WorldWideScience

Sample records for firm performance evidence

  1. Executive compensation and firm performance: Evidence from Indian firms

    Directory of Open Access Journals (Sweden)

    Mehul Raithatha

    2016-09-01

    Full Text Available The study examines the relationship between executive compensation and firm performance among Indian firms. The evidence suggests that firm performance measured by accounting, as well as market-based measures, significantly affects executive compensation. We also test for the presence of persistence in executive compensation by employing the system-generalised methods of moments (GMM estimator. We find significant persistence in executive compensation among the sample firms. Further, we report the absence of pay–performance relationship among the smaller sample firms and business group affiliated firms. Thus, our findings cast doubts over the performance-based executive compensation practices of Indian business group affiliated firms.

  2. Corruption and firm performance: Evidence from Greek firms

    OpenAIRE

    2012-01-01

    This article investigates the relationship between corruption and firm performance in Greece using firm level data. Corruption is overall negatively associated with firm size and growth at the firm level. We focus on the effect of ‘administrative corruption’, whereby firms engage in corrupt practices and bribery of government officials. We contrast the firm experience of corruption and the contextual experience of corruption at the sectoral level and find that the latter, contextual corruptio...

  3. Corporate Diversification and Firm Performance: Evidence from Asian Hotel Industry

    Directory of Open Access Journals (Sweden)

    Ooi Chai-Aun

    2014-01-01

    Full Text Available The unstable environment of hotel industry which is driven by the fluctuation of tourism demand has motivated this study to look into the best diversification strategy for firm performance betterment. 42 hotel firms are investigated across 4 Asian economies, from year 2001 to 2012. Our results suggest that unrelated industrial diversification is the only alternative to improve hotel firm performance. Unrelated international diversification instead has a significant negative effect towards firm performance. Our results further show that board of directors implies a significant link to the relationship between diversification and firm performance, only in a crisis period.

  4. Corporate Governance and Firm Performance: Evidence from Saudi Arabia

    OpenAIRE

    Amina Buallay; Allam Hamdan; Qasim Zureigat

    2017-01-01

    This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin's Q. The study also utilized five con...

  5. Corporate Governance and Firm Performance: Evidence from Saudi Arabia

    Directory of Open Access Journals (Sweden)

    Amina Buallay

    2017-03-01

    Full Text Available This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin's Q. The study also utilized five control variables in order to help measuring the relationship between Corporate Governance and Firm Performance. In conclusion, the study found that the governance level was 61.4% in Saudi stock exchange which is considered high compared to previous studies. The results of the study test indicate that there is no significant impact for corporate governance adoption on firm's operational and financial performance in the listed companies in Saudi stock exchange. By testing the Tobin's Q model the study also concluded that there’s no significant impact for ownership of the largest shareholder and independency of Board of Directors on firm's market performance. Significant impact was found for the ownership and the size of the Board of Directors on firm's performance.

  6. Board Characteristics and Firm Performance: Evidence from Indonesia

    Directory of Open Access Journals (Sweden)

    Athalia Ariati Hidayat

    2015-12-01

    Full Text Available This research examines the effect of board characteristics (comprising in different sized proportions: family commissioners, family directors, independent commissioners, ex-government officer commissioners, and board of commissioners size to firm performance. Using fixed-effects data panel regression, this research investigates 293 firms listed on the Indonesian Stock Exchange during 2008-2012. Firm performance is proxied by market measure (Tobin’s Q and accounting measure (ROA. The findings of this research suggest that the proportion of family commissioners and family directors have positive impact only to Tobin’s Q value, while the proportion of independent directors can increase both Tobin’s Q and ROA. On the other hand, this research finds that the proportion of ex-government officers in the board gives no impact to firm performance. This research also finds that the board size has U-shaped non-linear relationship with firm performance as proxied by Tobin’s Q and ROA.

  7. Board Composition and Firm Performance: Evidence from Bangladesh

    Directory of Open Access Journals (Sweden)

    Afzalur Rashid

    2010-03-01

    Full Text Available This study examines the influence of corporate board composition in the form of representation of outsideindependent directors on firm economic performance in Bangladesh. Two hypotheses are developed toexamine the relationship among composition of board memberships including independent directors andfirm performance. An observation of 274 Bangladeshi firm-years is used in the study. A linear regressionanalysis is used to test the hypotheses. Results reveal that the outside (independent directors cannot addpotential value to the firm’s economic performance in Bangladesh. The idea of the introduction ofindependent directors may have benefits for greater transparency, but the non-consideration of theunderlying institutional and cultural differences in an emerging economy such as Bangladesh may not resultin economic value addition to the firm. The findings provide an insight to the regulators in their quest forharmonization of international corporate governance practices.

  8. ADDITIONAL EVIDENCE ON BOARD OWNERSHIP, FIRM PERFORMANCE AND LEVEL OF DIVERSIFICATION: THE CASE OF MALAYSIAN FIRMS

    Directory of Open Access Journals (Sweden)

    Norazlan Alias

    2004-01-01

    Full Text Available This study attempts to examine the relationship between level of diversification and board ownership using bivariate correlation analysis. It further analyses using partial correlation analysis if any of the selected variables act as a common cause variable that correlates level of diversification and firm performance and develop a final estimated regression model using the selected variables extracted from 121 listed companies on the Kuala Lumpur Stock Exchanges (KLSE. Only concentration of ownership and degree of shareholders' control shows significant positive correlation. In the multiple regression analysis, dividend policy remains to be the predictor variable for Tobins' Q as a measure of firm performance but with a small R square.

  9. Liquidity and firm performance: Evidence from the MENA region

    DEFF Research Database (Denmark)

    Farooq, Omar; Bouaich, Fatima Zahra

    2012-01-01

    relationship between liquidity and firm performance. We argue that higher level of information asymmetries in the MENA region exposes stock market participants to excessive risk, and therefore any mechanism that can provide them with opportunity to lower this risk (by exiting the stock) is valuable. Our...... results also show that this relationship is stronger in the civil law countries than in the common law countries. Civil law countries have weaker investor protection mechanisms, thereby exposing investors to more risk. As a consequence, liquidity is valued more in the civil law countries relative...

  10. Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data

    DEFF Research Database (Denmark)

    Gong, Yundan; Yu, Zhihong; Girma, Sourafel

    2009-01-01

    This paper analyses the relationship between production subsidies and firms" export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity at the inten......This paper analyses the relationship between production subsidies and firms" export performance using a very comprehensive and recent firm-level database and controlling for the endogeneity of subsidies. It documents robust evidence that production subsidies stimulate export activity...... at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared...

  11. Gender diversity and firm performance : evidence from Dutch and Danish boardrooms

    NARCIS (Netherlands)

    Marinova, Joana; Plantenga, Janneke; Remery, Chantal

    2016-01-01

    Drawing on the business case for gender diversity, this article examines whether board gender diversity has a positive effect on firm performance, based on evidence from the Netherlands and Denmark. We use empirical data on 186 listed firms observed in 2007. Almost 40% have at least one woman in the

  12. Accumulation of technological capabilities and operational performance improvement: evidence from a firm-level case study

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    Marcelio Fonseca

    2014-11-01

    Full Text Available Drawing on a single case study based on first-hand and long-term evidence gathered through extensive fieldwork, this article examines the process of technological capability accumulation and its implications for operational performance improvement in a chemical firm in Brazil (1980-2007. The evidence indicates that the efforts on technological capability accumulation, especially for innovative activities, permitted the case-study firm to improve its operational performance, notably in terms of technical and, to some extent, in terms of commercial indicators. This study contributes to advancing our understanding of relationship between the firm-level accumulation of technological capabilities and operational performance improvement. The study draws managers’ attention to the importance of managing and measuring a multiplicity of technological capabilities within firms and to the relevance of firm-level engineering-based innovative activities, normally neglected by policy makers.

  13. Effects of Selected Corporate Governance Characteristics on Firm Performance: Empirical Evidence from Kenya

    Directory of Open Access Journals (Sweden)

    Vincent Okoth Ongore

    2011-01-01

    Full Text Available This paper examines the interrelations among ownership, board and manager characteristics and firm performance in a sample of 54 firms listed at the Nairobi Stock Exchange (NSE. These governance characteristics, designed to minimize agency problems between principals and agents are operationalized in terms of ownership concentration, ownership identity, board effectiveness and managerial discretion. The typical ownership identities at the NSE are government, foreign, institutional, manager and diverse ownership forms. Firm performance is measured using Return on Assets (ROA, Return on Equity (ROE and Dividend Yield (DY. Using PPMC, Logistic Regression and Stepwise Regression, the paper presents evidence of significant positive relationship between foreign, insider, institutional and diverse ownership forms, and firm performance. However, the relationship between ownership concentration and government, and firm performance was significantly negative. The role of boards was found to be of very little value, mainly due to lack of adherence to board member selection criteria. The results also show significant positive relationship between managerial discretion and performance. Collectively, these results are consistent with pertinent literature with regard to the implications of government, foreign, manager (insider and institutional ownership forms, but significantly differ concerning the effects of ownership concentration and diverse ownership on firm performance.

  14. State ownership and firm performance: Empirical evidence from Chinese listed companies

    Directory of Open Access Journals (Sweden)

    Mei Yu

    2013-06-01

    Full Text Available While the relationship between state ownership and firm performance has been widely researched, the empirical evidence has provided mixed results. This study applies panel data regression techniques to 10,639 firm-year observations of non-financial Chinese listed firms during 2003–2010 to examine the relationship between state ownership and firm performance. The results show that state ownership has a U-shaped relationship with firm performance. The Split Share Structure Reform in 2005–2006 played a positive role in enhancing the relationship between state ownership and firm profitability ratios. Although state ownership decreased significantly after 2006, it remains high in strategically important industry sectors such as the oil, natural gas and mining sector and the publishing, broadcasting and media sector. The findings reveal that a higher level of state ownership is superior to a dispersed ownership structure due to the benefits of government support and political connections. The Split Share Structure Reform made previously non-tradable shares legally tradable, improving corporate governance and reducing the negative effect of non-tradable state shares.

  15. New-to-Market Product Innovation and Firm Performance: Evidence from a firm-level innovation survey in Japan

    OpenAIRE

    ISOGAWA Daiya; Nishikawa, Kohei; Ohashi, Hiroshi

    2012-01-01

    This paper evaluates the economic impact of new-to-market product innovation using firm-level data obtained from the Japanese National Innovation Survey. It accounts for possible technological spillovers in innovation activities and examines the extent to which new-to-market product innovation contributes to firm performance. The paper offers several new insights on product innovation.

  16. Labour productivity and export performance: Firm-level evidence from Indian manufacturing industries since 1991

    OpenAIRE

    2013-01-01

    This paper examines the productivity of firms and their ability to enter the export market, i.e., the self-selection hypothesis and the determinants of labour productivity at the firm level for India's major exporting manufacturing industries during 1991-2009. The paper also examines whether export intensity at the firm level differs between domestic-controlled and foreign-controlled firms, and between private and public firms. Applying a 2SLS model, the authors find evidence in favour of the...

  17. Organizational Scope and Investment: Evidence from the Drug Development Strategies and Performance of Biopharmaceutical Firms

    OpenAIRE

    Ilan Guedj; David Scharfstein

    2004-01-01

    This paper compares the clinical trial strategies and performance of large, established ("mature") biopharmaceutical firms to those of smaller ("early stage") firms that have not yet successfully developed a drug. We study a sample of 235 cancer drug candidates that entered clinical trials during the period 1990-2002 and were sponsored by public firms. Early stage firms are more likely than mature firms to advance drug candidates from Phase I to Phase II clinical trials. However, early stage ...

  18. Performance of Patenting Firms

    DEFF Research Database (Denmark)

    Madsen, Erik Strøjer; Smith, Valdemar; Nielsen, Anders Østergaard

    2000-01-01

    -patenting firms within the manufacturing sector in Denmark. Performance is measured both by growth in employment as well as in the return on equity and profit share in turnover. The results suggest that differences in performance of patenting and non-patenting firms are very small, which questions the political......Most countries focus on industries with high technology and the governments grant subsidies to innovating firms. However, there has been remarkable few studies of the performance of innovative firms or industries. This study examines the performance of patent active firms compared to the non...

  19. The relationship between knowledge management, innovation and firm performance : Evidence from Dutch SMEs

    NARCIS (Netherlands)

    Stel, van A.J.; Folkeringa, M.; Meijaard, J.; Uhlaner, L.M.

    2007-01-01

    This publication investigates the relationship between knowledge management (KM), innovation and firm performance of smaller firms (less than 100 employees), based on a panel of more than 400 Dutch firms. Regression analyses explain the variations in sales turnover growth from various measures of KM

  20. Corporate Governance and Performance of Banking Firms: Evidence from Indonesia, Thailand, Philippines, and Malaysia

    Directory of Open Access Journals (Sweden)

    Maria Praptiningsih

    2009-01-01

    Full Text Available Corporate governance still becomes a major issue during the post-financial crisis period in Asian emerging market, such as Indonesia, Thailand, Philippines and Malaysia. Particularly, the financial institutions have implemented corporate governance reforms to enhance the protection of shareholders and stakeholders interest. The consequences emerge as it allows for greater monitoring especially by the shareholders. The objective of this study is to measure the corporate governance and performance in banking sectors in particular, which is determining by the corporate governance mechanisms. In the last part, this study attempts to identify whether there exist any differences in the monitoring mechanisms of banking firms and non-banking firms. This study found that only the foreign shareholder which is represent of the ownerships monitoring mechanisms are significantly negatively related with corporate performance measures in the banking firms in Asian emerging markets. Second, the Internal Control Monitoring Mechanisms showed the insignificant relationship with corporate performance, but only one of the internal control monitoring mechanisms which is CEO duality provides evidence in order to explain the relationship better. Third, the disclosure monitoring mechanisms through the big 4 external auditor is significantly related to corporate performance, instead of the big 3 rating agency. Last, there are similarities between bank and non-bank in terms of corporate governance monitoring mechanisms.

  1. Impact of human resource slacks on firm performance: Evidence from a developing country

    Directory of Open Access Journals (Sweden)

    M.M. Fonseka

    2013-12-01

    Full Text Available Purpose of this paper is to investigate whether HR slack leads to improve firm performance, and what is the impact of HR slack in absolute and in relative terms on firm performance in a developing country. It also examines how ownership types moderate the HR slack-performance relationship. The longitudinal data-set of 11,985 firms-year observations from 2000-2009 were used and generalized linear models (GLMs employed for analyzing data. The findings reveal that (1 absolute HR slack (AHRS leads to enhance firm performance; (2 AHRS is positively and relative HR slack (RHRS is negatively affected firm performance; (3 both AHRS and RHRS have inverse U-shaped effects on firm performance. (4 AHRS is positively influenced on performance of both state-owned enterprises (SOEs, and private-owned enterprises (POEs. RHRS is negatively affect performance of SOEs. It can be concluded that both absolute and relative HR slacks lead to increase the firm performance up to a certain level, thereafter, firm performance is declined (Curvilinear relationship. The paper is original in its contribution to the organizational slack–firm performance literature by examining the relevance of absolute and relative HR slacks as indispensable sources.

  2. Corporate Governance Structure And Firm Performance: Empirical Evidence From Brusa Malaysia, Kuala Lumpur

    OpenAIRE

    Huson Joher; Mohd Ali

    2011-01-01

    The issue of corporate governance has been emerging as important phenomena that has been searched extensively both in developed countries due to its strategic impact on the monitoring of management activities and firms performance. Yet little attempt has been made in developing countries like Malaysia to ascertain what constitute corporate governance and its impact on firm's performance. Therefore, this study aims at examining the structure of the corporate governance and its impact on firms ...

  3. ICT, Complementary Firm Strategies and Firm Performance

    OpenAIRE

    Rasel, Fabienne

    2016-01-01

    This doctoral thesis analyses from different perspectives the relationship between information and communication technologies (ICT), complementary firm strategies and firm performance. One chapter examines the role of ICT and decentralized workplace organization for productivity. Two chapters analyse the association between firms' ICT use, international trade activities and productivity. The empirical analyses are based on data from firms located in Germany from the manufacturing or service s...

  4. How Do Board Characteristics Influence Business Performance? Evidence from Non-life Insurance Firms in Zimbabwe

    Directory of Open Access Journals (Sweden)

    Maxwell Sandada

    2015-08-01

    Full Text Available The purpose of this study was to contribute to the corporate governance literature by establishing the relationship between board characteristics and corporate performance within the nonlife insurance firms in Zimbabwe. The study sought to provide some insights on corporate governance since the phenomenon is relatively an emerging discipline in Zimbabwe. The paper sought to complement other corporate governance studies that were conducted in other environments by producing evidence on the phenomenon from a developing country context. A quantitative research approach was adopted and respondents were selected through a stratified random sampling. The results of the study confirm that board characteristics (board composition, diversity, and size exhibit a statistically significant positive predictive relationship with the performance of non-life insurance firms measured by gross premium written and customer retention. However, CEO/Chairman duality showed a negative relationship with business performance. Non-life insurance companies need to be cognizant of board characteristics in order to improve their performance. Moreover , the findings in this research has practical relevance for the selection process of directors as it highlights the importance of having a sizeable number of board members as well as an appropriate mix of competences and qualifications on the board. Although corporate governance is has been extensively researched, there is limited study in this area from a developing country like Zimbabwe with relatively less developed capital markets. It would be wrong to assume that the findings found in other countries can apply here because the conditions are different.

  5. Flexible labor and innovation performance : Evidence from longitudinal firm-level data

    NARCIS (Netherlands)

    Zhou, H.; Dekker, R.; Kleinknecht, A.

    Firms with high shares of workers on fixed-term contracts tend to have higher sales of imitative new products but perform significantly worse on sales of innovative new products ("first on the market"). High functional flexibility in "insider-outsider" labor markets enhances a firm's new product

  6. Propping by controlling shareholders, wealth transfer and firm performance: Evidence from Chinese listed companies

    Institute of Scientific and Technical Information of China (English)

    Qianwei; Ying; Liang; Wang

    2013-01-01

    Propping acts by controlling shareholders are common in Chinese listed firms In this paper, we use data on related-party transactions of all listed Chinese firms from 2002 to 2008 to investigate the motivation behind controlling share holders’ propping acts and subsequent wealth-transfer behavior and how both affect firm performance. We find that such institutional motivators as the maintenance of shell resources and qualification for refinancing have a significant effect on the propping behavior of controlling shareholders of Chinese listed firms and that such behavior is often followed by more serious tunneling when shareholders are driven by these motivators. Compared with non-state owned firms, state-owned firms with the motivation to qualify for refinancing exhibit more severe tunneling after engaging in propping behavior. We also find that while propping by controlling shareholders improves a firm’s current operating performance, in firms whose controlling shareholders’ are motivated by the desire to maintain shell resources or obtain a refinancing qualification their performance declines in the following year because of subsequent tunneling. The results presented in this paper provide us with a better understanding of the relationship between propping and tunneling, controlling shareholders engagement in both and the consequences of that behavior.

  7. The direction of causality between exports and firm performance: microeconomic evidence from Croatia using the matching approach

    Directory of Open Access Journals (Sweden)

    Miljana Valdec

    2015-03-01

    Full Text Available This paper contributes to the literature by using propensity score matching to test for causal effects of starting to export on firm performance in Croatian manufacturing firm-level data. The results confirm that exporters have characteristics superior to those of non-exporters. In the main sample specification there is pervasive evidence of self-selection into export markets, meaning that firms are successful years before they become exporters. Using multiple firm performance indicators, panel and cross section data models together with various sample specifications there is scant evidence on learning-by-exporting which holds true only in a few cases. On the other hand, higher sales growth is found to be a more conclusive distinguishing characteristic of new exporters. As in similar studies, we find that a part of the results depends on the number of export starters in the estimation sample.

  8. Financial Leverage Behaviour and Firm Performance: Evidence from Publicly Quoted Companies in Nigeria

    Directory of Open Access Journals (Sweden)

    Godsday Okoro Edesiri

    2014-08-01

    Full Text Available This paper scrutinizes financial leverage behaviour and firm performance of publicly quoted companies in Nigeria. Data of Leverage, Profitability and Firm Size were sourced from the Nigerian Stock Exchange Fact-book and Annual Report and Accounts of 120 publicly quoted companies in Nigeria during the period 1990 through 2013. Findings suggest that profitability and firm size had a negative effect on financial leverage behaviour of publicly quoted companies in Nigeria. Thus, it was recommended that firms should carry out projects that would help enhance size and profitability in all aspect of the firm. Size in terms of assets would help increase the internal funding. This in turn will have a positive impact on the financial structure of firm as more of internally generated funds will be used instead of external borrowings. Firms should not assume that making of profit shows good application of leverage as this was not found to be true from the analysis. This implies that the result can be relied upon for policy direction.

  9. Decentralised bargaining and performance related pay: new evidence from a panel of Italian firms

    OpenAIRE

    Mirella Damiani; Andrea Ricci

    2011-01-01

    Purpose: This paper examines two institutional aspects closely related: (i) the extent to which collective bargaining has been decentralized at firm or district level; (ii) the extent to which, at this level of bargaining, Performance Related Pay (PRP) have been used. Design/methodology/approach: On the basis of a unique database, which contains recent information on nationwide sample of firms, panel estimates aimed at identifying the main factors which have favoured the adoption of the secon...

  10. The Impact of Mergers and Acquisitions on Firm Performance: Evidence from the Pharmaceutical Industry

    OpenAIRE

    Kasetty, Soumya Ramesh

    2009-01-01

    The recent past has witnessed a significant increase in mergers and acquisition activity. Firms mainly engage in mergers to achieve corporate growth and realise their business strategy. Mergers and Acquisitions has been a popular strategy among companies, but however they may not always improve firm performance. Various theoretical and empirical studies have been conducted to measure the impact of mergers and acquisitions. Theoretically mergers and acquisitions have shown to improve company p...

  11. Impact of Merger and Acquisitions on Operating Performance: Evidence from Manufacturing Firms in India

    Directory of Open Access Journals (Sweden)

    Ramachandran Azhagaiah

    2014-06-01

    Full Text Available The present paper is carried out with the objective of studying what shift-in-structure is experienced especially in the operating performance (OP after merger and acquisitions (M&As by studying 39 selected acquiring manufacturing firms in India. The firms, which had gone in to the M&As process during the financial year 2006–2007 are only considered for the study. Factor analysis, correlation matrix, multiple regression, and chow test are applied to study the op of these firms in the pre-and post-merger periods. The study reveals that the M&AS process has significant (positive improvement effect on op of the acquiring manufacturing firms in India after M&AS over the study period.

  12. Innovation Forms and Firm Export Performance: Empirical Evidence from ECA Countries

    Directory of Open Access Journals (Sweden)

    Andrzej Cieślik

    2017-06-01

    Full Text Available Objective: The main objective of this paper is to verify empirically the relationship between various forms of innovation and export performance of firms from European and Central Asian (ECA countries. Research Design & Methods: In our empirical approach we refer to the self-selection hypothesis derived from the Melitz (2003 model which proposed the existence of a positive relationship between firm productivity and the probability of exporting. We argue that innovation activities should be regarded as a key element that can increase the level of firm productivity. We focus our analysis on four forms of innovation activities: product, process, marketing, organizational and managerial innovation. The empirical implementation of our analytical framework is based on the probit model, applied to the fifth edition of the BEEPS firm level dataset covering 2011-2014. Findings: Our empirical results indicate that the probability of exporting is positively related to both product and process innovations. The marketing and managerial innovations do not seem to affect positively export performance of firms from ECA countries. Implications & Recommendations: It is recommended to develop innovation supporting mechanisms that would target both product and process innovations rather than other forms of innovation in the ECA countries. Contribution & Value Added: The originality of this work lies in the use of the multi-country firm level dataset that allows distinguishing between various forms of innovations in the ECA countries.

  13. Board Composition and Firm Performance: Evidence from BIST 100 Companies in Turkey

    Directory of Open Access Journals (Sweden)

    Mete KARAYEL

    2016-09-01

    Full Text Available This study examines how board composition affects firm performance. Female directors, independent directors and foreign directors and board size were taken as the indicators of board composition. The empirical analysis, based on a sample of 100 firms drawn from the BIST 100 Index over a 3-year period, the years between 2012 and 2014. In the study, for financial performance indicators, Return on Assets, and Return on Equity were used and for market performance indicator Market Value to Book Value was used. After the analysis, it is found that, board composition has an impact on firm performance in BIST 100 companies. This study is unique in terms of analyzing the effects of 2012 regulation of mandating at least 1/3 of all board members to be independent directors and suggesting at least one female director to BIST 100 company boards by Capital Boards of Turkey.

  14. Ownership Structure and Firm Financial Performance: Evidence from Panel Data in Sri Lanka

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    Nirosha Hewa Wellalage

    2014-09-01

    Full Text Available This study investigates the effects of equity ownership structure on financial performance of Sri Lankan listed businesses. Using dynamic panel generalised method of moment this study finds an inverse hump shape relationship between insider ownership and firm financial performance. The results of this study confirm that the effect of insider ownership on firm performance is more positive and significant where legal protection for investors is weak. It suggests that although new legislative reforms have been enacted, Sri Lankan companies are highly dependent on internal governance mechanisms. There is potential merit in promulgating new rules to control the expropriation of minority shareholders.

  15. Board Characteristics and Firm Performance: Evidence from Indonesia (137-154

    Directory of Open Access Journals (Sweden)

    Athalia Ariati Hidayat

    2017-01-01

    Full Text Available This research examines the effect of board characteristics (comprising in different sized proportions: family commissioners, family directors, independent commissioners, ex-government officer commissioners, and board of commissioners size to firm performance. Using fixed-effects data panel regression, this research investigates 293 firms listed on the Indonesian Stock Exchange during 2008-2012. Firm performance is proxied by market measure (Tobin’s Q and accounting measure (ROA. The findings of this research suggest that the proportion of family commissioners and family directors have positive impact only to Tobin’s Q value, while the proportion of independent directors can increase both Tobin’s Q and ROA. On the other hand, this research finds that the proportion of ex-government officers in the board gives no impact to firm performance. This research also finds that the board size has U-shaped non-linear relationship with firm performance as proxied by Tobin’s Q and ROA.Keywords: board of commissioners size, ex-government officer commissioner, family commissioner, family director, independent commissioner

  16. THE BOARD STRUCTURE AND FIRM PERFORMANCE IN SMES: EVIDENCE FROM SPAIN

    Directory of Open Access Journals (Sweden)

    Arosa, Blanca

    2013-09-01

    Full Text Available The aim is to analyse the efficiency of the board of directors as a corporate governance mechanism. For this purpose, we examine the effect of board composition, size, activity, leadership structure and CEO tenure on firm performance. To test our hypothesis we use a sample of 307 Spanish SMEs, none of which is listed. Our main empirical result is the negative impact of the outside directors proportion and board size on firm performance. The presence of outside directors can be said not to have resulted in improved firm performance. Despite the greater monitoring, advising and networking capacity attributed to outside directors, the firms in the sample showed a significant presence of insider directors, an aspect that may be related to their greater knowledge of the firm, with a subsequently positive effect on strategic planning decisions. The negative effect of board size could indicate that the disadvantages of worse coordination, flexibility and communication inside large boards seem to be more important than the benefits of better manager control by the board of directors.

  17. Empirical Evidence of Entrepreneurial Competencies and Firm Performance: A Study of Women Entrepreneurs of Nigeria

    Directory of Open Access Journals (Sweden)

    Mohammed Kabir

    2017-06-01

    Full Text Available The purpose of current study is to investigate the effects of entrepreneurial competencies on firm performance of businesses owned by Nigerian women entrepreneurs. The 200 respondents of this study are women entrepreneurs operating micro-business units in Kaduna state, Nigeria. Survey questions was used to collect data. The study utilises SPSS and SmartPLS 2.0 to analyse the data. The findings indicated that strategic, opportunity and organizing competencies significantly affect the firm performance of women entrepreneurs in Nigeria.

  18. Unrelated Diversification and Firm Performance: 1980-2007 Evidence from Italy

    Directory of Open Access Journals (Sweden)

    Raffaele Staglianò

    2012-03-01

    Full Text Available The goal of this article is to examine the relationship between unrelated diversification and performance. Results indicate that diversified firms, investing in activities far from the corebusiness, have high performance. Unrelated diversification positively affects firms’ performance. In addition, the estimation methods applied are fundamental in order to verify if there are endogeneity problems in the diversification decision and evaluate the effective role of diversification on performance.

  19. Flexible labor and innovation performance: Evidence from longitudinal firm-level data

    NARCIS (Netherlands)

    Kleinknecht, A.; Dekker, R.; Zhou, H.

    2009-01-01

    Firms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of innovative new products (“first on the market”). High functional flexibility in “insider-outsider” labor markets enhances a firm’s new

  20. Flexible Labor and Innovation Performance: Evidence from Longitudinal Firm-Level Data

    NARCIS (Netherlands)

    H. Zhou (Haibo); R. Dekker (Ronald); A. Kleinknecht (Alfred)

    2010-01-01

    textabstractFirms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of inno¬va¬tive new products (“first on the market”). High functional flexibility in “insider-outsider” la¬bor markets enhances a

  1. Flexible labor and innovation performance: Evidence from longitudinal firm-level data

    NARCIS (Netherlands)

    Dekker, R; Kleinknecht, A.H.; Zhou, H

    2010-01-01

    Firms with high shares of workers on fixed-term contracts have significantly higher sales of imitative new products but perform significantly worse on sales of innovative new products (“first on the market”). High functional flexibility in “insider-outsider” labor markets enhances a firm’s new

  2. Financial Participation Plans and Firm Financial Performance: Evidence from a Dutch Longitudinal Panel

    NARCIS (Netherlands)

    Poutsma, F.; Braam, G.J.M.

    2012-01-01

    This study investigates the relationship between financial participation plans, that is profit sharing, share plans and option plans, and firm financial performance using a longitudinal panel data set of non-financial listed companies for the period 1992–2009 comprising 2,216 observations. In

  3. Financial Participation Plans and Firm Financial Performance: Evidence from a Dutch Longitudinal Panel

    NARCIS (Netherlands)

    Poutsma, F.; Braam, G.J.M.

    2012-01-01

    This study investigates the relationship between financial participation plans, that is profit sharing, share plans and option plans, and firm financial performance using a longitudinal panel data set of non-financial listed companies for the period 1992–2009 comprising 2,216 observations. In additi

  4. Social security and firm performance

    DEFF Research Database (Denmark)

    Torm, Nina; Lee, Sangheon

    2015-01-01

    The relationship between job quality and firm performance has been much debated with mixed evidence, and the evidence is particularly limited in the case of small and medium enterprises (SMEs) in emerging economies. This paper investigates how social security provision as a key determining factor......) in that the benefits may not realize in the immediate term. Thus, specific policy measures such as subsidising social insurance contributions for small firms during an initial period until the business becomes viable could potentially encourage active participation in mandatory schemes. A series of robustness check...

  5. Family controlled firm, governance mechanisms and corporate performance: Evidence from Indonesia

    Directory of Open Access Journals (Sweden)

    Eko Suyono

    2016-07-01

    Full Text Available This study investigates, firstly, the influence of family-controlled firm on corporate performance, and secondly, the influences of corporate governance mechanisms including control variable on corporate performance in the companies listed on the Indonesian Stock Exchange. By using five years (2009-2013 company data, this study used Ordinary Least Square (OLS regression to test the hypotheses. The results based on OLS, indicate that family controlled firms tend to have better performance than non Family controlled firms. Moreover, in regard to the link between governance variables and corporate performance, only managerial ownership exhibits a positive relation with corporate performance, for both proxies, i.e. Tobins Q and ROA. Yet, the rests of governance variables (i.e. institutional ownership, audit committee, board of directors and independent board of commissioners do not confirm the relationship with corporate performance. These findings have significant policy implications for the government, regulatory bodies, companies and other stakeholders including the investors in Indonesia to shape and implement an optimal governance system that can improve corporate performance.

  6. Corporate Governance Impact on Firm Performance: Evidence from Cement Industry of Pakistan

    Directory of Open Access Journals (Sweden)

    Farrukh Shahzad

    2015-01-01

    Full Text Available This study reveals relation between three corporate governance instruments (Board Size, Board Composition and CEO-Status and one firm performance is measured using accounting-based measures (return on asset (ROA of Karachi Stock Exchange listed cement firms is observed for the period 2007–2013. The ADF Test Multiple Regression and T-test exploration are applied to examine the significance & dependency of the overhead stated variables. Panel data methodology is utilized by estimate the arithmetic means, T-test and OLC by using the E-views. The finding revealed that there is a positive and significant relationship between ROA with board size and negative significant relationship between ROA with CEO-Status furthermore insignificant relationship between ROA with Board composition. The ramifications of this is that the board size ought to be restricted to a sizeable utmost also that the post of the CEO ought to be possessed by distinctive persons.

  7. Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data

    DEFF Research Database (Denmark)

    Gong, Yundan; Yu, Zhihong; Girma, Sourafel

    2009-01-01

    at the intensive margin, although this effect is conditional on firm characteristics. In particular, the positive relationship between subsidies and the intensive margin of exports is strongest among profit-making firms, firms in capital-intensive industries, and those located in non-coastal regions. Compared...... to firm characteristics, the extent of heterogeneity across ownership structure (SOEs, collectives, and privately owned firms) proves to be relatively less important...

  8. Does external technology acquisition determine export performance? Evidence from Chinese manufacturing firms

    DEFF Research Database (Denmark)

    Wang, Yuandi; Cao, Wei; Zhou, Zhao

    2013-01-01

    Although technology profile has been one of the key determinants of firms’ export performance in the international business literature, most research has focused on only the role of internal technology efforts rather than the role of external technology. This study thus aims to extend our...... understanding of the determinants of export performance by examining the impact of the inter-organizational dimension of innovation strategy to export performance, which has been ignored in the prevailing “strategy tripod” perspective of exporting research. This study is based on a sample of 141 Chinese...... indigenous manufacturing firms that engaged in inward technology licensing between 2000 and 2003. The empirical results indicate that external technology acquisitions positively influence Chinese firms’ export performance. Moreover the exporting performance of using external technology varies depending...

  9. Performance of the internal audit department under ERP systems: empirical evidence from Taiwanese firms

    Science.gov (United States)

    Tsai, Wen-Hsien; Chen, Hui-Chiao; Chang, Jui-Chu; Leu, Jun-Der; Chao Chen, Der; Purbokusumo, Yuyun

    2015-10-01

    In this study, the performance of the internal audit department (IAD) and its contribution to a company under enterprise resource planning (ERP) systems was examined. It is anticipated that this will provide insight into the factors perceived to be crucial to a company's effectiveness. A theoretical framework was developed and tested using the sample of Taiwanese companies. Using mail survey procedures, we elicited perceptions from key internal auditors about the ERP system and auditing software, as well as their opinions concerning the IAD's effectiveness and its contribution within a company. Data were analysed using the partial least square (PLS) regression to test the hypotheses. Drawing upon a sample of Taiwanese firms, the study suggests that a firm can improve the performance of the IAD through an enterprise-wide integrated, effective ERP system and appropriate auditing software. At the same time, the performance of the IAD can also contribute significantly to the company. The results also show that investments in computer-assisted auditing techniques (CAATs) are crucial due to their tremendous effectiveness in regard to the performance of the IAD and for the contributions CAATs can make to a company.

  10. Measuring Firm Performance

    DEFF Research Database (Denmark)

    Assaf, A. George; Josiassen, Alexander; Gillen, David

    2014-01-01

    Set in the airport industry, this paper measures firm performance using both desirable and bad outputs (i.e. airport delays). We first estimate a model that does not include the bad outputs and then a model that includes bad outputs. The results show important differences in the efficiency...... and productivity results depending on whether bad outputs are or are not included in the model. The differences reflect the resource cost to society and the potential cost to an airport if such externalities were internalized. Finally, the paper provides measures of shadow prices for the bad output, in our case...

  11. The Relationships between Commodity Prices, Firm Performance and Stock Valuation: An Empirical Evidence from Malaysia and Singapore

    OpenAIRE

    2013-01-01

    The study estimates the commodity prices and firm performance risk exposures of the Malaysian and Singaporean plantation and other related commodities’ sectors, using the Ohlson (1995)’s, Easton and Harris (1991)’s and other related asset prices together with return models augmented with accounting factors. Results show that the firm performance factors affect significantly and strongly stock valuation. However, the commodity prices affect determinants of firm performance and stock valuation ...

  12. Response : Board Composition and Firm Performance : Evidence from Bangladesh – A Sceptical View

    Directory of Open Access Journals (Sweden)

    Khorshed Chowdhury

    2010-12-01

    Full Text Available I have read the above paper with keen interest. The key finding of this paper is interesting: the appointment ofindependent directors has no perceptible influence on a firm’s economic performance in Bangladesh. Theconclusion was derived from a sample of 274 firm-years. The implication of this finding is also very significantfor regulators in Bangladesh and elsewhere ‘in their quest for harmonization of international corporategovernance practices’ Rashid et al. (2010, p76. This paper also complements the results of an earlier paperon an allied topic by Bhuiyan and Biswas (2007 where they found that (p22 ‘corporate governancedisclosure in Bangladesh is significantly influenced by local ownership, the SEC notification, and size of thecompany but belonging to financial or non-financial institution company, multinational company, age andsize of the board of directors do not have significant impact on corporate governance disclosure. So stepsshould be taken for mandatory compliance of the SEC notification and for reducing the gap between largeand small firms’ disclosure practices’.

  13. Does internationalization foster firm performance?

    NARCIS (Netherlands)

    van den Berg, Marcel

    2014-01-01

    The research in this dissertation concerns the impact of internationalization of business activities on several dimensions of firm performance. We show that the productivity ranking by trade status of Dutch manufacturing firms in increasing order of productivity is: non-traders, importers, exporters

  14. Does internationalization foster firm performance?

    NARCIS (Netherlands)

    van den Berg, Marcel

    2014-01-01

    The research in this dissertation concerns the impact of internationalization of business activities on several dimensions of firm performance. We show that the productivity ranking by trade status of Dutch manufacturing firms in increasing order of productivity is: non-traders, importers, exporters

  15. Reversal of impairment losses, firm performance and reporting incentives: Evidence from Malaysia

    OpenAIRE

    Shaari, Hasnah

    2013-01-01

    Malaysian Financial Reporting Standard (FRS) No. 136, Impairment of Assets, was issued in 2005. The standard requires public listed companies to report their non-current assets at no more than their recoverable amount. When the value of impaired assets is recovered, or partly recovered, FRS 136 requires the impairment charges to be reversed to its new recoverable amount. This study tests whether the reversal of impairment losses by Malaysian firms is more closely associated with economic reas...

  16. Commercialization of Innovations and Firm Performance

    DEFF Research Database (Denmark)

    Madsen, Erik Strøjer; Smith, Valdemar

    The decision on investment in R&D is very important and highly risky for firms' performance and survival in their business. This paper focuses on the commercialization of firms' investment in innovation and how these decisions affect their performance. The study uses a large innovation survey...... of Danish firms holding information on their R&D investment as well as their expenses on marketing which gives knowledge of the commercialization of their innovations. The results suggest a highly significant commercialization of innovation, which means that firms' follows a strategy of investment both...... in innovation and marketing making R&D and marketing complements in their investment decision. However, there is only week evidence for the hypothesis that commercialization of innovations also creates more value for the firms in the short run.  ...

  17. Commercialization of Innovations and Firm Performance

    DEFF Research Database (Denmark)

    Madsen, Erik Strøjer; Smith, Valdemar

    The decision on investment in R&D is very important and highly risky for firms' performance and survival in their business. This paper focuses on the commercialization of firms' investment in innovation and how these decisions affect their performance. The study uses a large innovation survey...... of Danish firms holding information on their R&D investment as well as their expenses on marketing which gives knowledge of the commercialization of their innovations. The results suggest a highly significant commercialization of innovation, which means that firms' follows a strategy of investment both...... in innovation and marketing making R&D and marketing complements in their investment decision. However, there is only week evidence for the hypothesis that commercialization of innovations also creates more value for the firms in the short run....

  18. Web traffic and firm performance

    DEFF Research Database (Denmark)

    Farooq, Omar; Aguenaou, Samir

    2013-01-01

    Does the traffic generated by websites of firms signal anything to stock market participants? Does higher web-traffic translate into availability of more information and therefore lower agency problems? And if answers to above questions are in affirmative, does higher web-traffic traffic translate...... into better firm performance? This paper aims to answer these questions by documenting a positive relationship between the extent of web-traffic and firm performance in the MENA region during the 2010. We argue that higher web-traffic lowers the agency problems in firms by disseminating more information...... to stock market participants. Consequently, lower agency problems translate into better performance. Furthermore, we also show that agency reducing role of web-traffic is more pronounced in regimes where information environment is already bad. For example, our results show stronger impact of web-traffic...

  19. Demystifying the role of a state ownership in corporate governance and firm performance: Evidence from the manufacturing sector in Malaysia

    Directory of Open Access Journals (Sweden)

    Amran Rasli

    2013-12-01

    Full Text Available The aim of this research is to examine the role of state ownership in corporate governance and firm performance. We employed ordinary least squares and two-stage least squares regressions to analyze the effects of state ownership on firm performance. We go beyond existing research on state ownership by carefully disentangle investment objectives of state-controlled financial institutions. Such state ownership can be classified as profit-oriented and non-profit-oriented, in which the former consider return on investment to be the primary investment objective, whereas the latter prioritizes socio-economic development. We found that profit-oriented state ownership is an effective corporate governance mechanism and provides political patronage to the firm in the form of firm’s specific resources and credit financing. Although nonprofit-oriented state ownership firms also receive similar political patronage, they tend to be associated with inefficiencies such as the free-rider problems, bureaucracies and political intervention in firm management. We conclude that state ownership consists of heterogeneous entities with respect to corporate governance and firm performance.

  20. Effect of Disproportional Voting Rights on Firm’s Market Performance: Evidence from Chinese Firms Cross-Listed on U.S. Exchanges

    Directory of Open Access Journals (Sweden)

    Abdullah

    2017-09-01

    Full Text Available Dual-class firms face great criticism as it is believed that firms choose this structure to expropriate minority shareholders’ wealth. We compare market performance of Chinese dual-class firms with their single-class counterparts by constructing a list of Chinese firms cross-listed on U.S. exchanges. We find, contrary to the literature, that Chinese dual-class firms are outperforming in terms of market performance measured by Tobin’s Q, P/E ratio, and abnormal return in both subsequent years after the initial public offering (IPO. The reason for contrary results is that Chinese dual-class firms bond themselves to high U.S. standards from low local Chinese standards, and it is evident from the literature that when a firm bonds itself to high standards it shows a credible commitment towards minority shareholders’ rights, as well as focus on upright performance rather than investing in value-destroying projects and competes to survive in the market that imposes the high standards.

  1. Knowledge, Entrepreneurship and Performance: Evidence from country-level and firm-level studies

    NARCIS (Netherlands)

    Zhou, Haibo

    2010-01-01

    This book investigates the interrelations between knowledge and entrepreneurship, and their consequences with regard to economic performance. Both knowledge and entrepreneurship are recognized as new twin driving forces for economic growth. Recent studies suggest that neither knowledge nor entrepren

  2. Knowledge, Entrepreneurship and Performance: Evidence from country-level and firm-level studies

    NARCIS (Netherlands)

    H. Zhou (Haibo)

    2010-01-01

    textabstractThis book investigates the interrelations between knowledge and entrepreneurship, and their consequences with regard to economic performance. Both knowledge and entrepreneurship are recognized as new twin driving forces for economic growth. Recent studies suggest that neither knowledge n

  3. The impact of intellectual capital on firm performance: Evidence from Tehran Stock Exchange

    Directory of Open Access Journals (Sweden)

    Mehran Matinfard

    2015-11-01

    Full Text Available The aim of the present research is to study the relationship between intellect capital components and performance evaluation indicators. For measuring intellectual capital, the study uses Pulic’s method [Pulic, A. (2000. VAIC™–an accounting tool for IC management. International Journal of Technology Management, 20(5-8, 702-714.], which consists of three components of physical capital efficiency, human capital efficiency and structural capital efficiency. In the present study first, the value of the intellectual capital of the companies listed on Tehran Stock Exchange over the period 2006-2012 is calculated. Next, the relationship between the components of intellectual capital and financial return of the companies are evaluated. For calculating the financial performance 8 performance indicators in 5 groups presenting market value, profitability, activity, capital return, orientation on value creation are used. In the present research the statistical method used for data analysis is multiple regression and correlation coefficients. The selected sample of research includes 73 companies in continuous way for a time period of 7 years and the size of the company has been considered as a control variable. The findings indicate a positive and significant relationship between intellectual capital and financial performance of companies and a positive effect of the size of company on availability rate of intellectual capital and financial performance of a company.

