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....

Ultimate Owner and Firm Performance - Evidence from Romanian Mining and Quarrying Listed Firms

Directory of Open Access Journals (Sweden)

Cosmin MIHAI

2012-08-01

Full Text Available The main objectives of this paper are to describe the necessary steps to identify the ultimate owner and to investigate the relation between the ultimate ownership and the financial performance of Romanian mining and quarrying listed firms. The study was conducted for the companies listed on Bucharest Stock Exchange, in both regulated and non-regulated segments. The final sample included 17 companies of mining and quarrying. Return on Equity was used for measuring the financial performance of the firms. The ultimate ownership was measured by the percentage of voting rights held by a shareholder. Econometric tools like multiple linear regression analysis were used for analysis. The results of the study suggest that there is a significant negative link between financial performance and divergence between voting rights and cash-flow rights.

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....... 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...... for relationship management) has a positive correlation with firm performance, the impact is fully mediated by the firms’ relationship management capability. The paper also identifies internal and external drivers of customer relationship management innovation. Not surprisingly customer and competitor dynamics...

How is goodwill impairment driven by relative firm performance? : evidence from Germany

OpenAIRE

Brandão, Sara Fontes Coutinho Mesquita

2014-01-01

Goodwill treatment has been facing considerable changes in terms of regulation. More recently, IAS 36 (2004) develops the subject of impairment of assets, stating that goodwill should be subject to impairment tests on an annual basis. In the IFRS context, the present research study aims at investigating how goodwill impairment is driven by relative firm performance in Europe, using Germany evidence. More precisely, the paper focuses on two distinct analyses: comparing differenc...

THE IMPACT OF FEMALE DIRECTORS ON FIRM PERFORMANCE: EVIDENCE FROM INDONESIA

Directory of Open Access Journals (Sweden)

Triana

2017-01-01

Full Text Available This research shows the impact of female directors on firm performance in Indonesia by using as its sample the public companies listed on the Indonesian Stock Exchange (IDX from 2011 until 2015. There were 347 companies, with 1,735 samples observed. This research uses the multiple regression method. The model is a modified model from 9 recent articles published between 2012 and 2015. The empirical result shows that a female director has a positive significant effect on firm performance. The control variables, consisting of leverage, firm size and firm age have negative significance for firm performance. This research is conducted across 9 sectors of industrial classification, which support the International Finance Corporation (IFC in increasing the number of female directors in Indonesia. For managers, this research will promote gender development in the boardroom, female executive training programmes as well as female representation on boards of directors. For regulators, this research may provide a contribution to gender representation in board’s policies, rules and regulations. This research can build awareness of women’s contributions to firms and encourage a greater female presence in the boardroom.

Gender diversity and firm performance : evidence from Norway 2010-2014

OpenAIRE

Muscher, Natalia

2017-01-01

The aim of this master’s thesis is to investigate the impact of gender diversity in firms on firm performance using data from Norwegian firms and municipalities. Gender diversity is measured using three regional gender equality indicators measuring the ratio between men and women’s share in the labour force, the level of gender balanced business structures and the gender distribution among leaders. The first two indicators are used as proxies for gender diversity at the employe...

BUDGETING, BUDGETARY CONTROL AND PERFORMANCE EVALUATION: Evidence from Hospitality Firms in Nigeria

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Patrick Egbunike

2017-12-01

Full Text Available This study was carried out with the view to address two fundamental issues: first, to determine if there is any association between budget, budgetary control and performance evaluation; second, to ascertain if there is any significant variation in the budget, budgetary control and performance evaluation measures of hospitality firms in Nigeria. The study employed descriptive design and primary data (questionnaire was the major source of data collection. Questionnaire was administered to a total of six hundred (600 employees of ten (10 selected hospitality firms in Nigeria. The data obtained were analyzed using both descriptive and inferential statistics. Findings indicated that budget and budgetary control could serve as an avenue through which hospitality firms in Nigeria can be evaluated. In addition, it was revealed that there is a significant variation in the budget, budgetary control and performance evaluation of hospitality firms in Nigeria. On the basis of the findings, it was recommended that hospitality firms in Nigeria should carry out performance evaluation on every aspect of their budget and budgetary activities as a way of ensuring that budgeted outcomes are met. Also, budgetary costs should be a basis of choosing the most-fit performance evaluation technique for hospitality firms since such

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

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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.

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

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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.

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.

Performance of Patenting Firms

DEFF Research Database (Denmark)

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

2000-01-01

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-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...

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

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.

Internationalization and Firm Performance in Agribusiness: Empirical Evidence from European Cooperatives

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Matthias Heyder

2011-10-01

Full Text Available  The ongoing internationalization of markets has become a major issue also for companies of the agribusiness. Nevertheless, neither the degree of internationalization of agribusiness firms nor the internationalization-performance relationship in the agribusiness sector have been analyzed thoroughly so far. To help fill this void, we use panel data compiled from annual reports and balance sheets to investigate the internationalization as well as the internationalization-performance relationship of 21 leading European cooperatives in the dairy and meat sectors. Our results indicate that internationalization has a significant positive impact on firm performance.

THE IMPACT OF FEMALE DIRECTORS ON FIRM PERFORMANCE: EVIDENCE FROM INDONESIA

OpenAIRE

Triana; Marwan Asri

2017-01-01

This research shows the impact of female directors on firm performance in Indonesia by using as its sample the public companies listed on the Indonesian Stock Exchange (IDX) from 2011 until 2015. There were 347 companies, with 1,735 samples observed. This research uses the multiple regression method. The model is a modified model from 9 recent articles published between 2012 and 2015. The empirical result shows that a female director has a positive significant effect on firm performance. The ...

Bribery environments and firm performance: evidence from CEE countries

Czech Academy of Sciences Publication Activity Database

Hanousek, Jan; Kochanova, A.

2016-01-01

Roč. 43, June (2016), s. 14-28 ISSN 0176-2680 R&D Projects: GA ČR(CZ) GA14-31783S Institutional support: RVO:67985998 Keywords : bureaucratic corruption * firm performance * CEE countries Subject RIV: AH - Economics Impact factor: 1.098, year: 2016

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.......In this contribution, we examine the interrelation between intra-firm wage increases and firm performance. Previous studies have focused on the dispersion of wages in order to examine for the empirical dominance of positive monetary incentives effects compared to adverse effects due to fairness...... 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...

Bribery environments and firm performance: evidence from CEE countries

Czech Academy of Sciences Publication Activity Database

Hanousek, Jan; Kochanova, A.

2016-01-01

Roč. 43, June (2016), s. 14-28 ISSN 0176-2680 R&D Projects: GA ČR(CZ) GBP402/12/G097 Institutional support: PRVOUK-P23 Keywords : bureaucratic corruption * firm performance * CEE countries Subject RIV: AH - Economics Impact factor: 1.098, year: 2016

Reply to “Response: Board Composition and Firm Performance: Evidence from Bangladesh - A Sceptical View”

Directory of Open Access Journals (Sweden)

Afzalur Rashid

2012-09-01

Full Text Available This paper replies to Chowdhury’s (2010 response to the paper "Board Composition and Firm Performance: Evidence from Bangladesh" (2010. It challenges the strength of the criticisms, arguing that the factors discussed in Chowdhury (2010 do not necessarily impair the outcome of the research. The authors elucidate issues raised, and in so doing, reproduce the results incorporating the commentator’s suggestions.

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.

The Impact of Bribery on Firm Performance: Evidence from Central and Eastern European Countries

OpenAIRE

Anna Kochanova

2012-01-01

I examine the relation between bureaucratic corruption ('to get things done') and firm performance in Central and Eastern European countries. While previous re- search relies on data from the BEEPS survey, which suffers from excessive non- reporting of corporate performance, I combine the information on bribery practices from the BEEPS with reliable firm performance data from the Amadeus database. The estimates, identified from within-firm variation, suggest that bureaucratic cor- ruption neg...

Gender diversity of boardrooms and firm financial performance

Directory of Open Access Journals (Sweden)

Perihan Iren

2016-08-01

Full Text Available The impact of boardroom diversity on firm financial performance has attracted growing research interest in recent years. However, due to the lack of readily available datasets for other parts of the world, most of the evidence is based on the US data. The purpose of this study is to examine the relationship between gender diversity in the boardrooms and firm financial performance in a region, where it has never been studied before. Using a sample of 60 firms listed in Abu Dhabi and Dubai Stock Exchanges, first the impact of gender diverse boards on the accounting value of the firms is analyzed. Afterwards, stock price reactions to the announcement of the gender quotas on corporate boards in the UAE are examined. The results do not show a significant impact of female directors on the firm’s both accounting and market value. However, these results should be interpreted carefully since the presence of women in leading positions might affect different aspects of the firm practices

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

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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.

CEOs´ monetary incentives and performance of Mexican firms

Directory of Open Access Journals (Sweden)

Karen Watkins-Fassler

2017-02-01

Full Text Available This paper analyzes if changes in CEO remuneration and the execution of CEO stock options impact firm performance, under an emerging market context. Data is obtained from 88 non-financial companies listed in the Mexican Stock Exchange (2001-2012. A dynamic panel specification is employed, and regressions are run through the Generalized Method of Moments. Some evidence is found on the negative relationship between flat monetary incentives and Mexican firm performance, specifically for normal times. In addition, financial incentives based on results (particularly CEO stock options do not imply higher firm performance. Results suggest that companies in particular contexts should move towards the development of CEOs, more than promoting mostly monetary incentives for boosting firm performance. Companies operating in Mexico will gain from hiring intrinsically motivated CEOs, together with testing different extrinsic rewards (neither flat nor stock options in order to attain additive effects on intrinsic motivation.

Growth of New Firms: Which Factors Influence Post-Entry Performance? An Empirical Analysis Based on Swiss Firm Data

OpenAIRE

David Marmet

2004-01-01

The aim of this study is to shed light on the factors which determine the post-entry performance of new firms. It is often argued that new firms are the driving force of structural changes and sometimes they are even characterized as an “engine” of economic growth. Nevertheless, the empirical evidence is mixed. Taking into account the high exit rate of new firms, a specific founding cohort does not contribute substantially to new jobs. In this paper, we analyse the contribution of new firms c...

Entry Mode and Performance of Nordic Firms

DEFF Research Database (Denmark)

Wulff, Jesper

2015-01-01

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.......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...

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

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

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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.

Managerial share ownership, firm performance and dividends : Australian evidence

OpenAIRE

Khan, Arifur Rahman

2017-01-01

This thesis examines the relationship between managerial share ownership and firm performance as well as the relationship between managerial share ownership and dividends in Australia. Agency theory, more specifically two alternative theories – incentive alignment and managerial entrenchment theory – provides the theoretical framework that underpins this thesis. The three empirical studies in this thesis examine the top 300 Australian listed companies for the period 2000 to 2006 and the metho...

Corporate Governance, Cash Holdings, and Firm Value: Evidence from Japan

OpenAIRE

Qi Luo; Toyohiko Hachiya

2005-01-01

This paper presents evidence on cash holdings for Japanese firms listed on the Tokyo Stock Exchange, focusing on the impact of corporate governance factors in cash holdings and the implication of cash holdings to firm value. We find that insider ownership and bank relations of firms play a significant role in determining cash holdings. Our results indicate that foreign stockholders select profitable firms to invest, and these firms have higher levels of cash. We document evidence that cash ho...

Social security and firm performance

DEFF Research Database (Denmark)

Lee, Sangheon; Torm, Nina

2017-01-01

This article investigates how social security provision - a key determinant of formality - impacts on small and medium-sized firm performance in Viet Nam. Based on enterprise census data covering all registered firms from 2006 to 2011, the authors find that firms which increase their social...... security coverage by 10 per cent experience a revenue gain of 1.4-2.0 per cent per worker and a profit gain of up to 1.8 per cent, depending on the survival time of the firm. However, given the time lag between 'investment' (in social security contributions) and returns (enhanced firm performance...

Importance of Logistics Processes for Customer Service and Firm Performance: Evidence from Furniture Industry of Pakistan

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Imran Qadir

2017-11-01

Full Text Available Research Question: This study examines the relationship between logistics processes, customer service and firm performance in the furniture industry of Pakistan. Motivation: Furniture industry in Pakistan comprises small and medium enterprises wherein production is mainly labor intensive. Therefore, the current study also investigates the mediating role of manufacturing flexibility for the relationship of logistics processes and customer service. The paper applies the logistics models developed by Bowesox (1974, Green et al.(2008, and Tracey (1998 to furniture industry. Idea: The core idea of the paper is to measure the effects of logistics process on customer service and the performance of furniture manufacturing firms. The study takes the logistics process as an independent variable, the customer service as the first dependent variable and manufacturing performance as a moderating variable. Data: Primary data on logistics, customer service, manufacturing flexibility and firm performance were conveniently collected through a questionnaire from owners/managers of 61 furniture manufacturing firms. Tool: Descriptive statistics, correlation and regression analyses were run to draw the results. Findings: Logistics processes positively affect customer service and firm performance. Customer service also exerts a positive effect on firm performance while the moderating role of manufacturing flexibility was not supported for the relationship of logistics processes and customer service. Contribution: Through efficiency in logistics processes, furniture manufacturing firms can serve customers in a superior way to ultimately achieve improved firm performance. The framework being restricted to efficiency of logistics processes only constitutes an important limitation of the study.

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.

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.

Environmental investment and firm performance: A network approach

International Nuclear Information System (INIS)

Bostian, Moriah; Färe, Rolf; Grosskopf, Shawna; Lundgren, Tommy

2016-01-01

This study examines the role of investment in environmental production practices for both environmental performance and energy efficiency over time. We employ a network DEA approach that links successive production technologies through intertemporal investment decisions with a period by period estimation. This allows us to estimate energy efficiency and environmental performance separately, as well as productivity change and its associated decompositions into efficiency change and technology change. Incorporating a network model also allows us to account for both short-term environmental management practices and long-term environmental investments in each of our productivity measures. We apply this framework to a panel of detailed plant-level production data for Swedish manufacturing firms covering the years 2002–2008. - Highlights: • We use a network DEA model to account for intertemporal environmental investment decisionsin measures of firm productivity. • We apply our network technology model to a panel of firms in Sweden's pulp and paperindustry for the years 2002 - 2008. • We model environmental investments and expenditures separately from other productionoriented inputs. • We find evidence of positive relationships between energy efficiency, environmental performance, and firm productivity.

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.

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

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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

Technological Capability and Firm Performance

Directory of Open Access Journals (Sweden)

Fernanda Maciel Reichert

2014-08-01

Full Text Available This research aims to investigate the relationship between investments in technological capability and economic performance in Brazilian firms. Based on economic development theory and on developed countries history, it is assumed that this relationship is positive. Through key indicators, 133 Brazilian firms have been analyzed. Given the economic circumstances of an emerging economy, which the majority of businesses are primarily based on low and medium-low-technology industries, it is not possible to affirm the existence of a positive relation between technological capability and firm performance. There are other elements that allow firms to achieve such results. Firms of lower technological intensity industries performed above average in the economic performance indicators, adversely, they invested below average in technological capability. These findings do not diminish the merit of firms’ and country’s success. They in fact confirm a historical tradition of a country that concentrates its efforts on basic industries.

The Impact of Ownership Structure on Firm Performance : Evidence From a Large Emerging Market

NARCIS (Netherlands)

Douma, S.W.; George, R.; Kabir, M.R.

2002-01-01

We examine how ownership structure affects the performance of firms using firm level data from a large emerging market, India.We specifically focus on a previously unexplored phenomenon, namely the differential role played by foreign institutional and foreign corporate shareholders.An examination of

Heterogeneity in Firm Performance During Economic Crisis

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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.

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.

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

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...

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

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

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...

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...

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...

Internationalization and Firm Performance in Agribusiness: Empirical Evidence from European Cooperatives

OpenAIRE

Heyder, Matthias; Makus, Christian; Theuvsen, Ludwig

2011-01-01

 The ongoing internationalization of markets has become a major issue also for companies of the agribusiness. Nevertheless, neither the degree of internationalization of agribusiness firms nor the internationalization-performance relationship in the agribusiness sector have been analyzed thoroughly so far. To help fill this void, we use panel data compiled from annual reports and balance sheets to investigate the internationalization as well as the internationalization-performance relati...

Performance of Patenting Firms in Danish Manufacturing

DEFF Research Database (Denmark)

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

2000-01-01

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-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...

Choice of ownership structure and firm performance: Evidence from Estonia

OpenAIRE

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 analyse diverse issues related to the determinants of ownership structures and ownership changes after privatisation. A key focus is to determine whether ownership changes are related to economic efficiency. While employee owned firms are found to be much more prone than other firms to switch ownership categories, often “employee owned” firms remain “insider-owned” as ownership passes from current empl...

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.

Board of directors’ composition and performance in French CAC 40 listed firms

Directory of Open Access Journals (Sweden)

Ali Ahmadi

2017-11-01

Full Text Available Reflecting investor expectations, most prior corporate governance research attempt to find a relationship between boards of directors’ composition and firm financial performance. Specifically, we try to examine the relationship between the boards’ size, board independence, CEO duality and gender diversity and two measurements of performance in listed companies in CAC 40, namely return on assets (ROA and return of equities (ROE. We found evidence provide that board characteristics were positively correlated to the firm’ performance. However, our results show a significant association between ROE, ROA and the board of directors’ composition. We find significant negative association between financial information and equity-based management compensation. On the other hand, the presence of independent directors on the board seems to affect, positively, the level of financial performance of CAC 40 firms. Likewise, the stewardship theory assumption, the CEO duality is very high and is significantly associated with a higher level of firm performance. The results show that there was a significant relationship between board gender diversity and firm performance from our samples CAC 40 companies. In addition, we find significant negative impact of leverage on the financial performance for CAC 40 firms.

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

OpenAIRE

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

2017-01-01

We provide novel evidence on the micro-structure of international trade during the 2008 financial crisis and subsequent global recession by exploring a rich firm-level data set from Spain. The focus of our analysis is on changes at the extensive and intensive firm-level margins of trade, as well as on performance differences (jobs, productivity, and firm survival) across firms that differ in their export status. We find no adverse effects of the financial crisis on foreign market entry or exi...

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...

What results when firms implement practices: the differential relationship between specific practices, firm financial performance, customer service, and quality.

Science.gov (United States)

Gibson, Cristina B; Porath, Christine L; Benson, George S; Lawler, Edward E

2007-11-01

Previous research on organizational practices is replete with contradictory evidence regarding their effects. Here, the authors argue that these contradictory findings may have occurred because researchers have often examined complex practice combinations and have failed to investigate a broad variety of firm-level outcomes. Thus, past research may obscure important differential effects of specific practices on specific firm-level outcomes. Extending this research, the authors develop hypotheses about the effects of practices that (a) enable information sharing, (b) set boundaries, and (c) enable teams on 3 different firm-level outcomes: financial performance, customer service, and quality. Relationships are tested in a sample of observations from over 200 Fortune 1000 firms. Results indicate that information-sharing practices were positively related to financial performance 1 year following implementation of the practices, boundary-setting practices were positively related to firm-level customer service, and team-enabling practices were related to firm-level quality. No single set of practices predicted all 3 firm-level outcomes, indicating practice-specific effects. These findings help resolve the theoretical tension in the literature regarding the effects of organizational practices and offer guidance as to how to best target practices to increase specific work-related outcomes. Implications for theory, research, and practice are discussed. (c) 2007 APA

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.

Does Tax Haven FDI Influence Firm Performance?

OpenAIRE

Dewit, Gerda; Jones, Chris; Leahy, Dermot

2017-01-01

This paper provides theoretical and empirical evidence of the link between the use of tax haven subsidiaries by multinational enterprises (MNEs) and firm performance, as measured by total factor productivity. We find that the use of tax havens has no impact on economic dynamism for a sample of MNEs from across the OECD. Our results have significant policy implications in terms of the role of tax havens in the world economy.

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)

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.

Internationalization and Performance of Retail Firms

DEFF Research Database (Denmark)

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

2012-01-01

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......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...... 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...

