Exploiting changes in countries’ competition laws, we find that competition increases firms’ propensity to use zero leverage (ZL). We test the financial-flexibility, financial-constraint, and quiet-life explanations for this result, concluding that desire for flexibility is the one most likely. The relation between competition and ZL strengthens with cash-flow volatility, which supports the flexibility motive. Adoption of ZL by firms is accompanied by increases in payouts, so it is unlikely that ZL adopters are constrained. Proxies for governance have no effect on the relation between competition and ZL, suggesting that desire for a quiet life is not the explanation either.

This article revisits the methodological foundations of Elinor Ostrom’s institutionalism by examining the role of ‘complexity’ in her work and the conceptual influence of Herbert A. Simon. While Simon was not Ostrom’s most frequently cited reference, his thought – particularly as articulated in The Sciences of the Artificial – exerted a formative and enduring influence on her analytical framework. Drawing on Ostrom’s later writings, in which she offers a retrospective account of her intellectual trajectory, we show how Simon’s systems-engineering perspective provides a coherent framework for understanding her approach to institutional complexity, despite notable differences in their respective research objects and theoretical priorities. For Ostrom, institutions evolve incrementally as ‘boundedly’ rational individuals attempt to resolve collective problems through successive modifications of rule structures within complex social systems. In contrast to top-down optimisation models, her work emphasises adaptive responses and practical problem-solving. Interpreting Ostrom’s methodology through a Simonian lens not only deepens our understanding of her contribution to institutional economics but also illustrates the value of interdisciplinary approaches informed by complexity theory for the field.

This article contributes new knowledge on the insertion of Spain into the European integration project and shows how European Investment Bank (EIB) policy, in the form of loans, helped boost the Spanish economy. EIB loans to Spain promoted both the Trans-European Networks (TENs) and the funding of enterprises. We argue that the funding of TENs encouraged the integration of Spain into the European space, whilst the funding of enterprises helped consolidate their competitive position, facilitating their expansion abroad.

This study examines the role of normative values and stakeholder commitment in the evalua-tion and implementation process of social and organizational innovations in highly regulated systems, using the example of the four-day work week in German healthcare. Based on 26 expert interviews across micro, meso, and macro levels, the study reveals how actor-specific values and institutional contexts shape judgment about ecological, economic, social, and or-ganizational performance sustainability. The findings show that commitment to innovation is not determined solely by functional considerations but emerges in a field of tension between normative aspirations. Stakeholders align themselves differently along axes such as employee vs. patient orientation or short- vs. long-term thinking, resulting in competing innovation scenarios. The study proposes a transferable framework enabling organizations to map stakeholder values, locate areas of tension, and assess the depth and direction of commitment.

This study addresses the urgent need for low-carbon energy transition (LCET) in the Global South, where vulnerability to climate change is high and most countries have ratified the Paris Agreement and Nationally Determined Contributions. It emphasizes the importance of research in supporting this transition, particularly through the lens of digital technologies. Despite its relevance, existing studies on the topic remain limited and fragmented. This study reviews the literature on digital infrastructure in LCET, identifies key gaps and ambiguities and offers insights to inform future research and policymaking in the Global South.

The economic valuation of recreational ecosystem services is challenging due to difficulties in obtaining geo-tagged information of users. The objective of this study is to validate crowdsourced and user-generated content in order to predict visitation patterns to 16 national parks in Spain. The results may serve to encourage its utilization in the study of recreational demand in other countries, particularly developing countries, where on-site visitor information may be limited or expensive to gather. The present article employs a negative binomial regression model to evaluate the validity of two sources of data: Flickr and mobile phones. The accuracy of predictions exhibited variation across the 16 parks, indicating that site-specific characteristics, such as the seasonality of visitation patterns, may be of significance. The utilization of mobile phone data for modelling visitors yielded enhanced predictive capacity, as shown by the goodness of fit of the estimated models.

This paper analyzes the relationship between microfinance, competition, and growth in a sample of 119 countries over the period 1999–2018. Our results are fourfold. First, we show that microfinance increases economic growth. Second, we identify investment and consumption as the main channels explaining the positive effect of microfinance on growth. Third, our study highlights that the conventional financial sector and microfinance are substitutes and not complements in emerging and developing countries. Finally, we show that competitive microfinance markets allow increasing the positive effect of microfinance on growth.

Course-prerequisite networks (CPNs) are directed acyclic graphs that model complex academic curricula by representing courses as nodes and dependencies between them as directed links. These networks are indispensable tools for visualizing, studying, and understanding curricula. For example, CPNs can be used to detect important courses, improve advising, guide curriculum design, analyze graduation time distributions, and quantify the strength of knowledge flow between different university departments. However, most CPN analyses to date have focused only on micro- and meso-scale properties. To fill this gap, we define and study three new global CPN measures: breadth, depth, and flux. All three measures are invariant under transitive reduction and are based on the concept of topological stratification, which generalizes topological ordering in directed acyclic graphs. These measures can be used for macro-scale comparison of different CPNs. We illustrate the new measures numerically by applying them to three real and synthetic CPNs from three universities: the Cyprus University of Technology, the California Institute of Technology, and Johns Hopkins University. The CPN data analyzed in this paper are publicly available in a GitHub repository.

