scholarly journals TMT’s Attention towards Financial Goals and Innovation Investment: Evidence from China

2018 ◽  
Vol 10 (11) ◽  
pp. 4236 ◽  
Author(s):  
Shouming Chen ◽  
Kaidi Xu ◽  
Luu Nguyen ◽  
Guangsheng Yu
Keyword(s):  
Large Scale ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Corporate Ownership ◽  
Ownership Type ◽  
Private Companies ◽  
Innovation Activities ◽  
Top Managers ◽  
The Relationship ◽  
D Investment

Will the top managers’ attention to financial goals such as profit targets, operating expenses or debt payback schedule affect the firm’s innovation investment? The purpose of this study was to examine the relationship between the attention that the top management team (TMT) allocate on financial goals and R&D investment in Chinese firms. The roles of ownership type and company size as moderating effects in the relationship were also analyzed. This study used a panel dataset of 484 firms listed on the Shanghai Stock Exchange from 2010 to 2014. The results show that TMT’s attention to monetary objectives was negatively related to the R&D investment. In the state-owned and large-scale enterprises, the negative relationship between the TMT’s financial orientation and R&D investment is weak compared to that in private companies and smaller enterprises, respectively. Several conclusions have been drawn. First, the attention paid by TMT to financial goals significantly affects the innovation investment of the company. Specifically, when executives press the importance of monetary targets, they reduce innovation investment, given that the effects of firm-specific characteristics are controlled. Second, corporate ownership significantly moderates the relationship. Given the same degree of attention bias toward financial targets, compared with those in private companies, executives in state-owned companies tend to be more willing to invest in corporate innovation activities. Third, as the size of the company increases, the company’s comprehensive strength and ability to resist risks would increase, which in turn raises the willingness to undertake high-cost and long-term-to-realize-benefit innovation activities, thus alleviating the effect of TMT’s pressure on financial performance.

scholarly journals The Relationship between Liquidity and Firms’ Profitability: A Case Study of Karachi Stock Exchange

2017 ◽  
Vol 9 (1) ◽  
pp. 54 ◽  
Author(s):  
Nazish Bibi ◽  
Shehla Amjad
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Return On Assets ◽  
Current Ratio ◽  
Factors Affecting ◽  
Operating Income ◽  
Secondary Sources ◽  
Individual Variables ◽  
The Relationship

The purpose of this paper is to investigate the relationship between firm’s liquidity and profitability; and to find out the effects of different components of liquidity on firms’ profitability.The relationship between liquidity and firms’ profitability is empirically examined by collecting the data of 50 listed firms of Karachi Stock Exchange, Pakistan. Panel data has been collected from secondary sources for the year 2007 to 2011 .Net operating income and Return on assets are used measure of firm’s profitability. Liquidity of the firm is measured by using cash gap in days and current ratio. Firm size measured by net sales, total assets and market capitalization .The study applies regression analysis to determine factors affecting profitability. Incremental tests are carried out to see the importance of individual variables in the model.The results of correlation and regression analysis showed that there is a significant negative relationship between cash gap and return on assets while current ratio has significant positive relationship with profitability. Results further indicate that log of sales and log of total assets has positive significant relationship with profitability. The findings of this study are based on firms listed on the Karachi Stock Exchange (KSE). Hence, the results cannot be generalizable to those firms which are not listed on Karachi stock exchange. The sample of the study comprises only the merchandising and manufacturing firms. Banks are excluded due to their nature of work.

Investigating the Relationship Between Ownership Structure and Investment Efficiency in Emerging Markets: Evidence From the Egyptian Stock Market

2018 ◽  
Vol 8 (4) ◽  
pp. 1
Author(s):  
Ahmed Sayed Rashed ◽  
Ebitihj Mostafa Abd ◽  
Esraa Fathi Mohamed Ismail ◽  
Doaa Mohamed Abd El Samea
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Investment Efficiency ◽  
Outside Director ◽  
Director Ownership ◽  
The Relationship

This paper aims to examine the relationship between Ownership Structure Mechanisms (Managerial Ownership, Institutional Ownership, Block holder Ownership and Outside Director Ownership) and Investment Efficiency by using panel data analysis. To investigate this relationship used the multiple regression models. Findings of investigation of 35 firms listed on the Egyptian Stock Exchange in the period 2006 to 2015 by balanced Panel model representative. Results indicated that Managerial Ownership isn’t related with investment efficiency. In contract, institutional ownership, block holder ownership and outside director ownership have a negative relationship with investment efficiency. In addition, the researcher found that control variables (Firm size, Debt ratio, Tobin’s Q) not related to investment efficiency. These findings imply that the Majority of Egyptians firms relies on institutional without individual ownership and then reduces much of possible from agency problems and decreasing information asymmetry and facilitating the monitoring of investment decisions.

scholarly journals Green CSR Moderated by Public Visibility and Innovation Performance at Indonesia Companies

2020 ◽  
Vol 24 (1) ◽  
pp. 1
Author(s):  
Rahmat Hidayat, Farah Margaretha Leon
Keyword(s):  
Positive Relationship ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Innovation Activities ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

