Journal articles on the topic 'Firm'
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1
PETERS, Dr EMEKA, OBIORA, Dr OKEKE, FRANKLINE C.S.A, Dr DURUZOR, IFEOMA GLORIA, and Dr ADAMA A. LINUS. "HUMAN CAPITAL EFFICIENCY AND FIRM VALUE USING PANEL REGRESSION." International Journal Of Multidisciplinary Research And Studies 05, no. 06 (June 24, 2022): 34–58. http://dx.doi.org/10.33826/ijmras/v05i06.4.
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This study evaluated human capital efficiency and firm value of quoted Non-financial firms in Nigeria. Its core objective is to evaluate the effect human capital efficiency has on firm values. The study employed secondary data and panel regression models which were subjected to descriptive Statistics, Correlation Matrix, and Hausman test for interpretations. Data was collected from (76) quoted Non-financial firms from the year (2011-2020). The study was anchored in Resource-based theory. Findings hold that there is a negative influence of capital employed efficiency as it has positive but not significant influence, firm size (FISZ) has negative and significant influence and firm age (FIRA) has positive and non-significant influence on firm value of non-financial firms in Nigeria. Concluding, only human capital employed efficiency and firm age influenced firm value positively and thus the study recommends that the human capital component of intellectual capital should be trained and educated regularly to build capacity. Firms’ specific growth and sustainability policy should be strongly placed using corporate governance code and other enhanced internal innovative processes to ensure that their existence is not affected by age.
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Akwuobi, Bridget Udekwesili. "Intellectual Capital Potency and Firm Value in Nigeria; Evidence from Listed Nonfinancial Firms in Nigeria." Journal of Accounting and Financial Management 8, no. 7 (August 29, 2023): 192–207. http://dx.doi.org/10.56201/jafm.v8.no7.2022.pg192.207.
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The objective of this paper is to investigate the influence of intellectual capital potency on firm value of non-financial firms in Nigeria. This study uses analysis technique to measure ICD. Secondary data were obtained from the Audited account reports of selected non financial firms and Nigerian exchange factbook for the period 2011-2020.This study selected 76 firms out of 107 quoted firms in non-financial sector of Nigerian economy using simple purposive sampling method. The 76 firms were analyzed using regression analysis. The results shows that there is negative influence of capital employed efficiency on firm value while human capital employed efficiency have positive but no significant influence on firm value. The moderating variables of firm size (FISZ) have negative and significant influence, while firm age (FIRA) has positive and non significant influence on firm value of non- financial firms in Nigeria. The findings enhanced the knowledge base of intellectual capital in emerging economies such as Nigeria. Based on the findings this study recommended that, the human capital component of intellectual capital should be trained and educated regularly, innovated, nurture capacity, creativity, know-how and previous experience, teamwork capacity, employee flexibility, tolerance for ambiguity, motivated, satisfied, so as to enhance the usefulness of its output to total input. Also firm specific growth and sustainability policy should strongly placed using corporate governance code and other enhanced internal structural innovative processed to ensure that the firm does not extinct.
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Hu, Chenguang, Kyung Hwan Yun, Ziqi Su, and Chang Xi. "Effective Crisis Management during Adversity: Organizing Resilience Capabilities of Firms and Sustainable Performance during COVID-19." Sustainability 14, no. 20 (October 21, 2022): 13664. http://dx.doi.org/10.3390/su142013664.
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Drawing on crisis management and organizational resilience literature, this study adopts a firm’s capability-based perspective of organizational resilience to examine how different sets of firm-based resilient capabilities a firm has developed can help a firm achieve sustainable firm performance during a crisis. We took a configurational approach and applied the fsQCA method to examine how various combinations of a firm’s financial, cognitive, and behavioral capabilities as causal conditions can affect firm financial performance. For the empirical analysis, 21 listed Chinese film and television firms were selected. We collected information on financial capability from 2018 to 2020, and on cognitive and behavioral capabilities and firm size in 2020. This study obtains six configurations or paths that lead to the improved performance. Overall, the findings indicate that if a large firm has a low level of financial capability, it needs to leverage its cognitive capability instead of behavioral capability. A small firm with high financial capability needs to quickly leverage its cognitive capability but can use less behavioral capability. On the other hand, small firms with low financial capability need to utilize its behavioral capability to take quicker actions. With comprehensive analysis and multiple-perspective comparison of configurations, the study proposes various response strategic suggestions for firms with different sizes during the COVID-19 epidemic in China.
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Rau, Sabine B., Viktoria Schneider-Siebke, and Christina Günther. "Family Firm Values Explaining Family Firm Heterogeneity." Family Business Review 32, no. 2 (May 21, 2019): 195–215. http://dx.doi.org/10.1177/0894486519846670.
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Family firm heterogeneity results in reduced predictability of firm behavior as well as inconsistent results regarding research on family firm behavior. We argue that family firm heterogeneity is based, among other factors, on values heterogeneity. In order to lay the ground for future research, we develop a taxonomy of family firms based on values. Using values theory, we identify six value categories, resulting in five family firm types with five distinct value profiles. Second, we posit family firm values profiles are distinct to the group of family firms as nonfamily firms do not display similar value profiles.
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Min, Heechul. "Importing and Firm Productivity: Evidence from Korean Manufacturing Firms." Journal of Korea Trade 26, no. 3 (May 30, 2022): 102–16. http://dx.doi.org/10.35611/jkt.2022.26.3.102.
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Purpose - This paper empirically investigates the relationship between firm productivity and importing intermediate inputs in the Korean manufacturing sector.
Design/methodology - This paper tests the two related hypotheses on the relationship between importing and productivity for a sample of Korean manufacturing firms. We test the self-selection hypothesis by comparing pre-entry levels of productivity between importers and non-importers. We test the learning-by-importing hypothesis by employing propensity score matching with differencein- differences approach.
Findings - Future importers are more productive than future non-importers years before they start to import, which supports the self-selection hypothesis. In contrast, there is no strong evidence for learning-by-importing.
Originality/value - This paper is the first study to explore the relationship between importing and firm-level productivity for Korean firms. The results have an important implication on trade policies to lower or raise trade barriers in imported inputs.
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Altuwaijri, Basmah, and Lakshmi Kalyanaraman. "Top management team pay, firm size and performance relationship in Saudi Arabian firms." Corporate Board role duties and composition 13, no. 1 (2017): 21–27. http://dx.doi.org/10.22495/cbv13i1p2.
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We study the relationship of top management team’s (TMT) pay with firm performance with a sample of 80 firms listed on Saudi stock market. We find that firm performance and firm size emerge as significant variables in explaining TMT compensation. This is in line with many of the earlier studies which proxy the firm performance as the ability of the firm to pay higher compensation and firm size as a proxy for complexity of operations. We find that large firms and firms with better financial performance pay higher compensation to their TMT. When we group the firms into large firms and small firms, we find that firm size and firm performance are significant variables that influence TMT pay only in case of large firms. Our results show that firm size does not influence TMT pay and only firm performance impacts TMT pay.
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Raja, J., and A. Suresh Kumar. "Influence of Age and Size on Firm Performance-A Comparative Study of Manufacturing and Service Sectors." Asia Pacific Business Review 1, no. 2 (July 2005): 91–103. http://dx.doi.org/10.1177/097324700500100211.
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This paper addresses the issue of firm age and asset (Size) impact on firm performance. The main purpose of this paper is to find, whether firms age and asset can behave in similar fashion across industries particularly in manufacturing and service industries. The results show that manufacturing firms are older and slightly better profitable than services firms. The age of the firm is significant but negatively related to services firms The firm age does not produce any result for many facturing firms. Interestiingly, the total asset of the manufacturing firms’ is significantly related to firm performance, but it produces negative relationship between firm asset and firm perfprmance. The firm asset does not yield any results for service firms. Finally, it is concluded that the age and asset of the firm behaves differntly according to the industry charcterstics.
