scholarly journals Financial Performance Feedback and R&D: A Comparison of Different Models

2018 ◽  
Vol 22 (1) ◽  
pp. 01 ◽  
Author(s):  
Michal Jirásek
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Empirical Research ◽  
Performance Feedback ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Current Strategy ◽  
Listed Firms ◽  
Performance Factors

<p><strong>Purpose:</strong> Performance feedback either supports or undermines a firm’s current strategy. R&amp;D is one of the most favoured proxies for a firm’s response to performance feedback and this relation complements the commonly studied influence of innovation (R&amp;D) on a firm’s performance with a backward loop. The performance feedback literature works with a number of models used to empirically test these propositions and this study aims to compare the most common measures and models to locate potentially preferred alternatives for further research.</p><p><strong>Methodology/Approach:</strong> The research uses panel data with 1,558 observations. The sample consists of 208 US stock exchange listed firms followed over the years 2001-2015.</p><p><strong>Findings:</strong> The research suggests that models with separate historical and social aspirations may yield a slightly better fit with the data. However, the findings also indicate differences among R&amp;D related dependent measures and their implications for empirical research. These differences arguably also reflect the underlying construct heterogeneity, therefore, researchers should work carefully with them to correctly explain their findings and provide results comparable to the previous literature.</p><p><strong>Research Limitation/implication:</strong> The limitations of the research rose mainly from the limited number of performance factors studied, which stems from an emphasis on standard financial performance indicators.</p><p><strong>Originality/Value of paper:</strong> The research contributes to the performance feedback literature by complementing a previous study that compared different aspiration models (Bromiley and Harris, 2014). By focusing on financial performance and R&amp;D variables, the research offers the first concise entry point for researchers considering empirical studies on financial performance feedback and R&amp;D relationship.</p>

scholarly journals Evaluating Financial Performance of Saudi Listed Firms: Using Statistical Failure Prediction Models

2019 ◽  
Vol 2 (1) ◽  
pp. 1-18
Author(s):  
Deena Saleh Merza Radhi ◽  
Adel Sarea
Keyword(s):  
Financial Performance ◽  
Prediction Models ◽  
Stock Exchange ◽  
Failure Prediction ◽  
Financial Decisions ◽  
Listed Firms ◽  
Industrial Companies ◽  
Statistical Relationships ◽  
The Given ◽  
Altman Model

The study aims to compare the classification power of three statistical failure prediction models for evaluating financial performance of Saudi Listed Firms. The study sample consisted of 122 listed industrial companies in the Saudi Stock Exchange for the period from 2014 to 2016. Altman model 1968, Kida model and Zmijewski are used as examples of statistical failure prediction models to evaluate the classification power of the given models to assess the financial performance of firms listed on Saudi Stock Exchange. The results showed that Zmijewski model was more powerful in predicting the financial performance of Saudi listed firms than Altman model (1986) and Kida model. The results showed that there are a statistical relationships between some ratios included in the three models and the financal performance of industrial companies, which was measured by EPS. The study recommended users of financial statements of Saudi listed companies to use Zmijewski ?model, which performs well in evaluating their finacial position to be used when making the ?financial decisions.

scholarly journals The Influence of Acquisitions on a Firm’s Performance within a Sector: An Application on Istanbul Stock Exchange

2014 ◽  
Author(s):  
İbrahim Halil Ekşi ◽  
Nasara Banu Güzel ◽  
Rabia Ecem Küçüktaşdurmaz
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
Stock Exchange ◽  
Topsis Method ◽  
Listed Firms ◽  
Positive Effects ◽  
Istanbul Stock Exchange

