scholarly journals Effects of Key Management Compensation on Financial Performance of Listed Manufacturing Firms in Kenya

2020 ◽  
Vol 3 (2) ◽  
pp. p76
Author(s):  
Antony Kirori Njoroge ◽  
Paul Mathenge ◽  
John Kabeso Omurwa
Keyword(s):  
Financial Performance ◽  
Key Management ◽  
Secondary Data ◽  
Ordinary Least Squares ◽  
Manufacturing Firms ◽  
Management Compensation ◽  
Least Squares Regression ◽  
Analysis Model ◽  
Data Manipulation ◽  
Secondary Data Sources

The aim of this study was to investigate the effects of management compensation on financial performance in Kenya using case of listed manufacturing firms. The study employed census method of data collection and secondary data sources over a period of 9 years, 2010-2018, for 15 listed manufacturing firms. The agency theory complemented by the contingency, self-determination, and expectancy theories was used in the study. The data was analyzed using ordinary least squares regression analysis model as well as the descriptive methods. Eviews software was employed in the data manipulation. The key finding of the study was that key management compensation was strongly positively associated (correlated) with the financial performance of listed manufacturing firms in Kenya while Director Emoluments affect financial performance of listed manufacturing firms negatively but not strongly. Another finding was that debt ratio highly negatively and statistically significantly influenced the relation between management compensation and financial performance of listed manufacturing firms in Kenya suggesting that debt is an important factor in determining the relation between management compensation and financial performance of listed manufacturing firms in Kenya. The findings of the study are important in that they can be employed in formulating policy initiatives and strategies for improving financial performance of firms in the country.

scholarly journals Adoption of Competitor Focused Accounting Methods in Selected Manufacturing Companies in Nigeria

2014 ◽  
Vol 2 (3) ◽  
pp. 128-140
Author(s):  
Chiekezie Njideka Rita ◽  
Egbunike Patrick Amaechi ◽  
Odum Austin Nwekemezie
Keyword(s):  
Financial Performance ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Competitive Edge ◽  
Survey Techniques ◽  
Strategic Management Accounting ◽  
The Mean

This study-examined the extent of adoption of competitor focused accounting (CFA) in selected manufacturing firms listed on Nigerian Stock Exchange with a view to establishing whether there are differences in financial performance of the firms. The study is descriptive in nature and uses survey techniques. Accordingly, two-hundred and twenty four (224) key respondents in the Nigerian manufacturing industry were surveyed. This is complimented with secondary data collected from annual accounts and reports of fifty six (56) manufacturing companies listed in the Nigerian stock exchange. In addition to descriptive statistics, analysis of variance (F- Ratio) and scheffes’ (fs) test were used in analyzing collected data. The result of the study revealed that 14 companies representing (25%) were non-adopters of competitor focused accounting methods, 36 (64.3%) were partial adopters while 6 (10.7%) were full adopters. In addition, the mean financial performance of full adopters of CFA methods was 25.1 greater than that of partial adopters and also 45.71 greater than non-adopters. This shows a large difference. On the other hand, partial adopters’ mean financial performance was 20.61 greater than that of non adopters of CFA methods. However, this study proves that the practice of CFA in Nigerian manufacturing companies is still below average and the necessity to improve this situation is the current challenge. Manufacturing firms in Nigeria should give priority to strategic management accounting and it sub-divisions especially CFA in other to enhance its competitive edge over competitors.

Are smart manufacturing systems beneficial for all SMEs? Evidence from Korea

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Soojeen Jang ◽  
Yanghon Chung ◽  
Hosung Son
Keyword(s):  
Human Resources ◽  
Financial Performance ◽  
Manufacturing Systems ◽  
Contingency Theory ◽  
Ordinary Least Squares ◽  
Operational Efficiency ◽  
Smart Manufacturing ◽  
Least Squares Regression ◽  
Content Type ◽  
Smart Manufacturing Systems

