scholarly journals Mission statements of Latin-American firms: content analysis, readability, and their effect on financial performance

2018 ◽  
Author(s):  
Julián David Cortés-Sánchez ◽  
Liliana Rivera
Keyword(s):  
Content Analysis ◽  
Quantitative Analysis ◽  
Financial Performance ◽  
Latin American ◽  
Positive Impact ◽  
Mission Statements ◽  
Return On Equity ◽  
Managerial Practices ◽  
Key Terms ◽  
The Relationship

Mission statements (MSs) are one of the most widespread managerial practices. However, a deeper understanding of the relationship between MS characteristics and a firm’s financial performance is needed. This study proposes a qualitative and quantitative analysis of MS characteristics (i.e., key words and readability) for Latin-American firms and their relationship to financial performance. MS content is evaluated using content analysis software, and the relationship between MS readability and financial performance is examined using regression analysis. The results of the content analysis suggest differences among industries and an international trend toward isomorphism regarding key terms. The results of the quantitative analysis revealed a positive relationship between MS readability and return on assets and return on equity. These results suggest a positive impact of the MS on a company’s long-term financial performance, highlighting the importance of having a readable MS.

scholarly journals MISSION STATEMENTS AND FINANCIAL PERFORMANCE IN LATIN-AMERICAN FIRMS

2019 ◽  
Vol 20 (0) ◽  
pp. 270-283 ◽  
Author(s):  
Julián David Cortés-Sánchez ◽  
Liliana Rivera
Keyword(s):  
Content Analysis ◽  
Quantitative Analysis ◽  
Financial Performance ◽  
Latin American ◽  
Mission Statements ◽  
Return On Equity ◽  
Managerial Practices ◽  
International Convergence ◽  
Key Terms ◽  
The Relationship

Mission statements (MSs) are one of the most widespread managerial practices. However, a deeper understanding of the relationship between MS’s characteristics and firms’ financial performance is still necessary. The vast majority of the research on this topic has been performed on companies of the global north, rather than global south. The present study addresses this literature gap through a qualitative and quantitative analysis of MS characteristics (i.e., keywords and readability) for Latin-American firms and their relationship to financial performance. The content analysis of the MS was conducted using Voyant Tools, the MS readability was measured through six readability indices (i.e., FI, FKRE, FKGL, SMOG, CL and ARI) and the relationship between MS readability and financial performance was determined using regression analysis (i.e., OLS). The results of the content analysis suggest differences among industries and an international convergence toward isomorphism regarding key terms. The results of the quantitative analysis revealed a positive relationship between MS readability and return on assets (ROA) and return on equity (ROE). These results suggest a positive relation of the MS on a company’s long-term financial performance, highlighting the importance of having a readable MS.

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.

scholarly journals Impact of Non-Interest Income on Financial Performance of Joint Venture Banks in Nepal

2018 ◽  
Vol 3 (2) ◽  
pp. 107-124
Author(s):  
Ajay Kumar Shah ◽  
Niraj Agarwal ◽  
Ram Kumar Phuyal
Keyword(s):  
Financial Performance ◽  
Joint Venture ◽  
Return On Assets ◽  
Return On Equity ◽  
Letter Of Credit ◽  
Service Charge ◽  
Interest Income ◽  
Guarantee Income ◽  
Result Analysis ◽  
The Relationship

 The research was conducted to identify the non-interest income variables that will likely affect the financial performance of the joint venture banks of Nepal. The main objective of the study is to analyze the prominence of non-interest income and its effect on financial performance of joint venture banks in Nepal. This study will help the banks to identify other sources of income of the bank and try to look at its impact on the overall profitability and risk intention. To measure the financial performance, the indicator of profitability i.e. returns on assets and return on equity are taken into consideration for the study as a dependent variable and assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee as an independent variable. Both descriptive and inferential analyses were performed to capture the relationship. From the result analysis, it is observed that the non-interest income variables that would affect the financial performance of the joint venture banks. It is observed that not all variables have equal effect on the profitability as measure of financial performance, for joint ventures the factors like assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee have a significant relationship with the measure of financial performance that is return on assets and return on equity. Apart from the interest income, there are lot of non-interest variables which leads to profitability so the banks looking to increase its profitability with lesser risk need to take these variables into consideration. Results indicate that banks need to keep the non-interest income variables into consideration at times for improving the financial performance of the joint venture banks.

