Does CEO gender matter for bank risk?

This paper addresses the relation between CEO gender and bank risk. We exploit a unique dataset of 365 Polish cooperative banks, 42% of which are run by female CEOs. We find that banks headed by female CEOs are less risky: they report higher capital adequacy and equity to assets ratios. Credit risk in female-led banks is not different from male-led banks, and therefore higher capital adequacy does not stem from lower asset quality and is likely to be linked to higher risk aversion of female CEOs. Our evidence supports the view that women are more risk averse bank CEOs than men. Our findings suggest that gender quotas in bank boards can contribute to reduce risk-taking behavior.     

Board gender diversity and environmental,social, and economic value creation: Does family ownership matter?

Prior literature on firm value creation for stakeholders has oversimplified and narrowed the concept of value down to “economic returns.” Although economic returns are fundamental to a firm's core stakeholders (i.e., shareholders), other legitimate stakeholders want “value” beyond economic returns. We define stakeholder value as the financial and nonfinancial returns a firm can offer to its legitimate stakeholders, and empirically investigate whether board gender diversity (BGD) improves our multidimensional measure of value. Using Thomson Reuters' ASSET4 data for U.K.‐listed firms available from Eikon for the period 2007–2017, we report a significant positive relationship between BGD and stakeholder value creation. In particular, BGD increases social and environmental value creation in addition to economic returns. Furthermore, our results suggest that even though gender‐diverse boards are associated with stakeholder value creation in family firms, this is only conspicuous for environmental value creation. The findings suggest that although female directors cater to the interests of broader stakeholder groups, family ownership causes them to mainly focus on environmental stakeholders. The study provides important implications for regulators, stakeholders, and academic scholars.     

Does bank capitalization matter for bank stock returns?

We examine US bank capitalization and its association with bank stock returns, and find that the book- and market-based capital ratios show different patterns. Fama-MacBeth regressions and portfolio analyses suggest that banks’ market-based capital ratios are negatively associated with banks’ stock returns during the (tranquil) 1994–2007 period while book-based capital ratios are positively associated with banks’ stock returns during the (turbulent) 2008–2014 period. These results suggest that the effect of bank capitalization on bank stock returns depends on the capital measure used and the period considered.     

Does environmental law enforcement matter for financial reporting quality?

The Chinese government’s recent Environmental Inspection Program (EIP) eliminates a layer of regulatory actions and holds local government officials accountable for enforcement of environmental laws. We examine two aspects of the impact of the EIP on financial reporting quality. First, we derive a simple analytical model to show that the level of earnings management (EM) depends on the cost and probability of EM detection. This increase in environmental law enforcement (due to the EIP) raises the cost of environmental violation to a firm and managers. To respond to the increased costs, a firm engages in less EM. Second, consistent with the model prediction, we find firms subject to the EIP engage in less EM than otherwise equivalent firms located in non-EIP jurisdictions. The effect of the EIP on EM is more pronounced for firms with adverse agency problems and poor internal controls. Additional analysis suggests that air quality level is a moderating factor for the impact of the EIP on EM. Collectively, using the natural experiment of the EIP, we find a new determinant of EM. Environmental law enforcement deters EM and enhances financial reporting quality.     

Impact of high-speed railway on urban resilience in China: Does urban innovation matter?

Based on calculating the urban resilience index from five aspects of economy, society, institutions, infrastructure, and ecology by adopting the entropy method, this study applies the time-varying DID model to systematically examine HSR's impact on China's urban resilience, on basis of which its heterogeneities and the mediating effect of urban innovation are also quantified. The findings reveal that: (1) HSR can significantly promote China's urban resilience, as supported by various robustness tests. (2) HSR can significantly improve economic and institution resilience of cities, but does not play a significant role on social resilience and infrastructure resilience, and has a negative effect on ecological resilience. (3) The driving effects of HSR on the resilience of core cities, large cities, and non-resource-based cities are more significant. (4) Urban innovation is an important channel through which HSR impacts urban resilience. The conclusions of this study can offer useful insights for China's future HSR planning and resilient cities construction.     

