Corporate Financial Strategy Research Articles

Impacts of anti-dumping duties on firm’s performance: Evidence from listed firms in seafood industry in Vietnam

The study aims to examine the impact of the anti-dumping tax imposed by the United States under the simultaneous influence of financial factors on the performance of enterprises in the seafood export industry. The author selected data including 21 companies listed on the Vietnamese stock market in the period 2017 - 2022, and used GMM estimation technique to retest the influence of familiar factors such as lag of the firm’s performance, size, leverage, liquidity ratio, sales growth rate to the firm’s performance (measured by ROA), in addition, the paper also provides additional evidence on the impact of new factors: anti-dumping tax and export sales ratio. Research results show that (1) 6 out of 7 independent variables including , Size, Liq, g, ADr, Exp.re / Tot.re are statistically significant, (2) anti-dumping tax rate and geographic revenue structure are both recorded negative impacts on performance. The results of this study contribute academically by providing a new insight into the relationship between revenue and profit in the case of exporting to countries that apply anti-dumping tax and contribute practically by proposing some implications for foreign trade policy and corporate financial management strategy.

The Impact of Ownership Structure on Corporate Financial Strategy CASE STUDY ON KUWAIT ENERGY EGYPT

The Impact of Ownership Structure on Corporate Financial Strategy CASE STUDY ON KUWAIT ENERGY EGYPT

КОНЦЕПЦИЯ ФОРМИРОВАНИЯ КОРПОРАТИВНОЙ ФИНАНСОВОЙ СТРАТЕГИИ В УСЛОВИЯХ ЭКОНОМИЧЕСКОГО КРИЗИСА

The article formalizes the purpose and defines the objectives of the financial strategy aimed at sustainable competitive development of the company. The principles, stages and elements of a corporate financial strategy are defined and justified. The features of its formation and implementation during the crisis are formulated. In relation to it, the principles of forming a financial strategy have been clarified and ranked, its elements and stages have been defined and adapted. A system of anti-crisis measures has been developed for trading companies aimed at ensuring financial stability in crisis conditions.

Inventor CEO and technology M&A

This study examines the effect of inventor CEO on firm's technology acquisition and finds robust evidence that CEOs with hands-on innovation experience are associated with more technology acquisition. We utilize plausibly exogenous CEO turnovers to address the causal effects of inventor CEOs on corporate financial strategy such as acquisition. The effect is more pronounced in firms which CEOs have stronger power or previous acquisition experience, firms with high ownership concentration or non-state-owned firms, firms in high-tech industry or with high product market competition. Our study further shows that inventor CEOs prefer cash payment in technology acquisition and achieve higher premiums. The acquirer's future innovation output has been significantly improved after acquisition. Overall, this study contributes to the emerging literature on executives's personal unique characteristics on corporate mergers and acquisitions.

Is the corporate financial strategy in the oil and gas sector affected by ESG dimensions?

The oil and gas sector is under pressure because of its impact on sustainability. Company’s stakeholders are aware of the ethical behavior of those firms related to hazardous activities. Literature has analyzed the relationship between corporate social responsibility and different measures of efficiency (e.g., financial performance or market value) without a conclusive result.This research establishes an ESG index (environmental, social and governance) that allows a comprehensive measure of corporate social responsibility and its effects on corporate financial strategy. The study analyzes how the ESG index influences the value of oil and gas companies as well as their financial performance and financial risk. To do this, the PLS-SEM was applied to a sample of 219 oil and gas companies in different countries. Results show that the environmental and governance dimensions are the backbone of the ESG index that positively impact on all three.

