Business Strategy, ISO 31000 and Bankruptcy Risk

The purpose of this study is to examine the effect of business strategy to bankruptcy risk and the effect moderate of ISO 31000 to business strategy and bankruptcy. The sample of this study is 50 firms listed on the Indonesia Stock Exchange (IDX). the results support that business strategy has a significant effect on bankruptcy risk. Firms which implement either one of two generic business strategies of cost leadership or differentiation, sig-nificantly effect to the risk of bankruptcy. the second result is ISO 31000 has not effect moderated to business strategy and bankruptcy risk

Download Full-text

Analyzing earnings management preferences from business strategies

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-04-2021-0103 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Golrida Karyawati Purba ◽

Cornelia Fransisca ◽

Prem Lal Joshi

Keyword(s):

Earnings Management ◽

Business Strategy ◽

Stock Exchange ◽

Business Strategies ◽

Real Form ◽

Content Type ◽

Cost Leadership ◽

Differentiation Strategy ◽

Financial Misstatement ◽

Prior Literature

Purpose This study aims to examine the preference for earnings management (EM) strategies according to business strategies, namely, cost leadership strategies and differentiation strategies, Design/methodology/approach This study analyzed 262 samples of manufacturing and service companies listed on the Indonesia Stock Exchange for the period 2019. Logistic regression analysis is used to test the company’s EM strategy preferences based on the applied business strategy. Findings The results prove that business strategy has a significant effect on EM strategy preferences. Companies that implement a cost leadership strategy tend to use an accrual form of EM rather than a real form of EM. Conversely, companies that implement a differentiation strategy tend to use a real form of EM. Research limitations/implications Theoretically, this study confirms that contingency theory can explain EM practice preferences based on business strategy. Practically, this study helps auditors and financial statement analysts in assessing the quality of financial statements, as well as the risk of financial misstatement based on the business strategy adopted by the companies. Originality/value Based on prior literature, research studies on the analysis of EM strategy preferences based on business strategy have been limited.

Download Full-text

RELATIONSHIP BETWEEN FAMILY OWNERSHIP, AGENCY COSTS TOWARDS FINANCIAL PERFORMANCE AND BUSINESS STRATEGY AS MEDIATION

Verslas teorija ir praktika ◽

10.3846/btp.2018.06 ◽

2018 ◽

Vol 19 (0) ◽

pp. 49-58

Author(s):

Enni Savitri

Keyword(s):

Financial Performance ◽

Business Strategy ◽

Agency Costs ◽

Stock Exchange ◽

Partial Least Square ◽

Least Square ◽

Business Strategies ◽

Family Ownership ◽

Manufacturing Companies ◽

The Relationship

This study investigates the relationship between family ownership, agency costs, financial performance, and companies’ business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007–2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies’ business strategies are not affected by the family ownership. Family ownership and business strategies influence companies’ financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company’s development.

Download Full-text

Business Strategy and the Cost of Equity Capital: An Evaluation of Pure versus Hybrid Business Strategies

Journal of Management Accounting Research ◽

10.2308/jmar-52171 ◽

2018 ◽

Vol 31 (2) ◽

pp. 111-141 ◽

Cited By ~ 1

Author(s):

Mehdi Khedmati ◽

Edwin KiaYang Lim ◽

Vic Naiker ◽

Farshid Navissi

Keyword(s):

Product Differentiation ◽

Business Strategy ◽

Lower Cost ◽

Equity Capital ◽

Business Strategies ◽

Cost Of Equity Capital ◽

Cost Of Equity ◽

Cost Leadership ◽

Pure Product ◽

The Cost

ABSTRACT We examine the effect of pure (product differentiation or cost leadership) versus hybrid (a mix of product differentiation and cost leadership) business strategies on the cost of equity capital. Our results suggest that firms with a pure, relative to a hybrid, business strategy have a significantly lower cost of equity, and the cost of equity effect is equally driven by pure product differentiation and pure cost leadership strategies. We also find that firms following a pure business strategy are associated with lower systematic risk. Further, the lower cost of equity effect of a pure product differentiation strategy is more pronounced in high-technology industries and in regions with greater innovative capital. Our findings are robust to an array of robustness checks including change specification regressions and various methods for addressing endogeneity. Data Availability: All data used in this study are publicly available from the sources identified in the paper.

