Financialization of manufacturing companies and corporate innovation: Lessons from an emerging economy

2021 ◽  
Author(s):  
Kun Su ◽  
Heng Liu
Keyword(s):  
Emerging Economy ◽  
Manufacturing Companies ◽  
Corporate Innovation

Factors influencing liquidity position of Indian manufacturing companies

2020 ◽  
Vol 10 (2) ◽  
pp. 243-260
Author(s):  
Amit Tripathy ◽  
Shigufta Hena Uzma
Keyword(s):  
Manufacturing Industry ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Emerging Economy ◽  
Market Mechanism ◽  
Manufacturing Companies ◽  
Content Type ◽  
Factors Influencing ◽  
Indian Context ◽  
The Impact

PurposeThe purpose of this paper is to investigate the increasing demand for corporate liquidity and examines the various factors influencing the cash position of firms in India. The financial policy to hold cash gained impetus after the financial crisis when the companies faced a severe cash crunch. However, the firms operating in emerging nations have an imperfect market mechanism with stringent regulatory norms. Thus, this paper attempts to examine the determinants of corporate cash holdings in an emerging country like India.Design/methodology/approachThe paper focuses on the impact of various factors (leverage, firm size, profitability, growth along with other variables), on the cash structure of all the manufacturing companies listed on the Bombay stock exchange. The study employs panel data methodologies over a sample of 323 firms over a period of eight years from 2010 to 2017.FindingsSignificant estimators affecting cash holdings of a firm are the size of a firm, debt levels, tangibility, sales growth and research and development expense. Overall, the study finds evidence on the existence of Pecking Order theory in explaining the determinants of cash holdings in the Indian market.Research limitations/implicationsThe study attempts to explore the critical determinants of cash in the Indian context which can be useful for managers and academicians to understand how the key theories of cash holdings operate in an emerging economy like India.Originality/valueIndia is an emerging economy and has recently gained global attention and has become a hotspot for foreign investments. Thus, this paper explores pieces of evidence on the critical factors affecting cash holdings in India. The study would provide an understanding of the existing cash policy in the Indian context and attempts to find the changes in the financing structure adopted by the manufacturing industry in the given period.

Impediments to CSR assurance in an emerging economy

2014 ◽  
Vol 29 (3) ◽  
pp. 253-267 ◽  
Author(s):  
Faizah Darus ◽  
Yussri Sawani ◽  
Mustaffa Mohamed Zain ◽  
Tamoi Janggu
Keyword(s):  
Customer Relations ◽  
Developed Countries ◽  
Emerging Economy ◽  
Subjective Norms ◽  
Third Party ◽  
Corporate Communications ◽  
Manufacturing Companies ◽  
Online Questionnaire ◽  
Content Type ◽  
Regulatory Authorities

Purpose – This study explores the factors that impede the growth of the voluntary adoption of independent corporate social responsibilities assurance (CSRA) practices among manufacturing companies in Malaysia. Despite the argument that independent CSRA appraisals would improve the credibility of information disclosed, the majority of CSR reports in Malaysia are still not independently assured. The aim of this study is to understand the factors that impede CSRA practices among public-listed manufacturing companies in Malaysia. The theory of reasoned action was used to underpin arguments on the reluctance of managers to undertake CSRA. Design/methodology/approach – Online questionnaire surveys were employed to obtain respondents' perceptions on the factors that hinder CSRA practices. The target respondents comprised of CSR managers, corporate communications executives and customer relations personnel. Findings – This study provides evidence that the behavioural reluctance of managers to undertake CSRA was due to their attitudes and subjective norms towards independence assurance. The subjective norms due to the risk towards corporate reputation and the exposure to public scrutiny were the main factors that impede CSRA practices among manufacturing companies in Malaysia. The managers' attitude towards cost, data management systems and the uncertainty of the merits of CSRA were also compelling factors that hinder independent CSRA. These factors seemed to override incentives to provide credible information to stakeholders. Research limitations/implications – The findings of the study are limited to the perceptions of CSR managers, corporate communications executives and customer relations personnel responsible for CSR activities of the manufacturing industries in Malaysia. The results of the study suggest that further initiatives or pressure from stakeholders or regulatory authorities may be needed to convince the companies of the benefits of undertaking third-party assurance practices as such actions would provide a platform for the companies to enhance the credibility of their CSR reporting. Practical implications – The findings gleaned from this study would be of interest to the relevant corporate bodies and regulatory authorities with a view to formulating strategies to improve CSRA practices among organisations in Malaysia. Originality/value – The findings from the study offer initial insights into the impediments to CSRA practices in an emerging economy. It adds substantially to the existing literature that focuses mainly on CSRA practices in developed countries.

