Impact Of Firm Characteristics Research Articles

The Impact of Firm Characteristics on Firm Value: Evidence from Indonesia Stock Exchange

The Impact of Firm Characteristics on Firm Value: Evidence from Indonesia Stock Exchange

Impact of firm characteristics and country-level governance on global energy stocks during crises

Two successive crises have raised the need to understand the dynamics of the global energy sector during these crises. This study examines the effects of the Russia-Ukraine War (RUW) and the COVID-19 pandemic on the energy sector across developed and emerging markets. Additionally, it examines the role of firm- and country-specific variables in stimulating energy stocks. We employ a rigorous event study methodology to analyse data from 387 firms spanning 44 countries and reveal that the RUW exerted a more significant global impact on the energy sector compared to the pandemic, both before and after the event day. Notably, emerging markets displayed early reactions before the global announcement of the COVID-19 pandemic. Remarkably, the American markets were hardest hit by the pandemic, while Asia and the Pacific, Europe, and the Middle East and Africa fared relatively better. Intriguingly, our cross-sectional analysis demonstrates that firm-specific characteristics (leverage and firm size) and the country-level governance variable, corruption control, influenced market performance during these events. Conversely, country-level development variables demonstrated minimal impact. This study enhances the understanding of how global crises uniquely impact the global energy sector. It also demonstrates how country-level governance variables could influence stock market returns.

The Impact of Firm Characteristics on Future Stock Price Crash Risk: Evidence from Egypt

The Impact of Firm Characteristics on Future Stock Price Crash Risk: Evidence from Egypt

The impact of firm characteristics on dividends in Jordan: Institutional ownership as moderating variable

The objective of this research was to look at how firm attributes like age, size, as well as profitability affected the number of dividends paid. It also looked at how institutional ownership affected the connection between all these corporate characteristics as well as dividend payments as a moderating factor. A sample of forty publicly traded industrial businesses that were listed between 2016 and 2020 on the stock exchange in Amman were included in the research. The research analyzed the variables utilizing acceptable descriptive statistical techniques and used a model of multiple regression to test its predictions. The study's conclusions demonstrated that a company's size, years of existence, and income all positively affect dividend payments. Additionally, it found that corporate ownership had a strong correlation with dividend influence, as did both firm size as well as profitability. On the other hand, it discovered a negative correlation between the age of the firm as well as institutional ownership in terms of dividend effect. The research concludes with a proposal that Jordanian industrial enterprises should take size, years of operation, and profitability into account when determining how much dividend to pay out, acknowledging their important roles as well as effects on dividend distribution.

The impact of firm characteristics, business competitiveness, and technology upgrade hurdles on R&D costs

The study explores factors influencing research and development (R&D) costs in developing economies. The findings may inform the decision-making process for firms keen on innovation-related expenditures. The paper examines 164 Kenyan firms using the World Bank Enterprise Survey (WBES) data for 2018. These factors are classified into three broad categories. These are firm characteristics (age, size, and ownership), business competitiveness (export orientation, innovation strategies, and informal competition), and technology upgrade challenges (skills availability, financial constraint, and technology incompatibility). The findings reveal that approximately 11% of firms incurring R&D costs export their products (services). Exportation, skilled labor availability, and degree of informal competition correlate positively and significantly to R&D expenditure. The largest ownership (%) has a marginal effect on the outcome variable. Moreover, firm size substantially influences R&D costs, with small to medium firms incurring lower costs than their larger counterparts. However, firm age, innovation strategy, financial constraint, and technology incompatibility weakly influence the outcome variable. The product innovation strategy’s interaction effect with skills, firm age and informal competition substantially impacts R&D costs. Notably, firms’ R&D spending must be in tandem with the domestic informal competition intensity, skills availability, and foreign market targeted. The study employs the Ordinary Least Squares (OLS) regression in examining the relationship between the predictors and the dependent variable.

Impact of firm characteristics and ownership structure on firm efficiency: evidence from non-financial firms of Pakistan

Impact of firm characteristics and ownership structure on firm efficiency: evidence from non-financial firms of Pakistan

The Impact of Firm Characteristics on Adoption of Environmental Management Practices in Russian SMEs

To resolve and mitigate the ecological crisis, proactive approaches from businesses across all sectors and sizes are an imperative, with governments encouraging and pressuring them to move toward environmental sustainability. However, not all enterprises are ready to adopt EMPs, and those that do, differ substantially in the extent of their implementation. Based on the data from 984 Russian SMEs, the paper investigates how firm-specific characteristics impact the comprehensiveness of environmental management practices in Russian SMEs and confirms that a firm size, foreign ownership, and innovativeness all positively and significantly influence the extent of SMEs’ engagement in environmental practices.

