Authors:Petra Taušl Procházková, Marta Nosková, Kristýna Machová, Veronika Velíšková Pages: 1396 - 1415 Abstract: Social enterprises have become a natural part of the economy. Their importance is significantly increasing, as well as the need to evaluate their performance. There are different points of view on the indicators and methods used to evaluate their performance and they often lack simplicity and are costly and time consuming. Thus, this study aims to identify and discuss performance evaluation indicators for social enterprises with particular focus on identifying a set of indicators that might be applied without placing high demands on each social enterprise. A two-phase approach was adopted and applied in the Czech social entrepreneurship environment. First, the Delphi technique was used to get a set of indicators for each of the areas of the triple bottom line principles. Consequently, an empirical examination of these indicators using a set of social enterprises was conducted. Final results were determined using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). As a result, a set of twelve indicators that cover social, economic, environmental and local areas are proposed. These indicators reflect the opinions of experts in the field as well as their practical usefulness, which is discussed at the end of the paper. PubDate: 2021-10-15 DOI: 10.3846/jbem.2021.15629 Issue No:Vol. 22, No. 6 (2021)
Authors:Dmitriy V. Chulkov, John M. Barron Pages: 1416 - 1435 Abstract: The escalation of commitment process involves a decision-maker continuing commitment to an investment after receiving negative information. This study develops a principal-agent model to explore how escalation decisions are linked with departures of CEOs from the position. With asymmetric information, a CEO has an incentive to conceal prior decision errors by escalating commitment to failing investments and leaving the firm before the outcome of investment decisions is disclosed publicly. Results of empirical analysis based on a sample of over 3,000 US firms are consistent with the theory and demonstrate that firms’ reporting of low financial performance relative to their industry as well as initiation of new discontinued operations are preceded, and not followed, by unplanned CEO departures. PubDate: 2021-10-15 DOI: 10.3846/jbem.2021.15532 Issue No:Vol. 22, No. 6 (2021)
Authors:Mila Kavalić, Milan Nikolić, Sanja Stanisavljev, Dejan Đorđević, Mladen Pečujlija, Edit Terek Stojanović Pages: 1436 - 1455 Abstract: In this paper the impact and predictive effects of knowledge management on financial performance are analysed. The research also includes an analysis of the moderating effects of two moderators (National Origin and Enterprise Size) and their relationship. The data was gathered by interviewing 520 managers from manufacturing companies operating in Serbia. The most important conclusions of the research are: 1. High levels of knowledge management positively influence business performance, quality and competitiveness. 2. Financial performance is mainly influenced by the dimensions connected to the effects of knowledge management regarding its implementation and protection and the acquisition of competitive advantages. 3. Knowledge management strongly influences the market aspects of business, but also the increase of fixed assets. 4. Knowledge management has a slightly greater impact on financial performance in foreign enterprises (operating in Serbia) compared to domestic (Serbian) enterprises. The situation is similar when comparing medium and large enterprises (a higher impact) with small enterprises (a smaller impact). 5. The greatest effects are achieved when an effective organizational structure is in place, when the organization protects its knowledge, when it manages to materialize the knowledge gathered in the form of the efficient application of knowledge. PubDate: 2021-10-15 DOI: 10.3846/jbem.2021.15540 Issue No:Vol. 22, No. 6 (2021)
Authors:Chun Guo, Wunhong Su, Xiaobao Song Pages: 1456 - 1475 Abstract: This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers’ trade credit on customers’ trade credit, indicating that firms with higher suppliers’ trade credit have lower customers’ trade credit. Moreover, suppliers’ trade-credit substitutes customers’ trade credit by alleviating financing constraints. Customer concentration weakens the substitution financing relation. Finally, the substitution financing effect of customers’ trade credit on bank credit is more pronounced than that of suppliers’ trade credit. As exogenous policy shock, the capital market liberalization has no significant impact on the substitution financing relation between heterogeneous trade credits. This study reveals that trade credit is heterogeneous rather than homogeneous. The substitution financing effect also exists in trade credit inside, which expands the existing literature’s understanding of trade credit and the substitution financing theory’s connotation. PubDate: 2021-10-19 DOI: 10.3846/jbem.2021.15608 Issue No:Vol. 22, No. 6 (2021)
