Company-specific Characteristics Research Articles

Heterogeneous stock market impact of Russia–Ukraine War for oil and gas companies

Purpose This paper aims to examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (24 February 2022), the world’s largest oil and gas companies. Design/methodology/approach The authors examine the world’s 100 largest listed oil and gas companies at and around the beginning of the military conflict between Russia and Ukraine using an event study methodology. Findings The authors observe a positive and statistically significant stock price reaction at and around the military conflict. These results are consistent with the asset pricing perspective. Conversely, the stock market returns of Russian oil and gas companies, as well as those companies that were “forced” to divest in Russia due to corporate activism, exhibit a negative and statistically significant impact from the conflict. These reactions are reinforced or mitigated by company-specific characteristics such as size, profitability and institutional ownership. Finally, the findings indicate that companies engaged in oil and gas exploration and production report abnormally higher returns compared to firms in the other two subsectors of the industry. Originality/value The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature.

Unraveling the impact of the new Saudi company regulations: Enhancing financial reporting quality and achieving vision 2030

This research examines the direct and indirect effects of the New Saudi Company Regulations (NCR) on financial reporting quality (FRQ) in the Saudi stock market (Tadawul) from 2015–2017. The final sample comprises 60 companies (180 observations). Such institutional changes are expected to impact FRQ in Saudi Arabia. Thus, this research aims to theoretically and empirically investigate how Saudi company-specific characteristics influence FRQ given the changing institutional environment. The study reviewed the NCR changes against prior study outcomes to assess alignment with recommendations to improve FRQ. The NCR's effect was analyzed through two paths—the direct effect representing institutional pressure on FRQ from the NCR introduction, and the indirect effect whereby NCR initiated FRQ changes through company characteristics. The study only found a direct significant NCR effect on FRQ in Saudi Arabia. This confirms broad institutional pressure to improve financial reporting quality in Saudi companies, enabling the achievement of a core Vision 2030 objective. The findings have implications for Saudi policymakers in evaluating reform effectiveness and identifying needs for further NCR changes. They also contribute to ongoing theoretical discussions and indicate the importance of considering country-specific institutional contexts. Overall, the study helps bridge the gap in the limited existing literature on corporate governance and FRQ in Saudi Arabia versus developed countries.

Unraveling the adoption patterns of energy efficiency measures in SMEs: A mixed-methods analysis

This study investigates the adoption patterns of Energy Efficiency Measures (EEMs) in Small and Medium Enterprises (SMEs) in Switzerland, focusing on the influence of various factors such as EEM characteristics, company characteristics, and the role of energy auditors. A mixed-methods approach was employed, combining a logistic regression analysis of proposed and adopted EEMs' data with the findings of a questionnaire answered by auditors active in the field. The logistic regression analysis revealed that investment cost remains a significant barrier to EEM adoption, particularly for medium consumers (MCs), and that other company-specific characteristics, such as the sector, can influence adoption patterns. These findings highlight critical factors for promoting EE in SMEs. The role of auditors is also discussed, with the suggestion that they might lack the training and the required soft skills to present EEMs as strategic investments and to influence SMEs’ decision-making.

Influence of Company Characteristics on Earnings Management in Group Affiliated and Standalone Firms: Evidence from India

The study investigates the influence of company-specific characteristics, such as firm age, firm size, performance, leverage, capital intensity ratio, and assets growth, on earnings management. The study also examines the influence of such characteristics on earnings management in group-affiliated and standalone firms. The final sample consists of 248 companies listed on the Bombay Stock Exchange. The research takes place from 2012–2013 to 2018–2019. Signed discretionary accruals and signed discretionary current accruals are used as proxies for measuring earnings management. The findings show that the firm’s age, performance, and leverage are all positively associated with signed discretionary accruals. However, the capital intensity ratio has a negative relationship. Further, group firms are less likely to indulge in earnings management practices as compared with standalone firms. Also, the firm age and performance have positive relation, and capital intensity ratio has negative relation with signed discretionary accruals for group firms. In the case of standalone firms, firm size, performance, and leverage have a positive association whereas capital intensity has a negative association. The results of the present study give insight to financial analysts, regulators, investment analysts, credit rating agencies, etc., to keep an eye on manipulative reporting practices done by companies of different characteristics and ownership attribute.

