Liabilities and The Impacts on Financial Performance of The Vietnamese Listed Small and Medium-Sized Enterprises

2016 ◽  
pp. 41-63 ◽  
Author(s):  
Lan Nguyen Thanh ◽  
Mai Phan Hong ◽  
Khiem Bui Ba
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Random Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Firm Age ◽  
Data Set ◽  
Financing Policy ◽  
Random Effects Models ◽  
The Relationship

This research aims to examine the relationship between liabilities and firm performance of the Vietnamese listed small and medium-sized enterprises (SMEs). We explore a panel data set of 61 listed SMEs in Vietnam from 2011 to 2014 and apply random-effects models to test whether the financing policy affects firm performance. It is found that leverage policy has a significantly positive impact on Tobin’s q and a negative impact on ROE of the listed SMEs. Moreover, nonfinancial variables including joint stock firm age and business areas of SMEs significantly influence their performances.

scholarly journals The Impact of Financial Structure Towards Performance of Non-Financial Companies Listed on Amman Stock Exchange

2021 ◽  
Vol 20 (1) ◽  
pp. 61-83
Author(s):  
Laith Fouad Alshouha ◽  
◽  
Wan Nur Syahida Wan Ismail ◽  
Mohd Zulkifli Mokhtar ◽  
Nik Mohd Norfadzilah Nik Mohd Rashid ◽  
...  
Keyword(s):  
Firm Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Financial Structure ◽  
Managerial Ownership ◽  
Data Set ◽  
Amman Stock Exchange ◽  
The Impact ◽  
The Relationship

The purpose of the current study was to investigate the relationship between financial structure towards the financial performance of companies listed on Amman stock exchange (ASE) as one of the emerging economies. This paper adopted a panel data set of 88 non-financial companies listed on the ASE over a period of 10 years from 2009 to 2018. According to empirical results that there is significant evidence to support the fact that debt repaying ability (DRAB), managerial ownership (MANOW), and foreign ownership (FOROW) are positively related to firm performance. Otherwise, the findings revealed no evidence to support the impact of the financial structure ability (FSA) towards firm performance. Moreover, the findings support the fact that firm size (SIZ) has a positive impact on firm performance of companies listed on the ASE. On the other hand, (AGE) has a negative impact on firm performance, while (GROWTH) has no impact on firm performance. The current study encourages managers to maintain a good percentage of debt repaying ability and owners to grant shares as managers’ incentives, and also to attract foreign investors. Future studies, should try applying the current study on the financial sector.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

Do Independent Directors Improve Firm Performance? Evidence from India

2020 ◽  
pp. 097215092091731
Author(s):  
Supriti Mishra
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Firm Size ◽  
Negative Impact ◽  
Negative Relationship ◽  
Independent Directors ◽  
Sample Period ◽  
Firm Age ◽  
Firm Profitability ◽  
Size Firm

With increase in the number of corporate frauds, shareholders, analysts and the general public look forward to IndDirs as the saviours who can help prevent such corporate misdoings. This study attempts to find out if having more IndDirs in the board influences firm profitability. Using panel data consisting of all listed Indian companies in the sample period of 2003–2019, it finds that proportion of IndDirs is negatively related to firm profitability. Control variables—board size, firm size (firmSize), leverage, type of industry (IndType), firm age, ownership, and year 2014—are included in the analysis. Even after arresting their confounding effects on firm performance, negative impact of proportion of IndDirs on firm performance continues. Plausible reasons for this negative relationship are offered. This study has relevance in the wake of mandatory provisions in the Companies Act, 2013 , for presence of IndDirs in the board of Indian firms.

scholarly journals Board of Directors’ Size and Firm Performance: Evidence from Non-Financial French Firms Listed on CAC 40

2020 ◽  
Vol 15 (2) ◽  
pp. 46-61
Author(s):  
Hemza Boussenna
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Board Of Directors ◽  
Random Effects ◽  
Fixed Effects ◽  
Optimal Number ◽  
Board Size ◽  
The Relationship ◽  
Positive Effect

AbstractThe study aims to investigate the relationship between board size and firm’s performance for a sample of non-financial French firms listed on the CAC 40 between 2005 and 2017. We estimated the firm’s performance using two types of metrics, the accounting-based measures (ROA and ROE) and the market-based measures (Tobin Q and MTB). By applying the panel data regressions (fixed-effects and random-effects), the findings show that there is a positive effect of board size on firm performance. In addition, our results show that the optimal number of the board size should be between 13 and 17 members in order to achieve good performance for non-financial French firms.

