This study explores the impact of ESG Scores on firm performance and seeks to establish whether the impact increased since the 2008 financial crisis. This is done by performing regressions on ESG Scores, and the respective pillars of Environmental, Social, and Governance, and firm performance, measured as both accounting-based performance, using ROA, and market-based performance, using Tobin’s Q. The study adopts a quantitative approach, utilising a random-effects model to analyse panel data across two sample periods - a pre-crisis period, from 2003-2006, and a post-crisis period, from 2010-2019. In addition, t-tests were performed to see if the impact changed significantly from the pre-crisis to post-crisis period. The study analyses data from 218 firms from the STOXX Europe 600 index, with four smaller sub-samples. The results indicate that ESG Scores have a positive impact on firm performance, with market-based firm performance being significantly correlated both before and after the crisis. Accounting-based performance, however, was only significantly correlated with ESG Scores before the crisis. In addition, the Environmental pillar was positively correlated with both measures of performance before and after the crisis, and the same was true for the Social pillar, except for with post-crisis accounting-based performance. Interestingly, the Governance pillar was not significantly correlated with performance in any of the regressions. Finally, while the average ESG Score among the observed companies increased in the post-crisis period, the impact of ESG performance on firm performance did not change significantly. The results of this study are supportive of the stakeholder theory perspective over the principal-agent theory, and show that ESG performance does indeed positively impact firm performance. Future research could explore whether other events have played a significant role in the rising importance of ESG, or if the results of the present study can be replicated across different time periods and geographical regions.