Financial Restatement on Manufacture Sector Company Reviewed from The Aspect of Corporate Governance and Company-Specific Characteristics

This research was conducted because there was a phenomenon of financial restatement by manufacturing companies listed on the Indonesia Stock Exchange in 2015-2020. This study was conducted with the aim to test whether there was an influence of the independent variable corporate governance and company-specific characteristics on the dependent variable of financial restatement. The population in this study were manufacturing sector companies listed on the Indonesia Stock Exchange for the 2015-2020 research period. The sampling technique used was purposive sampling so that a sample of 42 companies was obtained for 6 years and produced 252 observational data. The data analysis technique used in this research was logistic regression analysis. The results of the study showed that the audit quality variable had a positive effect on financial restatement, while the variable size of the board of commissioners, independent commissioners, audit committee expertise, audit quality, executive compensation, company age, company performance, company leverage and liquidity have no effect on financial restatement.

Sustainable Systemic Lightweight Design (S2LWD) - Guidance for the heuristic application of lightweight design within an integrated product development process

Apart from costs, product development is increasingly driven by environmental constraints. Particularly regarding products with moving masses, lightweight design can be an effective instrument to reduce the environmental impact of products during their use phase since it often allows for higher energy consumption in manufacturing and disposal processes. However, a serious challenge in product development is to find an optimal trade-off between the benefits for sustainability through lightweight design strategies and further sustainability principles regarding the entire life cycle, while keeping development costs and times as low as possible.Thus, this contribution introduces guidance for sustainable lightweight design that enables the efficient and effective application of methods of lightweight design while considering sustainability aspects based on product and company-specific characteristics. By asking focused questions, diverse lightweight and sustainable design methods can be effectively integrated into product development along conventional and established product development processes and paradigms (e.g., systems engineering). This leads to a minor supplemental development effort compared to the well-established processes, which however ultimately lowers the barrier to introduce lightweight and sustainable design principles by increasing knowledge transfer so that products and product generations can be systematically and successfully improved.

FAMILY VALUES, CAPITAL STRUCTURE, AND FINANCIAL PERFORMANCE: EVIDENCE FROM A DEVELOPING COUNTRY

The corporate finance literature holds a significant and ongoing dispute about how capital structure affects firm performance. This is true because different companies’ capital structures differ significantly from each other because of several factors, such as ownership structures and company-specific characteristics. Given the uniqueness of Jordanian businesses and the shortcomings of earlier research, the current study investigates the financial performance of family-owned companies in Jordan from the perspective of capital structure. We perform a quantitative analysis of companies in the insurance sector using a panel data method. To solve endogeneity issues, the generalized method of moments model is used. The data cover the period from 2015 to 2021. Financial performance and firm liquidity were positively correlated. Results for the leverage variables and company size, however, are inconsistent. Financial performance was negatively impacted by family-owned businesses’ long-term debt to total assets and debt-to-equity ratios. At the 1% level, there was a positive and significant correlation for DTA. The results of the GMM study also show that all capital structure proxies have a negative effect on the performance of the listed Jordanian non-family insurance companies. Overall, our findings are consistent with those of earlier research. Though, the difference in results between companies and countries produces a unique and novel consequence. Besides the empirical results, policy implications and recommendations for future research are presented in this study.

Pengaruh tata kelola perusahaan dan karakteristik spesifik perusahaan pada kejadian penyajian kembali laporan keuangan

Financial statements are a means of communication between the activities of the company and the parties with an interest in the company. This study aims to analyze the effect of corporate governance as measured by board size, board independence, audit committee finance, audit quality, and company-specific characteristics as measured by firm size, ROA, leverage, and liquidity on the restatement of financial statements. The research method used is a quantitative method. There are 513 financial and non-financial companies listed on the Indonesia Stock Exchange during the 2017–2021 period, but 14 companies that do not meet the criteria for the research sample are 499 companies. The results of this study are that the formation of restatements, with a total of 122 and 229 non-restatements during the 2017–2021 period. This research says that the size of the company and the leverage of the company can influence the financial restatement events. There is an important positive relationship between firm size and financial restatement events. The size of a company can determine the size of a company. The size of the company affects the restatement of financial statements, because the bigger the company, the easier the transactions will be.

