Corporate Performance Research Articles

Nexus between board characteristics and financial performance: Evidence from developing economy

Corporate performance is the key indicator of availing the economic performances in all economies. Especially for the emerging economy, it is the oxygen for smooth economic operations. The study aims to investigate the influence of board characteristics on the corporate performance of the listed pharmaceuticals and chemicals sector from a developing country, namely Bangladesh. This empirical study examines eight attributes of the board and four financial performance indicators of the businesses. Here, the annual reports of the DSE-listed pharmaceutical and chemicals companies are considered to examine the impact of board attributes on corporate performance. Based on panel data analysis, this empirical study concludes that the fixed effect regression model is suitable for all four models. Except board size, the results demonstrate that all board attributes are generally statistically significant. Furthermore, it confirms that all the significant characteristics of the board are positively associated with corporate performance, except for board independence. The research offers valuable insights for policymakers, investors, organizations, and scholars, promoting optimal board structures, innovative solutions, and an enhanced understanding of corporate governance matters. This research explores the challenges in board attributes, which enhances our understanding of corporate governance matters and their impact over the last decade in the listed pharmaceutical and chemicals sectors in Bangladesh.

The Role of CSR in Improving Corporate Image and Financial Performance in the Banking Industry

Corporate Social Responsibility has an important role in improving the company's image and financial performance in the banking industry. Although many previous studies have shown a positive relationship between Corporate Social Responsibility and corporate performance, the phenomenon that has occurred shows that not all banks have experienced an improvement in financial performance despite having implemented Corporate Social Responsibility practices. This study aims to analyze the impact of Corporate Social Responsibility practices on public perception and financial performance of banks, with a focus on sustainability and social responsibility aspects. Using a quantitative approach, data is collected through surveys to customers as well as analysis of financial statements from several leading banks in Indonesia. The results of the study show that banks that are active in Corporate Social Responsibility initiatives tend to have a more positive image in the eyes of the public, which has implications for increasing customer loyalty and acquiring new customers. These findings indicate that a positive image built through Corporate Social Responsibility activities can increase customer trust, which is a key factor in their decision to choose a financial institution. In addition, the analysis showed a significant relationship between the implementation of Corporate Social Responsibility and improved financial performance, where banks that adopted good Corporate Social Responsibility practices showed higher profit growth and better financial stability. This study fills in the gaps in the existing literature by highlighting the factors that affect the success of Corporate Social Responsibility in the context of banking, as well as underlining the importance of Corporate Social Responsibility as an integral component in a business strategy oriented towards social responsibility and sustainability, contributing to broader economic growth and a better society.

Conceptualise the model of creating shared value, organisational performance and the mediating role of change management

Orientation: This research conceptualised the effect of implementing creating shared value concept on organisational performance for the companies in the oil and gas sector in United Arab Emirates (UAE) and introduced the role of change management as mediating factor.Research purpose: The research aims to illustrate the influence of applying creating shared value (CSV) strategies on corporate organisational performance and craft the impact of change management practices on these organisations.Motivation for the study: This study was carried out after spotting the gap and inconsistency pattern in academic literature for the concept of adopting creating shared value as ecological and practical strategies to tackle the unprecedented challenges in the oil and gas sector after unprecedented crisis occurred.Research approach/design and method: The study adopted conceptual analysis as theoretical research methodology that focused on examining and clarifying the definitions, meanings and utilisation of study key variables within a certain field, hence it aimed to ensure the consistent and accurate application of these concepts.Main findings: This study successfully conceptualised the effect of CSV on organisational performance (OP). In addition, this study conceptualised the role of organisational change management (OCM) as a mediating variable on the relationship between CSV and organisational financial performance.Practical/managerial implications: This research crafted the dynamic flow chart for the variables that affect the organisational performance in the oil sector that led to enriching the understanding and prospects of managers and executives to utilise that model among their organisations.Contribution/value-add: This is the first study to enhance the perceptions of factors that influence corporate performance, especially among oil and gas companies in the UAE.

