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1 – 10 of over 3000
Article
Publication date: 1 October 2008

P.D. Erasmus

This study implements inflation adjustments, as proposed by International Accounting Standard 15 (IAS15), to determine an inflation‐adjusted version of Economic Value Added (EVA)…

Abstract

This study implements inflation adjustments, as proposed by International Accounting Standard 15 (IAS15), to determine an inflation‐adjusted version of Economic Value Added (EVA). The relationships between the nominal (EVAnom) and inflation‐adjusted (EVAreal) versions of EVA, and market‐adjusted share returns are investigated, and compared with those of residual income, earnings and operating cash flow. Relative information content tests suggest that earnings have the strongest relationship with share returns, while the results of the incremental tests indicate that the EVAnom and EVAreal components do not provide statistically significant information content beyond that provided by residual income.

Details

Meditari Accountancy Research, vol. 16 no. 2
Type: Research Article
ISSN: 1022-2529

Keywords

Book part
Publication date: 14 December 2023

Sibusiso D. Ntshangase and Ikechukwu O. Ezeuduji

This chapter presents a recent study which explored the impact of entrepreneurship education on South African tourism students' entrepreneurial intention, regarding starting a…

Abstract

This chapter presents a recent study which explored the impact of entrepreneurship education on South African tourism students' entrepreneurial intention, regarding starting a tourism-related business after graduation. The study used a structured questionnaire to collect data from randomly selected tourism students in a South African comprehensive University. Study findings show that entrepreneurship education has an influence on tourism students' entrepreneurial intentions and perceptions of desirability and feasibility. The study results moreover reveal that having entrepreneurial family background and entrepreneurship education played a role in achieving entrepreneurial attributes and desirability. The adoption of various reform programmes targeted at enhancing the graduate employability and/or self-employment, such as the inclusion of a new entrepreneurial track to the undergraduate curriculum, is one of the study's recommendations for the department of tourism studied. Students should be encouraged to apply for the entrepreneurship education track, which includes business training as well as customised coaching and mentorship sessions with accomplished businesspeople, as early as in their first academic year.

Article
Publication date: 6 September 2021

Stella Banyana Mosimege and Tyanai Masiya

Many developing countries such as South Africa have been introducing measurement of results to improve public service delivery. The practice of development of performance measures…

Abstract

Purpose

Many developing countries such as South Africa have been introducing measurement of results to improve public service delivery. The practice of development of performance measures in the public service emanates from pressure exerted by citizens who are calling for more efficiency and effectiveness in delivering services. This article examines the implementation of the audit of pre-determined objectives at the Department of Basic Education (DBE).

Design/methodology/approach

This study is based on a qualitative case study approach. Secondary sources of data were used in order to analyse the DBE's challenges in managing performance information. Key secondary documents used include the AGSA annual audit reports as well as the DBE 2010/11–2014/15 Strategic Plan and Annual Performance Plans (APP) that provide the pre-determined objectives selected by the Department to measure performance for the five-year period.

Findings

The findings indicate that there are shortcomings in the processes of managing performance information. Based on the findings, it is incumbent upon the senior management of the DBE to strive towards understanding and improving their oversight roles and responsibilities in the management of pre-determined objectives.

Originality/value

The study generates a deeper understanding of what has been happening when pre-determined objectives were developed, reported or assessed in the DBE. This will assist the Department and similar public institutions to make further improvements in order to achieve pre-determined objectives.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 7 March 2019

Fahmida Laghari and Ye Chengang

The purpose of this paper is to investigate the relationship between working capital management and corporate performance with financial constraints.

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Abstract

Purpose

The purpose of this paper is to investigate the relationship between working capital management and corporate performance with financial constraints.

Design/methodology/approach

This study uses large panel sample of Chinese listed firms over the period 2005–2015 using system generalized method of moments (GMM) estimator that controls unobserved heterogeneity of individual firms well and GMM methodology is robust to address endogeneity issues.

Findings

Empirical evidence finds inverted U-shaped relationship between working capital and corporate performance and exhibits similar evidence for financially constrained firms. Evidence shows impact of high sales and discounts on early payments at low level of working capital and dominance of opportunity cost and cost of external finance at high level of working capital. The findings of the results show that optimal working capital level of financially constrained firms is relatively lower due to high cost of external capital and debt rationing. The results also indicate that on average NET is significantly lower for firms with Tobin’s Q>1 than firms with Tobin’s Q=1, and suggest that aggressive working capital management is significantly and positively associated with higher corporate values.

