Corporate Performance Research Articles

Corporate innovation and performance: a textual measure based on securities analysts’ research reports

ABSTRACT The relationship between innovation investment and firm performance has been a central focus of academic research. Traditional metrics, such as patent counts and R&D expenditures, are often criticised for their limited scope and lack of diversity. In contrast, analyst reports offer a richer source of information on innovation activities. This study employs textual analysis to assess firms’ innovation efforts by examining research reports on publicly listed companies. Using methods such as word segmentation, the research constructs corporate innovation indicators based on the LDA (Latent Dirichlet Allocation) topic model. Analyzing data from 2010 to 2021, the study empirically validates these new innovation indicators and investigates their impact on firm performance. The findings indicate that corporate innovation significantly enhances firm performance. Compared to traditional metrics like patents, the indicators developed here are more comprehensive, offering a broader measure of innovation and addressing the limitations of conventional metrics. These results are consistent across various robustness checks. Additionally, the study finds that corporate innovation improves performance primarily by increasing total factor productivity. Furthermore, strong corporate governance amplifies the positive impact of innovation on firm performance.

The Impact of Environmental Assessment of Green Innovation on Corporate Performance and an Empirical Study

Green innovation is an important part of environmental evaluation, which will promote low-carbon economy and directly or indirectly impact enterprises' development performance. The research on environmental evaluation of green innovation mainly focuses on the theoretical aspect, elaborates on waste recycling, social responsibility, etc., lacks practical research methods, and ignores the impact of green innovation. In order to further study the actual impact of green innovation on environmental assessment and the promotion of enterprise performance, this paper proposes a factor regression analysis method. First of all, as well as related literature, the content and indicators of green innovation are extracted, the indicators are standardized, and the invalid indicators are eliminated. Then, a regression analysis of enterprise performance is carried out according to the indicators to find out the main influencing aspects. Finally, the problematic indicators were analyzed, the causes of the indicators were explored, and relevant countermeasures were proposed based on the regression results. The results of the study show that social supervision (X32), government supervision (X31), environmental report disclosure (X11), profit evaluation system (X23), production competitiveness (X21), Environmental technology (X13) and investment (C) are the main influencing indicators, and the degree of enterprise performance has a significant impact. Therefore, enterprises should start from the aspects of environmental report disclosure, social supervision, and profit evaluation system, and formulate measures and countermeasures to improve the role of environmental assessment in green innovation in promoting enterprise performance.

Digitalize and stabilize: corporate digital transformation and performance volatility

ABSTRACT Digital transformation has emerged worldwide as a defining element of corporate strategies, driven by the rapid evolution of technologies. Understanding how digital transformation impacts firm performance and uncovering its underlying mechanisms has become essential for both theoretical exploration and practical application. This study investigates the impact of corporate digital transformation on performance volatility. We find that digitalization significantly attenuates firm performance fluctuations. This effect is primarily attributable to the synergistic interplay of strategic guidance, organizational empowerment, environmental support, and digital achievement. We show that digital transformation enhances performance stability by reducing information asymmetry between firms and their stakeholders. Our results indicate that these stabilizing effects are particularly pronounced in state-owned enterprises. The results are robust after addressing endogeneity concerns. This research contributes to the discourse on digital transformation strategies and their implications for corporate performance and risk management in emerging markets.

Help, The Women are Naked: Bodies, Power & Resistance in ‘Post-colonial’ Uganda

This paper engages with acts of naked protest in Uganda to explore their effect and affect as a decolonial praxis for both gender and human rights. In this paper, the successes of such rights activism by Ugandan women are made clear. With regard to womanhood, this paper discusses how naked protest questions Western epistemologies of gender in colonized Uganda – troubling an exclusionary and racialized sex/gender dimorphism through its anachronistic performance that relies on bringing a specific pre-colonial power imbued in Ugandan womanhood into a ‘post-colonial’ present. With human rights, this paper proposes that both human rights and gender are inextricably linked and must be read in tandem to truly actualize the significance of naked protest. Where claims to womanhood are made, inevitably, claims to a denied humanness are too. Decolonizing the human in human rights requires reconceptualization that consequentially returns us to Wynter’s question: what does it mean to be human? This paper attempts to offer some preliminary answers by necessarily reading this decolonial movement with an epistemic disobedience and by emphasizing the importance/power of the category ‘human’ in ‘post-colonial’ Uganda. Notably so, the ‘limitation’ of naked protest is also explored, particularly its participation within a colonial framework for the way in which naked protest fails to move beyond established gender boundaries. That said this paper questions whether this circumstance marks an inadequacy or, given that naked protest infuses agentic and political meanings to what it means to be a Black Ugandan woman, a necessary utility. Altogether, this paper is interested in reading the performance of naked protest through a lens that goes beyond the corporeal, or more precisely, that reads this corporeal performance in a metaphysical or macro-societal arena paying particular attention to the ways that it utilities pre-colonial cultural meanings as a source of power to demand rights and lay claim to the categories woman and human.

