scholarly journals Board diversity in the perspective of financial distress: Empirical evidence from the Netherlands

2009 ◽  
Vol 5 (2) ◽  
pp. 23-35 ◽  
Author(s):  
Bernard Santen ◽  
Han Donker
Keyword(s):  
Empirical Evidence ◽  
Financial Distress ◽  
Positive Relationship ◽  
Performance Measure ◽  
Company Performance ◽  
Executive Directors ◽  
Board Diversity ◽  
Show Evidence ◽  
Micro Level ◽  
The Relationship

This paper analyses the relationship between board diversity (in gender and in nationality) and financial distress. A summary of the theory behind board diversity precedes an overview of the empirical evidence on the relationship between diversity and company performance. The paper presents empirical research on the relationship between a negative performance measure, financial distress, and diversity on the board. The results show a positive relationship between the presence of foreign non-executive directors and financial distress. It is suggested that this is caused by negative communication and misunderstandings. No relationship is found between the gender of a director and financial distress. On a micro-level, the data do not show evidence for the glass cliff hypothesis.

scholarly journals Leaders who empower: a gateway to radical innovation

2019 ◽  
pp. 1-18
Author(s):  
Emilio Domínguez-Escrig ◽  
Francisco Fermín Mallén Broch ◽  
Rafael Lapiedra Alcamí ◽  
Ricardo Chiva Gómez
Keyword(s):  
Theoretical Model ◽  
Empirical Study ◽  
Organizational Performance ◽  
Empirical Evidence ◽  
Positive Relationship ◽  
Radical Innovation ◽  
Structural Equations ◽  
The Relationship

Abstract The main goal of the current study is to analyze the relationship between leaders' empowerment, radical innovation and organizational performance. A total of 300 Spanish companies participated in the study. In total, 600 valid questionnaires were obtained. Structural equations were used to validate the proposed hypotheses. Two different respondents in each company were selected to provide information. All the hypotheses proposed in the theoretical model were confirmed. This research provides empirical evidence of the relationship between leaders' empowerment and organizational performance, highlighting the mediation role played by radical innovation. Leaders who empower, promote radical innovation and, in turn, performance. To our knowledge, this is the first empirical study that analyzes the effect of leader's empowerment on radical innovation. Although in the former literature there are evidences of a positive relationship between empowerment and innovation, there are no studies that differentiate between innovation typologies.

scholarly journals The Impact of R&D Expenses on Firm Performance: Empirical Witness from the Bist Technology Index

2016 ◽  
Vol 4 (1) ◽  
pp. 51 ◽  
Author(s):  
Zied Bouaziz
Keyword(s):  
Firm Performance ◽  
Positive Relationship ◽  
Market Value ◽  
Company Performance ◽  
Cross Sectional ◽  
Analysis Technique ◽  
Almost All ◽  
Positive Coefficients ◽  
The Impact ◽  
The Relationship

<em>The relationship between investment in R&amp;D and company performance has attracted the interest of several research. Vast amount of research have been carried to figure out whether this relationship exist or not. Some researchers suggest that there is no relationship between R&amp;D expenses and firm performance; others put forward the existence of negative or positive relationship. It can be asserted that possible existence as useful information can be consumed by managers to increase the market value of firms. In that respect, the main aim of this research is to reveal the relationship between R&amp;D and firm performance by taking into account 12 companies that are listed on the BIST Technology Index for 5 years periods (between 2010 and 2014). In order to accomplish this purpose, we employed pooled regression model and cross sectional time series analysis technique. In general, although negative and positive coefficients are found, almost, all of them is not statistically significant. In other words, according to outcomes, it can be claimed that there is no relationship between R&amp;D and firm performance which is line with previous studies. </em>

scholarly journals Industrial diversification and performance in an emerging market

2016 ◽  
Vol 63 (4) ◽  
pp. 441-454 ◽  
Author(s):  
Emel Yücel ◽  
Yıldırım Önal
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Positive Relationship ◽  
Emerging Market ◽  
Performance Measure ◽  
Significant Positive Relationship ◽  
Industrial Diversification ◽  
And Performance ◽  
Diversified Firms ◽  
The Relationship

