scholarly journals Ownership concentration and financial performance: the case of Sri Lankan listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 170-177 ◽  
Author(s):  
Chandrapala Pathirawasam ◽  
Guneratne Wickremasinghe
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Study Finding ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Performance Measure ◽  
Ownership Concentration ◽  
Sri Lankan ◽  
Endogenous Factors ◽  
The Impact

The purpose of this paper is to examine the impact of ownership concentration and the other endogenous factors on the financial performance of companies listed on the Colombo Stock Exchange. Both pooled and ordinary least squares regressions are used to analyze the data. The return on assets (ROA) is used as the performance measure. One study finding is that the ownership concentration within these listed companies does not have a statistically significant positive relationship with the ROA. However, the study indicates that firm size, quick ratio and ratio of inventory investment to total assets have positive impacts on the ROA. But the debt ratio is negatively related to the financial performance of the listed companies.

Corporate Tax Planning and Financial Performance of Companies Listed in Colombo Stock Exchange (CSE)

2020 ◽  
Vol 3 (2) ◽  
pp. 1-15
Author(s):  
Dunusinghe Dharmarathna
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Tax Planning ◽  
Sri Lankan ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Return On Assets ◽  
Tax Rate

This study focuses on how best performing listed companies in CSE make strategies in tax planning to reduce tax liabilities without violating rules and regulations imposed by the Tax Authority. In this study, the corporate tax planning was measured by using the Effective Tax Rate (ETR) and the financial performance was measured by using Return on Assets (ROA). The sample of the study was designed based on criteria namely, the largest and most liquid companies in the Sri Lankan equity market and the sample period was restricted for the period 10 years from 2009-2018. The sample represents seventeen (17) companies which are used to calculate the S&P SL 20 index. Data was collected through the published annual reports of CSE of the selected listed companies during the selected financial time period. Co-integration regression along with Panel Dynamic Ordinary Least Squares (DOLS) statistical technique was used to explore this study. Johansen co-integration test confirmed to run the panel DOLS. According to the result of that, corporate tax planning has a negative impact on the financial performance of Sri Lankan best-performing companies listed in CSE however, which is not statistically significant at 5% level. It provides evidence that there is no significant impact from corporate tax planning strategies to the financial performance of listed companies in CSE. This evidence implies that Sri Lankan firms do not utilize the loopholes embedded in the Sri Lankan tax law efficiently. Keywords: Corporate Tax Planning, Colombo Stock Exchange, Co-integration regression, Effective Tax Rate, Financial Performance, Panel Dynamic Ordinary Least Squares, Return on Assets.

scholarly journals Impact of the Ownership Structure on the Financial Performance of Banks: Comparative Study between Conventional and Islamic Banks

2019 ◽  
Vol 4 (2) ◽  
pp. 50-63
Author(s):  
Achraf Haddad ◽  
Anis El Ammari ◽  
Abdelfattah Bouri
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Least Squares Method ◽  
Conflicts Of Interest ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Performance Measure ◽  
Islamic Banks ◽  
Two Samples ◽  
The Impact

According to the literature of corporate governance, ownership structure is advanced as a non-dissociable mechanism of control intended to follow the stakeholders and especially used by shareholders to monitor the conflicts of interest and the opportunistic behavior of managers. Several previous studies have focused on the impact of ownership structure on financial performance separately in conventional or in Islamic banks. However, the comparative studies between these two impacts are non-existent. In this research, we compared the impacts of this governance mechanism on the financial performance in the two types of banks by using the Ordinary Least Squares method. Data relating to financial performance and ownership structure of banks come from 16 countries. Two samples were collected: the first one included 63 conventional banks, whereas the second one integrated 63 Islamic banks whose data are available over the period (2010-2018). Panel results showed that partial effect of each determinant of ownership structure on each measure of financial performance varied from one banks’ type to another and from one performance measure to another. Besides, the reconciliation of similar models revealed many differences between the same impacts’ signs. Therefore, we concluded that in both banks’ types the ownership structure has a positive impact on the financial performance. While, the negative part of the same impact is less significant in Islamic banks. JEL Classification:  F33, G20, G21, G24, G30.

