Organizational Financial Performance Research Articles

A STUDY ON IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF THE SELECTED IT COMPANIES IN INDIA

The term "corporate governance" has recently gained popularity in the business world. It is regarded as a moral obligation. It entails promoting adherence to the law in letter and spirit and illustrating ethical behavior. Corporate governance is a critical procedure that influences an organization's financial performance. The main aim of this paper is to investigate the impact of corporate governance on the financial performance of the leading IT sector companies in India. For this purpose five leading IT sector companies (on the basis of market share) have been selected namely TCS, Wipro, Infosys, HCL Tech and Tech Mahindra. The present study is based on Secondary Data. Data of five years (from 2018-19 to 2022-23) have been analyzed through panel data regression. In this study, ROA and ROE are taken as performance indicators and Board Size, Board Composition, CEO Duality, Promoter’s Holding, Size and Age have been selected as independent variables. The outcome of regression analysis showed that only promoters holding and Size have significant positive influence on the ROA and ROE whereas, Age is having significant negative impact on them. Further, it is also concluded that corporate governance variables such as board size, board composition and duality have no significant impact on the performance of the leading IT companies in India.

Effects of environmental operation mode on organizational innovation and organizational financial performance

Along with enterprises reinforcing sustainable development and environmental awareness, environmental impacts induced from each part of the environmental operation mode, from design, manufacturing, packaging, and distribution to wholesalers, dealers, or ultimate consumers, become popular research subjects. Enterprises cannot ignore popular environmental issues and laws & regulations, either, as any new decrees would affect and impact corporate financial performance. For this reason, enterprises have to pay attention to environmental laws & regulations in the production process with relevant upstream/downstream firms. It starts the development of environmental operation mode in industries. Aiming at employees in culture and creative industry in Taiwan, total 400 copies of questionnaire are distributed, and 347 valid copies are retrieved, the retrieval rate 87%. The data retrieve of questionnaire are analyzed with LISREL software, and discussions are proposed according to the results.

PERFORMANCE EVALUATION OF ENERGY COMPANIES WITH A NOVEL INTEGRATED MULTI-CRITERIA DECISION MAKING METHOD

Financial statements are an important tool for assessing and analyzing an organization's financial performance. Financial performance analysis allows for an accurate and appropriate appraisal of an organization's performance. The evaluation procedure must be thoroughly stated because financial performance indicators represent a company's competitiveness. This study provides a novel integrated multi-criteria decision-making method for analyzing an organization's financial performance. The applicability of the proposed method is assessed employing financial ratios that are integrated to generate a financial performance score for eight well-known Turkish energy companies. The criteria are weighted using the entropy method in the proposed method. The multi-attributive border approximation area comparison (MABAC) method is used to rank the companies. As the weights of the criteria have an impact on the ranking outcomes, a sensitivity analysis of the weights is performed. We also exhibit a comparison analysis of energy company rankings to validate the proposed approach's results using four MCDM methods: ELECTRE, MAUT, TOPSIS, and WASPAS. In addition, an alternative weighting method is also used to evaluate the results. The results show that the proposed method is an effective MCDM for coping with evaluation problems.

Effect of Employee Maintenance and Training Costs on Organizational Performance

This study examined the effect of employee maintenance and training cost on performance of firms in Delta State between 2016 -2020 financial years. The objectives of the study are to examine the extent to which employee maintenance cost affects financial performance of firms. Also, it looks at how employee training cost affects financial performance of manufacturing firms in Delta State. The study adopted the longitudinal research design and the data collected were analysed using ordinary least square regression analysis, descriptive statistics, and correlation analysis. However, the study used hausman effect test to check between fixed and random effect that play on the data. Employee maintenance and training costs were proxy; while firm performance was proxy by return on assets. The study found that employee maintenance cost (0.02) and training cost (0.01) has positive and significant effect on the financial performance of organization. The study concluded that manufacturing firms should invest on human resource development to be able to have competitive edge over competitors in order to achieve the wealth maximization objectives. Based on the findings, the study recommended among others, that management of firms operating in Delta state should reduce their funding of human resource maintenance, as increase may negatively and significantly impact on the performance of firms operating in Delta state. Also, that management of firms operating in Delta state should increase their spending on training their human resource.

