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Larger Firms (larger + firm)
Selected AbstractsThe Pennsylvania certified safety committee program: An evaluation of participation and effects on work injury ratesAMERICAN JOURNAL OF INDUSTRIAL MEDICINE, Issue 8 2010Hangsheng Liu PhD Abstract Background Since 1994, Pennsylvania, like several other states, has provided a 5% discount on workers' compensation insurance premiums for firms with a certified joint labor management safety committee. This study explored the factors affecting program participation and evaluated the effect of this program on work injuries. Methods Using Pennsylvania unemployment insurance data (1996,2006), workers' compensation data (1998,2005), and the safety committee audit data (1999,2007), we conducted propensity score matching and regression analysis on the program's impact on injury rates. Results Larger firms, firms with higher injury rates, firms in high risk industries, and firms without labor unions were more likely to join the safety committee program and less likely to drop out of the program. The injury rates of participants did not decline more than the rates for non-participants; however, rates at participant firms with good compliance dropped more than the rates at participant firms with poor compliance. Conclusions Firm size and prior injury rates are key predictors of program participation. Firms that complied with the requirement to train their safety committee members did experience reductions in injuries, but non-compliance with that and other requirements was so widespread that no overall impact of the program could be detected. Am. J. Ind. Med. 53:780,791, 2010. © 2010 Wiley-Liss, Inc. [source] Avoiding market dominance: product compatibility in markets with network effectsTHE RAND JOURNAL OF ECONOMICS, Issue 3 2009Jiawei Chen As is well recognized, market dominance is a typical outcome in markets with network effects. A firm with a larger installed base offers a more attractive product which induces more consumers to buy its product which produces a yet bigger installed base advantage. Such a setting is investigated here but with the main difference that firms have the option of making their products compatible. When firms have similar installed bases, they make their products compatible in order to expand the market. Nevertheless, random forces could result in one firm having a bigger installed base, in which case the larger firm may make its product incompatible. We find that strategic pricing tends to prevent the installed base differential from expanding to the point that incompatibility occurs. This pricing dynamic is able to neutralize increasing returns and avoid the emergence of market dominance. [source] Corporate social responsibility in Asian supply chainsCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2006Richard Welford Abstract This research provides an overview of CSR practices in Asia, evaluates the usefulness of codes of conduct, reviews the benefits of CSR in supply chains and reviews obstacles for companies wishing to adopt good CSR practices. In order to achieve this, interviews were undertaken with CSR managers, factory managers and other experts, conducted in confidence and anonymously. Codes of conduct and associated inspections and audits are common practice but in most cases flawed. Labour issues and the rights of workers are generally seen as the most important aspect of CSR in the region. Benefits of CSR include risk reduction, staff recruitment and retention, cost savings and building good relationships with stakeholders. Obstacles include a lack of resources and skills, a lack of awareness of stakeholders' demands and inefficient production techniques. It is noted that larger firms are more able to overcome such obstacles, with clear adverse implications for smaller companies. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] WORKFORCE COMPOSITION AND FIRM PRODUCTIVITY: EVIDENCE FROM TAIWANECONOMIC INQUIRY, Issue 4 2010JIN-TAN LIU We study the relationship between workforce composition and firm productivity based on a new employee-employer-matched data set, using an array of workforce characteristics and three alternative measures of firm productivity. While firm age is not essential for the performance of firms, those of smaller size and those in the steel and transportation industries outperform others. Moreover, labor quality, particularly the middle-aged with higher education, contributes significantly to firms' productivity. Furthermore, economic incentives and market competition both play important roles in the performance of firms. Finally, there is an employer-size premium with larger firms paying higher wages and nonwage benefits. (JEL C33, D20, J30) [source] The Macroeconomic Implications of Regulatory Capital Adequacy Requirements for Korean BanksECONOMIC NOTES, Issue 1 2000G. Choi The capital adequacy requirement, combined with the flight to quality, contributed to a drastic credit slowdown and a sharp recession in Korea in the aftermath of the financial crisis. Since most banks were placed under the strengthened capital adequacy constraints, they reduced loans to firms with high credit risks. As a result, bank-dependent small and medium-sized enterprises (SMEs) were badly hit, and eventually demand for bank loans fell. The reduction