Diffusion patterns in small vs. large capital markets-the case of value-based management
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In: Management Revue, Vol. 34, No. 1, 01.01.2023, p. 1-29.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Diffusion patterns in small vs. large capital markets-the case of value-based management
AU - Lueg, Rainer
AU - Paraschiv, Raluca Elena
N1 - Publisher Copyright: © (2023), (Nomos Verlagsgesellschaft mbH und Co KG). All Rights Reserved.
PY - 2023/1/1
Y1 - 2023/1/1
N2 - 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.
AB - 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.
KW - Management studies
KW - capital markets
KW - Denmark
KW - diffusion theory
KW - ownership
KW - risk
KW - shareholder value
KW - upper echelons
KW - value-based management
UR - https://www.mendeley.com/catalogue/3604bcc3-04a6-3e1b-b21f-5fa468437640/
UR - http://www.scopus.com/inward/record.url?scp=85195653585&partnerID=8YFLogxK
U2 - 10.5771/0935-9915-2023-1-1
DO - 10.5771/0935-9915-2023-1-1
M3 - Journal articles
VL - 34
SP - 1
EP - 29
JO - Management Revue
JF - Management Revue
SN - 0935-9915
IS - 1
ER -