The impact of firm characteristics on accrual-based earnings management: The case of listed companies in the manufacturing industry

The research focuses on measuring the impact of factors related to the firm’s character: firm performance, investment opportunities, financial leverage, firm size, capital intensity that affect the accrual-based earnings management of manufacturing companies listed in Viet Nam. Data sample of 203 manufacturing companies listed in Viet Nam during the period 2017-2020 resulting in 812 firms-year observation, the FGLS regression method was selected through the necessary tests. The results of the analysis showed firm performance, financial leverage have positive effects on earnings management; firm size, capital intensity have negative effects on earnings management; investment opportunities insignificant effects on earnings management of manufacturing companies listed in Viet Nam during the period 2017-2020. In addition, the research has divided the sample to test the different trend impact of firm characteristics on accrual-based earnings management when data 2020 have been severely affected by the COVID-19 pandemic. The results show that the impact of firm characteristics on accrual-based earnings management with the sample year 2019-2020 has a different trend with the sample year 2017-2018; 2018-2019 and total sample 2017-2020.

Impact of firm characteristics on corporate sustainability reporting: a meta-analysis

The study explores the commonly identified determinants of corporate sustainability reporting by conducting a systematic review and a meta-analysis. The systematic review conducted for 20 years from 2000 to 2019 returned a final sample of 55 empirical journal articles, and meta-analysis was performed considering effect size as correlation coefficient. The findings reveal that the frequently identified determinants in prior research were firm size, firm age, profitability and leverage, using the proxies of natural logarithm of total assets (LTA), years since establishment (YEST), return on assets (ROA) and ratio of total debt to total assets (TD/TA) respectively. Firm size reported a significant positive overall effect (0.376) on sustainability reporting (SR), irrespective of the country setting. The results suggest some policy and practical implications to policymakers and practitioners of SR.

Impact of firm characteristics on corporate sustainability reporting: a meta-analysis

Impact of firm characteristics on corporate sustainability reporting: a meta-analysis

Impact of Firm Characteristics on IPO’s Short Run Performance: Evidence from Pakistan

In present day world, the concept of initial public offering (IPO's) has got much significance since its execution altogether influence the success of the companies. The current study aims at conducting a nonsystematic review of literatures on the concept of short runs performance of initial public offering in Pakistan. In this regard, we studied the IPO’s of 77 companies listed at Pakistan Stock Exchange (PSX) from the period of 2000-2015. The finding shows a positive and significance relationship between size of the firm and underwriter reputation while the age of the firm and risk shows negative relationship with the dependent variable MAAR. The performance of initial public offerings has significant effect on success or failure of a company. In this way, the companies in modern corporate world can ensure their success through effective utilization of initial public offerings.

Comparative Study of Environmental Disclosure in Indonesia and Malaysia: Testing Company Characteristics

There are two purposes of this study. The first is to compare the environmental disclosure practices in the annual report of Indonesian and Malaysian manufacturing companies. The second is to test the impact of firm characteristics on environmental disclosure, both in Indonesia and Malaysia. Firm characteristics are represented by firm size, profitability, liquidity, firm age, and audit firm size. Under the Slovin’s Formula and purposive sampling method, 82 Indonesian and 167 Malaysian manufacturing companies are selected. Dichotomy approaches are used to measure the dependent variable of environmental disclosure. There are 9 main aspects which include 30 items of environmental according to Sustainable Reporting Guidelines version 3.1. Different proxies consist of the natural logarithm of total assets, return on equity ratio, current ratio, the natural logarithm of firm age, and audit firm size (BIG 4 and Non-Big 4) is used as a measurement of the independent variable of firm characteristics. Comparison and relation in this study tested by analysis of descriptive statistics, t-test, and multiple regression. A score of environmental disclosure both in Indonesia and Malaysia is only 18,33%. The result indicates that the environmental awareness of businessmen in manufacturing companies still low. The result of the t-test shows that there is a difference in environmental disclosure between Indonesia and Malaysia. The multiple regression analysis shows that firm size, audit firm size, and firm age are significant predictors of environmental disclosure both in Indonesia and Malaysia. Profitability and liquidity show no influence on environmental disclosure in both countries.

