A bird in the hand is better than two in the bush: Investigating the relationship between financial slack and profitability in business groups

2021 ◽  
pp. 234094442110545
Author(s):  
Vivien Lefebvre
Keyword(s):  
Business Groups ◽  
Theory Of The Firm ◽  
Business Group ◽  
Jel Classification ◽  
Financial Slack ◽  
Privately Held Firms ◽  
The Impact ◽  
The Relationship ◽  
Better Than ◽  
Privately Held

Using arguments from the behavioral theory of the firm, agency theory, and the literature on internal capital markets, this article investigates the relationship between financial slack and firms’ profitability in standalone versus business group–affiliated firms. Using a large sample of French privately held firms, we show that there is a quadratic, inverse U-shape relationship between financial slack and profitability for privately held firms. We observe that the relation is steeper for business group affiliated firms than for standalone firms, which is consistent with the idea that firms in business groups are in competition for the business groups resources. Moreover, we explore whether business groups characteristics and position and weight of a given affiliated firm in the business group organization influence the impact of financial slack on profitability. Our results show that for firms that are closest to the business group head firm and that have a higher weight in the business groups, the quadratic, inverse U-shaped relationship is steeper. These findings suggest that the bargaining power that firms have in business groups plays an important role in explaining the relation between financial slack and profitability. JEL CLASSIFICATION: G32, L22 and L25.

scholarly journals THE IMPACT OF COVID 19 IN THE DEVELOPMENT OF THE STUDENT BUSINESS GROUP OF THE ACCOUNTING STUDY PROGRAM AT THE AKADEMI AKUNTANSI PGRI JEMBER

2021 ◽  
Vol 4 (2) ◽  
pp. 455-462
Author(s):  
Suwarso
Keyword(s):  
Direct Observation ◽  
Business Students ◽  
Business Groups ◽  
Business Group ◽  
Study Program ◽  
Group Experiences ◽  
The Impact ◽  
The Relationship

This study aims to determine the impact of covid 19 in the development of the student businessgroup of the accounting study program at the Akademi Akuntansi PGRI Jember 2021. Themethod used in this research is direct observation in the field. From the results of research onseveral student businesses, various findings were obtained. This research is qualitative in naturewith samples taken from students who carry out business activities. The results of this studyindicate that the impact of covid 19 in the development of business groups of students in theaccounting study program at the Akademi Akuntansi PGRI Jember of Accounts has two impacts,namely positive and negative, that this student business group experiences problems withdecreasing product processing, promotion / advertising increases but decreases in sales, pricesand services. experienced an increase with a low profit level, the relationship between businessmembers was maintained well, while the customers continued to establish a morecommunicative relationship, there was an increase in high enthusiasm for striving earnestly andwilling to learnKeywords: Business, Students, Covid 19.

scholarly journals Advertising Media Impact in Consumer Buying Behavior

2019 ◽  
Vol 8 ◽  
pp. 54-56
Author(s):  
Ashmita Dahal Chhetri
Keyword(s):  
Consumer Behavior ◽  
Young Male ◽  
Electronic Media ◽  
Buying Behavior ◽  
Media Impact ◽  
High Degree ◽  
The Impact ◽  
Buying Behaviors ◽  
The Relationship ◽  
Better Than

Advertisements have been used for many years to influence the buying behaviors of the consumers. Advertisements are helpful in creating the awareness and perception among the customers of a product. This particular research was conducted on the 100 young male and female who use different brands of product to check the influence of advertisement on their buying behavior while creating the awareness and building the perceptions. Correlation, regression and other statistical tools were used to identify the relationship between these variables. The results revealed that the relationship between media and consumer behavior is positive. The adve1tising impact on sales and there is positive and high degree relationship between advertising and consumer behavior. The impact on advertising of a product of electronic media is better than non-electronic media.

scholarly journals CSR and corporate taxes: Substitutes or complements?