in loans was most visible among banks with poor capital adequacy, yet the overall change in bank portfolios had a disproportionately large negative influence on financial conditions for SMEs. In conclusion, the banks' response to capital adequacy requirements resulted in changes in the loan/bond ratio which, in turn, reduced loans to SMEs and caused a sharp cut in production. The resulting contraction in SME production created a polarized industrial structure and a chronic depression in the traditional sectors of the economy. The introduction of capital adequacy requirements (CARs) in the wake of financial crisis worsened conditions for SMEs and weakened the validity of the CARs that were mainly necessitated by successive failures among larger firms. [source] Socialism and Intrafirm Asset AllocationEUROPEAN FINANCIAL MANAGEMENT, Issue 2 2005Petra Joerg G31; L22; M14 Abstract We rely on a survey of Swiss firms to document deviation from first-best for reasons of internal ,fairness' when allocating resources. This ,socialist' practice is more widespread in smaller than in larger firms. It ignores the reputation and past performance of the managers who apply for funding, but takes into account their hierarchical position and their past use of resources. Socialism is only partially explained by concerns about empire building and managerial optimism, and it is not meant to benefit shareholders. [source] Globalization and Regional Change in the U.S. Furniture IndustryGROWTH AND CHANGE, Issue 2 2008MARK H. DRAYSE ABSTRACT Furniture manufacturing has experienced rapid globalization in recent years. This is mainly the result of global production networks established by large manufacturers and retailers seeking to reduce costs in a highly competitive environment. The industry's globalization has been facilitated by technological innovations and the global reduction of trade and investment barriers. In the U.S., furniture-producing regions are experiencing tumultuous change. Growing numbers of firms are outsourcing production to China, which is now responsible for about half of all U.S. furniture imports. Employment levels have plummeted. However, an analysis of spatial patterns of employment, output, and capital investment in U.S. furniture manufacturing shows that regional change is not uniform. Southern regions characterized by larger firms specializing in wooden case goods production have been especially vulnerable to job loss. [source] Management development in small firmsINTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Issue 3 2006Nerys Fuller-Love This paper is a review of the literature concerning management development in small firms. It looks at the benefits in terms of growing a small firm and whether the lack of management skills contributes to their failure. In addition, this paper looks at some of the barriers to management development, including the attitudes and characteristics of the entrepreneur, and also looks at learning models that may be appropriate for small firms. The paper also looks at the authors' views on the effectiveness of management development for small firms, the barriers to learning as well as the skills required. Management development programmes are now widely accepted as a means of improving the competitiveness of firms and the economy as a whole. Although management education and training has, in the past, been designed mainly for larger firms, there is a growing awareness of the requirements of small businesses. Government initiatives designed to encourage start-ups and to boost the growth of small firms have emphasized the importance of management development. This review of the literature shows that, on balance, management development programmes are effective for small firms. The main benefits appear to be survival and growth, reduction in failure and improvement in performance. The skills required include leadership and management, developing management systems and techniques and team building. Other skills include planning, delegation and financial management. The paper concludes that there is a need for further research into the effectiveness of management development programmes, the skills required and the barriers to learning in small firms and, also, whether they have an impact on the survival, growth and profitability of small firms. [source] Unlocking the potential to influence government skills policy: a case study of the UK construction industryINTERNATIONAL JOURNAL OF TRAINING AND DEVELOPMENT, Issue 4 2008Arthur Morgan Despite a series of national policy initiatives aimed at addressing skills shortages in a number of sectors, little evidence of longer-term change is apparent. This paper examines concerns expressed by small businesses that their local views are not sought or considered when national training policies and initiatives are either being developed or being implemented, and that the investment in skills development does not appear to adequately represent their skills needs. The research was carried out on the UK construction industry, which is characterized by a small number of large contractors who employ mainly managerial and professional staff, and a large number of small, micro- and self-employed firms that provide, on a subcontract basis, the majority of the industry's demand for a skilled manual workforce. The