The main goal of this paper is to introduce a new model of evolvement of beliefs on networks. It generalizes the DeGroot model and describes the iterative process of establishing the consensus in isolated social networks in the case of nonlinear aggregation functions. Our main tools come from mean theory and graph theory. The case, when the root set of the network (influencers, news agencies, etc.) is ergodic is fully discussed. The other possibility, when the root contains more than one component, is partially discussed and it could be a motivation for further research.

Building on a newly compiled database of all extant respondentia contracts from Manila’s notarial protocols between 1736 and 1800, this article examines the overlooked role that the Manila correspondencia played as the crucial private-order institutional mechanism financing Manila’s long-distance silver trade. This instrument organized the structure of long-distance capital flows stretching out from Manila across its intra-Asian and trans-Pacific commercial lines, allowing investors to make claims on future returns and apportion risks in the absence of an adequate public-order institutional framework for high volumes of exchange. Combining the respondentia dataset with account books for institutional lenders (the obras pías), we argue that the Manila correspondencia’s contractual elements offered a specific solution to the Fundamental Problem of Exchange between Asia and the Americas. The contract’s flexibility proved ideal for Manila’s diverse combination of individual and institutional investors to participate in the profits of cross-cultural trade, while offering security and guarantees.

Digital transformation presents a crucial strategic imperative for family businesses seeking to maintain competitiveness and long-term viability. The academic literature reveals divergent perspectives on how family businesses approach digital transformation initiatives. This study adopts a socioemotional wealth perspective to examine the relationship between family ownership and digital transformation. The research specifically investigates how family formal business networks and next-generation dispersion moderate this relationship. Analysis of panel data from Chinese listed family firms between 2016 and 2020 reveals that family ownership negatively influences digital transformation efforts. However, this negative effect diminishes when family firms participate in formal business networks or involve multiple next-generation members in leadership positions. These findings yield important theoretical contributions regarding the intricate relationships between family dynamics and technological advancement. The research also provides practical insights for family business leaders navigating digital transformation challenges. This study advances understanding of how different dimensions of socioemotional wealth shape family firms’ strategic responses to technological change.

This study explores the visual aesthetics of organizational space by contrasting coworking spaces with traditional open-plan offices. Drawing on signaling theory and symbolic interactionism, we examine how ambience communicates symbolic meaning. Employing an archaeological approach to retrieve large-scale online photo data from Coworker and Pinterest, we then apply AI-driven deep learning visual contrast analysis to reveal clear aesthetic distinctions in organizational space. Coworking spaces evoke a homely, dining-room-like ambiance, with artwork, plants, warmer color palettes, and a more homely and hospitable ambience. Traditional open-plan offices, by contrast, tend toward cooler colors and industrial design elements. Findings suggest that coworking spaces visually signal greater affective and sensory value, promoting belonging, creativity, and warmth. The study contributes to organizational space theory by theorizing how visual aesthetics act as symbolic cues that shape workplace experiences and by introducing a methodological framework that integrates AI-based analysis with interpretive meaning-making.

There is consensus that health outcomes are shaped to a considerable extent by social determinants or non-medical factors (Marmot 2005). The World Health Organization (WHO) describes these social determinants as

We document that climate-triggered institutional portfolio rebalancing affects S&P 500 firms’ cost of equity through climate change price pressure (CCPP). Using a demand-based asset pricing framework, we estimate firm-level CCPP from physical and transition exposures over 2005–2021. A one-standard-deviation intensification of CCPP raises the cost of equity by up to 6% of its average, with banks and insurers as the main drivers. Yet firms do not subsequently improve environmental performance, indicating that the statistically significant effect of CCPP on cost of equity is ineffective to alter corporate behavior. Our CCPP metrics can help policymakers and investors design targeted environmental strategies.

We report evidence consistent with institutional investors using industry-level information that they obtain from their investments in venture capital (VC) funds to earn excess returns in publicly traded stocks. We use court rulings regarding the Freedom of Information Act as an exogenous shock affecting the information flow between VC funds and institutional investors to show that the excess returns are explained by information received via this channel. Thus, institutional investors serve as conduits of information from private to public markets. In the process, institutional investors earn higher returns from their VC investments than implied by the cash flows received therefrom.

This research presents the design, pricing, and consumer testing results of a potential private financial product that integrates retirement savings with social care funding through contributions to a supplemental defined contribution pension scheme. With this product, some contributions will be earmarked specifically to cover social care expenses if needed post-retirement. Our research indicates that offering benefits that address both retirement income supplementation and social care funding in a combined approach is appealing to consumers and could help overcome behavioural barriers to planning for social care. As with established defined contribution schemes, this product is designed for distribution in the workplace. Employees can contribute a portion of their earnings to their pension accounts. Employers may partially or fully match these contributions, further incentivising participation. In addition to financial support, participants will gain access to social care coordination services designed to facilitate ageing at home. These services will help retirees navigate care options, coordinate necessary support, and optimise the use of their allocated social care funds, ultimately promoting independence and well-being in later life.