM AUTHOR]

Purpose: As the debate over CEO duality's impact on firm performance is still ongoing, the purpose of this study is to redefine CEO duality in Thai family firms and examine its impact on the relationship between earnings management and firm performance. Design/methodology/approach: This study uses a sample of 1,360 firm-year observations from listed firms on the Stock Exchange of Thailand. A fixed effect regression is used to obtain the empirical results. The results of this study are further validated using two-stage least squares estimation, subsample regression and an alternative measure of family firms. Findings: This study finds that firms with CEO duality are more likely to engage in REM, supporting Agency Theory. However, family-controlled firms with CEO duality engage less in REM in pursuit of firm performance. This study's findings highlight the potential benefits of CEO duality in family firms as a mechanism to support Socioemotional Wealth of the controlling family. Therefore, the mandatory ban on CEO duality may have unintended consequences for family firms. Originality/value: This paper provides further evidence on the impact of CEO duality on the relationship between earnings management and firm performance in Thailand's family-dominated stock market. A new definition of CEO duality is proposed, including firms where the CEO is related to the chair of the board. This boarder definition provides more comprehensive measurement compared to the traditional definition which may fail to capture the full scope of influence exerted by controlling family, as they may obscure CEO duality by appointing individuals with kinship ties to the CEO as the chair of the board. [ABSTRACT FROM AUTHOR]

This paper examines the influence of cultural diversity on the value of multinational firms. The results show that cultural diversity is negatively associated with firm value. After investigating the underlying channels, we find that the negative valuation effect of cultural diversity is driven mainly by lower cash flows. In contrast, we find insignificant evidence that cultural diversity has effects on discount rates. The negative effect of cultural diversity holds after addressing endogeneity issues. Further, the use of alternative measures of culture, different proxies for firm value and different estimation methods does not change our main result. Moreover, our results are robust when considering agency problems and the global financial crisis. Overall, these findings extend the literature on global diversification and indicate that the valuation discount is, to a certain degree, associated with cultural diversity. [ABSTRACT FROM AUTHOR]

We show that climate priorities codified in regulations significantly impact firms' access to credit, especially long‐term credit, an important financial resource required for achieving business viability and sustainability goals. Following the implementation of a prominent cap‐and‐trade programme aimed at controlling nitrogen oxides (NOx) in the United States (the NOx Budget Trading Program, NBP), manufacturers experienced decreased debt maturity structures, driven by reduced access to long‐maturity debt, but did not alter their use of short‐term debt or trade credit. The NBP's effect on long‐term credit is more pronounced for firms with higher degrees of electricity intensity, financial constraints, information frictions or rollover risk. It ultimately led to deteriorating firm value and operating performance. Increased energy costs and elevated operating leverage explain firms' reduced access to long‐term credit. Our findings highlight the potential unintended consequences of policy instruments designed to boost a specific aspect of sustainability and the complex nature of managing corporate financial and sustainability goals. [ABSTRACT FROM AUTHOR]

We explore the effects of social ties (including alumni relations, regional connections and employment affiliation) between the two signatory auditors (engagement and review auditors) on audit quality in China. We find that client firms with socially connected auditors have lower audit quality. The negative effect is more pronounced when the two signatory auditors are partners in their audit firms or when financial irregularities exist in their client firms. Conversely, this adverse effect is alleviated if the two auditors have attended elite schools or work for one of the Big 4 audit firms. We further find that social ties between the two auditors is negatively associated with firm value through impaired market confidence, while this negative relationship can be partially explained by impaired audit quality. Overall, our results indicate that the costs of the two signatory auditors' social ties outweigh their benefits. [ABSTRACT FROM AUTHOR]

We examine the impact of corporate governance on firm value by using a unique research approach 'sector‐wise analyses' by employing a data set of listed firms in Taiwan. We investigate whether the unique dynamics of each industrial sector could differently affect internal corporate governance (CG) practice. In addition, we investigate the moderating effect of block ownership on the relationships between CG and firm value. Our results show that CG and firm value relationships significantly differ across industrial sectors and conclude that the CG model is not one‐size‐fits‐all for industrial sectors—while observed a significant impact of block ownership as a moderating variable. [ABSTRACT FROM AUTHOR]