Stakeholder and resource‐based antecedents and performance outcomes of green export business strategy: insights from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nilay Bıçakcıoğlu-Peynirci ◽  
Mustafa Tanyeri
Keyword(s):  
Business Strategy ◽  
Emerging Market ◽  
Emerging Economy ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Organizational Resources ◽  
Content Type ◽  
Positive Effects ◽  
Stakeholder Pressures

PurposeBuilding upon insights from institutional theory and resource-based view (RBV), the aim of this study is to investigate the direct effects of stakeholder pressures on organizational resources, organizational capabilities and green export business strategy and to explore the indirect impacts of organizational resources and capabilities on the link between stakeholder pressure and green business strategy from an emerging economy.Design/methodology/approachA quantitative study was conducted to test the conceptual model within this study. In total, 235 questionnaires were collected from Turkish exporting manufacturing companies and the data was analyzed through structural equation modeling.FindingsThe results of the study demonstrated that stakeholder pressures have strong and positive effects on organizational resources and organizational capabilities for firms from emerging markets. Also, organizational resources, capabilities and stakeholder pressures have significant impacts on green export business strategy, which in turn, influences positively export market and financial performance.Practical implicationsSeveral implications were presented in this study via examining the forces affecting companies' environmental strategies and how implementing these strategies result in favorable gains in their international operations for emerging country exporters.Originality/valueThe contribution of this study lies in the under-researched context, in discussing the mutually and contradictory roles played by stakeholders and in examining determinants of the adoption of green strategies by emerging-market exporters. In this sense, stakeholders make the life of the company tougher at home by demanding a greener posture; on the other hand, by doing so, they prompt the company to be competitive when selling to developed markets.

scholarly journals Analyzing the Medium-Low and Low- Technology Firms’ Innovative Behavior in an Emerging Economy

2020 ◽  
Vol 8 (1) ◽  
pp. 36-54
Author(s):  
Javier Fernando Del Carpio Gallegos ◽  
Francesc Miralles ◽  
Eduardo Javier Soria Gómez
Keyword(s):  
Technological Innovation ◽  
Structural Model ◽  
Emerging Economy ◽  
Absorption Capacity ◽  
Structural Equations ◽  
Manufacturing Companies ◽  
Innovative Behavior ◽  
Technology Firms ◽  
Innovation Surveys ◽  
Technological Intensity

Objective. Design a model that shows what factors favor the development of technological innovation in manufacturing companies of medium-low and low technological intensity. Methodology. A sample of 1106 manufacturing companies that participated in the innovation surveys in 2012 and 2015 was used, applying the partial structural equations approach and estimating the invariance between the two groups. Results. The results of this study from the structural model, which allow obtaining the positive and statistically significant coefficients, which allow empirically validating the hypotheses. Conclusions. It was evidenced that non-technological innovation, absorption capacity and technologicalacquisition favor technological innovation in companies with low technological intensity.This article confirms that manufacturing companies should guide efforts to improve their capacity for innovation.

scholarly journals The Impact of Corporate Strategy on Enterprise Innovation Based on the Mediating Effect of Corporate Risk-Taking

2021 ◽  
Vol 13 (3) ◽  
pp. 1023
Author(s):  
Rui Li ◽  
Yongmei Cui ◽  
Yajun Zheng
Keyword(s):  
Risk Taking ◽  
Corporate Strategy ◽  
Corporate Sustainability ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Corporate Innovation ◽  
Enterprise Innovation ◽  
Corporate Risk ◽  
The Impact