Authors:Natalia Samoliuk, Yuriy Bilan, Halyna Mishchuk Pages: 1476 - 1491 Abstract: The aim of the article is to study the relationship between vocational training costs and economic benefits at different levels of economic relations. In the structure of labour costs in the EU, there was the highest share of vocational training costs in Ireland (2.79%), Great Britain (2.53%), France (1.51%), which is reflected in the economic success of these countries. A comparison with Ukraine, which has European integration intentions, confirms that the underestimated role of investing in lifelong learning has relevant links to economic performance. This study at the enterprise level (based on the survey of 356 employees) found that higher costs of vocational training are a sign of profitable enterprises. At the same time, employees’ interest in short-term training programs is higher, which they obviously assess from the standpoint of higher personal economic benefits in the short term. At the same time, the analysis performed by means of the Fechner correlation coefficient confirms the existence of a positive impact of vocational training costs on changes in the main macroeconomic benefits indicator – GDP per capita. This allows drawing conclusions about the need to develop professional training programs for staff as one of the drivers of macroeconomic development. PubDate: 2021-10-29 DOI: 10.3846/jbem.2021.15571 Issue No:Vol. 22, No. 6 (2021)
Authors:Waqas Tariq, Muhammad Usman, Adeel Tariq, Robina Rashid, Junming Yin, Mumtaz Ali Memon, Muhammad Ashfaq Pages: 1492 - 1511 Abstract: The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence. PubDate: 2021-10-29 DOI: 10.3846/jbem.2021.15583 Issue No:Vol. 22, No. 6 (2021)
Authors:Małgorzata Dziembała, Sylwia Talar Pages: 1512 - 1530 Abstract: The aim of the paper is to answer the overriding question what is the role of ICT in implementation of smart specialization (SS) in EU regions (NUTS2 level)' This role can be dual and ICT is considered in this study both as an invention which has led to the emergence of new sector, and from the perspective of general purpose technology (GPT) properties where ICT plays the role of input in innovation process. There are used following methods and techniques: desk research, descriptive statistical analysis, the correlation measure and Hellwig’s method of taxonomic analysis. The main findings indicate that in practice SS in ICT is not focused on development ICT as invention and is not based on readiness to usage of ICT as GPT. However, the abilities of regions to take advantage of ICT as a driver of innovation (as GPT) are materially related to specialization in the ICT sector (development ICT as invention). The findings bring some improvements by evidence-based policy making. The research contribute to the better understanding of the innovation determinants during digital transformation and especially the base of specialization in ICT as GPT under SS assumptions. PubDate: 2021-10-29 DOI: 10.3846/jbem.2021.15324 Issue No:Vol. 22, No. 6 (2021)
Authors:Marius-Sorin Ciubotariu, Marian Socoliuc, Veronica Grosu, Svetlana Mihaila, Cristina Gabriela Cosmulese Pages: 1531 - 1550 Abstract: The aim of the paper is to provide an overview of the sensitivity in terms of the preference for using the integrated reporting quality (IRQ) based on the reporting companies’ field of activity. The study focusses on designing a sensitivity analysis relying on the most relevant financial and nonfinancial indicators as required by the stakeholders. They were adjusted by the key factors for the IRQ such as the social, natural, human and intellectual capital. The study has been designed based on the upgrade and in compliance with the connectivity principle as required by the IIRC. The data was collected from the IR examples Database between 2015–2017. The results suggest that based on sensitivity function value, those sectors of activity such as transportation and infrastructure, services and trade have a higher sensitivity preference for the IR due to the quantification of the stakeholders’ interest in terms of performance positive trend indexes. Making use of regressive techniques, the authors undertook an econometrical model for the evaluation of the IRQ that may become very useful for those companies that intend to set in place a sustainable business as it provides them the opportunity of measuring the IRQ. PubDate: 2021-11-10 DOI: 10.3846/jbem.2021.15601 Issue No:Vol. 22, No. 6 (2021)
Authors:Mihaela Mocanu, Laura-Gabriela Constantin, Bogdan Cernat-Gruici Pages: 1551 - 1576 Abstract: Sustainability bonds enable capital-raising and investment for those projects that have both a positive impact on the environment and a positive social outcome. This study examines the stock market reaction to the announcement of sustainability bonds issuance. The present research is designed as follows: first, an event study that examines the market reaction and second, a highlight of drivers influencing this market reaction via a linear regression with cluster-robust standard errors. Overall, small and negative sample-wide reactions to sustainability bond issue announcements were found. Additionally, the study finds significant negative abnormal returns before the publication in June 2018 of The Sustainability Bond Guidelines by the International Capital Market Association. Specifically, the size of the bond issue, whether the bond is callable or not, the announcement of the issue as a single event in a day, the company’s Return on Assets, the firm’s social disclosure score, and the issuance of the bond prior or after June 2018 are statistically significant factors that influence the stock returns of issuers. PubDate: 2021-11-10 DOI: 10.3846/jbem.2021.15372 Issue No:Vol. 22, No. 6 (2021)
