scholarly journals The financial impact of a withdrawn ISO 9001 certificate

2016 ◽  
Vol 36 (1) ◽  
pp. 23-41 ◽  
Author(s):  
Carlos J.F. Cândido ◽  
Luís M.S. Coelho ◽  
Rúben M.T. Peixinho
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Financial Data ◽  
Financial Impact ◽  
Iso 9001 ◽  
Sales Growth ◽  
Return On Assets ◽  
Content Type ◽  
Return On Sales ◽  
The Impact

Purpose – The purpose of this paper is to assess to what extent the loss of the ISO 9001 certification affects the decertified firms’ financial performance. Design/methodology/approach – Using standard event study methods, this paper matches a sample of 143 Portuguese companies that lost their ISO 9001 certification with similar non-event counterpart firms (according to return-on-assets (ROA) and size) and compares the performance of these two groups of firms using financial data collected from the AMADEUS database. Findings – Results show no statistical significant differences in the financial performance (as measured by ROA, return-on-sales (ROS) and sales growth) between companies that lost their ISO 9001 certification and their matched firms. Although the literature suggests that certification improves firms’ performance and that the benefits of certification may last over long periods of time, this paper’s results suggest that, after decertification, companies do not exhibit over or underperformance in their operations vis-à-vis comparable firms that do not undergo the same event. Originality/value – As far as the authors are aware, this is the first study assessing the impact of ISO 9001 certificate withdrawal on the decertified firms’ financial performance.

Deferred revenue changes as a leading indicator for future financial performance

2017 ◽  
Vol 25 (4) ◽  
pp. 549-568 ◽  
Author(s):  
Ke Zhong ◽  
Fang Wang ◽  
Lihui Zhou
Keyword(s):  
Financial Performance ◽  
Stock Markets ◽  
Design Methodology ◽  
Profit Margin ◽  
Sales Growth ◽  
Return On Assets ◽  
Content Type ◽  
Market Participants ◽  
Future Performance ◽  
Leading Indicator

Purpose The purpose of this paper is to investigate whether deferred revenue changes can serve as a leading indicator for firms listed on China’s stock markets, and whether China’s market participants can appropriately incorporate future performance implications of deferred revenue changes. Design/methodology/approach Empirical/archival/regression analysis. Findings The authors find that deferred revenue changes are positively associated with the next two years’ sales growth, gross profit margin, profit margin, and return on assets, suggesting that deferred revenue changes can serve as a valid leading indicator for future financial performance. The authors also find that Chinese investors tend to underweight future performance implications of deferred revenue changes. Originality/value To the authors’ knowledge, this study is among the first research to examine deferred revenue changes as a leading fundamental indicator and market underreaction to reported accounting information for firms listed on China’s stock markets.

Currency risk impact on the financial performance of multilateral banks

2015 ◽  
Vol 13 (1) ◽  
pp. 91-118
Author(s):  
Philip Kamau ◽  
Eno L. Inanga ◽  
Kami Rwegasira
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Regression Coefficient ◽  
Policy Implications ◽  
Stock Exchanges ◽  
Currency Risk ◽  
Content Type ◽  
Regulatory Status ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the impact of currency risks on the financial performance of multilateral banks (MBs). Financial performance is measured here by after-tax accounting profitability or losses. Design/methodology/approach – Quantitative hypothesis regarding the impact of currency risks on the financial performance of MBs was tested by a two-tailed t test for significance of the b regression coefficient. Findings – A regression analysis was done on the total currency risk and financial performance of MBs after taking into account currency risk over eight years. The analysis of variance of the regression of the b coefficient led to non-rejection of the null hypothesis of no association, F(1, 6) = 0.77, p > 0.05. The results of the two-tailed t test on the b regression coefficient suggest that the relationship between currency risk and financial performance is statistically insignificant. Therefore, it was concluded that there is no significant impact of currency risk on the financial performance of MBs. Research limitations/implications – The results of the study can be generalized only for MBs given their peculiar characteristics as wholesale banks, which are owned mainly by governments and are generally not listed on stock exchanges. Originality/value – The study is of value to those interested in the multilateral banking industry. To the authors’ knowledge it is the first study providing empirical evidence on currency risk impact on MBs financial performance. The study finds that the currency risk impact on the financial performance of MBs is insignificant. The results are also useful to managers of MBs in terms of benchmarking their effectiveness in managing currency risk compared to their peers and learn from better performers. It has also policy implications in terms of justifying the current self-regulatory status, shareholder monitoring and governance of MBs as they are not significantly impacted by currency risk as it appears to be effectively managed.

