scholarly journals MINING RISK-RELATED SENTIMENT IN CORPORATE ANNUAL REPORTS AND ITS EFFECT ON FINANCIAL PERFORMANCE

2020 ◽  
Vol 26 (6) ◽  
pp. 1422-1443
Author(s):  
Renáta Myšková ◽  
Petr Hájek
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Positive Impact ◽  
Early Warning Systems ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Managerial Communication ◽  
Word Lists ◽  
Corporate Annual Reports

Models that predict corporate financial risk are important early-warning systems for corporate stakeholders. Most models to date have been developed using financial indicators. However, in financial decision-making, increasing attention is being paid to the role of textual information, which may provide additional insight into managerial opinions and intentions and which has recently been used to more effectively predict corporate financial performance. Previous approaches in this regard have predominantly focused on sentiment analysis of managerial communication. However, the role of context-related sentiment remains poorly understood in the financial risk domain. Here, we investigate how risk-related sentiment in verbal managerial communication might predict corporate financial performance, including indebtedness, profitability, market value and bankruptcy risk. To ensure deductive content validity, we propose specific word lists for each type of corporate financial risk and assign each word with positive / negative labels. Our findings provide evidence for a major role of risk-related sentiment as an indicator of corporate performance in terms of financial risks. Notably, using novel risk-related word lists in regression models, we show that a proactive and opportunity-seeking risk management has a significantly positive impact on financial performance, implying that stakeholders should carefully consider the risk-related managerial communication in corporate annual reports.

scholarly journals Peran Islamic Corporate Social Responsibility dalam Memoderasi Pengaruh Zakat Terhadap Kinerja Bank Umum Syariah

2021 ◽  
Vol 9 (1) ◽  
pp. 73-89
Author(s):  
Sartini Wardiwiyono ◽  
◽  
Arty Fitria Jayanti ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Annual Reports ◽  
Observation Data ◽  
Islamic Banks ◽  
Corporate Social

The aim of this study is to investigate the role of Islamic Corporate Social Responsibility in moderating the effect of zakat on Islamic commercial banks’ financial performance. Out of 13 Islamic commercial bank listed by Otoritas Jasa Keuangan from 2012 to 2017, there were only five banks reporting Statement of Zakat Fund Sources and Disbursements. Hence, the final samples of this study consist of 30 observation data. Secondary data collected from 30 annual reports were gathered through documentation. This study utilizes moderated regression analysis to test three research hypotheses. The results shows several findings. Firstly, the amount of corporate zakat being reported in the Statement of Zakat Fund Sources and Disbursements has positive impact on Islamic banks’ financial performance. Secondly, Islamic CSR as measured by Islamic reporting index developed by Belal et al. (2015) has negative impact on Islamic Banks’ financial performance. Thirdly, the role of Islamic CSR in moderating the effect of zakat on financial performance was confirmed.

Does structural capital count in human capital-corporate financial performance relationship? Evidence from deposit money banks in Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nnachi Egwu Onuoha
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Significant Positive Effect ◽  
Content Type ◽  
Mediating Role ◽  
Structural Capital ◽  
Positive Effect

Purpose The purpose of this paper is to explore human capital and corporate financial performance link from the perspective of human capital theory, resources-based view and balanced score card approach, and the mediating role of structural capital in this relationship. Design/methodology/approach Overall, a data set was drawn from five-year annual reports of deposit money banks (DMBs) in Nigeria. Additionally, the bootstrap procedure was performed to test the mediating role of structural capital. Findings Specifically, the paper results indicate that whereas human capital has significant positive effect on corporate financial performance and structural capital, structural capital has significant positive effect on corporate financial performance. Additionally, the study finds structural capital to mediate the effect of human capital on organizational financial performance. Research limitations/implications This paper focused on 12 DMBs in Nigeria and their five year annual reports. Accordingly, future studies in this area should increase the number of banks and years, and include firms operating in insurance, manufacturing, telecommunication and oil and gas industries to permit comparability of results and broader basis for generalizability. Moreover, the study results provide insights that would serve as robust empirical basis for policy makers to insist on enhancement of the value of human and structural capital variables. Practical implications The managers of DMBs should commit to development of their employees through improvement in their training and health programs, among others. Also, they should ensure continuous improvement of their structural capital to enable the investments in their employee to translate to enhanced corporate financial performance. Originality/value To the best of the author’s knowledge, this is the first study to explore the mediation effect of structural capital on the human capital-corporate financial performance link using evidence from DMBs in Nigeria and, thus, extends and deepens extant literature on human capital-organizational performance nexus.

scholarly journals Impact of Corporate Environmental Responsibility on Firm’s Financial Performance: Moderating Role of Organizational Slack and Industry Competition

2022 ◽  
Vol 8 (2) ◽  
pp. 76-92
Author(s):  
Muhammad Amir ◽  
Naveed Iqbal ◽  
Sheeza Tahir
Keyword(s):  
Financial Performance ◽  
Moderating Effect ◽  
Annual Reports ◽  
Environmental Responsibility ◽  
Corporate Financial Performance ◽  
Organizational Slack ◽  
Corporate Environmental Responsibility ◽  
Industry Competition ◽  
Data Validity

