Effect of ESG practices on the financial performance of companies listed on B3

Previous research on organizational practices is replete with contradictory evidence regarding their effects. Here, the authors argue that these contradictory findings may have occurred because researchers have often examined complex practice combinations and have failed to investigate a broad variety of firm-level outcomes. Thus, past research may obscure important differential effects of specific practices on specific firm-level outcomes. Extending this research, the authors develop hypotheses about the effects of practices that (a) enable information sharing, (b) set boundaries, and (c) enable teams on 3 different firm-level outcomes: financial performance, customer service, and quality. Relationships are tested in a sample of observations from over 200 Fortune 1000 firms. Results indicate that information-sharing practices were positively related to financial performance 1 year following implementation of the practices, boundary-setting practices were positively related to firm-level customer service, and team-enabling practices were related to firm-level quality. No single set of practices predicted all 3 firm-level outcomes, indicating practice-specific effects. These findings help resolve the theoretical tension in the literature regarding the effects of organizational practices and offer guidance as to how to best target practices to increase specific work-related outcomes. Implications for theory, research, and practice are discussed.

In the operations management field, operational practices like total quality management or just in time have been seen as a way to improve operational performance and ultimately financial performance. Empirical support for this effect of operational practices in financial performance has been, however, limited due to research design and the inherent difficulties of using performance as a dependent variable. In this paper, we tested the relationship between selected operational practices (quality management, just in time, ISO certification and services outsourcing) in financial performance outcomes of profitability and growth. A sample of 1200 firms, operating in Sao Paulo, Brazil, was used. Analysis using multiple regression explored the direct effect of practices and their interaction with industry dummies. Results did not support the existence of a positive relationship with financial performance. A negative relationship of outsourcing with both profitability and growth was found, supporting some critical views of the outsourcing practice. A weaker negative relationship between ISO certification and growth was also found. Some interactions between practices and industries were also significant, with mixed results, indicating that the effect of practices on performance might be context dependent.

Most evidence on the determinants and effects of corporate governance practices is based on large firms. In this paper we explore these issues in the context of small publicly traded Canadian companies. We exploit the fact that such firms were not subject to corporate governance guidelines prior to 2005, and thus analyze the determinants of voluntary governance practice choices as well as the effects of those practices on firm performance. Using a unique dataset, we construct a corporate governance index for each firm. We measure performance by two variables: quality of accounting earnings and financial performance. The results indicate that corporate governance does matter for smaller traded Canadian firms. We find both accounting and financial performance being positively related to corporate governance, although the underlying mechanisms may differ somewhat. Given this result, it would be natural to expect all firms to choose higher levels of governance. However, our results also suggest small firms face resource constraints that limit their choices. We conclude that good governance is an important driver of small firm performance that cannot be neglected by owners and managers of these firms.

Corporate governance in publicly traded small firms: A study of Canadian venture exchange companies

With advancement in technology and changing business environment, it is important to assess the effect of adoption of management accounting practices on the financial performance in companies. Hence, the purpose of the study was to assess the effect of Management Accounting Practices (MAPs) on the financial performance in industrial companies of Jordan. The study considered MAPs (costing practices, budgeting practices, decision-making practices, performance evaluation practices and strategic analysis) as the independent variables and financial performance (Return on Assets - ROA) as the dependent variable. Data collection was done through primary sources where 142 responses were collected using structured questionnaire. Multiple regression test was used to test the hypothesis which found that there is a statistically significant effect of adoption of management accounting practices on the financial performance in Jordanian industrial companies.