PurposeThrough the resource-based view (RBV) and contingency theory, this study empirically investigates the impacts of smart manufacturing systems' maturity levels on the performance of small and medium-sized enterprises (SMEs). Moreover, it aims to examine how industry types (i.e. high- and low-tech industries) and human-resource factors (i.e. the proportion of production workers to total workers) as contingency factors influence the effects of smart manufacturing systems.Design/methodology/approachThe study conducted an empirical investigation of a sample of 163 Korean manufacturing SMEs. This study used an ordinary least squares regression to examine the impacts of the maturity levels of smart manufacturing systems on financial performance. Moreover, the impacts on operational efficiency were analysed using data envelopment analysis based on bootstrap methods and Tobit regression.FindingsThe RBV results indicate that the higher the maturity levels of smart manufacturing systems, the higher the financial performance and operational efficiency. Moreover, based on contingency theory, this study reveals that the effect of the maturity levels of smart manufacturing systems on financial performance and operational efficiency depends on firms' industry types and the proportion of production workers.Research limitations/implicationsThis study shows that the introduction of smart manufacturing systems can help SMEs achieve better financial performance and operational efficiency. However, their effectiveness is contingent on firms' industry types and the characteristics of their human resources.Practical implicationsSince the effects of the maturity levels of smart manufacturing systems on SME performance differ depending on their industries and the characteristics of human resources, managers need to consider them when introducing or investing in smart manufacturing systems.Originality/valueBased on the RBV and contingency theory, this is the first empirical study to examine the moderating effects of industry types and the proportion of production workers on the impacts of the maturity levels of smart manufacturing systems on the financial performance and operational efficiency of SMEs.

scholarly journals Wellbeing during the COVID-19 pandemic in the UK: a secondary data analysis

2021 ◽  
Author(s):  
Jen Murphy ◽  
Mark Elliot
Keyword(s):  
Mental Health ◽  
Online Survey ◽  
National Level ◽  
Secondary Data ◽  
Well Being ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
The Uk ◽  
Survey Responses ◽  
The Impact

Introduction: In March 2020 in response to the COVID pandemic the UK government declared a national lockdown where citizens were required to stay at home. The impact of this lockdown on levels of well-being has been a source of concern for citizens and mental health professionals.Objectives: We investigated the trajectory of well-being over the course of the ?first wave and sought to determine whether the change in well-being is distributed equally across the population. Speci?fically we investigated pre-existing medical conditions, social isolation, ?financial stress and deprivation as a predictor for well-being and whether there were community level characteristics which protect against poorer well-being.Methods: Using online survey responses from the COVID19 modules of Understanding society, we linked 8,379 English cases across ?five waves of data collection to location based deprivation statistics. We used ordinary least squares regression to estimate the association between deprivation, pre-existing conditions and socio-demographic factors and the change in well-being scores over time, as measured by the GHQ-12 questionnaire.Results: A decline in well-being was observed at the beginning of the fi?rst lock down period at the beginning of March 2020. This was matched with a corresponding recovery between April and July as restrictions were gradually lifted. There was no association between the decline and deprivation, nor between deprivation and recovery. The strongest predictor of well-being during the lockdown, was the baseline score, with the counterintuitive finding that for those will pre-existing poor well-being, the impact of pandemic restrictions on mental health were minimal, but for those who had previously felt well, the restrictions and the impact of the pandemic on well-being were much greater.Conclusion: These data show no evidence of a social gradient in well-being related to the pandemic. In fact, wellbeing was shown to be highly elastic in this period indicating a national level of resilience which cut across the usually observed health inequalities.

scholarly journals Financial Leverage on Earnings Management of Quoted Manufacturing Companies in Nigeria

2020 ◽  
pp. 7-21
Author(s):  
Ogiriki Tonye ◽  
Iweias Seth Sokiri
Keyword(s):  
Earnings Management ◽  
Positive Impact ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Manufacturing Firms ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Financial Leverage

This study investigated financial leverage on earnings management in manufacturing firms in Nigeria. A total of twenty-nine (29) listed firms on the Nigeria Stock Exchange (NSE) were studied, and secondary data were extracted from their annual financial statements as reported in the factbook. Ordinary least squares (OLS) method was used to analyze the data. The results revealed that: the management of manufacturing companies in Nigeria employs all the three strategies of earnings management in their companies. The relationships between financial leverage and each of the dependent variables are positive but weak. Financial leverage does not have a significant impact on accruals earnings management in listed manufacturing firms in Nigeria; but it does on real earnings management and deferred tax earnings management; The study concludes that financial leverage has a positive impact on accrual earnings management, while both financial leverage and total leverage has a negative effect on real earning management. The study recommends that users of financial statements should factor in financial leverage in assessing reported earnings by lowering/upping their expectations as to the reliability of the earnings, depending on whether financial leverage is high or low.

scholarly journals Empirically Modeling the Energy Implications of Cool Roof Retrofits

2020 ◽  
Vol 6 ◽  
Author(s):  
Michael Blackhurst
Keyword(s):  
Energy Use ◽  
Secondary Data ◽  
Theoretical Models ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Net Benefit ◽  
Significance Level ◽  
Treated Sample ◽  
Individual Household ◽  
The Impact