  4. Extrinsic and intrinsic drivers of corporate social performance: evidence from foreign and domestic firms in Mexico

    NARCIS (Netherlands)

    Muller, A.; Kolk, A.

    2010-01-01

    The literature on corporate social performance (CSP) is largely split between approaches that consider CSP to be extrinsically driven and those that consider it to be intrinsically driven. While the management literature has paid attention to drivers of both types, the relationship between the two

  5. Nomination Commitee Attributes and Firm Performance: Evidence from Finance Companies in Malaysia

    OpenAIRE

    KALLAMU, Basiru Salisu

    2016-01-01

    Abstract. The paper examines the impact of nomination committee attributes on the performance of finance companies in Malaysia. Our panel data is composed of annual data for finance companies listed on the main market of Bursa Malaysia over the period 2004 to 2011. The result indicates that finance expertise of directors’ on nomination committee influences accounting returns positively while membership of executive on nomination committee affects accounting returns negatively. This indicates ...

  6. Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms

    Directory of Open Access Journals (Sweden)

    Xiping Pan

    2014-06-01

    Full Text Available This paper examines the relationship between Corporate Social Responsibility (CSR and Corporate Financial Performance (CFP using panel data for 228 Chinese mineral listed firms from 2010 to 2013 with Pooled Least Squares regression analysis. Our study considers five different sublevel CSR issues—shareholder responsibility, employee responsibility, environmental responsibility, public responsibility, and supplier, customer and consumer responsibility—in capturing the effects of CSR elements on CFP. The estimation results show the different effects of each sublevel CSR issue on CFP. Overall, shareholder, employee responsibility, environmental responsibility, supplier, customer and consumer responsibility have significant relationships with CFP, which are the stakeholders who have the closest linkage with firm operations. Meanwhile, public responsibility outside the firm does not show significant interaction with CFP, which is why many mineral firms ignore the public interest and this leads to conflicts. Shareholder responsibility has the most significant positive effect on CFP. Supplier, customer and consumer responsibility and environmental responsibility usually have negative effects on CFP as costs increase. Moreover, all 228 listed mineral firms that were selected in this paper have been classified into five sub-sectors: the extractive industry, metal fabrication industry, oil and gas industry, gas and water-related industry, and oil-producing equipment industry, based on the Industry Classification Benchmark (ICB. Our study shows that the differences in the relationship between CSR and CFP for five sublevel industries are due to industry characteristics. If the government wants to solve these conflicts and positively encourage firms to adopt CSR, it is necessary to create a mining development environment whereby firm profits are closely tied to CSR.

  7. The impact of licensed-knowledge attributes on the innovation performance of licensee firms: evidence from the Chinese electronic industry

    DEFF Research Database (Denmark)

    Wang, Yuandi; Zhou, Zhao; Li-Ying, Jason

    2013-01-01

    of Intellectual Property Office regarding technology-licensing activities and spanning the years 2000–2010. Using this dataset we make a longitudinal analysis of the lagging learning effect that transferee firms experience when they in-license technology. The empirical results from 71 Chinese electronic......-industry firms reconfirm the concept of ‘‘learning-by-licensing.’’ Moreover, the results also indicate that both technology complexity and technology generality, which are attributes of licensed knowledge, have positive moderating effects on the relationship between technology in-licensing and the subsequent......In this article, we provide a compelling case for demonstrating ‘‘learning-bylicensing,’’ and we further investigate the moderating effect of specific licensed-knowledge attributes on the innovation performance of licensee firms. This case is based on a unique dataset from the China State...

  8. Influence of Organisational Culture on Total Quality Management Implementation and Firm Performance: Evidence from the Vietnamese Construction Industry

    Directory of Open Access Journals (Sweden)

    Panuwatwanich Kriengsak

    2017-03-01

    Full Text Available The main purpose of this study is to examine the relationship between organisational culture (OC and Total Quality Management (TQM, and the influence of TQM implementation on organisational performance improvement within the context of the Vietnamese construction industry. A survey was conducted with 104 respondents from Vietnamese construction firms, using validated survey instruments developed in past research. Analysis techniques include cluster analysis and Structural Equation Modelling. Findings showed that Vietnamese construction firms are dominated by clan and hierarchy cultures rather than adhocracy and market cultures according to Competing Value Framework (CVF of OC classification. Furthermore, it was found that organisations dominated by either clan or adhocracy cultures could provide a favourable environment for successful TQM implementation, whereas this is not the case for those dominated by both market and hierarchy cultures. This study also confirmed the significant and positive relationship between TQM implementation and organisational performance improvement.

  9. Patenting activities and firm performance : Does firm size matter?

    NARCIS (Netherlands)

    Andries, P.; Faems, D.L.M.

    2013-01-01

    Whereas prior research has provided valuable insights into the willingness of small and medium-sized enterprises (SMEs) and large firms to engage in patenting, a comparison of the performance implications of patenting activities across small and large firms is still lacking. This gap is important be

  10. Entry Mode and Performance of Nordic Firms

    DEFF Research Database (Denmark)

    Wulff, Jesper

    2015-01-01

    This study investigates whether the relationship between mode of international market entry and non-location bound international experience is weaker for firms that are large or have a high foreign to total sales ratio, labeled multinational experience. Empirical evidence based on 250 foreign...... market entries made by Norwegian, Danish and Swedish firms suggests that the association between equity mode choice and non-location bound international experience diminishes in the presence of higher levels of multinational experience. Furthermore, firms whose entry mode choice is predicted by the model...... including the proposed moderating effect, on average, yield higher post-entry performance. This study sheds light on inconsistent results found in previous research investigating the impact of international experience and has practical implications for managerial decision-making....

  11. Are Family Firms Better Performers during Financial Crisis?

    DEFF Research Database (Denmark)

    Zhou, Haoyong

    (Italy) during the period 2006-2010, I give empirical evidences examining the performance of family firms vis-à-vis non-family firms during the current financial crisis. I find that broadly defined family firms, comprising 35 percent of the sample, do not outperform non-family firms during the crisis......, compared with non-family firms, founder firms have less administrative costs incurred. Moreover, they invest significantly less and have better access to credit market. All these findings contribute to superior accounting performance of founder firms during the crisis. My results suggest...... that in the financial crisis, founder firms bear the least agency cost and Tobin’s Q is not a good measure of corporate performance....

  12. Risk/Return Performance of Diversified Firms

    OpenAIRE

    Richard A. Bettis; Vijay Mahajan

    1985-01-01

    Based on a sample of 80 firms, this paper examines the risk/return performance of related and unrelated diversified firms at the level of accounting data. The results suggest that although on the average related diversified firms outperform unrelated diversified firms, related diversification offers no guarantee of a favorable risk/return performance. (Many low performers are related diversifiers.) In fact, different diversification strategies can result in similar risk/return performance. Ho...

  13. Heterogeneity in Firm Performance During Economic Crisis

    Directory of Open Access Journals (Sweden)

    Sergio Bruni

    2014-06-01

    Full Text Available What happens to firms during periods of deep economic crisis? Did different types of firms perform differently under the economic crisis? With the aid of a rich database and focusing on the literature regarding the growth of firms, this paper investigates the relative profitability performance of Italian firms during the current economic crisis, exploring those factors, which help certain firms to do relatively better even in the slowdown period. Some preliminary results show that the Italian firms that are relatively young in age, with relatively better current liquidity and more focused on domestic market have performed better than other firms. Furthermore, firms operating in high-tech and in highly concentrated sectors have enjoyed a better performance in this period.

  14. Performance of Patenting Firms in Danish Manufacturing

    DEFF Research Database (Denmark)

    Madsen, Erik Strøjer; Smith, Valdemar; Nielsen, Anders Østergaard

    2000-01-01

    -patenting firms within the manufacturing sector in Denmark. Performance is measured both by growth in employment as well as in the return on equity and profit share in turnover. The results suggest that differences in performance of patenting and non-patenting firms are very small, which questions the political......Most countries focus on industries with high technology and the governments grant subsidies to innovating firms. However, there has been remarkable few studies of the performance of innovative firms or industries. This study examines the performance of patent active firms compared to the non...

  15. Women in Top Management and Firm Performance

    DEFF Research Database (Denmark)

    Smith, Nina; Smith, Valdemar; Verner, Mette

    -observations for all Danish firms with more than 50 employees over the period 1994-2003, the analysis suggests that the proportion of women in top management jobs has from none to positive influence on firm performance. However, the results show that the strength of the effects of women in top management depends...... on how top CEOs are defined and on the method of estimation of the model. Next, the results point towards a positive influence on firm performance of the staff representation in the supervisory board of the firm but more women representing the shareholders in the supervisory board of the firm seems...

  16. Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

    Directory of Open Access Journals (Sweden)

    Chin Sok Fun

    2017-01-01

    Full Text Available Do financial restatements dampen firm performance? One argument about this is that restatements hurt investor confidence in the credibility of a firm’s disclosure, resulting in a decline in demand for the firm’s securities, thereby, leading to a significant drop in asset price. On the other hand, agency theory suggests that family ownership could have potential benefits to a firm’s performance. An increase in family ownership will have a greater concern for reputation to the controlling family in producing high quality accounting information and, thereby, reduce the likelihood of financial restatements. We evaluate these arguments by distinguishing the effects of restatements on firm performance under two corporate governance environments; family-controlled and CEO duality companies. Based on a sample of Malaysian listed companies in 2008 after the post MCCG 2007 initiative, our findings suggest that (1 restatements dampen firm performance, (2 the dampening impacts of restatements are completely mitigated in family-controlled companies, and (3 the dampening effects are more pronounced in non-family controlled companies than family-controlled companies in non-CEO duality companies. Using this evidence, we recommend that Malaysian regulators develop policies that are unique to the Malaysian markets so as to curtail accounting irregularities. They should reconsider the relevance of requiring CEO nonduality as a practice of good corporate governance and encourage more investment in family-controlled companies.

  17. Does Labor Diversity Affect Firm Performance?

    DEFF Research Database (Denmark)

    Pytlikova, Mariola; Pozzoli, Dario; Parrotta, Pierpaolo

    /education significantly enhances firm performance as measured by firm TFP. Conversely, diversity in demographics and ethnicity brings mixed results – both dimensions of workforce diversity have either no or negative effects on firm TFP. Hence, it seems as if the negative effects, coming from communication and integration...... costs connected to a more demographically and culturally diverse workforce, counteract the positive effects of diversity on firm TFP, coming from creativity and knowledge spillovers. However, we find that ethnic diversity is valuable for firms operating in industries characterized by above-average trade...... openness, giving support to the hypothesis that an ethnically diverse workforce provides information and access to global markets....

  18. The Dispersion of Employees' Wage Increases and Firm Performance

    DEFF Research Database (Denmark)

    Grund, Christian; Westergård-Nielsen, Niels Chr.

    does not induce any monetary incentives. Evidence from unique Danish linked employer employee data shows that large dispersion of wage growth within firms is generally connected with low firm performance. The results are mainly driven by white collar rather than blue collar workers....

  19. Shared vision promotes family firm performance.

    Science.gov (United States)

    Neff, John E

    2015-01-01

    A clear picture of the influential drivers of private family firm performance has proven to be an elusive target. The unique characteristics of private family owned firms necessitate a broader, non-financial approach to reveal firm performance drivers. This research study sought to specify and evaluate the themes that distinguish successful family firms from less successful family firms. In addition, this study explored the possibility that these themes collectively form an effective organizational culture that improves longer-term firm performance. At an organizational level of analysis, research findings identified four significant variables: Shared Vision (PNS), Role Clarity (RCL), Confidence in Management (CON), and Professional Networking (OLN) that positively impacted family firm financial performance. Shared Vision exhibited the strongest positive influence among the significant factors. In addition, Family Functionality (APGAR), the functional integrity of the family itself, exhibited a significant supporting role. Taken together, the variables collectively represent an effective family business culture (EFBC) that positively impacted the long-term financial sustainability of family owned firms. The index of effective family business culture also exhibited potential as a predictive non-financial model of family firm performance.

  20. Shared Vision promotes family firm performance

    Directory of Open Access Journals (Sweden)

    John Edward Neff

    2015-05-01

    Full Text Available A clear picture of the influential drivers of private family firm performance has proven to be an elusive target. The unique characteristics of private family owned firms necessitate a broader, non-financial approach to reveal firm performance drivers. This research study sought to specify and evaluate the themes that distinguish successful family firms from less successful family firms. In addition, this study explored the possibility that these themes collectively form an effective organizational culture that improves longer-term firm performance. At an organizational level of analysis, research findings identified four significant variables: Shared Vision (PNS, Role Clarity (RCL, Confidence in Management (CON, and Professional Networking (OLN that positively impacted family firm financial performance. Shared Vision exhibited the strongest positive influence among the significant factors. In addition, Family Functionality (APGAR, the functional integrity of the family itself exhibited a significant supporting role. Taken together, the variables collectively represent an effective family business culture (EFBC that positively impacted the long-term financial sustainability of family owned firms. The index of effective family business culture also exhibited potential as a predictive non-financial model of family firm performance.

  1. The Dispersion of Employees' Wage Increases and Firm Performance

    DEFF Research Database (Denmark)

    Grund, Christian; Westergård-Nielsen, Niels Chr.

    considerations. We argue that the dispersion of wage increases rather than wage levels is a crucial measure for monetary incentives in firms. The larger the dispersion of wage increases the higher the amount of monetary incentives in firms. In contrast, huge wage inequality without any promotion possibilities...... does not induce any monetary incentives. Evidence from unique Danish linked employer employee data shows that large dispersion of wage growth within firms is generally connected with low firm performance. The results are mainly driven by white collar rather than blue collar workers....

  2. Diversification and firm performance: A study of Indian manufacturing firms

    OpenAIRE

    Ravichandran, Archana; Bhaduri, Saumitra

    2015-01-01

    The advantages and disadvantages of diversification and its impact on productivity or performance of a firm have been debated upon by academics and business professionals all over, although views on the topic still differ widely. While popular views are that related diversification increases value and unrelated diversification decreases value, the results of research conducted on the effects of overall diversification (without distinguishing between related and unrelated diversification) on p...

  3. Internationalization and Performance of Retail Firms

    DEFF Research Database (Denmark)

    Assaf, A. George; Josiassen, Alexander; T. Ratchford, Brian

    2012-01-01

    This paper offers a fresh approach to the literature examining the effect of internationalization on retail-firm performance. We draw on the organizational learning theory to test the moderating effect of four variables which are hypothesized to affect the performance of internationalizing...... retailers through facilitating the transfer of learning in international markets. The study innovates by introducing a new performance metric, and an advanced methodology to account for the dynamic aspects of organizational learning. Testing our hypotheses on a sample of international retailers, we find...... that the relationship between internationalization and performance is U-shaped, and moderated by mergers and acquisitions, age at entry to international markets and country of origin. The findings extend prior research by providing more comprehensive evidence regarding the conditions under which internationalization...

  4. Architectural firms: workforce, business strategy and performance

    Directory of Open Access Journals (Sweden)

    Adedapo Adewunmi Oluwatayo

    2011-12-01

    Full Text Available The intent of this research was to investigate the relationship between the workforce, business strategy and performance of architectural firms. Data was collected from 92 firms randomly selected from the cities where architectural firms were most concentrated in Nigeria using questionnaires. Hierarchical regression analysis was carried out to investigate the direct and indirect impacts of the workforce of architectural firms on their performance. The findings confirm the significant positive impact. With business strategy controlled, the specific characteristics of the workforce and its management which influenced performance were the number of architects, the work structure, and the age and experience of the principal partners. The impact of the number of non- architecture professionals and staff participation in decision-making on performance was moderated by the business strategy adopted by the firms. The results suggest that workforce characteristics are more important than the management of the workforce in determining performance of architectural firms. This is contrary to the results of previous studies which suggest higher importance of the management. This probably indicates the peculiarity of architectural firm as a professional service firm in the construction industry.

  5. Views of CEOs on Firm Performance

    Directory of Open Access Journals (Sweden)

    Dario Berginc

    2014-11-01

    Full Text Available Researching the managerial perspective of performance can contribute to a better understanding of firm performance, and offer a valuable contribution to research on objective performance measurement. The aim of this article is to examine how managers evaluate firm performance and which factors, in their opinion, have the biggest influence on performance. We particularly wanted to investigate the influence of top management and owners on firm performance. We conducted a qualitative study among the CEOs of some of the most successful Slovenian firms. The results show that CEOs connect positive performance with long-term growth and satisfying the needs of key stakeholders (employees, customers and owners, but short-term positive financial performance represents the basic foundation. The second most important factor is a united top management, capable of generating new ideas and acting as a role model to employees. This can lead to a higher degree of engagement by employees and a better understanding of the firm's goals. Owners can contribute to a positive firm performance with their active, strategic and long-term orientation, and with their ability to set clear goals and to trust top management in the long run. Another important factor that influences firm performance is the ownership structure. In the opinion of CEOs, dominant and private ownership has a more positive impact on firm performance than dispersed and state ownership. The present research findings provide several examples of good and bad practice, and highlight opportunities for further research, from an in-depth study of individual factors of firm performance to the search for a more comprehensive model of performance factors, based on a larger sample of CEOs and other managers.

  6. How does firm performance influence market orientation?

    DEFF Research Database (Denmark)

    Sørensen, Hans Eibe; Stieglitz, Nils

    This paper contributes by investigating how firm performance influences its market orientation. We draw on the aspiration-level model from the behavioral theory of the firm to develop testable propositions that substantiate and extend prior market orientation research. Specifically, we address ho...... performance influences firms' market-oriented search behavior (responsive or proactive) and the allocation of attention (customer and competitor orientation) as well as the formation of aspiration levels. Research and managerial implications are discussed.......This paper contributes by investigating how firm performance influences its market orientation. We draw on the aspiration-level model from the behavioral theory of the firm to develop testable propositions that substantiate and extend prior market orientation research. Specifically, we address how...

  7. Firm Culture and Leadership as Firm Performance Predictors : a Resource-Based Perspective

    NARCIS (Netherlands)

    Wilderom, C.P.M.; van den Berg, P.

    2000-01-01

    In this study, we tested part of the resource-based view of the firm by examining two 'soft' resources, firm culture and top leadership, as predictors of 'hard' or bottom-line firm performance.Transformational top leadership was found to predict firm performance directly while the link between firm

  8. Firm Culture and Leadership as Firm Performance Predictors : a Resource-Based Perspective

    NARCIS (Netherlands)

    Wilderom, C.P.M.; van den Berg, P.

    2000-01-01

    In this study, we tested part of the resource-based view of the firm by examining two 'soft' resources, firm culture and top leadership, as predictors of 'hard' or bottom-line firm performance.Transformational top leadership was found to predict firm performance directly while the link between firm

  9. Does Innovating Customer Relationship Management Improve Firm Performance?

    DEFF Research Database (Denmark)

    Geersbro, Jens; Ritter, Thomas

    Based on an empirical study of more than 400 B2B firms, this paper investigates the role of innovating a firm’s customer relationship management capability on firm performance. There is a lot of evidence for the positive impact of customer relationship management capability on firm performance...... seem to drive relationship management innovation but contrary to expectations, competitor intensity is negatively correlated with innovation; the more intense competition the less innovation. In conclusion we identify managerial implications and suggest avenues of further research........ This paper advances this stream of literature by analyzing whether or not investments into developing a firm’s customer relationship capability increase firm performance. The findings illustrate that although relationship management innovation (defined as new (to the firm) processes, systems and tools...

  10. Does Labor Diversity Affect Firm Performance?

    DEFF Research Database (Denmark)

    Pytlikova, Mariola; Pozzoli, Dario; Parrotta, Pierpaolo

    Using an employer-employee dataset, we analyze how diversity in cultural background, skills and demographic characteristics affects total factor productivity (TFP) of firms in Denmark. Implementing structural estimation of firms’ production function, we find evidence that labor diversity in skill...... openness, giving support to the hypothesis that an ethnically diverse workforce provides information and access to global markets....... costs connected to a more demographically and culturally diverse workforce, counteract the positive effects of diversity on firm TFP, coming from creativity and knowledge spillovers. However, we find that ethnic diversity is valuable for firms operating in industries characterized by above-average trade...

  11. The Relationship between Offshoring Strategies and Firm Performance: Impact of innovation, absorptive capacity and firm size

    NARCIS (Netherlands)

    M.W. Roza-van Vuren (Marja)

    2011-01-01

    textabstractHow do offshoring strategies impact firm performance? And how are innovation, absorptive capacity and firm size influencing this relationship? This research investigates how firms of varying size, well-established firms and growing firms may profit from relocating business activities to

  12. The Relationship between Offshoring Strategies and Firm Performance: Impact of innovation, absorptive capacity and firm size

    NARCIS (Netherlands)

    M.W. Roza-van Vuren (Marja)

    2011-01-01

    textabstractHow do offshoring strategies impact firm performance? And how are innovation, absorptive capacity and firm size influencing this relationship? This research investigates how firms of varying size, well-established firms and growing firms may profit from relocating business activities to

  13. Firm Performance-A Social Networks Perspective

    Directory of Open Access Journals (Sweden)

    Jane Tung

    2012-01-01

    Full Text Available Problem statement: The study aims to offer a discussion on social networks and their effect on firm performance and also to illustrate the ways by which the firms utilize social capital through networks. Approach: The literature review and arguments were conducted to provide a systematic discussion of social networks and their effects. Results: The study had provided with a detailed understanding of the strategies that had been found to be highly significant in successful organizational performance. The results of this discussion suggested that social networks affect firm performance in a positive manner and can contribute to sustainable competitive advantage. Conclusion: It confirms that building up of social networks for big and small firms provides valuable links and solves numerous issues which auger well for the companies and should be treated with great importance.

  14. Structure, Employment and Performance in Biotech Firms

    DEFF Research Database (Denmark)

    Valentin, Finn; Dahlgren, Johan Henrich; Lund Jensen, Rasmus

    2006-01-01

    as early adopters of biotech, but only parts of their activities relate to modern biotechnology. From the outside it is difficult to isolate what share of their employment is attributable to their activities within biotechnology.In pursuit of clarity on the role of biotechnology this report studies...... economy to perform in the transition towards knowledge and sciencebased competitiveness. That is so because DDFs to an unusual extent depend on the ability of their framework to perform as an innovation system, by which we refer to advantages growing out of interactions and complementarities between e.......g. universities, firms and venture capital. That makes DDFs a sensitive "seismograph" for the ability of the Danish innovation system to foster new science-based technologies.Key words: Employment, Biotechnology, Firm size distribution, Industry structure,Firm performanceJEL Codes: J21, L11, L22, L25, L65, O57...

  15. Performance Evaluations in Audit Firms

    DEFF Research Database (Denmark)

    Riise Johansen, Thomas; Christoffersen, Jeppe

    2017-01-01

    Previous research has only minimally examined the association between the behaviour and performance evaluations of individual auditors beyond the use of efficiency-focused evaluations. We examine the association between dysfunctional auditor behaviour and three evaluation foci: an efficiency focu...

  16. Global Sourcing of Heterogeneous Firms: Theory and Evidence

    DEFF Research Database (Denmark)

    Kohler, Wilhelm; Smolka, Marcel

    2015-01-01

    The share of international trade within firm boundaries varies greatly across countries. This column presents new evidence on how the productivity of a firm affects the choice between vertical integration and outsourcing, as well as between foreign and domestic sourcing. The productivity effects...... found in Spanish firm-level data suggest that contractual imperfections distort the sourcing of inputs in the global economy, and that firm boundaries emerge in response to mitigate this distortion....

  17. Global Sourcing of Heterogeneous Firms: Theory and Evidence

    DEFF Research Database (Denmark)

    Kohler, Wilhelm; Smolka, Marcel

    2015-01-01

    The share of international trade within firm boundaries varies greatly across countries. This column presents new evidence on how the productivity of a firm affects the choice between vertical integration and outsourcing, as well as between foreign and domestic sourcing. The productivity effects...... found in Spanish firm-level data suggest that contractual imperfections distort the sourcing of inputs in the global economy, and that firm boundaries emerge in response to mitigate this distortion....

  18. Strategic Planning and Firm Performance

    DEFF Research Database (Denmark)

    2008-01-01

    Dette kapitel undersøger relationen mellem strategisk planlægning og organisatorisk struktur og dennes betydning for performance. Kapitlet bidrager med en empirisk analyse med modereret regression i en undersøgelse af 250 danske virksomheder....

  19. The Entrepreneur's Network and Firm Performance

    Directory of Open Access Journals (Sweden)

    Victor Nee

    2017-10-01

    Full Text Available Diverse organizational forms coexist in China's market economy, adapting and evolving in intensely competitive production markets. We examine the networks of founding chief executive officers of private manufacturing firms in seven cities of the Yangzi River Delta region in China. Through sequence analysis of ties that entrepreneurs relied on for help in the founding and critical events of their businesses, we identify three discrete forms of network governance: traditional kin-based, hybrid nonkin, and rational capitalist. We find that in traditional kin-based network governance, structural holes are linked to higher returns on assets and returns on equity. By contrast, in the rational capitalist form, structural holes and higher firm performance are not linked. We thus show that the content of the tie matters critically in the relationship between structural holes and firm performance.

  20. Impact of Directors’ Remuneration on Financial Performance of a Firm

    Directory of Open Access Journals (Sweden)

    Sania Khalid

    2014-02-01

    Full Text Available This paper examines the possible association between financial performance of the firm and remuneration of its key management. It is also one of the very few examples, which attempts to test the pay-for-performance theory of agency conflict resolution in context of developing market(Pakistan. The present study examines the performance of firms in terms of profitability and its association with management remuneration for 70 Pakistani corporate firms listed in Karachi stock exchange for the period of 2007 to 2011 and attempts to explain the observed behaviour with the help of fixed effect model. The results consistently support the potential association between firm’s financial performance and management remuneration policy although the intensity of relationship differs across different measures of performance. We find evidence in support of the hypothesis that a positive association exists between remuneration and performance in terms of resource utilization and shareholder wealth.

  1. Exploring the Relationships Between Just-In-Time Technique and Manufacturing Performance: Empirical Evidence From Selected Nigerian Firms

    Directory of Open Access Journals (Sweden)

    Ph. D. John Kolade Obamiro

    2009-12-01

    Full Text Available This study explores the relationship between just-in-time technique and manufacturing performance of some selected Nigerian companies. Just-in time was considered to be an overall organisational phenomenon. Data were obtained through a structured questionnaire from a sample size of 300 knowledgeable employees to test the developed model and formulated hypotheses that cover both just-intime and the supporting infrastructures. Bivariate correlation analysis was used to test the three hypotheses. The results showed that: (1 there was a significant relationship between total quality management (supporting infrastructure and just-in-time practices; (2 Human resources management (supporting infrastructure was positively related to just-in-time practices; (3 there was a positive significant relationship between Just-in-time practices and manufacturing performance. These results demonstrate that justin- time practices can be successfully implemented if certain supporting infrastructures are provided, and also support the notion that just-in-time should be practiced at all levels and departments of the organisation, rather than viewing it strictly for shop floor workers.

  2. Corporate liquidity and firm value: evidence from China’s listed firms

    Directory of Open Access Journals (Sweden)

    Du Jinmin

    2016-01-01

    Full Text Available The value of liquidity is a promising area for research. This paper analyzes the correlation be-tween corporate liquidity and firm value by using evidence from China’s listed firms. This paper also investigates the relation among corporate liquidity, R&D and firm size. The authors find that firm’s sufficient liquidity can increase its market value. However, corporate liquidity has insignificant effect on firm’s R&D. What’s more, the authors further find that corporate liquidity also has diseconomies of scale. Excess corporate liquidity may ad-versely affect market value of large firms.

  3. Corporate Governance and Firm Value: Empirical Evidence in Malaysia

    OpenAIRE

    Tan, Mabel Yunn Ru

    2009-01-01

    Well governed firms have been noted to have higher firm performance. However, this is still an empirical question in the context of Malaysia. This paper aims to examine the effect of corporate governance practices on firm value among 151 public listed companies on Bursa Malaysia Main Board between 2006 and 2008. We use the overall governance practice scores (CGS) to measure the level of compliance carried out by the sample firms. The results find that better corporate governance is highly cor...

  4. Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

    OpenAIRE

    Chin Sok Fun; Tang Kin Boon; Che Ahmad Ayoib

    2017-01-01

    Do financial restatements dampen firm performance? One argument about this is that restatements hurt investor confidence in the credibility of a firm’s disclosure, resulting in a decline in demand for the firm’s securities, thereby, leading to a significant drop in asset price. On the other hand, agency theory suggests that family ownership could have potential benefits to a firm’s performance. An increase in family ownership will have a greater concern for reputation to the controlling famil...

  5. A FINANCIAL PERFORMANCE COMPARISON OF GROUP AND NON-GROUP FIRMS IN TEXTILE SECTOR OF PAKISTAN

    Directory of Open Access Journals (Sweden)

    Ishtiaq AHMAD

    2016-12-01

    Full Text Available Pakistan is a developing economy and business groups are key players of the Pakistan’s economy. Previous research evidence shows that in the emerging economies group affiliation creates value for the firms. This study is intended to empirically investigate to know that whether group affiliated (GA firms perform financially better than non-group affiliated firms or not? GA firms in emerging economies can have better financial performance by sharing tangible and intangible resources at group level. The financial ratio is used to compare performance of affiliated and non-group affiliated firms by using the data of 70 textile firms listed at Karachi Stock Exchange(now Pakistan Stock Exchange covering a period from 2008 to 2012. Based on mean values of return on assets (ROA, results of the study show that GA firms have higher financial performance than non-group affiliated firms in each year and over all five years.

  6. Corporate governance and firm value: Evidence from Chinese state-controlled listed firms

    Institute of Scientific and Technical Information of China (English)

    Noel; W.Leung; Mei-Ai; Cheng

    2013-01-01

    The association between corporate governance and firm value has been extensively studied in Chinese listed firms. Based on the characteristics of their ultimate shareholders, Chinese listed firms can be categorised as(1) central statecontrolled,(2) local state-controlled or(3) non-state-controlled. Some scholars have described Chinese government policy as ‘zhuada fangxiao’, thus suggesting that the corporate governance mechanisms(CGMs) of central state-controlled listed firms(SCLFs) are better than those of local state-controlled listed firms. Therefore, this paper specifically examines the influence of CGMs on the value of central SCLFs and local SCLFs. Analysis of 2006 firm-year observations from 2007 to 2009 suggests that the aggregate ownership of other large shareholders and the remuneration of top executives exhibit different effects on firm value in central and local SCLFs. The results also provide evidence that there is no endogenous effect of firm value on the ownership of the largest shareholder in central and local SCLFs.

  7. Performance Expectations of Small Firms Considering Radical Product Innovation

    NARCIS (Netherlands)

    Verhees, F.J.H.M.; Meulenberg, M.T.G.; Pennings, J.M.E.

    2010-01-01

    Performance expectations influence business decisions such as investment decisions, and demand for supplies, particularly in small firms with limited strategic planning. Despite widespread use of performance expectations by firms and governments when making sales forecasts and economic outlooks,

  8. Performance Expectations of Small Firms Considering Radical Product Innovation

    NARCIS (Netherlands)

    Verhees, F.J.H.M.; Meulenberg, M.T.G.; Pennings, J.M.E.

    2010-01-01

    Performance expectations influence business decisions such as investment decisions, and demand for supplies, particularly in small firms with limited strategic planning. Despite widespread use of performance expectations by firms and governments when making sales forecasts and economic outlooks, sur

  9. High Performance Work Systems and Firm Performance.

    Science.gov (United States)

    Kling, Jeffrey

    1995-01-01

    A review of 17 studies of high-performance work systems concludes that benefits of employee involvement, skill training, and other high-performance work practices tend to be greater when new methods are adopted as part of a consistent whole. (Author)

  10. IT Capability as Moderator Between IT Investment and Firm Performance

    Institute of Scientific and Technical Information of China (English)

    LIU Yongmei; LU Hongjian; HU Junhua

    2008-01-01

    Conflicting results from previous research relating information technology (IT) investments and firm performance suggest that there is no direct relationship between IT investments and firm performance. The resource-based view (RBV) of the firm is introduced as a research tool to examine how IT resources and capabilities affect firm performance. A theoretical rationale model is then used to investigate the relationship between IT investment and firm performance. The IT capability is assumed to be an important moderator variable rather than a mediator variable linking IT investments to firm performance, while the time period, the firm size, and the industry type, all recognized as factors influencing performance, are treated as control variables. The model and hypotheses are verified by sample data from leading IT firms in China. The data confirms the moderating effect of the IT capability.

  11. The causal effect of board size in the performance of small and medium-sized firms

    DEFF Research Database (Denmark)

    Bennedsen, Morten; Kongsted, Hans Christian; Meisner Nielsen, Kasper

    2008-01-01

    correlation between family size and board size and show this correlation to be driven by firms where the CEO's relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having......Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak...... identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive...

  12. Fashion Brand Purity and Firm Performance

    Directory of Open Access Journals (Sweden)

    Jin-hui Zheng

    2013-01-01

    Full Text Available A large number of prior empirical research and case studies used qualitative methodology to discuss the fashion brand dilution resulting from consumer base extension from the target group(s to the nontarget groups and its impacts. From a different perspective, this paper establishes a dynamic brand dilution and performance model, demonstrating how dynamic changes of sales volumes involving the two consumer groups affect the degree of brand dilution and the performance of the brand. We incorporate the factor “brand purity” to the model as a quantitative measure of brand dilution level that affects firm annual revenue and profit change comprehensively in iteration. Our model suggests that fashion brands, especially luxury brands, can be easily diluted under the pressure of firm growth, and the brands suffer the significant negative impact on their revenues and profit. While increasing sales volume can aggravate the negative consequences, brand purity can be increased through limiting the consumer base to the target group only.

  13. Business factors related to manufacturing firms' performance

    Directory of Open Access Journals (Sweden)

    Stergios Vranakis

    2014-01-01

    Full Text Available Purpose: The main goal is to understand the way many factors affect the investment decision making process and business performance. Design/methodology/approach: This study proposes a new conceptual framework for examining the reasons that manufacturing firms decide to invest on the acquisition of new machinery and equipment in order to improve their infrastructure. It incorporates various factors related to the internal business environment (quality management, investment decisions etc. Findings and Originality/value: A new conceptual framework, establishing the relations between many factors, has been developed, allowing the determinants of adoption of many implications to be discussed and to relate them to the peculiarities of the Greek manufacturing industry. Originality/value: This study presents an overview of the impact of machinery and equipment investment on firm’s performance, giving grasp for further research of the inter-organizational relationships that exist between them. 

  14. The impact of workplace conditions on firm performance

    DEFF Research Database (Denmark)

    Buhai, Ioan Sebastian; Cottini, Elena; Westergård-Nielsen, Niels Chr.

    This paper estimates the impact of work environment health and safety practice on firm performance, and examines which firm-characteristic factors are associated with good work conditions. We use Danish longitudinal register matched employer-employee data, merged with firm business accounts and d...

  15. Does Innovation Mediate Good Firm Performance?

    OpenAIRE

    Llanto, Gilberto M.; del Prado, Fatima

    2015-01-01

    Private firms invest in physical capital and human resource but they are also advised to invest in innovations to be more productive and profitable. Innovations refer to the development, deployment, and economic utilization of new products, processes, and services. It is important for firms to know whether investment in innovations is investment well-spent. Our empirical results provided an affirmative response to the question raised in this paper: "Does innovation mediate good firm performan...

  16. The Dispersion of Employees' Wage Increase and Firm Performance

    DEFF Research Database (Denmark)

    Grund, Christian; Westergård-Nielsen, Niels Chr.

    2008-01-01

    Previous studies examining intra-firm wage dispersion and firm performance have focused on wage levels. The authors of this study argue that for purposes of comparing wage dispersion's positive incentive effects with its adverse morale effects, the dispersion of wage increases is more revealing t...... that the dispersion of wage growth within firms generally had a negative association with firm performance. The results are robust across industries and categories of firm size, but are mainly driven by white-collar rather than blue-collar workers....

  17. New workplace practices and firm performance:

    DEFF Research Database (Denmark)

    Cristini, Annalisa; Pozzoli, Dario

    that the adoption of innovation practices has spread substantially more across the British manufacturing firms than across the Italian ones; however our results also indicate that the practices' association with the firms' VA is much lower in Britain than in Italy. The counterfactual analysis shows that had...

  18. Psychic Distance, Innovation, and Firm Performance

    NARCIS (Netherlands)

    Azar, Goudarz; Drogendijk, Rian

    2014-01-01

    Previous research suggests that internationalization improves a firm's ability to innovate, but the effect of internationalizing into specific target markets or destinations on the innovation ability of firms has not been fully investigated. This study examined whether the psychic distance between t

  19. Strategic Resources and Family Firm Performance

    NARCIS (Netherlands)

    Matser, I.A.

    2013-01-01

    Most companies in the Netherlands can be labeled as family firms (according to the GEEF definition (Mandle, 2008; Flören et al., 2010). The family firm can be regarded as an open system model comprising three overlapping, interacting, and interdependent subsystems: owners, family, and managers (Moor

  20. Choice of Ownership Structure and Firm Performance

    DEFF Research Database (Denmark)

    Jones, Derek C; Kalmi, Panu; Mygind, Niels

    2003-01-01

    In this paper we use rich panel data for a representative sample of Estonian enterprises to analysediverse issues related to the determinants of ownership structures and ownership changes afterprivatisation. A key focus is to determine whether ownership changes are related to economicefficiency....... While employee owned firms are found to be much more prone than other firms toswitch ownership categories, often `employee owned' firms remain `insider-owned' as ownershippasses from current employees to managers and former employees. Logit analyses of thedeterminants of ownership structures...... and ownership changes provides mixed support for severalhypotheses. As predicted: (i) wealth and resource constraints play a crucial role in thedetermination of ownership, with foreigners buying firms with the highest equity levels andinsiders buying firms with the lowest equity valuations; (ii) risk aversion...

  1. Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

    Directory of Open Access Journals (Sweden)

    Esra Memili

    2015-07-01

    Full Text Available This study examines the moderation effects of corporate governance provisions on the link between family involvement (i.e., family ownership and family management in publicly-traded firms and firm performance by drawing upon agency theory, with a focus on principal-principal agency issues, and the extant family governance literature. We develop and test the hypotheses on 386 of the S&P 500 firms longitudinally. Findings support the hypotheses suggesting the moderation effects of the use of provisions (a protecting controlling owners in terms of their sustainability of controlling status, and (b protecting management legally on the inverted U-shaped relationship between family ownership and firm performance. We also found support for the moderation effects of provisions (c protecting controlling owners in terms of their voting rights, (d protecting noncontrolling owners, and (e protecting management monetarily on the inverted U-shaped relationship between family management and firm performance. By this, our study provides empirical support for the principal-principal agency perspective on the corporate governance in publicly-traded family firms. As such, it suggests new avenues of research for both the corporate governance literature, as well as for the theory of the family firm. Our study also offers insights to policy directed toward monitoring the actions of large shareholders such as family and enhancing the overall shareholder value in publicly-traded family firms.

  2. High Performance Work Systems, Performance and Innovativeness in Small Firms

    OpenAIRE

    Jan Kok; Deanne den Hartog

    2006-01-01

    The research presented in this paper focuses on the effectiveness of a high performance work system. This system is comprised of practices in the areas of extensiveness of staffing, performance based pay, pay level, job rotation, training and participation. In particular, this study focuses on the effects of such a system on the performance of small and medium-sized enterprises. Results of our study, among small and medium size enterprises in the Netherlands, show that firms with such a syste...

  3. Impact of Customer Retention Practices on Firm Performance

    OpenAIRE

    K. Gengeswari; P. Padmashantini; S.A. Sharmeela-Banu

    2013-01-01

    Customer retention has become the buzzword among both practitioners and academics due to its significant impact towards the improvement in firm performance. Though firm performance is normally evaluated using financial measures, this paper has utilized non-financial measure i.e. customer satisfaction. This is due to the appropriateness of its application to measure performance of service-oriented (retail) firms. This study was conducted using mall-intercept surveys at AEON Perak, Malaysia whe...

  4. Structure, Employment and Performance in Biotech Firms

    OpenAIRE

    Lund Jensen, Rasmus; Dahlgren, Henrich; Valentin, Finn

    2007-01-01

    This report studies employment effects associated with the adoption of modern biotechnology in Danish industry. In this context we also examine industry structure, patterns of job creation, key outputs such as patents and the pipeline of projects in clinical trials. To see the development of Danish biotech firms in a relevant context we compare a Danish segment of biotech firms with a matching Swedish segment. From an overall assessment modern biotechnology, despite the three decades elap...

  5. Firm-specific factors and financial performance of firms in the Czech Republic

    Directory of Open Access Journals (Sweden)

    Pathirawasam Chandrapala

    2013-01-01

    Full Text Available The objective of this study is to investigate the role of internal factors in generating financial performance of firms in the Czech Republic. The paper examines the impact of firm specific factors on company financial performance of 974 firms in the Czech Republic over the period 2005 to 2008, using data in the Albertina database. Pooled and panel cross-sectional time series techniques are used for the data analysis. Return on Assets (ROA is the dependent variable of the model and eight firm specific factors are introduced as the explanatory variables. Using Return on Assets as the dependent variable, it is established that the firm size, sales growth and capital turnover are having significant positive impact on financial performance of firms. At the same time, debt ratio and inventory reflect significant negative impact on financial performance of firms. Overall explanatory powers of the two models are low and further research is necessary to increase the statistical power of the model. The results from the present study may be very encouraging and useful for managers as well as investors to plan investment and operational activities to achieve profitability objectives more efficiently and effectively. The findings have important managerial implications.

  6. Financial centers and firm performance during the crisis period

    DEFF Research Database (Denmark)

    Farooq, Omar; El Ouadrhiri, Khadija

    2014-01-01

    firms. Our arguments claim that better information environment of firms headquartered in the financial centers helps in maintaining investors’ confidence during uncertain times. We also show that controlling for other corporate governance mechanisms (analyst following, ownership concentration, auditors......How does location of a firm’s headquarter impact its performance during the crisis period? This paper answers this question by using the data from India. Our results show that firms headquartered in Mumbai, the main financial center of the country, significantly outperform other firms during...... the recent global financial crisis. We argue that firms headquartered in the financial center have better information environment than other firms. One of the channels via which improvement in information environment takes place is the clustering of firms in the financial center. We believe that, for any...

  7. Top management team and board attributes and firm performance in the Netherlands

    NARCIS (Netherlands)

    Postma, T.J.B.M.; van Ees, H.; Garretsen, Harry

    1999-01-01

    We survey the evidence on the relationship between board and top management teamattributes and firm performance in the Netherlands (sample of 94 listed firms). To this aim we develop hypotheses by using sources from the strategic management and the corporate governance literature. Dutch corporations

  8. Top management team and board attributes and firm performance in the Netherlands

    NARCIS (Netherlands)

    Postma, T.J.B.M.; van Ees, H.; Garretsen, Harry

    1999-01-01

    We survey the evidence on the relationship between board and top management teamattributes and firm performance in the Netherlands (sample of 94 listed firms). To this aim we develop hypotheses by using sources from the strategic management and the corporate governance literature. Dutch corporations

  9. Age structure of the workforce and firm performance

    DEFF Research Database (Denmark)

    Westergård-Nielsen, Niels Chr.; Grund, Christian

    2008-01-01

    Purpose - Given the ongoing demographic change in European countries, this paper aims to exploreempirically the link between age structures of employees in firms and firm performance. Design/methodology/approach - Based on theoretical considerations, the paper examines the linkbetween both...... structures and firm performance for a whole country. The paper gives insights for both academic scholars and practitioners, who may take the results into account in formulating an efficient personnel policy....