Influence of Family Ownership and Governance on Performance: Evidence from India

2020 ◽  
pp. 097215091988071 ◽  
Author(s):  
Aman Srivastava ◽  
Shikha Bhatia
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Positive Impact ◽  
Stock Exchange ◽  
Emerging Market ◽  
External Environment ◽  
Family Ownership ◽  
Data Set ◽  
The Relationship ◽  
Measures Of Performance

This study examines how firm performance is impacted by family ownership and governance in an emerging market. Employing a panel data set of listed companies from National Stock Exchange (NSE) of India for the period 2011–2017, this study analyses the relationship between family ownership and firm performance while controlling for variables like impact of external environment and characteristics of firms. The performance of firms is measured by accounting measures of performance and Tobin’s Q. The findings of this study suggest that family ownership and firm performance have a nonlinear relationship and family ownership has a positive impact on firm performance till a certain point and after that it starts affecting firm performance negatively. This study also finds that family involvement in governance positively affects the firm performance.

Female directors and firm performance in Italian and Spanish listed firms

2019 ◽  
Vol 32 (3) ◽  
pp. 411-436
Author(s):  
Juan Francisco Martín-Ugedo ◽  
Antonio Mínguez-Vera ◽  
Fabrizio Rossi
Keyword(s):  
Firm Performance ◽  
Cultural Values ◽  
Negative Impact ◽  
Positive Impact ◽  
Thinking Styles ◽  
Method Of Moment ◽  
Content Type ◽  
Female Directors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between women on the board of directors and firm performance in a comparative analysis between Italy and Spain. Design/methodology/approach The generalized method of moment is employed to examine this relationship in a sample of 1,393 firm-year observations. Findings The results show that the presence of women on the board has a positive impact on the performance of Italian and Spanish firms. However, when the whole sample is divided into Italy and Spain, some results are remarkable. For Spain, the presence of women on the board has a positive influence on firm performance, whereas for Italy the authors find a negative and significant effect on firm performance. This study also finds that the “masculinity” dimension has a negative impact on firm performance. Practical implications The results of this study have several practical implications. First, masculinity differences within the countries can have a large impact on firm performance and can explain some differences between similar countries. Second, the legal system of countries might not explain adequately some differences in the decision-making process. Third, cultural values and thinking styles, in terms of masculinity, might better explain why the results on the relationship between female directors and firm performance are mixed. Fourth, the findings suggest that it is very important to promote gender equality, not only by passing laws but also taking action about the educational system. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the relationship between female directors and firm performance between Italy and Spain considering the cultural differences in term of “masculinity.”

scholarly journals Analysing the Impacts of Free Cash Flow, Agency Cost and Firm Performance in Public Listed Companies in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 211-218
Author(s):  
Noraina Mazuin Sapuan ◽  
Norwazli Abdul Wahab ◽  
Muhammad Ashraf Fauzi ◽  
Aktom Omonov
Keyword(s):  
Firm Performance ◽  
Cash Flow ◽  
Negative Impact ◽  
Positive Impact ◽  
Listed Companies ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Asset Turnover ◽  
Free Cash Flow Hypothesis ◽  
The Relationship

This study intended to examine the relationship between free cash flow and agency costs towards firm performance based on the data from 350 public listed companies in Malaysia. The data was collected from year 2005 to 2015. There is a need to re-examine the free cash flow hypothesis and the agency theory based on Malaysian data as the results from previous studies shown a mix results.The findings shown free cash flow is significantly giving positive impact on firm performance. This result is contradict to free cash flow hypothesis, but it can occur due to, when the availability of investments opportunities that can be generated when firm more free cash flow that later able to increase firm performance. Meanwhile, total asset turnover has a positive impact on return on asset. However, the operating expenses ratio demonstrates that the operating expenses ratio has a negative impact on return on asset. The mix findings of agency cost are supported by previous studies.

CEO board membership: implications for firm value

2018 ◽  
Vol 30 (3) ◽  
pp. 352-370
Author(s):  
Michelle Li ◽  
Helen Roberts
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Information Transfer ◽  
Positive Impact ◽  
Board Members ◽  
Data Set ◽  
Content Type ◽  
Board Membership ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the relation between CEO board membership and firm performance. Design/methodology/approach This paper investigates the relationship between firm performance and CEO board membership, applying two-stage least squares, propensity score matching and correcting for self-selection bias across a unique sample of publicly listed New Zealand firms that demonstrate a definitive variation in CEO board membership. Findings This study finds that CEO board membership has a positive impact on firm performance, and these benefits are greater for more complex firms. Research limitations/implications Firms with CEOs independent of the board are associated with lower firm performance. The results are consistent with CEO board members providing an important information transfer mechanism to the board, resulting in an increase in average firm performance. This benefit is greater for larger firms with more business segments. Originality/value The paper tests for the impact of CEO board membership using a data set that demonstrates a definitive variation in CEO board membership.

