scholarly journals Debt versus Equity—Open Innovation to Reduce Asymmetric Information

2021 ◽  
Vol 7 (3) ◽  
pp. 181
Author(s):  
Arief Yulianto ◽  
Rini Setyo Witiastuti ◽  
Widiyanto
Keyword(s):  
Life Cycle ◽  
Asymmetric Information ◽  
Information Asymmetry ◽  
Capital Market ◽  
Open Innovation ◽  
Information Disclosure ◽  
Life Cycle Stage ◽  
Mature Stage ◽  
Growth Opportunities ◽  
The Difference

The research aims to examine the difference between absence and presence life cycle stage in technology information digitalization (TID) as a form of open innovation in reducing information asymmetry. Furthermore, companies with asymmetric information prefer debt over equity. The study collects 3.343 pooled data observation units of companies listed in the Indonesian capital market period 2008 to 2019. We use OLS regression analysis to determine the difference between the absence and presence lifecycle stage in determining capital structure relations and exploiting growth opportunities. The study found information disclosure obligation of the capital market regulator has not been fully disclosed through TID. As a result, companies choose to pass in growth opportunities with debt or equity in the absence life cycle stage. Presence lifecycle stage, in the introduction stage, the company misses growth opportunities. Growth and mature stage, debt has a positive effect on the utilization of growth opportunities. The company prefers the issuance of debt with lower information sensitivity than equity. Presence culture, such as majority ownership, generates incentives for open innovation from capital market regulators, which still contain information asymmetry.

scholarly journals The Open Innovation Model of Coaching Interaction in Organisations for Sustainable Performance within the Life Cycle

2018 ◽  
Vol 10 (10) ◽  
pp. 3516 ◽  
Author(s):  
Angelina Roša (Rosha) ◽  
Natalja Lace
Keyword(s):  
Life Cycle ◽  
Open Innovation ◽  
Growth And Development ◽  
Driving Forces ◽  
Life Cycle Stage ◽  
Sustainable Growth ◽  
Business World ◽  
Sustainable Performance ◽  
Life Cycle Stages ◽  
Innovation Model

Organizations need innovation to be competitive and sustainable on their marketplace. Sustainable performance is an important precondition for growth and development. In spite of a body of literature, non-financial factors of sustainable performance remain an open issue. Coaching has gained considerable attention in the business world for its impact on sustainable performance. The current research investigates the use of coaching interaction to facilitate organizational sustainable growth and development in the context of Miller and Friesen’s five stage life-cycle model. The expert opinion survey is chosen as a central method of research. The questionnaire is developed on the literature review that is focused on the drivers for sustainable development throughout the life cycle, and the features of coaching that accelerate these driving forces. Fifteen experts took part in the survey conducted from November 2017 to January 2018. The results are estimated by considering the competence coefficient for each expert. The findings led to creation of an open innovation model, which displays relationships between the appropriate coaching forms and types and the organizational life cycle stages. The developed model enables choosing the optimal way of coaching delivery at any life cycle stage. This model is particularly valuable for the coaching support programs.

scholarly journals The Influence of Cash Flow Patterns on Random Organizational Development in Nigerian Listed Companies

2020 ◽  
Vol 11 (3) ◽  
pp. 171
Author(s):  
Chizoba Ekwueme ◽  
Rosemary Obiageri Obasi ◽  
Sadiq Rabiu Abdullahi ◽  
Umar Aliyu Mustapha ◽  
Norfadzilah Rashid
Keyword(s):  
Life Cycle ◽  
Cash Flow ◽  
Developmental Stages ◽  
Stock Exchange ◽  
Listed Companies ◽  
Life Cycle Stage ◽  
Flow Patterns ◽  
Annual Reports ◽  
Mature Stage ◽  
Growth Stages

The objective of this study is to examine whether companies’ life cycle stages follow a random or sequential developmental pattern using their cash flow patterns. That is to ascertain the optimum life cycle stage of Nigerian companies. Data were obtained from the sampled firms annual reports and accounts, which comprises 79 listed companies on the Nigerian Stock Exchange (NSE) from 2009 to 2013 financial years. The cash flow patterns of the firms were thematically analysed as a proxy of developmental patterns, and transition rates between developmental stages were determined. The study reveals that Introduction firms at T0 transited quickly to the Mature stage (70% in T1 through T3), whereas Growth firms developed most rapidly into Shakeout firms (38% at T1). The Mature stage was most stable; 57–65% of firms in this stage at T0 remained so. By contrast, 60% of Decline firms remained in this stage at T1 before transiting to the Mature and Growth stages at T3 and then ultimately fading away at T4, leaving only the Introduction (20%) and Decline (20%) stages. Thus, the development of firms from one life cycle stage to another is random and not sequential. The study, therefore, recommends that Nigerian companies experience their optimum life cycle stage at the matured stage and firms should employ the use of cash flow patterns to identify their business life cycle stage as this will enable companies to apply strategies to sustain themselves at a target stage of the life cycle.