The previous chapters described in detail the literature, theory and research on Co-alignment, RBV and SHRM that was the basis for the development of a construct for the conceptualization of HPWP in the casual theme restaurant sector of the US hospitality industry for management. Firms able to implement such HPWP systems possessing universality, i.e. complementary internal fit, have been shown to increase the intangible value of their human capital (employees) and create greater economic value (Delery, 1998). This study used the co-alignment principle in conjunction with concepts in SHRM and RBV to develop a theory for a HPWP system for casual theme restaurants in the US, which is named a High Performance People System (HPPS). The co-alignment model for hospitality organizations which is the foundation of the theoretical model for this research (Olsen, West, and Tse;1998) describes the relationship between four key constructs, i.e. the environment, strategy choice, firm structure, and firm performance. Briefly, the four constructs in the model must be in alignment with each other in order for the firm to produce the greatest value for its stakeholders. Co-alignment theory purports that, "if the firm is able to identify the opportunities that exist in the forces driving change, invest in competitive methods that take advantage of these opportunities, and allocate resources to those that create the greatest value, the financial results desired by owners and investors have a much better chance of being achieved" (Olsen et al. 1998, p.2). SHRM researchers have been advocates of the theory that supports the causal relationship between HRM practices, sustainable competitive advantage (SCA) and firm performance. Several strategic human resource management researchers such as, Cappelli & Singh (1992),Wright & McMahan (1992), Pfeffer (1994), Lado & Wison (1995), Huselid (1995), Jackson & Schuler (1995),Becker & Gerhart (1996), Delany & Huselid (1996), Boxall (1998), Pfeffer (1998), Schuler & Jackson (2000), Ulrich & Beatty (2001), Lepak & Snell (2002), Hartog (2004) and others have directly or indirectly made attempts to theorize the effects of single or multiple human resource management variables on firm performance. These efforts have led to the incremental development of the strategic human resource management literature that stresses the relationships between the HRM practices, SCA and firm performance. There is an emergent body of evidence demonstrating that "the methods used by an organization to manage its human resources can have a substantial impact on many organizationally relevant outcomes" (Delery, 1998, p. 1). Convoluting the research on HPWP is incongruity among researchers on the micro HRM practices which are included in the SHRM system; there is little concurrence among scholars with respect to specifically which human resource practices should be incorporated (Becker & Gerhart, 1996; Rogers & Wright, 1998; Chadwick & Cappelli, 1999). RBV is one of the ten schools of thought in the field of management theory (Mintzberg, 2000) and is predicated on the concept that in order to create a sustainable competitive advantage and produce value for the firm, individual policies or practices produce the greatest results when they operate in a complex system that is not easily imitated (Barney, 1995). Resources are the "physical things a firm buys, leases or produces for its own use or the people hired on terms that make them effectively part of the firm" (Penrose, 1959: 67). Wernerfelt (1984) defines a firm's resources as "tangible or intangible assets which are tied semi-permanently to the firm" (p. 172). Barney (1991) further suggested that resources which can be used to create a SCA must have value, rareness, inimitability and substitutability The research focused on the discovery of the components of a HPWP system construct in the US casual theme restaurant segment for operating managers and the performance metrics used to judge their effectiveness. An exploratory study, in part using the Delphi method, serves as the overall research approach. A cross section of restaurant industry experts including company executives, consultants, academics and investors/owners contributed to the study. The outcome is a list of HRM work practices that are common to the casual theme restaurant industry and performance metrics. Based on prior empirical work the study started with 14 HRM work practice dimensions (See Table 3.1) and 3 performance measurements of productivity, turnover and financial performance (Huselid, 1995; Huselid & Becker, 1995; Delery & Doty, 1996; Becker & Huselid, 1996; Huselid & Becker, 1997; Hartog, 2004). These dimensions and performance metrics were presented to the panel of expert's making up the pilot study group as a starting point in the development of the HPWP system construct for the casual themed restaurant industry. After compiling the results of the pilot study and pretesting the survey instrument, the first Delphi survey (see Appendix 3) and a subsequent reminder were sent out electronically to the preselected Delphi participants for the study. A consensus on the research questions was not reached from the first-round survey according to the protocol Therefore, the second round was administered which provide opportunity for participants to change their position to help the group reach a consensus. Since consensus was reached according to the protocol (see tables 4.9, 4.12 & 4.13), the Delphi was concluded at this point. In summary, figure 1.1 put forth a conceptual model to clarify the relationships between the above mentioned schools of thought and firm performance. Figure 1.2 presented a working theoretical model which expounds on the relationships between the key concepts in the conceptual model and firm performance. Finally, figure 5.1 displays the results and the relationships of the study which methodically confirms the components of a HPPS for unit level managers, and identifies appropriate evaluation criteria for determining the performance of HPPS in the US casual restaurant market. / Ph. D.

The importance of testing the co-alignment model has been emphasized by several researchers in the past. The present study is an attempt to test the model using theories in corporate finance and strategic management, which will also prove the commonalties that exist between these domains of business research. This will help support the arguments of some researchers in the hospitality industry who have stressed the importance of assessing the firm's strategies using concepts in finance. The overall objective of this study is to test the viability of the co-alignment model using strategic management and corporate finance theory. The present study identifies the dimensions and variables using prior research within each of the constructs studied under the management and corporate finance domains, vis-a-vis environment risk, corporate strategy, capital structure and firm performance. The relationship between the constructs and dimensions were tested for the dependencies between them using surrogates used in prior research through a priori hypothesized relationships. The unit of analysis was the corporate level, and hence, the study included corporate level data of restaurant firms. The research design included cross-sectional data of restaurant firms that were averaged across an a priori defined time period. These firms were selected based on certain criteria that helped control for country effects and industry effects. Therefore, the publicly traded firms selected as part of the sample were based in the U.S. serving markets predominantly within the country. The statistical analysis was conducted using cross-sectional regression. Results indicate that a high variance in firm performance is explained by the co-alignment between environment risk, corporate strategy, and capital structure. Furthermore, the hypothesized relationships between variables that represent the constructs hold good while using accrual and cash flow returns as surrogates of firm performance. This key finding provides the base for future research efforts, which could focus on developing the model through the use of surrogates that are used in both strategic management and corporate finance research. Also, the sample could be extended to include privately owned restaurant firms that serve markets within the U.S., which will help improve the generalizability of the co-alignment model. / Ph. D.

