The Nigerian Local Content Policy and Its Impact on Sustainable Economic Value Creation

2020 ◽  
Author(s):  
Victoria Udoh
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Local Content

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

scholarly journals Rethinking government and its economy with Giorgio Agamben: The homo sacer in alternative entrepreneurship

2020 ◽  
Vol 68 (5) ◽  
pp. 948-964
Author(s):  
David Redmalm ◽  
Annika Skoglund
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Special Kind ◽  
Welfare States ◽  
Ethnographic Study ◽  
Economic Gain ◽  
Giorgio Agamben ◽  
Organizational Boundaries ◽  
Entrepreneurial Ventures ◽  
Organizational Goals

Giorgio Agamben argues in The Kingdom and the Glory (2011) that a theological remnant has survived since the medieval period that today makes it impossible to think of government and economy, or ethico-political questions and the administration of a society’s resources, separately. This conflation can be recognized in today’s growing trend of alternative entrepreneurial ventures that aim to merge social and economic value creation in response to shrinking welfare states. ‘Alternative entrepreneurship’ merges organizational goals and values with those of their members with the aim to increase innovation and productivity, and to spur social change. Rather than asking if and how alternative entrepreneurship can solve social problems, the present article contributes to a sociological understanding of the special kind of humanism embedded in these ventures. Drawing on Agamben’s work, this article theorizes the process that enables the conflation of personal and organizational values, and of ‘government and its economy’. The contribution is based on an ethnographic study of an IT company, founded in Hungary around 2010, and its engagement in the Budapest Pride Parade, in a Roma settlement, and in a mission to help Syrian refugees. Following Agamben, we think through these interventions as ‘zones of indistinction’ where organizational boundaries are dissolved, where contradictory values are conflated, and where the participants are positioned as homines sacri whose humanity is at stake. This article shows how the encounters within these zones enable a merging of idealism and economic gain, turning the company itself into a zone of indistinction.

scholarly journals From Culture 1.0 to Culture 3.0: Three Socio-Technical Regimes of Social and Economic Value Creation through Culture, and Their Impact on European Cohesion Policies

2018 ◽  
Vol 10 (11) ◽  
pp. 3923 ◽  
Author(s):  
Pier Sacco ◽  
Guido Ferilli ◽  
Giorgio Tavano Blessi
Keyword(s):  
Cultural Production ◽  
Value Creation ◽  
Cultural Policy ◽  
Policy Design ◽  
Economic Value ◽  
Cultural Participation ◽  
Social Value Creation ◽  
Open Question ◽  
The Relationship

We develop a new conceptual framework to analyze the evolution of the relationship between cultural production and different forms of economic and social value creation in terms of three alternative socio-technical regimes that have emerged over time. We show how, with the emergence of the Culture 3.0 regime characterized by novel forms of active cultural participation, where the distinction between producers and users of cultural and creative contents is increasingly blurred, new channels of social and economic value creation through cultural participation acquire increasing importance. We characterize them through an eight-tier classification, and argue on this basis why cultural policy is going to acquire a central role in the policy design approaches of the future. Whether Europe will play the role of a strategic leader in this scenario in the context of future cohesion policies is an open question.

scholarly journals The Moderating Effect of Social Innovation in Perspectives of Shared Value Creation in the Educational Sector of Ghana

2018 ◽  
Vol 10 (11) ◽  
pp. 4216 ◽  
Author(s):  
Wenyuan Li ◽  
Mohammed Abubakari Sadick ◽  
Abdul-Aziz Ibn Musah ◽  
Salisu Mustapha
Keyword(s):  
Value Creation ◽  
Social Innovation ◽  
Economic Value ◽  
Social Value ◽  
Survey Study ◽  
Shared Value ◽  
Study Results ◽  
Social Value Creation ◽  
The Creation ◽  
Moderating Role

This paper presents a survey study of how social innovation moderates social and economic value from the perspective of shared value creation. Specifically, the study addresses the following questions: Does economic value lead to social value creation in shared value creation? Does social innovation moderate social and economic value in the creation of shared value? The questions are addressed through an empirical investigation of 250 social enterprise organizations that apply social objectives and a market-based approach to attain social and economic goals in Ghana. The study used SmartPLS software version 3.0 to evaluate the data collected. The results indicated that economic value influences the creation of social value in shared value creation. Study results also revealed that social innovation is a driver of shared value creation via social value in the educational sector of Ghana. However, social innovation could not play a moderating role in economic value to shared value creation.

