Managing diversity in minority business enterprises: the impact of employee homogeneity on financial performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian Blount ◽  
Delmonize Smith
Keyword(s):  
Financial Performance ◽  
Minority Business ◽  
Significant Implication ◽  
Cross Sectional ◽  
Data Set ◽  
Convenience Sample ◽  
Content Type ◽  
Business Enterprises ◽  
Minority Business Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of employee homogeneity on the financial performance of minority business enterprises (MBEs). It is widely postulated that MBEs tend to hire minorities that resemble the ethnicity of the founder(s) and that this is beneficial by helping to decrease minority unemployment rates as well as providing new opportunities to minorities that they might not otherwise receive at White-owned firms.Design/methodology/approachThe study used hierarchical linear regression on archival data of 271 MBEs to determine if employee homogeneity will be a factor in understanding their financial performance. The authors also conducted exploratory interviews with a convenience sample of MBEs to gain insight into the concept of employee homophily.FindingsThe research uncovered that as homogeneity increases, MBE financial performance decreases, and this effect is more pronounced the longer the MBE is in business.Research limitations/implicationsThe data set is cross-sectional in nature and lack the perspective and clarity of time. The paper only contains a small set of exploratory interviews. The most significant implication from the study is that a lack of diversity decreases the long-term financial viability of MBEs which is to counter mainstream arguments that speak only to the positive aspects of MBEs hiring their own.Originality/valueThe research builds on the scant literature on the impact of diversity within MBEs. It also provides guidance to MBEs by suggesting they be strategic in diversifying their employee base in order to improve performance.

Revisiting the impact of organized labor on corporate bottom lines

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmytro Osiichuk ◽  
Paweł Mielcarz ◽  
Julia Kavalenka
Keyword(s):  
Financial Performance ◽  
Organized Labor ◽  
Corporate Financial Performance ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
International Panel ◽  
Transmission Mechanisms ◽  
Credible Threat ◽  
The Impact

Purpose Relying on an international panel data set, the purpose of this paper is to quantify the economic impact of labor unionization on corporate financial performance. Design/methodology/approach Static panel regression analysis is performed for a firm-level multinational data set to elucidate the postulated empirical relationships between employee unionization and corporate performance. The transmission mechanisms intermediating the studied effects are discussed and operationalized. Findings The empirical evidence demonstrates that firms with a higher level of employee unionization spend more on wages and labor-related expenses. The concomitant downside of higher resource extraction by unions is a lower rate of net employment creation and a higher possibility of redundancy layoffs. Originality/value Overall, the authors demonstrate that by creating a credible threat of employee disobedience manifested through strikes and internal wage disputes, labor unions remain an effective mechanism of increasing employees’ bargaining power. Despite the discovered weak negative associative link between the degree of unionization and corporate financial performance, the authors perceive the overall evidence to be inconclusive on this matter.

Impact of R&D activities on the financial performance: empirical evidence from Indian pharmaceutical companies

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mithun Nandy
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Pharmaceutical Companies ◽  
Financial Returns ◽  
Data Set ◽  
Content Type ◽  
Return On Equity ◽  
Performance Framework ◽  
The Impact

Purpose This paper aims to study the impact of research and development (R&D) activities on the financial performance of Indian pharmaceutical companies listed with the national stock exchange (NSE) of India by conceptualizing R&D’s impact and financial performance framework (RDiFPF). Design/methodology/approach Strongly balanced panel data set was used for the period of 1999–2020 on the basis of secondary data subscribed from a reputable Capitalline, a corporate database as well as individual company-wise annual report extract for cross-validation. Findings The paper presents a novel conceptualized framework called RDiFPF with the help of financial performance related variables: sales turnover, return on assets, return on equity and market capitalization, where R&D impacts in a significant manner on the financial performance of the NSE-listed Indian pharmaceutical companies. The paper finally establishes a link between R&D activities and financial performance with respect to the Indian pharmaceutical companies listed with the NSE. Research limitations/implications The suggested framework opens new dimension of research with respect to R&D, innovative practices in the pharmaceutical business and financial performance. The research can also be used in teaching and may be beneficial for framing public policy. Though the study has been carried out in Indian context, it might have implications in the emerging economies. Practical implications To achieve financial returns, pharmaceutical companies need to adopt appropriate endeavour to invest substantial amount on R&D to bring innovation in the pharmaceutical business. Social implications A better allocation of R&D expenditure has the potential for bringing new medicine, which can cure unknown diseases and impact on the lives of the patient fraternities. Originality/value The contributions of the paper are twofold: on the one hand, the author proposes a framework where emphasis has been provided on the R&D investment in the pharmaceutical business and, on the other hand, significant financial performance has been shown which motivates every R&D-centric pharmaceutical companies. Notably, the novel RDiFPF framework, which has been proposed in this study, may ignite and inspire the pharmaceutical business leaders as well as entrepreneurs to take R&D and innovation in pharmaceutical business for impacting human lives as well as to enjoy significant financial returns by providing health-care solution for treating novel diseases and disorders.

