scholarly journals Effectiveness of Employee Participation in the Capital of their Enterprise: Russian and International Experience

2021 ◽  
Vol 18 (1) ◽  
pp. 48-55
Author(s):  
O. N. Buchinskaya ◽  
Keyword(s):  
Financial Performance ◽  
Positive Impact ◽  
Employee Participation ◽  
Developed Countries ◽  
Employee Ownership ◽  
International Studies ◽  
Public Enterprises ◽  
Research Results ◽  
Collective Ownership ◽  
The Impact

The use of employee participation in the ownership of enterprises has become widely spread since the second half of the twentieth century. Alongside the development of various forms of employee participation in property, there have been ongoing theoretical debates about the effectiveness of these forms, for instance, whether employee property is a reliable method to increase the efficiency of a capitalist enterprise or just an attempt to implement elements of the socialist doctrine. The study aims to analyze the international perspective on employees’ equity participation in property, in particular the focus is made on the world’s most common ESOP plan. The methodological framework is based on international studies discuss-ing the impact of ESOP plans on the economic and financial performance of enterprises. These studies deal with the experience of developed countries as well as developing countries, from China to Cameroon. The positive impact of employee property on increasing the productivity of the enterprise is shown. In terms of financial indicators, the research results are inconsistent. In general, there is a weak positive, mainly indirect impact of partial ownership of employees on the financial performance of their enterprises. Moreover, in developed countries the effectiveness of ESOP is higher than in developing ones.The authors draw conclusion on unsatisfactory state of Russian enterprises with employee ownership which is reflected in steady decline in quantity of Russian public enterprises. The study includes explanation of reduction in the number of public enterprises, and recommendations for their organizational and legal type reform in order to improve the effectiveness in appli-cation of collective ownership in Russian conditions.The research results are used to give recommendations for improvement of the efficiency of shared employee ownership in Russia. It is shown that the concept of collective ownership in Russia should be reconsidered and the new types of employee par-ticipation in enterprise ownership should be based on protected minority corporatization.

Is ISO14001 certification of the corporate effective?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaoguo Zhang ◽  
Chi Zhang ◽  
Danting Cao
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Moderating Effect ◽  
Institutional Pressures ◽  
Corporate Environmental Performance ◽  
Positive Role ◽  
Content Type ◽  
The Impact

Purpose At present, the number of corporates certified by ISO14001 in China is ranked first in the world. This paper aims to explore the effectiveness of ISO14001 certification and the moderating effect of financial performance and external institutional pressures on the effectiveness. Design/methodology/approach This paper selects Shenzhen and Shanghai A-share listed companies in the heavy polluting industry from 2010 to 2017 as the research sample, and studies the impact of ISO14001 certification on corporate environmental performance and the moderating effect of financial performance and external institutional pressures. Findings This paper finds that ISO14001 certification has a positive impact on corporate environmental performance; corporate financial performance has a positive moderating effect in the relationship between ISO14001 certification and corporate environmental performance; government regulation, industry competition and media supervision also have positive moderating effects; and corporate environmental information disclosure has not yet had a positive moderating effect. Originality/value Most of the current empirical research on this topic are carried out in the context of developed countries, and lack empirical evidence from developing countries. This paper will help to make up for this deficiency. In addition, this paper will help explain why the effectiveness of ISO14001 certification generates variation in different corporates and under what conditions it will play a positive role.

Modeling the Impact of Corporate Risk Management on Firms’ Financial Performance and Sustainable Growth

2022 ◽  
Vol 40 (1) ◽  
Author(s):  
Tanveer Bagh ◽  
Mirza Muhammad Naseer ◽  
Muhammad Asif Khan
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Business Environment ◽  
Sustainable Growth ◽  
Global Business ◽  
Corporate Risk Management ◽  
Corporate Risk ◽  
The Impact

