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1 – 10 of over 79000Anders Bornhäll, Sven-Olov Daunfeldt and Niklas Rudholm
High-growth firms have recently received considerable attention in the firm growth literature. These firms might have grown despite the existence of growth barriers, and evidence…
Abstract
High-growth firms have recently received considerable attention in the firm growth literature. These firms might have grown despite the existence of growth barriers, and evidence also suggests that, having already grown exponentially, they may not be in the best position to grow further. Policies targeting high-growth firms may therefore be misdirected. We argue that entrepreneurship researchers should concentrate more on firms that are not hiring, despite having high profits. We call these firms “sleeping gazelles,” and demonstrate that they represented almost 10% of all limited liability firms in Sweden from 1997 to 2010. Nearly half of these firms continued to earn high or moderate profits in subsequent three-year periods, while still displaying no growth. Regression analyses indicate that these firms were significantly smaller, older, more likely to be active in industries with high profit uncertainty, and more likely to be located in less densely populated municipalities than were corresponding growing firms.
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The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions:
Conglai Fan, Xinlei Cai and Jian Lin
Starting from the theoretical mechanism of profit sharing between finance and the real economy, this paper reviews and analyzes the profitability of China's banking industry and…
Abstract
Purpose
Starting from the theoretical mechanism of profit sharing between finance and the real economy, this paper reviews and analyzes the profitability of China's banking industry and makes a horizontal comparison with the banking industry of the United States, Japan, and Germany.
Design/methodology/approach
Based on the panel threshold model, it is found that there is a dual-threshold asymmetric effect between banking profit and the growth of real economy. When the net profit rate of the banking industry is lower than 0.491%, the increase in banking profitability will inhibit the growth of real economy due to profit grabbing; when the rate falls within the range of 0.491–0.801%, the increase in bank profitability is conducive to the growth of real economy.
Findings
Finance and the real economy are in the most comfortable symbiotic state; when the rate is higher than 0.801%, the continued increase in bank profitability will weaken the promotion effect of finance on the real economy, but bank profitability and the growth of real economy are still in a symbiotic state of positive promotion.
Originality/value
The promotion effect of China's bank profitability to the growth of real economy has shifted from the suboptimal state to the optimal range as a whole, which is attributed to the strong deleveraging and strict supervision of the Chinese government after 2016, the timely and decisive “stepping on the brakes”, pulling the financial sector back from the “illusion” caused by “self-circulated” profits and preventing it from harming the real economy.
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Christopher Pass and Bryan Lowes
The continuing growth in the size and importance of very large joint‐stock companies in the modern economy has prompted a search for new theories of the firm which are more…
Abstract
The continuing growth in the size and importance of very large joint‐stock companies in the modern economy has prompted a search for new theories of the firm which are more relevant in explaining the behaviour of giant enterprises. For whilst the traditional profit‐maximising theory of the firm derived from neo‐classical economics may be an appropriate generalised approximation of the behaviour of firms operating in competitive markets, the need for broader theories to explain the behaviour of large manager‐controlled, oligopolistic companies has been recognised.
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the…
Abstract
Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the marketing strategies employed, together with the organizational structures used and looks at the universal concepts that can be applied to any product. Uses anecdotal evidence to formulate a number of theories which can be used to compare your company with the best in the world. Presents initial survival strategies and then looks at ways companies can broaden their boundaries through manipulation and choice. Covers a huge variety of case studies and examples together with a substantial question and answer section.
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Inder Sekhar Yadav, Debasis Pahi and Rajesh Gangakhedkar
The purpose of this paper is to examine the correlation between firm size, growth and profitability along with other firm-specific variables (like leverage, competition and asset…
Abstract
Purpose
The purpose of this paper is to examine the correlation between firm size, growth and profitability along with other firm-specific variables (like leverage, competition and asset tangibility), macroeconomic variable (like GDP growth-business cycle) and stock market development variable (like MCR).
Design/methodology/approach
Using the COMPUSTAT Global database this work uses panel dynamic fixed effects model for nearly 12,001 unique non-financial listed and active firms from 1995 to 2016 for 12 industrial and emerging Asia–Pacific economies. This interrelationship was also examined for small, medium and large size companies classified based on three alternate measures such as total assets, net sales and MCR of firms.
Findings
The persistence of profits coefficient was found to be positive and modest. There is evidence of a negative size-profitability and positive growth-profitability relationship suggesting that initially profitability increases with the growth of the firm but eventually, overtime, gains in profit rates reduce, as size increases indicting that large size breeds inefficiency. The relationship between firm's leverage ratio and its asset tangibility is found to be negative with profitability. The business cycle and stock market development variables suggest a positive relationship with the profitability of firms. However, the significance of estimated coefficients was mixed and varied among different selected Asia–Pacific economies.
Practical implications
The study has economic implications on issues such as industrial concentration, risk and optimum size of firms for practicing managers of modern enterprise in emerging markets.
Originality/value
The analysis of the relationship between the firm size, growth and profitability is uniquely determined under a dynamic panel fixed effects framework using firm-specific variables along with macroeconomic and financial development determinants of profitability. This relationship is estimated for a large and new data set of 12 industrial and emerging Asia–Pacific economies.