A Study on the Effect of Executive Incentives on Corporate Performance of Chinese Listed Companies

A Study on the Effect of Executive Incentives on Corporate Performance of Chinese Listed Companies

Evaluating the effect of horizontal Integration strategy on performance of commercial State corporations in Kenya

This study aimed to evaluate the impact of horizontal integration on performance of Commercial State Corporations in Kenya. The study was based on positivist research philosophy. A cross-sectional correlational design was adopted as the study design. The target population was 1,026 senior managers of the Commercial State Corporations. The sample size was 99 senior managers in Commercial State Corporations. Primary data were gathered using a structured questionnaire. Collected data was analysed using descriptive data analysis techniques (Mean, Standard Deviation, Maximum and Minimum) and regression analysis. The findings of the study were presented using figures and tables. The study established a significant effect of horizontal integration strategy on financial, customers, internal business process and learning, growth and development performance of Commercial State Corporations in Kenya (? =0.536, p=0.000<0.05; ? =0.548, p=0.000<0.05;? =0.359,p=0.000<0.05;? =0.201,p=0.027<0.05). The study concluded that the horizontal integration strategy significantly improved the financial, customer, internal business process, and learning, growth, and development performance of Commercial State Corporations, supported by statistical evidence. The study recommends that Commercial State Corporations should streamline regulations to facilitate horizontal integration, ensure alignment with strategic objectives, prioritise sectors that enhance efficiency and service delivery, collaborate with competition authorities to comply with antitrust laws, and proactively address market concentration and anti-competitive concerns.

How research contributions of professor Jiju Antony have influenced the field of quality management: an appraisal and critique

PurposeThe purpose of this study is to apply bibliometric techniques to critically examine the contributions of Professor (Dr) Jiju Antony in the domain of quality management research over a period close to 30 years (i.e. 1995 to 2023).Design/methodology/approachThe study incorporates a bibliometric analysis approach using VoSviewer software package to critically examine the contributions and trends in publications on Scopus indexed publications of Antony, followed by an industry wide evaluation of contributions made. Thematic analysis of the bibliographic data was imported in comma-separated values (CSV) format by selecting Antony (last name) and Jiju (first name) in the author search tab in Scopus. The search was made on September 09, 2023 and bibliographic records of 429 documents were considered for the analysis. The analysis was carried out in terms of most frequent keywords used, sources with most frequent publications, thematic analysis of most cited works and global collaborations.FindingsAntony has focused his research interest largely in the domain of quality management, publishing his research in top rated journals in the domain with a broad network of international collaborators. Antony has received 18,802 and 40,947 citations in Scopus and Google Scholar, respectively. This signifies the impact that Antony has created through his research publications. His major contributions are on the topics of six sigma, lean six sigma, continuous improvement, critical success factors and quality management practice implementations in various organizations. Diverse methodologies both qualitative and quantitative were utilized to conduct his research. However, his body of work is not without criticism. Such criticism includes the limited scope of work, with narrow focus on ISO 9001 and QMS standards, Total Quality Management (TQM). Critique also highlights the necessity for more depth, following insufficient exploration of distinctions between TQM and operational excellence (OPEX) methodologies like lean, six sigma, kaizen and agile. Antony’s work has yet to consider a diverse range of industry sectors, in terms of implementation of quality management principles, geographical location, the impact of national culture on corporate performance and explore data quality influence on decision-making. Notably, there is clear opportunity to consider the service sector in future research.Originality/valueTo best of the authors’ knowledge, there are few previous studies conducted using bibliometric analysis for analyzing the work of an individual. Therefore, the present study aims to set a trend whereby bibliometric analysis can be used to recognize and critically asses the contributions of other researchers in their respective domains.