identification and delivery of vocational education and training at an industry level rests firmly on addressing the skills needs of the small and micro-type organizations and not those of the large construction firms, although it is the voice of the larger firms that appears to dominate the skills and training development agenda. The public policy model that articulates the requirements for training and skills development in the UK is based on sector-specific skills councils. This model is examined in relation to the construction sector by drawing upon the experiences of the South Wales region as a case study. Findings indicate that the current construction skills framework, upon which public policy is formulated and delivered, fails to adequately reflect the structure, skills and training priorities of the industry. The tensions that exist in this system are highlighted and the implications for reform of public policy articulation with regard to sector skills councils are discussed. [source] FINANCIAL STRATEGY FOR MIDDLE MARKET COMPANIES: a ROUNDTABLE DISCUSSIONJOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2000Article first published online: 5 APR 200 Dennis Soter begins with the provocative observation that "U.S. companies, private as well as public, are systematically underleveraged," and goes on to suggest that debt-financed stock repurchases may help address the current valuation problems faced by many middle market companies (and by many larger firms in basic industries as well). Soter makes his case by presenting two case histories. In the first, Equifax, the Atlanta-based provider of credit information services, combined a leveraged Dutch auction stock repurchase with a multi-year series of open market repurchase programs and an EVA incentive plan to produce large increases in operating efficiency and shareholder value. In the second, FPL Group (the parent of Florida Power and Light) became the first profitable utility to cut its dividend, substituting a policy of ongoing stock repurchase for its 33% reduction in dividend payments. Following Soter, John Brehm, the CFO of IPALCO Enterprises (the parent of Indianapolis Power and Light), explains the rationale for his company's decision to become the first utility to do a leveraged recap (while also cutting its dividend by a third). As in the case of Equifax, IPALCO's dramatic change in capital structure (also combined with an EVA incentive plan) was associated with major operating improvements and a positive stock market response. But, of course, high leverage is not right for all companies. And, to reinforce that point, James Perry, CEO of Argosy Gaming, recounts his harrowing experience of having to raise new equity shortly after taking charge of his overleveraged company. By arranging an infusion of convertible preferred, Argosy was able not only to stave off bankruptcy, but to fund major new investment and engineer a remarkable turnaround of its operations. Finally, William Dutmers, Chairman of Knape & Vogt, a small midwestern manufacturing company, discusses the role of debt-financed stock repurchases and an EVA management approach in his company's recent operating improvements. [source] Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical AnalysisJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2002Nicholas Wilson Trade credit has been shown to be an important source of short-term finance for smaller firms but small firms are also suppliers of trade credit. There is little empirical evidence on the credit granting decisions of small firms. Previous empirical work (Petersen and Rajan, 1997; and Ng, Smith and Smith, 1999) has focused on credit granting and investment in accounts receivable in larger firms. In this paper we look at the influences on credit granting for the smallest firms, using a sample of firms with an average of 10 employees. As in previous studies we find that product and demand characteristics influence credit terms. Moreover, we find evidence that firm size affects credit extension choices directly by setting limits on the possibilities for economies of scale, but it also impacts indirectly by affecting the firm's access to finance and its bargaining strength vis-à-vis suppliers. The dominant position of larger customers in bargaining with small suppliers constrains the impact of other factors on the firm's choice of credit terms. Small firms are also under pressure to conform to industry norms, although lack of resources can be a limiting factor. Constrained firms may make use of two-part terms in an attempt to improve their cashflow. [source] Barriers to Innovation among Spanish Manufacturing SMEsJOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 4 2009Antonia Madrid-Guijarro Innovation is widely recognized as a key factor in the competitiveness of nations and firms. Small firms that do not embrace innovation within their core business strategy run the risk of becoming uncompetitive because of obsolete products and processes. Innovative firms are a perquisite for a dynamic and competitive economy. This paper reports on the results of a study that examined barriers to firm innovation among a sample of 294 managers of small and medium-sized enterprises (SMEs) in Spain. The study examined the relation between (1) product, process, and management innovation and (2) 15 obstacles to