In recent years it have seen a significant increase in the number of business mergers and acquisitions. There are number of reasons led to this trend. Amongst them it is the need to increase the firm financial performances. This paper mainly is focuses on other different effects of mergers and acquisitions on the financial performance of businesses. In this study, looking at Turkish stock exchange listed firms that have experienced acquisitions or mergers and the effects of such mergers on their performance. In this context, it be looked at textile firms and firms based on stone and land work that experienced acquisitions in 2010. The firms are Altinyildiz in textile and Çimbeton in the mining sectors respectively. Having look at the financial performances of these firms in their respective sectors before the acquisitions (2007, 2008, 2009), the acquisitionsin 2010, 9 rates were used the in TOPSIS method. According to findings, the acquisitioned firm’s show that they have positive effects on the financial performances of the firms. It is observed that there are differences in sectors’ period and degrees. In this case, it’s possible to explain the sectoral dynamics and acquisions of the firms’ integration.

scholarly journals EXAMINATION OF THE EFFECT OF LOGISTICS FUNCTIONS ON FINANCIAL PERFORMANCE OF ORGANIZATION

2021 ◽  
Vol 8 (3) ◽  
pp. 18-26
Author(s):  
Boye AYANTOYINBO ◽  
Adeolu GBADEGESIN
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Financial Performance ◽  
Performance Indicators ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Subject ◽  
Logistic Functions

The contributions of logistics functions to the performance of an organization have been the subject of research over the years. Thus, this present study further examined the effect of outbound logistics functions on financial performance of quoted manufacturing companies in Nigeria. Panel data regression analysis was employed to test the effect of logistics functions on financial performance of the selected companies over a period of five years (2015-2019). Logistic functions costs and financial performance indicators were extracted from secondary data.  The findings of the study showed that logistics function has a positive and significant effect on financial performance of manufacturing companies in Nigeria. Therefore, the companies are implored to pay more attention to logistics functions when aiming at a better financial performance.

scholarly journals An Empirical Test of Capital Structure Theories for the Vietnamese Listed Firms

2019 ◽  
Vol 12 (3) ◽  
pp. 148 ◽  
Author(s):  
Nguyen ◽  
Ho ◽  
Vo
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Empirical Test ◽  
Empirical Studies ◽  
Order Theory ◽  
Asia Pacific ◽  
Method Of Moment ◽  
Pecking Order Theory ◽  
Factors Affecting ◽  
Listed Firms

Raising capital efficiently for the operations is considered a fundamental decision for any firms. Since the 1960s, various theories on capital structure have been developed. Various empirical studies had also been conducted to examine the appropriateness of these theories in different markets. Unfortunately, evidence is mixed. In the context of Vietnam, a rising powerful economy in the Asia Pacific region, this important issue has been largely ignored. This paper is conducted to provide additional evidence on this important issue. In addition, different factors affecting the capital structure decisions from the Vietnamese listed firms are examined. The Generalized Method of Moment approach is employed on the sample of 227 listed firms in Ho Chi Minh City stock exchange over the period from 2008 to 2017. Findings from this study suggest that the Vietnamese listed firms follow the trade-off theory to determine their capital structure (i.e., to determine the optimal debt level). In contrast, no evidence has been found to confirm that the pecking order theory can explain the financing decisions of the Vietnamese listed firms, as previously expected. In addition, findings from this study also indicate that ‘Fund flow deficit’ and ‘Change in sales’ are the most two important factors that affect the amount of debt issued for the Vietnamese listed firms. Implications for academics, practitioners, and the Vietnamese government have also been emerged from the findings of this paper.

scholarly journals The Role of Firm Strategy to Intervene the Influence of Corporate Social Performance on Corporate Financial Performance

2017 ◽  
Vol 2 (3) ◽  
pp. 21-28
Author(s):  
Bayu Aprillianto ◽  
Yosefa Sayekti
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Empirical Studies ◽  
Firm Strategy ◽  
Capital Intensity ◽  
Corporate Financial Performance ◽  
Strategic Csr ◽  
Corporate Social

