scholarly journals The impact of Inward FDI on Host country: Firm Performance in New Zealand

2021 ◽  
Author(s):  
◽  
Yi Zou
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Host Country ◽  
Capital Investment ◽  
Service Industry ◽  
Empirical Studies ◽  
Spillover Effects ◽  
Superior Performance ◽  
The Impact ◽  
Local Firms

<p>Foreign direct investment (FDI) and its multinationals' activities are well accepted as an engine of growth by which a host country can benefit from the injection of capital investment, technology and managerial knowhow to build up indigenous competitiveness through spillovers effects and productivity gap between foreign affiliates and local firms New Zealand is a small but developed economy. FDI plays an important role in the development and growth of local industry in New Zealand. In the extant literature, there was very few studies research on the performance gap in New Zealand context. This paper investigates the effect of inward FDI on host country theoretically, focusing on the spillover effects and firm performance. Statistical analysis tests the possibility of performance gap's existence in New Zealand firms. In addition, separated attention is provided to service industry to differ from manufacturing industries that always be testified in many empirical studies. The findings provide evidence that foreign owned firms have superior performance advantages over local firms. But more research needs to be conducted for more conclusive results.</p>

scholarly journals The impact of Inward FDI on Host country: Firm Performance in New Zealand

2021 ◽  
Author(s):  
◽  
Yi Zou
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Host Country ◽  
Capital Investment ◽  
Service Industry ◽  
Empirical Studies ◽  
Spillover Effects ◽  
Superior Performance ◽  
The Impact ◽  
Local Firms

<p>Foreign direct investment (FDI) and its multinationals' activities are well accepted as an engine of growth by which a host country can benefit from the injection of capital investment, technology and managerial knowhow to build up indigenous competitiveness through spillovers effects and productivity gap between foreign affiliates and local firms New Zealand is a small but developed economy. FDI plays an important role in the development and growth of local industry in New Zealand. In the extant literature, there was very few studies research on the performance gap in New Zealand context. This paper investigates the effect of inward FDI on host country theoretically, focusing on the spillover effects and firm performance. Statistical analysis tests the possibility of performance gap's existence in New Zealand firms. In addition, separated attention is provided to service industry to differ from manufacturing industries that always be testified in many empirical studies. The findings provide evidence that foreign owned firms have superior performance advantages over local firms. But more research needs to be conducted for more conclusive results.</p>

The impact of servitization on firm performance: a meta-analysis

2018 ◽  
Vol 38 (7) ◽  
pp. 1562-1588 ◽  
Author(s):  
Weijiao Wang ◽  
Kee-Hung Lai ◽  
Yongyi Shou
Keyword(s):  
Firm Performance ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Effective Means ◽  
Superior Performance ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact

Purpose Servitization has been recognized as an effective means for manufacturers to achieve superior performance. However, the servitization-performance relationship is controversial since prior empirical studies have provided inconsistent and even contradictory results. Hence, the purpose of this paper is to provide a quantitative review on the servitization-performance relationship based on research findings reported in the extant literature. Design/methodology/approach Studies from 41 peer-reviewed journal articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between servitization and firm performance. Findings The results confirm a positive servitization-performance relationship. In addition, the results reveal that the observed servitization-performance relationship is influenced by the operationalization of constructs (servitization and performance) and control variables (industry and region). Originality/value As the first meta-analysis on the servitization-performance relationship, this study contributes to the servitization literature and provides future research directions.

scholarly journals The Effect of Related Party Transactions on the Performance of Indonesian Listed Companies

2021 ◽  
Vol 20 (1) ◽  
pp. 21-39
Author(s):  
Brigitta Angelica ◽  
◽  
Desya Gunawan ◽  
Jessy Christella ◽  
Yane Chandera ◽  
...  
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Company Performance ◽  
Minority Shareholders ◽  
Related Party Transactions ◽  
Direct Light ◽  
Panel Data Regression ◽  
The Impact

Abstract. The purpose of this paper is to analyze the impact of related party transactions (RPTs) on company performance using a panel data regression on 388 non-financial companies listed in Indonesia Stock Exchange during the 2015-2018 period. RPT variables used in this study are divided into several categories, namely transactions with related parties in the operational field (operational RPTs), financial field (financial RPTs), other fields (other RPTs), and total RPTs (sum of the three previous types). The study finds a significant negative relationship between financial RPTs and other RPTs on company performance. This finding is consistent with the precedent research that non-operational RPTs (i.e., financial RPTs and other RPTs) are commonly used by controlling shareholders as tunneling channels to expropriate minority shareholders. The results suggest policymakers to monitor more closely RPTs, particularly financial and other RPTs, that are more likely to be used as tunneling activities that are detrimental to firm performance. The results of this study are robust to various proxies of firm performance, providing additional empirical studies on RPTs in emerging countries with concentrated ownership structure, and shedding direct light on which type of RPTs that is mainly used as tunneling channel. Keywords: Efficient transaction hypothesis, firm performance, Indonesia, related party transactions, type II agency problem