The Nexus between Corporate Governance and Financial Performance of the FTSE 100 Index Entities in the United Kingdom

The place of corporate governance components and their influence on the financial performance of organizations have continued to be at the forefront of discussion about the non-financial determinants of profitability. In this study, our primary objective is to investigate the influence of corporate governance components (Board Size, Audit Committee Size, Board Independence and Board Gender Diversity) on the performance of FTSE 100 Index Companies measured as Return on Asset, Return on Equity, Tobin’s Q and Share Price. Secondary data were collected from 2010–2019. To analyze the data collected, Panel data regression analysis with Fixed and Random Effects, OLS, and FGLS estimation techniques were employed. The results of the analysis revealed that Audit Committee Size and Board Gender Diversity have a significant positive influence on financial performance measured as Return on Equity (ROE) and Tobin’s Q, while Board Gender Diversity has a significant positive effect on firm performance measured as Share Price.

Internal Control Process and Organizational Performance of Selected Deposit Money Banks in Nigeria

This study investigated the relationship between internal control process and organizational financial and non-financial performance of selected deposit money banks in Nigeria. with specific objectives of determining the effect of risk assessment and monitoring activities the performance of DMBs in Nigeria. Primary data was collected using questionnaires administered to top level employees and other employees of 11 banks using a purposive random sample of 150 respondents out of which 97 responses were collected. The data were analyzed using descriptive statistics, correlation analysis, exploratory factor analysis and regression with aid of Statistical Package for Social Sciences (SPSS) version 26. The result of the analysis shows that risk assessment risk assessment practice has a positive impact on the performance of deposit money banks in Nigeria (B= 0.390, t= 4.019, p < 0.01) and that monitoring activities have a positive impact on the performance of deposit money banks in Nigeria (B= 0.415, t= 4.019, p < 0.01) Each has a positive and significant impact on financial, non financial and overall organizational performance DMBs in Nigeria. Based on the findings, it is concluded that internal control mechanism is a significant predictor of organization financial and non-financial performance and that effective internal control systems must incorporate the effects of risk assessment and control activities to enhance organizational performance of DMBs. The study therefore recommended that internal control systems especially risk assessment and monitoring activities are significant areas and management of DMBs in Nigeria should give great attention to them in order to improve organizational performance.

Controls and performance: assessing the mediating role of creativity and collegiality

This study examines the mediating role of two types of employee related behaviour, creativity and collegiality, in the association between the use of Snell’s (1992) three control types (i.e. input, behaviour, and output) with individual employee job performance and organisational performance. An online survey questionnaire was used to collect data, with 203 responses received from Australian lower-level managers. The findings reveal that while output controls influence both individual employee job performance and organisational performance directly, creativity and collegiality play significant roles in mediating the associations between input and behaviour controls with both individual employee job performance and organisational performance. Overall, the findings contribute to the MCS literature by providing an empirical insight into how the use of different types of controls can enhance specific aspects of performance, i.e. individual employee job performance, and organisational financial and non-financial performance, via employee related behaviour (creativity and collegiality). Such findings have important implications for practice.

Index to degree of adhesion to good practices of corporate governance and their effect on financial performance: evidence for Chilean companies

Over recent decades, numerous financial crises have affected the global economy, which were caused by the lack of ethical values and conflicts of interest amongst the leaders of organisations. To protect organisations and their interest groups, regulators have developed norms to discourage and prohibit unethical practices through promotion of good practices of corporate governance. However, the literature on good corporate governance practices focuses mainly on developed economies without considering the challenges of developing countries. Therefore, this research proposes an index to measure the degree of adherence to good corporate governance practices in an emerging economy, like Chile, and estimate its effect on the financial performance of companies. Through a panel analysis, this research provides evidence that shows the existence of a positive and significant relationship between this index and financial performance of organisations, as well as a persistence of its benefits over time when companies adopt good practices.

