Asset Composition and Firm Performance in Korea : Effects of Intangible Assets on Firm Growth and Valuation

2021 ◽  
Vol 34 (5) ◽  
pp. 1181-1205
Author(s):  
Hyuk Chung
Keyword(s):  
Firm Performance ◽  
Firm Growth ◽  
Intangible Assets

scholarly journals Capital Structure and Firm Performance: Evidence from Malaysian Public Listed Plantation Companies

2021 ◽  
Vol 5 (1) ◽  
pp. 123-142
Author(s):  
Kim Foong Jee ◽  
Jia En Joanne Ngui ◽  
Pei Pei Jessica Poh ◽  
Wai Loon Chan ◽  
Yet Siang Wong
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Significant Relationship ◽  
Firm Growth ◽  
Control Variable ◽  
Short Term ◽  
Total Debt ◽  
And Performance ◽  
The Impact

This paper examines the relationship between capital structure and performance of firms. The study is confined to plantation sector companies in Malaysia and is based on a sample of 39 firms which listed in Bursa Malaysia for the period from 2009 to 2019. This study uses two performance measures which are ROA and ROE as the dependent variable. Besides, the capital structure measures are the short-term debt, long-term debt, total debt and firm growth, which as the independent variables. Size will be the control variable in this study. Moreover, a fixed-effect panel regression analysis has been used to analyse the impact of capital structure on firm performance. The results indicate that firm performance, which is in term of ROA, have an insignificant relationship with short-term debt (STD) and long-term debt (LTD). For the total debt (TD) and growth, there is a significant relationship with ROA. However, for the performance measured by ROE, it has an insignificant relationship with short-term debt (STD), long-term debt (LTD) and total debt (TD). Furthermore, there is a significant relationship between the growth and the performance firms from plantation sector in Malaysia.

High leverage and variance of SMEs performance

2019 ◽  
Vol 20 (2) ◽  
pp. 155-175 ◽  
Author(s):  
Mazen Gharsalli
Keyword(s):  
Firm Performance ◽  
Small Business ◽  
Firm Growth ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Good Investment ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between leverage and firm performance using small business data from France by estimating the effects of leverage on both average firm performance and the variance of firm performance. Design/methodology/approach Focusing on French small- and medium-sized enterprises (SMEs), which tend to be dependent on bank loans, the authors examine the relationship between leverage and firm performance. This study was based on a unique panel data set of more than 2,157 manufacturing SMEs covering the years 2007-2015. The authors estimate the effects of leverage on both average firm performance and the variance of firm performance. Findings Focusing on the average effects of leverage, the authors find that highly leveraged firms suffer from poor performance. In addition, the variance in firm performance is higher if firms are highly leveraged. Results also underline that leveraged firms are better performers when they have sufficient collateral assets. Research limitations/implications The study, however, has also some limitations. The first one is that the findings were obtained for only one industry sector, so attempts should be made to study the issue, as it applies to other sectors as well. Second is the context where the study was conducted. This study has been conducted based on data gathered from SMEs in France within a specific socioeconomic context (2007-2008 global financial crisis), which may also limit the generalizability of the results for different contexts with different socioeconomic situations. It would also be useful, to have a better explanation for the performance of SMEs, to add to the model more financial variables or other types of variables such as those related to managerial skills or to the macro-economic environment. Finally, further research could examine the joint impact of both leverage and ownership structure on firm’s performance as a large number of French firms are family firms. The limitations of this study, however, can in fact be an opportunity for future researchers to conduct studies addressing those limitations. Practical implications This research has some implications for small business lending. SME owners and managers may, on the one hand, be encouraged by the fact that collateral assets can reduce agency costs, thereby positively affecting firm performance. On the other hand, high leverage can facilitate firm growth if firms have collateral assets. This implies that policymakers interested in stimulating SMEs should develop more suitable collaterals for high-risk SMEs with low asset tangibility. Social implications The results also have implications for financial institutions. To prevent unexpected and extensive bankruptcies, banks might classify firms with negative cash flows as borrower in danger of bankruptcy. However, the results show that highly leveraged firms with good investment opportunities and high collateral assets reduce the probability of bankruptcy. This implies that banks need to evaluate the credit risk of very highly leveraged small businesses more carefully. Originality/value It should be noted that the case of France remains marginal in terms of the conducted studies.

Study of managers in Vietnam shows HPWS practices impact both employer outcomes and firm performance

2020 ◽  
Vol 28 (2) ◽  
pp. 24-26
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Firm Growth ◽  
Longitudinal Design ◽  
Service Firms ◽  
Firm Innovation ◽  
Environmental Pressures ◽  
Content Type ◽  
General Managers ◽  
Hr Managers

Purpose The purpose of this paper was to explore the effects of high-performance work systems (HPWS) on the performance of Vietnamese firms. Design/methodology/approach The authors adopt a longitudinal design to provide insights into why and how HPWS are shaped in Taiwan. They interviewed 17 leaders, including CEOs, HR managers and general managers in 17 Vietnamese service firms. They were interviewed twice, in 2013 then in 2017. Findings Analysis of the data showed that HPWS can impact both employee outcomes, such as attitudes, behaviours and productivity, and firm performance, such as firm innovation, firm growth and profit growth. Originality/value This was one of very few studies to try and understand how and why HPWS are shaped and executed to respond to environmental pressures.

