scholarly journals Impacts of R&D Expenditures On Firms’ Innovation and Financial Performance: A Panel Data Evidence from Ethiopian Firms

2021 ◽  
Author(s):  
Tsegaye Mulugeta
Keyword(s):  
Financial Performance ◽  
Applied Research ◽  
Rapid Development ◽  
Estimation Methods ◽  
Vast Literature ◽  
Fundamental Research ◽  
Study Support ◽  
The Relationship ◽  
D Investment

Abstract In the era of the rapid development of knowledge economy and science, all countries have thought highly of technical innovation and greatly increased investment in R&D from time to time. The vast literature indicates that the relationship between R&D and firms’ performance is highly complex while evidences suggest that R&D positively influences firms’ performance, yet the process how R&D activities influence firms’ performance is still mixing. This paper explores the impacts of investment in R&D on firms’ performance from 476 firms in Ethiopia by employing a combination of the fixed-effect, PSM and ETE estimation methods. The findings of this study support the existence of a strong interaction between R&D activities and firms’ performance. The empirical results reveal that investment in R&D positively influences both innovation and long-term financial performance, while it negatively impacts shorter-term financial performance. Moreover, results show that the impacts of R&D activities vary significantly along the different category of firms confirming that heterogeneity is possible issue among firms considered. The results also indicate that availability of credit is more important moderating factor for the relationship between R&D investment and firms’ performance than legal system. The results from the current study have important implications for firms especially those from developing countries like Ethiopia with growing R&D operations. We propose that Ethiopian firms should invest more on R&D activities, such as the production of fundamental research and applied research to have better performance and enhance their competitiveness in the future.

Research on the Impact of Information Security Certification and Concealment onFinancial Performance

2022 ◽  
Vol 30 (3) ◽  
pp. 0-0
Keyword(s):  
Information Security ◽  
Financial Performance ◽  
Positive Impact ◽  
Rapid Development ◽  
International Standards ◽  
Corporate Decisions ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Iso 27001

With the rapid development of information technology, information security has been gaining attention. The International Organization for Standardization (ISO) has issued international standards and technical reports related to information security, which are gradually being adopted by enterprises. This study analyzes the relationship between information security certification (ISO 27001) and corporate financial performance using data from Chinese publicly listed companies. The study focusses on the impact of corporate decisions such as whether to obtain certification, how long to hold certification, and whether to publicize information regarding certification. The results show that there is a positive correlation between ISO 27001 and financial performance. Moreover, the positive impact of ISO 27001 on financial performance gradually increases with time. In addition, choosing not to publicize ISO 27001 certification can negatively affect enterprise performance.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

scholarly journals Green innovation, government incentive and enterprise performance are explored from the perspective of game

2021 ◽  
Vol 275 ◽  
pp. 02006
Author(s):  
Xiaohui Ren
Keyword(s):  
Game Theory ◽  
Rapid Development ◽  
Enterprise Performance ◽  
Green Innovation ◽  
Green Development ◽  
Pollution Problem ◽  
Environmental Pollution Problem ◽  
And Performance ◽  
The Relationship

The rapid development of economy brings serious environmental pollution problem. Green innovation, as the connection point between government environmental regulation measures and sustainable green development of enterprises, has become one of the important choices for the transformation and development of enterprises. Based on the classic model of “prisoner’s dilemma” in game theory, this paper deeply analyzes the relationship between green innovation and performance. It is found that it is easy to get into trouble if only relying on the spontaneous green innovation within the enterprise. Applying appropriate pressure outside the enterprise can promote the change of green innovation and bring long-term benefits to the enterprise.

scholarly journals The relationship between organisational culture and financial performance: Some South African evidence

1998 ◽  
Vol 29 (1) ◽  
pp. 30-40 ◽  
Author(s):  
W. Z. Van Der Post ◽  
T. J. De Coning ◽  
E. V.D.M. Smit
Keyword(s):  
Financial Performance ◽  
South African ◽  
Corporate Culture ◽  
Organisational Culture ◽  
Managerial Values ◽  
Beliefs And Values ◽  
The Individual ◽  
The Relationship ◽  
And Task

