Firm Age Research Articles

Changing dividend payout behavior and predicting dividend policy in emerging markets: Evidence from India

Dividends have become increasingly important for capital market participants to achieve financial goals in the rapidly changing Indian economy. This study aims to simplify the evolving Indian dividend puzzle by analyzing the dividend trends, examining the evolving nature of firm and macroeconomic determinants of dividends, and developing a dividend policy prediction model. Dividend trends of 3,162 non-financial listed Indian firms from 2006–2022 are studied to gain insights about the Indian dividend puzzle. Regularization and logit models are used to explore the nature of impact of important dividend determinants. Data-mining methods are employed to build a robust model for dividend policy prediction. Trend analysis reveals a decline in the quantum of dividends and proportion of dividend-paying firms with approximately 90% of the dividend-payers belonging to the manufacturing and service sector. Further findings suggest that size, age, maturity, profitability, past dividends, earnings, and bank monitoring of firms had a favorable impact on the likelihood of dividend payments. Macroeconomic indicators such as GDP growth rate, repo rate, percentage change in equity issues, listings, gross fixed assets formation also had a positive impact. The annual percentage change in debt issues and new project announcements at the macro level with investment prospects at firm level negatively impacted dividends. Dividend prediction model based on the random forest technique achieved the highest prediction accuracy of 90.77% and 77.31% under binomial and multi-class situations. These findings are expected to help corporate executives, portfolio managers and investors proactively design optimal dividend policies and formulate their investment strategies.

Exploring the association of green banking disclosure and corporate sustainable growth: the moderating role of firm size and firm age

Exploring the association of green banking disclosure and corporate sustainable growth: the moderating role of firm size and firm age

Pengaruh Peran Komite Audit, Umur Perusahaan dan Ukuran Perusahaan terhadap Audit Delay: Studi pada Perusahaan Sub Sektor Property dan Real Estate yang Listing di Bursa Efek Indonesia 2018-2021

This research aims to find out the effect of audit committee, company age and size firm on audit delay in property and real estate sub-sector companies listed on the Indonesia Stock Exchange in 2018-2021. This research is a quantitative research. The samples collected was 188 data based of the purposive sampling technique. The data used are secondary data obtained from 1 or company websites and other sites related to this research. The research data were analyzed using multiple linear regression analysis. Based on statistical analysis, it can be concluded that audit committee and firm age do not have a negative effect on audit delay. Company size has a negative effect on audit delay.

The effect of liquidity on firm’s performance: Case of Vietnam

This paper aims to estimate the effect of liquidity on the profitability of firms listed on the Ho Chi Minh City Stock Exchange (HSX) in Vietnam during the COVID-19 outbreak. Using a quantitative research method (the feasible generalized least squares method - FGLS), six factors affecting the firms' performance from 2012 to 2021 are identified: COVID-19, the liquidity ratio, firm age, firm size, tangible assets, and gross domestic product growth. This paper has especially highlighted liquidity's negative and significant effect on firms' performance during the pandemic. Therefore, the study findings indicate that manufacturing firms with high liquidity during COVID-19 lose the opportunity to increase revenue due to funds tied to working capital that cannot be used to support the company's operations under the trade-off theory. Besides, high liquidity also increases the company's opportunity cost, which decreases company profitability. However, the study was conducted in a country with government intervention, political stability, and peace, unlike a country in a period of war and economic difficulties, such as Ukraine. Therefore, the article used a cross-country database for more generalizable results.

Determinants of Audit Fees in Nigerian Consumer Goods Sector

The purpose of this study is to assess the determinants of audit fees among consumer goods companies publicly listed on the floor of the Nigerian Exchange Group (NGX). Secondary data of firm size, age and profitability (independent variables), and audit fee (dependent variable) from the chosen consumer goods firms in Nigeria's annual reports and accounts from 2012-2022. “Descriptive statistics (mean, median, standard deviation, skewness, kurtosis, and Karl Pearson correlation); diagnostic statistics (variance inflation factor, Breusch Pagan-Cook test for heteroskedasticity, Ramsey RESET test); and inferential statistics (Chi square test, Fisher's exact test, and t-test) were used to analyse the data;” and principal component analysis) and inferential statistics (ordinary least square). Generally, the results showed that firm size and profitability are the measure determinants of audit fees while firm age do not determines audit fees. It is therefore it was recommended that consumer goods companies need to enhance the size and profitability (return on assets).

