Wages and Firm Ownership: A Study of the Manufacturing Sector of India

2021 ◽  
pp. 232102222110514
Author(s):  
Santosh Kumar Sahu ◽  
Ankita Goel
Keyword(s):  
Fixed Effects ◽  
Wage Gap ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Export Market ◽  
Foreign Firms ◽  
Firm Age ◽  
Labour Intensity ◽  
Size Firm ◽  
Jel Classifications

From an ownership viewpoint, we analyse the determinants of significant wage differences for India’s manufacturing sector. We use data from the Centre for Monitoring Indian Economy’s Prowess database from 2000–2015. Using fixed-effects and Blinder–Oaxaca decomposition method, we confirm that foreign firms pay higher wages and salaries than domestic firms. Most importantly, productivity, participation in the export market, firm size, firm age and profit margin explain the inter-firm and intra-firm differences in labour intensity for the manufacturing firms in the Indian economy. The wage gap seems higher for intra-firm than the inter-firm, indicating that demand for labour is higher within the sector. JEL Classifications: E24, G32, L6, C13

The impact of screening criteria on entrepreneurship research

2008 ◽  
Vol 11 (1) ◽  
pp. 27-38
Author(s):  
Gregory B. Murphy ◽  
Robert Hill
Keyword(s):  
Firm Size ◽  
Firm Growth ◽  
Theory Development ◽  
Manufacturing Firms ◽  
Direct Impact ◽  
Firm Age ◽  
Screening Criteria ◽  
Entrepreneurship Research ◽  
Size Firm ◽  
The Impact

Entrepreneurship researchers use various types of screening criteria to select samples for study. In that selecting these criteria is, in effect, choosing a definition or model of entrepreneurship, the consequences are immense and have had a direct impact on the generalizability of research and theory development in our field. The purpose of this study is to help entrepreneurship researchers better understand these consequences and, thereby, improve our understanding of entrepreneurial phenomenon. Four of the most commonly used screening criteria are included in this study: firm age, firm size, firm growth, and innovation. Based on a sample of 368 manufacturing firms, the results indicate that few firms fit all or even most of the considered screening criteria and independent-dependent variable relationships vary considerably by screening criteria selection.

ROOTING IN NANYANG: HOW EFFICIENT ARE CHINESE MANUFACTURING FIRMS IN MALAYSIA?

2019 ◽  
pp. 1-22
Author(s):  
MIAO ZHANG ◽  
MD ASLAM MIA
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Strategic Decision ◽  
Foreign Firms ◽  
Chinese Government ◽  
Chinese Firms ◽  
Firm Level ◽  
Managerial Skills ◽  
Level Data ◽  
Belt And Road

While China’s Belt and Road Initiative (BRI) is widely considered as an attempt to reshape the global geo-political landscape through its massive investment/engagement in capital-intensive infrastructure, an often-neglected topic is the performance of Chinese-funded firms in manufacturing sector. Therefore, this paper sought to examine the efficiency levels of Chinese manufacturing firms in Malaysia. By using firm-level data supplied by Malaysia’s Department of Statistics, this study employs Data Envelopment Analysis to examine the efficiency levels of Chinese manufacturing firms in comparison with local and other foreign firms in 2010 and 2015. The results show that Chinese manufacturing firms show higher efficiency levels than local and foreign firms in 2010 and 2015, implying that these firms have the potential to transfer technology and share managerial skills to local firms. However, the efficiency levels of Chinese firms deteriorated from 2010 to 2015, suggesting that firms’ relocations decision may have been driven by distortions created by incentives and other supports provided by the Chinese government rather than by firms’ efforts to sustain or raise efficiency levels. The findings suggest that Chinese firms have to be careful in making strategic decision to relocate operations abroad to ensure that government initiatives are in sync with firm-level performance.

scholarly journals Firm Size, Firm Age, and Firm Profitability: Evidence from China

2021 ◽  
Vol 28 (1) ◽  
pp. 101
Author(s):  
Md. Jahidur Rahman ◽  
Liu Yilun
Keyword(s):  
Stock Market ◽  
Firm Size ◽  
Fixed Effects ◽  
Negative Relationship ◽  
Future Research ◽  
Fixed Effects Model ◽  
Firm Age ◽  
Public Firms ◽  
Firm Profitability ◽  
Size Firm

This study aims to investigate the relationship among firm size, firm age, and firm profitability in China’s stock market. We use data from all the public firms in China’s stock market from 2008 to 2018 and adopt a fixed effects model to examine these relationships. We find a positive relationship between firm size and profitability and a negative relationship between firm age and profitability, which is consistent with existing studies conducted in other countries. The findings of our study can contribute to future research in China by offering a sound basis and appropriate reference point, given that no previous research has been conducted in China on this exact topic. This study also offers a comprehensive model for use in future studies.