2021 ◽  
pp. 234094442110022
Author(s):  
Lukas Timbate
Keyword(s):  
Social Responsibility ◽  
Theory Of The Firm ◽  
Jel Classification ◽  
Aspiration Level ◽  
Corporate Tax ◽  
Business World ◽  
Conflicting Evidence ◽  
Tax Payments ◽  
Corporate Social ◽  
The Relationship

There is a debate in academia and the business world on whether tax payments should be considered part of firms’ social responsibility. Existing literature provides conflicting evidence on the relationship between corporate tax payments and corporate social responsibility (CSR). Borrowing a concept from a behavioral theory of the firm (BTOF), this study attempts to present a more refined model on the relationship between the two. The results in this study reveal that as firms’ performance rises further above their aspiration level, they are less likely to show better CSR performances and are also less likely to avoid taxes. Firms performing just above their aspiration level show higher CSR performances and firms performing nearby (both below and above) their aspiration level avoid more taxes. In conclusion, firms’ CSR and tax payment decisions are related to the desire to meet or beat an aspiration level or sustain competitive advantage than being ethical or unethical. JEL CLASSIFICATION M14; H26

scholarly journals THE IMPACT OF M&A TRANSACTIONS ON THE GROWTH OF THE BANKS’ MARKET VALUE

2021 ◽  
Vol 5 (40) ◽  
pp. 45-54
Author(s):  
L. Prymostka ◽  
N. Pantielieieva ◽  
I. Krasnova ◽  
V. Lavreniuk ◽  
O. Lytvynenko
Keyword(s):  
Economic Development ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Jel Classification ◽  
Economic Indicators ◽  
Level Of Economic Development ◽  
Banking Business ◽  
Economic Trends ◽  
The Impact ◽  
The Relationship

Abstract. The globalization of markets, the need to comply with modern economic trends and introduce new technological solutions to increase the profitability of the banking business have significantly intensified the processes of mergers and acquisitions in the banking sector. M&A processes are long and complex, their results are difficult to forecast in lack of actual detailed research. The diversity of the results of the available research requires updating the data based on larger volumes of transactions and larger time intervals. The purpose of the article is to substantiate two hypotheses: first, the impact of M&A agreements especially on the increase in the value of banks; and impact of factors that show economic development level on the value of banks. The object of the study is the relationship between the value of commercial banks in domestic and foreign financial markets, M&A agreements, as well as economic indicators published by the World Bank and measuring the level of economic development of countries. The article uses statistical modeling method. The constructed model of linear regression allows to state that the fact of influence of M&A on growth of cost of consolidated banks is fair for 54.8% of cases. The study shows that the M&A processes have the greatest impact on the value of banks in the interval of 3—5 years after the conclusion of the agreement. Analysis of the relationship between economic indicators and the growth of bank value shows that the greatest impact on the value of banks has percent of the growth of GDP and GDP per capita, but the low value of the determinant at 22.9% indicates a low dependence of bank value on the level of economic indicators in general. It was found that external factors do not directly affect the growth in the value of banks in the process of M&A transactions. The question of expanding the system of factors that will influence the M&A processes and, as a consequence, the value of the banks, will be the subject of further research. Keywords: globalization of markets, mergers and acquisitions of banks, consolidation, M&A dynamic, market capitalization, bank value. JEL Classification Е44, Е47, G14 Formulas: 2; fig.: 4; tabl.: 4; bibl.: 14.

