Mediation effects financial performance toward influences of corporate growth and assets utilization

2019 ◽  
Vol 68 (5) ◽  
pp. 981-996 ◽  
Author(s):  
Sri Mangesti Rahayu
Keyword(s):  
Financial Performance ◽  
Significant Influence ◽  
Investment Decision ◽  
Secondary Data ◽  
Market Value ◽  
Corporate Financial Performance ◽  
Mediation Effects ◽  
Content Type ◽  
Corporate Growth ◽  
Operational Activities

Purpose The purpose of this paper is to measure the effects of corporate financial performance toward the influences of corporate growth and company asset utilization on the corporate market value. Design/methodology/approach This research is an explanatory research that describes the influences of one or more variables on other variables based on secondary data. This research took place in Indonesia and was carried out from 2011 to 2016. Findings The findings of this study are corporate growth has a significant influence on the corporate market value, implying that companies should consider the short-term and long-term profitabilities before making any investment decision; asset utilization has been confirmed to have a positive and significant influence on financial performance. Insights into asset utilization effectiveness and efficiency are important for company managers to consider in making strategic decisions upon operational activities of the company. Also, financial performance has a positive and significant influence on the corporate market value. Originality/value Research originality offered in this research is in the form of empirical evidence upon the influence of company asset utilization on the financial performance and corporate market value of a company. The finding of this research is expected to provide a better understanding on the role of company asset utilization in determining corporate financial performance which is known to be certain.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE DAN CORPORATE FINANCIAL PERFORMANCE TERHADAP CORPORATE SOCIAL RESPONSIBILITY (Studi pada Bank Umum Syariah di Indonesia)

2016 ◽  
Vol 2 (2) ◽  
pp. 136-151
Author(s):  
Maulidan Maulidan
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Significant Influence ◽  
Secondary Data ◽  
Corporate Financial Performance ◽  
Good Corporate Governance ◽  
Test Variable ◽  
Corporate Social

AbstractThe purpose of this research is to examine the influence of good corporate governance and corporate financial performance on corporate social responsibility. The data used in this study is secondary data. Samples were taken by purposive sampling method sample size obtained was 24 syariah general bank companies listed in bank Indonesia 2011-2013 . The analysis  technique used is multiple linear regression using SPSS 20.The study uses independent variable good corporate governance, corporate financial performance and dependent variable corporate social responsibility. the results of this study indicate that the simultaneous testing (F-test), variable good corporate governance, corporate financial performance have a significant influence on corporate social responsibility. in a partial test (T-test), variable good corporate governance size a have a significant influence on corporate social responsibility. while the variable corporate financial performance have no influence on corporate social responsibility. Keyword: good corporate governance, corporate financial performance, and                   corporate social responsibility.

scholarly journals Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model

2021 ◽  
Vol 13 (11) ◽  
pp. 6069
Author(s):  
Hong-Long Chen
Keyword(s):  
Financial Performance ◽  
Industry 4.0 ◽  
Structural Equation ◽  
Moderated Mediation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Bootstrap Sampling ◽  
Mediation Effects ◽  
Moderated Mediation Model

Many studies advance the contemporary technologies of Industry 4.0. However, relatively little is known about how Industry 4.0 affects corporate financial performance. Using a survey, bootstrap sampling, and structural-equation modeling, this study evaluates the moderated mediation effects of Industry 4.0 maturity on financial performance. The results show that Industry 4.0 maturity significantly affects internal business process performance (IBPP), which influences customer performance through the mediating effect of supply chain performance (SCP), and IBPP and SCP affect financial performance fully through the mediating effect of customer performance. The results also show that Industry 4.0 maturity moderates the positive relationship between customer performance and financial performance. Customer performance and IBPP have the largest direct and total effects on financial performance in the context of Industry 4.0 implementation, respectively. The results indicate that Industry 4.0 magnifies the potential returns to companies mainly through IBPP, SCP, and customer performance. This study offers an enhanced understanding of the financial implications of Industry 4.0 implementation and provides insights into the factors through which Industry 4.0 maturity influences financial performance.

scholarly journals THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

2020 ◽  
Vol 2 (2) ◽  
pp. 139
Author(s):  
Niko Silitonga
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Measurement Instrument ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Financial Policy ◽  
Public Ownership ◽  
The Relationship

<p align="center"><strong>Abstract</strong></p><p><em>The corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property &amp; Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange.</em> <em>The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.</em></p><strong>Keywords:</strong> <em>Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance</em>.