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Agyemang-Mintah, Peter. "Remuneration Committee governance and firm performance in UK financial firms." Investment Management and Financial Innovations 13, no. 1 (April 8, 2016): 176–90. http://dx.doi.org/10.21511/imfi.13(1-1).2016.05.
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This paper investigates the association between the Remuneration Committee (RC) on firm performance. The research uses a data span of 63 financial institutions for a period of 12 years. Ordinary Least Square (OLS) and Random Effects (RE) regression estimations are used. The ascertained empirical results indicate that the establishment of remuneration committee by the board is positively correlated to its performance, as measured by its Return on Assets (ROA), and is also statistically significant on the Market Value (MV) of the firm. Subsequent tests conducted show that presence of an RC had a positive and statistically significant correlation during the pre/post global financial crisis on the ROA of the firm. The MV measure during the pre-crisis indicates a positive and statistically significant impact, but only positive during the post-crisis. The findings are robust across econometric models that control for different types of endogeneity. The outcome indicates that the establishment of an RC by the board assisted in achieving a positive impact on the profitability of UK financial institutions
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Permadi, I. Made Hengki. "Pengaturan Mengenai Pendaftaran Pendirian Firma Pada Sistem Administrasi Badan Usaha." Acta Comitas 4, no. 3 (December 31, 2019): 475. http://dx.doi.org/10.24843/ac.2019.v04.i03.p12.
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The process or procedure for establishing a firm is regulated in Article 22 and Article 23 of the Commercial Law Code (hereinafter referred to as KUHD). In this provision, it is stipulated that the firm must be established with an authentic deed and registered with the Registrar of the District Court where the firm was established. The regulations in the KUHD are not in line with the Minister of Law and Human Rights Regulation Number 17 Year 2018 regarding the Registration of the Military Alliance, the Fima Alliance and the Civil Alliance which indicates that the registration of the firm is carried out in the Legal Entity Administration System (hereinafter referred to as SABU). it appears that there is a norm conflict between the two rules. This study aims to determine the arrangements in registering the Firm and the legal consequences of not registering the Firm in the Business Entity Administration System (SABU). This research is a normative legal research. In research using a statutory and conceptual approach. Using primary and secondary legal materials. The results showed that based on the principle of Lex Superiori derogate Legi Inferiori, based on the hierarchy of statutory regulations, the KUHD which is equivalent to the Law is stronger than the Regulation of the Minister of Law and Human Rights Number 17 of 2018 concerning Registration of Komanditer Alliance, Firm Alliance and Civil Alliance whose position is under Government Regulations and Presidential Regulations, because the Acts are higher than Government Regulations and Presidential Regulations. The legal consequence of not registering a firm with SABU is that the name of the firm can be used first by other firms so it must change the name of the firm concerned with another name because in the SABU system there is a registration of the firm's alliance name. If there is a partnership with another firm that registers the name of the firm first, then the name of the same firm cannot be registered again and the firm is deemed invalid.
Proses atau tata cara pendirian firma diatur dalam Pasal 22 dan Pasal 23 Kitab Undang-Undang Hukum Dagang (yang selanjutnya disebut KUHD). Dalam ketentuan tersebuti menentukan bahwa firma harus didirikan dengan akta otentik dan didaftarkan pada Kepaniteraan Pengadilan Negeri dimana firma tersebut didirikan. Peraturan dalam KUHD tersebut tidak sejalan dengan Peraturan Menteri Hukum dan Hak Asasi Manusia Nomor 17 Tahun 2018 tentang Pendaftaran Persekutuan Komanditer, Persekutuan Fima dan Persekutuan Perdata yang mengisyaratkan bahwa pendaftaran firma dilakukan pada Sistem Administrasi Badan Hukum (yang selanjutnya disebut SABU). terlihat bahwa adanya konflik norma diantara kedua aturan itu. Penelitian ini bertujuan untuk mengetahui pengaturan dalam pendaftaran Firma dan akibat hukum apabila tidak mendaftarkan Firma pada Sistem Administrasi Badan Usaha (SABU). Penelitian ini merupakan penelitian hukum normatif. Dalam penelitian menggunakan pendekatan perundang-undangan dan konseptual. Menggunakan bahan hukum primer dan sekunder. Hasil penelitian menunjukkan bahwa berdasarkan asas Lex Superiori derogate Legi Inferiori maka berdasarkan hirarki peraturan perundang-undangan, KUHD yang setara dengan Undang-Undang lebih kuat dibanding Peraturan Menteri Hukum dan Hak Asasi Manusia Nomor 17 Tahun 2018 tentang Pendaftaran Persekutuan Komanditer, Persekutuan Firma dan Persekutuan Perdata yang kedudukannya dibawah Peraturan Pemerintah dan Peraturan Presiden, karena Undang-Undang kedudukannya lebih tinggi dari Peraturan Pemerintah dan Peraturan Presiden. Akibat hukum dari tidak didaftarkannya firma pada SABU, yaitu nama firma dapat dipakai terlebih dahulu oleh firma lainnya sehingga harus mengganti nama firma yang bersangkutan dengan nama yang lain karena di dalam sistem SABU terdapat pendaftaran nama persekutuan firma. Jika ada persekutuan firma lain yang mendaftarkan nama firmanya terlebih dahulu maka nama firma yang sama tidak akan bisa didaftarkan kembali dan firma tersebut dianggap tidak sah pendiriannya.
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Haltiwanger, John C., Henry R. Hyatt, Lisa B. Kahn, and Erika McEntarfer. "Cyclical Job Ladders by Firm Size and Firm Wage." American Economic Journal: Macroeconomics 10, no. 2 (April 1, 2018): 52–85. http://dx.doi.org/10.1257/mac.20150245.
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We study whether workers progress up firm wage and size job ladders, and the cyclicality of this movement. Search theory predicts that workers should flow toward larger, higher paying firms. However, we see little evidence of a firm size ladder, partly because small, young firms poach workers from all other businesses. In contrast, we find strong evidence of a firm wage ladder that is highly procyclical. During the Great Recession, this firm wage ladder collapsed, with net worker reallocation to higher wage firms falling to zero. The earnings consequences from this lack of upward progression are sizable. (JEL D22, E24, E32, J31, J63, J64, L25)
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Fan, Xiaojun, Chang Chen, and Leping Yuan. "Centralization and Firm Performance: New Evidence on the Role of Firm Size." Wireless Communications and Mobile Computing 2022 (March 2, 2022): 1–17. http://dx.doi.org/10.1155/2022/2233484.
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Centralization has been regarded as an important factor in corporate governance in the academic and business communities. Although several studies have examined the relationship between centralization and firm performance, the conclusions remain mixed. We extend existing research by introducing firm size as a threshold variable into our model to explicate the complicated effects of centralization on firm performance. We found that a high degree of centralization can promote firm performance significantly in small- and medium-scale firms while inhibiting firm performance in large-scale firms. Using heterogeneity analysis, we found that centralization has a more significant positive impact on firm performance in private firms, family firms, and manufacturing firms than others. Furthermore, we explored the factors influencing the nexus between centralization and firm performance and found that centralization can improve the level of cost allocation management and technology innovation, driving firm performance but possibly resulting in overinvestment, which is harmful to firm performance. Our research provides guidance for companies to establish a decision-making power allocation that meets their scale-appropriate development needs.
