scholarly journals Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis

2020 ◽  
Vol 12 (4) ◽  
pp. 1689 ◽  
Author(s):  
Vanja Grozdić ◽  
Branislav Marić ◽  
Mladen Radišić ◽  
Jarmila Šebestová ◽  
Marcin Lis
Keyword(s):  
Data Analysis ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Manufacturing Firms ◽  
Capital Investments ◽  
Short Term ◽  
Term Performance

The main goal of this study was to examine the effects of capital investments on firm performance, using panel-data analysis. For this purpose, financial data were gathered for 60 manufacturing firms based in Serbia, in the period from 2004 to 2016. The main research hypotheses were developed in accordance with the definition, nature, and time aspect of capital investments. Therefore, empirical expectation of this study was that the relationship between capital investments and firm performance should be positive—they probably bring losses to the firm in the short term, but they should increase firm performance in the long term. Finally, the results have indeed shown that capital investments have statistically significant negative effect on the short-term performance, but positive effect on the long-term performance of the analyzed firms, while controlling for time-fixed effects and certain internal factors.

scholarly journals Investment Policy and Net Book Value of Quoted Manufacturing Firms: Dynamic Panel Data Evidence From Nigeria

2021 ◽  
Vol 04 (08) ◽  
Author(s):  
Adibe Francis Chikwendu ◽  
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Dynamic Panel Data ◽  
Manufacturing Firms ◽  
Investment Policy ◽  
Portfolio Investment ◽  
Short Term ◽  
Book Value ◽  
Independent Variables

This study examined the relationship between investment policy and dynamic of net book value of quoted manufacturing firms in Nigeria. Panel data of 15 quoted manufacturing firms was collected from the annual reports of the manufacturing firms from 2010-2019. Stock prices of the quoted firms was modeled as the function of short term portfolio investment, subsidiary investment, long term portfolio investment and long term investment. Multiple regressions were formulated. Panel data methodology was employed while the fixed effects model was used as estimation technique at 5% level of significance. Fixed effects, random effects and pooled estimates were tested while the Hausman test was used to determine the best fit. Panel unit roots and panel cointegration analysis were conducted on the study. The study found that the independent variables explained 69.1 percent of the systematic variation in net book value of the quoted manufacturing firms. Long term investment and subsidiary investment have positive relationship with net book value of the quoted manufacturing firms while short term and long-term portfolio investment have negative relationship with net book value of the quoted manufacturing firms while the probability coefficient of the variables informed us that the independent variables are statistically not significant. From the findings, the study conclude that investment policy affect significantly the net book value of the quoted manufacturing firms. It recommends that proper investment analysis should be carried out in appraising short term investment to enhance value of manufacturing firms. There is need for management to integrate the objectives of long term investment with the value objective of Nigeria manufacturing firms.

Financial Resilience: A comparative study of Islamic and Conventional Banking

2016 ◽  
Vol 4 (2) ◽  
pp. 49-57
Author(s):  
Areeba Khan ◽  
Junaina Muhammad
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Comparative Study ◽  
Commercial Banks ◽  
Original Work ◽  
Panel Data Analysis ◽  
Research Paper ◽  
Islamic Banks ◽  
Short Term

Objective - The purpose of this paper is to elucidate the financial resilience perspective in banks, with an aim to distinguish empirically between Islamic and Conventional Commercial Banks with respect to short-term and long-term financial resilience. Methodology/Technique - Panel data analysis of the banks by calculating diagnostics and ratios. Findings - Islamic banks are less resilient with respect to liquidity in the short term, but significantly more resilient in long term than Conventional commercial banks. Novelty - This research paper is an original work of the authors and is unique with respect to the resilience dimension applied to segregate the Islamic banks from Conventional commercial banks. Type of Paper - Empirical Keywords: Islamic bank, Conventional Bank, Financial resilience.

scholarly journals AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA

2021 ◽  
Vol 17 (No.1) ◽  
pp. 1-26
Author(s):  
Rabia Bashir ◽  
Angappan Regupathi
Keyword(s):  
Firm Performance ◽  
Tobin’S Q ◽  
Working Capital ◽  
Short Term ◽  
Return On Assets ◽  
Tobin's Q ◽  
Cash Conversion Cycle ◽  
Long Term Performance ◽  
Term Performance

The study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different measures of operating working capital, namely disaggregated and aggregated (cash conversion cycle) operating working capital, influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently. It uses the panel data of 208 listed non-financial firms in Malaysia covering the period from 2013 to 2017, and the data has been sourced from Datastream. It employs the panel corrected standard errors regression model. The study has found that quicker sale of inventory increased both the short-term and long-term performance of the firm. Likewise, faster collection of receivables increased the long-term, but not short- term, performance. However, prompter payment of payables increased both the short-term and long-term performance. The study has also found that the disaggregated working capital measures – inventory, receivables, and payables contributed to a more nuanced influence of working capital on performance, compared to the aggregated working capital. The study has provided novel evidence that– higher non- operating working capital increased firm performance.