Corporate moral hazard and ESG performance: Unveiling the influence of gross enforcement actions and ownership dynamics in US multinational corporations

AbstractExisting research often highlights the impact of several categories of corporate enforcement action on corporate performance, thus overlooking the impossibility of isolating the impacts of other concurrent enforcement actions. The current study employed the gross value and volume of corporate enforcement actions to examine the influence of corporate moral hazard (CMH) on environmental, social, and governance performance (ESGP) along with ownership dynamics. The S&P data from 2018 to 2022 were analyzed, covering 1925 observations of US multinational corporations (MNCs) based on various aspects of corporate governance (CG). Institutional, insider, and family ownership were applied as proxies for ownership structure. CSRHub ratings represented ESGP, while Sustainalytics ratings were used for robustness. The analysis involved various econometric models, including the feasible generalized least squares model (FGLSM). Resultantly, CMH negatively affected ESGP, whereas CG mechanisms revealed a positive influence. Contrary to existing literature, the size of corporate law cases is a stronger proxy for CMH than the amount of enforcement actions. Although institutional owners decrease the number of enforcement actions, they encounter substantial penalties. Above‐average insiders reduce lawsuits and exert significant control over penalties, while below‐average insiders result in heavier penalties and lawsuits to an extent. Families are the most positively influential owners; having more family owners increases penalties and ESGP but reduces lawsuit size, particularly when ownership exceeds the mean percentage.

Unveiling the relationship between intellectual capital and corporate performance through earnings management practices

Unveiling the relationship between intellectual capital and corporate performance through earnings management practices

Non-financial reporting—A key element in assessing sustainable corporation performance

In the modern economy, non-financial reporting has become an essential tool for evaluating the social performance of companies. This article explores the importance of non-financial reporting as a central element in assessing sustainable performance, focusing on analyzing sustainability reports published by 20 companies listed on the Bucharest Stock Exchange (BVB). The study examines how these companies approach environmental, social, and governance (ESG) aspects in their reports and what is the relationship between these aspects and financial reporting indicators. Through the statistical analysis of the non-financial reports published by companies participating in the study with the help of the Pearson coefficient and the regression equations, the correlation between the financial and non-financial indicators is determined in order to validate the research hypotheses. The results indicate increased attention to transparency and social responsibility, highlighting the correlation between sound reporting practices and cooperative performance by combining social and environmental aspects with financial information. The research also highlights the challenges encountered in the reporting process and the level of compliance with international sustainability standards.

Human capital efficiency, corporate sustainability, and performance: Evidence from emerging economies

AbstractThis study examines how corporate sustainability (CS) influences the relationship between human capital (HC) effectiveness and corporate performance (CP) in the context of emerging economies. Drawing on HC theories and CS, we employ partial least squares structural equation modeling (PLS‐SEM) to analyze data from 94 industrial and service firms listed on the Amman Stock Exchange (ASE) between June and October 2022. Our findings reveal the dual role of HC, which not only directly influences CP but also significantly reinforces CS efforts. This research contributes to strategic management literature by highlighting the mediating role of CS in the HC‐performance nexus. The results underscore the strategic value of HC in enhancing sustainable practices, which positively affect CP. These insights are particularly relevant for emerging economies, where understanding the role of HC can guide corporate strategies toward sustainable growth. Theoretical and practical implications are discussed, with a focus on the importance of HC development to promote resilience and support sustainability goals in emerging markets. Future research could explore these dynamics across other industries and regions.

The Relationship Between ESG Disclosure and Corporate Performance

Abstract: As the economy continues to develop and the focus on sustainable development increases, low-carbon environmental protection has become an indispensable aspect for businesses. In this context, the concept of ESG and its measurement has become a major direction for the international community to assess investment behaviors and targets. However, questions such as what exactly ESG is, how significantly it impacts businesses, and how businesses should respond, need to be studied. This paper discusses these issues from the perspective of ESG information disclosure and corporate performance, outlines the impact pathways of ESG disclosure on businesses, and suggests reasonable responses and measures.

The Impact of ESG on Corporate Performance: A Case Study of Yunnan Baiyao

Abstract: With the deepening integration of the global economy and the widespread acceptance of sustainable development principles, Environmental, Social, and Governance (ESG) factors have become critical elements influencing long-term value and financial performance of enterprises. Globally, an increasing number of companies are paying attention to ESG factors and integrating them into their strategic planning and operational management. This paper employs case study analysis and accounting-related indicators analysis to evaluate the ESG practices of selected enterprises from the dimensions of environment, society, and governance. It then combines financial indicators to analyze the impact of ESG on their financial performance and the reasons behind it. Finally, suggestions are made on how to achieve sustainable development through improved ESG management.

