Market Firm Performance Research Articles

Supply Chain Channel Conflict Management and Marketing Performance of Agricultural Products Firms

This study examined the relationship between supply chain channel conflict management and marketing performance of agricultural products firms in Nigeria. Despite the increase in supply chain channel management conflict literature and the development of the nation’s agricultural industry, there seem to be few empirical research works on supply chain channel conflict management as they relate to marketing performance of agricultural products firms. Particularly, it appears like only few studies have taken into consideration the performance improvement of supply chain channel conflict management on marketing efficacy within the agricultural industry in Nigeria. The lack of literature by scholars with respect to supply chain channel conflict management in the context of Nigerian agricultural industry to resolve conflict among channel members could probably be the root cause of ineffective marketing performance of agricultural products’ firms. On the basis of this limitation, the researchers therefore sought to discuss this lacuna, thereby bridging the acknowledged gap. Based on the objective of the study, a systematic survey was utilized to obtain information from 276 management staff of agricultural product enterprises. The data were analyzed using descriptive and inferential statistical techniques. The results demonstrated that supply chain channel conflict management has a significant relationship with marketing performance of agricultural products firms. It was concluded that supply chain managers should develop adequate supply chain channel conflict management techniques in order to enhance their marketing performance.

ESG Scores and Its Impact on Firm Performance: Study from Nifty100 Firms

The study examines how environmental, social and governance (ESG) scores impact the operational, financial and market performance of firms indexed in the Nifty 100 index for short and long observation periods. Return on assets (ROA), return on equity (ROE) and Tobin’s Q are employed as proxies to evaluate the firms’ performance. The longitudinal research design draws upon secondary data from Bloomberg for ESG scores and Prowess for Interactive Querying for performance indicators. It employs panel regression analysis, and the results indicate a significant difference in the short and long observation periods. ESG adversely affects firms’ operational and financial performance over an extended observation period and has insignificant effects over a short observation period. Conversely, it reports a statistically significant positive impact on market performance in short and long observation periods. It concludes by recognizing its limitations, discussing policy implications and sketching a roadmap for future research. JEL Classification: Q51, Q56

Gender quota laws and firm performance: is there a trade-off?

PurposeThe introduction of gender quota laws in many countries has garnered significant attention in the literature and in the political discourse. Proponents of this solution emphasise its potential to bolster opportunities for women, foster their participation on boards of directors and improve corporate governance, market value and firm performance. Conversely, opponents express concerns regarding the possibility of appointing less-qualified women, thereby diminishing board effectiveness and potentially leading to negative consequences on firm market value and performance. This study aims to address this ongoing debate by examining the impact of gender quota laws on firm performance.Design/methodology/approachThe impact of gender quota laws on firm performance, measured through ROE, ROA and ROI, is evaluated using a database of 27,977 Italian firms and adopting a two-stage traditional treatment effect model.FindingsThe econometric analysis reveals a negative impact of the gender quota law on firm performance.Originality/valueThis study contributes to the academic debate on the pros and cons of imposing gender quota laws by providing empirical evidence on their impact on firm performance.

Balancing customer and employee orientations: impact on financial distress and firm value

PurposeThis paper investigates the effect of balanced orientation (BO) toward customers and employees on financial distress and firm valuation. Rooted in stakeholder theory and the attention-based theory of firms, the study aims to understand how a balanced synthesis of employee orientation (EO) and customer orientation (CO) influences the long-term market performance and survivability of firms, particularly in the context of emerging markets.Design/methodology/approachA panel dataset of the top 500 firms listed on the National Stock Exchange of India was analyzed using fixed-effect panel models with robust estimators. The Heckman procedure was employed to address selection bias. Financial data were sourced from the CMIE Prowess database and balanced orientation data were extracted from the annual letters to shareholders.FindingsThe study finds that a balanced approach to EO and CO significantly lowers bankruptcy risk and increases firm valuation. Contrary to the traditional dichotomy of EO and CO, BO emerges as a key driver in reducing financial distress and enhancing long-term market performance. Firms embracing multiple strategic orientations outperform those solely focused on customer orientation.Practical implicationsFor emerging market firms facing resource constraints, developing BO is challenging but crucial. This study suggests adopting a sequential or alternating approach to developing EO and CO, which can alleviate bankruptcy risk and improve market valuation even in competitive environments.Originality/valueThis paper contributes to the existing literature by empirically demonstrating the significance of BO in emerging markets. It offers a novel perspective on strategic management, highlighting the importance of balancing customer and employee needs, especially in resource-constrained environments.

