• Access to finance for innovative SMEs since the financial crisis

      Lee, N; Sameen, H; Cowling, M; University of Brighton (Elsevier, 7/11/2014)
      In the wake of the 2008 financial crisis, there has been increased focus on access to finance for small firms. Research from before the crisis suggested that it was harder for innovative firms to access finance. Yet no research has considered the differential effect of the crisis on innovative firms. This paper addresses this gap using a dataset of over 10,000 UK SME employers. We find that innovative firms are more likely to be turned down for finance than other firms, and this worsened significantly in the crisis. However, regressions controlling for a host of firm characteristics show that the worsening in general credit conditions has been more pronounced for non-innovative firms with the exception of absolute credit rationing which still remains more severe for innovative firms. The results suggest that there are two issues in the financial system. The first is a structural problem which restricts access to finance for innovative firms. The second is a cyclical problem has been caused by the financial crisis and has impacted relatively more severely on non-innovative firms.
    • The role of loan commitment terms in credit allocation on the UK small firms loan guarantee scheme

      Cowling, M; Matthews, C; Liu, W.; University of Brighton (Senate Hall Academic Publishing, 31/03/2017)
      In this paper we provide empirical evidence concerning the nature of loan commitment contracts as reflected by individual loan contract parameters in influencing the size of bank commitments. Specifically, we consider how the quantitative allocation of credit, the loan amount, is affected or altered by changes to other components of the total loan package. By doing so we shed some more light on the types of real world trade-offs that credit constrained firms might face when approaching banks for funds, using the UK governments loan guarantee programme. Our results point at the importance of relationship lending in the UK.
    • Corporate social responsibility performance and tax aggressiveness

      Chijoke-Mgbame, M.A; Yekini, Liafisu Sina; Kemi, Y.C; Mgbame, C.O; Coventry University (Academic Journals, 30/09/2017)
      This study investigated the effect of corporate social responsibility (CSR) performance on tax aggressiveness of listed firms in Nigeria. A cross-sectional research design was utilized for the study, and data were collected from the published annual reports. Using a sample of 50 companies for the period of 2007 to 2013, the findings of the study reveal that there is a negative relationship between CSR performance and tax aggressiveness in Nigeria. A significant relationship was also found between firm size and tax aggressiveness, though with mixed positive and negative results. In addition, the results reveal a negative and significant relationship between firm performance and tax aggressiveness, and the extent of tax aggressiveness is reinforcing. It can be concluded that firms are more or less likely to engage in tax aggressiveness depending on their CSR standpoints and dimension and other corporate characteristics. It is recommended that more attention should be given by tax administrations to understand conditions where tax aggressiveness is more likely and measures should be put in place to combat it.
    • The innovation debt penalty: Cost of debt, loan default, and the effects of a public loan guarantee on high-tech firms

      Cowling, M; Ughetto, E; Lee, N.; University of Brighton (Elsevier, 28/06/2017)
      High-technology firms per se are perceived to be more risky than other, more conventional, firms. It follows that financial institutions will take this into account when designing loan contracts, and that this will manifest itself in more costly debt. In this paper we empirically test whether the provision of a government loan guarantee fundamentally changes the way lenders price debt to high-tech firms. Further, we also examine whether there are differential loan price effects of a public guarantee depending on the nature of the firms themselves and the nature of the economic and innovation environment that surrounds them. Using a large UK dataset of 29,266 guarantee backed loans we find that there is a high-tech risk premium which is justified by higher default, but, in general, that this premium is altered significantly when a public guarantee is provided for all firms. Further, all these loan price effects differ on precise spatial economic and innovation attributes.
    • The World is your Oyster: The Effects of Knowledge, Human Capital, Technology and Entry Timing on International Growth

      Cowling, M; Liu, W; Zhang, N.; University of Brighton (Senate Hall Academic Publishing, 27/06/2016)
      We draw on elements of several established theories of internationalization to provide a framework for exploring international market entry and scale of entry measured by number of foreign markets entered for a sample of young, high-tech, firms from the UK and Germany. We find that founding team human capital is associated with more extensive internationalization, as is intensity of R&D, early internationalization and early stage venture capital. We also find that internationalizing firms who choose the US as their first international market entry are also those most likely to develop more extensive international market presence. Degree of asset specificity, in contrast, is associated with less extensive internationalization.
    • Impact of board independence on the quality of community disclosures in annual reports.