The general objective of this study was to assess the effect of loan management practices on financial performance of U-SACCOs in Nyanza District. This research adopted a survey research design using quantitative method. The target population of this study was senior employees and board members of Umurenge SACCOS of Busoro, Kibirizi, Kigoma, Nyagisozi, and Rwabicuma in Nyanza District. This study used 102 respondents, for choosing 102 respondents stratified sampling technique was used. Finally, research questionnaires were established to collect data and data was processed and analyzed through statistical product and service solutions (SPSS) version 21. Therefore, finding showed that most of the respondents agreed and strong agreed that loan management practices used are collection policy, analysis of an applicant’s TransUnion report, credit risk assessment, membership vetting and enrollment, and loan appraisal in loan management of U-SACCOs in Nyanza District. The collected data showed that above 98% of respondents confirmed that net profit, return on equity, liquidity ratio, return of asset and capital adequacy ratio are indicators of financial performance. Bivariate associations between loan management practices and financial performance shows that loan appraisal and net profit margin are significant associated with p-value = 0.039; collection policy and return on asset are significantly associated with p value = 0.020; membership vetting and enrollment and return on asset are significantly associated with p value = 0.020; credit risk assessment and liquidity ratio are significantly associated with p value 0.029. Data analysis showed that loan management practices mostly used by sampled U-SACCOs significantly predict the financial performance at p-value less than 0.05 by using ANOVA and coefficients analysis. The summary model indicates variances that are predicted by loan management practices on financial performance and they vary from 29.2 to 100%. In general, finding revealed that loan management practices significantly have a positive effect on financial performance on Umurenge Saving and Credit Cooperatives in Nyanza District. Based on the conclusions made, the researcher recommended that the governance and management of Umurenge Saccos must train the personnel and elected members on the effect of loan management practices on the financial performance of Umurenge Saving and Credit Cooperatives. The study helps governance and management of U-SACCOS to well understand the effect of loan management practices on financial performance and hence improve their quality for U-SACCOS’sustainability.

The listed firms’ contribution to the economies of countries such as Kenya is tremendous. Despite the contribution by the commercial and services companies listed at Nairobi Securities Exchange towards the economy of the country, majority have for long time been experiencing poor and declining performance and some have been suspended and even end up being delisted from the activities at Nairobi Securities Exchange in the last few years. The survival of businesses, companies and firms is a matter of global concern as much of their failure is mainly attributed to poor financial management approaches in the firms. Determining the effect of financial management practices and examining the effect of working capital management, cash budgeting, fixed asset management and capital structure on financial performance of companies listed at Nairobi Securities Exchange under commercial and services segment were respectively the general and specific objectives of this study. Trade–off theory, Contingency theory, Modigliani Miller capital structure theory and Fisher separation theorem were adopted in this study. This study adopted the positivism research philosophy concept that linked with objectivism concept. The study employed explanatory research design and the target population were eight commercial and service companies listed at NSE and were operational between the year 2009 and 2020. The study relied on secondary panel data which was obtained from the various sources such as financial statements and annual statements which were available at the firms’ websites and Nairobi Securities Exchange data. Descriptive as well as inferential analysis were utilized in analyzing the data. Descriptive statistics was able to produce trends, frequencies, means and standard deviations while inferential analysis entailed correlation and regression analysis. The study conducted the diagnostic tests namely normality, linearity, multicollinearity, unit root test, Heteroscedasticity, autocorrelation and Hausman tests. The diagnostic tests performed on the data gave an indication that there were no violations of the classical linear regression model assumptions and that data was not biased, had no inconsistencies or biased parameters. The key findings from the study were that working capital management, cash budgeting and fixed asset management have a positive and significant influence on the financial performance of commercial and services companies while capital structure negatively and insignificantly influenced the financial performance. The study concluded that working capital management, cash budgeting and fixed asset management positively and significantly affected financial performance while capital structure negatively and insignificantly affected financial performance of the companies listed at Nairobi Securities Exchange under commercial and services segment. The study recommends that firms have to ensure they have the required liquidity by ensuring that their assets and liabilities are well managed; entities have to ensure they have enough cash to meet their daily operations, finance their growth, ensure unexpected payments are met as well as sustained and firms have to ensure their non-current assets are well tracked and safeguarded in order to increase their fixed asset turnover ratios. Furthermore, the study recommends the firms to establish their optimal capital structure levels so as to ensure it positively influences the financial performance which can be achieved by ensuring the firms reach the optimal debt to equity ratios.