TikTok has become a useful tool for businesses eager to capitalize on the platform's expanding user base. Mothers have been using TikTok to share their experiences raising children, trying new meals, shopping, etc. Mothers are, therefore, increasingly seen as a firm's business and marketing ideal. This study empirically evaluates whether investors value the frequent occurrence of the word 'Mom' in postings or online bios on TikTok. Based on a sample of Fortune 500 companies, our results firstly imply that 'Mom' on TikTok is linked to a greater firm value. We next look into whether investors value the intersection of 'Mom' on TikTok and particular themes indicators taken directly from TikTok. The study finds that, 'Mom' only has a positive effect on firm value in companies where the themes of promotion, location, quality, and convenience are present in significant quantities. However, the positive relationship between 'Mom' and firm value is consistently significant for one theme—service—both in the high and low subsamples. Hence, companies can align with core values related to mothers' concerns and interests and explore strategic opportunities for engaging with mothers, fostering positive perceptions and support among investors and encouraging further research in this field. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this article is to analyse the impact of value propositions in business models on the development and success of a company. Indicating how important an individual strategy and vision of company development and continuous improvement of competitiveness are in business. Design/methodology/approach: The analysis is based on a review of literature on the subject as well as data obtained from an interview with the owner of the largest alpaca farm in Silesia. Findings: In the discussed cases of various business models, it was observed that a well-chosen value proposition contributes to the success of the company. It is therefore advisable to create a value proposition at the very beginning and build the business model around it. Originality/value: The article examines a successful company in terms of its operation and development. This example can serve as inspiration for other entrepreneurs. The article is addressed to all entrepreneurs who want to develop their business models based on creating innovative customer value. The value of the article lies in presenting an innovative business model that has proven effective, as evidenced by the continuous expansion of the business and the creation of new customer value propositions. [ABSTRACT FROM AUTHOR]

Under the impact of climate change, both the environment and the economy are changing rapidly, and companies must respond to this crisis when forming their business strategies. This study investigates whether the impact of company performance differs depending on the amount of its carbon emissions via research period is from 2014 to 2020 from Taiwan Economic Journal. Earnings per share and debt ratio are used as the independent variables, gross margin as enterprise value is used as the dependent variable, and carbon emission intensity ratio is used as the conversion variable. Empirical analysis was conducted using a panel smooth transition regression model. Results show that the relationship between the carbon emissions of a company and its enterprise value is nonlinear, and that at less than a specific threshold value for carbon emissions, the financial performance and enterprise value of a corporate are positively correlated. [ABSTRACT FROM AUTHOR]

The presence of a specific role, such as a sustainability committee, is crucial for enhancing environmental and social performance and increasing market value. This study aims to examine the direct relationship between sustainability committee to environmental and social performance, as well as between environmental and social performance and firm value to provide additional evidence among mixed findings from previous result. The moderating relationship of the sustainability committee given the significant outcomes in the direct relationship between environmental and social performance and firm value. Using 11 years data in Indonesia, the sustainability committee has positive significant to environmental and social performance. Social performance has positive significant to firm value while environmental does not. Additionally, sustainability committee strengthens the relationship between environmental performance and firm value while social performance is not. These findings portray the importance of sustainability committee to both leverage the environmental and social performance, as well as firm value. The Difference‐in‐Difference (DiD) analysis reveals that, following POJK No. 51/2017, sustainability committee significantly impacts environmental and social performance and firm value, though with negative way. This distinction result provides additional insight since in short‐term the sustainability role still perceived in negative ways. This study contributes to the literature by presence of the role sustainability committee, which no previous studies documented in developing country and difference governance mechanisms such as Indonesia. The limitation of data sustainability committee recommends the future study should consider the role sustainability responsibilities in other committees, identify the characteristics and performance of sustainability committee. [ABSTRACT FROM AUTHOR]

This study is designed to conduct a systematic literature review aimed at assessing the influence of environmental, social, and governance (ESG) performance on firm value. Although previous studies have explored their relationship, a comprehensive systematic review on this topic is still lacking. We conducted a detailed literature search in the Scopus and Web of Science databases and identified 73 papers published between 2016 and 2023 as the sample, covering annual trends, country and industry distribution, theoretical frameworks, proxy variables, research methods, research results, and provided direction for future research. We found a significant increase in the number of studies over the past 3 years. Cross‐country studies dominated the field, with most research adopting multi‐industry analysis, while studies focusing on a single industry were relatively rare. The stakeholder theory and agency theory were the most widely applied theories. Most studies showed that ESG performance had a positive effect on firm value, reflecting the growing importance that markets and investors placed on ESG performance and its contribution to long‐term firm growth. However, some studies reported negative or insignificant effects, noting that the effects of ESG performance varied by industry, region, and market environment. This study suggests that future research should explore the independent and interactive effects of each ESG dimension on firm value, focusing on dynamic relationships across industries and regions, using new methods and models, and incorporating moderating variables. This study provides practical guidance for firm managers and policymakers to optimize ESG practices, enhancing firm value and promoting sustainability. [ABSTRACT FROM AUTHOR]