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

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...

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

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.

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.

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.

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

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......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...... trade collapse (dubbed by some as the “Spanish export miracle”). The focus of our analysis is on changes at the extensive and intensive firm-level margins of trade, as well as on performance differences (jobs, productivity, and firm survival) across firms that differ in their export status. We find...

Motives and chances of firm diversification: theory and empirical evidence

International Nuclear Information System (INIS)

Briglauer, W.

2001-11-01

It is beyond controversy that the majority of the largest companies in the industrialized countries perform to a certain extent product diversification strategies. Tying up to this finding the underlying work firstly deals with alternative theoretical and empirical definitions of corporate diversification. Subsequently the theoretical part mainly elaborates an industrial economic framework for categorizing motives of firm diversification. Despite of some inevitable degree of arbitrariness, a relatively widespread and sufficient categorization can be presented. With regards to the relevant economic literature most explanations of product diversification can be classified appropriately. Observing diversification activities one would prima facie infer a positive relationship between product diversification and firm performance, but both, theory and empirical evidence, yield ambiguous results. The empirical part provides a list of existing studies, classified according to the theoretical categorization. In an overview some stylised facts are filtered and discussed consecutively. Most notably, it was found that related diversification strategies significantly outperform strategies of unrelated diversification. At the end of the empirical section econometric methods are applied to agricultural and industrial economic (relating to telecommunication markets) data sets. For the agricultural studies a significantly positive relationship between product diversification and firm performance was found. In contrast no significant results were obtained for the telecommunication markets. (author)

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...

Firm productivity, pollution, and output: theory and empirical evidence from China.

Science.gov (United States)

Tang, Erzi; Zhang, Jingjing; Haider, Zulfiqar

2015-11-01

Using a theoretical model, this paper argues that as firm productivity increases, there is a decrease in firm-level pollution intensity. However, as productivity increases, firms tend to increase their aggregate output, which requires the use of additional resources that increase pollution. Hence, an increase in productivity results in two opposing effects where increased productivity may in fact increase pollution created by a firm. We describe the joint effect of these two mechanisms on pollution emissions as the "productivity dilemma" of pollution emission. Based on firm-level data from China, we also empirically test this productivity dilemma hypothesis. Our empirical results suggest that, in general, firm productivity has a positive and statistically significant impact on pollution emission in China. However, the impact of productivity on pollution becomes negative when we control for increases in firm output. The empirical evidence also confirms the positive influence of productivity on output, which suggests that the main determinant of pollution is the firm's output. The empirical results provide evidence of the existence of, what we describe as, the productivity dilemma of pollution emission.

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

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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.

Diversification patterns in the growth of firms : evidence from Italian manufacturing

NARCIS (Netherlands)

Castaldi, C.; Milakovic, M.; Secchi, A.

2003-01-01

We present empirical evidence on diversification patterns in Italian manufacturing firms and detect a robust relationship between firm size and diversification levels, with an elasticity of diversification that does not depend on firm size and is well below unity. Diversification does not lead to

Firm Size, a Self-Organized Critical Phenomenon: Evidence from the Dynamical Systems Theory

Science.gov (United States)

Chandra, Akhilesh

performance variables during the sub-critical (below the critical size) and the supra-critical (above the critical size) states. Since the dynamics of any two firms is likely to be different, the analysis is performed individually for each company within the Pharmaceuticals and the Perfume industries. The statistical results of this study provide evidence in support of the hypotheses. The size of a firm is found to be a self-organized critical phenomenon. The presence of 1/f noise and the spatial power-law behavior is taken as an evidence of the firm's size as a self-organized critical phenomenon. (Abstract shortened by UMI.).

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....

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

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...... 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...

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.

Multiple Blockholder Structures and Family Firm Performance

DEFF Research Database (Denmark)

Fattoum-Guedri, Asma; Guedri, Zied; Delmar, Frédéric

2018-01-01

This study examines how multiple blockholder structures affect family firm performance. Building on arguments from both principal–principal agency and familiness perspectives, we suggest that asymmetrical distribution of voting power among family and nonfamily blockholders hurts firm performance....

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...

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...

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 how...... 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....

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

OpenAIRE

Mohammed Kabir; Ibrahim Hazril Izwar; Mohammad Shah Khairul Anuar

2017-01-01

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 perf...

Does Family Control Affect Trade Performance? Evidence for Italian Firms

OpenAIRE

Giorgio Barba Navaretti; Riccardo Faini; Alessandra Tucci

2008-01-01

This paper examines whether the export decision of firms is affected by their ownership structure, specifically it looks at whether family control is an obstacle to entering foreign markets. The underlying assumption is that family firms are risk averse. Risk aversion may be an obstacle to entering foreign markets, as far as these are perceived as more volatile and risky than the domestic one, particularly when such choice entices bearing relatively high sunk costs. We develop an illustrative...

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.

THE RELATIONSHIP BETWEEN DIVERSIFICATION STRATEGY AND FIRM PERFORMANCE IN DEVELOPED AND EMERGING ECONOMY CONTEXTS: EVIDENCE FROM TURKEY, ITALY AND NETHERLANDS

Directory of Open Access Journals (Sweden)

Onur Akpinar

2016-09-01

Full Text Available The aim of this study is to determine whether there is a difference between types of diversification and performance comparing Turkey, Italy and Netherlands. There are studies with the conclusion that the indicators of the relationship between diversification strategies and firm performance of developed countries differ from the indicators of developing countries. The data of 166 firms in Netherlands, 265 firms in Italy and 128 firms in Turkey were analyzed. The data of 2007-2011 was used in the research. Return on Assets (ROA and Return on Sales (ROS for financial performance and Entropy Index for diversification were used. According to the results, there is no correlation between total entropy and a performance criterion ROA and ROS in Italy and Netherlands. On the other hand, in Turkey, it is understood that there is a low-level positive correlation between total entropy and firm performance.

The Effect of Financial Leverage, Employee Stock Ownership Program and Firm Size on Firm Performance of Companies Listed in Indonesia Stock Exchange

Directory of Open Access Journals (Sweden)

Nurainun Bangun

2017-07-01

Full Text Available The purpose of this research is to examine and to obtain affected empirical evidence of financial leverage, firm size and employee stock ownership program (ESOP to firm performance in manufacturing company in Indonesian Stock Exchange on 2013-2015. Independent variables in this research are Financial Leverage (DER, Firm Size and Employee Stock Ownership Program (ESOP. Dependent variables in this research are Return on Assets (ROA and Return On Equity (ROE. The results Showed that the simultaneous test of three independent variables Significantly afftected to the ROA and ROE. The partial tests of Financial Leverage (proxy DER and Firm Size Significantly affected to ROA and ROE. But, the results Showed that the Employee Stock Ownership Program (ESOP did not Affect to ROA and ROE.

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

Organizational learning capability, firm innovativeness, and firm performance: A meta-analysis

DEFF Research Database (Denmark)

Schlägel, Christopher; Reichel, Lisa-Marie; Richter, Nicole Franziska

In the last twenty years a growing number of empirical studies tested the association be-tween organizational learning capability (OLC) and various economic outcomes. While these studies have provided a better understanding of these relationships, the literature is characterized by the use...... different measures. Based on 53 studies (13,663 firms), we (a) provide a systematic overview of the most commonly used OLC measures, (b) use meta-analytic techniques to highlight the relevance of OLC for firm innovativeness (ruc = .39) and firm perfor-mance (ruc = .41), and (c) explore the unique and common...

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......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 Italian and British samples differ more in terms of composition of the set practices than in terms of overall incidence, but the statistical associations between some of the practices and the firm's performance are robust across countries. The counterfactual analysis shows that could the Italian firms...

Top managers’ compensation and governance in Spanish firms: Evidence and reflections

Directory of Open Access Journals (Sweden)

Gregorio Sanchez-Marin

2011-04-01

Full Text Available In Spanish listed firms, taking into account the predominant modes of ownership structure, which are characterized by a high concentration of shares in the hands of a few shareholders who are strongly represented on the board of directors, it might suppose that there are strong stimulus for a close top managers’ supervision and a straight interest alignment. However, the empirical evidence indicates the opposite, and this paradox needs to be explained within the theoretical framework of institutional theory. The high concentration of ownership and the high level of cross-holdings generate conflicting interests by those who have multiple roles as directors and top managers, suggesting that board’s supervisory effectiveness may be compromised by social pressures in search of legitimacy. These features of Spanish firms are undermining governance mechanisms, and may explain the high pay levels, the low variable packages and, in general, the lack of connection between top managers’ compensation and firm performance in comparison with those in other countries of Continental Europe.

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.

INITIAL PUBLIC OFFERING AND PERFORMANCE OF BRAZILIAN FIRMS

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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.

Related party transactions and firms financial performance ...

African Journals Online (AJOL)

Related party transactions and firms financial performance. ... African Research Review ... financial performance using Secondary data obtained from Nigeria stock ... on Asset, Return on Equity and Earnings per share of manufacturing firms. ... Result showed RPT has no significant effects on ROA and EPS and not used to ...

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

Does the meta-environment determine firm performance? Theory and evidence from European multinational enterprises

NARCIS (Netherlands)

de Jong, Gjalt; Phan, T. Binh; van Ees, Hans; Phan, T.T.

We study an underrepresented area in the international business literature: the effect of the meta-environment on multinational enterprise (MNE) performance. A meta-environment is a symbiosis of all country environments where an MNE operates. This conceptualization of a firm's external context is

Firm-value effects of CSR disclosure and CSR performance

OpenAIRE

Gutsche, Robert; Schulz, Jan-Frederic; Gratwohl, Michael

2017-01-01

We examine in this paper the effects of corporate social responsibility (CSR) disclosure and CSR performance on firm value for S&P 500 firms from 2011 to 2014. We find that CSR disclosure is positively associated with firm value and that the effect of CSR disclosure on firm value is larger than the effect of CSR performance. On average, the overall firm value increase for one index point of Bloomberg's environmental, social, and governance (ESG) Disclosure Score is $260 million, whereas the i...

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.

Shaking up the Firm Survival: Evidence from Yogyakarta (Indonesia

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Aloysius Gunadi Brata

2018-04-01

Full Text Available The survival of firms under changes in the business environment caused by exogenous shocks can be explained using economic Darwinism. Exogenous shocks can cause ‘cleansing effects’. Shocks clean out unproductive firms so that available resources are allocated to the remaining more productive firms. However, shocks may also force out young firms that have the potential to be highly productive in the future, which will lower the average productivity of industries. This is known as the ‘scarring effect’ of shocks. Therefore, the overall impact of exogenous shocks on the allocation of resources depends on the relative magnitude of cleansing and scarring effects. This paper investigates this natural selection mechanism after the Yogyakarta earthquake in 2006. The study uses data on medium-sized and large manufacturing firms in the Yogyakarta province collected by the Indonesian Statistical Agency. The main finding of this paper is that firms that had higher productivity prior to the earthquake in 2006 were more likely to survive after the earthquake, which suggests the existence of a natural selection mechanism, specifically cleansing effects. There is no evidence of the scarring effects of the earthquake on the new entrants.

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

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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.

The Impact of Workplace Conditions on Firm Performance

NARCIS (Netherlands)

I.S. Buhai (Sebastian); E. Cottini (Elena); N. Westergaard-Nielsen

2008-01-01

textabstractThis 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

Incentives and cooperation in firms: Field evidence

OpenAIRE

Berger, Johannes; Herbertz, Claus; Sliwka, Dirk

2011-01-01

We empirically investigate the impact of incentive scheme structure on the degree of cooperation in firms using a unique and representative data set. Combining employee survey data with detailed firm level information on the relative importance of individual, team, and company performance for compensation, we find a significant positive relation between the intensity of team incentives and several survey measures of cooperation. Moreover, higher powered team incentives are associated with low...

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...

Entrepreneurial orientation and firm performance : the mediating role of functional performances

NARCIS (Netherlands)

Rezaei, J.; Ortt, J.R.

2018-01-01

Purpose: Earlier studies have generally shown a positive relationship between entrepreneurial orientation (EO) and the overall performance of the firm. The purpose of this paper is to understand in more detail how EO influences firm performance. It adds to the literature by distinguishing

Immigration and Firm Performance: a city-level approach

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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.

Corporate Governance and Share Price: Evidence from listed Firms ...

African Journals Online (AJOL)

Corporate Governance and Share Price: Evidence from listed Firms in Nigeria. ... PROMOTING ACCESS TO AFRICAN RESEARCH ... Most companies in Nigeria adopt corporate governance practices without really knowing the resultant ...

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

Corporate governance mechanisms in family firms: Evidence from CEO turnovers

OpenAIRE

González, Maximiliano; Guzmán, Alexander; Pombo, Carlos; Trujillo, María Andréa

2013-01-01

Research Question/Issue: How sensitive is CEO turnover to firm performance in the context of family firms? Research Findings/Insights: Using a detailed database of mostly non-listed Colombian firms, we found that family ownership (direct and indirect through pyramidal structures) reduces the probability of CEO turnover when financial performance has been poor; however, we found that the opposite effect is true when families participate actively on the board of directors. These results hold tr...

From Knowledge to Firm Performance: An Empirical analysis of Intellectual Capital Impact in Polish and Dutch Listed Firms

Directory of Open Access Journals (Sweden)

Koen Verduijn

2013-09-01

Full Text Available Purpose: Empirical results about the direct relation of knowledge leading to financial performance at a firm is dispersed. This study aims to examine the impact intellectual capital (IC has on firm performance in Polish and Dutch listed firms.Methodology: Quantitative data is collected based on audited annual reports from the top 20 companies listed at the Warsaw Stock Exchange and Amsterdam Stock Exchange between 2007 and 2011. IC is measured using the VAIC methodology with its individual elements of HCE, SCE, and CEE. Direct relations between ICE, HCE, and SCE and five measures of firm performance are statistically analysed.Results: The results suggest that there is a direct positive relationship between ICE and firm performance of Polish and Dutch listed firms, particularly with ROA, ROE, EP, and to a lesser extent with ATO. Firms listed in Poland provide a stronger positive ICE relation to ROA and ROE where firms listed in the Netherlands provide a stronger positive ICE relation to EP. Regarding individual elements, HCE relates highly positive to ROA, ROE, and EP where SCE finds only partial negative relation with ATO.Implications: Nurturing IC and in particular HC confirms the importance of firm knowledge and employees with right training and other support. Additionally, further clarification regarding SC is required.Originality: This paper presents the first study of the IC relationship with firm performance in Poland as well in the Netherlands. Additionally, the comparison between firms of both countries establishes a novelty in IC research.

What makes environmental performance differ between firms? Empirical evidence from the Spanish tile industry

OpenAIRE

Andrés J Picazo-Tadeo; Andrés García-Reche

2007-01-01

Environmental performance is a matter of major concern both for policy makers and for firm managers. In this paper we interpret firms’ environmental performance as their ability to reduce polluting wastes while maintaining observed levels of inputs and desirable outputs. Making use of data envelopment analysis techniques, we compute waste-specific environmental efficiency measures for a sample of ceramic-tile producers located in the eastern Spanish region of Valencia. Our results show that t...

Do institutions, ownership, exporting and competition explain firm performance? Evidence from 26 transition countries

Czech Academy of Sciences Publication Activity Database

Commander, S.; Švejnar, Jan

-, č. 344 (2007), s. 1-32 [Winds of Change: The Impact of Globalization on Europe and Asia. Kiev, 23.03.2007-24.03.2007] Institutional research plan: CEZ:AV0Z70850503 Keywords : firm performance * productivity * competition Subject RIV: AH - Economics http://www.case.com.pl/upload/publikacja_plik/15038980_sa344.pdf

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

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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.

Foreign and domestic ownership, business groups, and firm performance: evidence from a large emerging market

NARCIS (Netherlands)

Douma, Sytse; George, Rejie; Kabir, Mohammed Rezaul

2006-01-01

We adopt a multi-theoretic approach to investigate a previously unexplored phenomenon in extant literature, namely the differential impact of foreign institutional and foreign corporate shareholders on the performance of emerging market firms. We show that the previously documented positive effect

Ownership Structure, Earnings Management and Investment Opportunity Set: Evidence from Mexican Firms

Directory of Open Access Journals (Sweden)

Juan M. San Martin-Reyna

2012-01-01

Full Text Available This paper analyses the influence of ownership, board of directors, and financial leverage on companies’ performance when these either face, or do not face, profitable growth opportunities. Towards that end we examined a sample of 83 listed Mexican firms during the period 2005-2011. The results confirm the relevance of debt and board of directors in terms of firm market value by showing a negative relationship between performance and both, board of directors and leverage, in the presence of growth opportunities. In contrast, the relationship between debt and performance becomes positive when firms have no profitable investment projects. The results also demonstrate that the relevance of controlling shareholders on firm value is different when firms have or not growth opportunities. Therefore, our results show that ownership structure, composition and size of board and the level of leverage play a dual role on performance (increase or decrease the firm value and determinewhether the firms have profitable investment projects.

The impact of gender diversity in the boardroom on firm performance: A South African perspective

Directory of Open Access Journals (Sweden)

Tshipa Jonty

2015-01-01

Full Text Available The study employs panel methodology and Ordinary Least Squares (OLS multiple regression to examine the impact of board gender diversity on firm performance for a sample of 137 Johannesburg Stock Exchange (JSE listed firms during the period 2002 and 2011. The results show that board gender diversity among South African firms have been improving substantially since 2002 when King II came into force. In 2002, the average South African board had only 4 per cent of women and by 2011, this had increased to 13 per cent. Notably, the findings also show that large South African firms have a greater representivity of women on their boards than small firms. By inference this could mean that gender diversity has a positive influence on firm value as findings further show that firm value in large firms is higher than that in small firms. This study contribute to the debate of whether board gender diversity influences firm value and whether the South African government should consider adopting quota legislation such as in Spain, Norway, The Netherlands and France. The findings suggest that there is evidence of a business case to advocate the implementation of quota legislation in South Africa. Empirical findings proceed to confirm that theories of corporate governance such as agency, resource-dependence, signalling and stakeholding surely provide some support to understanding the relationship between board gender diversity and firm performance.

Does Corporate Social Responsibility Improve Financial Performance of Nigerian Firms? Empirical Evidence from Triangulation Analysis

Directory of Open Access Journals (Sweden)

Fasanya Olaleke Ismail

2013-04-01

Full Text Available This paper examines the impact of Corporate Social Responsibility (CSR on Financial Performance of Firms in Nigeria. This study utilizes primary data that were obtained through the use of structured questionnaires. The questions were structured in such a way as to gather pertinent and specific information on how effective Corporate Social Responsibility (CSR has improved the financial viability of firms in Nigeria. This paper employs both descriptive and quantitative techniques in which chi-square technique was used to test the significance relationship among the frequencies. The study reveals that proper and effective CSR goes a long way in improving the trend of firms’ financial performance in Nigeria using Cadbury Nigeria Plc. as the study area. It was observed that CSR could be a key instrument to the financial development of any organizations through the process of giving back to the community.

Female Directors, Board Committees and Firm Performance

NARCIS (Netherlands)

Green, Colin P.; Homroy, Swarnodeep

A number of studies have found little economic impact of board gender diversity on firm performance. We return to this issue in the context of large European firms. Our contribution is twofold. First, using information on the gender of CEOs children as a source of exogenous variation in female

Is Transfer of Training Related to Firm Performance?

Science.gov (United States)

Saks, Alan M.; Burke-Smalley, Lisa A.

2014-01-01

The purpose of this study was to bridge the gap between micro-training research on the transfer of training and macro-training research on training and firm performance by testing the relationship between transfer of training and firm performance. Training and development professionals completed a survey about the training methods used in their…

A firm's activity in social media and its relationship with corporate reputation, firm size and firm performance

OpenAIRE

Mäkinen, Hanna

2015-01-01

The significance of social media has increased greatly in the past few years, leading companies to increase their social media activity and also increase their interest in knowing whether it is genuinely worth being active on social media, including knowing the potential advantages. This study aims to examine the relationship between social media activity and three variables: reputation, firm size and firm performance. The study analyzes the relationships between the constru...

