Does lean manufacturing improve firm value?

2017 ◽  
Vol 28 (4) ◽  
pp. 422-437 ◽  
Author(s):  
Xuechang Zhu ◽  
Yu Lin
Keyword(s):  
Firm Value ◽  
Lean Manufacturing ◽  
Content Type ◽  
Positive Effects ◽  
Long Time ◽  
Triple Difference ◽  
The Relationship ◽  
D Investment

Purpose The purpose of this paper is to examine the effects of lean manufacturing on firm value. In particular, it analyses the effects of R&D investment on the relationship between lean manufacturing and firm value. Design/methodology/approach In this empirical analysis of the relationship between lean manufacturing and firm value, the authors use a propensity score matching (PSM) with a difference-in-difference (DID) estimator to control selection bias and reduce endogenous problems. They also use the triple difference estimator to explore the role of R&D investment. Findings The results suggest that the achievement of positive and significant effects of lean manufacturing implementation on firm value for a long time and R&D can accelerate this progress. Research limitations/implications This study highlights the role of R&D investment in accelerating the achievement of positive effects of lean manufacturing on firm value. However, the results may not be entirely generalizable because the empirical data are based solely on Chinese manufacturing firms. Practical implications Managers need to perform long-term planning while implementing lean manufacturing and should not over-expect a significant short-term improvement in performance. The authors also recommend that enterprises should pay attention to R&D while implementing lean manufacturing. Originality/value This paper may be the first study to empirically examine the relationship between lean manufacturing and firm value in China by combining a PSM model with the DID estimator to reduce endogenous problems.

Brand and firm values in distinct national cultures

2020 ◽  
Vol 32 (8) ◽  
pp. 1737-1758 ◽  
Author(s):  
Reza Chowdhury ◽  
Wootae Chun ◽  
Sungchul Choi ◽  
Kurtis Friend
Keyword(s):  
Cultural Values ◽  
Firm Value ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
National Cultures ◽  
Content Type ◽  
Brand Values ◽  
The Relationship

PurposeThe objective of this article is to investigate the moderating role of national cultures in the relationship between brand value and firm value.Design/methodology/approachThis article examines the topic in the context of different national cultural attributes, including individualism, uncertainty avoidance, masculinity, power distance, and long-term orientation. We use brand values of the Financial Times Global 500 companies and national cultural values reported by Hofstede, GLOBE, and Schwartz.FindingsResults exhibit that brands are more value-additive to companies in highly individualistic cultures. Furthermore, a valuable brand contributes more to firm value in countries with low uncertainty avoidance, high masculine, low power distance, and short-term oriented cultures.Originality/valueThe evidence suggests that while a valuable brand contributes to firm value, the level of its effect on firm value varies by national cultures.

Working capital allocations and productivity: empirical issues and role of asset utilization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gaurav Singh Chauhan
Keyword(s):  
Firm Value ◽  
Relative Role ◽  
Working Capital ◽  
Short Term ◽  
Content Type ◽  
The Past ◽  
Marginal Impact ◽  
The Relationship

PurposeThe article highlights potential mismeasurement in working capital allocations among academicians and practitioners and revisits the relationship between firms' working capital and productivity, as evident from their values.Design/methodology/approachThe research design acknowledges the relative role of firms' working capital vis-a-vis other assets in generating revenue, thereby effectively accounting for the overall asset efficiency in influencing firm value. The authors use a multivariate framework to draw inferences from the marginal impact of working capital and its components on firm value while controlling for asset utilization.FindingsThe authors find that, after accounting for asset utilization, the marginal impact of working capital and its components on firm value is quite weak. The results are consistent with the hypothesis that firms' trade-off between short-term and long-term assets per se should not have any value implications. After controlling for their asset turnovers, the authors find that higher allocations to working capital relative to other assets are not necessarily value-destructive. The findings contrast with the past literature.Research limitations/implicationsThe article, through its analytical and empirical insights, suggests that working capital allocations should be measured by managers and academicians relative to firms' other asset rather than their sales. Firm values should, therefore, be compared based on firms' overall asset utilization rather than inter-temporal allocations to short-term versus long-term assets.Originality/valueContrary to the existing literature so far, the article explicitly acknowledges the relative role of firms' other assets, and hence the overall asset utilization, to infer the marginal impact of working capital on firm value.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

Does work engagement mediate the perceived career support- and career adaptability- work performance relationship?