Background: During recent years, the growing attention to environmental, social, and governance factors (ESG) as a recognized sustainability performance measurement has led to that corporate participation in sustainable development as one of the main concerns among stakeholders. The Nordic countries have been outstanding leaders in terms of sustainability for years and consistently ranked excellent on ESG scores. The role of ESG and its effect on value creation has been widely discussed by academics and stakeholders, but the results differ. Purpose: This thesis aims to study the relationship between ESG scores and a firm’s performance in terms of ROE in Nordic countries between 2020 to 2022 and investigate whether investing in environmental innovation strengthens or weakens the correlation between the two variables. The study uses both stakeholder and shareholder theories to explain the results. Method: The linear regression models were conducted on data collected from Thomson Reuters Eikon’s database (2023) between 2020-2022 on 150 firm observations and 450 firm-year observations to fulfil the study's purpose. Conclusion: The findings show a significant positive relationship between ESG scores and ROE, but environmental innovation weakened this relationship. The conclusions were drawn that Nordic firms which take more value into sustainability practices, especially ESG scores, enhance their financial performance, which is supported by the stakeholder theory. But firms with higher ESG, which invest more in environmental innovation, wouldn't pay off through better financial performance in the short run. Furthermore, the results from statistical models for two dummy variables, year, and country, indicate that the relationship between ESG scores and financial performance is neither significantly affected by time nor significantly by Nordic countries.

This study investigates whether family ownership influences firms’ accounting and market-based performance as measured by ROA respectively Tobin’s Q. The Swedish market is especially interesting due to its unique corporate governance system, and because previous studies based on a Swedish sample present contradictory findings on the family-performance relationship. Furthermore, we explore whether the stake, the active involvement of family members, and the presence of other blockholders, can be connected to firm performance. The results suggest that family firms are related to superior accounting performance as compared to non-family firms, and that actively involved family members are related to the positive relation. The evidence on market performance shows that families are awarded lower valuations as compared to non-family firms. The market results seem to be driven by extensive control in terms of voting rights or the combined monitoring powers of multiple blockholders, as family firms with a moderate stake of 20-50%, and firms without other blockholders, are not related to market discounts. Connecting to agency theory, the findings suggest that family ownership is related to reduced agency costs type I, thus increasing the profitability, but may be associated with higher type II costs if their control is too extensive.

Today, the effective management of people is assuming prominence as a source of sustained business performance improvement. The rationale for this trend is that other significant aspects of business, such as marketing, new technology, market niche, trademarks and brand image have generally been mastered. Therefore, business enterprises are being encouraged in seeking to gain comparative advantage by reliance on their human resources because this aspect of business is arguably more difficult to imitate or understand than the more conventional resources. As a result, there is an awakening of the need to introduce management practices that will concentrate on the added value which a highly motivated work force may provide to the organisation. The idea of added value from a highly motivated work force assumes even greater significance when the main business hinges almost entirely on the attitudes and approaches of people. This concept applies most forcibly to Barbados and the Organisation of Eastern Caribbean States (BOECS), the region covered by this study. This research therefore, explores the idea of gaining comparative advantage through appropriate people management methods and follows the trend in the developed and more industrialised nations of the world in an effort to determine whether there is a useful model of effective management practices which may be replicated in the BOECS and thus lead to improved business performance in the micro states which constitute this ii region. However, this study is mindful of the limitations of the research methodology which a vast number of contributors to this intriguing topic have employed. Nevertheless, this exploratory attempt examines the issue in the light of its possible positive effect on a previously uncharted area, viz., Barbados and the Eastern Caribbean (BOECS) as far as it relates to scholarly treaties on Human Resource Management. The idea is that even in the absence of clear unequivocal empirical evidence about its benefits, it may be useful to pursue the strategic approach to Human Resource Management including expansion of employee involvement, for it own sake.