The impact of firm characteristics on the voluntary disclosure – evidence on the top 50 listed firms of Forbes Vietnam

Disclosure plays an important role for information users. Voluntary disclosure is more meaningful for stakeholders in order to make appropriate decisions. The article researches the impact of firm characteristics on the voluntary disclosure of the top 50 listed firms in Forbes Vietnam (50 listed firms) from 2015 to 2019. It uses the ordinary least squares of time-series data to test the regression model. The signaling and agency theory is used to explain the relationship between firm characteristics on voluntary disclosure. The research results show three variables of firm characteristics that positively impact the voluntary disclosure of 50 listed firms, including firm size, growth rate of market share value to book value, and audit type, in which audit type has the strongest influence. Accordingly, the state agencies of Vietnam should encourage 50 listed firms to improve the Vietnamese listed firms’ voluntary disclosure and meet international economic integration. AcknowledgmentWe would like to thank Assoc. Prof. Ngoc Thach Nguyen (Phd), Assoc. Prof. Hoang Anh Ly (Phd) and Assoc. Prof. Thi Loan Nguyen (PhD), as well as some experts of the State Securities Commission of Vietnam and some leaders of 50 listed firms for their advice and support the project.

Firm-level determinants of capital structure in the MENA region

This paper investigates the behavior of firm characteristics on capital structure in firms in the MENA region. The outcomes of this research are important to bridge the gap between the theory and the practical decisions related to capital structure. The research studies the impact of firm characteristics on levels of debt from three different perspectives; short-term debt, long-term debt, and total debt. The study is applied to 416 firms from nine countries of the MENA region (Bahrain, Qatar, Saudi Arabia, UAE, Oman, Kuwait, Egypt, Jordan, and Tunisia) over some time from 2007-2016. Various econometrics techniques are used to reinforce the generated results. The results show that a firm's profitability and liquidity levels have a significant inverse impact on leverage, whereas; firm's size has a direct impact. The empirical results also show that asset tangibility and market value impact leverage differently depending on the type of debt used. Overall, the results reinforce the importance of both the pecking order theory as well as the trade-off theory in explaining capital structure decisions in the MENA region, with the results being more significant concerning the pecking order theory.

DO FIRM CHARACTERISTICS, POLITICAL CONNECTION AND CORPORATE GOVERNANCE MECHANISM AFFECT FINANCIAL DISTRESS (EVIDENCE FROM INDONESIA)

The objectives of this study are to evaluate the impact of firm characteristics (firm size, liquidity, profitability, and leverage), political connection and corporate governance mechanism (independent board of commissioner, institutional ownership, and board of commissioner size) on the level of financial distress. Altman Z-score is used to measure financial distress in this study. Purposive sampling was conducted and 576 firm-years non-financial companies listed in Indonesian Stock Exchange during 2014-2016 were acquired as the samples. For testing the hypotheses, unbalanced panel data regression with a random effect model was used. The findings showed that firm size, liquidity, profitability, and institutional ownership had a negative impact on financial distress; while leverage and the political connection had a positive impact on financial distress. The hypotheses testing results also showed that an independent board of commissioner and board of commissioner size did not influence financial distress.

The Impact of Firm Characteristics on Corporate Internet Reporting: Evidence from Sri Lankan Listed Companies

Corporate Internet Reporting (CIR) is a significant communication phenomenon in the world. Research indicates that there are several CIR issues in developing countries as well as there is a dearth of the studies in the Sri Lankan context. Accordingly, this study is designed to identify the current level of CIR and what are the significant firm characteristics that impact CIR in the Sri Lankan context using a quantitative research approach using secondary data. The level of corporate internet reporting is measured using a disclosure index on CIR. Multiple ordinary least squares regression, multiple ordinal regression and correlation analyses are used to identify the significant determinants of CIR. The results indicate that of 100 companies examined, despite 83% of Sri Lankan companies have their own corporate websites, the overall level of CIR is only 16.2%. The content disclosure sub-score is on average 12.52% and the level of presentation format disclosure sub-score of CIR is 26.88%. Further, the explanatory analyses suggest that variables, auditor size, market capitalization,and the representation of hotel, travel and service industry are significant firm characteristics that impact the level of CIR. Overall, however, mixed evidence is noted. This study addresses the knowledge gap in identifying levels of CIR and firm characteristics and expected to have significant policy implications.