Green innovation to respond to environmental regulation: How external knowledge adoption and green absorptive capacity matter?

Although environmental regulations have been considered as important forces of conducting green innovation, how and under what conditions they affect green innovation are still unclear. Drawing from institutional theory, this study used survey data from 237 manufacturing firms in China to investigate how two dimensions of environmental regulations (i.e., command and control regulation and market‐based regulation) affect green product innovation and green process innovation. Further, this article examined the mediating role of external knowledge adoption and the moderating role of green absorptive capacity. Our results indicate that both command and control regulation and market‐based regulation have positive influences on external knowledge adoption. External knowledge adoption fully mediates these positive relationships. In addition, green absorptive capacity only strengthens the positive impact of market‐based regulation on external knowledge adoption. Our study contributes to institutional theory and green innovation literature.     

Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation?

Green innovations are being deployed in manufacturing industries to promote organisational sustainability by embracing sustainable development practices (SDPs). However, little is known about how corporate green innovation (CGI) is influenced by the knowledge management process (KMP). To fill this gap, we have developed a multidimensional framework based on the resource-based view (RBV) theory that provides a foundation for sculpturing the process by which KMP was observed to capture and sustain CGI through SDPs. Data were collected from 393 respondents of large- and medium-sized manufacturing corporations in Pakistan and analysed using partial least squares structural equation modelling (SEM) and fuzzy set qualitative comparative analysis (fsQCA). This study provides several key findings. First, KMP dimensions (acquisition, dissemination and application) significantly improve the SDPs' dimensions (environment, economic and social). Second, SDP dimensions play a significant role in achieving CGI. Third, the implementation of SDPs partially mediates the relationship between the KMP and CGI. Furthermore, the fsQCA results signify the robustness of all integrated constructs. Our results demonstrate that investing in and adopting the latest technologies and sustainable practices are not only valuable for long-term success but the soft concerns such as managing organisational knowledge are also vital in the current knowledge-based economy. Finally, in light of our findings, theoretical and managerial implications, with propositions for future studies, have been provided at the end of the paper.     

Does it matter where to conduct training? Accounting for cultural factors

Training is an important function of human resource management. However, prior research about the relation between culture and training mostly focuses on a particular region, uses a few single case studies or examines only one or a few dimensions of culture at a time. We believe a more holistic and systematic approach is warranted. To address this need, we provide a theoretical framework which proposes that cultural factors affect training effectiveness via (1) contents and methods, (2) selection of trainers, and (3) learners' motivation, valence and learning style. In the context of cross-cultural training, we also reason that the congruence between parent and host culture influences training process and effectiveness. Implications for practice and future research are discussed.     

Does social influence turn pessimistic consumers green?

The current research investigates the role of social influence on pessimistic consumers' approach toward organic food consumption using the self-focused regulations theoretical framework. It also examines the mediating and moderating role of environmental concern and social influence on the proposed relationships, respectively. An e-survey was conducted on 300 Indian consumers. The findings reveal that pessimistic consumers do not typically consume organic food. However, they have a strong concern for the environment, which, in turn, is likely to change them into optimistic consumers who begin to consume organic foods. Further, social influence significantly motivates pessimistic consumers to adopt organic foods and reduces the concern-behavior gap. The study provides significant implications for organic food marketers and retailers.     

Reshoring: Does home country matter?

The role of the country, either home or host, in firms' internationalization has been widely analysed in the International Business field. A large number of studies have shown that home country shapes many aspects of firms' internationalization processes such as investment decisions, location selections, and entry modes. However, these studies mainly focus on the firms' foreign expansion. Little is known about the relations between firms’ home country and reshoring processes. This paper aims to analyse whether and how reshoring projects are different across countries, thereby further exploring the underlying home country-related factors contributing to reshoring peculiarities. By using a dataset including 529 cross-industry reshoring projects developed by companies headquartered in five countries (i.e., US, Germany, UK, France, and Italy), the study shows that these projects differ in terms of industry, entry mode, firm size and motivations. Thus, reshoring turns out to be a phenomenon where each country has its own peculiarities. The research further sheds light on the possible institutional, cultural/cognitive and industry/resource-related factors underlying these specificities.This study contributes to both reshoring and international business literature by highlighting how reshoring differs across countries. It also provides policy and managerial implications, at a time when several governments are considering the economic and employment potential of this phenomenon.     