Objective - A Corporate Social Responsibility (CSR) implementation has been implemented since over 50 years ago. All of the CSR implementation divided into two categories, namely Strategic CSR and Non-Strategic CSR. A Strategic CSR implementation should consider the firm strategy based on the CSR concept and firm strategy. Some empirical studies have tested the influence of CSR on Corporate Financial Performance. The results of those studies are still inconclusive. Methodology/Technique - The purpose of this study is to analyze firm strategy as intervening variable between Corporate Social Performance and Corporate Financial Performance. This study used capital intensity and product differentiation to measure the firm strategy. The samples were 33 companies of LQ-45, listed in Indonesian Stock Exchange. Findings - The results did not indicate that firm strategy intervenes the influence of Corporate Social Performance on Corporate Financial Performance, both directly and indirectly. Novelty - The research suggests future studies to employ the other ratios representing Firm Strategy that will strengthen the literature. Type of Paper - Empirical Keywords: Corporate Financial Performance; Corporate Social Performance; Firm Strategy; Non-Strategic CSR; Strategic CSR. JEL Classification: L25, M14, M41

scholarly journals EFFECT OF INVESTMENT DIVERSIFICATION ON FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE KENYA

2018 ◽  
Vol 3 (2) ◽  
pp. 57
Author(s):  
Rebecca Nasimiyu Wanyonyi
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Research Design ◽  
Positive Relationship ◽  
Economic Environment ◽  
Coefficient Of Determination ◽  
Listed Firms ◽  
Descriptive Research ◽  
Doing Business ◽  
Study Population

The general objective of study was to examine investment diversification effect on the financial performance of agricultural firms listed at NSE. The study employed descriptive research design. The study population consisted of seven listed agricultural firms at NSE. The study employed a census approach because of the small number of agricultural listed firms at the NSE. Secondary panel data was used for a period covering seven years (2011-2017).R squared (coefficient of determination) was 52.80%. which showed that investment diversification explain 52.80% of the dependent variable variations that is financial performance The study also found that horizontal diversification, concentric diversification, conglomerate diversification and vertical diversification had a positive relationship with financial performance. The study suggested that firms should look for better avenues to mitigate the risk of doing business or their operations. Through diversification, a firm is not dependent on a limited number of products, locations, or markets in order to remain competitive and survive in the dynamic economic environment.

scholarly journals Accounting conservatism and earnings management constraints

2014 ◽  
Vol 10 (2) ◽  
pp. 1828-1836
Author(s):  
Gholamreza Karami
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Stock Exchange ◽  
Rapid Development ◽  
Accounting Conservatism ◽  
Significant Relation ◽  
Listed Firms ◽  
Jones Model

The main purpose of this research is to review the relation between accounting conservatism and the limit to earnings management in case of Tehran Stock Exchange (TSE).  There are numerous studies about the noted relation, in countries which their market capital is the main source of firms financing. However, as long as rapid development of TSE, necessity of such studies become more obvious in Iran. So, by analyzing data gathered from 86 listed firms at TSE for years 1380 to 1391, the relation between accounting conservatism and earnings management restrictions was tested using panel data. Givoly and Hayn (2000) approach for measuring accounting conservatism and adjusted jones model for measuring accruals based earnings management were used. The result shows that there is significant relation between accounting conservatism and earnings management restrictions.

scholarly journals IMPACT OF SELECTED DETERMINANTS OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF COMPANIES

2020 ◽  
Vol 14 (2) ◽  
pp. 12-23
Author(s):  
Janka Grofcikova
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Return On Assets ◽  
Return On Equity ◽  
Return On Sales ◽  
The Impact

The role of corporate governance (CG) is to ensure functioning of companies in accordance with their formulated objectives to ensure growth of corporate assets and satisfaction of the owners. In addition to management of the company, there are other stakeholders whose interests need to be considered in meeting the owners' objectives. These include creditors, employees, clients, and the wider context of the business. The aim of this paper is to explore and compare the impact of selected financial and non-financial determinants representing the interests of these groups on corporate financial performance. The influence of determinants of CG on financial performance, measured by return on assets (ROA), return on equity (ROE) and return on sales (ROS) indicators, is investigated by means of correlation analysis. The sample of enterprises used consists of non-financial joint-stock companies listed on the Bratislava Stock Exchange, insurance companies, and banks based in Slovakia. The findings show that each of the investigated determinants of CG affects financial performance of companies. ROA, ROE and ROS of share issuers are significantly influenced by the total equity (EQ), average remuneration (AR) and number of the Board of Supervisor members (BSM). With banks, performance indicators are only influenced by total personal costs (PC). ROA, ROE and ROS of all companies are influenced by the dividend ratio (DR), EQ, AR and BSM.