  10. The effects of innovation on firm performance of supporting industries in Hanoi, Vietnam

    Energy Technology Data Exchange (ETDEWEB)

    Tuan, N.; Nhan, N.; Giang, P.; Ngoc, N.

    2016-07-01

    order to improve the innovative and firm performance, those firms in supporting industry should highly concentrate on process, marketing, and organizational innovation activities, rather than product innovation activities. Initially, this study applies successfully the model which supposing innovation is a process, then clarifying innovation definition through the impact of innovation activities on innovative performances. Secondly, this research confirmed the positive impact of innovative performances on firm performances. It provided one more empirical evidence of the relationship between innovation and firm performance. For practitioners, organizational innovation and process innovation are more important factors affecting innovative performance and firm performance than product and marketing innovation. Therefore, enterprises should focus and mobilize resources to create improvement in organizational structure and manufacturing processes. (Author)

  11. The effects of innovation on firm performance of supporting industries in Hanoi, Vietnam

    Directory of Open Access Journals (Sweden)

    Nham Tuan

    2016-04-01

    better level of firm performances is likely to be. To sum up, in order to improve the innovative and firm performance, those firms in supporting industry should highly concentrate on process, marketing, and organizational innovation activities, rather than product innovation activities. Originality/value: Initially, this study applies successfully the model which supposing innovation is a process, then clarifying innovation definition through the impact of innovation activities on innovative performances. Secondly, this research confirmed the positive impact of innovative performances on firm performances. It provided one more empirical evidence of the relationship between innovation and firm performance. For practitioners, organizational innovation and process innovation are more important factors affecting innovative performance and firm performance than product and marketing innovation. Therefore, enterprises should focus and mobilize resources to create improvement in organizational structure and manufacturing processes.

  12. True Versus Spurious State Dependence in Firm Performance

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Kongsted, Hans Christian

    determinants. Our results, which are consistent with the findings of previous studies on firms in developing countries and in the United States, show the presence of important sunk costs in export market entry and a depreciation of knowledge and experience in export markets...... to critical assumptions on firms' initial export status. We find robust evidence of state dependence in the current export status of firms. We also document an important role of unobserved permanent firm heterogeneity ("spurious state dependence") and quantify the relative importance of different export...

  13. Which resources matter the most to firm performance? An experimental study on Malaysian listed firms

    Directory of Open Access Journals (Sweden)

    Omar Masood

    2017-06-01

    Full Text Available This study investigates the impact of various resources, specifically both tangible and intangible ones, together with capabilities of Malaysian listed firms, on their performance. This empirical study attempts to enrich the understanding of the resources-performance relationship, which is one of a business process within the firm, as well as filling the gaps in present knowledge. Firms, which are not able to develop and sustain their performance, are associated with the vulnerability and adverse performance result, especially during various periods of economic crisis (three sub-periods of major shocks, i.e., The Volcker Shock (Commodities Shock of early 1980s, Asian Financial Crisis of the late 1990s, and the Global Financial Meltdown of 2008. Hence, this research intends to explore which resources matter the most to firm profitability and its success. Drawing upon the combination of Donabedian’s structure process outcome and resource-based theories of the firm a conceptual framework is developed. Data for the study were collected from a sample of 250 publicly traded companies listed on Bursa Malaysia (MYX. In order to achieve the objective and response to the study question, partial least square and regression analysis are applied. Findings indicate that tangible resources have no impact, while intangible resources have positive and significant impact on firm performance. In addition, results show that efficient allocation of intangible resources is crucial to achieving good performance.

  14. Human Resource Management and Performance in European Firms

    NARCIS (Netherlands)

    Rizov, M.I.; Croucher, R.

    2009-01-01

    We develop a theoretical framework to examine three hypotheses on the relationship between HRM practices and organisational performance in European firms. The first is that collaborative forms of HRM practice are more strongly associated with superior firm performance than calculative forms. The

  15. Organizational structure and performance in dutch small firms

    NARCIS (Netherlands)

    Meijaard, J; Brand, MJ; Mosselman, M

    The relationship between organizational structure and performance in small. firms has received relatively limited attention over the last few decades. In understanding small. firm performance this seems to be a serious omission. In this paper, we first present the rationale for including

  16. Organizational structure and performance in dutch small firms

    NARCIS (Netherlands)

    Meijaard, J; Brand, MJ; Mosselman, M

    2005-01-01

    The relationship between organizational structure and performance in small. firms has received relatively limited attention over the last few decades. In understanding small. firm performance this seems to be a serious omission. In this paper, we first present the rationale for including organizatio

  17. Firm performance, financial institutions and corporate governance in the Netherlands

    NARCIS (Netherlands)

    Chirinko, Bob

    1999-01-01

    This paper analyses the impact of share ownership, creditorship and net-working by financial institutions on the performance of 94 Dutch non-financial firms in the period 1992-1996. We find a nonlinear relationship between firm performance and ownership by banks. Because of various defense mechanism

  18. Firm performance, financial institutions and corporate governance in the Netherlands

    NARCIS (Netherlands)

    Chirinko, Bob

    1999-01-01

    This paper analyses the impact of share ownership, creditorship and net-working by financial institutions on the performance of 94 Dutch non-financial firms in the period 1992-1996. We find a nonlinear relationship between firm performance and ownership by banks. Because of various defense

  19. INITIAL PUBLIC OFFERING AND PERFORMANCE OF BRAZILIAN FIRMS

    Directory of Open Access Journals (Sweden)

    Teresa Rodriguez Cao

    2016-07-01

    Full Text Available This paper investigates changes in long-term operational and financial performance for a sample of Brazilian companies made initial public offerings (IPO's shares, in the period 2002-2008. This period showed a historically high number of IPOs, a heavily discontinued phenomenon with the international financial crisis of 2008. As performance measures were chosen six financial indicators usually adopted in the literature in periods of three years pre-IPO, year of listing and three years post-IPO. The indicators evaluated were size, growth rate, profitability, financial leverage, investment level and investment rate. The results show evidence that, on average, there were statistically significant improvements in size, profitability, investment level and investment rate. But there was no evidence statistically significant changes in the growth rate and financial leverage after the IPO of Brazilian firms.

  20. Alliance Performance of Dutch Biotech Firms

    NARCIS (Netherlands)

    Garbade, P.; Fortuin, F.T.J.M.; Omta, S.W.F.

    2011-01-01

    In the biotechnology sector small R&D intensive firms play a fundamental role to keep innovation rates high. With less bureaucratic burdens, low level of hierarchy and high internal flexibility they are able to move fast and to make most efficient use of unique competences. Still their shortage

  1. Examining The Relationship Between Diversity And Firm Performance

    Directory of Open Access Journals (Sweden)

    Byron J. Hollowell

    2011-07-01

    Full Text Available There is a heated debate taking place in the between those who think firms should be more diverse because it is the right thing to do and those who think firms should be more diverse because it actually enhances shareholder value. This study establishes a solid business case for managing diversity as a bottom line initiative.  I find a positive and significant relationship between firm diversity and long-term firm performance.  These findings forecast an increase in the employment opportunities for educators, students and recent graduates from diverse backgrounds.

  2. Corporate Diversification and Firm Performance: an Empirical Study

    Directory of Open Access Journals (Sweden)

    Olu Ojo

    2009-05-01

    Full Text Available The importance of diversification and performance in then strategic management literature is widely accepted among academics and practitioners . However, the proxies for performance and diversification that have been employed in past strategy research has not been unanimously agreed upon. Given the current state of confusion that exists with regard to the impact of corporate diversification on firm performance in selected Nigerian companies. The reason for increased interest in diversification has always been on the possibility that diversification is related to corporate performance. However , while this topic is rich in studies, empirical evidence semerging from various studies about the effect of diversification on performance have so far yield mixed results that are inconclusive and contradictory. In addition , despite the existence of these studies, very litlle attention has been given to the companies in developing countries including Nigeria. This means that there is a major gap in the relevant literature on developing countries which has to be covered by research. This research attempts to fill this gap by studying the situation of the Nigeria companies and providing more empirical evidence on the effects of corporate diversification on firm performance based on individual company-level data. Survey research design was adopted in this study with the application of simple random sampling tehnique in selecting our case study companies as well as our respondents. Primary data were collected through questionnaire. Data were analysed through descriptive statistics and correlation and coefficient of determination were used to test our hypothese. It was discovered that diversification impacted performance of these companies posivitely and we recommend that these companies should engage in geographical diversification in addition to other forms of diversification they are currently involved in for maximum performance.

  3. Age structure of the workforce and firm performance

    DEFF Research Database (Denmark)

    Westergård-Nielsen, Niels Chr.; Grund, Christian

    2008-01-01

    Purpose - Given the ongoing demographic change in European countries, this paper aims to exploreempirically the link between age structures of employees in firms and firm performance. Design/methodology/approach - Based on theoretical considerations, the paper examines the linkbetween both the av...... structures and firm performance for a whole country. The paper gives insights for both academic scholars and practitioners, who may take the results into account in formulating an efficient personnel policy.......Purpose - Given the ongoing demographic change in European countries, this paper aims to exploreempirically the link between age structures of employees in firms and firm performance. Design/methodology/approach - Based on theoretical considerations, the paper examines the linkbetween both...

  4. New workplace practices and firm performance in manufacturing:

    DEFF Research Database (Denmark)

    Pozzoli, Dario; Cristini, Annalisa

    Using data from the 2004 Workplace Employee Relations Survey on British establishments and two surveys on manufacturing firms located in the North of Italy, we look at the diffusion of new workplace practices in the two countries and at their impact on the firm's performance. We find that the Ita...

  5. Human Resource Practices and Firm Performance in Chinese Enterprises

    Institute of Scientific and Technical Information of China (English)

    2002-01-01

    This study uses data from 201 Chinese firms to test two competing theories concerning human resource practices and firm performance. "Best practice theory" is supported for many of the human resource practices examined in the study. Contingency theory is generally not supported for three contingencies: business strategy, ownership and industry.

  6. An inquiry on dimensions of external technology search and their influence on technological innovations: evidence from Chinese firms

    DEFF Research Database (Denmark)

    Li-Ying, Jason; Wang, Yuandi; Salomo, Søren

    2014-01-01

    during the period 2000–2009. Our findings reveal that Chinese firms' technological innovation performances are related to external technology search in quite different ways from the ones suggested in the extant literature using evidence from developed countries. We find that Chinese firms searching......A central part of technological innovation for industrial firms involves search for new external knowledge. A well‐established stream of literature on firms' external knowledge search has demonstrated that firms investing in broader search may have a great ability to innovate. In this paper, we...... explore the influences of technology search on firms' technological innovation performance along three distinctive dimensions: technical, geographic, and temporal dimensions, using a unique panel data set containing information on Chinese firms that were active in technology in‐licensing and patenting...

  7. Temporary Expats for Export: Firm-Level Evidence

    OpenAIRE

    Graneli, Anna; Lodefalk, Magnus

    2014-01-01

    We analyze the relation between temporary expats in firms and exports. Temporary expats are positively associated with exports. The within-firmdestination- country link with export intensity is substantially larger for services than for merchandise and for exports of heterogeneous services and merchandise than for exports of homogeneous products. Additionally, the association with exports is stronger for temporary than for permanent expats. Furthermore, our evidence suggests that temporary ex...

  8. Domestic Multinationals and Foreign-Owned Firms in Italy: Evidence from Quantile Regression

    Directory of Open Access Journals (Sweden)

    Grasseni, Mara

    2010-06-01

    Full Text Available This paper investigates the performance differences across and within foreign-owned firms and domestic multinationals in Italy. Used for the empirical analysis are non-parametric tests based on the concept of first order stochastic dominance and quantile regression technique. The firm-level analysis distinguishes between foreign-owned firms of different nationalities and domestic MNEs according to the location of their FDI, and it focuses not only on productivity but also on differences in average wages, capital intensity, and financial and non-financial indicators, namely ROS, ROI and debt leverage. Overall, the results provide evidence of remarkable heterogeneity across and within multinationals. In particular, it seems not possible to identify a clear foreign advantage at least in terms of productivity, because foreign-owned firms do not outperform domestic multinationals. Interesting results are obtained when focusing on ROS and ROI, where the profitability gaps change as one moves from the bottom to the top of the conditional distribution. Domestic multinationals investing only in developed countries present higher ROS and ROI compared with the subgroups of foreign-owned firms, but only at the lower quantiles, while at the upper quantiles the advantage seems to favour foreign firms. Finally, in regard to domestic multinationals, there is strong evidence that those active only in less developed countries persistently exhibit the worst performances

  9. Founder Control,Ownership Structure and Firm Value:Evidence from Entrepreneurial Listed Firms in China

    Institute of Scientific and Technical Information of China (English)

    Lijun Xia

    2008-01-01

    In emerging markets, the deviation between the ultimate controlling shareholders’ voting rights and their cash flow rights(hereafter "DVC") in the listed firms is quite prevalent. DVC could be introduced due to the ultimate controlling shareholders’ opportunistic incentives, as well as by their incentives to improve firm efficiency. This study uses 229 listed firms ultimately controlled by individuals or families(hereafter "entrepreneurial firms") for 2004 in China, to investigate the effect of DVC on firm value and to determine whether it is different between founder and non-founder controlled firms. We find that DVC has a positive effect on firm value for founder controlled firms. This result implies that investors believe that their interests are better protected by founder controlled firms than by non-founder controlled firms.

  10. Capital Structure and Firm Performance: An Analysis of Manufacturing Firms in Turkey

    Directory of Open Access Journals (Sweden)

    Abdulkadir Ali Tifow

    2015-11-01

    Full Text Available Capital structure is one of the most important issues for firms in order to achieve better financial and market performance. The main objective of this study is to examine the relationship between capital structure and firm performance. We investigate 130 manufacturing firms listed on Borsa Istanbul for the period of 2008-2013 using panel data analysis. We utilize short term debt to total asset (STDTA and long term debt to total asset (LTDTA as proxies of financial leverage (independent variables. Return on equity (ROE, return on asset (ROA, earnings per share (EPS and Tobin’s Q ratio were used as proxies of firm performance (dependent variables. Sales growth rate and firm size were used as control variables in the study. We find that STDA has a significant negative relationship with ROA, EPS and Tobin’s Q ratio. Besides, we find that LTDTA has a significant negative relationship with ROE, EPS and Tobin’s Q ratio, while it is positively and significantly correlated with ROA.

  11. Top Management Team Nationality Diversity and Firm Performance

    DEFF Research Database (Denmark)

    Nielsen, Bo Bernhard; Nielsen, Sabina

    2013-01-01

    This research reexamines the equivocal relationship between top management team (TMT) diversity and firm performance. Combining upper echelons theory with insights from institutional theory, we establish a new, timely dimension of TMT diversity—nationality diversity—and develop an integrated...... multilevel framework explaining how its performance implications vary across contextual settings. We find that nationality diversity is positively related to performance; and this effect is stronger in (a) longer tenured teams, (b) highly internationalized firms, and (c) munificent environments. More...

  12. The Great Trade Collapse and the Spanish Export Miracle: Firm-level Evidence from the Crisis

    DEFF Research Database (Denmark)

    Eppinger, Peter S.; Meythaler, Nicole; Sindlinger, Marc-Manuel

    no adverse effects of the financial crisis on foreign market entry or exit, but a considerable increase in the export intensity of firms after the financial crisis. Moreover, we find that those firms that entered the crisis as exporters (and continued exporting throughout the crisis years) were more......We provide novel evidence on the micro-structure of international trade during the 2008 financial crisis and subsequent global recession exploring a rich firm-level data set from Spain. The analysis is motivated by the surprisingly strong export performance of Spain in the aftermath of the great...... resilient to the crisis than those firms that restricted their sales to the domestic market. Finally, in contrast to exporters, non-exporters experienced a significant deterioration in their total factor productivity, which led to an overall decline in the productivity of a significant number of industries...

  13. Dancing With the Stars: How Talent Shapes Firm Performance

    DEFF Research Database (Denmark)

    Eriksen, Bo

    In spite of the attention that attracting and retaining talent receives, little is known about effective talent management. What is the impact of talent on firm performance, among which employee types should firms build talent and do complementarities between employee talent and firm resources...... affect which talent management approach firms should follow? Our paper contributes with two insights using a rich panel of Danish matched employer-employee data. We identify a tradeoff between short term adjustment costs and longer term gains from increasing talent where initial gains appear of offset...... later benefits. We identify important complementarities between manager and worker talent, and between these and the firm’s capital resources and organizational design. These complementarities suggest that firms can create and appropriate rents from talent when their talent acquisition strategy is well...

  14. Dancing With the Stars: How Talent Shapes Firm Performance

    DEFF Research Database (Denmark)

    Eriksen, Bo

    In spite of the attention that attracting and retaining talent receives, little is known about effective talent management. What is the impact of talent on firm performance, among which employee types should firms build talent and do complementarities between employee talent and firm resources...... affect which talent management approach firms should follow? Our paper contributes with two insights using a rich panel of Danish matched employer-employee data. We identify a tradeoff between short term adjustment costs and longer term gains from increasing talent where initial gains appear of offset...... later benefits. We identify important complementarities between manager and worker talent, and between these and the firm’s capital resources and organizational design. These complementarities suggest that firms can create and appropriate rents from talent when their talent acquisition strategy is well...

  15. Dancing With the Stars: How Talent Shapes Firm Performance

    DEFF Research Database (Denmark)

    Eriksen, Bo

    later benefits. We identify important complementarities between manager and worker talent, and between these and the firm’s capital resources and organizational design. These complementarities suggest that firms can create and appropriate rents from talent when their talent acquisition strategy is well......In spite of the attention that attracting and retaining talent receives, little is known about effective talent management. What is the impact of talent on firm performance, among which employee types should firms build talent and do complementarities between employee talent and firm resources...... affect which talent management approach firms should follow? Our paper contributes with two insights using a rich panel of Danish matched employer-employee data. We identify a tradeoff between short term adjustment costs and longer term gains from increasing talent where initial gains appear of offset...

  16. The Effect Of Intangible Asset Financial Performance And Financial Policies On The Firm Value

    OpenAIRE

    Rindu Rika Gamayuni

    2015-01-01

    Abstract The purpose of this study is to test empirically the relationship between intangible assets financial policies and financial performance to the firm value at going-public company in Indonesia. Path analysis was used to ascertain the relationship between intangible assets financial policies financial performance and firm value at going-public company in Indonesia in the year 2007 to 2009. This study also provides empirical evidence that Intangible assets financial policies financial p...

  17. Firm-specific Factors, Shareholding Structure and Corporate Performance of the Japanese manufacturing Investments in Europe

    OpenAIRE

    MOURAD, MANSOUR; Yasuo, Hoshino; University of Tsukuba

    2000-01-01

    Direct investment by Japanese firms into European manufacturing industries increased substantially during the 1980s. What determines the performance of overseas operations of Multinational enterprises has been an important topic of research. This study aims at providing further evidence on the influence of entry mode and firm specific factors on the performance of Japanese-affiliated manufacturing investments in Europe, based on data for the period 1994-1997 compiled from Toyo Keizai Database...

  18. Founder Control, Ownership Structure and Firm Value: Evidence from Entrepreneurial Listed Firms in China

    Directory of Open Access Journals (Sweden)

    Lijun Xia

    2008-06-01

    Full Text Available In emerging markets, the deviation between the ultimate controlling shareholders' voting rights and their cash flow rights (hereafter “DVC” in the listed firms is quite prevalent. DVC could be introduced due to the ultimate controlling shareholders' opportunistic incentives, as well as by their incentives to improve firm efficiency. This study uses 229 listed firms ultimately controlled by individuals or families (hereafter “entrepreneurial firms” for 2004 in China, to investigate the effect of DVC on firm value and to determine whether it is different between founder and non-founder controlled firms. We find that DVC has a positive effect on firm value for founder controlled firms. This result implies that investors believe that their interests are better protected by founder controlled firms than by non-founder controlled firms.

  19. Organizational Wisdom and its Impact on Firm Innovation and Performance

    Directory of Open Access Journals (Sweden)

    Ali Ekber AKGÜN

    2015-11-01

    Full Text Available As a fascinating concept, the term organizational wisdom started to attract many researchers from a variety of disciplines. Nevertheless, how the organizational wisdom related practices, such as virtue and practicality, impact the firm innovativeness and financial performance is rarely argued in the literature. We argued that virtue and practicality practices positively impact the firm’s innovativeness with increasing level of environmental uncertainty. We also mentioned that firm innovativeness positively mediates the relationship between organizational wisdom and firm financial performance. Further, we argued the managerial and theoretical implications of the study.

  20. Intangible Assets and Superior and Sustained Performance of Innovative Brazilian Firms

    Directory of Open Access Journals (Sweden)

    Márcia Martins Mendes De Luca

    2014-10-01

    Full Text Available According to the Resource-Based View, the nature of the resources, competences and knowledge accumulated by firms are the major causes of variation in business performance. In view of the importance attributed to intangible assets, the purpose of the present study was to investigate whether innovative firms with superior and sustained performance and firms without superior and sustained performance differ with regard to investments in intangible assets. The sample consisted of 137 firms listed on the Brazilian stock exchange from 2007 to 2010 and belonging to innovative sectors according to the Brazilian Innovation Index. Only 51 firms with profitability above the sector average during the entire study period (four years met the criterion of superior and sustained performance. Thus, using return on assets as a proxy for performance, investments in intangibles were found to be greater in firms without superior and sustained performance, particularly with regard to the categories intellectual property assets (the predominant category and infrastructure assets. Based on the lack of evidence for a significant correlation between corporate performance and investment in intangible assets, our initial hypothesis that a positive relation exists between the composition of investments in intangible assets and the performance of innovative firms could not be confirmed.

  1. Effects of Network Capabilities on Firm Performance across Cultures

    Directory of Open Access Journals (Sweden)

    Papastamatelou Julie

    2016-03-01

    Full Text Available The purpose of this study is to identify key factors related to network capabilities that enhance the performance of Chinese, Turkish and German firms. Chinese (n = 107, Turkish (n = 129 and German (n = 109 MBA-students completed a questionnaire, based on an earlier version developed by Kenny [2009], which included questions on the respective firm, its performance and network capabilities. The predictors of firm performance varied by country: in China “information sharing” and “trust” were important, in Turkey “network coordination” and in Germany “human capital resources.” In addition, each country had its own specific drivers of firm performance. The findings of this paper should enhance understanding of the cross-cultural differences and assist managers when planning to join foreign corporations.

  2. Immigration and Firm Performance: a city-level approach

    Directory of Open Access Journals (Sweden)

    Mercedes Teruel Carrizosa

    2009-01-01

    Full Text Available This article analyses the effect of immigration flows on the growth and efficiency of manufacturing firms in Spanish cities. While most studies were focusing on the effect immigrants have on labour markets at an aggregate level, here, we argue that the impact of immigration on firm performance should not only be considered in terms of the labour market, but also in terms of how city's amenities can affect the performance of firms. Implementing a panel data methodology, we show that the immigrants' increasing pressure has a positive effect on labour productivity and wages and a negative effect on the job evolution of these manufacturing firms. In addition, both small and new firms are more sensitive to the pressures of immigrant inflow, while foreign market oriented firms report higher productivity levels and a less marked impact of immigration than their counterparts. We also present a set of instruments to control for endogeneity. It allows us to confirm the effect of local immigration flows on the performance of manufacturing firms.

  3. Credit Scoring Model for Calculating Firm Financial Performance

    OpenAIRE

    Dãnilã Alexandra; Horga Maria-Gabriela; Negrea Alexandru

    2014-01-01

    Currently, a fundamental role in firm activity lies in financial performance, given that competition for each market segment has become increasingly tight and mechanisms of globalization exclude the weakest ones. So the chance to survive in this competition increases considerably for those firms who quickly find and reduce their vulnerabilities and furthermore implement performance management tools that facilitate discovery, explanation and solutioning difficulties. Research presented in this...

  4. The Role of Corporate Governance in Firm Performance

    OpenAIRE

    Naimah Zahroh; Hamidah

    2017-01-01

    The objective of this study is to examine the role of corporate governance to increase firm performance. The measure of corporate governance are corporate governance mechanism and Corporate Governance Perception Index (CGPI). Samples are companies that followed CGPI award at 2005-2014. The examination of the relationship of corporate governance and firm performance is conducted by regression of corporate governance mechanism variables and control variables to profitability. Corporate governan...

  5. Ownership concentration, choice of auditors, and firm performance

    DEFF Research Database (Denmark)

    Farooq, Omar; El Kacemi, Youssef

    2011-01-01

    How does ownership concentration effect firm performance in emerging markets? On one hand, concentrated ownership leads to higher agency problems, and on the other hand, it minimizes agency problems by removing the free-rider problem. Using a large dataset of ownership concentration from the MENA...... region during the period between 2004 and 2008, we document that ownership concentration, as itself, may not have a significant impact on firm performance. It is, rather, the way concentrated firms govern themselves that determine their performance. We argue that concentrated ownership firms, being aware...... of the agency problems embedded in their ownership structure, appoint one of big-four auditors as their external auditor to signal the market that they are disclosing reliable information. Our results also show a significantly positive relationship between ownership concentration and the choice of auditor. We...

  6. LITERATURE REVIEW ON CORPORATE GOVERNANCE - FIRM PERFORMANCE RELATIONSHIP

    Directory of Open Access Journals (Sweden)

    Pintea Mirela-Oana

    2015-07-01

    Full Text Available In the matter of corporate governance reforms, an important aspect is whether the implementation of corporate governance principles and codes has a positive impact on firm performance. The literature testing the relationship between different corporate governance mechanisms and firm performance is extensive. Over time, a lot of corporate governances mechanisms were studied in relation to firm performance and the most used are: CEO duality, board size, proportion of non- executive directors, board committees, ownership structure and concentration, managers’ compensation and incentives schemes. With time, different authors began to use more comprehensive measures for corporate governance rather than a single variable or a single governance mechanism, the so called corporate governance indexes. Regarding performance there are three main approaches to firm performance in social science research: research based on market prices, accounting ratios and total factor profitability.The most used performance measures are: Tobin’s Q, return on equity, return on asset and economic value added. In our paper, we present the studies undertaken since the 1990’s regarding the relationship between different mechanisms of corporate governance and firm performance and between corporate governance index and performance for both developed and developing countries around the world. Regarding the working tools used in this theoretical research we can mention the longitudinal method, by presenting the evolution in time of empirical studies on the research topic and the comparative method used in presenting the resulys of different studies mentioned in our paper. The results of the studies are inconclusive, some studies founded a strog positive relation, others founded a negative correlation between corporate governance and firm performance, while a third category of studies didn’t found any relationship at all. We used participative observation method by issuing

  7. The Role of Corporate Governance in Firm Performance

    Directory of Open Access Journals (Sweden)

    Naimah Zahroh

    2017-01-01

    Full Text Available The objective of this study is to examine the role of corporate governance to increase firm performance. The measure of corporate governance are corporate governance mechanism and Corporate Governance Perception Index (CGPI. Samples are companies that followed CGPI award at 2005-2014. The examination of the relationship of corporate governance and firm performance is conducted by regression of corporate governance mechanism variables and control variables to profitability. Corporate governance mechanisms are board size, board independence, outside directors, audit committee size, audit committee meeting, audit quality, and CGPI. Control variables are leverage and firm size. The results of this study indicate that board independence negatively influence profitability, audit committee meeting positively influence profitability, audit quality positively influence profitability, CGPI positively influence profitability, leverage negatively influence profitability, and firm size negatively influence profitability.

  8. Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom

    Directory of Open Access Journals (Sweden)

    Zhiwei Lin

    2014-12-01

    Full Text Available Prior literature has claimed that accounting plays a negative role in a financial crisis. The current study sought to determine whether this effect is dependent on the quality of financial reporting. Specifically, this study examined the impact of the quality of financial reporting (as measured via earnings quality on liquidity (measured by the bid-ask spread in the equity market during the 2008–2009 global financial crisis in the United Kingdom. We found, as expected, that market liquidity was much lower during the crisis than prior to the crisis; however, firms with high-quality financial reporting suffered fewer negative effects as a result of the financial crisis. The results were robust after controlling for other influences, such as return volatility, loss making, market value of equity, and other potential endogeneity problems. In addition, adopting alternative models for earnings quality did not alter our inferences. Our results support the notion that high-quality accounting information can reduce information asymmetry and hence enhance investor confidence during a financial crisis. The results suggest that a stable financial reporting system is an important part of that overall economic fabric. Our findings will help build a framework on which an overall financial crisis risk-management strategy can be developed to avoid future crises.

  9. Hybrid competitive strategies, organizational structure, and firm performance

    OpenAIRE

    Pertusa Ortega, Eva María

    2008-01-01

    Comunicación presentada en SMS 28th Annual International Conference, Cologne, Germany, October 12-15, 2008. This paper analyzes the internal characteristics of organizational structure which have an influence on the development of hybrid competitive strategies and their link to firm performance. The study examines a sample of large Spanish firms belonging to different sectors by means of the Partial Least Squares (PLS) technique, using formative dimensions for competitive strategy and orga...

  10. Legal Corruption, Politically Connected Corporate Governance and Firm Performance

    OpenAIRE

    Domadenik, Polona; Prašnikar, Janez; Svejnar, Jan

    2014-01-01

    In this paper we present and test a theory of how political corruption, found in many transition and emerging market economies, affects corporate governance and productive efficiency of firms. Our model predicts that underdeveloped democratic institutions that do not punish political corruption result in political connectedness of firms that in turn has a negative effect on performance. We test this prediction on an almost complete population of Slovenian joint stock companies with 100 or mor...

  11. Debt and Taxes: Evidence from bank-financed unlisted firms

    DEFF Research Database (Denmark)

    Bartholdy, Jan; Mateus, Cesário

    This paper analyzes the capital structure decision of non-listed bank-financed firms using a rich and unique new data set of Portuguese firms. These firms are rarely studied in capital structure contexts and differ from large listed firms in terms of agency and asymmetric information problems...... it easier for small firms to exploit tax advantages of debt. The empirical analysis shows that debt tax shields and provisions for tax loss carry-forwards have an important impact on the capital structure of small firms. It is also found that the balance sheet variables used for large listed firms...

  12. Firm Performance and Comply or Explain Disclosure in Corporate Governance

    DEFF Research Database (Denmark)

    Rose, Caspar

    2016-01-01

    This study investigates the degree of Danish firm adherence to the Danish Code of Corporate Governance and analyzes if a higher degree of comply or explain disclosure is related to firm performance. This article formulates a methodology for quantifying the degree of comply or explain disclosure....... The analysis shows that there is a positive link between ROE/ROA and Danish firm total corporate governance comply or explain disclosure scores. Specifically, this is also the case when this level is increased within the following two categories: board composition and remuneration policy, whereas......'s many recommendations is relatively high. This article relates to the burgeoning literature that deals with listed firm compliance with national corporate governance codes and how compliance can be appropriately quantified. It is suggested that compliance is classified into the following four categories...

  13. The Influence of Employee Share Ownership Schemes on Firm Performance: the Case of Zimbabwean Firms

    Directory of Open Access Journals (Sweden)

    Maxwell Sandada

    2016-04-01

    Full Text Available The purpose of this study was to examine the influence of employee share ownership schemes on firm performance in the case of Zimbabwean companies. The study sought to provide valuable insights on the influence of this initiative on employee productivity and organisational performance in Zimbabwe. A cross sectional design was employed to collect data from Confederation of Zimbabwe Industry listed companies using simple random sampling. The study revealed that financial benefits from EOSs, employee participation, ECOS communication and percentage of shareholding have a significant positive relationship with firm performance. The study has important implications for the implementation and management of ESOs in the context of a development country such as Zimbabwe.

  14. Unpacking Firm Effects: Modeling Political Alliances in Variance Decomposition of Firm Performance in Turbulent Environments

    Directory of Open Access Journals (Sweden)

    Rodrigo Bandeira de Mello

    2005-01-01

    Full Text Available In this paper, firm heterogeneity in turbulent environments is addressed. It is argued that previous studies have not taken into account effects of a turbulent environment, like the Brazilian context, in which firms must face a weak and erratic government. In such an environment, the large portion of variance usually attributed to firm effects may be explained, not by the usual assumptions of mainstream scholars, but by a more ‘political’ view offirm differences, namely, the ability to manage valuable political alliances. To account for these differences, a multivariate performance measure was construed and a new factor, ‘politics effects’, has been introduced to the usual model. Company donations for campaign funds in elections was used as a proxy for this factor. A sample of 607 observations, of 177 firms in 15 sectors was used. Results suggest that the presence of politics effects were found to be not significant (using COV and Hierarchical ANOVA. However, different from previous studies, transient industry effects appear to be more important than stable effects. Findings also indicate that a better model specification for turbulent environments is needed and highlight the importance of the cost of capital.

  15. Impact of Customer Retention Practices on Firm Performance

    Directory of Open Access Journals (Sweden)

    K. Gengeswari

    2013-07-01

    Full Text Available Customer retention has become the buzzword among both practitioners and academics due to its significant impact towards the improvement in firm performance. Though firm performance is normally evaluated using financial measures, this paper has utilized non-financial measure i.e. customer satisfaction. This is due to the appropriateness of its application to measure performance of service-oriented (retail firms. This study was conducted using mall-intercept surveys at AEON Perak, Malaysia whereby, it collected 200 completed questionnaires. Hierarchical regression analysis was employed to examine the impact of customer retention towards firm performance alongside with the demographic profiles as the moderator. Four dimensions of customer retention namely word-of-mouth, price insensitivity, repeat purchase and non-complaining behavior as well as demographic profiles are found to significantly influence firm performance (customer satisfaction. Hence, it is recommended that practitioners should be more considerate towards enriching the said dimensions of customer retention in order to leverage its promising potential.

  16. Employee Ownership, Employee Attitudes, and Firm Performance

    OpenAIRE

    Douglas Kruse; Joseph Blasi

    1995-01-01

    Employee ownership in U.S. companies has grown substantially in the past 20 years. This paper reviews and provides some meta-analyses on the accumulated evidence concerning the prevalence, causes, and effects of employee ownership, covering 25 studies of employee attitudes and behaviors, and 27 studies of productivity and profitability (with both cross-sectional and pre/post comparisons). Attitudinal and behavioral studies tend to find higher employee commitment among employee-owners but mixe...

  17. The Link between Performance Appraisal and Firm Performance

    Directory of Open Access Journals (Sweden)

    Robert Ng’ang’a

    2013-09-01

    Full Text Available The purpose of the study was to investigate the linkage between Performance Appraisal (PA as a Human Resource Practice and the firm performance of the Kenyan state corporations. The study hypothesized that; there was a positive relationship between PA and OP and therefore the need to investigate the specific linkage between the two variables relate. The study adopted an Explanatory research design. The target population was 232 HRM from which a sample of 142 respondents was selected. The research tool was a questionnaire which constituted structured or closed ended items, unstructured or open ended items and likert items. A pilot study was conducted to help establish the reliability and validity of the research tool. Quantitative and qualitative data was generated was analyzed using SPSS. Qualitative data was operationalized by arranging the data according to emerging themes or patterns with assigned numbers to make them measurable. As far as quantitative data is concerned, Correlation coefficients will be calculated for initial exploration of the relationships between variables. This helped to measure the size and direction of the relationship between the independent and dependent variables. The findings established that there was a significant correlation between PA and Firm’s Performance and therefore recommended to the authorities of the Corporations studied to give main focus to PA function to enhance OP.

  18. Women on boards and firm performance

    NARCIS (Netherlands)

    Lückerath – Rovers, M.

    2013-01-01

    This study investigates the financial performance of Dutch companies both with and without women on their boards. The analysis extends earlier methods used in research by Catalyst (The bottom line: corporate performance and women’s representation on boards, 2007) and McKinsey (Women matter. Gender d

  19. Women on boards and firm performance

    NARCIS (Netherlands)

    M. Lückerath-Rovers (Mijntje)

    2013-01-01

    textabstractThis study investigates the financial performance of Dutch companies both with and without women on their boards. The analysis extends earlier methods used in research by Catalyst (The bottom line: corporate performance and women's representation on boards, 2007) and McKinsey (Women matt

  20. Organizational Culture and the Financial Performance of Manufacturing Firms

    Directory of Open Access Journals (Sweden)

    Mahrooz Koochaki Golafzani

    2016-06-01

    Full Text Available This paper intends to examine the relationship between organizational culture and the financial performance of manufacturing firms in the province of Guilan (Iran. To do so, a statistical sample with the size of 247 firms located at industrial towns/parks in Guilan was selected. The required data was collected through questionnaire. Then, the relationship between organization culture, including the clan culture, adhocracy culture, market culture and hierarchy culture, and the financial performance was analyzed according to the proposed model and by using Spearman’s rank correlation coefficient. The results show that there is a significant positive relationship between clan culture (correlation coefficient: 0/65, adhocracy culture (0/63, market culture (0/68 and hierarchy culture (0/59 and the financial performance of manufacturing firms.

  1. The Regional Concentration of Industries and the Performance of Firms: A Multilevel Approach

    Directory of Open Access Journals (Sweden)

    Fernando Coelho Martins Ferreira

    2010-10-01

    Full Text Available This paper presents the results of a study whose objective was to understand how location within industrial concentrations, like clusters or industrial districts, affects the financial performance of firms. In its theoretical framework, this paper attempts to introduce the reasons behind the alleged superior performance of firms located in these concentrations, the base of the hypothesis formulated in this study. Analysis from a three-level hierarchical linear model applied to a sample of 509 companies located in the state of São Paulo found no evidence that industrial concentrations provide firms with superior performance, contradicting expectations generated by the theory. The decomposition of the variance of performance indicated that the location of the firms and the form with which a city interacts with an industry exerts significant influence on how they will perform. In short, location matters to the future of firms. This finding underlines the need to understand how characteristics of cities or regions can promote or retard the performance of firms.

  2. Related Party Transactions and Firms Financial Performance

    African Journals Online (AJOL)

    Prof

    . Equity and Earnings ... Hausmann test for selection of appropriate model and regressed against performance variables. .... Transfer pricing can be used to massage income through ..... Reliance upon information in the venture capital industry.

  3. Immigration and Firm Performance: a city-level approach

    Directory of Open Access Journals (Sweden)

    Mercedes Teruel Carrizosa

    2009-10-01

    Full Text Available This article analyses the effect of immigration flows on the growthand efficiency of manufacturing firms in Spanish cities. While most studies werefocusing on the effect immigrants have on labour markets at an aggregate level,here, we argue that the impact of immigration on firm performance should not onlybe considered in terms of the labour market, but also in terms of how city’s amenitiescan affect the performance of firms. Implementing a panel data methodology,we show that the immigrants’ increasing pressure has a positive effect on labourproductivity and wages and a negative effect on the job evolution of these manufacturingfirms. In addition, both small and new firms are more sensitive to thepressures of immigrant inflow, while foreign market oriented firms report higherproductivity levels and a less marked impact of immigration than their counterparts.We also present a set of instruments to control for endogeneity. It allows us toconfirm the effect of local immigration flows on the performance of manufacturingfirms.

  4. Credit Constraints in Uganda's Firms: Micro-Economic Evidence ...

    African Journals Online (AJOL)

    Information on firms that had demanded for bank credit and were either granted or denied ... firms find it most difficult to get loans from financial institutions perhaps because agency, information, enforcement and transactions costs are higher.

  5. Do exporting firms benefit from retail internationalization? Evidence from France

    OpenAIRE

    Cheptea, Angela; Emlinger, Charlotte; Latouche, Karine

    2015-01-01

    We explore the link between globalization of the retail sector and the export activity of firms from their origin country. In a previous paper (Cheptea et al., 2015), we showed that exporting firms from countries with internationalized retail companies benefit more from this process than firms from other countries. Two mechanisms can explain this effect: a trade cost advantage for retailers’ domestic suppliers, or a shift in foreign demand from which benefit all origin country firms. In this ...

  6. Entrepreneurship, risk perception and firm performance

    NARCIS (Netherlands)

    Boermans, M.A.; Willebrands, Daan

    Risk attitudes of entrepreneurs are well-established drivers of business performance. Most empirical studies in this field only take into account risk propensity, leaving out the complementary concept of risk perception. Using data on 611 entrepreneurs from Tanzania, we show that risk perception is

  7. Women on board and firm performance

    NARCIS (Netherlands)

    Lückerath – Rovers, M.

    2010-01-01

    This study addresses the research question of whether companies with female directors on the board have a higher average performance than companies with no female directors. The debate about the low representation of women in the top management of companies involves both moral arguments (equality be

  8. The Effect Of Intangible Asset Financial Performance And Financial Policies On The Firm Value

    Directory of Open Access Journals (Sweden)

    Rindu Rika Gamayuni

    2015-01-01

    Full Text Available Abstract The purpose of this study is to test empirically the relationship between intangible assets financial policies and financial performance to the firm value at going-public company in Indonesia. Path analysis was used to ascertain the relationship between intangible assets financial policies financial performance and firm value at going-public company in Indonesia in the year 2007 to 2009. This study also provides empirical evidence that Intangible assets financial policies financial performance have significant influence to the firm value simultaneously. Intangible assets has no significant influence to financial policies but has positive and significant influenced to financial performance ROA and firm value. Debt policies and financial performance ROA influenced firm value positive and significant. Financial statements limitation in measuring and disclosing intangible assets is the cause of significant difference between book value equity and market value equity. Measurement and disclosure of intangible assets intellectual capital precisely and aqurately is very important because intangible assets have a positive and significant effect to the firm value. Accounting standards should be concerned about this.

  9. New Firm Performance and the Replacement of Founder-CEOs

    DEFF Research Database (Denmark)

    Chen, Jing; Thompson, Peter

    2015-01-01

    We study the causes and consequences of the replacement of founder-CEOs in a sample of 4,172 Danish start-ups. We propose that founder-CEO replacement is driven in part by mismatches between business quality and founder ability. Our framework suggests that replacements are more likely among the w...... considerably faster. Our empirical results are consistent with these proposed predictions. Copyright © 2015 Strategic Management Society....... the worst- and best-performing firms, with low (high)-ability founders replaced by manager with higher (lower) ability. Replacement is not unambiguously associated with better subsequent performance. Firms that replaced the founder were much more likely to fail, but the surviving firms among them grew...

  10. QUALITY,MANAGEMENT, INFORMATION, MAIN COORDINATES OF PERFORMING FIRM

    Directory of Open Access Journals (Sweden)

    Doru CIRNU

    2010-06-01

    Full Text Available This paper present some aspects to be considered when defining firm’s performance. The focus is on defining three elements which are most important in functioning and development of every firm. The authors of this paper emphasized that “quality can happen only when you care enough to do your best”. Incorporating Total Quality Management (TQM in firms is what we need today. TQM means developing a Quality vision, customer focus and overgrowing process of continuous improvement on the part of each and every person serving at the firm. Every organization needs a process to ensure that the systems witch shape its culture and way of business such as performance appraisal system, reward and recognition systems etc. are brought into alignment with TQM. The same is true in case of every.

  11. Family firms, expropriation and firm value: Evidence of the role of independent directors' tenure in Malaysia

    National Research Council Canada - National Science Library

    Chee Yoong Liew; Ervina Alfan; Susela Devi

    2017-01-01

      This paper was conducted to examine whether there was a negative relationship between independent directors' tenure and firm value which indicated the existence of expropriation due to long tenure...

  12. Does strategic planning enhance or impede innovation and firm performance?

    NARCIS (Netherlands)

    Song, Michael; Im, Subin; van der Bij, Hans; Song, Lisa Z.