MEDIATING ROLE OF EMPLOYEE ENGAGEMENT ON THE RELATIONSHIP BETWEEN WORKPLACE SPIRITUALITY AND EMPLOYEE JOB PERFORMANCE

There is a growing trend of workplace sprituality in the management world. Not only workplace sprituality but employee engagement also catched the attention of the managerial employees because of its consequences. The main consequences of the emplyee engagement are employee job performance and organizational financial performance. The main aim of this study is to briege a population gap in the public listed banks Sri Lanka. Identified gap is that there is no evidance related to the Sri Lanka banking sector on the mediating effect of employee engagement on the relationship between work place sprituality and employee job performance. This is a quantitative study which uses random Sample of 92 of the managerial employees in the listed banks in Sri Lanka. The main purpose of the study is hypothesis testing and cross sectional study was conducted in a natural environment with the minimum researcher interference. Initially reliability and confirmatory validity is ensured using SmartPLS 3.3.9 software and partial least squares model is used to examine the hypothesis. This study found the positive significant relationship between spirituality and job performance and which have empirical and theoretical contributions.

Executive compensation and the financial performance of Polish listed companies from the corporate governance perspective

Research background: The level of compensation earned by CEOs and the relationship between executive pay and companies? performance is one of the most widely studied issues in the corporate governance literature. Studies conducted in the last several decades have provided evidence that CEO pay should be aligned with accounting financial measures. Purpose of the article: The main purpose of this paper is to determine the relationship between executive compensation and organizational financial performance. In particular, the effect of net income and comprehensive income as the accounting measures of financial performance on executive compensation is compared. Methods: The research comprised listed companies on the Warsaw Stock Exchange (WSE). The role and effect of accounting financial measures on executive compensation are analyzed based on three regression models. The period of analysis spanned ten years, from 2009 to 2018. Findings & value added: There are three conclusions that can be drawn from the study. Firstly, executive compensation in the analyzed companies largely depends on the accounting measures of financial performance, based on net income and comprehensive income (excluding ROE). Secondly, its level is significantly and positively influenced by the company?s size, Tobin?s Q ratio, debt ratio, and dividend rate. Thirdly, comprehensive income has a stronger effect on executive compensation than net income. Our findings add some potentially noteworthy dimensions to the economic literature on corporate governance, which is especially important to apply in the CEE region and other emerging economies. The Anglo-American assumption of corporate governance and executive compensation policy might not be suitable for the realities in much of the world.

Corporate Governance and Humble Leadership as Antecedents of Corporate Financial Performance: Monetary Incentive as a Moderator.

Investors' confidence in the financial market is boosted by good corporate governance (CG). Good governance builds trust and improves an organization's financial performance (FP). However, organizations with bad management lose the trust of their stakeholders because they do not perform well financially. Therefore, the purpose of this study is to examine the influence of CG 89; on FP through mediating the role of humble leadership (HL) and monetary incentive (MI) as a moderator between CG and HL. Data were collected from 300 respondents who were working in various cement manufacturing organizations located in different cities of Pakistan. The analysis was performed using SPSS software version 25 and AMOS version 22 software to work out the study sample size. The result revealed that the framework of CG has a positive impact in terms of FP. Furthermore, HL positively and significantly mediates on CG, and FP is inextricably linked. However, MI acts as a moderator between CG and HL, but despite strengthening, it weakens the impact of CG' on HL. This study contributes toward the literature, specifically toward the expectancy theory literature. Finally, some theoretical and practical implications at the organizational level are offered, describing how CG influences FP within the organization, and research limitations and future directions are presented.

Corporate Social Responsibility(CSR) Evaluation & Effectiveness of Disclosure and its Impact on Financial Performance: A Case of Indonesian Corporations by Longitudinal Evidence

