Role of management practices and their effects on firm performance: Emerging market context

2021 ◽  
Vol 30 (5) ◽  
pp. 467-479
Author(s):  
Nakul Parameswar ◽  
Zuby Hasan ◽  
Sanjay Dhir
Keyword(s):  
Firm Performance ◽  
Management Practices ◽  
Emerging Market

The moderating role of competitive strategy in relating firm performance to quality management and government support

2010 ◽  
Vol 10 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Jiqin Han ◽  
S.W.F. (Onno) Omta ◽  
Jacques Trienekens ◽  
Ron Kemp
Keyword(s):  
Firm Performance ◽  
Quality Management ◽  
Competitive Strategy ◽  
Process Management ◽  
Management Practices ◽  
Business Environment ◽  
Government Support ◽  
Supplier Quality Management ◽  
Quality Design

One of the main concerns in companies is quality management and its relationship to firm performance. Recently a growing interest in research is the important role of the business environment in the competitive strategy choices of companies. By proposing a conceptual framework for a general model that explains the quality management practices-firm performance link and the business environment-firm performance link, we test the moderating role of competitive strategy in the two links empirically. A survey was conducted of 229 pork-processing firms in the emerging economy of China. We find that specific quality management practices contributing to higher performance include in-company quality management, supplier quality management, employee involvement in quality management and process management, while quality design and customer quality management are not included. Findings also indicate that the business environment (government support in our research) has a positive relationship to firm performance. Competitive strategy only strengthens the relationship between firm performance and quality design, process management, supplier quality management and customer quality management.

scholarly journals Corporate governance, institutional investor type and firm performance: Evidence from an emerging market

2021 ◽  
Vol 5 (4) ◽  
pp. 20-27
Author(s):  
Rama Sastry Vinjamury
Keyword(s):  
Firm Performance ◽  
Institutional Investors ◽  
Firm Value ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Emerging Market ◽  
Developed Economies ◽  
Financial Firms ◽  
Pressure Sensitive

The study analyses the role of institutional investors in improving firm performance. Unlike in developed economies where firm ownership is widely dispersed, firms in emerging economies such as India have substantial promoter shareholdings (often in a majority or close to a majority). Given the promoter control of Indian companies, the role of institutional investors as external monitors is analysed. Following Brickley, Lease, and Smith (1988) and Almazan, Hartzell, and Starks (2005), the study categorises institutional investors as pressure-sensitive and pressure-insensitive institutional investors. Panel data for non-financial firms from India included in National Stock Exchange (NSE) 500 over the period 2008–2017 is studied using fixed-effects models. The study finds that the increased ownership of pressure-insensitive institutional investors is positively associated with firm performance. Also, the increased ownership of pressure-sensitive institutional investors is negatively associated with firm performance. These findings are consistent with the view that pressure-insensitive institutional investors are more effective monitors compared to pressure-sensitive institutional investors. The study offers insights into the role of institutional investors in economies where firms have a substantial promoter shareholding. The study documents that even with a substantial promoter shareholding and control, pressure-insensitive institutional investors aid in enhancing firm value

scholarly journals Role of Organizational Flexibility in Enhancing Sustainable Green Management Practices: A Study in Emerging Market Context

2013 ◽  
Vol 4 (3) ◽  
pp. 361-368
Author(s):  
Dr. Broto Rauth Bhardwaj ◽  
A.R. Deshmukh
Keyword(s):  
Sustainable Development ◽  
Sample Size ◽  
Management Practices ◽  
Emerging Market ◽  
Emerging Economy ◽  
Management Support ◽  
Internal Environment ◽  
Green Management ◽  
Organizational Flexibility

Purpose The purpose of this paper is to identify the variables influencing the role of organizational flexibility in enhancing sustainable organization (SO) by adopting green management practices. The empirical research study identifies the characteristics of internal environment to enhance sustainable green management practices in firmsoperating in an emerging economy, such as India. Design/methodology/approach The authors studied a sample size of 62 firms all over India and measured the internal environment for enhancing sustainable green management practices. In total, 142 responses were collected.Using SPSS tool, the authors measured the impact of these variables on sustainable outcomes.Findings It was found that the critical variables with respect to Indian context included management support, a nd organizational flexibility for developing environmentally sustainable organization.Research limitations/implications Further confirmatory research needs to be conducted to establish the stability of these factors. The results need to be tested on a larger sample size. Moreover, the tool developed needs to be tested for other emerging economy context too for generalization. Practical implications Organizational flexibility would enhance the sustainable capability of the companies to compete by enhancing their competitiveness in emerging economies by adopting green management practices. Therefore, it would be critical to study the role of green management practices in enhancing the sustainability and competitiveness of the firms operating in the Indian economy. Originality/value Earlier studies have not included two important parameters, including role of organizational flexibility and management support as drivers of sustainable development even in the developed country context. Moreover, the influence of organizational flexibility on green management practices needs to be studied in the context of sustainable development which was missing in the earlier literature.

