Do Firm’s Organisational Slacks Influence the Relationship between Corporate Lobbying and Corporate Financial Performance? More Is Not Always Better

A political involvement in any organisation has often proved to be profitable for such firms that are seeking support and favourable regulatory conditions. Though many studies have investigated the effect of the corporate lobbying activities on the organisations, no clear results have been achieved. In this study, we have investigated the lobbying expenditure of some of the most famous United States (US)-based companies, which support the U.S. government during 2007–2016. Primarily, we tested the relationship between the corporate lobbying and the Corporate Financial Performance (CFP), with the help of a dynamic panel data analysis, which is based on the System Generalised Methods of the Moment (SYS-GMM). The results of this study indicated that the corporate lobbying did not increase the probability of gaining more support from the government in comparison to the firms that did not use any lobbying techniques. Furthermore, the findings showed that corporate lobbying is a component of the zero-sum political agenda that cannot be accurately evaluated and does not contribute towards the improvement of the CFP. This study introduced the important component of organisational slack and noted that the corporate lobbying could significantly destroy the CFP if the organisational slack was high.

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The Effects of Gender Diversity in The Boardroom on Firm Financial Performance in Indonesia

Jurnal Ekonomi Kuantitatif Terapan ◽

10.24843/jekt.2018.v11.i02.p07 ◽

2018 ◽

Author(s):

Ayu Denisa Linggih ◽

I G. B. Wiksuana

Keyword(s):

Financial Performance ◽

Fixed Effects ◽

Stock Exchange ◽

Panel Data Analysis ◽

Gender Diversity ◽

Return On Assets ◽

Firm Financial Performance ◽

Managerial Implications ◽

The Government ◽

The Relationship

This research investigates the effects of gender diversity in the boardroom on firm financial performance in Indonesia. To achieve the objective of this study, panel data analysis and fixed effects estimators have been applied to companies listed in Indonesia Stock Exchange in 2014 until 2016. The result of this study indicates that the percentage of women in the boardroom (board of commissioners and board of directors) has a significant positive effect on the company's financial performance as measured by return on assets (ROA). The relationship between these variables is then explained by agency theory where increasing the percentage of women in the boardroom improves the supervision of the company's agents which in return will positively affect the financial performance of the company. The managerial implications and suggestions of this research are that companies should begin to empower more women in the company's top management, also the government should consider a minimum quota policy for women on board of commissioners and directors in Indonesia.

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Merton-type default risk and financial performance: the dynamic panel moderation of firm size

Journal of Economic and Administrative Sciences ◽

10.1108/jeas-09-2021-0181 ◽

2022 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Muhammad Mushafiq ◽

Syed Ahmad Sami ◽

Muhammad Khalid Sohail ◽

Muzammal Ilyas Sindhu

Keyword(s):

Financial Performance ◽

Firm Size ◽

Default Risk ◽

Banking Sector ◽

Generalized Method Of Moments ◽

Dynamic Panel Data ◽

Dynamic Panel ◽

Content Type ◽

Nonfinancial Firms ◽

The Relationship

PurposeThe main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation of firm size.Design/methodology/approachThis study utilizes a total of 1,500 firm-year observations from 2013 to 2018 using dynamic panel data approach of generalized method of moments to test the relationship between default risk and financial performance with the moderation effect of the firm size.FindingsThis study establishes the findings that default risk significantly impacts the financial performance. The relationship between distance-to-default (DD) and financial performance is positive, which means the relationship of the independent and dependent variable is inverse. Moreover, this study finds that the firm size is a significant positive moderator between DD and financial performance.Practical implicationsThis study provides new and useful insight into the literature on the relationship between default risk and financial performance. The results of this study provide investors and businesses related to nonfinancial firms in the Pakistan Stock Exchange (PSX) with significant default risk's impact on performance. This study finds, on average, the default probability in KSE ALL indexed companies is 6.12%.Originality/valueThe evidence of the default risk and financial performance on samples of nonfinancial firms has been minimal; mainly, it has been limited to the banking sector. Moreover, the existing studies have only catered the direct effect of only. This study fills that gap and evaluates this relationship in nonfinancial firms. This study also helps in the evaluation of Merton model's performance in the nonfinancial firms.

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Assessing the Impact of Terrorism on African Tourism Demand

Tourism Analysis ◽

10.3727/108354221x16288738624441 ◽

2021 ◽

Author(s):

Sheereen Fauzel ◽

Boopen Seetanah

Keyword(s):

Panel Data Analysis ◽

Dynamic Panel Data ◽

Terrorist Attacks ◽

Tourism Demand ◽

African Countries ◽

Correction Model ◽

Vector Error Correction ◽

Vector Error ◽

The Impact ◽

The Relationship

Many African states are relying on or have identified tourism to accelerate their growth and the continent has become the world’s second fastest growing tourist industry. However, African states have also not been spared by increasing terrorism attacks during the past decades, probably hindering the growth of this sector to certain extent. This study examines the relationship between terrorism and tourism for a sample of selected African countries over the period 1995 to 2017. Given the dynamic nature of tourism demand and the possibility of endogenous relationships in the terrorism-tourism nexus, dynamic panel data analysis, namely a Panel vector error correction model (PVECM) is employed. The results confirm that terrorism negatively affects tourism demand in Africa and this can be explained by the reactive psychology of tourists to the various aggravated terrorist attacks in the countries. Moreover, the findings show that an increase in tourism may have resulted in an increase in terrorist attacks, hence confirming a bi directional causality between tourism and terrorism.