Impact of CEO Overconfidence on Firm Performance: An Evidence from S&P BSE 200

2019 ◽  
Vol 23 (3) ◽  
pp. 234-243
Author(s):  
Hardeep Singh Mundi ◽  
Parmjit Kaur
Keyword(s):  
Firm Performance ◽  
Superior Performance ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Full Sample ◽  
Forecasting Error ◽  
Research Article ◽  
The Impact

The current research article considers the impact of CEO overconfidence on firm performance for S&P BSE 200 firms. The CEO overconfidence is measured using revealed beliefs (holder 67, long holder and net buyer), press coverage and forecasting error proxies of CEO overconfidence. CEO Overconfidence measures are constructed as per the methodology of Malmendier and Tate (2005b, 2008). Firm performance is measured using Tobin’s Q and return on assets. The data are collected from the Centre for Monitoring Indian Economy (CMIE) prowess, S&P Capital IQ and the annual reports of the sample firms over a period of 15 years starting from 1 April 2000 to 31 March 2015. Regression results for each of the proxy of CEO overconfidence with the proxies of firm performance indicate that large Indian firms with overconfident CEOs enjoy a higher return on assets and Tobin’s Q as compared to the full sample firms. Overconfident CEOs consider themselves better-than-average, are involved with over-investment and show superior performance for the firm. The overconfident CEOs increase firm performance by following optimal levels of investments in the firm.

How can leader humor enhance subordinates’ service creativity? The moderator of subordinates’ SFIT and the mediator of role modeling

2020 ◽  
Vol 41 (6) ◽  
pp. 865-882
Author(s):  
Leiqing Peng ◽  
Shaohui Lei ◽  
Yulang Guo ◽  
Fei Qiu
Keyword(s):  
Service Industry ◽  
Empirical Studies ◽  
Organizational Factors ◽  
Role Modeling ◽  
Content Type ◽  
Moderated Mediation Model ◽  
Path Analyses ◽  
The Impact ◽  
The Relationship

PurposeAs an essential personality charm of leaders, humor can bring a series of positive outcomes to both users and receivers. However, there is also evidence that the impact of leaders’ humor (LH) is constrained by individuals, teams and organizational factors. The aim of this research is to investigate the relationship between LH and subordinates’ service creativity. Based on social learning theory and previous literature on LH, this paper identifies role modeling as the mediator and suggests that subordinates’ sensitivity to favorable interpersonal treatment (SFIT) moderates these relationships.Design/methodology/approachIn order to test the proposed moderated mediation model, this study employed hierarchical multiple regression and path analyses with valid data of 348 samples.FindingsResults revealed that LH positively affects role modeling and service creativity of subordinates, while subordinates' SFIT positively moderates the relationship between LH and subordinates' service creativity via role modeling.Practical implicationsIn compliance with these findings, this research suggests that enterprises should pay attention to the role of humor from middle managers and strengthen managers' role modeling through multiple measures to establish a relaxed and harmonious atmosphere in the workplace.Originality/valueBuilt on the conceptual framework, this study contributes to the literature on LH and employees’ service creativity by treating role modeling as the mechanism and SFIT as the moderator. This research is one of the first few empirical studies to investigate the relationship between LH and service creativity of service personnel in the service industry.

Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  
Keyword(s):  
Longitudinal Study ◽  
Firm Performance ◽  
Structural Equation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Significant Relationships ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.

An empirical investigation on the impact of capital structure on firm performance: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ayaz ◽  
Shafie Mohamed Zabri ◽  
Kamilah Ahmad
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Optimal Level ◽  
Agency Cost ◽  
Superior Performance ◽  
Initial Attempt ◽  
Content Type ◽  
Leverage Ratio ◽  
The Impact

PurposeThe purpose of this study is to examine the relationships between leverage and firm’s performance in Malaysia by framing the relationship under the tradeoff theory and agency cost theory.Design/methodology/approachBased on insights drawn from the existing literature, we opted for fixed effects and system two-steps GMM models to establish the hypothesized relationship between leverage and performance. We analyzed 528 nonfinancial firms listed on the Bursa Malaysia Stock exchange for the period of 12 years (2005–2016).FindingsThe outcomes show that the leverage ratio improves the firm performance, consistent with leverage serving as an effective strategy in constraining managers from building their personal empire, revealing a proportionately greater benefit for Malaysian firms than the cost to debt financing. The authors also find that a positive relationship between leverage and firm performance switch to the negative when the level of leverage reaches beyond the optimal level. Consequently, switching from positive to negative indicates that debt has a twofold (nonlinear) impact on firm performance.Practical implicationsOur research provides several implications to potential stakeholders. For investors, firms having lower leverage ratios could achieve superior performance, thus investing in corporations pursuing higher performance. Managers should therefore strive for achieving higher performance to meet the needs of investors and shareholders. From the researcher’s perspective, our research suggests the need to go away from the searching linear association between leverage and firm performance and the relevance of nonlinear correlation. Moreover, our research can help managers to understand how their lender relates to their debt to assets ratios. Thus, they can design an optimal level of leverage that not only improves the firm’s performance but also reduce the associated costs.Originality/valueTo the best of the author’s knowledge, this is the initial attempt in the context of Malaysia that documents evidence indicating that the lower leverage is likely to create value for shareholders while a higher debt ratio reduces firm profitability.

