Financialization and Manufacturing Firm Profitability under Uncertainty and Macroeconomic Volatility: Evidence from an Emerging Market

2009 ◽  
Vol 13 (4) ◽  
pp. 592-609 ◽  
Author(s):  
Firat Demir
Keyword(s):  
Emerging Market ◽  
Manufacturing Firm ◽  
Macroeconomic Volatility ◽  
Firm Profitability

Managerial ability in founding-family firms: evidence from Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alex Johanes Simamora
Keyword(s):  
Family Firms ◽  
Emerging Market ◽  
Random Effect ◽  
Policy Formulation ◽  
Management Policy ◽  
Managerial Ability ◽  
Manufacturing Firm ◽  
Content Type ◽  
Founding Family ◽  
Family Generation

PurposeThe purpose of this paper is to examine the effect of founding-family firms on managerial ability.Design/methodology/approachFounding-family firms are determined by founder and/or family involvement as block holder and as in the firm board. Managerial ability is estimated by data envelopment analysis. Research samples consist of 412 manufacturing firm-years listed in the Indonesian Stock Exchange. Analysis data use random-effect regression as the main analysis and Huber-White regression as an alternative analysis.FindingsThis research finds that founding-family firms have a negative effect on managerial ability. Further, the result shows that lower managerial ability occurred when founding-family firms led by founder and professional CEOs, when other family members involved in the ownership and the board have higher family ownership. It indicates that founding-family firms concern more about family interest, such as family reputation, rather than business needs and best management practice.Research limitations/implicationsLimitation of this research does not occur if the founding-family firms are managed by first, second, third, etc., family generation. Future research expected to consider family generation in founding-family firms management.Practical implicationsThis research can be used by founding-family firms in Indonesia as consideration of management policy formulation that can improve managerial ability.Originality/valueThis research provides new evidence if founding-family firms promote lower managerial ability in emerging market such Indonesian market where family businesses are the root of private businesses which have a major contribution to economics.

scholarly journals Analisis pengaruh growth terhadap profit pada perusahaan manufaktur terbuka di Indonesia: Analisis model panel data dinamis

2020 ◽  
Vol 2 (3) ◽  
pp. 53
Author(s):  
Aditya Guntur Prakasa
Keyword(s):  
Panel Data ◽  
Economies Of Scale ◽  
Generalized Method Of Moments ◽  
Negative Influence ◽  
Ongoing Debate ◽  
Manufacturing Firm ◽  
Principal Agent Problem ◽  
Firm Profitability ◽  
The Cost ◽  
Classical Hypothesis

Growth will affect profitability of a firm. There is ongoing debate about how growth will affect profit both theoritically and empirical results. Classical hypothesis predict growth will affect profit positively. Growth can improve firm profitability because the effect from economies of scale and the learning curve effect that makes the production process and the cost of production become more efficient. Behavioral hypothesis predict growth will affect profit negatively because of principal agent problem, managerial constraints, penrose effect or diseconomies of scale. The objective of this study is to examine the effect of growth to profit based on the argument between Classical hypothesis and behavioral hypothesis.                   This study used dynamics panel data with generalized method of moments (GMM) as estimator. This study observed 82 publicly listed manufacturing firm in Indonesia consist of nine periods from 2009 to 2018 resulting in 656 observations. Empirical result shows that growth will affect profit negatively. Thus, prove the behavioral hypothesis that predict negative influence of growth to profit.

scholarly journals Management Innovation Made in China: Haier’s Rendanheyi

2018 ◽  
Vol 61 (1) ◽  
pp. 71-93 ◽  
Author(s):  
Jedrzej George Frynas ◽  
Michael J. Mol ◽  
Kamel Mellahi
Keyword(s):  
Process Model ◽  
Management Practices ◽  
Emerging Market ◽  
Management Innovation ◽  
Manufacturing Firm ◽  
Model Of Management ◽  
Context Dependent ◽  
Entrepreneurial Company ◽  
Made In China ◽  
Made In