      Yekini, K.C; Adelopo, I; Andrikopoulos, P; Yekini, Liafisu Sina; Coventry University (Taylor and Francis, 27/02/2019)
      This study investigates the link between board independence and the quality of community disclosures in annual reports. Using content analysis and a panel dataset from UK FTSE 350 companies the results indicate a statistically significant relationship between board independence, as measured by the proportion of nonexecutive directors, and the quality of community disclosures, while holding constant other corporate governance and firm specific variables. The study indicates that companies with more non-executive directors are likely to disclose higher quality information on their community activities than others. This finding offers important insights to policy makers who are interested in achieving optimal board composition and furthers our understanding of the firm's interaction with its corporate and extended environment through high-quality disclosures. The originality of this paper lies in the fact that it is the first to specifically examine the relationship between outside directors and community disclosures in annual reports. The paper contributes both to the corporate governance and community disclosure literature.
    • Multiple disadvantage and wage growth: The effect of merit pay on pay gaps

      Woodhams, C; Lupton, B; Perkins, G; Cowling, M; University of Brighton (Wiley, 24/02/2015)
      This article concerns rates of wage growth among women and minority groups and their impact on pay gaps. Specifically, it focuses on the pay progression of people with more than one disadvantaged identity, and on the impact of merit pay. Recent research indicates that pay gaps for people in more than one disadvantaged identity category are wider than those with a single‐disadvantaged identity. It is not known whether these gaps are closing, at what rate, and whether all groups are affected equally; nor is it known whether merit pay alleviates or exacerbates existing pay gaps. In addressing these issues, the analysis draws on longitudinal payroll data from a large UK‐based organization. Results show that pay gaps are closing; however, the rate of convergence is slow relative to the size of existing pay disparities, and slowest of all for people with disabilities. When the effect of merit pay is isolated, it is found to have a small positive effect in reducing pay gaps, and this effect is generally larger for dual/multiple‐disadvantaged groups. These findings run counter to the well‐established critique of merit pay in relation to equality outcomes. The implications of this are discussed, and an agenda for research and practice is set out. © 2015 Wiley Periodicals, Inc.
    • On the productive efficiency of Australian businesses: firm size and age class effects

      Cowling, M; Tanewski, G.; University of Brighton (Elsevier, 22/06/2018)
      After 26 years of growth, the Australian economy is beginning to show signs of stress and declining productivity. In this paper, we consider aspects of productive efficiency using an Australian business population data set. Using a production function approach, several key findings are uncovered. Firstly, decreasing returns to scale are identified as a significant feature of the Australian business sector. This implies that not all firm growth will lead to productivity gains. Secondly, there are significant differences in the way value added is created between small and large firms. In the largest 25% of firms, the capital contribution to value added is four times that of the smallest 25% of firms. Thirdly, efficiency follows an inverted ‘U’ shaped in firm age with the youngest (0–2 years) and oldest (> 9 years) firms being less productive than the middle 50% of firms. Fourthly, there are also huge industry sector variations in productivity. In particular, financial services appears to be the most productively efficient sector in the Australian economy and mining the least efficient.
    • Quantitative impacts of mandatory integrated reporting