    Does strategic planning enhance or impede innovation and firm performance? The current literature provides contradictory views. This study extends the resource-advantage theory to examine the conditions in which strategic planning increases or decreases the number of new product development projects

  13. High Performance Activity Practices in Small Firms in Romania

    Directory of Open Access Journals (Sweden)

    Gabriela ŢUŢUEANU

    2014-12-01

    Full Text Available High Performance Activity Practices in Small Firms in Romania Abstract: High performance activity practices (HPAPs are human resource management activities aimed at stimulating employee and organisational performance. The application of HPAPs is not widespread in small organisations. We examine whether the implementation of coherent bundles of HPAPs (aimed at employee ability, employee motivation or at the opportunity to perform depends on the scarcity of resources, as reflected in the size of the company, and on strategic decision-making in small firms related to the owner’s expertise and attitudes. In our research, a total of 224 employees from 50 small organisations were asked to rate the presence of HPAPs in their organisation. These averaged perceptions were linked to information provided by the owner–managers on the size of their firm and their own expertise and attitudes. The findings support that smaller but coherent bundles of HPAPs can be found in small organisations and that the implementation of these bundles depends on available resources, strategic decision-making and the combination of the two. These findings highlight the need to integrate the notions of resource poverty and strategic decision-making to understand the uptake of bundles of HPAPs within small firms.

  14. Key factors for successful export performance for small firms

    NARCIS (Netherlands)

    Brouthers, L.E.; Nakos, G.; Hadjimarcou, J.; Brouthers, K.D.

    2009-01-01

    What key factors result in superior export performance for small firms from small countries? Drawing on the internationalization process model and organizational learning theory, the authors hypothesize and find that (1) emphasizing international sales while (2) restricting exports to a few foreign

  15. Transparency, corporate governance and firm performance in The Netherlands

    NARCIS (Netherlands)

    Beusichem, van Henry; Jong, de Abe; DeJong, Douglas; Mertens, Gerard

    2016-01-01

    We explore the relations between transparency, corporate governance, and performance for Dutch exchange-listed firms over 1997-2007. Our measure for transparency is based on annual report information. In 2005 a new accounting standard (IFRS) became mandatory and applicable to the annual reports of D

  16. Does Strategic Planning Enhance or Impede Innovation and Firm Performance?

    NARCIS (Netherlands)

    Song, Michael; Im, Subin; Bijl, van der Hans; Song, Lisa Z.

    2011-01-01

    Does strategic planning enhance or impede innovation and firm performance? The current literature provides contradictory views. This study extends the resource-advantage theory to examine the conditions in which strategic planning increases or decreases the number of new product development projects

  17. Does strategic planning enhance or impede innovation and firm performance

    NARCIS (Netherlands)

    Song, Michael; Im, Subin; van der Bijl, H.M.; Song, Lisa Z.

    2011-01-01

    Does strategic planning enhance or impede innovation and firm performance? The current literature provides contradictory views. This study extends the resource-advantage theory to examine the conditions in which strategic planning increases or decreases the number of new product development projects

  18. Does strategic planning enhance or impede innovation and firm performance?

    NARCIS (Netherlands)

    Song, Michael; Im, Subin; van der Bij, Hans; Song, Lisa Z.

    2011-01-01

    Does strategic planning enhance or impede innovation and firm performance? The current literature provides contradictory views. This study extends the resource-advantage theory to examine the conditions in which strategic planning increases or decreases the number of new product development projects

  19. Strategic Adjustment Capacity, Sustained Competitive Advantage, and Firm Performance: An Evolutionary Perspective on Bird Flocking and Firm Competition

    Directory of Open Access Journals (Sweden)

    Shou Chen

    2017-01-01

    Full Text Available Imitating the positioning rules in the bird flocking system, the strategic adjustment capacity is decomposed into three aspects, which are the organizational learning capacity from the top firms, the extent to which firms maintain or rely on the best operational capacity vector in history, and the ability to overcome the disadvantage while maintaining the advantage of the operational capacity vector from the previous years, respectively. Financial vectors are constructed to represent the results of corporate strategic adjustment and listed firms in the China A stock are chosen as the samples. As empirical analysis reveals, there is a positive correlation between the organizational learning capacity from the top firms and the firm performance and a U-shaped relation between the learning capability from the previous best operational capacity vector and the firm performance. However, no significant correlation between the inertia control ability of the current operational capacity vector of the firms and their performance improvement can be observed. This study verifies that the issue of corporate competitiveness and performance can be investigated by utilizing the principles of competition in nature. Moreover, a firm can obtain a sustainable competitive advantage by improving its ability to learn from top firms in the industry.

  20. Global Sourcing: Evidence from Spanish Firm-level Data

    DEFF Research Database (Denmark)

    Kohler, Wilhelm; Smolka, Marcel

    2012-01-01

    We investigate the link between productivity of firms and their sourcing behavior. Following Antràs and Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is driven by a hold-up problem caused by lack of en...... of enforceable contracts. We use Spanish firm-level data to examine the productivity premia associated with the different sourcing strategies....

  1. Global Sourcing: Evidence from Spanish Firm-level Data

    DEFF Research Database (Denmark)

    Kohler, Wilhelm; Smolka, Marcel

    2012-01-01

    We investigate the link between productivity of firms and their sourcing behavior. Following Antràs and Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is driven by a hold-up problem caused by lack of en...... of enforceable contracts. We use Spanish firm-level data to examine the productivity premia associated with the different sourcing strategies....

  2. Bank Lending and Relationship Banking: Evidence from Chilean Firms

    OpenAIRE

    Andrea Repetto; Sergio Rodríguez; Rodrigo O. Valdés

    2002-01-01

    In this paper we empirically study bank-client relationships using a sample of manufacturing Chilean firms. We examine whether concentration and the duration of bank-firm relationships affect the terms of bank financing, evaluating both the volume of bank lending and bank loan costs. Our results indicate that lower concentration, measured by the number of banks a firm borrows from, is associated with lower costs of loans and with a large and positive non-lincar effect on borrowing. The length...

  3. Audit firm tenure and qualified opinions: New evidence from Spain

    Directory of Open Access Journals (Sweden)

    Josep García Blandón

    2013-06-01

    Full Text Available The 2010 Green Paper on Audit Policy by the European Commission has explicitly questioned the sufficiency of audit rotation rules established by European Union Members to guarantee auditor independence. In addition, the Paper clearly states that more research is needed regarding the effects of long audit tenures on independence. In this article, we have replicated the research by Ruiz-Barbadillo, Gómez-Aguilar, and Biedma (2005 about the effects of audit firm tenure on independence with more updated data. However, unlike them, we have performed panel data estimations instead of pooled regression. Our approach allows for a better control of individual unobserved heterogeneity, thus reducing potential problems caused by omitted variable bias. While Ruiz-Barbadillo et al. reported an unexpected positive effect of tenure on the likelihood of audit qualifications, we do not show any significant effect of tenure on the opinion of the audit report. Our results are robust to various sensitivity analyses.

  4. Capabilities, innovation, and overall performance in Brazilian export firms.

    Directory of Open Access Journals (Sweden)

    José Ednilson de Oliveira Cabral

    2015-06-01

    Full Text Available This article extends the current research on innovation by investigating the relationship between innovative capabilities and export firms’ overall performance. From the perspectives of the resource-based view (RBV and dynamic capability, we examine the differential and interactive effects of exploration and exploitation capabilities in product innovation for external markets and overall performance (direct and mediated by a new product. In addition, we test the moderating effect of market dynamism and the controlling effect of firm size on these relationships. Hence, the main contribution of this article is developing and empirically testing an original model, by combining these constructs that address new relationships, in an emerging country. This model was tested with data from 498 Brazilian export firms, distributed throughout all Brazilian manufacturing sectors, by firm size, and in states. The analysis was made with application of the structural equation modeling (SEM. As a result, we found support for the assumptions that exploitation capabilities influence product innovation and overall performance, whereas exploration capabilities and their interaction to exploitation capabilities influence overall performance, but not product innovation. Additionally, the relationship between exploitation capabilities and overall performance is mediated by product innovation. Unlike hypothesized, market dynamism does not moderate the relationship between product innovation and overall performance. Furthermore, firm size works as a controlling variable in the relationships analyzed. Regarding the implications for theory, this study contributes to grasp that exploitation capabilities influences a firm’s overall performance, both directly and indirectly (via product innovation, and highlights the various direct and mediatory effects of innovation on overall performance. These insights show the importance of considering the role of mediating and

  5. Determinants of business model performance in software firms

    OpenAIRE

    Rajala, Risto

    2009-01-01

    The antecedents and consequences of business model design have gained increasing interest among information system (IS) scholars and business practitioners alike. Based on an extensive literature review and empirical research, this study investigates the factors that drive business model design and the performance effects generated by the different kinds of business models in software firms. The main research question is: “What are the determinants of business model performance in the softwar...

  6. How Does Group Affiliation Affect The Diversification Performance Of Family-Controlled Firms In Malaysia? – A Governance Perspective

    OpenAIRE

    Ng Sin Huei

    2014-01-01

    This paper examines the roles of business group affiliations and whether the size and ownership structure of business groups influence the performance outcomes of diversification among family-controlled firms in Malaysia. It presents evidence that agency-driven and thus performance-diminishing firm diversification is more likely to take place in firms affiliated with a family-controlled business group than in independent firms. The findings support the hypothesis that if the benefits of diver...

  7. How Does Group Affiliation Affect The Diversification Performance Of Family-Controlled Firms In Malaysia? – A Governance Perspective

    OpenAIRE

    Ng Sin Huei

    2014-01-01

    This paper examines the roles of business group affiliations and whether the size and ownership structure of business groups influence the performance outcomes of diversification among family-controlled firms in Malaysia. It presents evidence that agency-driven and thus performance-diminishing firm diversification is more likely to take place in firms affiliated with a family-controlled business group than in independent firms. The findings support the hypothesis that if the benefits of diver...

  8. Environmental Management Practices and Firm Performance in a South African Mining Firm

    Directory of Open Access Journals (Sweden)

    Gibson Nyirenda

    2013-09-01

    Full Text Available This paper examines the impact of environmental management practices on the financial performance of a South African mining firm. The major aim of this paper is to investigate whether such practices have a close relationship with the mining firm’s financial performance (represented by return on equity [ROE]. The approach is a case study of a South African mining firm listed under the socially responsible index (SRI of the Johannesburg Stock Exchange (JSE. It uses Green-Steel sa (pseudonym used in place of the real name as a case study. Using multiple regression statistics, the return on equity of Green-Steel sa is regressed on three environmental management practices of Green- Steel (carbon reduction, energy efficiency, and water usage. The result shows there is no significant relationship between the variables and this lends credence to information gathered from Green-Steel environmental reports that Green-Steel’s environmental management practices are driven mostly by a desire to abide by regulations and also by a moral obligation to use environmental management practices to mitigate climate change impact.

  9. Female-Led Firms: Performance and Risk Attitudes

    DEFF Research Database (Denmark)

    Parrotta, Pierpaolo; Smith, Nina

    This paper investigates the relationship between gender of the CEO and composition of the board of directors (female chairman and share of women in the boardroom) and firm’s risk attitudes measured as variability in four firm outcome variables (investments, profits, return to equity, and sales......). Using a merged employer-employee panel sample of Danish companies with more than 50 employees, we find extensive evidence of a negative association between female CEO and firm’s risk attitudes. This finding might be consistent with the theoretical assumption according to which women typically present...... a substantially higher risk aversion profile and put more effort in monitoring firm activities than men in the financial matter domains. A number of robustness checks corroborate and better explain our main findings....

  10. Empirical Evidence on the Link Between Compliance with Governance of Best Practice and Firms' Operating Results

    Directory of Open Access Journals (Sweden)

    Tek B. Lama

    2012-12-01

    Full Text Available This study provides robust evidence in support of the agency theory argument that corporate governancematters for a firm’s operating performance. Using the corporate governance ratings as the governance proxyfrom Horwath 2006 Corporate Governance Report (mid-sized Australian ASX companies andMid-CapCorporate Governance Report 2007 (The University of Newcastle 2006; 2007, I examine 60 sample firms toreveal that a firm’s governance is positively and significantly related to firm performance as measured by returnon equity, earning yield and return on assets. This study extends the findings of these two reports which founda disturbing trend in the corporate governance practice of Australian mid-cap companies – both a decrease incompanies with excellent corporate governance, and an increase in companies with significant corporategovernance deficiencies. The findings of this study suggest that those mid-size companies who have allowedcorporate governance to deteriorate have adversely affected their shareholder returns.

  11. Porter's generic strategies, strategic groups and firm performance in the construction industry : a complementary test

    OpenAIRE

    Molina Azorín, José Francisco; Quer Ramón, Diego

    2003-01-01

    A central theme in the strategic groups literature is that there is a theoretical relationship between groups and firm performance. However, the empirical evidence is conflicting. The aim of this research is to study this linkage through two analysis. Thus, the analysis that has been traditionally used (performance differences between groups) is complemented with an analysis of performance differences within each group. In order to set up strategic groups, we carry out an analysis about the...

  12. The Regional Heterogeneity of Productivity Determinants: Evidence from Ukrainian Firms

    Directory of Open Access Journals (Sweden)

    Cieślik Andrzej

    2017-03-01

    Full Text Available This paper studies the determinants of the total factor productivity (TFP for Ukrainian firms in the manufacturing sector across macro-regions using recent micro-level datasets for 2013. Our empirical results show some degree of heterogeneity across Ukrainian macro-regions; in particular, the link between the total factor productivity, firm size, imports and the level of competition seems to be valid for all macro regions. However, the effects of private ownership status, capital intensity and exports seems to be region specific. In addition, we found no relationship between firm productivity and foreign ownership for any of the regions.

  13. Determinants of firm entries: empirical evidence for Slovenia

    Directory of Open Access Journals (Sweden)

    Dijana Močnik

    2010-02-01

    Full Text Available We empirically investigate the determinants of new firm formations on Slovenian data set for the 6-year period across statistical regions. Analyzed are the relationships of the determinants classified into five groups: demand, unemployment, industrial restructuring, local financial capital, and knowledge concentration. We find a positive and significant impact of GDP p.c., unemployment rate, productivity growth and a negative relationship for employment density. Results show that some regions have significantly worse conditions for start-up firms than others. Practical implications of this study would allow policy makers to better understand the dynamics in new firm formations.

  14. The Effects of Acquisitions on Firm Value, Evidence from Turkey

    Directory of Open Access Journals (Sweden)

    Fatma Büşra GÜNAY BENDAŞ

    2015-01-01

    Full Text Available Acquisitions are assumed to create value for both the target and the acquiring firm. This paper analyzes the sources of value creation in acquisitions and examines the domestic acquisitions that took place in Turkey in 2013. By taking the overall market considerations into account, I measure the degree of value creation over different periods of time. I use the standard market value technique to calculate abnormal returns in stock prices of the acquiring firms and find that the increase in firm value is statistically significant in the long run but not in the short run.

  15. Does microblogging convey firm-specific information? Evidence from China

    Science.gov (United States)

    Shen, Dehua; Li, Xiao; Xue, Mei; Zhang, Wei

    2017-09-01

    This paper investigates the impact of opening microblogging account in Sina Weibo on the diffusion of firm-specific information in Chinese stock market. With the unique sample of firms opening their official accounts, the empirical results show that this newly emerged information diffusion channel, i.e., Sina Weibo, plays an important role in conveying firm-specific information to the market. Generally speaking, these empirical findings have practical implications to securities regulators who have interest in monitoring the diffused information via social media.

  16. Global Sourcing of Heterogeneous Firms: Theory and Evidence

    DEFF Research Database (Denmark)

    Kohler, Wilhelm; Smolka, Marcel

    ), as well as the location of intermediate input production (offshore vs. domestic). Unlike previous work, we allow for a fully flexible productivity effect with varying magnitude and sign across different industries. Our estimation strategy is motivated by the canonical economic model of sourcing due...... to Antràs & Helpman (2004). This model invokes the property rights theory of the firm in order to pin down firm boundaries as the outcome of an interaction between firm heterogeneity and the industry's sourcing intensity (i.e. the importance of inputs sourced from suppliers relative to headquarter inputs...

  17. TQM and firms performance: An EFQM excellence model research based survey

    Directory of Open Access Journals (Sweden)

    Santos-Vijande, M. L.

    2007-01-01

    Full Text Available The purpose of this article is to develop an instrument for measuring TQM implementation following the European Foundation for Quality Management Excellence Model and to provide empirical evidence on the relationship between management practices and measures of business performance in the model. To this end, the study employs survey data collected from Spanish manufacturing and service firms. Confirmatory factor analysis is used to test the psychometric properties of the measurement scales and the hypothesized relationships between total quality management practices and organizational performance are examined using structural equation modeling. The findings of the research indicate that the adoption of the TQM practices suggested in the EFQM Excellence Model allows firms to outperform their competitors in the results criteria included in the Model. Therefore, this paper provides a valuable benchmarking data for firms as it substantiates the EFQM Enabler’s contribution to the attainment of competitive advantage.

  18. Enterprise Risk Management and firm performance: an integrated model for the banking sector

    Directory of Open Access Journals (Sweden)

    Alaa Soliman

    2017-07-01

    Full Text Available This study investigates how the implementation of Enterprise Risk Management program affects the performance of firms using an Enterprise Risk Management model for the banking sector and an integrated model for measuring Enterprise Risk Management index used in the study by Mukhtar and Soliman (2016. Ten listed commercial banks were selected with the Enterprise Risk Management index as the main independent variable, with Return on Average Equity (ROAE, Share Price Return (SPR and Firm Value (FV used as three separate dependent variables. The study provides strong evidence of a positive relationship between Enterprise Risk Management implementation and performance in the Nigerian banking sector. The findings and conclusions of this study are consistent with those of other studies that used data from different industries, providing a basis from which to generalize the findings from this study to firms in other industries.

  19. Dynamic Capability and Its Effects on Firm Performance

    Directory of Open Access Journals (Sweden)

    Kuo-Wei Lin

    2012-01-01

    Full Text Available Problem statement: The study has been mainly attempted as an extension to previous studies made on dynamic capabilities and their necessity in organizational firms for goals accomplishments. Approach: The literature review illustrates the effects of dynamic capabilities on product innovation, firm performance and environmental dynamism. The researches of different authors and theorists on the subject of dynamic capability have been consulted and analysed to present a research study through this study. Results: The study has provided with a detailed understanding of the dynamic capability strategies that have been found to be highly significant in successful organizational performance. The development of different propositions also reflect the increasing importance of dynamic capabilities in organizations that managers are integrating in their strategic management practices all the more from before. Conclusion: This study reveals that the availability of dynamic capabilities imply that a firm may be protected from the negative impacts through planned strategic measures intended to encounter challenges and uncertainties and yet perform to the utmost level and succeed in achieving organizational goals and objectives.

  20. Improving productivity and firm performance with enterprise resource planning

    Science.gov (United States)

    Beheshti, Hooshang M.; Beheshti, Cyrus M.

    2010-11-01

    Productivity is generally considered to be the efficient utilisation of organisational resources and is measured in terms of the efficiency of a worker, company or nation. Focusing on efficiency alone, however, can be harmful to the organisation's long-term success and competitiveness. The full benefits of productivity improvement measures are realised when productivity is examined from two perspectives: operational efficiency (output/input) of an individual worker or a business unit as well as performance (effectiveness) with regard to end user or customer satisfaction. Over the years, corporations have adopted new technology to integrate business activities in order to achieve both effectiveness and efficiency in their operations. In recent years, many firms have invested in enterprise resource planning (ERP) in order to integrate all business activities into a uniform system. The implementation of ERP enables the firm to reduce the transaction costs of the business and improve its productivity, customer satisfaction and profitability.

  1. The determinants of firm performance based on the new capability approach: an empirical study of brazilian firms

    National Research Council Canada - National Science Library

    Nelson Simão de Carvalho Júnior; Ricardo Machado Ruiz

    2008-01-01

    .... The determinants of the firm performance were based on the main arguments of Edith Penrose, Alfred Chandler, Richard Nelson and Sidney Winter, and some propositions of Stephen Hymer and Raymond Vernon...

  2. The Relationship between Corporate Governance and Value of the Firm in Developing Countries: Evidence from Bangladesh

    Directory of Open Access Journals (Sweden)

    Abdur Rouf

    2012-06-01

    Full Text Available This paper aimed to examine the relationship between four corporate governance mechanisms (board size, board independent director, chief executive officer duality and board audit committee and value of the firm (performance measures (return on assets, ROA and return on equity, ROE. The paper is based on a sample of 93 listed non-financial companies in Dhaka Stock Exchanges (DSE 2006. Using OLS as a method of estimation, the results provide evidence of a positive significant relationship between ROA and board independent director as well as chief executive officer duality. The results further reveal a positive significant relationship between ROE and board independent director as well as chief executive officer duality. The study, however, could not provide a significant relationship between the value of the firm measures (ROA and ROE and board size and board audit committee.

  3. Corporate derivatives use and firm value: Evidence from Turkey

    Directory of Open Access Journals (Sweden)

    Yusuf Ayturk

    2016-06-01

    Full Text Available This paper examines use of financial derivatives (currency, interest rate and commodity and its effect on firm value of non-financial Turkish firms for period of 2007–2013. Only 36.41% of companies in our sample use derivatives to hedge their currency, interest rate or commodity price risks. We have used Tobin's Q ratio analysis with panel data models, Fama-French three-factor time-series analysis and single sector analysis to investigate whether corporate derivatives use is value relevant or not. Except Tobin's Q ratio analysis with system GMM estimators, we cannot find significant hedging premium or discount for all Turkish non-financial firms. We find a positive relationship between derivatives use and firm value, only when we use Tobin's Q ratio analysis with system GMM estimators. We also test the effects of currency hedging, interest rate hedging and commodity price hedging separately and find similar results as in the case of general derivatives use. Overall, majority of our results imply that use of financial derivatives does not affect firm value in Turkish market.

  4. The Effects of Cost Leadership Strategy and Product Differentiation Strategy on the Performance of Firms

    OpenAIRE

    Hashem Valipour; Hamid Birjandi; Samira Honarbakhsh

    2012-01-01

    This study empirically investigates the effects of business strategies on the relationship between financial leverage and the performance of firms. The research data is collected from 45 firms in the Tehran Security Exchange (TSE) during 2003-2010.The statistical technique is used to examine the assumption of multiple regressions. To test the assumptions, firms were divided into 2 groups: firms with cost leadership strategy and firms with product differentiation strategy. The results indicate...

  5. Innovative knowledge sharing, supply chain integration and firm performance of Australian manufacturing firms

    NARCIS (Netherlands)

    Singh, Prakash J.; Power, Damien

    2014-01-01

    A number of reports show that innovation in Australian manufacturing firms is declining. We propose that better knowledge sharing practices can assist these firms to become more innovative. In this paper, we examine this proposition by empirically testing the relationship between knowledge sharing p

  6. Research and Development in Foreign Affiliates: Evidence from Japanese Firms

    OpenAIRE

    Belderbos, R.A.; Iwasa, T

    1999-01-01

    This paper analyzes the determinants of the R&D intensity of 434 foreign affiliates, drawing on MITI''s benchmark survey of Japanese multinational firms in 1993. Acquired affiliates are responsible for more than half of overseas R&D expenditure and have significantly higher R&D intensities than wholly and majority owned greenfield affiliates. Non-majority owned joint ventures are R&D intensive in case the investing firm lacks substantial R&D capabilities in Japan. In contrast, R&D intensive J...

  7. Firm Heterogeneity and Development: Evidence from Latin American countries

    NARCIS (Netherlands)

    Chang, H.H.; van Marrewijk, C.

    2011-01-01

    Motivated by the work of Melitz (2003), Helpman, et al. (2004) and Yeaple (2005), micro-firm data provided by the World Bank Enterprise Survey is used to study the empirical productivity distribution across 15 Latin American countries. This paper differs from previous work in identifying four types

  8. Determinants of capital structure: New evidence from Portuguese small firms

    Directory of Open Access Journals (Sweden)

    Zélia Serrasqueiro

    2016-11-01

    Full Text Available This paper studies the determinants of capital structure of 2,329 Portuguese small firms, decomposing total liabilities in long and short-term debt. The results of 2007-2011 panel data suggest that information asymmetry and agency problems seem to be important for small firms in accessing long-term debt. Greater size and a higher level of collateral are quite important in accessing long-term debt. Liquidity is positively associated with long-term debt, although it is negatively related to short-term debt. Higher profitability is related to lower levels of debt. When internal finance is insufficient, these firms seem to be strongly dependent on short-term debt, due to the difficulties in accessing long-term. The main conclusion of the current study is that the predicitons of POT and TOT are followed by small firms in their capital structure, which is in accordance with the results of previous studies focusing on SMEs.

  9. Assessing the firm performance through the financial ratios

    Directory of Open Access Journals (Sweden)

    VASILESCU LAURA

    2011-09-01

    Full Text Available The main objective of every firm is the creation of value, respectively the investment for which the efficiency resulted is above the profitability ratio required by the shareholders. In this paper are presented the fianancial indicators used for a proper value measuring of the firm’s performance, which are grouped in three categories: accounting, economical and stock exchange. For each group of indicators are presented the weak and strong points and there is underlined the importance of each indicator in order to reflect the value creation.

  10. The Influence of Voluntary and Mandatory Environmental Performance on Financial Performance: An Empirical Study of Indonesian Firms

    OpenAIRE

    Kimitaka Nishitani; Nurul Jannah; Hardinsyah Ridwan; Shinji Kaneko

    2013-01-01

    This paper, using data derived from a questionnaire survey of Indonesian firms, analyzes not only whether a firm's environmental performance improves its financial performance, but also whether this relationship depends on the firm's stance on conducting environmental management voluntarily or mandatorily. The estimation results suggest that a reduction of greenhouse gas (GHG) emissions increases a firm's profit, because firms that conduct environmental management voluntarily are more likely ...

  11. Financial Performance of Socially Responsible Firms: The Short- and Long-Term Impact

    Directory of Open Access Journals (Sweden)

    Maria J. Charlo

    2017-09-01

    Full Text Available The pressure of society for firms to adopt socially responsible behavior is evident. Yet, Corporate Social Responsibility (CSR needs an economic justification. In response to this, there exists a comprehensive literature that analyzes the possible relation between social and business financial performance. During the last decade, the literature has been heading toward the carrying out of dynamic studies as researches find that the relationship between social and financial performance is not static. The purpose of this work is to analyze the relevance for the financial performance of Spanish listed firms of maintaining their responsible behavior. To do so, we carry out a comparison between two analyses—one cross-sectional, and the other longitudinal—to be able to conclude whether or not adopting responsible criteria makes a difference in business financial performance in the short and long-term. Some of the results obtained in the cross-sectional study are consolidated in the long-term study. In this sense, responsible firms exhibit a higher systematic risk and have greater size. As a conclusion, be responsible does not mean less stock profitability or a lower business result. It certainly contributes to firms continuing to voluntarily incorporate good corporate social responsibility practices into their business models. What is more, these results support the governmental policies and initiatives that bolster corporate social responsibility.

  12. The Relationship between Ownership Structure, Firm Specific Characteristics and Capital Structure: Evidence from Malaysian Middle-capital Public Listed Firms

    National Research Council Canada - National Science Library

    Hanita Kadir Shahar; Azira Abdul Adzis; Nureliana Baderi

    2016-01-01

    .... By employing a total of 38 middle-capital firms covering period from 2008 to 2012, the results show that debt level in firms with high ownership concentration is significantly different from firms...

  13. The influence of entrepreneurial intensity and capabilities on internationalisation and firm performance

    Directory of Open Access Journals (Sweden)

    Boris Urban

    2015-05-01

    Full Text Available International entrepreneurship represents the process of discovering and creatively exploiting opportunities that exist outside a firm’s national borders in order to obtain a competitive advantage. Firms in emerging economies are increasingly looking towards internationalisation since they are faced with rising competition in their domestic markets and attracted to opportunities in foreign markets. This article investigates international entrepreneurship by examining how the influence of entrepreneurial intensity and capabilities at the firm level influence performance, while at the same time considering environmental influences on this relationship. Based on past theoretical and empirical findings, hypotheses are formulated and then tested using correlational and regression analysis. Generally, the results support the hypotheses where both entrepreneurial intensity and capabilities are positively related to internationalisation and firm performance, while weak evidence is found for environmental hostility as a moderating influence. Several recommendations are made in light of the findings, where it is suggested that firms foster higher levels of innovativeness, risk-taking and proactiveness while developing human, social and technology related capabilities in order to enhance their performance and increase their levels of internationalisation.

  14. Heterogeneity in business groups and the corporate diversification firm performance relationship.

    NARCIS (Netherlands)

    George, R.; Kabir, Mohammed Rezaul

    2012-01-01

    This article examines how heterogeneous features among business groups influence the corporate diversification–firm performance relationship. The study classifies heterogeneity along three dimensions: group size, group diversity, and share ownership. Using a sample of firms from India, the study

  15. The influence of the venture capitalist's governance activities on the entrepreneurial firm's control systems and performance

    NARCIS (Netherlands)

    Wijbenga, F.H.; Postma, T.J.B.M.; Strating, R.

    2007-01-01

    Venture capitalists (VCs) contribute to entrepreneurial firms by engaging in governance activities, such as providing services and monitoring the entrepreneurial firm's operations and performance. This study examines the role and influence of the VC's governance activities on 93 Dutch entrepreneuria

  16. The growth of business firms: theoretical framework and empirical evidence.

    Science.gov (United States)

    Fu, Dongfeng; Pammolli, Fabio; Buldyrev, S V; Riccaboni, Massimo; Matia, Kaushik; Yamasaki, Kazuko; Stanley, H Eugene

    2005-12-27

    We introduce a model of proportional growth to explain the distribution P(g)(g) of business-firm growth rates. The model predicts that P(g)(g) is exponential in the central part and depicts an asymptotic power-law behavior in the tails with an exponent zeta = 3. Because of data limitations, previous studies in this field have been focusing exclusively on the Laplace shape of the body of the distribution. In this article, we test the model at different levels of aggregation in the economy, from products to firms to countries, and we find that the predictions of the model agree with empirical growth distributions and size-variance relationships.

  17. Competition and Social Identity in the Workplace: Evidence from a Chinese Textile Firm

    OpenAIRE

    Takao Kato; Pian Shu

    2013-01-01

    We study the impact of social identity on worker competition by exploiting the exogenous variations in workers' origins and the well-documented social divide between urban resident workers and rural migrant workers in large urban Chinese firms. We analyze data on weekly output, individual characteristics, and coworker composition for all weavers in an urban Chinese textile firm between April 2003 and March 2004. The firm's relative performance incentive scheme rewards a worker for outperformi...

  18. Modeling Factors that Influence Firm Performance in the Eastern Hardwood Lumber Manufacturing Industry

    OpenAIRE

    Perkins, Brian

    2009-01-01

    This research investigated the relationship between several firm-controlled, marketing and management factors and firm performance. Hypotheses describing the relationship between the strategic, geographic, tactical, technological and organizational factors and firm performance of hardwood lumber manufacturers were tested. These factors were operationalized, measured in a mail survey and used in statistical analysis to identify relationships among the variables. An adjusted response rate of...

  19. Wage setting in Hungary: evidence from a firm survey

    OpenAIRE

    2012-01-01

    We document results from a survey of wage setting in Hungarian enterprises. The survey was developed and coordinated by the Eurosystem Wage Dynamics Network, and it was administered in 17 European countries; this allows us to put the Hungarian findings in context. The main conclusion from the survey is that while Hungarian firms operate in a quite flexible institutional environment, their wage setting practices are relatively rigid. In its wage setting outcomes, Hungary shares more similariti...

  20. FROM SOCIAL CAPITAL TO FIRMS NETWORKS: SOME EVIDENCE FOR EUROPE

    Directory of Open Access Journals (Sweden)

    perrucci antonella

    2012-12-01

    Full Text Available The concept of development is not only referred to the level or to the growth rate of GDP of a country, but it concerns different aspects of individual and social life. Development leads to a changing of values, culture, behaviours and attitudes of people interested in it. That is to say that not only quantitative dimensions, but also qualitative ones became relevant in fostering development trajectories. Reasoning in these general terms a long and rich intellectual debate grow up in social sciences within which we focused the social capital and firm network debate. Social capital is a multidimensional determinant at base of the industrial district framework as the “network capital” represent a driver of firm’s network framework. By moving from social capital, as a local development driver, to network capital, as a global development driver, the present paper analyzes the firms’ networks determinants by identifying the conditions for some European countries. The methodology through which the results are obtained is the multidimensional scaling method which allows to define relations between countries in terms of proximity/distance with respect to the considered determinants providing a spatial representation of them.

  1. Vertical interlocks of executives and performance of affiliated firms in state owned Chinese business groups

    DEFF Research Database (Denmark)

    Arnoldi, Jakob; Chen, Xin; Na, Chaohong

    Using a dataset of Chinese listed firms affiliated with state-controlled business groups, we examine how vertical interlocks of executives affect firm performance. We find that vertical interlocks of affiliated firm chairmen are positively associated with performance of the affiliated firms...... of interlocks and adds to a small body of literature on the dynamics of state owned business groups in emerging markets generally and China particularly....

  2. Productivity, Exporting and the Learning-by-Exporting Hypothesis: Direct Evidence from UK Firms

    OpenAIRE

    Crespi, Gustavo; Criscuolo, Chiara; Haskel, Jonathan

    2006-01-01

    Case study evidence suggests that exporting firms learn from their clients. But econometric evidence, mostly using exporting and TFP growth, is mixed. We use a UK panel data set with firm-level information on exporting and productivity. Our innovation is that we also have direct data on the sources of learning (in this case about new technologies). Controlling for fixed effects we have two main findings. First, we find firms who exported in the past are more likely to then report that they le...

  3. The whole relationship between environmental variables and firm performance: competitive advantage and firm resources as mediator variables.

    Science.gov (United States)

    López-Gamero, María D; Molina-Azorín, José F; Claver-Cortés, Enrique

    2009-07-01

    The examination of the possible direct link between environmental protection and firm performance in the literature has generally produced mixed results. The present paper contributes to the literature by using the resource-based view as a mediating process in this relationship. The study specifically tests whether or not the resource-based view of the firm mediates the positive relationships of proactive environmental management and improved environmental performance with competitive advantage, which also has consequences for financial performance. We also check the possible link between the adoption of a pioneering approach and good environmental management practices. Our findings support that early investment timing and intensity in environmental issues impact on the adoption of a proactive environmental management, which in turn helps to improve environmental performance. The findings also show that a firm's resources and competitive advantage act as mediator variables for a positive relationship between environmental protection and financial performance. This contribution is original because the present paper develops a comprehensive whole picture of this path process, which has previously only been partially discussed in the literature. In addition, this study clarifies a relevant point in the literature, namely that the effect of environmental protection on firm performance is not direct and can vary depending on the sector considered. Whereas competitive advantage in relation to costs influences financial performance in the IPPC law sector, the relevant influence in the hotel sector comes from competitive advantage through differentiation.

  4. Information Systems, Competitive Dynamics, and Firm Performance: An Interpretive and Centering Resonance Analysis

    Science.gov (United States)

    Vannoy, Sandra A.

    2010-01-01

    This dissertation examines, from a managerial interpretive perspective, how information systems contribute to firms' specific competitive actions and responses, and the resultant impacts upon firm performance. The findings from this research suggest that the answer may well lie within the role of information systems in firms' competitive dynamics…

  5. On explaining performance differentials: marketing and the managerial theory of the firm

    NARCIS (Netherlands)

    Stoelhorst, J.W.; van Raaij, E.M.

    2004-01-01

    Efforts to develop a managerially meaningful alternative to the neoclassical theory of the firm have always been an important part of theory development in marketing. This paper argues that the main explanandum of a managerial theory of the firm is performance differentials between firms. Marketing

  6. International strategic alliances in construction: performances of Turkish contracting firms

    OpenAIRE

    Akıner, İlknur; Yitmen, Ibrahim

    2011-01-01

    Firms need various resources and capabilities in order to compete with each other effectively. These resources and capabilities can be acquired, developed internally, or obtained via an ongoing cooperative relationship with another firm through the use of a strategic alliance. The use of strategic alliances in construction industry has increased sharply over the last decade and they are particularly effective in helping a firm maintain a superior competitive position in dynamic environments. ...

  7. New Firm Performance and the Replacement of Founders

    DEFF Research Database (Denmark)

    Chen, Jing; Thompson, Peter

    We construct a simple model of founder turnover in which there may be mismatches between the quality of a startup and the ability of the founder. When high-ability founders establish poor-quality businesses, they either choose to close the business or hire a less able CEO. In contrast, low-abilit......-ability founders with highquality businesses hire a more able CEO. We derive implications of the model for the relationship between firm performance and founder turnover. These predictions are tested using a large sample of Danish startups.......We construct a simple model of founder turnover in which there may be mismatches between the quality of a startup and the ability of the founder. When high-ability founders establish poor-quality businesses, they either choose to close the business or hire a less able CEO. In contrast, low...

  8. The relationships between Lean manufacturing, management accounting and firm performance

    DEFF Research Database (Denmark)

    Kristensen, Thomas Borup; Nielsen, Henrik; Grasso, Lawrency

    2016-01-01

    , likewise, Lean manufacturing affects employee’s mindsets. The extent of which such a transformation can occur is constrained in time as it requires employees and management to unlearn old principles and practices before new ones can be fine-tuned and put fruitfully into use. This study investigates......Lean manufacturing has been adopted by numerous western companies as an answer to an increasing competitive environment. Lean manufacturing is seen as an enterprise-wide strategy encompassing a transformation of manufacturing practices, affecting companies’ management accounting practices and...... the relationship between Lean manufacturing, management accounting practices, Lean thinking and firm performance. Using survey data from 368 different manufacturing facilities, we construct a structural equation model and we develop hypotheses predicting relationships between Lean manufacturing, management...

  9. Top management turnover and firm default risk:Evidence from the Chinese securities market

    Institute of Scientific and Technical Information of China (English)

    Wei; Ting

    2011-01-01

    China has moved rapidly from a socialist planned economy to a market economy.As a result,many enterprises in China are seeking talented top management to increase their performance and decrease their default risk.Studies abound regarding top management turnover and its relationship with firm performance,however,few studies have connected top management turnover with firm default risk.In China,a market with extensive financial fraud,firm default risk is an important factor and thus we explore this relationship in the Chinese securities market.Our results indicate that firms with higher default risk are more likely to change their top management in the next financial reporting period.In addition,following changes in top management,such firms default less than other companies.

  10. Top management turnover and firm default risk: Evidence from the Chinese securities market

    Directory of Open Access Journals (Sweden)

    Wei Ting

    2011-06-01

    Full Text Available China has moved rapidly from a socialist planned economy to a market economy. As a result, many enterprises in China are seeking talented top management to increase their performance and decrease their default risk. Studies abound regarding top management turnover and its relationship with firm performance, however, few studies have connected top management turnover with firm default risk. In China, a market with extensive financial fraud, firm default risk is an important factor and thus we explore this relationship in the Chinese securities market. Our results indicate that firms with higher default risk are more likely to change their top management in the next financial reporting period. In addition, following changes in top management, such firms default less than other companies.

  11. The Correlation between the Internationalization Processes and Performance of Firms: The Case of Emerging Market Firms of the BRIC Countries

    Directory of Open Access Journals (Sweden)

    Aysun FICICI

    2014-09-01

    Full Text Available Abstract. In this empirical study we examine the correlation between the internationalization processes and financial performance of firms by focusing on the emerging market firms (EMNCs that originate from the BRIC countries. We test the shape of the internationalization - performance curve and explore the differences on effectiveness of the sectors. Our sample data that is collected from the World Scope database that includes a total of 239 firms in which 13 of the firms are from Brazil, 58 of them from China, 156 from India, and 12 from Russia. The internationalization activities take place during the period of 2000 – 2010. Our results suggest that using only the first order term FSTS and second order term FSTS^2., demonstrates a positive relationship between DOI and ROA, a negative relationship between DOI and ROE, and DOI and ROS, and a positive relationship between DOI and ROA, DOI and ROS, and a negative relationship between DOI and ROE. The sign of the coefficient for FSTS are negative and for FSTS^2, positive. This result confirms the previous theories that financial performance decreases in the beginning of the internationalization processes, then increases with the expansion of international operations. These results are statistically significant and propose a U-shaped relationship between the financial performance of EMNCs and their degree of internationalization.Keywords: Emerging Markets, Emerging Market Multinationals, Financial Performance, Internationalization and Degree of Internationalization, Foreign Direct Investment.JEL Class.: F2, F21, F23.

  12. Determinants of Financing Decisions in Innovative Firms: A Review on Theoretical Backgrounds and Empirical Evidence

    Directory of Open Access Journals (Sweden)

    Mihaela Diaconu

    2016-01-01

    Full Text Available We review some of the main aspects highlighted in the literature on financing innovation. Thetheoretical background related to the distinctive features of innovative firms impacting theirfinancing decisions and the empirical evidence is reviewed. The growing literature on the financingof innovation shows that the theoretical and empirical work are not always constant across thevarious samples and situations faced by firms as a result of generating new findings. We highlightthe interaction between financing choices for innovation and changing internal and externalcondition firms operate.

  13. Technological Activities and Their Impact on the Financial Performance of the Firm : Exploitation and Exploration within and between Firms

    NARCIS (Netherlands)

    Belderbos, Rene; Faems, Dries; Leten, Bart; Van Looy, Bart

    2010-01-01

    The present study analyzes the impact of firms' technological strategies on their financial performance. Technology strategies are defined by making a distinction between explorative and exploitative as well as collaborative and solitary technological activities. Several hypotheses are tested on a p

  14. How does family control influence firm strategy and performance? A meta-analysis of US publicly-listed firms

    NARCIS (Netherlands)

    van Essen, M.|info:eu-repo/dai/nl/357514491; Carney, M.; Gedajlovic, E.; Heugens, P.P.M.A.R.

    Empirical Research Question/Issue A contentious and prominent research question in the management literature is whether publicly listed family firms (FFs) outperform other types of corporations. Through a research synthesis of all available studies on the performance of US FFs, we address this

  15. Organizational Learning, Knowledge Management Practices and Firm's Performance: An Empirical Study of a Heavy Engineering Firm in India

    Science.gov (United States)

    Jain, Ajay K.; Moreno, Ana

    2015-01-01

    Purpose: The study aims at investigating the impact of organizational learning (OL) on the firm's performance and knowledge management (KM) practices in a heavy engineering organization in India. Design/Methodology/Approach: The data were collected from 205 middle and senior executives working in the project engineering management division of a…

  16. Organizational Learning, Knowledge Management Practices and Firm's Performance: An Empirical Study of a Heavy Engineering Firm in India

    Science.gov (United States)

    Jain, Ajay K.; Moreno, Ana

    2015-01-01

    Purpose: The study aims at investigating the impact of organizational learning (OL) on the firm's performance and knowledge management (KM) practices in a heavy engineering organization in India. Design/Methodology/Approach: The data were collected from 205 middle and senior executives working in the project engineering management division of a…

  17. Corporate governance and firm performance : An analysis of ownership structure, profit redistribution and diversification strategies of firms in India

    NARCIS (Netherlands)

    George, R.

    2005-01-01

    This dissertation examines the relationship between corporate governance and performance of firms in India. Utilizing various theoretical bases in strategy and finance domains, the dissertation attempts to distill a better understanding of the pivotal role played by the twin dimensions of ownership

  18. How does family control influence firm strategy and performance? A meta-analysis of US publicly-listed firms

    NARCIS (Netherlands)

    van Essen, M.; Carney, M.; Gedajlovic, E.; Heugens, P.P.M.A.R.

    2015-01-01

    Empirical Research Question/Issue A contentious and prominent research question in the management literature is whether publicly listed family firms (FFs) outperform other types of corporations. Through a research synthesis of all available studies on the performance of US FFs, we address this quest

  19. Ultimate Government Control Structures and Firm Value:Evidence from Chinese Listed Companies

    Institute of Scientific and Technical Information of China (English)

    Kun Wang; Xing Xiao

    2009-01-01

    We show that 70% of Chinese listed companies are ultimately controlled by government agencies, thereby indicating that state ownership remains widespread in China’s stock markets. Three questions are considered that are related to government control structures and their impact on firm value:(1) how do government agencies maintain their control of listed companies;(2) what are the impacts of different government control structures on firm value; and(3) are these impacts different in local government and central government-controlled firms? We find that the Chinese government controls listed companies directly or indirectly through solely state-owned enterprises(SSOEs). Taking into account the trade-off between political and agency costs, we show that firm value increases when some control rights are decentralized from the government to state-owned enterprises(SOEs). Moreover, decentralization improves significantly the performance of local government- controlled, but not central government-controlled firms.