Emerging market companies create new management practices for an environment characterized by increased volatility, uncertainty, complexity, and ambiguity (VUCA). This article shows how Haier developed a platform of management practices called Rendanheyi to transform itself from a conventional hierarchical manufacturing firm to a highly responsive online-based entrepreneurial company. It demonstrates how the organizational, competitive, institutional, and technological contexts mattered for the development of Rendanheyi, showing how context-dependent management innovations are created to allow emerging market firms such as Haier to deal with a high VUCA world and creating an extended process model of management innovation that managers can readily apply.

The sequential effect of CSR and COE: family ownership moderation

2019 ◽  
Vol 15 (7) ◽  
pp. 939-954 ◽  
Author(s):  
Ain Hajawiyah ◽  
Desi Adhariani ◽  
Chaerul Djakman
Keyword(s):  
Emerging Market ◽  
Equity Capital ◽  
Sequential Effect ◽  
Family Ownership ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Manufacturing Firm ◽  
Content Type ◽  
Additional Information ◽  
Csr Disclosure

Purpose This paper aims to examine the sequential effect of cost of equity capital and corporate social responsibility (CSR) disclosure with family ownership as a moderating variable. Design/methodology/approach This empirical study examines samples of manufacturing firm in Indonesia using multiple regression analysis. Findings Firms with high cost of equity capital in previous years have extensive CSR disclosure level. Further, firms with extensive CSR disclosure get benefit of lower cost of equity capital in the following year. Family ownership weakens the effect of previous years cost of equity capital on CSR disclosure. On the other hand, family ownership does not moderate the effect of CSR disclosure on the cost of equity capital. Research limitations/implications This study has limitations in terms of CSR measurement using keywords which may not include overall reporting contents. This study also excludes information in sustainability reports and websites, images and scanned files that may provide additional information about the company’s social and environmental activities. This study is limited in terms of the generalization aspect because it only examines firms in one type of industry in one country over three years’ period. Originality/value This study provides empirical evidence on the sequential effect of cost of equity capital and CSR disclosure with family ownership as moderating variable from an emerging market context, which has been rarely explored in the previous research.

scholarly journals Managing working capital efficiency in Turkish agribusinesses and the impact of globalization: insights from an emerging market

2019 ◽  
Vol 22 (4) ◽  
pp. 557-569
Author(s):  
Ece C. Akdoğan ◽  
Dilek Temiz Dinç
Keyword(s):  
Emerging Market ◽  
Economic Globalization ◽  
Optimal Level ◽  
Working Capital ◽  
Policy Makers ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Firm Profitability ◽  
Capital Efficiency ◽  
The Impact

The efficiency of working capital is a major determinant of firm profitability. So, the grasp of working capital dynamics is extremely important for managers, but also for policy makers, since inefficient working capital management is an important source of industrial sickness. This study focuses on the profitability impacts of working capital policies of Turkish agribusinesses, and aims to investigate the potential effects of globalization on these interrelated relationships. The findings obtained from pooled panel analyses demonstrate that Turkish agribusinesses can enhance their profitability and value by adopting a conservative working capital policy through lengthening the cash conversion cycle up to an optimal level. Besides, globalization is found to deteriorate their efficiency and profitability where economic globalization seems to have the highest impact raising questions on the effectiveness of Turkish agribusinesses in coping with competition. Thus, both the managers and the policy makers should concern with the competitiveness impacts of globalization.

