Mixed-gender ownership and financial performance of SMEs in South Africa

2016 ◽  
Vol 8 (2) ◽  
pp. 117-136 ◽  
Author(s):  
Beatrice Desiree Simo Kengne
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Negative Impact ◽  
Firm Survival ◽  
Industrial Sector ◽  
Individual Characteristics ◽  
Small Sample ◽  
Gender Composition ◽  
Content Type ◽  
Mixed Gender

Purpose The purpose of this paper is to investigate whether the presence of women among owner-stakeholders affects firms’ financial performance. Particularly, it extends the corporate governance literature by linking stakeholder theory and gender differences to explain why gender composition of ownership matters for firms’ performance. As the management of small and medium-scale enterprises (SMEs) revolves around owner-managers and their individual characteristics that are likely to affect their achievements, the study further investigates the relationship between the gender composition of ownership and the firm survival. Design/methodology/approach Using survey data on SMEs for 2007 and 2010, this study uses a panel-level heteroskedasticity technique and a probit methodology to assess the effect women’s presence among owners may exert on SMEs performance and survival, respectively. Findings Results indicate that firms jointly owned by men and women appear to perform better than those owned by men although the presence of women among owners does not correlate with firm survival. Research limitations/implications While the findings of this study shed some light on the performance impact of gender composition of firm ownership, reports based on the presence of women among owners may not present the full picture. Whether the ownership is shared equally between different genders might provide further insides on the magnitude and/or robustness of such effect. Moreover, a small sample period (T = 2) was used to analyse a single industrial sector (manufacturing), and even though the Hausman test confirmed the use of random-effects specification, caution should be taken when generalizing the findings to other cases. Practical implications The findings suggest that the leadership in mixed-gender context propels a perspective of women as a valuable resource within SMEs, but relying on it to sustain the survival would be unwise. Social implications South Africa scores particularly high on positive actions towards women entrepreneurship, and this is compounded in the SMEs sector by managerial attitudes that could offer positive developments for women. Originality/value The positive and significant relationship between women’s presence among owners and SMEs financial performance in South Africa complements the almost exclusively reported negative impact of gender diversity on firm performance. Consequently, mixed-gender owners’ team can be used as a fulcrum to promote SMEs growth in South Africa.

scholarly journals An empirical analysis of construction organisations’ competitive strategies and performance

2015 ◽  
Vol 5 (4) ◽  
pp. 417-431 ◽  
Author(s):  
Luqman Oyekunle Oyewobi ◽  
Abimbola Oluwakemi Windapo ◽  
Rotimi Olabode Bamidele James
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Research Approach ◽  
Competitive Strategies ◽  
Content Type ◽  
Study Results ◽  
Financial Performance Measures ◽  
Executive Officers

Purpose – The essence of strategy formulation is to assist an organisation obtain a strategic fit with its environment and help enhance organisational continuous improvement in achieving performance excellence. The purpose of this paper is to investigate the type of competitive strategies used by construction organisations in attaining their strategic goals in South Africa. Design/methodology/approach – The study employs an inductive research approach using a well-structured questionnaire to elicit information from large construction organisations based in South Africa. Findings – The research identifies five strategic attributes that could assist organisations to grow their businesses and enhance their returns. It reveals that all Porters’ generic competitive strategies are significantly related to organisational financial performance measures except focus strategy. The research found that three generic competitive strategies are positively related to non-financial performance and that differentiation and cost-leadership strategies are capable of assisting organisations’ achieve their financial performance goals. Practical implications – The study results will be of immense benefit to chief executive officers as well as managers of construction organisations in growing their businesses and enhancing their corporate performance. Originality/value – The paper contributes both theoretically and empirically to the current discussion and findings on competitive strategy and its relationship with organisational performance. The results presented in the paper have important implications for the implementation of competitive strategies in construction companies and future studies in the area of strategic management.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

Reconsidering criminal law-based liability for corporations and directors in South Africa

