Investor horizons and corporate policies under uncertainty

Dreyer, Christian; Schulz, Oliver

doi:10.1002/rfe.1129

Cited by 4 publications

(2 citation statements)

References 53 publications

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“…The greater the environmental uncertainty, the more difficult it is for the external supervisory authority or the media to supervise the major shareholders, which covers up the responsibility of the executives for investment failures [ 19 ], and the more difficult it is for the major shareholders’ infringement to be found, which increases the executive’s personal interest motives, and the major shareholders’ payment cost has been reduced. Major shareholders are the decision makers of major issues of the company, and technological innovation is a project that requires long-term investment and has a relatively high cost, so major shareholders may abandon R&D projects out of consideration of risks and returns [ 20 ]. Major shareholders with a high proportion of shares hold an evasive attitude towards high-risk R&D projects, and the probability of abandoning R&D increases [ 21 ].…”

Section: Theoretical Background and Research Hypothesismentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

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The paper analyzes the effect of environmental uncertainty on corporate technological innovation from the perspective of an innovation value chain under the institutional background of China. This paper not only discusses the intermediary effect of agency problems on environmental uncertainty and corporate technological innovation but also deeply explores the influence of information transparency, government subsidies, and other mechanisms to alleviate agency problems on environmental uncertainty and corporate technological innovation. We use the data of listed companies in China from 2008 to 2019 as the research sample, and the results show that, in general, environmental uncertainty has a negative effect on both input and output of technological innovation, and the negative effect can last for two years. Further research shows that the agency problem has an intermediary effect on the environmental uncertainty and corporate technology innovation, and the environmental uncertainty aggravates the agency problem, which hinders the input and output of corporate technology innovation. As an important mechanism to alleviate the agency problems, information transparency and government subsidies can effectively alleviate the agency conflict, thus reducing the inhibition of environmental uncertainty on the input and output of technological innovation. Our findings contribute to the discussion of driving factors for technological innovation in the context of China’s system. Our results provide useful insights into the link between environmental uncertainty and corporate innovation for economic academics and practitioners alike.

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Section: Theoretical Background and Research Hypothesismentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

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“…The entrepreneur's expectations and confidence are seen as an interest and reference point to the decision-maker, since they are the ones who define the context of the investor's decisions and which directly reflect on the business investment (Almor, 2018; Stoker et al ., 2019; Guo et al ., 2023). Expenditure decisions, especially on investment, may be postponed for an undetermined time in the face of uncertain scenarios (Resende and Terra, 2020; Dreyer and Schulz, 2022).…”

Section: Introductionmentioning

confidence: 99%

Exogenous shock: hierarchical effect of the industrial entrepreneur confidence in the mist of the COVID-19 pandemic

Conceição,

Lima

2023

RBF

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PurposeIn the context of investment decisions, the intricate interplay between exogenous shocks and their influence on investor confidence significantly shapes their behaviors and, consequently, their outcomes. Investment decisions are influenced by uncertainties, exogenous shocks as well as the sentiments and confidence of investors, factors typically overlooked by decision-makers. This study will meticulously examine these multifaceted influences and discern their intricate hierarchical nuances in the sentiments of industrial entrepreneurs during the COVID-19 pandemic.Design/methodology/approachEmploying the robust framework of the generalized linear latent and mixed models (GLLAMM), this research will thoroughly investigate individual and group idiosyncrasies present in diverse data compilations. Additionally, it will delve deeply into the exogeneity of disturbances across different sectors and regions.FindingsRelevant insights gleaned from this research elucidate the adverse influence of exogenous forces, including pandemics and financial crises, on the confidence of industrial entrepreneurs. Furthermore, a significant discovery emerges in the regional analysis, revealing a notable homogeneity in the propagation patterns of industrial entrepreneurs' perceptions within the sectoral and regional context. This finding suggests a mitigation of regional effects in situations of global exogenous shocks.Originality/valueWithin the realm of academic inquiry, this study offers an innovative perspective in unveiling the intricate interaction between external shocks and their significant impacts on the sentiment of industrial entrepreneurs. Furthermore, the utilization of the robust GLLAMM captures the hierarchical dimension of this relationship, enhancing the precision of analyses. This approach provides a significant impetus for data-informed strategic directions.

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Foreign shareholding and corporate environmental expenditure: Evidence from China

Luo,

Yang,

Zhang

2024

Journal of Economic Surveys

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This paper estimates the effects of foreign investments on the environmental expenditure of listed companies in China by differentiating pre‐IPO foreign investors from post‐IPO foreign investors. Our findings indicate that while pre‐IPO foreign investments make significant and positive contributions, the influence of post‐IPO foreign investments is negligible. These results are particularly pronounced for enterprises that are privately owned, located in coastal China, operating in heavily polluting industries, and whose management lacks prior experience in environmental protection and international vision. Furthermore, research efforts are devoted to uncovering potential channels through which pre‐IPO foreign investments affect corporate environmental expenditure, including environmental regulations in home countries or regions, government attention to environmental issues, media coverage, and corporate financial constraints.

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Investor horizons and corporate policies under uncertainty

Cited by 4 publications

References 53 publications

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Exogenous shock: hierarchical effect of the industrial entrepreneur confidence in the mist of the COVID-19 pandemic

Foreign shareholding and corporate environmental expenditure: Evidence from China

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