Associating Company-Specific Characteristics with Ownership Structure and Performance: An Analysis of Publicly Listed Firms from Selected Countries in the Eurozone during the 2008 Financial Crisis and Its Aftermath

In this paper, we analyzed data from publicly listed firms from selected countries of the eurozone between 2008 and 2016, a period of high volatility in the global economy and high uncertainty in financial markets. Economic indicators, such as sales volume, debt accumulation, internationalization, and innovative activity, were combined with firm size and ownership structure to examine their impact on economic performance. We first performed a panel data analysis to associate the economic and non-economic company-specific characteristics with performance and growth, while also examining the possible differences between countries. In the second part of the paper, we focused on ownership structure, an issue of great importance in the literature on business and economics. Through structural equation modeling (SEM), we attempted to shape the profiles of closely held companies, and their impact on performance. Our findings confirmed that significant differences exist not only between firms but also between countries relative to performance indicators; however, a common trend was found relative to debt, size, and ownership. Our findings also revealed a more conservative approach of closely held companies relative to long-term commitment and risky investment projects, compared to their non-closely held counterparts.

Does a gender pay gap exist on executive boards? An empirical multilevel analysis of executive board compensation in German listed companies

Using a three-stage multilevel model, this paper investigates whether the compensation of female and male members of top management teams differs systematically. For this, the payment and the determinants of compensation of approximately 600 executive board members of German DAX, MDAX, and SDAX companies in the years 2016–2019 were analysed. The differences in remuneration are theoretically founded at the company level by agency theory and at the individual level by human capital theory. The empirical results show that women receive lower compensation than men on average throughout the period under review. However, these differences in pay are especially attributable to the fact that women serve on average for a shorter period on the executive board and rarely hold the CEO position. There is also evidence that executive compensation depends directly on individual attributes (length of service on and position in the board) and company-specific characteristics (firm size and performance) that differ systematically between men and women, but gender determines compensation only indirectly through these factors. The study also confirms that women are still underrepresented on executive boards. With these results, this paper contributes to corporate governance research in the context of the dualistic board system and encourages the discussion about women in leadership positions.

The Role of Corporate Governance and Company Specific Characteristics on Environmental Disclosure Practices in India

Purpose-The purpose of this paper is to investigate the determinants of corporate governance factors and company specific characteristics of environmental disclosure in a developing country, namely, India. Design / Methodology/ Approach-A static and GMM-based dynamic panel data regression analysis is used to measure the ecological practices by considering the sample size of 100 non-financial listed companies taken from the National Stock Exchange between 2010 to 2021. Findings-Using two-step dynamic panel data GMM-based estimation, the study finds that governance factors like board size and board meetings are showing a positive effect on disclosure practices. whereas, in the case of an independent director a negative influence can be seen. But in the case of the squared term of independent director, there remains a positive effect on environmental activities. However, in the case of company specific characteristics firm age and the debt-equity ratio are positively influencing environmental activities where as firm size is found to influence negatively on disclosure practices. Originality/value-This study improves the mounting literature on the association between corporate governance factors, company specific characteristics, and environmental practices from an emerging economy standpoint. Specifically, the study inspects the dynamism and endogeneity effect along with the non-linear effect of different independent factors on environmental disclosure.

