The moderating effects of a board of directors on FDI’s international diversification in Turkey

2015 ◽  
Vol 23 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Kader Şahin ◽  
Seyfettin Artan ◽  
Seda Tuysuz
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
International Diversification ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Outside Directors ◽  
Moderator Variable ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose – This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey. Design/methodology/approach – A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey. Findings – The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance. Research limitations/implications – The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings. Practical implications – The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is. Social implications – One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership. Originality/value – These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.

The moderating effects of environmental risk of the industry on the relationship between corporate environmental and financial performance

2016 ◽  
Vol 17 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Natalia Semenova ◽  
Lars G. Hassel
Keyword(s):  
Financial Performance ◽  
Environmental Impacts ◽  
Environmental Risk ◽  
Environmental Performance ◽  
Energy Use ◽  
Operating Performance ◽  
Market Value ◽  
Moderating Effects ◽  
Content Type ◽  
The Relationship

Purpose – Industries differ in their environmental impacts, such as emissions, water and energy use, fuel consumption and hazardous wastes, which will have implications for how environmental performance translates to operating performance and market value at company level. By incorporating industry-specific differences of environmental impacts, this paper includes industry-level environmental risk as a moderating factor on the relationship between two indicators of corporate environmental performance (CEP) (management and policy) and corporate financial performance (profitability and market value). The paper aims to discuss these issues. Design/methodology/approach – Using panel data of US companies across all industries, the paper empirically tests a regression model, which includes an interaction effect representing both the form and strength of dependency of CEP on the environmental risk of the industry. The paper adopts the natural resource based theory to argue that financial returns are a decreasing function of CEP in high environmental impact industries, where environmental spending beyond compliance is costly and there is not much opportunity for consumer orientation. Findings – The results show that environmental management has different impacts on operating performance at high and low environmental risk of the industry (form of relationship) while environmental policy (reporting) has a stronger signal on market premium in industries with low rather than high environmental risk (strength of relationship). Differences in both form and strength of moderating effects are demonstrated. Research limitations/implications – Further research can introduce other industry-specific moderating factors, such as the disclosure maturity of the industry and the institutionalization of environmental disclosures across boarders in the industries, in order to explore the complexity of the relationship. Practical implications – The results of the paper are relevant to investors, company managers and a broad group of stakeholders when considering both industry- and company-level environmental risks. Originality/value – Previous studies have relied on controlling for industry membership. This paper uses an industry-specific environmental variable, environmental risk of the industry, to examine the form and strength of moderating effects.

scholarly journals Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

2021 ◽  
Vol 14 (8) ◽  
pp. 354
Author(s):  
Matteo Rossi ◽  
Jamel Chouaibi ◽  
Salim Chouaibi ◽  
Wafa Jilani ◽  
Yamina Chouaibi
Keyword(s):  
Financial Performance ◽  
Potential Effect ◽  
Moderating Effect ◽  
Governance Mechanisms ◽  
Board Characteristics ◽  
Thomson Reuters ◽  
Corporate Social ◽  
The Relationship ◽  
Source Of Information

This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.

scholarly journals MODERATING EFFECT OF FINANCIAL PERFORMANCE ON THE RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND DIVIDEND POLICY OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 34-48
Author(s):  
Alawiyya Ilu ◽  
◽  
Yunusa Ibrahim ◽  
Binta Nuhu ◽  
◽  
...  
Keyword(s):  
Financial Performance ◽  
Dividend Policy ◽  
Moderating Effect ◽  
Policy Implications ◽  
Board Composition ◽  
Board Size ◽  
Board Diversity ◽  
Board Characteristics ◽  
Financial Firms ◽  
The Relationship

The study analyses the moderating effect of financial performance on the relationship between board characteristics and dividend policy of listed non-financial firms in Nigeria. Board characteristics is proxied by board composition, board size, and board diversity, while dividend policy is proxied by dividend pay-out ratio. The positivist research paradigm and correlational research design were used. Relevant data for the study were collected from 39 sampled non-financial firms actively trading on the floor of the Nigerian stock exchange (NSE) from 2008 to 2017; the data collected were analysed using the panel corrected standard error (PCSE) regression analysis. The findings reveal that board composition and board diversity have positive but insignificant effect on dividend pay-out ratio of non-financial firms before moderation, While, board size has positive and significant effect on dividend policy of listed non-financial firms before moderation. The study also found that financial performance moderate the relationship between board characteristics and dividend pay-out ratio of listed non-financial firms. Based on the findings, the study concludes that board composition and board size are related with high dividend payment. Among the important policy implications is that the variable of board size used suggest that there is the need by SEC to monitor the available cash at the discretion of managers since financial performance can moderate the relationship between board size and dividend pay-out ratio in order to mitigate agency conflict between management and shareholders of listed non-financial firms which is in-line with the practical problem of the study. It is therefore recommended amongst others that the government through the regulators should provide an enabling environment for non-financial firms to make a profit and pay more dividends to their shareholders since the interaction effect of financial performance makes the variables of the study to be more active in influencing the dividend pay-out ratio of non-financial firms in Nigeria.