  20. Internationalization Strategy and Financial Performance in Brazilian Firms

    Directory of Open Access Journals (Sweden)

    Pedro Paulo Mendes Silva

    2011-12-01

    Full Text Available The internationalization of the firm and the appearance of multinational companies are not recent events. The first initiatives to realize businesses overseas and increase profits in this way date from the beginning from the Modern Age. For Brazilian companies in particular, this phenomenon has been gaining attention since the 1990s, with the commercial opening of the country. The objective of this study was to analyze the strategy of internationalization in Brazilian companies, in particular the case of publically traded companies with foreign direct investments greater than $10 million, and the relation with the financial performance of these companies. Through a quantitative study using the rate of variation of internationalization and financial performance, researchers developed an analysis of the relation between the process of internationalization and financial performance indicators in nine companies that make up the non-probabilistic sample of convenience. The results concluded that there is a weak positive correlation with financial indicators of growth; profitability metrics show a negative relationship in some of the independent variables.

  1. Endividamento de longo prazo e desempenho em tempos de crise: evidências de empresas no Brasil e América Latina = Long-term debt and performance in crisis times: evidences of firms from Brazil and Latin America

    Directory of Open Access Journals (Sweden)

    Dermeval Martins Borges Junior

    2017-04-01

    Full Text Available Este trabalho teve como objetivo examinar o efeito do endividamento de longo prazo no desempenho de empresas brasileiras e latino-americanas, de modo a abranger o cenário econômico anterior, durante e após a crise mundial de 2008. Considerou-se no estudo os dados contábeis referentes às companhias abertas listadas nas Bolsas de Valores do Brasil, Chile, Argentina, Colômbia, México e Peru, durante o período compreendido entre 2007 e 2015. Foi elaborado um modelo de regressão linear múltipla com dados em painel baseados na literatura sobre o tema. O software Stata foi utilizado para a análise dos dados. Os resultados indicaram que para as empresas da América Latina, exceto para as do Brasil, existe relação negativa entre o endividamento de longo prazo e o desempenho. No caso das empresas brasileiras, para tal relação, os resultados se mostraram inconclusivos. This study aimed at examining the effect of long-term debt on the performance of Brazilian and Latin American companies, encompassing the previous economic scenario, during and after the global crisis of 2008. It was considered in this study the accounting data from public companies listed in stock exchanges of Brazil, Chile, Argentina, Colombia, Mexico and Peru within the period of 2007 to 2015. It was elaborated a multiple linear regression model with panel data based on the literature of the subject. It was used Stata software for data analysis. The results indicated that for companies from Latin America, except Brazilians, there is a negative relationship between long-term debt and performance. In the case of Brazilian companies, for such relationship, the results were inconclusive.

  2. Innovative culture, management control systems and performance in small and medium-sized Spanish family firms

    Directory of Open Access Journals (Sweden)

    Antonio Duréndez

    2011-06-01

    Full Text Available The aim of this paper is to research on organizational culture and management of family firms. We identify family-firms innovative culture and assess the relationship between organizational culture, management control systems (MCS use and their effects on performance of SME family-firms. With this purpose, we carry out an empirical analysis on a sample of Spanish SMEs (285 family and 151 non-family firms. Results show that (1 family-firms have a more hierarchical culture and a lesser extent of MCS use than non-family firms have, and (2 an innovative culture and the use of MCS have positive influences on family-firm performance.

  3. True versus spurious state dependence in firm performance

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Kongsted, Hans Christian

    2008-01-01

    This paper analyzes the persistence of firms' exporting behavior in a panel of German manufacturing firms using dynamic binary choice models. We distinguish between true and spurious state dependence in exports and apply fixed effects methods that allow us to verify the robustness of our results ...... determinants. Our results, which are consistent with the findings of previous studies on firms in developing countries and in the United States, show the presence of important sunk costs in export market entry and a depreciation of knowledge and experience in export markets....

  4. True Versus Spurious State Dependence in Firm Performance

    DEFF Research Database (Denmark)

    Kaiser, Ulrich; Kongsted, Hans Christian

    This paper analyzes the persistence of firms' exporting behavior in a panel of German manufacturing firms using dynamic binary choice models. We distinguish between true and spurious state dependence in exports and apply fixed effects methods that allow us to verify the robustness of our results ...... determinants. Our results, which are consistent with the findings of previous studies on firms in developing countries and in the United States, show the presence of important sunk costs in export market entry and a depreciation of knowledge and experience in export markets...

  5. How environmental collaboration with suppliers and customers influences firm performance

    NARCIS (Netherlands)

    Grekova, K.; Calantone, R.J.; Bremmers, H.J.; Trienekens, J.H.; Omta, S.W.F.

    2016-01-01

    Searching for sustainable growth opportunities, manufacturing firms are increasingly embedding sustainability concerns into their relationships with supply chain partners. In the present paper, we explore the potential of environmental collaboration with suppliers and customers to induce

  6. Corporate governance and stock price performance of firms during the crisis

    DEFF Research Database (Denmark)

    Farooq, Omar; Chetioui, Youssef

    2012-01-01

    with superior stock price performance. We argue that lower agency problems that accompany firms with better corporate governance mechanisms make it hard for controlling shareholders to expropriate, thereby improving stock price performance. Our results are important in a way that they highlight the power......This paper examines the impact of corporate governance mechanisms on stock price performance of firms in the MENA region, i.e. Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain, during the recent financial crisis. Using dividend policy, choice of auditors......, and transactional complexity as proxies for corporate governance, we document better stock price performance for firms with superior governance mechanisms. Our results show that firms with one of the big-four auditors, firms paying dividends, and firms with lower transactional complexity are associated...

  7. When does inward technology licensing facilitate firms' NPD performance? A contingency perspective

    DEFF Research Database (Denmark)

    Wang, Yuandi; Li-Ying, Jason

    2014-01-01

    Many firms find inward technology licensing (ITL), as a means to access external technological knowledge, an effective and relatively inexpensive way for new product development (NPD). However, although the literature has suggested some advantages and disadvantages of ITL with respect to NPD...... be investigated through a contingency perspective. Thus, this study posits that a firm's propensity to develop new products through ITL is contingent upon two categories of contingency factors that are internal and external to firms. Using a dataset containing information about Chinese firms' licensing activities......, we find support for our hypotheses: the positive relationship between ITL and NPD performance of a licensee firm is moderated by firms' absolute and relative absorptive capacity and the knowledge endowment in the region where the licensee firm operates....

  8. Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities

    OpenAIRE

    Masaaki Kotabe; Srini S. Srinivasan; Aulakh,Preet S.

    2002-01-01

    Researchers in international business have long been interested in understanding the relationship between the multinationality of a firm and its market performance. This article contributes to this research stream by incorporating firm heterogeneity in examining the multinationality-performance relationship. The findings, based on a time series cross-sectional analysis of firms from 12 different industries over a seven-year period, indicate that the impact of multinationality on both financia...

  9. How Ownership Structure Influences Firm Performance in Relation to Its Life Cycle

    Directory of Open Access Journals (Sweden)

    Nur Firdaus

    2012-12-01

    Full Text Available Ownership structure is considered to be the most influential component in corporate govern-ance; it is also closely related to firm performance. The current research analyzes the effect of ownership structure (both insider ownership—board and managerial ownership, blockholder ownership—and institutional ownership concentration—pressure-insensitive and pres-sure-sensitive on firm performance (industry adjusted return on asset/IAROA based on its life cycle. Life cycle is incorporated into the research to examine whether the effect of own-ership structure on firm performance differs at each stage of the life cycle. The current re-search uses imbalanced panel data consisting of 695 observations of sample firms from the manufacturing, IT, and multimedia firms during the 2005-2010 period. The results show that: (1 insider ownership has a significantly non-linear influence on IAROA, indicated by a U-shaped curve (2 blockholders have a significantly positive effect on IAROA in firms at the mature stage; on the contrary, the effect is significantly negative in firms at the growth stage (3 institutional ownership concentration has a significantly negative effect on IAROA across the samples and a significantly positive effect on firms at the mature stage, and (4 pressure-insensitive and pressure-sensitive institutional ownerships have a positive and sig-nificant effect on IAROA in firms at the mature stage; on the contrary, the effect is negative and significant in firms at the growth stage.

  10. Measuring intangibles' productivity. Empirical evidence from Spanish firms

    OpenAIRE

    Oliveras, Ester; Castillo, David

    2008-01-01

    As companies and shareholders begin to note the potential repercussions of intangible assets upon business results, the inability of the traditional financial statement model to reflect these new ways of creating business value has become evident. Companies have widely adopted new management tools, covering in this way the inability of the traditional financial statement model to reflect these new ways of creating business value. However, there are few prior studies measuring on a quantifiabl...

  11. Does Smart Power of ASEAN Cooperation Influence Firm Value? Evidence from Geopolitical Perspective

    Directory of Open Access Journals (Sweden)

    Mohd Fairuz Md. Salleh

    2016-06-01

    Full Text Available This study examines the influence of the ASEAN cooperation on firm value. As far as the cooperation of the Association of Southeast Asian Nations (ASEAN is concerned, one aspect of geopolitical mechanisms is ASEAN‟s smart power which combines hard and soft power. This smart power is considered an important mechanism for corporate strategies. Any changes in geopolitical decision between the ASEAN members will affect firm value especially firms segmented in the ASEAN countries. From a geopolitical perspective and by using data from public listed firms in Malaysia that were actively traded in ASEAN countries from 2009 to 2013, the study examined the influence of hard power indicated by military power, and soft power which refers to material resources and social power in terms of the relationship of political elites. The study found that the soft power of the ASEAN cooperation is positively associated with firm value. In contrast, the social power of political elites is negatively related to firm value, while the hard power fails to show any influence. Overall, the evidence suggests that corporate strategies should consider the benefit of ASEAN‟s material resources and the risk of forging relationships with political elites when designing market penetration strategies.

  12. The relationship between family orientation, organization context, organization structure and firm performance

    NARCIS (Netherlands)

    Meijaard, J.; Uhlaner, L.M.

    2004-01-01

    This study focuses on the prediction of three firm performance indicators, sales growth, innovation performance and profitability, on a sample of small and medium-sized firms in the Netherlands. Predictions from agency theory and the resource based view of organizations lead to alternate hypotheses

  13. The relationship between family orientation, organization context, organization structure and firm performance

    NARCIS (Netherlands)

    Meijaard, J.; Uhlaner, L.M.

    2004-01-01

    This study focuses on the prediction of three firm performance indicators, sales growth, innovation performance and profitability, on a sample of small and medium-sized firms in the Netherlands. Predictions from agency theory and the resource based view of organizations lead to alternate hypotheses

  14. A Survey of Managerial Perspective on Corporate Dividend Policy: Evidence from Turkish Listed Firms

    Directory of Open Access Journals (Sweden)

    Narman Kuzucu

    2015-06-01

    Full Text Available This research paper examines the corporate dividend payout behaviours of non-financial firms from Istanbul Stock Exchange (Borsa Istanbul. Survey method is conducted to investigate managerial views on corporate dividend policy. The study investigates whether the evidence in Turkish stock market on dividend policy is similar to the European and the U.S. firms’ results which are reported earlier by other studies, and moreover in what extent Lintner’s (1956 findings on dividends is supported by today’s listed firms in an emerging market. The financial managers from 38 firms out of 216 non-financial companies responded the survey. The results show that there is a significant positive relationship between cash dividends and earnings. Earnings are viewed as the most important factor in dividend decision like in European and the U.S. firms. Sustainable change in earnings, stability and level of future earnings, and the desire to distribute a proportion of earnings to shareholders are the common determinants of dividend policy. The majority of the respondents reports that they target dividends. Dividend yield is the most common measure for dividend targeting. Share repurchases are not viewed as alternative to dividend payouts unlike the U.S. firms. The study finds supporting evidences for bird-in-the-hand and signalling hypotheses, and Lintner’s model.

  15. South African exporter performance: new research into firm-specific and market characteristics

    Directory of Open Access Journals (Sweden)

    Christopher May

    2012-05-01

    Full Text Available The export marketing performance of any firm is influenced by a multitude of different factors. Given the multi-faceted nature of the export market, this research study investigated specific factors such as how firm-specific characteristics, product characteristics, market characteristics and export marketing strategies impact on the export marketing performance of South African manufacturing firms. Some of the findings of this research study indicated that firm size, investment commitment and careful planning, as firm-specific characteristics, had a significant influence on export marketing performance. The relationship between export experience and export marketing performance was insignificant. The degree of pricing adaptation and product adaptation had a significant effect on export marketing performance, while this was not the case with respect to the degree of promotion adaptation and distributor support.

  16. KNOWLEDGE MANAGEMENT AND FIRM PERFORMANCE IN SMEs: THE ROLE OF SOCIAL CAPITAL AS A MEDIATING VARIABLE

    Directory of Open Access Journals (Sweden)

    Salina Daud

    2010-07-01

    Full Text Available Knowledge and intellectual capital are increasingly recognised as the main sources of competitive advantages in the knowledge-based economy. Businesses, particularly those that are small- or medium-sized, find that they need to give increasing attention to knowledge management and social capital — social capital being a mediating variable between knowledge management processes and firm performance. This study examined knowledge management, social capital and firm performance through the use of a questionnaire directed to small- and medium-sized enterprises — all of them situated within the Multimedia Super Corridor in the Klang Valley of Malaysia. The results based on 289 usable questionnaires demonstrated the following: (i knowledge management processes influence social capital positively; (ii social capital enhances firm performance; and (iii social capital is a mediator between knowledge management processes and firm performance. The research demonstrated that knowledge management processes and social capital can be integrated to enhance firm performance.

  17. The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data

    Science.gov (United States)

    Kampelmann, Stephan; Rycx, Francois

    2012-01-01

    We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the…

  18. Environmental Performance and firm strategies in the Dutch automotive sector

    NARCIS (Netherlands)

    van der Vooren, A.; Alkemade, F.; Hekkert, M.P.

    2013-01-01

    This paper explores how automotive firms positioned their portfolio since the introduction of energy labels for cars. Using data on product characteristics of automobiles offered on the Dutch market over the period 2001-2010, we analyse how car manufacturers' product portfolios have changed. Portfol

  19. market orientation and firm performance in ghana's pharmaceutical ...

    African Journals Online (AJOL)

    User

    tor differs with an increase in size and organizational commitments of the firms involved. ... the few studies on market orientation in the pharmaceutical sector emanating from a developing .... Page 3 .... Also standardized item scales from. Inter-departmental. Dynamics. • Conflict ... To begin with, the mean and standard devia-.

  20. Information Technology and Firm Performance: The Role of Innovation

    NARCIS (Netherlands)

    Zand, F.

    2011-01-01

    There is an essential quest in the literature to open up the “black box” of Information Technology (IT) by identifying and explaining how and why IT creates value for the firm. The present dissertation is an attempt to clarify the role of innovation in the process of value creation from IT investmen

  1. Female-Led Firms: Performance and Risk Attitudes

    DEFF Research Database (Denmark)

    Parrotta, Pierpaolo; Smith, Nina

    This paper investigates the relationship between gender of the CEO and composition of the board of directors (female chairman and share of women in the boardroom) and firm’s risk attitudes measured as variability in four firm outcome variables (investments, profits, return to equity, and sales...

  2. Dancing With the Stars: How Talent Shapes Firm Performance

    DEFF Research Database (Denmark)

    Eriksen, Bo

    affect which talent management approach firms should follow? Our paper contributes with two insights using a rich panel of Danish matched employer-employee data. We identify a tradeoff between short term adjustment costs and longer term gains from increasing talent where initial gains appear of offset...

  3. Corporate governance and firm performance: the case of UK.

    OpenAIRE

    Farhat, Ali

    2014-01-01

    The subject of corporate governance and corporate performance has been widely discussed and examined over the last two decades. A great deal of change has developed within British Boardrooms since the emergence of the Cadbury Committee Report in 1992. UK Corporate Governance reforms over the years have been consistently developed where an increase in the number of non-executive directors on board, their roles and their effectiveness, was evident throughout the development of these reports. Fo...

  4. Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms

    Directory of Open Access Journals (Sweden)

    Sunil Nandi

    2013-01-01

    Full Text Available This study investigates the association between firm characteristics, corporate governance attributes and the level of corporate disclosure of listed firms in India. The research paper has been based on a sample of 60 firms listed in the Bombay Stock Exchange (BSE / National Stock Exchange (NSE during the study period from 2000-01 to 2009-10. The study has used the Standard & Poor (2008 model for measuring the level of corporate disclosure. To examine the association between explanatory variables and the level of corporate disclosure, multiple regression model has been used. The results suggest a positive relationship between board size, ratio of audit committee members to total board members, family control, CEO duality, firm size, profitability, liquidity and the extent of corporate disclosure. However, the degree of corporate disclosure is negatively related to board composition, leverage and age of the firm.

  5. THE RELATIONSHIP BETWEEN ORGANISATIONAL COMPETITIVE ADVANTAGE AND PERFORMANCE MODERATED BY THE AGE AND SIZE OF FIRMS

    Directory of Open Access Journals (Sweden)

    Alimin Ismadi Ismail

    2010-07-01

    Full Text Available It has been argued that achieving a position of competitive advantage is a necessary precursor to a firm's significant performance. This paper will empirically examine the potential moderating variables that could affect the relationship between a firm's competitive advantage and performance, namely the firms' age and size. By examining the relative moderating effects of these variables, this paper delivers valuable information to firms, specifically with regard to strategic management directed toward performance and attaining a competitive advantage. This research was conducted among 127 manufacturers listed in the 2008 Federation of Malaysian Manufacturers Directory. A cross- sectional study was conducted using a structured questionnaire to obtain responses from the manufacturers. A two-way ANOVA shows that only the age of firms is a significant moderator in the relationship between competitive advantage and performance, and that this relationship is stronger for older firms. The size of firms does not significantly moderate the relationship between competitive advantage and performance. Despite the non-significant moderating effect of firms' size, overall, this study provides empirical support for the Resource-Based View (RBV of Malaysian manufacturers regarding the issue of competitive advantage.

  6. What is the relationship between diversity and performance? A study about the relationship between the proportion of people with disabilities in the productivity of Brazilian firms

    Directory of Open Access Journals (Sweden)

    Luciana Carvalho de Mesquita Ferreira

    2016-06-01

    Full Text Available Purpose – This study aims to analyze the relationship between greater participation of people with disabilities in Brazilian firms and productivity as a performance indicator. Design/methodology/approach – To test the relationship between the proportion of PwD and the productivity of Brazilian firms, we used regression analysis with panel data and a dataset of public information from 46 firms for years 2010 and 2011. Findings – There was no statistical evidence stating that a greater proportion of people with disabilities in the workforce has a negative (or positive relationship with the productivity of Brazilian firms. Conversely, a positive relationship between a greater proportion of people with disabilities and productivity was found amongst firms that present greater social commitment. Originality/value – These results indicate the contingent character associated with diversity management, and that the adoption of social practices by Brazilian firms can be an important mechanism for the management of diversity and inclusion.

  7. Institutional investors, corporate governance, and earnings management around merger: evidence from French absorbing firms

    Directory of Open Access Journals (Sweden)

    Mouna Njah

    2013-12-01

    Full Text Available This paper examines the association between institutional ownership and the earnings management behavior of some French absorbing firms. Using a sample of 76 French mergers and absorptions concluded over the period ranging from 2000 to 2010, we undertake to present some empirical evidence highlighting that absorbing-firms manipulate earnings relevant to the year preceding the merger-offer in the presence of institutional cross-holding. However, the presence of active institutions turns out to limit the managerial accruals discretion. The monitoring role exerted by the active-institutional investors does restrict the opportunities of earnings management around mergers and acquisitions. Further analyses suggest that the average value of discretionary accruals with regards to the absorbing firms proves to be influenced by the nature of merger deal (takeover vs. restructuring.

  8. Performance measurement of insurance firms using a two-stage DEA method

    Directory of Open Access Journals (Sweden)

    Raha Jalili Sabet

    2013-01-01

    Full Text Available Measuring the relative performance of insurance firms plays an important role in this industry. In this paper, we present a two-stage data envelopment analysis to measure the performance of insurance firms, which were active over the period of 2006-2010. The proposed study of this paper performs DEA method in two stages where the first stage considers five inputs and three outputs while the second stage considers the outputs of the first stage as the inputs of the second stage and uses three different outputs for this stage. The results of our survey have indicated that while there were 4 efficient insurance firms most other insurances were noticeably inefficient. This means market was monopolized mostly by a limited number of insurance firms and competition was not fare enough to let other firms participate in economy, more efficiently.

  9. Essays on Financing and Performance: The role of firms, banks and boards

    NARCIS (Netherlands)

    P.T. Fliers (Philip)

    2016-01-01

    markdownabstractThe way firms and their boards interact with their shareholders or financiers is a difficult balancing act. How firms, banks and board fulfil their role has a significant impact on corporate financing decisions and performance. In three studies, this dissertation combines studies in

  10. Firm efficiency, industry performance and the economy : Three-way decomposition with an application to Andalusia

    NARCIS (Netherlands)

    Amores, A.F.; ten Raa, T.

    2014-01-01

    An economy may perform better because the firms become more efficient, the industries are better organized, or the allocation between industries is improved. In this paper we extend the literature on the measurement of industry efficiency (a decomposition in firm contributions and an organizational

  11. Labour productivity in Europe: allocative efficiency of labour or performance of firms?

    OpenAIRE

    BERTHOU, A.; SANDOZ, C.

    2014-01-01

    This paper examines the impact of allocative efficiency of labour in firms and of individual firm performance on labour productivity at the sector level for several European countries. It uses data recently collected by the Competitiveness Research Network (CompNet).

  12. Alliances and the innovation performance of corporate and public research spin-off firms

    NARCIS (Netherlands)

    Hagedoorn, John; Lokshin, Boris; Malo, Stéphane

    2016-01-01

    We explore the innovation performance benefits of alliances for spin-off firms, in particular spin-offs from either other firms or from public research organizations. During the early years of the emerging combinatorial chemistry industry, the industry on which our empirical analysis focuses, spin-o

  13. Predictors of organisational performance in small and medium-sized professional service firms

    NARCIS (Netherlands)

    Glunk, Ursula; Wilderom, Celeste P.M.

    1998-01-01

    The paper sets out our theoretical and empirical approach to delineating predictors of stakeholder performance in medium-sized computer service firms. It combines a resource-based approach with recent insights from the literature on small and medium-sized firms, professional service, and computer-se

  14. Do Services differ from Manufacturing? The Post-Entry Performance of Firms in Dutch Services

    NARCIS (Netherlands)

    D.B. Audretsch (David); L. Klomp (Luuk); A.R. Thurik (Roy)

    1998-01-01

    textabstractA large literature has emerged focusing on the post-entry performance of firms and, in particular, on the links between firm growth, survival, size and age. While these studies have resulted in findings that are sufficiently consistent as to constitute Stylized Facts, virtually all of

  15. An exploratory study on firm performance during the credit crunch: what do bankers think?

    NARCIS (Netherlands)

    van der Meer, P.O.; Grift, Y.K.

    2012-01-01

    This paper describes a qualitative study into what bankers think the main reason is for some firms to perform better than other firms during the 2008/2009 credit crunch. The Delphi technique, combined with the use of Fleiss’ Kappa to rank the collective outcome, is used to find testable hypotheses f

  16. The effect of the degree of foreign ownership on firms' performance

    Directory of Open Access Journals (Sweden)

    Hintošová Aneta Bobenič

    2016-03-01

    Full Text Available A large number of studies have compared the performance of foreign-owned and domestic firms. However, only a limited number of studies have investigated the effect of the degree of foreign ownership on a firm's performance. We attempt to fill this gap in the literature by conducting research that distinguishes not only between domestic and foreign-owned firms, but also between wholly and partly foreign-owned firms. We also examine the possible non-linearity of the performance-ownership relationship. We divide the firms in our study into three groups by their ownership - domestic, foreign, and joint ventures. We use a regression analysis to explore whether foreign ownership influences the firms' performance, measured by several variables such as profitability, innovation performance (measured by gross expenditures on research and development activities, numbers of employees involved in research and development, production, value added, leverage and net working capital intensity. The results of our research indicate that there is a statistically significant difference in firms' performance as a result of foreign ownership in all variables except the number of research and development employees and leverage. Moreover, we show that foreign ownership and performance are linked by an inverted U-shaped relationship. A firm’s performance increases with greater foreign ownership up to the range of 61-65 %, and declines thereafter.

  17. Entrepreneurial Orientation: The Dimensions' Shared Effects on Explaining Firm Performance

    DEFF Research Database (Denmark)

    Lomberg, Carina; Urbig, Diemo; Stockmann, Christoph;

    2016-01-01

    , and risk taking—into parts that are attributable to unique variations in these dimensions (unique effects) and those attributable to covariation between these dimensions (shared effects). By demonstrating the empirical relevance of unique, bilaterally shared, and commonly shared effects in a heterogeneous...... sample of low-tech, high-tech, and multi-sector firms, we consolidate existing conceptualizations of EO and propose an extension of the extant theoretical views of the construct....

  18. Diversification Strategies and Firm Performance: A Sample Selection Approach

    OpenAIRE

    Santarelli, Enrico; Tran, Hien Thu

    2013-01-01

    This paper is based upon the assumption that firm profitability is determined by its degree of diversification which in turn is strongly related to the antecedent decision to carry out diversification activities. This calls for an empirical approach that permits the joint analysis of the three interrelated and consecutive stages of the overall diversification process: diversification decision, degree of diversification, and outcome of diversification. We apply parametric and semiparametric ap...

  19. On the importance of forest assets for micro-firm performance

    Directory of Open Access Journals (Sweden)

    Katarina Haugen

    2013-08-01

    Full Text Available Business start-ups are on the increase, a development which is accompanied by hopes that these new firms will generate a potential for, e.g., local and regional development and a strengthening of local labour markets as well as the national economy. However, the long-term performance and viability of new firms are often rather poor. This research aims to analyse the importance of access to assets in the form of forest holdings for the performance of Swedish micro-firms. The analyses are based on official register data and fixed-effects panel regression modelling. A hypothesis is that a firm whose owner also possesses forest holdings is more viable thanks to the different resources (in the form of capital from logging or mortgaging, or non-pecuniary other values the forest holdings may provide, and which possibly contribute to the firm’s economic stability and resilience to economic fluctuations. From a general point of view, we find support for the hypothesis that forest assets positively and significantly influence firm performance in terms of earnings before interest and taxes (EBIT, but not in terms of value added. Access to forest assets is never detrimental to firm performance, although it does not have a significant positive effect in all sub-categories of entrepreneurs based on different combinations of age, gender and firm type. Particularly, the economic performance of private firms run by older men benefits from resources stemming from their forest holdings. No significant effects were found for female entrepreneurs or for limited companies. As regards regional variations, firms located outside the metropolitan regions – as compared to those at the top of the urban hierarchy – are likely to perform better, thus indicating that local development may benefit from resource transfers from the forest sector to micro-firms engaged in non-primary activities.

  20. Partnership Versus Public Ownership of Accounting Firms: Exploring RelativePerformance, Performance Measurement and Measurement Issues

    Directory of Open Access Journals (Sweden)

    Mark E Pickering

    2012-09-01

    Full Text Available Despite theoretical arguments that partnerships are the most efficient ownership form for professional service firms (PSFs, PSFs are increasingly moving to other ownership structures, such as publicly listed companies (PLCs. Research on the comparative performance of PSF, PLCs and partnerships is sparse with conflicting results suggesting that some segments of PSFs are moving to a less efficient form. This study explores the performance of two Australian accounting PLCs compared to a sample of similar sized mid tier accounting firms. The accounting PLCs achieved substantially higher revenue growth rates but lower productivity than the partnership sample. Measurement issues were identified in the use of closing resource numbers and different treatment of reporting merger and acquisition revenues which may partially explain the underperformance of publicly owned PSFs in prior studies. The need for research at a more detailed level exploring the market and service focus, organisational structures, resources utilised and resource costs across different PSF ownership forms is suggested.

  1. Corporate Social Performance and Corporate Financial Performance: A Link for the Indian Firms

    Directory of Open Access Journals (Sweden)

    Rupal Tyagi

    2013-03-01

    Full Text Available The present study addresses the issue of the relationship between Corporate Social performance and corporate Financial Performance in Indian context under good management theory. The study used S&P ESG India Index as a proxy of CSP/ CSR (Corporate social performance or Corporate Social Responsibility of Indian firms for the first time over the 2005–2011 periods. We designed econometric models and controlled industry specific attributes and performed Weighted Least Square method for the analysis. Overall results show neutral though modest negative relationship between the CSP and CFP which eventually informs that if there would be any relationship, it would be negative.

  2. Technological Intensity of Sectors, Size of the Firms and Competencies of Network Evidence from French Industrial Firms

    Institute of Scientific and Technical Information of China (English)

    MUNIER Francis

    2006-01-01

    The aim of this article is to stress the importance of competencies to build network in the innovation process. Innovation is not only R&D but is often supporting by networks and relations that differ according to the size of the firm and the sector. We propose an empirical analysis, based on logit model, for French industrial firms. It appears that size and technological intensity of the sector affect positively the detention of networking competencies.

  3. HUMAN RESOURCE MANAGEMENT BEST PRACTICES AND FIRM PERFORMANCE: A UNIVERSALISTIC PERSPECTIVE APPROACH

    Directory of Open Access Journals (Sweden)

    Loo-See Beh

    2013-11-01

    Full Text Available The universalistic perspective of human resource management practices perceives that a set of practices can achieve competitive advantage and firm performance. This study sought to investigate the relationship between best human resource practices and firm performance. A descriptive survey research design was used to gather primary data using self-administered questionnaire. The study population (n=312 was comprised of non-executives, executives, managers, and top management from seven major insurance firms at headquarters in the Klang Valley, Malaysia. The study found that performance appraisal, internal communication, SHRM alignment in the organization, and career planning were the human resource management best practices.

  4. MANAGEMENT OF THE WORKING CAPITAL AND FIRM PERFORMANCE IN THE ROMANIAN PHARMACEUTICAL SECTOR

    Directory of Open Access Journals (Sweden)

    LAURA RAISA MILOŞ

    2014-12-01

    Full Text Available The objective of the study is to reveal the connection between working capital and firm performance, in the case of some selected Romanian pharmaceutical companies, listed on Bucharest Stock Exchange. Regression analysis was performed in order to check our hypothesis. The main conclusion of our study is that there is a negative, but weak relationship between working capital and firm performance. In other words, the shorter the period between production and sale of products, the larger firm’s profitability.

  5. The Effectiveness and Economic Efficiency in the Context of Performance Management at the Firm Level

    Directory of Open Access Journals (Sweden)

    Mihaela-Cristina ONICA

    2012-11-01

    Full Text Available Considering that firm performance is incomplete without addressing associated risk to fulfill it, the main objective of this research is to underline the management contribution to the performance and risk of the analyzed enterprise. A detailed financial situation analysis, which are employing annual financial analysis procedures, underling the performance and risks influencing factors, are considering one starting point for addressing the issue. The introduced variables are insuring a whole vision of firm activity and an appropriate strategy for results significance.

  6. The Relationship between Human Resource Practices and Firm Performance in Iran

    Directory of Open Access Journals (Sweden)

    Davood Gharakhani

    2013-04-01

    Full Text Available This study examines the role of Human Resource practices on Firm Performance in Iran. This study uses regression analysis to test the hypotheses. The research uses a sample of 65 firms surveyed in Qazvin, Iran. The findings suggested that Training, Compensation, Performance appraisal and Participation are positively related the firms’ performance. Implications of the findings, potential limitations of the study and directions for future research were further discussed.

  7. Firm Size, Ownership and Performance in the Malaysian Palm Oil Industry

    OpenAIRE

    Bala Ramasamy; Darry Ong; Yeung, Matthew C.H.

    2005-01-01

    The objective of this study is to analyse the effects of market structure components and other performance measures to better understand the dynamics and determinants of performance within the Malaysian palm oil sector. In particular, we consider the effects of firm size and firm ownership on the level of profitability in this sector. Our findings suggest that size is negatively related to performance while privately owned plantation companies are more profitably managed. These results suppor...

  8. Innovation field orientation and its effect on innovativeness and firm performance

    DEFF Research Database (Denmark)

    Salomo, Søren; Talke, Katrin; Strecker, Nanja

    2008-01-01

    New product development (NPD) has become a prime source for gaining a competitive edge in the market. Although a large body of research has addressed the question of how to successfully manage individual innovation projects, the management of a firm's new product portfolio has received comparably...... portfolio. This again is highly appreciated by investors and results in a superior stock market evaluation of these firms.......New product development (NPD) has become a prime source for gaining a competitive edge in the market. Although a large body of research has addressed the question of how to successfully manage individual innovation projects, the management of a firm's new product portfolio has received comparably...... field orientation is a phenomenon that prevails in practice. In addition, all defining aspects of this orientation have either direct or indirect effects on firm performance. Hence, those firms that deliberately specify and manage innovation fields have a more innovative product portfolio and are more...

  9. LARGE SHAREHOLDERS' BEHAVIOUR IN RIGHTS OFFERINGS AND SUBSEQUENT FIRM PERFORMANCE1

    Institute of Scientific and Technical Information of China (English)

    HongqiYuan

    2004-01-01

    This paper examines large shareholders' behaviour in rights offerings and its relation to firm performance following rights offerings. Large shareholders seem to take future profitability into account when they make their subscription decisions in rights offerings, and firms with higher subscription rates by large shareholders exhibit higher growth potential. In addition,share price revisions are positively related to subscription rates by large shareholders. Subsequent to rights offerings, firms with higher subscription rates by large shareholders report higher accounting performance measures. I also find that the market reacts more positively to subscriptions by cash than subscriptions by real assets.

  10. Top management team heterogeneity and firm performance: An empirical research on Chinese listed companies

    Institute of Scientific and Technical Information of China (English)

    ZHANG Ping

    2007-01-01

    An empirical study of the 2001-2002 data from 356 Chinese companies listed in the Shanghai and Shenzhen stock exchanges indicates that within the social context of China the characteristics of a firm's top management team have a different impact on firm performance from those of foreign countries. Also, the tenure heterogeneity and functional experience heterogeneity of the top management team are inversely related to firm performance. This paper analyzes and discusses the findings in detail and points out areas for future research.

  11. Co-alignment between Environment Risk, Capital Structure, Growth and High-tech Firm Performance

    Institute of Scientific and Technical Information of China (English)

    LI Yan-xi; BAO Shi-ze

    2007-01-01

    To examine whether there is a co-alignment relationship between environment risk, capital structure, growth and high-tech firm performance, the environment risk was measured from the viewpoint of environment change, the long-term debt ratio was adopted as the measure of the capital structure, and the total asset growth and sales growth were chosen to measure the growth of high-tech firms. Regression analysis shows that there is a significant relationship between environment risk, growth and performance of hightech firms measured by the return on equity and cash flow, respectively.

  12. Corporate control mechanisms, voting and cash flow rights, and the performance of Dutch firms

    NARCIS (Netherlands)

    Chirinko, Robert; Garretsen, Harry; Sterken, Elmer

    2003-01-01

    This paper exploits several unique institutional features in the Dutch system of corporate control to examine the relations among investor protections, concentrated ownership, and firm performance. Four conclusions emerge. First, controlling shareholders do not appear to ameliorate corporate

  13. Information Technology, Human Resources Management Systems and Firm Performance: An Empirical Analysis from Spain

    National Research Council Canada - National Science Library

    Pilar Ficapal-Cusí; Joan Torrent-Sellens; Pilar Curós-Vilà

    2011-01-01

    ...) to examine the relationship between IT use, innovative human resources management systems (IHRMS) and firm’s performance. Using factor and cluster analysis, we find that only one-third of Catalan firms use IHRMS...

  14. HUMAN RESOURCE MANAGEMENT BEST PRACTICES AND FIRM PERFORMANCE: A UNIVERSALISTIC PERSPECTIVE APPROACH

    OpenAIRE

    Loo-See Beh; Leap-Han Loo

    2013-01-01

    The universalistic perspective of human resource management practices perceives that a set of practices can achieve competitive advantage and firm performance. This study sought to investigate the relationship between best human resource practices and firm performance. A descriptive survey research design was used to gather primary data using self-administered questionnaire. The study population (n=312) was comprised of non-executives, executives, managers, and top management f...

  15. Evidence of mispricing for South African listed R&D firms contributed by accounting conservatism

    Directory of Open Access Journals (Sweden)

    Tai-Lin G. Chen

    2017-02-01

    Full Text Available Purpose: The purpose of this research is to investigate the impact of capitalization of research and development on the valuation of equities for listed firms in South Africa. Design/methodology/approach: 15 years of financial data (2000 to 2014 was collected, and portfolios with similar price-to-book and market size ratios were formed to find any evidence of any post-investment excess returns and the association to the level of research and development investment. Portfolios were re-formed and annually ranked by their research and development intensity relative to sales. In addition, we looked at the changes in excess returns after adjusting the book value as a result of capitalizing R&D expenditure, to see if the distortion imposed by expensing R&D contributed to the under-valuation of firms that invest in R&D. Findings: The results indicate that firms that invest in research and development are systematically under-valued. We found no evidence of any positive association between the returns and investment levels, but rather found evidence of the glamour stock phenomenon in highly intensive research and development firms. Research limitations/implications: The sample data is limited to listed firms in South Africa, and for firms with intermittently omitted R&D on their financial report, we have assumed that such expenditure is zero for the non-disclosed period for the purpose of capitalization and amortisation. Listed firms whose main focus is on building intangible assets, are relatively few, hence our research is descriptive in nature. Practical implications: This paper highlights the commercial significance of valuing the long-term benefits of research and development. Capitalizing the development phase as afforded by the IASB lacks standardization, and as such, inconsistencies arise in the earnings reflected on companies’ financial statements. For investors though, highly intensive R&D firms should be avoided as these earn negative

  16. Human resources management and firm performance: The differential role of managerial affective and continuance commitment.

    Science.gov (United States)

    Gong, Yaping; Law, Kenneth S; Chang, Song; Xin, Katherine R

    2009-01-01

    In this study, the authors developed a dual-concern (i.e., maintenance and performance) model of human resources (HR) management. The authors identified commonly examined HR practices that apply to the middle manager level and classified them into the maintenance- and performance-oriented HR subsystems. The authors found support for the 2-factor model on the basis of responses from 2,148 managers from 463 firms operating in China. Regression results indicate that the performance-oriented HR subsystems had a positive relationship with firm performance and that the relationship was mediated by middle managers' affective commitment to the firm. The maintenance-oriented HR subsystems had a positive relationship with middle managers' continuance commitment but not with their affective commitment and firm performance. This study contributes to the understanding of how HR practices relate to firm performance and offers an improved test of the argument that valuable and firm-specific HR provide a source of competitive advantage. (PsycINFO Database Record (c) 2009 APA, all rights reserved).

  17. Financial liberalisation and the dynamics of firm leverage in a transitional economy: evidence from South Africa

    Directory of Open Access Journals (Sweden)

    Chimwemwe Chipeta

    2012-06-01

    Full Text Available This paper examines the dynamics of corporate capital structures for listed non-financial firms in South Africa. The dynamic models of capital structure have been utilised to document several findings of empirical significance. First, transaction costs reduce dramatically in the post liberalisation regime, and the associated speed of adjustment is more pronounced, and statistically significant for the post liberalisation epoch. Second, financial liberalisation has a significant impact on the capital structure speed of adjustment. Third, the results confirm most of the theoretical predictions of capital structure theories; however, the relationship is more significant in the post liberalised regime. Finally, new evidence has been revealed on what determines the debt maturity structure of firms in a transitional economy.

  18. Corporate governance determinants: the firm-level evidence from transitional country, Ukraine

    Directory of Open Access Journals (Sweden)

    Vitaliy Zheka

    2007-01-01

    Full Text Available This paper attempts to empirically investigate the determinants of choices of corporate governance practices by corporations in a transition market. The study offers firm-level evidence benefiting from unique financial and governance data on Ukraine. In particular, we analyze the factors that affect overall level as well as individual elements of corporate governance. We consider such governance elements as shareholder rights, transparency, board independence, chairman independence and ownership. Overall we found that regulatory, industry and firm level factors are important, which is consistent with previous literature for other countries. Combining our results with the results of Zheka (20063 we conclude that it is possible for the government to implement and enforce better corporate governance practices in the economy that would make Ukrainian enterprises more attractive for foreign investment.

  19. Gauging a Firm's Innovative Performance Using an Integrated Structural Index for Patents

    Directory of Open Access Journals (Sweden)

    Xiaojun Hu

    2016-03-01

    Full Text Available Purpose: In this contribution we try to find new indicators to measure characteristics of a firm's patents and their influence on a company's profits. Design/methodology/approach: We realize that patent evaluation and influence on a company's profits is a complicated issue requiring different perspectives. For this reason we design two types of structural h-indices, derived from the International Patent Classification (IPC. In a case study we apply not only basic statistics but also a nested case-control methodology. Findings: The resulting indicator values based on a large dataset (19,080 patents in total from the pharmaceutical industry show that the new structural indices are significantly correlated with a firm's profits. Research limitations: The new structural index and the synthetic structural index have just been applied in one case study in the pharmaceutical industry. Practical implications: Our study suggests useful implications for patentometric studies and leads to suggestions for different sized firms to include a healthy research and development (R&D policy management. The structural h-index can be used to gauge the profits resulting from the innovative performance of a firm's patent portfolio. Originality/value: Traditionally, the breadth and depth of patents of a firm and their citations are considered separately. This approach, however, does not provide an integrated insight in the major characteristics of a firm's patents. The Sh(Y index, proposed in our investigation, can reflect a firm's innovation activities, its technological breadth, and its influence in an integrated way.

  20. The hidden cost of investment: The impact of adjustment cost on firm performance measurement and regulation

    OpenAIRE

    Nick, Sebastian; Wetzel, Heike

    2014-01-01

    In this study, we address a major problem in the measurement of firm performance and the regulation of natural monopolies, namely the intertemporal character of long-term investment decisions. In specific, we focus on the impact of adjustment costs of investments on estimates of firms' technical and cost inefficiency. We apply nonparametric dynamic data envelopment analysis to investigate the dynamic inefficiency of electricity distribution and transmission companies in the US during the year...

  1. Linking firms conduct and performance in a globalised market: the mediating role of innovation

    OpenAIRE

    Di Foggia, G; Lazzarotti, V

    2014-01-01

    Based on an international survey of 674 travel services related firms based in Italy, France, UK, Germany and Spain, this paper analyses the effects of business orientation, marketing and communication skills, ICT and HR on performance. This study is based on a mixed methods research relying on both theoretical assumptions and statistical techniques and methodologies, precisely Structural Equation Modelling (SEM). Results show that new service development (NSD) and innovation oriented firms t...

  2. Exploring the Impact of High Performance Work Systems in Professional Service Firms: A Practices-Resources-Uses-Performance Approach

    OpenAIRE

    Fu, Na

    2013-01-01

    This article aims to explore how a system of human resource management (HRM)practices influence firm performance in a professional service context. It integrates multidisciplinary theory and research findings. The system of HRM practices are labeled as high performance work systems (HPWS). In this article, it is proposed that HPWS influence firm performance through two steps: (1) by creating resources of human, social and organizational capital; and (2) by efficient uses of these resource...

  3. Competition, Group Identity, and Social Networks in the Workplace: Evidence from a Chinese Textile Firm

    OpenAIRE

    Kato, Takao; Shu, Pian

    2011-01-01

    Using data on team assignment and weekly output for all weavers in an urban Chinese textile firm between April 2003 and March 2004, this paper studies a) how randomly assigned teammates affect an individual worker's behavior under a tournament-style incentive scheme, and b) how such effects interact with exogenously formed social networks in the manufacturing workplace. First, we find that a worker's performance improves when the average ability of her teammates increases. Second, we exploit ...

