scholarly journals The differential effect of labour unrest on corporate financial performance

2015 ◽  
Vol 5 (3) ◽  
pp. 246-254
Author(s):  
Fortune Ganda ◽  
Collins C Ngwakwe
Keyword(s):  
Content Analysis ◽  
Financial Performance ◽  
Performance Measures ◽  
Empirical Data ◽  
Differential Effect ◽  
Corporate Financial Performance ◽  
Operating Profit ◽  
Paired Samples ◽  
Return On Capital ◽  
Financial Performance Measures

Heightening labour unrest episodes have inevitably generated important results on corporate financial performance. This paper provides first-hand, empirical data to illustrate the effect of labour unrest on firm performance before periods of labour unrest (2004 to 2008) and during periods of labour unrest (2009 to 2013) in South Africa’s mining sector. Content analysis was used to gather financial performance measures (Operating profit, Return on Capital Employed and Debt to Equity Ratios) of two mining firms. Then, t-test (paired samples) were utilised to analyse the data. The findings demonstrates that operating profit during labour unrest was lower when compared to operating profit before labour unrest for both company’s A and B. Return on Capital Employed results for five years before labour unrest was greater than ROCE during the labour unrest for both companies. Then, debt to equity during the labour unrest is greater than before labour unrest for the studied companies.

scholarly journals Questioning the context of corporate performance measures in benchmarking CEO compensation

2015 ◽  
Vol 13 (1) ◽  
pp. 945-957 ◽  
Author(s):  
Merwe Oberholzer ◽  
Jaco Barnard
Keyword(s):  
Content Analysis ◽  
Performance Measurement ◽  
Financial Performance ◽  
Special Reference ◽  
Agency Theory ◽  
Performance Measures ◽  
Performance Measurements ◽  
Future Studies ◽  
Ceo Pay ◽  
Financial Performance Measures

The purpose of the study was to reflect on existing practices in studying the CEO pay performance issue, with special reference to the context wherein the financial performance measurements were employed. In total, an in-depth content analysis of 40 published articles was done. Some flaws were identified in prior research, namely some studies only use either market-based or accounting-based measurements, only a single performance measurement, measurements without the context of the subjacent risks, monetary values without substance as performance measurements and without the context of a theory. The contribution of this study is that a framework is developed to guide future studies with regard to the context wherein financial performance measures should be employed and that some theories, additional to the agency theory, were identified that should be tested more frequently in pay performance-related studies.

Sustainability Disclosure and the Financialization of Social Sustainability

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Daniela Woschnack ◽  
Stefanie Hiss ◽  
Sebastian Nagel ◽  
Bernd Teufel
Keyword(s):  
Content Analysis ◽  
Empirical Study ◽  
Financial Performance ◽  
Financial Market ◽  
Empirical Data ◽  
Qualitative Content Analysis ◽  
Social Sustainability ◽  
Rating Agencies ◽  
Sustainability Disclosure ◽  
Definition Of

Abstract This empirical study explores the financialization of social sustainability driven by sustainability accounting and reporting initiatives (SARIs). Since no globally accepted definition of what social sustainability encompasses exists, the paper asks how social sustainability is translated into the financial market language by SARIs as they provide standards for disclosing corporate non-financial performance and promote their concepts of social sustainability. The paper uses a two-step qualitative content analysis. First, it operationalizes social sustainability based on the empirical data of six sustainability rating agencies. Second, this operationalization is compared with the concepts created by three SARIs. The paper shows significant differences between the concepts of the SARIs and the rating agencies. While the rating agencies altogether interpret social sustainability with 83 distinct aspects, the SARIs, although differently created, use significant reduced concepts where 20% of these aspects are absent. The result of this financialization process could be a simplified and financially determined concept of social sustainability within die socially discourse. The research is limited to social sustainability and its financialization by SARIs. Individual indicators and their way or intensity to capture aspects of social sustainability were not part of the research interest. Further research should investigate the economic and the ecological pillars of sustainability as well as the usage of such financialized concepts within the society and especially by corporations. The paper unfolds the arbitrariness of operationalizing a qualitative phenomenon like social sustainability through the financial system. It discloses the need for looking at the mechanisms behind such processes and at the interests of the actors behind the frameworks. The paper reveals the financialization process driven by SARIs and demonstrates its simplifying effects on the concept of social sustainability. Furthermore, the paper shows that SARIs as metrics for non-financial aspects are troubled with a lack of transparency and a lack of convergence.