scholarly journals IMPACT OF BOARD STRUCTURE ON FIRM PERFORMANCE IN THE NIGERIAN MANUFACTURING SECTOR

2018 ◽  
Vol 3 (1) ◽  
pp. 56-65
Author(s):  
Rogers A. Akinsokeji
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Fixed Effects ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Board Structure ◽  
Board Size ◽  
General Behaviour ◽  
Panel Data Estimation ◽  
The Impact

In this study, the impact of board structure on firm performance is empirically examined using a large cross section of 50 manufacturing firms in Nigeria and the panel data estimation technique. Both the random and fixed effects methods are adopted to provide robust estimates from the pooled data for the firms over a ten-year period (2005-2014) and the estimations are performed using two measures of firm performance and three measures of board structure. The empirical results from the analysis show that board structure has a significant impact on performance of manufacturing firms in Nigeria. The main source of the impact is through board independence and faintly through board size. However, board composition seems to exert very little effect on firm performance for the sample in the study. Also, firm size is shown to be an essential factor in explaining the general behaviour of firm performance and the pattern of effect that board structure has on firm performance. The effect of size is observed by controlling for it in the performance estimations. The study shows that firm size tends to improve the effect of board structure on performance, apart from EPS. The optimization of board size and composition is desirable for performance especially in a setting like Nigeria with diverse firm characteristics.

scholarly journals Location, Ownership, Origin and the Spillover-Productivity Nexus. Evidence from Uganda Manufacturing Firms

2016 ◽  
Vol 9 (4) ◽  
pp. 198
Author(s):  
John Mayanja Bbale ◽  
John Bosco Nnyanzi
Keyword(s):  
Labor Productivity ◽  
Skill Acquisition ◽  
Firm Size ◽  
Fixed Effects ◽  
Capital Intensity ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Foreign Firms ◽  
Domestic Firms ◽  
Labor Quality

<p>The main purpose of this article is to investigate the drivers of labor productivity in the firms at the intra-industry level with focus on the spillover effects of FDI. Using a fixed effects approach, we estimate an expanded Cobb-Douglas production function in its intensive form to isolate the effects of increased capital intensity on labor productivity as well as the spillovers, using annual Private Sector Investment Survey data collected on the Ugandan manufacturing firms over the period 2007- 2010. Over all, there are significant negative horizontal spillovers for the domestic firms in Uganda, with OECD-originating FDI appearing to be the main source of such effects. By location, these are most adverse in the western and eastern regions and better spillovers can be traced in the central region. Additional findings point to firm size, labor quality and profit as positive contributors to labor productivity, whereas technology gap exhibits a detrimental impact just as we document no significant effect of capital intensity. Larger domestic firms appear to benefit significantly from spillovers in industries where foreign firms have a larger presence. The aforementioned findings reflect the need for well-designed policies to improve the competitiveness of local firms particularly via an incentive-equal opportunity-policy that captures both domestic and foreign investors and to improve infrastructure and other investor-friendly environment in the East and Western parts of Uganda. Similarly, our results suggest that the promotion of joint ventures (foreign) is likely to generate unequivocal benefits to the manufacturing sector in Uganda not only in terms of less negative horizontal spillovers but also from the labor quality, firm size and profit spillovers perspective. Finally, the finding of learning difficulties of domestic firms from foreign firms calls for programs in line with skill acquisition through job training and the review of the curriculum to focus on labor quality.</p>

Determinants of Innovation in Selected Manufacturing Firms in India: Role of R&D and Exports

2018 ◽  
Vol 23 (1) ◽  
pp. 65-84 ◽  
Author(s):  
K. Seenaiah ◽  
Badri Narayan Rath
Keyword(s):  
Manufacturing Sector ◽  
Capital Intensity ◽  
Probit Model ◽  
Manufacturing Firms ◽  
Firm Age ◽  
Key Factors ◽  
Firm Level ◽  
Export Orientation ◽  
Innovation Activities

This article examines the determinants of innovation using selected manufacturing firms in India. Our study is based on 190 manufacturing firms which were surveyed from Bengaluru and Hyderabad cities in India. The results based on panel probit model reveal that exports and R&D expenditure positively and significantly affect the innovation in case of manufacturing sector. Other key factors such as import intensity, manager’s prior experience, and conducting training sessions to the employee at firm level do positively affect the innovation activities. However, firm age and capital intensity negatively affect innovation. The results suggest the policymakers to concentrate more on export orientation policies and investing in R&D through subsidising or creating more R&D incentive projects which would significantly boost innovations in India.

