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1 – 10 of over 151000
Article
Publication date: 27 July 2021

Mahfuzur Rahman, Dieu Hack-Polay, Sujana Shafique and Paul Agu Igwe

Internationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship…

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Abstract

Purpose

Internationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.

Design/methodology/approach

Using primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.

Findings

The results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.

Originality/value

Despite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Abstract

Details

Dynamics of Financial Stress and Economic Performance
Type: Book
ISBN: 978-1-78754-783-4

Book part
Publication date: 10 August 2018

Afshin Mehrpouya and Imran Chowdhury

In this chapter, we reexamine the notion that socially responsible behavior by firms will lead to increased financial performance. By identifying the underlying processes…

Abstract

In this chapter, we reexamine the notion that socially responsible behavior by firms will lead to increased financial performance. By identifying the underlying processes, institutional settings, and actors involved, we present a framework that is more attentive to the multiplicity and conditionality of the mechanisms operating in the often tenuous connection between firms’ social behavior and financial performance. Building and expanding upon existing analyses of the CSP–CFP linkage, our model helps to explain the mixed results from a wide range of empirical studies which examine this link. It also provides a novel theoretical account to help guide future researches that are more attentive to conditionalities and contextual contingencies.

Details

Sustainability, Stakeholder Governance, and Corporate Social Responsibility
Type: Book
ISBN: 978-1-78756-316-2

Keywords

Article
Publication date: 10 June 2021

Cansu Tayaksi, Erhan Ada, Yigit Kazancoglu and Muhittin Sagnak

Today, information systems and technology provides a wide set of tools for companies to increase the efficiency of their businesses. Although technology offers many…

Abstract

Purpose

Today, information systems and technology provides a wide set of tools for companies to increase the efficiency of their businesses. Although technology offers many benefits to businesses, it also brings risks as the information systems security breaches. Security breaches and their financial impact is a constant concern of the researchers and practitioners. This paper explores information systems breaches and their financial impacts on the publicly traded companies in different sectors.

Design/methodology/approach

After a comprehensive data collection process, data from 192 events are analyzed by employing Event Study Methodology and a comparison of the results between the four highly affected sectors (Consumer Goods, Technology, Financial and Communications) is presented. The abnormal returns on the prices of stocks after the events are calculated with the Market Model. Also, the results of the Market Adjusted Model and Mean Adjusted Model are presented to support the results.

Findings

While information systems security breaches have a significant negative impact on the Financials and the Technology sectors for all the event windows in the study ([−5, 0], [−5, 1], [−5, 5], and [−5, 10]), the significant negative impact is observed only on the [−5, 5] and [−5, 10] event windows for the Consumer Goods sector. No significant negative impact is observed in the Communications sector, in fact, the cumulative abnormal returns are positive for this sector.

Originality/value

The contribution of this paper to provide evidence about the financial impacts of the information systems breaches for businesses in different sectors. While there are studies that have previously focused on the information systems breaches and their financial impacts on businesses, to the best of our knowledge, this is the first study that compares this effect between the four highly impacted sectors. With a relatively larger sample size and broader event windows than the past studies in the literature, statistical evidence is provided to managers to justify their investments in information security and build preventive measures to secure the market value of their firms.

Details

Journal of Enterprise Information Management, vol. 35 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 21 August 2017

Michael Carriger

Although the management and financial literature is replete with much research looking at the impact of downsizing on the financial health and market valuation of…

Abstract

Purpose

Although the management and financial literature is replete with much research looking at the impact of downsizing on the financial health and market valuation of companies employing this practice, there has been very little attention paid to the size of the downsizing effort and its impact. The purpose of this paper is to try and address this lack by looking at companies that downsized in 2008, considering the relative size of the downsizing, and the ongoing financial health and market valuation of the companies.

Design/methodology/approach

The impact of the size or severity of the downsizing event was assessed using various financial measures as well as a measure of market valuation from one to five years after the downsizing event. A data set of 251 companies that were in the Fortune 500 in 2014 and also in the Fortune 500 in 2008, that either did not change or decreased headcount were assessed longitudinally over a five-year period.

Findings

Findings indicate that the size or severity of the downsizing did not impact any measures of profitability or efficiency or market valuation, with one exception. The size of the downsizing event was negatively related to return on investment, one year after the downsizing. On the other hand, the size or severity of the downsizing had a positive relationship on the companies’ ability to have enough cash at hand to cover expenses (current ratio) from one to four years after the downsizing.

