scholarly journals The Risk and Performance of Ethically Compliant Investment

2020 ◽  
pp. 70-75
Author(s):  
Hidayah Bakar ◽  
Juliana Arifin ◽  
Norizan Remli
Keyword(s):  
Methodological Approach ◽  
Empirical Studies ◽  
Ethical Investment ◽  
Socially Responsible ◽  
Firm Level ◽  
Screening Criteria ◽  
Social Perspectives ◽  
Socially Responsible Investments ◽  
Prior Literature ◽  
And Performance

This paper presents a discussion of prior literature on the risk and performance of ethically compliant equity. This review of literature provides an organised evaluation of the available studies in ethical investment. In particular, this paper presents surveys of literature concerning shariah-compliant equity and socially responsible investments. The discussion of the literature synthesises the information in the respective studies into a summary. Each subsection provides an analysis of the information gathered by first providing an overview of the current empirical studies and, second, identifying gaps and showing the limitation of theoretical views in the existing studies. Discussion in previous literature emphases only one type of ethical investment, however, this paper, on the other hand, covers both the religious and social perspectives of ethics, which provide a more comprehensive view of ethics. The paper finds out that studies on the risk and performance of ethically compliant investment report mixed results. This is due to the disparities in the research methodological approach. However, it is almost unanimous that ethical funds demonstrate higher stability (lower risk) during the financial crisis and tend to outperform the conventional funds during this state of financial uncertainty. Future studies can conduct more firm-level analysis and integrates both screening criteria (shariah and socially responsible screening) to reconcile the results.   

scholarly journals Developments and challenges of measuring M&A performance on a corporate and macroeconomic levels

2017 ◽  
Vol 8 (2) ◽  
pp. 199
Author(s):  
Karolis Andriuskevicius ◽  
Remigijus Ciegis
Keyword(s):  
Empirical Studies ◽  
Value Added ◽  
Scientific Article ◽  
Methodological Framework ◽  
Firm Level ◽  
Performance Framework ◽  
Recent Developments ◽  
Business Cases ◽  
And Performance ◽  
A Performance

Research background: This study presents the results of the research which aimed to iden-tify and critically discuss existing methodologies in the merger and acquisition field. Value creation to merging and acquiring firms and national countries constitute the center of the research. This study distinguishes between specific methodologies employed to gauge M&A performance on a micro- (corporate) and macro- (economy and society) economic levels. The final section of the paper concludes with a theoretical methodological framework integrating methodologies employed to measure M&A performance on a firm level and methodologies measuring consequences and effects of M&A on the economy. The aim of the analysis described in the paper is to ascertain and evaluate theoretically existing methodologies used in empirical studies that would allow proper and critical understanding of the results of various findings in the holistic and global M&A area.Purpose of the article: The purpose of the paper is to investigate and critically discuss the methodologies employed within the M&A performance framework with the focus on specific anticipated outcomes of the M&A deal and methodology measuring this outcome. The following objectives are being raised: (1) To identify recent developments in the M&A market and determine challenges and changes they encompass; (2) To identify and critically discuss anticipated outcomes of the M&A deal and existing methodologies measuring M&A performance on the corporate level; (3) To identify and critically discuss anticipated outcomes of the M&A deal on the economy and methodologies measuring consequences and effects of M&As on the macro- economic level; (4) To integrate methodologies measuring M&As performance on a micro- and macro- eco-nomic levels into theoretical methodological framework enabling scholars and practitioners to evaluate M&A performance from a holistic perspective.Methods: Based on previous studies, the authors conduct a structured literature review aimed to critically discuss and evaluate developments and challenges of measuring M&A performance on corporate and macroeconomic levels. The research is carried out as a struc-tured assessment of past literature. The findings from scientific articles and studies by various scholars are being categorized, grouped and summarized to discern a meta‐analytic view of the work carried out to date. Finally, deep analysis of scientific literature, logical comparative analysis, systematization of scientific article and business cases are employed in the article.Findings & Value added: The paper evidences developments and challenges of measuring M&A performance on corporate and macroeconomic levels.  The re-search elaborates on several key developments in M&A methodology and performance studies carried out in empirical works during the last two decades. The findings help to independently and objec-tively assess performance of M&A from a holistic perspective.