No description available.

For decades, globalization has introduced both opportunities and pressures for companies around the world by introducing freer trade, increasing foreign direct investment and the international use of intellectual property that boosted the diffusion of knowledge and technology. As a result, the international competition has become more intense for many firms. Hence, putting a good or service into the market has never been as demanding as now and the demand to be early mover and have a low time-to-market is increasingly important for first be successful. This research will focus on determining whether a low time-to-market will contribute to a higher firm performance and what relation the time to market has with a firm’s business model framework and business model openness, preference for external funding and type of innovation. A theoretical framework was created based on relevant literature to be able to reach the objective of this thesis. The conceptual model was created from the literature which consisted of the hypotheses and variables that the study aimed to investigate. From the theoretical framework using a confirmatory approach, a survey was designed that was shared online to available network that the authors had. In summary, 43% of respondents had some sort of managing positions (upper management, manager and project management), 83% were mainly based in Sweden but also in Denmark, Germany, USA etc. and the work experience of the respondents was fairly distributed. Overall, 50% of the firms were between 0 to 30 years (1% did not respond) and more than 50% were considered to be a large firm depending if the classification was based on turnover with 51% as large firms (17% did not respond) or based on the number of employees with 58% as large firms. Data with 200 applicable responses (eight were removed i.e., 3.8%) was collected over four weeks of time. With the use of structural equation modeling and exploratory factor analysis, the collected data could be analyzed, and the hypotheses relevance could be answered. The final model was concluded to be adequate, as GOF indices and standardized factor loadings were on a sufficient level. As a result, the research showed that a fast time-to-market had a positive impact on firm performance measured in monetary measures (sales, profit, and market share) and that marketing innovation had a positive mediating effect on time to market and thus financial performance. The hypotheses regarding business model framework and capital structure correlating positive time to market were removed since the model was reworked. However, the study showed that technological innovation (product and process innovation) had a positive correlation to preference for external funding such as debt or issuance of equity. Since the construct validity of open business model and technological innovation was proved to be non-convergent, any deeper conclusion of this must be carefully reviewed. The results reinforced what other studies had shown, which is that open innovation or a more open business model contributes to both technological and marketing innovation. In summary, this demonstrated that a positive mediating effect existed for an open business model and marketing innovation which will speed up the time-to-market and hence increase the financial performance. Suggestion of future work could be to conduct similar studies in specific industry sectors to observe whether there is a difference in time-to-market depending on industry and what effect innovation and business model framework has.

This dissertation studies the association between CEO ability and various aspects of corporate governance, specifically firm performance, executive compensation contracts and firm opacity. In the first essay of this dissertation (Chapter 2), I examine the effect of CEO ability on firm performance. My analysis uses a unique instrument of CEO ability that is based on a CEO's commitment decisions in US presidential elections. Intuitively, CEO ability is measured based on how well they forecast US presidential elections, one year prior to the race, relative to the candidates expected chances of winning. I find that this instrument of CEO ability is positively related to firm performance. Interestingly, I find that high ability CEOs have a greater impact on Tobin's q in small firms than in large firms. Yet, high ability CEOs have the greatest dollar impact on shareholder value in large firms. In addition, CEO ability appears to be quite important to outside shareholders in high growth firms. Lastly, I find that CEO ability is positively associated to merger announcement returns, which implies that higher ability CEOs engage in value-creating merger activities. The results are robust to industry and time controls, as well as various tests that consider an alternative explanation focusing on political influence. The second essay (Chapter 3) explores the effect of CEO ability on the structure and level of compensation contracts. I find that CEO ability is positively associated with total compensation level. CEOs in the highest quartile of the ability proxy earn almost $2.2 million more than CEOs in the lowest quartile of CEO ability. Further analysis indicates that CEO compensation structure differs markedly between the highest and lowest ability CEOs. Specifically, I find that the high ability CEOs receive 2.1% more stock based incentives than low ability CEOs. Thus, the low ability CEOs receive more of their pay in the form of cash compensation than do high ability CEOs. Further tests indicate that high ability CEOs have significantly greater variance in their pay than low ability CEOs, specifically due to the higher variance in stock based incentives. Overall, I provide evidence that CEO pay is associated with CEO ability and that CEO ability appears a key issue in designing CEO compensation contracts. In the third essay (Chapter 4), I examine whether CEO ability is related to corporate opacity. I argue that high-ability CEOs may seek to create greater transparency to convey their ability to the market. Simultaneously, low-ability CEOs may be signal-jamming the market's inferences about their talent by limiting the available information. An alternative aspect is that the results are driven by low-ability CEOs who seek to work in opaque firms. My analysis indicates that firms with high-ability CEOs are significantly less opaque than firms with low-ability CEOs. These findings are also robust to using a propensity score matched sample. Finally, I show that the deteriorating impact of corporate opacity on firm performance decreases when the decision belongs to a high-ability CEO, suggesting that opacity is not necessarily value-destructing decision for corporations. Overall, my analysis suggests that CEO ability is an important factor for corporate opacity. / Business Administration/Finance

