ENVIRONMENTAL REGULATION IMPROVES THE FIRM PERFORMANCE IN THE PAPER INDUSTRY IN CHINA

2021 ◽  
pp. 1-32
Author(s):  
YONGLIANG YANG ◽  
LILI DING ◽  
YI LI
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Paper Industry ◽  
Average Treatment Effect ◽  
Small Scale ◽  
Positive Role ◽  
Firm Level ◽  
Innovation Ability ◽  
The Relationship

This research develops a difference-in-differences (DID) model to explore the relationship between environmental policy (The Measures for the Administration of Permits for the Discharge of Key Water Pollutants in the Huaihe and Taihu River Basins, MAPD) and the performance of firms involved in the paper and paper products industry (MPP) in China. Cost and innovation are introduced as mediators to explore the mediating effects. A firm-level dataset from 1998 to 2007 is adopted for empirical study. The findings support the positive role of the MAPD, and the average treatment effect is 0.016.The heterogeneity analysis shows that the MAPD exerts a positive impact on non-state-owned and small-scale enterprises, with coefficients of 0.018 and 0.021, respectively. Moreover, MAPD increases enterprise costs harming firm performance. On the other hand, it can promote firm performance by improving innovation ability.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Managing technology transfer between coopetitive firms: the roles of coopetition, asset specificity and justice

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruijia Liu ◽  
Jianjun Yang ◽  
Feng Zhang
Keyword(s):  
Technology Transfer ◽  
Positive Impact ◽  
Exchange Process ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Informal Governance ◽  
Positive Role ◽  
Content Type ◽  
The Relationship

Purpose Prior studies have demonstrated the important role of coopetition in firms’ innovation. Based on the paradox perspective, this study aims to focus on technology transfer, the pre-innovation stage, to provide a supplementary understanding of the complementarity and contradictoriness of paradoxical coopetition, with the formal and informal governance mechanisms which are suitable with this understanding in coopetition. Design/methodology/approach This study conducted an original, multisource survey of 280 Chinese manufacturing firms. Hypotheses were tested through multiple regressions. Findings Coopetition has a positive impact on technology transfer between firms. Along with the increasing specificity of assets invested ex ante as a kind of formal governance mechanism, the relationship between coopetition and technology transfer becomes stronger. Meanwhile, inter-firm justice as an informal governance mechanism in the technology transfer process can be positively affected by coopetition between partners. Originality/value The study adds to the business-to-business coopetition literature on how to properly treat and use coopetition in technology transfer. Using the paradox perspective in the Chinese context, the findings emphasize the positive role of coopetition in the inter-firm technological exchange process, enriching the understanding of the complementary and contradictory features of paradoxical coopetition. To govern coopetitive relationships, the firms should also implement two fundamental governance mechanisms, that is, specialty asset and inter-firm justice.

The mediating role of environmental innovation in the relationship between environmental management and firm performance in a multi-stakeholder environment

2013 ◽  
Vol 13 (2) ◽  
pp. 119-137 ◽  
Author(s):  
K. Grekova ◽  
H.J. Bremmers ◽  
J.H. Trienekens ◽  
R.G.M. Kemp ◽  
S.W.F. Omta
Keyword(s):  
Environmental Management ◽  
Firm Performance ◽  
Product Innovation ◽  
Positive Impact ◽  
Mediating Effect ◽  
Environmental Innovation ◽  
Mediating Role ◽  
Environmental Process ◽  
The Relationship

Nowadays, firms are increasingly challenged to bridge potentially conflicting economic interests of primary commercial stakeholders and sustainability demands from secondary non-commercial stakeholder groups. While a number of firms view investments in environmental management as disconnected from their value-creating activities, others have reported achieved cost efficiency and differentiation advantages. Prior research suggests that environmental innovation might be the missing link between environmental management and firm performance. However, the mediating effect of environmental innovation in the relationship between environmental management and a firm's performance had not been empirically tested so far. Our paper provides a contribution by conducting an empirical investigation into this possible mediating effect. Although the presumed mediating role of environmental innovation suggests that it is influenced by internal environmental management, environmental innovation literature is especially concerned with the role of external stakeholders in environmental innovation. This study investigates the role of the engagement of stakeholders such as supply chain partners, industry, and public authorities in environmental impact reduction. We hypothesise that environmental innovation positively mediates the relationship between environmental management and firm performance, and that the engagement of stakeholders has a positive impact on environmental innovation. The research model was tested with a variance-based structural equation model using data from 90 Dutch food and beverage firms. The results confirm the positive mediating effect of environmental process innovation on the relationship between environmental management and cost efficiency advantage. Environmental product innovation contributes to a differentiation advantage but it is not significantly influenced by environmental management. So we could not support a positive mediating effect of environmental product innovation on the relationship between environmental management and differentiation advantage. Instead, environmental collaboration with supply chain partners has a strong positive impact on environmental product innovation. It also positively influences environmental process innovation but this influence is much weaker than the influence of internal environmental management. Our findings can assist managers in their decision making regarding the implementation of environmental innovations and environmental collaboration with external parties. The study is also relevant to policy makers as a tool to assess the appropriateness of their policy.