Although statistical evidence seems to be lacking. it is at present widely acknowledged that organisational culture has the potential of having a significant effect on organisational performance. An analysis of sustained superior financial performance of certain American organisations has attributed their success to the culture that each of them had developed. It has been proposed that these organisations are characterised by a strong set of core managerial values that define the ways in which they conduct business. how they treat employees, customers, suppliers and others. Culture is to the organisation what personality is to the individual. It is a hidden but unifying force that provides meaning and direction and has been defined as the prevailing background fabric of prescriptions and proscriptions for behaviour, the system of beliefs and values and the technology and task of the organisation together with the accepted approaches to these. Recent studies have indicated that corporate culture has an impact on a firm's long-term financial performance: that corporate culture will probably be an even more important factor in determining the success or failure of firms in the next decade; that corporate cultures that inhibit long-term financial performance are not rare and that they develop easily. even in firms that are staffed by reasonable and intelligent people; and that corporate cultures, although difficult to change, can be made more performance enhancing. The purpose of this study, therefore, was to establish the statistical relationship between organisational culture and financial performance.

scholarly journals Influence of CSR stakeholders on the textile firms performances

2022 ◽  
Vol 10 (8) ◽  
pp. 25-38
Author(s):  
Md. Nurun Nabi ◽  
Mst. Marium Akter ◽  
Ahashan Habib ◽  
Abdullah Al Masud ◽  
Subrata Kumer Pal
Keyword(s):  
Financial Performance ◽  
Research Study ◽  
Focus Group Interview ◽  
Secondary Data ◽  
Organizational Legitimacy ◽  
Primary Data ◽  
Corporate Social ◽  
The Relationship ◽  
Survey Questionnaires

Ready-made garments (RMG) are one of the most critical sectors in the economy of the South Asian region in terms of the labor force employed and export earnings. This research study aims to determine the Corporate Social Responsibility Stakeholders dimension and its influence on textile firms Performance. The study used organizational legitimacy as mediating variable between the CSR stakeholders and firms’ performances. The research study was used in the quantitative analysis approach to determine the cause and effect of the relationship between CSR and Textile firm’s financial and non-financial performance. Though the study collected primary data & secondary data from 250 respondents using survey questionnaires, the researcher obtained secondary data by analyzing the audited annual and sustainability reports of various RMG companies. We have collected data by conducting a focus group interview forming a team of employers, top-level managers, and CSR officers. We asked them all the questions, filled it, tapped it, reserved it for the interpretations. We have surveyed 67 industries, but it enabled us to collect the data from the 50 sectors—the data collected from 2016 April to 2018 December. Our study has some limitations in that the sample size is small compared to the other research. SPSS-23 & MS-Excel were used to analyze the collected data. CSR practices benefitted RMG companies in terms of long-term sustainable development by increasing the firm’s financial and non-financial performance of the RMG sector.

scholarly journals Impact of Corporate Social Responsibility on the Financial Performance of Banks in Pakistan

2014 ◽  
Vol 21 ◽  
pp. 9-19 ◽  
Author(s):  
M. Shoukat Malik ◽  
Muhammad Nadeem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Service Sector ◽  
Annual Reports ◽  
Net Profit ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The purpose of this paper is to investigate the impact of Corporate Social Responsibility on the Financial Performance of banks in the service sector of Pakistan. The data is obtained from the annual reports issued by the banks during 2008-2012. To verify the relationship between EPS, ROA, ROE, Net Profit and CSR regression models are used. The results show that there is lack of CSR in Pakistan and the regression model shows that there is positive relationship between profitability (EPS, ROA, ROE, and Net Profit) and CSR practices. The Financial institutions which implements CSR in their operations earn more profit for the long term periods.

scholarly journals Going Green Inside and Out: Corporate Environmental Responsibility and Financial Performance under Regulatory Stringency

2020 ◽  
Vol 12 (9) ◽  
pp. 3850
Author(s):  
Jongjin Sohn ◽  
Jongseon Lee ◽  
Nami Kim
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Carbon Footprint ◽  
Multiple Time ◽  
Corporate Environmental Responsibility ◽  
Time Horizons ◽  
Internal Operations ◽  
The Relationship

While researchers have long examined the relationship between corporate environmental responsibility (CER) and financial performance, the evidence remains inconclusive. Moreover, whether sustainable supply chain management plays a role in enhancing the financial performance of focal firms has yet to be fully investigated. As firms’ investment in CER often pays off in the long-term, applying multiple time horizons, short- to long-term considerations, is needed to determine the effects of CER. This study examined the role of CER in improving financial performance based on multiple time horizons. In particular, the effects of CER on financial performance were explored in terms of internal operations and supply chains. The moderating effects of regulatory stringency on the relationship between CER and a firm’s short- or long-term financial performance were also investigated. Firms’ CER was studied using carbon data from Trucost. Carbon footprint can be an appropriate proxy for CER, as it provides information on supply partners’ environmental concerns. A unique dataset of the carbon footprint of 714 North American firms in 19 industry sectors in 2003–2010 was used. The results indicated that firms benefit from CER not only in their internal operations but also in their supply chains in both the short and long-terms. The moderating effects of regulatory stringency were significant for CER only in terms of the supply chain but not for internal operations. In industries with a high level of regulatory stringency, the positive effects of CER on short-term financial performance in the supply chain become weaker, but the same effects on long-term financial performance become stronger. By investigating the effects of two distinct carbon footprint aspects on financial performance at different time horizons, this study sheds light on the importance of CER in firms’ internal operations and supply chains.