The purpose of the study is to examine the effects of supplier relationship management practices on organizational performance and competitive advantage of large manufacturing companies in Bahir Dar, Ethiopia. The study employed an explanatory research design. A standardized five-point Likert scale questionnaire was administered to manufacturing companies' executives, top managers, and procurement managers. Structural equation modeling with the help of analysis of moment structure 23 is used to analyze the relationship between variables. The result reveals that supplier relationship management practices lead to enhancing organizational performance and competitive advantage. Also, competitive advantage significantly affects the performance of manufacturing companies. The study is limited by the effects of supplier relationship management practices on organization performance and competitive advantage over a quantitative research approach. Further, it only focused on large manufacturing companies in Bahir Dar, Ethiopia. The study contributes evidence on the effects of supplier relationship management practices on organization performance and competitive advantage. Moreover, it helps the supply chain managers in large manufacturing companies to have a deeper understanding of supplier relationship management and its importance to organizational performance and competitive advantage.

The study sought to determine the effect of debt management practices (client appraisal, credit risk, collection policy, and credit terms) on financial performance of sugar processing companies in Western Region, Kenya. The general objective of this study was to establish how debt management practices affects financial performance of sugar Processing companies. Specifically, the study sought to establish the effect of credit terms on financial performance of sugar processing companies; to determine the effect of client appraisal on financial performance; to evaluate the effect of credit risk control measures on financial performance; to evaluate the effect of credit collection policies on financial performance of sugar processing companies in Kenya. The study was based on the following theories: The 5 C’s Model of Client Appraisal, Theory of the Pecking Order theory and liquidity practice Theory. A descriptive survey design was adopted for the study; the target population will comprise of all managers of the 4 sugar companies in Western Kenya. Data collected through a structured questionnaire. Cronbach (Alpha – α) model used to test the internal consistency while validity ensured by incorporating suggestions from supervisors and expert. Both descriptive and inferential statistics used to analyze the data. Data presentation was done by the use of charts and tables for ease of understanding and interpretation. Keywords: Debt Management Practices, Financial Performance, Client Appraisal, Credit Risk Control

This study examines the effect of sustainability practices on the financial performance of non-financial firms listed on the Johannesburg Stock Exchange (JSE). Using secondary data from the 2017 annual and sustainability reports of JSE-listed firms, specific indicators were selected as proxies for sustainability practices based on the firm's sustainability disclosures applying Global Reporting Initiative (GRI) standards. A cross-sectional dataset was constructed, and ordinary least squares (OLS) regression analysis was performed on data from 273 non-financial firms. The findings reveal a significant positive effect of total sustainability practices on financial performance, with each of the three sustainability dimensions. The study further observes that overall sustainability practices and disclosures among the firms analyzed are moderate, with a predominant focus on economic issues, followed by social and environmental considerations. Given these results, it is recommended that firms intensify their sustainability initiatives across all three dimensions to enhance financial performance.