Acquisition activity: do firm age and family control matter?

This article examines the relationship between firm age and acquisition activity and how family and non-family firms differ in the number of acquisitions they undertake. Inspired by previous research requiring firm age as a focal aspect and literature studying the antecedents of acquisitions, we draw on the SEW perspective to test our hypotheses based on the analysis of the acquisition activity of Asia-Pacific public firms. Our empirical findings support a U-shaped relationship between firm age and acquisition activity. Moreover, the findings reveal that family firms engage in fewer acquisitions than non-family firms irrespective of the age of the firm.

Determinants of Effective Tax Rate: Empirical Evidence From Selected Manufacturing Industries in Bangladesh

Purpose: The objective of this study is to conduct an empirical investigation of financial and operational firm specific factors that have an impact on the effective tax rate (ETR) for Bangladeshi manufacturing firms operating in a variety of industries. Method: The study solely focused on three different production industries: Pharmaceuticals and Chemicals, Engineering, and Ceramics. At least six years’ set of panel data have been collected from each industry between 2016 and 2021 in order to conduct an analysis of the panel corrected standard error model (PCSE). Thus, the PCSE model is used to conduct an analysis on a total of 265 observations derived from 44 different company listed in DSE. Findings: Out of eight financial and operational factors, firm size and profitability has a significant positive correlation with ETR in practically every sector separately and collectively. The findings are supported by political cost theory that suggests large firms have to pay more taxes due to political attention. One exception has been found regarding Ceramics sector where firm size has insignificant negative impact on ETR. This is reinforced by the political power theory, which states that politically influential corporations are less likely to voluntarily pay taxes because of the incentives provided by the power they wield in politics. On the other hand, Interest coverage ratio, Interest to sales ratio, capital intensity, firm age leverage has also significant impact on the effective tax rate in both model ETR1 and ETR2 differently across sectors. This study also concludes that there is variation among industry to industry and little bit of year indicators. Novelty: The study investigates the factors of manufacturing companies empirically and contributes to the variety of taxation issues among various manufacturing sectors. According to the authors’ best knowledge, there has been very little research on taxes, hence this study is a completely new contribution to Bangladesh’s manufacturing sector. Keywords: Effective Tax Rate; Dhaka Stock Exchange; Political Cost Theory; Political Power Theory

Financial Reporting Quality and Stakeholders’ Investment Decision in Listed Deposit Money Banks in Nigeria

Stakeholders and potential investors require information contained in the financial statement of a business organization to be of high quality to enable them to make investment decisions. The present work explored the influence of Financial Reporting Quality on stakeholders’ decisions to invest in the listed Deposit Money banks in Nigeria. The study population consisted of the 14 listed Money DMBs in Nigeria and a sample of ten (10) banks were selected for a period of ten years (2011-2020). Ex-Post Facto method was used; and data were extracted from the published financial reports. This study assessed the influence of Earnings Management, Accounting conservatism, Financial Statement Timeliness and Earnings Per share on the value (Tobin’s Q). Firms Age and size as control variables. Excel Analytical Tool pack was used for the analyze the regression model. Results from the analyses revealed that financial reporting has a positive effect on Tobin’s Q (AdjR2 = 0.068; F (2, 99), p = 0.048). The individual effects of the explanatory variables revealed that Accounting Conservatism (AC) and financial reporting Timeliness (TML) have positive and significant impact on Tobin’s Q (0.04 and 0.014). However, Earnings Management (EM) and Earnings Per Share (EPS) have no significant effect on the Tobin’s Q (0.75 and 0.41). The control variable of Age has a significant influence with p value of 0.01 while the Firms size does not have significant impact on Tobin’s Q with a p value of 0.85 respectively. This study recommended that in order to build stakeholders’ confidence in investing in a company, organizations are encouraged to publish high quality financial statement.

The Moderating Effect of Politically Connected Boards on The Relationship Between Board Characteristics and Earnings Management

This research aims to test the effect of board characteristics on earnings management. Politically connected boards serve as a moderation variable that affects the relationship of board ownership to earnings management. This research used a quantitative approach and panel regression analysis method. The population of this research used data from companies listed on the Indonesia Stock Exchange (BEI) from 2016 to 2020. The study used a sample of 357 companies. The results revealed that board ownership, board financial expertise, board tenure, politically connected boards, leverage, and board nationality had no significant impact on earnings management. Meanwhile, both firm age and firm size had a significant influence on earnings management practice.

