scholarly journals Stakeholder Engagement and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

2020 ◽  
Vol 9 ◽  
pp. 446-458
Author(s):  
Obey Dzomonda ◽  
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Stakeholder Engagement ◽  
Longitudinal Design ◽  
Case Study Research ◽  
Research Approach ◽  
Tobin’S Q ◽  
Analysis Model ◽  
Tobin's Q ◽  
Sustainability Initiatives

Attaining sustainable development will remain an elusive agenda if there is no effective stakeholder engagement. All stakeholders need to come on board to share and collaborate on environmental sustainability initiatives. This study investigated the relationship between stakeholder engagement and financial performance. The study area of this study was all FTSE/JSE listed firms. The researcher opted for a quantitative research approach and used a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011-2018. The sample of this study was 32 firms listed on the FTSE/JSE Responsible Investment Index. This resulted in 256 observations for the period under consideration. This study utilised secondary data, which is annual financial statements of firms listed on the JSE. Stakeholder engagement was the independent variable while the financial performance as measured by the Tobin’s Q was the dependent variable. Quantitative content analysis was used to collect data related to stakeholder engagement. Data was analysed using Panel regression analysis model. The Fixed and Random effects models were used to analyse data. The Hausman test was used to evaluate the appropriate model. The findings showed a positive but insignificant relationship between stakeholder engagement and financial performance as measured by Tobin’s Q. This suggested that stakeholder engagement does not predict market valuation of the firm. It was deduced that probably the concerned firms are sending weak signals to key stakeholders regarding their genuine commitment towards environmental sustainability initiatives. Recommendations were made for firms to send strong signals to investors which clearly show that they are genuinely committed towards environmental sustainability initiatives.

scholarly journals Sustainable Environmental Practices and Financial Performance Relationships. Are they moderated by Cash Resources? Evidence from Alternative Investment Market in the UK

2020 ◽  
Vol 5 (1) ◽  
pp. 14-29
Author(s):  
Danquah Jeff Boakye ◽  
Gabriel Sam Ahinful ◽  
Randolph Nsor-Ambala
Keyword(s):  
United Kingdom ◽  
Financial Performance ◽  
Environmental Sustainability ◽  
Least Square ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Environmental Practices ◽  
The United Kingdom ◽  
The Uk ◽  
Alternative Investment

This paper examines how cash resources affect the sustainable environmental practices and financial performance of firms listed on the Alternative Investment Market (AIM) in the United Kingdom (UK). The study adopts Ordinary Least Square (OLS) regression model on 201 quoted Small and Medium Enterprises (SMEs) on the UK Alternative Investment Market (AIM) from 2011 to 2016. Consistent with our predictions and confirms with the assertions of the resource-based view, the study documents that cash resources have a positive impact on sustainable environmental practices and financial performance relationships. However, the direction of the regression coefficient was not the same for accounting (ROA) and market-based (Tobin’s q) measures of financial performance. Whereas the moderating impact between cash resources and sustainable environmental practices for ROA was negative, the relationship was positive in the case of Tobin’s q. The study, therefore, concluded that where excessive cash are employed in the management and implementation of environmental sustainability, the financial returns may not be favourable. However, efficient utilisation of cash resources may positively impact on sustainable environmental practices and financial performance relationships. The study also documented that unconstraint firms have a higher probability of benefiting financially from environmental sustainability measures than cash constraint firms. Citation: Danquah Jeff Boakye1, Gabriel Sam Ahinful2 and Randolph Nsor-Ambala3. Sustainable Environmental Practices and Financial Performance Relationships. Are they moderated by Cash Resources? Evidence from Alternative Investment Market in the United Kingdom., 2020; 5(1): 14－29. Received: (February 15, 2020) Accepted: (March 31, 2020)

scholarly journals The Influence of Founder Status on Firm Performance: Empirical Evidence from Canadian IPO Firms

2016 ◽  
Vol 8 (11) ◽  
pp. 134 ◽  
Author(s):  
Saif Ullah ◽  
Dan Zhang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Firm Survival ◽  
Negative Influence ◽  
Performance Measure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Survival Status ◽  
Income Stream

<p>This study compares performance for founder-managed firms and professional-managed firms by analyzing 138 Canadian IPO firms that went public from 2004 to 2013. In this paper, we measure firm performance in two ways: Tobin’s Q and ROA are used to measure a firm’s financial performance, while firm survival status is used as a supplementary performance measure. We find that founder-managed firms underperform and underlive their counterparts when firm performance is measured by Tobin’s Q and survival status. Founder status is proved to be unrelated to ROA. The negative influence of founder status can be explained by the relevant transaction hypothesis, which states that founder-managers may act for the controlling family and are more concerned with the associated private income stream than with maximizing the value of the firm.</p>

scholarly journals Effects of Infrastructure Development, Inflation and Economic Growth to Performance Company (ROA, Tobin's Q, PBV): Study on Registered Infrastructure Support Companies in IDX Period 2014-2019

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Eko Sarjono ◽  
◽  
Kartika Hendra Titisari ◽  
Supawi Pawenang
Keyword(s):  
Economic Growth ◽  
Performance Measurement ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Infrastructure Development ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
The Impact