The double-edged sword of transparency: ESG disclosure's effect on competitive dynamics in manufacturing

This study explores the role and impact of Environmental, Social, and Governance (ESG) information on investor decision-making, focusing on the lack of standardized ESG reporting among companies. Although ESG disclosures can enhance a company’s legitimacy and attract investor interest, the voluntary nature of reporting has led to inconsistent practices and limited information quality. The research aims to develop a standardized ESG reporting model that meets investor needs while assessing the effects of ESG performance on corporate outcomes. Using a mixed-methods approach, the study combines qualitative research to formulate an ESG reporting model and quantitative methods to evaluate its impact on company performance. Data were collected from 167 manufacturing companies in Indonesia, selected based on their consistent publication of sustainability reports over four consecutive years. The findings reveal that ESG shows consistent high significance across all three models (Sig = 0.000 for Model-1, Model-2, and Model-3 regression). This uniform high significance underscores the growing importance of ESG factors in various aspects of corporate performance and perception. It suggests that ESG considerations are integral not only to stock returns and firm valuation but also to a company's competitive positioning. The study concludes that while ESG reporting is essential for corporate transparency, it may not always align with positive financial outcomes. This suggests the need for more comprehensive ESG frameworks to balance investor expectations and corporate performance.

Intellectual Capital and Company Performance with Innovation as Mediation Variables

This study aims to examine the correlation between intellectual capital, innovation, and corporate performance in micro, small, and medium enterprises (MSMEs) located in East Java, Indonesia. The proxy for each variable uses a Likert scale measurement by distributing questionnaires to MSME actors. The research sample consisted of 125 MSME actors who completed a returned questionnaire, whereas the study population consisted of 500 MSME company players. The PLS 3 software program is used in the quantitative descriptive data analysis technique. The findings demonstrated that innovation has a major impact on business success and that intellectual capital has a considerable impact on both. Additionally, innovation mediates the relationship between intellectual capital and business performance. Increased innovation will eventually lead to improved company performance if the intellectual capital developed by MSME business actors is more focused on innovation. Specifically the speed and quality of innovation, such as creating new and high-quality products, high-quality services, and problem-solving strategies that are also more accurate than those of other companies. This research contributes to the implications of intellectual capital in the business world which can be carried out early on, in the sense that even though companies are on a micro scale, MSME business actors can manage intellectual capital well in creating company performance. Keywords: intellectual capital, innovation, company performance, MSMEs

"Timely help" or "one disaster after another": The impact of potential and transition interim CEO succession on corporate performance.

The succession mode of interim CEO is highly uncertain. The smooth transition function of interim CEO is particularly important in the process of enterprise reform. We divide interim CEOs into potential successors and transition successors. Then we empirically analyze the heterogeneous impact and mechanism of interim CEOs on firm performance. The results show that compared with transition CEO, potential CEO has less negative impact on corporate performance. Interim CEO has a negative impact on enterprise performance by reducing agency efficiency. The mechanism analysis of this paper are as follows. For the potential CEO, strong incentive constraints can effectively mitigate the negative impact of the succession on corporate performance. For a transitional CEO, superior personal capabilities coupled with an effective oversight mechanism represent more optimal solutions. In today's corporate landscape, the frequencies of executive changes and interim successions are on the rise annually. Our research is tailored to aid enterprises in navigating these transitions seamlessly and in expediting their recovery processes.

Interaksi Antara Laporan Keuangan Konservatif dan Insentif Manajerial dalam Pengambilan Keputusan: Tinjauan Literatur

This study examines the interaction between conservative financial reporting and managerial incentives in decision-making, using a qualitative approach through a literature review. Conservative financial reporting plays a crucial role in enhancing the transparency and accuracy of information utilized by managers in the decision-making process. On the other hand, optimally designed managerial incentives can encourage managers to value and utilize the accounting information presented conservatively. The findings indicate that accounting conservatism can reduce the risk of inappropriate decision-making, although it may also pose potential risks of avoidance towards necessary investments for company growth. This research provides insights into the importance of balancing the implementation of conservative financial reporting and managerial incentives, as well as its implications for corporate performance. The results of this study are expected to serve as a reference for company management in designing more effective incentive systems and reporting.