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K Ghani, Erlane, Nur Afifah Mohd Azemi, and Evita Puspitasari. "THE EFFECT OF FIRM CHARACTERISTICS ON EARNINGS MANAGEMENT PRACTICES AMONG MALAYSIAN PUBLIC LISTED COMPANIES IN TECHNOLOGY INDUSTRY." Management and Accounting Review (MAR) 18, no. 1 (April 30, 2019): 41. http://dx.doi.org/10.24191/mar.v18i1.686.
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This study examines the effect of firm characteristics on earnings management practices among technology-based public listed firms in Malaysia. Specifically, this study examines the effect of firm size, firm profitability and firm leverage on earnings management practices. Using 83 technology-based firms listed in FTSE Bursa Malaysia KLCI Index for 2014 and 2015, this study shows a statistically positive relationship between firm size and earnings management practices. Such finding indicates larger firms tend to use earnings management incentives to enhance their performance. However, firm profitability and firm leverage have no significant relationship to the occurrences of earnings management practices. This study provides evidence that firm size influences the occurrences of earnings management among Malaysian public listed firms in the technology industry.
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Nhung Nguyen, Thi Hong. "Evaluating the Heterogeneous Effect of Firm Risk on Firm Value." SEISENSE Journal of Management 3, no. 5 (September 4, 2020): 24–32. http://dx.doi.org/10.33215/sjom.v3i5.430.
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Purpose- This paper aims to investigate the effect of firm risk on the firm value to see how the firm value is changing when the risk level is changed. Our result indicates that a higher level of risk can reduce firm value. Design/Methodology- We apply a Bayesian causal technique for a sample data set of US public firms. The causal approach helps us to focus on the reliable and unbiased results instead of the association-based findings. Findings- The results show a negative effect of risk on the firms’ value for the sample data. However, we investigate the potential effect of the risk across the distribution of the firm value. We witness the more substantial effect of risk on firms with a higher value. Practical Implications- Helps firms to evaluate their risk and its effect, so they can adjust their decisions and take actions to reduce the undesired effects of firm risk.
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Butt, Muhammad Saqib Bashir, and Hasniza Mohd Taib. "Economic Forces and Firm Stock Returns Volatility: Role of Firm Features." Pakistan Journal of Humanities and Social Sciences 7, no. 3 (September 30, 2019): 281–302. http://dx.doi.org/10.52131/pjhss.2019.0703.0087.
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Stock market volatility is always been a major concern for investors, regulators, policy makers and academicians. Unfortunately, firm level volatility has not been given the due attention. The studies dealing with the firm level volatility are scarce. Moreover, a common assumption of homogenous nature of firms is used in the aggregate stock market analysis, sectoral level analysis and even in a firm level analysis. This homogenous assumption was objected by several researchers and suggested that firms are heterogeneous even in a narrowly defined sector. Furthermore, firms are different from each other because of possessing different characteristics. Based on that firm’s response to macroeconomic changes would not be the same. Hence, the hypothesis testing ignoring this fact could be spurious. This study proposes five categories in which firms can be classified, such as firm age, firm size, firm nature of business, firm trading nature and the sectoral location of the firm. This study proposes to examine the linkages between the macro economic factors and the firm level stock returns volatility considering the given firm features. It is expected from the empirical testing that the macroeconomic factors effect firm stock returns volatility belonging to different firm features differently, both in terms of magnitude and sign.
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Mohamad, Shafi, Abdurrahman Adamu Pantamee, Ooi Chee Keong, and Kwong Wing Chong Garrett. "Corporate Governance and Firm Performance: Evidence from Listed Malaysian Firms." International Journal of Psychosocial Rehabilitation 24, no. 02 (February 13, 2020): 3668–78. http://dx.doi.org/10.37200/ijpr/v24i2/pr200690.
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Bano, Saira, Muhammad Asif, and Muhammad Aamir. "EXPLORING THE FIRM LEVEL TRANSPARENCY AND ITS IMPACT ON FIRM VALUE." December 2022 38, no. 04 (December 31, 2022): 437–47. http://dx.doi.org/10.51380/gujr-38-04-05.
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Increased transparency encourages management to perform efficiently which leads to increase profitability of Firm. Firms in Pakistan are exposed to political risk but they are adopting strategies for the risk management and performing well. The objective of this study is to examine the relationship between firm level transparency and firm value of non-financial firms in Pakistan. Sixty registered firms in KSE 100 Index of Pakistan were considered for analysis for the period 2014-2018. The researchers had developed an index for measuring the firm’s transparency (disclosure). Regression analysis technique was used to find important relationships between the variables. The results showed higher firm level transparency leads to accelerate firm financial value. The results provide singifcnat information about the issues under study. On the other hand higher level of transparency on firm level decreases firm value in Pakistani market. While inverse relationship was thus found amid political risk, transparency and firm financial value. This study had unveiled fact that mostly Pakistani firms are undervalued, riskier and slow growing which disclose more to combat with negative assessments in market from participants.
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Rauf, Rashid, Abdul Rashid, Muhammad Imran, and Muhammad Abdullah. "Volatility and Firm Growth: Do Firm Size and Age Matter?" Journal of Applied Economics and Business Studies 7, no. 3 (September 30, 2023): 1–26. http://dx.doi.org/10.34260/jaebs.731.
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The impact of different types of volatility on the growth of Pakistani-listed non-financial firms is examined by using annual unbalanced panel data over the period 1988–2017. The differential effects of volatility conditional on firm size and age are also explored. The results indicate that the influence of firm volatility on firm growth is positive for small firms and negative for medium, large, young, and mature firms. The impact of market volatility is positive (negative) for small, young, and mature (large) firms. Industrial volatility has a negative impact on mature firms’ growth, but the impact on young, small, medium, and large firms is positive. Finally, the results indicate that the impact of macroeconomic volatility is positive for small firms but negative for large, young, and mature firms.
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Wei, Peihwang, Li Xu, and Bei Zeng. "Corporate hedging, firm focus and firm size: the case of REITs." Managerial Finance 43, no. 3 (March 13, 2017): 313–30. http://dx.doi.org/10.1108/mf-05-2016-0134.
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Purpose The purpose of this paper is to investigate the substitutability of corporate hedging and diversification in the real estate investment trusts (REITs) industry. The authors hypothesize that, relative to diversified firms, focused firms are more likely to be associated with hedging. The role of firm size is also analyzed. Design/methodology/approach The logistic regression approach is utilized to analyze the probability of hedging and the panel regression approach is used to examine the amount of hedging. Findings The authors find that, relative to diversified firms, firms focused on a single property type are more likely to engage in hedging. However, this finding is significant only for smaller firms, which implies a non-linear relation between hedging and firm size. The evidence is not as strong when firm focus is measured by geographic concentration. In terms of hedging amount, smaller firms’ average hedge ratio is greater than that of larger firms. For either small or large firms group, hedging amounts increase with firm focus measured by either property or geographic concentration and increase with firm sizes. Research limitations/implications The results imply that, relative to diversified REITs, REITs focused on a single property type are more likely to engage in hedging. However, this finding is significant only for smaller firms, which implies a non-linear relation between hedging and firm size. The evidence is not as strong when firm focus is measured by geographic concentration, suggesting that geographic concentration is perceived to be less risky than property type concentration. For either small or large firms group, hedging amounts increase with firm focus measured by either property or geographic concentration and increase with firm sizes, which implies that hedging amount does not depend on firm size. The sample period is limited to the years 2010 to 2013 because some data needs to be manually collected. Practical implications The results imply that REITs consider both property diversification and hedging in managing their risk. Originality/value The research represents an early attempt to investigate the relation between corporate hedging and diversification. The investigation into the REIT industry has several advantages such as a lower likelihood of using derivatives for speculation.
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Song, Xiaoxiao. "How Are Foreign Firms Valued in U.S. Markets? Evidence from Firm and Country Characteristics." Accounting and Finance Research 8, no. 4 (October 12, 2019): 101. http://dx.doi.org/10.5430/afr.v8n4p101.