The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia

2020 ◽  
Vol 13 (3) ◽  
pp. 483-501
Author(s):  
Imran Khan ◽  
Syeda Nitasha Zahid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Good Governance ◽  
Islamic Banks ◽  
Corporate Boards ◽  
Sampled Data ◽  
Data Set ◽  
Content Type ◽  
Advisory Boards ◽  
The Impact

Purpose This study aims to investigate the impact of Shari’ah and corporate governance on Islamic banks performance in Asia. Design/methodology/approach The study uses hand collected data set on Shari’ah and corporate governance variables of 79 Islamic banks of 19 countries of Asia, for the period of 2011-2016. Augmented Mollah et al. (2017) composite corporate governance index into Islamic corporate governance (ICG) index by incorporate Shari’ah board’s (SBs) attributes. Two types of statistical analysis were performed; descriptive statistics, sample t-test and panel random effects regression. The analysis was further sub-sampled by considering the supervisory vs advisory, GCC vs non-GCC and large vs small effects of Shari’ah and corporate boards on Islamic banks performance. Findings The results of the baseline model reveal that Shari’ah governance-related variables are more influential in determining the financial performance of the Islamic banks. The sub-sampled data findings illustrated some interesting facts. Shari’ah supervisory vs advisory boards regression results show that the ICG index was found significant in both the models. However, when SBs are weak the general board dominates in determining the performance. GCC vs non-GCC results show a relatively good governance in non-GCC countries. While, in case of large vs small Islamic banks, banks having high total assets demonstrates sound governance characteristics. Research limitations/implications Independent, large and educated SB can play a significant role in removing the hurdles facing the Islamic banking industry and can also enhance stakeholders’ value. Originality/value This study enriches the understanding on Shari’ah governance, corporate governance and financial performance of Islamic banks in Asia.

Food packaging design and consumer perception of the product quality, safety, healthiness and preference

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christelle Bou-Mitri ◽  
Marilyn Abdessater ◽  
Hani Zgheib ◽  
Zeina Akiki
Keyword(s):  
Food Packaging ◽  
Cross Sectional Study ◽  
Health Claims ◽  
Cross Sectional ◽  
Convenience Sample ◽  
Economic Implications ◽  
Content Type ◽  
Packaging Design ◽  
Positive Effects ◽  
The Impact

Purpose The purpose of this paper is to assess the impact of the packaging design on consumers’ perception of the food quality, safety, healthiness and preference to buy. Design/methodology/approach A cross-sectional study recruited a convenience sample of 547 Lebanese adults with a median age of 30 years old and 54% being females, between November and December 2016, using an interviewer-based questionnaire. Findings As identified by the participants, packaging should “protect the food” (54.9%) and be safe (52%). Most participants especially those who reported that protecting the food is the most important packaging functionality tended to select the vacuum package [OR (95% CI) = 2.19 (1.32; 3.66); p = 0.002] for having the highest quality, being the healthiest and the more frequently bought (24.3, 30.2 and 29.1% respectively). Regarding the juice, most of the participants thought that the glass bottles have the highest quality, were the safest, the healthiest and the most frequently bought (64.9, 37.4, 68.4 and 52.9%, respectively). Those who reported that safety is the most important characteristic for food packaging, have selected transparent as the most attractive color to use [OR (95% CI) = 2.10 (1.25; 3.55); p-value = 0.005]. Among the consumers, 87% considered that nutrition and health claims were among the most important informative cues. Around 73.1% (n = 399) were willing to pay more for a better packaging with 59.4% willing to pay 3% more. Originality/value This market research identifies the packaging characteristics and features which have positive effects on consumer attitudes. Therefore, it will help manufacturers track consumers’ trends and interests, and accordingly impact their business decisions in responding adequately in their package design. The social behavior will increase the product sale and its market success leading to direct economic implications.

