This paper presents an optimal business model configuration for public financial intermediaries (... more This paper presents an optimal business model configuration for public financial intermediaries (PFIs). Using nonparametric techniques on Italian public financial corporations, the most efficient business models combined asset diversification and income specialization. These business models were unaffected by external financial turmoil, due to weak connections between PFIs and the traditional financial circuit; and public–private ownership is more efficient than purely public ownership, regardless of the business model adopted.
Abstract Traditional credit rating models, adopted by financial institutions to assess the credit... more Abstract Traditional credit rating models, adopted by financial institutions to assess the credit risk of a company, adopt a purely financial perspective, and often fail to properly assess small and medium enterprises. On the other hand, buyers usually assess suppliers by means of comprehensive vendor ratings, considering a broad range of operational performance. This paper investigates whether financial and vendor ratings can be integrated into a supply chain credit rating model that jointly considers financial indicators of the supplier and its operational evaluation provided by buyers; the paper also investigates the benefits and the challenges of such a model for all the stakeholders involved (buyers, suppliers, financial institutions, and technology providers), adopting the lenses of the stakeholder theory. We adopted both multiple case studies and an iterative focus group, involving representatives from suppliers, buyers, financial institutions, and technology providers. The results confirm the potential value of such an integrated rating, mainly for strategic suppliers, showing the expected benefits for all stakeholders and highlighting the potential challenges to face.
Healthcare private finance initiatives/public–private partnerships (PFI/PPPs) have favored the pr... more Healthcare private finance initiatives/public–private partnerships (PFI/PPPs) have favored the provision of health infrastructures and services, but they have been subjected to major criticisms since the value for money assessment of private finance initiatives/public–private partnerships does not consider uncertainties. Using a systematic literature review and content analysis, we identify the sources of uncertainty (i.e. fragilities) associated with UK healthcare private finance initiatives/public–private partnerships. Fragilities are rooted in their financial structure, inadequate ring-fencing of risks and contractual inflexibility. We then discuss such fragilities in light of the evolution of the private finance initiatives/public–private partnership policy in the UK, thus considering private finance 2 and non-profit distributing models. Although much has been done to overcome the shortfalls related to the financial structure of private finance initiatives/public–private partner...
In this paper we investigate three corporate governance issues in 30 Italian family firms: (i) th... more In this paper we investigate three corporate governance issues in 30 Italian family firms: (i) the orientation either to the Agency Theory or to the Stewardship Theory; (ii) the board of directors’ composition; (iii) the ability to involve nonfamily individuals in the company’s management and governance (Openness Index) and the decision-making quality (Extension Index) and we analyze empirical results through a cluster analysis by following the Gubitta and Gianecchini’s approach (2002). Our conclusion suggests that (i) small Italian family firms’ corporate governance systems seem to be consistent with the guidelines suggested by the Stewardship Theory and (ii) Italian family firms’ boards are characterized by a relevant presence of family members.
This paper gives an overview on the induction process for board members with a focus on the Itali... more This paper gives an overview on the induction process for board members with a focus on the Italian context. First, considering the limited prior academic literature, we contribute to the understanding of the induction term. We propose a multilevel theoretical framework that synthesizes and integrates the poor and contrasting prior literature on the definition and the attendees of the program. We posit that the process is intended for all the appointed directors as it is tailored and specific of each company, due to the peculiar environment in which the firm operates. Second, we investigate how these programs are designed and how they can be beneficial for a company. Using a multiple case study on five Italian listed companies, we support the view that induction programs are a fundamental tool to assure that each director fully contributes with his own human and social capital to the board meetings in the shortest possible time, thus guaranteeing a positive impact on the value creat...
How should new technology based firms (NTBFs) finance their business? Some high-tech entrepreneur... more How should new technology based firms (NTBFs) finance their business? Some high-tech entrepreneurs choose debt instead of equity in order to preserve their chance of high returns in the future, accepting the greater risks involved. However, some experts believe that the riskier the project, the more entrepreneurs should seek VC support. Our work attempts to answer this question and build a framework helping technology-based entrepreneurs match their business plans with the most appropriate financial strategy. We relate to the pecking order and financial rationing theories. Many attempts to understand them have been developed, but with dominant focus on investor's supply and their decisional criteria, and few determinants normally investigated at a time. Our approach is novel because it is firm centric and holistic, evaluating the relationship between firm's profile and the optimal investor. Through multiple indepth case studies on UK NTBFs, and their critical discussion, we provide entrepreneurs with a robust assessment tool to navigate the complex scenario of financial alternatives available to NTBFs. The research investigates and discusses the role played in the fund raising process by entrepreneur's profile, technology, features of the business plan and market; it can also help investors understand entrepreneur's motivations and expectations. Our contribution is twofold: first, the model is made of reliable assessment criteria for complex and ambiguous dimensions such as technological risk and market focus; secondly, we develop a holistic approach with understanding of both the firm's and investor's points of view.