Does size matter for port coopetition strategy? Concept,motivation and implication

Coopetition is one of the emerging strategies for ports to react towards the rapidly changing market environment. Having this strategy in action, ports will simultaneously compete and cooperate to achieve commonly interesting goals among players involved. Several ports in the Hamburg–Le Havre range have already decided to use such coopetitive strategies. The literature, however, shows that there exist a number of case-specific motivations for having employed this strategy. The aim of this paper is to investigate the motivations for the ports of Flanders (Antwerp, Zeebrugge, Ghent and Ostend) to choose coopetition. These four Flemish ports recently agreed to collaborate after several years of negotiations. It was known that the large port of Antwerp was more reluctant to collaborate with the smaller ports: Zeebrugge, Ghent and Ostend. This fact does naturally lead us to consider whether the size of port is a factor having an impact on the coopetitive strategy. The current paper attempts to examine the possible impact of size difference on the motivations for ports to opt for coopetition, within a framework of coopetition motivations based on a literature review. From a qualitative analysis on the matter, the paper concludes that size is not an important factor for the motivations to establish coopetition since ports are mainly aimed at achieving a win–win situation. Other factors, such as similarities in the services offered and competition level, look more influential. Nevertheless, the size difference among the ports seems to have an impact on the choice of the type of coopetition and on the willingness of the ports to adopt this strategy. Finally, the paper indicates that it is beneficial for all the ports to investigate the use of coopetition as a way of expanding the network of logistics services.     

Does school ownership matter? An unbiased efficiency comparison for regions of Spain

The programme for international student assessment (PISA) 2006 Report (OECD, PISA 2006: science competencies for tomorrow’s world, Organisation for Economic Co-operation and Development, Paris in 2007) showed significant differences among Spanish students attending publicly financed schools. Publicly financed schools include entirely public schools and schools that are privately managed but publicly funded. Families with a lower socioeconomic status may self-select into public schools, so a direct efficiency comparison between the two school types could lead to flawed conclusions because of the possible school selection bias. In this paper, we suggest using a propensity score matching approach in order to correctly analyze the impact of school ownership on student performance. After tackling the self-selection problem, we use a stochastic parametric distance function framework to compare student efficiency and productivity in both school types across ten Spanish regions using PISA 2006 data. Furthermore, we propose two original measures to analyze the impact of school ownership on academic performance across regions: the average treatment effect on the treated on the production frontier and the average treatment effect on the treated assuming school inefficiency. We find that, on average, private government-dependent schools are more productive than public schools, although efficiency results across regions are highly divergent.     

Assessing Ricardian equivalence for the New Member States: Does debt-neutrality matter?

Using a structural model based on dynamic optimizing agents, we empirically test the Ricardian equivalence proposition (REP) for 11 New EU-Member States (NMS). We extend the basic model by including the government budget constraint, thus being able to evaluate whether individuals take the evolution of public debt into account. In the basic setting we cannot reject the validity of the REP for four NMS, in the extended model the relevance of the REP changes for six countries, implying that the development of government debt and long-term sustainability of public finances matters with regard to the validity of the REP.     