Download Full-text

Impact of Business Strategy on Stock Price Crash Risk: Role of Overvalued Equity

NICE Research Journal ◽

10.51239/nrjss.v0i0.74 ◽

2018 ◽

pp. 112-129

Author(s):

Sana Saleem ◽

Muhammad Usman ◽

Muhammad Anwar ul Haq

Keyword(s):

Stock Prices ◽

Business Strategy ◽

Stock Price ◽

Stock Exchange ◽

Business Strategies ◽

Crash Risk ◽

Innovative Strategies ◽

The Future ◽

The Impact

The objective of the current study is to investigate the impact of business strategies on the future crash risk of stock prices by considering the role of overvalued equity. This relationship is checked by taking non-financial firms from Pakistan Stock Exchange from 2008-2016. To evaluate the business strategy, composite strategy score is used which considers the firm's development and research costs to look for new products, sales ratio to determine the firm’s capacity to manufacture the product efficiently, standard deviation of employees, sales growth, marketing expense to sales ratio to locate the firms’ emphasis on marketing, and intensity of assets expenditures to capture the firms’ emphasis on production. Market to book decomposition method is used to calculate the equity overvaluation whereas the negative conditional skewness is used as a measure of crash risk. Random and fixed effect panel regression models are used to estimate the results. The results of the present study indicate that firms pursuing innovative strategies have a higher probability to face crash price risk. Outcomes of the study also confirm that such strategies also increase the likelihood of equity overvaluation which increases the risk of stock price crash in the future. The results of the current study are helpful for the investors in allocating the assets cautiously among companies with diverse strategies.

Download Full-text

Effective Business Strategy for International Strategic Performance: An Empirical Study of Chinese Construction Firms

THE INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION ◽

10.18775/ijmsba.1849-5664-5419.2014.23.1005 ◽

2014 ◽

Vol 2 (3) ◽

pp. 43-55

Author(s):

Dilafruz Mirzaeva Faziljanovna ◽

Gao Yongqian

Keyword(s):

Empirical Study ◽

Strategic Management ◽

Business Strategy ◽

Business Strategies ◽

International Strategy ◽

Chinese Firms ◽

Strategic Performance ◽

Cost Leadership ◽

International Performance ◽

Generic Strategy

To build on the research of strategic management we conducted an empirical study in the context of international performance. Three principal strategies, according to Porters generic strategy theory: cost leadership cost-focus and differentiation respectively, were tested in our research model. Quantitative empirical analysis of international strategy on a sample of 58 Chinese firms was conducted to determine strategies that lead to enhanced strategic performance. We utilized survey strategy encompassing questionnaire data collection. The collected data was analyzed using SPSS statistical package. Inference statistics consisting of correlation analysis and multiple regression analysis were performed. Findings of the study suggest that cost leadership and differentiation strategies impact strategic performance significantly, whereas cost-focus does not. A value of appropriate international business strategy is illustrated by supporting a relationship between strategy and international performance. The originality of contributions of the study lies in the fact that the generic business strategies’ impact on strategic performance is tested on an international market on the sample of Chinese firms. These notions enrich existing body of knowledge on strategic management. Therefore, companies conducting their business operations internationally should consider forming and implementing strategies of differentiation and cost leadership to achieve optimal business results.

