Search results

Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers must investigate the factors affecting dividend policy by incorporating all the determinants into a single research effort.

Purpose: We examine the dividend policy determinants of Sri Lankan firms, explicitly focusing on the banking, finance, and insurance (BFI) sectors.

Methodology: This study uses the quantitative approach applying the Generalized Method of Moments (GMM) system to examine the dividend policy determinants by obtaining secondary data from 51 listed BFI organisations in Sri Lanka.

Findings: The analysis disclosed that the variables of changes in revenues, firm size, liquidity, corporate tax, business risk, and profitability have a positive relationship with dividend yield, whereas investment opportunities, leverage, change in revenues, corporate tax, and firm size impact positively on the propensity to pay dividends in BFI organisations in Sri Lanka. Our findings opine that managers in the BFI industries should prioritise changing their dividend policies by paying close attention to factors, such as dividend yield, changes in revenue, firm size, liquidity, corporate tax ratio, business risk, and profitability because the dividend policy is critical to retaining current investors and luring new ones.

Introduction: The government has taken many initiatives for the overall growth of India after liberalisation and remarkably performed to make India an emerging economy. Due to changes in macroeconomic conditions, investment in companys’ shares includes the possibility of bearing high risk, which cannot be eliminated but, to some extent, minimised. The persistence of risks motivates investors to invest in different available options of investment. Gearing measures, a company’s financial leverage, represent the risk afforded within the company’s capital structure.

Purpose: The research aims to identify the risk-return analysis of financial geared stocks of Nifty 50 companies in India, which have debt equity ratios of more than 1.

Methodology: Convenience and cluster sampling techniques were used to identify companies with debt equity ratios of more than 1. The considered time period is 2010–2019.

Findings: This research found capital structure ratios, debt equity ratio, and total debt ratio. The total equity ratio does not have any visible effect on any of the dependent variables, i.e., Return on equity (ROE), Return on Assets (ROA), Earnings per share (EPS), Return on capital employed (ROCE). It explains the impact of high-levered firms’ performance on profitability and functioning. The study highlights that highly geared companies do not significantly impact the ROA, proving Modigliani and Miller’s (1958) irrelevant theory.

Purpose: This study analyses how investments and specific financial factors affect the financial performance of businesses in Kosovo. Exploring the relationship between investments and financial performance and their impact on performance volatility, performance is assessed using return on assets (ROA) and return on equity (ROE) investments.

Methodology: Quantitative methods using secondary data from audited financial statements of Kosova manufacturing and commercial enterprises cover a 3-year period (2019–2021), involving 40 enterprises with 120 observations. Statistical tests such as descriptive statistics, correlation analysis, linear regression, Hausman–Taylor regression, fixed effects, random effects, and generalised estimating equations (GEE) model are applied. The study also utilises ARCH–GARCH analysis to assess the relationship between investments and performance volatility.

Findings: Investments positively impact the financial performance of Kosova businesses and significantly reduce performance volatility. Long-term liabilities, retained earnings, and short-term liabilities also play a role in reducing asset return volatility, while cash flow from financial activities increases it. Investments, cash flows from financial activities, long-term liabilities, short-term liabilities, retained earnings, and solvency affect equity return volatility.

Practical Implications: The study sheds light on how investments and financial factors influence the financial performance and volatility of Kosova businesses. Policymakers can use these insights to create policies that foster the development of commercial and manufacturing enterprises, given their importance in Kosovo’s economy.

Significance: This research provides valuable insights for business managers to enhance investment strategies and improve financial performance. Policymakers can rely on this academic study to enhance the economic environment and promote the growth of businesses in Kosovo.

This study aims to investigate the association between Corporate Social Responsibility (CSR) and tax avoidance, as well as the effect of earnings performance on this link. We suggest a negative association between CSR and tax avoidance based on the Stakeholder Theory. We also suggest that earnings performance moderates this relationship. Based on a sample of 25 Tunisian firms during the years 2012–2017, data were gathered via annual reports of the companies, and a survey-questionnaire was used to gather CSR information. The research design uses ordinary least squares (OLS) regression to investigate the association between CSR and tax. In addition, the analysis is performed using panel data to account for heterogeneity at the individual level and over time. Using this research design, the study provides a comprehensive examination of the effect of CSR on tax avoidance among Tunisian companies over a 6-year period. According to our findings, companies that participate in CSR initiatives show less tax avoidance than those that do not. Moreover, in line with the Slack Resource Theory, for businesses with higher earnings, the negative link between CSR and tax avoidance is stronger. Our research demonstrates that businesses may utilize CSR to improve their standing in the community and lower the likelihood of tax avoidance. These results suggest that profitable firms may have more funds available to spend on CSR initiatives and, as a result, are more motivated to maintain a positive reputation by refraining from tax avoidance strategies.

Purpose: This research discusses the importance of corporate social responsibility (CSR) and its link to a financial performance metric called net interest margin (NIM) in the context of non-banking financial companies (NBFCs). CSR initiatives can lead to long-term sustainability and improved financial performance, attracting investors seeking to align their investments with their values.

