Inflation pressure, stock option incentive and the company performance Taking the food industry for an example

2011 ◽  
Author(s):  
Na Gong ◽  
Jun Shao
Keyword(s):  
Food Industry ◽  
Stock Option ◽  
Company Performance ◽  
Inflation Pressure ◽  
Stock Option Incentive

scholarly journals DAMPAK STRUKTUR MODAL PADA SENSITIVITAS PENERAPAN KOMPENSASI OPSI SAHAM KARYAWAN TERHADAP KINERJA

2017 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Nur Fadjrih Asyik
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Stock Options ◽  
Stock Option ◽  
Company Performance ◽  
Employee Stock Option ◽  
Sensitivity Level ◽  
The Impact ◽  
Option Compensation ◽  
Stock Option Compensation

This study aims to test whether the management that receive compensation in the form of stock options having an positive impact on company performance. This study considers the external performance measurement by identifying Cumulative Abnormal Return (CAR). In addition, this study aims to test whether the company's capital structure affects the sensitivity level of employee stock option compensation and firm performance. Capital structure is measured with debt to equity ratio. The result indicates that the proportion of Employee Stock Option Plan (ESOP) influence company performance in accordance with the predictions. This shows that the more stock options offered to employees then came a sense of belonging which resulted in more motivated managers to improve company performance. Furthermore, the higher the market performance of companies that can be achieved, the higher the profit (gain) will be obtained by the recipient of stock options. In addition, this study also shows that the impact of stock option grants at the company's performance declined with the greater capital structure of liability. This shows that the capital structure of liabilities will lower the sensitivity level of employee stock option compensation and firm performance. The higher the company's liabilities would reduce the rights of the owner of the dividends each period in accordance with the ownership of shares held since the company must take into account the interest costs to be paid to the creditor.

scholarly journals China’s Halal Food Industry: The Link Between Knowledge Management Capacity, Supply Chain Practices, and Company Performance

10.28945/4821 ◽  
2021 ◽  
Vol 16 ◽  
pp. 285-306
Author(s):  
Kamila Usmanova ◽  
Daoping Wang ◽  
Eli Sumarliah ◽  
Kawthar Mousa ◽  
Safiatou S Maiga
Keyword(s):  
Knowledge Management ◽  
Supply Chain ◽  
Empirical Evidence ◽  
Structural Equation ◽  
Food Industry ◽  
Future Research ◽  
Company Performance ◽  
Management Capacity ◽  
Halal Food ◽  
The Impact

Aim/Purpose: The study attempts to analyse the influences of knowledge management capacity on company performance and supply chain practices. It also examines whether supply chain practices significantly and positively impact company performance. Background: Knowledge management capacity is an essential tactical resource that enables the integration and coordination among supply chain stakeholders, but research examining the link between knowledge management capacity and supply chain practices and their impacts on company performance remains scarce. Methodology: The study uses correlation analysis and factor analysis to confirm the theoretical framework’s validity and structural equation modelling to test hypotheses. The data are obtained from 115 halal food firms in China (with a response rate of 82.7%). Contribution: This study’s findings contribute to the Social Capital Theory by presenting the impacts of different supply chain practices on company performance. The findings also suggest the impact of intangible resources on enhancing company performance, contributing to the Resource-based View Theory. These results are a crucial contribution to both academicians and corporate managers working in the Halal food industry. Managers can apply these findings to discover and adopt knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance. Findings: This study is an initial effort that provides empirical evidence regarding the relationships among supply chain, knowledge management, and company performance from the perspective of China’s halal food industry. The results prove that knowledge management capacity is the supply chains’ primary success determinant and influencer. Besides, knowledge management capacity positively influences company performance, and supply chain practices directly influence company performance. Recommendations for Practitioners: Managers can apply these study findings to determine and increase knowledge management capacity with practical anticipation that these concepts will align with their company strategies. Also, the research motivates managers to concentrate their knowledge management on enhancing companies’ supply chain practices to achieve improved company performance. Recommendation for Researchers: The study presents a new theoretical framework and empirical evidence for surveying halal food businesses in China. Impact on Society: These results are a significant contribution to the research field and industry focusing on halal foods. Future Research: First, this research focuses only on halal food businesses in China; thus, it is essential to re-examine the hypothesized relations between the constructs in other Chinese business segments and regions. Next, the effect of variables and practices on the theorized framework should be taken into account and examined in other industries and nations.

The Effect of Shareholder Rights and Information Asymmetry on Stock-Option-Related Repurchase Activity

2018 ◽  
Vol 21 (02) ◽  
pp. 1850013
Author(s):  
Joanna Golden
Keyword(s):  
Information Asymmetry ◽  
Stock Option ◽  
Shareholder Wealth ◽  
Stock Repurchases ◽  
Shareholder Rights ◽  
Executive Stock Option ◽  
Comprehensive Picture ◽  
Stock Option Incentive

As stock-option holdings increase, managers alter their firms’ payout composition, choosing stock repurchases rather than dividends to return cash to shareholders. Prior research presents two competing explanations for this behavior: the flexibility hypothesis and the shareholder power hypothesis. In support of the flexibility hypothesis, I document that this executive stock-option incentive to repurchase stock as a substitute for dividends is stronger when firms have weak shareholder rights and when information asymmetry is severe. In addition, I find that option-induced repurchases are associated with lower shareholder wealth when shareholder rights are weak or when information asymmetry is high. These firms also perform worse in the following year but show higher total payouts to shareholders. Overall, this paper provides a comprehensive picture of managers’ option-driven repurchase behavior.