In this study, we investigated the relationship between industrial diversification and firm performance using a market-based performance measure and an accounting measure. We used the data of the firms listed on Borsa Istanbul during the period between 2006 and 2012. The results of the panel data indicate that there is a significant positive relationship between diversification and performance. We found that diversified firms outperformed the single firms. As is compatible with a resource-based approach, it was found that diversified firms tended to use their resources more efficiently compared to single firms.

scholarly journals The chief executive officer pay–performance relationship within South African state-owned entities

2018 ◽  
Vol 16 ◽  
Author(s):  
Magda L. Bezuidenhout ◽  
Mark H.R. Bussin ◽  
Mariette Coetzee
Keyword(s):  
South African ◽  
African State ◽  
Poor Performance ◽  
Chief Executive ◽  
Performance Measure ◽  
Least Square ◽  
Annual Reports ◽  
Company Performance ◽  
Executive Remuneration ◽  
The Relationship

Orientation: Over the years, the increase in executive remuneration in state-owned entities (SOEs) has been the subject of intense discussions. The poor performance of some SOEs with highly remunerated executives begs the question of whether chief executive officers in South African SOEs deserve the high levels of remuneration they receive.Research purpose: This study examined the relationship between chief executive remuneration and several measures of company performance across Schedule 2 SOEs within South Africa.Motivation for the study: Notwithstanding the widely publicised poor performance of South African SOEs, their importance and relevance remains evident. Regrettably, the literature on what fundamentally drives their performance is lacking.Research design, approach and method: This quantitative, longitudinal study, conducted over a 9-year period, collected secondary data from the annual reports of 18 Schedule 2 SOEs. The primary statistical technique used in the study was ordinary least square (OLS) multiple regression analysis on a pooled dataset. Chief executive remuneration consisted of fixed salary and total remuneration.Main findings: A relationship was found between chief executive remuneration and company performance, although mainly an inverse relationship.Practical and managerial implications: The improved understanding and knowledge of the relationship between chief executive remuneration and SOE performance may be used by the organisation and HR practitioners to direct and inform strategies for organisational effectiveness and business excellence.Contribution or value-add: This research provides new knowledge to the limited research available on SOEs in South Africa. Further, it reveals an unexplored area of potential research, that is, the importance of irregular, fruitless and wasteful expenditure as a performance measure in SOEs.

The Analysis of Intellectual Capital Performance of Islamic Bank in Indonesia

2014 ◽  
Vol 2 (4) ◽  
pp. 53-60
Author(s):  
Radhiyatul Fitriyeni ◽  
Yurniwati Yurniwati
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Positive Relationship ◽  
Value Added ◽  
Company Performance ◽  
Islamic Banks ◽  
Capital Efficiency ◽  
The Relationship

Objective - The purpose of this paper was to assess the influence of Value Added Intellectual Capital (VAIC) towards company performances such as: profitability and productivity of Islamic banks of Indonesia measured by ROA, ROE, ROI and ATO. Methodology/Technique - This research conducted purposive sampling method. Correlation analysis was applied to measure the influence of ICE on company Performance. SPSS 18 was applied for correlation test. VAIC was calculated for measuring intellectual capital efficiency. Findings - VAIC had a positive relationship to company performance such as financial performance and productivity. The highest value of correlation was the relationship between VAIC and ATO. The lowest value of correlation was the relationship between VAIC to ROE. Novelty - This research assessedthe influence of VAIC towards 11 Islamic Banks in Indonesia. Type of Paper - Empirical Keywords: Intellectual capital, VAIC, corporate performance, financial performance, productivity, Indonesia, Islamic Banks.

scholarly journals Un modelo de opciones barreras para estimar las probabilidades de fracasos financieros de empresas. Barrier options model for estimate firm´s probabilities for financial distress

