Diffusion patterns in small vs. large capital markets-the case of value-based management

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

We empirically study the diffusion of value-based management (VBM) in small capital markets. Specifically, we analyse the factors that influence VBM adoption in Danish-listed firms. Based on a hand-collected data set covering 665 firm years from 2002 to 2010, we find that the same factors influence the diffusion of VBM in both large and small capital markets. Specifically, we find that large firms with a higher percentage of institutional ownership and with a CEO whose education is business-related are more likely to adopt VBM. Additionally, the control variables reveal a significant positive correlation between VBM adoption and leverage, capital intensity, liquidity, and the characteristics of top executives. Furthermore, we find that manufacturing and utility firms are more likely to adopt VBM than service or trade firms. Contrary to the mainstream opinion, we contribute to the literature that findings from large capital markets appear to be transferable to firms in small capital markets.

Original languageEnglish
JournalManagement Revue
Volume34
Issue number1
Pages (from-to)1-29
Number of pages29
ISSN0935-9915
DOIs
Publication statusPublished - 01.01.2023

Bibliographical note

Publisher Copyright:
© (2023), (Nomos Verlagsgesellschaft mbH und Co KG). All Rights Reserved.

    Research areas

  • Management studies - capital markets, Denmark, diffusion theory, ownership, risk, shareholder value, upper echelons, value-based management

Recently viewed

Projects

  1. XR2ESILIENCE

Publications

  1. A MODEL FOR QUANTIFICATION OF SOFTWARE COMPLEXITY
  2. Mathematical relation between extended connectivity and eigenvector coefficients.
  3. Artificial Intelligence in Foreign Language Learning and Teaching
  4. Assembly Theory for Restoring Ecosystem Structure and Functioning
  5. A tutorial introduction to adaptive fractal analysis
  6. Early Detection of Faillure in Conveyor Chain Systems by Wireless Sensor Node
  7. Temperature control in Peltier cells comparing sliding mode control and PID controllers
  8. Assessment of university students’ understanding of abstract binary operations
  9. An Adaptive and Optimized Switching Observer for Sensorless Control of an Electromagnetic Valve Actuator in Camless Internal Combustion Engines
  10. What´s in a net? or: The end of the average
  11. Obstacle Coordinates Transformation from TVS Body-Frame to AGV Navigation-Frame
  12. Top-down contingent feature-specific orienting with and without awareness of the visual input
  13. A Sliding Mode Control with a Bang-Bang Observer for Detection of Particle Pollution
  14. Kalman Filter for Predictive Maintenance and Anomaly Detection
  15. Applications of the Simultaneous Modular Approach in the Field of Material Flow Analysis
  16. Active learning for network intrusion detection
  17. Explaining and controlling for the psychometric properties of computer-generated figural matrix items
  18. Transductive support vector machines for structured variables
  19. Object-Oriented Construction Handbook
  20. Aspect-oriented software development
  21. Machine Learning and Data Mining for Sports Analytics
  22. A geometric approach for the design and control of an electromagnetic actuator to optimize its dynamic performance
  23. The Lifecycle of "Facts'': A Survey of Social Bias in Knowledge Graphs
  24. Analyzing the Influence of Knowledge Graph Information on Relation Extraction
  25. Treating dialogue quality evaluation as an anomaly detection problem
  26. Internal forces in robotic manipulation and in general mechanisms using a geometric approach
  27. Early Edema Detection Based on the Examination of Multidimensional Ultra-Wide band Data
  28. Reducing the peaking phenomenon in Luenberger observers in presence of quasi-static disturbances for linear time invariant systems