Empirical Analysis of Dependence on Capital Structure with Respect to Its Impact on the Financial Performance of Domestic Non Financial Listed Stock Exchange Companies Operating in the Public Sector of Pakistan

2016 ◽  
Vol 3 (2) ◽  
pp. 58-76
Author(s):  
Syed Jawad Hussain Shahzad ◽  
Memoona Kanwal
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Research Work ◽  
Debt Financing ◽  
The Impact ◽  
The Relationship

This research work is based on the relationship that exists between the capital structure and performance of different sector's firms currently operating in the Pakistan. Capital structure decisions can be considered as the most important financial performance and risk management tools which are available to the companies' management. Capital structure can also play an important role in performance assessment, in performance management and in effective handling of ownership claims. The extensive use and heavy dependence on debt has exposed many companies to potential risk of declined performance and also to the risk of insolvency. This study analyzes the relationship between various capital structure indicators and dependence of financial performance of companies on these indicators using a broad sample covering 202 non-financial firms listed on Karachi Stock Exchange (KSE) over the period of 1999-2012. The sample firms are divided into five sectors i.e. Textile, Chemical, Cement, Food and Fuel & Energy. Financial performance of firms is quantified by Return on Assets (ROE), Return on Equity (ROE), Price-Earnings ratio (PE) and Tobin's Q (TQ). The relationship between financial performance measures and capital structure measures i.e. total debt, short term debt and long term debt is estimated using GLS fixed and random effect model. Sector wise comparison shows that majority of the sectors have similar capital structure. The impact of capital structure on the financial performance is also similar across sectors with few variations. Overall the relationship is found to be negative among capital structure and firm performance measured by ROA, ROE and PE except TQ which is positively related to Long Term Debt to total Assets (LTDA). The result of industry wise comparison contributes significantly to the existing stream of knowledge. The results indicate that lower reliance on the debt financing improves the performance of the firm whereas dependence and exposure of debt financing reduce performance. The research can be useful for the management of companies in different sectors that want to improve their performance.

scholarly journals Does corporate environmental responsibility affect investor future goal in the energy sector firms?

2021 ◽  
Vol 905 (1) ◽  
pp. 012140
Author(s):  
A Setyowati ◽  
N H Purnomowati ◽  
D N Sari ◽  
E S Ramadhan
Keyword(s):  
Financial Performance ◽  
Stakeholder Theory ◽  
Energy Sector ◽  
Environmental Responsibility ◽  
Corporate Environmental Responsibility ◽  
Environmental Initiatives ◽  
The Relationship ◽  
Sample Set

Abstract This study investigates the relationship between corporate environmental responsibility and firm’s financial performance by using a sample set of 2,241 firm-year observations representing 470 unique energy firms from 30 countries from 2013–2020. Supporting stakeholder theory, we find that firms with better environmental responsibility actions are associated with higher Tobins’q, suggesting that the investors react positively to the firm’s environmental initiatives. Overall, our findings suggest that firms in the energy sector should pay attention to corporate environmental responsibility practices to obtain a good response from the investors and achieve the firm’s long-term financial goals.

scholarly journals ESG and Corporate Financial Performance: Empirical Evidence from China’s Listed Power Generation Companies

2018 ◽  
Vol 10 (8) ◽  
pp. 2607 ◽  
Author(s):  
Changhong Zhao ◽  
Yu Guo ◽  
Jiahai Yuan ◽  
Mengya Wu ◽  
Daiyu Li ◽  
...  
Keyword(s):  
Power Generation ◽  
Financial Performance ◽  
Power Market ◽  
Panel Regression ◽  
Financial Indicators ◽  
Short Term ◽  
The World ◽  
Corporate Risk ◽  
The Relationship

Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the company’s financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of “how does ESG affect financial performance” has not been thoroughly discussed and studied in China. In this article, we study China’s listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.

Sign in / Sign up

Export Citation Format

Share Document