Need for the Study: The research composes portfolios based on financial companies’ CSR performance and NIM ratios to help investors understand the difference between CSR and financial performance, making investment decisions based on their portfolio goals and values. Striking a balance between sustainability and the financial performance of financial companies, will help investors find a suitable balance between portfolios for investment purposes.

Methodology: The authors used data from 55 financial companies for daily returns from 2014–2015 to 2021–2022 and used descriptive statistics to measure the performance of portfolios.

Findings: The findings suggest that financial companies in India have improved their CSR scores over time, indicating an increased focus on integrating socially responsible practices into their operations. The data also show that NBFCs are catching up with banks regarding CSR scores, and some NBFC portfolios even outperform banks regarding returns. However, the study also highlights the need for some companies to focus more on CSR and business operations.

Practical Implications: The results serve as a benchmark for financial companies to assess their relative CSR performance, highlighting the need for companies to focus on integrating socially responsible practices into their operations and guiding areas where companies can improve.

Purpose: The importance of creativity and innovation can’t be overstressed today. Especially in the context of volatility, uncertainty, complexity, and ambiguity (VUCA) world, firms cutting across businesses have to pay special attention to building a culture of creativity and innovation around business processes.

Design/Methodology/Approach: The study uses an extant literature review and practical cases to highlight the parameters required to build a culture of creativity and innovation in companies. These parameters lead to the development of the conceptual framework that can help firms sustain innovation even amidst a fast-changing business environment.

Findings: The findings suggest that focus on internal and external forces is required to keep up innovation efforts in the VUCA world. Being agile with a discrete focus on learning is essential to remain creative and innovative for business sustainability.

Research Limitations/Implications: The study is crucial for academicians, practitioners, and policy makers. It is expected to open new avenues of research for further contributing to the body of knowledge related to the field of creativity and innovation while expected to help society by bringing them more innovative products at pocket-friendly prices.

Originality/Value: The study is unique as it delineates the relationship between creativity and innovation in the context of the VUCA world. The research also offers an innovation framework that is a valuable addition to both fields of academia and corporate.

Economic costs and benefits are at the core while taking decision to adopt digitalization in the supply chain. The present chapter provides an in-depth exploration of the economic dimensions of digital supply chain management (DSCM) adoption in a firm. Drawing from a diverse source of literature, this chapter discusses the effect of economic outlook on DSCM adoption, the economic benefits of DSCM adoption and costs associated with it, and economic analysis and evaluation methodologies. The chapter also shares the case studies illustrating the real-world implications of economic considerations within DSCM initiatives. The chapter highlights how changing international socioeconomic and political dynamics can influence businesses across the globe. By analyzing the impacts of evolving market trends, changing consumer preferences, and geopolitical tensions, organizations can considerably forecast the possible impacts of these macroeconomic forces adeptly. The chapter also undertakes discussion on the economic cost and benefits associated with DSCM adoption. The economic analysis helps understand that the expected benefits outweigh economic costs, substantiating the economic viability of DSCM projects. The chapter concludes by discussing the examples of some real-world companies, highlighting how organizations have successfully applied economic analyses to their DSCM initiatives. This also highlights as to how showcasing how detailed economic assessments can justify substantial investments, deliver operational efficiencies, and reshape industries.

Introduction: The effect of environmental regulations or green policies on the financial health of businesses is still up for debate. The Prime Minister of India presented a bold plan to achieve net-zero emissions by 2070 at the COP26 climate summit in Glasgow (UK). Following this announcement, numerous Indian companies voluntarily committed to becoming carbon neutral to support the ambitious emission reduction targets. A growing body of research examines the link between environmental standards compliance and businesses’ sustainability measures, and how they affect their overall performance (profitability, stock returns, or output generation).

Purpose: The research assesses the effect of these voluntary announcements on the stock performance of Indian companies in the context of voluntary commitments to reduce carbon emissions.

Methodology: Concentrating on the announcement impact of carbon neutrality commitments/carbon emissions reductions of 52 Indian companies, the study considers carbon neutrality pledges/carbon emissions reduction from 2018 to 2022. The sample companies list was taken from various indices on the National Stock Exchange. A standard event study methodology is applied to compute abnormal returns during the event window of (−10, 10).

Findings: The results show that companies announcing the carbon neutrality pledges/carbon emissions reduction received significantly negative abnormal returns of 0.49% on announcement day. The cumulative average abnormal returns for different windows are also negative. It signifies that investors don’t value the environmentally sustainable actions of firms. It may also be because of investors’ ignorance of carbon neutrality pledges and their importance, highlighting the need to educate investors about the significance of corporate sustainability initiatives.

This study aims to theoretically investigate the effect of activating corporate governance (CG) mechanisms on the association between adopting corporate social responsibility (CSR) and tax avoidance (TA). Based on the analyzing of the previous studies, the authors support the results of studies that found a positive effect for activating CG on the adoption of CSR. Also, they found that there is a negative impact of activating CG mechanisms on TA, as CG includes controls and procedures that contribute to limiting opportunistic behaviors of management and ensures making decisions that maximize value for shareholders. To the best of the authors' knowledge, it is the only chapter that examines the effect of activating CG mechanisms on the association between CSR and TA.