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This paper investigates the determinants of foreign firms’ value in U.S. markets by examining both firm and country characteristics. Prior studies have agreed on foreign firms’ value premium when they cross-list stocks in U.S. exchanges. However, little research has pursued evidence regarding how these foreign firms are valued after the cross-listing. I attempt to answer this question by comparing the determinants of firm value for both foreign cross-listing firms and U.S. domestic firms. The results from regression models show that, although foreign firms share similar firm-level determinants with U.S. firms (firm size, firm leverage, and firm growth), they are on average undervalued by U.S. investors. Furthermore, the home countries’ characteristics, such as the rule of law, play an important role in foreign firms’ market value. In fact, the undervaluation is only observed in foreign firms from the weak rule of law countries, but not from strong rule of law countries. Overall, foreign firms’ market value is determined by both firm-level and country-level characteristics after they cross-list in the U.S. markets.
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Basioudis, Ilias G., Beatriz Cuellar-Fernández, and Javier Garcia-Lacalle. "Implementing mandatory audit firm rotation: Effects on audit and non-audit fees." Revista de Contabilidad 27, no. 1 (January 1, 2024): 174–92. http://dx.doi.org/10.6018/rcsar.491481.
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The 2014 reform of the European Union (EU) regulation on auditing includes mandatory audit firm rotation and a significant limitation of the provision of non-audit services by the audit firm to their existing clients. This paper analyses the changes in audit fees, and non-audit fees, as well as in their proportion, when there is a switch of audit firms, before and after the new regulation. The analysis is carried out for the Spanish-listed companies from 2011 to 2018 using two types of analyses, descriptive/comparative and multivariate, panel data, and regressions. As expected, the new EU regulation has resulted in a significant increase in audit firm switches. The results show that, when there is a change of audit firm, the incoming firm offers a significant discount to the new client with the outgoing firm. This is the case before and after the reform, and for both voluntary and mandatory switches after the reform. In addition, the reform has led to a reduction of non-audit fees, which is especially evident after a voluntary audit firm switch. We conclude that audit firms seem to be willing to take on the additional cost of auditing a new company to gain clients. La reforma de la normativa de la Unión Europea sobre auditoria de 2014 incluye la rotación obligatoria de la firma de auditoría y una importante limitación de trabajos distintos de auditoria por parte del auditor. Este trabajo analiza los cambios en los honorarios de auditoría, honorarios por otros servicios, así como la proporción entre ambos, cuando se produce un cambio de firma de auditoría, antes y tras la nueva normativa europea. El análisis se realiza para las entidades cotizadas en España durante los años 2011 a 2018 mediante de dos tipos de análisis, descriptivo/estadísticos y de regresiones de datos panel. La nueva regulación ha supuesto un aumento en los cambios de firmas de auditoría. Los resultados muestran que, cuando hay un cambio de firma de auditoría, la firma entrante ofrece un descuento significativo al nuevo cliente en comparación con la firma saliente. Esto es así antes y después de la reforma y, en este último caso, tanto para cambios voluntarios como obligatorios tras la misma. La reforma ha supuesto una reducción de los honorarios por servicios distintos de auditoría, que se manifiesta especialmente después de un cambio voluntario de firma de auditoría tras la reforma. Las firmas de auditoría parecen dispuestas a asumir el coste adicional de auditar a una nueva empresa con el objetivo de ganar clientes.
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LONG, TRINH QUANG, PETER JOHN MORGAN, and MINH BINH TRAN. "HETEROGENEOUS EFFECTS OF CREDIT ACCESS ON FORMAL AND INFORMAL FIRM GROWTH: EMPIRICAL EVIDENCE FROM VIETNAM." Singapore Economic Review 65, no. 05 (February 19, 2020): 1185–211. http://dx.doi.org/10.1142/s0217590819500723.
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This paper examines the causal effect of credit access on firm growth (measured by employment growth), using a unique micro-, small-, and medium-sized firm-level data collected every two years in Vietnam from 2005 to 2013. The results obtained from fixed-effects (FE) and FE with instrumental variable estimators show that firms with credit access experience a higher growth than firms without credit access. We also find that access to credit is positively associated with both formal and informal firm growth, but the results for formal firms seem to be driven by some high growth firms (and rapidly shrinking firms). The effect of credit access on firm growth is also heterogeneous by firm size and firm age in both types of firms.
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Khan, Asif, Sughra Bibi, Jiaying Lyu, Achille Claudio Garavelli, Pierpaolo Pontrandolfo, and Maria de Angeles Perez Sanchez. "Uncovering Innovativeness in Spanish Tourism Firms: The Role of Transformational Leadership, OCB, Firm Size, and Age." Sustainability 12, no. 10 (May 13, 2020): 3989. http://dx.doi.org/10.3390/su12103989.
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Innovativeness in the tourism and hospitality sector is essential for competitiveness and survival. Leadership plays a key role in promoting (or hampering) firm innovativeness. This article intended to examine the role of transformational leadership (TL) and organization citizenship behavior (OCB) on Spanish tourism firms’ innovativeness (OI). It also investigated whether firm size and age moderate the relationship between TL, OI, and OCB. The cross-sectional survey method was used to collect data from 329 middle-level managers in Spanish tourism firms. The findings of the data revealed that TL and OCB have significant impacts on firm innovativeness; also, OCB mediates the relationship between TL and firm innovativeness. Firm size and age moderate the relationship between TL and firm innovativeness; also, firm size moderates the relationship between TL and OCB. It was found that large firms were more innovative than small ones; also, younger firms showed a higher level of innovativeness than old firms. Managerial and specific firm size and age implications were provided.
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Navarro, María Sacristán, and Silvia Gómez Ansón. "Do families shape corporate governance structures?" Journal of Management & Organization 15, no. 3 (July 2009): 327–45. http://dx.doi.org/10.1017/s1833367200002650.
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AbstractThis paper provides empirical evidence of family firm corporate governance structures, by examining a set of corporate governance characteristics of 132 non-financial Spanish listed firms. Results show that family firm boards present differential characteristics and that different patterns of family ownership configurations do not affect family firm corporate governance structures. We find that Spanish family firm boards are smaller than those in non-family firms. Family firm directors own a larger fraction of firm shares and have longer Chairman tenure than non-family firms, and family firms use fewer voluntary board committees – such as nomination and remuneration committees and executive committees. Besides, family firm boards and committees are biased towards insiders. Whether these differential characteristics affect other minority non-family shareholders negatively remains an open question.
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Navarro, María Sacristán, and Silvia Gómez Ansón. "Do families shape corporate governance structures?" Journal of Management & Organization 15, no. 3 (July 2009): 327–45. http://dx.doi.org/10.5172/jmo.2009.15.3.327.
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AbstractThis paper provides empirical evidence of family firm corporate governance structures, by examining a set of corporate governance characteristics of 132 non-financial Spanish listed firms. Results show that family firm boards present differential characteristics and that different patterns of family ownership configurations do not affect family firm corporate governance structures. We find that Spanish family firm boards are smaller than those in non-family firms. Family firm directors own a larger fraction of firm shares and have longer Chairman tenure than non-family firms, and family firms use fewer voluntary board committees – such as nomination and remuneration committees and executive committees. Besides, family firm boards and committees are biased towards insiders. Whether these differential characteristics affect other minority non-family shareholders negatively remains an open question.
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Camyar, Isa, and Bahar Ulupinar. "Institutional complementarity, firm behavior, and firm heterogeneity: A cross-national analysis." Business and Politics 22, no. 3 (November 22, 2019): 477–509. http://dx.doi.org/10.1017/bap.2019.29.