[pt] Este estudo fornece uma análise da relação entre as práticas da economia circular (EC) e o desempenho nas pequenas e médias empresas (PME) na Europa, seguindo uma abordagem multinível. O projeto de pesquisa descreve as etapas envolvidas para atingir esse objetivo. A primeira etapa (artigo 1) examina as tendências da pesquisa existente. Verificamos as variáveis utilizadas, o tipo de dados, o método de análise, o tipo de indústria, o porte da empresa, o tamanho da amostra e o tema ao qual o artigo pertence. Os resultados indicam que não existe um consenso claro sobre a melhor forma de medir e operacionalizar as práticas de EC e o desempenho das empresas, no entanto as variáveis identificadas podem ser utilizadas como guia para futuras pesquisas sobre EC e o desempenho das empresas. Na segunda etapa (artigo 2), investigamos como os indicadores de desempenho econômico, social e ambiental do país PME moderam a relação entre as práticas de EC e o desempenho da empresa. Em resumo, os resultados apoiam que o impacto financeiro da adoção da EC é positivo e é afetado pelo nível de desempenho nacional econômico e ambiental. A terceira etapa (artigo 3) tem como objetivo desenvolver e testar o modelo empírico que inclui moderação por nível meso. Examinamos a função dos intermediarios no envolvimento das PME nas atividades de EC bem como a presença de Redes de Simbiose Industrial (ISN) afeta o desempenho das PME. As conclusões afirmam que as ISN s podem impulsionar a adopção da EC e os intermediários podem ajudar as PME a superar os obstáculos da EC. / [en] This study provides an examination of the relationship between circular economy (CE) practices and firm performance in small and medium-sized enterprises (SMEs) in Europe, following a multi-level approach. The research project outlines the stages involved to reach this goal. The first stage (paper 1) examines the trends in the existing research. We verified the variables used, the type of data, the method of analysis, the type of industry, the size of the company, the size of the sample and the topic to which the article belongs. The results indicate that there is no clear consensus on the best way to measure and operationalize CE practices and firm performance, however the variables identified can be used as a guide for future research on CE and firm performance. The second stage (paper 2) we investigate how the economic, social, and environmental performance indicators of the SME country moderates the relationship between CE practices and firm performance. In summary, the results support that the financial impact of adopting CE is positive, and it is affected by the level of national economic and environmental performance. The third stage (paper 3) the aim is develop and test empirical model include moderation by meso-level. We examined the function of intermediaries in involving SMEs in CE activities, and how the presence of Industrial Symbiosis Networks (ISN) affects SMEs performance. The findings affirm that ISNs can boost CE adoption and intermediaries can assist SMEs in surmounting CE obstacles.