Relationship Between ESG and Corporate Innovation Investment - Based by A-share Listed Companies

Abstract: ESG criteria are pivotal factors in assessing corporate performance, influencing not only a company's social reputation and investor trust but also its innovation investment decisions. Recognizing the crucial role of innovation in enterprise growth and its linkage to ESG factors, This essay examines the association between company innovation investments and ESG levels objectively. Utilizing China's A-shares as the research sample, an empirical analysis is conducted through a linear regression model. The findings conclusively reveal a notable correlation between ESG performance and the level of enterprise innovation investments. Specifically, companies with stronger ESG performance tend to invest more heavily in R&D and innovation. Conversely, enterprises with higher levels of R&D and innovation often exhibit superior ESG standards. This study underscores the mutual reinforcement between ESG practices and corporate innovation, emphasizing the importance of integrating ESG considerations into business strategies for sustainable growth and innovation.

Blockchain Technology and Corporate Performance: Empirical Evidence from Listed Companies in China

Blockchain technology is widely recognized and adopted by many organizations, as it serves as a fundamental technological infrastructure for the digital economy. This has led to a rapid acceleration of industrial transformation and digital innovation. This study employs empirical data from a substantial sample to investigate the potential applications, strategies, and advantages of blockchain technology. This paper examines A-share listed companies in China from 2015 to 2021, offering valuable empirical insights that demonstrate how the implementation of blockchain technology can markedly improve corporate performance in a major global economy. The research in this paper examines the differential effects of blockchain technology by innovatively integrating financial and environmental performance metrics into an empirical model, revealing that implementing blockchain technology significantly enhances environmental performance. Furthermore, it has been observed that blockchain technology adoption can contribute to corporate performance by improving information transparency. It is worth noting that blockchain technology’s influence on enterprises’ performance exhibits discernible variations based on the ownership structure, environmental sensitivity, and technical features of said enterprises. This paper can be used as a guide for enterprises looking to implement blockchain technology and for governments seeking to develop digitalization legislation.

Dual Social Responsibility: The Pathway Effects and Mechanisms of Benevolent and Malevolent Actions on Firm Performance

ABSTRACTWhile doing good things, enterprises may also be subject to subjective or unintentional behaviors of doing bad things, and corporate performance is comprehensively affected by its dual social responsibility. Using data from A‐share listed companies from 2010 to 2020, this paper, grounded in signaling theory, legitimacy theory, and stakeholder theory, analyzes the dual‐path effects, comprehensive effects, and boundary effects of corporate social responsibility (CSR) and corporate social irresponsibility (CSIR) on corporate performance. It innovatively introduces innovation efficiency as a mediating variable to examine its transmission mechanism and pathways in the influence of dual social responsibility on corporate performance. The study finds that CSR and CSIR have independent and heterogeneous effects on corporate performance, with the former exhibiting an inverted U‐shaped relationship with corporate performance and the latter consistently exerting a negative impact. The coexistence and interaction of CSR and CSIR have a comprehensive effect on corporate performance, where CSR performance can mitigate the negative impact of CSIR, and there exists a threshold effect. CSR has a nonlinear impact on innovation efficiency, and innovation efficiency plays a significant mediating role in the process of CSR and CSIR affecting corporate performance. The industrial environment competition plays a moderating role in the relationship between a company's dual social behavior and its performance. The higher the industrial environment competition, the more it will accelerate and intensify the negative impact of CSIR on corporate performance. Additionally, it will steepen the inverted U‐shaped curve of CSR influencing corporate performance and shift the inflection point to the left. This study not only extends the boundaries of research on the impact of CSIR on corporate performance but also provides insights for corporate social responsibility governance and ethical decision‐making in business.

