Connections between organisational culture and financial performance in Estonian service and production companies

2020 ◽  
Vol 15 (3) ◽  
pp. 375-393 ◽  
Author(s):  
Anne Reino ◽  
Kärt Rõigas ◽  
Merily Müürsepp
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Former Soviet Union ◽  
Rank Correlation ◽  
Organisational Culture ◽  
Annual Reports ◽  
Strong Positive Correlation ◽  
Cross Sectional ◽  
Content Type ◽  
And Performance

PurposeThis paper elaborates on connections between organisational culture (OC) and financial performance in production and service companies in Estonia.Design/methodology/approachThis cross-sectional study analyses the organisational culture of 19 SMEs and large service and production companies with 2,256 respondents. The questionnaire based on the Competing Values Framework (CVF) was used to map organisational culture. Six different performance indicators from annual reports in the Estonian Business Register database were used over a four-year period. A confirmatory factor analysis and non-parametric Spearman rank correlation were applied in the study.FindingsThe authors found that OC types are connected to each other and theoretical opposites in the CVF are not mutually exclusive. Strong correlations exit between Clan and Adhocracy cultures, also confirmed by previous studies. Surprisingly, Market and Hierarchy types correlated more strongly in our sample compared to previous studies. As expected, Clan–Adhocracy and Market types exhibited a strong positive correlation with financial indicators, but contrary to the authors’ hypothesis, the Hierarchy type also had positive connections to performance indicators. The Market culture was only significantly related to performance in years when the Hierarchy type was also positively correlated with performance. Correlations that were positive in some years under investigation became insignificant in other years.Originality/valueFirst, The authors use multiple objective financial performance indicators to reveal relationships between OC and performance. Second, this study did not only rely on the managers' opinion of OC, but the sample also consists of respondents from all levels of the organisational hierarchy. Third, the authors expand on existing research into the link between OC and performance by exploring a country from the former Soviet Union (FSU), where the number of similar studies is low, but where the specific context has an impact on connections between OC and financial performance of the firms.

Do loyalty programs really matter for hotel operational and financial performance?

2018 ◽  
Vol 30 (5) ◽  
pp. 2195-2213 ◽  
Author(s):  
Nan Hua ◽  
Wei Wei ◽  
Agnes L. DeFranco ◽  
Dan Wang
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Performance Indicator ◽  
Positive Impact ◽  
Empirical Support ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

PurposeThis study aims to use a sample of 2,120 individual hotel properties between 2011 and 2013 to evaluate the impact of loyalty programs on hotel operational and financial performance.Design/methodology/approachThis study provides empirical support for the impact of loyalty program based on both cross-sectional and panel data analyses and uses the instrumental variable technique to avoid potential heteroscedasticity, autocorrelation and simultaneity issues.FindingsFindings of this study show that loyalty program expenses have a significant and positive impact on all three operational performance indicators of RevPAR, ADR and Occupancy and the financial performance indicator of gross operating profit.Research limitations/implicationsThis study suggests that the benefits of loyalty programs should be understood against the backdrop of a reasonable set of controlled variables such as e-commerce, franchise, advertising, other marketing expenses, hotel size and hotel chain scales.Originality/valueGiven the conflicting viewpoints about the positive and negative impacts of loyalty programs, and that the literature is scant on empirical validation of the impact of loyalty programs on the overall operational and financial performance of hotel properties, this study is an early attempt to empirically test the impact of loyalty programs on a number of hotel operational and financial performance indicators by using an extensive list of individual hotel properties between 2011 and 2013.

Risk reporting in financial crises: a tale of two countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaouthar Lajili ◽  
Michael Dobler ◽  
Daniel Zéghal ◽  
Mitchell John Bryan
Keyword(s):  
Performance Indicators ◽  
Significant Risk ◽  
Annual Reports ◽  
Content Type ◽  
Panel Regressions ◽  
Cross Country ◽  
And Performance ◽  
Risk Disclosures ◽  
Corporate Risk ◽  
Risk Reporting

Purpose This paper aims to investigate the attributes and information content of risk reporting in two different institutional and regulatory, namely, Canadian and German, settings during the period surrounding the financial crisis of 2008. Design/methodology/approach For a matched sample of manufacturing firms in the period 2006–2010, this study conducts a detailed content analysis of annual reports to assess and compare the volume and patterns of risk disclosures. Panel regressions are used to explore how risk disclosures related to corporate risk proxies and performance indicators. Findings Over the sample period, Canadian and German firms increase the volume but largely maintain the patterns of risk disclosures. Risk disclosures relate to corporate risk proxies but are not incrementally informative to assess firm performance. Originality/value The paper contributes to research on risk reporting by providing detailed cross-country evidence for a period particularly shaped by significant risk. The findings have implications for the regulation and usefulness of risk reporting.

