Diffusion patterns in small vs. large capital markets-the case of value-based management
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Diffusion patterns in small vs. large capital markets-the case of value-based management. / Lueg, Rainer; Paraschiv, Raluca Elena .
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
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
UR - https://www.mendeley.com/catalogue/3604bcc3-04a6-3e1b-b21f-5fa468437640/
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 -