scholarly journals CEO Compensation, Managerial Overconfidence and Performance of Sharia Compliant Firms and Non-Sharia Compliant Firms: Evidence from Listed GCC Firms

2021 ◽  
Vol 9 (10) ◽  
pp. 159-177
Author(s):  
Gaafar Mohamed Abdalkrim
Keyword(s):  
Firm Performance ◽  
Ceo Compensation ◽  
Positive Relationship ◽  
Positive Impact ◽  
Stock Exchange ◽  
Financial Report ◽  
Listed Firms ◽  
And Performance ◽  
Managerial Overconfidence ◽  
Exchange Data

Background: The positive relationship between managerial overconfidence and performance implies that overconfident managers overestimate their ability to create value and improve their firm’s performance, which also lead to overestimate their own firms returns by taking over other firms. Purpose: The study examines relationship between managerial overconfidence, CEO compensation, and performance of sharia compliant firms and non-sharia compliant firms for 207 GCC listed firms from 2010 to 2014. Methodology: The study sample comprised of 207 firms for the main empirical analysis. The data used in this study were collected from GCC stock exchange data-base and firms financial report provided by website argaam.com between 2010 and 2018. Findings: The study found that managerial overconfidence is positively and significantly related to firm performance. CEO compensation and managerial overconfidence is also associated positively with sharia–compliant firms’ performance. The findings supported first hypothesis that managerial overconfidence leads to better firms’ performance. Originality: The study has revealed a positive impact of sharia compliant firms’ managerial overconfidence on firm performance. Furthermore, the effect of CEO compensation is favorable in sharia compliant firms.

scholarly journals Managerial ownership and firm performance on selected JSE listed firms

2015 ◽  
Vol 12 (3) ◽  
pp. 233-241 ◽  
Author(s):  
Sandisiwe Zondi ◽  
Mabutho Sibanda
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Agency Theory ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Managerial Ownership ◽  
Retail Sector ◽  
Regression Analyses ◽  
Listed Firms ◽  
And Performance

This paper investigates if there is a relationship between managerial ownership and firm performance in selected firms listed on the JSE, and if so, what that relationship is. The study conducts regression analyses over a sample of 23 retail sector firms, observing data stretching from 2010 to 2013. The results are found to be robust. The results suggest that the hypothesis that a positive relationship exists between managerial ownership and performance be rejected as a negative relationship is found. Instead, the results of a two-stage least squares (2SLS) analysis find that managerial ownership does not impact firm performance in any direction. Overall the results of the study do not support the agency theory, as aligning the interests of managers and shareholders does not improve firm performance, at least within the retail sector

scholarly journals The relationship between intellectual capital and firm performance

2017 ◽  
Vol 1 (1) ◽  
pp. 32-41 ◽  
Author(s):  
Amina Mohamed Buallay
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
High Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Random Effect ◽  
Listed Firms ◽  
Effect Regression ◽  
The Impact ◽  
The Relationship

This study aimed to measure the impact of intellectual capital on firm performance of listed firms in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 489 observations from 171 listed firms. The study independent variable is Intellectual Capital components (HCE, SCE and CEE). The dependent variable is firm performance which measured using ROA, ROE and Tobin’s Q. The study also utilized five control variables in order to help measure the relationship between Intellectual Capital and Firm Performance. In conclusion, the study found that the Intellectual Capital level tends to be higher with firms that have high performance. However, there is variation in the level across the sectors. Random effect regression model was incorporated; the results revealed that there is no significant impact of Intellectual Capital on firm’s operational performance (ROA). However, there is the significant positive impact of Human capital on financial performance (ROE). Additionally, the study concluded that there is the negative significant impact on structural capital efficiency and positive significant impact on Capital Employed Efficiency on firms’ market performance (TQ). These results are expected to broaden the understanding of IC and its impact on firms’ performance in GCC economies in general and specifically in Saudi economic. Moreover, it will be useful for GCC firms to place their priorities and financial plans for effective and efficient use of Intellectual Capital.

scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE: EVIDENCE FROM LISTED FIRMS OF PAKISTAN

2021 ◽  
Vol 12 (1) ◽  
pp. 170-187
Author(s):  
Shuaib Ali ◽  
Guo Fei ◽  
Zhaid Ali ◽  
Farhan Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Agency Problem ◽  
Institutional Ownership ◽  
Least Square ◽  
Ownership Concentration ◽  
Listed Firms ◽  
And Performance

This study aims to find the influence of corporate governance on firm performance for the listed non-financial firms on the Pakistan Stock Exchange (PSX) for the period 2005-15.  The article has measured corporate governance by the large boards with more independent directors, independence of audit committee, ownership concentration, non-existence ofCEOduality, and presence of foreign and institutional investors. To address this endogenous nature of institutional ownership and performance in this study we have used instrumental variables (IV) techniques using a two-stage least square (2SLS) by instrumentalizing institutional ownership with firm size and firm age. The study found that firms with large and independent boards outperform their counterparts. Similarly, the study found that firms having the joint position ofCEOand chairperson performs lower than counterparts. In Pakistan firms with foreign and institutional owners better than others. We found that firms with concentrated owners have a lower level of agency problem and ultimately perform well. Furthermore, we found that firms with a lower level of agency problem type II (measured via ownership concentration contestability) perform better in Pakistan. 

scholarly journals Why do family firms congregate in certain industries?