Originality/value

This paper is among few that complement the existing literature by providing evidence that inverted U-shaped relationship between working capital management and corporate performance also exists in the context of Chinese listed non-financial firms. Exclusively, the relationship of working capital and corporate performance with linkage of financial constraints is scant in the context of Chinese listed non-financial firms.

Details

International Journal of Managerial Finance, vol. 15 no. 2
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 2 February 2015

Shaista Wasiuzzaman

– The purpose of this paper is to examine the relationship between working capital efficiency and firm value and the influence of financing constraints on this relationship.

12497

Abstract

Purpose

The purpose of this paper is to examine the relationship between working capital efficiency and firm value and the influence of financing constraints on this relationship.

Design/methodology/approach

Data from 192 firms spanning a period of ten years (1999-2008) are used for this purpose and analyzed using the ordinary least squares regression technique.

Findings

The study finds that improvements in working capital efficiency through reduction in working capital investment results in higher firm value. However, this relationship is influenced by the financing constraints faced by a firm. For financially constrained firms, working capital efficiency significantly increases firm value but it is found to be insignificant for unconstrained firms.

Originality/value

To the author’s knowledge, this is the first study on the value of working capital in Malaysia or in any emerging market. Most studies on working capital valuation concentrate on developed countries and that too are only a handful. Hence this study contributes to the scarce literature on the valuation of working capital. This study also uses the model by Fama and French (1998) to evaluate the relationship between working capital and firm value, which has hardly been used in studies on working capital valuation.

Details

International Journal of Managerial Finance, vol. 11 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

Open Access
Article
Publication date: 4 July 2023

Stutee Mohanty, B.C.M. Patnaik, Ipseeta Satpathy and Suresh Kumar Sahoo

This paper aims to identify, examine, and present an empirical research design of behavioral finance of potential investors during Covid-19.

17812

Abstract

Purpose

This paper aims to identify, examine, and present an empirical research design of behavioral finance of potential investors during Covid-19.

Design/methodology/approach

A well-structured questionnaire was designed; a survey was conducted among potential investors using convenience sampling, and 200 valid responses were collected. The research work uses multiple regression and discriminant function analysis to evaluate the influence of cognitive factors on the financial decision-making of investors.

Findings

Recency and familiarity bias are proven to have the highest significant impact on the financial decisions of investors followed by confirmation bias. Overconfidence bias had a negligible effect on the decision-making process of the respondents and found insignificant.

Research limitations/implications

Covid-19 is a temporary phase that may lead to changes in financial behavior and investors’ decisions in the near future.

Practical implications

The paper will help academicians, scholars, analysts, practitioners, policymakers and firms dealing with capital markets to execute their job responsibilities with respect to the cognitive bias in terms of taking financial decisions.

Originality/value

The present investigation attempts to fill the gap in the literature on the intended topic because it is evident from literature on the chosen subject that no study has been undertaken to evaluate the impact of cognitive biases on financial behavior of investors during Covid-19.

Details

Arab Gulf Journal of Scientific Research, vol. 42 no. 3
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 28 August 2020

Himanshu Seth, Saurabh Chadha and Satyendra Sharma

This paper evaluates the working capital management (WCM) efficiency of the Indian manufacturing industries through data envelopment analysis (DEA) and empirically investigates…

1408

Abstract

Purpose

This paper evaluates the working capital management (WCM) efficiency of the Indian manufacturing industries through data envelopment analysis (DEA) and empirically investigates the influence of several exogenous variables on the WCM efficiency.

Design/methodology/approach

WCM efficiency was calculated using BCC input-oriented DEA model. Further, the panel data fixed effect model was used on a sample of 1391 Indian manufacturing firms spread across nine industries, covering the period from 2008 to 2019.

Findings

Firstly, the WCM efficiency of Indian manufacturing industries has been stable over the analysis period. Secondly, the capacity to generate internal resources, size, age, productivity, gross domestic product and interest rate significantly influence WCM efficiency.

Research limitations/implications

First, the selected study period has observed various economic uncertainties including demonetization and recession, so the scenario might differ in normal conditions or country-wise. Second, the findings might not be generalizable to the developed economies, since the current study sample belongs to a developing economy, which further provides scope for comparative study.

Practical implications

An efficient model for managing the working capital comprising most vital determinants could enhance the firms' valuation and goodwill. Also, this study would be helpful for financial executives, manufacturers, policymakers, investors, researchers and other stakeholders.