The energy effects of roofs have primarily been studied using theoretical models. However, empirical methods are needed for validation or when not all drivers of energy change can be observed. This study used mixed empirical techniques to estimate the impact of whitening existing roofs. Two years of hourly site cooling energy use were collected for 114 homes in Austin, TX. Seven properties selected to have their roofs coated white at no charge, imitating incentive policies. The empirical results are mixed, primarily limited by the small treated sample size. Individual household comparisons generally demonstrate statistically significant impacts of whitening, ranging from 14% to 49.2% reductions in daytime site cooling energy use and a 9.7% increase to a 40.3% decrease in nighttime site cooling energy use. Ordinary least squares regression estimates statistically significant mean daytime reductions of 9.7% but no significant nighttime effects. However, clustering the standard errors by household substantially reduces the significance level. Tweedie regression, which better accommodates slightly inflated zeros in the sample, demonstrates significant daytime and nighttime reductions of 14.3% and 5.5%, respectively. A life-cycle costs analysis using a mix of primary and secondary data explored the secondary benefit of delaying roof replacement resulting from the added protection of the coating material. Absent this delay, whitening would pay for itself in only 41% of simulations with a median net cost of $310 and simple payback of 22 years. Including a benefit to delay roof replacement, the median payback period is 1 year and the median net benefit is $310 across a range of assumptions. However, the benefits of whitening are only robust for older roofs and longer service lives for the coating. For roofs older than 10 years of age, most simulations reflect net benefits if the coating lasts at least 5 years.

Intellectual capital: the missing link in the corporate social responsibility–financial performance relationship

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niccolò Nirino ◽  
Alberto Ferraris ◽  
Nicola Miglietta ◽  
Anna Chiara Invernizzi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Ordinary Least Squares ◽  
Mediating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Csr Strategies ◽  
Corporate Social

PurposeThe purpose of this paper is to propose and empirically test intellectual capital (IC) as a mediator in the corporate social responsibility (CSR) and financial performance (FP) relationship.Design/methodology/approachThe empirical research was conducted on 345 European firms listed in the STOXX Europe 600 index. To evaluate the mediating effect of IC, we applied the four-step Baron and Kenny model, tested through an ordinary least squares regression analysis.FindingsThe findings highlighted a partial mediation of IC on the CSR–FP relationship, suggesting that the implementation of CSR strategies has a positive effect on the development of firms' IC, which in turn enhances firms' competitive advantage and superior long-term FPs.Originality/valueWe found a new mediator in the CSR–FP relationship and we contribute to a new line of research that aims to study environmental and sustainability aspects strictly interrelated with IC and performances (sustainable intellectual capital).

The role of corporate controls and business-level strategy in business unit performance

2019 ◽  
Vol 12 (3) ◽  
pp. 364-381 ◽  
Author(s):  
Pouya Seifzadeh ◽  
W. Glenn Rowe
Keyword(s):  
Financial Performance ◽  
Market Performance ◽  
Ordinary Least Squares ◽  
Business Strategies ◽  
Control Mechanisms ◽  
Business Unit ◽  
Least Squares Regression ◽  
Content Type ◽  
Joint Project ◽  
Business Units

Purpose Corporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement of corporate controls have led many researchers to operationalize them as part of the more ambiguous corporate effects construct, instead of addressing them separately. The purpose of this paper is to examine the significance of “fit” between corporate control mechanisms and business unit strategy in performance of business units. Design/methodology/approach The authors use ordinary least squares regression analysis on data collected between 2010 and 2012 from surveys from managers of 142 Iranian corporations and 1,822 of their subsidiaries. The authors also use financial and market data collected by an IDRO division and accessed through partnership in a joint project. Findings The authors found that while the fit between business unit strategy and corporate controls has a significant effect on business unit financial performance, it does not have a similar effect on market performance. The findings demonstrate that when business unit managers perceive that they are subject to a balance of strategic and financial controls with a slightly greater emphasis on strategic controls, then business units have higher financial and market performance, although the difference in financial performance is not significant. Research limitations/implications The authors find that the misfit between corporate controls and business strategies in such cases could negatively affect the performance of the business unit. However, this research also contributes to a better understanding of the importance of strategic controls to the successful performance of business units. The findings show that while the fit between controls and strategy is most critical for achieving financial performance in business units that pursue product leadership, strategic controls play a more prominent role than financial controls in achieving higher financial or market share performance for all business units. Practical implications The findings of the propositions in this research would discourage corporations with tight financial control from engaging in acquisition of businesses considered to be product leaders in their relative product markets. Originality/value Past research focusing on the fit between corporate-level factors and business-level factors and their role on business performance are largely limited to conceptual work. The limited empirical studies completed in the past generally reduce control mechanisms to lack or absence of autonomy. This shortcoming has been mainly due to difficulties in measurement of control mechanisms. The empirical study overcomes these barriers and in doing so, reveals surprising findings related to the effectiveness of different control mechanisms.