      Conway, Elaine; University of Derby (Emerald, 2019-12-02)
      This paper examines the impact of the 2011 mandatory introduction of integrated reporting (IR) on the financial performance, risk and institutional shareholding of listed companies in South Africa to assess whether there is a benefit to IR and which may encourage greater adoption of it globally. It contrasts the results with two other African stock exchanges (Nigeria and Egypt with no mandatory IR) and examines whether IR quality also has an impact on these and on Environmental, Social and Governance (ESG) disclosure scores. A series of multivariate ordinary least squares regressions were estimated on a range of financial, risk, institutional and ESG data from firms on the three African stock exchanges, between 2006-2015. Financial performance and risk in South African firms appear to have decreased since the start of mandatory reporting, but institutional shareholding has increased. The production of higher quality reports is associated with decreased financial performance and risk, higher institutional shareholding and increased ESG scores. This study is first to test the quantitative effects of IR and IR quality on a broad range of financial performance and risk measures and the level of institutional shareholding. It also adds to the literature by assessing how the quality of IR can impact the ESG scoring of the business. Hence this study is of interest to firms looking to adopt IR for its benefits and to regulatory bodies considering the mandatory adoption of IR in support of achievement of national social and environmental goals.
    • Critical review on social marketing planning approaches

      Akbar, M Bilal; French, Jeff; Lawson, Alison; University of Derby; Strategic Social Marketing (Westburn Publishers, 2019-11-13)
      This paper presents the first attempt to map and critically review existing social marketing planning approaches. The discussion highlights that existing social marketing planning approaches have moved on from older product-driven models towards a more customer/citizen-oriented, stakeholder engagement and value creation narrative. There is also a growing connection between social marketing planning approaches and theories from other disciplines. This recognises that a simple push marketing strategy, which was the working principle of many early social marketing-planning approaches, is not often effective for contemporary social marketing practice. Effective social marketing planning requires a greater emphasis on new social marketing principles derived from the new global consensus social marketing definition such as more citizen focus, sustainable outcomes, and ethical practice. Thus, highlighting a need for more comprehensive social marketing planning approaches with a better understanding of recent theory development of social marketing as a field in order to be relatable and efficient. The review sets out some original thinking about how planning in the field of social marketing can be strengthened through a more inclusive adoption of both system thinking analysis and integration with other fields of theory and practice that are seeking to influence behaviour for social good. This review is exploratory in nature and evaluates only 14 social marketing planning approaches; more social marketing approached exist and could be considered in further reviews.
    • Wasta in Jordanian banking: An emic approach to a culture-specific concept of social networking and its power-implications

      Ali, Sa’ad; Weir, David; University of Worcester (Routledge, 2019-11-07)
      This chapter reviews the background and cultural implications of wasta business networking in the Jordanian banking sector. The chapter starts with exploring this practice, its origin and its use in Jordanian society and business context, highlighting how wasta is often viewed with an etic approach by its researchers and related to concepts such as corruption and favouritism. The wider context of wasta in Jordan is explored and wasta is viewed with an emic approach, drawing on insights from 17 interviews in the case of Jordanian banking sector. A more balanced exploration of wasta is offered, drawing on the role of identity and power in wasta practice and highlighting its possible benefits and drawbacks in employee selection. Reflexive considerations of using wasta to research wasta and the authors’ insider/outsider statuses are discussed and recommendations to students, researchers and practitioners are offered.
    • Psychopathic traits of corporate leadership as predictors of future stock returns

      Wisniewski, Tomasz Piotr; Yekini, Liafisu Sina; Omar, Ayman; Coventry University (Wiley, 2019-10-07)
      This paper examines whether it is possible to forecast one-year-ahead returns of individual companies based on the observed ‘psychopathic’ characteristics of their top management team. We find that language characteristic of psychopaths present in annual report narratives, questionable integrity, excessive risk-taking and failure to contribute to charitable undertakings tend to reduce future shareholder wealth. These findings imply that firms could benefit from incorporating psychological evaluation in their recruitment processes, especially when seeking to fill senior management posts. While the return predictability described in this paper supports the upper echelons perspective, it simultaneously challenges the notion of informationally efficient stock prices.
    • Blockchain in supply chain management: Australian manufacturer case study