Aspiration, foreignness liability and market potential

2018 ◽  
Vol 35 (6) ◽  
pp. 1009-1032
Author(s):  
Lee Li ◽  
Gongming Qian ◽  
Zhengming Qian ◽  
Irene R.R. Lu
Keyword(s):  
Performance Feedback ◽  
Small Firms ◽  
Theory Of The Firm ◽  
Market Potential ◽  
Content Type ◽  
Country Market ◽  
International Behavior ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

PurposeUsing behavioral theory of the firm, the purpose of this paper is to examine how a small firm’s performance relative to historical and social aspirations is related to its international entrepreneurial orientation (IEO). This study also explores two environmental factors, liability of foreignness (LoF) and host-country market potential (HMP), as the moderators for the relationship of performance and IEO.Design/methodology/approachThis study uses survey for data collection from Canadian small firms and employs regression models for data analysis.FindingsThe results show that small firms demonstrate stronger IEO when their performance is below aspirations, but their IEO diminishes when their performance exceeds aspirations. The authors also found that a small firm’s LoF does not moderate the impact of its performance feedback on IEO. However, the authors found HMP plays a moderating role when a small firm’s performance is below aspirations.Originality/valueThis study investigates the relationship of IEO to aspiration and found that this relationship is moderated by HMP. The study advances our knowledge on small firms’ international behavior.

A Multiple Measure of Organizational Performances and its Effect on Distinctive Marketing Competencies: An Empirical Study of India and the Maldives

2018 ◽  
Vol 3 (3) ◽  
pp. 129-142
Author(s):  
Divya Keerthika ◽  
Subburaj Alagarsamy
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Jel Classification ◽  
Validity And Reliability ◽  
Marketing Resources ◽  
Automobile Sales ◽  
Resources And Capabilities ◽  
The Impact ◽  
The Relationship

Objective - The role of knowledge management and competencies related to marketing skills are essential for Indian and Maldivian businesses, due to the emerging economy and globalization. This study therefore aims to identify the impact of marketing competencies on organizational performance in automobile sales centers, by reviewing the relationship between marketing competencies and firm performance, to support interest and investments in such a concept. Methodology/Technique - 424 respondents (327 Indian samples and 97 Maldivian samples) were randomly selected for the research, with a 71% response rate. The first section of the questionnaire consists of questions related to marketing competencies (32 items) and the second section contains items related to organizational performance (10 items), and the last part includes questions about the respondents' demographical differences. After the data collection, construct validity and reliability statistic tests were conducted to check the validity and reliability of the instrument using IBM SPSS AMOS 23. Findings - The structural equation modelling results for the Indian and the Maldivian samples reveal that marketing competencies have a significant and positive affect on organizational performance. Novelty - This study may be useful for policymakers and top-level managers in the automobile sector; this study provides empirical insights into how the performance of the firm is affected by marketing competencies. Type of Paper: Empirical. Keywords: Marketing Competency; Marketing Resources and Capabilities; Automobile Sales Centers; India; Maldives. JEL Classification: M30. M31. M37. M39

Solidarity Forever? The NDP, Organized Labour, and the Changing Face of Party Finance in Canada

2009 ◽  
Vol 42 (3) ◽  
pp. 657-678 ◽  
Author(s):  
Harold J. Jansen ◽  
Lisa Young
Keyword(s):  
Political Economy ◽  
Nous Avons ◽  
Trade Union ◽  
Democratic Party ◽  
National Party ◽  
Nous Concluons ◽  
The Impact ◽  
The Relationship ◽  
Better Than ◽  
New Democratic Party

Abstract.We consider the impact of changing Canadian national party finance laws that banned trade union donations on the relationship between the New Democratic party (NDP) and organized labour. Although the changed laws have required a restructuring of the relationship between the two actors, we find evidence of a continued commitment to co-operation. We conclude that accounts that stress the ideological affinity between the NDP and labour explain the preservation of the relationship better than political economy or rational exchange models.Résumé.Nous considérons les changements apportés aux lois canadiennes sur le financement des partis politiques, lois qui ont banni les donations des syndicats, dans la perspective de leur incidence sur la relation entre le Nouveau Parti démocratique (NPD) et les syndicats. Malgré le fait que les nouvelles lois ont nécessité une restructuration de la relation entre les deux acteurs, nous avons découvert la présence d'un engagement continu envers la coopération. Nous concluons que les interprétations qui mettent l'accent sur l'affinité idéologique entre le NPD et les syndicats expliquent mieux le maintien de cette relation que l'économie politique ou les modèles d'échange rationnel.

