Factors that Determines the Success of Business Demon Value Added Management
The purpose of this paper is to provide a comprehensive indication of the Business Demon Value Added Management (BDVAM) as a form of Politics Governance Responsibility (PGR). This paper is to achieve its objectives by reviewing some relevant literature related to the five main areas of Business Demon Value Added Management (BDVAM) i.e revenue management, cost management, resource management, capital investment management, and sustainability. Through the above critical review of the existing literature, this paper on feature five factors that should be met as a condition for the successful practice of BDVAM, namely:(1) the amount of the commitment of business demon as a minority shareholder to suppress the majority shareholder of the company to solve operational problems, financial, political, social and environment with the help of the media, (2) the strength of militarist paradigm adopted by the business demon, (3) the ability of business demon to do coopetition, which is able to provide added value for shareholders and stakeholders, (4) the ability of business demon meet its working capital with an unlimited source of funds, (5) the ability of business demon builds mutual benefits with government bureaucrats and suppliers. From the previous paper discussed more success in the role of business angel in providing added value for the company. This paper focuses on the business demon by introducing five prepositions that can improve the performance of the company. This literature is limited only to answer five fundamental questions: (1) why the business demon success or failure in applying BDVAM? (2) what are the internal and external factors that are needed to qualify at the time of applying BDVAM, (3) how to improve and discrepancies in stock prices, while the growing political rents, interest in working at the company worker¡¯s is reduced because of the inability of the business demon? (4) the opinion of the author, which one is better between business demon and business angel in adding value? (5) how to improve the model BDVAM that this model does not become BDVDM (Business Demon Value Destruction Management), where business demon has dominant rols in setting the company¡¯s stock price. The previous paper discussed more on the role of business angel in providing value added and nothing that specifically addresses the business demon who has political connections with government. The first contribution of this paper to the existing literature can be found that the relationship BDVAM with operational performance, financial, political,social and environment is still not widely studied. Second, this paper adds to the literature on entrepreneurial finance in particular how BDVAM could be an alternative strategy for the business demon in the plan will be to invest in the company. Also in this paper introduces Business Demon Value Destruction Management (BDVDM), which is a management concept that states that the business demon success is providing value to the business angel and other shareholder to buy an existing company or merged with other similar companies, as well as influencing stakdeholders to close the company if there is a discrepancy in a process that could harm customers in the long term.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kim, Woochan & Kim, Woojin & Kwon, Kap-Sok, 2009. "Value of outside blockholder activism: Evidence from the switchers," Journal of Corporate Finance, Elsevier, vol. 15(4), pages 505-522, September.
- Haar, Nancy E. & Starr, Jennifer & MacMillan, Ian C., 1988. "Informal risk capital investors: Investment patterns on the East Coast of the U.S.A," Journal of Business Venturing, Elsevier, vol. 3(1), pages 11-29.
- Aram, John D., 1989. "Attitudes and behaviors of informal investors toward early-stage investments, technology-based ventures, and coinvestors," Journal of Business Venturing, Elsevier, vol. 4(5), pages 333-347, September.
- Ertimur, Yonca & Ferri, Fabrizio & Stubben, Stephen R., 2010. "Board of directors' responsiveness to shareholders: Evidence from shareholder proposals," Journal of Corporate Finance, Elsevier, vol. 16(1), pages 53-72, February.
- Peter Kelly & Michael Hay, 2000. "'Deal-makers': Reputation attracts quality," Venture Capital, Taylor & Francis Journals, vol. 2(3), pages 183-202, July.
- Marco Becht & Julian Franks & Colin Mayer & Stefano Rossi, 2010.
"Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund,"
Review of Financial Studies,
Society for Financial Studies, vol. 23(3), pages 3093-3129, March.
- Marco Becht & Julian Franks & Colin Mayer & Stefano Rossi, 2009. "Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund," Review of Financial Studies, Society for Financial Studies, vol. 22(8), pages 3093-3129, August.
- Marco Becht & Julian Franks & Colin Mayer & Stefano Rossi, 2010. "Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund," NBER Chapters,in: Corporate Governance National Bureau of Economic Research, Inc.
- Agnes Cheng, C.S. & He Huang, Henry & Li, Yinghua & Lobo, Gerald, 2010. "Institutional monitoring through shareholder litigation," Journal of Financial Economics, Elsevier, vol. 95(3), pages 356-383, March.
- Kaplanski, Guy & Levy, Haim, 2010. "Sentiment and stock prices: The case of aviation disasters," Journal of Financial Economics, Elsevier, vol. 95(2), pages 174-201, February.
- Art Durnev & Randall Morck & Bernard Yeung, 2004. "Value-Enhancing Capital Budgeting and Firm-specific Stock Return Variation," Journal of Finance, American Finance Association, vol. 59(1), pages 65-105, 02.
- Johannes Münster & Klaas Staal, 2012. "How organizational structure can reduce rent-seeking," Public Choice, Springer, vol. 150(3), pages 579-594, March.
- Yasuhisa Tashiro, 1999. "Business angels in Japan," Venture Capital, Taylor & Francis Journals, vol. 1(3), pages 259-273, July.
- Stuart Paul & Geoff Whittam & Jim B Johnston, 2003. "The operation of the informal venture capital market in Scotland," Venture Capital, Taylor & Francis Journals, vol. 5(4), pages 313-335, August.
- Gul, Ferdinand A. & Kim, Jeong-Bon & Qiu, Annie A., 2010. "Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China," Journal of Financial Economics, Elsevier, vol. 95(3), pages 425-442, March.
- Casey Ichniowski & Kathryn Shaw, 1999. "The Effects of Human Resource Management Systems on Economic Performance: An International Comparison of U.S. and Japanese Plants," Management Science, INFORMS, vol. 45(5), pages 704-721, May.
- Rashid Ameer & Radiah Othman & Nurmazilah Mahzan, 2012. "Information asymmetry and regulatory shortcomings in profit sharing investment accounts," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 5(4), pages 371-387, December.
- DeAngelo, Harry & DeAngelo, Linda, 1989. "Proxy contests and the governance of publicly held corporations," Journal of Financial Economics, Elsevier, vol. 23(1), pages 29-59, June.
- Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 995-1025.
- Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, December.
- Sudipto Bhattacharya, 1979. "Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 259-270, Spring.
- Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
- Greenwood, Robin & Schor, Michael, 2009. "Investor activism and takeovers," Journal of Financial Economics, Elsevier, vol. 92(3), pages 362-375, June.
- Guercio, Diane Del & Hawkins, Jennifer, 1999. "The motivation and impact of pension fund activism," Journal of Financial Economics, Elsevier, vol. 52(3), pages 293-340, June.
- Gombola, Michael J. & Liu, Feng-Ying, 1999. "The Signaling Power of Specially Designated Dividends," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 34(03), pages 409-424, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:mth:ber888:v:4:y:2014:i:1:p:319-350. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Technical Support Office)
If references are entirely missing, you can add them using this form.