Originality/value

This study estimates the industry-wise WCM efficiency of the Indian manufacturing sector and suggests measures to the concerned parties on areas to focus on and provide evidence on the estimated relationships of firm-level and macroeconomic determinants with WCM efficiency.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 24 August 2012

Margarietha Johanna de Villiers‐Scheepers

Entrepreneurship theories have a predominant developed economy focus, but the relevance of these theories for emerging economies remains largely untested. The purpose of this…

4136

Abstract

Purpose

Entrepreneurship theories have a predominant developed economy focus, but the relevance of these theories for emerging economies remains largely untested. The purpose of this paper is to show how the antecedents to strategic corporate entrepreneurship influence the entrepreneurial intensity of emerging economy firms in South Africa.

Design/methodology/approach

A quantitative study was carried out, using a telephone survey to obtain responses from 146 established South African firms.

Findings

The findings indicate that entrepreneurship theories are contingent on the economic context. Entrepreneurial intensity (EI) of firms is strongly related to organizational antecedents and environmental opportunity perceptions. Three organizational antecedents are crucial to create a supportive internal environment: management support, autonomy and rewards. Furthermore, perceptions of munificence are positively related to EI. However, hostility, found to be related to entrepreneurial activity in developed economies, is not related to EI in this sample.

Practical implications

Managers, operating in emerging economies, can stimulate strategic corporate entrepreneurship by creating a supportive internal climate and fostering opportunity perceptions in dynamic, hostile environments; however, strategies using social or political capital seem to be more suitable for managing threats.

Originality/value

This paper enriches understanding of the contingent nature of entrepreneurship theories, suggesting that emerging country context matters, in terms of environmental opportunity and hostility perceptions for strategic corporate entrepreneurship.

Article
Publication date: 23 July 2024

Santi Gopal Maji and Prachi Lohia

The study aims to examine the impact of environmental, social and governance (ESG) disclosure on financial performance by considering the moderating impact of less and high…

Abstract

Purpose

The study aims to examine the impact of environmental, social and governance (ESG) disclosure on financial performance by considering the moderating impact of less and high climate-sensitive industry firms.

Design/methodology/approach

The present study is a panel data approach with a sample of the top 100 Bombay Stock Exchange (BSE)-listed non-financial firms covering the years 2019–2022. Appropriate panel data models have been used to investigate the association between ESG disclosure and financial performance, followed by an instrumental variable regression model to address endogeneity. Further, the panel data interaction effect model has been used to examine the moderating impact.

Findings

The results favour the value-enhancing function of ESG disclosure. Of the three ESG components, only the G factor affects firm performance significantly. The interaction effect model suggests that the link between ESG disclosure and financial performance is moderated by industry. However, this effect is greater for less sensitive industries. The results are robust to endogeneity.

Originality/value

The study’s novelty lies in the use of the integrated “Stakeholder Capitalism Metrics”, which has not been previously used in any study to assess the ESG disclosure of corporates. To further distinguish itself, the moderating impact of high and less climate-sensitive industry firms on the ESG-financial performance link, which remains unexplored in the fast-emerging nation of India, is looked into.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Open Access
Article
Publication date: 26 October 2020

Osama EL-Ansary and Heba Al-Gazzar

This paper aims to investigate the possible non-linear effect of net working capital (NWC) level on profitability for Middle East and North Africa (MENA) region listed companies…

8206

Abstract

Purpose

This paper aims to investigate the possible non-linear effect of net working capital (NWC) level on profitability for Middle East and North Africa (MENA) region listed companies. Furthermore, the study tests the possible interactive effect of cash levels on the relationship between NWC and profitability.

Design/methodology/approach

NWC level is the independent variable and profitability is the dependent variable using two proxies, return on assets (ROA) and returns on equity (ROE). Control variables are size, leverage, gross domestic product growth and sales revenue growth. The generalized method of moments was used to analyze the data of 134 consumer-goods listed firms in 12 MENA countries for the period 2013–2019.

Findings

The results demonstrate that NWC levels had a non-linear effect on profitability using ROA as a profitability proxy while results were insignificant using ROE as a profitability proxy. Furthermore, results show the absence of interactive effects between NWC, cash levels and both profitability proxies.

Originality/value

The study fills a gap in the working capital management (WCM) literature by providing new evidence on WCM’s non-linear effect of corporate performance in the MENA region emerging markets using the consumer-goods industry sample. The study contributes to the financial managers’ working capital optimization efforts in the MENA region by providing evidence on the usefulness of WC optimization efforts in the region from a financial performance point of view. According to the researchers’ knowledge, a few studies attempted to investigate this non-linear relationship for neither MENA region countries nor the consumer-goods industry.

Details

Journal of Humanities and Applied Social Sciences, vol. 3 no. 4
Type: Research Article
ISSN:

Keywords

1 – 10 of over 3000