Impact of Digital Marketing Strategies on Marketing Performance: Role of Social Media Performance and E-commerce

E-commerce utilization has turned into a part of our regular routines. Ease of access and wide range of audience has made social media an effective medium to increase the marketing performance of firms. Due to its importance, the Fast moving consumer goods and retail businesses in Pakistan have employed social/ digital media managers to manage their social media platforms like Facebook, Instagram, etc. The social media managers have designed digital marketing to increase their social media performance. This is shown by the number of followers, likes, and sharing by the target audience and prospective customers. The job and abilities of Web based business assumed a significant part in our research. At the culmination, 232 respondents’ outcomes were taken into contemplation for our data analysis by using SPSS and Hayes Process Macro. The direct relationships have significant values and all hypotheses are accepted. The research attempted to help brands, and social media managers devise better strategies to increase their market share and social media ratings. It also tried to contribute to literature for firms who are left far behind in employing the E-commerce and social media strategies framework to enhance their market performance and online transactions abilities. Additionally, our research examination adds to the current writing by offering bits of knowledge for firms that still can't seem to completely use internet business and entertainment procedures. By taking on these structures, organizations can further develop their market execution and online exchange abilities. Our review highlights the groundbreaking effect of advanced advertising on business development and client commitment.

The impact of social media influencers on the financial market performance of firms

The impact of social media influencers on the financial market performance of firms

Extreme Weather and Firm Market Value: Roles of Corporate Social Responsibility and Stock Analyst Attention

ABSTRACT The outbreak of extreme weather events is increasing in frequency for the last decade, resulting in tremendous human and industrial losses worldwide. Evaluating and managing the effects of such events are highly urgent matters for firms, but the literature on this topic is limited. In this study, the effects of extreme weather events on the stock market performance of firms were estimated to provide a foundation for exploring how to manage such effects. From the perspective of the shareholder view, the heterogeneous effect of corporate social responsibility (CSR) on stock performance associated with extreme weather events were examined. Data on natural disasters that were caused by six types of extreme weather and occurred between 2001 and 2021 in China were used to construct a database of 2,718 Chinese listed manufacturing firms and 23,529 observations regarding the potential effects by extreme weather events. An event analysis indicated that the extreme weather events bring an average of 0.97% drop in the stock performance of potentially affected firms for the month that the event starts and the next month. A subsequent cross-sectional analysis revealed that a high CSR level is associated with low market value during extreme weather events, while a high level of stock analyst attention alleviates the negative effect of CSR on the stock performance of extreme weather events. This study enriches the existing literature and offers practical insights for managers in the fields of CSR and operations management, highlighting the complex dynamics between CSR activities, analyst attention, and stock market performance during extreme weather events.

Relationship between innovation and firm performance and the role of strategic orientations

PurposeThe purpose of the present paper is to analyse the impact of entrepreneurial orientation (EO) and customer orientation (Co.) on innovation in the restaurant industry, as well as how innovation also positively influences financial and market performance. Likewise, it is analysed whether human capital (HC) and competitive strategy (CS) have a moderating effect between innovation and performance.Design/methodology/approachTo reach the stated goals, a survey was applied to 129 entrepreneurs in the restaurant industry in Baja California, Mexico and using partial least squares structural equation modelling, the research hypotheses were verified.FindingsResults indicate that EO and Co positively influence innovation, which also furthers better financial and market firm performance; however, no moderating effect was found for HC nor CS.Practical implicationsThe findings allow contributing from a practical-entrepreneurial standpoint, as it raises awareness about the importance of developing strategies that allow efficiently gaining knowledge to encourage a culture in the restaurant industry focused on EO and Co, which, for their part, will boost the design and implementation of innovations.Social implicationsThe paper contributes to understanding the behaviour of HC and CS, which may have an influence or not, depending on the role they have within a system.Originality/valueThis paper contributes to raising awareness of the importance of developing strategies that allow efficient knowledge to foster a culture in the restaurant industry focused on entrepreneurship and clientele.

