scholarly journals Impact of Corporate Reputation on Firm Risk: An Analysis of Pakistan Stock Exchange Listed and PACRA Rated Firms

2019 ◽  
Vol 5 (2) ◽  
pp. 365-372
Author(s):  
Allah Bakhsh ◽  
Muhammad Hanif Akhtar ◽  
Adeel Akhtar
Keyword(s):  
Corporate Reputation ◽  
Credit Rating ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Total Risk ◽  
Firm Risk ◽  
Credit Rating Agency ◽  
Time Period ◽  
Significant Negative Relationship ◽  
The Impact

This study has examined the impact of corporate reputation on risk exposure of the firms listed at Pakistan Stock Exchange (PSX) and rated by Pakistan Credit Rating Agency (PACRA). It has employed firm’s credit ratings as a proxy for corporate reputation. It has covered the time period from 2007-2016 and unbalanced and undated panel regression analysis has been carried out to observe the significance of the relationship among corporate reputation and the firm risk i.e. total risk and its parts (systematic and unsystematic risk). It has been found that corporate reputation has a significant negative relationship with total risk and systematic risk of the firm. It is however found that corporate reputation is insignificant in explaining the unsystematic risk of the firms. Leverage and profitability (the control variables) are also found significant in explaining the risk exposures of the firms.

scholarly journals Cost Control and Profitability of Selected Manufacturing Companies in Nigeria

2019 ◽  
Vol 2 (1) ◽  
pp. 14-33
Author(s):  
Godwin Emmanuel Oyedokun ◽  
Amos Olafusi TOMOMEWO ◽  
Sunday Ajao OWOLABI
Keyword(s):  
Cost Control ◽  
Raw Materials ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Sampling Technique ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Significant Negative Relationship ◽  
The Cost ◽  
The Impact

Profitability in manufacturing companies in Nigeria depends on the ability of the companies to grow their earnings and tame their cost profile through cost control techniques. Many manufacturing companies seem not to understand these costs and the impact they have on profitability. This study examined the effect of cost control on the profitability of selected manufacturing companies in Nigeria. The population of the study was the 78 manufacturing companies listed on the Nigeria Stock Exchange as at 31st December 2017. A sample frame of 23 companies listed on the consumer goods sector was selected out of which five companies were considered for a period of 10 years (2005 – 2017). The study adopted a judgmental sampling technique. Data were obtained from the audited financial statement, and the accounts have already validated by regulatory authorities. The study took descriptive and inferential (regression) statistics. It was found that there is a significant negative relationship between the cost of raw materials (CoRM) and profit before tax of manufacturing companies in Nigeria. The study concluded that cost control has a significant positive effect on the profitability of manufacturing companies in Nigeria for the period under review. Therefore, it is recommended adequate management and alternative sourcing of raw materials.

INTERNAL FINANCIAL CONSTRAINTS, EXTERNAL FINANCIAL CONSTRAINTS AND INVESTMENT CHOICE: EVIDENCE FROM PAKISTANI FIRMS

2012 ◽  
Vol 01 (08) ◽  
pp. 18-22
Author(s):  
Muhammad AZAM ◽  
Syed Anum SHAH
Keyword(s):  
Financial Constraints ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Dividend Payout ◽  
Listed Firms ◽  
Investment Choice ◽  
Time Period ◽  
Fixed Line ◽  
The Impact

The purpose of this study is to analyze the impact of internal and external financial constraints on investment choice. The data have been taken from 9 major sectors (52 listed firms in the Karachi Stock Exchange) namely; Pharmaceutical & Bio Technology, Textile, Sugar, Tobacco, Chemicals, Oil and Gas, Fixed line Telecommunication, Industrial metal and Mining, and Cement sectors for the time period 2004 to 2010 on annual basis. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, and investment. The empirical findings show that there is positive relationship between the firms’ size and investment while a negative relationship exists between firms’ age and investment. It also reports that there is negative relationship between dividend payout ratio and the investment. This shows that if a firm grows old or high dividend payout ratio then it will tend to spend less for expansion as compared to the young firms.