Business sustainability performance and corporate financial performance: the mediating role of optimal investment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ehsan Poursoleyman ◽  
Gholamreza Mansourfar ◽  
Saeid Homayoun ◽  
Zabihollah Rezaee
Keyword(s):  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Corporate Financial Performance ◽  
Investment Efficiency ◽  
Content Type ◽  
Business Sustainability ◽  
Large Sample ◽  
Sustainability Performance ◽  
Mediating Role

PurposeEmploying a large sample consisting of 3,701 corporations domiciled in developed and emerging countries, this paper aims to analyze the mediating role of investment efficiency in the association between business sustainability performance and corporate financial performance.Design/methodology/approachFour different aspects of corporate sustainability offered by the ASSET4 database are used as proxies for business sustainability performance, including economic, corporate governance, social and environmental dimensions. In addition to these aspects, the aggregate measure of business sustainability performance is also employed. In order to test the association between business sustainability and corporate performance via investment efficiency, ordinary least squares, fixed-effect, random-effect and generalized method of moments statistical models were employed.FindingsThe results suggest that business sustainability performance is positively associated with corporate financial performance, indicating that sustainable corporations enjoy higher financial performance. Moreover, Sobel, Aroian and Goodman tests confirm that investment efficiency mediates the positive relationship between business sustainability performance and financial performance. Finally, further analyses show that the positive association between sustainability performance and investment efficiency is stronger for those firms headquartered in developed countries than in those located in emerging nations.Originality/valueThis paper contributes to the literature by investigating how growth opportunities advance the influence of business sustainability to corporate financial performance using a large sample from 43 countries.

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.

scholarly journals Factors affecting the performance of Indonesian special food SMEs in entrepreneurial orientation in East Java

2019 ◽  
Vol 13 (2) ◽  
pp. 231-246 ◽  
Author(s):  
Benny Hutahayan
Keyword(s):  
Significant Influence ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Manufacturing Industry ◽  
Secondary Data ◽  
Research Area ◽  
Business Strategies ◽  
Primary Data ◽  
Literature Study ◽  
Content Type

Purpose This study aims to examine comprehensively the factors determining the performance of small and medium enterprises (SMEs) producing Indonesian special food in East Java. Design/methodology/approach This study is quantitative and qualitative. Primary data was collected from entrepreneurs in East Java, those producing Indonesian special food. Secondary data was obtained from the literature, literature study, journals, Central Bureau of Statistics and the office of industry, trade, cooperatives and SMEs in East Java. Areas selected for this study were Surabaya, Madiun, Malang, Pasuruan, Lamongan and Banyuwangi. The population was small and medium entrepreneurs producing Indonesian special food in the selected cities. Based on the PLS sampling rule, the number of samples in each research area was 50, with total of 300 respondents (50 × 6). The methods of collecting primary data were interviews and questionnaire. Data analysis was done using GSCA. Findings The study firstly found the significant influence of entrepreneurial orientation on business strategies of SMEs producing Indonesian special food in East Java. SME managers have a high entrepreneurial orientation. Secondly, it found a significant influence of entrepreneurial orientation on business performance of SMEs producing Indonesian special food in East Java. Thirdly, the study found that government policy is not a moderating variable. Additionally, business strategies have a significant influence on the performance of SMEs producing Indonesian special food in East Java. Finally, dynamics of the environment and business strategy have a significant influence on the performance of manufacturing industry in South Sulawesi. Originality/value To know the effect of entrepreneurial orientation, environmental dynamism, consisting of uncertainty of environment and intensity of competition, and business strategies toward business performance. Considering the findings of the previous studies, the authors would like to re-examine the effect of entrepreneurial orientation on business performance, which also compares the findings of previous studies, especially, the one by Lee and Tsang (2003) on SMEs in Singapore.

