This paper presents an analytic procedure for the value added to different production levels with different policy options. The approach is stochastic and thus provides a framework for informed decision-making on productivity growth under uncertainty conditions. The model was applied to data collected from a firm and re-sults recommend that the firm should redevelop if in diversification and sy...

In this study, we investigate how divergence from the industry level of investment in information technology (IT) affects firm value. Theoretical arguments suggest that greater investment in IT relative to industry peers may positively affect firm value and that smaller relative investment may negatively affect firm value, but these arguments have not been empirically tested. We perform our ana...

Prior research has examined how a firm?s knowledge stock contributes to the value of its innovations, yet revealed mixed findings. We seek to reconcile this inconsistent evidence by studying how the age, origin, and popularity of knowledge affect the value of innovations. We claim that the age of knowledge which the firm incorporates exerts an inverted U-shaped effect on the value of innovation...

The post-Apartheid South African corporate governance (CG) model is a unique hybridisation of the traditional Anglo-American and Continental European-Asian CG models, distinctively requiring firms to explicitly comply with a number of affirmative action and stakeholder CG provisions, such as black economic empowerment, employment equity, environment, HIV/Aids, and health and safety. This paper ...

We consider the finite time horizon dividend-ruin model where the firm pays out dividends to its shareholders according to a dividend-barrier strategy and becomes ruined when the firm asset value falls below the default threshold. The asset value process is modeled as a restricted Geometric Brownian process with an upper reflecting (dividend) barrier and a lower absorbing (ruin) barrier. Analyt...

The post-Apartheid South African corporate governance (CG) model is a unique hybridisation of the traditional Anglo-American and Continental European-Asian CG models, distinctively requiring firms to explicitly comply with a number of affirmative action and stakeholder CG provisions, such as black economic empowerment, employment equity, environment, HIV/Aids, and health and safety. This paper ...

In this paper, we contribute to the ongoing debate about the extent to which CEOs influence firm performance. We also seek to shift the existing debate from its narrower focus on CEO effects on firm performance (typically measured as ROA) to a broader focus on CEO effects on firm value (operationalized in terms of Tobin’s Q) and on the components of firm value. We analyze the three components o...

Using Japanese firm data, this paper examines the relationship between firm value and financing decision factors within a free cash flow (FCF) framework. The findings are broadly consistent with the positive tax benefits hypothesis. We find that in firms leverage is positively related to firm value and dividends are negatively related to firm value during the sample period, 1985 to 1996. The re...

This study investigates the predictability of firm values for venture capital-backed firms. Having insights into the internal documents of more than 300 venture capitalists, we derive three common categories of firm value drivers: team characteristics, firm and market characteristics, and accounting information. Based on these value drivers, we provide a regression based valuation approach, whi...

Information Technology has brought significant business benefits to organizations. IT has allowed greater information sharing within and across firms leading to performance improvements. However, a comprehensive understanding of how information sharing beyond firm boundaries results in business value for the firm and what factors affect the resulting business value is still lacking in both rese...