How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition

Increasing regulatory obligations to adapt and execute environmentally friendly operations make it critical for businesses to pursue strategies that can strengthen their competitive edge in the market. Academics and practitioners alike have recently gravitated toward exploring how knowledge acquisition activities might improve business outcomes. To address this growing research interest, this study investigates the critical roles of green knowledge acquisition in enhancing green knowledge management and green technology innovation activities in improving corporate environmental performance, positioning resource commitment as a moderator. The research model has been assessed using structural equation modeling with survey data from 283 Indian manufacturers, demonstrating that green knowledge acquisition significantly impacts green knowledge management and green technology innovation. The statistical findings also show that green technology innovation acts catalyzes the translation of green knowledge management into improved corporate environmental performance. The results demonstrate that resource commitment moderates green knowledge acquisition's interaction with green knowledge management and green technology innovation, providing practical insights enabling managers to focus on planning, allocating, and budgeting resources for effective green practices that can contribute to improving corporate environmental performance.     

Does revamping Japan's dual labor market matter?

This paper argues that Japan's excessive labor market duality can reduce Total Factor Productivity (TFP) due to a negative impact on non-regular workers’ effort and on firms’ incentives to train them. The paper then empirically studies the determinants of labor market duality. The main result of the paper is that the level of employment protection affects duality. In particular, a higher level of employment protection of regular workers increases duality, while a higher level of protection of temporary workers reduces it. On the basis of this result, the paper also discusses some reform options to address Japan's labor market duality.     

Firm leverage decisions: Does industry matter?

We use a standard capital structure mode l to investigate the firm leverage decisions of 1620 companies listed in the Australian Securities Exchange (ASX) across a span of 13 years (2000–2012), dividing the sample into mining and other industries (non-mining). We also test for significant differences in leverage decisions between these two groups by applying a dummy variable approach. Our findings show that fundamental differences exist between mining and non-mining companies when making leverage decisions. We find evidence that mining firms are more sensitive to profitability and asset tangibility where neither profitability nor asset tangibility has significant association for non-mining firms. Overall results suggest that industry-type does matter for firms making leverage decisions.     

Modeling the dynamic linkage between financial development,energy innovation,and environmental quality: Does globalization matter?

In the modern era of the wave of globalization, financial development is leading toward a higher rate of economic expansion and promoting energy innovation around the globe. Nevertheless, environmental impact of financial development has preoccupied government officials to circumvent adverse impact on environmental quality. Thus, this paper examines the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990–2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries. To obtain robust and unbiased results, this study utilizes Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimator that counters the issue of heterogeneity and cross-sectional dependence. Empirical evidence suggests that financial development promotes energy innovation and improves environmental quality. Globalization also has a long-term relationship with energy innovation and reduces greenhouse gas (GHG) emissions. Moreover, findings validate the environmental Kuznets curve for OECD countries in the significance of financial development, globalization, and energy innovation.     

How can organizations use wikis for innovation?

Wikis were first developed over 15 years ago. Research has shown that organizational or corporate wikis are sustainable and can be beneficial to organizations particularly in improving work processes, collaboration and knowledge management. However, there has been little research done to show how organizations can use wikis to support innovation processes. To bridge this gap, this paper explores how wikis can be used in different stages of innovation. We review existing literature as well as analyze case studies of wikis deployed in four organizations in order to highlight how wikis can be used to address challenges of knowledge management and collaboration in different stages of innovation from idea generation to commercialization. In particular, we propose a model that explains how wikis require a clear purpose for their use, a culture of collaboration, and integration within a formal innovation process.     

Adopting sustainable innovation: what makes consumers sign up to green electricity?

This paper investigates what encourages consumers to adopt a green electricity tariff. When people decide to adopt an innovation, such as green electricity, they consider not only functionality, usability, costs and intended outcomes, but also what the innovation means to them, for example, the way it reflects their identity, image, memberships, values and norms. The study reviews the theoretical frameworks of innovation adoption and consumption, and cognitive and normative behaviour, relevant to consumer adoption of pro‐environmental innovations, and develops a research framework. Through focus group discussions, a questionnaire survey with 103 respondents and an interview with 10 people, the study finds that consumers sympathetic to environmental issues do not necessarily adopt green electricity. This is due to lack of strong social norms and personal relevance, inconvenience of switching, uncertainty about the quality of green electricity and lack of accurate information. The implications of these findings for strategy, policy and future research are explored. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.