The moderating effects of gender and income between leadership and quality of work life (QWL)

2018 ◽  
Vol 30 (3) ◽  
pp. 1419-1435 ◽  
Author(s):  
Derya Kara ◽  
Hyelin (Lina) Kim ◽  
Gyumin Lee ◽  
Muzaffer Uysal
Keyword(s):  
Leadership Styles ◽  
Transactional Leadership ◽  
Leadership Style ◽  
Moderating Effect ◽  
Quality Of Work Life ◽  
Moderating Effects ◽  
Content Type ◽  
Quality Of Work ◽  
The Relationship

Purpose The purpose of this study is to explore the moderating effects of gender and income on the relationship between leadership style and quality of work life (QWL). This study provides meaningful implications for the hospitality industry in terms of gender and income between leadership and QWL. Design/methodology/approach Data are collected from five-star hotel employees (n = 443) in Turkey. The hypotheses are tested using hierarchical linear regression. The independent and dependent variables used to test the hypotheses involving the dependent variable of QWL are centered prior to the empirical analysis to avoid potential multicollinearity. Findings Transformational and transactional leadership styles were significant predictors of QWL, controlling for the demographic variables (i.e. age, employment statistics and education level), but gender and income were not significant antecedents of QWL. When it comes to the interaction effect of leadership styles and gender, gender showed a statistically significant moderating effect between transformational leadership and QWL, but not between transactional leadership and QWL. Income had a statistically significant moderating effect between both leadership styles and QWL. Practical implications The findings of the study potentially affect hotel management by identifying the moderating effect of gender and income of the employees and demonstrating how quality of life of the employees can be improved by leadership styles of managers. Originality/value Previous literature has addressed the issue of leadership and its outcomes. However, there has been limited research on examining the relationship among gender, income, leadership style and QWL in the case of hospitality management.

Moderating effect of bank size on the relationship between financial soundness and financial performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Njagi Kirimi ◽  
Samuel Nduati Kariuki ◽  
Kennedy Nyabuto Ocharo
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Management Practices ◽  
Banking Sector ◽  
Optimal Level ◽  
Moderating Effect ◽  
Content Type ◽  
Study Results ◽  
Financial Soundness ◽  
The Relationship

PurposeThis study analyzed the moderating effect of bank size on the relationship between financial soundness and financial performance of commercial banks in Kenya.Design/methodology/approachThe study employed data from 39 commercial banks for ten years from 2009 to 2018. Panel data regression model was used to analyze data.FindingsThe study results established a negative moderating effect of bank size on the relationship between commercial banks' financial soundness and net interest margin (NIM) and return on assets (ROA) with the results indicating a correlation coefficient of −0.1699 and −0.218, respectively. However, an absence of moderating effect was established when return on equity (ROE) was used as a measure of financial performance.Practical implicationsThe paper finding recommends that banks' management and other policy makers should consider the effect of bank size while devising financial soundness policies to ensure optimal level of banks' financial soundness aimed at improving banks' financial performance. In addition, bankers associations should come up with policies to standardize asset quality management practices to ensure continuous positive performance of the banking sector.Originality/valueThe study shows the contribution and applicability of the theory of production in the banking sector.

scholarly journals The impact of board characteristics on the financial performance of Tanzanian firms

2018 ◽  
Vol 18 (6) ◽  
pp. 1089-1106 ◽  
Author(s):  
Modest Paul Assenga ◽  
Doaa Aly ◽  
Khaled Hussainey
Keyword(s):  
Financial Performance ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Resource Dependence Theory ◽  
Outside Directors ◽  
Content Type ◽  
Board Characteristics ◽  
Dependence Theory ◽  
Foreign Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories, namely, agency theory and resource dependence theory. Design/methodology/approach The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports, and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell and Plano Clark, 2011) to integrate quantitative and qualitative data. Findings It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles, they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification and foreign directors. Practical implications The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms. Originality/value The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

The joint effect of board characteristics on financial performance

2015 ◽  
Vol 14 (1) ◽  
pp. 20-40 ◽  
Author(s):  
Hayam Wahba
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Joint Effect ◽  
Governance Mechanisms ◽  
Content Type ◽  
Board Characteristics ◽  
Corporate Governance Mechanisms ◽  
Leadership Structure ◽  
Board Leadership Structure ◽  
The Relationship