2010 ◽  
Vol 8 (1) ◽  
pp. 346-359
Author(s):  
En-Te Chen ◽  
John Nowland
Keyword(s):  
Firm Performance ◽  
Positive Relationship ◽  
Family Firms ◽  
Stock Exchange ◽  
Family Firm ◽  
Board Independence ◽  
Taiwan Stock Exchange ◽  
Fixed Assets ◽  
And Performance ◽  
Industry Conditions

We propose that family firm involvement and performance across industries is not random and is related to specific industry conditions. Using the population of listed companies on the Taiwan Stock Exchange over the period 1997-2007 we find that family firms are more involved in industries with greater fixed assets and lower board independence. We document a positive relationship between family firm involvement and performance, which indicates a net advantage for family firm shareholders in industries where family firms congregate. However, we also find that family firm performance is negatively affected when family firms use more debt and maintain a higher control wedge than their industry counterparts.

scholarly journals Corporate ownership structure and firm performance: Evidence from the Netherlands

2008 ◽  
Vol 6 (2) ◽  
pp. 382-392
Author(s):  
Bart Frijns ◽  
Aaron Gilbert ◽  
Peter Reumers
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Corporate Ownership ◽  
Corporate Ownership Structure

This paper examines the relationship between corporate ownership structure and firm performance. For a sample of 100 Dutch firms listed on the Amsterdam stock exchange, we collect data on the shareholdings of the 5 largest shareholders and the total fraction of shares held by insiders. In addition, we collect information on the type of largest shareholder. Using a simultaneous equation model, estimated by three-stage least squares, to control for a potential endogeneity bias, we find a significant positive relationship between the holdings of the largest shareholder and firm performance. Likewise we find a significantly positive relationship for the stake held by insiders. Further testing provides some evidence that this relationship is nonlinear, i.e. at lower stakes insider ownership aligns management with shareholder, whereas at higher stakes entrenchment of management depresses performance. Splitting the sample into different types of owners provides some evidence that financials have a negative impact on performance, while other firms have a positive impact.

scholarly journals CEO compensation and performance of state owned enterprises in South Africa

2012 ◽  
Vol 10 (1) ◽  
pp. 97-109 ◽  
Author(s):  
Sam Ngwenya ◽  
Mahlomolo Khumalo
Keyword(s):  
South Africa ◽  
Ceo Compensation ◽  
Positive Relationship ◽  
Board Members ◽  
Total Revenue ◽  
Return On Assets ◽  
Base Salary ◽  
And Performance ◽  
Using Data ◽  
The Relationship

The study investigates the relationship between CEO compensation and performance of State Owned Enterprises (SOEs) in South Africa, using data for the period 2009 to 2011. The results indicated that there exist no positive relationship between CEO compensation and SOEs performance as measured by return on assets. The results also indicated a positive relationship between CEO compensation (base salary) and the size of SOEs as measured by total revenue and number of employees. The results suggest that board members of SOEs in South Africa should hold CEOs accountable for the performance of SOEs, and should not pay huge salaries and bonuses to non performing CEOs.

Do Female Directors on Corporate Boards Make a Difference in Family Owned Businesses?

2019 ◽  
Vol 19 (1) ◽  
pp. 85-102 ◽  
Author(s):  
Barbara Sveva Magnanelli ◽  
Luigi Nasta ◽  
Elisa Raoli
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Negative Impact ◽  
Gender Diversity ◽  
Family Businesses ◽  
Corporate Boards ◽  
Listed Firms ◽  
Female Directors ◽  
And Performance ◽  
Gender Quota

ABSTRACT This paper investigates how the presence of female directors on corporate boards impacts the performance of family firms. This study enriches the literature on gender diversity on corporate boards and its effects on firm performance by focusing on a country in which family businesses are dominant. The empirical analysis is conducted on a sample of 165 Italian-listed firms from 2011 to 2016, representing the period during which the mandatory gender quota law was introduced and implemented in Italy. The results show a positive relationship between the presence of women on corporate boards and firm performance, specifically in family owned businesses. These findings lead to the conclusion that female directors do not have a negative impact on firm performance. And, given the domination of family businesses and a mandatory gender quota law in Italy, this study makes a regulatory and performance assessment not previously examined in the literature. JEL Classifications: M1; M12; M48; M21.

scholarly journals GOVERNANCE AND FIRM PERFORMANCE: AN EXPOSITORY ANALYSIS OF LISTED FIRMS AT PAKISTAN STOCK EXCHANGE

2020 ◽  
Vol 10 (3) ◽  
pp. 263-268
Author(s):  
Tayyab Zeeshan Shahid ◽  
Farah Naz ◽  
Sana Sehar ◽  
Sarfraz Hassan ◽  
Ahsan Butt
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Listed Firms

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

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