scholarly journals Crime, security and firm performance in South Africa

2012 ◽  
Vol 9 (4-2) ◽  
pp. 241-252
Author(s):  
Busani Moyo
Keyword(s):  
Firm Performance ◽  
Small Businesses ◽  
Small Firms ◽  
Ordinary Least Squares ◽  
Business Community ◽  
Security Systems ◽  
Cross Sectional ◽  
Negative Effect ◽  
To Come ◽  
The Impact

We use cross sectional data from the World Bank enterprise surveys gathered in 2007 in South Africa’s four cities (Johannesburg, Cape Town, Durban and Port Elizabeth) to assess the impact of business related crimes on firm performance proxied using firm sales. Using Ordinary Least Squares (OLS) and Tobit model, we find that crime in the form of theft, robbery, arson and vandalism has a negative effect on sales and hence firm performance. However the impact of domestic shipment crime is mixed and varies from city to city depending on the magnitude of losses incurred by firms in each city. Results also show that crime is regressive in nature because crime related losses are relatively higher among small firms than large firms. The prevalence of crime amongst small firms and its negative effect on firm performance suggest the need for government and the business community to come together and develop security systems that are effective and affordable to small businesses. This is because, supporting small businesses is important for growth and employment creation

scholarly journals The impact of gender diversity in the boardroom on firm performance: A South African perspective

2016 ◽  
Vol 11 (1) ◽  
pp. 71-79 ◽  
Author(s):  
Tshipa Jonty ◽  
Thabang Mokoaleli Mokoteli
Keyword(s):  
Firm Performance ◽  
South African ◽  
Firm Value ◽  
Small Firms ◽  
Resource Dependence ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Board Gender Diversity ◽  
The Impact

The study employs panel methodology and Ordinary Least Squares (OLS) multiple regression to examine the impact of board gender diversity on firm performance for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms during the period 2002 and 2011. The results show that board gender diversity among South African firms have been improving substantially since 2002 when King II came into force. In 2002, the average South African board had only 4 per cent of women and by 2011, this had increased to 13 per cent. Notably, the findings also show that large South African firms have a greater representivity of women on their boards than small firms. By inference this could mean that gender diversity has a positive influence on firm value as findings further show that firm value in large firms is higher than that in small firms. This study contribute to the debate of whether board gender diversity influences firm value and whether the South African government should consider adopting quota legislation such as in Spain, Norway, The Netherlands and France. The findings suggest that there is evidence of a business case to advocate the implementation of quota legislation in South Africa. Empirical findings proceed to confirm that theories of corporate governance such as agency, resource-dependence, signalling and stakeholding surely provide some support to understanding the relationship between board gender diversity and firm performance.

Is gender an impediment to firm performance? Evidence from small firms in Mauritius

2017 ◽  
Vol 23 (6) ◽  
pp. 952-976 ◽  
Author(s):  
Verena Tandrayen-Ragoobur ◽  
Harshana Kasseeah
Keyword(s):  
Firm Performance ◽  
Small Businesses ◽  
Small Firms ◽  
Ordinary Least Squares ◽  
Sensitivity Analyses ◽  
Female Entrepreneurship ◽  
Female Entrepreneurs ◽  
Male And Female ◽  
Content Type ◽  
Gender Factor

Purpose The purpose of this paper is to test the female entrepreneurship underperformance hypothesis using a sample of small firms. The paper also attempts to explain why gender matters in entrepreneurship. The paper specifically investigates the differences in turnover of female and male entrepreneurs and also examines the reasons behind this differential performance by accounting for the gender factor. Design/methodology/approach This study uses survey data on 256 male and female entrepreneurs from the Island of Mauritius. The survey allows for the examination of the performance differential across male- and female-owned small businesses. The paper uses ordinary least squares and logistic estimation techniques to investigate the underperformance of female entrepreneurs. Sensitivity analyses are also undertaken to ensure robustness of the results. Findings The study finds evidence that gender matters when comparing the performance of male- and female-owned businesses. The results reveal that access to finance is an important hindrance to the performance of these small firms. Furthermore, the study also reveals that ethnicity plays a major role in influencing firm performance. Originality/value This paper is among the few studies, which investigates the female entrepreneurship underperformance hypothesis in a small developing state context and also attempts to explain the reasons why gender matters. The paper is an important empirical contribution to the literature in an African context.