Structure, Employment and Performance in Biotech Firms

DEFF Research Database (Denmark)

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

2006-01-01

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...... 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...

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.

EAST ASIAN CORPORATE GOVERNANCE: A TEST OF THE RELATION BETWEEN CAPITAL STRUCTURE AND FIRM PERFORMANCE

Directory of Open Access Journals (Sweden)

Ari Warokka

2011-07-01

Full Text Available Corporate governance theory predicts that leverage affects agency costs and thereby influences firm performance. Agency costs represent important problems in corporate governance in both financial and non-financial industries. Prior evidences have demonstrated an association between ownership structures, capital structure, and firm performance. This study extends the literature by proposing a further link between capital structure and firm performance in term of post Asian Financial Crisis that is rarely investigated. Using an agency framework, the research argues that the distribution of equity ownership among corporate managers and external block holders has a significant relationship with leverage and firm performance, and there is reverse causality effect between ownership structure, capital structure, and firm performance. The paper tests two hypotheses that explore various aspects of this relationship. This study uses 532 East Asian companies, which are located in INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE STUDIES Vol 3, No 2, 2011 ISSN: 1309-8055 (Online 2 seven most affected countries when the crisis took place during period 1996-1997. The time frame of analysis is 2000-2001 period that is believed as a start of recovery period. Statistic methods used for testing the hypothesis are t-test and multivariate regression model. The empirical results indicate that the East Asian companies after the crisis apply the efficiency-risk argument. In analyzing the reverse causation of capital structure and corporate performance relation, the result confirms the incentive signaling approach, which debt can be used to signal the fact that firm has prospect and equity issues may be interpreted as a negative signal.

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.

BIG DATA RESOURCES, MARKETING CAPABILITIES, AND FIRM PERFORMANCE.

OpenAIRE

Suoniemi, Samppa; Meyer-Waarden, Lars; Munzel, Andreas

2017-01-01

RESEARCH QUESTION Big data may significantly improve the efficiency and effectiveness of the firm's marketing capabilities. However, firms must overcome technological, skill-based and organisational challenges to become data-driven. Academic research has not empirically investigated how strategic big data resources, and to what extent, influence strategic marketing capabilities and, by extension, firm performance. The primary objective of this research is to remedy this crucial knowledge ...

Firm performance and the role of environmental management.

Science.gov (United States)

Lundgren, Tommy; Zhou, Wenchao

2017-12-01

This paper analyzes the interactions between three dimensions of firm performance - productivity, energy efficiency, and environmental performance - and especially sheds light on the role of environmental management. In this context, environmental management is investments to reduce environmental impact, which may also affect firm competitiveness, in terms of change in productivity, and spur more (or less) efficient use of energy. We apply data envelopment analysis (DEA) technique to calculate the Malmquist firm performance indexes, and a panel vector auto-regression (VAR) methodology is utilized to investigate the dynamic and causal relationship between the three dimensions of firm performance and environmental investment. Main results show that energy efficiency and environmental performance are integrated, and energy efficiency and productivity positively reinforce each other, signifying the cost saving property of more efficient use of energy. Hence, increasing energy efficiency, as advocated in many of today's energy policies, could capture multiple benefits. The results also show that improved environmental performance and environmental investments constrain next period productivity, a result that would be in contrast with the Porter hypothesis and strategic corporate social responsibility; both concepts conveying the notion that pro-environmental management can boost productivity and competitiveness. Copyright © 2017 Elsevier Ltd. All rights reserved.

Energy efficiency and exporting: Evidence from firm-level data

International Nuclear Information System (INIS)

Roy, Jayjit; Yasar, Mahmut

2015-01-01

While exporting firms and non-exporters have been compared across several dimensions, empirical comparisons on the basis of environmental performance are relatively few. Moreover, analyzing the environmental implications of firm-level exports is not trivial due to non-random selection into exporting. In this light, we examine the impact of exporting on firms' energy efficiency by resorting to an instrumental variables strategy based on a differencing approach (Pitt and Rosenzweig, 1990). Utilizing data from Indonesia, we find (i) exporting to reduce the use of fuels (relative to electricity) and (ii) concerns over endogeneity of exporting status to be relevant. - Highlights: • We examine the impact of exporting on firms' energy efficiency. • We employ cost share equations, firm-level data from Indonesia, and an instrumental variables strategy. • Exporting is found to reduce the use of fuels (relative to electricity).

Capital Structure Influence on Construction Firm Performance

Directory of Open Access Journals (Sweden)

Jayiddin Nur Faezah

2017-01-01

Full Text Available The interconnectedness between capital structure and firm performance is a topic of high interest among scholars and management alike. The scholars tend to unveil the why segment of the relationship, while the management looks into the how side to promote capital structure policy which can optimise the firm performance. While many studies have looked into this relationship across multiple industries and spanning across decades of data, the current study trains its lens on Malaysian public listed company companies which operate in the construction sector, and with data window between 2010 to 2014. This specific sector was chosen for their high gearing which renders firms to relatively high insolvency exposure emanating from interest rate fluctuations. The five-year timeframe was selected to isolate potential data contaminations streaming from global financial crisis which winds down in 2009. Financial data of the company were extracted from Bloomberg Terminal based on a pre-prepared list of Bloomberg tickers. A total of 225 observations were recorded in this study. Using Tobin’s Q as a proxy for firm performance, this study finds a mixed result where short term debts ratio indicates a significant negative effect, while long term debt ratio presents a non-significant influence. Explanations on this output are therefore discussed in this paper.

Cooperative R&D and firm performance

NARCIS (Netherlands)

Belderbos, R.A.; Carree, M.A.; Lokshin, B.

2004-01-01

We analyse the impact of R&D cooperation on firm performance differentiating between four types of R&D partners (competitors, suppliers, customers, and universities and research institutes), and considering two performance measures: labour productivity and productivity in innovative (new to the

DIFFERENCES IN REPORTED FIRM PERFORMANCE BY GENDER: DOES INDUSTRY MATTER?

OpenAIRE

JANE L. SWINNEY; RODNEY C. RUNYAN; PATRICIA HUDDLESTON

2006-01-01

Business performance results were collected from small business entrepreneurs in one Mid-western state operating in the retail and services industries. These industries account for more than 80 percent of female entrepreneurs' fields of operation. The pattern of reported firm performance between the genders indicated that male entrepreneurs with a high school education reported the highest firm performance scores overall. Female entrepreneurs with a college degree reported the highest firm pe...

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.

Tax optimization and the firm's value: Evidence from the Tunisian context

Directory of Open Access Journals (Sweden)

Soufiene Assidi

2016-09-01

Full Text Available The paper investigated the relationship between corporate tax optimization and the firm's value in the Tunisian context over an 11 year period. The empirical results revealed that tax optimization, accruals and investment increased the firm's value. After dividing the sample between listed and non-listed firms, we concluded that, compared to non-listed firms, the listed firms were better able to optimize tax through adopting a tax policy. Our findings help decision makers, researchers and practices to better understand the role of tax optimization in the management of firms and, also, in their performance.

Predicting Post-Acquisition Performance: Focusing on High-Technology Target Firms

National Research Council Canada - National Science Library

King, David

2002-01-01

.... Even though existing research finds acquisitions, on average, do not improve firm performance, the dominant explanation for why firms pursue acquisitions is that they seek increased performance...

Performance of Brazilian Companies: Year Effects, Line of Business and Individual Firms

Directory of Open Access Journals (Sweden)

Luiz Artur Ledur Brito

2004-07-01

Full Text Available Performance varies. This simple statement conceals many intricacies of strategic management. Because performance varies among individual firms, researchers can explore factors that differentiate these firms and explain why some firms are consistently outperforming others. Because performance varies among industries, researchers can explore structural characteristics of different branches of accounting as a source of explanation. Because performance varies with time, researchers can explore environmental and internal dynamic elements that drive strategic decision-making. In reality,measuring and analyzing performance is a very complicated issue when performance varies simultaneously from firm to firm, from industry to industry and from year to year. The theoretical discussion behind this question is the relative importance of the industrial organization derived approach to strategy versus the resource-based view. This paper analyzes the composition of performance variance of a set of Brazilian firms from 1998 to 2001. The results demonstrate that firm effects are still dominant, with year and industry effects being lower, as previous studies with North American firms have indicated.

The Impact of Financial Access on Firm Growth: Evidence from ...

African Journals Online (AJOL)

The Impact of Financial Access on Firm Growth: Evidence from Ethiopian Grain Traders and Millers. ... Ethiopian Journal of Economics ... the necessary investment to provide effective marketing services for the transformation of agriculture.

Core Knowledge Employee Creativity and Firm Performance: The Moderating Role of Riskiness Orientation, Firm Size, and Realized Absorptive Capacity

Science.gov (United States)

Gong, Yaping; Zhou, Jing; Chang, Song

2013-01-01

In this study, we examine when creativity is positively or negatively related to firm performance. Building on the creation-implementation tension theorized in the literature and the attention capacity perspective, we argue that the relationship between creativity and firm performance is contingent on riskiness orientation, firm size, and realized…

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 detailed cross-sectional survey data on workplace conditions. This enables us to address typical econometric problems such as omitted variables bias or endogeneity in estimating i) standard production functions augmented with work environment indicators and aggregate employee characteristics and ii) firm...... mean wage regressions on the same explanatory variables. Our findings suggest that improvement in some of the physical dimensions of the work health and safety environment (speci.cally, "internal climate" and "repetitive and strenuous activity") strongly impacts the firm productivity, whereas "internal...

Does bank failure affect client firms? Micro evidence from Estonia

Czech Academy of Sciences Publication Activity Database

Joeveer, Karin

-, č. 224 (2004), s. 1-29 ISSN 1211-3298 Institutional research plan: CEZ:AV0Z7085904 Keywords : bank failure * client firm performance * firm bank ruptcy Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp224.pdf

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...

Corruption and Firm Growth: Evidence from China

OpenAIRE

Wang, Y.; You, J.

2012-01-01

Corruption is one of the most pervasive obstacles to economic and social development. However, in the existing literature it appears that corruption seems to be less harmful in some countries than in others. The most striking examples are well known as the "East Asian paradox": countries displaying exceptional growth records despite having thriving corruption cultures. The aim of this paper is to explain the high corruption but fast economic growth puzzle in China by providing firm-level evid...

Firm break-up and performance

Czech Academy of Sciences Publication Activity Database

Kočenda, Evžen; Hanousek, Jan

2012-01-01

Roč. 13, č. 2 (2012), s. 121-143 ISSN 1435-6104 R&D Projects: GA ČR GA402/09/1595 Institutional support: PRVOUK-P23 Keywords : break-up of firms * corporate performance * ownership changes Subject RIV: AH - Economics Impact factor: 0.588, year: 2012

Job loss, firm-level heterogeneity and mortality: Evidence from administrative data.

Science.gov (United States)

Bloemen, Hans; Hochguertel, Stefan; Zweerink, Jochem

2018-04-01

This paper estimates the effect of job loss on mortality for older male workers with a strong labor force attachment. Using Dutch administrative data, we find that job loss due to firm closure increased the probability of death within five years by a sizable 0.60 percentage points. Importantly, this effect is estimated using a model that controls for firm-level worker characteristics, such as lagged firm-level annual average mortality rates. On the mechanism driving the effect of job loss on mortality, we provide evidence for an effect running through stress and changes in life style. Copyright © 2018 Elsevier B.V. All rights reserved.

Assessment of U.S. firm-level climate change performance and strategy

International Nuclear Information System (INIS)

Yu, Yu; Wang, Derek D.; Li, Shanling; Shi, Qinfen

2016-01-01

Climate change is becoming an increasingly critical concern for human society. While there has been a great deal of research on climate change performance at the country/region level, our research focuses on the study of firm-level environmental efficiency as a proxy for firms' climate change management. Using a unique data set on U.S. S&P 500 firms for the period 2012–2013 and DEA slack-based models, we obtain firms' environmental efficiencies in six sectors. The results show significant performance dispersions both across and within the sectors. We highlight each sector's pros and cons in the environmental performance and propose guidelines for policy makers to further improve climate change performance. We also evaluate firms' operational performance and propose a unified performance measure by integrating operational and environmental efficiencies. Overall, we find there is no significant relationship between operational and environmental efficiencies in any of the six industrial sectors under study. The unified performance measures are more driven by the environmental efficiency than the operational efficiency. - Highlights: •U.S. firms have large variations in climate performance across/within the sectors. •Relationship between operational and climate performances is not significant. •The operational and climate performances can be captured in a unified measure.

Environmental management and firm performance: a case study.

Science.gov (United States)

Claver, Enrique; López, María D; Molina, José F; Tarí, Juan J

2007-09-01

This study has as its aim to help to clarify the relationship between environmental management and economic performance by integrating it into a wider framework that includes the relationship between environmental strategy and firm performance, the latter being understood as the combination of environmental performance, competitive advantage and economic performance. A case study of the COATO farming cooperative showed us that its environmental management, focused on prevention logic, has had a positive net effect on its environmental performance. Besides, the order in which these practices were adopted favoured the development of new organisational capabilities that have contributed to the appearance of advantages derived from the greater accumulated experience of employees in creating new projects that are designed to reduce residues and pollution. COATO has also obtained a competitive advantage in differentiation thanks to an improved brand image and to its increased credibility in business relationships. Finally, a positive correlation exists between the pioneering proactive strategy adopted by this cooperative and the improvement of its firm performance with respect to the other firms in its sector.

Corporate governance and stock price performance of firms during the crisis

DEFF Research Database (Denmark)

Farooq, Omar; Chetioui, Youssef

2012-01-01

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 transa......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...

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 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...

Firms as liquidity providers: Evidence from the 2007-2008 financial crisis

OpenAIRE

García-Appendini, Emilia; Montoriol-Garriga, Judit

2013-01-01

Using a supplier-client matched sample, we study the effect of the 2007-2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high pre-crisis liquidity levels increased the trade credit extended to other corporations and subsequently experienced better performance as compared to ex-ante cash-poor firms. Trade credit taken by constrained firms increased during this period. These findings are consis...

Characterization of the Relationship Between Firms and Universities and Innovation Performance: The Case of Colombian Firms

Directory of Open Access Journals (Sweden)

Fredy Gomez

2014-04-01

Full Text Available Within the National Innovation System, universities play a key role as the main source of knowledge that supports national productivity and as a system that seeks to improve the competitiveness of firms competitiveness and to find answers concerning market needs in today’s fast-changing and globalized economy. Innovation, as a source of competitiveness, is normally supported by a firm’s technological capabilities: internal R&D, external collaborative agreements, and relationships with universities. This study uses a cluster analysis to identify three clusters that represent respectively those firms that interact closely with universities for technology development (which include R&D projects and technological learning activities, those firms that interact with universities for technological learning only, and those that do not have any kind of relationship with universities. We also analyze the innovation performance of each cluster. Data here come from the Second Colombian Innovation Survey, which was applied in 2005 to a sample of 6,222 firms. Among the main results, this study shows a higher innovation performance for those firms with relevant linkages for technology learning activities.

Relationship between innovation capability, innovation type, and firm performance

Directory of Open Access Journals (Sweden)

R.P. Jayani Rajapathirana

2018-01-01

Full Text Available Insurers are well versed in the litany of challenging conditions facing the sector. These challenges are economic, political, regulatory, legal, social, and technological. As a result of those pressures, the industry is experiencing increasing competition, muted growth, and an excess of capital. The increased connectivity among household and workplace devices, the development of autonomous vehicle and the rising threat of cyber attacks are transforming the way people live and risk they need to mitigate with insurance products. Insurers need to adopt their business models address the changes which can be threatening to the growth of the industry (Deloitte, 2017. Innovation is widely regarded as pinnacle success factor in highly competitive and global economy. An innovation perspective draws a clear picture of future opportunities that lie ahead. The main purpose of this paper is to explore the relationship among innovations capability, innovation type and on the different aspect of firm performance including innovation, market and financial performance based on an empirical study covering insurance industry in Sri Lanka. The research framework developed in this study was tested 379 senior managers of insurance companies. The empirical verification of assumption of this model has given evidence to confirm the relationship between innovation capabilities; innovation efforts and firm performance are significant and strong. The results of this study could lead effective management of innovation capability which helps to deliver more effective innovations outcomes to generate better performance and it would be benefits for management of the insurance companies.

Advertising Spending, Firm Performance, and the Moderating Impact of CSR

DEFF Research Database (Denmark)

Assaf, A. George; Josiassen, Alexander; Ahn, Jin Sun

2017-01-01

This article investigates the potential of corporate social responsibility (CSR) to influence the link between advertising spending and firm performance. Drawing upon the literature of CSR, we hypothesize that CSR positively moderates the relationship between advertising spending and firm perform...

Does firm performance affect board independence?

Directory of Open Access Journals (Sweden)

Yi Wang

2010-07-01

Full Text Available This paper seeks to shed some light on the antecedents of board independence. Specifically, it attempts to test the conceptual frameworks which make different predictions about the effect of firm performance on the level of board independence. The results provide support for the perspective that appointing more independent members to the boards may merely represent firms’ attempts to comply with institutional pressures. It is found that higher blockholder shareholdings lead to lower independence on the board, and audit and remuneration committees. Moreover, larger firms have relatively more independent directors sitting on nomination and remuneration committees.

Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance

OpenAIRE

Cristini Annalisa; Gaj Alessandro; Labory Sandrine; Leoni Riccardo

2003-01-01

In the last decade a growing economic literature has been devoted to the relationship between firm organisation and performance. Empirical analyses mainly focus on the relationship between human resources management and firm performance, neglecting the role played by organisational designs. The aim of this paper is to integrate the analysis of this relationship and verify the extent to which it is relevant for Italian firms. The data set, for a sample of manufacturing firms located in Lombard...

Environmental performance, profitability, asset utilization, debt monitoring and firm value

Science.gov (United States)

Bukit, R. Br; Haryanto, B.; Ginting, P.

2018-02-01

The growing issue on firm value shows that firm value is not only determined by the firm ability to increase financial profit, but also by the company's concern in maintaining the environmental condition. The industrial development produces waste that pollutes the environment that has potential to serious impact on the next life. In addition to provide financial benefits, companies are increasingly facing pressure to be socially responsible for the survival of the company. However, past findings demonstrate that the effect of environmental performance, profitability, and asset utilization to the firm’s value are still unclear. This study aims to test whether environmental performance, firm profitability and asset utilization can effectively enhance firm value in two different conditions: intensive debt monitoring and less intensive debt monitoring. Sample of companies is taken from the list of Indonesia Stock Exchange during the period of 2013 to 2015. Using multiple regression analysis, discloses that: in intensive monitoring, managers tend to have high firm value when company has high environmental performance and or high profitability and high asset utilization. Monitoring system needs to be intensified especially for companies with the above characteristics.

Executive Remuneration and the Financial Performance of Quoted Firms: The Nigerian Experience

Directory of Open Access Journals (Sweden)

Sunday OGBEIDE

2016-12-01

Full Text Available This study examined executive remuneration and firms’ performance in Nigeria. Specifically, the study seeks to ascertain the nexus between executive remuneration, firm size and board size variables and the performance of quoted companies. The population of the study consists of all the quoted firms as at 31st December, 2014. A sample of sixty (60 companies excluding non- financial firms was selected for the period 2013 and 2014. Summary statistics such as descriptive, correlation and granger causality tests were used. Inferential statistics, using panel Generalized Least Square (EGLS with fixed effect was used for the purpose of empirical validations. This was after the application of diagnostic test to enhance the study. The study ascertained that executive remuneration has a relationship with firm performance, but negatively impacted on it; though was not statistically significant. Firm size was ascertained not to have significant positive relationship with firms’ performance; though it has a causality relationship with the performance of the firms. Board size was found to negatively affect the performance of firms and is statistically not significant. Premised on this, the study suggests that executive remuneration of quote firms should be pegged constantly in a flexible manner. This will enable shareholders known the causality relationship between what is paid to the executive and how that influence performance.