scholarly journals IMPACT OF SELECTED DETERMINANTS OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF COMPANIES

2020 ◽  
Vol 14 (2) ◽  
pp. 12-23
Author(s):  
Janka Grofcikova
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Return On Assets ◽  
Return On Equity ◽  
Return On Sales ◽  
The Impact

The role of corporate governance (CG) is to ensure functioning of companies in accordance with their formulated objectives to ensure growth of corporate assets and satisfaction of the owners. In addition to management of the company, there are other stakeholders whose interests need to be considered in meeting the owners' objectives. These include creditors, employees, clients, and the wider context of the business. The aim of this paper is to explore and compare the impact of selected financial and non-financial determinants representing the interests of these groups on corporate financial performance. The influence of determinants of CG on financial performance, measured by return on assets (ROA), return on equity (ROE) and return on sales (ROS) indicators, is investigated by means of correlation analysis. The sample of enterprises used consists of non-financial joint-stock companies listed on the Bratislava Stock Exchange, insurance companies, and banks based in Slovakia. The findings show that each of the investigated determinants of CG affects financial performance of companies. ROA, ROE and ROS of share issuers are significantly influenced by the total equity (EQ), average remuneration (AR) and number of the Board of Supervisor members (BSM). With banks, performance indicators are only influenced by total personal costs (PC). ROA, ROE and ROS of all companies are influenced by the dividend ratio (DR), EQ, AR and BSM.

The financial impact of retail store closure announcements

2017 ◽  
Vol 47 (6) ◽  
pp. 536-556 ◽  
Author(s):  
Jaideep Chowdhury ◽  
Sourish Sarkar
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Retail Store ◽  
Financial Impact ◽  
Sales Growth ◽  
Content Type ◽  
Abnormal Stock Returns ◽  
The Impact ◽  
Closure Decisions

Purpose While store closure announcements frequently appear in newspapers, little is known about the financial impact of store closure decisions on the retailer’s market value. The purpose of this paper is to investigate the stock market reaction to the announcements of retail store closure decisions. Design/methodology/approach The authors collect data from news articles on store closure announcements in the USA during 1995-2016. Using the four-factor model in an event study, the authors compute the abnormal stock returns for the retail firms due to these announcements. Findings Based on the authors’ analysis for sample and matching control firms, the abnormal stock returns for store closure announcements are found to be positive overall. The authors find evidence that the positive effects of the announcements are stronger, particularly for the firms which have positive sales growth at the time of the announcements. The authors also report that industry competition acts as a negative moderator in the relationship between announcements and financial impacts. Practical implications The authors’ analysis implies the investors’ positive sentiment of store closure announcements as a viable cost-cutting strategy, especially when it is done proactively by better performing retailers. The findings should be useful to the supply chain managers of retail industries in making store closure decisions. Originality/value This paper is believed to be the first to address the impact of retail store closure announcements on the stock market. The authors’ approach of categorizing the firms based on their sales growth seems to be the first in the event study literature on corporate restructuring.