      Abou Maroun, Elias; Daniel, Jay; Zowghi, Didar; Talaei-Khoei, Amir; University of Technology Sydney; University of Derby; University of Nevada (ASSRI and Springer, 2019-10-06)
      The recent explosion of interest around Blockchain and capabilities of this technology to track all types of transaction more transparently and securely motivate us to explore the possibilities Blockchain offers across the supply chain. This paper examines whether Blockchain makes a good fit for use in an Australian manufacturer supply chain. To address this, the research uses Technology Acceptance Model (TAM) as a framework from the literature. Blockchain allows us to have permissioned or permission-less distributed ledgers where stakeholders can interact with each other. It details how Blockchain works and the mechanism of hash algorithms which allows for greater security of information. It also focuses on the supply chain management and looks at the intricacies of a manufacturers supply chain. We present a review of the processes in place of an electrical manufacturer and the problems faced in the supply chain. A model is proposed in using public and private Blockchains to overcome these issues. The proposed solution has the potential to bring greater transparency, validity across the supply chain, and improvement of communication between stakeholders involved. We also point out some potential issues that should be considered if adopting Blockchain.
    • The adoption of IPSAS (accrual accounting) in Indonesian local government: a neo-institutional perspective

      Boolaky, Pran; Mirosea, Nitri; Omoteso, Kamil; Griffith University; University of Derby (Routledge, 2019-10-02)
      This study investigates the speed and drivers of IPSAS adoption in Indonesia. Using data from 205 local government entities, the results show while the interaction between auditors and representatives of opposition on the council has more impact on the speed of adoption than with the councillors representing the government, the timing of the council meeting has delayed the adoption of IPSAS accrual. Government grant, Supreme Audit Office, councillors and religious beliefs are the isomorphic drivers of IPSAS adoption. Our results support the hypotheses that the three institutional pressures (coercive, mimetic and normative) influence the speed of IPSAS adoption.
    • Two decades of European self-employment: Is the answer to who becomes self-employed different over time and countries?

      Millán, José María; Yue, Wei; Cowling, M; University of Derby; University of Huelva; University of Brighton (Elsevier, 2019-10-01)
    • Differential market valuations of board busyness across alternative banking models

      Elnahas, Marwa; Omoteso, Kamil; Salama, Aly; Trinh, Vu Quang; Newcastle University; University of Derby (Springer, 2019-09-03)
      This study comparatively assesses the influence of board busyness (i.e., multiple directorships of outside directors) on stock market valuations of both Islamic and conventional banks. For a sample of listed banks from 11 countries for the period 2010-2015, results show that board busyness is differentially priced by investors depending on the bank type. In conventional banks, board busyness is significantly and positively valued by the stock market. This result suggests that investors perceive some reputational benefits arising from a busy board (e.g., extended industry knowledge, established external networks or facilitation of external market sources). In contrast, we find no supporting evidence on the market valuations of board busyness in Islamic banks. This result might be attributed to, both, the complex governance structure and the uniqueness of the business model which require additional effective monitoring, relative to that employed in conventional banking. Our results also show that investors provide significantly low market valuations for busy Shari’ah advisory board which acts as an additional layer of governance in Islamic banks. Findings in this study offer important policy implications to international banking studies and regulations governing countries with dual-banking systems.
    • The application of big data and AI in the upstream supply chain

      Hanson-New, Colin; Daniel, Jay; University of Derby (Logistics Research Network, 2019-09)
      The use of Big Data has grown in popularity in organisations to exploit the purpose of their primary data to enhance their competitiveness. In conjunction with the increased use of Big Data, there has also been a growth in the use of Artificial Intelligence (AI) to analyse the vast amounts of data generated and provide a mechanism for locating and constructing useable patterns that organisations can incorporate in their supply chain strategy programme. As these organisations embrace the use of technology and embed this in their supply chain strategy, there are questions as to how this may affect their upstream supply chains especially with regards to how SME’s may be able to cope with the potential changes. There exists the opportunity to conduct further research into this area, mainly focusing on three key industry sectors of aerospace, rail and automotive supply chains.
    • An investigation of supply chain operational improvements for small and medium enterprises (SMEs): A UK manufacturing case study

