scholarly journals The Role of Financial Performance as a Moderator on the Relationship Between Financial Leverage and Shareholders Return

2016 ◽  
Vol 12 (7) ◽  
Author(s):  
M. Kannadhasan ◽  
Vinay Goyal ◽  
Parikshit Charan
Keyword(s):  
Financial Performance ◽  
Financial Leverage ◽  
The Relationship

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

scholarly journals Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Financial Capital ◽  
Moderation Effect ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

Unpacking the black box

2020 ◽  
Vol 21 (6) ◽  
pp. 809-834 ◽  
Author(s):  
Kaveh Asiaei ◽  
Omid Barani ◽  
Nick Bontis ◽  
Maryam Arabahmadi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Content Type ◽  
Knowledge Resources ◽  
Mediating Role ◽  
Strategic Resources ◽  
Structural Capital ◽  
Resource Orchestration ◽  
The Relationship

PurposeDrawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.Design/methodology/approachData was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.FindingsThe results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.Research limitations/implicationsThe focus on Iranian publicly listed companies limits the generalizability of results.Practical implicationsManagers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.Originality/valueTo our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.

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