scholarly journals The Impact of Non-Audit Services on Earning Response Coefficient

2021 ◽  
Vol 9 (SPE2) ◽  
Author(s):  
Mohammad Vahdani ◽  
Javad Mohammadi Mehr
Keyword(s):  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Auditor Independence ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Significant Negative Relationship ◽  
Earnings Response ◽  
The Impact ◽  
Non Audit Services

The present study aims to investigate the impact of non-audit services on earnings response coefficient. It is a library and analytical-scientific research and is based on panel data analysis. In this study, the financial data of 74 companies accepted in Tehran Stock Exchange during the period 2011-2016 have been reviewed.The results demonstrate that non-audit services have a significant negative relationship with earnings response coefficient.Although non-audit services will have benefits such as increased financial statements understandability, auditors’ knowledge-sharing, better relationships between managers and auditors and reduced agency costs, this type of services threatens auditor independence and subsequently, earnings quality will be affected. Thus,the findings of the present study confirm the view thatby providing non-audit services, auditor independence is affected, resulting in a negative reaction to earnings.

scholarly journals Risk Management Committee Attributes and Firm Performance

2015 ◽  
Vol 2 (2) ◽  
pp. 1 ◽  
Author(s):  
Basiru Salisu Kallamu
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Market Valuation ◽  
Independent Directors ◽  
Management Committee ◽  
Significant Negative Relationship ◽  
The Impact ◽  
Risk Management Committee

We investigate the impact of risk management committee attributes on firm performance for a sample of 37 finance companies listed on the Malaysian stock exchange covering period from 2007 financial year to 2011. The result indicates that a committee composed of majority independent directors positively enhances firm market valuation and negatively affects accounting returns. Independent committee chair was found to positively enhance accounting returns while prior executive experience of directors enhances both accounting returns and market valuation of the companies. Lastly, presence of executive on RMC shows a significant negative relationship with ROA. The result supports agency theory which suggests that independent directors are in a better position to monitor the executive and protect the interest of the various stakeholders. In addition, the result suggests that regulatory agencies should consider recommending finance companies to have directors with prior executive experience to serve on risk management committee.

scholarly journals Audit Committee Characteristics and Firm Performance: Evidence from the Insurance Sector in Bahrain

2021 ◽  
Vol 11 (2) ◽  
pp. 1666-1680
Author(s):  
Dr. Mohammed Helmy Qeshta
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Insurance Companies ◽  
Firm Age ◽  
Future Studies ◽  
Insurance Sector ◽  
Significant Negative Relationship ◽  
And Performance ◽  
The Impact

This study examines the impact of the Audit Committee's characteristics on the performance of the five insurance companies listed on the Bahrain Burse over the period from 2012 to 2019. This study uses four board characteristics indicators; the size of the audit committee, independence of the audit committee, frequency of meetings of the audit committee, and expertise of the audit committee. Besides, this study takes into account two control variables, such as company size and firm age. Three-panel models used with a different dependent variable for each one were used in this study. The results of the study showed a statistically significant negative relationship between meetings of the audit committee and performance. The size of the audit committee, the independence of the audit committee and the experience of the audit committee have no significant association with the performance of the insurance companies listed on the Bahrain Stock Exchange. Alternatively, other AC features, different from those examined in this work, can be examined in future studies, such as the financial experience of its chair, the tenure of the committee and family ownership.

scholarly journals The impact of corporate diversification on firm value using entropy and Herfindel indices for the companies listed in tehran stock exchange

2017 ◽  
Vol 7 (3) ◽  
pp. 77-84 ◽  
Author(s):  
Keramatollah Heydari Rostami ◽  
Esfandiar Malekian ◽  
Yahya Kamyabi
Keyword(s):  
Linear Relationship ◽  
Firm Value ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Target Population ◽  
Corporate Diversification ◽  
Panel Analysis ◽  
Testing Model ◽  
Significant Negative Relationship ◽  
The Impact