This study examines the impact of the introduction of the euro on firm performance of non-financial firms listed on the Croatian capital market. Croatia adopted the euro as its sole legal tender on January 1, 2023, becoming the 20th member of the euro area. While the macroeconomic effects of euro adoption have been widely studied, its microeconomic implications, particularly on firm performance, remain underexplored. This research fills this gap by analyzing firm-specific determinants and their performance before and after euro adoption over 2019-2023. Using a sample of 25 non-financial companies listed on the Zagreb Stock Exchange, we employ panel data estimation techniques to evaluate the influence of euro adoption on corporate performance, incorporating variables such as firm size, leverage, firm openness or international sales, liquidity, and euro dummy variable. The results reveal that introducing the euro had a significant positive impact on firm performance, with implications for investment strategies and international competitiveness. This study is the first to investigate the euro's effect on firm performance in Croatia, offering valuable insights for policymakers and contributing to the broader literature on currency adoption and firm dynamics. [ABSTRACT FROM AUTHOR]

The proportion of exchange‐listed firms with negative earnings has increased to over 40% in recent years. Previous research shows that the valuation of these loss firms is comparably difficult due to their uncertain future earnings path. Given these valuation issues, we argue that the stocks of loss firms should be particularly prone to mispricing such that simple firm value proxies might allow the prediction of subsequent stock returns. Supporting this hypothesis empirically, we find that book‐to‐market and revenue‐to‐price positively predict the cross‐section of loss firms' stock returns. In particular, these value effects are significantly stronger compared to gain firms. Our further analyses support a behavioural mechanism for the empirical observations as the return predictability is disproportionately strong around earnings announcements and as analysts are too optimistic for loss firms with low values of book‐to‐market and revenue‐to‐price. Our analyses on short selling and option trading indicate that sophisticated investors are aware of the documented return predictability, but limits to arbitrage prevent an immediate correction of mispricing. [ABSTRACT FROM AUTHOR]

US multinational firms typically invert either through a pure form or by merging with foreign entities. Our research documents that pure inversions increase inverting firms' cost of equity, while merger inversions decrease it. These results remain robust across different measures of the cost of equity. We also demonstrate that the 2004 tax reform is ineffective in reducing US multinational firms' tendency to invert. Instead, it prompts firms to shift from pure inversions to merger inversions, which are less value‐enhancing due to their lower tax benefits. It is unlikely that the legislators had foreseen these outcomes. [ABSTRACT FROM AUTHOR]

We analyse the capital market consequences of stock market liberalisation in a quasi‐natural experiment setting, where Mainland‐Hong Kong Stock Connect Programs allow foreign investors to trade in the Chinese stock market. Utilising difference‐in‐differences estimations, we observe improved stock liquidity, driven by direct liquidity provision and indirect signals to domestic investors. Particularly notable are the effects on eligible stocks without previous exposure to foreign investors, characterised by high corporate transparency and investor protection. The resulting liquidity enhancements reduce equity costs, ultimately elevating firm value. In short, our study highlights the positive influence of stock market liberalisation on the capital market. [ABSTRACT FROM AUTHOR]

This study explores the relationship between banking uncertainty and firms' financial investments. Using data from Vietnam during 2007–2022, we find that firms tend to hold more financial investments, particularly short-term items, amid higher banking uncertainty. We conduct various sensitivity tests to demonstrate the robustness of this finding, particularly addressing endogeneity concerns with instrumental variables. Regarding the underlying mechanisms, our finding could be explained by both precautionary and profit-seeking incentives in motivating firms to invest in financial assets during uncertain times. Further analysis reveals that the uncertainty effect is weaker for firms with bank-firm relationships and firms listed on the Ho Chi Minh Stock Exchange (HOSE) compared to the Hanoi Stock Exchange (HNX). Our research also highlights that uncertainty impacts corporate financialisation more strongly during macroeconomic shocks caused by the financial crisis and the COVID-19 pandemic. Finally, we reveal that holding more financial assets is positively related to firm value, but this benefit diminishes during times of heightened banking uncertainty. [ABSTRACT FROM AUTHOR]

This research adopts an event study approach to investigate the impact of the European Union (EU)–China Comprehensive Agreement on Investment (CAI) negotiations on firm value. We emphasise two typical events during the process, i.e. the preliminary agreement and the suspension of the CAI, which result in completely distinct patterns of policy uncertainty for the EU and China. Using data from Chinese listed firms, we find that the Chinese stock market reacts positively to the preliminary agreement of the CAI but negatively to its suspension. A firm with global supply chains has better stock returns when exposed to the first event but no significant heterogeneity under the second event. We also find that these effects vary depending on the overseas experience of the CEO, firm ownership type, and whether the firm is in a high-tech industry. [ABSTRACT FROM AUTHOR]