scholarly journals The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand

2021 ◽  
Vol 13 (16) ◽  
pp. 8920
Author(s):  
Muttanachai Suttipun ◽  
Pankaewta Lakkanawanit ◽  
Trairong Swatdikun ◽  
Wilawan Dungtripop
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Descriptive Analysis ◽  
Listed Companies ◽  
Annual Reports ◽  
Corporate Social ◽  
The Impact

This study aims to: (1) investigate the amount of corporate social and environmental responsibility (CSR) spending, awards, and activities of listed companies in the Stock Exchange of Thailand (SET) and in the Market for Alternative Investment (MAI); (2) test the impact of CSR spending, awards, and financial performance activities; and (3) examine the amount of CSR spending, awards, and activities between companies with and without a CSR committee. The sample included all the listed companies in the resource industry from the SET and the MAI. The data were collected from the companies’ annual reports from 2015 to 2019. Descriptive analysis, an independent-sample t-test, a correlation matrix, and an unbalanced panel data analysis were used to analyze the data. The average level of spending per activity was 2.2964 million baht. There were, on average, 2.1741 awards and 11.4178 activities during the studied period. Moreover, there was a significant negative impact of CSR spending, and a positive impact of CSR awards and activities, on corporate financial performance. Finally, there was a significantly different amount of CSR spending, awards, and activities between the companies with and without a CSR committee. The findings of this study demonstrate that legitimacy theory can be used to explain the benefit of CSR to Thai-listed companies, although CSR is still a voluntary corporate responsibility in Thailand.

The impact of environmental performance on capital structure and firm performance: the case of Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Kalash
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Content Type ◽  
The Impact ◽  
The Capital Structure

Purpose The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms. Design/methodology/approach This study used data of 49 firms listed on Istanbul Stock Exchange during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary least squares and binary logistic regression models were used to examine whether environmental performance impacts the capital structure and financial performance. Findings The findings of this research revealed that environmental performance significantly positively affects the firm leverage. Findings also showed that environmental performance has a significantly positive impact on return on assets, operating profitability and return on equity, but no significant impact on stock returns. Practical implications Given the increased borrowing costs for Turkish firms after the 2018 currency crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to make better decisions related to capital structure and to understand the role of environmental performance in reducing the cost of debt and enhancing financial performance. Originality/value To the author’s knowledge, this research is the first to investigate the effect of environmental performance on capital structure in the Turkish context, and is one of few that explained how environmental performance affects the financial performance of Turkish firms.

scholarly journals Relationship of board diversity with firm’s financial performance: The case of publicly listed companies in China

2021 ◽  
Vol 19 (1, special issue) ◽  
pp. 229-240
Author(s):  
David Qian ◽  
Wahed Waheduzzaman ◽  
Sarod Khandaker
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Hierarchical Regression ◽  
Measurement Tool ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Board Diversity ◽  
Value Measurement ◽  
The Impact

This study examines the impact of board diversity including the gender, nationality, and independence of board members on the financial performance of publicly listed companies in China. This study uses a sample of 206 publicly listed companies on the Shanghai Stock Exchange and the Shenzhen Stock Exchange in China to measure the impact of board diversity on their financial performance. Organizational financial performance is measured with the widely-used accounting-based measurement tool return on asset (ROA), and the market value measurement tool Tobin’s Q. After applying a hierarchical regression analysis this study finds that women on the board impact positively on firm’s financial performance while measures by ROA, but not by Tobin’s Q. The study also finds that the nationality of directors and independent board membership is found to have no significant influence on firms’ financial performance. This study has implications on the business firms to develop the strategic guidelines of board composition to ensure the effectiveness and profitability of their companies

scholarly journals Audit Committee Characteristics and their Impact on Intellectual Capital Disclosure: A Study of Listed Manufacturing Companies in Sri Lanka

