Analysis of the Causal Relationship Among Diversification Strategies, Financial Performance and Market Values by the Three-Stage Least Squares (3SLS)

2021 ◽  
pp. 431-437
Author(s):  
Ying-Li Lin ◽  
Kuei-Yuan Wang ◽  
Jia-Yu Chen
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Causal Relationship ◽  
Market Values ◽  
Diversification Strategies ◽  
Three Stage Least Squares

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

scholarly journals Changes in Financial Performance of Traditional Intermediatries for Financial Innovation

2019 ◽  
Vol 8 (10) ◽  
pp. 3723-3728
Keyword(s):  
Financial Performance ◽  
Causal Relationship ◽  
Granger Causality ◽  
Performance Measures ◽  
Empirical Model ◽  
Negative Impact ◽  
Financial Innovation ◽  
Bank Performance ◽  
Loan Growth ◽  
The Impact

The purpose of this thesis is to examine the impact of digital bank deposit, asset and loan growth on selected traditional bank performance measures. In order to estimate whether a causal relationship between digital bank measures and traditional bank performance exists, Granger causality method is selected as the main empirical model. In addition, to determine the direction and strength of said relationship, OLS regressions are performed. Research results lead to the conclusion that digital bank deposit and loan growth have a causal relationship to traditional bank performance ratios. Deposit growth has a negative impact on traditional bank performance ratios and loan growth shows both positive and negative impact on different ratios. This research demonstrates some of the challenges that traditional banks are facing in the age of innovation.

Does Fund Managers's Human Capital Add Value for The Fund Performance in Malaysia

2021 ◽  
Vol 12 (1) ◽  
pp. 92-92
Author(s):  
Venny Sin-Woon Chong ◽  
Ming-Ming Lai ◽  
Lee-Lee Chong
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Mutual Fund ◽  
Empirical Studies ◽  
Fund Performance ◽  
Ordinary Least Squares ◽  
Performance Model ◽  
Fund Managers ◽  
Developed Markets ◽  
Three Stage Least Squares

This study examines the integration of fund managers' human capital characteristics (including education, gender, race, experience, age, team manager) relative to the fund performance model. A few previous empirical studies paid attention to human capital characteristics and mutual fund performances based on developed markets and have obtained mixed result findings. However, very little attention has focused on fund managers' human capital characteristics in the Malaysian mutual funds industry. Hence, this study attempts to fill this research gap.Based on a sample of Malaysian mutual fund managers, data is sourced from fund management companies, Thomson One database and fund master prospectus, from January 2012 to December 2014. The study employing ordinary least squares (OLS) and three-stage least squares (3SLS) methods to integrate fund performances and human capital characteristics with single and simultaneous equations based on asset pricing models. Keywords: Human capital, fund manager, fund performance.

The Impact of Outsourcing on Performance and Competitive Priorities among Malaysian SMEs

2018 ◽  
pp. 1318-1336
Author(s):  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
T. Ramayah
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Least Squares ◽  
Partial Least Squares ◽  
Market Share ◽  
Significant Influence ◽  
Return On Investment ◽  
Competitive Priorities ◽  
Net Profit ◽  
The Impact

The objective of this research is to examine the influence of outsourcing on financial performance and competitive priories of Malaysian SMEs. A data sample of 100 SMEs was analyzed to examine these relationships. The analysis was conducted via Partial Least Squares. Based on the findings, while outsourcing has significant influence of SMEs financial performance in Malaysian context, outsourcing activities do not have an impact on competitive priorities. Outsourcing approach emphasizing on the establishment of core competitive advantage, allows Malaysian SMEs to get the numerous benefits such as overall sales growth, market share, net profit, return on investment, and financial liquidity.

The Impact of Outsourcing on Performance and Competitive Priorities among Malaysian SMEs

2017 ◽  
pp. 157-175
Author(s):  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
T. Ramayah
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Least Squares ◽  
Partial Least Squares ◽  
Market Share ◽  
Significant Influence ◽  
Return On Investment ◽  
Competitive Priorities ◽  
Net Profit ◽  
The Impact

The objective of this research is to examine the influence of outsourcing on financial performance and competitive priories of Malaysian SMEs. A data sample of 100 SMEs was analyzed to examine these relationships. The analysis was conducted via Partial Least Squares. Based on the findings, while outsourcing has significant influence of SMEs financial performance in Malaysian context, outsourcing activities do not have an impact on competitive priorities. Outsourcing approach emphasizing on the establishment of core competitive advantage, allows Malaysian SMEs to get the numerous benefits such as overall sales growth, market share, net profit, return on investment, and financial liquidity.