This study aims to investigate the complex link between carbon emissions, firm value, and financial choice in regard to the GCC, a dynamic emerging economy. It also seeks to answer the question on whether the financial structure of a firm moderates the correlation between carbon emissions and firm value. We focus on analyzing data from non-financial firms registered on the GCC stock markets between 2010 and 2020. By applying the GLS technique, we assess the impact of carbon emissions on firm value and examine the manner in which a firm's financial structure either enhances or hinders this relationship. The results demonstrate that there is a strong and adverse connection between carbon emissions and corporate value, as increased emissions translate into lower corporate value. The study then moves on to emphasize the critical role that capital financing plays in mitigating the detrimental effects of carbon emissions. This is accomplished by balancing both debt and equity in terms of their proper proportions (optimal capital structure). However, excessive borrowing could have adverse consequences in terms of carbon emissions on company value. Moreover, the GMM estimator is also applied to carry out a robustness check and the results are consistent with the main findings. This study highlights the significance of financial strategy in advancing sustainability and protecting business value. These findings are supported by both stakeholder and signaling theory, proving that companies can use their capital financing to signal their dedication to sustainability. These results could be used by GCC policymakers to create rules and regulations that encourage environmentally friendly corporate activities and efforts to lower emissions. The research expands the existing literature by examining the difficulties and opportunities faced by GCC firms when combining financial strategy with environmental objectives. It may be necessary to perform additional research in regard to various circumstances and for an extended period, because this study is restricted to non-financial sectors. [ABSTRACT FROM AUTHOR]

The purpose of this study is to obtain empirical evidence of managerial ownership, institutional ownership, audit committee, and independent board of commissioner and profitability as mediation on the LQ45 Companies value. The sampling technique used purposive sampling, the research samples obtained totaled 19 companies with a research period from 2019-2023 so that there were 95 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is path analysis method. The results showed that Institutional ownership has a significant positive effect on ROA, independent board of commissioner and ROA significant effect on firm's value. The implication of this research is that companies must pay attention to that ROA, independent board of commissioner and Institutional ownership and those that can affect profitabilty and value. [ABSTRACT FROM AUTHOR]

We analyse a number of dimensions of corporate governance practices and the interrelation between them and with firm value for a sample of 160 Brazilian firms between 2011 and 2017. Our analysis is based on a set of 42 corporate governance practices recommended by the codes of good governance. We use principal component analysis to identify a number of corporate governance dimensions. We first identify practices that are most complied with, which are related to transparency and managers' incentives. Our findings confirm that the level of firm adherence to corporate governance practices is positively related to firm value. More interestingly, we find substantial variability among the corporate governance dimensions: while seven of them are positively related to firm value, five dimensions seem to have a negative relationship. We also show that the effectiveness of corporate governance dimensions is contingent on firm characteristics such as ownership concentration, profitability, and size. On the whole, our results bear out the multifaceted nature of corporate governance, such that there are no universal practices which exert unequivocal effects on the value of all firms. [ABSTRACT FROM AUTHOR]

Purpose: This study elucidates the interactive relationship of sustainability assurance (SA) quality with corporate environmental sustainability performance (CESP) and firm value and explores the moderating impact of CESP on the SA quality–firm value relationship. Design/methodology/approach: The sample comprises 320 firm-year observations of 40 companies listed on the Cotation Assistée en Continu (CAC 40) from 2010 to 2019. The authors use the simultaneous equations model to capture the CESP and SA quality–firm value relationship and apply the three-stage regression and generalised method of moments approaches to address possible endogeneity. Findings: The results show that CESP, as assessed by International Organisation for Standardisation (ISO) 14001 certification, has a significant positive effect on firm value, the relevance of which implies that in the case of good environmental performance, society's perception of a firm is much more favourable; consequently, the firm is likely to be rewarded with a premium value in capital markets. In addition, environmental performance has a stronger interaction with SA quality, acting as a moderator variable; thus, greater SA quality signals credibility owing to increased eco-efficiency. The authors interpret their findings within a multi-theoretical framework that draws insights from legitimacy, stakeholders and signalling theoretical perspectives. Originality/value: This study contributes to the literature by re-examining the relationship between SA quality and firm value. It also provides new evidence of the moderating effect of CESP on the SA quality–firm value nexus. Specifically, this study explores the joint effects of credibility and eco-efficiency on market confidence in sustainability information. The authors use a simultaneous equation model to capture the reciprocal association between SA quality and firm value, whereas prior studies on SA quality and market performance have frequently used single-equation regression. The authors also find that CESP positively moderates the relationship between SA quality and firm value. Including CESP and exploring the moderating impact of eco-efficiency on the SA quality–firm value relationship is a novel approach. [ABSTRACT FROM AUTHOR]