This study aims to analyze the green CSR  of innovation performance  with firms approval variables  and public visibility   can support moderating the relationship of green CSR  and innovation. The research sample was 33 manufacturing companies. The results showed that the  green CSR has a positive and significant effect on innovation . Also, the company approval variable has been proven to moderate the direction of a positive relationship between green CSR and innovation . The results also prove that public visibility is proven to moderate the direction of the negative relationship between green CSR and performance. This study provide information that shows great concern for the environment; it will increase the company in making changes through innovation activities. Also, the higher the company's approval and public visibility, the company will get support from various stakeholders to run the firms. The level of company concern for CSR activities will be a misjudgment for investors.

scholarly journals Relationship Between Deferred Tax Category and Stock Prices in Pharmacy

2018 ◽  
Vol 66 (6) ◽  
pp. 1469-1475
Author(s):  
Petr Habanec
Keyword(s):  
Time Series ◽  
Stock Prices ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Accounting Standards ◽  
Earning Management ◽  
International Accounting ◽  
International Accounting Standards ◽  
Deferred Tax ◽  
The Relationship

The paper deals with relationship between stock prices and deferred tax category. Joos, Pratt and Young provided evidence that book‑tax differences are correlated with earning management. In this paper is confirmed negative relationship between stock prices and deferred tax. The relationship is assessed on sample of companies making business in pharmacy (CZNACE‑C‑21). The relationship between deferred tax category and stock prices is assessed on a sample of companies in the time series from 2005 to 2015. Sample consists of companies listed on Frankfurt stock exchange and reporting in accordance with international accounting standards IAS/IFRS. The stock prices dataset is based on Morningstar database. The results are compared with the results of author ’s previous study concerning the deferred tax materiality.

scholarly journals PENGARUH LEVERAGE TERHADAP PROFITABILITAS PADA INDUSTRI MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

2009 ◽  
Vol 2 (1) ◽  
pp. 69
Author(s):  
Henny Setyo Lestari ◽  
Rahmawati Rahmawati
Keyword(s):  
Performance Management ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Operating Costs ◽  
Earning Capacity ◽  
Food And Beverage ◽  
Equity Ratio ◽  
Operating Leverage ◽  
Relationship Of ◽  
The Relationship

<p>This study aims to analyze and determined the relationship of leverage on corporate profitability.The study wanted to analyze the relationship between financial leverage, operating leverage, combined leverage, and debt equity ratio of earning per share. The aim is to explain how the earning capacity gain is influenced by the performance management fixed operating costs and fixed financial costs. In addition this study also explains the relationship between Debt Equity Ratio and Earning Per Share.<br />In this study, selected on food and beverage manufacturing subindustry listed on the Indonesia Stock Exchange during a periode of 11 years from 1999 — 2009. Using Kruskal Wallis testing, spearman correlation analysis and the classical assumption of normality. The result showed that the data DFL, DOL, and DCL didn't differ significantly in manufacturing subindustry. fry the DER and EPS data show that differ significantly in manufacturing subindustry of food and beverages. In addition these studies show that the DFL and DCL have a positive relationship to the EPS, while the DOL and the DER ha.s'a negative relationship to the EPS.</p><p><strong>Keywords : DCL, DER, DFL, DOL, Earning Per Share, Leverage, and Profitability</strong></p>

scholarly journals Financial Mismatch, Assets Specificity and Capital Structure

2019 ◽  
Vol 11 (2) ◽  
pp. 236
Author(s):  
Yanwu Li
Keyword(s):  
Capital Structure ◽  
Financial Market ◽  
Stock Exchange ◽  
Governance Structure ◽  
Debt Financing ◽  
Asset Specificity ◽  
Private Companies ◽  
Market Governance ◽  
The Impact ◽  
The Relationship

At present, the problem of financial mismatch poses great challenge to China’s financial market. Financial mismatch blurs the market governance structure of debt financing, thus distorting the relationship between asset specificity and capital structure. This paper investigates companies listed on the A-share of Shanghai and Shenzhen Stock Exchange from 2012 to 2017. It tests the existence of financial mismatch and the impact of financial mismatch on asset specificity and capital structure. Empirical results show that the impact of financial mismatch on the relationship between asset specificity and capital structure of sample companies exhibits no differences in ownership. Both state-owned listed companies and private companies face the same degree of financial mismatch issues, which leads to changes in the property-specific governance structure of assets, and asset specificity is positively related to capital structure.

scholarly journals The Relationship between Corporate Governance Mechanisms and Going Concern Evaluation: Evidence from Firms Listed on Amman Stock Exchange

2014 ◽  
Vol 4 (4) ◽  
pp. 100
Author(s):  
Bilal Nayef Zureigat ◽  
Faudziah Hanim Fadzil ◽  
Syed Soffian Syed Ismail
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Board Independence ◽  
Board Meeting ◽  
Governance Mechanisms ◽  
Going Concern ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This study aims to examine the relationship between corporate governance mechanisms (representative by each of managerial, institutional ownership, board independence and board meeting) and going concern evaluation among Jordanian listed firms. Through using multiple regression analysis, the results of this study illustrates that there is a positive relationship between managerial ownership, board independence and board meeting and going-concern evaluation, while a negative relationship is found with institutional ownership. There are four main hypotheses, two of them which are managerial and institutional ownership are accepted, while board independence and board meeting are not supported. This study shed more light on the importance of complying with the requirements of governance code and instructions by the companies and the need to impose fines or sanctions on non-compliant companies. The results of this study contribute to the creditors’ interest to be more alert to companies which may possess characteristics that contribute in manipulation of future companies.