The impact of information technology investment on enterprise financial performance in China

2019 ◽  
Vol 14 (3) ◽  
pp. 529-542
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Guang Yu
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Listed Companies ◽  
Control Group ◽  
It Investment ◽  
Data Set ◽  
Content Type ◽  
Implementation Phase ◽  
Firm Financial Performance ◽  
The Impact

Purpose This paper aims to examine the influence of information technology (IT) investment, including innovative IT investment and non-innovative IT investment, on comprehensive enterprise financial performance in a developing country, China. Design/methodology/approach This paper applies the method proposed by Barber and Lyon to construct the control group to study the impact of IT investment on financial performance of enterprises, using a sample of 229 IT investment announcement data of Chinese listed companies between 2011 and 2015. Findings The analysis of the financial benefits of these IT implementations yields mixed results. The results show that companies investing in IT can significantly improve profitability both the implementation and post-implementation periods for the full sample, improve the solvency only during the implementation phase, improve the growth ability after implementation time and cannot reduce business costs in all periods. At the same time, the authors find that, compared with non-innovative IT investment, the innovative samples do not achieve better financial performance, except the profitability financial indicator. Research limitations/implications There are several limitations in this research. First, there is no large sample about the IT investment information data set in China, so this study was compelled to use limited sample data from China; hence, this could lead to errors of too early generalization. Second, the firms in the sample are all in China’s listed companies, so this may either not accurately or possibly could reflect the entire environment of developing countries. Originality/value First, it extends the scope of the established literature by examining the influence of IT investment with China’s public firms data and IT investment to see if such spending has had an influence on corporate financial performance. Second, there is a lack of research on the impact of IT investment on comprehensive financial performance of an enterprise, compared with the previous one-sided financial performance, such as profitability or financial cost. Third, as far as the authors are aware, there are no studies on the impact of IT investment on firm financial performance based on innovative and non-innovative classification.

The impact of organizational social networks on salespeople’s negative headquarters stereotypes

2020 ◽  
Vol 35 (12) ◽  
pp. 1901-1913
Author(s):  
Babak Hayati ◽  
Sandeep Puri
Keyword(s):  
Social Networks ◽  
Social Network ◽  
Sales Performance ◽  
Sales Managers ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Network Patterns ◽  
The Impact ◽  
Sales Forces

Purpose Extant sales management literature shows that holding negative headquarters stereotypes (NHS) by salespeople is harmful to their sales performance. However, there is a lack of research on how managers can leverage organizational structures to minimize NHS in sales forces. This study aims to know how social network patterns influence the flow of NHS among salespeople and sales managers in a large B2B sales organization. Design/methodology/approach The authors hypothesize and test whether patterns of social networks among salespeople and sales managers determine the stereotypical attitudes of salespeople toward corporate directors and, eventually, impact their sales performance. The authors analyzed a multi-level data set from the B2B sales forces of a large US-based media company. Findings The authors found that organizational social network properties including the sales manager’s team centrality, sales team’s network density and sales team’s external connectivity moderate the flow of NHS from sales managers and peer salespeople to a focal salesperson. Research limitations/implications First, the data was cross-sectional and did not allow the authors to examine the dynamics of social network patterns and their impact on NHS. Second, The authors only focused on advice-seeking social networks and did not examine other types of social networks such as friendship and trust networks. Third, the context was limited to one company in the media industry. Practical implications The authors provide recommendations to sales managers on how to leverage and influence social networks to minimize the development and flow of NHS in sales forces. Originality/value The findings advance existing knowledge on how NHS gets shared and transferred in sales organizations. Moreover, this study provides crucial managerial insights with regard to controlling and managing NHS in sales forces.

The cross-section of Johannesburg Securities Exchange listed equity returns (1994-2011)

2015 ◽  
Vol 32 (4) ◽  
pp. 422-444 ◽  
Author(s):  
Jakobus Daniel Van Heerden ◽  
Paul Van Rensburg
Keyword(s):  
Cross Section ◽  
Equity Returns ◽  
Research Approach ◽  
Momentum Effect ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Specific Factors ◽  
The Cross ◽  
The Impact

Purpose – The aim of this study is to examine the impact of technical and fundamental (referred to as firm-specific) factors on the cross-sectional variation in equity returns on the Johannesburg Securities Exchange (JSE). Design/methodology/approach – To reach the objective, the study follows an empirical research approach. Cross-sectional regression analyses, factor-portfolio analyses and multifactor analyses are performed using 50 firm-specific factors for listed shares over three sample periods during 1994 to 2011. Findings – The results suggest that a strong value and momentum effect is present and robust on the JSE, while a size effect is present but varies over time. Multifactor analyses show that value and momentum factors are collectively significant in explaining the cross-section of returns. The results imply that the JSE is either not an efficient market or that current market risk models are incorrectly specified. Practical implications – The findings of the study offers practical application possibilities to investment analysts and portfolio managers. Originality/value – To the authors’ knowledge, this is the first study to use such a comprehensive data set for the specific analyses on the JSE over such a long period. All previously identified statistical biases are addressed in this study. Different approaches are applied to compare results and test for robustness for the first time.