Mission statements exposed

2003 ◽  
Vol 15 (5) ◽  
pp. 255-262 ◽  
Author(s):  
Tahir Sufi ◽  
Howard Lyons
Keyword(s):  
Performance Indicators ◽  
Hospitality Industry ◽  
Corporate Strategy ◽  
Mission Statements ◽  
Financial Success ◽  
Return On Equity ◽  
Net Profit ◽  
Management Literature ◽  
The Relationship ◽  
Annual Turnover

In the strategic management literature mission statements are said to be an inseparable part of corporate strategy. It has been argued that they have an impact on the performance of the organization, yet the evidence is unclear. This study is an investigation into the relationship between the financial success of hospitality enterprises and their mission statements. Mission statements of 30 top hospitality enterprises were evaluated. This sample is of significance as it represents some of the largest corporations, and about 200 of the largest brands in the hospitality industry. The mission statements were scored and these scores were tested for correlation with three financial performance indicators. The results indicated that while there was a statistically significant correlation between the mission statements and the annual turnover, there was no significant correlation with the net profit margin or the return on equity. The article concludes by considering how firms may improve their performance by better managing their mission statements.

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

scholarly journals Impacto del gobierno corporativo en el valor de las empresas latinoamericanas: evidencia desde el MILA

2021 ◽  
Vol 12 (26) ◽  
pp. 73-82
Author(s):  
Sandra Milena Torres-Cano ◽  
Diego Andrés Correa-Mejía
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Financial Performance ◽  
Latin American ◽  
Data Model ◽  
Financial Statements ◽  
Panel Data Model ◽  
Performance Variables ◽  
The Impact ◽  
The Relationship

Corporate Governance is a mechanism that seeks to strengthen the control bodies and their efforts, by combining principles and techniques to invigorate the value of companies and generate confidence in investors and all Stakeholders. This research seeks to analyze the impact of corporate governance on the values of companies that belong to the Latin American Integrated Market (MILA). The financial statements of the 97 companies from the years 2012 to 2018 were analyzed using a statistical panel data model to establish the relationship between the corporate governance variables and the financial performance variables. Lastly, it is concluded that non-economic mechanisms such as the implementation of adequate control policies positively influence the value of companies and generate support for investors.

scholarly journals Ownership Concentration and Economic and Financial Performance in Latin-American Companies

2018 ◽  
Vol 4 (4) ◽  
pp. 1
Author(s):  
Tarcísio Pedro da Silva ◽  
Maurício Leite ◽  
Jaqueline Carla Guse ◽  
Tania Cristina Chiarello
Keyword(s):  
Financial Performance ◽  
Latin American ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
American Depository Receipts ◽  
Publicly Traded ◽  
Linear Combinations ◽  
Depository Receipts ◽  
Relationship Of ◽  
The Relationship

The study examined the relationship of ownership concentration in the economic and financial performance of publicly traded Latin American companies possessing American Depository Receipts (ADRs). Generally, the capital structure decisions are tied directly to the results of the organizations, thus reflecting the economic and financial performance. The correlation between the set of variables within the group of ownership structure with the group of economic and financial performance showed significant correlation with the linear combinations, when analyzed in the set of all the samples of companies and taken separately by country. However, the results did not show similar correlation to Venezuela, Colombia and Peru due to the existence of few observations. The results also portrayed a significant correlation within economic and financial performance, higher to Mexican companies, when compared with the results of other countries and among the set of the two groups of variables that highlighted the analysis by ownership structure and economic and financial performance as well.

scholarly journals Financial Performance of Cement Industry in India Using Extended Dupont Approach

2018 ◽  
Vol 7 (2) ◽  
pp. 16-20
Author(s):  
K. T. Gopi
Keyword(s):  
Financial Performance ◽  
Cement Industry ◽  
Return On Equity ◽  
Coefficient Of Correlation ◽  
Economic Decisions ◽  
Five Factors ◽  
Asset Turnover ◽  
Tax Efficiency ◽  
The Relationship