Download Full-text

PENGARUH BUSINESS STRATEGY DAN BUSINESS RISK TERHADAP GOING CONCERN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2010-2014

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v3i2.4962 ◽

2016 ◽

Vol 3 (2) ◽

pp. 177

Author(s):

Sefira Yovalia ◽

Wibowo Wibowo

Keyword(s):

Business Strategy ◽

Stock Exchange ◽

Sampling Technique ◽

Manufacturing Companies ◽

Business Risk ◽

Cost Leadership ◽

Going Concern ◽

Differentiation Strategy ◽

Leadership Strategy ◽

Cost Leadership Strategy

The purpose of this study was to determine the effect of business strategy and business risk of the company's going concern in manufacturing companies in BEI 2010-2014. Going Concern is defined as the continuity of an entities. Business Strategy is divided into two, cost leadership strategy and differentiation strategy. The research data obtained from the annual financial statements and the company on the Stock Exchange website Indonsia. The samples used were 144 companies manufacturing sector listed on the Stock Exchange in 2010-2014. The sampling technique used was purposive sampling. This study uses logistic regression analysis. The analytical tools used to test the hypothesis is SPSS 22. The results showed that the cost leadership strategy, differentiation strategy and business risk does not affect the going concern. However, cost leadership strategy, differentiation strategy and business risk simultanelously can affect the going concern.

Download Full-text

The relationship between MNCs’ strategies and executive staffing

International Journal of Organizational Analysis ◽

10.1108/ijoa-10-2015-0913 ◽

2017 ◽

Vol 25 (2) ◽

pp. 233-250 ◽

Cited By ~ 4

Author(s):

Sangeetha Lakshman ◽

C. Lakshman ◽

Christophe Estay

Keyword(s):

International Business ◽

Business Strategy ◽

Global Strategy ◽

Business Strategies ◽

Future Research ◽

Research Approach ◽

Global Integration ◽

Content Type ◽

Managerial Implications ◽

The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

Download Full-text

Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

Human Resource Management International Digest ◽

10.1108/hrmid-11-2021-0234 ◽

2022 ◽

Vol ahead-of-print (ahead-of-print) ◽

Keyword(s):

Business Strategy ◽

Cost Reduction ◽

High Performance ◽

Intention To Leave ◽

Business Strategies ◽

Work Systems ◽

Content Type ◽

High Performance Work Systems ◽

Mediating Role ◽

The Relationship

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.

Download Full-text

Pemodelan Simulasi Sistem Dinamik untuk Meningkatkan Jumlah Pendapatan Unit Rawat Inap Rumah Sakit Islam Surabaya A.Yani

Jurnal Teknologi Informasi dan Ilmu Komputer ◽

10.25126/jtiik.2020703126 ◽

2020 ◽

Vol 7 (3) ◽

pp. 581

Author(s):

Anwar Romadhon ◽

Erma Suryani

Keyword(s):