Does an organic strategy pay? An explanatory study of the Italian wine industry

2019 ◽  
Vol 121 (10) ◽  
pp. 2322-2336 ◽  
Author(s):  
Francesco Dainelli ◽  
Tiberio Daddi
Keyword(s):  
Financial Performance ◽  
Equity Capital ◽  
Organic Production ◽  
Wine Industry ◽  
Annual Reports ◽  
Annual Growth Rate ◽  
Gross Margin ◽  
Cross Sectional ◽  
Content Type ◽  
Two Samples

Purpose The relationship between businesses, green strategies and financial performance has become the focus of interest for many academics, practitioners and policymakers in recent years, with often controversial results. Surprisingly, very few contributions have been made by the wine sector to this debate. The purpose of this paper is to investigate the financial advantages of Italian winemakers who opt for green strategies and obtain voluntary organic certification. Design/methodology/approach The authors compared the financial performance of 76 organic and 76 non-organic winemaking companies by means of 20 fundamental indicators of growth, profitability and solvency. The data were collected through an analysis of the 2014–2016 official annual reports. The authors used the compound annual growth rate measures, focusing on the median due to its robust characteristics. The authors then used non-parametric tests to examine the differences between the two samples. Findings The growth of organic companies was almost three times that of their rivals between 2014 and 2016. Both the premium price and lower costs lead to an increase in the gross margin. However, the huge investments required for organic production weigh heavily on the financial statements; although having financed these investments with a higher share of equity capital, the organic companies present a higher level of capitalisation. Originality/value Wine is a part of an agricultural industry that is too often based on industrialised food production processes. This study demonstrates the need for greener strategies that can benefit the producers, consumers and the environment. This is the first cross-sectional analysis and peer review to focus on the wine industry.

scholarly journals Musculoskeletal disorders among rice farmers in Phimai District, Nakhon Ratchasima Province, Thailand

2019 ◽  
Vol 33 (6) ◽  
pp. 494-503
Author(s):  
Ekarat Sombatsawat ◽  
Titaporn Luangwilai ◽  
Parichat Ong-artborirak ◽  
Wattasit Siriwong
Keyword(s):  
Musculoskeletal Disorders ◽  
Work Experience ◽  
Rank Correlation ◽  
Agricultural Practices ◽  
Farm Size ◽  
Body Region ◽  
Cross Sectional ◽  
Content Type ◽  
Rice Farmers ◽  
Body Regions

Purpose The purpose of this paper is to explore the prevalence of musculoskeletal disorders (MSDs) and determine factors influencing MSDs among rice farmers. Design/methodology/approach A cross-sectional study was carried out among 156 rice farmers from 14 villages in Tarnlalord sub-district, Phimai district, Nakhon Ratchasima province, Thailand, from February 2017 to March 2017. Face-to-face interviews, including demographics, work characteristics and musculoskeletal pain, were conducted using a modified standardized Nordic questionnaire. Findings The results revealed that both 78 males and 78 females participated in the study to which the average of age and body mass index (BMI) was 45.5±11.4 years and 24.9±4.0 kg/m2, respectively. All rice farmers reported MSDs in at least one body region during the six months preceding the interview. The highest prevalence of MSDs showed 86.5 percent in the lower back area, followed by 85.9 percent in the neck, and 80.7 percent in the shoulders. The analysis of binary logistic regression and Spearman’s rank correlation showed that factors such as gender, age, BMI, work experience and farm size influence MSDs’ occurrence, and pain severity in one or more body regions (p < 0.05). Originality/value Musculoskeletal injuries are a significant health problem in rice farmers. The study indicated that appropriate agricultural practices such as working posture, equipment size selection and carrying loads should be recommended to prevent MSDs. Thus, the occupational health and safety services in agricultural workers are needed.