The present study attempts to evaluate the financial performance of cement industry in India by choosing three leading cement companies like ACC, Gujarat Ambuja and UltraTech cement for the period 2006-2015 by using the extended DuPont approach. The extended DuPont approach has emphasized on analysis of Return on Equity (ROE) which disaggregates performance into five components: pre-interest/pretax margin, asset turnover, interest burden, tax efficiency and the equity multiplier. In the present study, we employed a two-step methodology: first, used extended DuPont approach to calculate return on equity of three companies and coefficient of correlation has been used to determine the relationship between the five components and return on equity. The results shows that return on equity of all three leading cement companies have declined drastically during 2006-2015. In the tough phase of cement industry all three leading companies have exhibited more or less similar financial performance during the study period. The contribution of five factors towards ROE is more or less similar among companies. The extended DuPont approach that we made for three leading cement companies in India emphasized on calculation of ROE is not relevant at all situations for taking rational economic decisions. In order to increase the rate of taking better economic decisions the results of extended DuPont approach can be compared across companies within an industry, between industries, or within a firm itself.

scholarly journals Human Capital Efficiency and Financial Performance: Empirical Evidence of Malaysian Public Companies.

2018 ◽  
pp. 878-884
Author(s):  
Azlina Rahim ◽  
Amrizah Kamaluddin ◽  
Ruhaya Atan
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Value Added ◽  
Annual Reports ◽  
Public Companies ◽  
Accounting Data ◽  
Return On Equity ◽  
Capital Efficiency ◽  
Financial Performance Measures ◽  
The Relationship

The purpose of this study is to investigate empirically the relationship between human capital efficiency and financial performance of Malaysian public companies. Using accounting data, this study reviewed the annual reports of Malaysian companies for a period of thirteen years from 2000 to 2012. The study applied Value Added Intellectual Coefficient (VAICTM) methodology developed by Ante Pulic to determine the human capital efficiency of a company. The regression models was construct to examine the relationship between human capital efficiency and financial performance measures including return on assets (ROA) and return on equity (ROE).The results revealed that human capital efficiency has significant and positive relationships with financial performance. The human capital efficiency is seen as a value driver for a company’s competitiveness. Hence, the findings of this study should help companies’ managers to make better decision pertaining to investment of their strategic asset that is human capital.

scholarly journals The Effects of Green Banking Practices on Financial Performance of Listed Banking Companies in Bangladesh

2020 ◽  
pp. 120-128
Keyword(s):  
Financial Performance ◽  
Financial Incentive ◽  
Vital Role ◽  
Data Set ◽  
Asset Return ◽  
Return On Equity ◽  
Financial Variables ◽  
Green Finance ◽  
Operational Activities ◽  
The Relationship

This study examines the effects of green banking practices on the financial performance of banks listed in the DSE of Bangladesh covering the period from 2011 to 2020. To move the economy on a sustainable path green banking practices is essential. Green banking practice is a way of contributing environmental and economical performance in the community by providing green finance and initiating green costs in its various sectors, it takes an important part to raise an organization’s financial performance through diminishing costs. Green banking is becoming a key issue in the whole world especially in developing countries like Bangladesh. This has been theorized by economists that there is a financial incentive if there is a number of practice in green banking. In this arena, a proactive role can be played by banks besides its operational activities known as the journey of renovation for a greener economy by participating in green finance. The aim of this study is to empirically find the relationship between green banking practices and banks' financial performance by using the panel data set, taking financial variables like return on asset, return on equity, and market value to proxy the banks’ performance, and employing green banking practice variables like green cost and volume of the risk management committee. Finally, this study finds that there is a positive relationship between green banking practices and financial performance. The findings generated from this study can be a proper guideline for the bank regulators to take effective decisions regarding environmental issues and thereby make a social contribution, and after all, play a vital role in economic growth. The practitioners, governments, decision-makers, academicians, and future researchers can use this study as a policy dialog.

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