Internal audit function and real earnings management practices in an emerging market

2020 ◽  
Vol 28 (6) ◽  
pp. 1209-1230
Author(s):  
Belal Ali Abdulraheem Ghaleb ◽  
Hasnah Kamardin ◽  
Adel Ali Al-Qadasi
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Emerging Market ◽  
Negative Relationship ◽  
Internal Audit ◽  
Least Square ◽  
Real Earnings Management ◽  
Content Type ◽  
Internal Audit Function

Purpose This study aims to investigate the monitoring role of internal audit function (IAF) on real earnings management (REM) practices. It examines the effect of investment in IAF (IIAF) and IAF sourcing arrangements on REM, unlike prior literature which has mainly examined the effects of IIAF on accrual-based earnings management. Design/methodology/approach This study uses a sample of 1,056 observations from an emerging market, Malaysia, between 2013 and 2016. Feasible generalised least square (FGLS) regression is used to analyse the data. To corroborate the results of this study, the authors use an ordinary least square (OLS) regression model with robust standard errors adjusted and also consider alternative REM measures. Findings The results of this study suggest that IIAF has a significant negative relationship with REM practices. Further, in-house IAF sourcing has a significant negative association with REM. The additional analysis supports the main results confirming the essential role of IAF in reducing REM in the Malaysian market. Practical implications The evidence relates to the important role of IAF in mitigating REM practices. High-quality of IAF impairs managers’ ability to manage earnings in their own interests. The findings may be useful in informing regulators, managers, shareholders and other investors, as well as researchers, about improving the role of IAF. Originality/value This study contributes to the existing literature by providing the first evidence of the significant role of IIAF and IAF sourcing arrangements in mitigating REM in an emerging country.

The financial leverage–financial performance relationship in the emerging market of Turkey: the role of financial distress risk and currency crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Kalash
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Financial Distress ◽  
Emerging Market ◽  
Currency Crisis ◽  
Ordinary Least Squares ◽  
Financial Leverage ◽  
Content Type ◽  
Distress Risk

PurposeThe purpose of this article is to examine how financial distress risk and currency crisis affect the relationship between financial leverage and financial performance.Design/methodology/approachThis study uses data of 200 firms listed on Istanbul Stock Exchange during the period from 2009 to 2019, resulting in 1950 firm-year observations. Pooled ordinary least squares, random effects, firm fixed effects and two-step system GMM models are used to investigate the hypotheses of this study.FindingsThe results reveal that financial leverage has negative and significant effect on financial performance, and that this effect is stronger for firms with higher financial distress risk. Furthermore, the findings provide moderate evidence that currency crisis exacerbates the negative association between leverage and performance.Practical implicationsThe results of this study have important implications for firms in emerging markets. Managers can enhance firm performance by reducing the level of financial leverage, especially in firms with higher financial distress risk. These firms incur higher debt costs, and then they can benefit more from the decreases in debt ratio in their capital structure. Moreover, the decreases in debt level have more importance in currency crisis times, when the access to external finance becomes more expensive and more difficult.Originality/valueTo the author's knowledge, this research is the first to examine the effect of currency crisis on the financial leverage–financial performance relationship and is one of few that investigate the role of financial distress risk in determining the linkage between leverage and firm performance.

scholarly journals Family Firms, Directors’ Remuneration, Expropriation and Firm Value: Evidence of the Role of Independent Directors’ Tenure within the Remuneration Committee in Malaysia

2018 ◽  
Vol 2 (2) ◽  
pp. 5-8
Author(s):  
Chee Yoong Liew ◽  
Young Kyung Ko ◽  
Bee Lian Song ◽  
Saraniah Murthy
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Family Firms ◽  
Emerging Market ◽  
Negative Relationship ◽  
Moderating Effect ◽  
Policy Implications ◽  
Problem Type ◽  
Significant Negative Relationship

This manuscript is about the influence of directors’ remuneration on firm performance and whether independent directors’ tenure in the remuneration committee moderates this relationship. The results show that within family corporations in industries which are not exclusive, non-executive directors’ remuneration have a significant negative relationship with firm performance. Family firms have a stronger significant negative relationship than non-family firms. Within family firms in non-exclusive industries, there is also a positive moderating effect of independent directors’ tenure within the remuneration committee on the influence of non-executive directors’ remuneration on firm performance. In this case, corporations owned by families have a stronger positive moderating effect compared to non-family firms. Our study has significant policy implications with respect to how the Securities Commission (SC) should design and implement proper rules and regulations to govern remuneration of non-executive directors’ remuneration as well as how the SC should govern the tenure of the independent directors within the remuneration committee in East Asian emerging market firms where Agency Problem Type II is prevalent and ownership is highly concentrated

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