Cross-impact of leverage and firm performance: developed vs frontier bank-based economies

2019 ◽  
Vol 45 (8) ◽  
pp. 982-1000 ◽  
Author(s):  
Sibanjan Mishra ◽  
Ranjan Dasgupta
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Empirical Studies ◽  
Order Theory ◽  
Simultaneous Equation ◽  
Equation Modeling ◽  
Firm Level ◽  
Content Type ◽  
The Cross ◽  
And Performance

Purpose The purpose of this paper is to investigate the cross-impact of leverage and performance for firms operating in the developed and frontier bank-based economies. Design/methodology/approach This study uses annual panel data for a sample of 400 firms over a period of 27 years from 1990 to 2016. The sample sample firms consist of developed, Germany, France and Japan, and frontier including Argentina and Sri Lanka bank-based economies firms. The authors employ a simultaneous equation modeling consisting of two equations estimated using the two-stage least squares procedure to examine the cross-relationships between leverage and performance after controlling for other firm-level variables like size, growth and liquidity. Findings The empirical results are presented in two sets. First, in the case of firms in the developed bank-based sample, the authors find a negative debt-to-performance relationship and a negative performance-to-debt relationship. This inconsistent negative debt–performance relationship implies that firms operating in these economies use debt beyond a threshold limit, which, in turn, increases agency issues between the managers and debt-holders, thereby influencing firm performance adversely. Second, for frontier economies firms, the authors find a positive debt-to-performance relationship in line with the “trade-off theory.” Furthermore, the authors find a negative performance-to-debt relationship for both sub-samples in line with the “pecking-order theory.” Originality/value The study is distinct from earlier empirical studies and contributes largely to the existing literature. First, it emphasizes whether financial leverage influences firm performance in bank-based economies as firms operating in such systems are exposed directly to the strict regulatory environment. Second, it investigates whether any reverse relationship emanating from firm performance to capital structure holds for firms of these countries. This issue, to the best of author knowledge, is unanswered in previous research, more specifically for developed and frontier bank-based economies. Moreover, the results are relevant, as firm managers, analysts and policymakers must consider the importance of such cross-debt-performance relationships, while determining the optimal capital structure, in the bank-based economies.

Performative Praktiken am Kapitalmarkt

2015 ◽  
Vol 59 (4) ◽  
Author(s):  
Sabuha Ilgaz ◽  
Hans-Martin Zademach
Keyword(s):  
Capital Market ◽  
Qualitative Data ◽  
Socially Responsible ◽  
Impact Investing ◽  
Responsible Investment ◽  
Rating Agencies ◽  
Socially Responsible Investments ◽  
Market Practices ◽  
And Performance

Performative capital market practices. The case of socially responsible investments in Germany. Socially responsible investment (SRI), also referred to as sustainable, responsible or impact investing, is an investment discipline that does not only take conventional financial criteria into account (most notably return, risk and liquidity), but also puts emphasis on environmental, social, governance (ESG) considerations to generate long-term competitive financial returns and positive societal impact. Key instrument in this market are so-called sustainability ratings which seek to assess the economic, environmental and social values and performance of potential investment objects. Such ratings are produced by a worldwide growing, but still limited number of private rating agencies that offer a dazzling variety of - in some cases even contradictory - ratings, rankings, indices and awards that have an enormous potential to influence investment decisions of all kind of investors. Applying a cultural geographies of economies approach, the paper in-hand aims to shed new light on this particular group of financial agents and their particular practices. It presents original qualitative data from Germany that delivers insights on the different ways these agencies follow in their assessments, how they define, operationalize and perform the notion of sustainability, and how effective they are in actually contributing to a more sustainable world.

scholarly journals Social Responsible Investments and Performance

2018 ◽  
Vol 10 (1) ◽  
pp. 10 ◽  
Author(s):  
Giuseppe Risalvato ◽  
Claudio Venezia ◽  
Federica Maggio
Keyword(s):  
Financial Markets ◽  
Corporate Responsibility ◽  
Investment Strategy ◽  
Socially Responsible ◽  
Ethical Finance ◽  
Socially Responsible Investments ◽  
Sustainable Finance ◽  
And Performance ◽  
Selection Of ◽  
Better Than