Pengaruh Insentif Pajak terhadap Inovasi dan Kinerja Perusahaan: Tinjauan Literatur

In the era of globalization, many countries have introduced tax incentives designed to promote technological innovation and economic growth. This paper aims to examine global tax incentive policies in-depth, with a particular emphasis on their effectiveness in enhancing corporate innovation capabilities and performance. The findings indicate that the impact of such strategies on innovation and performance varies across different types and sizes of companies. While incentives provide a positive stimulus for participants, several challenges in policy design and implementation were identified, including a lack of adequate motivational measures and the complexity of policy execution. By comparing various approaches, this review highlights key elements of an effective tax incentive policy, such as policy flexibility, clear objectives, and support for strong internal management within companies. These insights offer new perspectives for theoretical research and practical recommendations for policymakers and business leaders to refine their tax strategies. Ultimately, these approaches are aimed at establishing conditions that foster technological advancement and economic growth.

A Study on the Relationship Between Corporate ESG Performance and Overall Corporate Performance: An Analysis of the Mediating Effect of Information Transparency

This paper aims to explore the impact of ESG (Environmental, Social, and Governance) information transparency on corporate performance, with a particular focus on its mediating effect in corporate governance and the fulfillment of social responsibilities. Through an in-depth analysis, this study seeks to reveal how ESG information transparency enhances corporate governance and social responsibility, ultimately influencing financial performance and market value. A quantitative research approach is adopted, selecting several listed companies as samples and collecting their ESG reports and financial data. By constructing a model, the relationships between ESG information transparency, corporate governance, social responsibility fulfillment, and overall corporate performance are analyzed. Data sources include corporate annual reports, ESG reports, and relevant databases. Path analysis and mediation effect tests are employed to ensure the reliability and validity of the research results. This study not only examines the mediating effect of ESG information transparency on corporate performance but also delves into the moderating roles of corporate governance and social responsibility fulfillment. The findings provide essential theoretical support for companies formulating ESG strategies and offer substantial references for policymakers and investors.

Linking smart manufacturing technologies and sustainable corporate performance: evidence from emerging economy

Linking smart manufacturing technologies and sustainable corporate performance: evidence from emerging economy

The Impact of Corporate ESG Performance on Earnings Management

This paper selects listed companies from the Shanghai and Shenzhen A-share markets between 2009 and 2020 as the sample to empirically analyze the impact of corporate performance in ESG (Environmental, Social, and Governance) on the level of their earnings management activities. The study finds that the better the ESG performance, the lower the company's tendency to engage in real earnings management, significantly reducing the level of real earnings management. In contrast, the improvement in ESG performance increases accrual-based earnings management. Further analysis reveals that for non-state-owned enterprises, the restraining effect of ESG performance is more pronounced. All three dimensionsenvironment, social, and governancecan significantly increase corporate accrual-based earnings management. Compared to environmental responsibility, social responsibility and corporate governance are more effective in significantly reducing real earnings management.

The mediating role of ESG: Managers' moral cognition can improve corporate performance

The mediating role of <scp>ESG</scp>: Managers' moral cognition can improve corporate performance

Coordinated Regional Economic Development: A Study of the Relationship Between Regional Policies and Business Performance

Abstract In the context of the global spread of the Corona Virus Disease 2019, improving enterprise performance, promoting regional economic development, and solving the problem of unbalanced and inadequate regional development are important considerations for regional policy formulation. To understand the relationship between regional policies and corporate performance, this study starts with theories related to regional policies and corporate performance, and proposes two hypotheses. The Western Development, Northeast Revitalization of the Old Industrial Base, and Central Rise Plan are selected as typical representatives of regional policies, and the hypotheses are verified through a double difference model. The results showed that regional policies could improve corporate performance, especially for state-owned enterprises (SOEs). The correlation between the revitalization of the old industrial base in Northeast China and the performance of SOEs was strong, with a correlation coefficient of 0.832. When conducting robustness tests by changing time periods, the correlation values between the performance of SOEs and policies in the three policy implementation areas of revitalizing Northeast China, western development, and central rise were 0.887, 0.764, and 0.652, respectively. Compared to non-SOEs, SOEs had a more significant effect on regional policy improvement. This conclusion was consistent with the empirical results of hypotheses 1 and 2. Based on this foundation, recommendations are offered for the suitability of regional policies to furnish theoretical frameworks for enhancing the regional policy structure and augmenting the precision and inclusivity of regional policy development. The research model is utilized to reveal the important role of regional policies in promoting enterprise performance improvement and promoting regional economic development. It can provide strong evidence support for policy makers. The study offers a scientific theoretical basis and empirical support that assist policymakers in comprehending policy objectives and implementation strategies with greater precision. Therefore, the coordinated advancement of regional economic development is facilitated.

Internationalization speed and corporate long-term performance: Exploring the inverted U-shaped relationship

Using data from China's A-share listed companies spanning 2002 – 2022, our research uncovers an intriguing inverted U-shaped dynamic between the velocity of firms' internationalization and their long-term performance. It reveals that while an initial acceleration in internationalization bolsters performance, an overly rapid pace can subsequently lead to a deterioration. Critically, the proportion of independent directors acts as a moderating factor, as a higher concentration of these directors facilitates a balance between the speed and risks associated with internationalization, ultimately optimizing long-term corporate performance. These findings offer vital insights for companies navigating their internationalization strategies and emphasize the importance of robust corporate governance.

