scholarly journals Does the pyramidal ownership mechanism negatively affect the firm’s performance?

2016 ◽  
Vol 19 (2) ◽  
pp. 205
Author(s):  
Vera Diyanty

This research aims to evaluate the effect of family control, which is obtained through both direct or pyramidal ownership mechanism, and company performance. It also examines the mediating effect of founder leadership as represented by founding family members occupying the top management position and the effectiveness of Board of Commissioner. This study used Ordinary Least Square regression for the data analysis with 670 data as the sample from 134 sample companies from year 2009 to 2013. The results show that family control through direct ownership mechanism enhances company performance (alignment effect). On the other hand, family control through pyramidal ownership mechanism weakens company performance (entrenchment effect). The results also show that founder leadership boosts the alignment effect and limits the entrenchment effect. However, this research fails to confirm the role of the effectiveness of the Board of Commissioner in increasing the alignment effect and limiting the entrenchment effect.

2021 ◽  
Vol 28 (1) ◽  
pp. 98-102
Author(s):  
A. B. AYANWALE ◽  
J. O. AJETOMOBI

This paper exainîned the role of household composition in egg cunsumption in Obafemi Awolowo University Community. An Ordinary Least Square regression model was used to obtain at-home demand function parameter estimates for egg. Positive and signiflcant relationship was found between quantity of eggs consumed and both household size and the age of children. A 1% increase in each of the variables would cause a 4.68% and 5.71 % increase in egg consumption respectively. The need for education of the household on the importance of egg consumption and keeping an optimum family size was suggested based on the findings of the study.


2017 ◽  
Vol 117 (8) ◽  
pp. 1650-1668 ◽  
Author(s):  
Mengying Feng ◽  
Wantao Yu ◽  
Roberto Chavez ◽  
John Mangan ◽  
Xumei Zhang

Purpose The purpose of this paper is to extend prior supply chain research by empirically exploring the relationship among guanxi, supply chain integration (SCI), and operational performance. More specifically, this study investigates the mediating role of SCI. Design/methodology/approach Ordinary least square regression is used to analyze survey data collected from 126 automobile manufacturers in China. Findings The results reveal a significant positive relationship between guanxi and SCI, and that SCI is significantly and positively related to operational performance. The authors’ findings further suggest that guanxi indirectly affects operational performance through SCI. Practical implications The empirical findings imply that it is vital for managers to recognize the important mediating role of dynamic SCI capabilities. Originality/value As a fundamental Chinese cultural norm, guanxi can be critical in a supply chain context. Although previous research has identified the importance of guanxi and SCI in improving firm performance, far less attention was given to the study of the mediating effect of SCI on the guanxi-performance relationship. This study thus fulfills the research gap by providing an initial empirical examination of the mediating role of SCI in China’s automotive industry.


2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Xu ◽  
Sakthi Mahenthiran

Purpose This study aims to develop a scale to measure the cloud provider’s performance and it investigates the factors that impact that performance from the users’ perspective. Design/methodology/approach This paper proposes a research framework, develops hypotheses and conducts a survey to test the framework. Findings The results from both ordinary least square regression and structural equation modeling analyzes indicate that information technology complexity negatively and significantly affects users’ perception of the cloud computing providers’ performance. Additionally, the trust in the supervisor significantly enhances the otherwise insignificant positive relationship between providers’ cybersecurity capability and users’ perception of their providers’ performance. Originality/value The research makes important contributions to the cloud computing literature, as it measures users’ perception of the cloud computing provider’s performance and links it with cybersecurity, technical complexity and incorporates both the trust in the client firm’s supervisor and the strength of cybersecurity offered by cloud computing provider.


2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.


2018 ◽  
Vol 2 (1) ◽  
pp. 51-64
Author(s):  
Danar Irianto ◽  
Nuranisa Anugerah

This research aims to explains association between financial expertise of directors to directors compensation and directors turnover of Indonesia non financial company in 2011-2012. Using ordinary least square regression we used four variables to define financial expertise of directors: age of the directors, tenure of the directors, the post-graduate degree (MBA), and the accounting certification (CPA). However, this study found no association financial expertise to compensation and directors turnover. We hope this study can contributes to financial expertise, compensation, and turnover literature. We also provide implications for companies in determining the compensation of directors based on financial expertise. Further research can be improve by add new variabel such as complexcity and board size.


Author(s):  
Faradiba Faradiba

The role of business in advancing the economy and welfare is highly expected in the community. In the development of a business that occurs, it often sacrifices non-profit aspects, such as the environment. The indirect impact that can arise from business development is climate change. This study uses climate data and the number of industrial enterprises by type at the village level, to determine the effect of business on the climate that occurs. This study uses ordinary least square, to determine the role of each independent variable. The results of this study indicate that an increase in 1,000 of these types of businesses will result in an increase in temperature of 1 oC. Furthermore, an increase in 1,000 types of business will reduce rainfall by 11 to 64 mm. Government and community efforts are needed to maintain climatic conditions for the sustainability of the ecosystem.


2019 ◽  
Vol 28 (1) ◽  
pp. 74-96
Author(s):  
Baah Aye Kusi ◽  
Abdul Latif Alhassan ◽  
Daniel Ofori-Sasu ◽  
Rockson Sai

Purpose This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study. Design/methodology/approach This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis. Findings The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability. Practical implications The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana. Originality/value This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.


2020 ◽  
Vol 51 (6) ◽  
pp. 1238-1260
Author(s):  
Shumin Liang ◽  
Richard Greene

Abstract This paper reviews 110 years of global runoff estimation. By employing the method of ordinary least square regression on a sample region's runoff coefficient, an empirical formula of a runoff coefficient is calculated for China. Based on this empirical formula applied with a high-resolution grid of precipitation, runoff is calculated resulting in an equally high-resolution map of global runoff using a geographic information system (GIS). The main results are (1) the global total runoff volume is 47,884 km3, (2) the average runoff depth is 359 mm, (3) the interior drainage region's runoff volume is 1,663 km3, and (4) the average runoff depth is 58.4 mm. The results are compared with the results of the existing literature on global runoff. This study emphasizes the importance of runoff and groundwater recharge in arid and semi-arid regions where the estimation value of runoff depth is significantly increased.


2019 ◽  
Vol 8 (2) ◽  
pp. 108
Author(s):  
Jason Bergner ◽  
Marcus R. Brooks ◽  
Binod Guragai

The Jumpstart Our Business Startups Act of 2012 (hereafter, JOBS Act) creates a new category of firms, referred to as “Emerging Growth Companies” (hereafter, EGCs). Section 107 of the JOBS Act, titled “Opt-In Right for EGCs,” gives EGCs the choice to take advantage of an extended transition period for complying with new or revised accounting standards. In other words, an EGC can choose to delay the adoption of new or revised accounting standards until those standards would otherwise apply to private companies. Using a logistic regression approach with hand-collected data, we examine the underlying firm characteristics associated with EGCs’ choice of opting in or out of the accounting standards exemption, as provided by Section 107 of the JOBS Act. Using additional ordinary least square regression analyses, we further examine whether the choice of opting in or out is associated with earnings management and financial statement restatement behavior. Our results suggest that EGC firms designated as “smaller reporting companies” are more likely to choose to delay the adoption of a new or revised accounting standard (i.e., opt in). Our findings also show that EGCs that employ Big 4 auditors are more likely to opt out. We further find that EGCs that choose to opt out are less likely to engage in earnings management behavior, proxied by the absolute value of abnormal accruals, and are less likely to restate their financial statements. Taken together, our findings suggest that EGCs that choose to opt out of Section 107 produce higher quality financial statements.


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