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1 – 10 of 594Abhijit Phukon and Divya Verma Gakhar
This paper aims to attempt to empirically investigate the impact of privatization on the performance of central public sector enterprises in India. Further attempt is made to…
Abstract
Purpose
This paper aims to attempt to empirically investigate the impact of privatization on the performance of central public sector enterprises in India. Further attempt is made to explore whether privatization is a necessary or sufficient condition for improvement of performance of central public sector enterprises.
Design/methodology/approach
The scope of the study is limited to financial and operating performance analysis of 206 central public sector enterprises in India. Multiple regression analysis has been used to determine the magnitude and direction of relationship between dependent and independent variables and identify variables other than privatization which affects performance.
Findings
The study found that financial and operational performance of firms has improved significantly due to privatization. Further, firm-specific factors and other parallel reforms adopted by enterprises have significantly influenced their performance. The established regression model is highly significant with F-ratio of 31.825 at 99% significance level. The degree of explanation of the model is robust with adjusted R2 at 0.956 implying that only 4.40% of explanation in the dependent variable cannot be explained by designated independent/explanatory variables.
Originality/value
The study would be useful to public policymakers to reach to a policy view on whether further disinvestment/privatization of central public sector enterprises need to be continued, and if so, then to what extent and direction.
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The purpose of this paper is to explore the impact of firm-, finance- and country-specific indicators to the performance of companies under the COVID-19 outbreak.
Abstract
Purpose
The purpose of this paper is to explore the impact of firm-, finance- and country-specific indicators to the performance of companies under the COVID-19 outbreak.
Design/methodology/approach
The study uses a regression performance model for enterprises during the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countries collected by the World Bank through enterprise surveys. The author combined the analysis of traditional performance measurements with the testing of relatively novel variables.
Findings
This study confirms the significance of multiple factors for company performance: sector, size, participation in exports and market demand for firms’ products. Robust financing solutions during the coronavirus pandemic period include equity contributions, followed by firms’ cash balances and debt. Support by a government, however, has not yet been confirmed as a significant source of finance. This paper also suggests the importance of country-specific factors for the performance of enterprises, including the level of economic development and the corporate governance infrastructure.
Practical implications
The research outcomes might assist regulatory bodies, policymakers and companies in their formulation of public and corporate governance strategies concerning future emergency preparedness and responses.
Originality/value
This paper is among the first empirical studies in the management realm that addresses the impact of COVID-19 on company performance, with cross-national empirical data.
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The purpose of this paper is to explore international market development for mature products and practices used in a novel business context.
Abstract
Purpose
The purpose of this paper is to explore international market development for mature products and practices used in a novel business context.
Design/methodology/approach
Taking a qualitative approach, the case study method was chosen to investigate how firms develop markets in relation to a new international business context. Critical international decisions are analysed using a managerial perspective.
Findings
The success of international ventures depends on managerial learning and effectiveness. In this paper, the authors argue that decisions about international market development can add significantly to the understanding of how business firms enter and develop markets in novel business contexts. Two case studies show different approaches for meeting challenges in distant markets. Four propositions are developed.
Originality/value
A theoretical contribution of this study is the importance of factors that explain international market development decisions in novel business contexts. The balance between incomplete knowledge and making resource commitments is of central concern to international managers. Some of this is tacit knowledge that a firm achieves and learns during the process of market development and other knowledge can only become available after an actual market entry. A second theoretical contribution of this study is the significance of contextual market knowledge in a novel business context.
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Rexford Abaidoo and Elvis Kwame Agyapong
This study examines how specific micro-level macroeconomic indicators influence corporate performance volatility among US corporate bodies in the short run.
Abstract
Purpose
This study examines how specific micro-level macroeconomic indicators influence corporate performance volatility among US corporate bodies in the short run.
Design/methodology/approach
The study employs error correction autoregressive distributed lagged (ARDL) model (ECM) to examine how micro-level variables influence volatility associated with corporate performance in the short run.