scholarly journals Tax Risk Assessment and Assurance Reform in Response to the Digitalised Economy

2020 ◽  
Vol 8 (4) ◽  
pp. 96-126
Author(s):  
Helena Strauss ◽  
Tyson Fawcett ◽  
Danie Schutte
Keyword(s):  
Risk Management ◽  
Value Creation ◽  
Developing Economies ◽  
Economic Value ◽  
National Literature ◽  
Digital Platforms ◽  
Tax Fraud ◽  
Two Phases ◽  
Cross National

The digitalisation of the economy has increased tax administrations’ traditional tax risks and introduced new tax non-compliance risks, such as the use of income suppression software and tax fraud associated with the use of alternative payment methods, such as cryptocurrencies. This study focuses on the global reform that took place among tax authorities from a tax risk management and assurance perspective. The study was executed in two phases, including a cross-national literature review to synthesise international reform regarding tax risk management and assurance in response to the digitalisation of the economy. This process was followed by interviews with risk, technology and data experts of 30 global tax authorities in order to evaluate the level of implementation of the global reform measures identified in the first research phase. The research results suggest an imbalance in reform among participants from developed and developing economies. An inability to optimise tax risk and assurance management within the digitalised economy will negatively impact the tax authorities’ ability to maximise tax collection within the digitalised economy. This is especially concerning if the significant role of digital platforms on future global economic value creation is considered.

Complexity and Control

2018 ◽  
pp. 79-96
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Management Model ◽  
Clear Understanding ◽  
Complex Entity ◽  
Complexity Management ◽  
Causal Ambiguity ◽  
Complex Settings ◽  
And Control ◽  
Value Measurement

Measuring and managing a firm's performance in complex settings are at the center of the debate in business management studies in recent years. The causal ambiguity condition that affects the dynamics of value creation makes it difficult to achieve a clear understanding of the mechanisms underpinning economic value. Thus, a conceptualization of the firm as a complex entity and a complexity management model are proposed, with the aim to contribute towards improving the disentanglement of the messy nature of the process of economic value creation. Finally, building on the assumption that financial and quantitative measures should always be the end goal of the process of the firm's economic value measurement, the most important models and metrics of value creation are reported.

Analyzing the Impact of the COVID-19 Pandemic on Value Creation

2021 ◽  
pp. 153-173
Author(s):  
Rosa Galvão ◽  
Ana Bela de Sousa Delicado Teixeira
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Value Added ◽  
Business Environment ◽  
World Health ◽  
Cost Of Equity ◽  
First Semester ◽  
Operating Profit ◽  
Global Pandemic ◽  
Health Organization

Operating in an already challenging business environment, companies have faced yet another difficulty since March 2020, when the World Health Organization (WHO) declared a global pandemic situation related to the COVID-19 disease. The study's purpose was to analyze the value creation in Euronext Lisbon companies from the first semester of 2019 to the first semester of 2020. The aim was also to identify the areas with the most impact on value creation. To measure value creation, the indicator economic value added (EVA®) was used. The results revealed that the capacity to create value decreased for all companies. The variables included in the study that showed a statistically significant relationship with EVA® were operating profit, sales revenue, and cost of equity. This pandemic situation poses a significant threat to value creation, enhancing the idea that, more than ever, business management needs to focus on long-term value creation strategies.

Siemens' Value-Driver Tree in Digitalization

2021 ◽  
pp. 197-220
Author(s):  
Cozmiuc Claudia Diana
Keyword(s):  
Value Creation ◽  
Business Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Sufficient Data ◽  
Product Lifecycle ◽  
Open Networks ◽  
Start Ups

This chapter is a descriptive and explicative case study about value creation at Siemens in an uncertain and in a certain environment. Siemens has implemented economic value-added-based management since 1998. The empirical data analysis highlights value creation at Siemens at the beginning of the innovation lifecycle, when the environment is uncertain, and at the end of the innovation lifecycle, when contracts are signed, and the environment becomes predictable. Innovation is first placed in open networks, in which start-ups are essential, to which venture capital is allocated using business models. This is the ideation stage of the product lifecycle, when competitive advantage, the essence of value creation in both theory and the Siemens example, is created. Innovation matures, and Siemens closes contracts with customers about existing customer offerings. These contracts are managed as projects and funded with equity and debt. This is the stage when sufficient data exists to plan economic value added, the focus of Siemens' corporate governance.

Sign in / Sign up

Export Citation Format

Share Document