2019 ◽  
Vol 26 (4) ◽  
pp. 1085-1094
Author(s):  
Herbert Kawadza
Keyword(s):  
South Africa ◽  
South African ◽  
Criminal Law ◽  
Negative Impact ◽  
Criminal Liability ◽  
Annual Reports ◽  
Content Type ◽  
Criminal Sanctions ◽  
Fresh Perspective ◽  
African Context

Purpose It is recognised that the mere proscription of corporate offences is not adequate to deter misconduct or engender compliance. There is a need for the enforcement of the rules through robust culture-changing sanctions. The purpose of this paper is to demonstrate the inadequacies of criminal law liability in ensuring compliance with ethical corporate conduct in South Africa. Design/methodology/approach This paper is purely qualitative. For expository purposes, it draws from the Criminal Procedure Act, 51 of 1977 as well the corporate criminality enforcement trends and data from the National Prosecutions Agency’s annual reports to demonstrate that much as criminal liability is enshrined in a statute it has, however, not yielded the expected results. It situates the debate within the broader economic criminological scholarship. Findings This paper argues that even though the option of prosecuting corporations and directors is part of South African law, many corporate offences are not brought into the criminal justice system. Judging by its erratic imposition, criminal liability has failed to express the indignation and condemnation that are normally attached to criminal sanctions. Several reasons account for this. These include evidentiary, legal, technical and definitional complexities of some corporate offences, which lead to them being regarded as “unprosecutable crimes”. This has a negative impact on enforcement. Originality/value This paper is novel because it approaches the debate from a fresh perspective, economics and criminology. Not much scholarly attention has been devoted to analysing the efficacy of criminal sanctions in the South African context. This paper attempts to fill that gap.

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

Education strategy misfit, board effectiveness and Indonesian Islamic bank performance

2020 ◽  
Vol 11 (3) ◽  
pp. 929-944
Author(s):  
Rahma Wijayanti ◽  
Vera Diyanty ◽  
Sugiyarti Fatma Laela
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Supervisory Board ◽  
Least Square ◽  
Bank Performance ◽  
Board Effectiveness ◽  
Content Type ◽  
Islamic Bank ◽  
Education Strategy ◽  
The Impact

Purpose This study aims to provide empirical evidence on the contingency factors that affect the implementation of education strategies and the impact of education strategy misfit on the performance and effectiveness of the board’s moderating role on the misfit level and performance of Islamic banks. Design/methodology/approach This research is a quantitative study with pooled ordinary least square panel data during the years 2007-2014 from all Indonesian Islamic commercial banks. Islamic bank performances are measured by the level of profitability and sharia financial performance. Board effectiveness is analysed by measuring the effectiveness of both the board of commissioners (BoC) and the sharia supervisory board (SSB). Findings This study proves that organisational competent qualities and chief executive officer tenure are the contingency factors that affect the implementation of the education strategy. This study’s results indicate that the effectiveness of both the BoC and SSB has a positive impact on the bank’s profitability and sharia financial performance. The results also show that misfit has a negative effect on sharia financial performance and that board effectiveness is proved to reduce the negative impact of a misfit on sharia financial performance. However, there is no strong evidence that board effectiveness reduces the negative impact of a misfit on profitability. Originality/value This study emphasises the importance of enhancing the competence and innovation of organisations in the implementation of education strategy and the need for synergy and increased capabilities among board members to achieve well-established Islamic bank performance.

Integrated reports, external assurance and financial performance

2019 ◽  
Vol 11 (2) ◽  
pp. 317-350 ◽  
Author(s):  
Orhan Akisik ◽  
Graham Gal
Keyword(s):  
Financial Performance ◽  
North American ◽  
Small Sample Size ◽  
Panel Data Analysis ◽  
Small Sample ◽  
Global Reporting Initiative ◽  
Significant Positive Association ◽  
Content Type ◽  
Corporate Websites ◽  
The Impact