ОСОБЕННОСТИ И ПРОБЛЕМЫ ФОРМИРОВАНИЯ КОРПОРАТИВНЫХ ФИНАНСОВЫХ СТРАТЕГИЙ В НЕФТЕГАЗОВОМ СЕКТОРЕ

Target. Summarize the features and problems of forming corporate financial strategies in the oil and gas sector. Tasks. Summarize and develop theoretical principles related to revealing the essence of financial strategies, analyze theoretical approaches that reveal the features of financial management in the oil and gas industry; identify and justify the factors determining the need for the formation of corporate financial strategies; structure the main blocks that the corporate financial strategy of oil and gas sector organizations should include. Methodology. In this work, using general methods of scientific knowledge, the issues of forming corporate financial strategies are considered in various aspects, taking into account the specifics of the oil and gas sector at the present stage. Results. Approaches to characterizing the essence of financial strategy are generalized and the author’s definition is proposed; generalized approaches to characterizing the financial system at oil and gas industry enterprises; generalized and characterized the main factors determining the need for the formation of corporate financial strategies in the oil and gas sector; the role of the investment substrategy to the financial strategy of an oil and gas company is determined; the structure of the financial strategy is proposed, taking into account the specifics of the oil and gas sector. Conclusions. Studying the role and place of corporate financial strategy in the financial management system of oil and gas sector enterprises and developing theoretical and methodological provisions for its improvement will not only improve the system for forecasting the financial condition of industry enterprises, but also increase the level of adaptation capabilities of Russian organizations in conditions of instability of the oil and gas market.

Corporate Financial Strategy in an Emerging Market: Evidence from Indonesia

This paper focuses on strategic corporate financial decisions related to capital structure to increased firm value, moderated by the COVID-19 pandemic under MM theory, trade-off theory, and pecking order theory. The analytical method used is panel data analysis, with observations of 1828 non-financial companies on the Indonesia Stock Exchange from the years 2019 to 2021. The results show that there is an effect of capital structure on firm value in a positive direction, and the moderating role of the COVID-19 pandemic weakens the effect of capital structure on firm value. The findings show that capital structure only has a significant effect on firm value for the debt-dominant group, but not for the equity-dominant group. The moderating effect of the COVID-19 pandemic affects firm value for the debt-dominant group, but not for the equity-dominant group.

Socioemotional Wealth (SEW) of Family Firms and CEO Behavioral Biases in the Implementation of Sustainable Development Goals (SDGs)

Agreed upon by the UN member states, Agenda 2030 assumes joint action for long-term sustainable development. These actions are focused on the implementation of 17 Sustainable Development Goals (SDGs), where actions are assumed to lead to the suppression of negative externalities of human activity. It is stressed that the objectives of sustainable development can only be achieved through deep institutional changes in most dimensions of the economy, including the entrepreneurship dimension. Entrepreneurship plays a pivotal role in the sustainable transformation of the community, as the related activities of companies are the source of the desired structural changes. Entrepreneurial projects make the biggest contribution to the objectives of sustainable development through research and development, investment in new technologies, and innovation. The biggest threat to sustainable entrepreneurship is firms’ aggressive corporate financial strategy, which most often results from CEO overconfidence and aggressive financial behavior. The aim of the article is to indicate differences in corporate financial strategies regarding the status of the company (family or non-family) and CEO characteristics (overconfident or non-overconfident). The fulfilment of this aim by analyzing a selected EU member country (Poland) found more aggressive behavior of overconfident CEOs in non-family firms. It was also found that family firms are a fairly coherent group of companies that implement a more conservative corporate financial strategy regardless of CEO characteristics. We can state that family power can curb CEO overconfidence and its impact on aggressive financial strategy. This means that family firms are much more able to create sustainable entrepreneurship and contribute to Sustainable Development Goals (SDGs) within a market framework.

The Impact of Capital Structure onProfitability of Manufacturing Firms on the Ghana Stock Exchange: A Conceptual Analysis

The concept of capital structure has raised considerable attention across many manufacturing sectors since the sector is influenced by many economic factors. There have been many efforts to comprehend the concept of capital structure using different theoretical perspectives. The study is grounded on a literature review that aims to assess the influence of the choice of capitalon profitability by reviewing literature extensively on capital structure theories such as trade-off theory, pecking order theory, agency theory, Modigliani & Miller, and market timing theory. To ensure a firm's profitability, firstly, the firm must be aware of its life cycle stage to determine the appropriate capital mix or structure required. Also, the company must develop a corporate financial strategy to determine the optimal mix of capital to maximize the market value of firms outstanding shares, which will lead to profitability The researcher recommends that managers of manufacturing companies should not overuse the amount of leverage in their capital structure, but rather, they must first attempt to finance their projects through retained earnings and only resort to leverage as a last resort. Managers must strive to reach and maintain the appropriate capital structure level to maximize the firm's performance. The result from the study of literature shows that increases in short term debt and long-term debt affect the manufacturing companies' performance. The implication is that managers should make sure that they identify and maintain the optimal capital structure level to maximize the company’s profit base.