Management or market variables in the assessment of corporate performance? Evidence on a bank-based system

PurposeThis paper aims to study the influence of some company-specific characteristics, corporate governance factors and macroeconomic factors on the Portuguese companies’ performance.Design/methodology/approachTo achieve this aim, the authors have used data from 39 Euronext Lisbon companies for the period between 2014 and 2019. The authors used panel data methodology, specifically the generalized method of moments estimation method by Arellano and Bover (1995) and Blundell and Bond (1998).FindingsThe results point out that the sign and significance of the determinants of corporate performance change depending on the variable used to measure performance. The Tobin’s Q variable, as a market variable and variable of interest to potential investors, is explained by some corporate governance variables and company-specific factors. Specifically, potential investors are confident in the leadership power of the chief executive office (CEO) and the members of the Board of Directors, which contributes positively to corporate performance. However, the firms’ age has a negative impact on Tobin’s Q. Considering an accounting variable managed internally by the organizations, the results show that return on assets is negatively influenced by leverage, and positively affected by CEO duality, which the manager believes is decisive to maintain performance levels.Originality/valueTo the best of the authors’ knowledge, this study is the first to analyze specific characteristics of companies and corporate governance factors, in a specific macroeconomic environment of high dependence on banking, considering the nonlinear effect of company age on company performance.

Sexual identity management of working lesbian women

Purpose The purpose of this study is to provide a closer look at being out in the work environment. What are the characteristics that distinguish lesbian women who are out at work from those who are not? What role do companies play with their diversity-related measures? Design/methodology/approach This paper investigates characteristics that distinguish lesbian women who were out at work and analyzes the use of various sexual identity management strategies in relation to specific reference groups within a company. Furthermore, the method of multiple correspondence analysis is used to visually map the associations between company-specific characteristics and being out. Findings Results show that being out in the work environment is subject to a complex interplay of several factors, from personal resources to the diversity-friendliness of the company. A company’s lesbian, gay, bisexual, transgender, and intersexual (LGBTI)-related measures, such as in-house LGBTI networks or diversity workshops, can not only promote the coming out of lesbian employees, and thereby help to increase their overall satisfaction with life, but can also reduce their experiences of discrimination. Originality/value In this paper, the method of multiple correspondence analysis is used to examine the relationships between several diversity-related measures of the company and being out at the workplace. A visualization of these relationships in a two-dimensional space allows a more comprehensive view of these features and their possible effect on being out at the workplace.

Presence of women on boards in industrial firms: evidence from GCC countries financial markets

ABSTRACT This study aims to investigate the phenomenon of women's presence on the boards of industrial public companies in the Gulf Cooperation Council (GCC) countries. The first question deals with the relationship between board characteristics, governance variables and women on boards. The second question weighs the impact of the company-specific characteristics on the presence of women on boards. Our study focuses on 125 public companies listed on the Gulf financial markets and operating in the industrial sector for the year 2019. Results indicate that both corporate governance and company-specific variables can explain the presence of women on boards. First, our results give evidence that the appointment of women directors is positively related to institutional ownership and board independence, and negatively related to board size. Second, the appointment of women directors is positively related to firm performance, but negatively related to firm size and leverage. Hence, taken altogether, the evidence suggests that the appointment of women on board is driven by the business case. The study stresses on the need to improve governance variables and to activate policies supporting women’s roles in GCC economies as their integration on the labor market and their participation in senior management is a means to achieve justice and fairness.

Determinants of the adoption of green manufacturing practices by medium- and large-scale manufacturing industries in northern Ethiopia

The barriers to and opportunities for adopting green manufacturing practices (GMP) have not been well investigated in Ethiopian manufacturing industries. The objectives of this study were to identify the potential barriers to and determinants of adopting GMP among medium- and large-scale manufacturing businesses in northern Ethiopia. To achieve the objectives, primary data were collected from 131 medium- and large-scale manufacturing companies through interviews. Exploratory factor analysis and multiple linear regression modelling were used to answer the research questions. Company specific characteristics: managers’ experience, number of persons engaged, scale size of the company, age of the company, and whether the company has an environmental management department or not have significant influence on adoption of GMP. Lack of environmental knowledge, business environment related barrier, societal influence, technological barrier, financial barrier, organizational barrier, and regulatory or government barrier were the significant barriers to adoption of GMP. The significant industry-specific characteristics and the adoption barriers identified as determinants of GMP can help medium- and large-scale manufacturing enterprises to change their manufacturing practices to GMP. In addition, the findings of this study can be used to promote environmental sustainability in manufacturing.