PENGARUH LIQUIDITY, LEVERAGE, ASSET TANGIBILITY, BOARD SIZE DAN FIRM AGE TERHADAP PROFITABILITY

The purpose of this research is to indetify and analyze about the effect of liquidity, leverage, asset tangibility, board size and firm age on profitability in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2017-2020 period. The research design is a descriptive study with a purposive sampling method which resulted 284 research samples. The data processing technique uses multiple regression analysis using Eviews 10 software. The results showed that the liquidity and leverage don’t have a positive effect on profitability. Asset tangibility and board size don’t have a negative effect on profitability. While the firm age has a negative effect on profitability. The implication of this research is that resource management, responsiveness to the market and the ability to analyze factors that affect profitability can increase the profitability and performance of the company so as to meet the needs of stakeholders and maintain survival.

FAKTOR-FAKTOR YANG MEMPENGARUHI NILAI PERUSAHAAN PADA PERUSAHAAN NON KEUANGAN DI BEI

This aims to obtain empirical evidence regarding the effect of earnings per share, managerial ownership, firm age and debt to equity ratio on firm value in non-financial companies listed in the Indonesia Stock Exchange for the 2017-2019 period. The sample was obtained based on the purposive sampling method and the final data used in this study found 135 non-financial companies. The data processing technique used multiple regression analysis assisted by Econometric Views 9. The results showed that the variables of earnings per share, managerial ownership and debt to equity ratio had no significant effect on firm value. Meanwhile, the firm age variable has a significant negative effect on firm value. The implication of this research is the need for the role of company management in paying attention to the age of a company as a strategy to be able to maintain and even increase the value of the company in the future.

FAKTOR-FAKTOR YANG MEMENGARUHI STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR

The purpose of this study was to obtain empirical evidence regarding the effect of profitability, firm size, asset structure, sales growth, and firm age on capital structure. The method used to select the sample is purposive sampling and obtained as many as 39 samples of manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The selected sample will be processed using the Eviews 12 Student Version program and Microsoft Excel. The results shown in this study are that profitability and asset structure have a negative effect on capital structure, firm size and sales growth do not have a positive effect on capital structure, while company age does not negatively affect capital. The implication of this research is that companies need to pay attention to profitability and asset structure to maximize the company's capital structure.

Does young firm growth persist? The role of firm age

ABSTRACT This study investigates serial correlation in growth rates of young firms. Specifically, we examine how past growth affects current growth and how this relationship is moderated by firm age. We use data from four cohorts of Spanish firms tracked over their first 10 years of operation. Results from regression analyses show a positive autocorrelation of growth rates. However, we also find that they become erratic with age. The study contributes to the literature by providing a nuanced view of growth autocorrelation in the case of young firms.

Analysis of the survival of technology-based companies linked to business incubators

ABSTRACT Technology-Based Enterprises (TBE) contribute to the economic development of nations through the diffusion of knowledge and innovation, thus being important for the economic growth and competitiveness of territo-ries and countries. Studies point out the difficulties in creating EBTs as well as the high mortality rate. Thus, this study aimed at analysing the survival of incubated and graduated EBTs linked to business incubators in the state of Minas Gerais, Brazil, considering the explanatory variables at the company, incubator, and municipality levels. Non-parametric and semi-parametric survival analysis statistical methods were used to, first, perform a descriptive analysis of survival characteristics and, second, evaluate the relationship of explanatory variables with survival time. A sample of 603 companies was used, obtained from the InovaData-MG platform, with a record of being active or inactive from January 1990 to December 2019, according to the Brazil-ian IRS website. The results pointed out that when disengaging from incuba-tors, graduated companies are subject to a higher risk of failure, and that in-cubated ventures that also went through an acceleration programme have a higher chance of survival. Failure rates showed a non-linear relationship with firm age. Firm-specific, microeconomic, and industry specifications have important implications for the survival of the studied EBTs. This study used a new data set and a statistical technique not usually employed, which allowed us to offer an important contribution to the prediction of the mortality of EBTs, helping the formulation of more assertive public policies for the growth and development of these companies.

