Disability employment and financial performance: the effect of technological innovation of listed firms in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
T. Mallikarjunappa
Keyword(s):  
Financial Performance ◽  
Technological Innovation ◽  
Service Sector ◽  
Technology Innovation ◽  
Manufacturing Sector ◽  
Sustainability Reporting ◽  
Positive Association ◽  
Content Type ◽  
Return On Equity ◽  
Disability Employment

Purpose Technological innovation (TI) has become a competitive advantage to firm sustainability and survival; however, stakeholders struggle to embrace this revolution. There is a fear that technology innovation leads to massive job loss. Therefore, the purpose of this paper is to investigate TI, employee disability (EDI) and financial performance. Design/methodology/approach Using the Indian stock market as a testing ground, the authors used panel regression to analyse 80 sustainability-reporting firms (640 firm-year observations) between 2010 and 2017. Findings The findings show that technology innovation has a positive association with EDI. It further indicates EDI with TI improves the financial performance (return on assets and return on equity) of firms. Also, the study shows that EDI in the service and manufacturing sector are the critical contributors when combined with TI towards an increase in financial performance. Practical implications The implication for the study allows firms to increase employment of people with disabilities in the workplace because TI has a positive effect on EDI. The results from the study confirm the service sector as the highest contributor to financial performance in the emergence of TI. Originality/value The novelty of this research provides empirical evidence that the service sector contributes more to financial performance when EDI combines with TI.

Do third-party assurance and mandatory CSR reporting matter to philanthropic and financial performance nexus? Evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
Arunima Kambikkanon Valacherry ◽  
Thathaiah Mallikarjunappa
Keyword(s):  
Financial Performance ◽  
Stock Price ◽  
Interactive Effect ◽  
Sustainability Reporting ◽  
Positive Association ◽  
Negative Association ◽  
Third Party ◽  
Content Type ◽  
Return On Equity ◽  
Csr Reporting

Purpose The purpose of this study is to focus on examining whether third-party assurance (TPA) and mandatory corporate social responsibility reporting (MCSR) matter in the association between philanthropic giving (PHG) and listed firms’ financial performance. Design/methodology/approach Using the Indian stock market as a testing ground, the study used interactive regression and panel regression to analyse 80 sustainability-reporting firms with 800 firm-year observations between 2010 and 2019. Findings The first findings show a positive association between PHG and financial performance (return on assets, ROA and stock price returns, SPR). Also, the study shows that the interactive variable of MCSR and PHG has a mixed association with financial performance. The second findings show a positive and statistically significant association between TPA and SPR. Also, the interactive effect of TPA and PHG has a negative association with return on equity (ROE) and a positive association with SPR. The third findings show a negative association between MCSR and financial performance (ROA and ROE) and a positive association with SPR. However, when a firm combines MCSR and TPA, the outcome is a negative association with ROE. The fourth findings show that MCSR has a positive association with TPA. The study control for any form of heteroscedasticity, serial correlation and endogeneity effects. Practical implications Managers, if given a choice, must opt for TPA over MCSR because the βcoefficient is higher in TPA than MCSR in PHG-financial performance nexus. Originality/value The study addresses the information asymmetry problem from the application of TPA and MCSR, which is new to an emerging economy context.

Sustainability reporting in food industry: an innovative tool for enhancing financial performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Food Industry ◽  
Performance Indicator ◽  
Negative Impact ◽  
Sustainability Reporting ◽  
Content Type ◽  
Return On Equity ◽  
Innovative Tool ◽  
Using Data

PurposeThis study investigates the relationship between the level of sustainability reporting and Food Industry Performance (operational, financial and market).Design/methodology/approachUsing data culled from 1426 observations from 31 different countries for ten years (2008–2017), an independent variable derived from environmental, social, and corporate governance (ESG) score is regressed against dependent manufacture performance indicator variables [return on assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results demonstrate that there is a significant relationship between ESG and financial performance (ROE). However, there is no significant relationship between ESG and operational performance (ROA) and market performance (TQ).Originality/valueThis paper presents a new framework that considers sustainability reporting as an innovation tool, examining innovation in terms of its positive or negative impact on financial performance. It contributes to research on the innovation paradigm and knowledge management by highlighting the significance of sustainability reporting as a tool of innovation in enhancing the financial performance.

