This study examines how corporate governance and ownership structure relate to the financial performance of firms. We estimated this relationship using fsQCA. We enhanced our analysis using ...complementary linear and non-linear multiple regression analysis. The panel data used in this study covered 1207 companies from 59 countries across 19 sectors for the period 2013 to 2015. The study makes two main contributions. First, the multiple empirical techniques employed in this study offer a broader approach to the empirical analysis of financial performance. Second, the study aids our understanding of the role of corporate governance and ownership in the financial performance of firms.
Effects of innovation types on firm performance Gunday, Gurhan; Ulusoy, Gunduz; Kilic, Kemal ...
International journal of production economics,
10/2011, Letnik:
133, Številka:
2
Journal Article
Recenzirano
Innovation is broadly seen as an essential component of competitiveness, embedded in the organizational structures, processes, products and services within a firm. The objective of this paper is to ...explore the effects of the organizational, process, product and marketing innovations on the different aspects of firm performance, including innovative, production, market and financial performances, based on an empirical study covering 184 manufacturing firms in Turkey. A theoretical framework is empirically tested identifying the relationships amid innovations and firm performance through an integrated innovation-performance analysis. The results reveal the positive effects of innovations on firm performance in manufacturing industries.
The performance implications of innovation in small and medium-sized enterprises (SMEs) have attracted considerable interest among academics and practitioners. However, empirical research on the ...innovation–performance relationship in SMEs shows controversial results. This meta-analysis synthesizes empirical findings in order to obtain evidence whether and especially under which circumstances smaller, resource-scarce firms benefit from innovation. We find that innovation–performance relationship is context dependent. Factors such as the age of the firm, the type of innovation, and the cultural context affect the impact of innovation on firm performance to a large extent.
The authors highlight the need for and develop a framework for engagement by reviewing the relevant literature and analyzing popularpress articles. They discuss the definitions of the focal ...constructs—customer engagement (CE) and employee engagement (EE)—in the engagement framework, capture these constructs' multidimensionality, and develop and refine items for measuring CE and EE. They validate the proposed framework with data from 120 companies over two time periods, and they develop strategies to help firms raise their levels of CE and EE to improve performance. They also observe that the influence of EE on CE is moderated by employee empowerment, type of firm (business-to-business B2B vs. business-to-consumer B2C), and nature of industry (manufacturing vs. service); in particular, this effect is stronger for B2B (vs. B2C) firms and service (vs. manufacturing) firms. The authors find that although both CE and EE positively influence firm performance, the effect of CE on firm performance is stronger. Furthermore, the effect of CE and EE on performance is enhanced for B2B (vs. B2C) and for service (vs. manufacturing) firms.
When are outside directors effective? Duchin, Ran; Matsusaka, John G.; Ozbas, Oguzhan
Journal of financial economics,
05/2010, Letnik:
96, Številka:
2
Journal Article
Recenzirano
This paper uses recent regulations that have required some companies to increase the number of outside directors on their boards to generate estimates of the effect of board independence on ...performance that are largely free from endogeneity problems. Our main finding is that the effectiveness of outside directors depends on the cost of acquiring information about the firm: when the cost of acquiring information is low, performance increases when outsiders are added to the board, and when the cost of information is high, performance worsens when outsiders are added to the board. The estimates provide some of the cleanest estimates to date that board independence matters, and the finding that board effectiveness depends on information cost supports a nascent theoretical literature emphasizing information asymmetry. We also find that firms compose their boards as if they understand that outsider effectiveness varies with information costs.
We explore the effect of green credit policy on firm performance of listed firms in China. We find that green credit policy reduces firm performance in heavily polluting industries. This effect is ...more prominent in state-owned enterprises, firms with large size, high institutional ownership, high analyst coverage and during high economic policy uncertainty period. Moreover, we observe that green credit policy decreases heavily polluting firms' performance by increasing firm financing constraints and decreasing investment level. Our results help to restrain heavily polluting enterprises and promote industrial transformation in developing markets.
•We explore the effect of green credit policy on firm performance in China.•Green credit policy reduces firm performance in heavily polluting industries.•This policy effect is more prominent in SOEs and large-cap firms.•This policy effect is more significant in firms with stronger external supervision.•EPU enhances the restraining effect of green credit policy.•Financial constraints and investment level play crucial economic channels.
Gender Interactions Within the Family Firm Amore, Mario Daniele; Garofalo, Orsola; Minichilli, Alessandro
Management science,
05/2014, Letnik:
60, Številka:
5
Journal Article
Recenzirano
We analyze whether gender interactions at the top of the corporate hierarchy affect corporate performance. Using a comprehensive data set of family-controlled firms in Italy, we find that female ...directors significantly improve the operating profitability of female-led companies. To mitigate endogeneity concerns, we assess executive transitions using a triple-difference approach complemented by propensity score matching and instrumental variables. Finally, we show that the positive effect of female interactions on profitability is reduced when the firm is located in geographic areas characterized by gender prejudices and when the firm is large.
This paper was accepted by Brad Barber, finance
.
Digital technology usage has been extensively studied in academic research and industry. A deeper look at firm performance shows that digital transformation strategy and organisational innovation are ...facilitated by digital technology usage. This study further examined the mediating effects of digital transformation strategy and organisational innovation on the relationship between digital technology usage and firm performance. An empirical study was performed based on a survey of supervisors from financial industries in Taiwan. Two hundred twenty-seven companies responded to the questionnaires. The findings indicated that digital technology usage has positive influences on digital transformation strategy and organisational innovation, which in turn influence firm performance. Furthermore, digital transformation strategy and organisational innovation played full mediating roles between digital technology usage and firm performance.
A buying firm attempts to seek economic and social benefits through supply chain collaboration. Successful collaboration is predicted not only to strengthen a buying firm performance but also to ...reduce transaction costs. Establishment of an appropriate governance is of a great help in stabilizing a relationship and strengthening performance. Therefore, this study aims to identify underlying factors that constitute collaboration and transaction cost advantage, to explore effects of supply chain collaboration on firm performance and transaction cost advantage, and to examine the moderation effect of governance mechanisms in the proposed relationships. Data were obtained via a web survey of Korean manufacturing firms across different industry sectors. Confirmatory factor analysis was performed to assess the unidimensionality, reliability, and validity of a large-scale survey and hierarchical regression analysis was conducted for the hypotheses testing. The results indicated that supply chain collaboration leads to better firm performance and transaction cost advantage and that performance results in transaction cost advantage. A further analysis of the moderation effect of governance mechanisms indicated that firm performance with contractual governance yields better transaction cost advantage and that supply chain collaboration with contractual governance results in better transaction cost advantage than with relational governance. The findings contribute to the supply literature by providing theoretical and empirical implications. In theory, various collaborative practices in the supply chain and types of transaction cost are identified. Valid and reliable scales are also confirmed through successive stages of measurement analysis. In practice, clear definition of supply chain collaboration offers guidance in designing appropriate and effective collaborative activities which can result in a better performance. Managers are also advised to identify contexts in which either a contractual governance or a relational governance can be best utilized.
A number of studies have found little economic impact of board gender diversity on firm performance. We return to this issue in the context of large European firms. Our contribution is twofold. ...First, using information on the gender of CEOs children as a source of exogenous variation in female director appointments, we demonstrate a robust positive effect of female board representation on firm performance. Second, while previous work has considered female representation broadly, we focus on membership of board committees as a proxy for active involvement in corporate governance. We demonstrate economically meaningful positive effects on performance of female representation on board committees. Our evidence is supportive of an economic rationale for increased female representation on corporate boards.
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