nep-bec New Economics Papers
on Business Economics
Issue of 2022‒05‒16
four papers chosen by
Vasileios Bougioukos
London South Bank University

  1. Giving zombie firms a second chance: An assessment of the reform of the Portuguese insolvency framework By Ernesto Nieto Carrillo; Carlos Carreira; Paulino Maria Freitas Teixeira
  2. A business model pattern arrives... and then? A translation perspective on business model innovation in established firms By Kajsa Ahlgren Ode; Céline Louche
  3. Motivating Collusion By Sangeun Ha; Fangyuan Ma; Alminas Žaldokas
  4. Corporate social responsibility and firm default risk in the Eurozone: a market-based approach By Mohamad Hassan Shahrour; Isabelle Girerd-Potin; Ollivier Taramasco

  1. By: Ernesto Nieto Carrillo (Ph.D. Student at Faculty of Economics, University of Coimbra); Carlos Carreira (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics); Paulino Maria Freitas Teixeira (University of Coimbra, Centre for Business and Economics Research, CeBER and Faculty of Economics)
    Abstract: In most advanced economies productivity growth has been hampered by barriers that allow zombie firms to survive. We examine the effectiveness of institutional reforms in Portugal that were aimed to improve efficiency in insolvency framework. Estimates show that reallocation barriers declined. The reforms appear to have larger and more effective results in zombie recovery than in exit. Firm size plays a major role in tackling zombie-entrenchment. The decline in barriers has also implied a lower distortion in the economy-wide selection process. The new setting seems to be more desirable than forcing zombie exit at all costs.
    Keywords: Insolvency regimes; Zombie firms; Productivity; Reallocation barriers; Firm exit;Restructuring.
    JEL: D24 G32 G33 K22 L25 O47
    Date: 2022–01
  2. By: Kajsa Ahlgren Ode (Lund University [Lund]); Céline Louche (Audencia Business School)
    Abstract: This study examines business model innovation (BMI) in an established firm. We investigate the case of a Swedish utility company that adopted and implemented a business model (BM) pattern originating from outside the firm. We draw upon Scandinavian translation theory to understand the micro-level dynamics of how BMI unfolds. Our findings show that the BM pattern is disassembled into its constituent parts, that these are translated separately and, little by little, (re)assembled into a whole to form a new BM. This process involves several loops of translation activated by the interplay between five practices: formulating, engaging, resisting, anchoring, and energizing. On the basis of our findings, we develop a BM translation framework. We thereby contribute to a better understanding of the micro-level perspective on BMI initiated by the adoption of a BM pattern. We also reveal that BMI processes triggered by BM patterns from outside differ from those taking place when a new BM is entirely developed within a firm.
    Keywords: business model innovation,business model pattern,Scandinavian translation theory,change process
    Date: 2022–04–01
  3. By: Sangeun Ha (The Hong Kong University of Science and Technology); Fangyuan Ma (Peking University HSBC Business School); Alminas Žaldokas (The Hong Kong University of Science and Technology)
    Abstract: We examine how executive compensation can be designed to motivate product market collusion. We look at the 2013 decision to close several regional offices of the Department of Justice, which lowered antitrust enforcement for firms located near these closed offices. We argue that this made collusion more appealing to the shareholders, and find that these firms increased the sensitivity of executive pay to local rivals' performance, consistent with rewarding the managers for colluding with them. The affected CEOs were also granted more equity compensation, which provides long-term incentives that could foster collusive arrangements.
    Keywords: Product Market Collusion; Corporate Governance; Managerial Compensation
    JEL: G34 G38 L22
    Date: 2021–07
  4. By: Mohamad Hassan Shahrour (UGA - Université Grenoble Alpes, CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Isabelle Girerd-Potin (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Ollivier Taramasco (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes)
    Date: 2021–02–08

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