Executive Compensation and Deployment of Corporate Resources: Evidence from Working Capital

2021 ◽  
Vol 1 (1-2) ◽  
pp. 43-80
Author(s):  
Nihat Aktas ◽  
Ettore Croci ◽  
Oguzhan Ozbas ◽  
Dimitris Petmezas
Keyword(s):  
Executive Compensation ◽  
Working Capital ◽  
Corporate Resources

Executive Compensation and Deployment of Corporate Resources: Evidence from Working Capital

2015 ◽  
Author(s):  
Nihat Aktas ◽  
Ettore Croci ◽  
Oguzhan Ozbas ◽  
Dimitris Petmezas
Keyword(s):  
Executive Compensation ◽  
Working Capital ◽  
Corporate Resources

Monetary compensation, workforce-oriented corporate social responsibility, and firm performance

2015 ◽  
Vol 30 (3) ◽  
pp. 196-215 ◽  
Author(s):  
Mingming Feng ◽  
Xiaodan "Abby" Wang ◽  
Jagjit S. Saini
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Executive Compensation ◽  
Organizational Factors ◽  
Content Type ◽  
Monetary Compensation ◽  
Corporate Social ◽  
Corporate Resources ◽  
Practical Implications

Purpose – Prior literature has established the theoretical and statistical linkages between monetary compensation and firm performance, yet little is known about how the association between monetary compensation and firm performance is moderated by companies’ engagement in corporate social responsibility (CSR) activities. Further, compared to executive compensation, non-executive compensation remains an underexplored topic. The purpose of this paper is to investigate how workforce-oriented CSR moderates: first, the association between non-executive compensation and firm performance; and second, the association between executive compensation and firm performance. Design/methodology/approach – Using a sample of 181 from the largest 3,000 US companies for the years 1991-2011, the authors investigate how workforce-oriented CSR moderates the association between compensation and firm performance. Compensation is examined at two levels – non-executive versus executive compensation. The workforce-oriented CSR score is constructed as total strengths minus total concerns in Kinder, Lydenberg, and Domini’s employee relations dimension. Findings – The authors find an improvement in firm performance with increases in both non-executive and executive compensation. Further, workforce-oriented CSR positively moderates the association between non-executive compensation and firm performance, and negatively moderates the association between executive compensation and firm performance. Research limitations/implications – This study adds to the literature of the compensation-performance linkage by including both non-executive and executive compensation as important determinants of firm performance and incorporating workforce-oriented CSR as a moderator on the compensation-performance linkage. It also provides new angles for CSR scholars. Practical implications – This study helps managers understand the importance of fulfilling employees’ social emotional needs and the potential of workforce-oriented CSR in shaping employees’ perceived distributive justice. The findings also help managers make critical decisions regarding the allocation of limited corporate resources and prioritization of investment options. In addition, the findings are also useful to boards of directors and human resources managers who are in charge of hiring executives, building top management teams, and deciding executive compensation. Originality/value – This study helps advance our understanding of the compensation-performance linkage. The results suggest that the relationship between compensation and financial performance is contingent on other organizational factors. In addition, the findings provide practical implications on how CSR engagement moderates the association between non-executive compensation and firm performance differently than the association between executive compensation and firm performance and how to allocate corporate resources and prioritize strategic options effectively.

Pengaruh Manajemen Modal Kerja Terhadap Profitabilitas Dan Risiko

Liquidity ◽  
2017 ◽  
Vol 6 (2) ◽  
pp. 95-102
Author(s):  
Sri Setia Ningsih
Keyword(s):  
T Test ◽  
Raw Material ◽  
Risk Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Trading Company ◽  
Regression Correlation ◽  
Descriptive Method

The purpose of this research is to know about working capital management applied, and its influence on profitability and risk. The research object is trading company moves in import & distribute chemical raw material. The research used analysis descriptive method, and the hypothesis was testing by simple linier regression, correlation, and determination. The result of the research shows that the effect of the implementation of working capital management on the change of the net working capital with tend to rise has a profitability level of 10.4% lower than the net working capital change with tend to go down of 46%, but instead on the risk level, the net working capital change with tend to rise has a risk level of 43.8% higher than the change in net working capital with tend to go down of 0.3%.Based on  t test, the result shows that the net working capital change influence  is not significant  to profitability and risk.

