The number of firms at the productivity frontier remains low in certain strategic sectors when compared to other countries

2020 ◽  
Keyword(s):  
Number Of Firms

An Analysis of Segment Disclosures under SFAS No. 131 and SFAS No. 14

2000 ◽  
Vol 14 (3) ◽  
pp. 287-302 ◽  
Author(s):  
Don Herrmann ◽  
Wayne B. Thomas
Keyword(s):  
Decision Making ◽  
Geographic Area ◽  
Segment Reporting ◽  
Internal Organization ◽  
Country Level ◽  
Reporting Requirements ◽  
Geographic Segment Disclosures ◽  
Segment Disclosures ◽  
Number Of Firms ◽  
Segment Information

The purpose of this paper is to compare the segment reporting disclosures under SFAS No. 131 with those reported the previous year under SFAS No. 14. Under SFAS No. 131, firms are required to report segments consistent with the way in which management organizes the business internally. In addition, the accounting items disclosed for each segment are defined consistent with internal segment information used to assess segment performance. For many companies, this represents a significant change from the approach used to report segments under SFAS No. 14. Under SFAS No. 14, firms were required to disclose segment information by both line-of-business and geographic area with no specific link to the internal organization of the company or the measurements that were used for internal decision making. As a result, many complained that the resulting disclosures were highly aggregated and of limited use for decision-making purposes. We find that the change in segment reporting requirements under SFAS No. 131 has made a relatively significant impact on the disclosure of segment information. Over two-thirds of the sample firms have redefined their primary operating segments upon adopting SFAS No. 131. There has also been an increase in the number of firms providing segment disclosures and companies are disclosing more items for each operating segment. For enterprise-wide disclosures, the proportion of country-level geographic segment disclosures has increased, while the proportion of broader geographic area segment disclosures has decreased. However, the number of firms reporting earnings by geographic area has declined greatly as this item is no longer required to be disclosed for firms reporting on a basis other than geographic area.

The Dynamics of the Number of Firms in an Industry

1968 ◽  
Vol 35 (3) ◽  
pp. 349 ◽  
Author(s):  
E. P. Howrey ◽  
R. E. Quandt
Keyword(s):  
Number Of Firms

Corporate payout-form: investors’ preference and catering theory

2018 ◽  
Vol 44 (12) ◽  
pp. 1418-1433
Author(s):  
Abdelaziz Chazi ◽  
Alexandra Theodossiou ◽  
Zaher Zantout
Keyword(s):  
Design Methodology ◽  
Policy Formulation ◽  
Future Research ◽  
Stock Repurchases ◽  
Firm Characteristics ◽  
Content Type ◽  
Robust Measures ◽  
Practical Implications ◽  
Form Preference ◽  
Number Of Firms

Purpose The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference. Design/methodology/approach The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis. Findings US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly. Research limitations/implications The study only uses US data. It does not cover other countries. Practical implications The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc. Social implications The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation. Originality/value The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.

scholarly journals Corporate Social Responsibility Performance & ETF Historical Market Volatility

2017 ◽  
Vol 9 (10) ◽  
pp. 30
Author(s):  
Vasiliki A. Basdekidou ◽  
Artemis A. Styliadou
Keyword(s):  
Corporate Governance ◽  
Community Development ◽  
Fair Trade ◽  
Green Building ◽  
Market Volatility ◽  
The Other ◽  
Future Research ◽  
Financial Instruments ◽  
Corporate Social ◽  
Number Of Firms

In investment and trading, different CSR moral ethical firms, categorized in a number of groups, may be suitable for different financial instruments (i.e. USA sector ETFs) and different market volatility situations. For the purpose of this article we first (i) analyze the trading return performance of four CSR categories (in particular: activism, community development, corporate governance, and environment); and then (ii) examine and comment the correlation between the market performance of a number of firms belonging in these four CSR categories and historical ETF market volatility. Finally, we (iii) suggest CSR firms as trading tools according to dominant market volatility. Other CSR categories (like: fair trade & supply chain, green building, philanthropy & corporate contributions, etc.) would be examined in future research by following the introduced by this paper approach. Paper concludes that, in relatively less volatile markets the Environment CSR ethical firms display better results. On the other hand, in strong market volatile situations it is better to trade Community Development CSR and Corporate Governance CSR ethical firms. Finally, the Activism CSR ethical firms are uncorrelated with the market volatility, as well as their performance is poor in all market cases.