Originality/value

This work may provide additional support for the “band-aid solution” theory of downsizing, as suggested by Carriger (2016), downsizing may stop the bleeding but does not address the underlying financial or strategic issue leading to the need to downsize. The hope is that this work will better inform scholars and practitioners, providing a more nuanced picture of the impact of downsizing on corporate financial health and market valuation.

Details

Journal of Strategy and Management, vol. 10 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 14 September 2010

Warwick Stent, Michael Bradbury and Jill Hooks

The purpose of this paper is to examine the financial statement impacts of adopting NZ IFRS during 2005 through 2008.

5195

Abstract

Purpose

The purpose of this paper is to examine the financial statement impacts of adopting NZ IFRS during 2005 through 2008.

Design/methodology/approach

The effects of NZ IFRS on the financial statements and ratios of first‐time adopters of NZ IFRS for a stratified random sample of 56 listed companies is analysed. In total, 16 of these were early adopters and 40 of which waited until adoption of NZ IFRS became mandatory. The analysis of the financial statement impact of NZ IFRS is conducted in the context of the accounting choice literature.

Findings

The results show that 87 per cent of firms are affected by NZ IFRS. The median and inter‐quartile ranges indicate that for most firms the impact of NZ IFRS is small. However, the maximum and minimum values indicate the impact can be large for some entities. The impact has considerable effects on common financial ratios.

Research limitations/implications

The usual limitations applicable to small samples apply.

Practical implications

The findings may be useful to regulators and policy makers reviewing financial reporting requirements.

Originality/value

This study is the first to offer a comprehensive empirical analysis of the effect of adopting IFRS on financial statements in New Zealand, as well as on selected key ratios of interest to financial analysts. The data used are more recent than most IAS or IFRS studies around the world and are stratified to allow for comparison between voluntary/early adopters and mandatory/late adopters.

Details

Pacific Accounting Review, vol. 22 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 30 March 2020

Albert Puni and Alex Anlesinya

The purpose of this study is to examine the influence of corporate governance mechanisms recommended by the Securities and Exchange Commission (SEC) of Ghana on firm…

3221

Abstract

Purpose

The purpose of this study is to examine the influence of corporate governance mechanisms recommended by the Securities and Exchange Commission (SEC) of Ghana on firm performance as measured by accounting-based ratios (return on assets, return on equity and earning per share) as well as market-based measure (Tobin’s Q) among listed Ghanaian companies from 2006 to 2018. These mechanisms are: board composition (board size, inside directors and outside directors), board committees (audit, remuneration and nomination), chief executive officer (CEO) duality/separation, board meetings and shareholder concentration.

Design/methodology/approach

The study used panel regression analysis of data from 38 listed firms in Ghana from 2006 to 2018 to test how each corporate governance variable initiated by the SEC of Ghana contributed to firm performance. Data were extracted from the annual reports of listed companies.

Findings

The study found that the presence of both insiders and outsiders on the corporate board improved financial performance. Similarly, board size, frequency of board meetings and shareholder concentration/ownership structure generally had a positive impact on financial performance. However, the presence of board committees generally had a negative impact on financial performance while CEO duality had no impact on financial performance.

Practical implications

The study contributes to the understanding of how good corporate governance practices affect firm performance for both academics and particularly Ghanaian policymakers.

Originality/value

This study provided new findings to bridge the gaps in the general corporate governance literature relative to the lack of consensus on financial impacts of corporate governance mechanisms. The finding contributes to knowledge by providing new and original evidence that some current corporate governance mechanisms are not effective in minimizing the agency problem in a developing setting. Furthermore, the authors anticipate that the outcomes of this research, which so far is the most comprehensive study in the Ghanaian context in terms of the coverage of corporate governance mechanisms specified by the SEC of Ghana, can significantly shape corporate governance discourse, practices and policies in Ghana, particularly and in other developing countries generally to improve financial performance and corporate sustainability.

Details

International Journal of Law and Management, vol. 62 no. 2
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 3 June 2019

Othmar M. Lehner, Theresia Harrer and Madeleine Quast

Impact investing denominates an investment logic that combines social and environmental goals, financial returns as well as personal values. The purpose of this paper is…

1689

Abstract

Purpose

Impact investing denominates an investment logic that combines social and environmental goals, financial returns as well as personal values. The purpose of this paper is to consider the concept of legitimacy to be an appropriate way to understand how actors in the impact investing market influence discourse in order to overcome the inherent liability of newness – based on hybrid institutional logics – through their financial and non-financial communication.