The Relationship between Training and Small Business Performance: An Analysis of the Barclays Bank Small Firms Training Loans Scheme

10.1068/c0111 ◽  
2002 ◽  
Vol 20 (2) ◽  
pp. 211-233 ◽  
Author(s):  
Stuart Fraser ◽  
David Storey ◽  
Julian Frankish ◽  
Richard Roberts
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Small Businesses ◽  
Business Performance ◽  
Small Firms ◽  
Firm Growth ◽  
Control Sample ◽  
Small Business Performance ◽  
The Impact ◽  
The Relationship

The authors assess empirically the impact on firm performance of a state-subsidised training-loan scheme for small businesses (the Small Firms Training Loan Scheme). To achieve this assessment, a longitudinal sample of firms that received loans from the leading lender under the scheme, Barclays Bank, and a control sample of otherwise similar nonparticipants with Barclays accounts were studied. The authors present and apply a panel-data methodology for estimating the impact of the scheme on firm growth, which is able to take into account nonrandom selection onto the scheme. The main empirical findings are that participants are both more likely to survive and to grow faster than nonparticipants.

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

Board gender diversity: performance and risk of Brazilian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Mastella ◽  
Daniel Vancin ◽  
Marcelo Perlin ◽  
Guilherme Kirch
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Firm Risk ◽  
Content Type ◽  
Study Approach ◽  
Female Presence ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to intend to check if female board representation affects performance and risk and to analyse the evolution of the demographic aspects of the presence of women on boards in Brazil. Design/methodology/approach The authors used a sample of 150 Brazilian publicly traded companies from 2010–2018, with different measures of firm performance, firm risk and women’s presence on the board. The study approach is based on a set of ordinary least squares, quantile and panel data regressions. Findings The presence of women on the board has a positive effect on all of our accounting and market performance measures. However, the result of the impact on risk is not conclusive. The study also found that the number of females on the board has a more significant effect at the lower levels of firm performance measured by return on equity, but at the higher levels when measured by Tobin’s Q. Regarding return on assets, the more significant effect happened on the extremes of the performance distribution. The study findings point that market investors place more value in female presence on the board than in director positions. Originality/value By estimating the impact of women’s presence on the boards of directors in firm performance and risk, this study aimed to verify this impact in different aspects of the company. In addition, the authors did so in a sample with many years, making it possible to evaluate the historical evolution of the feminine presence in the boards of administration as well as in the groups of directors, assisting Brazilian legislators with new evidence about the possible impacts of Draft Law 7179/2017.

scholarly journals The Impact of Coercive Pressures on Sustainability Practices of Small Businesses in South Africa

2018 ◽  
Vol 10 (9) ◽  
pp. 3032 ◽  
Author(s):  
Reginald Masocha ◽  
Olawale Fatoki
Keyword(s):  
Sustainable Development ◽  
Small Businesses ◽  
Structural Equation ◽  
Small Firms ◽  
Likelihood Estimation ◽  
Three Dimensions ◽  
Research Approach ◽  
Sustainability Practices ◽  
The Impact ◽  
Isomorphic Pressures

The study sought to examine the role that coercive isomorphic pressures play in the sustainable development practices by small and medium enterprises (SMEs). The survey research approach was utilised in the research through 222 self-administered questionnaires distributed to SME owners and managers. The structural equation modelling (SEM) method was utilised to analyse the data through the Maximum Likelihood Estimation (MLE) method in Amos Version 24 software. Major findings in this study are that coercive isomorphic pressures have a significant impact on all the three dimensions of sustainable development which are economic, environmental and social. The implications are that government, environmental pressure groups and other stakeholders need to take into consideration the coercive pressures such as laws and regulations in pressuring small businesses to enhance sustainability practices. The research contributes by unearthing the extent to which coercive pressures impact the behaviour and practices of SMEs in sustainability practices. The study indicates that eventually small firms are expected to behave the same when it comes to adopting sustainability practices due to coercive isomorphism. The findings of this study further contribute toward understanding the concept of sustainable development in practice and theory.

