Economic Performance Of Companies Research Articles

ASSESSING THE IMPACT OF THE SARS-COV-2 PANDEMIC ON EARNINGS MANAGEMENT BEHAVIOUR IN POLAND

The purpose of this paper is to investigate the impact of the SARS-CoV-2 pandemic turbulence on the extent and intensity of earnings management practices according to the opinions of representatives of non-financial companies listed on the Warsaw Stock Exchange (WSE). Methodology. This study is based on the method of standardised computer-assisted questionnaire interviews (CATI). The research sample consisted of 37.1% of all companies indexed on the WSE Main Market that do not operate in the banking, insurance or capital market services sectors. The target respondents were managers, employees of financial and accounting services and other persons authorised by the company's managerial staff representatives. Results. The survey findings showed that the economic turbulence caused by the SARS-CoV-2 pandemic contributed to an increase in earnings management activities in public companies. Respondents who reported that the companies they represented deliberately manipulated earnings were much more confident about the negative impact of the pandemic crisis on the quality of reported data. An interesting finding of the research is that respondents who had experienced earnings management in their professional practice were more likely to believe that the pandemic had distorted the credibility of reported earnings. Finally, the study provided statistical evidence that respondents from larger companies were more likely than respondents from smaller companies to say that the economic crisis related to the SARS-CoV-2 pandemic contributed to an increase in earnings management activities. Practical implications. This investigation may draw the attention of market participants to the deterioration in the financial reporting of non-financial public companies during the SARS-CoV-2 pandemic. The intensification of profit manipulation may not only distort the current perception of the company's economic performance, but also deteriorate the future value of companies. In addition, the findings provide valuable information for statutory auditors, as they highlight potential audit risks that may arise with the onset of the SARS-CoV-2 pandemic. Value/originality. Unlike most studies on the subject, this research does not focus on the estimated values of discretionary accruals, but on the knowledge and experience of financial professionals who are familiar with the specifics of the Polish capital market. An original contribution to the literature is the inclusion in the study of potential factors that could influence the respondents' perception of the impact of the consequences of the SARS-CoV-2 turbulence on the pattern and intensity of the earnings management phenomenon.

INTEGRATED REPORTING – INFORMATION BASE OF GREEN BUSINESS IN SERBIA

Green businesses operate according to green management principles, policies, and practices that improve the quality of life of their customers, employees, the communities in which they operate, and the environment. The path to green business is part of a long-term sustainability strategy. The sustainability of economic activity is identified with respect for the principle of moral justice, which implies the equal right of every person to an appropriate degree of freedom, which does not contradict the freedom of others. Accordingly, it could be stated that the right of the current generation to use resources and the environment must not jeopardize the rights of the next generations. The primary goal of business in today's dynamic environment is to create value for owners. However, the achievement of this goal depends on the achievement of the company's secondary goals, which include creating superior value for customers and ensuring full engagement and motivation of employees, suppliers, and distributors. The connection between the company and other stakeholders is made possible by the wider public, which also has an interest in the company's operations. Therefore, modern companies are focused on creating value for all stakeholders. The interdependence of the company and all stakeholders requires the integration of reports on the financial, environmental, and social performance of the company. In this way, integrated reporting, in addition to financial reporting, also includes a specific form of reporting on sustainable development. Accordingly, the essence of integrated reporting consists in the creation and presentation of financial and non-financial performances, to see the degree of involvement of the concept of sustainable development in the company's operations. International professional organizations and institutions significantly support the process of standardization of integrated reporting, with their framework proposals, guidelines, directives, regulations, protocols, and indicators. Integrated reporting aims to bring together financial reporting on the economic performance of companies with qualitative reports on environmental performance. The basic idea of integrated reporting is to provide an information base on the effects of social and environmental performance and their economic impact on the company. This involves identifying environmental and social costs, benefits, and risks, as well as incorporating their impact on the company's economic performance. According to the above, the paper aims to analyze the disclosure of environmental information within the framework of integrated reporting in the Republic of Serbia. The analysis refers to groups of companies in Serbia, that are included in the National Register of Pollution Sources, with special reference to companies from the sectors of agriculture, forestry, and fishing. The paper will also present the future legal framework in the field of agriculture in the Republic of Serbia, with the goals and activities of The European Green Deal. The bottom line is that it is necessary to support investments in sectors where the Republic of Serbia has comparative advantages (fruit, vegetable, livestock production sectors), improve business management, and provide adequate logistical support. Keywords: integrated reporting, environmental performance, green business. JEL codes: Q01, Q50, Q56

