Journal Articles

Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915

Browse

Filters

2023 - 20253

Settings

Has files: YesSubject: search.filters.subject.Firm value

Search Results

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Chair–CEO age dissimilarity and firm value – evidence from China
    (Emerald Publishing Limited, 2025-06-16) Hu Q; Bhuiyan MBU; Houqe MN
    Purpose: This study examines how age dissimilarity between the Chairman and Chief Executive Officer influences firm value. We also explore whether board monitoring intensity changes with the age dissimilarity between the Chair and CEO and whether it moderates the relationship between their age dissimilarity and firm value. Design/methodology/approach: We test our hypothesis by analysing 37,200 firm-year observations from 3,870 unique Chinese Stock Exchange-listed firms (2001–2021) using OLS, 2SLS Heckman and PSM methods. Findings: We find that higher age dissimilarity in firms is associated with decreased firm value. Additionally, increased age dissimilarity between the Chair and CEO is linked to lower board meeting frequency (low board monitoring intensity), negatively impacting firm value. This effect is more pronounced in firms with higher agency conflict, low concentration, dispersed ownership and non-SOE. Our findings are consistent and robust across alternative measures and endogeneity tests. Research limitations/implications: Our findings stress the policy importance of increasing board meeting frequency to enhance internal monitoring, mitigating potential negative impacts on firm value from age dissimilarity in top leadership roles. Originality/value: Our novel research emphasizes the unique influence of age diversity in top management roles (Chair and CEO) on firm strategy, coordination and communication – an understudied aspect of corporate governance. Our findings clarify the distinct impact of this factor on overall firm value.
  • Thumbnail Image
    Item
    Local creative culture and firm value
    (Elsevier Inc, 2024-01) D’ Costa M; Habib A
    In this paper we investigate the association between local creative culture, and firm value. Using data of US listed firms, we find strong evidence that firms headquartered in US counties with highly creative cultures generate higher firm value. We also find evidence that the positive association between creative culture and firm value is mediated partially through both the innovation and cash holding channels. Our results hold after controlling for endogeneity concerns. Our study contributes to the emerging literature on local creative culture by documenting that such a culture influences managers to undertake risky but profitable projects, thereby, increasing firm value.
  • Thumbnail Image
    Item
    Cost stickiness and firm value
    (Springer-Verlag GmbH, 2023-08-14) Costa MD; Habib A; Verbeeten F
    In this paper we explore the association between cost stickiness and firm value. Using a large sample of U.S. data, we find a robust negative relationship between cost stickiness and firm value. We then explore whether the resource adjustment, managerial expectations, and agency theories of cost stickiness affect the negative relation and find support for the managerial expectation and agency theories. Furthermore, we find evidence that the detrimental impact of cost stickiness on firm value is mediated partially through the cost of equity and cash flow channels. Further investigation suggests that the adverse effects of cost stickiness on firm value is stronger in the presence of high information asymmetry. We enrich the cost management literature by integrating cost stickiness with corporate finance.