  4. The Impact of Restaurants’ Green Supply Chain Practices on Firm Performance

    Directory of Open Access Journals (Sweden)

    Jun-Zhi Chiu

    2016-01-01

    Full Text Available This study investigated crucial green supply chain management (GSCM practice dimensions and firm performance based on restaurants firms in Taiwan. On the basis of a factor analysis, four green supply chain management dimensions were identified: corporate environment policy, green packing, green product, and economic transport. This study investigated crucial GSCM practice dimensions (including corporate environment policy, packaging waste, economic transport, and product recycling, green capability and organizational performance. The results shown: first, green practices in restaurants in Taiwan have an indirect effect on firm performance through green capability; second, when the ability of suppliers of green and green capability is at a higher degree, it will contribute to organizational performance, namely environmental and economic performance. Finally, green practices could be a key driver of green capability and it should be a priority in restaurants.

  5. Firms' contribution to the internal and external employability of older employees: evidence from Germany.

    Science.gov (United States)

    Tisch, Anita

    2015-03-01

    In the examination of older employees' employability, one can distinguish between internal and external employability. Internal employability can be measured by individual employment stability, and external employability occurs when employees replace one employment relationship with another. Most studies focus on the personal skills and characteristics that are necessary to maintain employability. However, external factors also contribute to individual employability. Therefore, this study examines which organisational attributes of firms contribute to older employees' employability in Germany. Taking firm and individual characteristics into account, the results of discrete-time survival models show that in specific organisational structures, older employees have higher internal employability. Accordingly, older employees are more likely to maintain employment in the service sector and in recruiting organisations facing (skilled) labour shortages. However, the results also indicate that financially investing organisations facilitate early labour market exits. With regard to older employees' external employability, the results show only little evidence indicating an association between organisational attributes of firms and the likelihood of job change.

  6. Association between firm characteristics and corporate voluntary disclosure: Evidence from Turkish listed companies

    Directory of Open Access Journals (Sweden)

    Ali Uyar

    2013-12-01

    Full Text Available Purpose: This paper empirically investigates the factors that impact voluntary information disclosure level of Turkish manufacturing companies listed in the Istanbul Stock Exchange (ISE. Design/methodology/approach: The methodology of the study is content analysis of annual reports of the corporations listed on the ISE for the year 2010. Findings: The findings provide evidence of a positive association between voluntary information disclosure level and the variables such as firm size, auditing firm size, proportion of independent directors on the board, institutional/corporate ownership, and corporate governance. However, leverage and ownership diffusion were found to have negative significant association with the extent of voluntary disclosure. The remaining variables, namely, profitability, listing age, and board size were found to be insignificant. Research limitations/implications: Since this study was conducted solely on listed manufacturing companies, the results may not be generalizable to non-listed and non-manufacturing industries. The study has some implications for firms, auditors, investors, and regulators. All these parties play an important role in improving the transparency and disclosure practices of corporations. Originality/value: We extend previous research on the determinants of voluntary information disclosure in the emerging market context.

  7. Examining the scope of multibusiness health care firms: implications for strategy and financial performance.

    Science.gov (United States)

    Noorein Inamdar, S

    2007-08-01

    of services and investing in a variety of new noncore business opportunities including many for-profit ventures). Significant differences in financial performance among the strategies were found when controlling for payer reimbursement conditions. Specifically, in an unfavorable condition with high Medicaid and low commercial insurance, the Mission Based strategy performs significantly worse while the Entrepreneur strategy performs surprisingly well, in comparison with the other strategies. Findings suggest: (a) scope can be used to classify a large number of multibusiness health care firms into a taxonomy representing a small group of distinct corporate strategies, which are recognizable by senior management in the health care industry, (b) no single strategy dominates in performance across different payer profiles, instead there appears to be complementarities or fit between strategy and payer profiles that determines which firms perform well and which do not under different conditions, and (c) senior management of nonprofit health care firms are cross-subsidizing unprofitable patient care through ownership of nonpatient care businesses including for-profit ventures.

  8. The Role of Collaborative Advantage for Analyzing the Effect of Supply Chain Collaboration on Firm Performance

    Directory of Open Access Journals (Sweden)

    Huriye Yılmaz

    2017-06-01

    Full Text Available Collaboration plays a critical role in a globalized, rapidly changing and competitive world, as the resources of an individual company are limited to compete with the challenges of the era. Supply chain collaboration is defined as a partnership process where two or more autonomous firms work closely to plan and execute supply chain operations towards common goals and mutual benefits. Supply chain collaboration results in collaborative advantage, the strategic benefits gained over competitors through supply chain partnering, and these both increase firm performance of the partners. In this research, the effect of supply chain collaboration on firm performance has been investigated by distributing a survey to Turkish companies which have been responded by 150. The role of collaborative advantage in this relation has also been measured. The results of the research suggest that there is a positive correlation between supply chain collaboration and collaborative advantage. The results also prove that supply chain collaboration positively affects firm performance. It is also proven that the mediator role of collaborative advantage on the effect of supply chain collaboration on firm performance is statistically significant.

  9. Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms

    NARCIS (Netherlands)

    Verhees, F.J.H.M.; Meulenberg, M.T.G.

    2004-01-01

    Most research on market orientation, innovation and performance is related to big enterprises and small and medium-sized enterprises (SMEs). In this study a model is developed to investigate the combined effect of market orientation and innovativeness on product innovation and company performance,

  10. Market Orientation, Innovativeness, Product Innovation, and Performance in Small Firms

    NARCIS (Netherlands)

    Verhees, F.J.H.M.; Meulenberg, M.T.G.

    2004-01-01

    Most research on market orientation, innovation and performance is related to big enterprises and small and medium-sized enterprises (SMEs). In this study a model is developed to investigate the combined effect of market orientation and innovativeness on product innovation and company performance, f

  11. Does R&D investment under corporate social responsibility increase firm performance?

    Directory of Open Access Journals (Sweden)

    Yu-Chun Lin

    2017-05-01

    Full Text Available Research and development (R&D investment affects firms’ growth and reflects their investment energy. However, it is recorded as an expense in financial statements, according to generally accepted accounting principles (e.g., International Financial Statements Standards. This study examines whether firms’ R&D investment has a positive effect on their performance, when they engage in corporate social responsibility. The author focuses on firms that have earned corporate social responsibility awards from Global Views Magazine, Common Wealth Magazine, and the Taiwan Institute for Sustainable Energy in order to measure firms’ levels of corporate social responsibility engagement. Tobin’s Q is used as a proxy for firm performance. Because corporate social responsibility engagement is not mandatory in Taiwan, the Heckman two-stage process is used to control for an endogeneity bias. In the first stage, logit regression is employed, using a dummy variable as a proxy for a firm’s social responsibility engagement. In the second stage, the impact of corporate social responsibility on firm value is estimated by regressing Tobin’s Q on various governance and firm characteristics and on a dummy variable for social responsibility engagement. Based on all public traded companies in Taiwan for the period 2005 – 2014, and after controlling for an endogeneity bias, it is found that R&D investment is positively associated with Tobin’s Q, but only when firms engage in corporate social responsibility. Therefore, an investment strategy that meets corporate social responsibility objectives benefits firm performance. The empirical results provide policy implications for firm R&D investment and corporate social responsibility implementation.

  12. International Diversification, Product Strategy, And Firm Value:Evidence From Korea

    OpenAIRE

    Donseung Choi; Eunho Cho

    2014-01-01

    Existing studies showed inconsistent results for the relationship between international diversification (ID) and firm value. Thus, we primarily examine whether each MNCs product strategy moderates the relationship between ID and firm value. The results show that MNCs product strategy moderates the relationship between ID and firm value as measured by Tobins Q. Specifically, a positive relationship exists between ID and firm value in the firm group pursuing a cost leadership strategy, whereas ...

  13. External factors influencing the environmental performance of South African firms

    CSIR Research Space (South Africa)

    Peart, R

    2001-01-01

    Full Text Available This article reviews the external factors that influence environmental performance of companies in South Africa, drawing on international and local literature. After considering factors within the natural, social, economic and institutional...

  14. Dashboard and Firms Performance Optimization Using Piloting Indicators

    Directory of Open Access Journals (Sweden)

    Sorinel Capusneanu

    2006-07-01

    Full Text Available Can we analyze the enterprise performances upon the pilot indicators? The answer is completed by analyzing and interpreting the suggested indicators. Finally, these indicators will form the enterprise dashboard, which the management will take the right decisions. The dashboard represents the selection and presentation way of pilot indicators which permit tendencies visualization leaving from enterprise’s followed objectives. Through analyses and interpretation of pilot indicators, it is generating actions which contribute to enterprise’s improvement performances.

  15. How Firms in Turbulent Environments Measure Strategic Performance

    OpenAIRE

    Barrows, Edward

    2014-01-01

    This thesis presents the findings from two case study examinations of strategic performance measurement systems within two turbulent environmental contexts: the U.S. security software industry and the U.S. health care industry. Despite a three-­‐decade emphasis on performance measurement research, little empirical work has been carried out inside turbulent settings—contexts characterized by rapid change, high levels of instability and complex configurations among environmental variables. T...

  16. The influence of chief eecutive officer reputation on performance of public firms in atin merica

    Directory of Open Access Journals (Sweden)

    Marcia Martins Mendes De Luca

    2017-01-01

    Full Text Available One of the control mechanisms at the disposal of shareholders is based on the reputation of corporate executives. A good personal reputation tends to discourage opportunistic behaviors and reduce limited rationality costs. In light of agency theory and transaction cost economics theory, the reputation of corporate executives is believed to not only reduce such costs but to benefit the reputation of the firm, potentially improving corporate performance. In this study we investigated the effect of the reputation of the chief executive officer (CEO on corporate performance in 46 Latin American public firms traded on the New York stock market as of 31 December 2013. The findings were submitted to descriptive analysis, testing of differences between means, Pearson correlation coefficients and multiple linear regression. Among our findings, i media visibility had a favorable effect on CEO reputation, ii on the average, CEO reputation was better in firms from Brazil than in firms from other Latin American countries, and iii the reputation of the CEO had a significant and positive impact on corporate performance. Our results confirm the importance of choosing a CEO with a good reputation to head the firms of the sample.

  17. CEO Business Education and Firm Financial Performance: A Case for Humility Rather than Hubris

    Science.gov (United States)

    Lindorff, Margaret; Jonson, Elizabeth Prior

    2013-01-01

    Purpose: The purpose of this paper is to examine the relationship between CEO business education and firm financial performance. Design/methodology/approach: An analysis of the relationship between three-year and five-year shareholder return as measured by dividend and change in share price and CEO educational qualification was performed.…

  18. CEO Business Education and Firm Financial Performance: A Case for Humility Rather than Hubris

    Science.gov (United States)

    Lindorff, Margaret; Jonson, Elizabeth Prior

    2013-01-01

    Purpose: The purpose of this paper is to examine the relationship between CEO business education and firm financial performance. Design/methodology/approach: An analysis of the relationship between three-year and five-year shareholder return as measured by dividend and change in share price and CEO educational qualification was performed.…

  19. The Impact of Human Resource Practices and Organizational Citizenship Behaviors on Firm Performance

    Directory of Open Access Journals (Sweden)

    Davood Babaei

    2012-01-01

    Full Text Available Problem statement: The examination of organizational citizenship behaviors as the mediating variable through which human resource practices affect firm performance is still scarce. Approach: This study examined the mediation effects of organizational citizenship behaviors on the relationships between selected human resource practices and firm performance. The human resource practices studied were reward and performance appraisal practices and firm performance was studied in terms of quality of services. Data were collected from a sample of 179 branches of two banks in Tehran, Iran. The participants in this study included 176 managerial employees, 352 non-managerial employees and 871 customers. To achieve these objectives a mediation model was tested using structural equation modeling procedure to examine if the hypothesized model fit the data. Results: The results showed that organizational citizenship behaviors fully mediated the relationships between reward practices and quality of services and partially mediated the relationships between performance appraisal practices and quality of services. Conclusion/Recommendations: The findings of this study suggest that human resource practices play a critical role in enhancing employees organizational citizenship behaviors and firm performance. Organizational citizenship behaviors mediate the effects of reward and performance appraisal practices on service quality. To improve service quality, employers should improve reward and performance appraisal practices since these practices have an impact on employees organizational citizenship behaviors which in turn would affect service quality.

  20. Labour turnover and its effects on performance : an empirical test using firm data

    NARCIS (Netherlands)

    Glebbeek, A.C.; Bax, E.H.

    2002-01-01

    In this article we test the hypothesis that the relationship between labour turnover and the economic performance of the firm is bell-shaped: a turnover level too low has a negative effect and likewise does a level too high. Our analysis is based on economic performance data of 110 offices of a temp

  1. HOW DO DIFFERENT COORDINATION MECHANISMS BETWEEN NEW PRODUCT DEVELOPMENT AND MANUFACTURING INFLUENCE FIRM PERFORMANCE?

    DEFF Research Database (Denmark)

    Timenes Laugen, Bjørge; Acur, Nuran; Boer, Harry

    of understanding of how various coordination mechanisms work in different contexts. Using a survey consisting of data from 677 manufacturing firms from 19 countries worldwide, we test how coordination mechanisms relate to operational performance, and how context moderates these relationships or affects performance...

  2. The Construct Validation of Learning Organization and Its Influence upon Firm Performance in Mainland China

    Science.gov (United States)

    Li, Mingfei; Lu, Xiaojun

    2007-01-01

    This paper examines the applicability of the learning organization concept and its influence upon firm performance in mainland China. Based on the theoretical framework proposed by Watkins and Marsick, four dimensions of the learning organization instead of seven dimensions were identified. A balanced scorecard-based performance evaluation…

  3. Effect of Supply Chain Information Systems on Firm Performance: An Empirical Case Study

    Directory of Open Access Journals (Sweden)

    F. H. Kashani

    2017-04-01

    Full Text Available This study evaluates the effect of supply chain information systems on firm performance in IKAMCO as a empirical case study. For this purpose, The 132 IKAMCO employees selected by simple random sampling responded to a questionnaire. Content validity of the questionnaire has been confirmed by experts in this field; its reliability has been confirmed by using Cronbach's alpha and Fisher’s test. Kolmogorov-Smirnov test is used to ensure normality of the data obtained from questionnaire. The hypotheses are tested using SmartPLS software. Results show that the model is well fitted to the data. Findings show that a lean and agile supply chain is effective on supply chain performance and supply chain performance is effective on firm performance. Efficiency of information systems moderates the effect of lean supply chain on supply chain performance and firm performance. However, flexibility of information systems does not moderate the effect of agile supply chain on supply chain performance and firm performance.

  4. Strategic Adjustment Capacity, Sustained Competitive Advantage, and Firm Performance: An Evolutionary Perspective on Bird Flocking and Firm Competition

    National Research Council Canada - National Science Library

    Shou Chen; Shiyuan Wu; Chao Mao; Boya Li

    2017-01-01

    ..., the extent to which firms maintain or rely on the best operational capacity vector in history, and the ability to overcome the disadvantage while maintaining the advantage of the operational capacity...

  5. Linking culture, organizational, learning orientation and product innovation performance: the case of Ethiopian manufacturing firms

    Directory of Open Access Journals (Sweden)

    Beyene, K. T.

    2016-05-01

    Full Text Available Using formal survey data from textile and leather product manufacturing firms in Ethiopia, we investigate how the current national cultural setup (power distance, collectivism, masculinity and uncertainty avoidance is affecting organizational learning, orientation and product innovation performance. Further, we assess the moderating role of sector and ownership structure on the interrelationship. The result demonstrates that the current national culture setup is negatively affecting the learning and innovation activities of the firms in the country. It also shows that while sector type is neutral, ownership type significantly affects the interrelationship among culture, learning orientation and product innovation performance.

  6. Product modularity and its effects on firm performance

    DEFF Research Database (Denmark)

    Boer, Henrike Engele Elisabeth; Hansen, Poul H. Kyvsgård

    2013-01-01

    by assessing the level of 1) standardisation of a product portfolio’s modules (including functional specificity) and 2) standardisation of module interfaces (including decomposability). Furthermore, in order for the research community to move forward, performance effects need to be examined on a more...

  7. Does Tacit Knowledge Predict Organizational Performance? A Scrutiny of Firms in the Upstream Sector in Nigeria

    Directory of Open Access Journals (Sweden)

    Vincent I.O Odiri

    2016-02-01

    Full Text Available This paper examined tacit knowledge so as to see whether tacit knowledge when properly put to use can lead to improved performance by upstream sector firms in Nigeria. Knowledge as we believe, is very vital to both corporate entities and individuals. Knowledge encompasses both explicit and tacit. This paper focused on one aspect of knowledge – ‘tacit’ which is in the psyche or brain of the individual possessing it. Inspite of the central role it plays, tacit knowledge has been downplayed by most firms. However, we adopted a survey research design via questionnaires administered to 504 employees randomly selected from 3 different oil firms. The data obtained were analyzed using inferential statistics. Also, multi-collinearity diagnoses of tacit knowledge and organizational performance was performed. The result suggests that tacit knowledge is linearly correlated with organizational performance. This implies that tacit knowledge predicts organizational performance. This study is significant in that the findings would be useful to management of firms, as it divulge how tacit knowledge when properly harnessed can lead to increased performance. Most prior studies in this area were conducted in other countries, hence our study is one of the first in Nigeria that examined tacit knowledge and organizational performance.

  8. Do Cross-Listed Firms Report Better Social Responsibility Performance?

    Directory of Open Access Journals (Sweden)

    Liu Guangyou

    2017-01-01

    Full Text Available This paper investigates the corporate social responsibility (CSR disclosure of cross-listed companies in China, to bridge the gap between existent CSR literature and the literature on cross-listing. Mann- Whitney-U and Wilcoxon ranking tests document the traditional bonding effect regarding reported corporate financial performance. Furthermore, the test results and findings of this study extend the financial bonding effect to other dimensions of corporate responsibility. In addition to better economic returns to owners, the bonding effect marks better reported CSR performance for cross-listed companies in terms of pay raises for employees, creation of new jobs, desirable stock option plans for management, and increased input in environmental protection and energy-saving activities.

  9. Inventory Management Practices and Operational Performance of Flour Milling Firms in Lagos, Nigeria

    Directory of Open Access Journals (Sweden)

    Nsikan Efiok John

    2015-02-01

    Full Text Available This study examines inventory management practices of flour milling manufacturing firms and their effects on operational performance. Five flour milling manufacturing firms in Lagos were used for this study. Structured questionnaire was the major instrument for the collection of relevant primary data while descriptive statistics such as mean and standard deviation was deployed to analyzing the data gathered. The results obtained showed that exception of the large manufacturing companies, most of the medium-sized flour milling firms adopts different inventory management strategies from the scientific and best practice models. Their inventory management strategies and policies were rather based on factors such as changing level of customer demand, prevailing industry practices, forecast estimates and guesses, and available production capacity. Findings also revealed significant differences between the effective management of inventory and optimal operating performance. For instance, while firms that adopt best practice inventory management approaches reported efficiency in capacity utilization, increased service level, and reduced lead time, others with different strategies had minimal utilization of material resources. There is need for flour manufacturing firms to implement scientific inventory management models to adequately handle material shortages, product stock outs situations, component pile up and their associated penalties.

  10. The Relationship between entrepreneurial orientation, entrepreneurial competencies, entrepreneurial leadership, and firm performance: A proposed model

    Directory of Open Access Journals (Sweden)

    Chijioke Nwachukwu

    2017-06-01

    Full Text Available This study develops a conceptual model and propositions for researchers to explore the direct and indirect relationship between entrepreneurial orientation, entrepreneurial competencies, entrepreneurial leadership and firm performance. Authors searched various databases including ProQuest, EBSCOhost databases, Scopus for peer reviewed Journals, books, and other relevant publications on the subject. A conceptual review provides direction for researchers to empirically examine the direct relationships between entrepreneurial orientation (EO, entrepreneurial competencies (EC, and firm performance and the mediating effect of entrepreneurial leadership (EL in the relationship between EO, EC, and firm performance. We suggest the use of entrepreneurial orientation scale (EOS, The entrecomp framework (2016, Renko et al., 2015 entrepreneurial leadership styles scale (ENTRELEAD, and Santos & Brito (2012 subjective measurement model for firm performance for measurement of the constructs of EO, EC, EL and performance. For researchers and academics, the model provides a basis for further research by testing empirically the validity of the model. Testing of this model could provide a better understanding of the EO, EC constructs that better predicts strategic and financial performance.

  11. Using the OESP Framework to Explore the Performance of Large Firms Facing Globalisation: Findings from Interviews with Top Managers

    OpenAIRE

    Syed Manshor, Syed Mahadzir

    2006-01-01

    Adaptation is a crucial challenge on large firm performance, and an important theme in the strategy and organisation theory. This study develops and tests a dynamic perspective on strategic fit. However, research into large firms performance has been limited to frameworks that are linear, static and its coverage is too constricted. On the other hand, OESP concept looks more promising and covers the issues facing large firms performance internally and externally. However, the lack of understa...

  12. The structure of boards of directors and firm performance in Finnish banking : focus on size and gender diversity

    OpenAIRE

    Sääksmäki, Kasimir

    2015-01-01

    Banking and financial services in general are much regulated industries worldwide and therefore it is important to find out how the composition of boards of directors affects firm performance. Banking and finance sector has a remarkable role in financing other industries and households, which makes it a powerful industry. The recent banking crises have shown the consequences of weak firm performance, which has led to more interest on different factors and predictors behind firm performance in...

  13. The Effects of Strategic Orientations and Perceived Environment on Firm Performance

    Directory of Open Access Journals (Sweden)

    Farkas Gergely

    2016-03-01

    Full Text Available Among micro, small, and medium-sized firms located in Hungary, I conducted a survey examining the effects of entrepreneurial and learning orientations, and that of perceived environment on firm performance. I studied the perceptions of environmental turbulence and environmental hostility. Three dimensions were examined both in the case of entrepreneurial orientation (i.e., innovativeness, proactiveness, and risk taking and in the case of learning orientation (i.e., commitment to learning, shared visions, and open-mindedness. The effects of such dimensions on firm performance were analyzed with the path analysis (PLS-SEM method. In the course of the research, firm performance was divided into three dimensions: efficiency, growth, and profit. The possible effect of available financial resources was also taken into consideration. Results show that the availability of financial resources is relatively important, although it is connected only to the growth dimension of performance. Strategic orientations should be interpreted as multi-dimensional, and they have an effect on different performance dimensions. The research was cross-sectional and has implications for long-term strategic decisions.

  14. INTERNATIONAL BEHAVIOUR AND PERFORMANCE BASED ROMANIAN ENTREPRENEURIAL AND TRADITIONAL FIRM CLUSTERS

    Directory of Open Access Journals (Sweden)

    FEDER Emoke - Szidonia

    2015-07-01

    Full Text Available The micro, small and medium-sized firms (SMEs present a key interest at European level due to their potential positive influence on regional, national and firm level competitiveness. At a certain moment in time, internationalisation became an expected and even unavoidable strategy in firms’ future development, growth and evolution. From theoretical perspective, an integrative complementarily approach is adopted concerning the dominant paradigm of stage models from incremental internationalisation theory and the emergent paradigm of international entrepreneurship theory. Several researcher calls for empirical testing of different theoretical frameworks and international firms. Therefore, the first aim of the quantitative study is to empirically prove, the existence of various internationalisation behaviour configuration based clusters, like sporadic and traditional international firms, born-again global and born global firms, within the framework of Romanian SMEs. Secondly, within the research framework the study propose to assess different distinguishing internationalisation behavioural characteristics and patterns for the delimited clusters, in terms of foreign market scope, internationalisation pace and rhythm, initial and current entry modes, international product portfolio and commitment. Thirdly, internationalisation cluster membership and patterns differential influence and contribution is analysed on firm level international business performance, as internationalisation degree, financial and marketing measures. The framework was tested on a transversal sample consisting of 140 Romanian internationalised SMEs. Findings are especially useful for entrepreneurs and SME managers presenting various decisional possibilities and options on internationalisation behaviours and performance. These emphasize the importance of internationalisation scope, pace, object and opportunity seeking, along with positive influence on performance, indifferent

  15. Why reorganization of firms fails: evidence from Estonia. Summary: Saneerimismenetluse ebaõnnestumise põhjused Eestis

    Directory of Open Access Journals (Sweden)

    Oliver Lukason

    2013-09-01

    Full Text Available Although most countries have firm reorganization option in legislation (either as a separate law or part of insolvency code, the practice of successful reorganizations has remained modest. Reorganization law was introduced in Estonia in late 2008, but only a few firms have been successfully reorganized since. Derived from previous the article studies, what are the reasons for firm reorganization failure. From legal viewpoint, main causes are found to be that firms under reorganization do not submit reorganization plans to court and the preconditions for reorganization lapse. The financial ratios for successful and unsuccessful reorganizations are not significantly different according to independent samples median test. Unsuccessfully reorganized firms perform worse than successful ones in the year before reorganization year, but the opposite phenomenon occurs two and three years before reorganization year.

  16. How Chinese firms employ open innovation to strengthen their innovative performance

    DEFF Research Database (Denmark)

    Wang, Yuandi; Roijakkers, Nadine; Vanhaverbeke, Wim

    2012-01-01

    China became the second-largest economy behind the USA in 2010. While there is quite some macroeconomic research documenting the technological catching-up of China as a nation, there is only little research studying how individual Chinese firms are catching up. This paper draws on the open...... performance. These firms use: 1 technology in-licensing agreements to obtain access to technologies 2 long-term alliances with foreign partners to access state-of-the-art technologies 3 collaboration with local universities and R&D institutes to broaden their technological strengths 4 collaboration...

  17. Typologie des investisseurs institutionnels et performance des firmes dans le contexte français

    OpenAIRE

    Jean-Michel SAHUT; Othmani Gharbi, Hidaya

    2011-01-01

    L’objet de cet article est d’analyser la relation entre les investisseurs institutionnels et la performance financière des firmes. Dans ce contexte, nous proposons une nouvelle typologie fondée sur la variété des comportements des institutionnels (passifs ou engagés (actifs)) vis-à-vis de la gestion et du gouvernement des firmes qu’ils détiennent en portefeuille, et identifions les principaux facteurs pouvant influencer ces comportements. Nos résultats corroborent, en général, un impact posit...

  18. The Use of Derivatives as a Risk Management Instrument: Evidence from Indonesian Non-Financial Firms

    National Research Council Canada - National Science Library

    I Wayan Nuka Lantara

    2012-01-01

    .... Using Probit and Tobit regression models, the results indicate that the use of derivatives is positively associated with firm size, market-to-book value, bank-firm relationship, and the involvement...

  19. An Integrated-Empirical Logistics Perspective on Supply Chain Innovation and Firm Performance

    Directory of Open Access Journals (Sweden)

    Santanu Mandal

    2015-12-01

    Full Text Available Supply chains need to innovate constantly for maintaining their position in the marketplace and also to fight uncertainties. Hence firms are focusing on strategies for developing supply chain innovation. The current investigation adds to this emerging regime through investigating the influence of logistics capabilities viz. demand management capability, supply management capability, information management capability and coordination capability on supply chain innovation through logistics integration. Further, supply chain innovation helps a firm to sustain its position in the market place through generation and launching of new products and services. Accordingly, the influence of supply chain innovation on firm performance is also investigated. Data is collected from logistics, purchasing and supply chain professionals working in different industries in India. The findings based on 169 responses largely support our proposed relationships.

  20. Information Technology, Human Resources Management Systems and Firm Performance: An Empirical Analysis from Spain

    Directory of Open Access Journals (Sweden)

    Pilar Ficapal-Cusí

    2011-04-01

    Full Text Available This research paper uses survey data on 1.518 Catalan firms (in Spain, with capital in Barcelona to examine the relationship between IT use, innovative human resources management systems (IHRMS and firm’s performance. Using factor and cluster analysis, we find that only one-third of Catalan firms use IHRMS. Using association analysis we find that firms that adopt IHMRS are more internationalised; show grater ability to adapt to the change environment, to innovate and to collaborate; focuses product/service differentiation strategy enhancing quality; apply a greater degree of new forms of work organization; use IT more intensively; and invest more in training their employees Using regression analysis, we find that features which are structural, technological, strategic, organisational and result-related explain the adoption of IHRMS.

  1. Information Technology, Human Resources Management Systems and Firm Performance: An Empirical Analysis from Spain

    Directory of Open Access Journals (Sweden)

    Pilar Ficapal-Cusí

    2011-04-01

    Full Text Available This research paper uses survey data on 1.518 Catalan firms (in Spain, with capital in Barcelona to examine the relationship between IT use, innovative human resources management systems (IHRMS and firm’s performance. Using factor and cluster analysis, we find that only one-third of Catalan firms use IHRMS. Using association analysis we find that firms that adopt IHMRS are more internationalised; show grater ability to adapt to the change environment, to innovate and to collaborate; focuses product/service differentiation strategy enhancing quality; apply a greater degree of new forms of work organization; use IT more intensively; and invest more in training their employees Using regression analysis, we find that features which are structural, technological, strategic, organisational and result-related explain the adoption of IHRMS.

  2. Social Competence in Small Firms-Fostering Workplace Learning and Performance

    NARCIS (Netherlands)

    Lans, Thomas; Verhees, Frans; Verstegen, Jos

    2016-01-01

    While it is widely accepted that social networks are key to small-firm success, detailed studies on the specific contribution of owner-managers' social competence to learning and performance are scarce. In this article, the importance of owner-managers' social competence was explored in a specifi

  3. Integrated information and logistics management, quality management and firm performance of pork processing industry in China

    NARCIS (Netherlands)

    Han, J.; Trienekens, J.H.; Omta, S.W.F.

    2009-01-01

    Purpose – This paper seeks to discuss the interactions amongst integrated information technology (IT), integrated logistics management, quality management practices and firm performance of pork processors in China. Design/methodology/approach – A conceptual framework was developed by examining the r

  4. Social Competence in Small Firms-Fostering Workplace Learning and Performance

    NARCIS (Netherlands)

    Lans, Thomas; Verhees, Frans; Verstegen, Jos

    2016-01-01

    While it is widely accepted that social networks are key to small-firm success, detailed studies on the specific contribution of owner-managers' social competence to learning and performance are scarce. In this article, the importance of owner-managers' social competence was explored in a

  5. The Effect of Firm Strategy and Corporate Performance on Software Market Growth in Emerging Regions

    Science.gov (United States)

    Mertz, Sharon A.

    2013-01-01

    The purpose of this research is to evaluate the impact of firm strategies and corporate performance on enterprise software market growth in emerging regions. The emerging regions of Asia Pacific, Eastern Europe, the Middle East and Africa, and Latin America, currently represent smaller overall markets for software vendors, but exhibit high growth…

  6. The Effect of Firm Strategy and Corporate Performance on Software Market Growth in Emerging Regions

    Science.gov (United States)

    Mertz, Sharon A.

    2013-01-01

    The purpose of this research is to evaluate the impact of firm strategies and corporate performance on enterprise software market growth in emerging regions. The emerging regions of Asia Pacific, Eastern Europe, the Middle East and Africa, and Latin America, currently represent smaller overall markets for software vendors, but exhibit high growth…

  7. Measuring Organizational Learning Capability in Indian Managers and Establishing Firm Performance Linkage: An Empirical Analysis

    Science.gov (United States)

    Bhatnagar, Jyotsna

    2006-01-01

    Purpose: The purpose of this research is to measure Organizational Learning Capability (OLC) perception in the managers of public, private and multinational organizations and establish the link between OLC and firm performance. Design/methodology/approach: The data were collected from a sample of 612 managers randomly drawn from Indian industry,…

  8. Is Small Beautiful? Size Effects of Volatility Spillovers for Firm Performance and Exchange Rates in Tourism

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); H-K. Hsu (Hui-Kuang); M.J. McAleer (Michael)

    2012-01-01

    textabstractThis paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data fro

  9. Is Small Beautiful? Size Effects of Volatility Spillovers for Firm Performance and Exchange Rates in Tourism

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); H-K. Hsu (Hui-Kuang); M.J. McAleer (Michael)

    2013-01-01

    textabstractThis paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data fro

  10. Evaluating the financial performance of agri-food firms: a multicriteria decision-aid approach

    NARCIS (Netherlands)

    Kalogeras, N.; Baourakis, G.; Zopounidis, C.; Dijk, van G.

    2005-01-01

    Food economists and financial researchers have long been preoccupied by the issue of evaluating the performance of agri-food firms. As the financial restructuring of the agri-business sector during the past two decades or so reflects sweeping changes that have occurred worldwide, questions have aris

  11. Is Small Beautiful? Size Effects of Volatility Spillovers for Firm Performance and Exchange Rates in Tourism

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); H-K. Hsu (Hui-Kuang); M.J. McAleer (Michael)

    2012-01-01

    textabstractThis paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data

  12. Is Small Beautiful? Size Effects of Volatility Spillovers for Firm Performance and Exchange Rates in Tourism

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); H-K. Hsu (Hui-Kuang); M.J. McAleer (Michael)

    2013-01-01

    textabstractThis paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data

  13. Integrated information and logistics management, quality management and firm performance of pork processing industry in China

    NARCIS (Netherlands)

    Han, J.; Trienekens, J.H.; Omta, S.W.F.

    2009-01-01

    Purpose – This paper seeks to discuss the interactions amongst integrated information technology (IT), integrated logistics management, quality management practices and firm performance of pork processors in China. Design/methodology/approach – A conceptual framework was developed by examining the

  14. Mobile and more productive? : firm-level evidence on the productivity effects of mobile internet use

    OpenAIRE

    2015-01-01

    Mobile internet access allows for flexibility with respect to working time and working place. We analyse whether employees' use of mobile internet access improves firms' labour productivity. Our data set contains 2143 German firms and refers to the year 2014, when high-speed mobile internet was still at a relatively early stage of diffusion within firms. The econometric analysis shows that firms' labour productivity significantly increases with the share of employees with mobile internet acce...

  15. Volatility of the interest rate, debt and firm investment : Dutch evidence

    NARCIS (Netherlands)

    Bo, H; Sterken, E

    This paper analyzes the joint impact of the interest rate volatility and debt on firm investment. We derive an investment model taking account of the risk attitude of the owners of the firm. Using a panel of Dutch listed firms in the period of 1984-1995, we find that the cross-effect of the interest

  16. Volatility and diversification of exports : Firm-level theory and evidence

    NARCIS (Netherlands)

    Vannoorenberghe, Gonzague; Wang, Zheng; Yu, Zhihong

    2016-01-01

    We show using detailed firm-level Chinese data that, among small exporters, firms selling, to a more diversified set of countries have more volatile exports, while the opposite holds among large exporters. This a priori surprising result for small firms is robust to a wide array of specifications an

  17. Importing, productivity and SMEs: firm-level evidence from the Netherlands

    NARCIS (Netherlands)

    van den Berg, M.R.

    2013-01-01

    Constructing a comprehensive data set covering Dutch firms over the years 2002-2008 I am the first to investigate the relationship between trade status, firm size and firm-level productivity in the Netherlands, thereby focusing particularly on small and medium sized enterprises (SMEs). The empirical

  18. Currency Denomination of Bank Loans : Evidence from Small Firms in Transition Countries

    NARCIS (Netherlands)

    Brown, M.; Ongena, S.; Yesin, P.

    2008-01-01

    We examine the firm-level and country-level determinants of the currency denomination of small business loans. We introduce an information asymmetry between banks and firms in a model that also features the trade-off between the cost of debt and firm-level distress costs. Banks in our model don’t kn

  19. Volatility and diversification of exports : Firm-level theory and evidence

    NARCIS (Netherlands)

    Vannoorenberghe, Gonzague; Wang, Zheng; Yu, Zhihong

    2016-01-01

    We show using detailed firm-level Chinese data that, among small exporters, firms selling, to a more diversified set of countries have more volatile exports, while the opposite holds among large exporters. This a priori surprising result for small firms is robust to a wide array of specifications

  20. Does downsizing improve organizational performance? An analysis of Spanish manufacturing firms

    OpenAIRE

    Sánchez-Bueno, María José; Muñoz-Bullón, Fernando

    2008-01-01

    The objective of this study is to examine the effect of downsizing on corporate performance, considering a sample of manufacturing firms drawn from the Spanish Survey of Business Strategies during the 1993- 2005 period. No significant differences in post-downsizing performance arise between companies which downsize and those that do not. Likewise, we find that substantial workforce reductions through collective dismissals do not either lead to improved performance levels. Downsizing, therefor...

  1. Exploring the impact of dynamic capabilities on sustainable supply chain firm's performance using Grey-Analytical Hierarchy Process

    DEFF Research Database (Denmark)

    Govindan, Kannan; Mathivathanan, Deepak; Haq, A. Noorul

    2017-01-01

    the impact of the DCs on the firm's performance, by offering a review of literature to identify the various associated DCs and performance measures of a firm cited in peer reviewed journals. The impact of the collected DCs on the enhancement of firms’ performance is then analyzed with the help of six...

  2. Impact of Changes in Accounting Standards in Debt Ratios of Firms: Evidence in Brazil

    Directory of Open Access Journals (Sweden)

    André Aroldo Freitas de Moura

    2016-01-01

    Full Text Available ABSTRACT This research investigates the impact of changes in debt ratios of Brazilian firms due to the IFRS adoption. We make a comparison between the forecast of the time-series of debt ratios accounted until 2007 for the span from 2008 to the first quarter of 2015 with those effectively accounted from 2008 to the first quarter of 2015 derived from the new accounting standard. The research utilizes SARIMAX model and Chow’s (1960 structural break forecast test, controlling for changes originating from the macroeconomic environment as well. We find evidence of significant changes in the debt ratio towards both higher and lower debt with predominance of greater ratios. This result is consistent with past literature in Europe, Australia and New Zealand. Nevertheless, we do not find evidence of a structural break in the Financial Dependency ratio. Moreover, there is no evidence of any distinct effects across different industries. The research provides new evidence confirming the informational effects of IFRS by utilizing a robust time-series model with macroeconomic controls in an innovative approach towards the accounting environment.

  3. DELIVERY PERFORMANCE MEASUREMENT IN AN INTEGRATED SUPPLY CHAIN MANAGEMENT: CASE STUDY IN BATTERIES MANUFACTURING FIRM

    Directory of Open Access Journals (Sweden)

    V.V. Muniswamy

    2011-11-01

    Full Text Available Delivery performance provides an indication of how successful the supply chain is at providingproducts and services to the customer. This metric is most important in supply chain management asit integrates the measurement of performance right from supplier end to the customer end. Presentresearch is focused on a case study conducted in a leading batteries manufacturing firm in SouthIndia and analysis of elemental performances in overall delivery performance of an entire supplychain in an integrated approach. NLP and Dynamic Programming models have been used to getoptimal and sub-optimal solutions to help firms in benchmarking expected performance levels. Theeffect of learning has also been described with an empirical analysis.

  4. THE CONSEQUENCES OF STRATEGIC ORIENTATION OF THE FIRM ON BUSINESS PERFORMANCE

    Directory of Open Access Journals (Sweden)

    Cristian DUTU

    2016-11-01

    Full Text Available This study aims to develop a conceptual model used for empirical testing of strategic orientation and the effects of the strategic orientation on organizational performance. As the strategic orientations addressed by organizations vary by organizational environment, the main objective of strategic management research has been to determine and understand performance differences between firms. The present research used the results obtained by interviewing 121 large companies in Romania, and by using simple linear regression, we tested the existence of strategic orientation in these companies and its effects on organizational performance. This research confirms the presence of strategic orientation at firm level and its positive effect on performance. The major contribution of this study is that it complements the empirical data in existing literature around the effects of strategic orientation on organizational performance.

  5. The Effect of Monitoring Committees on the Relationship between Board Structure and Firm Performance

    Directory of Open Access Journals (Sweden)

    Aymen Ammari

    2016-12-01

    Full Text Available The purpose of this study is to investigate the impact of board structure on the performance of French firms in the presence of several monitoring committees. We studied 80 publicly listed French firms spanning from 2001 to 2013. We concluded that large board size has a negative effect on market performance. While large board size in combination with the existence of at least three committees enhances accounting performance and does not have any impact on market performance, the existence of a board dominated by independent directors with the presence of at least three committees seems to have only a negative impact on accounting performance. Our findings indicate that monitoring committees are beneficial for shareholders only for corporations with a large board size.

  6. Clustering and firm performance in project-based industries: the case of the global video game industry, 1972-2007

    NARCIS (Netherlands)

    Vaan, M. de; Boschma, R.; Frenken, K.

    2013-01-01

    Explanations of spatial clustering based on localization externalities are being questioned by recent empirical evidence showing that firms in clusters do not outperform firms outside clusters. We propose that these findings may be driven by the particularities of the industrial settings chosen in t

  7. Determinants of Bank Loan Availability: Evidence From Pakistani Non-Financial Firms

    Directory of Open Access Journals (Sweden)

    Jaleel Ahmed

    2016-03-01

    Full Text Available In this research paper we have investigated the key factors which make it easier for non-financial firms to arrange financing from commercial banks. We have collected the data from the year 2001 to 2011 from 220 non-financial firms in Pakistan. We have used two measures of firm-bank relationship. First, if a non-financial firm has a board of director who is at the same time board of director of a commercial bank. Second, if a commercial bank has an equity stake in a non-financial firm. After using Fixed Effect model we have found that firm-bank relationships always matter for arranging bank loan for non-financial firms in Pakistan.

  8. Does Workplace Diversity Matter? A Survey Of Empirical Studies On Diversity And Firm Performance, 2000-09

    Directory of Open Access Journals (Sweden)

    Anne M. McMahon

    2011-01-01

    Full Text Available This study seeks to assess the state-of-the-art on the workplace diversity – firm performance relationship. Based on a review of academic research on workplace diversity and firm performance published in nine leading journals in the field of management during the period 2000-2009, it addresses the following research questions: a. How are diversity and firm performance constructs defined? b. What are the findings of research linking workplace diversity and firm performance? c. What factors mediate and/or moderate the diversity-performance relationship? Based on the findings of extant research, we develop a model to explain and interpret the diversity – firm performance relationship, and understand its implications.

  9. The impact of transformational CEOs on the performance of small- to medium-sized firms: does organizational context matter?

    Science.gov (United States)

    Ling, Yan; Simsek, Zeki; Lubatkin, Michael H; Veiga, John F

    2008-07-01

    Although theory suggests that CEOs who engage in transformational leadership should have a positive effect on firm performance, most empirical examinations using data drawn from larger firms have failed to find support for this linkage. Given that the organizational complexity associated with larger firms has been viewed as a central obstacle to establishing this important link, the authors examined the impact of CEO transformational leadership on firm performance in smaller, privately held firms. After first explaining why the less complex context of these firms provides a setting for transformational CEOs to play a more direct role in enhancing firm performance, they then further clarified the nature of this link by hypothesizing 3 contingencies that they argued are particularly salient: firm size, CEO founder status (founder or nonfounder), and CEO tenure. Results from a multisource survey of CEOs and their top management teams in 121 firms and 2 time-lagged measures of performance, 1 objective and 1 perceived, provided consistent support for these hypotheses.

  10. The effect of high performance work systems utilization on firm performance: does human resource attribution of employees matter?

    Directory of Open Access Journals (Sweden)

    Shibiru Ayalew Melesse

    2016-12-01

    Full Text Available A large body of research suggests that high performance work systems (HPWSs that enhance employees’ competencies, and motivate them, leads to competitive advantage. HPWPs are radically not ‘new practices’; they have been around for many years and have already been adopted by various organizations. However, the link between HPWS adoption & firm performance is yet blurred. The aim of this paper was to examine the moderating role of employees’ HR attributions on the relationship between adoption of HPWSs and firm performance. The current paper argues that human resource (HR attribution of employees moderates the relationship between HPWS and firm performance such that the effective adoption of high performance work systems in an organization partly depends on the type of employees’ attributions (commitment versus control of HR practices in the company. More specifically, it is proposed that adoption of HPWS can be more effective in organizations where employees’ attributions of HR practices is commitment focus than in firms where employees’ attributions of HR practice is control focus. The study contributes to understanding the ‘black box’ of HRM-performance link. Theoretical and practical implications and future research directions are discussed.

