scholarly journals Nexus of Political Connections with Green Financial Development and Fiscal Performance

2022 ◽  
Vol 3 (1) ◽  
pp. 4-8
Author(s):  
Luwen Zhang

Green finance is an important guarantee to promote the development and structural transformation of green industries in China and is also the power source to implement the concept of green development during the "13th Five-Year Plan". The development of green finance is inseparable from the support of financial and taxation policies. Based on this background, there is a certain connection between green finance and corporate values. When companies strengthen their political relations, there will be certain positive and negative effects on the company's future development. Green development should be the goal, and the financial and tax performance of companies should be enhanced in strengthening the development of green finance. The most important thing for companies, regardless of the industry, is to interact with the government to improve their development goals and performance, maintain their rights and interests through political relations and policies, and obtain government support to achieve sustainable development of the company. Therefore, this study focuses on the political relationship between green finance development and financial performance and examines the intervention of political ties on corporate green investment and corporate performance. The results confirm that politically connected companies have more resources and protect the natural environment while improving their financial performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rizwan Ullah ◽  
Habib Ahmad ◽  
Fazal Ur Rehman ◽  
Arshad Fawad

PurposeThe aim of this research is to understand how government incentives (financial and non-financial) influence the relationship between green innovation and Sustainable Development Goals (SDGs) in SMEs.Design/methodology/approachTo contribute to the literature, this research uses empirical evidence of 204 Pakistani small and medium-sized enterprises (SMEs) and tests the moderating role of government support between green innovation and SDGs.FindingsThe findings indicate that green innovation has a significant influence on SDGs, community development and environmental activities. The government support significantly strengthens the relationship between green innovation and environmental practices, while it does not moderate the path between green innovation and community development.Practical implicationsThe research recommends SMEs focus on the adoption of green innovation and green technology to protect the environment and facilitate the community. Moreover, the research advises the government to assist SMEs financially and nonfinancially, so they will in turn help in the attainment of SDGs.Originality/valueThis research is the first attempt to assess the importance of green innovation in SDGs with a moderating role of government incentives in emerging SMEs. It provides several useful implications for policymaking.


2016 ◽  
Vol 7 (2) ◽  
pp. 198
Author(s):  
Dwi Apriyanto

The objective research is to obtain information on the effect of government support, political conditions and business competition in order to improve the performance of construction services company. Survey research methodology used survey. Data collection done toward 133 respondents. Respondent were chosen by simple random sampling technique. The data were collected with questionnaire and analysis with multiple regression. The results of the analysis concluded that the government support, political conditions and business competition have influence by direct or indirect on the performance of construction services company. The hypothesis is proven by indicators of significance of the influence between variable that more than (<) α = 0,05 and also the result of T-test that T count more than (>) T table., the most dominant variable is political conditions in influencing the performance of construction services company with significance value of 0.000.   Keywords : Government support, Political condition, Business competition, and Performance of the company.


2020 ◽  
Vol 12 (15) ◽  
pp. 6222
Author(s):  
Syeda Sonia Parvin ◽  
Belayet Hossain ◽  
Muhammad Mohiuddin ◽  
Qingfeng Cao

Capital structure plays an important role in organizational performance. Sources of funds for micro-finance institutions (MFIs) and their performance and financial sustainability become an important topic for the MFIs and poverty alleviation initiatives to achieve sustainable development goals of the UN. We explored the following question: Does the financial structure in terms of financial leverage affect the financial performance: Financial sustainability, depth, and breadth of outreach of MFIs? Our research focuses on studying the relationship between capital structure and financial performance of micro-finance institutions as well as achieving the objectives of this program by reaching out to the deserving clients without collaterals. A dataset of 187 MFIs is used to establish the relationship between the capital structure and performance of MFIs. Panel data regression analysis has been used for this study using the Random effect and Fixed effect models. Return on Asset (ROA), and Net Income to Expenditure (NIER) have been used as measures of financial performance. The findings indicate that Equity to Asset Ratio (EAR), Debt to Loan Ratio (DTL), Risk, and Size are the factors that influence NIER. Furthermore, EAR, and DTL have a positive effect on ROA, and Risk has a negative effect. The findings of this study will enable MFIs to configure their capital structure by creating a portfolio of sources of their capital from market-based sources of funds that can maximize their financial performance and reach out to poor clients without collaterals.


2020 ◽  
Vol 44 (6) ◽  
pp. 1199-1228 ◽  
Author(s):  
Ronald S. Burt ◽  
Sonja Opper

Political connection in China is often tested for correlation with business success and government support under a suspicion that connected entrepreneurs enjoy special favors and protection. Research evidence is mixed. In revisiting the debate on political capital in China, we apply a socially embedded perspective on political connection. To this end we introduce two methodological innovations: (a) We develop a broader measure of political connectedness that covers the continuum from political connection to disconnection. (b) We integrate data on political connection with social network data. Specifically, we explore how the social structure around the individual entrepreneur affects performance above and beyond the often tested association between political ties and performance. We draw two conclusions: (1) The success association with political connection is discontinuous. Advantage is less for entrepreneurs weakly connected politically, but significant additional disadvantage arises for the politically disconnected. (2) The additional is that entrepreneurs disconnected from government show no benefit from having an advantaged business network. The politically connected with an advantaged business network show more prosperous business, higher returns on assets, and more likely survival over time. The politically disconnected show none of these benefits. We caution the entrepreneur who plans to ignore the government.