The effects of intangible assets on firm performance

2019 ◽  
Vol 34 (3/4) ◽  
pp. 148-168
Author(s):  
Jannatul Ferdaous ◽  
Mohammad Mizanur Rahman
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Intangible Assets ◽  
Balance Sheet ◽  
Poor Performance ◽  
Significant Rise ◽  
Annual Reports ◽  
Content Type ◽  
Track Record ◽  
Effect Estimation

Purpose Using the resource-based view and knowledge-based view as theoretical backdrop, the purpose of this paper is to explore the relationship between intangible assets and firm performance. Design/methodology/approach The firms’ audited annual reports were collected during the period of 2007–2017 from 49 listed manufacturing firms of four industries in DSE, Bangladesh. This inductive research uses panel data (fixed-effect) estimation technique for balanced panel data to measure, describe, and analyze the firm performance. Findings After controlling some specific variables, the results reveal mixed behavioral effects of intangible assets on firm performance. Even if intangible assets trigger a significant rise in the firms’ EPS (a measure of financial performance), the firms cannot maximize shareholders’ wealth due to their poor performance in the stock market of Bangladesh. Practical implications The proposed models could be important tools for managers to integrate intangible assets in their decision process. The proposed models could also be important tools for investors to select their portfolios that have a track record for continuous investment in intangible assets in an efficient and sustainable way. Originality/value Intangible assets are largely absent from the firms’ balance sheet. Consequently, previous empirical research works struggled to measure and quantify the effects of intangible assets on firm performance. The study fills that gap in the understanding of intangible assets’ nature, measurement method, and their effects on firm performance.

NECESSITY VERSUS OPPORTUNITY MOTIVATION: NASCENT FIRM PERFORMANCE IN CARIBBEAN SMALL ISLAND DEVELOPING STATES

2019 ◽  
Vol 24 (04) ◽  
pp. 1950023
Author(s):  
PREEYA S. MOHAN
Keyword(s):  
Firm Performance ◽  
Business Performance ◽  
Firm Growth ◽  
Adult Population ◽  
Small Island ◽  
Small Island Developing States ◽  
Performance Variables ◽  
Start Up ◽  
Post Entry ◽  
And Control

This paper investigates entry motivation of nascent entrepreneurs and their post-entry performance in Caribbean Small Island Developing States (SIDS). The study estimates the effect of being a nascent opportunity/necessity entrepreneur on three business-performance variables — firm growth, exports and innovation using regression analysis and control for time, country and sector effects. The data come from the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) for Barbados, Jamaica and Trinidad and Tobago. The results show that opportunity versus necessity entrepreneurial start-up motivation tends to be related to a superior post-entry firm performance. In addition, personal and firm characteristics influence post-entry firm performance including gender, education, household income, number of owners, firm age and number of workers at start-up.

CEO Overconfidence and Firm Performance: The Moderating Effect of Restaurant Franchising

2020 ◽  
pp. 193896551989992
Author(s):  
Hong Soon Kim ◽  
SooCheong (Shawn) Jang
Keyword(s):  
Firm Performance ◽  
Financial Risk ◽  
Firm Growth ◽  
Moderating Effect ◽  
Restaurant Industry ◽  
For Profit ◽  
Firm Profitability ◽  
Restaurant Firms ◽  
The Relationship

This study examined the effect of CEO overconfidence on restaurant performance and how franchising, a key business format in the restaurant industry, affects the relationship. Based on the notion that overconfident individuals take more risks than non-overconfident people, this study hypothesized that CEO overconfidence positively (negatively) influences restaurant growth (profitability). Furthermore, since franchising reduces operational and financial risk, this study hypothesized that franchising moderates the relationship between CEO overconfidence and firm performance. The results of this study confirmed that CEO overconfidence positively influences firm growth but negatively affects firm profitability in the restaurant industry. This study also found that franchising negatively (positively) influences the effect of CEO overconfidence on restaurant firm growth (profitability). The results suggest that overconfident CEOs are more suitable for growth-seeking restaurant firms but less desirable for profit-seeking firms. The results also highlight that franchising mitigates the risk associated with CEO overconfidence. More detailed results and implications are discussed in this article.

scholarly journals The role of intangible assets and liabilities in firm performance: empirical evidence

2018 ◽  
Vol 19 (1) ◽  
pp. 42-59 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Nazli Anum Mohd Ghazali
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intangible Assets ◽  
Policy Implications ◽  
Corporate Financial Performance ◽  
Control Group ◽  
Single Measure ◽  
Content Type ◽  
Research Findings