The Relationship between Fair Value Accounting and Presence of Manipulation in Financial Statements

2014 ◽  
Vol 4 (1) ◽  
pp. 221
Author(s):  
Laith Abdullah Alaryan ◽  
Ayman Ahmad Abu Haija ◽  
Ali Mahmoud Alrabei
Keyword(s):  
Business Ethics ◽  
Financial Statements ◽  
Fair Value ◽  
Policy Implications ◽  
Annual Reports ◽  
Fair Value Accounting ◽  
Before And After ◽  
The Face ◽  
The Relationship ◽  
Number Of Firms

The application of fair value has started early in Jordan, which was a bone of contention among supporters and opponents. This study came to provide empirical evidence on the relationship between fair value and financial manipulation. The study extracted data from 45 companies’ annual reports during a ten-year period (1997- 2006) five years before and after the application of fair value to examine the relationship among the application of fair value accounting and the presence of manipulation in financial statements. The result indicates that the number of firms that manipulated information in the financial statements had increased after applying fair value accounting. The results have policy implications, one of which is that the Jordanian government should either enact new regulations or modify the current regulations in the face of an increasing number of manipulations by firms after the application of fair value accounting. These regulations are needed to increase both the managements’ and accountants’ responsibility towards the firms and to enhance the business ethics of the organization.

Pension nondiscrimination rules and the incentive to cross subsidize employees

2007 ◽  
Vol 6 (2) ◽  
pp. 127-145 ◽  
Author(s):  
PETER J. BRADY
Keyword(s):  
Pension Reform ◽  
Pension Plan ◽  
Economic Incentive ◽  
Pension Plans ◽  
Compliance Costs ◽  
Empirical Question ◽  
Tax Benefits ◽  
Pension Benefits ◽  
To Receive ◽  
Number Of Firms

Among the requirements a pension plan must meet to qualify for tax benefits are the nondiscrimination rules. Nondiscrimination rules are designed to ensure that pension benefits do not disproportionately accrue to highly compensated employees. But the rules are also complex and increase administrative and compliance costs associated with offering a pension plan. Recent pension reform proposals would simplify nondiscrimination rules, reducing administrative and compliance costs and potentially leading to more employers offering pension benefits. However, there are concerns that any loosening of the rules could lead to a drop in participation by low-wage workers. This paper examines the economic incentive that nondiscrimination rules provide to employers to cross subsidize employees; that is, the incentive to increase pension benefits (and total compensation) paid to low-paid workers for the express purpose of enabling high-paid workers to receive a higher proportion of compensation in the form of pension benefits. The study calculates the incentives faced by a hypothetical firm, and then illustrates how those incentives change when assumptions about employee contribution behavior, employee compensation, and employer-matching formulas are allowed to vary. Results show that only firms with a relatively low ratio of low-paid workers to high-paid workers would have an economic incentive under a standard 401(k) plan to cross subsidize employees. Although this incentive may exist in a large number of firms, these firms likely employ only a small portion of the workforce. This is ultimately an empirical question, however, and examining data on the distribution of earnings within pension plans, as well as determining if firms find nondiscrimination rules binding, would be a useful extension of this research.

scholarly journals What Determines Innovation in the Manufacturing Sector? Evidence from Pakistan.

2011 ◽  
Vol 50 (4II) ◽  
pp. 365-376 ◽  
Author(s):  
Hamna Ahmed ◽  
Mahreen Mahmud
Keyword(s):  
Manufacturing Sector ◽  
Innovative Activity ◽  
Resource Quality ◽  
Internal Factors ◽  
Data Set ◽  
Industry Study ◽  
Innovation And Invention ◽  
Product And Process ◽  
The Impact ◽  
Number Of Firms