Due to speedy trade and industry expansion in the emerging economies it is creating stern environmental corrosion. Effluence makers’ enterprises are mostly responsible for environmental deterioration. Therefore, it is the responsibility of those firms to take steps to control this corrosion in the environment. This research explains the effect of corporate environmental responsibility (CER) on corporate financial performance (CFP) with the moderating effect of organizational slack and industry competition. Data was collected from annual reports of 50 KSE 100 index companies from 2012-2019, containing total 450 observations. Dynamic penal model was used to test the study hypothesis by using Eviews, different pre and post estimations are applied to confirm the data validity.  Empirical results indicate that corporate environmental responsibility has significant positive effect on corporate financial performance, while the moderating effect of organizational slack is negative. Industry competition has significant positive moderating effect on the relationship, i.e., if there is high competition in industry then firms will invest more in environment to attract more consumers and to create good will in market. The study reveal that those firms will lead where competition is high and who will focus on their responsibility towards environment.

scholarly journals Power Imbalance and the Dark Side of the Captive Agri-food Supplier–Buyer Relationship

2021 ◽  
Author(s):  
Richard Glavee-Geo ◽  
Per Engelseth ◽  
Arnt Buvik
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Dark Side ◽  
Curvilinear Relationship ◽  
Power Imbalance ◽  
Negative Consequences ◽  
Key Informants ◽  
Economic Satisfaction

AbstractThis paper highlights the dark side of power imbalance regarding its consequences in agri-food supplier–buyer relationships. We report on findings from two studies. The first study is based on a sample of 105 key informants, while study 2 is based on a sample of 444 key informants, all from the cocoa agri-food supply market of Ghana. While the first study focuses on the antecedents of power imbalance and its consequences, the second study explores the role of cooperatives/collective action in minimizing supplier exploitation. Data from these studies were analysed using the partial least squares technique (SmartPLS). Analysis of these findings shows switching costs’ impact on power imbalance to be curvilinear, while power imbalance has a curvilinear relationship with opportunism. The negative consequences of power imbalance are further exacerbated by dependency and the lack of joint action. Furthermore, we found the negative impact of power imbalance on financial performance to be stronger for non-cooperative members than for cooperative members, while, counterintuitively, we found the positive impact of economic satisfaction on financial performance to be stronger for non-cooperative members than for cooperative members.

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

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

<p align="center"><strong>Abstract</strong></p><p><em>The 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 &amp; Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange.</em> <em>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.</em></p><strong>Keywords:</strong> <em>Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance</em>.

scholarly journals Analyzing the Effect of Board of Commissioners’ Characteristics, Managerial Ownership, and Financial Performance on Financial Risk Disclosure

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Muhammad Syafwan Hady
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Control Variable ◽  
Secondary Data ◽  
Target Population ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Risk Disclosure ◽  
Independent Variables

<p>This study aims to examine the role of the board of commissioners’ characteristics, managerial ownership, and financial performance on financial risk disclosure. The target population of this study was sharia banks registered in the Indonesian banking directory in 2012-2016. This study used secondary data in the form of annual financial statements obtained from the source sites of each bank. Using purposive sampling, 11 sharia banks in Indonesia were selected as the appropriate sample. This study employed a scoring technique to measure the level of financial risk disclosure. The results show that the independent variables including the board of commissioners size, independent board of commissioners proportion, profitability, and size as the control variable significantly influenced the variable of FRD. However, the variable of CAR, FDR, and managerial ownership had no effect on financial risk disclosure. The result of F test showed that independent variables included in the regression model simultaneously affected the dependent variable.</p>

Business sustainability performance and corporate financial performance: the mediating role of optimal investment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ehsan Poursoleyman ◽  
Gholamreza Mansourfar ◽  
Saeid Homayoun ◽  
Zabihollah Rezaee
Keyword(s):  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Corporate Financial Performance ◽  
Investment Efficiency ◽  
Content Type ◽  
Business Sustainability ◽  
Large Sample ◽  
Sustainability Performance ◽  
Mediating Role

PurposeEmploying a large sample consisting of 3,701 corporations domiciled in developed and emerging countries, this paper aims to analyze the mediating role of investment efficiency in the association between business sustainability performance and corporate financial performance.Design/methodology/approachFour different aspects of corporate sustainability offered by the ASSET4 database are used as proxies for business sustainability performance, including economic, corporate governance, social and environmental dimensions. In addition to these aspects, the aggregate measure of business sustainability performance is also employed. In order to test the association between business sustainability and corporate performance via investment efficiency, ordinary least squares, fixed-effect, random-effect and generalized method of moments statistical models were employed.FindingsThe results suggest that business sustainability performance is positively associated with corporate financial performance, indicating that sustainable corporations enjoy higher financial performance. Moreover, Sobel, Aroian and Goodman tests confirm that investment efficiency mediates the positive relationship between business sustainability performance and financial performance. Finally, further analyses show that the positive association between sustainability performance and investment efficiency is stronger for those firms headquartered in developed countries than in those located in emerging nations.Originality/valueThis paper contributes to the literature by investigating how growth opportunities advance the influence of business sustainability to corporate financial performance using a large sample from 43 countries.

Sign in / Sign up

Export Citation Format

Share Document