The effect of the financial crisis on audit quality: European evidence

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria I. Kyriakou
Keyword(s):  
Financial Crisis ◽  
Audit Quality ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Cross Sectional ◽  
Accounting Firms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Big Four

Purpose This paper aims to examine the impact of the recent financial crisis on audit quality by analysing discretionary accruals. Design/methodology/approach This study considers a sample of German, French, Italian and Spanish non-financial firms from 2005 to 2013 to investigate the auditor’s independence. It uses a cross-sectional and time-series ordinary least squares regression model to control for other predictors of the auditor’s independence when the financial crisis produces a decrease in audit quality. Findings The proportion of the non-financial firms having lower audit quality was higher during the financial crisis. In addition, during the crisis auditors were less likely to provide a higher audit quality for these non-financial firms. The level of audit quality returned to normal levels during the post-crisis years when the crisis had ceased. Originality/value These findings contribute to the literature on the impact of economic and financial changes on audit quality. In addition, this research finds that the Big Four accounting firms provide a higher audit quality in different circumstances from non-Big Four accounting firms, and that audit quality decreased during the crisis and returned to normal in the post-crisis period.

The impact of trust on social and financial capital acquisition: A resource integration perspective in minority-owned entrepreneurial organisations

2022 ◽  
pp. 026624262110553
Author(s):  
Ronald L Pegram ◽  
Camelia L Clarke ◽  
James W Peltier ◽  
K Praveen Parboteeah
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Policy Implications ◽  
Financial Capital ◽  
Resource Integration ◽  
Entrepreneurial Success ◽  
Negative Effect ◽  
Research Findings ◽  
The Impact ◽  
Minority Entrepreneurs

Although effective resource integration is a critical requisite for entrepreneurial success, the literature suggests there are crucial gaps for minority entrepreneurs. We examine how interracial distrust (ID), an indicator of the extent to which minority entrepreneurs distrust other races, is related to internal and social capital. We examine the relationships of such capitals on the willingness to borrow from banks and friends, and explore the link with firm performance. Using a sample of 276 primarily African American entrepreneurs, we find support for most of our hypotheses. We find that ID is negatively associated with external social capital and a willingness to borrow from banks. Surprisingly, we found that ID had a negative effect on internal social capital and a willingness to borrow from friends. We also found that internal and external social capital was positively related to firm performance. We discuss the implications of some of these surprising research findings as well as the policy implications.

Working Capital Financing, Firm Performance and Financial Flexibility: Evidence from Indian Hospitality Firms

2020 ◽  
pp. 097215092096137
Author(s):  
Nufazil Altaf
Keyword(s):  
Firm Performance ◽  
Method Of Moment ◽  
Working Capital ◽  
Short Term ◽  
Financial Flexibility ◽  
Negative Effect ◽  
Capital Financing ◽  
Hospitality Firms ◽  
Break Even Point ◽  
The Impact

This article examines the relationship between working capital financing and firm performance for a sample of 185 Indian hospitality firms. In addition, this study examines the impact of financial flexibility on working capital financing performance relationship for a period of 10 years. This study employs two-step generalized method of moment (GMM) techniques to arrive at results. Results of the study confirm the inverted U-shaped relationship between working capital financing and firm performance with optimal break-even point, beyond which short-term debt financing has a negative effect on performance at 0.54. In addition, we found that firms likely to be more financially flexible can finance a greater proportion of working capital using short-term debt, since break-even point turns out to be high for firms likely to be more financially flexible. The study is expected to extend the existing debate on working capital management by using the sample of Indian Hospitality firms for analysing the above-mentioned relationships.

Product diversification, business structure, and firm performance in Taiwanese property and liability insurance sector

2017 ◽  
Vol 18 (5) ◽  
pp. 486-499 ◽  
Author(s):  
Chen-Ying Lee
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Product Diversification ◽  
Least Squares Regression ◽  
Fixed Effects Model ◽  
Content Type ◽  
The Impact ◽  
Business Structure

Purpose The purpose of this study is to analyze product diversification, business structure and insurer performance with a comprehensive look at the property-liability (P/L) insurance operations. Design/methodology/approach Using a panel data, this study employs an ordinary least squares regression model, fixed effects model and random effects model to examine the impact of product diversification and business structure on the performance of P/L insurers. The study assesses insurer performance using both risk-adjusted return on assets and risk-adjusted return on equity. Findings The study finds that product diversification is significantly negatively related to the performance of P/L insurers. The results are consistent with the diversification discount theory. The empirical results reveal that business lines have significant impacts on firm performance, particularly on the lines of fire and marine insurances. Furthermore, the interaction between product diversification and firm size implies that product diversification significantly increases the performance of large-sized insurance firms. Originality/value The study provides some valuable insights into the effects of diversification and business structure on the performance of P/L insurers in a developing country. The study’s findings suggest that management of P/L insurers should clarify their objectives and carefully assess the company’s resources when dealing with product diversification and business structure. The results have practical implications for the financial services industry in Taiwan.

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