scholarly journals Improving Firms’ Performance and Sustainability: The Case of Eco-Innovation in the Agri-Food Industry

2019 ◽  
Vol 11 (20) ◽  
pp. 5590 ◽  
Author(s):  
Adrián Rabadán ◽  
Ángela González-Moreno ◽  
Francisco J. Sáez-Martínez
Keyword(s):  
Comparative Analysis ◽  
Cost Reduction ◽  
Food Industry ◽  
Qualitative Comparative Analysis ◽  
Environmental Responsibility ◽  
Company Performance ◽  
Initial Sample ◽  
Different Types ◽  
Sales Company ◽  
Innovation Cooperation

Companies’ environmental responsibility has significantly increased in the last decade. However, the question about the benefits that this responsible decision has on the company’s performance in the market remains. In this scenario, the main goal of this study is to analyze the conditions that improve the performance of companies in the agri-food industry, paying specific attention to technological eco-innovation and different types of cooperation (in the use and in the development of eco-innovations). Our initial sample contains data of agri-food companies operating in Spain. The Qualitative Comparative Analysis (QCA) has been used as a new path for the analysis of firm’s data. Company performance has been considered by using a construct including three variables (increase in the sales, company profitability and cost reduction). Results show that the conditions that largely benefit company performance are R&D spending and the development of technological eco-innovation. Cooperation in the development and use of eco-innovations are especially important for the smaller companies, with the larger companies in the sector relying both in cooperation and in their own resources. The different recipes which improve the performance, as well as the sustainability of the sector, are presented in this study.

scholarly journals DAMPAK STRUKTUR MODAL PADA SENSITIVITAS PENERAPAN KOMPENSASI OPSI SAHAM KARYAWAN TERHADAP KINERJA

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Nur Fadjrih Asyik
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Stock Options ◽  
Stock Option ◽  
Company Performance ◽  
Employee Stock Option ◽  
Sensitivity Level ◽  
The Impact ◽  
Option Compensation ◽  
Stock Option Compensation

This study aims to test whether the management that receive compensation in the form of stock options having an positive impact on company performance. This study considers the external performance measurement by identifying Cumulative Abnormal Return (CAR). In addition, this study aims to test whether the company's capital structure affects the sensitivity level of employee stock option compensation and firm performance. Capital structure is measured with debt to equity ratio. The result indicates that the proportion of Employee Stock Option Plan (ESOP) influence company performance in accordance with the predictions. This shows that the more stock options offered to employees then came a sense of belonging which resulted in more motivated managers to improve company performance. Furthermore, the higher the market performance of companies that can be achieved, the higher the profit (gain) will be obtained by the recipient of stock options. In addition, this study also shows that the impact of stock option grants at the company's performance declined with the greater capital structure of liability. This shows that the capital structure of liabilities will lower the sensitivity level of employee stock option compensation and firm performance. The higher the company's liabilities would reduce the rights of the owner of the dividends each period in accordance with the ownership of shares held since the company must take into account the interest costs to be paid to the creditor.

scholarly journals PROGRAM OPSI SAHAM DAN PERILAKU PENGAMBILAN RISIKO MANAJEMEN: PENGUJIAN MEDIASI MODERASIAN

2019 ◽  
Vol 21 (1) ◽  
pp. 1-16
Author(s):  
ETIK KRESNAWATI ◽  
ANANG ALWY SHIHAB ◽  
NURUL HIDAYATI
Keyword(s):  
Risk Taking ◽  
Critical Role ◽  
Stock Option ◽  
Company Performance ◽  
Mediation Model ◽  
Goal Alignment ◽  
Stock Performance ◽  
Equity Compensation ◽  
Moderated Mediation Model

The management stock option program (POSM) is a type of equity compensation that is theoretically predicted to encourage risk alignment between management and principals, which in turn will encourage goal alignment. This study examines this argument on companies that adopted POSM during the period 1999-2016. Utilizing moderated mediation model, we find that management team’s risk taking behavior mediate the effect of POSM on company performance as measured by ROA, but not so when performance is measured by ROE and stock performance index. We also provide evidence that management team considers the company's capital structure, measured by the level of debt, in their risky policy making. Overall, our study documents the critical role of management team’s risk behavior to encourage goal alignment between management and principals.

scholarly journals The Scenario of Supply Chain Management in Kuwait Food Industry

2018 ◽  
Vol 3 (3) ◽  
pp. 162-170
Author(s):  
Abdullah E. M. F. Alrashidi ◽  
Muataz Hazza Faizi Al Hazza ◽  
Ahsan Ali Khan
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Food Industry ◽  
Manufacturing Industries ◽  
Company Performance ◽  
Study Quality ◽  
Chain Management ◽  
Food Industries ◽  
The Relationship ◽  
Time Information

Supply chain management (SCM) has been well-known to strongly influence the company performance.  in food manufacturing industries. In this study quality, time, information, flexibility, and integration have been selected as variables to predict their influence on Kuwait food industries. The methodology of the study was developed where five hypotheses have been proposed on the relationship among the selected factors and the performance. To evaluate the hypotheses, an examination through a questionnaire was conducted, followed by its analysis with Statistics Packaging for Social Science (SPSS) and Minitab applications. The findings were found to be in support of two hypotheses only. Oher three hypotheses were rejected. This study showed the ways in which order the factors should be prioritized to improve the performance of an organization.

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