There are a variety of different business activities. Some companies have lack of diversity but others are diversified. One of the most important parameters for evaluation for choosing company for investing is company’s value. Therefore, this article investigates the effect of diversify by both indices of entropy and Herfindel on firm value for the companies listed in Tehran Stock Exchange. The effect of diversification on firm value is tested for the period of 2006 to 2014 for 88 companies. The target population for the period for investigation is chosen by using Cochrane method and systematic elimination method. Panel analysis is used for hypothesis testing, estimating procedures and testing model assumptions. Results show that there is not significant linear and non-linear relationship between the two variables of entropy index of business diversification and firm value but there is a significant negative relationship between the two variables of Herfindel index of business diversification and firm value. Results show a U-shaped relationship between these variables and the dependent variable.

Globalization, Poverty, Environmental Degradation and Economic Growth Nexus: Empirical Analysis of SAARC Regions

2020 ◽  
Vol 39 (1) ◽  
Author(s):  
Adiqa Kiani ◽  
Ejaz Ullah ◽  
Khair Muhammad
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Empirical Analysis ◽  
Environmental Degradation ◽  
Negative Relationship ◽  
Policy Makers ◽  
Significant Negative Relationship ◽  
The Impact

The main objective of this study is to investigate the impact of poverty, globalization, and environmental degradation on economic growth in the selected SAARC countries. This study is employed panel Autoregressive Distributive Lag (ARDL) technique for empirical analysis using selected SAARC regions including India, Pakistan, Bangladesh, Nepal and Sri Lanka over the period of 1980 to 2018. Globalization impacts economic growth positively and significantly.  In addition to this the significant negative relationship is found between population and economic growth. The results show that poverty is positively related with environmental degradation. Furthermore, the results indicate that globalization is positively and significantly associated with environmental degradation in the SAARC region. Finally, the results show that urbanization is positive and significantly associated with environmental degradation, which could be the serious concerns for the policy makers to control.

scholarly journals Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach

2021 ◽  
Vol 14 (6) ◽  
pp. 257
Author(s):  
Pejman Ebrahimi ◽  
Maria Fekete-Farkas ◽  
Parisa Bouzari ◽  
Róbert Magda
Keyword(s):  
Financial Performance ◽  
Inflation Rate ◽  
Banking Sector ◽  
Stock Exchange ◽  
Screening Method ◽  
Negative Relationship ◽  
Statistical Population ◽  
Explanatory Variables ◽  
Significant Negative Relationship ◽  
Research Population

It is widely believed that the financial system is dependent on the banking industry, and its strength and development are vital for economic prosperity. This paper tried to show the financial performance of Iranian banks listed on the Tehran Stock Exchange (TSE) during 2013–2019, as the research population. The statistical population included 18 banks listed on the TSE from 2013 to 2019, which were sampled using a screening method. The results indicated a significant relationship between explanatory variables of capital ratio and the financial performance of banks in all models. However, a significant negative relationship was found between the inflation rate and the financial performance of banks in all models. Furthermore, it seems that banks with high asset strength are more profitable than the others. Regulators should guarantee that banks remain highly capitalized for a viable banking sector in Iran.

scholarly journals The impact of Working Capital Management on shareholders’ wealth and profitability: evidence from Colombo Stock Exchange

2018 ◽  
Vol 15 (2) ◽  
pp. 104-115
Author(s):  
Wasantha Perera ◽  
Pradeep Priyashantha
Keyword(s):  
Firm Size ◽  
Regression Models ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Least Square ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Holding Period ◽  
The Impact