scholarly journals An Analysis On The Dynamic Effect of Enterprise’s Environmental Governance On Green Technology Innovation: New Explanation From The Perspective of Knowledge And Technology Transfer

2021 ◽  
Author(s):  
Xianyou Pan ◽  
Xiongfeng Pan ◽  
Xianhua Wu ◽  
Shucen Guo
Keyword(s):  
Life Cycle ◽  
Environmental Governance ◽  
Technology Innovation ◽  
Dynamic Effect ◽  
Life Cycle Stage ◽  
Green Technology ◽  
Mature Stage ◽  
Collaborative Innovation ◽  
Knowledge And Technology Transfer ◽  
The Impact

Abstract Environmental governance (EG) and green technology innovation (GTI) are important means to promote the construction of ecological civilization of all countries around the world. Past scholars focused on the impact of EG on GTI based on the static perspective usually, but ignored the impact of the dynamic development law of enterprises. This study differentiates, takes enterprise’s life cycle stage as the breakthrough point, and analyzes the dynamic effect of EG on GTI at the first time. Further, considering the important of information interaction among different enterprise in the background of collaborative innovation, this study reveals the evolution trend of enterprise’s knowledge and technology transfer (KTT) in different life cycle stage, and explains the internal mechanism of the dynamic effect mentioned above. The theoretical model finds that for enterprises in different life cycle stage, the impact of EG on GTI depends on abatement cost and innovation compensation effect two aspects. The development of enterprise’s KTT helps to strengthen the incentive effect of EG on GTI, thus causing the differentiated GTI effect among different enterprises under the restrict of EG. The empirical research results based on the micro data of Shanghai and Shenzheng A-share listed firms from 2013 to 2018 in China confirm the theoretical inference. EG has a positive role in promoting GTI, however, compared with the enterprises in growth and mature stage, the positive innovation effect does not hold for the enterprises in recession stage. The statistical results show that the enterprise’s KTT in growth and mature stage is significantly better than that of enterprises in recession. Moreover, the empirical analysis results confirm that enterprise’s KTT have a positive moderating effect on the relationship between EG and GTI. Combined with the above conclusions, this study puts forward several useful management implications for improving the designing of environmental governance system, optimizing the cooperation of GTI and the EG decision-making under the background of collaborative innovation.

scholarly journals Is Bankruptcy Risk Tied to Corporate Life-Cycle? Evidence from Pakistan

2019 ◽  
Vol 11 (3) ◽  
pp. 678 ◽  
Author(s):  
Ahsan Akbar ◽  
Minhas Akbar ◽  
Wenjin Tang ◽  
Muhammad Qureshi
Keyword(s):  
Life Cycle ◽  
Mixed Model ◽  
Linear Mixed Model ◽  
Life Cycle Stage ◽  
Mature Stage ◽  
Bankruptcy Risk ◽  
Listed Firms ◽  
Firm Life Cycle ◽  
Corporate Life Cycle ◽  
The Relationship

In this paper we analyze the relationship between bankruptcy risk and the corporate life cycle in Pakistan from 2005 to 2014. For this purpose, we run a Hierarchical Linear Mixed Model (HLM) for a sample of 301 non-financial listed firms in 12 different sectors. The empirical outcomes reveal that firms during introduction, growth and, decline stages (mature stage) of life-cycle experience higher (lower) bankruptcy risk. Moreover, in juxtaposition with growth stage, bankruptcy risk is higher at the introduction stage of life-cycle. These findings suggest that financial managers should be cautious about the financial fragility of the firm at each stage of corporate life-cycle. The results also entail that Pakistani firms do not follow a sequential pattern in their life-cycle, rather they have the tendency to revert to a previous stage or jump to the next stage of life-cycle. This is the first study that empirically examines the association between firm life-cycle stage and corresponding bankruptcy risk and asserts that managers must incorporate the life-cycle effects into their financial planning and decision making for the sustainable working of an enterprise.