2016 ◽  
Vol 10 (3) ◽  
pp. 7
Author(s):  
Gastón S. Milanesi
Keyword(s):  
Financial Distress ◽  
Positive Relationship ◽  
Dynamic Models ◽  
Barrier Options ◽  
Barrier Option ◽  
Proposed Model ◽  
Alternative Approach ◽  
Option Model ◽  
The Relationship ◽  
Capital Value

<p><strong>Resumen</strong></p><p>Asimilar el valor del patrimonio como una opción de compra sobre los activos permitió desarrollar un conjunto de modelos dinámicos para predecir fracasos financieros empresariales. No obstante, el concepto presenta una importante debilidad: la relación directa y positiva entre valor del capital (prima) y el nivel de volatilidad del activo subyacente. El razonamiento anterior indica que a mayor riesgo de la firma mayor debe ser su valor, lo que conduce a una lógica inconsistente para estimar probabilidades de fracasos financieros. Las opciones denominadas “exóticas barreras” constituyen un modelo alternativo para predecir dificultades financieras y su estructura se ajusta mejor a la relación valor-volatilidad en las empresas. El trabajo propone un modelo de opción barrera “operativo”, ya que simplifica la estimación de las inobservables variables: valor y riesgo del activo. Primero, se desarrolló formalmente los modelos de opción de compra simple y opción barrera para valorar el patrimonio de la firma y la estimación de probabilidades de fracaso financiero. Con un caso hipotético, se propuso un ejercicio de sensibilidad sobre volatilidades y plazos. Similar ejercicio se aplicó a dos firmas de capitales argentinos con diferentes grados de endeudamiento, gracias al cual se confirmó la consistencia entre volatilidad-valor-probabilidad de fracasos financieros del modelo propuesto. Finalmente se exponen las principales conclusiones.</p><p> </p><p> </p><p><strong>Abstract</strong></p><p>Assimilation of the capital value as a call option over firm’s assets allows to develop a group of dynamic models to predict corporate financial distress. However, the concept shows an important weakness: the direct and positive relationship between the capital value (call) with the level of underlying’s volatility. This reasoning indicates that the higher the risk is, the higher the value must be for the firm, leading to a weak rationality, in particular to estimate probabilities of financial distress. The exotic barrier options make an alternative approach for predicting financial distress, and its structure fits better to the firm valuevolatility relationship. The paper proposes a “naive” barrier option model, because it simplifies the estimation of the unobservable variables, like firm asset’s value and risk. First, a simple call and barrier option models are developed in order to value the firm’s capital and estimate the financial distress probability. Using an hypothetical case, it is proposed a sensibility exercise over period and volatility. Similar exercise is applied to estimate the capital value and financial distress probability over two firms of Argentinian capitals, with different leverage degree, confirming the consistency in the relationship between volatility-value-financial distress probability of the proposed model. Finally, the main conclusions are shown.</p>

scholarly journals THE EFFECT OF STRATEGIC ORIENTATIONS ON ORGANIZATIONAL PERFORMANCE OF SMES: EMPIRICAL EVIDENCE FROM PAKISTAN

2019 ◽  
Vol 10 (3) ◽  
Author(s):  
Jawad Hussain ◽  
Arshad Ali Khan ◽  
M. Idrees Khan
Keyword(s):  
Organizational Performance ◽  
Empirical Evidence ◽  
Market Orientation ◽  
Direct Relationship ◽  
Positive Relationship ◽  
Critical Role ◽  
Small Scale ◽  
Learning Orientation ◽  
Strategic Orientations ◽  
The Relationship

Strategic orientations like Market orientation (MO) and Learning orientation (LO) play critical role in improving the performance of both large and small scale businesses. This paper investigate the relationship between LO and organizational performance with MO as moderator. The current study reports the findings of two hundred and seven owners or managers of Small and Medium Sized Enterprises (SMEs) in Pakistan. The findings of the study indicate a positive relationship between LO and organizational performance. Mo was found to have moderated the direct relationship between LO and organizational performance. This study is among the few attempts made to systematically examine the interplay among MO, LO and organizational performance in SMEs operating in Pakistan.