Core Predictors of Debt Specialization: A New Insight to Optimal Capital Structure

Debt structure composition is an essential topic of discussion for the management of capital structure decisions. Researchers made extensive efforts to understand the criteria for selecting debts, specifically, to know about the reasons for debt specialization, concealed in identifying its predictors. This question is essential not only for establishing the field of debt structure but also for the financial managers to design corporate financial strategy in a way that leads to attaining an optimal debt structure. Sophisticated financial modeling is applied to identify the core predictors of debt specialization, influencing the strategic choices of optimal debt structure to address this issue. Data were collected from 419 non-financial companies listed at the Karachi Stock Exchange from 2009 to 2015. This study has validated debt specialization by showing that short-term debts maintain their position over the years and remain the most popular type of loan among Pakistani firms. Further, it provides a comprehensive view of the cross-sectional differences among the firms involved in debt specialization by applying a holistic approach. Results show that small, growing, dividend-paying companies, having high expense and risk ratios, followed the debt specialization strategy. This strategy enables firms to reduce their agency conflicts, transaction costs, information asymmetry, risk management and building up their good market reputation. Conclusively, we have identified the gross profit margin, long-term debt to asset ratio, firm size, age, asset tangibility, and long-term industry debt to asset ratio as reliable and core predictors of debt specialization for sustainable business growth.

The Business Strategy, Competitive Advantage and Financial Strategy: A Perspective from Corporate Maturity Mismatched Investment

Competitive advantage is the key to a company’s success, and the business strategy represents a long-term plan to achieve a competitive advantage by affecting the company’s financial behavior. This research studies the interaction of business strategy, competitive advantage, and financial strategy to explore whether companies choose different financial strategies based on their business strategies as well as what role competitive advantage plays in their decision-making. By building a composite index and observing maturity mismatched investment, this research quantifies the risk level of business strategies and financial strategies. Using text analysis of a company’s annual report, the research builds a dummy variable to measure the competitive advantage. Based on the samples of A-shares listed on the China Shanghai and Shenzhen stock exchanges from 2007 to 2016, the research shows that the risk level of business strategy and financial strategy tends to move in opposite directions. If a company embraces an aggressive business strategy, it is more likely to choose a conservative financial approach in terms of lower overall risks, but for the company with a competitive advantage, the negative correlation between these two strategies is weakened. Further analysis found that company ownership, free cash flow, and the quality of internal control also play a significant role in the interaction between business strategy and financial strategy. Our findings not only enrich research on business strategy and financial behavior, but also deepen the understanding of competitive advantage and corporate financial strategy theoretically.

Barriers to Financial Innovation—Corporate Finance Perspective

This paper addresses the application of financial innovations from the corporate finance perspective. The objective is to identify and prioritize the main types of barriers to the implementation of financial innovations by nonfinancial firms. The motivation behind the study lies in the importance of financial innovations for the firms’ ability to create value. As proven by the extensive literature review, comprehensive studies on financial innovation applications by nonfinancial firms are relatively rare. To cover this cognitive gap, the theoretical argumentation followed by the discussion of results of the empirical research are presented in this paper. The paper provides the results of two-stage survey research, aiming to find opinions of financial managers (end-users) and experts (creators of innovation) on the main barriers to financial innovations in Poland. According to managers, the most important are exogenous barriers, including: (1) Unclear tax and accounting regulations, (2) complex construction of financial innovations, and (3) transaction costs related to their application. On the other side, the experts from financial institutions recognized the greater importance of endogenous factors such as: (1) Lack of sufficient knowledge about financial innovations and (2) the reluctance to change observable in many firms. This study contributes to the ongoing debate on financial innovations by adding the perspective of corporate financial strategy. It also offers insights into the potential actions (at the institutional and individual level) aiming to reduce the barriers and support the implementation of financial innovations by nonfinancial firms.