The Effect of Pay and Retention Bonuses on Quit Rates in the U.S. Army

ILR Review ◽  
1988 ◽  
Vol 41 (3) ◽  
pp. 430-438 ◽  
Author(s):  
Hyder Lakhani
Keyword(s):  
Labor Market ◽  
Least Squares ◽  
Quit Rate ◽  
General Skills ◽  
Three Stage Least Squares ◽  
The U.S ◽  
Combat Soldiers

This paper investigates the effects of pay and reenlistment bonuses on quit rates in the U.S. Army. A three stage least squares analysis of 1981 data shows that quit rates were negatively related to pay level and, even more so, to the size of the bonus offered. The effects on the quit rate were significantly greater, however, for soldiers in combat occupations than for those in noncombat occupations. The author speculates that the skills learned by combat soldiers are less marketable in the civilian labor market than the more general skills acquired by noncombat soldiers; he thus urges higher bonuses in noncombat occupations.

Structural production factors’ impact on the financial performance of agribusiness cooperatives in Brazil

2018 ◽  
Vol 38 (3) ◽  
pp. 606-635 ◽  
Author(s):  
Fellipe Silva Martins ◽  
Wagner Cezar Lucato
Keyword(s):  
Financial Performance ◽  
Operations Management ◽  
Agricultural Cooperatives ◽  
Financial Return ◽  
Content Type ◽  
Future Studies ◽  
Production Factors ◽  
Diversification Strategies ◽  
Conjoint Approach ◽  
Spearman’S Correlation

Purpose Studies on the performance of agribusiness cooperatives in Brazil focus on economic and financial aspects. The purpose of this paper is to further delve into such studies by investigating which commonly measurable structural production factors (horizontal, vertical and lateral diversification; operating area; number of associates; and time in operation) have greater impacts on the financial performance of such cooperatives. Design/methodology/approach To achieve such a goal, a survey was conducted with a sampling pool divided by size (annual net revenues of US$ 50 million or higher), and the questionnaire was employed as a method of data collection. The sample was concentrated in the southern, south-eastern and mid-western regions of Brazil; classified by size; and deemed adequate after several adequacy tests. Findings The results were analysed using Spearman’s correlation, which showed that there were no significant correlations between the structural production factors considered in this study and the economic-financial performance of agricultural cooperatives, which leads to questions about the effectiveness of employing diversification strategies with a conjoint approach. Nonetheless, it was possible to identify several relationships not mentioned in the original hypotheses that might be addressed further in future studies. Research limitations/implications The data obtained should be interpreted with caution because heteroscedasticity was detected. Although the cause could not be clearly identified, the presence of heteroscedasticity could mean that smaller and similar cooperatives present similar variation in their diversification and production base strategies. Originality/value This work sought to generate knowledge regarding operations management, which was achieved by demonstrating that production diversification in a dynamic and relevant economic sector, that is, agricultural cooperatives, is limited in terms of financial return when performed in an isolated mode. Hence, cooperatives’ production managers should take into account the totality of structural production factors during their planning activities.

The Effect of Pre–Post Differences in Walking, Health, and Weight on Retirees’ Long-Term Quality of Life

2020 ◽  
Vol 28 (4) ◽  
pp. 510-520
Author(s):  
Devajyoti Deka
Keyword(s):  
Quality Of Life ◽  
New Jersey ◽  
Least Squares ◽  
Mail Survey ◽  
Ordinary Least Squares ◽  
Active Lifestyle ◽  
Weight Variation ◽  
Three Stage Least Squares

This research examined the effect of pre–post differences in walking duration, health, and weight on retirees’ long-term quality of life (QoL). It used data from a 2018 randomized mail survey of 483 suburban New Jersey retirees. Ordinary least squares and three-stage least squares models were used. The analysis showed that changes in walking duration during the first 2 years of retirement are directly associated with health change, health change has an effect on long-term QoL, and weight variation of 10 lb or more has an effect on health change and long-term QoL. Although QoL peaks for the sample of retirees at around age 75, people whose average walking duration increased, health improved, and weight did not increase substantially after retirement continued to experience high QoL for a longer time. The results show that people can achieve high long-term QoL by choosing an active lifestyle when transitioning to retirement.

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