Collaborative Approach for Achieving Ambitious Sustainability Goals: The Prosecco Sustainability Project

Despite attention to sustainability growing in the last decade in the wine sector, the rate of association with wine sustainability programs still appears to be limited. This is mainly related to the uncertainty about the economic benefits related to the implementation of sustainable best practices. In this regard, some studies highlighted that the presence of professionals capable of managing the requirements promoted by the standards generally leads to a positive perception of their impact on the economic performances of companies. Therefore, to encourage participation in sustainability programs, the adoption of a collaborative approach to share the skills and knowledge necessary to manage the transition from a conventional organization to a sustainable one seems to be a functional strategy. This paper presents the Prosecco Sustainability Project as a case study to investigate how a structured set of activities must be deployed through a participatory/collaborative approach to significantly improve the level of sustainability of a wide and heterogeneous community of grape and wine producers. The case study highlights that the collaboration between different actors and the guidance from a coordinating figure capable of fostering dialogue and cooperation among the various stakeholders represent key elements to the large-scale deployment of a sustainable management system.

LITERATURE REVIEW: THE EFFECT OF SUSTAINABILITY ACCOUNTING ON COMPANY PERFORMANCE

The focus of public attention in recent times has been on companies that have gone public. This can be seen from the economic, environmental and social performance provided by the Company. The environment accompanied by social responsibility is able to encourage performance and reduce the company's risks. This research aims to examine in literature the influence of sustainability accounting on the performance of companies listed on the Indonesian Stock Exchange. This research is descriptive research. This research uses secondary methods with a literature review. The data used is research data from several journals that are relevant to the research conducted. Research using the literature review model will discuss or summarize the thoughts obtained from the author's ideas through reviewing several documents on relevant topics. Based on the results of the literature review, it was found that sustainability accounting in the economic disclosure dimension has no influence on the economic performance of a company. The same thing also happens to the environmental disclosure dimension which has no influence on the company's economic performance. In fact, disclosure of social performance has no effect on financial performance. In this case financial performance is represented by return on Assets (ROA). The same thing happens if company performance is replaced with ROS (return on sales), but social disclosure has an effect on company performance as represented by the ROE variable.

Exploring the link between diversification strategy and economic performance in the Moroccan real estate sector: A Data Envelopment Analysis approach

Objective – This study examines the relationship between diversification strategy and company economic performance in the Moroccan real estate sector. The research focuses on measuring the impact of diversification on technical and Scale efficiency using the Data Envelopment Analysis (D.E.A.) method. The objective is to provide empirical evidence regarding the performance differences between diversified and undiversified companies in the Moroccan real estate industry context. Methodology –Data was collected on sales, inventory, and personnel expenses to construct the input-output ratio from a sample of 60 companies in the Moroccan real estate sector. Diversified and undiversified firms were identified based on their business activities. The Data Envelopment Analysis (D.E.A.) method was then applied to measure these companies' technical and Scale efficiency. Findings – The results reveal that diversified companies in the Moroccan real estate sector exhibit significantly higher economic efficiency, around 40% compared to 31% for undiversified firms. Moreover, diversified firms demonstrate superior pure technical efficiency with a score of 47%, while undiversified firms lag at 36%. However, the two groups have no significant difference in scale efficiency. These findings highlight the positive impact of diversification on overall efficiency and suggest the potential benefits of adopting diversified strategies in the real estate industry. Novelty – This study contributes to the existing literature by exploring the relationship between diversification and performance in the particular context of the real estate industry in Morocco. The findings of this study have practical implications. Managers and policymakers can utilize the results to understand the potential benefits of diversification and consider incorporating this strategy into their business models. Type of Paper: Empirical/ Review JEL Classification: L10, R15, R30, M21 Keywords: Economic performance, D.E.A., diversification, Morocco, real estate sector, technical and Scale efficiency, slack Reference to this paper should be made as follows: Saadi, T; Zaoudi, A. (2023). Exploring the link between diversification strategy and economic performance in the Moroccan real estate sector: A Data Envelopment Analysis approach, J. Bus. Econ. Review, 8(1), 40–50. https://doi.org/10.35609/jber.2023.8.1(2)