Purpose The purpose of this paper is to examine the relationship between integrated reports, external assurance and financial performance for North American firms between 2011 and 2016. Design/methodology/approach Corporate websites were examined for disclosures which included both financial and non-financial information. Compustat North America and Global Reporting Initiative (GRI) websites provided additional data for the analysis. Findings Using a panel data analysis, the results provide evidence that there is a significant positive association between integrated reports and multiple measures of financial performance. Moreover, this positive effect is enhanced when integrated reports are assured by accounting firms. Research limitations/implications There are relatively a small number of firms that do this kind of reporting. A major limitation of the study is the small sample size. Practical implications As stakeholders find information in integrated reports relevant, there needs to be standardization on their content and level of assurance. Standard setters and regulators should be involved in setting these standards and assurance guidelines. Social implications Although it is clear that there is a cost to firms which produce integrated reports, the benefits to society may outweigh these costs. This may go beyond the benefits to shareholders as they make investment decisions. Originality/value According to the knowledge of the authors, this is the first study that examines the impact of integrated reports and external assurance on financial performance for North American firms.

Do firm-specific risks affect bank performance?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Asad Mehmood ◽  
Hung Phu Nguyen ◽  
Tahar Tayachi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Content Type ◽  
Nonperforming Loans ◽  
Operational Risks ◽  
Bank Managers ◽  
The Impact

PurposeThe authors examine the impact of credit, liquidity and operational risks on the financial performance of commercial banks of South Asia.Design/methodology/approachData are extracted from DataStream of 76 commercial banks of four countries, i.e. Pakistan, India, Bangladesh and Sri Lanka for the period 2009–2018. The generalized method of moments (GMM) is used to analyze the results.FindingsAll three risks are significantly associated with financial performance. The authors find that Z-score positively affects the bank performance, whereas the nonperforming loans (NPLs) ratio has a negative impact on financial performance of bank. Liquidity risk analyses show the current and loan-to-deposit (LTD) ratios positively and negatively, respectively, affect financial performance. While operational risk positively affects financial performance. The authors further present the significant effects of joint occurrence of credit and liquidity risks on financial performance.Practical implicationsFor managing credit risk, banking management should ensure the policies for granting loans and timely reimbursement of the loan installments from customers. Bank managers should regularly monitor the liquidity position by maintaining the necessary levels of loans and deposits. Management should retain a healthy capital charge to meet operational risks.Originality/valueCredit, liquidity and operational risks are considered the most important categories of risk which are faced by financial institutions. To the best of the authors’ knowledge, this is the first study which investigates the impact of these risks on banks’ financial performance in selected South Asian countries. The results of this study have relevance and probable generalizability about the impact of risks on the performance of banks in emerging markets.

Ensuring environmental performance in green leases: the role of facilities managers

Facilities ◽  
2019 ◽  
Vol 37 (9/10) ◽  
pp. 527-549 ◽  
Author(s):  
Raufdeen Rameezdeen ◽  
Jian Zuo ◽  
Jorge Ochoa Paniagua ◽  
Anthony Wood ◽  
Phuong Do
Keyword(s):  
Information Asymmetry ◽  
Environmental Performance ◽  
Negative Impact ◽  
Professional Community ◽  
Small Sample ◽  
Future Research ◽  
Principal Agent ◽  
Facilities Management ◽  
Content Type ◽  
Principal Agent Problem

Purpose A green lease incorporates sustainability practices to reduce a building’s negative impact on the environment. Facilities managers play an important role in ensuring these best practices are implemented during the operational stage of a building; however, green leasing is an under-researched area in the emerging field of sustainable facilities management (SFM). This paper aims to investigate the common barriers encountered in ensuring environmental performance when a green lease agreement is in operation between a landlord and tenant. Design/methodology/approach This research was conducted in three stages using the principal-agent problem as the theoretical foundation for data collection. Stages 1 and 2 used semi-structured interviews to collect data with policy/corporate-level professionals, landlord and facilities management representatives who have considerable experience in green leases. Stage 3 used document reviews based on summative content analysis to further evaluate the extent of the contextual use of green leasing concepts as used within the facilities management community. Findings The study confirmed a strong incentive gap and information asymmetry between the landlord and facilities manager, forming a typical double principal-agent problem when the split incentives between the landlord and tenants are also taken into consideration, which results in agents acting on their own self-interest rather than the interests of the principal. Goal alignment is found to be key for the successful operation and management of a building throughout its life; when present, these goal conflicts can lead to disharmony between the parties to the contract. Research limitations/implications The study proposes a few practical measures to close the gaps in incentive and information asymmetry that create the principal-agent problem, while providing recommendations to the facilities management professional community. These recommendations could be included in future revisions of the SFM guidelines or code of practices used by the industry. Although this study exposed a rather neglected area of the facilities manager’s role in green leases, the findings are limited by the relatively small sample size used for the interviews. Originality/value This study contributes to the SFM body of knowledge from a green lease perspective, and the theoretical framework in the double principal-agent problem introduced in the study could be used in future research endeavours.