2019 ◽  
Vol 12 (2) ◽  
pp. 310-327 ◽  
Author(s):  
Manish Gupta
Keyword(s):  
Work Engagement ◽  
Work Performance ◽  
Career Adaptability ◽  
Career Support ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of work engagement between the relationship of perceived career support and work performance as well as between the relationship of career adaptability and work performance. Design/methodology/approach Data were collected form 606 i-generation liquid knowledge workers. They had completed their internship program in the industry for a period of at least one month. Regression analysis was carried out to test the hypothesized framework. Findings Most of the results indicated support for the hypotheses. Work engagement was found to be mediating the perceived career support and work performance relationship fully. However, work engagement was found to be mediating the career adaptability and work performance relationship only partially. Research limitations/implications Engaging liquid workers plays a crucial role in passing the positive effects of perceived career support and career adaptability to work performance. Practical implications The findings suggest that managers may take steps to enhance engagement levels of the employees so that it can help the interns high on perceived career support and career adaptability perform well at work. Originality/value To the best of the authors’ knowledge, this study is unique that tests and finds the intervening role of work engagement between work performance and the two career-related constructs.

scholarly journals The impact of related party transactions on firm value

2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy
Keyword(s):  
Firm Value ◽  
Design Methodology ◽  
Emerging Market ◽  
Content Type ◽  
Related Party Transactions ◽  
Intermediary Role ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

The role of surgery in the management of supratentorial intermediate and high-grade astrocytomas in adults

1990 ◽  
Vol 73 (3) ◽  
pp. 331-344 ◽  
Author(s):  
Jules M. Nazzaro ◽  
Edward A. Neuwelt
Keyword(s):  
Surgical Management ◽  
Survival Data ◽  
Postoperative Radiotherapy ◽  
High Grade ◽  
Survival Times ◽  
Term Survival ◽  
Content Type ◽  
The Relationship

✓ In this analysis, the authors review studies over the last 50 years addressing the association between long-term survival and type of surgical management in adults with supratentorial intermediate or high-grade astrocytomas. Earlier reports are included because they are repeatedly referenced in current works and clearly are an important basis upon which present attitudes are predicated. Because recent work has definitively demonstrated the significance of prognostic variables on outcome, the handling of such factors in studies that investigated survival data according to degree of surgery is emphasized. Study design, experimental methods used, and methods of data analysis are also examined. This analysis shows that there is little justification for dogmatic statements concerning the relationship between increasing patient survival times and aggressive surgical management in adults with supratentorial intermediate or high-grade astrocytomas, if patients receive postoperative radiotherapy.

The contingency role of business strategy on the relationship between operations practices and performance

2014 ◽  
Vol 21 (5) ◽  
pp. 690-712 ◽  
Author(s):  
Jayanth Jayaram ◽  
Keah Choon Tan ◽  
Tritos Laosirihongthong
Keyword(s):  
Operations Management ◽  
Business Strategy ◽  
Lean Manufacturing ◽  
Management Practices ◽  
Total Quality ◽  
Content Type ◽  
Competitive Edge ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to examine the direct influence of three types of operations management practices, namely total quality management (TQM), lean manufacturing (LEAN), and supply chain management (SCM) on operational performance. Design/methodology/approach – Cluster analysis is used to classify data collected from Thai manufacturing firms into three business strategy clusters of cost leadership, differentiation, and focussed strategy. Next, multiple-regression analysis was used to test the relationships between operations management practices and performance in each of the three strategy clusters. Findings – Results show that all three operations management practices were significantly associated with performance including the interaction of TQM and SCM. Also, the interaction of LEAN and SCM significantly affected performance for firms pursuing focussed business strategy. Practical implications – Manufacturers in developing nations can use this result to deploy appropriate operations management practices to enhance their competitive edge. Originality/value – This study explores the cross-functional alignment between strategies and practices, which have been transferred from developed to developing countries.

Performance aspiration, industrial search and R&D investment among chinese firms

2017 ◽  
Vol 11 (2) ◽  
pp. 270-283 ◽  
Author(s):  
Yiyi Su ◽  
Taoyong Su
Keyword(s):  
Investment Decision ◽  
Business Leaders ◽  
Ongoing Research ◽  
Content Type ◽  
Behavioral Determinants ◽  
Investment In China ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

Purpose This paper aims to examine the behavioral determinants of firm research and development (R&D) investment in China by looking into the interaction between performance aspiration and industrial search. Design/methodology/approach The author argues that the performance aspiration effect is strengthened in R&D-intensive industries based on the isomorphism rationale, whereas it is weakened by high industry R&D intensity owing to the differentiation rationale. Deriving from the isomorphism and differentiation rationales, the author developed a set of competitive hypotheses and empirically tested them by using a large panel data of 6,539 company-years from China for the period 2001-2003. Findings First, R&D intensity is positively related to the deviation of firm performance from aspiration. Second, industry R&D intensity negatively moderates the relationship between performance aspiration and firm R&D intensity for firms performing above aspiration. Therefore, the results provide support for the differentiation rationale. Originality/value The study contributes to the ongoing research that provides and tests the behavioral explanations for R&D and innovation. By delving into the moderating role of industry R&D intensity, the author advocate the need for contextualizing performance aspiration in industrial environments. The study informs policymakers and business leaders about the interaction between the external environment and internal decision process in R&D investment decision.

ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

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