Development and validation of behavioral biases scale: a SEM approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ritika ◽  
Nawal Kishor
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Phase 1 ◽  
Secondary Data ◽  
Higher Order ◽  
Second Order ◽  
Individual Investors ◽  
Content Type ◽  
Behavioral Biases ◽  
Investment Decision Making

PurposeThis paper attempts to identify the biases in decision-making of individual investors. The paper aims to develop and validate a higher-order behavioral biases scale.Design/methodology/approachScale development is done by identifying the relevant items of the scale through existing literature and then, adding new items for some biases. In phase 1, using a structured questionnaire, data was collected from 274 investors who invest in financial markets. The major dimensions of the scale have been pruned by using exploratory factor analysis administered on data collected in phase 1. Higher-order CFA is used to analyze the data and to validate the scale on another set of data (collected in phase 2) containing 576 investors.FindingsThe study reveals that the scale for measuring behavioral biases has many dimensions. It has two second-order factors and 13 zero-order constructs. Two second-order constructs have been modeled on the basis of cause of errors in investment decision-making, that is, biases caused due to cognition, biases caused due to emotions.Originality/valueBehavioral biases are yet to receive a due attention, especially, in the Indian context. The present research is focusing on providing an empirically tested scale to test the behavioral biases. Some of the biases, which have been analyzed using secondary data in previous studies, have been tested with the help of statements in this study.

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 PENGARUH FIRM SIZE DAN FINANCIAL LEVERAGE TERHADAP FINANCIAL PERFORMANCE PADA PT. JAPFA COMFEED INDONESIA

2021 ◽  
Vol 1 (2) ◽  
pp. 45-54
Author(s):  
Sumarno Nano ◽  
Ade Ponirah ◽  
Nurudin Falah
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Significant Influence ◽  
Investment Decisions ◽  
Secondary Data ◽  
Financial Statements ◽  
The State ◽  
Financial Leverage ◽  
Investor Confidence ◽  
A Company

The company's financial performance is the first benchmark to build investor confidence. Describes the state of the company and can be a reference for investment decisions. This article aims to increase the influence of firm size and financial leverage on financial performance of PT.Japfa Comfeed Indonesia  firm size shows the size of a company. While financial leverage the proportion of debt usage to finance its investment. This article also uses descriptive methods and quantitative approaches, namely to describe the results of research whose data is presented in numerical form. The data in this article is secondary data taken from  financial statements PT. Japfa Comfeed Indonesia, Tbk. and supported by literature and documentation studies, which are processed statistically and quantitatively. The results of this study concluded that partially firm size has an insignificant influence on financial performance. But for financial leverage has a significant influence on financial performance. Simultaneously, firm size and financial leverage have a significant influence on financial performance with a contribution of 66.8% meaning that 33.2% of financial performance is influenced by other factors that are not examined in this study.

scholarly journals Analisis Kinerja Keuangan Dan Pengaruhnya Terhadap Harga Saham (Studi Kasus Pada Pt Aqua Golden Mississippi, Tbk Sebelum Akuisisi Saham Dan Sesudah Akuisisi Saham Oleh Danone Periode Tahun 1997 – 2007)

2010 ◽  
Vol 1 (2) ◽  
pp. 158
Author(s):  
Entar Sutisman ◽  
Sad Lingga Fitriana ◽  
Dianwicaksih Arieftiara
Keyword(s):  
Drinking Water ◽  
Financial Performance ◽  
Significant Influence ◽  
Stock Price ◽  
Stock Exchange ◽  
Corporate Financial Performance ◽  
Measuring Instrument ◽  
Z Score ◽  
Score Analysis

AbstractThis research destination is to understand something effect from financial performance to corporate stock price before acquisition and after acquisition. Selected which corporate is PT Aqua Golden Mississippi, Tbk with measuring instrument z – score analysis Taffler model as measuring instrument corporate financial performance and linear regretion to understand something effect from financial performance to stock price with period 1997 – 2007 be based on corporate year after and before acquisition. That indicate from analysis revenue corporate financial performance after and before acquisition significant influence stock price, but just direction relationship which different. This matter because of there are other factor – factor which influence stock price, one of them is corporate drinking water in package stock not likuid in stock exchange. On the contrary, corporate condition after acquisition not significant, this meaning is increase of financial performance not followed with the increasing of corporate stock price

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