scholarly journals Proactive environmental strategy and firm performance: The moderating role of corporate venturing

2020 ◽  
Vol 38 (7) ◽  
pp. 654-676
Author(s):  
Chengli Shu ◽  
Jinxin Liu ◽  
Mengli Zhao ◽  
Per Davidsson
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Political Influence ◽  
Moderating Effect ◽  
Environmental Strategy ◽  
Green Management ◽  
Corporate Venturing ◽  
Proactive Environmental Strategy ◽  
The Relationship

This article investigates how two types of proactive environmental strategies (PESs) – proactive green management and green political influence – affect firm performance directly and under varying conditions characterising corporate venturing activities (domestic versus international). The results obtained by analysing a multi-informant dataset reveal that proactive green management has a stronger positive impact on firm performance than green political influence does. Moreover, international venturing has a greater positive moderating effect than domestic venturing on the link between proactive green management and firm performance, whereas, domestic venturing has a stronger positive moderating effect than international venturing on the relationship between green political influence and firm performance. This article contributes by differentiating between two important forms of corporate venturing, by distinguishing two important types of PESs and by offering a more granular framework for aligning corporate venturing activities with PESs.

MACROECONOMIC DETERMINANTS OF FIRM PERFORMANCE: EVIDENCE FROM TURKEY

2019 ◽  
pp. 1-20
Author(s):  
ÖMER TUĞSAL DORUK
Keyword(s):  
Firm Performance ◽  
Manufacturing Sector ◽  
Firm Level ◽  
Macroeconomic Factors ◽  
Economic Growth Rate ◽  
Macroeconomic Conditions ◽  
Financial Depth ◽  
Macroeconomic Determinants ◽  
The Relationship

The relationship between macroeconomic factors and firm performance is important, especially for growth and development in developing countries. In this paper, a firm-level dataset is used for estimating the role of macroeconomic factors on firm performance in the period 2006–2017 for the Turkish manufacturing sector by using GMM model. Four macroeconomic factors are considered for estimating their roles on firm performance; openness, financial depth, real exchange rate, and economic growth rate. The obtained findings show that the macroeconomic conditions have a significant effect on firm performance in the manufacturing sector in Turkey.

scholarly journals The role of firm characteristics on the relationship between gender diversity and firm performance

2016 ◽  
Vol 54 (6) ◽  
pp. 1407-1419 ◽  
Author(s):  
Mehmet Nihat Solakoglu ◽  
Nazmi Demir
Keyword(s):  
Firm Performance ◽  
Emerging Market ◽  
Gender Diversity ◽  
Firm Level ◽  
Content Type ◽  
Specific Factors ◽  
And Performance ◽  
The Relationship ◽  
Measures Of Performance

Purpose – The purpose of this paper is to understand the effect of gender diversity on firm performance and evaluate how that relationship is influenced by some firm-specific factors for firms in an emerging market. Design/methodology/approach – The authors collected firm level financial data and firm level characteristics for the firms listed in BIST100 index of Borsa Istanbul for the period between 2002 and 2006. Due to endogeneity of gender diversity and firm performance, the authors utilize unbalanced panel data with 2SLS specification. To observe the sensitivity of results across measures of performance, three measures of performance, two accounting-based and one market-based, are utilized. Findings – Overall, the authors find some weak evidence that gender diversity impacts firm performance. In particular, the findings imply significant association between gender diversity and firm performance for firms that are targeting local markets, for firms in the financial sector and for firms that are family or block-owned. Moreover, findings are fragile with respect to the measures of diversity and performance selected. Originality/value – Although the relationship between gender diversity and firm performance are investigated several times in the past, there are not many studies that examines the role of firm-specific factors on that relationship. By revealing the factors that are important, this study provides an explanation why the existing literature leads to mixed results.

scholarly journals INTER-RELATIONSHIP BETWEEN FIRM GROWTH AND PROFITABILITY IN A CONTEXT OF ECONOMIC CRISIS

2019 ◽  
Vol 20 (1) ◽  
pp. 86-106 ◽  
Author(s):  
Yolanda Fuertes-Callén ◽  
Beatriz Cuellar-Fernández
Keyword(s):  
Economic Crisis ◽  
Firm Growth ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
Manufacturing Companies ◽  
Short Term ◽  
Export Intensity ◽  
Firm Level ◽  
The Relationship

