nep-cfn New Economics Papers
on Corporate Finance
Issue of 2016‒06‒25
three papers chosen by
Zelia Serrasqueiro
Universidade da Beira Interior

  1. The Finnish corporate network—empirical findings from the board room network By Pihlava Matti
  2. BEYOND BUDGETING By Edo Cvrkalj; Denis Smolar
  3. Financing ?exibility: the case of outsourcing By Luca Di Corato; Michele Moretto; Gianpaolo Rossini

  1. By: Pihlava Matti (Department of Economics, University of Turku)
    Abstract: This paper studies Finnish firms and especially it’s boardroom network and the effects that it has on financial actions. Compared with earlier studies, this study also takes into consideration both firms that are not connected and uses them as a natural comparison, as well as principal component membership as a relevant network centrality measure. Based on the firms’ year end reports from 2009 to 2013, the results show that firms that are connected are on average greater in size, invest more but their Return On Investments are lower. Higher network centrality further increases the effects. With firm-specific controls and yearly fixed effects the results seem robust. The magnitude of the results can be ambiguous due to simultaneous endogeneity between the variables. Compared to previous studies, the results are contrary to what has been noted earlier. Seasonal changes or general economic outcomes might explain these results.
    Keywords: Network Analysis; Networks; Corporate Governance
    JEL: D85 L14 G34
    Date: 2016–05
  2. By: Edo Cvrkalj (DENVES CONSULTING); Denis Smolar (DENVES CONSULTING)
    Abstract: Tradicionalni načini budžetiranja sa fiksno definiranim ciljevima poslovanja od 1998. godine polako prerastaju u sofisticiranije organizaciji prilagođene alternativne koncepte budžetiranja. Jedan od tih alternativnih koncepta je i „Beyond budgeting“ model sa implementiranim procesom mjerenja performansi učinaka. Da bi to bilo izvedivo planiranje i kontrola budžeta treba biti preorijentirana na „bottom up“ pristup plana i kontrole. U suvremenim uvjetima poslovanja u obzir treba uzeti sadašnje i buduće prilike i prijetnje, koje se valoriziraju budžetom kojim poduzeće može realizirati paletu prednosti nad tradicionalnim načinima budžetiranja koje su objašnjene u daljnjem tekstu članka. Vrlo je bitno za naglasiti važnost uspjeha implementacije novog načina budžetiranja u organizaciju. Ukoliko je implementacija odrađena manjkavo i bez nekog višeg cilja, lako je moguće da se implementirani proces ugradi bez okvira za koordinaciju, planiranje i kontrolu aktivnosti u samoj organizaciji. U nastavku članka osvrnut ćemo se na menadžerske tehnike i instrumente u „Beyond budgeting“ modelu planiranja poput balanced scorecarda, rolling forecasta, dashboarda, KPI i raznih drugih potpornih instrumenata. Na kraju ćemo definirati sedam koraka za implementaciju „Beyond budgeting“ koncepta i komparaciju kroz dvanaest razloga zašto je „Beyond budgeting“ koncept bolji za upotrebu od tradicionalnih načina budžetiranja u suvremenim i tržištu orijentiranim organizacijama. Svako poduzeće se tim izazovima tržišta odupire na svoj karakterističan način, no uvođenje novih i dinamičnih modela planiranja uskoro će postati nužnost za opstanak na tržištu.
    Keywords: beyond budgeting, bottom up, budžet, planiranje, implementacija
    JEL: G31 G34 O16
    Date: 2015–10
  3. By: Luca Di Corato (University of Uppsala); Michele Moretto (University of Padova); Gianpaolo Rossini (University of Bologna)
    Abstract: We investigate the relationship between the extent and timing of vertical fl?exibility and the fi?nancial choices of a fi?rm. By vertical fl?exibility we mean partial/total and reversible outsourcing of a necessary input. A fi?rm simultaneously selects its vertical setting and how to fi?nance it. We examine debt and venture capital. Debt is provided by a lender that requires the payment of a fi?xed coupon over time and, as a collateral, an option to buy out the fi?rm in certain circumstances. Debt leads to the same level of fl?exibility which would be acquired by an unlevered ?firm. Yet investment occurs earlier. With venture capital less outsourcing may be is adopted with respect to the unlevered case and the ?firm invests mostly later. Hence, as the injection of venture capital may reduce the need of vertical fl?exibility, a novel relationship can be established for the substitutability between a real and a fi?nancial variable.
    Keywords: vertical integration, fl?exible outsourcing, debt, equity and venture capital, real options.
    JEL: C61 G31 G32 L24
    Date: 2016–05

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