Chief Executive Officer Duality And Financial Performance of Firms In Nigeria

Directory of Open Access Journals (Sweden)

Dominic Ose Erah (B.Sc, M.Sc

2013-07-01

Full Text Available the work is centred on CEO Duality and Financial Performance of Firms in Nigeria. The objective of the study is to find out the relationship between CEO Duality and the Financial Performance of Firm. We adopted the use of secondary data from the Nigerian Stock Exchange Fact book drawn from various industries during the period 2001 – 2010 and the regression analysis with its Best Linear Unbiased Estimate (BLUES was employed to test our hypothesis. The findings of the study revealed that CEO Duality is harmful to the Financial Performance of a firm. The study proffered useful recommendations, which when implemented will help improve financial performance of firms in Nigeria.

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

ICT, skills, and organizational change: evidence from Italian manufacturing firms

OpenAIRE

Paola Giuri; Salvatore Torrisi; Natalia Zinovyeva

2008-01-01

This article examines the complementarity among information and communication technologies (ICT), skills, and organizational change from a panel of 680 Italian manufacturing firms during 1995-2003. By drawing on different statistical methods, we found evidence of complementarity between skills and organizational change, but did not find evidence of complementarity between ICT and skills. Moreover, our results show that the hypothesis of full complementarity among ICT, human capital, and organ...

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...... there is no impact on performance when increasing compliance with the recommendations on risk management and internal controls. This article demonstrates that these three areas are the ones where Danish firms show the lowest degree of comply or explain disclosure, although the overall adherence to the Danish code...... that soft law may be an efficient way of increasing the quality of corporate governance among listed firms. However, in order to strengthen investor confidence, national code authorities/committees should be more active in penalizing poor explanations as well as cases where firms wrongfully state...

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.

Family values: Ownership structure, performance and capital structure of Canadian firms

OpenAIRE

King, Michael R.; Santor, Eric

2007-01-01

This study examines how family ownership affects the performance and capital structure of 613 Canadian firms using a panel dataset from 1998 to 2005. In particular, we distinguish the effect of family ownership from the use of control-enhancing mechanisms. We find that freestanding family-owned firms with a single share class have similar market performance than other firms based on Tobin's q ratios, superior accounting performance based on ROA, and higher financial leverage based on debt-to-...

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.

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 average age and the standard deviation of employees' age and firms' value added per employee. Linked employer employee data of all private-sector firms in Denmark with at least 20 employees is used. Findings - A pyramidal or inverse U-shaped interrelation is found between mean age and standarddeviation...... of age and value added per employee, respectively. Research limitations/implications - It would be interesting to determine whether the results hold for different countries with other institutional environments.Originality/value - This is the first paper to examine the link between corporate age...

Internationalization and firm performance in Chindia countries: a meta-analytic review

Directory of Open Access Journals (Sweden)

LINDA SCHULZE

Full Text Available For more than four decades, researchers have examined theoretically and empirically the relationship between internationalization and firm performance. While existing studies have provided important contributions, the stream of research still lacks consistency due to ambiguous findings on the internationalization-firm performance relationship. Moreover, previous research has often been limited to developed countries. The present study focuses on the emerging Chindia countries and determines the direction and the strength of the internationalization-firm performance relationship. Additionally, we have identified moderators of the relationship. Drawing on 21 studies, based on 9026 firms, we utilize a meta-analytic review to assess our hypotheses. Our results show that there is a significant and positive internationalization-firm performance relationship in Chindia countries. The effect of internationalization in India and China does not significantly differ. Moreover, we find that the effect of internationalization is significantly stronger in the United States as compared to the Chindia countries. The time period of data collection did not play an important role as a moderator. The present study contributes to the International Business literature by examining how and to which extent internationalization influences firm performance and offers implications for theory and practice as well as recommendations for future research.

When Intra-Firm and Inter-Firm Collaborations Co-Occur

DEFF Research Database (Denmark)

Schleimer, Stephanie Christine; Sculman, Arthur D.

2011-01-01

There is evidence that intra-firm collaboration and inter-firm collaboration are important for new service development (NSD) and new product development (NPD) success. However, evidence of the contributions of each to innovative outcomes is inconsistent. This inconsistency is associated with the ...

The effect of Delaware law on firm value: Evidence from poison pill adoptions

Directory of Open Access Journals (Sweden)

Terry L. Campbell II

2010-07-01

Full Text Available As the leading location for firm incorporations and corporate law, Delaware occupies a unique place in corporate governance and control. In this paper, we provide fresh evidence on whether Delaware’s dominance arises from its takeover laws being in the best interest of shareholders versus managers by investigating the role of the state in which a firm is incorporated on the firm’s adoption of a poison pill. Our results indicate that announcements of adoptions of poison pills by Delaware firms are associated with returns not significantly different from those for non-Delaware firms. Moreover, Delaware firms that adopt poison pills are no more likely to receive a takeover bid, be successfully acquired, or receive better merger terms than non-Delaware firms. Overall, it appears that Delaware law, with regards to takeovers, promotes an environment consistent with a “race to the middle” philosophy, neutral to management and shareholders.

Capital Structure and Firm Performance During Global Financial Crisis

OpenAIRE

Khodavandloo, Marzieh; Zakaria, Zukarnain; Nassir, Annuar Md.

2017-01-01

The relationship between capital structure and firm performance has been extensively investigated in the recent decades. However, only few studies investigate this relationship during financial crisis. Recent global financial crisis provides an opportunity to examine the effect of the crisis on the relationship between capital structure and firm performance. Therefore, this paper aims to investigate this relationship based on 45 listed companies involved in trading and services sector of the...

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...

Financial centers and firm performance during the crisis period

DEFF Research Database (Denmark)

Farooq, Omar; El Ouadrhiri, Khadija

2014-01-01

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...

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.

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.

Investigating the Effect of New Communication and Information Technologies on Organizational Structure and Firm Performance in Service Industry: a Survey of Consultant Engineering Firms

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ali akbar Farghangi

2013-10-01

Full Text Available This study aims to investigate the current and desired situation of information and communication technologies (ICT, organizational structure and firm performance in Consultant Engineering Firms. To do so, a descriptive-exploratory study was performed among 252 managers and experts of consultant engineering firms in Tehran. A cluster sampling approach was used bya self-administrated questionnaire. Reliability was confirmed by Cronbach’s coefficient. Using one sample t-test, paired sample t-test and regression analysis, results indicated that 1 current and desired situation of ICT, organizational structure and firm performance are acceptable, 2 there is significant difference between current and desired situation of ICT, organizational structure and firm performance, 3 ICT has a positive and significant effect on organizational structure and firm performance

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

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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.

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.

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

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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.

Inter-firm and intra-firm efficiency measures

NARCIS (Netherlands)

Oude Lansink, A.G.J.M.; Silva, E.; Stefanou, S.

2001-01-01

Intra-firm efficiency involves computing a particular firm's efficiency degree over time relative to the firm-specific production frontier. Inter-firm efficiency reveals a particular firm's performance over time relative to the ``best practice frontier'' among the set of comparable firms. These

Does money buy credit? Firm-level evidence on bribery and bank debt

OpenAIRE

Fungácová , Zuzana; Kochanova, Anna; Weill, Laurent

2014-01-01

This study examines how bribery influences bank debt ratios for a large sample of firms in 14 transition countries. We combine information on bribery practices from the BEEPS survey with firm-level accounting data from the Amadeus database. Bribery is measured by the frequency of extra unofficial payments to officials to “get things done”. We find that bribery is positively related to firms’ total bank debt ratios, which provides evidence that bribing bank officials facilitates firms’ access ...

Tax Incentive, Public Share Proportion, and Firm Performance: Evidence from Indonesian Capital Market

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Vierly Ananta Upa

2012-01-01

Full Text Available Indonesian government has changed the taxation law in 2007. The regulation revealed thatcompanies listed on capital market can obtain reduced income tax rate by 5 percent. Decrease inincome tax rates is granted to domestic corporate taxpayers listed on capital market that have publicownership over 40 percent of the total paid shares and the shares owned by at least 300 parties. Thepurpose of this research is to analyze the effectiveness of government regulation (PP No. 81 of 2007.This research used companies listed on Indonesia Stock Exchange (IDX which have right offeringin 2009-2010 as a sample. Sample selection is performed based on purposive sampling method. Theresult indicates that government regulation related to tax incentives, which was aimed to increasethe proportion of public ownership, is still less effective. In addition, this study also showed that theproportion of public ownership has no significant effect on firm performance

Firms' degree of born-globalness, international entrepreneurial orientation and export performance

DEFF Research Database (Denmark)

Servais, Per; Kuivalainen, Olli; Sundqvist, Sanna

2007-01-01

Despite the recent increase in 'born-global' studies, there has been little research on how the scale and scope of being a born-global firm affects performance: most of the earlier research takes no account either the number of or the distances between the countries on firm or export performance...... 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....

Fashion Brand Purity and Firm Performance

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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.

ARE SMALL-FIRM CLUSTERS EMERGENT PHENOMENA? EVIDENCE FROM ZIMBABWE’S SMALL FURNITURE- MANUFACTURING FIRMS

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Godfrey MUPONDA

2014-07-01

Full Text Available The purpose of this study was to explore the reasons behind the rapid growth and apparent dynamism of Zimbabwe’s small-firm industrial clusters. The hypothesis behind the study was that these small-firm clusters are emergent phenomena. The study analysed the capital utilisation techniques of small firms located in a large industrial cluster in order to determine the factors that lead to the collective efficiency of such firms. The study found that, in comparison with large, stock exchange-listed firms, the cluster environment enables the small firm to operate from a relatively small capital base and also to use its capital more efficiently in creating revenues and profits. The individual firm does not have to invest its capital in a large assets base as this is done by a specialised group of firms within the cluster. Thus, the cluster has the characteristics of an emergent phenomenon.

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...... generally, our research demonstrates that the consequences of TMT diversity depend on the (1) specific attributes of diversity being considered and (2) firm and industry conditions under which strategic decisions take place....

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

OpenAIRE

Joris Meijaard; Lorraine Uhlaner

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 regarding the direct and indirect effects of family ownership and management on firm performance. Other variables in the analysis include various organization structure variables including standard...

Firm Financial Performance: An Empirical Investigation on Romanian SMEs

OpenAIRE

Ionescu Alexandra; Horga Maria-Gabriela; Nancu Dorinela

2013-01-01

Firm's financial performance is reflected by its profit and loss account. Still, all financial statements are needed in order to have a complete view on a firm's financial performance. As a general rule, several financial indicators are calculated in this sense. Hence, it would be of great interest to reduce the number of financial indicators into fewer, more synthetic ones. However, the new indicators should reflect the same information as the first ones. Statistics offers this possibility t...

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...... innovation perspective to explore how Chinese firms improve their innovative performance. Our empirical analysis is based on a sample of 91 native Chinese firms in high-tech industries. The results indicate that Chinese firms widely implement an open innovation approach to strengthen their innovative...... 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...

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...

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...

Corporate Foresight and its Impact on Firm Performance: A Longitudinal Analysis

DEFF Research Database (Denmark)

Rohrbeck, René; Kum, Menes Etingue

2018-01-01

’s future preparedness (FP) by assessing the need for corporate foresight (CF) and comparing it to the maturity of its CF practices. We apply a longitudinal research design in which we measure future preparedness in 2008 and its impact on firm performance in 2015. The results indicated future preparedness......Corporate foresight is applied with the expectation that it will help firms to break away from path dependency, help decision makers to define superior courses of action, and ultimately enable superior firm performance. To empirically test this assumption, we developed a model that judges a firm...... to be a powerful predictor for becoming an outperformer in the industry, for attaining superior profitability, and for gaining superior market capitalization growth. In the article, we also calculate the average bonus/discount that can be expected by sufficiently/insufficiently future-prepared firms....

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

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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

The Role of Corporate Zakat on Optimal Capital Structure Policy: Evidence from Malaysian Firms

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Abrapuspa Ghani Talattov

2016-02-01

Full Text Available In the finance literature, the relationship between capital structure and firm value has been extensively investigated, both theoretically and empirically. The main issue on corporate finance is how firms dealing with the important decision of capital structure. In this study, a model of capital structure is formulated in which corporate tax and zakat payment exist by firms into the consideration of combination of debt and equity. The theoretical model as shown by comparative statics prove the implication which is negatively relationship between leverage of the firm and the corporate zakat payment. Meanwhile, the empirical evidence reveals several implication as follows, (1 tax deduction reduces the current liability item relative to the firms that prefer equity financing, (2 the significant of zakat is consistent with the theoretical model that zakat would encourage firm to issue more equity than debt, (3 the strong significant relationship between return on assets with the leverage are the leading indicator of capital structure in all models.

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

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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.

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

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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.

The Effects of Strategic Orientations and Perceived Environment on Firm Performance

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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.

Moderating the Role of Firm Size in Sustainable Performance Improvement through Sustainable Supply Chain Management

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Jing Wang

2018-05-01

Full Text Available In the context of the Chinese government’s strategy for sustainable development, the study of sustainable supply chain management (SSCM for enterprises has important practical significance. Drawing data from 172 Chinese firms, the model studied the moderating role of firm size on the SSCM practices and the sustainable performance of the firms (economic, environmental, and social, using hierarchical regression analysis on SPSS 22.0. The results suggest that SSCM practices and firm size are positively related to the firm’s environmental and social performance. Firm size moderates the effect of SSCM practices on economic performance. Additionally, SSCM internal practices have a significant positive impact on the economic performance of large enterprises, but not so much on the economic performance of the Small and medium enterprises(SMEs. This paper proposes a comprehensive SSCM practice performance model that identifies firm size as a moderating role. Through research on the moderating effect of firm size, the implementation and recommendation of SSCM for different firm size are given.

Sustainability Strategy and Management Control Systems in Family Firms. Evidence from a Case Study

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Fabio Caputo

2017-06-01

Full Text Available The aim of this paper is to investigate how the integration of new forms of sustainable control systems (SCSs and traditional management control systems (MCSs, and the use of these control systems affect the integration of sustainability within organizational strategy. A qualitative case study based on a longitudinal investigation of an Italian family firm operating in an environment-sensitive context, the intermodal transport industry, has been used to trace the company’s pathway to sustainability integration based on the Gond et al. framework. The paper enriches the Gond et al. conceptualization providing evidence of the external and internal factors relevant in affecting the organization’s pathway towards sustainability integration. To the best of the authors’ knowledge, the present study is the first analysis that investigates the integration of sustainability into organizational strategy in the context of family firms, from the point of view of performance management systems (PMSs.

Performance measurement systems, TQM, and multi-level firm performance: a person-organisation fit perspective

OpenAIRE

Wei, Jo-Ting; Chang, Yeun Wen; Zhang, Xiaoxiang; Wu, Hsin-Hung

2017-01-01

For firms implementing TQM, there is a need to redesign performance measurement systems (PMS). Innovated PMS ought to have measurement diversity in their structure with considering the spirit of TQM and emphasize the congruence of goals between employees and firms by adding the viewpoint of person-organisation fit (P-O fit). This paper adopts structural equation modeling (SEM) to examine Taiwanese manufacturing firms to study the association between the P-O fit of PMS and the implementation o...

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

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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.

Resource specialization, customer orientation, and firm performance: an empirical investigation of valuable resources

DEFF Research Database (Denmark)

Sørensen, Hans Eibe

2011-01-01

This study contributes to the strategic marketing research by empirically investigating the role of customer orientation in explaining how firms leverage their specialized but vulnerable resources. The aim is thus to explore a subset of the means by which resources become valuable to the firm...... – the first criterion for a strategic resource. Hypotheses are developed and tested using CEO questionnaire responses from a sample of manufacturing firms and census accounting data. The results show that there is a strong link between industry-specific resources and return on assets for firms with high...... levels of customer orientation. We also report that firm-specific resources are unrelated to firm performance and that a customer orientation – investigated in isolation, may be detrimental to firm performance. Research and managerial implications are discussed....

Do UK Institutional Shareholders Monitor their Investee Firms?

NARCIS (Netherlands)

Goergen, M.; Renneboog, L.D.R.; Zhang, C.

2008-01-01

As institutional investors are the largest shareholders in most listed UK firms, one expects them to monitor the firms they invest in. However, there is mounting empirical evidence which suggests that they do not perform any monitoring. This paper provides a new test on whether UK institutional

Firm performance: The role of CEOs' emotional and cognitive characteristics

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Kleanthis K. Katsaros

2015-08-01

Full Text Available The paper examines the relationships between CEOs’ personal traits, emotions, attitudes and tolerance of ambiguity; and subsequently, the influence of CEOs’ ambiguity tolerance in firms' performance. Design/methodology/approach – Survey data were collected from 256 ICT firms established in Greece. Their CEOs completed questionnaires examining TOA, personal traits, emotions and attitudes in the workplace. Principal components analysis and ordinary least-squares regressions were used to explore the hypotheses of the paper. Findings – Three factors characterize CEOs' emotions, namely pleasure, dominance and arousal; two factors their involvement, namely importance and interest; and, respectively, one their emotional intelligence namely, empathy/handling relationships. Further, locus of control; importance; arousal; empathy/handling relationships and interest affect decisively CEOs' tolerance of ambiguity, which in turn, seems to influence positively firms' performance. Research limitations/implications – Further research is required in Greek ICT industry regarding the influence of CEOs' emotional and cognitive attributes in organizations' financial performance. Likewise, this research should be expanded to other industries. Originality/value – The originality of this study lies in the finding that emotional and cognitive characteristics affect CEOs' TOA, which, in turn, influences significantly firms' performance. Another significant contributing factor is that the study is carried out in Greece, where few studies have been conducted in this area.

Disentangling the Impact of Control-Enhancing Mechanisms on Firm Performance

DEFF Research Database (Denmark)

Zattoni, Alessandro; Pedersen, Torben

2011-01-01

shareholders to expropriate minority shareholders. The aim of this article is to contribute to the current debate investigating the implications of these control-enhancing mechanisms on firm performance. To reach this purpose, we collected ownership data on the (100) largest listed companies per capitalization......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...... in five European countries (i.e. France, Germany, Italy, Spain, and the UK). Then we tested the consequences of control-enhancing mechanisms for firm performance using 2SLS regression models. Our results show that (i) mechanisms that lock-in control do have a direct and negative impact on firm performance...

Working Capital Management and Firm Profitability. Empirical Evidence for the Romanian Industry

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Miloş Marius Cristian

2017-01-01

Full Text Available The paper aims on empirically testing the connection between a firm's liquidity, or else a firm's ability to manage short-term liabilities, without undue stress and its profitability. We are using both a static and dynamic measure of firm liquidity: the traditional current liquidity ratio alongside one of the most frequent used working capital management indicator, the cash conversion cycle. An empirical analysis is performed based on 50 listed companies from Bucharest Stock Exchange, covering various industries. The empirical results are confirming the previous research that has confirmed the negative connection between the days sales outstanding (DSO, respectively the days inventory outstanding (DIO and the profitability of the firm, while cash conversion cycle seems to be positively connected with the firm profitability, in contradiction with some of the previous empirical literature.

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

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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

On explaining performance differentials: Marketing and the managerial theory of the firm

NARCIS (Netherlands)

Stoelhorst, J.W.; Raaij, van 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

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

Effects of Soft Loans and Credit Guarantees on Performance of Supported Firms: Evidence from the Czech Public Programme START

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Ondřej Dvouletý

2017-12-01

Full Text Available The purpose of this article was to conduct an empirical evaluation of the Czech public programme START, which was funded from the European Regional Development Fund. The programme lasted from 2007–2011, and supported new entrepreneurs through the zero interest soft loans and credit guarantees. The counterfactual analysis (using three matching techniques: propensity score, nearest neighbour, and kernel was conducted on the firm level and investigated the changes in financial performance (net profits, return on assets (ROA, return on equity (ROE, sales, assets turnover, and debt ratio of the supported firms four years after the end of intervention. The obtained findings could not support the hypothesis assuming a positive impact of the programme on the firm’s performance. On the contrary, supported companies reported on average lower sales and lower return on assets, when compared to the control group. The remaining variables could not prove any statistically significant impact of the programme. Indicators measuring firm’s profitability (net profit, return on assets, and return on equity suggested a negative influence of the programme and the variable representing debt ratio further indicated that firms that were supported by the programme reported on average higher debt ratio in comparison with the control group. Several policy implications are discussed in the study.