scholarly journals Effective Human Resources Practice and Employee Engagement: The Mediating Roles of Organizational Support

2020 ◽  
Vol 5 (1) ◽  
pp. 74-83
Author(s):  
Romat Saragih ◽  
Arif Partono Prasetio
Keyword(s):  
Human Resources ◽  
Employee Engagement ◽  
Human Resource ◽  
Organizational Support ◽  
Perceived Organizational Support ◽  
Jel Classification ◽  
Human Resource Practice ◽  
Telecommunication Company ◽  
The Impact ◽  
The Relationship

Objective - Telecommunication companies need their people to engage in their activities to achieve organizational goals. So, employee engagement became a crucial aspect of a company that struggles to win the competition. Some literature shows that human resource practice affects employee engagement. The present study examines the impact of perceived organizational support as a mediator on the relationship. Methodology/Technique - Data were collected from a branch office of the biggest telecommunication company in Bandung during May 2019. The questionnaires were distributed through the human resources department for four weeks. We analyze 112 valid responses by using SPSS and Macro Process. Findings - By conducting regression with bootstrapping we found that perceived organizational support mediates the relationship between effective human resources practice and employee engagement. The result suggests that a telecommunication company should practice good human resources practice including proper recruitment, training & development, reward, career advancement, and employee relation so that the employees can perceive its support and increase their engagement. Novelty – This finding provides the implication that good management of human resources practice and perceived organizational support can increase employee engagement. Type of Paper - Empirical Keywords: Employee Engagement, Human Resource Practice, Perceived Organizational Support. JEL Classification: M12, M19

Effective Use of Information Systems/Technologies in the Mergers and Acquisitions Environment

2010 ◽  
Vol 6 (2) ◽  
pp. 65-84 ◽  
Author(s):  
Hung W. Chu ◽  
Minh Q. Huynh
Keyword(s):  
Information Systems ◽  
Mergers And Acquisitions ◽  
New Products ◽  
Theory Of The Firm ◽  
Growth Strategies ◽  
Future Studies ◽  
Effective Use ◽  
The Impact ◽  
Better Than ◽  
Resource Based Theory

In this study, the authors examine the effects of information systems/technologies (IS/T) on the performance of firms engaged in growth strategies based on mergers and acquisitions (M&A). A model derived from a resource-based theory of the firm is developed to predict the influence of IS/T on performance of firms. Data on the financial performance of 133 firms are used to gauge the impact of IS/T on various M&A objectives. The results suggest that IS/Ts implement M&A objectives that seek to increase overall efficiency better than those that seek to introduce new products or efforts to increase sales. Future studies to examine the process of introducing new products from resource-based theory are suggested.

Assessing the Impact of Income Inequality on Economic Growth

2017 ◽  
Vol 65 (1-4) ◽  
pp. 1-26 ◽  
Author(s):  
Rohan Joshi
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Positive Impact ◽  
Negative Influence ◽  
Jel Classification ◽  
Indian States ◽  
Simon Kuznets ◽  
The Impact ◽  
The Relationship ◽  
Modern Perspective

The nature of the relationship between income inequality and economic growth, first formalised by Simon Kuznets in 1950, has come under much debate of late. At present, one understanding of this relationship is that given by what Oded Galor called the ‘modern perspective’, which, pointing the direction of causation from income inequality to economic growth asserts that the former imposes a significantly negative influence on the latter. To investigate the same in the context of India, subsequently, this study adopts the typical cross-country approach taken by other studies in this area and estimates the nature of the aforementioned relationship across a cross-section of Indian states. The results, however, disappointingly contrary to the ‘modern perspective’, show a strong significant positive impact of the existence of inequality on growth rates of Indian states, which, if anything, statistically asserts the existence of a trade-off between the two. JEL Classification: D63, O10, O40, O47

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