Does social reporting matter? Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adel Sarea ◽  
Monsurat Ayojimi Salami
Keyword(s):  
Performance Indicators ◽  
Voluntary Disclosure ◽  
Financial Institution ◽  
Negative Relationship ◽  
Social Reporting ◽  
Future Research ◽  
Islamic Banking ◽  
Cross Sectional ◽  
Content Type ◽  
Gcc Countries

Purpose This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards. Design/methodology/approach A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs. Findings The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure. Research limitations/implications This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough. Social implications The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries. Originality/value To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.

Airline effective operations strategy during COVID-19 pandemic: across regional worldwide survey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yazan Khalid Abed-Allah Migdadi
Keyword(s):  
Performance Indicators ◽  
Secondary Data ◽  
Operations Strategy ◽  
Quantitative Methodology ◽  
Resilience Theory ◽  
Operational Strategies ◽  
Content Type ◽  
And Performance ◽  
International Airlines ◽  
Bounce Back

Purpose This study aims to identify the effective operational strategies for airlines in a pandemic that allow them to recover and bounce back smoothly. Design/methodology/approach This study adopted quantitative methodology based on secondary data published by the airlines related to operational and performance indicators. The total number of airlines surveyed was 145. The sample of study covers all the following regions: Africa, Asia, Europe, the Middle East, North America and South America. The data analysis of this research passed through several phases to compare the situation before and during pandemic period. Findings The effective operational strategy patterns during the outbreak of the COVID-19 pandemic comprise three hybrid strategies and one scheduling strategy. It appears from these strategy models that four strategic alternatives are available for international airlines to adopt, while two strategic alternatives are available for regional airlines. The strategy alternatives for regional and international airlines are all effective, but those of the international airlines are the more effective ones. Originality/value Previous studies rarely adopted the theory of operations strategy configuration (emphasizing taxonomies-based perspective) and the organizational resilience theory (emphasizing capability-based perspective) to identify the effective airlines operations strategy patterns in a pandemic, that allow airlines to recover and bounce back smoothly by analyzing the practices of airlines from different geographic regions worldwide.

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

scholarly journals Is “transgenerational response” a hidden cause of failed corporate turnarounds and chronic underperformance?

2017 ◽  
Vol 45 (3) ◽  
pp. 23-29
Author(s):  
John Oliver
Keyword(s):  
Financial Performance ◽  
Case Studies ◽  
Corporate Culture ◽  
Ceo Turnover ◽  
Business Leaders ◽  
Adaptive Responses ◽  
Content Type ◽  
Organizational Policies ◽  
And Performance

Purpose CEO turnover and chronic corporate underperformance are examined through the lens of Transgenerational Response. Design/methodology/approach The criteria for investigating Transgenerational Response in corporations consisted of identifying a Critical Corporate Incident, the number of corporate generations and the resultant corporate financial performance. Findings The evidence presented in the case studies illustrates how a Critical Corporate Incident has produced the consequential effect of chronic financial performance in the years following the incident. Research limitations/implications These case studies have not presented the “actual” adaptive responses, inherited attitudes and behaviours that have subsequently embedded themselves in a new corporate culture, post the Critical Corporate Incident, to the detriment of the long-term health and performance of each firm. Practical implications Examining CEO turnover and chronic corporate underperformance through the lens of Transgenerational Response means that business leaders can identify how a historic event has affected the performance of their firm in subsequent generations. With this knowledge in hand, they will be able to examine the inherited attitudes and behaviours, organizational policies, strategy and adaptive cultural routines that have combined to consolidate the firms chronic under performance. Originality/value This is a highly original, evidence based, idea that has the potential to reshape our current understanding of CEO turnover and underperforming firms. It will help business leaders identify how a historic event has affected the performance of a firm in subsequent generations.

Intellectual capital and performance of listed companies: empirical evidence from Italy

2014 ◽  
Vol 18 (1) ◽  
pp. 22-35 ◽  
Author(s):  
Domenico Celenza ◽  
Fabrizio Rossi
Keyword(s):  
Explanatory Power ◽  
Value Added ◽  
Listed Companies ◽  
Cross Sectional ◽  
Content Type ◽  
Accounting Performance ◽  
And Performance ◽  
The One ◽  
Two Stages ◽  
The Relationship

Purpose – The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in market value and the variations in VAIC on the other hand. Design/methodology/approach – Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis was divided into two stages. In the first stage, eight models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second stage, six other models were tested, considering as an independent variable the variations in VAIC and the variations in profitability indicators. Findings – The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in the analysis of equity performance. Originality/value – This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective.

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.

Sign in / Sign up

Export Citation Format

Share Document