Sustainability reporting and firm’s performance

2019 ◽  
Vol 69 (3) ◽  
pp. 431-445
Author(s):  
Amina Buallay
Keyword(s):  
Banking Sector ◽  
Manufacturing Sector ◽  
Market Performance ◽  
Sustainability Reporting ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Pooled Data ◽  
Independent Variable ◽  
The Impact

Purpose The purpose of this paper is to provide a comparison between manufacturing and banking sectors with regards to the level of sustainability reporting (environmental, social and governance (ESG)) and its impact on operational, financial and market performance. Design/methodology/approach The research is quantitative, based on pooled data analysis of 932 manufactures and 530 banks listed on 80 countries for ten years from 2008 to 2017 ending up with 11,705 observations. A multivariate model is used to investigate the impact of sustainability reporting (ESG) on a firm’s performance. The theoretical model is built on agency, legitimacy, resources and stakeholders’ theories. The practical model is built on independent variable (ESG) and the dependent variables (return on assets, return on equity and Tobin’s Q). Findings The findings deduced from the empirical results on one hand demonstrated that ESG positively affect the operational, financial and market performance in the manufacturing sector. However, on the other hand, the ESG negatively affect the operational, financial and market performance in the banking sector. Originality/value This research makes a contribution to the scarce literature and compares the level of sustainability reporting and its impact on performance in both the manufacturing and banking sector which are two of the major and important sectors in the global financial markets.

The tourism intermediaries' profitability in Portugal and Spain–differences and similarities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Conceição Gomes ◽  
Fernanda Oliveira
Keyword(s):  
Financial Performance ◽  
Positive Association ◽  
Comparative Approach ◽  
Content Type ◽  
Return On Equity ◽  
Final Sample ◽  
Asset Turnover ◽  
Distribution Sector ◽  
Return On Sales ◽  
Official Data

PurposeThis study aims to compare the financial performance of the tourism distribution sector between Portugal and Spain, regarding the years 2007 and 2017. It is also intended to determine which variables influence the performance of tourism intermediaries' enterprises.Design/methodology/approachThis is a quantitative study based on financial information available on SABI database, with official data of Spanish and Portuguese enterprises. The final sample gathers 6095 intermediaries (1585 Portuguese and 4510 Spanish) which were analyzed regarding their profitability through DuPont model and an additional variable – size.FindingsThe return on equity (ROE) calculation in 2007 and 2017 identifies an increase of 12.8% for Portugal and 19.6% for Spain. Through Spearman's Rho, return on sales (ROS), asset turnover and return on asset (ROA) have a positive association with ROE, but the results about asset on equity and enterprise size did not reveal such precise evidence.Research limitations/implicationsThis study intends to reinforce the literature in terms of performance evaluation techniques to be used in this type of enterprises, applying DuPont model. At a practical level, besides aiming the maximization of the enterprise's profit, managers are faced with other financial challenges. Thus, this study provides important indications about aspects that should be considered to improve the enterprise's financial performance, supporting managers' decision making.Originality/valueFinancial studies focusing on the tourism distribution sector are limited. Even less frequent are studies with financial and official data from large samples, representative of the universe under study. The value of this study is based on these two aspects, allowing to strengthen the knowledge about tourism intermediaries and their financial performance, in a comparative approach between two countries.

Implementation of lean in IT SME company: an Italian case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Torri ◽  
Kaustav Kundu ◽  
Stefano Frecassetti ◽  
Matteo Rossini
Keyword(s):  
Manufacturing Industry ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Single Case ◽  
Value Added ◽  
Lean Implementation ◽  
Content Type ◽  
Italian Case ◽  
Lean Practices

Purpose In spite of huge advancement of Lean in the manufacturing sector, its advantage in the service sector is not fully investigated. The purpose of this paper is to cover this gap in particular for the information technology (IT) sector through the implementation of the Lean philosophy in a small- and medium-sized enterprise (SME), operating in the IT sector. Design/methodology/approach A case study is conducted and following the A3 model, Lean is deployed in the case company. Data were collected through on-site interviews, waste sources were identified and then countermeasures for their reduction were proposed and adopted. Findings This study reveals that the implementation of the Lean practices in an SME operating in the IT sector offers good operative and financial results, thanks to the higher productivity obtained through the reduction of non-value-added activities. Research limitations/implications This paper reports a single case study, not enough to generalize the results. Moreover, more Lean tools and practices should be tested in IT companies to assess their effectiveness. Practical implications This paper increments the knowledge base for the application of Lean and A3 model outside the manufacturing industry. This paper should assist practitioners and consultants who have the desire to understand a better way of Lean implementation in fast-growing IT industry and in SME. Originality/value Research on Lean implementation in an SME company and in IT sector is scarce. This study aims to assess the efficiency of the adoption of Lean practices following the A3 model. The results could be highly valuable for similar companies (dimension or sector), especially those that are facing transition situations in terms of size and at the same time want to improve their operations performance, efficiency and avoid waste.