Authors:Mohan Saini, Denisa Hrušecká Pages: 1577 - 1592 Abstract: This research papers aims to evaluate the impact of two major institutional indexes logistics performance index (LPI) and ease of doing business (EODB) along with logistics cost (LC) on the economic development (Gross domestic product – GDP per capita). The variables selected for the research study provides the comprehensive impact and forms the core of the economy for any country. Top seven economies of the world (China, France, Germany, India, Japan, United Kingdom and USA) along with Czech Republic, Singapore and Slovenia have been selected for this analysis. Mid-sized Economies of Czech Republic, Singapore, Slovenia have been selected for the regional balance of Asia and Europe and for cooperative results. A preliminary analysis of Pearson correlation analysis and detailed fuzzy qualitative comparative analysis have been opted for the study. The results illustrate that LPI is the core component for displaying the positive results on economic development. LC and EODB have displayed mixed results and will be studied in future research for identifying their impact on economic development. Future research will incorporate indexes such as global competitive index, innovation index for the evaluation of the combined impact on economic development. PubDate: 2021-11-15 DOI: 10.3846/jbem.2021.15586 Issue No:Vol. 22, No. 6 (2021)
Authors:Thi Diem Chau Le, Judit Oláh, Miklós Pakurár Pages: 1593 - 1613 Abstract: Supply chain structure of global enterprises tend to develop dramatically. These lead to more difficulty for enterprises in managing and building information sharing systems. Thus, it is a necessary for enterprises to limit the scope of the information sharing system by selecting essential partners. The aims of this study are to quantify the cooperation of each supply chain member, and evaluate and visualize their effects in information sharing systems in order to support policymakers in making their decisions in supply chain management. The network analytical method in network science is applied to indicate the relationship between supply chain members and present a comprehensive supply chain visually. Moreover, Motor Corporation’s topology in Japan is used as a representation of global enterprise features to analyze the relationships between supply chain members. The data for Motor Corporation is secondary data which includes the number of suppliers, manufacturers, and dealers, and the interaction among them. Data is collected and verified from reputable websites such as www.marklines.com, or www.statista.com. As a result, this study contributes by applying a new method for not only determining the impact levels of supply chain members but also giving visual descriptions of impact levels on the large-scale information sharing system. PubDate: 2021-11-18 DOI: 10.3846/jbem.2021.14965 Issue No:Vol. 22, No. 6 (2021)
Authors:Shweta Agarwal, Shailendra Kumar, Utkarsh Goel Pages: 1614 - 1632 Abstract: There are numerous studies that examine the impact of social media on the stock market performance but there is a paucity of such evidences from the emerging economies. Today many multinational banks and other financial conglomerates from the developed countries are expanding their operations to the emerging markets, known for their rapid growth. The businesses in developed countries prefer using social media to reach out to their stakeholders. This might be a challenge as emerging markets are very different from the developed markets in terms of infrastructure and stock market development. This study performs the sentiment analysis of the tweets about the Indian companies that are a part of Nifty50 or any sectorial index, for a period of 15 months. The results from the Granger-causalty tests indicate that the Twitter sentiments have a significant relationship with the indices related to the banking and financial sectors of the Indian stock markets. Results from the Impulse Response Function reveal that, on the index returns, the impact of the negative sentiments stays for a longer period of time than the positive sentiments. This study would help businesses use social media effectively for information sharing and dissemination in the new environment. PubDate: 2021-11-18 DOI: 10.3846/jbem.2021.15619 Issue No:Vol. 22, No. 6 (2021)
Authors:Yudi Yang, Yong Qi, Shuo Yang Pages: 1633 - 1654 Abstract: This study tests how different types of government funding affect the recovery of zombie enterprises in the manufacturing sector of China. The results show that funding for production and innovation can revive zombie enterprises in expanding industries, while funding for interest cannot. Furthermore, funding for production and innovation can share costs, increase investment in selling or innovation, and promote the scaling down of businesses through external governance effects, helping zombie enterprises to recover. Finally, none of the funding types can revive zombie enterprises in contracting industries; these can recover only through access to larger overseas markets. PubDate: 2021-11-19 DOI: 10.3846/jbem.2021.15334 Issue No:Vol. 22, No. 6 (2021)
Authors:Yuchen Gao, Si Zhang, Yimei Hu Pages: 1655 - 1678 Abstract: R&D subsidized loans (tiexi daikuan) is an effective market-driven solution to promote firms’ R&D outputs, including patent applications and new product sales, in China. However, empirical examination on the effects of subsidized loans is insufficient. Using a panel data of manufacturing firms of Jiangsu Province from 2010 to 2014, the study investigates the effects of R&D subsidized loans on firms’ R&D outputs in comparison to that of the direct R&D grants. The results show that R&D subsidized loan recipients significantly outperform those who only receive direct grants in terms of new product sales. Meanwhile, subsidized loans inhibit the recipients’ exploratory patent applications and discourage R&D activities with higher risks. This study contributes to R&D subsidy literature and extends the knowledge in the roles of different types of public sponsorships on firms’ innovation. PubDate: 2021-11-19 DOI: 10.3846/jbem.2021.14581 Issue No:Vol. 22, No. 6 (2021)
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