A Production Approach to Performance of Banks with Microfinance Operations

2014 ◽  
Vol 6 (2) ◽  
pp. 18-35 ◽  
Author(s):  
Emilyn Cabanda ◽  
Eleanor C. Domingo
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Performance ◽  
Performance Measures ◽  
Negative Relationship ◽  
The Philippines ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Production Frontier ◽  
Financial Performance Measures ◽  
Production Approach

Banking institutions, nowadays, serve as intermediaries of funds to a variety of clients, including the micro enterprisers. This study analyzes and measures the performance of rural and thrift banks with microfinance operations in the Philippines, using combined measures of data envelopment analysis and traditional financial performance indicators. Data envelopment analysis (DEA) method is employed to measure the productive efficiency of these banks under the production approach. The variable returns to scale is also used, with the assumption that not all banks are operating at optimal scale over the long-run period. DEA findings reveal that sample banks performed below the production frontier. The average technical efficiency score of these banks is 66.09% and additional 33.91% is needed to reach the production frontier. Overall, thrift banks are found to be more productively efficient than rural banks as depository banks. The authors have also found a strong relationship between financial performance measures and bank's productive efficiency. For thrift banks, sustainability, ROE and ROA measures showed a statistically significant positive correlation to the banks' productive efficiency while a negative relationship was observed in rural banks. Lastly, the authors can suggest that both DEA's productive efficiency and financial performance measures are consistently and strongly correlated when evaluating the overall performance of banks with microfinance operations.

The effectiveness of flexible manufacturing strategies

2009 ◽  
Vol 58 (2) ◽  
pp. 119-135 ◽  
Author(s):  
Therese A. Joiner ◽  
X. Sarah Yang Spencer ◽  
Suzanne Salmon
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Flexible Manufacturing ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Manufacturing Strategy ◽  
Organisational Performance ◽  
Content Type ◽  
Financial Performance Measures

PurposeAgainst a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement systems (PMS), this study seeks to examine the mediating role of both non‐financial and financial performance measures in the relationship between a firm's strategic orientation of flexible manufacturing and organisational performance.Design/methodology/approachA path‐analytical model is adopted using questionnaire data from 84 Australian manufacturing firms.FindingsThe results indicate that, first, firms emphasising a flexible manufacturing strategy utilise non‐financial as well as financial performance measures; second, these performance measures are associated with higher organisational performance; and third, there is a positive association between a firm's strategic emphasis on flexible manufacturing and organisation performance via non‐financial and financial performance measures.Practical implicationsWhile there is agreement on the beneficial role of non‐financial performance measures in supporting strategic priorities associated with customization strategies, equivocal research results have emerged on the role of financial performance measures in this context. The study underscores the importance of both non‐financial and financial performance measures in this context.Originality/valueThe paper reinstates the value of financial performance measures for firms pursuing customization type strategies and adds to one's knowledge of PMSs by exploring the intervening role of such systems in linking flexible manufacturing strategy to organisation performance.

CEO Narcissism and Accounting: A Picture of Profits

2013 ◽  
Vol 26 (2) ◽  
pp. 243-267 ◽  
Author(s):  
Kari Joseph Olsen ◽  
Kelsey Kay Dworkis ◽  
S. Mark Young
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Data Availability ◽  
Personality Characteristics ◽  
Share Price ◽  
Earnings Per Share ◽  
Narcissistic Personality ◽  
Financial Performance Measures ◽  
Operational Activities ◽  
Ceo Narcissism

ABSTRACT This study investigates the relationship between narcissistic personality characteristics in CEOs of Fortune 500 companies and financial performance measures of earnings-per-share (EPS) and stock valuation. Using panel data from 1992 through 2009, we show that firms with narcissistic CEOs have higher earnings-per-share and share price than those with non-narcissistic CEOs. We examine the mechanism driving the observed results and find that narcissistic CEOs are more likely to increase reported EPS through real and operational activities rather than accrual-based manipulations. The findings suggest that narcissistic personality characteristics of top executives affect financial performance measures through the executive's decisions and influence over the firm's operational activities rather than through accrual and accounting decisions. Data Availability: Data available upon request.

Sign in / Sign up

Export Citation Format

Share Document