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

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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.

The impact of relational governance on performance improvement in export manufacturing firms

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Usama Awan

2018-05-01

Full Text Available Purpose: This paper seeks to identify the factors affecting social performance improvemens in the Pakistan export manufacturing firms and investigae inter-relationships existing among them. Design/methodology/approach: This study used a cross-sectional survey; data were collected using self-administered survey questionnaire. Using data collected from 239 small- and medium-sized direct exporters manufacturing firms in Pakistan. We used structural equation modelling (SEM approach to test structural model, and mediation analysis was conducted with regression analysis. Findings: The results support that meta-cognitive dimensions of cultural intelligence effect on social performance improvements, while the social performance improvement significant associated with innovation performance improvements. We suggest that cultural intelligence is a key to maintaining a relationship through development better cultural understanding and creating harmony among suppliers and buyers through minimizing the differences and disputes, requires developing social cohesion. Our results reveal that exporting firms need to adapt, reconfigure cultural knowledge and integrate resources into the operations to build learning capability, in turn, they can improve social performance and achieve superior innovation performance. Practical implications: Through the application of cultural intelligence capabilty, a firm could increase its ability to sense cultural differences, seize and adapt globally scattered cultural practices on social issues and allows for the development of unique knowledge resources and capabilities, impact on firm social performance and innovation performance improvements. Originality/value: The study conducted in Pakistan cultural context, which can be extended to other Asian countries. We argue that in a globalising world it is pertinent for exporting firms to have a better understanding of the various facets of cultural when dealing with inter

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

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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.

Impact of IS/IT Investments on Firm Performance: Does “Stakeholder Orientation” Matter?

OpenAIRE

Guerreiro, António

2015-01-01

This research project addresses a central question in the IS business value field: Does IS/IT investments impact positively on firm financial performance? IS/IT investments are seen has having an enormous potential impact on the competitive position of the firm, on its performance, and demand an active and motivated participation of several stakeholder groups. Actual research conducted in the Information Systems field, relating IS/IT investments with firm performance use transactions co...

Review the performance of brokerage firms and their role on ...

African Journals Online (AJOL)

The main goal of present study is to review the performance of brokerage firms and their role on increasing investment trust and stock liquidity degree, in this regard, the role of brokerage firms is studied on increasing investors' trust and stock liquidity degree by utilization of four independent variables (providing general and ...

Social capital, trust, and firm performance: the value of corporate social responsibility during the financial crisis

OpenAIRE

Lins, K V; Servaes, H; Tamayo, A

2017-01-01

During the 2008-2009 financial crisis, firms with high social capital, measured as corporate social responsibility (CSR) intensity, had stock returns that were four to seven percentage points higher than firms with low social capital. High-CSR firms also experienced higher profitability, growth, and sales per employee relative to low-CSR firms, and they raised more debt. This evidence suggests that the trust between the firm and both its stakeholders and investors, built through investments i...

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

Gender gaps in performance: Evidence from young lawyers

OpenAIRE

Azmat, Ghazala; Ferrer, Rosa

2015-01-01

This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike other high-skilled professions, the legal profession assesses performance using transparent measures that are widely used and comparable across firms: the number of hours billed to clients and the amount of new client revenue generated. We find clear evidence of a gender gap in annual performance with respect to both measures. Male lawyers bill ten percent more hours and bring i...

Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance

DEFF Research Database (Denmark)

Sofka, Wolfgang; Grimpe, Christoph

Firms rely increasingly on external knowledge, e.g. from universities, to improve their innovation performance. Existing research models the acquisition of knowledge either as a firm-specific search or a purchase on markets for technology. The former implies that a firm chooses and develops...... relationships with knowledge sources while the latter suggests a transaction governed by markets. We argue that both mechanisms increase a firm’s innovation performance but that they are interrelated. While on the firm level firm-specific search and acquisitions on markets for technology complement each other......, the costs of firm-specific search are only justified in underdeveloped markets. Otherwise, market transactions provide higher efficiency and flexibility. This negative cross-level interaction effect is stronger the more knowledge in an industry is covered by markets for technology. We test and support...

Effect of Work-Life Balance Practices on Firm Productivity: Evidence from Japanese firm-level panel data

OpenAIRE

YAMAMOTO Isamu; MATSUURA Toshiyuki

2012-01-01

This paper examines how firm practices that could contribute to worker attainment of work-life balance (WLB) affect the total factor productivity (TFP) of a firm, by using panel data of Japanese firms from the 1990s. We observed a positive correlation between the WLB practices and TFP among sampled firms. However, that correlation vanished when we controlled for unobserved firm heterogeneity, and we found no general causal relationship in which WLB practices increase firm TFP in the medium or...

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

Evaluating firms' R&D performance using best worst method.

Science.gov (United States)

Salimi, Negin; Rezaei, Jafar

2018-02-01

Since research and development (R&D) is the most critical determinant of the productivity, growth and competitive advantage of firms, measuring R&D performance has become the core of attention of R&D managers, and an extensive body of literature has examined and identified different R&D measurements and determinants of R&D performance. However, measuring R&D performance and assigning the same level of importance to different R&D measures, which is the common approach in existing studies, can oversimplify the R&D measuring process, which may result in misinterpretation of the performance and consequently fallacy R&D strategies. The aim of this study is to measure R&D performance taking into account the different levels of importance of R&D measures, using a multi-criteria decision-making method called Best Worst Method (BWM) to identify the weights (importance) of R&D measures and measure the R&D performance of 50 high-tech SMEs in the Netherlands using the data gathered in a survey among SMEs and from R&D experts. The results show how assigning different weights to different R&D measures (in contrast to simple mean) results in a different ranking of the firms and allow R&D managers to formulate more effective strategies to improve their firm's R&D performance by applying knowledge regarding the importance of different R&D measures. Copyright © 2017 The Authors. Published by Elsevier Ltd.. All rights reserved.

Board leadership structure and firm performance: An examination of resource dependence role

Directory of Open Access Journals (Sweden)

Afzalur Rashid

2011-01-01

Full Text Available This study examines if the CEO duality influence the firm economic performance in Bangladesh and the moderating effects of board composition in the form of outside independent directors. While doing so, it examines the relationship between CEO duality and firm performance during the pre appointment of outside independent directors and post appointment of outside independent directors (the role of other corporate governance mechanism as moderating variable. The finding is that there is there is a negative (non-significant relationship between CEO duality and firm performance before appointment of outside independent directors in the board. However, independent leadership structure and firm performance is found to be positively related following the acquisition of resource (outside independent directors in the board supporting the ’resource dependence theory’. The findings of this study partially support the ’agency theory’ and ’resource dependence theory’ but do not support the stewardship theory. This study contributes to the literature on CEO duality in the context of less a developed country.

Organizational Culture and the Financial Performance of Manufacturing Firms

OpenAIRE

Mahrooz Koochaki Golafzani; Ebrahim Chirani

2016-01-01

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 perfo...

Related Party Transactions and Firms Financial Performance

African Journals Online (AJOL)

Prof

Chien and Hsu (2010) found a positive moderating effect of corporate governance on the related transactions-firm performance relationship and deduce that presence of corporate governance could 'transfer' related party transactions 'conflict- of-interest' to be efficient. Past studies on the impact of RPT on financial reporting ...

Some new evidence on the determinants of large- and small-firm innovation

NARCIS (Netherlands)

B. van Dijk (Bob); R. den Hertog; A.R. Thurik (Roy); A.J. Menkveld (Bert)

1997-01-01

textabstractEmpirical analyses presented by Acs and Audretsch suggest differences in the market structure determinants of innovation between large and small firms in U.S. manufacturing. The evidence they offer is ambiguous. By using data for a different country (The Netherlands), a different measure

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.

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).

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...

When a Thousand Words Are (Not Enough: An Empirical Study of the Relationship between Firm Performance and Attention to Shareholders

Directory of Open Access Journals (Sweden)

Luciana Carvalho de Mesquita Ferreira

2015-04-01

Full Text Available The aim of this study is to concurrently test the explanatory power of the attention-based view (ABV of the firm and of the resource dependence theory (RDT. We propose a conceptual model of attention to shareholders based on assumptions of both ABV and RDT. We test these hypotheses using a unique dataset, consisting of contentanalyzed data on attention allocation for 313 firms from 24 different countries. Our research findings highlight the complementary nature of the RDT and ABV and add to the literature about attention, providing empirical evidence and theoretical explanation for the scarcely explored relationship between firm performance and organizational attention.

Innovation field orientation and its effect on innovativeness and firm performance

DEFF Research Database (Denmark)

Salomo, Søren; Talke, Katrin; Strecker, Nanja

2008-01-01

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...

Capital market financing, firm growth, and firm size distribution

OpenAIRE

Didier Brandao,Tatiana; Levine,Ross Eric; Schmukler,Sergio L.

2015-01-01

How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new data set is constructed by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. T...

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.

New technologies, workplace organisation and the age structure of the workforce: Firm-level evidence

OpenAIRE

Patrick Aubert; Eve Caroli; Muriel Roger

2005-01-01

This paper investigates the relationships between new technologies, innovative workplace practices and the age structure of the workforce in a sample of French manufacturing firms. We find evidence that the wage-bill share of older workers is lower in innovative firms and that the opposite holds for younger workers. This age bias affects both men and women. It is also evidenced within occupational groups, thus suggesting that skills do not completely protect workers against the labour-market ...

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...

EMPLOYEE INVOLVEMENT IN DECISION MAKING AND FIRMS PERFORMANCE IN THE MANUFACTURING SECTOR IN NIGERIA

Directory of Open Access Journals (Sweden)

Abdul-Hameed Adeola Sulaimon

2011-03-01

Full Text Available This study examines the relationship between employee involvement in decision making andfirms’ performance in the manufacturing sector in Nigeria. Data were generated by means ofquestionnaires to 670 manufacturing firms on employee involvement in decision making andperformance variables. Responses from the survey were statistically analysed using descriptivestatistics, product moment correlation, regression analysis and Z-test (approximated with theindependent samples t-test. The results of the study indicate a statistically significant relationshipbetween employee involvement in decision making and firms’ performance as well as reveal asignificant difference between the performance of firms whose employee involvement in decisionmaking are deep and the performance of firms whose employee involvement in decision making areshallow. The findings also reveal the involvement of participating firms in employee involvement indecision making. The implications of this study include the need for manufacturing firms todemonstrate high level of commitment to employee involvement in decision making for performanceenhancement.

Pharmaceutical R&D performance by firm size: approval success rates and economic returns.

Science.gov (United States)

DiMasi, Joseph A

2014-01-01

The R&D productivity of pharmaceutical firms has become an increasingly significant concern of industry, regulators, and policymakers. To address an important aspect of R&D performance, public and private data sources were used to estimate clinical phase transition and clinical approval probabilities for the pipelines of the 50 largest pharmaceutical firms (by sales) by 3 firms size groups (top 10 firms, top 11-20 firms, and top 21-50 firms). For self-originated compounds, the clinical approval success rates were 14.3%, 16.4%, and 18.4% for top 10 firms, top 11-20 firms, and top 21-50 firms, respectively. The results showing higher success rates for smaller firms were largely driven by outcomes for the small-molecule drugs. Adjustments for the relatively small differences in therapeutic class distributions across the firm size groups showed that the success rate for small-molecule self-originated drugs was 6% below average for top 10 firms and 17% above average for top 21-50 firms. Although success rates for small firms were higher, this advantage was offset to some degree by lower returns on approved drugs, suggesting different strategic objectives with regard to risk and reward by firm size.

Technological Innovation Capabilities and Firm Performance

OpenAIRE

Richard C.M. Yam; William Lo; Esther P.Y. Tang; Antonio; K.W. Lau

2010-01-01

Technological innovation capability (TIC) is defined as a comprehensive set of characteristics of a firm that facilities and supports its technological innovation strategies. An audit to evaluate the TICs of a firm may trigger improvement in its future practices. Such an audit can be used by the firm for self assessment or third-party independent assessment to identify problems of its capability status. This paper attempts to develop such an auditing framework that can...

Exploring effective factors on privatization, firm performance and export development: Evidence from steel industry

Directory of Open Access Journals (Sweden)

Seyed Mohsen Seyedaliakbar

2016-01-01

Full Text Available Privatization means establishing a new system based on the market mechanisms and consequently making a change, alteration in different aspects of economy and is a process in which the government can examine the possibility of transferring the duties and facilities to the private sector on any level and if necessary, exerts such transfer. On the other hand, exports in industry sector can be a noticeable point for the economic growth of any country. Enhancing the exports of the steel industry of the country can have a principal role in the economic pursuit of the country’s non-oil products. Such an enhancement brings about a positive effect in the efficiency of the stocks within the financial markets by developing the steel industry. Researchers of this field claim that privatization in the steel industry results in the further development of the steel stock market and exports. This paper presents a comprehensive survey on factors influencing on privatization of the firms in steel industry. The study has designed a questionnaire in Likert scale and distributed it among some experts who worked for Mobarakeh steel producer in Iran. Using principle component analysis, the survey has concluded that export activities were influenced the most by six major factors including creativity, technological limitation, opportunities and challenges, being up to date, customer orientation and financial sanction. Moreover, firm performance was influenced by two major factors of stakeholder’s satisfaction and organizational culture. Finally, two factors of rationalism and market orientation influenced the most on privatization.

Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms

Directory of Open Access Journals (Sweden)

Edyanus Herman Halim

2017-12-01

Full Text Available This study attempts to examine the effect of the Risk Management Committee on firm performance, and the intervening effect of the Risk Management Committee on the relationship between Corporate Governance, Firm Size, Financial Reporting Risk, and Firm Performance. Using the purposive sampling method, 299 firms were selected as the sample. This study used secondary data obtained from the companies’ annual reports, and the data was then analyze using SPSS, version 20.0. The results of this study indicate that the entire research hypothesis is accepted. This study found that the Risk Management Committee affects firm performance, and that Risk Management Committee acts as the intervening variable in the relationship between corporate governance, firm size, and financial reporting risk on firm performance. The existence of RMC would facilitate the company to control better the quality of financial reporting risks.

The financing and growth of firms in China and India : evidence from capital markets

OpenAIRE

Didier, Tatiana; Schmukler, Sergio L.

2013-01-01

This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using a unique data set on domestic and international capital raising activity and firm performance, it finds that the expansion of financial market activity since the 1990s has been more limited than what the aggregate figures suggest. Relatively few firms raise capital. Even ...

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.

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.

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’.

Is there a relationship between directors remuneration and firm performance?

Directory of Open Access Journals (Sweden)

Rashidah Abdul Rahman

2005-07-01

Full Text Available The primary objective of the study is to determine whether there is a positive relationship between directors’ fees with the size of the firm and performance, based on the annual report of 246 listed firms. The results indicate a weak positive relationship between directors’ remuneration, corporate size (total assets and corporate performance (operating cash flow on asset. The weak positive relationship between director fees and performance indicates that other factors, such as the director’s yearly performance, may also account for the determination of the director’s remuneration. The findings support the notion of agency theory and corporate governance that remunerating the top management should be based on individual and corporate performance. In contrast, other performance variables such as return on assets (ROA and earning per share (EPS measured indicates no statistical association.

Multibusiness firms and performance in Italy. What role does relatedness play?

Directory of Open Access Journals (Sweden)

Maurizio La Rocca

2018-05-01

Full Text Available This paper evaluates the effect of diversification strategy on corporate value for a sample of Italian companies. It accounts for both the level of diversification and relatedness components. Empirical analyses show a U-shaped curvilinear relationship between diversification and value. In contrast to the mainstream literature, our results highlight that related diversification has a negative effect, while unrelated diversification is a value-creating strategy. JEL classification: L25, M10, Keywords: Product diversification, Multi-business firm, Relatedness, Firm performance, Firm value

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

In the literature several suggestions have been put forward for tools, methods and mechanisms to coordinate new product development (NPD) and manufacturing. However, evidence of the operational performance effects of many of these approaches is at best limited. Furthermore, there is a lack...... 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...... between standardization and organization design, respectively, and performance are positively moderated by company size. Furthermore, innovativeness moderates the relationship between organization design and performance positively. For managers, our findings indicate that NPD-manufacturing coordination...

Innovation in clean coal technologies. Empirical evidence from firm-level patent data

Energy Technology Data Exchange (ETDEWEB)

Kruse, Juergen [Koeln Univ. (Germany). Dept. of Economics; Koeln Univ. (Germany). Energiewirtschaftliches Inst.; Wetzel, Heike [Kassel Univ. (Germany). Inst. of Economics

2016-02-15

This article empirically analyzes supply-side and demand-side factors expected to a.ect 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 a.ects clean coal innovation. On the demand-side we find strong evidence that environmental regulation of emissions, that is CO{sub 2}, NO{sub X} and SO{sub 2}, induces innovation in both efficiency improving combustion and after pollution control technologies.

Firm Size as Moderator to Non-Linear Leverage-Performance Relation: An Emerging Market Review

Directory of Open Access Journals (Sweden)

Umar Farooq

2017-08-01

such losses are more prominent for small size firms. Results also show that the leverage-performance relation is nonlinear for medium and large size firms. However, these firms are not targeting optimal level and overleveraging that ultimately decrease their profits. So, financial managers of small size firms should avoid debt financing while for large and medium size firms, managers need to adjust their debt ratio to its optimal level.

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....

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

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

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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.

The Dispersion of Employees' Wage Increase and Firm Performance

DEFF Research Database (Denmark)

Grund, Christian; Westergård-Nielsen, Niels Chr.

2008-01-01

than the dispersion of wage levels. It is reasonable to expect greater dispersion of wage increases to be associated with higher monetary incentives, but also with increased perceptions of unfairness. The authors' analysis of linked employer-employee data from Denmark for the years 1992-97 shows......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...

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

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

OpenAIRE

A. Berthou.; C. Sandoz.

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).

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...

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

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.

Source of finance, growth and firm size: Evidence from China

OpenAIRE

Du, Jun; Girma, Sourafel

2009-01-01

Using a comprehensive firm-level dataset spanning the period 1998-2005, this paper provides a thorough investigation of the relationship between firm size, total factor productivity growth and financial structure in China, controlling for the endogeneity of the latter. Generally, it finds financing source matters for firms of different size, and the extent to which financing source matters for firm growth is greater for small firms than big firms. Self-raised finance appears to be most effect...

Foreign Firms, Domestic Wages

DEFF Research Database (Denmark)

Malchow-Møller, Nikolaj; Markusen, James R.; Schjerning, Bertel

to the firm?s productivity. Foreign-owned firms have, on average, higher productivity in equilibrium due to entry costs, which means that low-productivity foreign firms cannot enter. Foreign firms have higher wage growth and, with some exceptions, pay higher average wages, but not when compared to similarly...... large domestic firms. The empirical implications of the model are tested on matched employer-employee data from Denmark. Consistent with the theory, we find considerable evidence of higher wages and wage growth in large and/or foreign-owned firms. These effects survive controlling for individual...... characteristics, but, as expected, are reduced significantly when controlling for unobservable firm heterogeneity. Furthermore, acquired skills in foreign-owned and large firms appear to be transferable to both subsequent wage work and self-employment...

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.

The Impact of the Syrian Refugee Crisis on Firm Entry and Performance in Turkey

NARCIS (Netherlands)

Akgunduz, Yusuf Emre; van den Berg, M.R.; Hassink, W.H.J.