This study analysed the behaviour of a sample of manufacturing firms in Pakistan in order to understand what determines innovative activity employing a panel data set for the years 2002 and 2006-07. Probit estimation results reveal that size of the firm and human resource quality are important internal factors that increase the likelihood of a firm innovating. Interestingly, whether a firm is exporting or not has no bearing. However, post innovating there is a large increase in number of firms who export. Externally, presence in a geographic cluster is important though further analysis reveals that the impact varies according to firm size. Size per se does not increase likelihood of innovating for medium sized firm who only have an advantage over small sized firms when present in a cluster. Large firms on the other hand continue to have an advantage and the advantage further increases with presence in a cluster. Finally, analysis by product and process innovators reveals that the characteristics of firms undertaking the two types of innovative activity are similar. The only noteworthy difference being that process innovation does not benefit from presence of a firm in a cluster which might be attributable to the more visible nature of product innovation which benefits from technological spillovers that are a characteristic of presence in a cluster. JEL classifications: O14, O31, O33, L6 Keywords: Innovation and Invention: Processes and Incentive, Developing Countries, Industry Study

scholarly journals Knowledge management at Ukrainian industrial enterprises in the context of innovative development

2020 ◽  
Vol 12 (3) ◽  
pp. 43-56
Author(s):  
Sergii Illiashenko ◽  
Yuliia Shypulina ◽  
Nataliia Illiashenko ◽  
Olena Gryshchenko ◽  
Anna Derykolenko
Keyword(s):  
Knowledge Management ◽  
Swot Analysis ◽  
Innovative Development ◽  
Competitive Advantages ◽  
Review System ◽  
Industrial Enterprises ◽  
Sources Of Knowledge ◽  
New Knowledge ◽  
The Eu ◽  
Number Of Firms

AbstractThe research aimed to identify promising areas and outline problems associated with the transition of Ukrainian industrial enterprises towards advanced innovative development based on information and knowledge and to formulate recommendations for improving the knowledge management and commercialisation at these enterprises. The study used several methods for analysis, including a literature review; system, structural and statistical analyses; SWOT analysis; the inference method; and interpretation. The research efforts resulted in systemised major sources of knowledge in an enterprise and types of their utilisation. The performed analysis found the key ways to obtain and commercialise knowledge used by Ukrainian industrial enterprises. The results were compared with data of the EU countries. The analysis produced strengths and weaknesses of the existing knowledge management system used in Ukrainian enterprises. Strengths: growth in the number of enterprises producing new knowledge and implementing marketing and organisational innovations; intensified patent activity; and a rational structure of innovation-active enterprises by their size. Weaknesses: the new knowledge structure does not meet the needs of enterprises; an insignificant and unstable share of innovation-active enterprises in the total number of firms; and insignificant sales volumes of patents. The research revealed that Ukrainian enterprises had the potential ability to produce and commercialise new knowledge effectively and to use it as the basis to form, strengthen and implement relative competitive advantages, which would contribute to the innovative growth of the Ukrainian economy as a whole. Recommendations were designed for the formation of prerequisites necessary to improve the efficiency of knowledge management in the context of conditions required for the innovative development of domestic enterprises. The obtained results can be used as an information base for evaluating the system of knowledge production and commercialisation at Ukrainian enterprises to enhance the management and identify promising areas for innovative development.

scholarly journals The Forms of Social Engagement of Polish Firms

2015 ◽  
Vol 16 (2) ◽  
pp. 61-76
Author(s):  
Krystyna Kietlińska
Keyword(s):  
Social Engagement ◽  
Local Community ◽  
Early Stage ◽  
Social Activity ◽  
Social Needs ◽  
List Type ◽  
Stage Of Development ◽  
The Disabled ◽  
Corporate Social ◽  
Number Of Firms

AbstractThe development of the idea of Corporate Social Responsibility (CSR) depends mainly on the changes in international market and growing competition between countries and enterprises. These factors influence on the behavior of enterprises. This means that the goal of business action is not only profit-making but also fulfilling social needs. The goal of this paper is to present and assess social in Poland. Starting with the concept and scope of CSR, the article presents benefits from responsible business activity and implementation of this idea in Poland.The research carried out in 2012 shows that the main implementers of CSR are large firms with foreign capital. They know the idea of CSR from the experience of Western firms. The main objective is their image and to build better relations with their environment. On this background the article shows the ranking of companies participating in “Leader of Philanthropy” competition. It allowed to choose four firms as an example of good practices in social engagement. Social activity of chosen firms was addressed to: employees,children,local community,the sick, the disabled and the poor,animals.The contacted research proves that social engagement of Polish firms is at the early stage of development. The number of firms increase, but there are mainly large companies. The main reason that the small business share in social engagement results from the limited amount of financial resources at their disposal.

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