Influence of Company Specific Characteristics on the Value Relevance of Accounting Information in Bangladesh

Influence of Company Specific Characteristics on the Value Relevance of Accounting Information in Bangladesh

Prilaku Pendanaan dan Resiko Kebijakan pada Perusahaan Kelautan di Bursa Efek Indonesia

This study aims to determine the risk of policies, company-specific characteristics that have an impact on the behavior of marine company financing in Indonesia. Samples were obtained using purposive sampling and obtained 16 samples of Marine companies that were Listed on the Indonesia Stock Exchange in the 2015-2018 Period. The data in this study were processed using the Stata 14.0 application. And the estimation method in this research is to use the random effect method. The results of this study for the independent variable risk policy consisting of EPU (economic policy uncertainty) and GPR (political risk) do not affect all types of funding, both debt, capital and actual financing. While the independent variable IOS has no significant effect on the three types of financing used, and cash flow variable has a significant effect on debt financing and actual financing while capital financing does not. Sales growth has a significant effect on the type of debt financing at alpha 5%, while actual financing has a significant effect on alpha 10% and has no effect on capital financing.

Decision support for the implementation of Industry 4.0 methods: Toolbox, Assessment and Implementation Sequences for Industry 4.0

The economically successful implementation of Industry 4.0 methods in industrial companies requires a structured introduction process. The main objective of such a structured implementation process is the case-specific analysis and evaluation of available Industry 4.0 methods to select the most suitable ones for an individual company. The presented methodology aims to establish a financial, strategic, and benefit-oriented evaluation approach for Industry 4.0 methods to assess their potential. The core of our methodology is a general Industry 4.0 toolbox providing a structured classification of different methods. In the first phase, a limited set of Industry 4.0 methods is derived from the toolbox by classification into production typologies. In the second phase, all Industry 4.0 methods of the derived set are strategically assessed as well as evaluated from a monetary perspective. The evaluation of the methods is based on company-specific characteristics, its strategic focus, and its (market) environment. Based on this evaluation, we develop specific, value-adding implementation scenarios. In the third phase, the identified implementation scenarios with their specific order of prioritized methods are simulated in a System Dynamics model. The three phases ultimately result in a recommendation for a company-specific Industry 4.0 implementation roadmap.

Corporate governance information disclosure on the websites

The purpose of this study is to explain the relationship between company-specific characteristics and the extent of enterprise government (GC) information disclosed on the websites of 91 SBF 120 companies. The empirical results show that for the French context, the size of enterprises, profitability and board size are the most important factors influencing corporate governance disclosure (CGD) through their websites.

Company-specific Characteristics and Market-driven Fixed Asset Revaluation in an Emerging Asian Economy

"This study aimed to explore the company-specific and market factors driving fixed asset revaluation (FAR) in an emerging economy. Our research was based on a sample of 142 companies listed on the Dhaka Stock Exchange (DSE) – the main bourse of Bangladesh. The binary logistic regression model was the main instrument used to measure the significance level of variables and test the hypotheses. The study found that market conditions, profitability, nationality, debt-to-asset ratio, fixed assets intensity, and company size could influence FAR decisions significantly. But, company age and current ratio have failed FAR decisions insignificantly. Since there are suspicions about the creative practice of FAR, users need to be cautious when explaining and utilizing the information communicated via financial statements of companies that revalued their assets. Besides, regulators should strictly enforce the laws to avoid selective disclosures, and companies should fully disclose market-sensitive information so that corporate stakeholders promptly receive FAR-related disclosures. This paper could serve a large assortment of stakeholders interested in knowing the drivers behind and effects of FAR. Inclusion and the explanation of three new factors, corporate nationality, age, and market condition, could be an extension of the existing FAR literature. Keywords: Fixed asset revaluation, Fair value, IAS 16, Stock market crash, PP&E"