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AbstractHow do political economic institutions and different types of institutional complementarity in particular influence firm behavior? Existing studies do not offer much help in answering this question. In this research, we systematically connect institutional complementarity and its two distinct logics (the logic of reinforcement and the logic of compensation) to firm performance. Using a sample of more than fourteen thousand firms from twenty advanced industrial democracies, our empirical analysis finds that institutional complementarity is related to firm performance in a distinct way. That is, the different logics of institutional complementarity apply only to specific segments of the economy. While the logic of reinforcement works for small firms and labor-intensive firms, the logic of compensation favors large firms and capital-intensive firms. The empirical novelty of our research lies in offering a cross-national, firm-level and large-n analysis of institutional complementarity. Theoretically, our finding of firm heterogeneity helps in establishing the boundary conditions of institutional complementarity and hence advances the general understanding of the subject.
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Chien, Yu-Tai, and Hsin-Min Lu. "Firm websites and the risk of firm." Industrial Management & Data Systems 115, no. 3 (April 13, 2015): 504–20. http://dx.doi.org/10.1108/imds-09-2014-0276.
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Purpose – Websites have become an important channel for firms to communicate with their stakeholders. Higher web site traffic could represent effective information disclosure and higher investor recognition. Both may reduce the risk of firm by reducing the level of information asymmetry and facilitating a more complete market by reaching to more potential investors. The purpose of this paper is to investigate the impact of firm web site traffic to the risk of firm. Design/methodology/approach – The authors conducted a cross-sectional study on the risk and firm web site traffic data of 4,122 US public firms. Findings – After controlling for confounding factors, web site traffic is significantly negatively associated with three firm risk measures: cost of equity, return volatility, and analyst forecast dispersion. Originality/value – The results provide new insights to the economic impact of web site traffic. Compared with previous studies that mostly investigated the relationships between web site traffic and firm performance measured by stock returns or company profitability, the authors documented empirical evidence that web site traffic influences the risk of firm through the level of information asymmetry and investor recognition. This paper suggests that when valuing a firm, investors would take web site traffic into consideration. Firm managers could use firm Websites as a channel to reduce information asymmetry, and increase investor recognition that can contribute to the firm’s value through reduced risk.
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Hong, Soonwook. "Chaebol Firms’ Donation Activities and Firm Values." Sustainability 11, no. 8 (April 24, 2019): 2417. http://dx.doi.org/10.3390/su11082417.
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This paper aims to investigate the effects of donation activities of chaebol firms on their firm values. The firm values will vary depending on capital market participants’ view on the donation activities of chaebol firms. To verify this hypothesis, data of firms listed in the Korea Composite Stock Price Index (KOSPI) from 2001 to 2017 are empirically analyzed. Whether a firm is a chaebol firm or not is assessed by whether the firm has been designated as a firm in one of the large business groups announced by the Korea Fair Trade Commission, and firm values are measured by Tobin’s Q and market-to-book value ratio (MTB). The results of analysis indicated that donation activities of chaebol firms were negatively related to firm values. The donation activities of chaebol firms seem to be not positively evaluated in the capital market. This paper is meaningful in that it verified how capital market participants evaluate the donation activities of chaebol firms, which account for a large portion of the South Korean economy. To gain public support, chaebol firms should strive to truly fulfill their social responsibilities.
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Vu, Nguyen, Ho, and Vuong. "Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade." Journal of Risk and Financial Management 12, no. 2 (April 11, 2019): 62. http://dx.doi.org/10.3390/jrfm12020062.
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This study investigates the relationship between firms’ competition, wage, CEOs’ characteristics, and firm performance (measured by net income per employee, return on assets (ROA) and return on equity (ROE)) of Vietnam’s 693 listed firms in 2015 using both the ordinary-least-square (OLS) and quantile regression methods. Triangulating the results coming from the analysis of three different measures of firm performance, this study consistently confirms that the sex of CEOs and chairman turns out to be insignificant in explaining firm performance and there is a negative association between capital intensity and firm performance. For financial firms, the age of a firm and average wage per employee are negatively associated with all types of firm performance. The quantile regression method shows that the age of a firm is negatively correlated with its net income per employee for small firms, while it is insignificant for medium-sized firms. Meanwhile, firm size is positively associated with firm performance. These results indicate Vietnam’s business activities are still concentrating on low labor cost, labor intensive, and low-tech production, thus, policies that promote innovation and high-tech applications should be encouraged.
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Joseph, Dahunsi Olusola, and Soetan, Olufunmilayo Rosemary. "Resource-Use Efficiency and Firm Performance in Nigeria’s Manufacturing Industry." Economy 9, no. 1 (June 28, 2022): 1–8. http://dx.doi.org/10.20448/economy.v9i1.4016.
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The study investigated the existence of technical efficiency among manufacturing firms and examine its effects on firm performance in Nigeria using firm level data between 2001 and 2017. Variables such as capital, labour, total overhead inputs, total firm output, competition, capital intensity, firm market share, technical efficiency scores and firm profitability were used in this study. Using the stochastic frontier analysis (SFA) to generate the technical efficiency scores, the study adopted System-GMM to examine the effects of technical efficiency on firm performance among quoted manufacturing firms operating in consumer (food beverages and tobacco), industrial and health (pharmaceutical) sectors in Nigeria. The findings revealed that 29% of the variation between the observed and optimal outputs is attributed to inefficiency among manufacturing firms. However, firm competitiveness significantly increases the efficient use of resources among manufacturing firms. This study further showed that technical efficiency variable has positive effects on manufacturing firm performance in Nigeria. The paper concluded that competition increases the efficient utilization of resources which positively improves firm performance in Nigeria’s manufacturing industry. Finally, the paper recommended that industrial policies should be geared towards promoting healthy competition (and not collusion) among manufacturing firms to attain optimal economic efficiency of resources.
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Meah, Mohammad Rajon, Kanon Kumar Sen, and Md Hossain Ali. "Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy." Indian Journal of Corporate Governance 14, no. 1 (May 26, 2021): 48–70. http://dx.doi.org/10.1177/09746862211007244.
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This study aims to explore the impact of audit characteristics and gender diversity on firm performance across family and non-family firms in Bangladesh. Using data of 61 non-family and 48 family firms from 2013 to 2019, this study applies system generalised method of moments approach to carry out regression analysis. Next, the consistency of results is detected by a full sample interaction analysis. In case of non-family firm, this study documents that Big4 audit firms (Big4) and female directors on board (FDR) have significant positive impact on firm performance. Conversely, audit meeting frequency (AMF) contributes negatively to the firm performance. Unfortunately, audit committee size (ACS) and audit committee independence (ACI) have no significant contribution on firm performance. In case of family firms, this study finds that ACS and ACI have significant negative impact on firm performance. Besides, Big4, AMF and FDR have no significant contribution on firm performance. It reflects that corporate governance mechanisms in family firm are not working well and even to some extent detrimental to the firm performance. It, ultimately, demands for reforms in corporate governance framework and incorporating new dimensions for family firms.
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Cho, Yoonkyo. "The Effects of Knowledge Assets and Path Dependence in Innovations on Firm Value in the Korean Semiconductor Industry." Sustainability 12, no. 6 (March 16, 2020): 2319. http://dx.doi.org/10.3390/su12062319.
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This study investigated whether firms’ knowledge assets and path dependence in their innovations affect firm value. For the analysis, I used 37 firms in the semiconductor industry in Korea. These firms were listed on the Korea Stock Exchange and the Korea Securities Dealers Association Automated Quotation as of 2010 and through 2015. The dependent variable was measured by return on assets as firm value, and the ordinary least squares estimation was used. The results showed that a firm’s knowledge assets have a positive effect on firm value. In addition, when a firm creates new knowledge, if the firm follows path dependence by using its own knowledge, it has a positive effect on firm value. By contrast, when a firm conducts innovations using knowledge created by other firms, it has no effect on the value of the firm. Additionally, I found that technological innovation based on knowledge assets and path dependence has a positive effect on firm value in the short term but has no effect in the medium term. Thus, firms need to continue their innovation to maintain their competitive advantage and to use their existing knowledge in innovation in order to have high performance.