The financial performance can be used as a benchmark of the ability of an organization or company in achieving its goals. Performance measurement is one of the most important factors for an organization or company, performance measurement is a process of measuring the extent to which a company does work to achieve its goals. The research investigated the impact of infrastructure, economic growth and inflation on financial performance of infrastructure support companies listed in Indonesian Stock Exchange Period 2014-2019 which is proxied by ROA (Return on Assets), Tobin’s Q and PBV (Price to Book Value). The population of this research was the infrastructure support companies listed on the Indonesian Stock Exchange period 2014-2019. Research sampling was conducted using The Purposive Sampling Method. The data analysis was camed out using classical assumption test, multiple linear regression analysis, t-test, F-test and determinan (R2) test with SPSS 21. The research finding showed that the model has an effect on the financial performance as proxied by ROA. So the results of the hypothesis test show that: (1) Infrastructure development has a negative and significant effect on ROA. (2) The inflation rate has a positive and significant effect on ROA. (3) Economic growth has no significant effect on ROA. Meanwhile, the model has no effect on financial performance which is proxied in Tobin's Q and PBV.

scholarly journals Income Diversification and Financial Performance of Selected Deposit Money Banks in Nigeria

2021 ◽  
Vol 8 (1) ◽  
pp. 1-17
Author(s):  
Emmanuel Uniamikogbo ◽  
Emma I. Okoye ◽  
Arowoshegbe O. Amos
Keyword(s):  
Financial Performance ◽  
Foreign Exchange ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Firm Age ◽  
Income Diversification ◽  
Tobin's Q ◽  
Negative Effect

This study examined the effect of income diversification on financial performance of deposit money banks (DMBs) in Nigeria. Variables considered were commission, foreign exchange incomes, and firm age, which are proxies for income diversification and financial performance proxied by Tobin's Q ratio. The purposive sampling technique was used to select the 8 banks classified by Central Bank of Nigeria to be Domestic Systematically Important Banks in Nigeria. Data collected from the annual reports and the Nigerian Stock Exchange website for a period 2008-2018 were used. Statistical tools used were the descriptive statistics and econometric analysis using the panel data. Findings showed that while commission income has a significant positive effect on Tobin's Q ratio of DMBs, foreign exchange income and firm age each have a significant negative effect on Tobin's Q ratio of DMBs in Nigeria. It is recommended that banks in Nigeria minimize their income from foreign exchange to maximize performance since income from these transactions tend to inhibit bank financial performance.

Organisational Culture and Environmental Performance of Hospitality Firms in South Africa

2019 ◽  
Vol 10 (3) ◽  
pp. 575 ◽  
Author(s):  
Olawale FATOKI
Keyword(s):  
South Africa ◽  
Environmental Sustainability ◽  
Environmental Performance ◽  
Structural Equation ◽  
Quantitative Research ◽  
Organisational Culture ◽  
Research Approach ◽  
Hospitality Sector ◽  
Sustainability Initiatives ◽  
The Impact

The purpose of the study is to investigate the impact of organisational culture on firm environmental performance in the context of the hospitality sector. The study used the quantitative research approach with descriptive and causal research design. The Denison organisational culture questionnaire was used to measure organisational culture. The Denison questionnaire contains four traits namely involvement, consistency, adaptability and mission. The questionnaire was distributed among 500 owner/managers of formal hotels and guest accommodations in South Africa. Data gathered were analysed using descriptive statistics and structural equation modelling. The results of the study indicate that the four traits of organisational culture (involvement, consistency, adaptability and mission) have significant positive impacts on the environmental performance of firms in the hospitality sector. The findings of the study can assist firms in the hospitality sector to understand the significance of internal intangible factors such as the organisational culture in the implementation of environmental sustainability initiatives.

scholarly journals PENGARUH KRISIS MONETER PADA KINERJA KEUANGAN DAN NILAIPERUSAHAAN

2009 ◽  
Vol 9 (1) ◽  
pp. 34
Author(s):  
Nelli Novyarni
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Tobin’S Q ◽  
Corporate Value ◽  
Manufacturing Companies ◽  
Tobin's Q ◽  
Financial Ratio ◽  
Before And After ◽  
Equity Ratio ◽  
Monetary Crisis

<p><em>This study was aimed analyzing the monetary crisis on financial performance </em><em>and corporation value effect.This study found that the monetary crisis affect </em><em>on financial performance and corporation value. The study on 50 </em><em>manufacturing companies consist of 25 companies variety business and </em><em>industry and pharmacist notes at Jakarta Stock Exchange from 1992 to 2002 </em><em>revealed that the monetary crisis cause decrease in financial performance and </em><em>corporate value. Based on before and after mean financial and Tobin 's Q ratio, </em><em>it found that the monetary crisis cause decrease in financial performance </em><em>especially in 1998 and corporation value from 1998 to 2002. This study also </em><em>found that based on each sector, the monetary crisis affect all financial ratio at </em><em>sector one, especially in 1998 and 2000 and the monetary crisis just affect debt to equity ratio from to 2002 at sector two. Beside <strong>that the </strong>monetary crisis affect </em><em>corporation value of all sectors.</em></p><p><strong><em>Keywords:  </em></strong><em>Monetary crisis; financial ratio;   Tobin's  Q;  Financial Performance; Value of the firm.</em></p>

scholarly journals Pengaruh Manajemen Laba Akrual dengan Pendekatan Revenue Discretionary Model terhadap Kinerja Perusahaan