We analyze how the Syrian refugee inflows into Turkey affected firm entry and performance. To estimate the causal effects, we use instrumental variables, difference-in-differences, and synthetic control methodologies. The results suggest that hosting refugees is favorable for firms. Total firm entry

Investment, Financing Constraints, and Internal Capital Markets: Evidence from the Advertising Expenditures of Multinational Firms

OpenAIRE

C. Edward Fee; Charles J. Hadlock; Joshua R. Pierce

2009-01-01

We find a significant positive relation between a firm's advertising spending in the United States and its contemporaneous foreign cash flow. This relation holds even after controlling for factors that should be related to the optimal level of domestic advertising, and it is stronger for subsets of firms that we expect to be relatively more financially constrained. Our evidence supports the hypothesis that there is a causal and economically substantial link between cash flow and investment sp...

A face only an investor could love: CEOs' facial structure predicts their firms' financial performance.

Science.gov (United States)

Wong, Elaine M; Ormiston, Margaret E; Haselhuhn, Michael P

2011-12-01

Researchers have theorized that innate personal traits are related to leadership success. Although links between psychological characteristics and leadership success have been well established, research has yet to identify any objective physical traits of leaders that predict organizational performance. In the research reported here, we identified leaders' facial structure as a specific physical trait that correlates with organizational performance. Specifically, we found that firms whose male CEOs have wider faces (relative to facial height) achieve superior financial performance. Decision-making dynamics within a firm's leadership team moderate this effect, such that the relationship between a given CEO's facial measurements and his firm's financial performance is stronger in firms with cognitively simple leadership teams.

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...

A generalized preferential attachment model for business firms growth rates. I. Empirical evidence

Science.gov (United States)

Pammolli, F.; Fu, D.; Buldyrev, S. V.; Riccaboni, M.; Matia, K.; Yamasaki, K.; Stanley, H. E.

2007-05-01

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

Does IS/IT Investments Impact on Firm Financial Performance: “Stakeholder” versus “Shareholder” Orientation

OpenAIRE

Guerreiro, António

2015-01-01

This research project addresses a central question in the IS business value field: Does IS/IT investments impact positively on firm financial performance? IS/IT investments are seen has having an enormous potential impact on the competitive position of the firm, on its performance, and demand an active and motivated participation of several stakeholder groups. Actual research conducted in the Information Systems field, relating IS/IT investments with firm performance use transactions costs...

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

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…

New workplace practices and firm performance:

DEFF Research Database (Denmark)

Cristini, Annalisa; Pozzoli, Dario

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 value added. We find...

Managerial Long-Term Responsibility in Family-Controlled Firms

Directory of Open Access Journals (Sweden)

Dietmar Sternad

2013-01-01

Full Text Available Evidence suggests that long-term orientation (LTO as a dominantstrategic logic contributes to the sustainable performance offamily-controlled firms (FCFS. Combining a review of the literatureon lto with stewardship theory and upper echelons theoryreasoning, this article presents a typology of managerial responsibilityand introduces the concept of long-term responsibility as amanagerial characteristic constituting a major driving force behindcreating lto. The antecedents of long-term responsibilityunder family firm-specific conditions (stemming from the familysystem, the governance system, and family-firm managers’ personalcharacteristics are also identified and presented in an integratedmodel. The paper contributes to a more comprehensiveunderstanding of intertemporal choice in fcfs and explains whythey tend to be more long-term oriented than other types of firms.

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 ...

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

OpenAIRE

Alimin Ismadi Ismail; Haslinda Abdullah; Jegak Uli; Raduan Che Rose

2010-01-01

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 direct...

Environmental and Financial Performance of Fossil Fuel Firms : A Closer Inspection of their Interaction

NARCIS (Netherlands)

Gonenc, Halit; Scholtens, Bert

We investigate the relationship between environmental and financial performance of fossil fuel firms. To this extent, we analyze a large international sample of firms in chemicals, oil, gas, and coal with respect to several environmental indicators in relation to financial performance for the period

Earnings management, audit committee effectiveness and the role of blockholders ownership: Evidence from UK large firms

Directory of Open Access Journals (Sweden)

Murya Habbash

2012-12-01

Full Text Available The existing literature documents that the quality of financial reporting is higher when firms have effective audit committees. However, recent studies find that audit committees are not effective in family firms where agency conflicts arise between controlling and non-controlling shareholders. This study extends the previous findings by investigating the effectiveness of audit committees in firms with similar agency conflicts when one owner obtains effective control of the firm. Compared to firms with a low level of block ownership, high-blockholder firms face less agency problems due to the separation of ownership and management, but more severe agency problems between controlling (blockholders and non-controlling shareholders (minority shareholders. Using a unique hand-collected sample, this study tests the largest 350 UK firms for three years from 2005 to 2007, and shows that firms with effective audit committees have less earnings management. This study also documents that the monitoring effectiveness of audit committees is moderated in firms with high blockholder ownership. The results are not sensitive to the endogeneity test and hold for alternative specifications of both dependent and independent variables. Overall, these findings suggest that audit committees are ineffective in mitigating the majority-minority conflict compared to their effectiveness in reducing owners-managers conflicts. These conclusions, along with some recent similar evidence (e.g., Rose, 2009 and Guthrie and Sokolowsky, 2010, may raise doubts about the monitoring role of blockholders asserted by agency theorists and widely accepted in corporate governance literature.

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.

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.

The Verdoorn law, firm strategy and firm performance

NARCIS (Netherlands)

Hartigh, den E.; Langerak, F.; Zegveld, M.A.; Geenhuizen, van M.; Trzmielak, D.M.; Gibson, D.V.; Urbaniak, M.

2009-01-01

In many markets and firms, positive feedback effects play an important role. Positive feedback effects mean that there is a tendency for that which is ahead to get further ahead, and for that which loses advantage to lose further advantage (Arthur, 1996). Such positive feedback effects result from

Does Organizational Learning Lead to Higher Firm Performance? An Investigation of Chinese Listing Companies

Science.gov (United States)

Zhou, Wencang; Hu, Huajing; Shi, Xuli

2015-01-01

Purpose: The purpose of this paper is to develop a framework for studying organizational learning, firm innovation and firm financial performance. Design/methodology/approach: This paper examines the effects of organizational learning on innovation and performance among 287 listed Chinese companies. Findings: The results indicate a positive…

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.

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...

Firm-Level Determinants of Exporting Behaviour: Evidence from ...

African Journals Online (AJOL)

This paper uses firm-level panel data to investigate the exporting behaviour of the Kenyan manufacturing firms. Using probit and tobit regression models, the results obtained show that factors determining the decision to export are different from those affecting the share exported. Likewise, factors determining exporting ...

Correlation between Sales of Foreign Affiliates and Productivity of Multinational Firms: Evidence from Korean Firm-Level Data

Directory of Open Access Journals (Sweden)

Jung Hur

2013-09-01

Full Text Available Using firm-level panel data for Korean multinational enterprises (MNEs, we make a distinction between being the only affiliate of a parent firm and being one of the multiple affiliates of a parent firm. In particular, we attempt to find a correlation between the sales of foreign affiliates and the productivity of multinational firms. Our main empirical results in this paper suggest that productive Korean MNEs would enlarge the number of affiliates in the host country.

Firm performance model in small and medium enterprises (SMEs) based on learning orientation and innovation

Science.gov (United States)

Lestari, E. R.; Ardianti, F. L.; Rachmawati, L.

2018-03-01

This study investigated the relationship between learning orientation, innovation, and firm performance. A conceptual model and hypothesis were empirically examined using structural equation modelling. The study involved a questionnaire-based survey of owners of small and medium enterprises (SMEs) operating in Batu City, Indonesia. The results showed that both variables of learning orientation and innovation effect positively on firm performance. Additionally, learning orientation has positive effect innovation. This study has implication for SMEs aiming at increasing their firm performance based on learning orientation and innovation capability.

Firm performance and employment in the EU emissions trading scheme: An empirical assessment for Germany

International Nuclear Information System (INIS)

Anger, Niels; Oberndorfer, Ulrich

2008-01-01

This paper empirically investigates the role of the EU Emissions Trading Scheme (EU ETS) for firm performance and employment in Germany. We provide an overview of relative allowance allocation within the EU ETS as well as an econometric analysis for a large sample of German firms covered by the scheme in order to assess the impacts of EU emissions regulation on both firm revenues and employment. The dataset indicates that the EU ETS was in an overall long position in 2005, although allowance allocation was very heterogeneous across member states. Our econometric analysis suggests that, within the first phase of the EU ETS, relative allowance allocation did not have a significant impact on firm performance and employment of regulated German firms

Do Work-Life Balance Policies Increase a Firm's Total Factor Productivity?: Evidence from panel data of Japanese firms (Japanese)

OpenAIRE

YAMAMOTO Isamu; MATSUURA Toshiyuki

2011-01-01

This paper examines how firms' policies for workers' work-life balance (WLB) affect total factor productivity (TFP) in the long run, by using panel data of Japanese firms from the 1990s. Although we observed a positive correlation between firms' WLB policies and their TFP, once controlling for unobserved firm heterogeneity, we found no causal relationship where WLB policies increase a firm's TFP in the long run. Under the following conditions, however, WLB policies would likely improve a firm...

The Impact of Hedge Fund Activism on Target Firm Performance, Executive Compensation and Executive Wealth

Directory of Open Access Journals (Sweden)

Andrew Carrothers

2017-10-01

Full Text Available This paper examines the relationship between hedge fund activism and target firm performance, executive compensation, and executive wealth. It introduces a theoretical framework that describes the activism process as a sequence of discrete decisions. The methodology uses regression analysis on a matched sample based on firm size, industry, and market-to-book ratio. All regressions control for industry and year fixed effects. Schedule 13D Securities and Exchange Commission (SEC filings are the source for the statistical sample of hedge fund target firms. I supplement that data with target firm financial, operating, and share price information from the CRSP-COMPUSTAT merged database. Activist hedge funds target undervalued or underperforming firms with high profitability and cash flows. They do not avoid firms with powerful CEOs. Leverage, executive compensation, pay for performance and CEO turnover increase at target firms after the arrival of the activist hedge fund. Target firm executives’ wealth is more sensitive to changes in share price after hedge fund activism events suggesting that the executive team experiences changes to their compensation structure that provides incentive to take action to improve returns to shareholders. The top executives reap rewards for increasing firm value but not for increased risk taking.

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.

Employee workplace representation in Belgium : effects on firm performance

NARCIS (Netherlands)

van den Berg, Annette; van Witteloostuijn, Arjen; Van der Brempt, Olivier

2017-01-01

Purpose: The purpose of this paper is to examine whether works councils (WCs) in Belgium have a positive effect on firm performance, notably productivity and profitability, while taking the role of trade unions into account. Design/methodology/approach: The authors first introduce the typical

Do institutions, ownership, exporting and competition explain firm performance?

Czech Academy of Sciences Publication Activity Database

Commander, S.; Švejnar, Jan

-, č. 65 (2008), s. 1-73 ISSN N Institutional research plan: CEZ:AV0Z70850503 Keywords : firm performance * ownership * competition * export Subject RIV: AH - Economics http://deepblue.lib.umich.edu/bitstream/2027.42/60636/4/IPC-working%20paper-065-CommanderSvejnar.pdf

Transparency, corporate governance and firm performance in The Netherlands

NARCIS (Netherlands)

van Beusichem, Herman Clasinus; de Jong, 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

Corporate Social Performance, Financial Performance for Firms that Restate Earnings

Directory of Open Access Journals (Sweden)

Lois Mahoney

2008-06-01

ROA and CSP Strengths is greater for restatement firms than non-restating firms.  In particular, we find that this positive relationship is a result of the People dimension of CSP, in particular CSP People Strengths.

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

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.

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

Drivers of international performance of Brazilian technology-based firms

OpenAIRE

Serpa Fagundes de Oliveira, Maria Carolina; Scherer, Flavia Luciane; Schneider Hahn, Ivanete; de Moura Carpes, Aletéia; Brachak dos Santos, Maríndia; Nunes Piveta, Maíra

2018-01-01

For Technology-Based Firms, international expansion represents an opportunity for growth and value creation. The present study was designed to analyze the role of technology-based companies (TBCs) internationalization drivers on international performance. Therefore, a descriptive research was carried out with a quantitative approach performed through a survey. Data collection happened with 53 Brazilian TBCs located in innovation habitats. These data were analyzed by multivariate statistical t...

The Importance of Environmental Resposibility in Firm Financial Performance

OpenAIRE

Dãnilã Alexandra; Horga Maria-Gabriela

2014-01-01

Ensuring environmental protection is one of the three pillars of sustainable development. Identifying the factors that lead to enterprise financial performance must take into consideration environmental factors. Research in the field showed an increasing importance of such factors in obtaining financial results. Present paper aims to demonstrate the link between environmental responsibility and firm financial performance, using statistical tools. Research was conducted in Romanian tourism sec...

Educational Diversity and Knowledge Transfers via Inter-firm Labor Mobility

DEFF Research Database (Denmark)

Marino, Marianna; Parrotta, Pierpaolo; Pozzoli, Dario

2016-01-01

have been previously exposed to educationally diverse workforces significantly increases the productivity of the hiring firms. Several extensions of our baseline specification support this finding and confirm that our variable of interest affects the arrival firm's performance mainly through......This article contributes to the literature on knowledge transfer via labor mobility by providing new evidence regarding the role of educational diversity in knowledge transfer. In tracing worker flows between firms in Denmark over the period 1995–2005, we find that knowledge carried by workers who...

Entrepreneurial Founders’ Imprints, Human Capital Sourcing, and Firm Performance

DEFF Research Database (Denmark)

Rocha, Vera; Brymer, Rhett Andrew

) early hiring choices affect new venture performance. This gap is surprising, since hiring soon after a firm founding is especially critical to sustained success. We propose that pipeline hiring – i.e., repeated hiring from various source organizations – might be a strategy considered by startups...

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.

CURRENT ASSET TUNNELING AND FIRM PERFORMANCE IN AN EMERGING MARKET

Directory of Open Access Journals (Sweden)

Ratna Candra Sari

2014-12-01

Full Text Available This study examines the effect of current asset tunneling on firm performance from the emerging market perspective. Although tunneling activities is a common practices by businesses especially in Indonesia, there exist obstacles in the measurement of tunneling activity because it is difficult to proof the existence of such practices. In this study, we measure tunneling by using accounts receivables and develop tunneling detection criteria. In addition, this study examines the effect of tunneling on firm performance and market reaction during the announcement of the related party transaction. The study finds that from the perspective of the being-tunneled companies, receivables to related parties negatively affect the company’s profit margin. Companies which announce related party transaction indicating tunneling obtain negative abnormal return during the announcement of the related party transaction.

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.

Gibrat's Law and the Firm Size / Firm Growth Relationship in Italian Services

NARCIS (Netherlands)

R. Piergiovanni; E. Santarelli (Enrico); L. Klomp (Luuk); A.R. Thurik (Roy)

2002-01-01

textabstractSeveral surveys on intra-industry dynamics have recently reached the conclusion from a large body of evidence that Gibrat's Law does not hold, i.e., the main finding is that firm growth decreases with firm size. However, almost all of these studies have been based on manufacturing. In

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.

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.

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

NARCIS (Netherlands)

van den Berg, M.R.|info:eu-repo/dai/nl/297206710

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

A meta analysis of the variability in firm performance attributable to human resource variables

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Lloyd Kapondoro

2015-01-01

Full Text Available The contribution of Human Resource Management (HRM practices to organisation-wide performance is a critical aspect of the Human Resource (HR value proposition. The purpose of the study was to describe the strength of HRM practices and systems in influencing overall organisational performance. While research has concluded that there is a significant positive relationship between HRM practices or systems and an organisation’s market performance, the strength of this relationship has relatively not received much analysis in order to explain the degree to which HRM practices explain variance in firm performance. The study undertook a meta-analysis of published researches in international journals. The study established that HRM variables accounted for an average of 31% of the variability in firm performance. Cohen’s f2 calculated for this study as a meta effect size calculation yielded an average of 0.681, implying that HRM variables account for 68% of variability in firm performance. A one sample Kolmogorov-Smirnov test showed that the distribution of R2 is not normal. A major managerial implication of this study is that effective HRM practices have a significant business case. The study provides, quantitatively, the average variability in firm success that HRM accounts for.

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.

Enterprise Performance in Asia: Using firm-level data for Policy ...

International Development Research Centre (IDRC) Digital Library (Canada)

Enterprise Performance in Asia: Using firm-level data for Policy-making. Micro and small enterprises play a critical role in job creation and economic ... prevent gender-based violence, and make digital platforms work for inclusive development.

Contributions of Science and Technology Parks Towards Firms' Performance in Pakistan

International Nuclear Information System (INIS)

Mangrio, W.B.; Naqvi, I.B.

2013-01-01

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 and 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. (author)

Competitiveness of firms, performance and customer orientation measures – empirical survey results

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Alena Klapalová

2011-01-01

Full Text Available The purpose of this paper is to presents results from two empirical surveys concerning selected factors which can be connected to customer orientation, performance and competitiveness of firms. The purpose of the surveys was also to reveal potential differences between sectors arising from not only the different influences of internal but as well as external environment. A survey instrument was developed to analyse the relationship between several variables measuring customer orientation of surveyed firms and between these factors and level of financial performance. Several statistical methods were applied to analyse the data, specifically descriptive statistics (means and standard deviations, one-way analysis of variance (ANOVA with Bonferroni post-hoc test using financial performance for clustering firms and for assessment of potential differences of customer orientation criteria evaluation and Spearman rank correlation coefficients to assess the linear bivariate relationship between customer orientation variables. The results of ANOVA show that only the innovativeness is distinctive distinguishing criteria in conformity with the indicators of financial prosperity and that there are some differences between companies from two groups of sectors within the managers’ perception of customer orientation criteria performance.

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

NARCIS (Netherlands)

Vaan, de M.; Boschma, R.A.; 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

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

The effect of innovative activity in firm performance and development: Analysing data from eurozone

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Ilias A. Makris

2016-06-01

Full Text Available Purpose – The purpose of this paper is to examine the effect of Innovative Activity on firm performance and growth. Active Research and Development is considered to be directly related with development, prosperity and growth, in micro and macro level and a key factor in hindering economic recession. Design/methodology/approach – We analyse economic data from listed firms of selected eurozone country-members in order to associate Research and Development with performance indicators in firm and country level. For that purpose, several firm data were collected from WorldScope data base and macroeconomic data from Worldbank database. The period examined is between 2002 and 2012, with a special focus on current financial crisis (after 2007. The empirical process includes, descriptive statistics and logistic regression analysis. Findings – Findings indicate the crucial effect of innovative process in economic performance and development in firm and country level. The latter highlights the urgent need for public support in order to spur innovative activity and high-tech exports, especially in countries that were heavily affected by recession. Research limitations/implications – Some research limitations are the large number of missing cases in WordScope database, as many firms after the beginning of current crisis exit stock market. Furthermore, the other part of the economy, the Small and Medium Enterprises does not exist in the analysis, as listed firms are mainly large and mature companies. Originality/value – The results tend to highlight the need for common policy measures in eurozone, in regard to such issues, instead of imposing horizontal budgetary constraints in specific countries (like Southern Europe, hindering the vicious recessionary circle.

Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance

OpenAIRE

Mario Macis; Fabiano Schivardi; Andrea Moro; Luca Flabbi

2015-01-01

We analyze a matched employer-employee panel data set and find that female leadership has a positive effect on female wages at the top of the distribution, and a negative one at the bottom. Moreover, performance in firms with female leadership increases with the share of female workers. This evidence is consistent with a model where female executives are better equipped at interpreting signals of productivity from female workers. This suggests substantial costs of under-representation of wome...

Modelling quality dynamics on business value and firm performance in big data analytics environment

OpenAIRE

Ji-fan Ren, S; Fosso Wamba, S; Akter, S; Dubey, R; Childe, SJ

2017-01-01

Big data analytics have become an increasingly important component for firms across advanced economies. This paper examines the quality dynamics in big data environment that are linked with enhancing business value and firm performance. The study identifies that system quality (i.e., system reliability, accessibility, adaptability, integration, response time and privacy) and information quality (i.e., completeness, accuracy, format and currency) are key to enhance business value and firm perf...