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PAUWELS, WILFRIED, PETER M. KORT, and EVE VANHAECHT. "R&D INVESTMENTS AS PREBARGAINING STRATEGIES." International Game Theory Review 16, no. 03 (May 6, 2014): 1450003. http://dx.doi.org/10.1142/s0219198914500030.
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This paper analyzes a semicollusive, differentiated duopoly. Firms first compete in cost reducing R&D and then cooperate on the output market. The sharing of the joint profit on the output market is modeled as a Nash bargaining game. We study an asymmetric setting in which one firm has a lower unit cost of production than the other firm, before any R&D expenditures. If firms do not agree on how to share their joint profit, they play a noncooperative Nash equilibrium. Assuming linear demand functions, we show that the Nash bargaining outcome is independent of whether firms play a Cournot or a Bertrand Nash equilibrium, as long as both firms supply positive outputs in these equilibria. If the two products are sufficiently differentiated, there is a unique equilibrium in which both firms supply a positive output, and in which the low cost firm always invests more in R&D than the high cost firm. If the two products are not very differentiated, and if the difference in unit costs between the two firms is not too large, there exist two equilibria. In each of these equilibria only one firm supplies a positive output. This can be the low cost or the high cost firm. In the latter case, the initially high cost firm invests so much in R&D that its unit cost after R&D is lower than that of the other firm. This firm then leapfrogs the other firm. If the two products are very similar and if firms apply Bertrand strategies when disagreeing, there exist equilibria in which only one firm supplies a positive output, while in the noncooperative Nash equilibrium that same firm can prevent the other firm from entering the market. We show that, in the context of the Nash bargaining model, this latter firm still has the power to claim a share of the joint profit.
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Kalyanaraman, Lakshmi, and Basmah Altuwaijri. "Firm-size elasticity of top management team compensation in Saudi Arabian listed firms." Corporate Ownership and Control 14, no. 1 (2016): 656–62. http://dx.doi.org/10.22495/cocv14i1c4art12.
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We evaluate the firm-size elasticity of top management team (TMT) compensation with a sample of 80 firms listed in Saudi Arabian stock market. We find that the TMT compensation increases with firm size. The results are found to be robust when the total assets as the firm size measure is altered with other proxies, sales and market value of the firm. We show that the firm size and TMT compensation relationship is same as in the case of all firms sample when the firms are grouped into family firms and nonfamily firms. This finding is in line with the results of the previous studies that analyze the link between CEO compensation and firm size. We conclude that the large firms are willing to pay high compensation not just to their CEOs but also to the entire team at the top
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Nie, Yu, John Talburt, Serhan Dagtas, and Taiwen Feng. "The influence of chief data officer presence on firm performance: does firm size matter?" Industrial Management & Data Systems 119, no. 3 (April 8, 2019): 495–520. http://dx.doi.org/10.1108/imds-03-2018-0101.
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PurposeThe purpose of this paper is to investigate the relationship between the chief data officer’s (CDO) presence and firm performance, and the moderating effect of firm size.Design/methodology/approachThe performance data for 64 treatment firms with CDOs and 64 control firms without CDOs is collected from Compustat database. The Wilcoxon signed-rank test is used to analyze the performance differences between treatment firms and control firms. Hierarchical regression method is used to test the moderating effect of firm size.FindingsThe results indicate that the profit ratios of treatment firms are significantly improved after the appointment of CDOs, and the profit ratios of treatment firms are significantly higher than that of the control firms. For the cost ratios, the findings provide some empirical evidence revealing two of the cost ratios are lower and only one ratio is higher for the treatment firms after CDOs’ appointment. Firm size moderates the relationship between the CDO’s presence and firm performance indicator, ROS, in the same direction. Firm size has no moderating effect on relationships between CDO’s presence and other performance indicators.Practical implicationsThe findings provide practical insights that will help managers to realize the importance of CDOs and their work. CDOs would bring some cost to the firms, but they would bring more profit to firms. In addition, if for large firms, the CDO’s presence would bring more ROS.Originality/valueThe study explores the relationship between the CDO’s presence and firm performance. It is the first attempt to explore the CDO’s presence and the cost performance in the specific time period, and the study is also the first attempt to analyze the moderating effect of the firm size on the relationship between the CDO’s presence and firm performance.
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Burton, M. Diane, Michael S. Dahl, and Olav Sorenson. "Do Start-ups Pay Less?" ILR Review 71, no. 5 (December 13, 2017): 1179–200. http://dx.doi.org/10.1177/0019793917747240.
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The authors analyze Danish registry data from 1991 to 2006 to determine how firm age and firm size influence wages. Unadjusted statistics suggest that smaller firms paid less than larger firms paid, and that firm age had little or no bearing on wages. After adjusting for differences in the characteristics of employees hired by these firms, however, they observe both firm age and firm size effects. Larger firms paid more than did smaller firms for observationally equivalent individuals but, contrary to conventional wisdom, younger firms paid more than older firms. The size effect, however, dominates the age effect. Thus, although the typical start-up—being both young and small—paid less than a more established employer, the largest start-ups paid a wage premium.
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Obiekea, Precious Ogechukwu and Ebiaghan Orits Frank. "AN ASSESSMENT OF THE NEXUS BETWEEN FIRM ATTRIBUTES AND FINANCIAL REPORTING QUALITY IN NIGERIA." International Journal of Applied Research in Social Sciences 5, no. 7 (September 1, 2023): 177–92. http://dx.doi.org/10.51594/ijarss.v5i7.535.
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This study examines the relationship between the firm attributes and financial reporting quality of listed consumer goods firms in Nigeria. The study employed secondary data retrieved from the published financial records of 12 consumer goods listed firms in Nigeria over a period of 10 years spanning 2012 to 2021. The paper adopted four independent variables as measures of firm attributes which includes firm size (FSIZE), board composition (BSIZE, profitability (PROF) and firm growth (FGROW). On the other hand, the dependent variable which is financial reporting quality was proxy using Modified Jones Model. The dataset were analyzed using the descriptive statistics, diagnostic tests and inferential statistics. The study specified a linear model which was tested using the simple regression analysis as a result of the nature of the study. The findings revealed that board composition and firm growth have significant impact on financial reporting quality of listed consumer goods firms in Nigeria. Again, firm size and profitability have insignificant relationship with financial reporting quality of listed consumer goods firms in Nigeria. The findings indicated that collectively the firm attributes measures examined in this study have significant association with financial reporting quality of listed consumer goods firms in Nigeria. Thus, the study recommended that listed consumer goods firms in Nigeria pay attention to the potential negative impact of firm size and board size on financial reporting quality. Companies should strive to establish effective internal controls, robust reporting mechanisms, and appropriate governance structures to mitigate the adverse effects of these factors.
Keywords: Firm Attributes, Financial Reporting Quality, Profitability, Firm Growth, Firm Size.
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Obiekea Precious Ogechukwuka and Ebiaghan Orits Frank. "AN ASSESSMENT OF THE NEXUS BETWEEN FIRM ATTRIBUTES AND FINANCIAL REPORTING QUALITY IN NIGERIA." International Journal of Applied Research in Social Sciences 5, no. 7 (September 5, 2023): 177–92. http://dx.doi.org/10.51594/ijarss.v5i7.540.