The effectiveness of flexible manufacturing strategies

2009 ◽  
Vol 58 (2) ◽  
pp. 119-135 ◽  
Author(s):  
Therese A. Joiner ◽  
X. Sarah Yang Spencer ◽  
Suzanne Salmon
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Flexible Manufacturing ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Manufacturing Strategy ◽  
Organisational Performance ◽  
Content Type ◽  
Financial Performance Measures

PurposeAgainst a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement systems (PMS), this study seeks to examine the mediating role of both non‐financial and financial performance measures in the relationship between a firm's strategic orientation of flexible manufacturing and organisational performance.Design/methodology/approachA path‐analytical model is adopted using questionnaire data from 84 Australian manufacturing firms.FindingsThe results indicate that, first, firms emphasising a flexible manufacturing strategy utilise non‐financial as well as financial performance measures; second, these performance measures are associated with higher organisational performance; and third, there is a positive association between a firm's strategic emphasis on flexible manufacturing and organisation performance via non‐financial and financial performance measures.Practical implicationsWhile there is agreement on the beneficial role of non‐financial performance measures in supporting strategic priorities associated with customization strategies, equivocal research results have emerged on the role of financial performance measures in this context. The study underscores the importance of both non‐financial and financial performance measures in this context.Originality/valueThe paper reinstates the value of financial performance measures for firms pursuing customization type strategies and adds to one's knowledge of PMSs by exploring the intervening role of such systems in linking flexible manufacturing strategy to organisation performance.

Risk disclosure and financial performance: the case of Islamic and conventional banks in the GCC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayman E. Haddad ◽  
Hussain Alali
Keyword(s):  
Financial Performance ◽  
United Arab Emirates ◽  
Best Practice ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Gcc Countries ◽  
Conventional Banks

Purpose This study aims to explore the extent of risk disclosure (RD) among conventional banks (CBs) and Islamic banks (IBs) listed on stock markets in the Gulf cooperation council (GCC). It also examines the influence of RD on the banks’ financial performance as measured by return on assets (ROA) and return on equity (ROE). Design/methodology/approach This study uses content analysis to examine RD in the annual reports of 16 CBs and 14 IBs in the GCC for a sample of 240 firm-year observations over the period 2007 to 2014. Findings The study shows no significant differences between the RD reported in the annual reports of CBs and that of IBs. On average, a CB reported 234 sentences while an IB disclosed 244 sentences of RD in its annual report. The authors also find that both types of banks had an upward trend over the periods. While the means of RD reported by CBs have significantly improved over the period, the RD reported by IBs has not. Similar results are also found when the authors compared the RD pre- and post-financial crisis period. Finally, the authors find that there is a significant association between RD and both models of financial performance (ROA and ROE) for IBs, after controlling other variables. However, RD has a significant association with only ROE for CBs. Research limitations/implications The bank selection was restricted to publicly traded banks in the GCC. Other financial institutions and different types of industries were not considered. Further research could determine whether the results obtained in this study could be generalized to different industries in the GCC and or in other countries. Practical implications This study provides evidence on the significant association between RD and the financial performance of CBs and IBs in GCC countries. This study could be helpful to regulatory authorities in encouraging banks to adopt the best practice of RD and thus promote banks’ transparency. Originality/value This is the first known study to examine the RD practices of both types of banks and their association with banks’ financial performance in five-GCC countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Bahrain), based on a longitudinal analysis of year-end annual reports, covering eight years period from 2007 to 2014.

Sustainability engagement’s impact on tourism sector performance: linear and nonlinear models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Jasim Al-Ajmi ◽  
Elisabetta Barone
Keyword(s):  
Significant Relationship ◽  
Linear Models ◽  
Performance Indicator ◽  
Nonlinear Models ◽  
Sustainability Reporting ◽  
Analytical Framework ◽  
Content Type ◽  
Return On Equity ◽  
Using Data ◽  
The Relationship

PurposeThis study aims to investigate the relationship between the level of sustainability reporting and tourism sector’s performance (operational, financial and market).Design/methodology/approachUsing data culled from 1,375 observations from 37 different countries for ten years (2008–2017), an independent variable derived from the environmental, social and governance (ESG score) is regressed against dependent performance indicator variables (return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ)). Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results of the linear models demonstrate that there is a significant relationship between ESG and operational performance (ROA) and market performance (TQ). However, there is no significant relationship between ESG and financial performance (ROE). Furthermore, the results of the nonlinear models suggest that the relationship between sustainability performance and firm's profitability and valuation is nonlinear (inverted U-shape).Originality/valueThe models in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance in the tourism sector's economies. In addition, this study highlights the tourism sector's management lacunae manifesting in terms of the weak nexus between each component of ESG and tourism sector's performance.