This research paper shows the growing power of the practices of sustainable finance in the financial markets. The socially responsible investments (SRI), defined as a strategy to select issuers on the basis of both ESG Corporate Responsibility that financial factors, are rising a growing amount of capital. In fact, between 2012 and 2015 the SRI global asset increased of 61%, amounting to 21.4 billion of dollars. The proliferation of ethical indices in the various financial centers of the world is related to a significant growth of assets managed according to an investment strategy that rewards socially responsible companies. After the financial crisis of 2007, ethical or sustainable indices have generally performed better than traditional indices, which they are derived through a selection of stocks that are subject to strict requirements, the author show the performance of ethical finance compared with those of the traditional sector.

scholarly journals Structural Relationship and Influence between Open Innovation Capacities and Performances

2018 ◽  
Vol 10 (8) ◽  
pp. 2787 ◽  
Author(s):  
Kwangsoo Shin ◽  
Eungdo Kim ◽  
EuiSeob Jeong
Keyword(s):  
Knowledge Management ◽  
Financial Performance ◽  
Technological Innovation ◽  
Open Innovation ◽  
Empirical Studies ◽  
Firm Level ◽  
Balanced Development ◽  
Absorptive Capacities ◽  
Managerial Implications ◽  
And Performance

Previous studies related to open innovation have presented piecewise implications in relation to various knowledge management capacities. The study published by Lichtenthaler and Lichtenthaler in 2009 presented a model that combines the various open innovation capacities of firms in view of a mix of knowledge management, dynamic capability and absorptive capacity. Despite these efforts, there have been few empirical studies on the relationships among capacities, or between capacities and performance from an integrated perspective. Therefore, this study seeks to clarify the relationships among knowledge capacities and between knowledge capacities, technological innovation and financial performance at the firm level. Our findings are that the transformative, connective, inventive and absorptive capacities both directly and indirectly affects technological innovation performance; and innovative and desorptive capacities are the key factors connecting technological innovation to financial performance. This study provides managerial implications for the balanced development of the various knowledge capacities and the improvement of technological innovation and financial performance for firm knowledge managers.

The reflexive turn in key account management

2014 ◽  
Vol 48 (11/12) ◽  
pp. 2071-2104 ◽  
Author(s):  
Markus Vanharanta ◽  
Alan J.P. Gilchrist ◽  
Andrew D. Pressey ◽  
Peter Lenney
Keyword(s):  
Empirical Studies ◽  
Negative Relationship ◽  
Success Rates ◽  
Key Account Management ◽  
Content Type ◽  
Account Management ◽  
Long Run ◽  
Key Account ◽  
And Performance ◽  
The Uk

Purpose – This study aims to address how and why do formal key account management (KAM) programmes hinder effective KAM management, and how can the problems of formalization in KAM be overcome. Recent empirical studies have reported an unexpected negative relationship between KAM formalization and performance. Design/methodology/approach – An 18-month (340 days) ethnographic investigation was undertaken in the UK-based subsidiary of a major US sports goods manufacturer. This ethnographic evidence was triangulated with 113 in-depth interviews. Findings – This study identifies how and why managerial reflexivity allows a more effectively combining of formal and post-bureaucratic KAM practices. While formal KAM programmes provide a means to initiate, implement and control KAM, they have an unintended consequence of increasing organizational bureaucracy, which may in the long-run hinder the KAM effectiveness. Heightened reflexivity, including “wayfinding”, is identified as a means to overcome many of these challenges, allowing for reflexively combining formal with post-bureaucratic KAM practices. Research limitations/implications – The thesis of this paper starts a new line of reflexive KAM research, which draws theoretical influences from the post-bureaucratic turn in management studies. Practical implications – This study seeks to increase KAM implementation success rates and long-term effectiveness of KAM by conceptualizing the new possibilities offered by reflexive KAM. This study demonstrates how reflexive skills (conceptualized as “KAM wayfinding”) can be deployed during KAM implementation and for its continual improvement. Further, the study identifies how KAM programmes can be used to train organizational learning regarding KAM. Furthermore, this study identifies how and why post-bureaucratic KAM can offer additional benefits after an organization has learned key KAM capabilities. Originality/value – A new line of enquiry is identified: the reflexive-turn in KAM. This theoretical position allows us to identify existing weakness in the extant KAM literature, and to show a practical means to improve the effectiveness of KAM. This concerns, in particular, the importance of managerial reflexivity and KAM wayfinding as a means to balance the strengths and weaknesses of formal and post-bureaucratic KAM.

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