TRIKONOMIKA ◽  
2014 ◽  
Vol 13 (1) ◽  
pp. 108
Author(s):  
Sepriahangga Wahyu Windharta ◽  
Nurmala Ahmar
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
Research Approach ◽  
Tobin’S Q ◽  
Manufacturing Companies ◽  
Tobin's Q ◽  
Revenue Model ◽  
Revenue Models

Accrual earnings management is a form of manipulation of financial statements on the accrual components to increase its profit in order to look good in the investors perception. This research approach discretionary  revenue published by Stubben in 2010 with two different formulas are conditional revenue models and revenue models to measure the accrual earnings management to be proxies to the performance of the company. The purpose of this study was to analyze the effect of accrual earnings management by discretionary revenue approach on firm performance in manufacturing companies listed on the Stock Exchange. The Results of analysis for this study were 1) Accrual earnings management is measured using a Revenue Model does not affect the Return On Asset. 2) Accrual earnings management is measured using a Revenue Model does not affect the Tobin’s q. 3) Accrual earnings management is measured using a Conditional Revenue Models effect on the Return On Asset. 4) Accrual earnings management is measured using a Conditional Revenue Models has no effect on Tobin’s q.

scholarly journals The Effect of Diversity in Board of Directors to Financial Performance: Evidence in Indonesia

2020 ◽  
Vol 7 (1) ◽  
pp. 76-84
Author(s):  
Yasmin Ridwan Putri ◽  
Dwi Nastiti Danarsari
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Empirical Result ◽  
Fixed Effect ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
The Board Of Directors ◽  
Conventional Banks

This paper aims to examine whether diversity in gender, nationality, and age in the board of directors of banks in Indonesia could affect the financial performance of those banks. We used conventional banks’ data in Indonesia in the year of 2014 to 2018 as a sample of this research. Based on the empirical result using fixed effect approach and the Generalized Methods of Moment (GMM) analysis, we find that diversity in gender in the board of directors does not affect the performance of banks in Indonesia. This could be the result of the little amount of female representative in the board of directors. In contrast diversity in age and diversity in nationality in the board of directors has an effect to the financial performance of banks in Indonesia. We used two measurement to represent financial performance in this study, which are measured by Tobin’s Q that represent measurement based on market and Return on Asset (ROA) that represent measurement based on accounting.

scholarly journals Corporate governance and financial performance of listed companies: A case of an emerging market

2021 ◽  
Vol 5 (3) ◽  
pp. 8-17
Author(s):  
Emmanuel Selase Asamoah ◽  
Albert Puni
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicator ◽  
Stock Exchange ◽  
Emerging Market ◽  
Target Population ◽  
Governance Structure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
A Performance

Corporate financial performance (CFP) is a key benefit that comes with the adoption and implementation of a good corporate governance structure in organizations. The objective of this paper is to analyze the effect of the six (6) broad corporate governance structures (board composition, board committees, separation of CEO/chairman, size of board, number of board meetings held, and shareholder concentration) on CFP measured by ROA, ROE, EPS, and Tobin’s Q among Ghanaian companies. The target population for the study was the companies that were listed on the Ghana Stock Exchange (GSE) for the period 2015–2020 and purposive sampling methods were deployed in the sample selection. The study found that using ROA as a performance indicator, corporate governance variables affected CFP by 18.95% whilst it influenced ROE by 29.71%. Additionally, corporate governance mechanisms impacted EPS by 52.53% when it was used as a performance indicator and 18.01% when Tobin’s Q was the performance index. The paper concludes that companies that implement the corporate governance guidelines on best practices stand a better chance of enhancing CFP especially with performance targets that integrate shareholder value maximization.

scholarly journals Ownership structure and corporate financial performance in Bahrain bourse

2015 ◽  
Vol 13 (1) ◽  
pp. 419-434 ◽  
Author(s):  
Reem Khamis ◽  
Wajeeh Elali ◽  
Allam Hamdan
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Institutional Ownership ◽  
Common Type ◽  
Corporate Financial Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Ownership Structures ◽  
Different Types ◽  
Different Dimensions

The study aimed at investigating the relation between different types of ownership structures and corporate financial performance. The study sample was 42 companies from all sectors listed in Bahrain Bourse in the period of 2007-2011. Different dimensions of ownership structure were put under scope and two different measurements of financial performance were used (Tobin’s Q and ROA) evaluate the different results from using each one of them, which will help in justifying the conflicting results found by previous studies. Another objective of this study was to explore the patterns of ownership structure found in Bahraini market. It was found that institutional ownership is the most common type of ownership in Bahrain Bourse. The study’s results were conflicting regarding the effect of ownership structure on financial performance using both measurements of performance. It was also found that ROA represents financial performance more that T’Q.

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