CSR portfolio characteristics and performance outcomes: examining the impacts of CSR portfolio diversity and dynamism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyle Turner ◽  
Craig A. Turner ◽  
William H. Heise
Keyword(s):  
Firm Performance ◽  
Dynamic Range ◽  
Performance Outcomes ◽  
Short Term ◽  
Content Type ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Term Performance ◽  
The Relationship

Purpose The purpose of this paper is to introduce and test a portfolio view of a firm’s corporate social responsibility (CSR) activities. Drawing from stakeholder theory and the dynamic capabilities literature, the authors introduce CSR portfolio diversity and dynamism as key portfolio characteristics that have differential impacts across short- and long-term performance contexts. Design/methodology/approach The study draws from the Kinder, Lydenberg and Domini database to examine CSR portfolio diversity and dynamism across seven dimensions of CSR activities. The authors test the direct and indirect relationships between CSR portfolio characteristics and both short- and long-term performance outcomes to assess the opportunities and challenges associated with managing a diverse and dynamic CSR portfolio. Findings The findings suggest that a diverse portfolio of CSR activities positively impacts long-term performance; however, CSR portfolio diversity yields negative performance outcomes in the short-term. The authors also find that CSR portfolio dynamism moderates the relationship between CSR level and firm performance, such that a dynamic portfolio of CSR positively moderates the relationship between a firm’s CSR level and long-term performance; however, it negatively moderates the relationship between CSR level and short-term performance. Originality/value This study integrates insights from the literature that examine the independent effects of individual CSR activities and the broader perspective that assesses the aggregated summation of CSR activities in relation to firm performance. By taking a portfolio perspective, the present study provides a unique integration of these two research streams to examine the performance implications of engaging in a diverse and dynamic range of CSR activities.

scholarly journals The Effect of Institutional Ownership on Firm Performance: Evidence from Jordanian Listed Firms

2015 ◽  
Vol 7 (12) ◽  
pp. 97 ◽  
Author(s):  
Dana AL-Najjar
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Institutional Ownership ◽  
Nominal Exchange Rate ◽  
Risk Level ◽  
Lagrangian Multiplier ◽  
Management Decisions ◽  
Listed Firms

<p>Last decade witnessed successive corporate scandals for various firms that points to a failure of corporate control. Expertize and interested parties all over the world proposed to focus on monitoring the management decisions to reduce such failure in firms. Therefore, the structure of ownership became more and more as an important issue to increase both efficiency and effectiveness of management decisions. This study seeks to investigate whether institutional ownership affects the firm’s performance for one of the emerging markets; Jordan. Firm’s performance is measured through applying two accounting measures Return on Assets (ROA) and Return on Equity (ROE), with 6 explanatory variables. Our sample is unique and contains 82 non-financial Jordanian firms listed at Amman Stock Exchange (ASE) for the period of 2005-2013, by applying panel data regression analysis. It depends on building three OLS models: Pooled, Fixed Effects Model and Random Effects Model. In addition, a test for Breusch and Pagan Lagrangian multiplier (LM), and Hausamn test to choose among the three models which model is most suitable for our data. A main finding of the panel data analysis is that; fixed effect regression is the most convenient model. As a result, there is no strong evidence that there is a relationship between both institutional ownership and firm performance for Jordanian listed firms. This conclusion can be due to the fact that institutional ownership has its own pros and cons, therefore, their existence and influence could affect materially the types and risk level of investment decisions taken by the management which in return will affect the firm’s performance as a whole. ociation with external reserve and net credit to the economy. Based on these results; it is recommended that, the Nigeria government should designed programmes and incentives to boost industrial capacity utilization in the country. Markets determine nominal exchange rate should prevail in the economy. The country should regulate its foreign reserve policy by setting a threshold, above which excess deposit should be plough back to the domestic economy inform of investments rather than support excessive importation.</p><p> </p>

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