Corporate Financial Performances Research Articles

Deciphering Corporate Financial Metamorphosis: A Comprehensive Analysis of Corporate Financial Performances Pre and Post Acquisition

Deciphering Corporate Financial Metamorphosis: A Comprehensive Analysis of Corporate Financial Performances Pre and Post Acquisition

The spillover effect of green bond issuance on corporate financial performances: evidence from China

The spillover effect of green bond issuance on corporate financial performances: evidence from China

Is a Circular Economy Worth it? An Investigation of Corporate Financial Performances

Is a Circular Economy Worth it? An Investigation of Corporate Financial Performances

Financial Stability and Sustainable Finance: A Mini-Review

Sustainable finance explores the relationships between equity, investment and loans and fiscal, social and environmental concerns. The traditional model of shareholders emphasizes on investment and has short-term opportunities. The stakeholder method aims to incorporate and reflects on political, social and environmental factors in the long term. The current systematic review shows that only a portion of social and environmental variables has been taken into consideration. Friction often exists between the templates. In order to avoid a breakdown to a model of small shareholders through acquisitions agreements, if a shareholder-driven business tries to take over a stakeholder-driven corporation, it is recommended using a social cost-efficient test. The purchase should be accepted only if the check shows a strong total social meaning based on financial, social and environmental values. This paper outlines literary advances in the fields of financial stability and financial sustainability. In order to analyze relevant literature publications, a systematic content analysis approach was used. A bibliographic list has been assembled of the published literature including articles. This research concentrates on large peer-reviewed articles, such as Scopus and SSRN indexed in content and influence rankings. The analysis concluded that analyzing the impact of individual sustainable dimensional corporate financial performances had a broader impact on durability that later became a purely social or environmentally-friendly combination, like the CSR. The concern is that the environmental component of the CSR is low and it is easy to overlook the full impact of environmental sustainability. This is, though, balanced by a large number of articles that have continued to be written over the last six years on an individual level of environmental sustainability associated with either single economic or social facets of sustainability. While certain financial measurements also govern the spectrum of literary indices, there is still a universal agreement between scholars on the appropriate set of financial steps. Market-based revenue metrics support accounting by better understanding of business success and integrating future performance standards.

Investigation on leveraging effect of women directors on board to R&D investment and firms' financial performance in the context of developing countries: evidence from Indonesia

This study examines the leveraging effect of gender diversity, specifically women directors on board (WDB), to the relationship between research and development (R&D) investment to the financial performance. Additionally, the study aims to deepen our understanding of the main behavioural driver of corporate financial performances in Indonesia, one of the fast developing countries within South East Asia. Data from 227 public companies listed in Indonesian stock exchange (IDX) are extracted from their 2015 annual reports and corporate websites. Tobin's Q is employed as the dependent variable, along with R&D investment and WDB as main testing variables. Using regression, the study finds that firms' with higher number of women directors on board and more focus on their R&D investment activities, will be able to generate higher financial performance than those firms with lower gender diversity and R&D investments. This paper contributes to literature on R&D investment in Indonesia, which is still limited, to the best of the authors' knowledge. The reported findings also uncover the main important finding of leveraging effect of number of WDB to the relationship between R&D investment and firms' financial performance in Indonesia.

How Intangible Assets Affect the Corporate Financial Performances and How It Varies from Sector – to – Sector?

To explore the varied perspectives of intangible assets and corporate financial performance nexus, this study employs various measures, i.e. Generalized Method of Moments (GMM). Analysis reveals significant variances in different asset classes and in different sectors. The findings provide insights in risk-return paradigm of intangible investments and the successive returns besides helping the policy makers to settle the priority sector to get the expected result in line with the country’s investment policy.