innovation, which can limit a firm's ability to remain competitive and profitable. Findings of the study show that barriers have a differential impact on the various types of innovation; product, process, and management innovation are affected differently by the different barriers. The most significant barriers are associated with costs, whereas the least significant are associated with manager/employee resistance. Additionally, the results demonstrate that the costs associated with innovation have proportionately greater impact on small than on larger firms. The findings can be used in the development of public policy aimed at supporting and encouraging the innovation among SMEs in Spain. Government policies that encourage and support innovation among all firms, especially small firms, can help countries remain competitive in a global market. Public policy that encourages innovation can enable firms to remain competitive and survive, both of which have direct implications for employment and a country's economic viability. The results may also be insightful for managers who are attempting to encourage innovation. Understanding barriers can assist managers in fostering an innovative culture by supporting new ideas or by avoiding an attitude that creates resistance to new ideas. [source] Contrasting Strategic Response to Economic Recession in Start-Up versus Established Software Firms,JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 2 2009Scott Latham Economic recessions represent a period of greatly reduced environmental munificence that threatens the survival of all firms. This is especially the case for smaller, start-up firms, which have been shown to fail at a much higher rate compared with their larger, more established peers. This study surveyed 137 software executives regarding their strategic response to the most recent economic downturn (2001,2003). I draw upon Hofer's framework for turnaround strategies to develop hypotheses to explore how smaller, start-up firms adjust their strategies in response to economic recession. The results suggest that start-up organizations are much more inclined to pursue revenue-generating strategies as a means to weathering recession rather than cost reductions, which tended to be the preferred strategy of larger firms. [source] When and Why do Plants Comply?LAW & POLICY, Issue 2 2005Paper Mills in the 1980s This paper uses census data for 116 pulp and paper mills over the period 1979,1990 to examine the determinants of compliance with air pollution regulations. Several plant characteristics are significant: large plants, old plants, and pulp mills comply less frequently, as do plants with water pollution or OSHA violations, but firm characteristics generally are not significant. Enforcement activity increases compliance, but in a heterogeneous way: pulp mills are less sensitive to inspections, while plants owned by larger firms are less sensitive to inspections and more sensitive to "other" enforcement actions, consistent with the authors' expectations and prior research results. [source] Economies of scale after deregulation in LTL trucking: a test case for the survivor techniqueMANAGERIAL AND DECISION ECONOMICS, Issue 4 2008James N. GiordanoArticle first published online: 4 MAR 200 Early critics of motor carrier deregulation believed that the policy was unwise because strong economies of scale would lead to harmful market concentration, particularly in the industry's LTL segment. Using two methodologies, the survivor technique and the trans-log cost function, this study finds that economies of scale do extend across the entire spectrum of firm sizes in LTL trucking. Long-run average cost appears to decline mildly and at a diminishing rate with increases in firm size, however, such that any cost advantage for larger firms has been insufficient to eliminate new entry and competition from smaller rivals. As a result, after the first 20 years of deregulation, the corresponding increase in market concentration has also been mild. Moreover, the consistency of results from the two methodologies gives credibility to the survivor technique as an empirical method of identifying economies of scale. Copyright © 2008 John Wiley & Sons, Ltd. [source] MARKET REACTIONS TO THE PASSAGE OF THE FINANCIAL HOLDING COMPANY ACT IN TAIWANPACIFIC ECONOMIC REVIEW, Issue 4 2008Jane-Sue Wang Abstract. We examine how financial institutions react to various events surrounding the passage of Taiwan's Financial Holding Company Act in June 2001. Empirical results indicate that the financial system experiences significant abnormal returns along the legislative process. Smaller firms have significantly higher abnormal returns, thus lending no support for the hypothesis that larger firms benefit more from the Act. Further analysis shows that the significance of market value is replaced by a significant securities industry effect, thereby consistent with the observation that Taiwan's securities firms are generally smaller in market values and are potential target firms for financial holding companies. [source] FDI AND DOMESTIC INVESTMENT IN TAIWAN: AN ENDOGENOUS SWITCHING MODELTHE DEVELOPING ECONOMIES, Issue 4 2007Hui-lin LIN F23; D24; F21; C24 The purpose of this paper is to examine the effect of the FDI decision on domestic investment in the case of Taiwanese manufacturing