An ambidexterity perspective toward configurations of knowledge flows: an empirical testing of its two-phase performance implications

2020 ◽  
Vol 24 (5) ◽  
pp. 1005-1035
Author(s):  
Fanghong Liu ◽  
Jiangang Wang
Keyword(s):  
Organizational Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Performance Outcomes ◽  
Knowledge Flows ◽  
Two Phase ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine how knowledge inflows and outflows interact to affect performance outcomes. Though previous studies have dealt with knowledge inflows and outflows, the quality and quantity characteristics of knowledge are often not taken into account, thus leaving a research gap with regards to the effect of their interactions on performance outcomes. Design/methodology/approach Based on Poisson regression analysis, this quantitative study fills the aforementioned research gaps by analyzing the ambidextrous configurations of knowledge flows from an ambidexterity perspective and examines their effects on two-phase performance (i.e. regular season and playoffs), using a longitudinal data set of National Basketball Association transactions from the 2003-2004 to 2014-2015 season. Findings The results suggest that the complementarity between knowledge inflows and outflows along the quality and quantity dimensions of knowledge, respectively, has a positive impact on two-phase performance, while the imbalance between knowledge inflows and outflows under the quality and quantity dimensions of knowledge, respectively, has a negative impact on playoffs performance (Phase 2). These findings suggest that organizations can balance knowledge inflows and outflows under a single quality or quantity dimension of knowledge. Furthermore, the interaction between the quantity of the inflows of knowledge and the quality of the outflows of knowledge and the interaction between the quality of the inflows of knowledge and the quantity of the outflows of knowledge are both positively related to two-phase performance. These findings suggest that organizations can balance knowledge inflows and outflows across quality and quantity dimensions of knowledge. Finally, the effects of the interaction between knowledge inflows and outflows on playoffs performance are greater than regular-season. Practical implications Organizations should leverage ambidexterity to manage/balance knowledge inflows and outflows across quality and quantity dimensions, further enhancing performance outcomes. Originality/value This study, first, provides new insights into knowledge flows by distinguishing between the quality and quantity of knowledge, the inflows and outflows of knowledge, constructing ambidextrous configurations of knowledge flows from an ambidexterity perspective. Second, it contributes to the relationship between knowledge flows and organizational performance by revealing how ambidextrous configurations of knowledge flows exert different effects on performance outcomes. Third, it adds to the literature of ambidexterity-performance relationships and expands it to the context of sports.

Spatial Analysis of the Relationship Between Income and Consumption of the Population Based on Panel Data

2021 ◽  
Vol 28 (2) ◽  
pp. 128-139
Author(s):  
I. A. Lakman ◽  
V. M. Timiryanova ◽  
D. V. Popov
Keyword(s):  
Panel Data ◽  
Capita Income ◽  
Fixed Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Per Capita Income ◽  
Spatial Error ◽  
Spatial Dependencies ◽  
Per Capita ◽  
The Relationship

The article presents results of a study on influence of population dynamics, regional characteristics and the type structure of income on consumption. The ability to investigate spatial dependencies and territorial effects over time was made possible by autoregression spatial models built on panel data. The article describes features of such models, sequence of calculations, and also presents modified tests to justify the choice of the model specification.Calculations were made using data from 83 constituent entities of the Russian Federation (cross-sectional observations) for 2010–2019 (10 time periods). The analysis showed that both population income and retail turnover, which largely determine the level and structure of population consumption, have spatial dependencies. The built spatial error model with fixed effects showed a positive influence on population consumption in the neighboring territories. The model also confirmed previously identified relationships: the positive impact of average per capita income and the negative impact of the Gini index on consumption. The built model with fixed effects allowed to isolate the individual effects of the territories, visualized using cartogram. On the basis of these assessments, several groups of territories with common properties and characteristics have been identified.Unlike previously built models, the authors’ spatial error autoregression model, built on panel data, took into account both the geographical heterogeneity and spatial dependence of average per capita income and retail turnover, expanding the existing understanding of the relationship between consumption and income. This, in turn, enables management decisions that take into account previously undetected features and enhance their validity.

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