Entrepreneurial Design Thinking and Marketing Performance of Food and Beverage Firms in Port Harcourt, Rivers State

The study examined the relationship between entrepreneurial design thinking and marketing performance of food and beverage firms in Port Harcourt, Rivers State. This study adopted a correlational research design, with the population of the study comprising 25 food and beverage firms in Rivers State. Sequel to the population of the study, which is 25 food and beverage firms, the study adopted a census study with a focus on the managerial staff (production manager, quality control manager, marketing manager, and procurement manager). The questionnaire was distributed in a frame of four (4) copies per firm. A total of one hundred (100) copies of the questionnaire were distributed. The reliability of the instrument was determined using Cronbach's alpha test and it stood at 0.88, higher than the benchmark of 0.7. The data collected for this study were analyzed through descriptive and inferential statistics. The Spearman Rank-Order Correlation Technique was employed to test the various hypotheses formulated. The empirical results of this study confirmed that all the dimensions of entrepreneurial design thinking (creativity, and problem solving) were found to be significant predictors of marketing performance as measured by sales growth. Since all the dimensions of entrepreneurial design thinking are significant predictors of marketing performance, it is therefore concluded that entrepreneurial design thinking has the potential of improving marketing performance of food and beverage firms in Port Harcourt, Rivers State. Based on the findings and conclusions, the study recommends that: food and beverage firms should come up with creative designs, novel products and services that will catch the customer’s attention and improve marketing performance. Also, food and beverage firms, especially those facing different challenges, should adopt a problem solving approach to enable them to improve their sales growth.

A Study on the Impact of Pilot Carbon Emission Trading Policies on Corporate Performance

This paper uses the carbon emission trading policy as a quasi-natural experiment to comprehensively investigate its impact on the financial and market performance of firms. The study uses data from A-share listed companies for the period from 2009 to 2022 and adopts the difference-in-differences model for a rigorous analysis. The mediating effect of financing constraints and the moderating role of managerial capabilities are examined with respect to the influencing mechanisms; heterogeneity was also analyzed in terms of carbon allowance allocation methods, carbon prices, environmental enforcement efforts, and type of industry. The results of the study show that the carbon trading policy has a significant effect on improving the financial performance of firms, while also inhibiting their market performance. The feasibility of the findings was further validated after conducting robustness tests such as propensity score matching and placebo tests. The mechanism analysis finds that financing constraints play a masking effect on the impact of carbon trading policies on firms’ financial performance; managerial competence can positively moderate firms’ market performance. Heterogeneity analysis shows that the inhibitory effect of emissions trading policies on market performance is more significant for firms in regions with a smaller share of free allowances. For companies in high carbon price regions, carbon trading policies have a more significant impact on financial performance. For companies located in regions with higher levels of environmental enforcement, the positive effect of carbon trading policies on financial performance is unchanged, but the dampening effect on market performance is more significant. Carbon trading policies have a stronger positive effect on the financial performance of high-polluting firms, but a more significant dampening effect on the market performance of low-polluting firms. The findings of this study enhance China’s research framework on the economic impacts of carbon trading policies on micro-enterprises, promoting sustainable business development and serving as a useful reference for policy sustainability.

When and how digital novel technologies matter to firm marketing performance

When and how digital novel technologies matter to firm marketing performance

Firm executive political leanings, Washington, and stock market returns

In this paper, we study the effects of political identity on firm market performance. Specifically, we investigate whether a shared political orientation between a firm's executives and Congress, or the President, affect the firm's stock performance. Using hand collected political contributions data from the Federal Election Commission (FEC) to identify an executive's political orientation, we find evidence that firms with executives' political orientations matching that of the President or the Senate are associated with higher excess and abnormal returns and outperform other firms. Our results are consistent with the hypothesis that the market perceives political alignment positively.

Analyzing the market performance of Romanian firms: do the COVID-19 crisis and classification type matter?