2019 ◽  
Vol 14 (1) ◽  
pp. 135-149
Author(s):  
Nimalathasan Balasundaram ◽  
Keyword(s):  
Sri Lanka ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Sri Lankan ◽  
Manufacturing Companies ◽  
The Impact

In the today’s knowledge based economy, intellectual capital (IC) is considered as a strategic asset which determines the value of the company. Different practices of disclosing IC information in annual reports that do not show the real financial position of a company, is a main problem in Sri Lankan companies. The objective of this study was to find out the impact of audit committee characteristics on Intellectual Capital Disclosure (ICD) of listed companies on the Colombo Stock Exchange (CSE) for a period of five- years from 2012/2013 to 2017/2018. The ICD index comprised of 30 items in terms of Relational Capital Disclosure (RCD), Structural Capital Disclosure (SCD) and Human Capital Disclosure (HCD). The data was analyzed using correlations and regression analysis. Most of the Sri Lankan Listed companies disclosed ICD in text, sentences, pictures, tables and graphs in line with the Global Reporting Initiative (GRI) guidelines in their annual reports. ICD was measured by a disclosure index score. The independent variables comprised various forms of audit committee characteristics: audit committee size, frequency of audit committee meetings and audit committee independence. The study confirms that the size of the audit committee and audit committee meetings are important attributes to explain ICD in Sri Lanka. However, the study found a negative significant relationship between ICD and audit committee independence. Keywords: audit committee independence, audit committee meeting, audit committee size, intellectual capital disclosure

scholarly journals Impact of gender and nationality diversity on financial performance: A study of listed banks in Morocco

2020 ◽  
Vol 18 (1) ◽  
pp. 56-68 ◽  
Author(s):  
Mhamed Chebri ◽  
Abdeaziz Bahoussa
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Empirical Literature ◽  
Depth Analysis ◽  
Fixed Effects Regression ◽  
The Impact

The purpose of this article is to explore the effect of the diversity of boards on the financial performance of banks. Based on an in-depth analysis of the theoretical and empirical literature, this study aims to examine the impact of gender diversity and the diversity of nationalities on the financial performance of Moroccan banks. To this end, the study uses a set of panel data from all Moroccan banks listed on the stock exchange for the period 2014-2018. The model was estimated by an ordinary least squares (OLS) regression equation , by the time fixed-effects regression model, and then by three-stage least squares (3SLS) regression analysis with time fixed effects to better understand the endogeneity problem variables of the model. The results of the study reveal that gender diversity has a negative and significant effect on the financial performance of listed Moroccan banks measured by both return on assets (ROA) and return on equity (ROE), while the national diversity is not significantly related to the financial performance of these banks. Likewise, the interaction between the two measures of diversity has no significant impact on financial performance.

scholarly journals Cash flow sensitivity of investment: Evidence from the Polish listed companies

2020 ◽  
Vol 7 (54) ◽  
pp. 157-171
Author(s):  
Marian Nehrebecki
Keyword(s):  
Cash Flow ◽  
Least Squares Method ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Monetary Transmission ◽  
Balance Sheet Channel ◽  
Warsaw Stock Exchange ◽  
The Impact

AbstractThe paper focuses on assessment of the sensitivity of investment on cash flow (ICFS) made by listed companies in Poland. Achieving this goal will also involve analysing and drawing conclusions about the balance-sheet channel of monetary transmission. An empirical part uses data from financial statements for Poland derived from Emerging Markets Information Services (EMIS), related to companies listed on the Warsaw Stock Exchange and NewConnect. Estimations were made using the Ordinary Least Squares method with robust standard errors, and results made it clear that cash flow has a positive significant impact, indicating that most companies operate on the imperfect and incomplete market, and with constrained or costly access to external financing. Further, it is found that the impact is significantly strong in the slowdown, as financial constraints are more binding. These results seem to confirm that the balance-sheet channel of monetary transmission is operative in Poland.

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