Growing complexities in the indigence and global business environment, the demand for Corporate Risk Management (CRM) has fostered greatly. Equally, Financial Performance (FP) and Sustainable Growth Rate (SGR) are believed to be vital parameters for assessing any organisation's success. Both FP and SGR are get affected by different risks. Therefore, to the best of our knowledge, this paper is the first endeavour meant to empirically shed light on the Impact of CRM on a firm’s FP and SGR. By taking a sample of 160 listed Non-Financial firms from emerging and developed Countries stocks markets, on the bases of market capitalization, covering a period of 12 years (2007-2018). The CRM index has been constructed by using the Principal Component Analysis technique. Panel data fixed-effect Model applied on the bases of Hausman test. The results articulated that CRM has a significant and positive impact on ROE and SGR in the context of both cases. In contrast, inflation negatively relates to both scenarios, but the size and Gross Domestic Product (GDP) have a positive and significant relationship with ROE and SGR. However, in Pakistan's case, Size and GDP have articulated adverse effect on ROE and SGR.

Research on the Impact of Information Security Certification and Concealment onFinancial Performance

2022 ◽  
Vol 30 (3) ◽  
pp. 0-0
Keyword(s):  
Information Security ◽  
Financial Performance ◽  
Positive Impact ◽  
Rapid Development ◽  
International Standards ◽  
Corporate Decisions ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Iso 27001

With the rapid development of information technology, information security has been gaining attention. The International Organization for Standardization (ISO) has issued international standards and technical reports related to information security, which are gradually being adopted by enterprises. This study analyzes the relationship between information security certification (ISO 27001) and corporate financial performance using data from Chinese publicly listed companies. The study focusses on the impact of corporate decisions such as whether to obtain certification, how long to hold certification, and whether to publicize information regarding certification. The results show that there is a positive correlation between ISO 27001 and financial performance. Moreover, the positive impact of ISO 27001 on financial performance gradually increases with time. In addition, choosing not to publicize ISO 27001 certification can negatively affect enterprise performance.

The impact of within-industry diversification on firm performance

2018 ◽  
Vol 13 (6) ◽  
pp. 1475-1501 ◽  
Author(s):  
Varaporn Pangboonyanon ◽  
Kiattichai Kalasin
Keyword(s):  
Financial Performance ◽  
Positive Impact ◽  
Labor Costs ◽  
Institutional Perspective ◽  
Product Lines ◽  
Content Type ◽  
Linear Pattern ◽  
Coordination Costs ◽  
Industry Diversification ◽  
The Impact

Purpose The purpose of this paper is to investigate how within-industry diversification affects the financial performance of small- and medium-sized enterprises (SMEs) in emerging markets (EMs). The authors draw on both the resource-based view and the institutional perspective and argue that within-industry diversification can enhance the financial performance of SMEs in EMs. Due to institutional voids in emerging economies, SMEs can gain additional benefits from scope economies, as well as from market returns, by filling product market voids and gaps in business ecosystems, while also enjoying low input and labor costs that reduce the coordination costs of diversification. This, in turn, enhances benefits of within-industry diversification, thereby resulting in higher financial profitability. Design/methodology/approach This study employs panel data econometrics to estimate the model. The authors test hypotheses on 195 firms, originating from five countries in Southeast Asia, during the period of 2009–2014. Findings The empirical results support the arguments. Within-industry diversification has a positive impact on the performance of SMEs in EMs. These effects become weaker when the institutional contexts are more developed. Nevertheless, such effects become stronger when SMEs in EMs are more efficient. Research limitations/implications The relationship between within-industry diversification and performance is a positive linear pattern, which differs from the pattern in advanced economies. In addition to unrelated diversification, the related diversification is preferable for firms in EMs. Practical implications The paper provides implications for SMEs that aim to enhance their performance by engaging in single product lines and within-industry diversification. Originality/value This paper examines the different ways within-industry diversification can enhance SMEs performance in EM contexts.

scholarly journals The Impact of Information Communication and Technology Utilization on the Financial Performance of Microfinance Institutions in Rwanda Case Study: Reseau Interdiocesain De Microfinance (Rim) Ltd, Rwanda (2011 -2015)

2017 ◽  
Vol 4 (2) ◽  
pp. 13
Author(s):  
Jean Bosco Harelimana
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Positive Impact ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Information Communication ◽  
Qualitative And Quantitative Methods ◽  
Descriptive Survey ◽  
The Impact