Purpose The purpose of this paper is primarily to explore the extent of intangible assets and liabilities of large Malaysian companies. The authors also examine whether intangible assets and liabilities of a firm have similar or contrasting roles in firm performance. Design/methodology/approach Using a direct and straightforward measure of intangible assets and liabilities, the authors examine a large pool of data from large Malaysian companies over a six-year period spanning from 2008 to 2013. Findings The longitudinal analyses show a significant number of the sample companies, between 34 and 59.33 percent, have a consistent pattern of intangible liabilities. The authors also find firms with intangible liabilities have significantly underperformed financially than a control group of firms. In addition, the authors find that intangible liabilities have significant negative impact on firm performance whereas intangible assets have a contrasting positive impact on firm performance. Research limitations/implications One limitation of this study is that the authors have only used a single measure of intangible assets and liabilities. Albeit the measures used are straightforward and more objective, there could be other measures to capture intangibles. Practical implications The research findings have several theoretical as well as policy implications. Theoretically, the authors extend the resource-based view to the intangible asset-liability mix, affirming the crucial role of intangible resources in financial performance whilst introducing the unfavorable role of intangible liabilities in corporate financial performance. In terms of policy implications, the research findings provide initial empirical input to emerging calls for broader perspectives of intangibles, beyond intangible assets to include intangible liabilities, and therefore belong to an emerging paradigm toward the nature of intangibles. Originality/value This study documents a rare empirical account of the contrasting roles of intangible assets and liabilities in corporate financial performance.

scholarly journals Pengaruh Dewan Komisaris Independen, Kepemilikan Manajerial, Debt Ratio, Likuiditas, dan Faktor Lain pada Kinerja Perusahaan Manufaktur di BEI dengan Metode Tobin’s Q

2021 ◽  
Vol 5 (4) ◽  
pp. 391
Author(s):  
Silviana Silviana ◽  
Sawidji Widoatmodjo
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Firm Growth ◽  
Linear Regression Analysis ◽  
Board Independence ◽  
Managerial Ownership ◽  
Debt Ratio ◽  
Manufacturing Companies ◽  
Firm Age ◽  
Purposive Sampling

The study aims to gain empirical evidence about the effect of board independence, managerial ownership, debt ratio, liquidity, firm age, firm size, and firm growth to firm performance. Data sources come from manufacturing companies in Indonesia Stock Exchange (IDX) during 2014 to 2018 by using purposive sampling method. There are 48 samples selected as the final samples, then hypotheses tested by using multiple linear regression analysis. The conclusion of this study showed that debt ratio and firm size have positive significant to firm performance, but board independence, managerial ownership, liquidity, firm age, and firm growth do not significant to firm performance. Penelitian ini bertujuan memperoleh bukti empiris terkait pengaruh dewan komisaris independen, kepemilikan manajerial, debt ratio, likuiditas, umur perusahaan, ukuran perusahaan, dan pertumbuhan perusahaan terhadap kinerja perusahaan. Sumber data dari perusahaan manufaktur di Bursa Efek Indonesia (IDX) selama 2014 hingga 2018 dengan menggunakan metode purposive sampling. Terdapat 48 sampel yang terpilih sebagai sampel akhir, kemudian hipotesis diuji menggunakan analisis regresi linear berganda. Kesimpulan dari hasil penelitian ini menunjukkan bahwa debt ratio dan ukuran perusahaan berpengaruh positif signifikan terhadap kinerja perusahaan, tetapi dewan komisaris independen, kepemilikan manajerial, likuiditas, umur perusahaan, dan pertumbuhan perusahaan tidak signifikan berpengaruh terhadap kinerja perusahaan.

scholarly journals The Effect of Intangible Assets on Financial Performance, Financial Policies, and Market Value of Technology Firms: A Global Comparative Analysis

2021 ◽  
Vol 12 (1) ◽  
pp. 26
Author(s):  
Muhammad Junaid Qureshi ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Structural Equation ◽  
Intangible Assets ◽  
Group Analysis ◽  
Market Value ◽  
Equation Modeling ◽  
Best Interest ◽  
The Impact

Purpose- The purpose of this study is to examine the degree to which intangible assets affect financial performance and policy of the technological sector.Design/methodology/approach- Structural equation modeling analysis was used to ascertain the relationship among intangible assets, firm performance, firm policy, and firm value in the year 2015 to 2018 of 80 companies according to the market capitalization of their respective countries in the technology sector globally. The measures used in this study profitability efficiency, capital structure, dividend policy and market value that is calculated through the proxies ROA, ROE, ROIC, ATO, Net Profit Margin, debt to equity ratio, dividend payout ratio, price-earnings ratio, price to sales and price to book value.Finding- The results from Multi group Analysis (MGA) revealed that there are differences (p < .05) in the significance of the impact of Assets on the criterion variable between a few countries for instance Asset’s impact on ROIC is significantly different between Russia & China and USA.Practical implications- Owners and managers of technological sector global companies must recognize the importance of both the physical capital and the intangible resources to the best interest of the companiesOriginality/value– This is the first paper to examine the impact of intangible assets on firm performance, policies and value through cross country analysis in the technological sector.

Sign in / Sign up

Export Citation Format

Share Document