  11. A study on relationship between firm's financial performance and immediate and long-term stock return

    Directory of Open Access Journals (Sweden)

    Mohamad Sirani

    2013-08-01

    Full Text Available Previous studies show investors’ overreaction towards firms past performance. In fact, investors overvalue past winners and undervalue past losers. However, when their expectations do not come true, stock prices return to their fair values. This study investigates investors’ overreaction in Tehran Stock Exchange in three steps. Using a five-year period data collected from Tehran Stock Exchange (TSE, we evaluate portfolio performance and analyze them based on a sample of 70 firms selected from this exchange and, using Pearson correlation as well as regression analysis, examine the effects of past performance on price appreciation. The preliminary results indicate that TSE investors normally overreact to sale, quality of sale, operating profit, quality of profit, cash flow and stock return, significantly.

  12. Mandatory IFRS adoption and the cost of Equity Capital. Evidence from Spanish Firms

    Directory of Open Access Journals (Sweden)

    David Castillo-Merino

    2014-05-01

    Full Text Available Purpose: The main objective of this paper analyses the effects of mandatory International Financial Reporting Standards (IFRS adoption by Spanish firms in 2005 on the cost of equity capital. Design/methodology: Using a sample of listed Spanish companies during the 1999 to 2009 period and a country-level focused analysis. To achieve our objective we relied on OLS regression analysis and estimate the dependent variable – the cost of equity – by using the proxy suggested in Easton (2004. Findings: We find evidence that, unlike previous studies, Spanish listed companies show a significant reduction in their cost of equity capital after the mandatory adoption of IFRS in 2005, after controlling by a set of firm-risk and market variables. According to our results, increased financial disclosure and enhanced information comparability, along with changes in legal and institutional enforcement, seem to have a joint effect on the cost of capital, leading to a large decrease in expected equity returns. Research limitations: The main limitation of the study is that the sample represents just one country. Practical implications: The findings of the study may have implications for the firms’ management staff, as they reveal what information determines the cost of equity capital. The systematic risk and the leverage affect positively the cost of stocks and therefore their market value. The results are consistent with the financial principle establishing that the higher risk and the higher leverage, the higher cost of capital. Originality/value: As a result of the conducted research, one is able to figure out which stock-return variables should be observed to anticipate the change of a company’s cost of capital.

  13. Regulatory red tape and private firm performance : Firm-level evidence from the Netherlands

    NARCIS (Netherlands)

    de Jong, Gjalt; van Witteloostuijn, Arjen

    2015-01-01

    Regulation may obstruct dynamic adaptation, innovative power, and entrepreneurial activity. On the other hand, regulation could be interpreted as a phenomenon which society just has to learn to live with, and which otherwise does no real economic harm. This article explores both of these hypotheses.

  14. Board diversity and firm performance: an empirical investigation in the Brazilian market

    Directory of Open Access Journals (Sweden)

    João Batista Fraga

    2012-01-01

    Full Text Available This article investigates the diversity of the boards of directors of Brazilian companies listed on the BM&FBovespa with respect to gender, age, educational attainment and independence, to ascertain whether there is a relationship between any of these diversity measures and firm performance. The study covers all companies without majority control, a type of corporate structure that first appeared in Brazil in 2005. The results indicate that greater diversity in the educational disciplines and the presence or absence of independent board members negatively affect performance, while diversity in years of schooling has a positive effect. The presence of women board members is small, but firms that have at least one female director outperform those that do not.

  15. 证券市场选择是否影响公司业绩与价值?--来自中国房地产行业的经验证据%Does IPO Market Choice Affect Firm Performance and Value?---Evidence from Chinese Real Estate Industry

    Institute of Scientific and Technical Information of China (English)

    韦茜; 王志华

    2016-01-01

    Choice among different stock markets is an important decision for firms during IPOs. Does location choice af-fect firms’ post-IPO performance and market value? Using data of real estate firms in mainland China, this article proves that those firms listed in the Hong Kong stock market have exhibited higher performance ( return on asset) than those listed in ma-inland Chinese stock markets, though their market values do not differ significantly. Additionally, among those firms listed in Hong Kong, state ownership leads to lower market value;however, for firms listed in mainland China, state ownership results in higher value. These empirical findings are consistent with predictions from corporate governance and agency theories. Be-sides the possibility that firms with high quality asset are more likely to do IPOs in Hong Kong, the more perfect monitoring mechanisms in the Hong Kong stock market can mitigate agency problems and enhance firms’ performance.%企业在不同资本市场之间的选择往往是上市过程中一个重要决策。上市地点是否会影响其后续业绩表现以及价值?文章基于中国内地房地产企业数据的研究发现,在中国香港上市的企业比在中国内地上市的企业经营业绩更优,而两者在股市价值上并无显著差别。另外,在(中国)香港上市的房地产企业中,国有企业股市价值低于非国有企业;而在中国内地上市的房地产企业中,国有企业股市价值高于非国有企业。研究结果说明,证券市场完善的监管有利于降低代理人问题,提高企业经营业绩。

  16. The Impact of Start-up Grants on Firm Performance in Estonia

    OpenAIRE

    Siret Vildo; Jaan Masso

    2013-01-01

    As in economic theory start-up enterprises have been seen as important sources of growth, the government support measures to enterprises have been a common practice around the world for decades. As the governmental support to enterprises is often of a considerable amount of money there is a need to assess its efficiency. In the present article we study the impact of Estonian start-up grants distributed in 2002 and 2003 on various indicators of firm performance with econometric methods, namely...

  17. Impact of the Revised Malaysian Code on Corporate Governance on Audit Committee Attributes and Firm Performance

    OpenAIRE

    KALLAMU, Basiru Salisu

    2016-01-01

    Abstract. Using a sample of 37 finance companies listed under the finance segment of Bursa Malaysia, we examined the impact of the revision to Malaysian code on corporate governance on audit committee attributes and firm performance. Our result suggests that audit committee attributes significantly improved after the Code was revised. In addition, the coefficient for audit committee and risk committee interlock has a significant negative relationship with Tobin’s Q in the period before the re...

  18. OWNERSHIP STRUCTURE AND INTERACTION EFFECTS OF FIRM PERFORMANCE ON MANAGEMENT COMMENTARY DISCLOSURES

    OpenAIRE

    Roshayani Arshad; Rohaya Md Nor; Nur Adura Ahmad Noruddin

    2011-01-01

    A rich empirical research suggests that corporate disclosures are important means for management to communicate firm performance and governance to outside investors. (e.g. Chau & Gray, 2002; Mohd Ghazali & Weetman, 2006). In the last few years, there is an increasing attention regarding non-financial information disclosure in companies' annual reports. An important development in relation to this is the discussion paper and subsequently statement practice on Management Commentary (MC) issued ...

  19. Disentangling the Impact of Control-Enhancing Mechanisms on Firm Performance

    DEFF Research Database (Denmark)

    Zattoni, Alessandro; Pedersen, Torben

    2011-01-01

    Governance scholars and investors traditionally advocate against the use of control enhancing mechanisms, i.e. mechanisms aimed at separating voting and cash flow rights. These mechanisms may, in fact, determine a deviation from the proportionality principle and may encourage large and controlling......, and (ii) the negative impact on firm performance of mechanisms aimed at enhancing control by leveraging voting power is mediated by the divergence in voting and cash flow rights....

  20. Corporate boards, ownership structure and firm performance in an environment of severe political and economic crisis

    OpenAIRE

    2012-01-01

    This study examines the relationship between board and ownership structures and firm performance in an environment of severe political and economic crisis. Using panel data from the Zimbabwe Stock Exchange (ZSE) for the period 2000-2005, we split the period into prepresidential election period (2000-2002) (a relatively stable political and economic period) and post-presidential election period (2003-2005) (a hostile political and economic period) to capture the differences in the political an...

  1. The Impact of Alternative Market Orientation Strategies on Firm Performance: Customer versus Competitor Orientation

    OpenAIRE

    Micheels, Eric T.; Gow, Hamish R.

    2010-01-01

    Research studies have differed over the importance of the relative emphasis of a customer versus competitor orientation in the development of a market orientation (Slater and Narver, 1994; Tajeddini, 2010). In this study, we assess whether the emphasis of one component over another of a market orientation is an important determinant of firm performance within the Illinois beef industry, specifically the cow-calf sector. Using a series of OLS regressions, we examine the importance of a market ...

  2. Strategic Uncertainty and Firm Performance: The Mediating Role of Competitive Intelligence Practices

    OpenAIRE

    Ching Seng Yap; Md Zabid Abdul Rashid; Dewi Amat Sapuan

    2013-01-01

    This study aims to identify the strategic roles of competitive intelligence and to examine the mediating effect of competitive intelligence practices on the relationship between perceived strategic uncertainty and firm performance. Data are collected from 123 public listed companies in Malaysia using mail questionnaire survey. The study highlights the essential role of competitive intelligence in supporting strategic decision making and strategic planning as well as in identifying opportuniti...

  3. Product Variety, Supply Chain Structure, and Firm Performance: Analysis of the U.S. Bicycle Industry

    OpenAIRE

    Taylor Randall; Karl Ulrich

    2001-01-01

    Using data from the U.S. bicycle industry, we examine the relation among product variety, supply chain structure, and firm performance. Variety imposes two types of costs on a supply chain: production costs and market mediation costs. Production costs include, among other costs, the incremental fixed investments associated with providing additional product variants. Market mediation costs arise because of uncertainty in product demand created by variety. In the presence of demand uncertainty,...

  4. Taking it to another level: do personality-based human capital resources matter to firm performance?

    Science.gov (United States)

    Oh, In-Sue; Kim, Seongsu; Van Iddekinge, Chad H

    2015-05-01

    Drawing on the attraction-selection-attrition perspective, strategic human resource management (SHRM) scholarship, and recent human capital research, this study explores organization-level emergence of personality (i.e., personality-based human capital resources) and its direct, interactive, and (conditional) indirect effects on organization-level outcomes based on data from 6,709 managers across 71 firms. Results indicate that organization-level mean emotional stability, extraversion, and conscientiousness are positively related to organization-level managerial job satisfaction and labor productivity but not to financial performance. Furthermore, organization-level mean and variance in emotional stability interact to predict all three organization-level outcomes, and organization-level mean and variance in extraversion interact to predict firm financial performance. Specifically, the positive effects of organization-level mean emotional stability and extraversion are stronger when organization-level variance in these traits is lower. Finally, organization-level mean emotional stability, extraversion, and conscientiousness are all positively related to firm financial performance indirectly via labor productivity, and the indirect effects are more positive when organization-level variance in those personality traits is lower. Overall, the findings suggest that personality-based human capital resources demonstrate tangible effects on organization-level outcomes. Theoretical and practical implications of these findings are discussed along with study limitations and future research directions.

  5. Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms

    Directory of Open Access Journals (Sweden)

    Liangfeng Hao

    2016-11-01

    Full Text Available Recent theoretical analysis and empirical studies have emphasized that firms’ innovation could significantly improve export growth. However, the positive effect of innovation on exports is likely to change due to unstable domestic offsetting for innovation and increasing worldwide competition for trade. This study aims to explore the dynamic link between them. We first develop a theoretical model between innovation and export growth based on the theory of heterogeneity. Export growth is measured through the dimensions of extensive margin and intensive margin so as to better investigate the effect of innovation on export performance. The propositions of mechanism analysis reveal that the effect of innovation on exports is non-linear rather than sustainable. An empirical study is followed to test the propositions by using data from a representative panel of Chinese manufacturing firms. Consistent with the theoretical predictions, the results show an inverted U-shaped relationship between innovation and extensive margin and a U-shaped relationship between innovation and intensive margin. The non-linear relations are verified by a threshold effect test. Further study shows less innovation and more firms on the left side of the relation curves. The distribution suggests irregular innovation ability among the exporters. Moreover, the role of innovation is more important for export growth and the corresponding threshold is higher in terms of high technological sectors. The contribution of this study is to introduce a comprehensive framework to investigate the dynamic effect of innovation on export growth, serving as a modest spur to induce the following studies to explore the sustainability of innovation effect.

  6. Exports and Innovation in Emerging Economies : Firm-Level Evidence from South-Africa

    NARCIS (Netherlands)

    Vannoorenberghe, Gonzague

    2015-01-01

    Using a new dataset on the innovation and exports of 500 South African firms, this paper asks whether exports affect rm innovation in the context of an emerging economy. We use a range of particularly attractive features of the dataset. Firms not only report whether they innovated but describe their

  7. Does the private sector care about AIDS? Evidence from firm surveys in East Africa.

    Science.gov (United States)

    Ramachandran, Vijaya; Shah, Manju K; Turner, Ginger L

    2007-07-01

    Our objective was to identify the determinants of HIV/AIDS prevention activity and pre-employment health checks by private firms in Kenya, Uganda and Tanzania. We used data from the World Bank Enterprise Surveys for Uganda, Kenya and Tanzania, encompassing 860 formally registered firms in the manufacturing sector. Econometric analysis of firm survey data was used to identify the determinants of HIV/AIDS prevention including condom distribution and voluntary counselling and testing (VCT). Multivariate regression analysis was the main tool used to determine statistical significance. Approximately a third of enterprises invest in HIV/AIDS prevention. Prevention activity increases with size, most likely because larger firms and firms with higher skilled workers have greater replacement costs. Even in the category of larger firms, less than 50% provide VCT. We found that the propensity of firms to carry out pre-employment health checks of workers also varies by the size of firm and skill level of the workforce. Finally, data from worker surveys showed a high degree of willingness on the part of workers to be tested for HIV in the three East African countries.

  8. Investment - Cash Flow Sensitivity and Financing Constraints: New Evidence from Indian Business Group Firms

    NARCIS (Netherlands)

    Pallathitta, Rejie; Kabir, Rezaul; Qian, Jing

    2010-01-01

    A controversy exists on the use of the investment – cash flow sensitivity as a measure of financing constraints of firms. We re-examine this controversy by analyzing firms affiliated to Indian business groups. We find a strong investment – cash flow sensitivity for both group-affiliated and independ

  9. Investment–cash flow sensitivity and financing constraints: new evidence from Indian business group firms

    NARCIS (Netherlands)

    George, R.; Kabir, M.R.; Qian, J.

    2011-01-01

    A controversy exists on the use of the investment–cash flow sensitivity as a measure of financing constraints of firms.Were-examine this controversy by analyzing firms affiliated to Indian business groups. We find a strong investment–cash flow sensitivity for both group-affiliated and independent fi

  10. Firm-Specific Marketing Capital and Job Satisfaction of Marketers: Evidence from Vietnam

    Science.gov (United States)

    Nguyen, Tho D.; Nguyen, Trang T. M.

    2011-01-01

    Purpose: Based on the resource-based view of the firm, this study aims to examine antecedents and outcomes of firm-specific marketing capital pool invested by marketers in a transition market, Vietnam. Design/methodology/approach: A sample of 528 marketers in Ho Chi Minh City was surveyed to test the theoretical model. Structural equation…

  11. A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms

    NARCIS (Netherlands)

    Rauch, Andreas; Hatak, Isabella

    2016-01-01

    The role of human capital has received considerable attention in research on small and medium sized firms. However, much uncertainty remains as to how practices that enhance human resources (HR) affect the performance of small and medium sized firms, whether some practices have stronger effects than

  12. The Impact of Internal and External Resources, and Strategic Actions in Business Networks on Firm Performance in the Software Industry

    NARCIS (Netherlands)

    Anggraeni, E.

    2014-01-01

    Understanding the variance in firm performance has been an important topic in the strategic management literature. In the last two decades it has become particularly interesting as business networks increasingly have become an integrated part of a firm's environment. Besides the internal resources,

  13. The Impact of Internal and External Resources, and Strategic Actions in Business Networks on Firm Performance in the Software Industry

    NARCIS (Netherlands)

    Anggraeni, E.

    2014-01-01

    Understanding the variance in firm performance has been an important topic in the strategic management literature. In the last two decades it has become particularly interesting as business networks increasingly have become an integrated part of a firm's environment. Besides the internal resources,

  14. A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms

    NARCIS (Netherlands)

    Rauch, Andreas; Hatak, Isabella

    2016-01-01

    The role of human capital has received considerable attention in research on small and medium sized firms. However, much uncertainty remains as to how practices that enhance human resources (HR) affect the performance of small and medium sized firms, whether some practices have stronger effects than

  15. The Role of Ownership Concentration, its Types and Firm Performance: A Quantitative Study of Financial Sector in Pakistan

    Directory of Open Access Journals (Sweden)

    Kashif Rashid

    2014-06-01

    Full Text Available The issue of ownership concentration has attracted a lot of attention in an emerging economy. The aim of this study is to investigate the impact of ownership concentration and its different types on the performance of a firm. For this purpose a panel data of 27 firms of banking and financial services sector of Pakistan listed at Karachi Stock Exchange (KSE is used as a sample for the period from 2007 to 2011. Ownership concentration and types of ownership are used as independent variables. Tobin’s Q is used as a proxy for the firm performance. The results of regression show that ownership concentration has a negative impact on the performance of a firm. Furthermore, the results of the study suggest that bigger size, individual and family ownership and bank and institutional ownership improve the value of shareholders in the selected market. The types of ownership have a positive relationship with the firm performance supporting stewardship theory. On the contrary, higher leverage and aged firms deteriorate the shareholder’s value in Pakistan. The results of incremental regression analysis show that the firm size is the most important variable in affecting the value of a firm. These results are valuable to researchers and policy makers in Pakistan.

  16. Stock Market Efficiency and Size of the Firm: Empirical Evidence from Pakistan

    Directory of Open Access Journals (Sweden)

    Ikram ul Haq

    2014-03-01

    Full Text Available The purpose of this paper is to examine the relationship between firm size and excess stock returns in Pakistani market. We construct a set of 10 portfolios based on size i.e., market capitalization, total assets and sales for the period between 2007 and 2011, and analyze the annual stock returns by using sorting and Fama & Macbeth model. The results of the study indicate a prominent size effect where smaller firm or size portfolios are found to have a greater average annual excess returns than bigger firm or size portfolios during the period under analysis. We find that small firms have significantly greater excess returns than larger firms. The study has strong implications for mutual funds managers, investment analysts as well as small investors who are continuously at a lookout for the trading strategies that beat the market.

  17. Determinants of dividend policy: Evidence from listed firms in the African stock exchanges

    Directory of Open Access Journals (Sweden)

    Nnadi Matthias

    2013-01-01

    Full Text Available The study demonstrates that much of the existing theoretical literature on dividend policy can be applied to the emerging capital markets of Africa. Using available financial data of listed firms in the 29 stock exchanges in Africa, the study finds similarities in the determinants of dividend policy in African firms with those in most developed economies. In particular, agency costs are found to be the most dominant determinant of dividend policy among African firms. The finding is non-synonymous with emerging capital markets which have a high concentration of private ownership and trading volumes. Agency cost theory may be important in both emerging and developed capital markets but the nature of the agency problem may be different in each case. Other factors such as level of market capitalization, age and growth of firms, as well as profitability also play key roles in the dividend policy of listed African firms.

  18. Analysis of Industrial Structure, Firm Conduct and Performance – A Case Study of the Textile Industry

    Directory of Open Access Journals (Sweden)

    Lee Yueh-Chiang

    2016-06-01

    Full Text Available With the analysis of the industrial economic theory structure – conduct – performance model, the study investigates the existence of significant relationship among market structure, conduct and performance. Twelve Taiwan companies are studied during the study period from 2006 to 2012 which are analysed with fixed effect and random effect of panel data and ordinary least squares estimation. The empirical result backs the statement by “Structuralism” that market structure (market share, entry barrier and capital intensity directly affects firm conduct (R&D intensity and performance (ROA.

  19. The effects of intellectual capital on financial performance: A case study of petrochemical and pharmaceutical firms

    Directory of Open Access Journals (Sweden)

    Naser Azad

    2012-04-01

    Full Text Available There is no doubt that traditional accounting does not provide actual value of assets since they only measure tangible assets. Intellectual capital provides a new concept for measuring actual value of the assets and we can calculate future values of the firm. In this paper, we first calculate intellectual capital based on the ratio of market value/book value for three years period. Then we investigate the relationship between intellectual capital and growth rate of intellectual capital as well as financial performance of some publicly traded petrochemical and pharmaceutical firms. The results of our survey indicate that there is a positive relationship between intellectual capital and equity growth with EVA and return of assets. However, there is no meaningful relationship between intellectual assets with net earnings.

  20. Contributions of Science and Technology Parks Towards Firms' Performance in Pakistan

    Directory of Open Access Journals (Sweden)

    Wahid Bux Mangrio

    2013-07-01

    Full Text Available Several countries have adopted different strategies, models and policies to assist companies to develop their technological capabilities. These include high tech cluster development, creation of venture capital fund, establishment of technology incubation center, and Science & Technology parks. In turn, the creation of knowledge base industries, regional development, improves the technological infrastructure and life standard of the people. This paper discusses the contribution of science and technology parks in firms' performance in particularly employment, sales and profitability and also in creation of new businesses in information technology sector in Pakistan. This study is based on the case study of STPs (Software Technology Parks of Islamabad. The results revealed that the establishment of STPs could be helpful in the creation of new companies as half of firms located at the STPs were startup enterprises. It helps firms to enhance its growth performance in the first five years after starting their business at these STPs. By developing software parks in three major cities, Pakistan Software Export Board have achieved partially its objectives.

  1. Inter-firm network capability: how it affects buyer-supplier performance

    NARCIS (Netherlands)

    Ziggers, G.W.; Henseler, J.

    2009-01-01

    Purpose – The purpose of this paper is to offer a view that a firm's critical resources and capabilities span firm boundaries, and are embedded in inter-firm resources and routines. Design/methodology/approach – Building on a capability view the paper argues that firms can engender sustainable com

  2. The Knowledge-Base of the Firm in Biotechnology Based Sectors: Properties and Performance

    Directory of Open Access Journals (Sweden)

    Pier Paolo Saviotti

    2004-01-01

    Full Text Available Knowledge is becoming an increasingly important determinant of the performance of firms. This is particularly true in the biotechnology based sectors. In spite of this increased importance of knowledge we know very little about the nature and properties of the knowledge-base of firms. In this paper the problem of the dynamics of the creation and utilization of knowledge is discussed first at a general level and then by means of some techniques that can be used to map and measure the knowledge-base of firms. The knowledge-base (KB of a firm can be defined as the collective knowledge that the firm uses to achieve its productive purposes. The collective character derives from the fact that the KB results from the knowledge of individual members of the firm and by their interactions, as determined by the firm’s organizational structure. Thus the KB includes all the types of knowledge that are required to obtain the firm’s final products. The methods described in this paper are based on the study of the patents obtained by firms. Thus they are approximate methods in that they only represent the scientific and technological components of the KB. This is a good approximation in the case of highly knowledge dependent sectors such as the biotechnology based ones. The methods used fall essentially into two groups: on the one hand it is possible to obtain a graphic representation of the knowledge-base of a firm by means of lexicographic analysis, a scientometric technique, and, on the other hand some properties of the KB can be defined and measured based on patent statistics. For example, we can measure the degree of specialization, the scope and the coherence of the KB and study the influence of these properties on the firm performance. The two sets of methods and some results obtained by means of them will be described in the paper. The techniques described here allow to analyse the impact of the KB on a number of aspects of the behavior of the firm

  3. Business Contingency, Strategy Formation, and Firm Performance: An Empirical Study of Chinese Apparel SMEs

    Directory of Open Access Journals (Sweden)

    Ting Chi

    2015-03-01

    Full Text Available This study empirically investigated how small and medium-sized Chinese apparel enterprises (SME formed their strategy as a response to the characteristics of business environment in order to achieve competitive business performance. An environment-strategy-performance model was proposed and tested. Using primary data gathered by a questionnaire survey of the Chinese apparel industry, factor analysis and structural equation modeling (SEM were conducted for measurement and structural model analysis and hypothesis testing. Results show the proposed model met parsimonious statistical criteria. The differences in strategy responses to environment between high- and low-performing firms were striking. Confronting an increasingly turbulent business environment, high performers emphasized differentiation strategy through higher quality, better delivery performance, and greater flexibility than cost reduction. In contrast, low performers prioritized low cost while quality and flexibility were given certain weights. The lack of clear focus on strategies could result in a relatively lower performance. While the process of government-led industrial upgrading continues, forward-looking firms have proactively shifted their strategic focus from solely or mainly cost reduction to a variety of differentiating factors which bring in added value and are less imitable by competitors.

  4. Relationship Between Market Orientation and Business Performance in Czech and German High-Tech Firms

    Directory of Open Access Journals (Sweden)

    Patrik Jangl

    2015-12-01

    Full Text Available The main goal of this paper is to find out an index of market orientation, and explore the relationship between four components of market orientation in high-tech firms and their business performance. Business performance was studied as a one-dimensional construct. Market orientation in this study is defined as a process of intelligence generation about customers and competitors, intelligence dissemination and integration within the company across teams, and responsiveness to market intelligence in the form of coordinated action. The statistical sample was represented by 164 Czech and 187 German high-tech firms in the manufacturing industry. Respondents (sales and marketing managers completed a questionnaire and marked their rate of approval with individual statements on a Likert scale ranging from 1 to 7. Market orientation and business performance level was determined as the arithmetic mean (x̄ of the measured values. Depending on the size of the total market orientation index (MOI, Czech (x̄=5.2 and German (x̄=5.14 high-tech firms are medium market-oriented. The business performance index (BPI reached a slightly higher value in Germany (x̄=5.22 as compared to the Czech Republic (x̄=5.13. The main method to reach the target was correlation and regression analysis. This study confirmed a hypothesis about the existence of a correlation between components of market orientation and business performance. Three of the four relationships in the multiple regression model were significant. On the other hand, the study found no positive significant correlation between competitor intelligence generation and business performance.

  5. Firm size and productivity. Evidence from the electricity distribution industry in Brazil

    Energy Technology Data Exchange (ETDEWEB)

    Tovar, Beatriz [Departmento de Analisis Economico Aplicado y EIT, Universidad de Las Palmas de Gran Canaria (Spain); Javier Ramos-Real, Francisco [Departamento de Analisis Economico, Facultad de Ciencias Economicas y Empresariales, Campus de Guajara, Universidad de La Laguna, La Laguna, S/C de Tenerife, Espana (Spain); De Almeida, Edmar Fagundes [IE-UFRJ (Instituto de Economia-Universidade Federal do Rio de Janeiro) (Brazil)

    2011-02-15

    In this paper we apply Stochastic Frontier Analysis through a distance function to investigate the impact of firm size on productivity development in electricity distribution. We use a sample of seventeen Brazilian firms from 1998 to 2005 and decompose productivity into technical efficiency, scale efficiency and technical change. Moreover, a further step is to decompose the technical change measurement into several components. The results indicate that firm size is important for industry's productivity, and therefore a key aspect to consider when making decisions that affect the market structure in the electricity distribution industry. (author)

  6. Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies

    Directory of Open Access Journals (Sweden)

    Erdinc Karadeniz

    2011-01-01

    Full Text Available Aim of this study is to investigate the role of firm size on capital structure decisions of Turkish lodging companies. In this context, a survey questionnaire is developed and sent to unquoted Turkish lodging companies. 163 lodging companies answered the survey and they are classified according to their sizes. Empirical findings reveal that firm size is a significant factor for capital structure decisions of Turkish lodging companies. Firm size seems to affect lodging companies in using incentives, issuing common stock, using personal debt and determining target debt ratio. Most of the empirical findings seem to support pecking order theory.

  7. AN INTER-TEMPORAL ANALYSIS OF OPERATIONAL EFFICIENCY OF OIL FIRMS: FURTHER EVIDENCE FROM NIGERIA

    Directory of Open Access Journals (Sweden)

    David Mautin Oke

    2013-01-01

    Full Text Available There have been growing needs to investigate oil and gas firms more closely due to their corporate scandals. Globally, oil firm managements have become more risk intolerant. They are sometimes under pressure to deliver results within a short time, which often negatively affect their ability to undertake risky ventures that are rewarding.Applying the Data Envelopment Analysis, this paper shows a high level of technical operational inefficiency of 0.51 in Nigerian oil industry over the period 2006-2009. The fall in technical efficiency of the oil firms in 2009 might be attributed to the banking crisis in Nigeria in 2009 that affected financial operations of some oil firms that relied on banking credits for running their business, and the fall in global oil prices relative to mid 2008.

  8. Equity Returns, Firm-Specific Characteristics and Sector Rotation: Evidence from Turkey

    National Research Council Canada - National Science Library

    Selahattin Guris; Aynur Pala

    2014-01-01

      This paper examines the firm-spesific characteristics that affect on equity returns depending on sector rotation scheme throughout four financial cycle stages for an important emerging market, Turkey...

  9. Family Firms And Corporate Social Responsibility (CSR): Preliminary Evidence From The French Stock Market

    National Research Council Canada - National Science Library

    Issam Laguir; Jamal Elbaz

    2014-01-01

      This paper examines the CSR practices of family firms listed in the French financial market and distinguishes between those managed by a family member CEO and those managed by a competent external CEO...

  10. The Effect of Financial Performance and Environmental Performance on Firm Value with Islamic Social Reporting (ISR Disclosure as Intervening Variable in Companies Listed at Jakarta Islamic Index (JII

    Directory of Open Access Journals (Sweden)

    Ratri Rahma Frida

    2017-01-01

    Full Text Available This study examined how far ISR disclosure as the intervening variable could mediate the effect of financial performance and environmental performance on the firm value. The subjects of this study were the companies listed in Jakarta Islamic Index (JII in 2012-2014. The samples of the study were sixty companies chosen by purposive sampling method, and the analytical technic used path analysis. The results of this study proved that: (1 financial performance had positive effect to the firm value, (2 environmental performance had no effect to the firm value, (3 financial performance had positive effect to the ISR disclosure, (4 environmental performance had positive effect to the ISR disclosure, (5 ISR disclosure had positive effect to the firm value, (6 ISR disclosure could mediate the effect of financial and environmental performances on the firm value.

  11. Contingent feasibility for forest carbon credit: evidence from South Korean firms.

    Science.gov (United States)

    Roh, TaeWoo; Koo, Ja-Choon; Cho, Dong-Sung; Youn, Yeo-Chang

    2014-11-01

    Under the Kyoto Protocol, a global governmental response to climate change, protocol signatories make an effort to cut their greenhouse gas emissions. South Korea is not included in the list of Annex I countries; yet, South Korea is the seventh highest emitter of CO2. The South Korean government has enacted various institutional policies to encourage greenhouse gas reductions. While previous studies have focused on the guidance that reflects the stance of suppliers in the carbon market, this study focuses on South Korean firms' actual demand for forest carbon credits. By applying the contingent valuation method, we estimated domestic firms' willingness to pay for forest carbon credits. We then applied a rank-ordered logistic regression to confirm whether the rank of forest carbon credits, as compared to any other carbon credit, is influenced by a firm's characteristics. The results showed that Korean firms are willing to pay 5.45 USD/tCO2 and 7.77 USD/tCO2 for forest carbon credits in domestic and overseas forest carbon projects, respectively. Therefore, the introduction of forest carbon credits in the Korean carbon market seems reasonable. Analysis of the priority rankings of forest carbon credits, however, demonstrated that forestry projects were least likely to be ranked by firms as their first priority. Although relative preferences for forest carbon credits were influenced by individual firms' characteristics such as prior experience of environmental CSR related activities and whether the firm established an emissions reduction plan, the impact of perceived behavior control, whether the firm was included in the emissions target management scheme on forest carbon credits was negligible. Therefore, forest carbon credits are not a feasible solution without strong government support or institutional instruments. The results of this study are expected to provide policy makers with realistic approaches to formulate climatic change-related policies.

  12. Exports and Firm survival: The first evidence from Vietnam private manufacturing SMEs

    OpenAIRE

    Huong Vu; Steven Lim

    2013-01-01

    This study contributes to the literature by investigating for the first time linkages between export behaviour and firm survival in Vietnam. Using an unbalanced panel dataset from 2005-09, our study shows no difference in the survival probability among exporters only, importers only, or two-way traders with non-traders. However, by digging deeper into export status, the results indicate that the probability of firm survival has a positive association with continuous exporters, but is negative...

  13. The Diffusion of E-commerce at the Firm Level: Theoretical Implications and Empirical Evidence.

    OpenAIRE

    Santarelli, Enrico; D'Altri, Samuele

    2001-01-01

    As a specific institution of distributive trades, e-commerce displays similarities with retail stores and mail ordercompanies. As well as providing theoretical support for the assumption that e-commerce is a way to sell certain goods and services at prices potentially lower than those of traditional distributive channels, this paper analyses its inter-firm diffusion among a sample of firms (mostly SMEs) in Italy. The paper has three main purposes. Firstly, it challenges the view of e-comme...

  14. The Diffusion of E-commerce at the Firm Level: Theoretical Implications and Empirical Evidence

    OpenAIRE

    Santarelli, Enrico; D'Altri, Samuele

    2001-01-01

    As a specific institution of distributive trades, e-commerce displays similarities with retail stores and mail order companies. As well as providing theoretical support for the assumption that e-commerce is a way to sell certain goods and services at prices potentially lower than those of traditional distributive channels, this paper analyses its inter-firm diffusion among a sample of firms (mostly SMEs) in Italy. The paper has three main purposes. Firstly, it challenges the view of e-commerc...

  15. The Diffusion of E-commerce at the Firm Level: Theoretical Implications and Empirical Evidence.

    OpenAIRE

    Santarelli, E.

    2001-01-01

    As a specific institution of distributive trades, e-commerce displays similarities with retail stores and mail order companies. As well as providing theoretical support for the assumption that e-commerce is a way to sell certain goods and services at prices potentially lower than those of traditional distributive channels, this paper analyses its inter-firm diffusion among a sample of firms (mostly SMEs) in Italy. The paper has three main purposes. Firstly, it challenges the view of e-commerc...

  16. Why Isn't South Africa Growing Faster? Microeconomic Evidence from a Firm Survey

    OpenAIRE

    Clarke, George; Habyarimana, James; Kaplan, David; Ramachandran, Vijaya

    2008-01-01

    The investment levels in South Africa have remained relatively low despite an overall picture of economic stability and good governance. This analysis looks at South Africa's investment climate, using data from an Investment Climate Survey (ICS) of over 800 firms conducted by the Department of Trade and Industry and the World Bank. It suggests that exchange rate instability and the cost of crime may be deterrents to investment. But more importantly, labour regulations may be discouraging firm...

  17. Firm, Country and Macroeconomic Determinants of Capital Structure: Evidence from Turkish Banking Sector

    Directory of Open Access Journals (Sweden)

    Nuri Baltacı

    2014-03-01

    Full Text Available This study explores the significance of firm-specific, country, and macroeconomic factors in explaining variation in leverage using a sample of banks from Turkish banking sector. The analysis is based on quarterly firm-level data from Turkish banking sector in 2002–2012. We aims to contribute to the empirical capital structure literature in the following ways. Our first contribution comes from assessing the importance of firm-specific factors, country-level factors and industrial factors for capital structure decisions in Turkish banking sector. Second, we employ appropriate and advanced dynamic panel data estimators, Blundell and Bond’s (1998 generalized methods of moment’s estimators (GMM System. We find that leverage is significantly and positively associated with average industry leverage, firm size and GDP growth. We find also that leverage is significantly and negatively associated with tangibility, profitability, inflation and financial risk. The regression results for leverage are both theoretically and empirically plausible for banks in Turkey. Moreover, tangibility, profitability and GDP growth are consistent with the predictions of the pecking order theory, while firm size is consistent with the predictions of the trade-off theory. Our findings suggest that the capital structures of financial and non-financial firms are ultimately determined by the same drivers.

  18. Linking Entrepreneurial Orientation to Firm Performance in a Post-Socialist Market Context: the Case of Hungary

    Directory of Open Access Journals (Sweden)

    David KOVACS

    2016-12-01

    Full Text Available Entrepreneurial orientation provoked the interest of numerous scholars as well as political and administrative decision-makers. Both start-ups and already established corporate entities are increasingly persecuting new opportunities, products, and business models in order to establish superiority above their competitive environment. The tendencies evince an optimist impact of entrepreneurial orientation on business performance, namely on financial performance. Beyond the aforementioned relationship, there are impulses such as environmental and organizational factors, which are affecting the businesses. The results of this study provide evidence of the effect of entrepreneurial orientation on business performance in a post-socialist context. We test the impact of three moderators on this bivariate relationship. In contrast to the substantial body of literature for Western markets, we contribute to minimizing the considerable gap of research in post-socialist economies. Entrepreneurial orientation as an organizational behavior may affect the financial performance of businesses differently in distinct market contexts. Both, internal and external factors are crucial to identifying, analyze and monitor, to achieve superior performance and to overcome competitors. This study builds upon a stratified sampling survey of Hungarian company owners and managers from the Amadeus database. The study uses a deductive approach. For the analysis, we rely on structural equation modeling using the PLS algorithm. Our study contributes to the existing literature by means of confirming the entrepreneurial orientation to firm performance relationship for Hungary. In this context, we test the moderating effects of environmental dynamism, environmental hostility as environmental factors and firm age as an organizational factor. Environmental hostility is closely related to an unfavorable environment, deriving from rapid and radical changes in the industry, which are

  19. A Systematic Analysis of Innovation Studies: A Proposed Framework on Relatioship Between Innovation Process and Firm's Performance

    Directory of Open Access Journals (Sweden)

    Suriati Binti Zainal Abidin

    2012-01-01

    Full Text Available Innovation has been discussed in a broad field. Scholars have defined and discussed innovation in various forms and perspectives. Whether empirical or conceptual, the discussions have delineated innovation in various perspectives such as organizational innovation, newness, innovation management, innovation as interactive model and types of innovation. In fact, due to the competitive environment, innovation is crucial and has become a niche for firm’s performance. This paper aims to provide a systematic analysis and propose framework that emphasizes on investigating the relationship between innovation and firm performance. Based on literature review, this paper proposes six constructs which can be used to examine the innovation implementation at firm level. The constructs are leadership, managerial levers, business processes, innovation process, innovation outcome and firm performance. Keywords: innovation, innovation outcomes, firm performance

  20. Link between HR practices and organizational performance in small firms: A case for manufacturing sector of Pakistan

    National Research Council Canada - National Science Library

    Muhammad Fayyaz Sheikh; Syed Amjad Fareed Hasnu; Imran Khan

    2015-01-01

    .... Thus it can be safely concluded that although the nature of HR practices in small firms is informal but the organizational performance can be improved by adopting carefully tailored HR practices...

  1. Effects of Family Ownership, Debt and Board Composition on Mexican Firms Performance

    Directory of Open Access Journals (Sweden)

    Juan Manuel San Martin-Reyna

    2015-03-01

    Full Text Available This study examines the relationship between ownership structure and performance of public firms in Mexico, considering debt and the structure of the board of directors as contextual and institutional factors. This research seeks to explain the mixed results about the relationship of ownership and performance presented by other relevant studies in family and non-family businesses, mainly in emerging countries. The results confirm the positive association between family ownership concentration and performance, calculated by Tobin’s Q, showing how the participation of inside shareholders on the board and a low debt level contribute to higher performance. However, the association of these variables with performance shows a contrasting effect in the case of family as compared to non-family businesses. The particular corporate legal context in Mexico could be highlighted as one of the main reasons for these results.

  2. Impacts of Corporate Governance on Firm Performance: Turkey Case with a Panel Data Analysis

    Directory of Open Access Journals (Sweden)

    Cahit Yilmaz

    2016-01-01

    Full Text Available There has been increasing attention all over the world on corporate governance issues after experiencing some financial crises and corporation scandals. It is assumed that the investors search for emerging economies to diversify their investment portfolios and maximize their returns is considering corporate governance applications. Investors are also concerned about governance factors to minimize their risks. In this study, we examine the impact of corporate governance variables on firms’ financial performance in Turkey. The relationship between ownership structures, board structures and financial performances are tested. Influence of corporate governance variables, board size, share of independent board members, foreign investors, leverage ratio on firms’ financial performance “return on assets” are utilized on firms traded in Turkey’s stock exchange BIST 100. This research concludes that corporate governance variables influence firms’ performances. Shares of independent board members and leverage have negative influences while foreign ownership has a positive influence on firms’ financial performances.

  3. The Impact of Internal and External Resources, and Strategic Actions in Business Networks on Firm Performance in the Software Industry

    OpenAIRE

    Anggraeni, E.

    2014-01-01

    Understanding the variance in firm performance has been an important topic in the strategic management literature. In the last two decades it has become particularly interesting as business networks increasingly have become an integrated part of a firm's environment. Besides the internal resources, the less-controlled external resources in the firm’s business networks to affect its performance too. The uncertainty associated with the lower levels of control over external resources implies tha...

  4. The Impact of Internal and External Resources, and Strategic Actions in Business Networks on Firm Performance in the Software Industry

    OpenAIRE

    Anggraeni, E.

    2014-01-01

    Understanding the variance in firm performance has been an important topic in the strategic management literature. In the last two decades it has become particularly interesting as business networks increasingly have become an integrated part of a firm's environment. Besides the internal resources, the less-controlled external resources in the firm’s business networks to affect its performance too. The uncertainty associated with the lower levels of control over external resources implies tha...

  5. The IT Impact on the Productivity and the Organizational Performance of Firms in Romania. A model of Empirical Analysis

    Directory of Open Access Journals (Sweden)

    Cristina ENACHE

    2011-11-01

    Full Text Available The paper propose an analysis based on an empirical model of IT impact on firms performances of Romania. There are presented the model, the equations of the model and the results of statistical processing. All these shown that the ICT impact on firm performance is greater and positive if the information technologies are accompanied by a proactive management policy and an organizational culture.

  6. Firms' degree of born-globalness, international entrepreneurial orientation and export performance

    DEFF Research Database (Denmark)

    Servais, Per; Kuivalainen, Olli; Sundqvist, Sanna

    2007-01-01

    . This article begins with a review of the existing literature on born-globals, and subsequently explores the relationship between entrepreneurial orientation (EO) and two different born-global strategies, namely true born-global and apparently born-global (born-international), and the effectiveness of these two...... born-global pathways. The results of our empirical study on 185 Finnish exporting firms show that those that qualified as true born-globals had better export performance. Furthermore, depending on the degree of born-globalness, different dimensions of EO were of importance....

  7. "Are Japanese Firms Becoming More Independent from Their Banks?: Evidence from the Firm-Level Data of the "Corporate Enterprise Quarterly Statistics," 1994-2009"

    OpenAIRE

    Miwa, Yoshiro

    2011-01-01

    The Ministry of Finance's "Corporate Enterprise Quarterly Statistics" (Hojin kigyo tokei kiho) is the only statistical source of well-balanced information about the financing behavior of Japanese firms. Indeed, there are few comparable sources available anywhere in the world. Using this firm-level data set from 1994 to 2009, the author investigates the financing behavior of Japanese firms with over \\10 million in paid-in capital. The conclusions contrast sharply with the conventional wisdom. ...

  8. The impact of the dimensions of environmental performance on firm performance in travel and tourism industry.

    Science.gov (United States)

    Tan, Siow-Hooi; Habibullah, Muzafar Shah; Tan, Siow-Kian; Choon, Shay-Wei

    2017-12-01

    This study investigates the impact of the aggregate and individual dimensions of environmental performance (EP) on financial performance (FP), based on a dataset covering the travel and tourism industry (airlines, casinos, hotels, and restaurants) across different economic regions over the period 2003-2014. The results reveal that EP positively affects the FP in the hotel industry when aggregate EP is used. When individual dimensions of EP are considered, resource reduction is found to positively (negatively) affect the performance in the hotel (airline) industry, while product innovation positively affects the performance in the restaurant industry. Hence, the trade-off effect seems to be dominant in the airline industry, and the 'heterogeneous resources and reputation-building' hypothesis is evident in both the hotel and restaurant industries. In addition, in general, the findings support the positive moderating effect of slack resources on the relationship between the individual dimensions of EP and FP in the travel and tourism industry, and, hence, are supportive of the slack resources hypothesis. These effects, however, vary depending on the travel and tourism industry under investigation. Copyright © 2017 Elsevier Ltd. All rights reserved.