The Analysis of the Impact of Energy and Environmental Policies of the European Union on the Economic Performance of Companies. Case Study in the Transport Sector

The Analysis of the Impact of Energy and Environmental Policies of the European Union on the Economic Performance of Companies. Case Study in the Transport Sector

Подходы к измерению государственного сектора и оценке его эффективности

Despite the increasing role of the state sector in the economies of many countries, the criteria and approaches to comparative analysis and evaluation of the performance of state-owned enterprises are still ambiguous, as are the methods for cross-country comparisons of the scale of state presence in the economy. The purpose of the article is to systematize the main approaches to measurement of the size of the state sector using Russian economy as an example, as well as to substantiate the significance of this information in assessing the performance of companies with different forms of ownership in the investment and managerial decision-making process. The problems of the information environment, such as the fragmentation of data, incomplete publication of company reports, and the specifics of national databases in different countries, complicate and distort empirical research. Meanwhile, there are significant differences in the performance of state-owned and private companies, as well as in their investment attractiveness to investors in the financial market. International approaches to solving these problems consist in the formation of consolidated and unified databases, inclusion of stateowned companies in the system of national accounts, and creation of guidelines on uniform principles of transparency and accessibility of financial reports. Given the growing restrictions on access to information along with the trend towards the growth of the state sector in Russia, there is an increasing need to develop a unified methodology to measure its scale and assess its impact on the economy, investment and stock market. The proposed methodology and the obtained empirical results allow not only to comprehensively assess the contribution of the state sector in creating GDP and increasing the capitalization of the stock market, but also to conduct comparative studies of performance indicators and stock returns in companies with different ownership structure, as well as an international empirical analysis of the state sector impact on the economies and the financial and economic performance of companies.

The approach to supply chain cooperation in the implementation of sustainable development initiatives and company's economic performance

Research background: The idea of sustainable development, in the face of the challenges encountered by contemporary society, is gaining increasing popularity. Currently, it recognizes the substantial role that companies play in its successful implementation. Initiatives in the field of sustainable development may be undertaken by companies independently as part of their own activities, or together with entities forming the supply chain as an element of sustainable supply chain management. Purpose of the article: Identification of groups of companies that are characterised by a different approach to cooperation in the field of sustainable development in the supply chain. Methods: The quantitative research was conducted in September 2020 with the use of the CATI (Computer-Assisted Telephone Interview) technique and a standardised survey questionnaire. A total of 500 randomly selected companies located in Poland participated in this study. The respondents were representatives of top management of the companies. In order to identify various groups of companies, a cluster analysis was performed using the k-means method in SPSS. Findings & value added: Based on the literature analysis, 3 areas of sustainable development have been identified, in which companies can become involved ? green design, sustainable operations, and reverse logistics & waste management. For each of the 3 areas, 3 clusters of companies were identified: companies that are not involved in sustainable development at all (1), companies that carry out most of the sustainable development initiatives independently (2), companies that carry out most of the sustainable development initiatives jointly with supply chain partners (3). The article also shows that the companies in different cluster differ in terms of perceived economic benefits achieved thanks to the implementation of sustainable development initiatives. This may suggest the need to develop separate sustainability solutions for such groups of companies in the future.

Exploring the impact of R&D intensity, human capital, patents, and brand value on business performance in small and medium enterprises (SMEs)

The study of business performance has a substantial impact on improving the internal management and economic performance of companies. By analysing the previous literature, this paper chooses to measure the factors affecting business performance at four levels, including R&D investment intensity, human capital, patents, and brand value. The purpose of the study is to find out whether these selected factors work equally well for small and medium-sized enterprises. The sample size was 846 Chinese small and medium enterprises from different industries. The firm performance indicators were ROA and ROE. The data has been collected through National Equities Exchange and Quotations platforms based on updated annual reports in 2019. Finally, a stepwise descriptive analysis and multiple linear regression were conducted and predicted the tendency of business performance. The analysis provided the linear combination of four independent variables (R&D, human capital, patents, and brand value) which are significantly related to the dependent variable (business performance). In conclusion, we found that there is a positive impact of patents and brand value on business performance. In detail, we concluded that only production and highly educated personnel show a positive influence. For R&D intensity, there is no strong connection could be observed. In practical terms, this paper allows SME firms to appreciate the importance of human capital, patents, and brand value.