      Sawe, Fredrick; Daniel, Jay; University of Derby (IEOM Society, 2019-07)
      In an increasingly turbulent business environment and intensive market competition and globalisation, manufacturing organisations of the 21st century have been forced to continuously seek improvements in their supply chain operations to increase productivity and quality. Therefore, making competition no longer between organisations but rather among its supply chains by seeking to reduce costs and improve quality as an alternative to gain higher market share. This paper investigates different aspects of operations and supply chain improvement of a small and medium manufacturing organisation in UK. The main objective of this paper is to help SMEs to identify deficiencies in their operations and take necessary steps to correct them to enhance performance and productivity in their supply chain operations. For this to happen, the current study has implemented lean approach as a method to improve the organisation’s supply chain, enhancing the quality of processes and products. By conducting interviews and observations together with gathering company internal records, it remarks some potential problems of the manufacturing company. Finally, several recommendations (such as introducing ERP system) are made for future improvements.
    • Adoption of blockchain technology in supply chain transparency: Australian manufacturer case study

      Maroun, Elias A.; Daniel, Jay; Fynes, Brian; University of Derby; University of Technology Sydney; University College Dublin (European Decision Sciences Institute (EDSI), 2019-06)
      The arrival and capabilities of Blockchain is set to change traditional supply chain activities. Consumers are increasingly demanding details about the products they purchase, the sources of the manufactured product and manufacturing details. Organisations are declaring that they strive to improve labour practices and minimise the environmental effect of manufacturing goods however consumers still have a limited view of supply chains. The increasing development of the digital economy, the internet of things (IOT) and the growing use of sensors providing information in supply chains is providing Blockchain leverage to streamline and create an efficient supply chain track and trace of all types of transactions more transparently and securely. This paper explores the adoption of Blockchain technology in supply chain transparency. Specifically, we examine whether Blockchain technology is a good fit for use in an Australian manufacturer supply chain. Blockchain allows us to have permissioned or permission-less distributed ledgers where stakeholders can interact with each other. We describe in detail how Blockchain works and the mechanism of hash algorithms, which allows for greater security of information. Using a single case study, we focus on the intricacies of this technology and present a summary of adoption for Blockchain technology. The adoption for using Blockchain technology has the potential to bring greater transparency, validity across the supply chain, and improvement of communication between all stakeholders involved.
    • Developing graduate entrepreneurs: exploring the experiences of university entrepreneurs in residence

      Aluthgama-Baduge, Chinthaka; Rajasinghe, Duminda; University of Derby; University of Northampton (Nottingham Business School & Academy of Human Resource Development, 2019-06)
      This study aims to explore the coaching experience of entrepreneurs in residence in the UK higher education institutions. ‘The entrepreneurs in residence’ is a relatively new intervention. The individuals who hold these positions appear to claim that they coach the potential entrepreneurs to facilitate to acquire required skills to become successful entrepreneurs. However, this is a relatively under-researched area both within coaching and enterprise/entrepreneurship education. Therefore, we aim to explore individual experience of entrepreneurs in residence (provider of the service) and the students' (receiver) perspectives to develop a deeper understanding of how entrepreneurs in residence supports students to gain required understanding, skills and knowledge to become successful entrepreneurs in future. We ask: How entrepreneurs in residence make sense of their intervention / experience in coaching practice? Therefore, our main aim is to explore entrepreneurs in residences’ experience to address the previously highlighted research and practice gap. The student perspectives are used to develop additional understanding of entrepreneurs in residences’ sense-making. Considering the subjective and contextual nature of the study, and its interest in human experience and hermeneutics, the study is conducted adopting Interpretative Phenomenological Analysis (IPA) as the research methodology. This is a working paper, therefore, there is no empirical data collected but the study aims to contribute to develop understanding of the role of entrepreneurs in residence in the UK universities, i.e. their role in developing future entrepreneurs. This study has potential in influencing policy while informing practice and the literature.