scholarly journals Leaving Country for Living: Household Level Welfare Assessment from the Destination Preference Lens in Bangladesh

2020 ◽  
Vol 12 (4) ◽  
pp. 106
Author(s):  
Mashrura Kabir Shaeba ◽  
Fariha Farjana ◽  
Subrata Kumar Datta
Keyword(s):  
Middle East ◽  
Regression Model ◽  
International Migration ◽  
Multinomial Logistic Regression ◽  
Secondary Data ◽  
Wealth Index ◽  
Ordinary Least Squares ◽  
Household Welfare ◽  
Least Squares Regression ◽  
The Impact

Down memory lane of the economy of Bangladesh, international migration has been a pillar to the economy. Firstly, the study deals with the factors affecting destination preference of the migrant-sending household and then it tries to screne out the impact of international migration on the household welfare from the lens of diversified destination preferences. Considering sample size of 3782 household, the study conducted the entire research with the secondary data of Household Income and Expenditure Survey Bangladesh, 2016. Sorting the migrated countries among seven regions, Multinomial Logistic Regression has been used to find out the determinants behind migrants’ destination preferences. Additionally, to measure the household welfare based on migrant’s destination preference, the Ordinary Least Squares regression model and Quantile regression model have been used. Therefore, the result exhibits that migrant characteristic like age, gender, years of schooling, and household characteristics like heads’ age, sex, schooling year, region, and earning status plays a significant role in deciding the migration destination. It is also evident that economic and subjective welfare varies among the households for sending migrants in different regions. Total expenditure and wealth index decrease to the households who send migrants to South-East Asia rather than Middle-East. The wealth score is higher for the households who send migrants to Europe, North-America, and Oceania over Middle-East. Subjective welfare index also varies among the household based on choosing migration destination. Therefore, it can be concluded that destination preference affects the economic and subjective welfare of the household.

scholarly journals Tone disclosure and financial performance: evidence from Egypt

2018 ◽  
Vol 31 (1) ◽  
pp. 63-74 ◽  
Author(s):  
Doaa Aly ◽  
Sherif El-Halaby ◽  
Khaled Hussainey
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Firm Growth ◽  
Positive Association ◽  
Ordinary Least Squares ◽  
Bad News ◽  
Good News ◽  
Annual Reports ◽  
Least Squares Regression ◽  
Content Type

Purpose This paper aims to examine the extent to which financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. The authors also measure the bidirectional relationship between TD and FP. Design/methodology/approach The manual content analysis is used to measure the levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market. The sample covers a three-year period (2011-2013). Findings The descriptive analysis in this paper shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets. The authors also find a highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information. Finally, the results of the ordinary least squares regression show that the causality between the two endogenous variables runs from FP to TD. Thus, TD is determined by FP. Originality/value This study offers a novel contribution to disclosure studies by being the first study to examine TD in one of the developing countries.

scholarly journals Factors Analysis of the Electronics Industry Trade Imbalance between the US and China

2015 ◽  
Vol 7 (6) ◽  
pp. 172 ◽  
Author(s):  
Jihong Jin ◽  
Michael Steffens
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Electronics Industry ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Analysis Model ◽  
Trade Imbalance ◽  
Macroeconomic Factors ◽  
Industry Trade ◽  
The Us

<p>The US and China trade imbalance is a highly debated topic, and cause of trade conflict between the US and China. One particularly strong area of the trade imbalance is the electronics industry, which as of the year 2013 represented more than 45% of the total trade balance, the largest subsection of any industry. In order to understand the macroeconomic factors influencing overall trade balance as well as trade balance in the Electronics Industry, this study uses Ordinary Least Squares Regression analysis model to examine how macroeconomic factors such as Exchange Rate, China GDP, US GDP, and CPI affect the trade balance. The results are then compared to an equivalent analysis on the electronics industry using factors such as China Electronics Industry Production, US Electronics Industry Production, Exchange Rate, and CPI. The findings are surprising, showing that the same factors that are traditionally strongly correlated with a change in the overall trade balance, actually have an opposite effect on the Electronics industry trade balance. This paper explores not only what macro economic factors cause the trade imbalances, but also why they happen.</p>

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