Empirical study of robotic systems implementation to corporate performance in manufacturing sector

PurposeThis study aims to investigate the impact of implementing various robotic systems in logistics and supply chain management on corporate performance in Jordanian manufacturing companies, focusing on environmental, operational, economic, and social dimensions.Design/methodology/approachUsing a quantitative approach, data was collected through a survey questionnaire to measure the relationship between robotic systems and several performance dimensions. Various established constructs were employed, and the structural relationships were analyzed using partial least squares structural equation modeling (PLS-SEM) to assess the complex interdependencies within the model.FindingsThe results of this study indicate that the adoption of robotic systems has a positive influence on the environmental, operational, economic, and social performance of Jordanian manufacturing companies. In contrast to prior research that revealed inconsistencies in the social dimension, our findings align with previous studies highlighting the benefits of robotics in logistics and supply chain management. However, it’s worth noting that this study did not uncover similar inconsistencies, particularly in terms of the impact on social performance.Practical implicationsThe study provides valuable insights for manufacturing companies considering the implementation of robotic systems, highlighting the need to evaluate the environmental, operational, social, and economic consequences. This understanding can help organizations make informed decisions to leverage the benefits of robotics for sustainable growth.Originality/valueThis study contributes to the growing literature on robotics in logistics and supply chain management, specifically focusing on the unique context of Jordanian manufacturing companies. By examining the multifaceted impact of robotic systems, this study extends the understanding of the role of technology in enhancing corporate performance.

Effect of implementing TQM on Corporate Performance in the Construction Industry in Saudi Arabia

Despite the significance of the contracting industry in the Saudi Arabia and the significant investments that are being made in the project sector, there exists an obstacle or delay in the timely completion of projects. This delay leads to several costs, which can impact the strategic plans of the state and impede the progress of economic, social, and developmental goals. Therefore, this study aims to examine the effect of total quality management on performance of the construction companies in Saudi Arabia. The questionnaire was used to collect the data from 272 respondents. The result revealed that there is a positive and significant effect of TQM on the organizational performance of construction companies. The study highlighted that implementing the TQM approach would enhance the overall performance of construction, Saudi Arabia. Limitation and recommendations for future studies was provided.

Employee stock ownership plan as a measure of covering up corporate fraud: Evidence from China

Although companies typically claim to implement an employee stock ownership plan (ESOP) for the purpose of incentivizing employees to enhance corporate performance, many non-incentive motives may be hidden behind this move. Using data on China’s stock market from 2014 to 2022, this paper demonstrates that due to optimistic market reactions, employee stock ownership plans may be related to covering up corporate fraud. Companies that have already committed fraud but have yet to have this fraud detected have a higher propensity for declaring an ESOP. In further research, we found this effect is more pronounced for companies with underperforming stock prices.

The Impact of Open Innovation on the Performance of Multinational Corporations in Emerging Markets: an Empirical Study

The Impact of Open Innovation on the Performance of Multinational Corporations in Emerging Markets: an Empirical Study

Analysis of the Impact of Strategic Thinking on Organizational Performance of Manufacturing Firms in Delta State Nigeria.

This study was carried out to examine the analysis of the impact of strategic thinking on organizational performance of manufacturing firms in Delta State, Nigeria. The objective of the study was to examine the impact of strategic thinking on organizational performance of manufacturing firms in delta State Nigeria. Structured questionnaire was used to obtain primary data from the employees of the manufacturing organizations, namely, Asaba Textile Mill Ltd, Coca-Cola Nigeria Plc, and Delta Glass Nigeria Plc. The hypotheses formulated were subjected to statistical tests using Regression analysis and correlation with the aid of SPSS. The findings or results of the study revealed that strategic thinking has a significant effect on corporate performance of manufacturing firms in Delta State Nigeria with the R2 value of 0.662. Strategic thinking is significantly and positively related on employee productivity of manufacturing firms in Delta State. That strategic thinking has a significant and positive relationship on employee efficiency of manufacturing firms in Delta State, Nigeria with R2 value of 0.681. From the findings of the study, it was concluded that strategic thinking has a significant positive impact on organizational performance since the majority of the stated variables are statistically significant with one another. The study therefore, recommended that in order to enhance or promote strategic thinking, an organization should emphasize to the employees the importance of strategic thinking for the growth of the organization. Finally improvement in the award scheme on the part of management in order to encourage managers and employees.