scholarly journals International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 26-42
Author(s):  
Simon Stevenson ◽  
Keyword(s):  
Real Estate ◽  
Empirical Evidence ◽  
Strong Evidence ◽  
Positive Relationship ◽  
International Markets ◽  
Equity Market ◽  
The Other ◽  
Real Estate Securities ◽  
The Relationship ◽  
Minimal Evidence

This study re-examines the relationship between real estate securities and inflation in a total of ten international markets. In addition to the raw data, both the orthogonalized and hedged approaches were adopted in order to strip out the general impact of the domestic equity market. The results revealed that there is minimal evidence of a positive relationship between real estate securities and inflation, which is in line with existing empirical evidence. However, the strong evidence of perverse relationship, noted in previous studies of REITs, is not robust throughout the other nine markets. The hedged and orthogonalized data also provided minimal evidence in favour of a positive relationship, both in the short and long terms.

scholarly journals Board characteristics and firm performance: The case of Jordanian non-financial institutions

2021 ◽  
Vol 10 (3) ◽  
pp. 150-159
Author(s):  
Zyad Marashdeh ◽  
Mohammad W. Alomari ◽  
Mahmoud Mohmad Aleqab ◽  
Rateb Mohammad Alqatamin
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Financial Institutions ◽  
Firm Size ◽  
Executive Directors ◽  
Firm Age ◽  
Board Size ◽  
Board Characteristics ◽  
Ceo Tenure ◽  
The Relationship

The study aims to examine the impact of board characteristics on firm performance of non-financial institutions in Jordan. The study employs the random effects regression model to analyze the panel data of 77 non-financial institutions of the industrial and services sector over the period 2008–2019. Firm performance is measured by return on assets ROA. While board characteristics were explained by board size, CEO duality, CEO tenure, non-executive directors (NEDs), and a number of board meetings. Firm age and firm size were added to our model as control variables. Our results reveal that board size, CEO tenure, non-executive directors (NEDs), firm age, and firm size have a positive significant impact on firm performance, whereas the CEO duality and a number of board meetings have a negative significant impact on firm performance. This paper will contribute to the ongoing debate on the relationship between the board characteristics and firm performance. Therefore, the current study extends previous literature by providing empirical evidence about the relationship between board characteristics and a firm performance. Particularly in developing countries, there is relatively a little researched area. Jordanian firms are needed to consider the significance of the board characteristics especially, for the non-financial institutions that can help them in designing the board strategies to enhance their performance. Therefore, Jordanian data will offer new empirical evidence in an emerging market, which will provide a better understanding of the relationship between board characteristics and firm performance.

scholarly journals Does good corporate governance lead to better firm performance? Strategic lessons from a structured literature review

2018 ◽  
Vol 15 (4) ◽  
pp. 73-85 ◽  
Author(s):  
Bushra Khan ◽  
André Nijhof ◽  
Rosalien A. Diepeveen ◽  
Daniëlle A. M. Melis
Keyword(s):  
Corporate Governance ◽  
Meta Analysis ◽  
Academic Research ◽  
Company Performance ◽  
Board Diversity ◽  
Good Corporate Governance ◽  
Moderating Factors ◽  
And Performance ◽  
The Relationship ◽  
Ongoing Dialogue

The objective of this paper is to disclose proven relationships between good corporate governance variables and the financial and/or non-financial performance of companies based on a meta-analysis of relevant studies. A meta-analysis was performed by means of academic research published between 2006 and 2016 in the five highest-ranked academic journals according to the Association of Business Schools (ABS) ranking. The relevant academic studies were selected on the basis of the relationship between corporate governance and performance. Our study provides evidence for the correlation between five corporate governance variables (board independence, board diversity, CEO characteristics, remuneration and oversight) and company performance. Furthermore, several mediating and moderating factors influencing the relationship between corporate governance variables and company performance were identified in this meta-study. The overview of corporate governance variables and their relation to company performance serves as input for a better understanding of this relationship and subsequently the ongoing dialogue on enhancing corporate governance in practice.

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