Findings
This paper finds that disaggregated or micro-level variables examined, tend to exhibit features that are not readily apparent from the aggregate variable from which such variables are derived. For instance, reported empirical estimate suggests that, growth in expenditures on services and nondurable goods tend to lower volatility associated with corporate performance, whereas government expenditures and expenditures on durable goods rather worsens volatility associated with corporate performance, all things being equal. Additionally, presented empirical estimates further provide evidence suggesting that macroeconomic uncertainty and inflation uncertainty significantly moderate or influence the extent to which disaggregated variables impact corporate performance volatility.
Originality/value
Compared to related studies in the reviewed literature, this study rather examines volatility associated with corporate performance instead of the corporate performance indicator itself. Additionally, this paper also examines how disaggregated variable instead of aggregate variables impact such volatility. Finally, the moderating role of key macroeconomic conditions in such a relationship is also examined.
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This study aims to develop and empirically test a model that describes the factors influencing a firm’s export performance; a model that can be adopted by future export…
Abstract
Purpose
This study aims to develop and empirically test a model that describes the factors influencing a firm’s export performance; a model that can be adopted by future export researchers, policymakers and practitioners. Specifically, this study aimed to identify the main factors affecting the export performance of manufacturing small- to medium-sized enterprises (SMEs) in Rwanda and determine the extent of influence of each identified factor on export performance.
Design/methodology/approach
The research design combines both exploratory research and causal research designs to test the proposed model. Interview guide and survey questionnaires were used to collect the raw data. The collected quantitative data were analysed using the structural equation modelling technique with the Analysis of Moment Structures software.
Findings
The findings revealed that all the factors identified, namely, organisational, entrepreneurial and industrial, and market factors had a significant positive impact on the export performance of SMEs. Moreover, entrepreneurial factors were proven to be the most influencing factors in export performance followed by market-level factors. In this context, the proposed resource-market-based model of export performance was tested and validated in a less developed country, Rwanda, for exporting SMEs.
Originality/value
The proposed model of export performance extends the existing literature in two ways: firstly, it integrates internal and external factors to explain the export performance of an SME and secondly, it tests the relative importance of these factors in driving and maintaining international performance.
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Weliswa Matekenya and Clement Moyo
The purpose of this study is to investigate the effect of foreign direct divestments (FDD) on economic growth and development in South Africa for the period 1991–2019.
Abstract
Purpose
The purpose of this study is to investigate the effect of foreign direct divestments (FDD) on economic growth and development in South Africa for the period 1991–2019.
Design/methodology/approach
The non-linear autoregressive distributed lag technique is used for the empirical analysis. Two regression models are specified, one for economic growth and the other for development which is proxied by poverty.
Findings
The empirical results suggest that foreign divestments are detrimental to both economic growth and development. Furthermore, the results suggest that the negative effects of foreign divestments outweigh the positive effects of FDI inflows.
Practical implications
South African policymakers should thus use policies that promote the retention of FDI inflows together with those that attract inflows. Furthermore, policies that promote economic freedom such as transparency and reduction in the time frame for granting government permits for business operations are also of paramount importance.
Originality/value
Most of the available literature on FDD focuses on the firm perspective. Available studies on the effect of FDD on economic growth do not investigate the effect of divestment on economic development. Economic growth is a necessary but not a sufficient condition for the achievement of socioeconomic development.
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Leszek Czerwonka and Jacek Jaworski
The main aim of the paper is to examine the small and medium-sized enterprises’ (SMEs) capital structure determinants in Central and Eastern Europe (CEE) (Poland, Czechia…
Abstract
Purpose
The main aim of the paper is to examine the small and medium-sized enterprises’ (SMEs) capital structure determinants in Central and Eastern Europe (CEE) (Poland, Czechia, Slovakia, Hungary, Bulgaria and Romania).
Design/methodology/approach
The authors used panel models to analyze financial data of 15,253 companies operating in the years 2014–2017.