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This study examines the relationship between the firm attributes and financial reporting quality of listed consumer goods firms in Nigeria. The study employed secondary data retrieved from the published financial records of 12 consumer goods listed firms in Nigeria over a period of 10 years spanning 2012 to 2021. The paper adopted four independent variables as measures of firm attributes which includes firm size (FSIZE), board composition (BSIZE, profitability (PROF) and firm growth (FGROW). On the other hand, the dependent variable which is financial reporting quality was proxy using Modified Jones Model. The dataset were analyzed using the descriptive statistics, diagnostic tests and inferential statistics. The study specified a linear model which was tested using the simple regression analysis as a result of the nature of the study. The findings revealed that board composition and firm growth have significant impact on financial reporting quality of listed consumer goods firms in Nigeria. Again, firm size and profitability have insignificant relationship with financial reporting quality of listed consumer goods firms in Nigeria. The findings indicated that collectively the firm attributes measures examined in this study have significant association with financial reporting quality of listed consumer goods firms in Nigeria. Thus, the study recommended that listed consumer goods firms in Nigeria pay attention to the potential negative impact of firm size and board size on financial reporting quality. Companies should strive to establish effective internal controls, robust reporting mechanisms, and appropriate governance structures to mitigate the adverse effects of these factors.
Keywords: Firm Attributes, Financial Reporting Quality, Profitability, Firm Growth, Firm Size.
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Rahman, Md Jahidur, and Liu Yilun. "Firm Size, Firm Age, and Firm Profitability: Evidence from China." Journal of Accounting, Business and Management (JABM) 28, no. 1 (April 30, 2021): 101. http://dx.doi.org/10.31966/jabminternational.v28i1.829.
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This study aims to investigate the relationship among firm size, firm age, and firm profitability in China’s stock market. We use data from all the public firms in China’s stock market from 2008 to 2018 and adopt a fixed effects model to examine these relationships. We find a positive relationship between firm size and profitability and a negative relationship between firm age and profitability, which is consistent with existing studies conducted in other countries. The findings of our study can contribute to future research in China by offering a sound basis and appropriate reference point, given that no previous research has been conducted in China on this exact topic. This study also offers a comprehensive model for use in future studies.
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Li, Bin. "Impact Of Information Disclosure Violation On Firm Value In Chinese Listed Firms." Journal of Applied Business Research (JABR) 32, no. 3 (May 2, 2016): 903–16. http://dx.doi.org/10.19030/jabr.v32i3.9663.
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We analyze the association between information disclosure violation (IDV) and firm value, based on a sample of Chinese listed firms that were subject to China Securities Regulatory Commission (CSRC) enforcement actions from 2000 to 2014. Using Tobin’s Q as a proxy for firm value at the end of the enforcement action year, we find that firm value in violating firms is significantly lower than firm value in non-violating firms. Further, we find IDV with the following characteristics can cause serious damage to firm value: IDV related to inflated profit or asset fabrication have a more damaging effect on firm value; the total number of violation types, fines and the total number of admonishment types are negatively associated with firm value; violation frequency and number of years between violations and CSRC enforcement action are negatively related to firm value.
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Hewa Wellalagea, Nirosha, Anura De Zoysa, and Shiguang Ma. "Corporate Cash Holdings and Firm Performance in India: An Empirical Investigation of the Effects of Audit Quality and Firm Growth." American Business Review 26, no. 1 (2023): 122–47. http://dx.doi.org/10.37625/abr.26.1.122-147.
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This paper examines the effects of audit quality and firm growth on the relationship between corporate cash holdings and firm performance by using a sample of about 2500 unique non-financial Indian firms from 2000 to 2017, consisting of 51,388 firm-year observations. The results obtained by controlling for potential endogeneity using the dynamic panel generalised method of moment (GMM) approach show that cash holdings have an inverse U-shaped (concave) relationship with firm performance, which is stronger for firms with higher audit quality than firms with lower audit quality. Our findings also show that firm growth affects the cash holdings and firm performance relationship and the moderating effect of audit quality. Our study highlights the need for corporate managers to consider firm performance, audit quality and firm growth levels in policy decisions on cash holdings.
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Janardhanan, Anju Kalluvelil, and Uma Vakadae Ramkumar. "Does internal control process and firm characteristics improve firm value? An empirical analysis in the manufacturing sector." Corporate Ownership and Control 19, no. 3 (2022): 101–11. http://dx.doi.org/10.22495/cocv19i3art7.
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The purpose of this research is to investigate the role of enterprise risk management (ERM), Big4 auditors and firm characteristics on firm value. This population study was conducted in the Indian manufacturing sector. Annual panel data for 11 years (2007–2017) was collected from 60 firms on the National Stock Exchange (NSE). Empirical findings prove that there is variation in Tobin’s Q but no difference in return on assets (ROA) and return on equity (ROE) among firms that have implemented ERM and included Big4 audit firms. The study documents that Q was influenced by the implementation of ERM, liquidity, firm age and firm size. Findings reveal that ERM, firm size, leverage, firm age, liquidity and firm complexity impacted ROA. The study outcome also shows ROE was affected by leverage, firm size, liquidity and firm complexity. This study is a valuable addition to the existing studies on the Indian manufacturing sector and has contributed incredible insights to the empirical literature on firm value from the multidimensional outlook of the purchasers, management, and investors. The findings have several implications for investors, managers and researchers.
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Hopenhayn, Hugo, Julian Neira, and Rish Singhania. "From Population Growth to Firm Demographics: Implications for Concentration, Entrepreneurship and the Labor Share." Econometrica 90, no. 4 (2022): 1879–914. http://dx.doi.org/10.3982/ecta18012.
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In the U.S., large firms now account for a greater share of economic activity, new firms are being created at slower rates, and workers are receiving a smaller share of GDP. Changes in population growth provide a unified quantitative explanation. A decrease in population growth lowers firm entry rates, shifting the firm‐age distribution toward older firms. Firm aging accounts for (i) the concentration of employment in large firms, (ii) and trends in average firm size and exit rates, key determinants of firm entry rates. Feedback effects from firm demographics generate two‐thirds of the effect. Prior to the decrease, entry rates rose steadily reflecting the earlier baby boom. The glut of firms due to the baby boom lead to rich transitional dynamics within the feedback effects, accounting for more than half the total change. Baby boom induced changes in the firm‐age distribution provide a driving force for the post‐WWII rise and fall in the aggregate labor share. Ignoring changes in population growth attributes all the long run decline in entry rates to a decrease in firm exit rates, which in reality have been only one‐third as large.
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Mohammad Salem Alrjoub, Ashraf, and Muhannad Akram Ahmad. "Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan." Investment Management and Financial Innovations 14, no. 3 (October 4, 2017): 4–14. http://dx.doi.org/10.21511/imfi.14(3).2017.01.
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Several studies have examined the relationship between inventory management and firm performance. However, most of these studies ignore the impact of inventory types on the relationship. Moreover, the relationship is influenced by some factors such as cost of capital which has not been considered. This study examines the moderating effect of cost of capital on the relationship between inventory types and firm performance. The data of 48 firms for the period 2010-2016 which formed 279 firm-year observations were used in this study. With the use of Pearson correlation and panel Generalized Method of Moments (GMM) estimation, the findings show that inventory management with consideration of its types influence firm performance in the long term. In addition, it is also found that cost of capital moderates the relationship between inventory management and firm performance. However, the interaction between cost of capital and inventory types has different implications. It is suggested that firms should consider cost of capital when making decision on inventory types and align their inventory control to fit in to the changes in their business environment.
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Pisani, Michael J. "Challenges to Formality from Formal Firms Behaving Informally: Evidence from Central America." Economía y Administración (E&A) 12, no. 2 (December 14, 2021): 91–114. http://dx.doi.org/10.5377/eya.v12i2.12974.