Smart innovation management for better business performance

The purpose of the research is to verify which innovation influencing factors are crucial for achieving optimal business results. The study encompassed low and medium-low technology Slovenian companies. The results showed that two key aspects of the innovation and economic performance of companies need to be addressed: smart financial investments in innovation and management of organisational aspects of the innovation process. The most innovative companies invest less in technology, yet more in other categories: external R&D, training, and marketing. In addition, influential organisational factors are related to the vision and strategic aspects of encouraging innovation. We can conclude that smart innovation management is a prerequisite to better innovation results and, in turn, also better economic results. The implications are relevant for managers so that they can appropriately invest in innovation and address organisational issues.

PERFUMES MANUFACTURING AS PART OF THE CREATIVE INDUSTRIES: ITS GLOBAL AND LOCAL ECONOMIC IMPACT

The article approaches the production of perfumes as part of the creative industries and its evolution. We investigated the international economic stakes of perfume production, showing that global perfume exports have exhibited a sinusoidal evolution in recent years. We presented the evolution of perfume exports, as well as the Export Potential Indicator with reference to countries and export markets. The local economic stakes were exposed through the lens of supply and value chains, showing the direct, indirect and induced economic impact of the perfume industry. We addressed the ethical and economic concerns related to animal testing in the perfume production process. The case study on the Joint Stock Company “Viorica-Cosmetic” elucidated the local impact of the perfume industry in the Republic of Moldova. We analysed the evolution of the company's economic performance indicators.

Pengaruh green supply chain management terhadap kinerja lingkungan dan ekonomi perusahaan pada peternakan ayam di Kabupaten Pesisir Selatan Sumatera Barat

The concept of Green Supply Chain Management (GSCM) is a strategic solution by companies or organizations in order to overcome this problem. The object of this study was the chicken farming industry in Pesisir Selatan Regency, West Sumatra. The aim of this study is that to determine how big the influence of Stakeholder Pressure, Green Supply Chain Management, company green resources on company performance (environmental and economic performance) on chicken farms in Pesisir Selatan Regency, West Sumatra Province. The method used in this study was a quantitative method. In order to obtain data, the researchers distributed questionnaires in the form of statements which represent previous study on chicken farming which includes all parts involved in chicken farming activities, both owners, workers, and final consumers. Moreover, the numbers of samples used were 100 respondents and the data analysis technique used was SEM-PLS using SmartPLS 3.2.9 and normality test using SPSS. Based on data analysis techniques which have been conducted by using SmartPLS, the result of this study shows that stakeholder pressure has a positive and significant impact on GSCM and the company's green resources. Meanwhile Green Supply Chain Management has a positive and significant impact on environmental performance and company economic performance.

Green manufacturing for sustainable development: The positive effects of green activities, green investments, and non‐green products on economic performance

AbstractThis article explores the impact of green manufacturing practices, disentangled in green activities, green investments, and the type of product made, on the economic performance of firms. Using survey data collected by European Commission from European small‐ and medium‐sized enterprises (SMEs), we adopt the self‐determination theory to investigate the extent to which the number of green activities, green investments, and type of product made affects a firm's economic performance. We argue that consumers are affected by firms' green manufacturing practices in response to the pressing environmental issues affecting our era. Our results reveal that while the number of green activities has a positive effect on economic performance, the amount of green manufacturing investments has an inverted U‐shaped relationship to economic performance and that this effect is positively moderated if a company also sells non‐green products. Our study contributes to the literature on green manufacturing by dissecting the effect of green manufacturing practices on a company's economic performance. Our findings also provide managers with advice on the right balance of green practices that most benefit their companies.