Abstract: Purpose: To see if corporate social responsibility (CSR) is linked to financial performance in Indonesian enterprises. Despite the fact that CSR was first revealed in Indonesia. Method:This study, which is based on a longitudinal information study, consists of the two hundred most famous organizations, which were chosen from 672 recorded corporations that lead Bursa Indonesia between 2010 and 2020 by content Analysis. Secondary data analysis of recorded market data from Indonesia was used in this study. The necessary information was retrieved and recorded so that it could be analyzed subsequently. Additionally, SPSS was used to analyze the filtered data from which a generalized linear regression model was adopted. Result: The linearity test reveals a linear link between Corporate Social Responsibility and Firm Performance. Leverage, income per share, firm size, resource turnover, and corporate social responsibility have all been identified as critical indicators of an organization's financial performance in past studies. The present results corroborate this. Limitation: Expanding the specimen estimate, possibly to different agencies not fundamentally recorded; probably to 250 best organizations in Indonesia may consider a preferred measure of the impact that CSR has on the financial performance of Indonesian agencies. Contributions: Through its observations and discussions, this research contributes to theoretical and methodological advancements in the field of business. The report reinforces and advises businesses on the importance of corporate responsibility in their quest to increase financial performance, particularly in Indonesia. If enterprises follow the study's recommendations, they can achieve unprecedented levels of financial enactment. Keywords: 1. CSR 2. Stakeholder 3. organization 4. corporate 5. engagement 6. investor 7. commitment 8. Financial 9. Performance

Exploring the financial performance of a few housing finance companies

This paper investigates the financial performance of a few Indian housing finance companies. Several variables, such as capital utilization, cost, revenue, and profit margin, all have an impact on an organization's financial performance. This investigation has broken down the financial performance of HFCs for the top six HFCs in India over an eight years period. This report examines the growth of profitability and financial adequacy of HFCs, as well as their financial performance in terms of operating profit, net profit, return on capital employed, and return on assets. In this analysis, the F test is used in two ways to analyze the financial information of HFCs.

The effect of internal branding on organisational financial performance and brand loyalty: mediating role of psychological empowerment

PurposeThis study explores the effect of internal branding on organisational financial performance and brand loyalty with the mediating role of psychological empowerment.Design/methodology/approachThe data gathered from 200 Pasargad insurance employees in Iran were analysed. Structural equation modelling and R were used to evaluate the model. Financial performance was measured by four concepts (ROI, ROE, Sales growth, ROA) based on available data from March 2010 to March 2020.FindingsThe results revealed that internal branding and psychological empowerment have no significant effect on financial performance, but both have a significant positive effect on brand loyalty. Likewise, the mediating role of psychological empowerment on the subject of the impact of internal branding on brand loyalty was confirmed. Furthermore, psychological empowerment did not play a mediating role in the impact of internal branding on financial performance.Research limitations/implicationsThe findings of this study could be important for managers of organisations active in the insurance industry to highlight internal branding and enhance psychological empowerment and employee brand loyalty. Moreover, managers' perception of the effective role of psychological empowerment to enhance employee brand loyalty is another practical aspect of this research.Originality/valueConsidering the mediating role of psychological empowerment to the effect of internal branding on financial performance and brand loyalty is an innovative aspect of the present study. Meanwhile, the use of R software for VB-SEM was another point to surge the value of this paper.

Impact of Executive Compensation, CEO Compensation and Board Diversity on Organizational Performance with Moderating Effect of Systemic Factors

Purpose: Current research intended to probe the impact of executive compensation, CEO compensation and diversity on the organizational financial performance with the moderating role of systemic factors. Systemic factors are overall country based factors such as political, economic, social and legal factors that may moderate the relationship of executive compensation, CEO compensation, diversity and organizational performance.
 Design/Methodology/Approach: To conduct study secondary data is collected from annual reports of domestic scheduled public sector banks of 2015-2020. Executive compensation, CEO compensation and board gender diversity are bootstrapped on organizational performance by using MS Excel and Stata17. Linear regression and moderated hierarchical regression analysis is used for data analysis.
 Findings: Results shows that Executive compensation, CEO compensation and diversity has signification positive impact on organizational performance. Moreover systemic factors moderates the predictors and outcome relationship
 Implications/Originality/Value: This paper explores the relationship of Executive & CEO compensation, board gender diversity and organizational performance with the moderating role of systemic factors, which has largely been ignored in the previous literature

Benefits of Company Management Systems with Combination of ERP (Enterprise Resource Planning)