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CSR and Corporate Financial Performance: An Inter-Sectorial Analysis

International Journal of Business and Management ◽

10.5539/ijbm.v14n11p193 ◽

2019 ◽

Vol 14 (11) ◽

pp. 193 ◽

Cited By ~ 1

Author(s):

Antonio Salvi ◽

Emanuele Doronzo ◽

Anastasia Giakoumelou ◽

Felice Petruzzella

Keyword(s):

Financial Performance ◽

Method Of Moments ◽

Environmental Governance ◽

Generalized Method Of Moments ◽

Geographic Area ◽

Corporate Financial Performance ◽

Thomson Reuters ◽

Sectorial Analysis ◽

Corporate Social ◽

The Relationship

This study examines the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), shedding new light on the lack of academic consensus and prevailing failure to deal with endogeneity in data. To this purpose, the authors recalculate ESG performance starting from the four pillars (economic, environmental, governance and social) provided by Thomson Reuters’ Asset4 database, able to determine a firm’s CSP. We adjust each ESG pillar score accounting for the firm’s sector, size and headquarter geographic area. We empirically test the relationship with a Generalized Method of Moments approach (GMM) in order to tackle the widely disputed endogeneity issues arising in this type of datasets. Results highlight a positive relationship between CSR, as measured in a tailored manner in this study, and corporate financial performance.

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THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

International Journal of Contemporary Accounting ◽

10.25105/ijca.v2i2.7517 ◽

2020 ◽

Vol 2 (2) ◽

pp. 139

Author(s):

Niko Silitonga

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Measurement Instrument ◽

Secondary Data ◽

Sampling Technique ◽

Annual Reports ◽

Corporate Financial Performance ◽

Financial Policy ◽

Public Ownership ◽

The Relationship

AbstractThe corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property & Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange. The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.Keywords: Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance.

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The relationship between corporate social performance and corporate financial performance and the role of innovation: evidence from German listed firms

Journal of Management Control ◽

10.1007/s00187-013-0171-5 ◽

2013 ◽

Vol 24 (1) ◽

pp. 27-52 ◽

Cited By ~ 23

Author(s):

Thomas M. Fischer ◽

Angelika A. Sawczyn

Keyword(s):

Financial Performance ◽

Corporate Social Performance ◽

Social Performance ◽

Corporate Financial Performance ◽

Listed Firms ◽

Corporate Social ◽

The Relationship

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Impact of Corporate Political Activity on the Relationship Between Corporate Social Responsibility and Financial Performance: A Dynamic Panel Data Approach

Sustainability ◽

10.3390/su11010060 ◽

2018 ◽

Vol 11 (1) ◽

pp. 60 ◽

Cited By ~ 14

Author(s):

Woon Lin ◽

Jo Ho ◽

Murali Sambasivan

Keyword(s):

Corporate Social Responsibility ◽

Panel Data ◽

Financial Performance ◽

Dynamic Panel Data ◽

Political Activity ◽

Corporate Political Activity ◽

Dynamic Panel ◽

Financial Position ◽

Corporate Social ◽

The Relationship

As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to determine the situational contexts in which critical associations between CFP and CSR activities will arise. This study provides further insight into the moderating effects of corporate political activity, specifying the ways in which different arrangements of corporate CSR and CPA might align or otherwise, thus influencing CFP beyond associated dissimilar effects on corporate performance. The data for this study was obtained for the periods 2007–2016 from the samples selected from the list of Fortune’s World’s Most Admired Companies. The dynamic panel data was analyzed using the System Generalized Method of Moment estimation. The main findings are that CSR does not significantly influence CFP. However, CPA does negatively moderate the relationship between CSR and CFP. This indicates that high political expenditures worsen a firm’s financial position compared to the financial position of firms with less spending on CPA.

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The Relationship Between Corporate Social Responsibility and Corporate Financial Performance in Korea

Emerging Markets Finance and Trade ◽

10.1080/1540496x.2015.1039903 ◽

2015 ◽

Vol 51 (sup3) ◽

pp. 85-94 ◽

Cited By ~ 14

Author(s):

Wankeun Oh ◽

Seungho Park

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Corporate Financial Performance ◽

Corporate Social ◽

The Relationship

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MODERATING EFFECT OF ECONOMIC GROWTH ON FINANCIAL PERFORMANCE OF MERGED INSTITUTIONS

International Journal of Finance ◽

10.47941/ijf.37 ◽

2017 ◽

Vol 1 (1) ◽

pp. 38

Author(s):

Dr. Agnes Ogada ◽

Dr. George Achoki ◽

Dr. Amos Njuguna

Keyword(s):

Economic Growth ◽

Financial Performance ◽

Financial Services ◽

Panel Data Analysis ◽

Descriptive Analysis ◽

Secondary Data ◽

Moderating Effect ◽

Primary Data ◽

The Government ◽

To Come

Purpose: The purpose of the study was to determine the moderating effect of economic growth on financial performance of merged institutions Methodology: The study adopted a mixed methodology research design. The study population included all the 51 merged financial service institutions in Kenya. Purposive sampling was used. Primary data was obtained from questionnaires and a secondary data collection template was also used. The researcher used quantitative techniques in analyzing the data. Descriptive analysis for the study included the use of means, frequencies and percentages. Inferential statistics such as correlation analysis was also used. Panel data analysis was also applied. Further, a pre and post merger analysis was used.Results: There was a significant relationship between the moderating effect of economic growth and financial performance of merged institutions.Unique contribution to theory, practice and policy: The government and Central Bank of Kenya to come up with strategies and policies to protect the financial services sector due to its immense contribution to the economy of the country by formulating policies aimed at controlling the effects of rapid fluctuations of the macro economic factors and their effects on the sector.

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