PENGARUH PERPUTARAN PIUTANG DAN SOLVABILITAS TERHADAP KONDISI FINANCIAL DISTRESS PERUSAHAAN MANUFAKTUR SEKTOR GARMEN DAN TEKSTIL DI BURSA EFEK INDONESIA

2018 ◽  
Vol 19 (2) ◽  
pp. 87
Author(s):  
Siska Wulandari
Keyword(s):  
Financial Distress ◽  
Free Market ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Working Capital ◽  
Leverage Ratio ◽  
Ratio Effect ◽  
Waste Bank ◽  
Solvency Ratio

Manufacture Sub Sector Garment And Textile have financial distress condition. Increas of sales is one of choice for company can be competitive in free market. But increase of sales will be followed by the many possibilities of uncollected receivable or the low receivable turnover which can effect forced the company to further provide working capital. One way is to get working capital from a third part or what we call debt.This research aims to determine the effect of receivable turnover and the solvency ratio toward the financial distressThe problems of the research were: 1) is the receivable turnover effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015? 2) is the leverage ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015 ? 3) Are the receivable turnover and solvency ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015?The sample of this research is 11 Manufacture company of sub sector Garmen And Textile were taken by using purposive sampling techniques. This research data used secondary data that getting from literature review. Data were tested using multiple linear regression analysis to determine the effect between one variable with another variables, and the data was then processed using SPSS 22.0 for windows.Result of the research showed that partially, receivables turnover hadn’t a significant effect toward  the financial distress. Partially, solvency ratio (Debt to Asset) had a significant influence toward financial distress Simultaneously, receivable turnover and solvency ratio had a significant effect toward financial distress. Kata kunci:Waste Bank, Waste Bank Management, Waste Bank Basic Concepts, Economic Improvement of the Family

Analisis Pengembalian Kredit Terhadap Profitabilitas Pada PT Bank Sumut Cabang Gunungsitoli

Owner ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Victorinus Laoli
Keyword(s):  
Data Collection ◽  
Positive Influence ◽  
Business Continuity ◽  
Working Capital ◽  
The People ◽  
Data Collection Technique

One manifestation of the important role of banking in a region, as implemented by PT Bank Sumut, Gunungsitoli Branch, is to distribute loans for investment, consumption and working capital for the people in the area. The purpose of providing credit for banks is the return of credit that earns interest and can increase income to finance activities and business continuity. From the results of research conducted with this data collection technique, it shows that PT Bank Sumut has a number of loans from 2009 to 2014 which each year rises. From this study, it is also known that the rate of credit repayment has a positive influence on the level of profitability.

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

Kennzahlenbasierte Messung der Performance des Working Capital Managements

2017 ◽  
Vol 46 (11) ◽  
pp. 56-63
Author(s):  
Sebastian Serfas ◽  
Martin Netter
Keyword(s):  
Working Capital

Der Cash-Conversion-Cycle

Controlling ◽  
2019 ◽  
Vol 31 (4) ◽  
pp. 22-28
Author(s):  
Michael Währisch
Keyword(s):  
Working Capital ◽  
Cash Conversion Cycle

Kennzahlen werden eingesetzt, um Ziele zu messen und die Zielerreichung zu planen und nachzuhalten („What gets measured, gets managed“). Sofern die Kennzahlen aber nicht geeignet sind, das Ziel betriebswirtschaftlich zutreffend abzubilden, läuft das Management ins Leere. Der Beitrag untersucht, inwiefern der Cash-Conversion-Cycle als Kennzahl der Mittelbindung für das Working Capital Managements geeignet ist.

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