A Proposed Framework to Reduce Asymmetric Information in Equity Offerings

2015 ◽  
Vol 12 (1) ◽  
Author(s):  
Ilanit Gavious
Keyword(s):  
Asymmetric Information ◽  
Earnings Management ◽  
Information Asymmetry ◽  
Capital Market ◽  
Equity Offerings ◽  
Voluntary Disclosures ◽  
Sale Price ◽  
Significant Cost ◽  
Financial Reports ◽  
The Public

AbstractThe security offering literature shows that firms offering their shares for sale to the public generally manage their earnings upwards around the offering to raise investor demand for the firm’s shares and increase their sale price. In addition, the literature demonstrates that earnings management around the offering increases the information asymmetry between the issuers and outside investors, thereby increasing the issue flotation costs. Markedly increased flotation costs imply, inter alia, a reduced demand for, and pricing of, the new shares offered – the opposite result of that sought by the issuing management. To date, mechanisms to prevent issuing firms from managing earnings opportunistically are non-existent. I address this current gap in the literature by proposing a disclosure-based framework for issuing firms aimed at reducing the extent of information asymmetry between them, outside investors and underwriters. Specifically, I present a mechanism where firms add a voluntary “honest disclosure” section in their issue prospectuses, in which they provide information that reduces uncertainty about their financial reports. I demonstrate that such voluntary disclosures by firms create a reality that encourages truthful reporting around the offering and results in a more effective capital market. The proposed framework does not require a change in current institutional mechanisms. Furthermore, as an integral part of the prospectus, the SEC will scrutinize the disclosure. Last but not least, the new section should not add significant cost to the issuer.

scholarly journals Is Bankruptcy Risk Tied to Corporate Life-Cycle? Evidence from Pakistan

2019 ◽  
Author(s):  
Ahsan Akbar ◽  
Minhas Akbar ◽  
Wenjin Tang ◽  
Muhammad Azeem Qureshi
Keyword(s):  
Life Cycle ◽  
Mixed Model ◽  
Linear Mixed Model ◽  
Life Cycle Stage ◽  
Mature Stage ◽  
Bankruptcy Risk ◽  
Listed Firms ◽  
Firm Life Cycle ◽  
Corporate Life Cycle ◽  
The Relationship

In this paper we analyze the relationship between bankruptcy risk and the corporate life cycle in Pakistan from 2005 to 2014. For this purpose, we run a Hierarchical Linear Mixed Model (HLM) for a sample of 301 non-financial listed firms in 12 different sectors. The empirical outcomes reveal that firms during introduction, growth and, decline stages (mature stage) of life-cycle experience higher (lower) bankruptcy risk. Moreover, in juxtaposition with growth stage, bankruptcy risk is higher at the introduction stage of life-cycle. These findings suggest that financial managers should be cautious about the financial fragility of the firm at each stage of corporate life-cycle. The results also entail that Pakistani firms do not follow a sequential pattern in their life-cycle rather they have the tendency to revert to a previous stage or jump to the next stage of life-cycle. This is the first study that empirically examines the association between firm life-cycle stage and corresponding bankruptcy risk and asserts that managers must incorporate the life-cycle effects into their financial planning and decision making for sustainable working of an enterprise.

scholarly journals Life Cycle Effects on the Vertical Structure of Precipitation in East China Measured by Himawari-8 and GPM DPR

2018 ◽  
Vol 146 (7) ◽  
pp. 2183-2199 ◽  
Author(s):  
Aoqi Zhang ◽  
Yunfei Fu
Keyword(s):  
Life Cycle ◽  
Brightness Temperature ◽  
Vertical Structure ◽  
Life Stage ◽  
Life Cycle Stage ◽  
Precipitation Event ◽  
Mature Stage ◽  
Life Stages ◽  
Dual Frequency ◽  
Cloud Water Content

Abstract We identified precipitating systems from May to August 2016 using data from the Global Precipitation Measurement mission Dual-frequency Precipitation Radar instrument. Then, using this set of cases, Himawari-8 10.4-μm brightness temperature data from before and after each precipitation event were used to identify three life stages of clouds: a developing stage, a mature stage, and a dissipating stage. Using statistical analysis and two case studies, we show that the precipitating systems at different life stages of the clouds have different systematic properties, including the area of precipitation, the convective ratio, the rain-top height, and the brightness temperature. The developing systems had the largest convective ratio, whereas the dissipating systems had the largest area of precipitation. The life stage of the cloud also influenced the vertical structure of the precipitation. The microphysical processes within each stage were unique, leading to various properties of the droplets in precipitation. The developing systems had large, but sparse, droplets; the mature systems had large and dense droplets; and the dissipating systems had small and sparse droplets. Our results suggest that the different properties of precipitating systems in each life cycle stage of clouds are linked to the cloud water content and the upward motion of air.

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