Financial Slack, Operational Slack and Firm Performance during Episodes of Financial Crises: A Panel Data Analysis

Author(s):  
Shun-Ho Chu ◽  
Yueming Ren ◽  
Huimin Cai ◽  
Yu Xu ◽  
Siyuan Bao
2020 ◽  
Vol 12 (4) ◽  
pp. 1689 ◽  
Author(s):  
Vanja Grozdić ◽  
Branislav Marić ◽  
Mladen Radišić ◽  
Jarmila Šebestová ◽  
Marcin Lis

The main goal of this study was to examine the effects of capital investments on firm performance, using panel-data analysis. For this purpose, financial data were gathered for 60 manufacturing firms based in Serbia, in the period from 2004 to 2016. The main research hypotheses were developed in accordance with the definition, nature, and time aspect of capital investments. Therefore, empirical expectation of this study was that the relationship between capital investments and firm performance should be positive—they probably bring losses to the firm in the short term, but they should increase firm performance in the long term. Finally, the results have indeed shown that capital investments have statistically significant negative effect on the short-term performance, but positive effect on the long-term performance of the analyzed firms, while controlling for time-fixed effects and certain internal factors.


2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Raj K Kovid ◽  
Sanjeev Dhar ◽  
Mridul Dharwal

Research on examining the relationship between the extent of related party transactions (RPTs) and the firm performance lack consensus. To further investigate this relationship, we use data of a sample of 483 Indian companies listed at National Stock Exchange (NSE) for the period 2013-2017. Based on analysis of data using panel regression, we observe that different forms of RPTs - income, expenses, borrowings and Loans, bank guarantee - do not lead to enhancement of the firm performance. However, the income from related parties are found to be negatively associated with firm performance. This is consistent with the hypothesis of principal-principal or manager conflict in corporate governance.


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