Does an Environmental Marketing Strategy Influence Marketing and Financial Performance? A Study of Indonesian Exporting Firms

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Kardison Lumban Batu

2017-01-01

Full Text Available Purpose – Broadly speaking, the implementation of green practice leads to higher performance in exporting firms. To test this concept empirically, this study proposes environmental marketing strategy as an antecedent of product differentiation and cost leadership as a means to promote marketing and financial performance. Design/Methodology/Approach – This study was conducted on 388 respondents serving as operational, production, and marketing managers of Indonesian exporting firms and used structural equation modelling (SEM with AMOS 18 as an analysis technique. Findings and implications – The findings revealed that environmental marketing strategy significantly influences product differentiation and cost leadership. More specifically, product differentiation simultaneously influences marketing and financial performance. However, cost leadership influences financial performance but not marketing performance. This study implies the importance of environmental orientation in setting a firm strategy and promoting the performance of international firms. Limitations – The measurement items proposed in this study were adopted from studies conducted in developed countries; they have not been proven appropriate for direct application in developing countries such as Indonesia. Originality – This study is original in that it explores the importance of environmental studies in setting a firm strategy and promoting the performance of international business.

An empirical analysis of ERP adoption by oil and gas firms

Science.gov (United States)

Romero, Jorge

2005-07-01

Despite the growing popularity of enterprise-resource-planning (ERP) systems for the information technology infrastructure of large and medium-sized businesses, there is limited empirical evidence on the competitive benefits of ERP implementations. Case studies of individual firms provide insights but do not provide sufficient evidence to draw reliable inferences and cross-sectional studies of firms in multiple industries provide a broad-brush perspective of the performance effects associated with ERP installations. To narrow the focus to a specific competitive arena, I analyze the impact of ERP adoption on various dimensions of performance for firms in the Oil and Gas Industry. I selected the Oil and Gas Industry because several companies installed a specific type of ERP system, SAP R/3, during the period from 1990 to 2002. In fact, SAP was the dominant provider of enterprise software to oil and gas companies during this period. I evaluate performance of firms that implemented SAP R/3 relative to firms that did not adopt ERP systems in the pre-implementation, implementation and post-implementation periods. My analysis takes two different approaches, the first from a financial perspective and the second from a strategic perspective. Using the Sloan (General Motors) model commonly applied in financial statement analysis, I examine changes in performance for ERP-adopting firms versus non-adopting firms along the dimensions of asset utilization and return on sales. Asset utilization is more closely aligned with changes in leanness of operations, and return on sales is more closely aligned with customer-value-added. I test hypotheses related to the timing and magnitude of the impact of ERP implementation with respect to leanness of operations and customer value added. I find that SAP-adopting companies performed relatively better in terms of asset turnover than non-SAP-adopting companies during both the implementation and post-implementation periods and that SAP

Technology diversification, coherence, and performance of firms

NARCIS (Netherlands)

Leten, B.; Belderbos, R.A.; Looy, van B.

2007-01-01

Technological diversification at the firm level (i.e., the expansion of a firm's technology base into a wide range of technology fields) is found to be a prevailing phenomenon in all three major industrialized regions,—the United States, Europe, and Japan—prompting the term multitechnology

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

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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.

Mediating Role of Knowledge Management in Effect of Management Accounting Practices on Firm Performance

OpenAIRE

David Han-Min Wang; Quang Linh Huynh

2013-01-01

While adopting knowledge management can improve firm performance, it is determined by implementing level of management accounting practices. Furthermore, it plays mediating role in the relationship between implementing management accounting practices and firm performance. This paper employs path analysis to investigate causal relationships among the variables. Then it uses procedures suggested by Sobel (1982) to examine the mediation of adopting knowledge management. Moreover, this paper util...

The Effects of Interactions between Management Control Systems and Strategy on Firm Performance: An Empirical Study

OpenAIRE

Melek Eker; Semih Eker

2016-01-01

In recent years, there has been growing interest in examining the relationships among management control systems, business strategy and firm performance. In this study, the interactions of management control systems and strategy with their impact on firm performance are examined with an empirical analysis, based on the data from 94 manufacturing firms from the top 500 in Turkey in 2014. The results support the postulate that high interaction between interactive control system (ICS) and differ...

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

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

Ownership concentration, choice of auditors, and firm performance

DEFF Research Database (Denmark)

Farooq, Omar; El Kacemi, Youssef

2011-01-01

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......, further, show that for a given level of ownership concentration, appointing one of the big-four auditors lead to superior firm performance....

The influence of market orientation on firm performance and members’ livelihood in Ethiopian seed producer cooperatives

NARCIS (Netherlands)

Sisay, Dawit Tsegaye; Verhees, Frans J.H.M.; Trijp, Van Hans C.M.

2017-01-01

The positive effects of market orientation and its components on firm performance are empirically supported by studies conducted for large firms in developed economies. However, its influence on performance in developing and emerging (D&E) economies, particularly under a cooperative's context,

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

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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.

The Role of Relative Performance in Inter-firm Mobility of Inventors

DEFF Research Database (Denmark)

Lorenzo, Francesco Di; Almeida, Paul

2017-01-01

Prior research has emphasized the influence of inter-firm mobility on knowledge flows and innovation, yet we have an incomplete picture of the antecedents of inventor mobility. Building on theoretical traditions related to decision-making based on limited, asymmetric, bounded information, and eco......Prior research has emphasized the influence of inter-firm mobility on knowledge flows and innovation, yet we have an incomplete picture of the antecedents of inventor mobility. Building on theoretical traditions related to decision-making based on limited, asymmetric, bounded information......, and economic and other incentives, our paper suggests that after controlling for individual performance and other variables previously shown to affect inter-organizational mobility, an inventor's performance relative to his co-patenting group alters his likelihood of mobility. Our analysis of 2648 inventors...... in the pharmaceutical industry shows that for those performing above their reference group (of past and current co-inventors in patenting), an increase in relative performance decreases the likelihood of mobility, and for those performing below the reference group, a decrease in relative performance decreases...

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

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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.

Firm Characteristics and Performance Disclosure in Annual Reports of Nigerian Banks using the Balanced Scorecard

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Solabomi Ajibolade

2017-05-01

Full Text Available This study investigated the influence of four firm characteristics (size, organisational structure, age and systemic importance on extent of performance disclosures by Nigerian banks using the balanced scorecard (BSC model. The population of the study comprised of publicly-listed banks in Nigeria, in operation from 2012 to 2014. Using a self-designed disclosure checklist, the annual reports of a sample of 15 publicly quoted banks in Nigeria were content-analysed for performance disclosure for the period 2012-2014. Descriptive statistics, t-test and Analysis of Variance (ANOVA were applied in data analysis, deducing inference at 5% significance level. It was observed that firms did not significantly differ in the extent of performance disclosure in each of the four BSC perspectives on one hand, and the overall BSC measure on the other hand, on the account of the four firm attributes examined. Considering that annual reports are mainstream amongst the media used to communicate firm performance to the public, it was recommended that preparers of such documents should consider disclosing financial and non-financial performance; this will not only provide a comprehensive basis to judge organisational performance, but will also assist in diffusing the clout created by asymmetry of information between preparers and users of performance reports.

The effects of process-oriented organizational design on firm performance

NARCIS (Netherlands)

Kohlbacher, M.; Reijers, H.A.

2013-01-01

Purpose – Several organizations choose a process-oriented organizational design as a source for competitive advantage. The purpose of this paper is to explore empirically the relationship between process orientation (PO) and firm performance. The paper considers PO as a multidimensional construct

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

DEFF Research Database (Denmark)

Lomberg, Carina; Urbig, Diemo; Stockmann, Christoph

2016-01-01

We shed new light on the structure of the relationship between entrepreneurial orientation (EO) and firm performance and how this relationship varies across contexts. Using commonality analysis, we decompose the variance in performance—in terms of the effects of innovativeness, proactiveness, and...

The Role of Ownership Concentration, its Types and Firm Performance: A Quantitative Study of Financial Sector in Pakistan

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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.

IMPACT OF CO-CREATION ON INNOVATION CAPABILITY AND FIRM PERFORMANCE: A STRUCTURAL EQUATION MODELING

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FATEMEH HAMIDI

Full Text Available ABSTRACT Traditional firms used to design products, evaluate marketing messages and control product distribution channels with no costumer interface. With the advancements in interaction technologies, however, users can easily make impacts on firms; the interaction between costumers and firms is now in peak condition in comparison to the past and is no longer controlled by firms. Customers are playing two roles of value creators and consumers simultaneously. We examine the role of co-creation on the influences of innovation capability and firm performance. We develop hypotheses and test them using researcher survey data. The results suggest that implement of co-creation partially mediate the effect of process innovation capability. We discuss the implications of these findings for research and practice on the depict and implement of unique value co-creation model.

Family firm research – A review

Directory of Open Access Journals (Sweden)

Qiang Cheng

2014-09-01

Part I of the article discusses the fundaments of family firms: the prevalence of and the agency conflicts within family firms. Part II summarizes the findings of recent U.S. family firm studies. It reviews the evidence on the family firm premium (how, which, and when family firms are associated with a valuation premium, the manifestation of the agency conflict between majority and minority shareholders in family firms, earnings quality and corporate disclosure, and the determinants of family ownership and control. Part III discusses the prevalence and characteristics of Chinese family firms and reviews the findings of related studies. The article concludes with some suggestions for future research.

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.

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

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.

R&D status and the performance of domestic firms in China's coal mining industry

International Nuclear Information System (INIS)

Sun, Sizhong; Anwar, Sajid

2015-01-01

Coal use accounts for a very large proportion of electricity production in China. Using a recently developed coarsened exact matching (CEM) technique, this paper examines the impact of research and development (R&D) activities on the performance of firms in China's coal mining industry. Our empirical results reveal that firms in China's coal industry that conduct R&D are more productive and their sales are higher. However, as far as the firm profitability and market shares are concerned, whether or not a firm in China's coal industry conducts R&D makes no difference. We find that foreign direct investment in China's coal mining industry leads to a significant decrease in the market share of domestic firms and its impact on productivity, sales and profitability of domestic firms is insignificant. The empirical results presented in this paper suggest that policies that encourage domestic firms in China's coal mining industries to conduct R&D can increase domestic production thereby reducing reliance on imports. Furthermore, productivity gains arising from R&D activities can also help Chinese mining firms to improve their competitive position in the international market. However, there is a need for restricting foreign direct investment in China's coal mining industry. - Highlights: • R&D status affects firm performance in China's coal mining industry. • Coal mining firms that conduct R&D are, on average, 0.2717% more productive. • Coal mining firms that conduct R&D experience an increase in sales. • Increase in foreign investment decreases the market share of coal mining firms

Cross-regional Variations in Offshore Outsourcing Choices: Evidence from Firm-level Data

OpenAIRE

TOMIURA Eiichi; ITO Banri; WAKASUGI Ryuhei

2008-01-01

In offshoring, a firm chooses outsourcing to independent suppliers or in-sourcing from their FDI subsidiaries. This paper empirically examines how the factor intensity is related with the firm's offshore make-or-buy decision based on the Japanese direct firm-level data of offshoring across all manufacturing industries. This paper confirms that in-sourcing firms tend to be substantially more capital-intensive than outsourcing firms, even if firm size or industry is controlled for. Among the fi...

Firm Search for External Knowledge

DEFF Research Database (Denmark)

Sofka, Wolfgang; Grimpe, Christoph

2012-01-01

ignored the institutional context that provides or denies access to external knowledge at the country level. Combining institutional and knowledge search theory, we suggest that the market orientation of the institutional environment and the magnitude of institutional change influence when firms begin......The innovation performance of modern firms is increasingly determined by their ability to search and absorb external knowledge. However, after a certain threshold firms "oversearch" their environment and innovation performance declines. In this paper, we argue that prior literature has largely...... to experience the negative performance effects of oversearch. Based on a comprehensive sample of almost 8,000 firms from ten European countries, we find that institutions matter considerably for firms' search activity. Higher market orientation of institutions increases the effectiveness of firms' search...

Technology and Real Estate Brokerage Firm Financial Performance

OpenAIRE

John D. Benjamin; Peter Chinloy; Donald Jud; Daniel T. Winkler

2005-01-01

This study investigates the impact of Internet usage on the financial performance of residential real estate brokerage firms using a database of over 1,700 observations. Factor loadings and a factor score for Internet usage are developed. The results show that Internet use is positively related to revenue and net income, and negatively related to net margin. In a second stage analysis, Internet use is found to be positively associated with franchise affiliation, affiliation with a referral /r...

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

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…

The adoption of information and communication technologies in the desing sector and their impact on firm performance : evidence from the Dutch Design sector

NARCIS (Netherlands)

Bashir, S.; Matzat, U.; Sadowski, B.M.

2014-01-01

This paper analyzes processes and effects of ICT enabled innovation in the Dutch design sector. Although the adoption of Information and Communication Technologies (ICT) is considered as vital in the design sector, little is known about whether and how ICTs affect the firm performance of small and

Impact of green supply chain management practices on firms' performance: an empirical study from the perspective of Pakistan.

Science.gov (United States)

Khan, Syed Abdul Rehman; Qianli, Dong

2017-07-01

This article investigates the impact of five determinants of the green supply chain practices on organizational performance in the context of Pakistan manufacturing firms. A sample of 218 firms was collected from the manufacturing industry. The green supply chain practices were measured through five independent variables including green manufacturing, green purchasing, green information systems, cooperation with customers, and eco-design. By using exploratory factor and simultaneous regression analysis, the results indicate that except green purchasing, rests of the four independent variables have been found statistically significant to predict organizational performance. However, the eco-design of green practices followed by green information systems has revealed the greatest impact on organizational performance. Therefore, the managers of the manufacturing firms should not only implement eco-design in their supply chain but also concentrate on proper monitoring and implementation of green information systems to increase their firms' performance. A main contribution of this research from theoretical side is that it is possible to notice a negative effect of "green purchasing" towards organizational performance particularly in the scenario of Pakistan manufacturing industry. Another valuable result is that green purchasing is an important antecedent of firms economic performance in the US manufacturing firms (Green et al. 2012), although not significantly related to organizational performance in our study. In addition, we also discussed research limitations, areas for future research, and implications for practitioners.

Female Employment and Firm Performance: An empirical analysis using firm panel data (Japanese)

OpenAIRE

YAMAMOTO Isamu

2014-01-01

This paper overviews the situation of female employment in listed Japanese companies using firm-level panel data after the 2000s, and demonstrates whether those companies utilizing female employment earn higher profits. The estimation results of fixed effect models show that a higher female proportion among regular employees significantly raises a company's profit rates, as measured by the return on assets. Particularly, it is shown that those firms with a female proportion of 30% to 40%, as ...

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....

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...

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.

How and when do firms translate slack into better performance?

NARCIS (Netherlands)

Wiersma, E.

2017-01-01

Many studies have tested the impact of organizational slack on performance, and yet little is known about how managers make use of slack, and in what circumstances it is most beneficial. We show that the managers of firms with higher levels of slack tend to overinvest, which will have a negative

Analysis Influence of Managerial Competence, Technical Competence, and Strategic Competence on Firm Performance in Electrical Engineering Company in Bandung

Science.gov (United States)

Wijaya, E. R.; Irianto, D.

2018-03-01

The industry sectors that have an important role in the era of globalization is the electro engineering sector. The era of globalization led to intense competition. One of the negative effects of the intense competition is declining profits. Drop in profits caused many firms reduces their employees without seeking the root cause of declining profits in detail. Whereas, employee is the important resources to maintain competitive advantage. Competitive advantage can be measured by the performance of which is owned by the firm. The firm's performance can be formed of competencies that is unique, rare, irreplaceable, and difficult to imitate within the firm, one of them is the competence of the individual. According to a competency-based approach and the resource- based approach, individual competence that affect the performance of the firm is managerial competence, technical competence, and strategic competence. Questionnaire is built based on the dimensions of the firm's performance, managerial competence, technical competence, and strategic competence, are processed using partial least squares application. The results indicate that managerial competence negatively impact firm’s performance with weak ties. The technical competence and strategic competence positively affect firm’s performance with moderate ties.

Innovation outcomes of South African new technology-based firms: a contribution to the debate on the performance of science park firms

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Kai-Ying Alice Chan

2011-12-01

Full Text Available Science parks are often established to drive regional economic growth, especially in countries with emerging economies. However, mixed findings regarding the performances of science park firms are found in the literature. This study tries to explain these mixed findings by taking a relational approach and exploring (unintended knowledge transfers between new technology-based firms (NTBFs in the emerging South African economy. Moreover, the innovation outcomes of these NTBFs are examined by using a multi-dimensional construct. Results show that science park location plays a significant role in explaining innovative sales, but is insignificant when a different indicator of innovation outcomes is used. Furthermore, only for innovations that are new to the firms, both science park location and intended knowledge transfer via informal business relationships have a positive impact; whereas social relationships have a negative impact.

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

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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.

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

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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.

How Resource Challenges Can Improve Firm Innovation Performance: Identifying Coping Strategies

NARCIS (Netherlands)

Grinstein, A.; Rosenzweig, S.

2016-01-01

Researchers recently suggested that challenges in the form of adversities and constraints can actually promote individuals, teams and firms. However, it remains unclear how such challenges elicit positive innovation performance. Moreover, we still cannot distinguish between the conditions under

Direct and indirect effects of ownership on firm-level environmental performance

Czech Academy of Sciences Publication Activity Database

Earnhart, D.; Lízal, Lubomír

2007-01-01

Roč. 45, č. 4 (2007), s. 66-87 ISSN 0012-8775 Institutional research plan: CEZ:AV0Z70850503 Keywords : ownership structure * firm-level environmental performance * transition economy Subject RIV: AH - Economics Impact factor: 0.413, year: 2007

40 CFR 745.89 - Firm certification.

Science.gov (United States)

2010-07-01

... 40 Protection of Environment 30 2010-07-01 2010-07-01 false Firm certification. 745.89 Section 745... § 745.89 Firm certification. (a) Initial certification. (1) Firms that perform renovations for compensation must apply to EPA for certification to perform renovations or dust sampling. To apply, a firm must...

Analisa Pengaruh Leadership Style terhadap Firm Performance melalui Learning Organization dan Employee Satisfaction pada Perusahaan Sektor Manufaktur di Surabaya

OpenAIRE

Yulia, Yemima

2015-01-01

This study aimed to examine the direct and significant affect of leadership style to learning organization, leadership style to employee's satisfaction, learning organization to firm's performance, employee's satisfaction to firm's performance, leadership style to firm's performance, and learning organization to employee's satisfaction on manufacturing companies in Surabaya. This study used quantitative approach and the data were obtained through the distribution of questionnaire to manufactu...

The financing of innovative firms

OpenAIRE

Hall, Bronwyn H.

2009-01-01

To what extent are new and/or innovative firms fundamentally different from established firms, and therefore require a different form of financing? The theoretical background for this proposition is presented, and the empirical evidence on its importance is reviewed. Owing to the intangible nature of their investment, asymmetric-information and moral-hazard, these firms are more likely to be financed by equity than debt and behave in some cases as though they are cash-constrained, especially ...

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

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.

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.

Do specialists exit the firm outsourcing its R&D?

DEFF Research Database (Denmark)

Wang, Wenjing

Do specialists exit the firm increasingly outsourcing its research and development (R&D) work? Although this question is critical in understanding how R&D outsourcing links to innovation performance, the answer is not yet clear. This paper proposes that the optimal level of firm's internal...... employment of R&D specialists decreases with the deepening of R&D outsourcing but increases with the broadening of R&D outsourcing. These relations can be inferred from previous empirical studies as well as our theoretical analysis, and are supported by the empirical evidence from estimations of correlated...

Labour contracts and performance of Cameroonian firms | Benjamin ...

African Journals Online (AJOL)

The study evaluated employees' productivity in relation to their contract status. It used survey data collected among manufacturing sector firms, having more than 15 employees, in Cameroon between April and May 2006; and information issued by the National Institute of Statistics. Information collected concerned 45 firms ...

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......-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....