This paper presents an optimal business model configuration for public financial intermediaries (... more This paper presents an optimal business model configuration for public financial intermediaries (PFIs). Using nonparametric techniques on Italian public financial corporations, the most efficient business models combined asset diversification and income specialization. These business models were unaffected by external financial turmoil, due to weak connections between PFIs and the traditional financial circuit; and public–private ownership is more efficient than purely public ownership, regardless of the business model adopted.
Abstract Traditional credit rating models, adopted by financial institutions to assess the credit... more Abstract Traditional credit rating models, adopted by financial institutions to assess the credit risk of a company, adopt a purely financial perspective, and often fail to properly assess small and medium enterprises. On the other hand, buyers usually assess suppliers by means of comprehensive vendor ratings, considering a broad range of operational performance. This paper investigates whether financial and vendor ratings can be integrated into a supply chain credit rating model that jointly considers financial indicators of the supplier and its operational evaluation provided by buyers; the paper also investigates the benefits and the challenges of such a model for all the stakeholders involved (buyers, suppliers, financial institutions, and technology providers), adopting the lenses of the stakeholder theory. We adopted both multiple case studies and an iterative focus group, involving representatives from suppliers, buyers, financial institutions, and technology providers. The results confirm the potential value of such an integrated rating, mainly for strategic suppliers, showing the expected benefits for all stakeholders and highlighting the potential challenges to face.
Healthcare private finance initiatives/public–private partnerships (PFI/PPPs) have favored the pr... more Healthcare private finance initiatives/public–private partnerships (PFI/PPPs) have favored the provision of health infrastructures and services, but they have been subjected to major criticisms since the value for money assessment of private finance initiatives/public–private partnerships does not consider uncertainties. Using a systematic literature review and content analysis, we identify the sources of uncertainty (i.e. fragilities) associated with UK healthcare private finance initiatives/public–private partnerships. Fragilities are rooted in their financial structure, inadequate ring-fencing of risks and contractual inflexibility. We then discuss such fragilities in light of the evolution of the private finance initiatives/public–private partnership policy in the UK, thus considering private finance 2 and non-profit distributing models. Although much has been done to overcome the shortfalls related to the financial structure of private finance initiatives/public–private partner...
In this paper we investigate three corporate governance issues in 30 Italian family firms: (i) th... more In this paper we investigate three corporate governance issues in 30 Italian family firms: (i) the orientation either to the Agency Theory or to the Stewardship Theory; (ii) the board of directors’ composition; (iii) the ability to involve nonfamily individuals in the company’s management and governance (Openness Index) and the decision-making quality (Extension Index) and we analyze empirical results through a cluster analysis by following the Gubitta and Gianecchini’s approach (2002). Our conclusion suggests that (i) small Italian family firms’ corporate governance systems seem to be consistent with the guidelines suggested by the Stewardship Theory and (ii) Italian family firms’ boards are characterized by a relevant presence of family members.
This paper gives an overview on the induction process for board members with a focus on the Itali... more This paper gives an overview on the induction process for board members with a focus on the Italian context. First, considering the limited prior academic literature, we contribute to the understanding of the induction term. We propose a multilevel theoretical framework that synthesizes and integrates the poor and contrasting prior literature on the definition and the attendees of the program. We posit that the process is intended for all the appointed directors as it is tailored and specific of each company, due to the peculiar environment in which the firm operates. Second, we investigate how these programs are designed and how they can be beneficial for a company. Using a multiple case study on five Italian listed companies, we support the view that induction programs are a fundamental tool to assure that each director fully contributes with his own human and social capital to the board meetings in the shortest possible time, thus guaranteeing a positive impact on the value creat...
How should new technology based firms (NTBFs) finance their business? Some high-tech entrepreneur... more How should new technology based firms (NTBFs) finance their business? Some high-tech entrepreneurs choose debt instead of equity in order to preserve their chance of high returns in the future, accepting the greater risks involved. However, some experts believe that the riskier the project, the more entrepreneurs should seek VC support. Our work attempts to answer this question and build a framework helping technology-based entrepreneurs match their business plans with the most appropriate financial strategy. We relate to the pecking order and financial rationing theories. Many attempts to understand them have been developed, but with dominant focus on investor's supply and their decisional criteria, and few determinants normally investigated at a time. Our approach is novel because it is firm centric and holistic, evaluating the relationship between firm's profile and the optimal investor. Through multiple indepth case studies on UK NTBFs, and their critical discussion, we provide entrepreneurs with a robust assessment tool to navigate the complex scenario of financial alternatives available to NTBFs. The research investigates and discusses the role played in the fund raising process by entrepreneur's profile, technology, features of the business plan and market; it can also help investors understand entrepreneur's motivations and expectations. Our contribution is twofold: first, the model is made of reliable assessment criteria for complex and ambiguous dimensions such as technological risk and market focus; secondly, we develop a holistic approach with understanding of both the firm's and investor's points of view.
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Papers by Marco Giorgino