From knowledge to profit: business reputation as a mediator in the impact of green intellectual capital on business performance

PurposeThe purpose of this research is to support the green movement and improve corporate performance by focusing on green intellectual capital and its various components (e.g. green human capital, green structural capital and green relational capital). Furthermore, this study looks into the impact of business reputation in mediating the link between green intellectual capital qualities and business performance.Design/methodology/approachTo obtain data from the target population, this study employed quantitative techniques and a survey approach for data collection from respondents (managers and employees) of firms. The final sample size was 255.FindingsAccording to structural equation modeling green human capital, green structural capital and green relational capital all have a positive and statistically significant impact on organizational performance. Furthermore, the study shows that a company’s reputation plays an important role in mediating the relationship between the green intellectual capital component and business performance. These findings are confirmed by the natural resource-based perspective theory. This shows that developing green intellectual capital and promoting a green environment increases a company’s reputation among stakeholders, which promotes organizational performance.Research limitations/implicationsThe study’s findings will help policymakers and administrators better understand the role of green intellectual capital in business reputation and performance. Based on empirical data, the study would contribute to the management, environmental science and performance literature.Originality/valueTo the best of the researcher's knowledge, this is the first study to apply the natural resource-based view theory and to consider corporate reputation as a mediator between green intellectual capital and business success.

Retraction Note: Fostering sustainability: integrating social responsibility, green finance, and corporate performance

Retraction Note: Fostering sustainability: integrating social responsibility, green finance, and corporate performance

DETERMINANTS OF CORPORATE PERFORMANCE: EMPIRICAL STUDY ON FASHION SMEs IN DEPOK CITY

&lt;p&gt;This study aims to determine the effect of human competence and supply chain management on competitive advantage and its impact on corporate performance in Fashion SMEs in Depok City. The sample used in this study was 150 respondents of micro, small and medium business owners in the Depok City area with purposive sampling technique. This study uses data analysis with the SEM-Partial Least Square (PLS) approach in the form of the Smart-PLS version 3.0 application. The results of this study indicate human competence and supply chain management on corporate performance mediated by competitive advantage. This research is limited to MSME players in Depok City, so it cannot represent the performance of MSMEs as a whole.&lt;/p&gt;

ESG scoring and financial performance in micro and small enterprises

This paper investigates the influence of Environmental, Social, and Governance (ESG) principles on corporate financial management within micro- and small enterprises. The primary objective is to assess the impact of ESG integration on the financial performance of these firms. The study commences with a comprehensive review of ESG reporting, underscoring its significance in evaluating corporate performance and ensuring long-term sustainability. A mixed-method approach, incorporating both quantitative and qualitative analyses, is employed to examine data from 200 Slovak companies across various industries. The study explores the correlation between ESG assessments and financial metrics, including Return on Assets (ROA) and Return on Sales (ROS). The results indicate an ambiguous relationship between ESG scores and financial performance, implying that while ESG adoption is vital for sustainability, its short-term financial advantages may be limited. Additionally, the paper addresses the challenges encountered by Slovak enterprises in ESG reporting, such as insufficient awareness and the perceived financial burden of compliance. Recommendations include broadening the dataset and extending the temporal scope of the analysis for more robust insights. The paper also advocates for heightened awareness of ESG principles through educational programs and the enforcement of EU regulations on ESG reporting. These findings aim to contribute both to academic discourse and the practical application of ESG principles, thereby fostering sustainable business practices in Slovakia.

Effect of concentric strategy on the performance of Commercial State Corporations in Kenya

The study sought to assess the effect of concentric strategy on the performance of Commercial State Corporations in Kenya. 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 was gathered using a structured questionnaire. Collected data was analysed using descriptive data analysis techniques (Mean, Standard Deviation, Maximum and Minimum) and regression analysis. The results were presented using tables and figures. The study established a significant effect of concentric strategy on the financial, customers and internal business process performance of Commercial State Corporations in Kenya (β =0.829, p=0.000&lt;0.05; β =0.648, p=0.000&lt;0.05). Only learning, growth, and development as a measure of a Balanced Scorecard were not affected by the concentric strategy of the Commercial State Corporations. This study concludes that the concentric strategy significantly improved the financial, customer, and internal business process performance of Commercial State Corporations in Kenya, as supported by statistical evidence. However, it had no significant effect on learning, growth, and development performance. The study recommends that Commercial State Corporations in Kenya establish policies for strategic partnerships, develop performance metrics and Key Performance Indicators, and regularly monitor progress to effectively implement concentric strategies and enhance long-term performance.