The Effects of Diversity of Workers’ Educational Backgrounds on Corporate Financial and Non-financial Performances

The Effects of Diversity of Workers’ Educational Backgrounds on Corporate Financial and Non-financial Performances

Investigation on leveraging effect of women directors on the board on R&D investment and firms financial performance in the context of developing countries: evidence from Indonesia

This study examines the leveraging effect of gender diversity, specifically women directors on board (WDB), to the relationship between research and development (R&D) investment to the financial performance. Additionally, the study aims to deepen our understanding of the main behavioural driver of corporate financial performances in Indonesia, one of the fast developing countries within South East Asia. Data from 227 public companies listed in Indonesian stock exchange (IDX) are extracted from their 2015 annual reports and corporate websites. Tobin's Q is employed as the dependent variable, along with R&D investment and WDB as main testing variables. Using regression, the study finds that firms' with higher number of women directors on board and more focus on their R&D investment activities, will be able to generate higher financial performance than those firms with lower gender diversity and R&D investments. This paper contributes to literature on R&D investment in Indonesia, which is still limited, to the best of the authors' knowledge. The reported findings also uncover the main important finding of leveraging effect of number of WDB to the relationship between R&D investment and firms' financial performance in Indonesia.

The Effect of External Sourcing on The Financial Performance of Manufacturing Companies Listed in Indonesia Stock Exchange (BEI)

There were differences in research results of several previous studies which examined the relationship between external sourcing and corporate financial performances. Those results indicated that external sourcing could have a positive, negative, or no effect on the financial performance of the company. There was numerous literature stated that external sourcing was a strategy to minimize costs which could reduce production and procurement costs, thus becoming a strategy considered by the top management to improve the company performance. This study analyzed the external sourcing effects on financial performance (ROA) of manufacturing company listed in Indonesia Stock Exchange (BEI). Total population of manufacturing companies listed in the Indonesia Stock Exchange from 2012-2016 was as many as 132 companies, but there were only 70 companies that met the criteria to be the object of the research. The manufacturing company used three industry sectors namely basic and chemical industry, consumer goods industry, and miscellaneous industry as the research objects. Using panel data regression, the research results indicated that external sourcing strategy had a significant and negative effect on ROA. Negative effects resulting from purchases on external parties (external sourcing) were caused by the high cost of sales exceeded the company revenue. Therefore, the company should pay attention to the level of purchases made, namely purchases to the third party on raw materials and goods in the process to have the level of purchases at an optimal point in order to generate profits for the company. Keywords: external sourcing, financial performance, panel data, manufacturing company

Improving competitiveness through performance evaluation using the APC model: A case in micro-irrigation

With a growing worldwide population, water scarcity is growing as well. As most of the usable water on Earth is used for agriculture, micro-irrigation is considered to be desirable, sustainable and much more efficient method than conventional irrigation. This article focuses on management of water resources and performance evaluation of micro-irrigation firms. The competition and corporate financial performances is evaluated using APC model in order to provide strategic directions in water industry. The results, from application of APC model to a micro-irrigation company, provide insight to management in taking corrective actions for improvement in the short term. The results also provide cues in conducting SWOT analysis for developing strategies to compete effectively in the long term. This paper is important to researchers and business executives interested in measuring and evaluating corporate performance in terms of productivity, price recovery, and profitability, as well as to those interested in water conservation and sustainability.

Financial Resources Management for SME`S of Mongolia

This paper Financial resources management analyzes the sources of financing for the medium enterprises in Mongolia by comparing between limited liability companies and public listed companies who are actively working in trading, manufacturing and service providing companies external and internal sources of finances. The paper gives an overview of the related theories of financial sources and capital structuring and aimed to approve based on the empirical studies on the selected three different industries 14 companies (based on the empirical studies done on 14 companies within three different industries). This paper also defined an optimal capital structure for the selected industries and each company based on the scenario analysis and assumptions. This paper investigates the sources of financing for the medium enterprises in Mongolia in different ownership structures by a capital structure theories and their impact on corporate financial performances. There are several theories regarding the process of business financing in general, companies can obtain sources of finances from short term sources, debt finance, venture capital, equity finance and internal sources.