PurposeStock market performance is paramount to every country, as it signifies economic growth, business performance, wealth maximization, savings deployment and consumer confidence. This study investigates the disparities in the market performance of listed firms in Romania. This study also examines whether the COVID-19 crisis affected market performance.Design/methodology/approachThe data were collected from 69 firms listed on the Bucharest Stock Exchange (BSE) from 2018 to 2022, belonging to 11 sectors. This study used several methods to achieve its objectives. Difference tests were considered to analyze the performance of Romanian companies before and during the COVID-19 crisis, as well as across sectors. Regression analysis was also conducted to estimate the effect of the COVID-19 crisis and classification type on Romanian companies' performance. Additional analyses were performed to verify the findings of the present study.FindingsThe study’s findings indicate a clear difference in market performance between the pre-crisis and crisis periods. The COVID-19 pandemic had an adverse and significant impact on market performance. However, after the market contraction in the early stage of the COVID-19 pandemic outbreak, the stock market outperformed the pre-pandemic capitalization levels and the regional and global indices evolution. Furthermore, there was a difference in market performance across sectors. In particular, the communication services sector has specifically demonstrated accelerated growth.Originality/valueThis research examines the variation in the market performance of companies before and during the COVID-19 pandemic and across different sectors. It also provides evidence of the potential impact of COVID-19 on firms' market performance. This research contributes to a better understanding of how sectors perform during times of crisis.

Does Corporate Governance and Quality of Disclosure Affect Firm Performance? An Empirical Study on Indian Banks

Financial markets, particularly in the developed markets, have started including non-quantitative disclosures as one of the important key performance indicators and valuation drivers. Notably, the quality of corporate governance, reflected in the board of directors and audit quality, serves as a key performance metric. This paper explores the relationship between market performance, corporate governance practices, and quality of disclosures (QOD) (measured through an index) in Indian financial firms (government-owned banks, private banks, and NBFCs). We assess market performance using price–book value and its dependence on qualitative variables such as corporate governance index (CGI) and QOD. Findings indicate that the market performance of financial firms is influenced by standard accounting ratios such as return on assets, capital adequacy ratio, and non-performing assets, as expected. CGI and QOD have improved over time across all financial firm categories. However, while CGI exhibits a positive relationship with firm performance, the link between market performance and QOD is less definitive. This study, limited to select banks based on market capitalization, explores the relationship between market and accounting performance over five years (2016–2020), with a focus on three consecutive years (2012, 2016, and 2020) to explore the correlation between their market performance and key qualitative factors such as CGI and QOD.

Corporate risk disclosures in turbulent times: An international analysis in the global financial crisis

AbstractFocusing on the global financial crisis period, this paper examines risk disclosure patterns and outcomes in a cross‐country setting. We build on prior risk disclosure literature and draw upon institutional and agency‐based theoretical lenses to investigate the nature, comprehensiveness, evolution, and quality of disclosed risk information for matched samples of manufacturing firms in the United States, Canada, Germany, and China (Chinese Hong Kong‐listed firms). The results show a high degree of heterogeneity in risk disclosure behavior and volume among the sample firms attributed to both institutional differences and corporate reporting incentives in the study period. Furthermore, we document significant associations between risk proxies, risk disclosures, and firm market performance suggesting that corporate risk disclosures are potentially informative and useful to investors and other stakeholders. The paper highlights the important joint role of corporate incentives and legal institutions in interpreting and implementing accounting standards and stock exchange listing regulations around the world and during turbulent times.

Fintech and corporate governance: at times of financial crisis

The objective of this research is to probe the moderating role of Big Four auditors (a representative of corporate governance) on the market performance of firms during the pandemic period, with specific focus on Fintech and non-Fintech firms. Design/Methodology: Employing data from 48 Fintech and 140 non-Fintech firms spanning 2010 to 2021, the study utilizes ordinary least squares, quantile regression, and dynamic Generalised Moments Method (GMM) regression to assess the implications of engaging with a Big Four auditor on firms' market performance during the pandemic. The study reveals that Fintech firms, compared to their non-Fintech counterparts, displayed a significantly poorer market performance by 110.4% during the pandemic. Additionally, Fintech firms audited by a Big Four auditor experienced a decline in market performance by 101.9%, indicating a potential negative impact of Big Four auditors' engagement for Fintech firms in crisis periods. The outcomes of this research underscore the importance of corporate governance during financial crises, and its influence on shareholder perception, especially in the context of Fintech firms. As such, it provides meaningful insights for governments, policymakers, and various practitioners including firm shareholders and start-up entrepreneurs. This study introduces a novel examination of the moderating effect of Big Four auditors on firms' market performance during a pandemic, especially in the context of Fintech firms. By shedding light on the relationship between corporate governance and market performance during crises, it fills a significant gap in the existing literature.