scholarly journals Regional Characteristics and Effects of Inward Fdi: the Case of Ukraine

2012 ◽  
Vol 3 (2) ◽  
pp. 91-118 ◽  
Author(s):  
Ari Kokko ◽  
Victoria Kravtsova
Keyword(s):  
Negative Impact ◽  
National Level ◽  
Local Environment ◽  
Spillover Effects ◽  
Productivity Change ◽  
Host Countries ◽  
Institutional Differences ◽  
Western Ukraine ◽  
The Impact ◽  
Local Firms

This paper contributes to the analysis of the impact of FDI on host countries by taking into account the regional dimension of spillover effects. Focusing on the case of Ukraine, we explore the effects of inward FDI on changes in productivity, technology, and efficiency in local firms. For the country as a whole, the results suggest that the presence of foreign-owned firms had a negative impact on productivity change in local firms during the period 1999-2003. However, there were notable differences between the effects in the western and eastern parts of the country: the overall findings were mainly driven by the development in western Ukraine, whereas inward FDI in eastern Ukraine did not seem to have any impact on local productivity growth and technical change. These results arguably reflect deep economic and institutional differences between the two parts of Ukraine, which have led to differences in the character of incoming FDI and differences in the ability of local firms to benefit from FDI. The conclusion is that the impact of FDI on the host economy may vary even at the sub-national level, depending on the specific local environment.

Diversity in boardrooms and firm performance: The role of tenure and educational level of board members

2021 ◽  
Vol 17 (3) ◽  
pp. 31-41
Author(s):  
Barbara Sveva Magnanelli ◽  
Giulia Paolucci ◽  
Luca Pirolo
Keyword(s):  
Firm Performance ◽  
Educational Level ◽  
Empirical Studies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
European Area ◽  
The Impact ◽  
Positive Effect ◽  
Educational Diversity

Diversity on corporate boards has been studied from different perspectives in recent decades. The present study aims at investigating the impact on firm performance of two demographic diversity traits in boardrooms: tenure and educational diversity. The extant literature does not provide aligned findings on this topic, thus further research is still needed. The authors hypothesize that both tenure and educational diversity of board members have a positive effect on firm performance. To measure firm performance two dependent variables are used, applying two models for each hypothesis investigated Tobin’s Q and return on assets. The study is conducted using sample data of 187 listed firms within the European area, covering a 9-year period, from 2010 to 2018. Diversity dimensions are measured through indexes constructed on the basis of the mix among the directors in terms of educational level and tenure. The outcomes highlight a significant and positive relationship between tenure diversity on corporate boards and firm performance. In terms of the impact of educational diversity, no evidence indicating a positive effect on firm performance is found. The research carried out is unique because it considers two personal attributes of diversity calculating diversity indexes and measuring their impact on the firm’s performance. The econometric approach used has not been extensively applied in previous research. In fact, the majority of previous empirical studies have measured diversity through percentages or dummy variables, depending on the type of diversity aspect being analyzed, and then used it as the independent variable.

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

2020 ◽  
Vol 36 (4) ◽  
pp. 531-561
Author(s):  
Tamer Mohamed Shahwan ◽  
Mohamed Mahmoud Fathalla
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Corporate Performance ◽  
Superior Performance ◽  
Operating Efficiency ◽  
Efficiency Ratio ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the impact of intellectual capital (IC) as a mediator variable on the association between corporate governance (CG) practices and firm performance. This study also examines bi-causality linkages between these variables. Design/methodology/approach The designated corporate governance index and the value-added intellectual coefficient method were used to assess the level of CG practices and the performance of IC. Tobin’s Q (TQ) and operating efficiency ratio were used to measure firm performance. Findings The aggregate CG score has a significant positive impact on the IC and the two measures of firm performance. However, the IC has only a partial mediation effect on the relationship between the aggregate corporate governance score and a firm’s operational efficiency ratio. The IC has partial and full mediation effects in the relationship between the sub-dimensions of corporate governance and the performance of Egyptian corporates. Moreover, a bi-causality relationship can be observed between CG and TQ. Research limitations/implications Generalizing the obtained results would require the sample size to be extended. Practical implications The findings should alert legislative institutions and practitioners of the need to comply with good CG practices and develop the efficiency of IC to elicit a firm’s superior performance. Originality/value This study is one of the first attempts to investigate the causality relationships and the mediation impact of IC on the relationship between CG practices and corporate performance in the Egyptian context.

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