This paper examines the dynamics between growth and profitability in an economic crisis context by considering the endogeneity of this relationship. It also analyzes the role of innovation and export intensity in the growth-profit relationship. Using a large firm-level dataset comprising Spanish manufacturing companies during the pre-crisis (2000–2007) and the crisis (2008–2014) period, static and dynamic panel data models are estimated. The analysis suggests the following results. First, in the short term, growth has a positive impact on profits, while the effect of profits on growth depends on the measure of growth used. So, employee’s growth requires previous profit but profit does not play a major role as determinant of sales growth. Second, profit rates are found to persist in the short term. In contrast, a reversion of turnover and employees growth rates is observed. Thirdly, the moderation analysis applied shows that the strategy that has enabled firms to grow is export. Moreover, the influence of the export intensity on profitability in the economic crisis period is obtained indirectly through sales and employee’s growth. Unlike expected, innovation efforts do not moderate the relationship between profitability and firm growth.

scholarly journals The Effect Of Environmental, Social and Governance (ESG) Disclosure on Firm Performance: The Role of Ceo Tenure

2020 ◽  
Vol 10 (2) ◽  
pp. 261
Author(s):  
Agus Triyani ◽  
Suhita Whini Setyahuni ◽  
Kiryanto Kiryanto
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Ceo Tenure ◽  
Comprehensive Picture ◽  
Multiple Regression Technique ◽  
The Relationship

This paper aims to investigate the effect of environmental, social, and governance (ESG) disclosure on firm performance, which is measured by ROE. We also analyze the role of CEO tenure on the relationship between ESG disclosure and ROE. We used 159 samples of public listed companies in Indonesia during period of 2012 to 2016. We employed multiple regression technique to assess the research model. The findings show that ESG disclosure has a positive impact on ROE. The better the quality of ESG disclosure can enhance the level of ROE. In addition, we found a moderating effect of CEO tenure on the relationship between ESG disclosure and ROE. However, CEO tenure plays a role in decreasing the relationship between ESG disclosure and ROE. Our empirical evidence support the process of sustainability investment by using ESG data analysis, to get more comprehensive picture regarding companies sustainability performance. The findings of this study are expected to provide strong evidence regarding the importance of ESG disclosure in enhancing corporate performance. Furthermore, the findings are also expected to be able to ensure potential investors in using ESG disclosure to evaluate corporate sustainability performance.

scholarly journals Revisiting the relationship between board practices and firm performance

2021 ◽  
Vol 17 (1) ◽  
pp. 60-68
Author(s):  
Andrews Owusu
Keyword(s):  
Firm Performance ◽  
Decision Process ◽  
Executive Director ◽  
Negative Impact ◽  
Positive Impact ◽  
Chief Executive ◽  
Executive Directors ◽  
Board Size ◽  
The Relationship

This paper examines whether and how firm performance is influenced by board practices in Ghana. The analysis shows that chief executive officer (CEO) duality has a negative impact on firm performance, evidence that supports agency theory’s position. Further analysis shows that the smaller Ghanaian board size appears to be optimal because it has a positive impact on firm performance. However, the larger non-executive director representation on the board has no impact on firm performance. Overall, these results suggest that the Ghanaian firms should be encouraged to separate the role of CEO and the board chair positions, have a board size of between eight and nine, and make good use of non-executive directors’ time in the board decision process if they are to achieve better performance.

Influence of Confucian culture on entrepreneurial decision making using data from China's floating population

2020 ◽  
Vol 48 (7) ◽  
pp. 1-12
Author(s):  
Ran Xiong ◽  
Ping Wei
Keyword(s):  
Decision Making ◽  
Floating Population ◽  
Positive Role ◽  
Confucian Culture ◽  
Chinese Nation ◽  
Using Data ◽  
Entrepreneurial Decision ◽  
And Behavior ◽  
The Relationship

Confucian culture has had a deep-rooted influence on Chinese thinking and behavior for more than 2,000 years. With a manually created Confucian culture database and the 2017 China floating population survey, we used empirical analysis to test the relationship between Confucian culture and individual entrepreneurial choice using data obtained from China's floating population. After using the presence and number of Confucian schools and temples, and of chaste women as instrumental variables to counteract problems of endogeneity, we found that Confucian culture had a significant role in promoting individuals' entrepreneurial decision making among China's floating population. The results showed that, compared with those from areas of China not strongly influenced by Confucian culture, individuals from areas that are strongly influenced by Confucian culture were more likely to choose entrepreneurship as their occupation choice. Our findings reveal cultural factors that affect individual entrepreneurial behavior, and also illustrate the positive role of Confucianism as a representative of the typical cultures of the Chinese nation in the 21st century.

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