The study analyzed the impact of ICT utilization on the financial performance of microfinance institutions inRwanda with case study of Réseau Interdiocesain de microfinance (RIM) Ltd undertaken within 5 years (2011-2015). The study adopted the use of descriptive survey using both qualitative and quantitative methods for a totalsample size of 132. Purporsive and simple random simpling was used for this purpose. Primary and Secondary datawere collected and thene analyzed using SPSS version 16.00. The study found that ICT has been introduced and usedabout 5 years and above. The study found that ICT impact firstly on financial sustainability and profitability (65.8%),secondly on financial efficiency and productivity (23.7) and finally on portfolio quality (5.3%). ICT utilization havea high influence to the RIM Ltd.’s financial performance compared to the previous situation.The correlation results imply that ICT usage has a positive impact on financial sustainability and profitability as theymove in the same direction (R=0.502). The strength of the impact was found to be low due to the low investments inICT among microfinance institutions.

scholarly journals The Impact of Innovation Strategy on the Financial, Social and Environmental Performance

2021 ◽  
Vol 1 (1) ◽  
pp. 33-39
Author(s):  
Hamid Saremi ◽  
Masoud Mahmoudi ◽  
Mojtaba Soltaninezhad ◽  
Mohammad Hosseinpour
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Social Performance ◽  
Point Of View ◽  
Innovation Strategy ◽  
Management Tools ◽  
Social And Environmental Performance ◽  
The Impact

The core purpose of this study is to investigate the effect of innovation strategy on financial, social and environmental performance of companies listed on the Tehran Stock Exchange (TSE). The information used is from 129 companies listed on TSE in different industries between 2011 and 2018 (1032 observations). In order to analyze the data, a multivariate regression test was used. The results showed a positive and significant relationship between innovation strategy on financial performance and environmental performance. Also, the relationship between innovation strategy and social performance has a positive but insignificant. Innovation tools are also among the few management tools that can have a positive impact on both financial performance and the company's environmental performance. In this research, an attempt has been made to look at the idea of innovation from a financial point of view, and its results in the long run indicate the right choice of management to invest in the company's research and development unit.

scholarly journals Impact of the Ownership Structure on the Financial Performance of Banks: Comparative Study between Conventional and Islamic Banks

2019 ◽  
Vol 4 (2) ◽  
pp. 50-63
Author(s):  
Achraf Haddad ◽  
Anis El Ammari ◽  
Abdelfattah Bouri
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Least Squares Method ◽  
Conflicts Of Interest ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Performance Measure ◽  
Islamic Banks ◽  
Two Samples ◽  
The Impact

According to the literature of corporate governance, ownership structure is advanced as a non-dissociable mechanism of control intended to follow the stakeholders and especially used by shareholders to monitor the conflicts of interest and the opportunistic behavior of managers. Several previous studies have focused on the impact of ownership structure on financial performance separately in conventional or in Islamic banks. However, the comparative studies between these two impacts are non-existent. In this research, we compared the impacts of this governance mechanism on the financial performance in the two types of banks by using the Ordinary Least Squares method. Data relating to financial performance and ownership structure of banks come from 16 countries. Two samples were collected: the first one included 63 conventional banks, whereas the second one integrated 63 Islamic banks whose data are available over the period (2010-2018). Panel results showed that partial effect of each determinant of ownership structure on each measure of financial performance varied from one banks’ type to another and from one performance measure to another. Besides, the reconciliation of similar models revealed many differences between the same impacts’ signs. Therefore, we concluded that in both banks’ types the ownership structure has a positive impact on the financial performance. While, the negative part of the same impact is less significant in Islamic banks. JEL Classification:  F33, G20, G21, G24, G30.

scholarly journals The effect of business strategies on financial performance – An applied study on Saudi joint stock companies –: أثر استراتيجيات الأعمال على الأداء المالي – دراسة تطبيقية على الشركات المساهمة السعودية –