Purpose – This paper aims to investigate the joint effect of board characteristics on financial performance. Most of the existing literature implicitly assumes that the relationship between either board composition, or board leadership structure and financial performance is direct. Design/methodology/approach – The generalized least squares method was performed as a panel data analysis on a sample of 40 Egyptian listed firms during the period from 2008 to 2010. Findings – The results demonstrated that under board leadership structure that assigns the duties of the CEO and chairman to the same person, increasing the proportion of non-executive members to the total number of directors has a negative impact on firm financial performance. Practical implications – First, corporate governance structures do not operate in a vacuum, and therefore, corporate governance mechanisms must be considered and assessed altogether. Second, failure to understand the underlying interdependency among corporate governance mechanisms may result in arguments that blame some corporate governance designs for poor financial performance. Third, there is no single board governance mechanism that can be considered ideal, but there are combinations of these mechanisms that are preferred. Originality/value – The paper adds to the corporate governance literature by providing empirical evidence from the emerging market of Egypt. The evidence shows that the relationship between board characteristics and financial performance is not a monotonic relationship. Consequently, these findings imply that existing evidence explaining the relationship between board characteristics and financial performance needs to be interpreted with some caution.

scholarly journals Are listed firms better governed? Empirical evidence on board structure and financial performance

2015 ◽  
Vol 13 (1) ◽  
pp. 736-755 ◽  
Author(s):  
Cesario Mateus ◽  
Thomas Hall ◽  
Irina B. Mateus
Keyword(s):  
Financial Performance ◽  
Prima Facie ◽  
Board Structure ◽  
Outside Directors ◽  
Firm Level ◽  
Listed Firms ◽  
Board Characteristics ◽  
Leadership Structure ◽  
The Relationship ◽  
Unlisted Firms

We examine the relationship among board characteristics (network centrality, leadership structure, outsider participation, portion of male directors, director age, and presence of financial experts) and firm-level financial performance (cash holdings, leverage, ROA, risk, and risk-adjusted return). Our data encompass firms from eight countries during 2003-2012. Unlisted firms are smaller and have less leverage. Despite the fact that unlisted firms have prima facie better average governance (they are less likely to have an executive chair (or CEO as chair of the board) and a higher average portion of outside directors), they exhibit worse risk-adjusted returns. Higher levels of director connectedness (centrality) are generally associated with more observable entrenchment (more cash, less leverage), whereas other board characteristics do not show clear relationships with entrenchment. Our findings are consistent with the view that firmly established CEOs are willing and able to pack the board with qualified and connected members, who nevertheless do not act to constrain CEO entrenchment. This is true for both listed and unlisted firms

Moderating effects of age on personality, driving behavior towards driving outcomes

2019 ◽  
Vol 12 (2) ◽  
pp. 91-104
Author(s):  
Siti Haerani ◽  
Rika Dwi Ayu Parmitasari ◽  
Elsina Huberta Aponno ◽  
Zany Irayati Aunalal
Keyword(s):  
Structural Equation ◽  
Traffic Accidents ◽  
Driving Behavior ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Content Type ◽  
South Sulawesi ◽  
Driving Outcomes ◽  
The Relationship

Purpose The purpose of this paper is to identify the effect of people’s personality on driving behavior and traffic accidents and violations in the province of South Sulawesi. Design/methodology/approach This research was conducted in order to determine the moderating effects of age on the relationship between personality variables, driving behavior and driving outcomes. The research was conducted over two years. For the first year of this study, research was conducted in the city of Makassar, the capital of the South Sulawesi province, which has the highest volume of accidents compared to other districts/cities in South Sulawesi. The approach used in conducting the data analysis was a quantitative approach; the inferential statistical analysis method of analysis used to test the hypothesis of the research was structural equation modeling. Findings The results of the analysis show that age is a moderating variable in the relationship between personality, driving behavior and driving outcomes. The higher the age, the stronger the influence of personality on driving behavior and driving outcomes, and the stronger the effect of driving behavior on driving outcomes. Originality/value Originality for this paper is shown as follows: using age on personality has a moderating effect on the relationship between driving behavior and driving outcomes; and the research would implicate driving behavior and inclined factors from the eastern part of Indonesia, since most research works were conducted in the western part of Indonesia and they hardly considered the moderating effect of age.

The effect of residents’ perception of hotel social responsibility on overall attitude toward tourism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erhan Boğan ◽  
Bekir Bora Dedeoğlu ◽  
Sevgi Balikçioğlu Dedeoğlu
Keyword(s):  
Social Responsibility ◽  
Structural Equation ◽  
Positive Impact ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Moderating Effects ◽  
Content Type ◽  
Demographic Attributes ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to investigate the moderating effects of residents’ demographic attributes on the relationship between perceptions of hotels’ social responsibility (HSR) practices and overall attitude toward tourism. Design/methodology/approach Perceptions of HSR were examined via social, economic and environmental dimensions. The research model was investigated with structural equation modeling and multigroup analyses. Findings The findings show that residents’ perceptions of HSR had a positive impact on their attitude toward tourism and that their demographic attributes had a moderating effect on this relationship. Originality/value Although there have been many papers on stakeholders’ returns to corporate social responsibility practices implemented by hotels, residents’ returns to these practices are insufficiently investigated. Moreover, to the best of the authors’ knowledge, there is no research on the moderating effect of residents’ demographic attributes on the relationship between perceived social responsibility and overall attitude toward tourism.

Sign in / Sign up

Export Citation Format

Share Document