研究目的
本研究擬探討公司的規模、成長和盈利能力之間的關係, 同時亦涵蓋公司特有的其它變量 (如愩杆作用, 競爭和資產的有形性), 宏觀經濟變量 (如國內生產總值增長與景氣之循環), 以及股市發展變量 (如MCR) 。
研究的設計/方法/理念
本研究以COMPUSTAT 全球資料庫、使用動態面板固定效應模型,涵蓋幾近12001間獨特的、非金融上市及活躍的公司、覆蓋期由1995年至2016年,涉及12個工業及新興的亞太經濟體。這相互關係分析研究亦於大、中及小型企業內進行,而這些企業就規模方面的分類是基於三個交替的測量而釐定的,如總資產、銷售淨額、以及企業的MCR。
研究結果
研究發現、利潤係數的持續性是正且適中不強的。有證據顯示、規模的大小與盈利能力是負相關的,而增長與盈利能力則為正相關;這暗示盈利能力初時會因企業的成長而增強,但隨著時間的推移最终當規模增大、利潤率的增長會下降,這提示我們:大的規模會導致效率低下。企業的杠桿比率與其資產有形性的關聯被發現與盈利能力成負相關。經濟週期及股市發展變量暗示與企業的盈利能力之關聯為正相關。唯估計係數的意義會因被挑選之各個不同亞太經濟體而有異和不統一的。
實際的意義
本研究對在新興市場的現代企業內工作的業務經理有其實際作用,因研究為他們在業務問題如產業集中度、危機、公司的最佳規模等問題上提供了經濟方面的啟示。
研究的原創性/價值
本研究分析公司規模、成長與其盈利能力的關係時,獨特之處是採用了動態面板固定效應模型,並於應用盈利能力的宏觀經濟和金融發展的決定因素的同時,也使用了企業特有的變量。而這關係的分析研究涵蓋12個工業及新興的亞太經濟體的龐大且新的數據集。
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There exist long-term fluctuations in the process of capital accumulation. The economic long wave is an essential part of research into non-mainstream western economics. After the…
Abstract
Purpose
There exist long-term fluctuations in the process of capital accumulation. The economic long wave is an essential part of research into non-mainstream western economics. After the Second World War, the capitalist world experienced the fourth long wave of expansion and then entered into a downward phase of the long wave in the 1970s. Regarding to whether a new long wave of expansion took place in the 1980s, left-wing scholars hold different viewpoints. The purpose of this paper is to focus on this issue.
Design/methodology/approach
First, based on the review of the long wave history, this paper discusses three kinds of long wave theories with significant influence and puts forward the theoretical framework of analyzing the long wave of capitalist economy. Next, under the guidance of this theoretical framework and in combination with the actual development and evolution of the capitalist economy, the issue of whether the fifth long wave of the capitalist economy began to emerge in the 1980s is discussed deeply.
Findings
This paper argues that, from the early 1980s to 2007, the US-dominated developed countries experienced a new long wave of expansion driven by the information technology revolution, the adjustment of the neoliberalism system and the economic globalization. However, the financial-economic crisis of 2008–2009 led to a new phase of long wave downswing.
Originality/value
This paper does not agree with the single-factor analysis of the intrinsic formation mechanism of economic long wave and sticks to the multi-factor analysis centering on the fluctuation of accumulation rate. It is pointed out that the evolution of the long wave of capitalist economy depends on the combined influence of technology, institutions and market. The study of the long wave of the economy will help us to correctly understand the historical stage and characteristics of the current world capitalist economy in the long-term fluctuations, so that we can make an appropriate and positive response.
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To empirically study the performance of large retailers in terms of the strategic profit model and the retail performance index over time.
Abstract
Purpose
To empirically study the performance of large retailers in terms of the strategic profit model and the retail performance index over time.
Design/methodology/approach
This study looks at how well the largest public US retailers performed financially from 1982 to 2001. Several measures are employed, including sales and profit growth, profit margins, asset turnover, return on assets, financial leverage, and return on net worth. The performance of Wal‐Mart is broken out.
Findings
As a group, the largest public US retailers have not performed very well across a number of measures. They have not been “high performers.” Wal‐Mart has outperformed other very large retailers for virtually every financial measure. It has been a “high performer” by not losing its edge as it has grown.
Research limitations/implications
Only public retailers were included in the study. Retailers reported financial data using different fiscal years. The federal government converted its data from SIC to NAICS codes during the time frame of the study; the data were converted based on a model from Retail Forward.
Practical implications
As the largest firms seek to heighten their marketplace concentration, they have to be careful not to fall into a growth trap. They need to be more devoted to driving up their financial performance.
Originality/value
The paper reports the results of a comprehensive longitudinal study of the largest public retailers, and focuses on applying two under‐researched retail performance tools: the strategic profit model and the retail performance index.
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The purpose of this paper is to measure the effects of corporate financial performance toward the influences of corporate growth and company asset utilization on the corporate…
Abstract
Purpose
The purpose of this paper is to measure the effects of corporate financial performance toward the influences of corporate growth and company asset utilization on the corporate market value.
Design/methodology/approach
This research is an explanatory research that describes the influences of one or more variables on other variables based on secondary data. This research took place in Indonesia and was carried out from 2011 to 2016.
Findings
The findings of this study are corporate growth has a significant influence on the corporate market value, implying that companies should consider the short-term and long-term profitabilities before making any investment decision; asset utilization has been confirmed to have a positive and significant influence on financial performance. Insights into asset utilization effectiveness and efficiency are important for company managers to consider in making strategic decisions upon operational activities of the company. Also, financial performance has a positive and significant influence on the corporate market value.
Originality/value
Research originality offered in this research is in the form of empirical evidence upon the influence of company asset utilization on the financial performance and corporate market value of a company. The finding of this research is expected to provide a better understanding on the role of company asset utilization in determining corporate financial performance which is known to be certain.
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