2021 ◽  
Vol 5 (17) ◽  
pp. 166-146
Author(s):  
Tariq Hassan Alzahran Tariq Hassan Alzahran
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Business Strategies ◽  
Survey Method ◽  
Financial Reports ◽  
Differentiation Strategy ◽  
Industrial Companies ◽  
Comprehensive Survey ◽  
The Impact

The study aimed to identify the impact of business strategies on financial performance in Saudi joint stock companies, and used the descriptive analytical method, and the study community is of all the industrial companies listed on the Saudi capital market and the 81 companies, and the sample of the study became after excluding companies whose data are not available during the study period (73) companies. Corporate financial reports were collected from 2010 to 2019, and the data was analysed using Panel data, based on the statistical method represented in the Multi- Regression. The comprehensive survey method of industrial companies in Saudi Arabia was used, and the study found that there was no impact of the product differentiation strategy on the financial performance of Saudi industrial companies, and that there was no impact of the cost leadership strategy on the financial performance of Saudi industrial companies. The size of the company also has a positive impact on the rate of return on ownership, leverage negatively affects financial performance, and the company's life has a negative impact on financial performance. The study recommends future studies to increase the size of the sample and study all Saudi companies to ascertain the impact of business strategies on the performance of companies, and recommended companies to reduce indebtedness and leverage, so that the strategies provided by serving companies in raising financial performance, and working on the application of strategies in a scientific manner so that they have a positive impact on the performance of companies.

The Impact of Strategy And Structure On The Organizational Performance of Restaurant Firms

1988 ◽  
Vol 12 (2) ◽  
pp. 265-276 ◽  
Author(s):  
Eliza Ching-Yick Tse ◽  
Michael D. Olsen
Keyword(s):  
Organizational Structure ◽  
Financial Performance ◽  
Organizational Performance ◽  
Positive Impact ◽  
Strategy Implementation ◽  
Management Literature ◽  
Primary Means ◽  
Restaurant Firms ◽  
And Performance ◽  
The Impact

There is an increased emphasis in the management literature on the use of strategic management as the primary means of adapting organizations to their changing environments. for firms in the maturing hospitality industry to survive and succeed, they will have to depend upon their ability to strategically align themselves with the turbulent environment and select appropriate strategies to create defendable competitive positions. Success in strategy implementation depends partly on a proper match between strategy and organizational structure and this match is expected to have a positive impact on financial performance. This study was conducted to explore the relationships among strategies of restaurant firms, their organizational structure and financial performance. The top management team in 296 American multi-unit restaurant firms were surveyed. Results regarding relationships posited among strategy, structure and performance are presented.

The bright and dark sides of green customer integration (GCI): evidence from Chinese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taiwen Feng ◽  
Hongyan Sheng ◽  
Minghui Li
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Positive Impact ◽  
Resource Dependence Theory ◽  
Dark Side ◽  
Opportunistic Behavior ◽  
Moderating Effects ◽  
Customer Integration ◽  
Content Type ◽  
The Impact

PurposeBased on resource dependence theory and transaction cost economics this study explores how green customer integration (GCI) affects financial performance via information sharing and opportunistic behavior, and the moderating effects of dependence and trust.Design/methodology/approachThis study develops a theoretical model and tests it using data from two-waved survey data of 206 Chinese manufacturers. The hypotheses were tested using hierarchical linear regression analysis.FindingsThe results show that GCI has a significant and positive impact on information sharing, but its impact on opportunistic behavior is insignificant. Notably, information sharing has a significant and positive impact on financial performance, while opportunistic behavior has an insignificant impact on financial performance. In addition, dependence negatively moderates the impact of GCI on information sharing and positively moderates the impact of GCI on opportunistic behavior. Trust negatively moderates the impact of GCI on opportunistic behavior.Originality/valueAlthough GCI has received widespread attention, how it affects a firm's performance remains unclear. Most previous studies have focused only on its bright side and ignored its dark side. This study highlights how GCI affects financial performance through information sharing and opportunistic behavior, and the moderating effects of dependence and trust. This enriches the understanding of how and under what conditions GCI affects a firm's performance.

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