The economic and pricing impact of authorized generic medicines in South Africa

2015 ◽  
Vol 9 (1) ◽  
pp. 20-35 ◽  
Author(s):  
Shelley-Ann Marion McGee
Keyword(s):  
South Africa ◽  
Market Share ◽  
Negative Impact ◽  
Generic Competition ◽  
Content Type ◽  
Significance Level ◽  
Generic Entry ◽  
Market Shares ◽  
Two Samples ◽  
Significant Difference

Purpose – This paper aims to examine whether authorized generics (AGs) have influenced prices and market shares in markets for molecules facing generic competition in South Africa. AGs (clones), which are identical to the originator brands, offer a solution for originator companies to protect their markets from independent generic (IG) competition. IG competitors have claimed that AGs have a negative impact on pricing and competition. Design/methodology/approach – In a retrospective analysis, pricing and quantity data for 24 months post generic entry were extracted for oral solid dosage form products which experienced generic entry into their markets between 2005 and 2011, divided into “Authorized generic affected” and “no authorized generic” markets. A series of indices was calculated, as well as market shares of competing originator and generic products, and the number of generic competitors determined. Indices and market share data for clone affected and unaffected groups were tested at 6, 12, 18 and 24 months using unmatched t-tests, at a 95 per cent significance level. Findings – None of the evaluated pricing indices showed a consistently significant difference existing between AG-affected and no-AG samples. The only variable for which the two samples consistently differed was market shares, with originator brands experiencing significantly more market share erosion in AG-affected markets. Pricing levels of generics and originator products as well as growth of numbers of generic competitors were similar in both AG-affected and no-AG groups. Originality/value – A study of this nature on the impacts of AGs in the South African generics has not been previously published and reflects the situation particular to the country.

Vulnerability and agency work: from the workers’ perspectives

2015 ◽  
Vol 36 (6) ◽  
pp. 947-965 ◽  
Author(s):  
Robyn Cochrane ◽  
Tui McKeown
Keyword(s):  
Work Experience ◽  
Small Sample Size ◽  
Individual Characteristics ◽  
Small Sample ◽  
Computer Assisted ◽  
Apparent Contradiction ◽  
Content Type ◽  
Nonstandard Work ◽  
Template Analysis ◽  
Social Vulnerabilities

Purpose – The notion of worker vulnerability is often seen as synonymous with disadvantage in discussions of nonstandard work. The purpose of this paper is to separate and examine these two notions by considering economic, social and psychological perspectives and exploring the reality as experienced by agency workers. Design/methodology/approach – In total, 178 Australian clerical agency workers employed by eight agencies completed a mail questionnaire. Personalised responses were subjected to computer-assisted template analysis. Findings – Sample characteristics revealed a gendered and heterogeneous workforce. Findings showed evidence of economic, psychological and social vulnerabilities although favourable features were also reported. This apparent contradiction suggests linkages between the features of nonstandard work, worker preferences, individual characteristics and the experience of worker vulnerability. Research limitations/implications – The notion of varying degrees of worker vulnerability offers a new lens to investigate agency work. The relatively small sample size, focus on clerical work and features of the Australian context may limit generalisability. Practical implications – Findings demonstrate the nature and extent of agency worker vulnerability which allows us to offer policy interventions for governments, agencies and user organisations and insights for prospective agency workers. Originality/value – The widespread use of agency workers provides an imperative for frameworks to assess the nuances of the agency work experience. This study presents the reality of agency work as experienced by the workers and reveals the good and bad aspects of agency work.

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