Corporate governance guidelines compliance and firm financial performance

2016 ◽  
Vol 31 (8/9) ◽  
pp. 891-914 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson M. Waweru
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Design Methodology ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the impact of compliance with corporate governance (CG) guidelines during the period 2002-2014 on firm financial performance and firm value of Kenyan-listed companies. Design/methodology/approach Using panel data of 520-firm year’s observations between 2005 and 2014, the authors test the hypothesis that compliance with CG guidelines issued in 2002 by Capital Markets Authority (CMA) improved firm financial performance and firm value. Findings Compliance with CG Index which is an aggregate of all the CG guidelines is positively and significantly related to firm performance and firm value. Board evaluation is also positively and significantly related to firm performance. The findings suggest that CG guidelines are associated with firm financial performance and firm value. Originality/value The authors provide evidence on the relationship between CG practices and firm financial performance and firm value in Kenya. Second, the authors provide evidence on board evaluation which has not been tested before in a “comply or explain” environment. Finally, they evaluate how CMA 2002 CG guidelines steered firm financial performance and firm value over its life cycle from 2002 to 2014. These results are important to CMA and other CG regulators and boards in their efforts to improve CG practices in the region.

The impact of financial support from non-resident family members on the financial performance of newer agribusiness firms in India

2018 ◽  
Vol 8 (2) ◽  
pp. 303-319 ◽  
Author(s):  
Amarjit Gill ◽  
Harvinder Singh Mand ◽  
John D. Obradovich ◽  
Neil Mathur
Keyword(s):  
Financial Performance ◽  
Financial Support ◽  
Design Methodology ◽  
Family Members ◽  
Content Type ◽  
Management Consultants ◽  
Internal Financing ◽  
Perceived Impact ◽  
The Impact ◽  
Better Than

PurposeThe purpose of this paper is to examine the impact of financial support from non-resident family members (FSNRFM) on the financial performance of newer agribusiness firms in India.Design/methodology/approachOwners of newer agribusiness firms (five years old or less) from India were surveyed regarding the perceived impact ofFSNRFMon the financial performance of newer agribusiness firms.FindingsThe results show that newer agribusiness firms withFSNRFMperform better than those withoutFSNRFM; and build higher levels of internal financing sources relative to the newer agribusiness firms withoutFSNRFM, which, in turn, improves their performance.Research limitations/implicationsThis is a co-relational study that investigated the association betweenFSNRFMand financial performance of newer agribusiness firms. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to firms similar to those that were included in this research.Originality/valueThe study enriches the literature concerning newer agribusiness firms and the factors that improve their financial performance. The results of this study can be of great significance for owners of these firms, financial managers, farm management consultants, and other stakeholders to understand the impact ofFSNRFMon financial performance of newer agribusiness firms.

The Impact of Corporate Culture Disclosure on Performance: A Quantitative Approach

2016 ◽  
Vol 19 (02) ◽  
pp. 1650012 ◽  
Author(s):  
Zhaorui Guo ◽  
Kam C. Chan ◽  
Yunkui Xue
Keyword(s):  
Corporate Culture ◽  
Negative Impact ◽  
Quantitative Approach ◽  
Sales Growth ◽  
Return On Assets ◽  
Earnings Growth ◽  
Earnings Benchmarks ◽  
And Performance ◽  
Return On Sales ◽  
The Impact

In this paper, we propose a quantitative approach to measure the extent of corporate culture disclosure. Using this new measure, we document that corporate culture disclosure and performance is positively correlated in terms of stock return, return on assets, cash flow, earnings growth, sales growth, return on sales, and turnover; corporate culture disclosure also helps to lower the negative impact of missing earnings benchmarks using a sample of Chinese firms. In addition, we find that the extent of corporate culture disclosure is negatively correlated with earnings management and operational risk exposure. Essentially, our comprehensive analysis provides a good illustration of using the method to measure corporate culture disclosure.