Measuring impact of working capital efficiency on financial performance of a firm

2019 ◽  
Vol 11 (1) ◽  
pp. 75-94 ◽  
Author(s):  
Punam Prasad ◽  
Narayanasamy Sivasankaran ◽  
Samit Paul ◽  
Manoharan Kannadhasan
Keyword(s):  
Financial Performance ◽  
Value Chain ◽  
Bargaining Power ◽  
Direct Measure ◽  
Working Capital ◽  
Content Type ◽  
Return On Equity ◽  
Operating Income ◽  
Performance Variables ◽  
Capital Efficiency

Purpose The purpose of this study is to introduce working capital efficiency multiplier (WCEM) as a direct profitability measure of working capital management. The existing accounting measures in the literature establish an indirect approach to study the relationship between working capital efficiency and profitability of the firms. Design/methodology/approach Using the help of a set of companies from CMIE Prowess database, the study introduces WCEM as a direct profitability measure of working capital efficiency. Findings In this study, a new direct measure of working capital efficiency is introduced which is multiplicative in nature. WCEM is a product of three components, namely, WACC, ratio of the sum of trade receivables and inventories to trade payables and ratio of net working capital (NWC) to net sales. Practical implications The importance of direct measure like WCEM could be enormous in performance evaluation of a firm. It can be used as an indicator for choosing a suitable investment opportunity by an investor. This is due to the fact that the firm that is highly efficient in managing working capital is less exposed to liquidity risk. At the same time, the firm is less dependent on external financing. Therefore, such firms eventually create more value for their shareholders. Another indication that WCEM provides is to gauge the bargaining power of the firm and its competitive position in the market. Lower WCEM indicates higher bargaining power of a firm across the value chain, and its superior position relative to its competitors. Originality/value Most of the studies on WCM are of the empirical type and there is a complete dearth on theoretical framework. Researchers hereafter can consider WCEM as one of the financial performance variables in place of the existing measures such as return on asset (ROA), return on invested capital (ROIC), return on equity (ROE), gross operating income (GOI) and net operating income (NOI) and thereby can contribute new empirical insights through their research outcomes.

A quantile regression approach to trail financial performance of manufacturing firms

2019 ◽  
Vol 20 (3) ◽  
pp. 290-310
Author(s):  
Swagatika Nanda ◽  
Ajaya Kumar Panda
Keyword(s):  
Quantile Regression ◽  
Financial Performance ◽  
Large Scale ◽  
Service Sector ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Content Type ◽  
Regression Approach ◽  
Different Levels

Purpose The purpose of this paper is to track the financial performance of manufacturing firms at different levels of their conditional quantiles. It also analyzes the relevance of revenue and cost channels along with key firm-specific parameters that influence firm’s profitability. Design/methodology/approach The study analyses a sample of 1,000 manufacturing firms over a study period spanning from 2000 to 2016. It uses both quantile regression and panel ordinary linear square (OLS) models to analyze the financial performance of the firms. Findings The study finds large scale of heterogeneity among the firms under different quantiles of profitability. Export earnings, firm size, asset turnover and volatility of exchange rate are the decisive determinants of financial performance across all quantiles. Financing assets by current debt is negatively impacting return on assets and return on capital employed of firms from lower quantile whereas profitability is positively impacted if they are financed by long term debt. Debt financing of assets does not make any sense for firms with high quantile of profitability. The study also finds that quantile regression approach is a better method than panel OLS models in the presence of highly heterogeneous and non-normal distributions. Research limitations/implications This study is limited to the financial performance of manufacturing firms and does not consider service sector which is also equally competitive. However, a sector wise analysis of firm’s profitability could be more meaningful than comparing all the firms in one basket of manufacturing domain. Practical implications The research findings have both practical as well as policy implications. Practically, the study helps the firm managers to identify critical success factors that significantly influence firm’s financial performance at different levels of profitability. It also helps the policy makers to align policy focus to stabilize firms at lower level of profitability and also to manage conducive business environment for all firms at different levels of their profitability. Originality/value The study provides a deep theoretical underpinning of literatures on firm’s financial performance and empirically investigates it using advanced methodology. The robust estimates of the study ensure to analyze financial performance under revenue and cost channels at diverse level of their profitability.

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