Health Insurance ◽

Business Strategy ◽

Budget Deficit ◽

System Modeling ◽

Hospital Management ◽

Payment System ◽

Business Strategies ◽

Case Base ◽

Hospital Development ◽

The Right

Perkembangan rumah sakit di Indonesia semakin meningkat, sejak tahun 2012 sampai 2018 mengalami peningkatan dengan rata – rata 5.2%. Tentunya hal tersebut memiliki dampak terhadap daya saing yang lebih kompetitif. Kebijakan pemerintah Indonesia yang mengharuskan rumah sakit bekerja sama dengan Jaminan Kesehatan Nasional (JKN) guna pemerataan pelayanan kesehatan mempengaruhi jumlah pendapatan. Faktanya asuransi BPJS Kesehatan mengalami defisit anggaran yang nilainya sangat besar. Manajement rumah sakit harus mencari strategi dan kebijakan yang tepat dalam upaya memaksimalkan pendapatan khususnya di era JKN. Pembatasan jumlah kunjungan tidak mungkin dilakukan mengingat sebagian besar pasien berasal dari peserta BPJS Kesehatan. Tujuan penelitian ini dilakukan untuk menemukan kebijakan dan solusi yang tepat bagi rumah sakit untuk mendapatkan keuntungan finasial dalam kondisi defisitnya anggaran asuransi kesehatan. Penting informasi membuat manajemen rumah sakit berupaya untuk memanfaatkan teknologi informasi sebagai media untuk merancang strategi bisnisnya, simulasi komputer seperti pemodelan sistem dinamik mempu menggambarkan dan mensimulasikan sistem secara nyata yang mengacu pada data, sehingga pemangku kepentingan dapat memprediksi kondisi yang bisa terjadi dimasa depan. Hasil penelitian menunjukkan bahwasanya dengan merubah sistem pembayaran dari Fee For Services menjadi INA - Case Base Groups dapat memberikan keuntungan lebih bagi rumah sakit, hal ini dikarenakan tarif yang ditetapkan menyesuaikan dengan tarif rumah sakit di seluruh Indonesia. Temuan lain yang perlu diperhatikan adalah piutang pihak asuransi mengalami peningkatan, tentunya hal tersebut perlu perhatian lebih, serta bisa dijadikan bahan pertimbangan untuk mengubah sistem pembayaran karena sesuai hasil simulasi dapat memaksimalkan jumlah pendapatan . Lokasi penelitian di unit rawat inap, rumah sakit islam surabaya, diharapkan dari hasil pemodelan simulasi bisa dijadikan sebagai gambaran atau acuan bagi manajemen puncak rumah sakit dalam mengambil sebuah keputusan sebagai strategi bisnis. AbstractHospital development in Indonesia has increased, from 2012 to 2018 has increased by an average of 5.2%.. Of course this has an impact on more competitive competitiveness. Indonesian government policy that requires hospitals to work closely with the National Health Insurance (JKN) in order to equalize health services affects the amount of revenue. The fact is that BPJS Health insurance has a very large budget deficit. Hospital management must find the right strategy and policy in an effort to maximize revenue, especially in the JKN era. Limiting the number of visits is not possible considering that most patients come from BPJS Health participants. The purpose of this study was to find the right policies and solutions for hospital to obtain financial benefits in the health insurance budget deficit. Important information makes hospital management strive to utilize information technology as media for designing business strategies, computer simulations such as dynamic system modeling can describe and simulate real systems that refer to data, so that stakeholders can predict conditions that can occur in the future. The results showed that by changing the payment system from Fee For Services to INA - Case Base Groups can provide more benefits for hospital, this is because the rates set adjust to hospital rates throughout Indonesia. Another finding that needs to be considered is that the insurance receivables have increased, of course it needs more attention, and can be taken into consideration to change the payment system because according to the simulation results can maximize the amount of income. The location of research in the inpatient unit, Surabaya Islamic hospital, is expected from the results of simulation modeling can be used as an illustration or reference for top management of the hospital in making a decision as a business strategy.

Download Full-text

Faktor-faktor Penentu Keberhasilan Usaha Kecil dan Menengah (UKM) di Kota Yogyakarta

Jurnal Maksipreneur Manajemen Koperasi dan Entrepreneurship ◽

10.30588/jmp.v6i1.282 ◽

2016 ◽

Vol 6 (1) ◽

pp. 24

Author(s):

Eny Sulistyowati ◽

Nining Sofiati Lestari

Keyword(s):

Business Strategy ◽

Urban Areas ◽

Business Performance ◽

Business Strategies ◽

Direct Influence ◽

Performance Variables ◽

Independent Variable ◽

Medium Businesses ◽

The City ◽

Variable Performance

This research was conducted with the aim to explain the influence of the characteristics of the owner/manager of the business strategy, describes the influence of business strategy on business performance, explaining the influence of the characteristics of the owner/manager of the business performance. Variables used in this research is variable owner/manager, business strategy (independent variable) and variable performance or Small Bussinis Performance (dependent variable). The results obtained show that a direct influence on the performance characteristics of the manager of small and medium businesses in the city of Yogyakarta strong with R2 values of 0.224, or 22.4%, the effect of business strategies on business performance of small and medium businesses in urban areas with R2 values of 0,049 or 4.9%. Meanwhile, indirectly influence the characteristics of managers' business performance through business strategy in the city of Yogyakarta only has value R2 value of 0.080 or 8.0%.

Download Full-text