Knowledge Capital, Intangible Assets, and Leverage: Evidence from U.S. Agricultural Biotechnology Firms

OpenAIRE

Sporleder, Thomas L.; Moss, Leeann E.

2004-01-01

Agricultural biotechnology firms are high technology companies. Firms in general, and high technology firms in particular, are a set of both assets in place and growth opportunities. This has important implications for managerial decision-making. Knowledge capital motivates exploitation of growth options, which affects firm cash flow. In turn, the level and volatility of firm cash flow influences firm financing decisions. Previous studies suggest that knowledge capital can influence both the ...

A Longitudinal Examination of The Impact of Founding Owner Operator Characteristics on Nascent Venture Performance: Evidence from the Kauffman Firm Survey

Directory of Open Access Journals (Sweden)

Augustine Y. Dzathor

2013-07-01

Full Text Available This study attempts to revive and clarify the debate on ‘the entrepreneurial man’. We longitudinally examined the effects of seven founding-owner-operator characteristics (prior industry experience, level of formal education, age, gender, ethnicity and time committed to business operations on nascent venture performance. Our results indicate that owner work experience, level of education and hours worked in the business have significant effect on nascent venture performance, while inadequate owner reputation and luck of ethnic social capital may negatively affect nascent venture performance. Our findings also suggest that characteristic of the ‘entrepreneurial man’ are dynamic and leans towards a temporal contingency model. Different entrepreneur characteristics seem to assume prominence in firm performance at different times in a nascent venture’s life trajectory.

Aftermarket Performance of Health Care and Biopharmaceutical IPOs: Evidence From ASEAN Countries.

Science.gov (United States)

Komenkul, Kulabutr; Kiranand, Santi

2017-01-01

We examine the evidence from the long-run abnormal returns using data for 76 health care and biopharmaceutical initial public offerings (IPOs) listed in a 29-year period between 1986 and 2014 in the Association of Southeast Asian Nations (ASEAN) countries such as Indonesia, Malaysia, Singapore, Thailand, the Philippines, Vietnam, Myanmar, and Laos. Based on the event-time approach, the 3-year stock returns of the IPOs are investigated using cumulative abnormal return (CAR) and buy-and-hold abnormal return (BHAR). As a robustness check, the calendar-time approach, related to the market model as well as Fama-French and Carhart models, was applied for verifying long-run abnormal returns. We found evidence that the health care IPOs overperform in the long-run, irrespective of the alternative benchmarks and methods. In addition, when we divide our sample into 5 groups by listing countries, our results show that the health care stock prices of the Singaporean firms behaved differently from those of most of the other firms in ASEAN. The Singaporean IPOs are characterized by a worse post-offering performance, whereas the IPOs of Malaysian and Thai health care companies performed better in the long-run.

The Impacts of Different Expansion Modes on Performance of Small Solar Energy Firms: Perspectives of Absorptive Capacity

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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.

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

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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.

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.

KNOWLEDGE CAPITAL, INTANGIBLE ASSETS, AND LEVERAGE: EVIDENCE FROM U.S. AGRICULTURAL BIOTECHNOLOGY FIRMS

OpenAIRE

Sporleder, Thomas L.; Moss, Leeann E.; Nickels, Lori A.

2002-01-01

Firms in general, and high technology firms such as biotechnology firms in particular, are both a set of assets in place and growth opportunities. This has important implications for managerial decision-making. Knowledge capital motivates exploitation of growth options, which affects firm cash flow. In turn, the level and volatility of firm cash flow influences firm financing decisions. Previous studies suggest that knowledge capital can influence both the location and capital structure of fi...

Volatility effect and the role of firm quality factor in returns: Evidence from the Indian stock market

Directory of Open Access Journals (Sweden)

Asheesh Pandey

2017-03-01

Full Text Available In the study, we examine if there are any volatility patterns in stock returns for India. Data are employed for 493 companies that form part of BSE 500 index from March 2000 to November 2013. Unlike previous international evidence, no volatility anomaly is observed. Consistent with theory, high volatility stocks significantly outperform low volatility stocks. Alternative risk models fail to explain the volatility effect. Consistent with prior research, we confirm the role of firm quality factor in explaining these volatility patterns. Cash flow variability seems to be a more appropriate measure of firm quality compared to profitability.

Within- and Cross-Firm Mobility and Earnings Growth

DEFF Research Database (Denmark)

Frederiksen, Anders; Halliday, Timothy; Koch, Alexander Karl

It is widely accepted that promotions within firms and mobility across firms lead to significant earnings progression. Existing research generally examined cross-firm mobility separately from hierarchical advancement. Yet, as our descriptive evidence from Danish panel data shows, how the two type...... growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level....

Board diversity in family firms

OpenAIRE

Menozzi, Anna; Fraquelli, Giovanni; Novara, Jolanda de

2015-01-01

The paper deals with diversity as a key factor to improve the board of directors’ decision process in family firms. The empirical literature about board diversity points at the positive impact of diversity on board functioning and firm performance. The paper uses a statistical diversity index to capture the heterogeneity of board of directors and put it in relation with firm performance, as measured by firm profitability. The empirical analysis is based on a newly collected panel of 327 famil...

The Regional Heterogeneity of Productivity Determinants: Evidence from Ukrainian Firms

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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.

The Effects of Acquisitions on Firm Value, Evidence from Turkey

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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.

An Empirical Study on the Behavior of Monthly Stock Prices of Fortune 500 Firms and S&P Smaller Firms: Evidence and Implications

OpenAIRE

Young H. Kim; Edward L. Davis; Charles T. Moses

2014-01-01

This paper revisits a random walk hypothesis by investigating the behavior of monthly stock prices of 461 Fortune 500 firms over 45 years and 599 S&P smaller firms over 10 years. The Box-Jenkins ARIMA models are applied to time series analysis and stock market forecasting to find the monthly stock price behavior. The research findings show that 309 (67.03%) Fortune 500 firms and 449 (74.96%) S&P smaller firms follow a random walk. The monthly stock prices of Fortune 500 firms and S&P firms ...

Essays on Family Firms

OpenAIRE

Zhou, Haoyong

2012-01-01

The dissertation examines corporate performance and capital structure of family firms, contributing to the limited empirical research on family firms. Family firms are prevalent in national economies all over the world. It is the prevalence that makes family firms receive increasing attentions from academia. The dissertation consists of an introduction and three chapters. Each chapter is an independent paper. The first chapter is a joint work with Professor Morten Bennedsen and...

Performance Effects of Stakeholder Interaction in Emerging Economies: Evidence from Brazil

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Rodrigo Bandeira-de-Mello

2011-07-01

Full Text Available Firm survival in emerging economies is often related to having access to valuable resources that are in stakeholders‟ hands. However, the literature on strategy in emerging economies provides scant information on the efficiency of acquiring stakeholder resources and its effect on firm performance. We investigated the stakeholder interaction effects on performance of domestic firms competing in an emerging market (Wright, Filatotchev, Hoskisson, & Peng, 2005 from a contractual perspective (Williamson, 1985. We argue that interacting stakeholders in a contractual set yield synergistic governance structures that allow firms more efficient access to external resources. Using a sample of 267 firms in Brazil (secondary data, we explored different patterns in stakeholder contracting with community, government, top management, and employees. A three-stage analysis process was devised: cluster analysis, general linear model estimation and verification tests. Results suggest that stakeholder interaction has a positive impact on firm performance. The conjoint effect of government and community contracts was found to yield superior firm performance as they provide a basic structure for contracting with other interacting stakeholders.

The Influence of Green Supply Chain Integration on Firm Performance: A Contingency and Configuration Perspective

Directory of Open Access Journals (Sweden)

Yongtao Song

2017-05-01

Full Text Available This study investigates the impacts of three dimensions of green supply chain integration (GSCI on operational and financial performance, from both a contingency and a configuration perspective. From the contingency perspective, we used hierarchical regression to determine the impacts of individual GSCI dimensions (green internal, customer and supplier integration and their interactions on firm performance. From the configuration perspective, we used cluster analysis to develop patterns of GSCI, which were analyzed in terms of GSCI strength and balance. Analysis of variance was used to examine the relationship between GSCI pattern and firm performance. We used data collected from manufacturing firms in Shanxi, Shandong, Beijing, Guangdong and Jiangsu to test hypotheses. The findings from both the contingency and configuration perspective indicate that GSCI was related to both operational and financial performance. Furthermore, the interaction between green internal integration and green customer integration was positively related to both operational and financial performance, while the interaction between green internal integration and green supplier integration was negatively related to financial performance. The interaction between green customer integration and green supplier integration was positively related to financial performance.

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.

Regional infrastructure and firm investment. Theory and empirical evidence for Italy

OpenAIRE

Aiello, Francesco; Iona, Alfonsina; Leonida, Leone

2009-01-01

We model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large panel of Italian firms. Empirical results show that infrastructure interacts with revenues and costs in shaping firm's profitability of capital and influences its adjustment costs. Finally we find that infrastructure expenditure contributes to reduce the econ...

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. Copyright © 2014

Drivers of international performance of Brazilian technology-based firms

Directory of Open Access Journals (Sweden)

Maria Carolina Serpa Fagundes de Oliveira

2018-01-01

Full Text Available For Technology-Based Firms, international expansion represents an opportunity for growth and value creation. The present study was designed to analyze the role of technology-based companies (TBCs internationalization drivers on international performance. Therefore, a descriptive research was carried out with a quantitative approach performed through a survey. Data collection happened with 53 Brazilian TBCs located in innovation habitats. These data were analyzed by multivariate statistical technique. The results showed that the determinants of the international performance of Brazilian TBCs, can be set by external influencers (localization in innovation habitats, integration into global productive chains, partnerships and strategic alliances for innovation and government policies and internal influencers (innovation capability, international market orientation and international marketing skills.

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. 

Firm Leverage and the Financial Crisis

OpenAIRE

Fatih Altunok; Arif Oduncu

2014-01-01

The firm growth dynamics is an important topic since the growth performance of firms is the main source of the economic growth in countries. Generally, crises produce a sharp decline in firms’ growth and this leads to a decline in both the level of employment and the income of households. This paper focuses on the role of firm leverage on the growth performance of the firm during the global financial crisis. We investigate whether the firms that experienced a large leverage increase before th...

Entry Mode of Firms in an Emerging Economy: Evidence from Malaysia

OpenAIRE

Yasmeen, Kausar; Viswanathan, Kuperan

2016-01-01

The dynamics of the global competition patterns and world economy are encouraging construction firms to expand into emerging economies. Entry modes and its predictors have been the subjects of interest in international market strategic management research which is nonetheless lacking in the construction firms. This paper seeks to identify the entry modes preferred by construction firms in Malaysia, on whether they choose equity modes, non-equity modes or both modes for their international pro...

Internal Capital Market Controls and Financial Performance in Multidivisional Firms.

OpenAIRE

Hill, Charles W L

1988-01-01

It is proposed that, within the population of M-form firms, the control systems necessary to realize economic benefits from interrelationships between subunits o f a firm are incompatible with the systems necessary to realize benef its from an M-form type internal capital market. This hypothesis is t ested on 156 large U.K. firms. Questionnaire data are used to classif y the firms according to their internal control characteristics. The findings provide tentative support for the hypothesis. C...

Growth, Structure and Firm Dynamics in Grain Markets: The Case of ...

African Journals Online (AJOL)

Optiplex 7010 Pro

In this paper we consider the microeconomic evidence on the determinants of firm performance in Ethiopia, with a focus on grain traders. We analyse both internal and external factors, and the relative impacts of these factors on the performance of grain traders. Different economic indicators seem to suggest that grain ...

Essays on innovation, productivity and knowledge flows: evidence for Spanish firms

OpenAIRE

Goya Carrillo, Esther

2015-01-01

This dissertation aims to further understand the relationship between innovation and productivity in Spain taking into account the impact of knowledge flows. To this end, Spanish firms from both manufacturing and services sectors are considered. This thesis consists of three empirical studies. The first study analyses the impact that R&D expenditures and intra- and inter-industry externalities have on Spanish firms’ performance considering the firm’s technology level. A Cobb-Douglas produ...

What is the Relation (if any) Between a Firm's Corporate Governance Arrangements and its Financial Performance?

OpenAIRE

Wessels, Roberto E.; Wansbeek, Tom J.

2014-01-01

This paper presents estimates from a latent variables model of the relation between corporate governance and financial performance. We use data on large US corporations to estimate the correlation, conditional on the firms' investment opportunity set, between governance and performance. We find that this correlation is statistically speaking zero. This result is consistent with the equilibrium view (Demsetz, 1983) in which firms optimize corporate governance arrangements subject to the constr...

Corporate social responsibility disclosure—choices of report and its determinants: Empirical evidence from firms listed on the Stock Exchange of Thailand

Directory of Open Access Journals (Sweden)

Suneerat Wuttichindanon

2017-05-01

Full Text Available This research investigated the report choices used for corporate social responsibility (CSR disclosure and the determinants of CSR disclosure of firms listed on the Stock Exchange of Thailand (SET. Since 2014, firms listed on the SET have been required to disclose CSR in either an annual registration statement or a separate report called a sustainability report. It was, therefore, noteworthy to examine the choices these firms chose in the first year of disclosure. The independent variables were hypothesized under three dimensions—shareholder power (government ownership, corporate visibility (firm size and age, and economic performance (profitability and leverage. The results revealed that government-owned firms or large firms are more likely to prefer the sustainability report. In addition, content analysis of CSR disclosure was conducted in three industries: resources, technology and industrial products. Nine CSR components with 43 indices were developed and used to score the disclosure of firms in the three industries. The three highest CSR disclosure items found were declaring concerns of human rights and equality, having a policy of anti-corruption, and generous giving. Moreover, this study found a positive relationship between the number of CSR disclosure items and government ownership; however, neither firm age nor economic performance in the year before was related to the CSR disclosure. These research findings support the proposition of the stakeholder theory affirming that firms carry out CSR activities because of their stakeholders' influence, and regardless of economic performance. In Thailand, stakeholders' influence and corporate visibility are significant determinants of the CSR disclosure.

Do Investors Forecast Fat Firms? Evidence from the Gold Mining Industry

OpenAIRE

Borenstein, Severin; Farrell, Joseph

2006-01-01

JEL CODES: D21, G3, L2, L72 KEYWORDS: profit function, free cash flow, gold mining, x-efficiency, rent seeking, fat ABSTRACT: Conventional economic theory assumes that firms always minimize costs given the output they produce. News articles and interviews with executives, however, indicate that firms from time to time engage in cost-cutting exercises. One popular belief is that firms cut costs when they are in economic distress, and grow fat when they are relatively wealthy....

Evidence on the Relationship between Firm-Based Screening and the Returns to Education

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Brown, Sarah; Sessions, John G.

2006-01-01

We explore the relationship between the signalling role of education and direct screening measures adopted by employers using a matched employee-employer data set drawn from the 1998 "Workplace Employee Relations Survey" for Great Britain. We identify which firms use personality/attitude and/or performance/competency tests during the…

IFRS Adoption, Firm Traits and Audit Timeliness: Evidence from Nigeria

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Musa Inuwa Fodio

2015-06-01

Full Text Available Audit timeliness is an important ingredient of quality financial reporting. Stale information might only benefit little to stakeholders in their decision making process. With the recent adoption of the International Financial Reporting Standards in Nigeria, the work of the auditor has seemingly become complicated. The question then emerges, if such adoption affects the timeliness of audit reports. This study empirically investigates the impact of IFRS adoption and other associated explanatory variables on audit timeliness in Nigerian deposit money banks for the period 2010 to 2013. Panel regression analysis reveals a positive significant impact of IFRS adoption on audit timeliness. Results also indicate that firm age, firm size and auditor firm type are significant predictors of audit timeliness in Nigeria deposit money banks. The study recommends that auditor firms should make stringent efforts to acclimatize with the complexities of the IFRS transition process so as to reduce audit report delays. Also reporting agencies should come up with regulations, deadlines and benchmarks for issuance of independent audit reports.

Industry shutdown rates and permanent layoffs: evidence from firm-worker matched data

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Kim P. Huynh

2017-06-01

Full Text Available Abstract Firm shutdown creates a turbulent situation for workers as it leads directly to layoffs for its workers. An additional consideration is whether a firm’s shutdown within an industry creates turbulence for workers at other continuing firms. Using data drawn from the Longitudinal Worker File, a Canadian firm-worker matched employment database, we investigate the impact of industry shutdown rates on workers at continuing firm. This paper exploits variation in shutdown rates across industries and within an industry over time to explain the rate of permanent layoffs and the growth of workers’ earnings. We find an increase in industry shutdown rates increases the probability of permanent layoffs and decreases earnings growth for workers at continuing firms.

The dual role of local sites in assisting firms with developing technological capabilities: Evidence from China

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Wang, Yuandi; Zhou, Zhao

2013-01-01

.g., knowledge, human capital) and the role of motivating multinational companies (MNCs) to upgrade their local operations in developing countries so as to perform more innovation activities. Few articles are presented that examine the role of local sites in the learning and technological-capability building......, and the collaborations with local industrial community firms positively influence the relationship between firms' international inward technology licensing and technological capabilities. (C) 2012 Elsevier Ltd. All rights reserved....

How Third-Party CSR Evaluation Matters: Keeping Up with Rivals in CSR Performance Ratings of Korean Firms, 2011–2015

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Eunjung Hyun

2017-11-01

Full Text Available Does corporate social responsibility (CSR evaluation by third-party entities (i.e., external agencies, including civic organizations affect the CSR performance of firms? This article explores the question of whether and how third-party CSR ratings change the subsequent CSR behavior and hence performance of rated firms. Combining insights from the research on ratings/rankings and a behavioral theory of firms, we hypothesize that firms with large negative CSR rating gaps—i.e., CSR ratings below the industry average—are more prone to improving their subsequent CSR behavior, and hence performance ratings, than those with small negative gaps, because of the desire to avoid being viewed as CSR laggards relative to their industry rivals. As a result, efforts are directed at enhancing CSR performance. Empirical support for this conjecture is found through random effect regression analyses of publicly listed firms in Korea that were rated by the KEJI (Korean Economic Justice Institute during 2011–2015 with respect to multiple dimensions of CSR. Further results show that the positive effect of negative CSR rating gaps on subsequent CSR ratings appears only in the firms without well-established reputations, suggesting the possibility that firms with weak reputations have stronger incentives to keep up with other industry incumbents in CSR performance ratings than their counterparts.

CORPORATE PHILANTHROPIC DISASTER RESPONSE AND POST PERFORMANCE: EVIDENCE FROM CHINA

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Xiaodong Qiu

2013-01-01

This paper examines whether the decision and amount of firm charitable giving in response to catastrophic events are related to firm post-performance, and whether firm ownership type moderates this relationship. Using data on Chinese firms’ philanthropic response to the 2008 Sichuan earthquake, we find that firm future sales growth and ROA change are positively associated with both the probability and the amount of corporate giving. The results also indicate that this positive philanthropic...

The Dark Side of Wars for Talent and Layoffs: Evidence from Korean Firms †

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Hee-jung Cho

2018-04-01

Full Text Available In this study, we examined the effects of layoffs and wars for talent on firms’ performance. The simultaneous use of layoffs and “war-for-talent” practices has become part of the management strategy for adjusting workforce competencies. We suggest that war-for-talent practices decrease organizational performance when laying people off at the same time. Moreover, we argue that investment in employees’ skill development during the same period as layoffs and a war for talent can enhance organizational sustainability in increasing employee commitment, trust and organizational flexibility. Using a longitudinal survey conducted at over 653 Korean firms by a government-sponsored research institution, the results show that war-for-talent practices do not have a significant impact on firms’ performance. Moreover, our findings indicate a negative relationship between war-for-talent practices and financial performance when conducting layoffs and, as expected, a positive effect of the interaction between a war for talent and layoffs on turnover. Lastly, the results indicate a negative effect on organizational performance in firms pursuing a war for talent is mitigated when investments in employee development are continued during periods of layoffs.

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

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Chimwemwe Chipeta