This study aims to determine the advantages of implementing a company management system with a combination of ERP in a company. The type of research used is a literature review. In this study, in the administrative control process, the ERP framework can be a facilitator in carrying out the administrative control process. For the preparation and planning process. The advantages of using an ERP framework combine the organizational lines of a coordinated business framework, extending the effectiveness and usefulness of the organization, disclosing precise detailed information and making controlled preparations. As a result of this research, there are several modules in the ERP framework, such as FI (Financial Bookkeeping), which are designed to provide a continuous estimate of an organization's revenue and measure an organization's financial performance against internal and external exchanges. information. Using the FI module, administrators can screen and examine an organization's financial exhibits that show how well the organization's faculty and staff are performing in extending benefits. The advantages of using an ERP framework combine organizational lines of a coordinated business framework, extending organizational effectiveness and usability, accurate disclosure of details, and controlled preparation.

Benefits of Company Management Systems with Combination of ERP (Enterprise Resource Planning)

This study aims to determine the advantages of implementing a company management system with a combination of ERP in a company. The type of research used is a literature review. In this study, in the administrative control process, the ERP framework can be a facilitator in carrying out the administrative control process. For the preparation and planning process. The advantages of using an ERP framework combine the organizational lines of a coordinated business framework, extending the effectiveness and usefulness of the organization, disclosing precise detailed information and making controlled preparations. As a result of this research, there are several modules in the ERP framework, such as FI (Financial Bookkeeping), which are designed to provide a continuous estimate of an organization's revenue and measure an organization's financial performance against internal and external exchanges. information. Using the FI module, administrators can screen and examine an organization's financial exhibits that show how well the organization's faculty and staff are performing in extending benefits. The advantages of using an ERP framework combine organizational lines of a coordinated business framework, extending organizational effectiveness and usability, accurate disclosure of details, and controlled preparation.

Corporate Governance And Its Effect On Firm Performance In An Emerging Economy

Having a board of directors is very important to ensure the smooth running of business processes and have an impact on the company's financial performance. This study to determine the impact of board characteristics namely board size, board ownership and board composition on the financial performance of organizations as measured by Return on Assets. The study employed a descriptive-explanatory research design based on a cross-sectional approach. Correlation and regression analyses were conducted to determine the depth and extent of the relationship between the variables. The study revealed a positive and significant association between the board size and financial performance on an average of 9 board members. Board composition revealed that having more external directors had no effect on the financial performance, it neither increased it nor decreased it, leading to the rejection of the hypothesis. On the other hand, board ownership was found to be beneficial in terms of having directors as owners of the business, corroborating the Stakeholder Theory. The studies showed that there was still a need to select board members with caution striking a balance between the number of directors as well as their composition to ensure that the organization reaps maximum benefits from the board.

Nature of Employee Engagement: Rethinking its Levels

Employee engagement is a human resource facet. Engaged employee is the dream of every Chief executive officer. The reason is the consequence of the employee engagement, namely employee job performance and organizational financial performance. Engaged employee is the instrument of organizational success. This study is to present levels of employee engagement. To present an insight on employee engagement through a thorough desk research is another aim of the study.

Empirical Relationship of Company's Intangible Resources and Corporate Financial Performance- A Panel Data Approach

The present analysis proposed a model to explain the impact of corporate intangible resources, such as research & development (R&D), human capital, and corporate reputation on corporate financial performance. The corporate financial performance was measured with two determinants, return on assets (ROA) & return on equity (ROE). The data had been collected from 81 different manufacturing and consumer goods companies for three years from 2014 to 2016. To investigate the association considering the intangible resources and control variables, the panel data regression is applied. For the descriptive analysis, the mean, dispersion, and correlation among all the variables are examined and the redundant fixed effect test is applied to choose an appropriate model between panel data regression and pooled OLS regression. The study results highlighted that the intangible resources human capital and research & development have significantly and positively impacted the financial performance indicators ROE and ROA. However, the intangible resource corporate reputation significantly, but negatively affects the corporate financial performance ROE and ROA. Likewise, the control variable leverage has a significant impact, but the size has an insignificant effect on corporate financial performance. The study highlights the importance of a firm's intangible recourse in the organizational performance and gives a wider scope to investigate the influence of other intangible resources on organizational financial performance.