The Working Capital Management (WCM) has an important role for the firm’s success or failure, because it directly affects the overall business health of the firm. This study examined the impact of WCM on profitability and shareholders’ wealth using 50 companies listed in different sectors on the Colombo Stock Exchange (CSE) for the period from 2010 to 2015. This sample represents 47% of the selected sectors of CSE. The profitability of the company is measured using gross operating profit (GOP) and shareholders wealth measured by Tobin’s Q (TQ) ratio. The WCM is measured using five independent variables namely stock holding period (SHP), debtors’ collection period (DCP), creditors’ settlement period (CSP), cash conversion circle (CCC) and current assets ratio (CAR). Further, three additional variables such as firm size (SIZE), leverage (LEV) and earning yield (EY) are employed as controlling variables to capture the impact of other performance of the companies.The data were analyzed using ordinary least square (OLS) and panel data regression models. These regression models reveal that there is a significant negative relationship between CCC and dependent variables (GOP & TQ). Further, this relationship has been confirmed by the major components of CCC such as SHP, DCP. Firm size also positively and significantly effects on the firm GOP while negatively effects on the TQ. Further, they revealed that there is a significant positive relationship between LEV and TQ. The study finds that the shareholders’ wealth and profitability can be increased through the efficiency of WCM.

scholarly journals Impacto dos Ratings de crédito nas ações de empresas de capital aberto no Brasil

2017 ◽  
Vol 16 (2) ◽  
pp. 573-602
Author(s):  
Rafaela Augusta Cunha Silveira ◽  
Renata Turola Takamatsu ◽  
Bruna Camargos Avelino
Keyword(s):  
Stock Prices ◽  
Credit Rating ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Final Analysis ◽  
Share Prices ◽  
New Information ◽  
Agency Issues ◽  
Study Methodology ◽  
The Impact

Resumo O rating de crédito expressa uma opinião, por intermédio de escalas, sobre a qualidade do crédito de empresas, utilizado-a como medida de avaliação de risco no mercado. Agências de classificação de risco de crédito, como a Moody’s, divulgam os ratings que atribuem às empresas. Primeiramente, essas agências emitem o new rating, que representa o primeiro rating da companhia, e, posteriormente, essa emissão pode apresentar variações, denominadas upgrades e downgrades, relativas a boas e más notícias, respectivamente. Além disso, os ratings podem ser colocados em uma Watchlist quando, em breve, pode haver uma mudança do rating para downgrade ou para upgrade. O objetivo com este estudo consistiu, diante do que foi tratado, em abordar o impacto do rating de crédito sobre os preços das ações de empresas listadas na bolsa de valores brasileira. Para alcançar o objetivo proposto, foi analisada uma amostra de 44 empresas comercializadas na BM&FBovespa e 65 ratings nacionais de longo prazo emitidos pela Moody’s entre 2000 e 2015. Utilizou-se a metodologia de estudo de eventos, com os retornos normais calculados pelo modelo de retornos ajustados ao risco e ao mercado, e o Teste-F e o Teste-T para verificar a significância dos resultados. As análises finais evidenciaram que os preços das ações não são afetados de forma significativa pelas divulgações dos new ratings, downgrades, upgrades, on watch – possible downgrades e on watch – possible upgrades em nenhuma janela do evento, indicando que os ratings, para a amostra analisada, não trazem novas informações ao mercado.Palavras-chave: Ações. Rating. Estudo de eventos. Retornos anormais. Abstract Credit ratings are used as a mean to investors get new information on the companies by reducing the information asymmetry in the market. Thus, the rating is an important mean of business information with investors, enabling share prices relating to companies react to it. Branches of credit rating as Moody's, disclose the ratings they assign to companies. First, the agency issues the new rating, which represents the company's first rating, then this issue may vary, upgrades and downgrades calls relating to good and bad news respectively. In addition, the ratings could be placed in a Watchlist when, soon there may be a change to the rating downgrade or upgrade. The purpose of this study was to discuss the impact that the credit rating has on stock prices of companies listed on the Brazilian stock exchange. For a sample of 44 companies traded on BM&FBovespa and 65 long-term national ratings issued by Moody's between 2000 and 2015, we used the event study methodology, with normal returns calculated by the model of returns adjusted for risk and market the F-Test and T-Test to test the significance of the results. The final analysis showed that stock prices are not significantly affected by the disclosures of new ratings, downgrades, upgrades, on watch – possible downgrades and on watch – possible upgrades in any event window, indicating that the ratings do not bring new information to the market.Keywords: Stocks. Rating. Event studies. Abnormal returns.

Sign in / Sign up

Export Citation Format

Share Document