Company Age and Short-term Debt of Companies Listed on the Nairobi Securities Exchange, Kenya

Firms that are listed on the Nairobi Securities Exchange are looking for more cash to support their business operations and carry out particular development projects, thus they are gradually increasing the amount of debt finance that makes up their capital structure. This study aimed to investigate the effect of firm age on short term debt of firms listed on Nairobi Securities Exchange. This study was underpinned on form life cycle theory and pecking order theory. The study used secondary data which was obtained from the listed firms from 2007-2011. Panel data was used and the result showed a positive and significant relationship between firm age and short term debt of firm. From the results, the study recommends that management of companies should carefully consider the company’s age and the impact on debt maturity structure. They should also align short term debt strategies with company’s prospect and long term financial goals. Older firms with stable growth patterns may find short term debt suitable, while younger firms with higher growth expectations may benefit from other debt financing.

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

AbstractThis study aimed to investigate the level of cost accounting (CA) implementation in small- and medium-sized enterprises (SMEs). CA is a management accounting tool whose application in small companies has always been difficult. Nevertheless, academicians and practitioners recommend CA implementation in SMEs, especially because of the deep market instability, competitive pressure, and margin erosion that have occurred following the COVID-19 pandemic and 2022 European war scenario. Company size influences CA implementation; however, it is not the only influencing factor and perhaps not even the most important. To investigate the barriers to the adoption of CA and which conditions or actions can remove these barriers, leveraging from the contingency theory, a questionnaire was sent out in July 2022 to limited liability SMEs operating in the manufacturing, construction, and distribution macro-sectors in Verona and Vicenza provinces (Italy). Respondents answered a set of questions regarding CA implementation in their SMEs as of July 2022. Using a multivariate regression model to analyze data from the 120 questionnaires received, we found that lack of resources, limited training and skills, firm age, and the presence of the founder in the firm had a negative influence on CA implementation in SMEs. The low level of CA implementation was also associated with its supposed inefficiency, uselessness, and unsuitability for business. The effect of company size on CA implementation was not statistically significant. Despite this study’s limitations regarding the sample and period considered, we believe that it contributes to both academic debates and practice by illustrating the limiting factors and ways in which CA implementation can be fostered in SMEs in turbulent years.

Chief executive officer narcissism, corporate inertia, and securities analysts’ stock recommendations

The narcissism of chief executive officers is attracting much research interest because of its potential effects on the strategic decisions, financial performance, and competitive standing of firms. This article addresses a significant gap in the literature by analyzing the effect of chief executive officer narcissism on security analysts’ stock recommendations. As financial-market intermediaries between firms and investors, analysts are an important corporate-governance actor, whose stock recommendations are consequential for the market value of a firm. Drawing on the idea of observers’ implicit leadership theories, we argue that greater chief executive officer narcissism will predict lower analysts’ stock recommendations because narcissistic chief executive officers’ penchant for risk-taking will lead analysts to categorize them as ineffective leaders. We argue further that signals of corporate inertia conveyed by the age, size, and reputation of firms will positively moderate the chief executive officer narcissism–analysts’ stock recommendation relationship, because analysts will expect inertia to be offset by narcissistic chief executive officers’ risk-taking, a dynamic likely to improve firm performance. US panel data provide support for the theorized chief executive officer narcissism–analysts’ stock recommendations relationship and indicates significant moderation effects of the reputation and size of firms. The article discusses the study’s contributions and implications for research and practice.

Analysis of Factors That Influence the use of Accounting Information by MSMEs

In general, the performance of small and medium enterprises (MSMEs) varies from year to year. The output growth rate of small and medium enterprises (MSMEs) changes every year. Financial management is one of the problems often faced by MSME. Although the impact of neglecting financial management may not be immediately visible, a potentially growing company can go bankrupt if it does not use proper accounting methods. There are several other challenges faced by MSMEs, such as a lack of accounting or bookkeeping knowledge, not having sufficient funds to hire an accountant or buy an accounting program that makes bookkeeping easier. It is hoped that this research can help micro and small businesses (MSMEs) make decisions about credit applications and tax calculations. MSME Community in Jenggawah, Jember in 2021 are the subject of this research. This research utilizes multiple linear regression analysis. The research results show that accounting knowledge behavior, firm age, and training on accounting have a significant effect on the use of accounting. In general, the performance of small and medium enterprises (MSMEs) varies from year to year. The output growth rate of small and medium enterprises (MSMEs) changes every year. Financial management is one of the problems often faced by MSME. Although the impact of neglecting financial management may not be immediately visible, a potentially growing company can go bankrupt if it does not use proper accounting methods. There are several other challenges faced by MSMEs, such as a lack of accounting or bookkeeping knowledge, not having sufficient funds to hire an accountant or buy an accounting program that makes bookkeeping easier. It is hoped that this research can help micro and small businesses (MSMEs) make decisions about credit applications and tax calculations. MSME Community in Jenggawah, Jember in 2021 are the subject of this research. This research utilizes multiple linear regression analysis. The research results show that accounting knowledge behavior, firm age, and training on accounting have a significant effect on the use of accounting.