2017 ◽  
Vol 17 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Agus Wahyudin ◽  
Badingatus Solikhah

Purpose The purpose of this paper is to investigate the effect of corporate governance (CG) implementation rating conducted by the Indonesian Institute for Corporate Governance (IICG) on the financial performance of the selected companies. Design/methodology/approach This paper is a hypothesis testing study to analyze CG implementation of 88 firms listed on the Indonesian Stock Exchange. The samples are companies that participated in the Corporate Governance Perception Index (CGPI) Awards in 2008-2012. A panel data regression analysis is conducted on the data collected from IICG reports and its financial statements. Findings The awareness regarding good corporate governance (GCG) enforcement in Indonesian companies has already increased. The listed companies that participated in CGPI Awards during 2008-2012 always experience an increase in both quantity and quality. CG rating of go-public companies in Indonesia affects their accounting-based financial performance, such as return on assets, return on equity and earnings per share. However, CG implementation rating is not directly responded by the Indonesian stock market and has not yet been able to increase the company’s growth in the short term. Research limitations/implications In this study, CGPI rating in a related year is linked to market performance in the same year. Thus, further research may link CGPI rating to market performance in the next year, as the findings of this study show that GCG implementation is not directly responded by the market. Practical implications GCG implementation is required by stakeholders, as it may give a long-term positive impact. Thus, the government needs to stipulate regulations to increase the commitment of the company in implementing GCG. The company can improve the internal factors of the organization that does not support the establishment of GCG based on the findings during the survey of CGPI. Finally, investors and creditors may consider the CGPI rating for their investment decisions. Originality/value This study contributes to the literature in two ways. First, this study uses the comprehensive CG rating in Indonesia. Previous studies on CG rating focused on internal mechanism; in this study, the rating was assessed using four stages of continuous assessment: self-assessment, document evaluation, paper assessment and company visit, which was conducted by an independent team. Second, this study uses the CG index (compliance, conformance and performance) associated with a variety of accounting-based and market-based performance variables: financial performance, market value and growth.


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Herri Yusfi ◽  
Destri Ani ◽  
Destri Ana

This study aims to 1) evaluate the KONI Regional Training Program of the South Sumatra Province Fencing Sports Program, 2) evaluate the KONI management, IKASI management, athletes, coaches and assistant coaches, facilities and infrastructure, and government support for the training center of KONI Province of South Sumatra , 3) evaluating the implementation of coaches and athletes selection, athlete coaching, training programs, pre-work evaluation and coordination of Puslatda South Sumatra programs, and 4) evaluating the success of the South Sumatra Puslatda Anggar program. This study is a program evaluation study using the CIPP method using a quantitative qualitative approach. The population of this study was Puslatda Anggar KONI South Sumatra. Data collection techniques are observation, in-depth interviews, documentation, and data triangulation. This study produces 1) Context less, 2) Sufficient Input 3) Good Process 4) Enough. This study concludes that 1) Development Program that is not clear from PELTI in improving athlete performance, 2) Input of the fencing area training program program is still lacking in the process of selecting athletes, coaches, assistant coaches and minimal funding from the government, 3) Training program process which runs well, according to the schedule and performance of the trainers, 4) Product Program Guidance training for the Fencing area has not been able to show the results that are very good at the West Java PON level


2018 ◽  
Vol 10 (7) ◽  
pp. 2441 ◽  
Author(s):  
Liliana Avelar-Sosa ◽  
Jorge García-Alcaraz ◽  
José Mejía-Muñoz ◽  
Aidé Maldonado-Macías ◽  
Giner Hernández

The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and market Proximity are key elements to achieve a greater Agility in supply chains, considering the regional Infrastructure to determine the impact on Financial performance in manufacturing companies. The model is validated with data from a survey applied to 225 persons in 65 manufacturing companies located in Ciudad Juárez, Chihuahua, Mexico. The model is evaluated using partial least squares, and the findings indicate that there is a direct and positive effect from the Government on regional Infrastructure with a rate of 0.436. When the Government supports the availability of land, energy resources, transportation, telecommunications, mobile telephones, and other services, a positive change is achieved in the Infrastructure and supply chain Agility. Furthermore, the Government also has a direct and positive effect on the market Proximity at a rate of 0.171; consequently, the regional Infrastructure also has an effect on it. Similarly, the market Proximity directly and positively influences the supply chain Agility, as well as a company’s Financial performance at a rate of 0.506.


2020 ◽  
Vol 9 (1) ◽  
pp. 305-309

One of the most crucial aspects of the business environment is interaction with the government. Government entities have more chances to gain their gratifying targets for secular growth, monumental work, and sustainable development. We are trying to determine whether political connections are valuable for green corporate finance and corporate performance. Based on the prior literature, political ties have better sustainable development priorities and financial performance than non-politically connected firms. It is because they have sufficient resources to protect the natural environment, which eventually enhances financial performance. Our findings corroborate with the stewardship theory that states the empowered board is a better decision-maker. Our study has considerable implications for the research as it will enhance the knowledge about political ties.


2018 ◽  
Vol 62 (2) ◽  
pp. 97-107 ◽  
Author(s):  
Nina Keith

Abstract. The positive effects of goal setting on motivation and performance are among the most established findings of industrial–organizational psychology. Accordingly, goal setting is a common management technique. Lately, however, potential negative effects of goal-setting, for example, on unethical behavior, are increasingly being discussed. This research replicates and extends a laboratory experiment conducted in the United States. In one of three goal conditions (do-your-best goals, consistently high goals, increasingly high goals), 101 participants worked on a search task in five rounds. Half of them (transparency yes/no) were informed at the outset about goal development. We did not find the expected effects on unethical behavior but medium-to-large effects on subjective variables: Perceived fairness of goals and goal commitment were least favorable in the increasing-goal condition, particularly in later goal rounds. Results indicate that when designing goal-setting interventions, organizations may consider potential undesirable long-term effects.


2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.


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