Water and sanitation provision practices are established with the intention to enhance performance, provision on clean water and enhanced sanitation services. However, globally, not all Water & Sanitation Companies are able to achieve their core mandate of provision of adequate clean water and sanitation services. All Water and Sanitation Companies adopt water and sanitation practices however the extent to which they affect performance of water and sanitation companies is has attracted divergent views while other scholar found a negative affect others found a positive effect and hence a dilemma exist as to what is the exact effect of water and sanitation practices on the performance of water and sanitation companies. At Bomet Water and Sanitation Company in Bomet County, very few studies exist that have been conducted on the subject matter and yet its performance is not optimal and the hence the reason as to why this study was conducted at the Water and Sanitation Company. The purpose of this study was to determine the effect of water and sanitation practices on performance of Bomet Water and Sanitation Company in Bomet County, Kenya. Specific objectives of the study were to establish how resources influences performance of Bomet Water and Sanitation Company, to find out the extent to which stakeholder engagement effects performance of Bomet Water and Sanitation Company, to determine the effects of governance on the performance of Bomet Water and Sanitation Company and to examine the influence of information communication technology on the performance of Bomet Water and Sanitation Company. Theories adopted were; Resource Based View Theory, Stakeholder Theory, Stewardship Theory, Systems Theory and Balance scorecard Theory. The study adopted a descriptive research design and targeted 170 respondents drawn from commercial, technical and administration department. The sample size was 34 staffs selected using stratified random sampling technique. A pilot study was conducted to test the effectiveness and reliability of the research tool. The study used both primary and secondary data sources. Data was analyzed using quantitative approach which involved the use of descriptive statistics that entailed percentages, frequency, mean and standard deviation. Inferential statistic adopted was regression analysis was used to establish existing relationships between water and sanitation provision practices and performance of Bomet Water and Sanitation Company. Results were as follows; resources had a positive and significant effect on performance of BOMWASCO of (β=-0.229, p < 0.05). Stakeholder engagement had a positive and significant effect on performance of BOMWASCO (β=0.231, p < 0.05). Governance had a positive and significant effect on performance of BOMWASCO (β=0.451, p < 0.05). ICT had a positive and significant effect on performance of BOMWASCO (β=0.343, p < 0.05). The study concluded that resources, stakeholder engagement, governance and ICT have a positive and significant effect on performance of BOMWASCO. The study recommended that physical resources should used sufficiently and correctly to enhance equitable water supply all residents. The community should continue to be engaged in all water supply and solid waste collection practices in the County. BOMWASCO board structure should effectively represent diverse stakeholder interests. Current software solutions should continue being used in a manner that effectively meets organizational needs and requirements. The study recommends further studies should be conducted on Water and sanitation practices and performance of other water and sanitation companies in Kenya.

<p><em>Financial performance is a tool for measuring the success of a business. Managers can make appropriate decisions by reviewing the results of the company's financial performance. One of the aspects believed to influence the financial performance of a company is operational performance. Of course, this must be done through supply chain management practices in order to achieve good financial performance of the company. This research aims to determine the mediating role of company operational performance in the influence of supply chain management (SCM) practices on company financial performance. A quantitative approach was carried out by distributing questionnaires to 100 business leaders. Primary data consists of the results of filling out a questionnaire by the business owner. The data collection technique uses a survey method by distributing questionnaires to respondents, namely business owners. The MSMEs in question are 100 MSMEs located in Yogyakarta. Validity and reliability tests are carried out before implementing research analysis techniques. In this research, we examine the effect of SCM practices on financial performance through the operational performance of micro, small and medium enterprises in Bantul Regency, Yogyakarta Special Region (UMKM). The analysis technique uses structural equation modeling-partial least squares (SEM-PLS) with the WrapPLS application. The researchers estimated the results of direct effects and indirect effects. The research results prove that operational performance as a mediator in SCM practices influences the financial performance of the company. Apart from this, it is also proven that supply chain management has influence on operational performance, operational performance has influence on financial performance and supply chain management also has a direct influence on financial performance.</em></p>

