We empirically study the diffusion of value-based management (VBM) in small capital markets. Spec... more We empirically study the diffusion of value-based management (VBM) in small capital markets. Specifically, we analyse the factors that influence VBM adoption in Danish-listed firms. Based on a hand-collected data set covering 665 firm years from 2002 to 2010, we find that the same factors influence the diffusion of VBM in both large and small capital markets. Specifically, we find that large firms with a higher percentage of institutional ownership and with a CEO whose education is business-related are more likely to adopt VBM. Additionally, the control variables reveal a significant positive correlation between VBM adoption and leverage, capital intensity, liquidity, and the characteristics of top executives. Furthermore, we find that manufacturing and utility firms are more likely to adopt VBM than service or trade firms. Contrary to the mainstream opinion, we contribute to the literature that findings from large capital markets appear to be transferable to firms in small capital markets.
Corporate Communications: An International Journal, Feb 1, 2016
Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate so... more Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors investigate the motivations of diverse stakeholders (including shareholders) in fostering the adoption of standards and guidelines for CSR after IR became mandatory in Denmark.Design/methodology/approach– The authors conduct a case study at the Danish carpet manufacturer EGE. The authors interpret the case from the perspective of pragmatic constructivism, which focuses on the integration of four dimensions: facts, possibilities, values, and communication.Findings– The authors find that the family-owned EGE follows a strategy of “enlightened shareholder value,” in which CSR is an essential value driver. This strategy fostered IR with guidelines and standards for CSR. The CSR practices appeared to be helpful for integrating measureable plans to the strategy and for controlling CSR implementation. However, the long and technical CSR reports did not effectively communicate EGE’s values and possibilities. The authors outline how EGE overcame these barriers.Originality/value– The authors suggest that IR implementation depends on the context, and the authors explain why the case company has opted to issue two separate reports for their IR. In addition, the authors suggest that standardized approaches to CSR may be suitable for internal planning and control purposes; however, companies must go beyond these measurements to achieve IR.
Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Va... more Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Value-based Management (VBM) gehört mittlerweile zum Standardrepertoire deutscher Unternehmen. Dennoch hat die Praxis dieses Konzept nicht immer einheitlich nach der Maßgabe der normativen Literatur implementiert. Basierend auf einer Studie mit hochrangigen Führungskräften analysiert dieser Artikel erstens die unterschiedlichen Implementierungsstände von VBM in den deutschen HDAX-Konzernen. Zweitens identifiziert er diejenigen Umweltfaktoren, die mit den verschiedenen Implementierungsständen verbunden sind.
Trust and control can have enforcing as well as deteriorating effects on managing relational and ... more Trust and control can have enforcing as well as deteriorating effects on managing relational and performance risk. This case study explores their interaction during alliance negotiations in the financial services industry in a Scandinavian setting. In particular, we investigate the interaction of trust in goodwill and competence, as well as the controls of output, behavior, and social nature.
We empirically study the diffusion of value-based management (VBM) in small capital markets. Spec... more We empirically study the diffusion of value-based management (VBM) in small capital markets. Specifically, we analyse the factors that influence VBM adoption in Danish-listed firms. Based on a hand-collected data set covering 665 firm years from 2002 to 2010, we find that the same factors influence the diffusion of VBM in both large and small capital markets. Specifically, we find that large firms with a higher percentage of institutional ownership and with a CEO whose education is business-related are more likely to adopt VBM. Additionally, the control variables reveal a significant positive correlation between VBM adoption and leverage, capital intensity, liquidity, and the characteristics of top executives. Furthermore, we find that manufacturing and utility firms are more likely to adopt VBM than service or trade firms. Contrary to the mainstream opinion, we contribute to the literature that findings from large capital markets appear to be transferable to firms in small capital markets.
Corporate Communications: An International Journal, Feb 1, 2016
Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate so... more Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors investigate the motivations of diverse stakeholders (including shareholders) in fostering the adoption of standards and guidelines for CSR after IR became mandatory in Denmark.Design/methodology/approach– The authors conduct a case study at the Danish carpet manufacturer EGE. The authors interpret the case from the perspective of pragmatic constructivism, which focuses on the integration of four dimensions: facts, possibilities, values, and communication.Findings– The authors find that the family-owned EGE follows a strategy of “enlightened shareholder value,” in which CSR is an essential value driver. This strategy fostered IR with guidelines and standards for CSR. The CSR practices appeared to be helpful for integrating measureable plans to the strategy and for controlling CSR implementation. However, the long and technical CSR reports did not effectively communicate EGE’s values and possibilities. The authors outline how EGE overcame these barriers.Originality/value– The authors suggest that IR implementation depends on the context, and the authors explain why the case company has opted to issue two separate reports for their IR. In addition, the authors suggest that standardized approaches to CSR may be suitable for internal planning and control purposes; however, companies must go beyond these measurements to achieve IR.
Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Va... more Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Value-based Management (VBM) gehört mittlerweile zum Standardrepertoire deutscher Unternehmen. Dennoch hat die Praxis dieses Konzept nicht immer einheitlich nach der Maßgabe der normativen Literatur implementiert. Basierend auf einer Studie mit hochrangigen Führungskräften analysiert dieser Artikel erstens die unterschiedlichen Implementierungsstände von VBM in den deutschen HDAX-Konzernen. Zweitens identifiziert er diejenigen Umweltfaktoren, die mit den verschiedenen Implementierungsständen verbunden sind.
Trust and control can have enforcing as well as deteriorating effects on managing relational and ... more Trust and control can have enforcing as well as deteriorating effects on managing relational and performance risk. This case study explores their interaction during alliance negotiations in the financial services industry in a Scandinavian setting. In particular, we investigate the interaction of trust in goodwill and competence, as well as the controls of output, behavior, and social nature.
A target costing approach to developing an online distribution channel, 2020
This case study illustrates how a retail company uses target costing to develop its online sales ... more This case study illustrates how a retail company uses target costing to develop its online sales channel. The case elaborates on a setting where the investment choices into the different components of the online distribution channel appear intuitive and simple. However, a data-driven analysis that relates user preferences and customer requirements to capital expenditure decisions (target costing) mandates another course of action. The case then addresses managerial implications, specifically in the area of the cost of quality.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
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Papers by Rainer Lueg