Optimization of the Financial Strategy of Bilibili Barrage Website from the Perspective of Social Responsibility

This paper studies the modern corporate financial strategy from the perspective of corporate social responsibility performance, using the Internet video site Bilibili as an example to analyze, starting with Bilibili’s strategic environment, based on financing, investment, distribution, and social responsibility. This paper comprehensively analyzes its advantages and disadvantages from its financial strategy. Finally, from the perspective of social responsibility, from three aspects of investment, financing, and profit distribution, the author made optimization suggestions for Bilibili’s financial strategy.

THE FORMATION OF THEORETICAL FUNDAMENTALS OF CORPORATE FINANCIAL STRATEGY

The article considers topical issues of forming corporate financial strategy in the real sector of the economy. It has been shown that the development and implementation of winning strategies, "creating the future" requires the identification or the use of fundamentally new opportunities. The pioneer always gets the right to form their own rules of the game, to stabilize the novelty. This is facilitated by the application of chaos theory, which allows to create methods for diagnostics secret effects, manipulation and destructive latent management of competitiveness and strategy development. It is noted that corporate financial strategy is an integral part and an important element of the management system of the enterprise, occupying a central place among its functional strategies, determines the main directions of improving the management of its financial activities and financial relations with counterparties. The complexity of strategy formation connects with the need of taking into account many dynamic, vague, not always formalized goals and guidelines so appear probability of forming strategy on the basis of conflicting guidelines. Thus, the strategy is a model of goals, actions, capabilities of the corporation for strategic perspective, based on the creation and implementation of which the organizing and managing of financial and other resources of a system is put down. The ideal system can be considered such a system that by changing the strategy of its behavior at some stage of development adapts to the existing projected dynamics of the environment and stabilizes its entropy at the natural level.

The impact of Working Capital Management on firm profitability in different economic cycles: Evidence from the United Kingdom

Literature shows that Working Capital Management (WCM) affects profitability and liquidity. Economic conditions may stress those relationships, especially during economic downturns. We analyze the effects of economic cycle on the relationship between WCM and profitability, using a sample of UK unlisted companies between 2006 and 2014. We find that WCM efficiency increases profitability. This positive impact is even more important during economic downturns. Our results show multi-level effects of WCM on profitability and liquidity constraints, with varying economic conditions. Results matter economically and managerially and highlight the importance of considering WCM as part of overall corporate financial strategy.

Сутнісна характеристика корпоративної фінансової стратегії господарюючого суб’єкта

Сутнісна характеристика корпоративної фінансової стратегії господарюючого суб’єкта

The New Era of Corporate Financial Risk Management and Control Strategy Research

With rapid development of China's market economy, business activities face many risks. The core of the overall management and control of risk is the company's financial risk management. In order to prevent financial risks caused by business management crisis and promote corporate healthy steady sustainable development, the focus on financial risk management and control is a possible series of financial problems and risk to predict and control in the future. In this paper, based on the financial risk characteristics of Chinese enterprises and the management and control situation, in the new period, we strengthen risk awareness, improved scientific financial decisions and build financial risk management and control system by analysing impact factors of financial risk in China to put forward the corresponding management and control strategies.

Effect of aggressive financing policy on firm performance (Listed manufacturing companies in Sri Lanka)

Working capital management is a sensitive area in the field of financial management. It involves the decision of amount and composition of current assets and financing these assets. Studies in corporate finance is considered as study of long term financial decisions, provision of long term assets, and share & dividend policies. However topics of short term finance are not less significant in developing an effective corporate financial strategy. Among the short term strategies, working capital management plays an important role in increasing the shareholders’ value of a firm. Twenty listed manufacturing companies were selected on the basis of random sampling method. Correlation and regression analysis are used for this study. Analyzed results revealed that there is no strong relationship between aggressive financing policy and firm performance in listed manufacturing companies in Sri Lanka. The financial manager's objective in both long term and short term decisions however is the same to select that combination of assets & liabilities that will maximize the value of firm to its owners. Managers must evaluate in their determination of working capital policy for the firm, which involves investing decision regarding current assets and financial decision regarding current liabilities. Given the potential effect of current asset and liabilities on a firm value to its owners, financial managers should carefully evaluate short term investing & financing decision that involve the following issues.