Exploring the governance committee: the trinity’s great forgotten

2019 ◽  
Vol 19 (2) ◽  
pp. 339-352 ◽  
Author(s):  
Jean-François Henri ◽  
Sylvie Héroux
Keyword(s):  
Financial Performance ◽  
Empirical Research ◽  
Design Methodology ◽  
Financial Data ◽  
Board Members ◽  
Board Effectiveness ◽  
Content Type ◽  
Governance Committee ◽  
Practical Implications

Purpose This paper aims to explore governance committee’s attributes in terms of composition, roles/duties and responsibilities and operations. Design/methodology/approach Information on the governance committee and the board in general was collected from the websites of 167 Canadian firms. Financial data were collected from the Sedar database. Findings Results uncover two patterns of governance committee attributes (composition, roles and operations), resulting in our characterization of governance committees as “less active” and “more active.” In light of additional analyses, the two groups also differ in terms of antecedents and impact. Practical implications This study can help board members to enhance board effectiveness by describing governance committee attributes and identifying contextual factors that could lead to a more active governance committee. In addition, it suggests that such committee can improve financial performance. Originality/value This empirical research focuses on the governance committee, a largely unexplored primary board oversight committee. An index comprising 19 duties and responsibilities performed by the governance committee was developed.

What happens if a business school disappears? The intellectual foundations of BSIS

2016 ◽  
Vol 35 (7) ◽  
pp. 878-888 ◽  
Author(s):  
Michel Kalika ◽  
Gordon Shenton ◽  
Pierre-Louis Dubois
Keyword(s):  
Information System ◽  
Business School ◽  
Design Methodology ◽  
Financial Impact ◽  
Methodological Issues ◽  
Content Type ◽  
Regional Community ◽  
Intellectual Foundations ◽  
The Impact ◽  
Home Territory

Purpose – The FNEGE and then EFMD have been interested in defining a methodology that would make it possible to highlight the impact of a business school on its home territory. This has led to the development of the “Business School Impact System” (BSIS), which is introduced in this paper. The paper aims to discuss these issues. Design/methodology/approach – The paper is structured as follows. The authors first present the methodological issues of the work that led us to develop the “BSIS” (EFMD, 2014). In a second section, the authors present BSIS in more detail. Findings – Based on the exploratory interviews and the literature review, the authors could first identify three main categories of impact: the financial impact; the impact on the regional community; and the impact on attractiveness and image. Originality/value – The first benefit of BSIS is linked to the creation of an information system on impact. Second, the BSIS process increases the awareness inside the business school regarding the significance of this issue. Third, the authors observe that for numerous members of the business school the question of the impact of their activity gives them a better image of their job, of what they are doing and why they are doing it. Fourth, the BSIS report constitutes a powerful tool for communication with the stakeholders. The final benefit lies in the reviewers’ recommendations on how to improve the impact of the business school.

Investment returns from reputation investing: do good firms provide good returns?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kristine L. Beck ◽  
James Chong ◽  
Bruce D. Niendorf
Keyword(s):  
Financial Performance ◽  
Corporate Reputation ◽  
Firm Value ◽  
Design Methodology ◽  
Information Ratio ◽  
Return On Assets ◽  
Content Type ◽  
Investment Returns ◽  
The Relationship ◽  
Measures Of Performance

PurposeThis study aims to examine whether a good corporate reputation leads to superior investment returns. Theory and empirics provide support for the idea that a good corporate reputation improves firm value, but much of the previous research fails to consider the risk of the companies they study and relies only on accounting measures of performance such as return on assets. A complete picture of the relationship between corporate reputation and shareholder value should include risk-adjusted returns and correlation with benchmark returns.Design/methodology/approachThe Harris Poll Reputation Quotient (RQ), based on the reputations of the 100 most visible companies, suggests that companies with a “solid reputation” are more likely to be attractive investments. The authors construct portfolios using deciles and the RQ categories, rebalancing annually as RQ rankings are updated. Returns are adjusted for risk using Jensen's alpha, the information ratio, the Sharpe ratio, Modigliani and Modigliani's M2 measure, and Muralidhar's M3 measure.FindingsThe results indicate that choosing a portfolio based on the highest RQ-ranked firms does outperform the market on a risk-adjusted basis, and that the relationship between rankings and time-weighted returns is roughly monotonic. The authors also observe that corporate reputation is persistent, and that the best and worst most-visible firms are more likely to be privately held.Originality/valueThis research adds to the literature by including both market-based return measures and risk in the examination of the relationship between corporate reputation and financial performance.

Sign in / Sign up

Export Citation Format

Share Document