Findings
The authors confirmed the dominant role of firm-specific factors. Industry and country variables explain only 4% of debt variability of the surveyed companies. The direction of influence of the diagnosed firm-specific factors is consistent with the pecking order theory. About one-fourth of SMEs in CEE hold a stock of debt capacity. It negatively affects the share of debt in the capital. The authors did not confirm the influence of the systematic industry business risk.
Research limitations/implications
The limitations of the study are (1) the inclusion of only six CEE countries in the sample; (2) the exclusion of microenterprises from the sample; (3) the capital structure relationships are observed following the applications of static panel; (4) the endogeneity issue has not been addressed in the model.
Practical implications
This study shows that business-friendly institutional environment is an important factor influencing the indebtedness of companies. It increases the leverage and, consequently, the return on equity, especially in CEE countries.
Originality/value
SME analyses in CEE countries are not as frequent as for other regions. Despite the classical determinants of the SMEs' capital structure, the authors have included debt capacity and systematic industry business risk in this study.
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Mohammad Mizenur Rahman, Syed Mohammad Khaled Rahman and Sakib Ahmed
The purpose of this study is to evaluate the effect of some internal features that influence the efficiency of non-bank financial institutions (NBFIs) in Bangladesh.
Abstract
Purpose
The purpose of this study is to evaluate the effect of some internal features that influence the efficiency of non-bank financial institutions (NBFIs) in Bangladesh.
Design/methodology/approach
The study selected the top 15 Dhaka Stock Exchange (DSE)-listed NBFIs according to purposive sampling. The study period was from 2016 to 2020. Secondary data were collected from annual reports. The cost-to-income ratio was a dependent variable that was used as a proxy of operational efficiency. The ordinary least square regression technique was applied to measure the impact of firm-specific factors on efficiency.
Findings
Results showed that number of employees, branch number, firm size and deposit ratio have a significant effect on efficiency at 5% level. The number of branches and employees showed a negative impact, whereas firm size and deposit ratio showed a positive effect on the firms' efficiency. The deposit ratio is negatively related because deposit interest expenses were more than offset by interest income generation through the conversion of deposits into loans.
Practical implications
The study has practical and policy implications on NBFIs' managers, employees, shareholders, depositors, clients, regulatory authorities and government as efficiency enhancement would bring financial soundness.
Originality/value
This study shed light on some firm-specific factors that can be changed to increase operational efficiency or reduce the cost-to-income ratio. The novelty of the study is that it identified some significant associations between firm-specific factors and the operational efficiency of NBFIs.
Chinedu Francis Egbunike and Chinedu Uchenna Okerekeoti
The purpose of this paper is to explore the interrelationship between macroeconomic factors, firm characteristics and financial performance of quoted manufacturing firms in…
Abstract
Purpose
The purpose of this paper is to explore the interrelationship between macroeconomic factors, firm characteristics and financial performance of quoted manufacturing firms in Nigeria. Specifically, the study investigates the effect of interest rate, inflation rate, exchange rate and the gross domestic product (GDP) growth rate, while the firm characteristics were size, leverage and liquidity. The dependent variable financial performance is measured as return on assets (ROA).
Design/methodology/approach
The study used the ex post facto research design. The population comprised all quoted manufacturing firms on the Nigerian Stock Exchange. The sample was restricted to companies in the consumer goods sector, selected using non-probability sampling method. The study used multiple linear regression as the method of validating the hypotheses.
Findings
The study finds no significant effect for interest rate and exchange rate, but a significant effect for inflation rate and GDP growth rate on ROA. Second, the firm characteristics showed that firm size, leverage and liquidity were significant.
Practical implications
The study has implications for regulators and policy makers in formulating policy decisions. In addition, managers may better understand the interplay between macroeconomic factors, firm characteristics and profitability of firms.
Originality/value
Few studies have addressed the interplay of macroeconomic factors and firm characteristics in determining the profitability of manufacturing firms in the country and developing countries in general.
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