The relation between the adherence of integrated reporting to the IIRC framework and economic performance

Purpose: Analyzing the adherence of the Integrated Reports of a sample composed by three Brazilian companies to the IIRC (International Integrated Reporting Council) Framework. Also, understanding the quality contribution of these reports to the generation of economic performance for the adopting companies.
 Methodology: The companies were selected from the IIRC database. Using the method presented by Kiliç and Kuzey (2018) as a reference, a Disclosure Index model was adapted, through the content analysis technique, to measure the level of adherence of the Reports to the Framework. After calculating the Disclosure Index, the Coefficient of Variation of the companies' liquidity and solvency ratios and the macroeconomic performance of the researched period were analyzed, aiming to verify whether the Integrated Reports adhering to the Framework are associated with the economic performance of those companies.
 Results: The results indicate that it is not possible to state that the high levels of adherence to the Framework are associated with the economic performance of companies. The Coefficient of Variation calculation of the financial indexes during the publication period of the Integrated Reports does not present a better result when compared to the period prior to these publications.
 Contributions of the Study: Recent research on the topic of Integrated Reporting does not show a relationship between compliance with publications and the economic performance of Brazilian companies. Thus, this study proves to be relevant when researching the content of the Integrated Reports published by Brazilian companies and the relationship of this information with economic performance, verifying whether the Integrated Reports fulfill the promise of delivering economic benefits to the model's adopters.

Do Environmental Performance and Corporate Social Responsibility Disclosure Affect Financial Performance?

The Ministry of Environment determines the company's environmental management performance evaluation plan or PROPER in controlling environmental effects to improve the company's role in environmental protection plans. However, many companies still get a red or black PROPER rating. Therefore, this study aimed to test the effect of environmental performance and corporate social responsibility disclosure on the company's financial performance. The sample used in the mining sector companies listed on the Indonesia Stock Exchange for the 2015-2019 period, amounting to 49 companies. The sampling technique in this study used a purposive sampling technique. The purposive sampling technique is a sample selection technique using criteria. According to the sample's criteria, this research selected 55 financial statements from 11 companies. The data in this study were analyzed using multiple linear regression. The results of this study indicate that environmental performance and CSR disclosure have a positive effect on the company's financial performance. Then, financial performance and Corporate Social Responsibility Disclosure have a simultaneous and positive impact on the company's financial performance. Research can be considered for mining companies to always pay attention to environmental performance due to company activities. In addition, companies must consistently implement Corporate Social Responsibility in carrying out their business activities. The implementation of sound environmental performance must also be accompanied by the implementation of good corporate social responsibility. The company's financial performance is getting better because these two things can synergistically affect the company's economic performance.

Influence of Projects Financed by the Regional Operational Program on the Economic Performance of Companies

Influence of Projects Financed by the Regional Operational Program on the Economic Performance of Companies

Competitive Advantage as Role Moderation Between System-Driven Performance and Economic Performance

This paper aims to determine the relationship between environmental performance, corporate image, corporate social performance on economic performance by including competitive advantage as a moderator, as well as to describe why and how it is important to carry out corporate care for the environment by companies. This study also aims to expand the topic of discussion by including more variables related to aspects that affect company performance. The population of this study includes all manufacturing companies listed on the Indonesia Stock Exchange in the 2014-2018 Period. The sampling technique used the purposive sampling technique. Based on predetermined criteria obtained 11 companies. The type of data used is secondary data obtained from the Indonesia Stock Exchange website. The analytical method used is panel data logistic regression analysis. This paper provides an empirical view of how environmental factors greatly affect the company's performance. This shows that the increase in good company performance generally comes from companies that pay attention to corporate social responsibility, so that they can have an advantage in competition in the market. Based on the research approach method used, this is a weakness of this study because this research cannot be generalized. It is hoped that future researchers will be able to explore the proportions of other variables that can be used in further research. These results support the legitimacy theory; one of the arguments (O’Donovan 2002) states that in the view of legitimacy, the relationship between profitability and the level of social performance is when the company has a high level of profit, the company considers it unnecessary to report things that can interfere with information. Consumers who are increasingly aware of environmental issues will look for environmentally friendly products. As a follow-up impact, the company will look for suppliers who can solve ecological problems; this will affect increasing the selling power of products or services and can improve the company's economic performance. This paper fulfills the identified need to study how environmental performance supports business excellence thereby improving company performance