CSR disclosure and firm performance: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fahad P ◽  
Showkat Ahmad Busru
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Emerging Market ◽  
Environmental Disclosure ◽  
Content Type ◽  
Panel Regressions ◽  
Final Sample ◽  
Firm Profitability ◽  
Negative Effect ◽  
Csr Disclosure

Purpose This study aims to investigate the effect of corporate social responsibility (CSR) disclosure on firm performance, considering both firm profitability and firm value in an emerging market, India. Design/methodology/approach The study examines the effect of CSR disclosure on firm performance using panel regressions for the final sample that consists of 386 companies listed in the BSE 500 index, India. It covers all major players in the capital market for ten years from 2007–2016. Findings The result shows a trend toward the negative effect of CSR disclosure on firm profitability and firm value in India; this negative effect is mainly influenced by environmental disclosure score and social disclosure score. An adverse effect of firm profitability and firm value on CSR disclosure is also observed to underline the inverse relationship. Practical implications The study provides implications to consumers, investors, managers and policymakers. Firstly, consumers have to be more aware of CSR initiatives of companies, and they should support those companies to do more. Secondly, investors can use the ESG disclosure score as a signal for the level of CSR activities, which negatively affects firm performance. Thirdly, managers have to consider CSR more seriously and spend CSR amount wisely after proper research and not just to meet the mandatory limit. In addition, managers have to take necessary actions to make the public aware of the CSR activities of the company to gain an advantage in the future. Finally, policymakers have to give more emphasis on the promotion of CSR activities to reach the ultimate consumers who lie in the remote areas of the country, and more awareness has to be given to them regarding CSR activities. Originality/value The findings contribute to the literature by providing insights on CSR disclosure and firm performance relationship in India, an emerging market with increasing international attention where such studies are scant and less clear, especially after the amendments in the Companies Act, 2013. Furthermore, the measurement of CSR disclosure using environmental, social and governance (ESG) score is novel in the Indian context.

scholarly journals Internal Fission Strategies in Corporate Entrepreneurship: A Case Study in China

2019 ◽  
Vol 11 (19) ◽  
pp. 5275
Author(s):  
Wu Zhao ◽  
Wei Liu ◽  
Yun Chen
Keyword(s):  
Organizational Context ◽  
Emerging Market ◽  
Corporate Entrepreneurship ◽  
Manufacturing Firm ◽  
Fission Process ◽  
Organizational Settings ◽  
Study Approach ◽  
Entrepreneurial Activities ◽  
Development And Management

Although the research of corporate entrepreneurship has continued to advance, few studies investigate corporate entrepreneurial activities within existing organizations in emerging market firms based on a case study approach. Building on a case study of PHNIX, a Chinese manufacturing firm, we draw on the literature on corporate entrepreneurship to develop a framework for understanding the occurrence, development and management of corporate entrepreneurial activities in organizational settings, and present a typology of some of the strategies that can be used in the process of corporate entrepreneurship. The findings considered the elements of entrepreneurial insight, pro-entrepreneurial organizational antecedents, knowledge sharing activities and internal incubation represent the core work in the fission process of corporate entrepreneurship. As such, we conclude with a discussion of theoretical and practical implications for further understanding the essence of corporate entrepreneurship in a complex organizational context. In addition, managers seeking to corporate entrepreneurship could benefit from the findings enabling them to understand and even adopt some of the principles and fission strategies used by PHNIX.

Upheaval in the distribution of power in the world economy: Problems and outlook of the world economy to 2050

2017 ◽  
pp. 114-127 ◽  
Author(s):  
V. Klinov
Keyword(s):  
Economic Policy ◽  
International Trade ◽  
World Economy ◽  
Emerging Market ◽  
Detailed Review ◽  
Depressed State ◽  
Industry Output ◽  
The World ◽  
Distribution Of Power ◽  
The Eu

Causes of upheaval in the distribution of power among large advanced and emerging market economies in the XXI century, especially in industry output and international trade, are a topic of the paper. Problems of employment, financialization and income distribution inequality as consequences of globalization are identified as the most important. Causes of the depressed state of the EU and the eurozone are presented in a detailed review. In this content, PwC forecast of changes in the world economy by 2050, to the author’s view, optimistically provides for wise and diligent economic policy.

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