Assessing working capital management efficiency of Indian manufacturing exporters

2020 ◽  
Vol 46 (8) ◽  
pp. 1061-1079 ◽  
Author(s):  
Himanshu Seth ◽  
Saurabh Chadha ◽  
Namita Ruparel ◽  
Puneet Kumar Arora ◽  
Satyendra Kumar Sharma
Keyword(s):  
Fixed Effects ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Exogenous Variables ◽  
Working Capital Management ◽  
Content Type ◽  
Cash Conversion Cycle ◽  
Time Period

PurposeThe purpose of this paper is to empirically investigate the relationship between working capital management (WCM) efficiency and exogenous variables of the Indian manufacturing sector along with its sub-industries that are involved in export activities.Design/methodology/approachPanel regression (fixed effects) was used on a sample of 563 Indian manufacturing firms involved in export activities, covering a time period from 2008 to 2018.FindingsIndustry-wise results showed a significant relation of leverage, net fixed asset ratio, profitability, asset turnover ratio, total asset growth rate and productivity with cash conversion cycle (CCC).Research limitations/implicationsFirstly, having taken a sample from a developing economy, the results of our study may be generalizable only among developing contexts. Secondly, the time period taken in this study (2008–2018) has witnessed several economic fluctuations such as recession and demonetization which might differ for the firms or countries in normal conditions.Practical implicationsAn improved working capital model could advance the firms' performance by reducing the CCC of the firm, thereby creating efficiency in WCM. In addition, the results of this study could be helpful for many stakeholders such as working capital managers, debt holders, investors, financial consultants and others for monitoring the firms.Originality/valueThis study contributes to the existing literature in the relation between WCM efficiency and exogenous variables of the Indian manufacturing firms engaged in the export activities. Moreover, this study is one of the few research studies to investigate this relationship among Indian export firms in different industries, thus filling the gap in similar work done in other countries.

Investor Protection, Firm Informational Problems, Big N Auditors, and Cost of Debt around the World

2013 ◽  
Vol 32 (3) ◽  
pp. 1-30 ◽  
Author(s):  
Ferdinand A. Gul ◽  
Gaoguang (Stephen Zhou ◽  
Xindong (Kevin Zhu
Keyword(s):  
Information Asymmetry ◽  
Lower Cost ◽  
Investor Protection ◽  
Cost Of Debt ◽  
Firm Age ◽  
The World ◽  
Size Firm ◽  
Using Data ◽  
The Cost ◽  
Jel Classifications

SUMMARY: This paper examines the effects of investor protection, firm informational problems (proxied by firm size, firm age, and the number of analysts following), and Big N auditors on firms' cost of debt around the world. Using data from 1994 to 2006 and over 90,000 firm-year observations, we find that the cost of debt is lower when firms are audited by Big N auditors, especially in countries with strong investor protection. Second, we find that firms with more informational problems (i.e., higher information asymmetry problems) benefit more from Big N auditors in terms of lower cost of debt only in countries with stronger investor protection. JEL Classifications: G14; G15; G32; K22; M42.

scholarly journals Stakeholders approach on corporate governance and performance of Vietnamese manufacturing firms

2017 ◽  
Vol 6 (2) ◽  
pp. 61-73
Author(s):  
Thi Thanh Binh Dao ◽  
Thi Kim Anh Tran
Keyword(s):  
Corporate Governance ◽  
Production Function ◽  
Functional Form ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
External Factors ◽  
Executive Board ◽  
Internal Factors ◽  
And Performance ◽  
The Relationship

Corporate governance is one of the most vital issues in this compound environment at present, which is indicated by the fact that the success or failure of firms strongly depends on performance of the control that board of directors and executive board, take on corporations’ activities. This issue has attracted a variety of researches worldwide, and become a popular buzz lately, however there is still limited researches on this topic in Vietnam. In this paper, we focus on manufacturing sector, one of the most important industries in Vietnam economy, which account for 41.2% of total GDP in 2012. By using stakeholder theory and Kitamura’s paper as a corner stone, a model using OLS regression and log functional form for production function, showing the relationship between some external factors and internal factors including corporate governance is built. From the result of the research, it has been found out that internal factors (corporate governance) significantly affect the firm’s performance, whereas external factors (market share) do not really show any influence. In term of production function, this manufacturing sector still benefits from an increase of capital but not that of labor.

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