Can digital transformation improve market and ESG performance? Evidence from Chinese SMEs

Promoting the digital transformation of businesses and ESG (Environmental, Social, and Governance) performance can significantly benefit from research on the impact of small and medium-sized enterprise (SME) digitalization on firm market performance and ESG. This study presents a theoretical framework for the impact of digitization on small firms' commercial and social performance. It examines the relationships among digital resources, digital organization, digital adoption, digital innovation culture, firm competitiveness, digital management, market performance, and ESG performance. This study examines the influence of digital transformation on market and ESG performance in Chinese small and medium-sized enterprises (SMEs). Utilizing 331 valid questionnaires, we conducted a comprehensive modeling and empirical analysis through the application of fsQCA and PLS-SEM methodologies, revealing the following: 1) Digital resources, organizing, adoption, management, and firm competitiveness indirectly and positively affect ESG through the intermediary variable (firm market performance). 2) There is no precondition for establishing ESG; firm competitiveness is sufficient for ESG. 3) Firm market performance positively affects ESG, which is also a sufficient condition for ESG. 4) Innovatively discovering the moderator variable (digital innovation culture) positively modulates two paths (digital adoption and firm competitiveness, digital adoption and digital management). It provides theoretical, practical, and policy references to helping SMEs improve their competitiveness, performance, and practice of ESG.

Are government subsidies or preferential listing policies better for the market performance of tech firms? Evidence from Korea

ABSTRACT Tech firms are growth engines in modern economies. We examine which policies, government subsidies or preferential listing, work better for tech firms’ performance. We test whether Korean tech firms outperform control firms using key market-based performance metrics. Tech firms benefiting from Korea’s preferential listing system outperform control firms in funding, patent creation, and market capitalization but underperform in IPO-day returns. In contrast, government subsidies do not affect market performance other than six-month returns from the IPO date. These findings indicate that preferential listing policies are better than government subsidies for the market performance of tech firms.

Determinants and real effects of joint hedging: An empirical analysis of US oil and gas producers

We study the intensity of joint hedging of oil and gas prices by US petroleum firms. We aim to explain the rationale for and find the determinants of joint hedging, as well as its impact on firm market value, performance, and riskiness. Joint hedging that takes into account the interdependence between risks should have a positive impact on firm value in the presence of multiple risks. We verify this theory in an innovative way, by testing the effects of hedging oil and gas prices simultaneously and by using an instrumental variable framework to attenuate the problem of endogeneity between firm value and risk management. We find evidence of higher market value, higher accounting performance, and lower riskiness for firms with a high propensity to jointly hedge their oil and gas production to a greater extent. We show that joint hedging dominates single-commodity hedging.

Corporate governance mechanisms and firm performance in Saudi Arabia before and during the COVID-19 outbreak

This study examines the impact of corporate governance mechanisms on the performance of listed firms in Saudi Arabia before and during the coronavirus disease (COVID-19) pandemic. The study applied univariate, bivariate, and multivariate analyses to data collected from 258 annual reports from 2019 to 2020. The results show that during the COVID-19 pandemic, firm market performance (Tobin’s Q ratio) has decreased with larger board size, more board meetings, while it has increased with board experience, board education, and board gender (number of women on the board). Moreover, during the COVID-19 pandemic, board gender was found to have a significant positive impact on the firm’s operational performance (return on assets), implying that gender diversity on boards plays a crucial role in times of crisis. The findings have significant implications for Saudi Arabian firms, managers, investors, and policymakers. Furthermore, the latest corporate governance regulations in Saudi Arabia are almost certain to have a significant impact on firm performance, particularly during times of crisis. In addition, corporate governance regulations should consider the importance of small board size, lower board independence, board member experience and education, and board gender diversity to improve corporate performance, especially in times of crisis. Governments and regulators should collaborate to reduce the financial and economic impact of the COVID-19 pandemic. Comprehensive policies are needed to address the negative consequences of current and future crises.