Analyzing the Impact of Employee Perks on Organizational Turnover in the Pharmaceutical Sector of Bangladesh

This study explores the impact of employee benefits on organizational earnings within the pharmaceutical sector in Bangladesh, an emerging economy. To conduct this investigation, researchers gathered pertinent data from the annual reports of 26 pharmaceutical companies listed on the Dhaka Stock Exchange (DSE), spanning the period 2017–2021. The primary variable under scrutiny is the employee benefits ratio (EBR), calculated by dividing the total benefits, excluding regular salaries and wages, by the total revenue. Additionally, the study examines the association between the salaries and wages ratio (SWR) and firm turnover. Focusing on these two key variables, the research also incorporates various control factors— namely, leverage, firm age, tangibility, liquidity, firm size, growth, and non-debt tax shield—to enhance the model's robustness. Organizational turnover are measured using return on assets (ROA) and return on equity (ROE) as the dependent variables. The panel-corrected standard error regression analysis reveals that the employee benefits ratio (EBR) and salaries and wages ratio (SWR) exert a significant positive influence on ROA. This implies that increased salaries and additional benefits serve as motivational factors for employees, fostering job satisfaction and enhancing performance. However, these variables do not demonstrate a significant association with ROE. Furthermore, factors such as firm age, leverage, tangibility, liquidity, and firm size exhibit a notable impact on firm performance. These findings collectively contribute to a comprehensive understanding of the relationship between employee benefits, organizational turnover and will help organizations to design their incentive programs effectively.

Effect of Internet Corporate Reporting on Financial Performance of Listed Manufacturing Firms in Nigeria

The growth in the number of internet users and disclosed information has had a major impact on the performance of different legal and economic frameworks globally. This study aims to examine the relationship between online corporate reporting and financial performance of listed manufacturing firms in Nigeria during pre- and post-IFRS implementation. The population of research was comprised of all one hundred and two (102) publicly traded manufacturing companies in Nigeria as of December 2018. Secondary data were collected from the sample of thirty-one (31) publicly traded manufacturing companies for a period of 10 years, divided into 2009 to 2013 (pre-IFRS) and 2014 to 2018 (post-IFRS. The data collected were analysed using multiple regression analysis. The findings from the study show that online corporate reporting, and firm size positively affects firm value (FV), whereas firm age negatively affects firm value during pre-IFRS periods. The results also show that online corporate reporting and firm age inversely related to firm value, while firm size positively affects firm value (FV) after-IFRS adoption. The research outcome further reveal that negative relationship exists between internet corporate reporting, company size and earnings per share (EPS), meanwhile, firm age has positive influence with earnings per share (EPS) of listed manufacturing firms in Nigeria during pre-IFRS periods. It was discovered that for post-IFRS period, internet corporate reporting and leverage are positively significant with earnings per share (EPS), whereas company size and age do not. Furthermore, the study found that a negative relationship exists between internet corporate reporting and return on equity (ROE) for both pre-IFRS and post-IFRS period, while firm size has a positive relationship with return on equity (ROE) of listed manufacturing firms in Nigeria during pre-IFRS periods only. The regression results also reveal that return on equity (ROE) is negatively affected by leverage during post-IFRS periods. The study recommends that management of Nigerian quoted manufacturing companies should continue using internet as a platform in disseminating company financial information to the stakeholders since the internet corporate reporting positively improve the value of listed manufacturing firms in Nigeria. It is also recommended that the management of Nigerian quoted manufacturing companies should embrace the internet as a tool for communicating with stakeholders in order to improve value of their earnings per share and shares prospects in the market.