scholarly journals ANALISA PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA PASAR DAN KINERJA KEUANGAN PADA PERUSAHAAN LQ45 YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE TAHUN 2010-2013

2017 ◽  
Vol 9 (1) ◽  
pp. 133
Author(s):  
Siti Nurhayati
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Stock Exchange ◽  
Market Performance ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Panel Data Regression ◽  
Data Regression

Abstract.The study aims to examine the effect of Intellectual Capital on Market Performance and Financial Performance in the LQ45 companies. It uses the sample of LQ45 companies listed on Indonesia Stock Exchange during the period 2010-2013. The sample is determined by using Purposive Sampling method. The study conducts 72 observations of 18 samples of the companies. The hypothesis is tested using Panel Data Regression. The study indicates that the Intellectual Capital (VAIC) and VACA of companies significantly influence market performance (Tobins'Q) and financial performance of Return on Assets (ROA) and Assets Turnover (ATO). VAHU significantly effects on the financial performance of Return on Assets (ROA) and STVA significantly effects on the financial performance of Assets Turnover (ATO). Meanwhile, VAHU has no significant effect on the market performance (Tobins'Q) and financial performance of Assets Turnover (ATO). And STVA has no significant effect on the market performance (Tobins'Q) and financial performance of Return on Assets (ROA).Keywords: intellectual capital; lq45; market performance; financial performance; tobins'q; return on assets; assets turnover.Abstrak. Penelitian ini bertujuan untuk menguji pengaruh Intellectual Capital terhadap Kinerja Pasar dan Kinerja Keuangan pada Perusahaan LQ45.Penelitian ini menggunakan sampel perusahaan LQ45 yang terdaftar di Bursa Efek Indonesia selama periode 2010-2013.Sampel ditentukan dengan menggunakan metode Purposive Sampling.Penelitian ini memiliki 72 amatan dari 18 sampel perusahaan.Dalam penelitian ini, hipotesis diuji dengan menggunakan Regresi Data Panel. Penelitian menunjukkan bahwa Intellectual Capital (VAIC) dan VACA perusahaan berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset (ROA) dan Assets Turnover (ATO). VAHU berpengaruh signifikan terhadap kinerja keuangan Return on Asset (ROA) dan STVA berpengaruh signifikan terhadap kinerja keuangan Assets Turnover (ATO). Sedangkan VAHU tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Assets Turnover (ATO). Dan STVA tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset(ROA).Kata kunci: intellectual capital; perusahaan lq45; kinerja pasar;  kinerja keuangan, tobins’q; return on assets; assets turnover.

scholarly journals Institutional Investors Ownership and Financial Performance: Examining the Nexus in Nigerian Deposit Money Banks

2020 ◽  
Vol 11 (6) ◽  
pp. 177
Author(s):  
Damilola Felix Eluyela ◽  
Wisdom Okere ◽  
Adegbola Olubukola Otekunrin ◽  
John Nonso Okoye ◽  
Asamu Festus ◽  
...  
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Time Frame ◽  
Annual Reports ◽  
Growth And Survival ◽  
Performance Examining ◽  
Institutional Shareholders ◽  
The Impact

The main aim of this paper is to examine the impact of institutional investor’s ownership on the financial performance of deposit money banks listed on Nigerian stock exchange (NSE). The time frame for this study is 2011-2018. Data was generated from annual reports of 15 deposit money banks listed on NSE. The result of the panel data methodology shows a positive and significant relationship between institutional investor’s ownership and banks financial performance. The study recommended that management of banks should give more attention to the large institutional shareholders due to their influence on the growth and survival of the company.

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