Barriers of environmental management accounting practices in developing country

The use of environmental management accounting (EMA) benefits organisations by providing them with different information for decision-making (Burritt, Hahn, & Schaltegger, 2002; Adams & Zutshi, 2004; International Federation of Accountants IFAC, 2005). EMA has received increasing attention since 2000 and is now considered an effective tool for dealing with environmental issues and the economic performance of companies and countries (Elhossade, Abdo, & Mas’ud, 2021). This paper purposes to present an empirical case for research in EMA. The paper provides an analysis of the current status of EMA practices in manufacturing companies operating in Libya and identified the barriers preventing such practices. Data were collected from a sample of companies in Libyan manufacturing industry contexts utilizing a questionnaire survey. To analyse these data, two statistical techniques were employed: factor analysis and descriptive tools analysis. The current level of EMA adoption among manufacturing companies in Libya was found to be low. The findings of the study reveal that institutional barriers constituted the greatest obstacle to the adoption of EMA in manufacturing companies in Libya. This was followed by management barriers, informational barriers, financial barriers, and, lastly, attitudinal barriers. This paper concluded that Libyan universities should include EMA in the management accounting syllabus, provide books, and conduct research into practices related to EMA. Furthermore, the Libyan government and other stakeholders should play an active role in enacting and enforcing further strict environmental regulations and laws. This would be useful, as it would increase the concern of local communities about environmental issues; this would, in turn, make companies more concerned about improving their environmental performance.

Application of Design Management Skills to Support the Use of Design in Product Innovation

Although companies in Slovakia achieve value in the use of design at the level of the European Union average, the lack of knowledge and information about the possibilities and potential benefits of design hinders the effective use of design as a key factor in successful innovation. Good design does not just happen by chance. It is usually the result of a well-managed process. Design management is becoming necessary because it allows the company to reflect the market's needs better and adapt to customers. When design management is part of a company's management processes, the design would significantly impact the company's economic performance and help ensure a competitive advantage in the market. Lack of design management skills is a major obstacle to the wider deployment and integration of design into companies. The paper aims to verify the impact of the achieved level of design management skills on the use of design in product innovation. Through a survey of Slovak companies in selected industries, the authors identified the attitude of companies to the use of design in product innovation. The authors used statistical methods to analyse the level of skills achieved in individual areas of design management. They identified the impact of the level of skills on the design use rate in innovation. This study includes factor and regression analysis methods. The design management skills assessment survey confirms the relationship and correlation between the level of design management skills and the intensity of the use of design in product innovation. The ability to engage others has emerged as the weakest in the design management skills assessment survey. Involving customers and suppliers and creating interdisciplinary teams could bring the company effective use of design in product innovation and thus achieve a significant and sustainable competitive advantage. According to the confirmed results, companies' training to gain the necessary skills in individual areas of design management should increase the level of mastery of these skills and consequently support the use of design in product innovations.

Management practices and their relation to success of Polish SMEs: The empirical verification.

The aim of the paper is to identify management practices that are characteristic for SMEs that achieve market success measured by their business performance in last their years of their operation analyze the relationships between management practices applied in small and medium-sized enterprises and their success measured by their business performance drawing on the data from 2710 SMEs operating on the Polish market. A cluster analysis was used to distinguish homogenous SME groups in view of their management practices. We examined differences between groups in terms of their business performance. The HINoV algorithm allowed six variables to be selected out of 32 management practices chosen initially for testing, with these variables providing the basis for grouping. Modal values and medians were calculated for 17 business performance measures in the three clusters produced. The subsequent analysis of those findings was focused on capturing significant differences. In the group of 2710 Polish SMEs, it was possible to verify that there existed an association between management practices in the field of modern HRM, computer systems supporting management and the company's economic performance, as measured by an increase in net revenue and number of customers over the last three years. In clusters where the above mentioned practices were appreciated, modal and median values of the increase reported in net revenue and number of customers were significantly higher. The research has shown that at a time marked by a shortage of highly skilled personnel one should pay particular attention to building an integrated and committed team of workers and to employee empowerment. The research has also shown that SME managers monitor only a fraction of basic business performance measures, which may prove to be a major risk to SMEs. Previous studies have been largely conducted in a fragmentary manner, i.e. they were concerned with the relationships between the application of some practices (strategic management, BPR, entrepreneurial orientation, monitoring, etc.) and selected business effectiveness measures. In this paper, the research covered SME management practices from a variety of areas which were then compared with the entrepreneurs' assessment as to whether the company's economic condition changed over the last three years. It is also the first attempt in post-socialist economies to identify those SME management practices that are related to better economic results.