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.

Corporate social responsibility and financial performance nexus

2018 ◽  
Vol 9 (3) ◽  
pp. 301-328 ◽  
Author(s):  
Joseph Dery Nyeadi ◽  
Muazu Ibrahim ◽  
Yakubu Awudu Sare
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Positive Impact ◽  
Public Investment ◽  
Data Set ◽  
Content Type ◽  
The Public ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Impact

Purpose The paper aims to investigate empirically the impact of corporate social responsibility (CSR) on financial performance in South African listed firms. Design/methodology/approach The paper uses panel corrected standard errors to estimate the effect of CSR on firm financial performance and thus addresses contemporaneous cross-correlations across the panel cross sections. The study uses a broad base measure of CSR created by the Public Investment Corporation data set and the combination of accounting and economic means of measuring firm financial performance. Findings CSR is found to have a strong positive impact on firm financial performance in South Africa. When CSR is decomposed further into its major components, governance performance positively impacts a firm’s financial performance with no evidence of any relationship between social components and firm performance and between environmental components and firm performance. The positive impact of CSR on firm performance is greater in big firms. At the industry level, CSR is noticed to impact positively on financial performance in the extractive industry via good governance and responsible environmental behaviors. It however has no impact on firm performance in the financial sector. Research limitations/implications The results should be interpreted with caution and some limitations. Due to the limiting nature of the Public Investment Corporation data set (the survey was carried out on selected firms on the Johannesburg Stock Exchange for three years spanning from 2011 to 2013). This resulted in a sample of 56 firms. It is therefore very problematic to generalize the findings to a larger population over a long period of time. This is more limiting especially on individual sector studies where the sample has further shrunk to a smaller sample. As a result of the smaller sample size, the authors were unable to explore some other sectors which could have given more revealing findings. The authors recommend that future research should explore other data sets or use primary data approach that can allow for more sample size and elongated time period for a more holistic view and for easy generalization of the findings. The authors also identify an important lacuna necessitating further research effort. It would be interesting to empirically examine the threshold point of firms’ size beyond which CSR damages firms’ performance. Knowledge of this will guide managers of firms in their strategic CSR decision. Practical implications This study does not only serve as a reference work for subsequent investigations into the impact of CSR on firm performance in sub-Saharan Africa but also serves as a guide to policymakers on the financial impact of CSR adoption. Originality/value This study is one of the pioneering works that comprehensively examines the effect of CSR on financial performance amongst South African firms via size and sector and also controls for contemporaneous cross-correlation effects from the firms in the panel set.

Does institutional ownership engagement matter for greater financial performance?

2019 ◽  
Vol 61 (2) ◽  
pp. 359-383
Author(s):  
Brahmadev Panda ◽  
N.M. Leepsa
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Developing Economies ◽  
Institutional Ownership ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Pressure Sensitive ◽  
The Impact

Purpose Previous empirical evidence scrutinizing the impact of the institutional ownership on the firm performance has produced inconclusive results and mostly concentrated in the developed market. Hence, the purpose of this paper is to assess the impact of the ownership engagement by pressure-resistant, pressure-sensitive and foreign institutions on the corporate financial performance in a developing market like India post US financial crisis. Design/methodology/approach This study considers a panel data set of 361 Indian listed firms from National Stock Exchange (NSE) 500 index for a period of eight years from financial year (FY) 2008-2009 to FY 2015-2016. The panel data regression (pooled ordinary least square [OLS], fixed-effect [FE] and random-effect [RE]) and simultaneous equation modeling are used by considering the institutional ownership engagement as both exogenous and endogenous variable. Findings The test results show that institutional ownership engagement by the pressure-resistant and foreign institution have a robust and positive effect, while ownership engagement by the pressure sensitive institution has an adverse impact on the financial performance of the Indian listed firms. Research limitations/implications The findings will boost the monitoring activities of the institutional owners in the developing markets. The investment from pressure-resistant and foreign institutions needs to be augmented in Indian firms to improvise their governance functions and performance. Originality/value This research will enrich the governance literature of the developing economies as the studies on institutional ownership engagement are limited in the developing world. Further, this study adds value by capturing two emerging institutional ownership category such as the pressure-resistant and pressure-sensitive, which are still untouched in the Indian context. Next, the consideration of the institutional ownership as both exogenous and endogenous is also novel to the Indian literature.

Sign in / Sign up

Export Citation Format

Share Document