Abusive supervision and employees' job performance: A multiple mediation model

2017 ◽  
Vol 45 (5) ◽  
pp. 845-858 ◽  
Author(s):  
Zhi-xia Chen ◽  
Hong-yan Wang
Keyword(s):  
Job Performance ◽  
Self Efficacy ◽  
Negative Relationship ◽  
Abusive Supervision ◽  
Mediating Effect ◽  
Multiple Mediation ◽  
Private Companies ◽  
Public And Private ◽  
Member Exchange ◽  
The Relationship

We explored the relationship between abusive supervision (AS) and employee job performance (EJP) by conducting a survey of a group of employees (N = 630) of Chinese public and private companies. We investigated possible mediation in the relationship by leadership justice, supervisory trust, and self-efficacy from three perspectives, namely, self-concept and individual socialization, organizational justice, and leader–member exchange. The results showed that there was a negative relationship between AS and EJP that was mediated by leadership justice, supervisory trust, and self-efficacy. We also found that the negative relationship between AS and EJP was affected by the joint mediating effect of leadership justice and supervisory trust. Implications for academicians and practitioners are discussed.

scholarly journals Operação Lava Jato: Impactos no Mercado Segurador de Responsabilidade Civil de Executivos

2021 ◽  
Vol 25 (2) ◽  
Author(s):  
Rafael Tonet Rensi ◽  
João Vinícius França Carvalho
Keyword(s):  
Insurance Coverage ◽  
Negative Relationship ◽  
Private Companies ◽  
Public And Private ◽  
Economic Agents ◽  
Probability Updating ◽  
Legal Context ◽  
Car Wash ◽  
Directors And Officers ◽  
The Relationship

ABSTRACT Context: triggered in 2014, the Car Wash Operation (CWO) belongs to a process of changing the legal context, in the sense of greater responsibility and penalization of public and private companies’ decision makers for acts practiced in the exercise of their functions, object of the Directors’ and Officers’ liability insurance coverage (D&O). Objective: to evaluate the relationship between the growth in the revenues of D&O insurance premiums and the developments of the OCW in Brazil, under the hypothesis of a change in the perception of economic agents exposed to risks covered by D&O insurance, in a process known as probability updating. Methods: official monthly data for all active insurers, arranged longitudinally between 2003 and 2017, and using two-stage regression method for panel data. Results: the OCW had a positive effect not only to the probability of offering this type of insurance, but also to increase the volume of D&O premiums; these results are consistent with the probability-updating hypothesis. Conclusion: the OCW resulted in an increase in revenues of D&O premiums, but there was a negative relationship between OCW and the entire insurance market, suggesting significance of this operation in the sector retraction observed since its outbreak.

scholarly journals Could the Environmental Regulation Promote Green Innovation? Evidence From China

2021 ◽  
Author(s):  
Weiyong Zou ◽  
Yunjun Xiong
Keyword(s):  
Environmental Regulation ◽  
Positive Impact ◽  
Spillover Effect ◽  
Green Innovation ◽  
Coordinated Development ◽  
Innovation Activities ◽  
High Degree ◽  
The Relationship ◽  
D Investment

Abstract Could the environmental regulation promote green innovation? This is a very controversial issue. In view of the fact that the existing literature only studies the relationship between the two, lacks effective heterogeneity research, and pays less attention to the deeper analysis mechanism between the two. This study fills the gap. This paper selects the panel data of 285 prefecture level cities in China from 2000 to 2019 for empirical research. The results show that environmental regulation has a significant and continuous positive impact on green innovation.From the perspective of heterogeneity, we find that cities with higher level of green innovation are suitable to improve the intensity of environmental regulation; Cities with low level of green innovation can not formulate high-intensity environmental regulation policies. The intermediary mechanism shows that under the situation of stricter environmental regulations, producers will pay more attention to the promotion and accumulation of human capital, and provide strong intellectual support for green innovation activities. The adjustment mechanism shows that the cities with high degree of marketization and financial R&D investment are conducive to strengthening the promotion of environmental regulation on green innovation. On the contrary, it weakens the role of environmental regulation in promoting green innovation. In addition, this paper uses SYS-GMM model and selects appropriate instrumental variables to solve the endogeneity problem of the model. We find that after reducing the endogeneity of the model, improving the intensity of environmental regulation can still promote the level of green innovation. Using SDM decomposition model, we find that environmental regulation has spatial spillover effect on green innovation, and the formulation of environmental regulation strategy is conducive to the coordinated development of regional green innovation.

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