Corporate strategy and enterprise innovation are highly relevant to corporate sustainability. Although previous studies on corporate strategy and enterprise innovation have yielded many results, a consensus regarding the relationship between the two is still lacking. The purpose of this study was to empirically analyze the impact of corporate strategy on corporate innovation performance and analyze corporate risk-taking as a potential factor mediating such. Based on data for listed Chinese A-share manufacturing companies for 2008 to 2018, this empirical study found that corporate strategy and corporate innovation show an inverted U-shaped relationship. Corporate risk-taking plays a mediating effect between corporate strategy and corporate innovation performance. This study expands the knowledge on situational variables and the mechanism by which corporate strategy might impact enterprise innovation and can enlighten managers to promote the sustainable development of manufacturing enterprises.

Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Variabel Intervening Profitabilitas

2017 ◽  
Vol 25 (1) ◽  
pp. 13-39
Author(s):  
Achmad Tjahjono ◽  
Siti Chaeriyah
Keyword(s):  
Corporate Governance ◽  
Path Analysis ◽  
Executive Director ◽  
Audit Committee ◽  
Positive Impact ◽  
Institutional Ownership ◽  
Analysis Tool ◽  
Manufacturing Companies ◽  
Company Value ◽  
Good Corporate Governance

The Company was founded with the goal of increasing the value of the company as well as to provide prosperity for the owners or shareholders. Good Corporate Governance and profitability is an effort to enhance company value. This study aims to determine the influence of good corporate governance to company value with profitability as intervening variable. The population of this research is manufacturing companies listed in Indonesia Stock Exchange in 2010 - 2014. The sample is taken by using purposive sampling method. Under this method, as many as 123 companies were obtained. The analysis tool to test the hypothesis is path analysis with AMOS software version 21. Data analysis method is descriptive analysis, path analysis, and sobeltest. The results of this study indicate that managerial ownership, the audit committee and the profitability have positive impact toward the of the company value, institutional ownership has positive impact but not significant, non-executive director with negative effect tendency on the company value. The results of this study also showed that profitability cannot mediate the effect of good corporate governance mechanisms on company value. It can be suggested to replace the intervening variable with other variables such as quality of earnings instead of profitability since it is declined as an intervening variable. non-executive director and institutional ownership does not contribute any positive and significant effect on company value and profitability. The following research can use another proxy in the measurement process and consider other theories that could explain comprehensively.

Dividend Payout Ratio: Persoalan Free Cashflow, Debt To Equity Ratio, Kepemilikan Institutional, Investment Opportunity, Dan Kesejahteraan Karyawan

Liquidity ◽  
2017 ◽  
Vol 6 (1) ◽  
pp. 1-11
Author(s):  
Nurlis Azhar ◽  
Helmi Chaidir
Keyword(s):  
Cash Flow ◽  
Significant Influence ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Flow Ratio ◽  
Prediction Ability ◽  
Employee Welfare ◽  
Equity Ratio

This study was conducted to examine the effect of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (Parliament) partially on manufacturing companies listed on Indonesia Stock Exchange period 2011-2015. In addition, to test the feasibility of regression model, the influence of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (DPR) simultaneously at manufacturing company listed on Bursa Indonesia Securities period 2011-2015. The population in this study are 146 manufacturing companies that have been and still listed in Indonesia Stock Exchange period 2011-2013. The sampling technique used was purposive sampling and obtained sample of 42 companies. Data analysis technique used is by using multiple linear regression test. The results showed that Free Cash Flow Ratio, no significant effect on Divident Payout Ratio (DPR). Debt Equity Ratio (DER) has a negative and significant influence on Divident Payout Ratio (DPR), Institutional Ownership has a significant positive effect on Divident Payout Ratio (DPR), Employee Welfare and Price Earning Ratio (PER) has a positive and significant influence on the Divident Payout Ratio ). Simultaneously Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) give effect to Divident Payout Ratio. The prediction ability of the five variables to the Divident Payout Ratio (DPR) is 21.3% as indicated by the adjusted R square of 0.271 while the remaining 79.7% is influenced by other factors not included in the research model.

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