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This research explores the competitive environment for urban formal sector firms competing against peer formal sector firms behaving informally in Central America. Explored is the upper bound of the formal-informal continuum in a regional economic environment of persistent and widespread economic informality where formal firms may employ informal tactics to gain competitive advantage versus their formal competitors. The 2010 World Bank Enterprise Surveys form the basis for empirical analyses. The results suggest formal firms utilizing informal practices is widespread and is influenced by firm maturity, firm location, industry sector, firm legal status, firm organization, ownership composition, regulatory environment, international quality certification, web presence, entry into global markets, and firm size.
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Elston, Julie Ann. "Bank influence, firm performance and survival: Empirical evidence from Germany 1970-1986." Corporate Ownership and Control 1, no. 2 (2003): 65–70. http://dx.doi.org/10.22495/cocv1i2p5.
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This paper systematically investigates the impact of bank-influence on firm performance and survival in Germany. Close bank-firm relationships and concentrated ownership which characterize the Japanese and German financial and governance systems are often credited with reducing agency problems and improving monitoring of firm activities, thus improving firm performance and the chances of survival. Empirical results reveal that bank influenced firms have higher survival rates than independent firms. However, firm growth appears to be independent of bank influence and negatively related to firm size.
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Catacutan, Zandro. "DETERMINANTS OF TOTAL FACTOR PRODUCTIVITY ACROSS PHILIPPINE MANUFACTURING FIRMS: A SIMULTANEOUS QUANTILE REGRESSION ANALYSIS." International Journal of Economics, Business and Accounting Research (IJEBAR) 6, no. 2 (June 22, 2022): 648. http://dx.doi.org/10.29040/ijebar.v6i2.4691.
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Numerous studies found mixed evidence on the effects of firm-related factors toward the conditional distribution of TFP performance done in a cross-country, industry, and firm-level perspectives abroad. Unfortunately, there is still relatively little evidence to support these findings in the context of the Philippines. Thus, this study analyzed whether the conditional distribution of firm-level TFP performance varies according to the size of the firms, and forms of ownership, and examined the impact of firm-related factors such as firm size, form of ownership, R&D intensity, capital intensity, and export intensity on the conditional distribution of manufacturing firms’ TFP performance. The study utilized the comprehensive firm-level data gathered from the World Bank Enterprise Survey conducted in 2015 across selected manufacturing firms in the Philippines, and incorporated ordinary least squares regression and simultaneous quantile regression models in the estimation analyses. Empirical findings revealed that the conditional distribution of firm-level TFP performance marginally varies across selected manufacturing firms while these firms solely focus on domestic operations supported by capital outlays with less engagement in R&D activities. Lastly, capital intensity and firms’ form of ownership were found to have statistically significant effects on the conditional distribution of firm-level TFP performance observed across all quantiles.
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Itoh, Ryo, and Kentaro Nakajima. "Do sourcing networks make firms global? Microlevel evidence from firm-to-firm transaction networks." Japanese Economic Review 72, no. 1 (November 16, 2020): 65–96. http://dx.doi.org/10.1007/s42973-020-00061-9.
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AbstractThis study investigates how the structure of a domestic firm-to-firm transaction network influences the foreign direct investment (FDI) decisions of embedded firms in the network. We theoretically describe firms’ FDI decisions using an incomplete information game that considers the firm-to-firm transactions of intermediate inputs and in which firms have an incentive to collocate with their trading partners in foreign markets. We show that the probability of a firm engaging in FDI increases with its Katz–Bonacich centrality, which is defined as aggregated accessibility to all other firms and represents expected profit gained from colocation with its partners. We empirically show that this prediction is supported using disaggregated inter-firm transaction network data on Japanese firms. We also extended both theoretical and empirical frameworks to consider the dynamic aspect of FDI. When we consider existing foreign affiliates, accessibility to prior investors in the transaction network, named Katz–Bonacich accessibility, positively influences FDI as well as Katz–Bonacich centrality.
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Serolin, Alvina. "Effect of Corporate Social Responsibility, Leverage, Firm Age and Size on Firm Value." Research of Economics and Business 1, no. 2 (September 30, 2023): 95–104. http://dx.doi.org/10.58777/reb.v1i2.81.
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This study aims to analyze the effect of corporate social responsibility, leverage, firm age, and size on firm value and its review from an Islamic point of view. This study was conducted at LQ 45 firms listed on the Indonesia Stock Exchange. This study uses secondary data for the period 2017-2021. The sample in this study was determined using purposive sampling so that 16 firms were obtained with a total of 80 LQ 45 Firm data. The method used is panel data analysis with the Eviews 12 application. The study results show that simultaneously, the ratio of corporate social responsibility, leverage, firm age, and firm size significantly influence the prediction of firm value. Furthermore, the corporate social responsibility ratio partially does not influence firm value. In contrast, the leverage ratio, firm age, and firm size negatively affect firm value. The variables of leverage, firm age, and firm size are very much a consideration for investors to choose a good firm or not; therefore, these variables significantly affect firm value.
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Komarudin, Mamay, and Naufal Affandi. "FIRM VALUE, CAPITAL STRUCTURE, PROFITABILITY, FIRM CHARACTERISTIC AND DISPOSIBLE INCOME AS MODERATOR: AN EMPIRICAL INVESTIGATION OF RETAIL FIRMS IN INDONESIA." Inovbiz: Jurnal Inovasi Bisnis 7, no. 1 (June 28, 2019): 79. http://dx.doi.org/10.35314/inovbiz.v7i1.943.
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This study examined the effect of capital structure on firm value; firm characteristic on firm value with disposible income as moderator variable; the effect of profitability on firm value. The study was conducted in Indonesia Stock Exchange (IDX) with samples of retail firms listed on the IDX in 2014 to 2016 as many as 21 retail firms. The analysis methode used Moderated Regression Analysis (MRA), classical assumption test and t test. The results showed that the capital structure didn’t have a significant negative effect on firm value. Profitability had a significant positif effect on firm value. Firm characteristic didn’t have a significant negative effect on firm value with disposible income as a moderator. The conclusion of research indicated that capital structure and profitability had a significant effect on firm value while firm characteristic with disposible income as moderator didn’t have significant effect on firm value
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Kilenthong, Pitsamorn, Claes M. Hultman, and Gerald E. Hills. "Entrepreneurial marketing behaviours: impact of firm age, firm size and firm’s founder." Journal of Research in Marketing and Entrepreneurship 18, no. 1 (July 11, 2016): 127–45. http://dx.doi.org/10.1108/jrme-05-2015-0029.
Full textAbstract:
Purpose The purpose of this paper is to empirically test whether a systematic relationship exists between firms’ level of entrepreneurial marketing (EM) behaviours and firms’ characteristics, including firm age, firm size and firm’s founder. Design/methodology/approach This paper quantitatively investigates EM behaviours from data collected from 752 business owners through structured interviews. The data analysis applied was multi-group confirmatory factor analysis (multi-group CFA). Findings Results from the analysis show that not all of the firms’ characteristics determine firms’ level of EM practice. The level of EM behaviours has a systematic relationship with firms’ age but not with the founding status of the firms’ manager. The impact of firm size on the level of EM behaviours is evident only when the firms’ age is taken into account. Research limitations/implications This paper concludes that relationships between EM behaviours and firm characteristics are more complicated than anticipated. Firms’ characteristics alone may not be a good measure for identifying the level of a firm’s EM. EM cannot be conceptualized solely in relation to the activities of small firms, young firms or founder-operated firms. Originality/value This paper examines EM behaviours in a large survey and uses multi-group CFA to examine firms’ EM practice through latent variables, instead of observed variables. The findings should complement knowledge regarding the EM concept generated from existing literature.