Twenty years ago Guest (1987) published his normative framework describing the essence of HRM. He presented HRM as a new approach to personnel management, emphasizing its strategic contribution, its closer alignment to business, the involvement of line management, and focusing on HRM outcomes like commitment, flexibility and quality. The achievement of these human resource outcomes was, in turn, expected to contribute to a range of positive organizational outcomes, including high job performance, low turnover, low absence and high cost-effectiveness through the full utilization of employees, now relabelled as human resources. Put this way, it is not difficult to understand the wide appeal that the notion of HRM had (and still has) to academics and practitioners alike. It led to the renaming of chairs/departments within universities and to changed job titles in the business community. The attractiveness of the concept of HRM increased considerably when Huselid, in 1995, published a ground-breaking paper in the Academy of Management Journal in which he demonstrated a correlation between the degree of sophistication of HR-systems and the market value per employee among a range of publicly quoted companies in the USA. The paper generated admiration, criticism and an abundance of 'me too' research, trying to replicate the proclaimed relationship between HRM and Performance (Delery and Doty, 1996; Guthrie, 2001; Koch and McGrath, 1996; Wright et al., 2003). Since then many academics on both sides of the Atlantic have become active in this field, with a special focus on the relationship between HRM and Performance. Within this rapidly expanding field of study, the HRM–Performance relationship has been approached from a variety of perspectives rooted in organizational behaviour, sociology, economics, industrial relations and organizational psychology, with a particular emphasis placed on the impact of various combinations of human resource practices on a range of performance outcomes at the individual and organizational level of analysis.

The efficient movement of pharmaceuticals through various stakeholders to reach customers in the appropriate quantity and at the right time is achieved through supply chain management. However, the intricate nature of supply chain processes poses tremendous supply chain risks and jeopardizing pharmaceutical manufacturing company's ability. Failure to address these risks can hinder the provision of high-quality health services. However, effective supply chain risk management can foster more resilient and efficient global supply chains. Therefore, this study aimed to investigate the effect of pharmaceutical supply chain risks management practices on operational performance of pharmaceutical manufacturing companies in Addis Ababa, Ethiopia. Analytical cross-sectional study complemented with qualitative method was conducted at pharmaceutical manufacturing companies in Addis Ababa between May-August 2023. One hundred seventy two staffs working in four manufacturing companies included in the study. For quantitative part, pretested a self-administered five-point Likert scale questionnaire was used and analyzed using SPSS® -version 26. Assumptions of linear multivariate regression were checked and the level of significance determined at a 95% CI and p-value <0.05. Nine face to face in-depth interviews with key informants were conducted to gather the qualitative data, and the data were analyzed using thematic analysis technique. The study included 172 employees from four manufacturing companies, with a response rate of 97%. The regression analysis revealed that demand (β=-0.191, t = -4.162, p < 0.05) and supply side risks (β=-0.131, t = -2.015, p < 0.05) have a negative effect on the operational performance of manufacturing companies. Holding other variables constant, a one-unit increase in demand and supply side risks results in 19.1% and 13.1% lead to decrease in operational performance of manufacturing companies, respectively. Increasing costs of freight, shortage and fluctuating foreign exchange rate for currency, lack of logistics expertise and organized risks mitigation team were the major challenges for manufacturing company's operational performance. Demand and supply side risks affected the supply chain performance of the manufacturing companies. Furthermore, the increasing costs of freight, shortage of foreign currency, lack of logistics expertise and organized risk mitigation team were the main bottleneck for pharmaceutical manufacturing company's performance. The study result suggests demand and supply side risks, increasing costs of freight; shortage foreign currency exchange rate and lack of logistics expertise in companies should be given attention by stakeholders to improve operational performance. Furthermore, understanding these risk factors can improve the operational performance of the pharmaceutical industry by influencing policy and industry practices in the larger framework of global supply chain risk management not only one country.

Recent statistical studies concerning state and local government pension funds’ boards of trustees have focused on two complementary issues. First is the influence governance practices have on administration of fund assets. Second is the impact of investment strategy choices on funds’ total rates of return. Reported results indicate that the primary effects of governance practices on pension outcomes are indirect via asset allocation decisions. This study re-examined these issues using abnormal return as an inherently valued measure of risk adjusted financial performance. An innovation of the investigation is that “process analysis” was used to decompose the direct and indirect effects of governance practices on financial performance. Results suggest that while both types of effects exist, direct impacts dominate relative to mediating processes.