Design/methodology/approach

Based on two theoretically defined sets of codes, a thematic discourse analysis is conducted by analysing meaningful units derived from documents produced by case-selected actors in the impact investing industry, which are then categorised into rhetorical strategies for legitimacy building.

Findings

The paper finds that actors use diverse legitimisation strategies based on their relative positioning in the impact investing market. These strategies determine the actors’ main discursive foci and, in turn, are affected by the overall organisational activities, governance and mission. This study proposes and discusses eight legitimacy creating strategies of relevant archetypes of impact investing actors in their financial and non-financial communication. Following these interconnected discursive engagements, a communication gap can be demonstrated between investors, intermediaries and social entrepreneurs.

Originality/value

Such discursive engagement gaps can provide a theoretical lens to explain the almost non-functional market and, as practical implications, show the need for convergence and harmonisation in financial and non-financial reports and communiques. This research further contributes to theory by providing insights into the discursive creation of legitimacy, and by promoting a better understanding of the emerging field of impact investing.

Details

Journal of Applied Accounting Research, vol. 20 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 15 May 2017

Mathieu Dunes and Bernard Pras

This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors.

1410

Abstract

Purpose

This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors.

Design/methodology/approach

Based on a “grounded-in-practice” approach to BMS, a comprehensive formative BMS scale is developed and its validity is assessed. The impact of BMS on subjective brand performance (i.e. predictive validity) and on objective financial performance is assessed. Data are collected from a sample of 298 brand managers and marketing directors in five business sectors (cosmetics, convenience goods, industry, bank/insurance and media) and from a financial database. Path analysis and multigroup analysis are performed to test mediating and moderating effects.

Findings

The results reveal that subjective brand performance (perceived brand performance) mediates the relationship between the BMS and objective financial performance of the firm and on each of the three BMS dimensions; and product-oriented (vs service-oriented) sector positively moderates the relationship between the BMS and subjective brand performance.

Research limitations/implications

The paper offers insights into adapting brand management practices along all BMS dimensions to achieve better business performance and improve objective financial performance in product-oriented activities. It highlights the role of brand management implementation, as well as the role of brand management in hierarchical relationships, in improving performance in service activities.

Practical implications

The formative BMS scale offers a tool which can be used to improve strategic decisions and give practical guidance on product vs service sector specificities. The indirect impact of a BMS on financial objective performance reinforces the legitimacy of brand managers and marketing managers.

Originality/value

This paper shows the impact of the BMS on objective financial performance by using a “grounded-in-practice” BMS scale. It also affords explanation on sectoral effects of brand management practices and their consequences on subjective and objective performance.

Details

Journal of Product & Brand Management, vol. 26 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 February 2018

Fang Chen, Thomas Ngniatedema and Suhong Li

The purpose of this paper is to investigate the relationship between green initiatives, green performance, and a firm’s financial performance in the world. The existing…

1838

Abstract

Purpose

The purpose of this paper is to investigate the relationship between green initiatives, green performance, and a firm’s financial performance in the world. The existing literature on environmental initiatives and their impacts is limited to the context of a particular country. This gap points to a lack of clarification of variations in environmental regulation and in economic disparity which may affect the impact of green initiatives on green performance and on financial performance.

Design/methodology/approach

Data on the world top 500 publicly traded companies are collected from Compustat, a database of financial, statistical and market information on global companies, and from Newsweek, an information gatekeeper that enables consumers to access a list of environmentally friendly companies. The paper adopts linear regression to test the relationships between variables.

Findings

The results show that green initiatives have a positive impact on green performance, which in turn has a positive impact on financial performance. However, the impact of green initiatives varies by country. The study revealed that companies in European countries and Canada lead in the green initiatives and green performance, followed by the USA and Japan. China and Hong Kong lag behind compared to other countries.

Research limitations/implications

The small sample size in some of the countries used in this study may impact the validity of the results.

Practical implications

This study suggests that companies that seek financial benefits of pursuing green initiatives should have a long-term orientation when implementing these initiatives and should consider the country where they operate.

Originality/value

The current study provides a global understanding of the relationship between green initiatives, green performance, and financial performance, and contributes to the literature by highlighting variation among countries and by year.

Details

Management Decision, vol. 56 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of over 151000