  9. Link between HR practices and organizational performance in small firms: A case for manufacturing sector of Pakistan

    Directory of Open Access Journals (Sweden)

    Muhammad Fayyaz Sheikh

    2015-12-01

    Full Text Available examine the impact of some of the human resource practices on organizational performance in small manufacturing firms. Using various statistical techniques confirming the adequacy of the model for small manufacturing firms, the result of the study based on the data collected through questionnaires, revealed that HR practices like recruitment, training, compensation and promotion do affect performance of organization. The intensity of these effect are positively mediated by HR outcomes i.e. employees skill, attitude and behavior. Thus it can be safely concluded that although the nature of HR practices in small firms is informal but the organizational performance can be improved by adopting carefully tailored HR practices keeping in mind the limited resources of small firms.

  10. THE EFFECT OF FIRM CHARACTERISTIC ON INTELLECTUAL CAPITAL DISCLOSURE IN ISLAMIC BANKING: EVIDENCE FROM ASIA

    Directory of Open Access Journals (Sweden)

    Tri Damayanti

    2014-03-01

    Full Text Available This research aims to investigate the relationship between firm’s characteristic (firm size, profitability, leverage, and company age and intellectual capital disclosure. This research also uses control variables such as board size, firm’s audit, and role of duality. Sample in this research are 34 Islamic bank’s annual reports collected by pooled data. Dependent variable in this research is intellectual capital disclosure. Dependent variable is measured by content analysis method. Content analysis is supported by disclosure index that measured variety of intellectual capital disclosure. It is also supported by word count that represented volume of intellectual capital disclosure respectively. Independent variable in this research are firm’s characteristic, consists of firm size, profitability, leverage, and company age. Data are analyzed by using SPSS program 16.00 version. Result of analysis indicates that there exist a significant relationship between variety of intellectual capital disclosure with all firm characteristic except for firm’s size. In other side, there is significant association volume of intellectual capital disclosure with all firm’s characteristic except for profitability. The influence of firm characteristic on intellectual capital mechanism on human, structural, and relational capital disclosure, based on two matrixes, is also explored.Keywords : Firm Characteristic, Intellectual Capital Disclosure, Content Analysis, Islamic Banking

  11. The impact of information disclosure on market liquidity: Evidence from firms' use of Twitter

    Science.gov (United States)

    Qu, Qixing; Wang, Lin; Qin, Liangjuan; Zhao, Xiaoye; Wang, Lijie

    2017-01-01

    Despite the popular use of social media by firms, empirical research investigating their economic values still lags. Based on the Security Exchange Commission's (SEC) new regulation on Fair Disclosure valid important corporate information discloses via social media (RIDSM), in this study, we examine the effectiveness of this new regulation to market liquidity. We collect trade data including daily volume and bid-ask spread to assemble a unique data set at individual firm level from S&P 500 firms and analyze the firms' bid-ask spread and volume before and after issuing the regulation. This natural experiment allows us to separate the effect of regulation from the effect of other confounding factors. The results from our panel data analyses indicate that bid-ask spread has decreased by about 5% in response to the new regulation. Our results are statistically significant and highly robust. We also examine the impact of the new regulation on a volume-based measure of liquidity, and find that the regulation is associated with greater volume, consistent with a reduction in information asymmetry. Moreover, this result holds mainly for firms that are high-tech, consistent with them being in greater need of this additional information disclosure channel.

  12. Rapid Internationalization of SMEs: Evidence from Born Global Firms in Chile

    Directory of Open Access Journals (Sweden)

    Christian A. Cancino

    2014-10-01

    Full Text Available The literature on born global firms in developed countries has revealed some factors that influence the rapid internationalization of Small and Medium Enterprises (SMEs, such as the technological level of the sector in which the firm participates, psychological and geographical distances from the target markets, and the existence of contact networks. To date, little research has been carried out on this topic for Latin American countries. This paper explores how certain determinants influence Chilean born global firms. A logistic regression model is used to analyze 112 SMEs with regular export activities. The results show that Chilean born global firms are influenced by national and international contact networks that their founders are able to generate. The psychological distance between Chilean SMEs and developed countries in Asia, North America and Europe also influences the internationalization of Chilean SMEs. The principal characteristic of Chilean born global firms is their lack of participation in highly technological sectors, with these SMEs instead being involved in sectors that actively exploit natural resources. The results of this study permit certain public policy recommendations to be made that might boost the development of export SMEs.

  13. Diversification and Performance of Group-Affiliated Firms during Institutional Transitions: The Case of the Chinese Textile Industry

    Directory of Open Access Journals (Sweden)

    Qiang Zhang

    2011-01-01

    Full Text Available Problem statement: Business groups play significant roles and evolve with the changing institutional environments in many emerging Asian economies. A study of how the institutional transition and the resultant ‘institutionally rooted evolution’ of business groups affect the diversification outcomes of affiliated firms will therefore help to deepen our understanding of this unique organizational form. Approach: This study uses the 2001-2005 data on listed firms from the Chinese textile industry and estimates the diversification effects of all firms in the sample and the differences in the diversification effects between group-affiliated firms and their stand-alone counterparts. Results: A positive relationship is found between the listed textile firms’ unrelated diversification and their firm value during the period 2001-2005. Furthermore, the results indicate that group affiliation has complicated impacts on the diversification-performance relationship of the listed firms. Although group-affiliated firms are more successful in pursuing unrelated diversification when compared with stand-alone firms, such a difference in performance outcomes is statistically weak (as measured by Tobin’s Q. Furthermore, it is found that group-affiliated firms perform related diversification worse than their stand-alone counterparts (as measured by both ROA and Tobin’s Q. Conclusion: At late stages of the institutional transition, as in China at present, the dominant influence of institutional environments on the diversification-performance link of firms still works and motivates business groups to evolve organizationally. Such an organizational evolution has complex implications for group-affiliated firms’ diversification: the weak performance advantage from unrelated diversification suggests that business groups’ organizational evolution may contribute to the persistence of the comparative strength of business groups’ internal markets

  14. STUDY ON THE PERCEPTION OF THE CORPORATE PERFORMANCE IN ACCOUNTING AND AUDIT FIRMS

    Directory of Open Access Journals (Sweden)

    Liliana Feleaga

    2013-07-01

    Full Text Available The environment in which the accounting and auditing firms operate is changing. The economic, technological and financial contexts directly affect their business. In addition, the customers have become more fastidious in terms of the nature, the speed and the precision of the required services. All these developments force the firms to improve their organization by incorporating appropriate performance measurement systems. The objective of this paper is to examine how the organizational performance it is perceived in accounting and auditing firms. In this sense, we checked the perspectives of the balanced scorecard model in a Big Four office and in a small office. The sample consists of 10 Romanian auditors. Eight of auditors are working in one of the Big Four. To achieve this study, were selected only managers. The other two auditors operate in a small office, they being, at the same time, also associates. The sample is homogeneous in terms of the training, the sector of activity and experience. To enable an objective analysis of results, the name of the offices will not be made public. The results showed that in the Big Four office all four perspectives of the balanced scorecard model are checked, while in the small office the number of perspectives is lower, because learning is informal and not materialized. On this perspective, the Big Four office, periodically analyzes the results and try to identify the causes that led to differences in the objectives set. Possible causes that were invoked: overloading of the auditor, additional works, not included in the letter of assignment and the lack of competence of the auditor. Regarding the internal perspective, each office has its own mode, but obviously the Big Four office has human, logistics and financial resources more important, that enabling it to keep its reputation in the market. Instead, the financial goals are the same for both offices analyzed: profitability increasing.

  15. Strategic Management Training and Commitment to Planning: Critical Partners in Stimulating Firm Performance.

    Science.gov (United States)

    Newkirk-Moore, Susan; Bracker, Jeffrey S.

    1998-01-01

    A study of 157 small financial firms found a significant relationship between strategic management training for senior managers and the firm's level of commitment to planning, resulting in a return on investment for stockholders. (SK)

  16. Innovation Networks: the Contribution of Partnerships to Innovative Performance of Firms in the Brazilian Electrical-Electronics Industry

    Directory of Open Access Journals (Sweden)

    Silvye Ane Massaini

    2015-01-01

    Full Text Available Innovation networks have been identified in the literature as a way to complement firms’ innovative capabilities through collaboration with other partners. To provide empirical evidence for this assertion, this paper investigates the contribution of partners established in innovation networks for innovative performance of firms in the Brazilian electricalelectronics industry. For this purpose, we carried out an exploratory and descriptive survey among 185 companies. The data were analyzed using structural equation modeling (SEM. As the main findings, we observed that the establishment of collaborative relationships with customers, competitors and universities/research institutions can contribute to organizational and process innovation. However, despite obtaining some significant results concerning the contribution of different partners in the network, electrical-electronics industry companies also attach great importance to internal activities to develop their innovations.

  17. Determinants of corporate cash holdings: Evidence from Portuguese publicly traded firms

    Directory of Open Access Journals (Sweden)

    Fernandes, Filipa

    2017-05-01

    Full Text Available This paper investigates the determinants of cash holdings of publicly traded Portuguese firms. We find that such firms hold less cash than similar companies operating in countries where both shareholders and creditors’ rights are more tightly protected by the law. In addition, our regression results suggest that leverage, other liquid assets, and firm growth are negatively correlated with our sample firms’ cash holdings whereas long-term debt and financial distress are positively correlated. Our findings cannot be reconciled with just one of the existent theories (trade-off, pecking order and free cashflow theory, and emphasize the importance of a country’s legal, institutional, and economic environment for explaining firms’ cash holdings decisions.

  18. INTERNAL FINANCIAL CONSTRAINTS, EXTERNAL FINANCIAL CONSTRAINTS AND INVESTMENT CHOICE: EVIDENCE FROM PAKISTANI FIRMS

    Directory of Open Access Journals (Sweden)

    Dr. Muhammad AZAM

    2011-10-01

    Full Text Available The purpose of this study is to analyze the impact of internal and external financial constraints on investmentchoice. The data have been taken from 9 major sectors (52 listed firms in the Karachi Stock Exchange namely; Pharmaceutical & Bio Technology, Textile, Sugar, Tobacco, Chemicals, Oil and Gas, Fixed line Telecommunication, Industrial metal and Mining, and Cement sectors for the time period 2004 to 2010 on annual basis. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, and investment. The empirical findings show that there is positive relationship between the firms’ size and investment while a negative relationship exists between firms’ age and investment. It also reports that there is negative relationship between dividend payout ratio and the investment. This shows that if a firm grows old or high dividend payout ratio then it will tend to spend less for expansion as compared to the young firms.

  19. Direct effect of ownership and technology import: Firm level evidence from large and medium-enterprises in Shanghai

    Institute of Scientific and Technical Information of China (English)

    ZHU Pingfang; LI Lei

    2007-01-01

    This paper explores the direct effect of ownership and technology imports under the fiamework of neoclassical economic theory.The econometric analysis is based on panel data from a random sample of large and mediumenterprises in Shanghai,during the period of 1998 to 2003.The results show that Sino-foreign joint ventures,Sino-foralgn cooperative enterprises and foreignfunded enterprises (SANZI) enjoy higher labor productivity and total factor productlvity (TFP) than domestic enterprises.Intra-firm diffusion of non-codified technology,proxied by ovwnership,is the main source of their better performance,whereas internally transferred codified technology makes little contribution to TFP.For state-owned enterprises,codified technology imports have significantly raised both labor productivity and TFP,but such positive effect is significantly dependent on the S&T human resource.In contrast,no evidence supports that introduction of foreign technology has enhanced the productivity in domestic nonstate-owned enterprises.The empirical results indicate that SANZI do not have a distinct advantage in their codified technology.In addition,inadequate investment in assimilation process and research and development together with inefficient management of science and technology activities,may impede the use of imported technology.

  20. Factor Determining Board Size and the relationship between Board Size and Firm Performance: an Investigation of Turkish Capital Market

    Directory of Open Access Journals (Sweden)

    Mehmet AYGÜN

    2011-06-01

    Full Text Available The main purpose of this study is to examine factors determining corporate board size and the relationship between corporate board size and firm performance. To achieve this objective data from 98 companies registered in the Istanbul Stock Exchange during the period of 2006–2007 were used. Regression and correlation analyses were used for empirical analysis. As a result of the analyses, firm size was found to be the most important factor in determining corporate board size. Moreover, there is statistically significant negative correlation between corporate board size and firm debt ratio

  1. Impact of Public Policy on Firm Innovation Investment and Performance:Evidence from High Technology Industries in Guangdong Province%公共政策对企业创新投入与绩效的影响--广东高科技行业实证研究

    Institute of Scientific and Technical Information of China (English)

    兰赛; 赵引

    2014-01-01

    Based on the past experiences of developed countries, public policies may determine whether a country’s industrial technology can leap forward during key stages of overall technology development.Thus, it is an important topic to understand the impact of public policies on firm and industry development, and their potential impact on related stakeholders.This paper proposes a typology of public policies.Based on relevant policy information and industrial innovation data of high technology industries in Guangdong province between 2003 and 2011, this paper conducts an empirical study of the relationship between public policy and firm innovation investment and performance.Results show that, on one hand, environmental and market structure policies have significant impacts on firm investment in innovation.On the other hand, the favorable treatment of public policy on state-owned enterprises may cause negative impact on firm innovation performance.%根据发达国家经济发展的历史经验,在整体技术水平发展的关键阶段,政府的公共政策往往决定了该国的产业技术水平。因此,从政府和企业两方面探讨何种类型的公共政策有利于产业的全面提升,以及它们对各方的利益和长远发展会产生怎样的潜在影响,是一个具有重要理论和现实意义的主题。本文提出了对政府公共政策进行分类编码的方法,并根据2003年至2011年间广东省高技术行业的技术创新数据和相关政策信息,对政府公共政策与企业创新绩效之间的关系进行了实证研究。研究结果表明,一方面,环境政策与市场结构政策对企业创新投入存在显著影响;另一方面,公共政策给予国有企业的市场优势地位会对该行业创新绩效带来负面影响。

  2. Firing Costs and Flexibility: Evidence from Firms' Employment Responses to Shocks in India.

    Science.gov (United States)

    Adhvaryu, Achyuta; Chari, A V; Sharma, Siddharth

    2013-07-01

    A key prediction of dynamic labor demand models is that firing restrictions attenuate firms' employment responses to economic fluctuations. We provide the first direct test of this prediction using data from India. We exploit the fact that rainfall fluctuations, through their effects on agricultural productivity, generate variation in local demand within districts over time. Consistent with the theory, we find that industrial employment is more sensitive to shocks where labor regulation is less restrictive. Our results are robust to controlling for endogenous firm placement and vary across factory size in a pattern consistent with institutional features of Indian labor law.

  3. Innovation in clean coal technologies: Empirical evidence from firm-level patent data

    OpenAIRE

    Kruse, Jürgen; Wetzel, Heike

    2016-01-01

    This article empirically analyzes supply-side and demand-side factors expected to affect innovation in clean coal technologies. Patent data from 93 national and international patent offices is used to construct new firm-level panel data on 3,648 clean coal innovators over the time period 1978 to 2009. The results indicate that on the supply-side a firm's history in clean coal patenting and overall propensity to patent positively affects clean coal innovation. On the demand-side we find strong...

  4. Family involvement, internal control and agency costs – Evidences from China's listed family firms

    Directory of Open Access Journals (Sweden)

    Zhang Wangfeng

    2016-03-01

    Full Text Available This study examines the agency costs of 314 family firms listed on Shanghai and Shenzhen Stock Exchange in China. The results show that agency costs of family firms increase significantly with the enhancement of family's ownership and the separation of ownership and control, while family involvement in management can reduce the agency costs. By including the variable proxying internal control and the interaction term between internal control and family involvement in the empirical model, we still find that the effects of family involvement on agency costs are contingent on the quality of internal control.

  5. Entrepreneurial Orientation and Firm Performance – Challenges for Research and Practice

    Directory of Open Access Journals (Sweden)

    Agnieszka ŻUR

    2014-06-01

    Full Text Available The aim of the article is to critically review the body of literature exploring the  nature  and  various  contexts  of  EO-firm  performance relationship,  as  well  as identify contemporary challenges of this stream of research. The article is an overview of the most important articles of  the  last  two  decades  of  research  devoted  to  EO-  firm  performance  relationship, based on the amount of citation references providedby Ebsco scholar database. The review  focuses  on: (i  the  performance  indicators  applied  in  research,  (ii  sampling and time frame of the studies as well as (iii moderating factors of this relationship. Despite huge progress made, the review reveals important issues that have been side-lined or neglected and remain to be challenged. This paper presents four major  suggestions for a more  inclusive,  broader  stream  of  research:  (i  to  take  inspiration  from  stakeholder theory,  (ii  to  spread  the  research  of  EO-firm  performance  relationship  across different  entrepreneurship  contexts,  such  as  social,  non-profit  and  institutional, adjusting  scales  and  measures,  (iii  to  apply  a  more  dynamic  approach  to  EO-firm performance relationship, and (iv to diversify theapplied research methods. The  article  serves  to  broaden  the  scope  of  EO-firm performance relationship. The discussion presents significant potential contributions brought  to EO  domain  by  stakeholder  theory.  It  issues  a  call  to identify  and  pursue research questions that more effectively address contemporary challenges. Not only does  it  outline  issues  and  methods  worthy  of  greater  attention  in  future  study, but more importantly, leads to extending EO research beyond its current boundaries.

  6. The moderating role of absorptive capacity and the differential effects of acquisitions and alliances on Big Pharma firms' innovation performance.

    Science.gov (United States)

    Fernald, K D S; Pennings, H P G; van den Bosch, J F; Commandeur, H R; Claassen, E

    2017-01-01

    In the context of increased pharmaceutical innovation deficits and Big Pharma blockbusters' patent expirations, this paper examines the moderating role of firms' absorptive capacity in external innovation activities of Big Pharma firms. The study indicates a rising interest of Big Pharma in acquisitions of and alliances with biotechnology companies. Unfortunately, this increased interest is not reflected in the number of new drugs generated by Big Pharma. We find that acquisitions of biotech companies have negatively affected Big Pharma firms' innovation performance on average but these acquisitions might have a positive effect at higher levels of acquiring firms' absorptive capacity. Moreover, also acquisitions of pharma companies and alliances with biotech companies only have a positive effect on innovation performance at sufficiently high levels of absorptive capacity. The moderating role of absorptive capacity implicates that a tight integration of internal R&D efforts and (unrelated) external knowledge is crucial for harnessing complementarity effects.

  7. Essays on Firm Behavior in Developing Economies

    Science.gov (United States)

    Abeberese, Ama Baafra

    The performance of firms is central to growth in developing economies. A burgeoning literature within development economics seeks to understand the behavior of firms in developing countries and the constraints to their performance. This dissertation explores two types of constraints---infrastructure-related constraints and trade-related constraints---faced by manufacturing firms in developing countries. Despite the widely acknowledged importance of infrastructure for economic growth, there has been relatively little research on how infrastructure affects the decisions of firms. Electricity, in particular, is commonly cited by firms in developing countries as a major obstacle to their performance. In the first two chapters, I analyze the responses of firms to two types of electricity constraints, namely electricity prices and electricity shortages. Chapter 1 provides evidence on how electricity prices affect a firm's industry choice and productivity growth using data on Indian manufacturing firms. I construct an instrument for electricity price as the interaction between the price of coal paid by power utilities, which is arguably exogenous to firm characteristics, and the initial share of thermal generation in a state's total electricity generation capacity. I find that, in response to an exogenous increase in electricity price, firms reduce their electricity consumption and switch to industries with less electricity-intensive production processes. I also find that firm output, machine intensity and labor productivity decline with an increase in electricity price. In addition to these level effects, I show that firm output and productivity growth rates are negatively affected by high electricity prices. These results suggest that electricity constraints faced by firms may limit a country's growth by leading firms to operate in industries with fewer productivity-enhancing opportunities. Chapter 2 examines the impact of electricity shortages on firm investment. I

  8. Use of performance standards in behavioral health carve-out contracts among Fortune 500 firms.

    Science.gov (United States)

    Merrick, E L; Garnick, D W; Horgan, C M; Goldin, D; Hodgkin, D; Sciegaj, M

    1999-06-25

    To determine the prevalence and nature of performance standards in specialty managed behavioral healthcare contracts among Fortune 500 companies. This was a cross-sectional survey of all companies listed on the Fortune 500 during 1994, 1995, or both. From April 1997 to May 1998 we conducted a mailed survey with phone follow-up. Of the 68% of firms that responded, over one third reported carve-out contracts. The survey focused on whether companies had behavioral health carve-out contracts with specialty vendors and characteristics of these contracts, including the use of performance standards. More than three quarters of the Fortune 500 companies reporting specialty behavioral healthcare contracts used at least one performance standard. Most common were administrative standards (70.2%) and customer service standards (69.4%). About half of the companies used quality standards, whereas only a third used provider-related standards. Most (58.8%) companies using performance standards also specified financial consequences. Larger Fortune 500 firms were significantly more likely to use performance standards. Risk contracts and contracts that included all covered employees were also more likely to include some categories of standards. Administrative and customer service standards may be most common because companies find it easier to specify those standards, especially compared with clinical quality measures. To the extent that employers want to obtain the most value from their behavioral healthcare purchasing, we expect that more will begin to adopt quality standards in their contracts, especially as performance measures become more refined. Reliance on accreditation, however, is an alternative approach for employers.

  9. The Dividend and Share Repurchase Policies of Canadian Firms : Empirical Evidence based on New Research Design

    NARCIS (Netherlands)

    de Jong, A.; van Dijk, R.; Veld, C.H.

    2000-01-01

    We empirically investigate dividend and share repurchase policies of Canadian firms. We use several logit regression analyses to test the structure and determinants of the dividend and share repurchase choice. We have sent a questionnaire to the 500 largest non-financial Canadian companies listed on

  10. Bankruptcy Prediction of the Electrical Firms within Iranian Electricity Exchange: Empirical Evidence from Tehran Stock Exchange

    Directory of Open Access Journals (Sweden)

    S. M. Mazhari

    2013-06-01

    Full Text Available Electricity exchange is known as the trajectory of power industry restructuring which facilitates achieving a direct fair market and accomplishing the privatization. However, little knowledge about market participants and their decisions may increase the investment risk and affect the economic boom cycle. As the Iranian electricity stock has started working in 2011 and the subscription has been made, it will start its services in near future; so, it would be very helpful to inform the investors about what may happen, and how to direct their portfolio into the satisfactory corridor. One way to arrive capital investment security is to predict insolvency of a business unit. Predicting the possibility of a company’s insolvency not only can prevent losing the principle and capital interest of investing, but also facilitates the most important decision makings. This paper proposes a new model for insolvency prediction of the Iranian electrical firms within future electricity exchange via an artificial bee colony algorithm. To do so, 118 firms among the electrical and energy industrial firms listed in Tehran Stock Exchange (TSE are assumed; they are used as training data to find a suitable linear classifier. The introduced algorithm is conducted on 40 test firms and obtained results are discussed in several scenarios.

  11. Place-Based Policies, Firm Productivity and Displacement Effects: Evidence from Shenzhen, China

    NARCIS (Netherlands)

    H.R.A. Koster (Hans); F.F. Cheng (Fang); M. Gerritse (Michiel); F.G. van Oort (Frank)

    2016-01-01

    textabstractWe analyse the economic impacts of place-based policies that aim to enhance economic development by stimulating growth and productivity of firms in designated areas. We use unique panel data from China with information on manufacturing firms’ production factors, productivity and

  12. Wages and commuting: quasi-natural experiments' evidence from firms that relocate

    DEFF Research Database (Denmark)

    Mulalic, Ismir; N. Van Ommeren, Jos; Pilegaard, Ninette

    2014-01-01

    We examine individual-level compensating differentials for commuting distance in a quasi-natural experiment setting by examining how wages respond to changes in commuting distance induced by firm relocations. This set-up enables us to test for the relevance of job search frictions within labour...

  13. WAGES AND COMMUTING: QUASI-NATURAL EXPERIMENTS’ EVIDENCE FROM FIRMS THAT RELOCATE

    DEFF Research Database (Denmark)

    Mulalic, Ismir; N. Van Ommeren, Jos; Pilegaard, Ninette

    2014-01-01

    We examine individual-level compensating differentials for commuting distance in a quasi-natural experiment setting by examining how wages respond to changes in commuting distance induced by firm relocations. This set-up enables us to test for the relevance of job search frictions within labour...

  14. Firm Productivity and Type of Innovation: Evidence from the Community Innovation Survey 6

    Directory of Open Access Journals (Sweden)

    Nebojša Stojčić

    2014-12-01

    Full Text Available Having recognized the impact of innovation for the improvement of productivity in firms and for the growth of national economies, researchers have been exploring the innovation process and its underlying factors for over a decade now. Much of the empirical findings in this area have been based on national firm-level studies while research that encompasses several countries, particularly in transition economies, is still rare. This paper attempts to fill this gap by investigating the impact of innovation on firms’ productivity across a number of East and West European countries, using a structural model based on Crepon, Duguet and Mairesse (1998 and a firm-level dataset from the 2006 round of the Community Innovation Survey (CIS6. In contrast to previous studies that focused only on product innovation as the measure of innovation output, we distinguish between firms engaged in only one type of innovation activities (product or process and those engaged in both types. The results of the investigation provide support for the relationship between different stages of the innovation process and confirm the impact of innovation output on productivity. In addition, we find differences in the productivity associated with the type of innovation activities undertaken.

  15. Relational Capital Quality and Client Loyalty: Firm-Level Evidence from Pharmaceuticals, Pakistan

    Science.gov (United States)

    Mubarik, Shujaat; Chandran, V. G. R.; Devadason, Evelyn S.

    2016-01-01

    Purpose: This study aims to examine the influence of relational capital quality on client loyalty, comprising both behavioral and attitudinal, in the pharmaceutical industry of Pakistan. Design/methodology/approach: The partial least squares technique is used to test the relationship using a sample of 111 pharmaceutical firms. We applied a…

  16. Skill-Biased Technological Change. Evidence from a Firm-Level Survey.

    Science.gov (United States)

    Siegel, Donald S.

    A study addressed the effects of technological change using a new, rich source of firm-level data on technology usage and labor force composition. The empirical investigation is based on a survey of Long Island manufacturers' usage of computer-integrated manufacturing systems (CIMS) or advanced manufacturing technologies (AMTs). The study also…

  17. The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

    NARCIS (Netherlands)

    Boermans, M.A.; Roelfsema, H.J.

    2012-01-01

    It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 tran

  18. Volatility of sales, expectation errors, and inventory investment : Firm level evidence

    NARCIS (Netherlands)

    Bo, H

    2001-01-01

    This paper tests whether demand uncertainty, which is measured by the volatility of sales, affects inventory investment based on the accelerator buffer stock inventory model. Using a panel of Dutch listed firms in the period 1984-1996, we find that the estimated coefficient of the speed parameter of

  19. The Dividend and Share Repurchase Policies of Canadian Firms : Empirical Evidence based on New Research Design

    NARCIS (Netherlands)

    de Jong, A.; van Dijk, R.; Veld, C.H.

    2000-01-01

    We empirically investigate dividend and share repurchase policies of Canadian firms. We use several logit regression analyses to test the structure and determinants of the dividend and share repurchase choice. We have sent a questionnaire to the 500 largest non-financial Canadian companies listed on

  20. Skill-Biased Technological Change. Evidence from a Firm-Level Survey.

    Science.gov (United States)

    Siegel, Donald S.

    A study addressed the effects of technological change using a new, rich source of firm-level data on technology usage and labor force composition. The empirical investigation is based on a survey of Long Island manufacturers' usage of computer-integrated manufacturing systems (CIMS) or advanced manufacturing technologies (AMTs). The study also…

  1. Women in Top Management and Bank Performance: Evidence from Indonesia

    Directory of Open Access Journals (Sweden)

    Hunik Sri Runing Sawitri

    2016-02-01

    Full Text Available We investigate the impact of the presence of women in top management on bank performance controlling for bank specific factors, ownership and governance. By making use of sample of 70 Indonesian banks in a cross section study, we find strong evidence that the presence of women in the executives is negatively associated with firm performance. Moreover, we examine the moderating effect of TMT organizational tenure and TMT age. However, only little evidence is found in the effect of our moderating variables.

  2. The impact of innovation strategy on organizational learning and innovation performance: do firm size and ownership type make a difference?

    Directory of Open Access Journals (Sweden)

    Beyene, K. T.

    2016-05-01

    Full Text Available Though innovation strategy and organizational learning have been credited to impact on product innovation performance, they have been rarely considered in a single model simultaneously. Thus, the main aim of the paper is to investigate the extent of impact of innovation strategy on organizational learning and product innovation performance. A structural equation modelling analysis was performed on the survey data collected from Ethiopian textile and leather product manufacturing firms. The result reveals that innovation strategy is positively related to product innovation performance. Further, firm size and ownership type moderate the effect of innovation strategy on product innovation performance.

  3. Impact of error management culture on knowledge performance in professional service firms

    Directory of Open Access Journals (Sweden)

    Tabea Scheel

    2014-01-01

    Full Text Available Knowledge is the most crucial resource of the 21st century. For professional service firms (PSFs, knowledge represents the input as well as the output, and thus the fundamental base for performance. As every organization, PSFs have to deal with errors – and how they do that indicates their error culture. Considering the positive potential of errors (e.g., innovation, error management culture is positively related to organizational performance. This longitudinal quantitative study investigates the impact of error management culture on knowledge performance in four waves. The study was conducted in 131 PSFs, i.e. tax accounting offices. As a standard quality management system (QMS was assumed to moderate the relationship between error management culture and knowledge performance, offices' ISO 9000 certification was assessed. Error management culture correlated positively with knowledge performance at a significant level and predicted knowledge performance one year later. While the ISO 9000 certification correlated positively with knowledge performance, its assumed moderation of the relationship between error management culture and knowledge performance was not consistent. The process-oriented QMS seems to function as facilitator for the more behavior-oriented error management culture. However, the benefit of ISO 9000 certification for tax accounting remains to be proven. Given the impact of error management culture on knowledge performance, PSFs should focus on actively promoting positive attitudes towards errors.

  4. The Impact of Start-up Grants on Firm Performance in Estonia

    Directory of Open Access Journals (Sweden)

    Siret Vildo

    2013-01-01

    Full Text Available As in economic theory start-up enterprises have been seen as important sources of growth, the government support measures to enterprises have been a common practice around the world for decades. As the governmental support to enterprises is often of a considerable amount of money there is a need to assess its efficiency. In the present article we study the impact of Estonian start-up grants distributed in 2002 and 2003 on various indicators of firm performance with econometric methods, namely propensity score matching. We use the data from the Estonian Business Register in order to study the impact of start-up grants on various economic indicators like the number of employees, turnover, equity, fixed assets and firm survival. The results showed that the start-up grants proved to affect positively the number of employed people and turnover, yet the impact on productivity was negative. One implication of the study is that it is difficult to achieve different goals to the same extent with a single governmental grant

  5. Firm Size and Capital Structure Decisions: Evidence from Hotel and Lodging SMEs in Eldoret Municipality, Kenya

    Directory of Open Access Journals (Sweden)

    Lewis Wakoli Wachilonga

    2013-08-01

    Full Text Available The purpose of this paper was to determine the relationship between firm size and capital structure decisions on the development of small and medium enterprises (SME’s in Kenya, with special reference to hotel and lodges in Eldoret municipality .a descriptive survey research was used to carry out the study .Seventy two (72 respondents were sampled the study was guided by the following research questions: what is the relative size of hotel and lodging SME’s in Eldoret municipality, what are the financial source preferences of hotel and lodging SME’s in Eldoret municipality for financing initial investments, financing ongoing operations and financing future investment, What is the relationship between financial source preference and size of hotel and lodging SME’s in Eldoret municipality. Based on the findings, the study established that relationship between firm size and capital structure choice among hotel and lodging SME’s in Eldoret municipality considering self financing as the most preferred source of financing during the initial stages of their operation. Bank credit was most preferred for ongoing operations followed by retained earnings and share capital respectively. Future financing of the firm in hotel and lodging sector favored use of internal sources followed by use of debt. The chi- square test showed that there was no statistical significance in linking firm size and financing initial investments by internal sources, debt and common stock. The researcher concluded that there was a relationship between firm size and capital structure preference. There was hierarchical preference for internal sources, debt and common stock issues. The firms in hotel and lodging sector preferred a mix in equal proportions of short term and long term debt to finance its operations. The researcher drew the following recommendations. First, hotel and lodging operators and entrepreneurs should consider internal financing during the initial and

  6. HOW CAFE INFLUENCES AUTO FIRMS AND CONSUMERS?  USING EVIDENCE FROM U.S. MARKET

    Directory of Open Access Journals (Sweden)

    Ran Wang

    2016-07-01

    Full Text Available This paper examines how the CAFE regulation influences the auto firms’ behavior and the consumers’ behavior. To be specific, I examine the influence of CAFE on three groups of auto firms’ pricing and production decision as well as the influence on consumers’ consumption decision on model choice and the vehicle miles to travel. Through estimating the simultaneous production and pricing equation system for firm, the paper indicates that previous literature that estimates the supply equation separately for each firm is misleading and CAFE regulation has different effects on unconstrained group, constrained group and fine-paying group through different channels. Also the CAFE regulation affects the consumer behavior since CAFE has unbalanced effects on prices of different auto models.

  7. Investment cash flow sensitivity under managerial optimism: new evidence from NYSE panel data firms

    Directory of Open Access Journals (Sweden)

    Ezzeddine Ben Mohamed

    2014-06-01

    Full Text Available Investment cash flow sensitivity constitutes one important block of the corporate financial literature. While it is well documented in standard corporate finance, it is still young under behavioral corporate finance. In this paper, we test the investment cash flow sensitivity among panel data of American industrial firms during 1999-2010. Using Q-model of investment (Tobin, 1969, we construct and introduce a proxy of managerial optimism following Malmendier and Tate (2005a to show the impact of CEOs’ optimism in the relationship between investment and internal cash flow. Our results report a positive and significant coefficient of investment to cash flow for the full sample. While, on estimations of our model using sub-sample of more and less constrained firms, we find that the sensitivity exists stronger only for totally constrained group. We find also that board characteristics can reduce investment policy’s distortions.

  8. Does media governance restrict corporate overinvestment behavior? Evidence from Chinese listed firms

    Institute of Scientific and Technical Information of China (English)

    Huili; Zhang; Zengrui; Su

    2015-01-01

    Using China’s A-share listed firms from 2007 to 2011, this paper empirically tests how media governance affects firms’ levels of overinvestment and whether external supervision and informal institutional mechanisms reduce these levels.We find that media governance and overinvestment are significantly negatively related. When firms are located in a district with a stronger media governance environment their levels of overinvestment are lower, indicating that media governance significantly restricts overinvestment behavior. When internal corporate governance efficiency is low, the negative relationship between the media environment and overinvestment behavior is significantly enhanced,indicating that when internal governance or formal systems have reduced efficacy, an important complementary role is played by external supervision and the informal institutional environment. After considering endogeneity and different measures of overinvestment and other related variables, the conclusions remain unchanged.

  9. Are firm- and country-specific governance substitutes? Evidence from financial contracts in emerging markets

    OpenAIRE

    Francis, Bill; Hasan, Iftekhar; Song, Liang

    2012-01-01

    We investigate how borrowers’ corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with respect to loan amount, maturity, collateral requirements, and spread. Firm-level and country-level corporate governance are substitutes in writing and enforcing financial contracts. We also find that t...

  10. Disclosure and the Cost of Capital: Evidence from Firms' Responses to the Enron Shock

    OpenAIRE

    Christian Leuz; Catherine Schrand

    2009-01-01

    This paper examines the link between disclosure and the cost of capital. We exploit an exogenous cost of capital shock created by the Enron scandal in Fall 2001 and analyze firms' disclosure responses to this shock. These tests are opposite to the typical research design that analyzes cost of capital responses to disclosure changes. In reversing the tests and using an exogenous shock, we mitigate concerns about omitted variables in traditional cross-sectional disclosure studies. We estimate s...

  11. The Characteristics and Determinants of Capital Structure in Shariah-compliant Firms: Empirical Evidence from Malaysia

    OpenAIRE

    Law, Poh Kim

    2011-01-01

    This study aims to find out whether the prevailing capital structure theories (trade-off, pecking order and agency theory) are applicable on Malaysian Shariah-compliant firms. The impact of Malaysia Shariah Advisory Council (SAC)’s Shariah screening guideline and dual banking system in Malaysia on capital structure will also be examined. The empirical results show that profitability is the most dominant determinant of debt policy with significant negative relationships found with all measures...

  12. Oil Risks and Firm Attributes in Oil Share Prices: Empirical Evidence from Bursa Malaysia

    OpenAIRE

    Safian, Dayana

    2010-01-01

    This research aims to analyze the oil risks and firm attributes that could affect the share prices of oil and gas companies in Malaysia. Most of the studies conducted in regards to the oil and gas sector takes into account the contributing factors such as the condition of oil futures in NYMEX and focuses on prominent oil exporting and importing countries. In contrast, this paper empirically assesses the dynamics of global, national and company level factors that could influence the share p...

  13. The effect of subsidising firms on voting behaviour: Evidence from Flemish elections

    Directory of Open Access Journals (Sweden)

    Caroline Buts

    2012-06-01

    Full Text Available Despite an international consensus on the importance to limit State aid spending, large amounts of resources are still devoted to a wide variety of subsidies to firms. A sizable literature studies the relationship between general government spending and the proximity of elections, mostly documenting a positive link. In addition, other studies verify whether this strategy of increasing government expenditure pays off in terms of number of votes. We focus on one type of government spending that can be quite vulnerable to becoming ‘targeted spending’, i.e. subsidies to firms. We empirically test the relationship between the amount of subsidies granted to firms at the local level and local support for incumbent parties in the regional government. To that end, we make use of subsidy data derived from financial statements on 2008 and Flemish election results of 2004 and 2009. We find that the total amount of subsidies as well as subsidies per capita granted in 2008 positively correlate to support for incumbent parties 2009, meaning that voters appear to reward subsidy granting politicians.

  14. Corruption and System Change in the Czech Republic: Firm-Level Evidence

    Directory of Open Access Journals (Sweden)

    Koudelková Petra

    2015-03-01

    Full Text Available Corruption is a widespread phenomenon in all countries undergoing market transition. However, the Czech Republic stands apart, with its incredible entanglement of corruption, politics and business. Although corruption on the firm level in the Czech Republic is heavily criticized, the results of our in-depth interviews conducted with Czech SMEs showed that almost every firm has encountered some form of corruption and even used corruption to either increase sales, help negotiations, or increase production. Most of our respondents admitted that corruption was useful for day-to-day business. This article aims to obtain information about the state of corruption in enterprises in the Czech Republic and map the behaviour of entrepreneurs in companies. Our results offer ways to fight corruption: apart from highlighting the negative traits of corruption, emphasis should be made on determining to what extent corruption would be acceptable for firms and their clients. This could be useful for designing various state policies that might influence system change and market development in CEECs and both directly and indirectly influence the volume of corruption.

  15. Profiting from external knowledge : how firms use different knowledge acquisition strategies to improve their innovation performance

    OpenAIRE

    Batterink, M.H.

    2009-01-01

    In recent years, innovation has become essential for the competitive advantage of firms in a growing number of industries. Due to the fast development of technologies, changing customer demands, shortening of product life cycles, increased global competition and changing regulations, modern firms constantly have to look for new ways to prosper in this very dynamic business environment. To survive in this dynamic environment, firms increasingly look for ways to profit from knowledge in other o...

  16. Profiting from external knowledge : how firms use different knowledge acquisition strategies to improve their innovation performance

    OpenAIRE

    Batterink, M.H.

    2009-01-01

    In recent years, innovation has become essential for the competitive advantage of firms in a growing number of industries. Due to the fast development of technologies, changing customer demands, shortening of product life cycles, increased global competition and changing regulations, modern firms constantly have to look for new ways to prosper in this very dynamic business environment. To survive in this dynamic environment, firms increasingly look for ways to profit from knowledge in other o...

  17. A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

    Directory of Open Access Journals (Sweden)

    Progress Choongo

    2017-07-01

    Full Text Available The aim of this study is to investigate the impact of corporate social responsibility on firm performance using a longitudinal design in small and medium-sized enterprises (SMEs. The reported study was conducted in a Sub-Saharan African developing country, Zambia. Data were collected from 153 entrepreneurs in two surveys and changes in CSR and firm performance measures were analysed over a 12-month period using SmartPLS structural equation modelling. The findings show that the relationship between CSR and financial performance is significant. Further, the association between CSR and the two measures of firm performance (corporate reputation and employee commitment was only partially significant over time. We discuss the relevance of these results for entrepreneurs, researchers and policy makers in understanding the outcomes of sustainability practices in SMEs in developing countries, especially in Sub-Saharan Africa.

  18. The Impacts of Different Expansion Modes on Performance of Small Solar Energy Firms: Perspectives of Absorptive Capacity

    Directory of Open Access Journals (Sweden)

    Hsing Hung Chen

    2013-01-01

    Full Text Available The characteristics of firm’s expansion by differentiated products and diversified products are quite different. However, the study employing absorptive capacity to examine the impacts of different modes of expansion on performance of small solar energy firms has never been discussed before. Then, a conceptual model to analyze the tension between strategies and corporate performance is proposed to filling the vacancy. After practical investigation, the results show that stronger organizational institutions help small solar energy firms expanded by differentiated products increase consistency between strategies and corporate performance; oppositely, stronger working attitudes with weak management controls help small solar energy firms expanded by diversified products reduce variance between strategies and corporate performance.

  19. Does human capital matter? A meta-analysis of the relationship between human capital and firm performance.

    Science.gov (United States)

    Crook, T Russell; Todd, Samuel Y; Combs, James G; Woehr, David J; Ketchen, David J

    2011-05-01

    Theory at both the micro and macro level predicts that investments in superior human capital generate better firm-level performance. However, human capital takes time and money to develop or acquire, which potentially offsets its positive benefits. Indeed, extant tests appear equivocal regarding its impact. To clarify what is known, we meta-analyzed effects drawn from 66 studies of the human capital-firm performance relationship and investigated 3 moderators suggested by resource-based theory. We found that human capital relates strongly to performance, especially when the human capital in question is not readily tradable in labor markets and when researchers use operational performance measures that are not subject to profit appropriation. Our results suggest that managers should invest in programs that increase and retain firm-specific human capital.

  20. P2P网贷企业绩效的影响因素--来自482家企业的经验数据%Determinants of P2P Lending Company’s Performance:Evidence from 482 Firms

    Institute of Scientific and Technical Information of China (English)

    谢广营; 徐二明

    2016-01-01

    P2P lending companies are born in the backgrounds of institutional entrepreneurship and faced with large pressure of existence and development,where improving performance during uncertainty is of great significance. Based on the empirical data of 482 P2P lending companies,some discussion about the determinants of P2P lending company’s performance is made. Registered capital,life of loan and returned loans in following 60 days are found to have positive effects on turnover,while capital leverage is with the negative effect and firm age with no effect. It is also found that firm age,life of loan and returned loans in following 60 days have positive effects on the quantity of investors. By contrast,registered capital and capital leverage have no significant effect on the quantity of investors.%P2P网贷企业经由制度创业环境产生,在制度不完善背景下其生存和发展面临较大的不确定性。对482家P2P网贷企业的实证研究发现,注册资本、借款期限、未来60日应还借款对企业交易额有显著正向影响,资金杠杆对交易额具有显著负向影响,运营时间对交易额的影响不显著;运营时间、借款期限、未来60日应还借款对投资人数具有显著正向影响,而注册资本、资金杠杆对投资人数的影响则不显著。