Looking for Evidence of the Relationship between Corporate Social Responsibilities and Corporate Financial Performance in an Emerging Market

Purpose – The purpose of this paper is to examine the relationships between the determinants of corporate social responsibilities (CSR) and corporate financial performances (CFP) of public listed companies in Malaysia. Design/Methodology/Approach – A longitudinal data was collected and doing the analysis by using panel data from the year 1999 until 2011 of annual report from the 10 public listed companies (PLCs) in Malaysia. The statistical power with fixed effect and random effect model was utilized. Findings – The paper found that only one of the CSR dimensions which is community involvement was found that are positively related to the financial performances based on the study in the annual report. While, the other three dimension which are employee relation, product dimension and environment dimension not influence the corporate financial performances. This is show that limited evidence of the relationship between CSR and CFP in the long term. Practical Implication – These findings suggest that Malaysian PLCs should be actively involved in their CSR activities because CSR has a significant effect to the improving corporate social performances of entire companies. Originality/Value – The paper contributes the suggestion and motivation to the managers towards the CSR practices. This study conduct that the research on relationship between two components which are CSR and CFP.

Flexibilizing Labor Relations Systems and Impacts on Corporate Financial Performances in Brazil

Based on the work of Chadwick and Cappelli (2002), this paper attempts to ascertain the impacts of the functional and numerical flexibilization of work systems on corporate financial performances. A Multiple Regression and Variance Analysis was carried out to validate four Hypotheses. Hypothesis 1 may be partially validated, stating that human resources systems based on functional flexibility are associated with a better corporate financial performance, compared to the numerical flexibility system, as a significant alteration was noted in the Net Revenues indicator. Hypothesis 2 was validated, stating that organizations with cost leadership strategies post better performances with human resources systems based on numerical flexibility, with poorer performances by systems based on functional flexibility, as the survey showed a statistically significant difference, indicating a higher percentage of companies with cost leadership strategies in the group of enterprises with a better numerical flexibility profile. Hypothesis 3 may be validated, stating that highly capital-intensive companies post better financial performances with the functional flexibility system, and poorer financial performances with the numerical flexibility system, as the survey showed a positive statistical variance for highly capital-intensive companies working with functional flexibility. Hypothesis 4 could not be validated, stating that unionized companies post better performances with systems based on functional flexibility, and poorer performances with numerical flexibility systems, as the findings did not present any significant statistical variation. The Chadwick and Cappelli (2002) survey obtained findings opposite to those presented by this study. In the USA, this survey demonstrated that companies with functional flexibility post better financial performances in terms of both Revenue and Profit Indicators. The explanation for this difference in the findings may lie in the vast gap between the negotiatory labor system adopted in the USA and the statutary system established by Brazilian Law. Offering more flexibility to enterprises and employees, the US labor system endowings the work-force with greater adaptability, while not burdening the payroll with labor dues.

CEO/CFO Certification and Emerging Needs to Separate Facts and Forecasts: Exploring 'Intertemporal Financial Statements' with Two Time-Phases

The Sarbanes-Oxley Act of 2002 created mandatory certification of financial reports by chief executive officers and chief financial officers, possibly exposing them to forecast risks. This is because accounting standards have moved to include more and more while the public expects financial statement figures to be much more solid than they actually are. Presenting forecasts separately from facts seems most important now and also to qualify them for the SEC's Safe Harbor protection. Intertemporal financial are explored here. Their amounts are presented in three columns, facts, forecasts, and total, where the total column is exactly the same as those in conventional statements. All completed transactions and all cash transactions appear in the fact column and all non-cash transactions awaiting terminating transactions appear in the forecast column. Each column is like pre-consolidation statements for a subsidiary and balances on its own in all statements. Investors and regulators will welcome this added breakdown of conventional numbers since hard and soft numbers are clearly separated for a better assessment of corporate financial positions and performances. We also present a principal-agent setting in which it is optimal to remove contractual pressure from forecasts when the environment is unknown or subject to rapid change.