The impact of firm characteristics on speed of adjustment to target leverage: a UK study

ABSTRACTResponding to the need to investigate heterogeneity in the speed of adjustment (SOA) to target leverage in a manner that reflects the fractional nature of leverage, we estimate SOA across sub-samples of UK firms using the Dynamic Panel Fractional (DPF) estimator. Using firm characteristics to identify firms subject to varying costs of deviation from and adjustment to target leverage, we find significant evidence of heterogeneity in the speeds at which UK firms adjust to target leverage. Our results show that small, high growth and low dividend paying firms adjust to target leverage faster than their large, low growth and high dividend paying counterparts. We also find some evidence to suggest openly held firms adjust faster than closely held firms, though our results are not robust to the categorizing criterion employed or target leverage specification.

The Impact of Firm Characteristics and IT Governance on IT Material Weaknesses

Accurate and timely reporting of organizational performance is becoming increasingly important and highly regulated. However, organizations face a variety of challenges in seeking to provide accurate and reliable information due to the existence of IT control problems. Hence it is important for end users including auditors and managers to understand how to manage IT material weaknesses (ITMWs). While there is extensive accounting research on general material weaknesses (MWs), ITMWs are under researched. This article identifies key firm characteristics that appear to be related to ITMWs. In addition, the authors suggest that IT governance may help firms mitigate such problems. To gain a deeper understanding of IT governance effects, this article proposes a model which includes an innovative construct, ITGOV, operationalized using secondary data. The authors empirically validate the proposed model based on a data set of 1,112 firms. Their study illustrates the differences between ITMWs and general MWs. These results can also help end users computing by offering insights into better management of ITMWs.

The Impact of Firm Characteristics on Corporate Tax Aggressiveness: A Study on Malaysian Public Listed Companies

The importance of taxes to governments worldwide is undeniable. Governments depend on their tax revenues, especially in ensuring sufficient provisions of public amenities to the society. However, their coffers are unceasingly threatened by tax aggressive behaviors, or aggressive actions to reduce tax burdens, especially by companies. Considering that the Malaysian government is highly reliant on its tax revenues, particularly its corporate income tax collections, this study’s purpose is to examine the impact of firm characteristics on the tax aggressiveness level of public listed companies in this country. This study uses fixed-effects panel regression analysis on 182 companies listed on the Main Market of Bursa Malaysia for the consecutive period from 2010 to 2012. The results identify that firm size, debt intensity, capital intensity, growth rate, and profitability have significant impacts on the level of tax aggressiveness of the companies tested. These findings imply that corporate tax behavior is indeed influenced by the companies’ very own characteristics. Therefore, this study’s findings compellingly suggest that firm characteristics should be adopted as a means in assessing the tax aggressive tendency of Malaysian corporate taxpayers.

Impact of financial crisis and family control on earning management of Portuguese listed firms

Accounting information is used to evaluate the firm's financial performance. Although, firms may have incentives to engage in earnings management, misleading all stakeholders. This study aims to analyse earnings management behaviours of Portuguese listed firms. Both accrual-based and real activities of earnings management are analysed to draw an overall picture of earnings management’ strategies. Most studies focused only in discretionary accruals as a proxy for earnings management, since cash flow-based earnings management is more difficult to detect. Although both strategies can be complementary instead of substituting. Moreover, the impact of financial crisis, family control, and firm characteristics is taken into account. Previous literature found that 2008 crisis had impact on earnings management as firms want to meet debt covenants and investors’ expectations. Moreover, family firms also impact the magnitude of earnings management. While some researchers found a negative relationship since managers are highly controlled, others found the opposite relationship because the family may want to maximize their own wealth. Analysing 51 listed firms, from 2003 till 2015, results show that firms engage more in earnings management during crisis, when the firm's financial situation is less stable. In addition, accrual-based earnings management is higher in family firms than in non-family ones, suggesting less quality of information in the first group. Due to less control of family firms, the family may expropriate minority investors’ wealth to increase personal benefits. Finally, the impact of firms’ characteristics on earnings management depends on the proxy of earning management analysed, suggesting that firms use accrual or real-activities earnings management depending on its purposes.