firms. In addition, we also consider the deferral effect of the FDI decision and the role of firm size. To this end, this paper takes advantage of an endogenous switching model from which consistent estimators are obtained after correcting for the self-selection problem. The empirical results show that the effect of these manufacturing firms' FDI decisions on domestic investment is significant within the firms. Furthermore, a crowding-out effect of FDI on domestic investment is found when Taiwanese firms engage in defensive FDI. Finally, FDI is found to have a positive influence on the domestic investment of the larger firms, while the influence is negative in the case of the smaller firms. [source] The Quality of Entrepreneurs,THE ECONOMIC JOURNAL, Issue 539 2009Hans K. Hvide What determines the quality of entrepreneurs? The article proposes a model of the interaction between individual workers' decision to become entrepreneurs and employers' efforts to keep their best workers and ideas. The main prediction from the model is that larger firms produce entrepreneurs of higher quality than smaller firms. Using novel and unique Norwegian data, I find that previous employer size exerts a significant influence on entrepreneurial performance. For example, increasing previous employer size from the 25 percentile to the 75 percentile increases yearly profitability on assets by 6 percentage points. [source] ECONOMICS OF THE LIVING DEAD,THE JAPANESE ECONOMIC REVIEW, Issue 1 2006TAKEO HOSHI Zombie firms are those firms that are insolvent and have little hope of recovery but avoid failure thanks to support from their banks. This paper identifies zombie firms in Japan, and compares the characteristics of zombies to other firms. Zombie firms are found to be less profitable, more indebted, more dependent on their main banks, more likely to be found in non-manufacturing industries and more often located outside large metropolitan areas. Overall, larger size makes the firm less likely to be a zombie, but among small firms, relatively larger firms are more likely to be protected and become zombies. Controlling for profitability, the exit probability for zombie firms does not differ from that for non-zombies. Zombie firms tend to increase employment by more (but do not reduce employment by more) than non-zombies. Finally, when the proportion of zombie firms in an industry increases, job creation declines and job destruction increases, and the effects are stronger for non-zombies. [source] Factors influencing the quality of corporate environmental disclosureBUSINESS STRATEGY AND THE ENVIRONMENT, Issue 2 2008Stephen Brammer Abstract Many firms choose to communicate their environmental strategies through voluntary environmental disclosures. This paper examines patterns in the quality of voluntary environmental disclosures made by a sample of around 450 large UK companies drawn from a diverse range of industrial sectors. The analysis distinguishes between five facets of quality, including the disclosure of group-wide environmental policies, environmental impact targets and an environmental audit. We examine how the decisions firms face regarding each facet of quality are determined by firm and industry characteristics, and find the quality of disclosure to be determined by a firm's size and the nature of its business activities. Specifically, we find high quality disclosure to be primarily associated with larger firms and those in sectors most closely related to environmental concerns. In contrast to several recent contributions, we find that the media exposure of companies plays no role in stimulating voluntary disclosures. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] Corporate environmental reporting: what's in a metric?BUSINESS STRATEGY AND THE ENVIRONMENT, Issue 2 2003R. Scott Marshall Assistant Professor of Management Although there has been increased attention to corporate environmental reports (CERs), there has yet to be a close examination of the metrics used in these reports. Metrics do not address the content of CERs, but, perhaps more importantly, metrics provide the means for conveying the content. In this paper, we analyze metrics used in 79 corporations' recent CER reports. We define and use an 'environmental sustainability' lens, and apply two environmental metrics taxonomies to CER metrics. We also consider the implications of key internal and external firm factors on CER metrics. Our findings suggest that (i) firms' compliance with ISO 14001 increases the presence of future oriented metrics, (ii) a majority of CER content uses lagging metrics with descriptive and operational performance information, (iii) larger firms are more likely than smaller firms to use future oriented metrics and (iv) there are noticeable differences across countries/regions in terms of CER metrics. Several important issues seem evident from the study. First, the metrics most commonly used in CERs provide little information about future performance. Second, the majority of metrics describe operations performance rather than environmental impact. Third, even though the sample was chosen based on a priori indicators of corporate environmental awareness, only about half of the companies sampled had a CER available. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment [source] | ||||||||||||||||||||||||||||