Development of Methodological Approach to Enterprise’s Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential

1. Introduction In modern conditions of the market economy for domestic industrial enterprises there is a problem of finding flexible and efficient rapid ways to respond for constant changes in the environment, on the one hand, and improve the financial--economic activity, as well as the formation of long-term competition policy--on the other. Currently, the Russian economy is determined by: --complexity and instability of the environment; --globalization, which has aimed to integrate of domestic corporations in the world economic system; --need to increase the rate of development and innovation, aimed at meeting the interests of consumers. These factors lead to the necessity of creating and implementing a financial strategy focused on creating competitive advantage, enabling the company to conquer the leadership in the domestic and world markets, to increase the cost of business, to strengthen the financial position and meet the interests of stakeholders. Improving the efficiency of industrial enterprises will contribute to the formation of financial strategy, the ability to adequately adapt to the changing situation in the economy and to promote the rational use of available human, material and financial resources. Therefore, for financial science becomes an important method of integrated assessment of the industrial enterprise's strategic potential, which defines priorities for the implementation of the financial strategy. 2. Methods and Materials 2.1. Main approaches to the definition of the enterprise's financial strategy Determining the nature of the industrial enterprise's financial strategy, factors and mechanisms for its development and implementation currently has both theoretical and practical interest. Problems of effective formation and realization of the enterprise's financial strategy devoted a considerable amount of different sources of economic literature, while generally considered some aspects of its design and implementation or methodological apparatus, which is not enough exhaustively describes the essence of the studied categories. The place and role of financial strategy development which is estimated in the economic literature has been characterized as ambiguous. Theoretical analysis of the various economic literature sources is allowed to identify the following approaches to the definition and scope of the industrial enterprise's financial strategy (Table 1). The most cited definition of an enterprise's financial strategy has seen as an important part of the development strategy, along with other types of functional strategies. In particular, Goritskaya N.G. (2005) considers the financial part of the overall strategy of economic development strategies, consistent with the goals and directions of the latter. Ilysheva N.N. and Krylov S.I. (2004), Thalassinos et al., (2014) and Thalassinos and Liapis (2013) discuss the financial strategy as part of the overall concept focused on the competitive environment. Many authors emphasize in their definition of the relationship with the corporate financial strategy, as in the present conditions of market relations, it is the basis for sustainable development of the enterprise. An analysis of existing approaches to the definition of the company's financial strategy led to the conclusion that, despite the apparent differences, they all contain the same type of distinct elements. Performing semantic analysis allowed to identify the following key points included in the definition quoted in the different approaches (Table 2). Based on the specification of the financial strategy's main elements it is possible to synthesize the author's definition of it: financial strategy is part of the enterprise development strategy, one of the most important types of functional strategies, and is a reasonable concept of formation, coordination, distribution and use of financial resources, associated with risk and uncertainty, taking into account the conditions of dynamism and change in external and internal environment, which aims to develop an effective enterprise, the creation of competitive advantage and maximize the value of equity generated in the framework of the mission and long-term financial goals and objectives. …

From Financial Management Experience to Research Design A Fundamentals Analysis Proposal (II)

The questions suggested by firms financial distress (or bankruptcy) situations are usually preceded by leverage and debt adjustments concerns. This kind of problematic is advised to be placed at financial strategic ideas inside the firm and can be included on the interaction level, besides previous studies have been evidencing the focus on individual ones with prevalence on debt adjustments and financing flexibility. But, finance management and theory beyond this kind of problematic may drive research to the interaction field between firm’s short and long-term financial policy subject to a limit. This is a kind of eutrapelia towards to obtain a real balance between opposite financial tendencies and avoiding all the excesses, involving complementary financial management and dividend policy decisions, as well. All the reality and mainly the firm’s financial phenomena are the result of a permanent interaction between the correspondent variables. This proposal is the (second) direct result from financial management experience to improve research design and achieve new and better solutions for financial policy problematic. This is also a kindly challenge launched to other financial economics researchers and academics to improve even more the results inside a given corporate financial strategy, knowing that financial sustainability should be a firm’s long-term objective. Not only in terms of financing but to also obtain a better management and focus on strategic assets, as is now being claimed by moving away from focus on “quarterly capitalism” to a long-term mind-set. All of them to guarantee sustainability, competitive and optimum business levels instead maximized business activity ones to. In terms of hierarchy, sustainable finance should be above and beyond flexible finance, structured finance, behavioural finance and so on, knowing that improved technical solutions associated with them will be always welcome.